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Home My WebLink AboutAgenda - Mail Packet - 7/22/2014 - Council Finance & Audit Committee Agenda - July 21, 2014Council Finance Committee & URA Finance Committee Agenda Planning Calendar 2014 RVSD 7/17/14 mnb July 21 TOPIC TIME WHO CFC Auditor Report by McGladrey LLP 30 min K. Smith Review of BOB 2.0 Potential Projects 90 min G. Sawyer URA Aug. 18 TOPIC TIME WHO CFC Comprehensive Fee Study Update 45 min J. Ping-Small Budget Briefing 45 min L. Pollack General/Fund/Capital Improvement Policies 30 min J. Voss URA Sept. 15 TOPIC TIME WHO CFC Economic Health Policy 30 min J. Voss J. Birks Status of Auditor Findings 30 min M. DeKock URA Oct. 20 TOPIC TIME WHO CFC Long Term Financial Plan 45 min A. Gavaldon URA Future Council Finance Committee Topics: • Review Special Improvement Districts Future URA Committee Topics: • No Topics in Queue 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 21, 2014 10:00 to 12:00 noon CIC Room – City Hall Approval of the Minutes from the May 19, 2014 meeting 1. Auditor Report by McGladrey, LLP 30 minutes K. Smith 2. Review of BOB 2.0 Potential Projects 90 minutes G. Sawyer 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 Minutes 5/19/14 10:00 a.m. to 12:00 noon CIC Room Council Attendees: Ross Cunniff, Bob Overbeck, Mayor Karen Weitkunat Staff: Mary Atchison, Darin Atteberry, Sue Beck-Ferkiss, Josh Birks, Andres Gavaldon, Jeff Mihelich, Lawrence Pollack, John Voss, Katie Wiggett Others: Dale Adamy; Kevin Jones, Chamber Approval of the Minutes Bob Overbeck asked that the word deal in the first paragraph of the April 21 minutes be changed to yield. The sentence should read: “The interest rate environment is positive due to a shortage of high yield paper in the market.” Bob Overbeck moved to approve the minutes from the April 21 meeting as amended. Mayor Karen Weitkunat seconded the motion. Minutes approved unanimously. Budget Policy Review Lawrence Pollack explained that the previous budget policy evolved as part of the Budget document. In that context it focused on explaining budget concepts rather than setting policy. In updating the policy, staff looked at other municipalities’ budget policies and found a wide-range of formats. Staff chose to use a structure based on recommendations from the Government Finance Officers Association (GFOA) and added specific linkages to the budget in City Charter to the policy. When staff reviewed this document, it was determined that it is administrative in nature with many references to City Code and City Charter. Staff proposes this policy no longer require periodic City Council review and approval. Rather, future reviews would be handled administratively. This being his first budget process, Bob said he was not comfortable changing the policy to administrative without more information. Ross asked what changing it to administrative would fix. Lawrence answered that, because the document will be static going forward and any changes to it would require a change in Code or Charter, it is not the best use of Council’s time to review it annually going forward. Karen said that she supports the change to administrative. Council Finance recommends adopting the new policy but makes no recommendation on whether the policy should be changed to administrative. This policy will come before Council in a package of administrative policies in late August or early September 2014. 2 Long Term Financial Planning Work Scope Andres Gavaldon presented the scope for Long Term Financial Planning (LTFP) that Council requested. The City has never developed such a Plan, so Staff researched potential methodologies and is now proposing a process for this new project built on GFOA recommendations. The proposed process improves on the City’s current “5-Line” analysis used in the budget process and takes an approach which can be completed within the current fiscal year with existing resources. Initially, Staff envisioned a robust plan with a 30 year forecast; however, because the City is a multi-faceted organization, this approach is very complex and would require extra time and resources. Staff consulted Bob Eichem, President of GFOA and CFO for the City of Boulder. Bob directed Staff to a more high-level approach. This model is directional rather than a forecast, meaning that it will help reveal possible funding gaps in the future and how to avoid them rather than projecting a number for 2030. In 2005, the City implemented a 5-line review which addressed key funds for the BFO Process. This review looks 4-5 years out; whereas, the Long Term Financial Planning will look 20-30 years out. The new plan would leverage the 5-line Review, adding some more drivers and lengthening the timeline. It would also apply different growth rates by expense line items. Ross asked for more clarity on how this tool would be used. Andres gave the example of the Plan examining the potential of KFCG ending, looking at the impact of such an event and possible directions Staff could take. Andres explained that if Council approves the “5-line” method, Staff should be able to bring this item back to CFC in December 2014 or January 2015. Karen said that Council has been supportive of GFOA processes and will likely continue to follow their direction. Karen asked what boards and commissions will be involved in creating and approving this plan. Darin said that he didn’t see this as Board and Commission intensive, but rather an administrative process. Once the plan begins to affect policy, then it will be brought to Boards and Commissions. Karen asked if there was a way to clarify in the name of the project that it is more administrative; “Long Range Financial Plan” makes it sound like an external issue. Andres said that the name is actually “Long Term Financial Planning” and we could clarify by adding Process to the end of the name. Council Finance supports the 5-Line approach to Long Term Financial Planning. Affordable Housing Sue Beck-Ferkiss presented on the Housing Affordability Policy Study the City commissioned to determine what tools and funding strategies are appropriate to our housing market and could be used to encourage the production of affordable housing in Fort Collins. Staff is looking into this because it is important to citizens and Council, as well as because the recent Foothills Mall redevelopment agreement gives a December 1, 2014 deadline for Staff to work toward for creating an affordable housing impact fee. A technical team of City staff was created to assist our consultant, Economic & Planning Systems (EPS). Representatives from Economic Health, Finance, Environmental Services, Planning, City Attorney’s Office, Communications and Public Involvement, as well as Social Sustainability serve on that team. Three Stakeholder Workshops were held to inform the study. 3 Staff has presented, or will present, information about this study to several City Boards and Commissions including the Affordable Housing Board, the Senior Advisory Board, the Planning and Zoning Board, the Economic Advisory Commission, the Community Development Block Grant Commission and the Council Finance Committee. Staff has also presented, or plans to present, to outside groups such as the Fort Collins Board of Realtors, Vida Sana, Circles Leaders with the Education and Life Training Center, and the Fort Collins Chamber of Commerce. It is anticipated that multiple presentations may be needed at different stages of this study. One public open house was held on May 14, and another public open house is scheduled for May 21. EPS found that generally our housing system is healthy, but there are distressed populations that do not have adequate housing choice. Also, there are trends that suggest housing costs are escalating which is translating into higher purchase prices and rents. With current low vacancy rates, rents have increased causing more Fort Collins residents to pay more than 30% of their income on rent. According to the Social Sustainability Gap Analysis, 59% of renters and 28% of home owners are rent burdened. Bob asked Sue if she can provide the State’s numbers for comparison when she gives numbers for Fort Collins and Larimer County. Sue said that she can add that to future presentations. Ross asked that the wording “average housing cost” be changed to “average housing price” to be more accurate. Staff will make that correction. Sue explained that EPS looked at both home ownership and rental markets. They found seniors, people with disabilities, homeless individuals and people with household income less than $25,000 to be distressed populations. First time home buyers are also having trouble finding affordable homes. This is aggravated by the lack of inventory for for-sale attached products such as condominiums and town homes. EPS analyzed data about our community and tried to estimate the impact of students on our overall housing inventory. Bob asked if we can get a sense of how numbers compare in different areas of the community, i.e. communities close to CSU vs. communities in south Fort Collins. Bob explained that he’s not trying to take the students out of the equation; however, students’ renting lifestyles differ greatly from long-term renters. Sue explained that it is hard to isolate all students since their circumstances vary greatly. Bob said that he understood the difficulty, but he wanted to make sure that that we tried to pinpoint the population drivers as much as possible. Ross added that he would like CSU to solve the student housing problem, and would like to know better what impact the lack of student housing has on housing affordability. Karen suggested adding two slides, one for student housing in Fort Collins and one for non-student low-income residents because these are two different major discussions. Sue agreed, though she reiterated the difficulties of separating the students. She said that she believes they can distinguish between short-term residents and long-term residents. Bob asked if ESP works with other college communities; and if so, can Staff ask them for numbers from those other town for comparison. Mary replied that the report should include some comparison numbers from surrounding communities. Staff can ask about other communities. 4 Darin asked that Sue define “distressed population” in the slides. Bob asked if we could see the average housing costs for mobile homes. Sue answered that she’d want to distinguish between mobile homes and manufactured homes. Ross added that it might also be helpful to research zoning regulations for mobile homes. Karen agreed that the land use code that restricts mobile homes should be part of this discussion. Sue said that EPS has provided options to be considered by the City to address the needs of the identified distressed populations and create more housing choice for all residents. These options fall into the following categories: • Legislative: o Fix Construction Defects Law o Approve the State Low Income Tax Credit Program o Pass state-wide funding measure for affordable housing Bob asked why we would be involved in fixing the Construction Defects Law. Ross said that that item is on the work plan because the law is depressing the market for condos and town homes. Sue agreed, noting that a lack of condos and town homes is a problem. Bob Overbeck suggested that there may be federal programs that can help and be very lucrative through new market tax credits. Josh Birks noted that that is one of the many funding options Staff will look into. • Cost Reductions o Fee Waivers for Affordable Housing o Streamline Process for Affordable Housing o Adjust Marginal Cost Structure of Fees (reduce fees for smaller units) o Reduce/remove minimum size for homes • Regulatory o Relax the 3-unrelated Rule o Incentive Policy Ordinance o Evaluate Land Constraints o Address Manufactured Housing • Alternative Funding Sources o Excise Tax o Dedicated Sales Tax o Time Limited Property Tax o Land Bank Program Because this study is still underway and the consultants have not issued a report, Staff would be pleased to return to Council Finance after receiving guidance from City Council. Staff has not formulated recommendations at this juncture, nor has the City Attorney’s Office reviewed all these options. Ross said that, overall, this is a huge task and the City will have to be creative as we look for solutions. Undoing certain policies would lead to a large community discussion. Sue agreed, saying that Staff recognizes the sensitivity of certain solutions which is why they are doing so much community outreach. Ross suggested focusing on long-term residents in the solutions. 5 Fund Balance Review John Voss presented the status of the City’s fund balances and working capital, information that will be used in the BFO process. His presentation summarized availability by each fund in the City Budget. The balance within each Fund was categorized into Non-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. Ross noted that, when the school district had a mill levy for staffing, the district only used half of the funds, setting the other half aside to act as a buffer. Why don’t we do the same with KFCG funds? John answered that Staff has been directed not to build up the fund. Ross said that that was probably best since KFCG is a percentage of sales tax, not a set amount like a mill levy. July 21, 2014 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Mike DeKock, Accounting Manager Mike Beckstead, Chief Financial Officer Date: July 21, 2014 SUBJECT FOR DISCUSSION Auditor’s 2013 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, 2013. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED None, this is a report of 2013 year-end. BACKGROUND/DISCUSSION Every year the City is required to be audited in compliance with Government Auditing Standards. McGladrey finalized its audit on May 30, 2014 and the firm is required to report the results of the audit to those charged with governance. Findings identified related to Federal grants have been identified on page 12-13 of the Compliance Report. Misstatements identified by the auditors that were deemed immaterial for adjustment and misstatements identified by the auditors that were corrected by the City can be found in the Report to the City Council. Staff will provide a written response to the audit findings and misstatements at the October Council Finance Committee meeting ATTACHMENTS 1. Report to the City Council 2. Compliance Report 3. Comprehensive Annual Financial Report City of Fort Collins, Colorado Compliance Report December 31, 2013 Contents 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 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 – 13 Corrective action plan 14 1 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 Independent Auditor’s Report 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, 2013, 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 30, 2014. 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. 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 30, 2014 3 Report on Compliance for Each Major Federal Program, Report on Internal Control Over Compliance and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 Independent Auditor’s Report 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, 2013. 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, 2013. 4 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 2013-001 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, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated May 30, 2014, which contained unmodified opinions on those 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 30, 2014 6 City of Fort Collins, Colorado Schedule of Expenditures of Federal Awards Year Ended December 31, 2013 Federal Pass-Through Federal Grantor/ CFDA Entity Identifying Federal Pass-Through Grantor/Program Title Number Number Expenditures Department of Agriculture (Passed through City of Greeley): Emergency Watershed Protection Program 10.923 68-8B05-A-13-01 $ 397,658 Department of Housing and Urban Development Community Development Block Grants (Direct): Grant Year 2010 / 2011 14.218 B-10-MC-08-0008 53,243 Grant Year 2011 / 2012 14.218 B-11-MC-08-0008 247,932 Grant Year 2012 / 2013 14.218 B-12-MC-08-0008 544,422 Grant Year 2013 / 2014 14.218 B-13-MC-08-0008 34,978 Home Investment Partnership Programs (Direct): Grant Year 2010 / 2011 14.239 M-10-MC-08-0209 89,868 Grant Year 2011 / 2012 14.239 M-11-MC-08-0209 681,789 Grant Year 2012 / 2013 14.239 M-12-MC-08-0209 146,306 Grant Year 2013 / 2014 14.239 M-13-MC-08-0209 16,469 Total Department of Housing and Urban Development 1,815,007 Department of the Interior (Direct) Native American Graves Protection and Repatriation Act 15.922 08-12-GP-569 44,624 Department of Justice (Passed through the Colorado Division of Criminal Justice): JABG Federal 12/13 16.523 11-DV-08-23 27,152 JABG Federal - Restorative Justice 12/13 16.523 None 23,206 JABG Federal - Restorative Justice 13/14 16.523 None 14,802 Multi-Jurisdictional Drug Grant (JAG) - 10/11 16.738 2010-DJ-BX-0967 3,474 Multi-Jurisdictional Drug Grant (JAG) - 11/12 16.738 2011-DJ-BX-2125 8,652 Multi-Jurisdictional Drug Grant (JAG) - 12/13 16.738 2013-DJ-BX-0149 65,573 Multi-Jurisdictional Drug Grant (JAG) - 13/14 16.738 2013-DJ-BX-0149 38,822 (Pass through the Colorado ICAC Task Force): ICAC Internet Crimes against Children 16.800 2009-MC-CX-K011 12,709 Total Department of Justice 194,390 Office of National Drug Control Policy (Direct) 2013 HIDTA 95.001 G13RM0020A 95,137 Department of Transportation National Highway Traffic Safety Administration (Passed through Colorado Department of Transportation): 2012 DUI Enforcement 20.601 None 3,120 2013 DUI Enforcement 20.601 None 11,480 2013 Seatbelt Grant Click It or Ticket 20.604 None 7,627 Total National Highway Traffic Safety Administration 22,227 (Continued) 7 City of Fort Collins, Colorado Schedule of Expenditures of Federal Awards (Continued) Year Ended December 31, 2013 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 M455-071 765,391 Traffic Signal System Software 20.205 AQC M455-104 183,801 Bryan Ave Bridge at Larimer #2 20.205 BRO M555-092 94,121 Shields/LaPorte Bridge Repairs 20.205 BRO M555-100 892,345 North College CMAQ - Vine to Conifer 20.205 09-HA4-00055 30,442 US 287 - Conifer to Willox 20.205 12-HA4-38760 445,492 Harmony Bridge Replacement 20.205 13-HA1-46889 342,647 Horsetooth/Timberline Improvements 20.205 13-HA4-51619 184,323 Shields/Vine Intersection Improvements 20.205 12-HA4-42970 40,582 Total Federal Highway Administration 2,979,144 Federal Transit Administration (Formula Grants - Capital 5309) (Direct): 2010 Capital 20.500 CO-04-0086 22,581 2010 Capital - State of Good Repair 20.500 CO-04-0087 8 2011 Capital - State of Good Repair 20.500 CO-04-0102 127,698 2012 Capital - State of Good Repair 20.500 CO-04-0113-00 8 2009 Small Starts Mason Project 20.500 CO-03-0206-00 23,045,555 2011 Small Starts Mason Project 20.500 CO-04-0104-00 3,427,056 (Urbanized Area Formula Grants - 5307) (Direct): 2011 Grant 20.507 CO-90-X196 1,315 2012 Grant 20.507 CO-90-X210 2,121,280 2010 CMAQ 20.507 CO-95-X004 240,597 2012-2016 CMAQ 20.507 CO-95-X015 766,147 Total Federal Transit Administration 29,752,245 Total Department of Transportation 32,753,616 Institute of Museum and Library Services (Direct) Collections Move 45.301 MA-05-09-0165-09 60,095 (Continued) 8 City of Fort Collins, Colorado Schedule of Expenditures of Federal Awards (Continued) Year Ended December 31, 2013 Federal Pass-Through Federal Grantor/ CFDA Entity Identifying Federal Pass-Through Grantor/Program Title Number Number Expenditures Department of Energy (Direct) ARRA - Renewable and Distributed Systems Integration 81.122 DE-FC26-08NT02876 348,940 Renewable and Distributed Systems Integration 2 81.122 DE-FC26-08NT02876 334,811 ARRA - Smart Grid Investment Grant 81.122 DE-OE0000357 7,889,532 Total Department of Energy 8,573,283 Department of Health and Human Services (Passed through Colorado Department of Public Health & Environment): NRPA Achieve 93.283 5U58DP001663-03 15,127 Total Expenditures of Federal Awards $ 43,948,937 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, 2013 9 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Fort Collins, Colorado (the City) and its discretely presented component unit for the year ended December 31, 2013. 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, 2013, as follows: Amount Federal CFDA Provided to Program Title Number Subrecipients Community Development Block Grant (CDBG) - Entitlement Grants 14.218 $ 745,961 Home Investment Partnership Program 14.239 859,134 ARRA - Renewable and Distributed Systems Integration/Smart Grid Investment Grant 81.122 1,935,141 10 City of Fort Collins, Colorado Summary Schedule of Prior Audit Findings Year Ended December 31, 2013 Corrective Action or Number Comment Status Other Explanation 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 Not corrected See current year program income requirements of the CDBG program are being met. finding at 2013-001 Findings and Questioned Costs for Federal Awards 12-III-B The City did not comply with suspension and debarment requirements Corrected N/A of OMB Circular A-133 for the CDBG grant program. 12-III-C The City did not comply with reporting requirements of OMB Circular Corrected N/A A-133 for the CDBG grant program. 11 City of Fort Collins, Colorado Schedule of Findings and Questioned Costs Year Ended December 31, 2013 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 Renewable and Distributed Systems Integration Grants 2 81.122 ARRA - Renewable and Distributed Systems Integration Grants; ARRA - Smart Grid Investment Grant Dollar threshold used to distinguish between type A and type B programs: $1,318,468 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, 2013 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 2013-001 U.S. Department of Housing and Urban Development (Direct) Community Development Block Grants (CFDA 14.218) Federal Award Years: 2009-2013 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. (Continued) City of Fort Collins, Colorado Schedule of Findings and Questioned Costs (Continued) Year Ended December 31, 2013 13 Response and Corrective Action Plan: This is a previous finding from the 2012 audit, of which the City was made aware in May 2013. In 2012 the response and corrective action plan was to receipt program income into the federal IDIS system within 30 days of City Council approval, a plan which has since been found to be an inadequate response to the issue. Once this was recognized, the Social Sustainability and Accounting Departments met with HUD to better understand the compliance requirements for program income and timely reconciliation of IDIS. Thereafter the Social Sustainability and Accounting Departments developed a plan for a monthly reconciliation of IDIS and the general ledger. In addition, the Social Sustainability Department has changed their process to immediately enter program income into the IDIS system and utilize the funds prior to entitlement dollars, as required. The new plan was effective during the first quarter of 2014 and therefore this issue should be resolved on the 2014 audit. B. Instances of Noncompliance None reported. 14 City of Fort Collins, Colorado Corrective Action Plan Year Ended December 31, 2013 Current Anticipated Date Number Comment Corrective Action Plan of Completion Contact Person Findings Related to Federal Awards Significant Deficiency in Administering Federal Awards 2013-001 The City does not have an adequate See response and corrective March 31, 2014 Emily Sander system for ensuring that certain program action plan at 2013-001. Grants Compliance income requirements of the CDBG Administrator program are being met. City of Fort Collins, Colorado Comprehensive Annual Financial Report For the fiscal year ended December 31, 2013 Prepared by the Finance Department: John Voss, Controller Mike DeKock, Accounting Manager Mindy Pfleiger, Accounting Supervisor Lisa Alexander, Accountant Wendy Shinazy, Accountant Judi Vos, Cash Systems Coordinator Louisa Liu, Administrative Aide Katie Wiggett, Administrative Assistant About our cover and section tabs… The cover picture and the picture on the “Other Schedules” tab are from the ProCycling Challenge event in Fort Collins in 2013. In May of 2013, the League of American Bicyclists named Fort Collins a Platinum Biking Friendly Community, making Fort Collins one of only four cities in the country to achieve this rank. The League offers national recognition for communities that actively support bicycling. A Bicycle Friendly Community welcomes cyclists by providing safe accommodation for cycling and encourages people to bike for transportation and recreation. For more information or to learn about FC Bikes visit fcgov.com/fcmoves. The “Introductory Section” tab shows a picture of the City’s new MAX buses. MAX, Fort Collins’ first bus rapid transit system, began service on May 10, 2014. The Fort Collins MAX fleet consists of six, 60-foot articulated busses that run on compressed natural gas. The City built 12 stations along the Mason Corridor as well as a new transit center in the South, connecting major activity and employment centers throughout the community including Midtown, CSU and Downtown. MAX links with other Transfort bus routes, Park-n-Rides, the City’s trail system and other local and regional transit routes to provide seamless service for passengers. The “Financial Section” tab features an image of Harmony and College, the busiest intersection in Fort Collins. In 2010, the City completed a $5.5 million improvement project on the intersection with funding from Building on Basics 1/4-cent sales tax, State and Federal Grants and East Harmony Maintenance funds. The improvement relieved congestion, improved safety, improved bicycle and pedestrian facilities, replaced the asphalted pavement with concrete pavement and added extensive urban design and landscaping. The picture featured on the “Notes to the Basic Financial Statements Sections” tab was taken on the Poudre trail behind the Museum of Discovery. The Poudre Trail meanders along the Poudre River for 10.10 miles. It currently runs between the Overland Trail at Lyons Park and the Environmental Learning Center on East Drake. Fort Collins maintains 35.62 miles of trails for walking, jogging, in-line skating or biking year round. Trails serve as commuter routes for many students and residents who enjoy getting away from urban Fort Collins to experience the trails’ beautiful scenery. The “Supplementary Information” tab shows a picture of the Pedestrian Bride on North College Avenue. The City of Fort Collins, the North College Urban Renewal Authority and Colorado Department of Transportation have been working together to bring North College Avenue the amenities needed to support traveler safety, economic vitality and community livability. With three sections of a four part project complete, the vision for this important northern gateway to Fort Collins is almost a full reality. The design team works closely with the public, specifically with the North Fort Collins Business Association, to develop design plans which meet City and State goals, as well as work with existing businesses. With funding secured, the City aims to begin construction on the last piece of the overall project in 2014. The “Statistical Section” tab features a picture from the recently updated 300-400 blocks of Linden Street. BHA Design transformed these blocks from a nondescript stretch of downtown to a whole new streetscape highlighted by unique features representing aspects of its historic setting. This effort, completed in 2011, extends downtown’s walk-friendly feel to connect to the Poudre River, and fosters ongoing reinvestment in this area. In 2013, Susan K. Daily designed 12 granite pavers to add a layer of interest to the new streetscape on the 300 block of Linden Street. The engraved pavers depict early Fort Collins, and work in conjunction with interpretive signs and themed benches and railings to lend an outdoor museum dimension to this area touted as the origin of Fort Collins. 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 Auditor’s 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 (Non-GAAP budgetary basis) - General Fund (Consolidated) ........ 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 (Consolidated) ................................................................................................................. 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 ............................................................. 87 Pension and Other Postemployment Benefits Plan Schedule ..................................................................... 89 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 Fort Collins Leasing Corporation ................................................................................... 116 Neighborhood Parkland (Non-GAAP budgetary basis) ................................................. 117 Conservation Trust (Non-GAAP budgetary basis) ......................................................... 118 Museum .......................................................................................................................... 119 Emergency Recovery Fund............................................................................................. 120 URA – North College District ........................................................................................ 121 URA – Prospect South TIF District ............................................................................... 122 Capital Project Fund ................................................................................................................................. 123 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget (Non-GAAP budgetary basis) .............................................. 124 Enterprise Funds ....................................................................................................................................... 126 Schedule of Revenues, Expenses, and Changes in Net Position Actual and Budget (Non-GAAP budgetary basis) Light and Power .............................................................................................................. 127 Water .............................................................................................................................. 128 Wastewater ..................................................................................................................... 129 Storm Drainage ............................................................................................................... 130 Golf ................................................................................................................................. 131 Internal Service Funds .............................................................................................................................. 133 Combining and Individual Fund Financial Statements and Schedules Statement of Net Position ............................................................................................................ 134 Statement of Revenues, Expenses and Changes in Net Position ................................................. 136 Statement of Cash Flows ............................................................................................................. 138 Schedule of Revenues, Expenses, and Changes in Net Position Actual and Budget — Internal Service Funds Equipment (Non-GAAP budgetary basis) ..................................................................... 140 Self-Insurance ................................................................................................................. 141 Data and Communications (Non-GAAP budgetary basis) ............................................. 142 Benefits ........................................................................................................................... 143 Utility Customer Service and Administrative (Non-GAAP budgetary basis) ................ 144 Fiduciary Funds ........................................................................................................................................ 145 Combining and Individual Fund Financial Statements and Schedules Schedule of Changes in Net Position Held in Trust for Pension Benefits—Actual and Budget ...................................................................................... 146 Statement of Agency Funds Assets and Liabilities ..................................................................... 147 Statement of Changes in Agency Funds Assets and Liabilities ................................................... 148 Component Unit Funds ............................................................................................................................. 149 Combining and Individual Fund Financial Statements and Schedules Reconciliation of the Balance Sheet to the Statement of Net Position ........................................ 150 City of Fort Collins Comprehensive Annual Financial Report iii Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ............................................................................ 151 Balance Sheet ............................................................................................................................. 152 Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................ 153 Schedule of Revenues, Expenditures, and Changes in Fund Balance (Non-GAAP Budgetary Basis) – General Fund .......................................................................... 154 Schedule of Revenues, Expenditures, and Changes in Fund Balance (Non-GAAP Budgetary Basis) – Debt Service ............................................................................ 155 STATISTICAL SECTION ................................................................................................................... 157 Net Position by Component – Last Ten Years ......................................................................................... 158 Changes in Net Position – Last Ten Years ............................................................................................... 159 Fund Balances, Governmental Funds – Last Ten Years ........................................................................... 160 Changes in Fund Balances, Governmental Funds – Last Ten Years ........................................................ 161 Taxable Sales by Category – Last Ten Years ........................................................................................... 162 Direct and Overlapping Sales Tax Rates – Last Ten Years ...................................................................... 163 Sales Tax Revenue Taxpayers by Industry ............................................................................................... 164 Ratios of Outstanding Debt by Type – Last Ten Years ............................................................................ 165 Ratios of General Bonded Debt Outstanding – Last Ten Years ............................................................... 166 Direct and Overlapping Governmental Activities Debt ............................................................................ 167 Legal Debt Margin Information – Last Ten Years ................................................................................... 168 Pledged Revenue Coverage – Last Ten Years .......................................................................................... 169 Demographic and Economic Statistics ..................................................................................................... 171 Principal Employers .................................................................................................................................. 172 Full-time Equivalent City Employees by Function/Program – Last Ten Years ....................................... 173 Operating Indicators by Function/Program – Last Ten Years .................................................................. 174 Capital Asset Statistics by Function/Program – Last Ten Years .............................................................. 175 OTHER SCHEDULES Wastewater Utility Enterprise SEC Rule 15c2-12 Information ................................................................ 177 Storm Drainage Utility Enterprise SEC Rule 15c2-12 Information ......................................................... 182 Water Utility Enterprise SEC Rule 15c2-12 Information ......................................................................... 184 Local Highway Finance Report Form FHWA-536 .................................................................................. 190 iv City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK. City of Fort Collins Comprehensive Annual Financial Report 1 INTRODUCTORY SECTION 2 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK. City of Fort Collins Comprehensive Annual Financial Report 3 June 8, 2014 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, 2013. 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, 2013 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, 2013, 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 auditor. 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 151,330 in 2013. This is approximately 49% 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 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 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. 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 1953, provides for the council-manager form of local government. The voters directly elect the mayor to serve a two-year term. Within districts, voters elect six Council members on a non-partisan basis, to staggered four-year terms. The financial statements, schedules and statistical tables contained in this report include all funds 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 has improved a great deal in the past year. At the end of 2013, the local unemployment rate stood at 4.7%, which compares favorably to the state rate of 6.2% and national rate of 6.7%. The essential economic indicators for the City continued to improve in 2013. The population grew approximately 1.7%, and the number of residential building permits issued increased by 32%. The City relies heavily on sales and use tax revenues, which were up 4.2%, excluding rebates. Growth in inflation, as measured by the Denver-Boulder-Greeley Consumer Price Index, was up 2.8% in 2013. Overall governmental fund revenue increased 26.6% in 2013. At year-end, the City held $325 million in unrestricted net position, $32.7 million more than it held in 2012. 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 2013, the City launched the Community Dashboard, a new online tool that measures the community’s progress in attaining the City’s strategic outcomes. Key metrics such as voluntary code compliance, unemployment rate, 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/dashboard. In 2013, staff began implementing the use of ClearPoint, a cloud-based solution for collecting performance measurement data, creating charts to visually represent that data, and facilitating easy and flexible reporting of performance. 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 City executives. 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. Mason Corridor. As of May 2014, the City of Fort Collins’ $87 million infrastructure project is completed. The Spring Creek Overpass and new South Transit Center were completed late spring, and Max began service May 10, 2014. While the Mason Corridor Plan helps make transportation more affordable and convenient, the plan represents more than a transportation initiative; the plan is designed to build on our existing investments to create a stronger community. According to the report by Economic & Planning Systems, the Mason Corridor will encourage private economic development along its length, and catalyst projects in the heart of Fort Collins. New zoning changes will promote high density, mixed-use development around the stations. The Mason City of Fort Collins Comprehensive Annual Financial Report 5 Corridor is extremely cost effective and is expected to produce financial, social and economic benefits for years to come. Continuous Improvement. In 2013, Rocky Mountain Performance Excellence (RMPEx) awarded Fort Collins Timberline status, the second highest level in the state performance excellence program. It recognizes applicants who demonstrate systematic and mature approaches, effective deployment, process learning and process integration. The City received feedback from RMPEx in six categories: leadership, strategic planning, customer focus, knowledge management, workforce focus and operations focus. The City will incorporate the feedback into its planning process to continue to improve the organization and plan to apply for the top level, Peak status, in 2014. The City also worked toward continuous improvement in 2014 by updating its Strategic Plan, a plan that reflects the input of engaged citizens, community and business partners, the Mayor and Council Members and City staff. The plan finalized in March of 2014 represents the first organization-wide, issues-driven and Council-reviewed strategic plan in the City’s history. The Strategic Plan is a tool that clearly articulates City priorities to the community and will direct the development of the 2015-2016 budget. 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 62%. In March 2013, the City of Fort Collins’ City Council approved a $53 million public assistance package to help revitalize the mall and restore essential sales tax revenue. Alberta Development Partners, the developer, expects to have the mall open in time for the 2015 holiday season. Total project investment in the community is expected to be $312 million. 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 expected to be a catalyst for improvements to public infrastructure and business redevelopment in the Midtown area. Two other significant projects in the Midtown Area include two new student housing structures: construction for the Summit on College Avenue was completed in 2013, and construction has begun on Prospect Station on Prospect Road. Both buildings give students easy access to MAX. 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. In 2013, the City approved an assistance package for Aspen Heights, a new student housing complex in the district that can accommodate up to 712 individuals. In 2014 and 2015, the City plans to continue improving the streetscape from Conifer to Willox, another $10 million investment in North College. Supporting Job Creation. In 2013, the City chose to help Woodward, a global company that has been in Fort Collins since 1955. The company had outgrown its Drake facility and planned to expand its overall facilities to accommodate continued growth. With a Business Assistance Agreement from the City of Fort Collins and the Downtown Development Authority (DDA), Woodward chose 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 the 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). The project also includes reconstruction of the Poudre Trail through a new natural area. Other current projects that will contribute to job creation in Fort Collins include the Mason Corridor and the mall redevelopment project. 6 City of Fort Collins Comprehensive Annual Financial Report 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, 2012. This was the 26th consecutive year that the City has achieved this prestigious award. In order to earn a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual report. This report must satisfy both 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 2013 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 City Manager Michael N. Beckstead Chief 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, 2013 Elected Officials Karen Weitkunat ................................................................................................................................... Mayor Bob Overbeck ........................................................................................................ District 1 Councilmember Lisa Poppaw .......................................................................................................... District 2 Councilmember Gino Campana ....................................................................................................... District 3 Councilmember Wade Troxell ......................................................................................................... District 4 Councilmember Ross Cunniff .......................................................................................................... District 5 Councilmember Gerry Horak ............................................................................... Mayor Pro Tem, 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 THIS PAGE INTENTIONALLY LEFT BLANK. City of Fort Collins Comprehensive Annual Financial Report 11 FINANCIAL SECTION 12 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK. 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, 2013, 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, 2013, 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 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 87 through 88, the Pension Plans Schedules of Funding Progress on page 89 and Other Postemployment Benefits Plan Schedule of Funding Progress on page 90 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 30, 2014 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 30, 2014 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, 2013. 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 27 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, 2013 by $1.6 billion (net position). Of the net position balance, $324 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 $89 million (5.9%). The governmental net position increased by $60.1 million (7.2%) and the business-type position increased by $28.9 million (4.2%). The General Fund, the City’s primary operating fund, ended 2013 with a $60.1 million fund balance, an increase of $4.9 million (8.8%) on a current financial resource basis. Of this amount, $52.2 million is spendable. The City’s total long-term debt decreased by $1.39 million (1%) during the current year. Within that activity, the City’s governmental debt increased by $9.25 million and business-type debt decreased by $10.64 million. The increase in governmental long-term debt was driven by the issuance of tax increment revenue bonds to be serviced by the City’s blended component unit – the Urban Renewal Authority. 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 position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between assets, deferred inflows of resources, liabilities and deferred outflows 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 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. 16 City of Fort Collins Comprehensive Annual Financial Report 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 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 City of Fort Collins Comprehensive Annual Financial Report 17 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. Individual fund data for each of the non-major proprietary funds is provided in the form of combining statements located within the supplementary information following the notes to the financial statements. The City adopts an annual appropriated budget for all of its proprietary funds. A budgetary comparison statement has been provided to demonstrate compliance with this budget. The basic proprietary fund financial statements can be found on pages 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 49-86 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 87-90 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, $1.2 billion (76.2%) 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 Capital assets increased by $53 million (4.5%) in 2013. 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, $56.7 million (3.5%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $323.7 million (20.3%), may be used to meet the City’s ongoing obligations to its citizens and creditors. The City’s total net position increased by $89 million in 2013. Unrestricted net position increased $32.75 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. 2013 2012 2013 2012 2013 2012 Current and other assets $ 256,380 $ 224,251 $ 198,662 $ 192,070 $ 455,041 $ 416,320 Capital assets 748,299 706,974 613,699 601,541 1,361,997 1,308,515 Total assets 1,004,678 931,224 812,360 793,610 1,817,039 1,724,835 Deferred Outflows of Resources 1,468 1,580 846 1,022 2,314 2,602 Other liabilities 21,458 18,853 16,401 16,256 37,859 35,109 Long-term liabilities 70,361 60,489 86,077 96,551 156,437 157,039 Total liabilities 91,819 79,342 102,477 112,807 194,297 192,149 Deferred Inflows of Resources 19,352 18,593 14 17 19,366 18,610 Net position: Net investment in capital assets 694,119 662,461 531,113 508,284 1,225,232 1,170,745 Restricted 55,648 52,465 1,032 995 56,680 53,460 Unrestricted 145,207 119,944 178,571 172,528 323,778 292,472 Total net position $ 894,974 $ 834,870 $ 710,716 $ 681,808 $ 1,605,690 $ 1,516,677 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, 2013 reflects net position increasing by $89 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. Statement 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 2013 2012 2013 2012 2013 2012 Revenues: Program revenues: Charges for services $ 32,767 $ 29,412 $ 179,834 $ 176,389 $ 212,601 $ 205,801 Operating grants & contributions 10,075 9,284 30 6 10,104 9,290 Capital grants and contributions 49,585 31,678 24,099 15,979 73,684 47,657 General revenues: Sales & use taxes 111,846 109,732 - - 111,846 109,732 Property taxes 18,485 18,188 - - 18,485 18,188 Occupational privilege taxes 2,653 2,560 - - 2,653 2,560 Lodging taxes 1,103 1,012 - - 1,103 1,012 Intergovernmental not restricted to programs 20,032 10,681 - - 20,032 10,681 Investment earnings 537 1,998 466 2,227 1,002 4,225 Miscellaneous 2,991 1,246 808 1,613 3,799 2,859 Total Revenues 250,072 215,790 205,237 196,215 455,309 412,005 Expenses: General government 40,118 34,645 - - 40,118 34,645 Public safety 56,660 55,633 - - 56,660 55,633 Cultural, parks, recreation and natural areas 40,910 32,448 - - 40,910 32,448 Planning and development 13,547 9,502 - - 13,547 9,502 Transportation 43,710 42,249 - - 43,710 42,249 Interest on long-term debt 1,406 2,148 - - 1,406 2,148 Light & power - - 116,639 101,513 116,639 101,513 Water - - 23,312 22,169 23,312 22,169 Wastewater - - 17,808 15,872 17,808 15,872 Storm drainage - - 9,428 8,119 9,428 8,119 Golf - - 2,758 2,661 2,758 2,661 Total expenses 196,352 176,625 169,946 150,333 366,298 326,958 Increase in net position before transfers 53,721 39,165 35,291 45,882 89,012 85,046 Transfers 6,383 15,837 ( 6,383 ) ( 15,837 ) - - Increase in net position 60,104 55,001 28,908 30,045 89,012 85,046 Net position - beginning 834,870 779,869 681,808 651,763 1,516,678 1,431,632 Net position - ending $ 894,974 $ 834,870 $ 710,716 $ 681,808 $ 1,605,690 $ 1,516,678 20 City of Fort Collins Comprehensive Annual Financial Report Governmental Activities: City of Fort Collins Comprehensive Annual Financial Report 21 Business-type Activities: 22 City of Fort Collins Comprehensive Annual Financial Report Governmental activities. Governmental activities increased the City’s net position by $60.1 million, accounting for 67.5% of the City’s $89 million overall increase in net position. Major variations are due to the following: Charges for services for 2013 increased $3.4 million in 2013. The increase was primarily driven by increases in economic developments with Capital Expansion, Street Oversizing and Neighborhood Parkland fees increasing $654,000, $681,000, and $355,000 respectively. Capital grants and contributions increased $17.9 million in 2013 which was mostly due to increases in transportation-related grant programs. Sales and use tax collections increased $2.1 million from 2012 collections due to economic growth. The governmental funds had a $19.7 million increase in expenditures. Included in the increase was $8.5 million increase in Cultural, Parks, Recreation and Natural Areas, $5.5 million increase in General Government, and $4 million in Planning and Development expenditures. The increase in expenditures were due to increases in personnel costs, economic rebates/development, land improvements and street maintenance. Business-type activities. Business-type activities in the utility funds increased the City’s net position by $28.9 million, accounting for 32.5% of the City’s $89 million increase in net position. Major variations are due to the following: Charges for services in the utilities business activities totaled $179.8 million for an increase of $3.4 million (2%) from 2012 to 2013. Light and Power operating revenues increased 5.6% due to a 4.33% increase in electric rates in 2013. In addition, a slight shift in usage among customer classes resulted in a higher proportion of kWh sales to the residential rate class which has a higher revenue perkWh than the commercial and industrial rate classes. Water operating revenues decreased 8.2% compared to 2012. Wastewater operating revenues decreased 2.2% from 2012. Storm drainage rates remained unchanged in 2013 and the fund’s revenues increased 2.2% due to modest customer growth. Other Utility revenues totaled $25.4 million an increase of $5.6 million compared to 2012. Total Light and Power capital grant and contribution revenues increased 54.4% in 2013 due to an increase in grant revenue of $2.5 million for the Smart Grid Investment Grant. An upswing in development and construction activity resulted in a $2.4 million increase in electric development fee revenues. Total Water grant and contribution revenues increased 80.5% in 2013 for contribution increase of $2.1 million due to increased development and an NRCS grant received for the High Park Fire mitigation work. Total business-type expenses totaled $170 million in 2013, an increase of $19.6 million compared to 2012. Light and Power expenses increased $15.1 million (14.9%) due to an increase in purchase power expenses and Energy Service programs, as well as payments to sub-recipient for Smart Grid Investment Grant, Utilities’ Customer Service and Administration Fund and General fund for increased operating revenues. Wastewater expenses increased $1.9 million (12.2%) due to payments in lieu of taxes in previous years were expensed in 2013, as well as an increase to internal service charges. Storm Drainage expenses increased $1.3M (16.1%) due to payments to Boxelder Basin Regional Stormwater Authority. City of Fort Collins Comprehensive Annual Financial Report 23 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, 2013, the total Governmental fund balances were $169.9 million, an increase of $27.2 million (19.1%) compared to the prior year. There was $13.2 million non-spendable, restricted was $55.9 million, committed was $37.8 million, assigned was $41.8 million, and unassigned was $21.2 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 $.6 million which resulted in a December 31, 2013 fund balance of $21 million. Restricted fund balance was $11.9 million for voter approved projects and assigned was $9.1 million. The largest capital project expenditures were: $1.1 million for the Senior Center Expansion and $40 million for the Mason Street Transportation Corridor. The General Fund is the chief operating fund of the City. At December 31, 2013, the total fund balance was $60.1 million. The spendable fund balance was $52.2 million. The General Fund increased $4.9 million compared to an increase of $15.1 million in 2012. The larger increase in 2012 was primarily due to a one-time transfer from the Sales and Use Tax Fund for $5.9 million and increases in the City’s investment in Community and Operations ($3.5 million) and Sustainability Services ($2.4 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, 2013, the total fund balance which is restricted due to voter constraints was $12.8 million. This is an increase of $2.5 million due primarily to an increase of sales tax revenue in excess of projections. The Transportation Services Special Revenue Fund is another major governmental fund of the City. As of December 31, 2013, the fund balance was $15 million and increased by $1.4 million from 2012. The primary increase is due to larger revenue collected in sales tax and collections of charges for services. The fund balance consisted of $1.3 million restricted for Civic Center Parking Structure and assigned was $13.7 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, 2013 fund balance was an unassigned deficit $7.8 million and $5.3 million was nonspendable. 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. 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 2013 ordinances created new budget appropriations for the following items: $3.8 million for purchase orders that were carried forward from 2012 and $3.4 million for the Woodward Project. The variance between actual expenditures and the final budget amounted to $10.5 million (10.4%) 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: $2.3 million appropriated for contingencies associated with the Woodward Project that were unneeded, $.8 million unspent for rebate programs, $1.1 million unspent appropriations for salary positions due to the timing of hiring employees, $1 million in expected payments to subrecipients that were not needed due to timing and $2.3 million in unspent capital purchases contingency and pending lease purchase equipment. 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, 2013 amounted to $1,362 million (net of accumulated depreciation). This was an increase of $53.5 million (4.1%). 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 2013, the City spent $15.3 million on its street maintenance program as compared to $15.6 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 87-88 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 12/31/13 Ended 12/31/13 Light & Power $ 56,551 $ 11,727 Water 70,881 8,325 Wastewater 34,617 5,855 Storm Drainage 20,376 5,423 Total of Major Enterprise Funds 182,426 31,330 Other Enterprise Fund - Golf 560 42 Total Enterprise Funds 182,985 31,373 Internal Service Funds 20,086 ( 2,931 ) Total Proprietary Funds $ 203,072 $ 28,442 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 2013: Additions to Street Infrastructure - $5.1 million N. College/Willox Lane Improvements - $2.3 million Linden Street Improvements - $1.9 million BOB – N. College Avenue - $7.2 million Other capital assets in 2013: Bridge Replacement projects - accumulated costs to date - $5.8 million Mason Street Transportation Corridor - accumulated costs to date - $62.2 million Proprietary Activities Completed in 2013: Water reclamation replacement program - $1 million Various water rights - $1.8 million CR54G Waterline improvements - $1.2 million SW Annex Venus/Milky Way SW - $.9 million Mason Street Corridor/Duct Bk Relocation - $.9 million Additional information on the City’s capital assets can be found in Note III.C. on pages 63-64 of this report. Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $137.6 million (bonds, certificates of participation, capital leases, etc.). This was a decrease of $1.4 million (1%). Of this amount, $90.7 million represents bonds secured by specified revenue sources (i.e., revenue bonds). The remaining $46.9 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 2013 2012 2013 2012 2013 2012 Land, rights of way, water rights, other $ 205,036 $ 203,022 $ 69,411 $ 67,989 $ 274,446 $ 271,012 Street system infrastructure 282,127 265,485 - - 282,127 265,485 Construction in progress 78,867 54,466 97,851 88,308 176,718 142,774 Infrastructure 8,145 8,612 - - 8,145 8,612 Buildings and improvements 90,320 92,882 138,851 139,765 229,171 232,647 Improvements other than buildings 54,240 59,610 294,481 291,663 348,721 351,273 Machinery and equipment 29,563 22,897 13,104 13,815 42,668 36,712 Total capital assets $ 748,299 $ 706,974 $ 613,699 $ 601,541 $ 1,361,997 $ 1,308,515 (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 65-76 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 Accounting Manager’s attention at the following address: Accounting Manager 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 2013 2012 2013 2012 2013 2012 Revenue bonds $ 11,085 $ - $ 79,597 $ 90,007 $ 90,682 $ 90,007 Certificates of participation 37,905 41,845 950 1,095 38,855 42,940 Assignment of lease payments 455 501 1,448 1,594 1,903 2,095 Capital leases 5,872 3,719 271 208 6,143 3,927 Total outstanding debt $ 55,317 $ 46,065 $ 82,266 $ 92,904 $ 137,583 $ 138,969 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, 2013 Primary Government -- City of Fort Collins Governmental Business-type Component Activities Activities Total Unit ASSETS Cash and cash equivalents $ 23,051,652 $ 18,987,806 $ 42,039,458 $ 509,447 Investments 161,503,603 154,087,171 315,590,774 3,330,470 Receivables: Property taxes 19,329,009 - 19,329,009 3,483,027 Sales and use taxes 11,905,708 - 11,905,708 - Accounts 5,647,150 21,667,561 27,314,711 - Notes 5,534,522 320,908 5,855,430 - Interest 447,335 431,870 879,205 15,683 Prepaid 229,190 - 229,190 710 Internal Balances 4,046,395 (4,046,395) - - Due from other governments 7,442,028 1,302,678 8,744,706 3,764 Inventories of materials and supplies 545,254 4,878,067 5,423,321 - Inventory of real property held for resale 2,896,665 - 2,896,665 135,464 Restricted cash and cash equivalents 1,585,264 1,032,219 2,617,483 46,377 Restricted investments - - - 2,491,126 Investment in joint venture 12,215,808 - 12,215,808 - Capital assets (non-depreciable) 566,030,038 167,261,923 733,291,961 2,528,747 Capital assets (net of accumulated depreciation) 182,268,665 446,436,676 628,705,341 2,761,684 Total Assets 1,004,678,286 812,360,484 1,817,038,770 15,306,499 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 1,467,592 846,399 2,313,991 - Total Deferred outflows of resources 1,467,592 846,399 2,313,991 - LIABILITIES Accounts payable 17,427,196 15,194,439 32,621,635 6,254 Interest payable 124,889 299,248 424,137 49,925 Wages payable 2,276,134 900,954 3,177,088 11,404 Due to other governments 68,575 - 68,575 - Unearned revenue 1,367,344 - 1,367,344 23,203 Deposits held 194,267 6,000 200,267 - Non-Current liabilities Due within one year 13,960,950 11,626,079 25,587,029 1,380,414 Due in more than one year 56,399,874 74,450,582 130,850,456 15,190,000 Total Liabilities 91,819,229 102,477,302 194,296,531 16,661,200 DEFERRED INFLOWS OF RESOURCES Property taxes 19,329,009 - 19,329,009 3,483,027 Deferred gain on refunding 23,254 13,953 37,207 - Total Deferred inflows of resources 19,352,263 13,953 19,366,216 3,483,027 NET POSITION Net investment in capital assets 694,118,770 531,112,533 1,225,231,303 5,290,431 Restricted for: Debt service 952,103 857,393 1,809,496 2,541,325 Capital projects 27,938,994 - 27,938,994 - Gifts and grants 11,749,184 - 11,749,184 - Agreements 9,676,929 174,826 9,851,755 - Emergencies 5,331,680 - 5,331,680 - Unrestricted (deficit) 145,206,726 178,570,876 323,777,602 (12,669,484) Total Net Position (Deficit) $ 894,974,386 $ 710,715,628 $ 1,605,690,014 $ (4,837,728) 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, 2013 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTIONS/ PROGRAM ACTIVITIES: Primary Government: Governmental Activities: General government $ 40,117,619 $ 6,943,755 $ 317,853 $ 6,717,861 Public safety 56,660,401 1,688,496 1,127,516 564,128 Culture, parks, recreation and natural areas 40,910,349 8,486,492 1,840,498 6,772,329 Planning and development 13,547,271 3,539,596 1,140,087 - Transportation 43,709,809 12,108,239 5,648,859 35,530,572 Interest on long-term debt 1,406,227 - - - Total Governmental Activities 196,351,676 32,766,578 10,074,813 49,584,890 Business-type Activities: Light & Power 116,639,336 115,878,566 29,115 13,859,282 Water 23,312,264 26,209,517 - 6,225,188 Wastewater 17,808,100 20,429,803 - 3,172,339 Storm Drainage 9,427,997 14,395,531 440 842,455 Golf 2,758,202 2,920,827 - - Total Business-type Activities 169,945,899 179,834,244 29,555 24,099,264 Total Primary Government 366,297,575 212,600,822 10,104,368 73,684,154 Component Unit: Downtown Development Authority $ 9,957,628 $ 34,877 $ 47,412 $ - 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 Position Primary Government - City of Fort Collins Governmental Business-type Component Activities Activities Total Unit $ (26,138,150) $ $ (26,138,150) $ (53,280,261) (53,280,261) (23,811,030) (23,811,030) (8,867,588) (8,867,588) 9,577,861 9,577,861 (1,406,227) (1,406,227) (103,925,395) (103,925,395) 13,127,627 13,127,627 9,122,441 9,122,441 5,794,042 5,794,042 5,810,429 5,810,429 162,625 162,625 - 34,017,164 34,017,164 (103,925,395) 34,017,164 (69,908,231) (9,875,339) General Revenues Sales & use taxes 111,845,544 - 111,845,544 - Property taxes 18,484,916 - 18,484,916 3,318,234 Occupational privilege taxes 2,652,965 - 2,652,965 - Lodging taxes 1,102,694 - 1,102,694 - Intergovernmental not restricted to programs 20,032,185 - 20,032,185 - Investment earnings 536,696 465,646 1,002,342 14,521 Miscellaneous 2,990,934 808,399 3,799,333 878 Transfers 6,383,485 (6,383,485) - - Total general revenues and transfers 164,029,419 (5,109,440) 158,919,979 3,333,633 Changes in Net Position 60,104,024 28,907,724 89,011,748 (6,541,706) Net Position--January 1 834,870,362 681,807,904 1,516,678,266 1,703,978 Net Position (Deficit)--December 31 $ 894,974,386 $ 710,715,628 $ 1,605,690,014 $ (4,837,728) 32 City of Fort Collins Comprehensive Annual Financial Report GOVERNMENTAL FUNDS BALANCE SHEET DECEMBER 31, 2013 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 $ 3,954,638 $ 1,201,929 $ 1,418,005 $ 2,747,175 $ 277,654 $ 7,314,356 $ 16,913,757 Investments 45,073,124 9,811,016 11,735,464 22,578,951 2,274,427 51,969,756 143,442,738 Receivables Property taxes 17,812,490 - - - 1,220,057 296,462 19,329,009 Sales and use taxes 7,420,755 2,358,626 708,776 - - 1,417,551 11,905,708 Accounts, net 741,577 3,090 1,712,530 2,016,949 - 280,421 4,754,567 Notes and loans - - - - 5,303,939 230,583 5,534,522 Interest 121,131 26,150 21,294 66,216 6,351 154,546 395,688 Prepaid item 200 - 150 - - 9,046 9,396 Due from other funds 116,156 - - - - - 116,156 Advances to other funds 5,000,000 - - - - 2,651,970 7,651,970 Due from other governments 96,580 - 137,947 5,408,048 - 1,789,516 7,432,091 Inventory of real property held for resale 2,896,665 - - - - - 2,896,665 Restricted - cash and cash equivalents 3,049 - 435,876 - 952,103 174,826 1,565,854 Total Assets 83,236,365 13,400,811 16,170,042 32,817,339 10,034,531 66,289,033 221,948,121 LIABILITIES Accounts payable, accruals, and other 3,805,147 454,875 921,570 9,368,447 188 1,553,427 16,103,654 Wages payable 1,298,717 145,710 257,589 2,606 4,859 360,407 2,069,888 Due to other governments 63,319 - 1,512 - - 3,744 68,575 Due to other funds - - - - - 116,156 116,156 Unearned revenue 72,249 - - - - 1,295,095 1,367,344 Advance from other funds - - - - 10,303,939 - 10,303,939 Deposits held - - - - - 194,267 194,267 Total Liabilities 5,239,432 600,585 1,180,671 9,371,053 10,308,986 3,523,096 30,223,823 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 17,812,490 - - - 1,220,057 296,462 19,329,009 Unavailable revenue - grants 64,524 - - 2,408,221 - 57,522 2,530,267 Total Deferred inflows of resources 17,877,014 - - 2,408,221 1,220,057 353,984 21,859,276 FUND BALANCES (DEFICIT) Nonspendable 7,896,865 - 150 - 5,303,939 9,046 13,210,000 Restricted 12,161,108 12,800,226 1,251,138 11,911,811 952,103 16,803,087 55,879,473 Committed 646,470 - - - - 37,141,796 37,788,266 Assigned 10,403,459 - 13,738,083 9,126,254 - 8,579,569 41,847,365 Unassigned 29,012,017 - - - (7,750,554) (121,545) 21,139,918 Total Fund Balances (Deficit) 60,119,919 12,800,226 14,989,371 21,038,065 (1,494,512) 62,411,953 169,865,022 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 83,236,365 $ 13,400,811 $ 16,170,042 $ 32,817,339 $ 10,034,531 $ 66,289,033 $ 221,948,121 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, 2013 Amounts reported for governmental activities in the statement of net position (page 29) are different because: Total fund balances - governmental funds (page 32) $ 169,865,022 Capital assets of $870,732,265 net of accumulated depreciation of $127,499,458 used in governmental activities are not financial resources, therefore, are not reported in the funds. 743,232,807 City's joint venture equity interest in Fort Collins/Loveland Airport. 12,215,808 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 2,530,267 Internal service fund allocated to business type activities 6,698,364 Long-term liabilities are not due and payable in the current period and therefore are not reported in funds: Interest payable (111,897) Bonds payable (11,085,000) Certificates of Participation (37,905,000) Assignment of lease (455,287) Deferred charge on refunding, net of deferred gain 1,444,338 Premium (307,158) Capital lease (2,398,225) Compensated absences (4,906,234) Net pension obligation (3,203,138) Postemployment healthcare obligation (1,188,127) (60,115,728) 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. 20,547,846 Net position of governmental activities (page 29) $ 894,974,386 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 (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2013 Primary Government Keep Trans- Urban Total Fort Collins portation Capital Renewal Other Total General Great Services Projects Authority Governmental Governmental REVENUES Taxes $ 89,625,619 $ 22,810,816 $ 6,689,349 $ - $ 1,284,690 $ 13,675,644 $ 134,086,118 Licenses and permits 2,776,268 - 263,780 - - - 3,040,048 Intergovernmental 10,903,908 - 7,081,454 39,734,050 - 10,976,793 68,696,205 Fees and charges for services 8,668,524 - 6,884,932 - - 17,769,684 33,323,140 Fines and forfeitures 2,803,037 - - - - - 2,803,037 Earnings (loss) on investments 113,166 (1,342) 54,739 141,255 77,174 200,373 585,365 Miscellaneous revenue 1,490,609 - 288,123 1,390,479 233,832 2,871,544 6,274,587 Total Revenues 116,381,131 22,809,474 21,262,377 41,265,784 1,595,696 45,494,038 248,808,500 EXPENDITURES Current operating Police services 31,009,177 3,795,902 - - - - 34,805,079 Financial services 3,583,699 32,552 - - - - 3,616,251 Community and operation 19,494,541 2,820,651 - 3,206,715 - 18,450,914 43,972,821 Planning, development and transportation 4,918,379 8,784,478 22,887,695 547,435 - 8,692,289 45,830,276 Executive, legislative, and judicial 5,287,972 81,887 - - - - 5,369,859 Employee and communications 2,708,537 57,822 - - - - 2,766,359 Sustainability services 5,328,328 517,349 - - 4,668,120 1,817,825 12,331,622 Other 1,649,314 - - 45,013 - 58,288 1,752,615 Intergovernmental Fire protection 17,412,296 2,418,573 - - - 234,353 20,065,222 Capital outlay 830,728 1,586,904 1,909,966 44,430,513 - 6,299,209 55,057,320 Debt service Principal 27,725 196,814 221,290 - - 3,756,280 4,202,109 Interest and debt service costs 1,903 19,164 17,432 - 596,493 882,468 1,517,460 Total Expenditures 92,252,599 20,312,096 25,036,383 48,229,676 5,264,613 40,191,626 231,286,993 Excess (Deficiency) of Revenues Over (Under) Expenditures 24,128,532 2,497,378 (3,774,006) (6,963,892) (3,668,917) 5,302,412 17,521,507 OTHER FINANCING SOURCES (USES) Transfers in 2,085,971 - 4,226,822 7,706,487 - 19,425,388 33,444,668 Transfers out (21,506,120) - (436,700) (109,210) - (15,652,646) (37,704,676) Debt Debt issued - - - - 11,085,000 - 11,085,000 Premium on Debt - - - - 316,806 - 316,806 Capital leases 158,771 - 1,347,978 - - - 1,506,749 Sale of capital assets - - 15,928 - - 1,002,444 1,018,372 Total Other Financing Sources (Uses) (19,261,378) - 5,154,028 7,597,277 11,401,806 4,775,186 9,666,919 Net Changes in Fund Balances (Deficit) 4,867,154 2,497,378 1,380,022 633,385 7,732,889 10,077,598 27,188,426 Fund Balances (Deficit)-January 1 55,252,765 10,302,848 13,609,349 20,404,680 (9,227,401) 52,334,355 142,676,596 Fund Balances (Deficit)-December 31 $ 60,119,919 $ 12,800,226 $ 14,989,371 $ 21,038,065 $ (1,494,512) $ 62,411,953 $ 169,865,022 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 (DEFICIT) OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2013 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) $ 27,188,426 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, $57,665,024, exceeded depreciation, $11,405,296, in the current period. 46,259,728 The net effect of various miscellaneous transactions involving capital assets: Contribution to undivided interest (5,580,266) Disposal (245,230) Transfer of assets between governmental and business type activities 420,000 (5,405,496) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. 840,819 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 4,202,109 Debt payment made by DDA on behalf of the City 229,655 Issuance of capital lease (1,506,749) Debt issued (11,085,000) Premium on debt issued (316,806) Change in net pension obligation (437,400) Change in postemployment healthcare benefits 58,125 Change in compensated absences (295,309) Amortization of premium, discount, deferred amount of refunding (98,076) Interest expense (17,474) (9,266,925) Expenses in Statement of Activities related to City's Equity in Joint Venture Change in Non-Capital Equity position in Fort Collins/Loveland Airport 953,452 Transfer of internal service fund net position to business type activities 1,663,343 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. (2,129,323) Change in net position of governmental activities (pages 30-31) $ 60,104,024 The notes to the financial statements are an integral part of this statement. 36 City of Fort Collins Comprehensive Annual Financial Report GENERAL FUND (CONSOLIDATED) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Original Final Actual Budget Budget Variance REVENUES Taxes $ 89,625,619 $ 88,409,365 $ 88,409,365 $ 1,216,254 Licenses and permits 2,776,268 1,709,850 1,968,766 807,502 Intergovernmental 10,897,396 9,882,167 10,492,064 405,332 Fees and charges for services 8,668,524 7,093,901 7,331,333 1,337,191 Fines and forfeitures 2,803,037 2,702,900 2,702,900 100,137 Earnings on investments 105,922 424,377 424,377 (318,455) Miscellaneous revenue 1,476,271 798,355 895,831 580,440 Total Revenues 116,353,037 111,020,915 112,224,636 4,128,401 EXPENDITURES Current operating Police services 31,392,801 31,258,056 34,003,590 2,610,789 Financial services 3,646,819 3,757,611 3,818,486 171,667 Community and operation 18,523,850 18,622,347 20,073,795 1,549,945 Planning, development and transportation 4,963,295 4,988,866 5,527,648 564,353 Executive, legislative, and judicial 5,444,426 5,273,378 5,814,174 369,748 Employee and communications 2,708,537 3,108,619 3,324,807 616,270 Sustainability services 5,490,314 5,650,834 9,775,623 4,285,309 Other 1,192,045 1,385,472 1,467,751 275,706 Intergovernmental Fire protection 17,412,296 17,465,943 17,465,943 53,647 Debt Service Principal 27,725 56,000 56,000 28,275 Interest and debt service costs 1,903 - - (1,903) Total Expenditures 90,804,011 91,567,126 101,327,817 10,523,806 Excess of Revenues Over Expenditures 25,549,026 19,453,789 10,896,819 14,652,207 OTHER FINANCING SOURCES (USES) Capital leases 158,771 - - 158,771 Interfund advance (5,000,000) - (5,000,000) - Transfers in 1,154,551 1,184,944 1,184,994 (30,443) Transfers out (21,430,804) (21,290,724) (21,440,724) 9,920 Total Other Financing Sources (Uses) (25,117,482) (20,105,780) (25,255,730) 138,248 Net Change in Fund Balances Before Reconciling Items 431,544 $ (651,991) $ (14,358,911) $ 14,790,455 RECONCILIATION TO GAAP BASIS Advance to other fund 5,000,000 Activities Reported within sub-funds Total Revenue 28,094 Total Expenditures (1,448,588) Total Other Financing Sources 856,104 Total Reconciling Items 4,435,610 Net Change in Fund Balance 4,867,154 Fund Balances--January 1 55,252,765 Fund Balances--December 31 $ 60,119,919 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, 2013 Original Final Actual Budget Budget Variance REVENUES Taxes $ 22,810,816 $ 21,046,800 $ 21,046,800 $ 1,764,016 Earnings (loss) on investments (1,342) 35,864 35,864 (37,206) Total Revenues 22,809,474 21,082,664 21,082,664 1,726,810 EXPENDITURES Programs Street Maintenance 7,114,812 7,254,756 7,252,039 137,227 Other Street and Transportation 1,394,122 1,872,530 2,182,224 788,102 Police Services 3,944,344 4,093,009 4,343,598 399,254 Fire Protection 2,418,573 2,418,573 2,418,573 - Parks and Recreation 2,140,124 2,316,807 2,430,620 290,496 Other 1,766,077 2,492,129 3,179,710 1,413,633 Total Programs 18,778,052 20,447,804 21,806,764 3,028,712 Projects (project level of budgetary control) Trail Acquisition and Development 474,000 - 474,000 - Transit 498,908 - 656,706 157,798 Fort Collins Bikes Programs 108,758 - 303,638 194,880 City Bridge Program 1,401,952 - 4,434,931 3,032,979 Pedestrian Access 219,301 - 260,000 40,699 North College Improvements-Conifer/Willox 229,641 - 326,481 96,840 Total Projects 2,932,560 - 6,455,756 3,523,196 Total Expenses 21,710,612 20,447,804 28,262,520 6,551,908 Net Change in Fund Balances Before Reconciling Items 1,098,862 RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 1,398,516 Net Change in Fund Balances 2,497,378 Fund Balances--January 1 10,302,848 Fund Balances--December 31 $ 12,800,226 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, 2013 Prior Year Cumulative Original Final Actual Actual Actual Budget Budget Variance REVENUES Taxes $ 6,689,349 $ - $ 6,689,349 $ 6,348,600 $ 6,348,600 $ 340,749 Licenses and permits 263,780 - 263,780 165,000 165,000 98,780 Intergovernmental 7,081,454 - 7,081,454 6,859,323 7,792,359 (710,905) Fees and charges for services 6,884,932 - 6,884,932 6,361,880 6,361,880 523,052 Earnings on investments 54,739 - 54,739 120,091 120,091 (65,352) Miscellaneous revenue 288,123 - 288,123 48,480 58,980 229,143 Total Revenues 21,262,377 - 21,262,377 19,903,374 20,846,910 415,467 EXPENDITURES Programs (fund level of budgetary control) PDT Administration 111,552 - 111,552 118,096 118,096 6,544 FC Moves 646,770 - 646,770 622,077 774,559 127,789 Engineering 2,507,903 - 2,507,903 2,751,694 2,806,149 298,246 Streets 15,648,047 - 15,648,047 14,145,972 16,158,984 510,937 Traffic 3,881,229 - 3,881,229 4,383,660 4,591,696 710,467 Parking 1,907,627 - 1,907,627 2,344,643 2,411,007 503,380 Total Programs 24,703,128 - 24,703,128 24,366,142 26,860,491 2,157,363 Projects (level of budgetary control) FC Bikes 27,920 205,054 232,974 - 232,974 - Bike Library - 82,790 82,790 - 82,790 - Traffic Signal System Software 208,801 64,199 273,000 - 496,370 223,370 Safe Routes to School 96,534 71,672 168,206 - 210,176 41,970 Total Grants 333,255 423,715 756,970 - 1,022,310 265,340 Total Expenditures 25,036,383 423,715 25,460,098 24,366,142 27,882,801 134,333 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,774,006) (423,715) (4,197,721) (4,462,768) (7,035,891) 2,838,170 OTHER FINANCING SOURCES (USES) Transfers in: General Fund 3,931,822 - 3,931,822 3,936,424 4,015,198 (83,376) Storm Water 215,000 - 215,000 215,000 215,000 - Sales and Use Tax - Bldg on Basics 80,000 - 80,000 80,000 80,000 - Transfers out: Debt Service Fund (105,460) - (105,460) (105,860) (105,860) 400 Capital Projects Fund (331,240) - (331,240) - (220,394) (110,846) Proceeds from Lease Purchase 1,347,978 - 1,347,978 - 1,347,978 - Sale of capital assets 15,928 - 15,928 - - 15,928 Total Other Financing Sources (Uses) 5,154,028 - 5,154,028 4,125,564 5,331,922 (177,894) Net Change in Fund Balances 1,380,022 $ (423,715) 956,307 $ (337,204) $ (1,703,969) $ 2,660,276 Fund Balances--January 1 13,609,349 13,609,349 Plus Prior Years' Project Expenditures 423,715 Fund Balances--December 31 $ 14,989,371 $ 14,989,371 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 (CONSOLIDATED) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT)-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Original Final Actual Budget Budget Variance REVENUES Taxes $ 1,284,690 $ 1,176,789 $ 1,176,789 $ 107,901 Earnings on investments 77,174 93,766 93,766 (16,592) Miscellaneous revenue 233,832 - - 233,832 Total Revenues 1,595,696 1,270,555 1,270,555 325,141 EXPENDITURES Sustainability Services 4,668,120 234,627 5,276,057 607,937 Interest 596,493 950,966 950,966 354,473 Total Expenditures 5,264,613 1,185,593 6,227,023 962,410 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,668,917) 84,962 (4,956,468) 1,287,551 OTHER FINANCING SOURCES (USES) Payments on advances (10,938,089) (10,938,089) (10,938,089) - Proceeds from advances 5,000,000 - 5,000,000 - Transfers out - - (70,000) 70,000 Debt - Debt issued 11,085,000 11,085,000 11,085,000 - Premium on Debt 316,806 - - 316,806 Total Other Financing Sources (Uses) 5,463,717 146,911 5,076,911 386,806 Net Change 1,794,800 $ 231,873 $ 120,443 $ 1,674,357 RECONCILIATION TO GAAP BASIS Payments on advances 10,938,089 Proceeds from advances (5,000,000) Total Reconciling Items 5,938,089 Net Change in Fund Balances 7,732,889 Fund Balances (Deficit) --January 1 (9,227,401) Fund Balances (Deficit) --December 31 $ (1,494,512) 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, 2013 Light Storm and Power Water Wastewater Drainage ASSETS Current Assets Cash and cash equivalents $ 5,352,879 $ 7,209,516 $ 3,586,625 $ 2,275,455 Investments 43,542,038 59,178,627 29,450,434 18,653,200 Receivables Accounts, net 14,023,025 2,982,681 2,727,581 1,919,778 Note receivable 83,583 100,000 - - Interest 120,590 166,707 82,466 51,927 Prepaid item - - - - Due from other governments 958,004 344,674 - - Inventories of materials and supplies 4,878,067 - - - Total Current Assets 68,958,186 69,982,205 35,847,106 22,900,360 Non-Current Assets Advance to other funds - 2,651,969 - - Restricted - cash and cash equivalents - 268,218 242,301 521,700 Land, water rights, other 1,878,377 53,170,063 3,217,675 8,278,750 Buildings, improvements and equipment 239,410,974 252,682,949 202,468,258 103,973,828 Accumulated depreciation (134,475,953) (112,934,640) (78,403,227) (31,064,947) Construction in progress 38,201,537 19,586,045 17,292,002 22,771,499 Note receivable 137,325 - - - Total Non-Current Assets 145,152,260 215,424,604 144,817,009 104,480,830 Total Assets 214,110,446 285,406,809 180,664,115 127,381,190 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding - 116,427 126,266 603,706 Total Deferred Outflows of Resources - 116,427 126,266 603,706 LIABILITIES Current Liabilities Accounts payable 11,133,783 1,123,980 410,785 2,218,099 Interest payable 42,800 55,105 107,578 81,205 Wages payable 275,130 185,215 150,106 68,575 Compensated absences 671,178 388,690 323,571 156,077 Bonds payable 1,580,804 2,758,112 1,683,104 3,213,420 Claims payable - - - - Capital lease obligations - - - - Total Current Liabilities 13,703,695 4,511,102 2,675,144 5,737,376 Non-Current Liabilities Postemployment healthcare benefits 415,844 - 237,625 - Bonds payable 10,569,863 12,354,431 28,719,961 19,870,089 Claims payable - - - - Capital lease obligations - - - - Deposits held 6,000 - - - Total Non-Current Liabilities 10,991,707 12,354,431 28,957,586 19,870,089 Total Liabilities 24,695,402 16,865,533 31,632,730 25,607,465 DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding - - - - Total Deferred Inflows of Resources - - - - NET POSITION Net investment in capital assets 132,864,268 197,508,301 114,297,909 81,479,327 Restricted: debt service - 268,218 242,301 346,874 Restricted: fiscal agent - - - 174,826 Unrestricted 56,550,776 70,881,184 34,617,441 20,376,404 Total Net Position $ 189,415,044 $ 268,657,703 $ 149,157,651 $ 102,377,431 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 $ 87,252 $ 18,511,727 $ 6,613,974 653,421 151,477,720 20,670,316 13,857 21,666,922 893,222 - 183,583 - 1,961 423,651 59,866 - - 219,794 - 1,302,678 9,937 - 4,878,067 545,254 756,491 198,444,348 29,012,363 - 2,651,969 - - 1,032,219 19,410 2,865,975 69,410,840 30,126 8,484,949 807,020,958 18,818,753 (4,095,929) (360,974,696) (13,392,569) - 97,851,083 - - 137,325 - 7,254,995 617,129,698 5,475,720 8,011,486 815,574,046 34,488,083 - 846,399 - - 846,399 - 89,099 14,975,746 1,542,235 12,560 299,248 12,992 26,093 705,119 402,081 69,052 1,608,568 940,838 307,911 9,543,351 - - - 2,270,733 78,049 78,049 915,975 582,764 27,210,081 6,084,854 - 653,469 - 2,089,801 73,604,145 - - - 2,623,594 192,968 192,968 2,557,626 - 6,000 - 2,282,769 74,456,582 5,181,220 2,865,533 101,666,663 11,266,074 13,953 13,953 - 13,953 13,953 - 4,572,313 530,722,118 3,116,174 - 857,393 - - 174,826 19,410 559,687 182,985,492 20,086,425 $ 5,132,000 714,739,829 $ 23,222,009 2,674,163 (6,698,364) $ 710,715,628 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, 2013 Light Storm and Power Water Wastewater Drainage OPERATING REVENUES Charges for services $ 114,757,689 $ 25,953,822 $ 20,337,824 $ 14,384,673 Total Operating Revenues 114,757,689 25,953,822 20,337,824 14,384,673 OPERATING EXPENSES Personal services 7,676,785 6,249,772 4,930,675 1,908,185 Contractual services 10,554,688 6,251,282 3,873,376 2,095,968 Commodities 81,723,155 1,725,170 1,244,938 184,788 Customer service and administrative charges 4,683,584 3,208,560 1,723,931 1,989,809 Other 4,338,282 674,692 168,694 331,277 Depreciation 8,032,824 5,514,445 4,696,652 2,134,399 Total Operating Expenses 117,009,318 23,623,921 16,638,266 8,644,426 Operating Income (Loss) (2,251,629) 2,329,901 3,699,558 5,740,247 NONOPERATING REVENUES (EXPENSES) Earnings on investments 74,170 164,353 171,776 48,495 Intergovernmental 933,688 751,083 - 440 Other revenue 1,417,461 325,173 98,411 18,471 Gain (loss) on sale of capital assets (873,819) 58,330 31,065 27,782 Interest expense (483,529) (580,735) (1,307,778) (1,012,449) Total Nonoperating Revenues (Expenses) 1,067,971 718,204 (1,006,526) (917,261) Income (Loss) Before Contributions and Transfers (1,183,658) 3,048,105 2,693,032 4,822,986 Capital contributions 12,954,709 5,474,104 3,172,339 842,455 Transfers in 86,147 - - 32,000 Transfers out (129,845) (197,428) (10,136) (274,329) Change in Net Position 11,727,353 8,324,781 5,855,235 5,423,112 Net Position--January 1 177,687,691 260,332,922 143,302,416 96,954,319 Net Position--December 31 $ 189,415,044 $ 268,657,703 $ 149,157,651 $ 102,377,431 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 $ 2,895,447 $ 178,329,455 $ 44,859,377 2,895,447 178,329,455 44,859,377 1,209,568 21,974,985 14,844,541 841,268 23,616,582 30,917,073 456,328 85,334,379 6,628,453 - 11,605,884 - - 5,512,945 14,917 277,766 20,656,086 1,525,310 2,784,930 168,700,861 53,930,294 110,517 9,628,594 (9,070,917) 2,665 461,459 19,666 - 1,685,211 - 32,943 1,892,459 1,338,643 1,185 (755,457) 66,518 (69,683) (3,454,174) (73,873) (32,890) (170,502) 1,350,954 77,627 9,458,092 (7,719,963) - 22,443,607 - - 118,147 6,779,659 (35,458) (647,196) (1,990,602) 42,169 31,372,650 (2,930,906) 5,089,831 26,152,915 $ 5,132,000 $ 23,222,009 (801,583) (1,663,343) $ 28,907,724 44 City of Fort Collins Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 Light and Power Water Wastewater Storm Drainage CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users $ 113,965,287 $ 25,601,404 $ 20,546,286 $ 14,428,575 Receipts from interfund services provided - - - - Cash paid to employees for services (7,373,217) (6,212,191) (4,845,388) (1,868,643) Cash paid to other suppliers of goods & services (96,924,245) (9,982,869) (5,533,431) (1,154,830) Payments for interfund services used (4,683,584) (3,459,335) (1,849,163) (2,171,662) Other receipts 1,417,461 311,743 73,343 18,471 Net cash provided (used) by operating activities 6,401,702 6,258,752 8,391,647 9,251,911 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 86,147 - - 32,000 Transfers to other funds (129,845) (197,428) (10,136) (274,329) Advances to other funds - (2,651,969) - 326,472 Advances from other funds - 2,883,983 - - Grant proceeds from federal government - 751,083 - - Net cash provided (used) by noncapital financing activities (43,698) 785,669 (10,136) 84,143 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt - 425,000 - - Capital contributions 12,954,709 3,632,606 3,172,339 842,455 Purchases of capital assets (16,114,806) (11,249,426) (3,685,864) (1,678,176) Principal paid on capital debt (1,490,000) (2,468,859) (3,265,168) (3,085,000) Interest paid on capital debt (547,127) (588,343) (1,317,913) (953,765) Proceeds from sales of capital assets 183,518 58,330 33,008 456,728 Grant proceeds from federal government (24,316) - - 440 Net cash (used) by capital and related financing activities (5,038,022) (10,190,692) (5,063,598) (4,417,318) CASH FLOWS FROM INVESTING ACTIVITIES Advance to component unit 30,040 - - - Proceeds from sales and maturities of investments - 61,576,884 26,083,923 - Purchase of investments (1,268,509) (59,373,501) (29,537,003) (4,249,909) Earnings received on investments 65,610 660,244 398,895 33,659 Net cash provided (used) by investing activities (1,172,859) 2,863,627 (3,054,185) (4,216,250) Net increase (decrease) in cash and cash equivalents 147,123 (282,644) 263,728 702,486 Cash and cash equivalents, January 1 5,205,756 7,760,378 3,565,198 2,094,669 Cash and cash equivalents, December 31 5,352,879 7,477,734 3,828,926 2,797,155 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) (2,251,629) 2,329,901 3,699,558 5,740,247 Other receipts 1,417,461 311,743 73,343 18,471 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 8,032,824 5,514,445 4,696,652 2,134,399 (Increase) decrease in accounts receivable (798,402) (352,418) 208,462 43,902 Decrease in intergovernmental receivables - (344,674) - - (Increase) decrease in inventories (600,127) - - - (Decrease) in prepaid item - - - - Increase (decrease) in accounts payable 292,007 (1,237,826) (371,655) 1,275,350 Increase (decrease) in compensated absences payable 56,270 7,208 (849) 22,324 Increase in post-emp healthcare obligation 193,519 - 49,778 - Increase in wages payable 53,779 30,373 36,358 17,218 City of Fort Collins Comprehensive Annual Financial Report 45 Non Major Enterprise Fund Total Total Internal Golf Enterprise Funds Service Funds $ 2,899,986 $ 177,441,538 $ - - - 44,651,254 (1,198,964) (21,498,403) (14,726,343) (1,213,733) (114,809,108) (37,749,968) (130,241) (12,293,985) (2,991) 29,847 1,850,865 1,338,643 386,895 30,690,907 (6,489,405) - 118,147 6,779,659 (35,458) (647,196) (1,990,602) - (2,325,497) - - 2,883,983 - - 751,083 - (35,458) 780,520 4,789,057 156,644 581,644 1,788,138 - 20,602,109 - (133,062) (32,861,334) (1,716,701) (384,196) (10,693,223) (696,205) (70,484) (3,477,632) (66,069) 1,185 732,769 87,536 - (23,876) - (429,913) (25,139,543) (603,301) - 30,040 - - 87,660,807 14,588,467 71,502 (94,357,420) (11,942,331) 2,738 1,161,146 161,003 74,240 (5,505,427) 2,807,139 (4,236) 826,457 503,490 91,487 18,717,488 6,129,894 87,251 19,543,945 6,633,384 110,517 9,628,594 (9,070,917) 29,847 1,850,865 1,338,643 277,766 20,656,086 1,525,310 4,539 (893,917) (216,370) - (344,674) (1,691) - (600,127) 34,101 - - (6,434) (46,378) (88,502) 158,287 6,243 91,196 39,205 - 243,297 - 4,361 142,089 78,993 - - (366,787) - 6,000 - - - (1,745) $ 386,895 $ 30,690,907 $ (6,489,405) - 1,841,498 - 87,252 18,511,727 6,613,974 - 1,032,219 19,410 $ 87,252 $ 19,543,946 $ 6,633,384 46 City of Fort Collins Comprehensive Annual Financial Report FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION DECEMBER 31, 2013 General Employee Agency Retirement Plan Funds ASSETS Cash and cash equivalents $ 858,710 $ 1,883,753 Receivables, interest 76,957 43,434 Investments, at fair value Certificate of deposit 205,662 449,975 U S Government securities 8,281,171 12,608,973 Corporate bonds 3,145,319 2,365,160 Mutual funds 32,147,333 - Total Investments, at fair value 43,779,485 15,424,108 Total Assets 44,715,152 17,351,295 LIABILITIES Amounts held for other governments - 17,351,295 Accounts Payable 315 - Total Liabilities 315 $ 17,351,295 NET POSITION Held in trust for pension benefits $ 44,714,837 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, 2013 General Employee Retirement Plan ADDITIONS Contributions Employer contributions $ 2,089,644 Total Contributions 2,089,644 Investment income Interest related to plan investments 218,140 Net change in fair value of investments 6,983,332 Total Investment Income 7,201,472 Total Additions 9,291,116 DEDUCTIONS Benefit payments 4,044,328 Administration expense 21,016 Total Deductions 4,065,344 Net Increase in Plan Net Position 5,225,772 Net Position Beginning of year 39,489,065 End of year $ 44,714,837 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 .......................................................................................................................... 51 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 ............................................................................................................. 57 B. Excess of Expenditures Over Appropriations .......................................................................... 58 C. Deficit Fund Balance and Net Position .................................................................................... 58 III. Detailed Notes on all Funds A. Deposits and Investments ........................................................................................................ 58 B. Notes Receivable...................................................................................................................... 61 C. Capital Assets ........................................................................................................................... 63 D. Inter-fund Transfers ................................................................................................................. 65 E. Long-term Obligations ............................................................................................................. 65 F. Fund Balances .......................................................................................................................... 74 IV. Other Information A. Risk Management .................................................................................................................... 76 B. Employee Retirement Systems and Pension Plans .................................................................. 77 C. Other Postemployment Benefits .............................................................................................. 81 D. Commitments and Contingencies ............................................................................................ 83 E. Legal Matters............................................................................................................................ 84 F. Related Party Transactions ....................................................................................................... 84 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 and includes URA-North College District and URA-Prospect South TIF District. 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. The City completed construction of the Fort Collins Museum of Discovery (the “Museum”) in November 2012 with the partnership of Discovery Center, a Colorado non-profit corporation. In January 2013, in accordance with the partnership agreement, the City granted a shared ownership of the property to Discovery Center. The 2 entities now jointly operate a museum where visitors from the northern Colorado region and surrounding areas can experience interactive exhibits and educational programs of a broad spectrum of relevant topics. The financial statements of the Museum are presented as a sub-fund of the general fund. City of Fort Collins Comprehensive Annual Financial Report 51 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. 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 52 City of Fort Collins Comprehensive Annual Financial Report 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. 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 balance or net position, 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. 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. City of Fort Collins Comprehensive Annual Financial Report 53 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. 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. 54 City of Fort Collins Comprehensive Annual Financial Report 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. There were no significant accounts written off in the current year. 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, 2013, 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. 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 City of Fort Collins Comprehensive Annual Financial Report 55 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 sometimes 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 that qualify for reporting in this category. Unavailable revenue is reported in the governmental 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. In the government-wide Statement of Net Position, only property taxes are reported as a deferred inflow of resources. Property taxes are recognized as an inflow of resources in the year they are levied. The other item is the deferred gain on refunding reported in the government-wide and proprietary funds statement of net position. A deferred gain 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. 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. Unused sick pay is not recognized as a liability because it does not meet the criteria for accrual. 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. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses. 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 Balance/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 56 City of Fort Collins Comprehensive Annual Financial Report 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. 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, 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 $55,648,890 of restricted net position, of which $33,270,674 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 in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. 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. City of Fort Collins Comprehensive Annual Financial Report 57 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. 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, the Urban Renewal Authority Fund, and federal and state grants for which the legal level of control is at the project, tax increment financing district, or grant level. The General Fund also includes 2 sub-funds which require individual budgets. 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. 58 City of Fort Collins Comprehensive Annual Financial Report 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 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. B. Excess of Expenditures Over Appropriations For the year ended December 31, 2013, expenditures exceeded appropriations in the Capital Expansion fund, and Benefits fund. These over-expenditures will be covered by fund balance. C. Deficit Fund Balance and Net Position The Urban Renewal Authority fund had a deficit fund balance of $1,494,512 as of December 31, 2013. 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 $121,545 as of December 31, 2013 due to the recognition of an allowance against certain notes receivable in this fund. The Downtown Development Authority reported a deficit net position of $4,837,728. The fund will continue to have a deficit net position for the next few years as Tax Increment Funding (TIF) monies are collected through increased property tax collections. 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 2013 were in eligible public depositories, as defined by the Public Deposit Protection Act of 1989. City of Fort Collins Comprehensive Annual Financial Report 59 Primary Government The carrying amount of the City's deposit accounts as of December 31, 2013, was $47,399,404. The bank balance was $43,776,765. Component Unit The Downtown Development Authority’s undivided share of the City’s deposits as of December 31, 2013 was a carrying amount of $555,824. The bank balance was $617,893. 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. 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. 60 City of Fort Collins Comprehensive Annual Financial Report • 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. 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 Federal Home Loan Bank (FHLB) agency securities. These investments are 23.99%, 26.09%, 22.52% and 8.46% 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, the City utilizes a third-party safekeeping arrangement with financial institutions. 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, 2013, 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, 2013, the local government investment pools (ColoTrust & CSAFE, which are 2a7-like investment pools) in which the City had invested, were rated AAA by Standard & Poor’s. City of Fort Collins Comprehensive Annual Financial Report 61 Restrictions on Cash and Investments Cash and investments of $268,218, $242,301 and $346,874, respectively, in the Water, Wastewater and Storm Water funds are contractually restricted for debt service through bond ordinances. Investments of $2,491,126 in the DDA are restricted for debt service. Restricted assets of $3,049 in the General fund, $435,876 in Transportation Services fund, $952,103 in the Urban Renewal Authority Fund, and $15,688 and $3,722, respectively, in the Equipment and Data and Communications funds are restricted for unspent lease proceeds. Restricted assets for cash held in escrow in connection with property acquisitions of $174,826 is reported in the Natural Areas and Storm Drainage Fund. 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 2013, the City did receive an interest payment of $99,924. The outstanding balance as of December 31, 2013 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 As of December 31, 2013, the City had the following investments and maturities: Primary Government (including Fiduciary Funds) Credit Risk Rating Fair Up to 121 days More than Investment Type S&P/Moody's Value 120 days to 5 years 5 years U.S. Agencies (GNMA) AA+/AAA $ 23,446 $ - $ 23,446 $ - Instrumentality Federal Farm Credit Bank (FFCB) AA+/AAA 78,467,822 2,500,000 73,503,422 2,464,400 Federal Home Loan Bank (FHLB) AA+/AAA 25,032,515 2,509,500 22,523,015 - Federal Home Loan Mortgage Corporation (FHLMC) AA+/AAA 90,923,122 10,003,700 80,919,422 - Federal National Mortgage Association (FNMA) AA+/AAA 83,622,241 - 83,622,241 - Corporate bonds AA+/Aa1 2,481,850 - 2,481,850 - Corporate bonds AA+/A1 8,109,249 5,000,950 3,108,299 Corporate bonds AA+/Aa3 20,130,140 - 20,130,140 - Corporate bonds AA-/Aa3 11,962,803 11,962,803 Corporate bonds AA/Aa1 2,505,925 - 2,505,925 Corporate bonds AA/Aa2 7,439,197 7,439,198 Corporate bonds A-/Baa1 2,081,820 2,081,820 Certificates of Deposit 9,866,904 - 9,866,904 - Total Investments Controlled by the City $ 342,647,034 $ 20,014,150 $ 320,168,484 $ 2,464,400 Percent of Total 6% 93% 1% The City has $32,147,333 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 More than Investment Type S&P/Moody's Value 120 days to 5 years 5 years Instrumentality Federal Home Loan Bank (FHLB) AA+/AAA 4,438,500 - 4,438,500 - Certificates of Deposit 1,383,096 1,250,000 133,096 - Total Investments Controlled by the City $ 5,821,596 $ 1,250,000 $ 4,571,596 $ - Percent of Total 21% 79% 0% Investment Maturities Investment Maturities 62 City of Fort Collins Comprehensive Annual Financial Report 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, 2013 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 were provided by the HOME Program special revenue fund and 50% of the loan proceeds were provided by the General Fund. Due to Federal HOME requirements, the loan must be repaid to the HOME Program, thus the entire note balance is recorded in the HOME Program special revenue 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 2013, the City did receive a payment of $19,417. The outstanding balance as of December 31, 2013 is $230,583. 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, 2013 is $171,395. The Light and Power Fund also has certain notes receivable with customers connected to a Home Efficiency Loan Program for $49,513. 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, 2013 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, 2013 is $100,000. 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. City of Fort Collins Comprehensive Annual Financial Report 63 C. Capital Assets A summary of changes in capital asset activity for the year ended December 31, 2013 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 $ 203,022,377 $ 1,593,278 $ 420,000 $ - $ 205,035,655 Street system infrastructure 265,485,207 16,641,833 - - 282,127,040 Construction in progress 54,465,734 41,842,872 (14,889,298) (2,551,965) 78,867,343 Total capital assets, not being depreciated 522,973,318 60,077,983 (14,469,298) (2,551,965) 566,030,038 Capital assets, being depreciated: Buildings and improvements 128,319,033 25,124 - - 128,344,157 Improvements other than buildings 111,980,835 1,583,611 - (3,343,129) 110,221,317 Machinery and equipment 70,323,204 12,540,261 55,500 (1,298,265) 81,620,700 Total capital assets being depreciated 310,623,072 14,148,996 55,500 (4,641,394) 320,186,174 Less accumulated depreciation for: Buildings and improvements (35,437,481) (2,586,618) - - (38,024,099) Improvements other than buildings (43,759,189) (4,317,419) - 240,559 (47,836,049) Machinery and equipment (47,425,829) (5,682,318) (55,500) 1,106,286 (52,057,361) Total accumulated depreciaition (126,622,499) (12,586,355) (55,500) 1,346,845 (137,917,509) Total capital assets being depreciated, net 184,000,573 1,562,641 - (3,294,549) 182,268,665 Governmental activities capital assets, net $ 706,973,891 $ 61,640,624 $ (14,469,298) $ (5,846,514) $ 748,298,703 Business-type activities Capital assets, not being depreciated: Land, rights of way, water rights, other $ 67,989,343 $ 1,841,497 $ (420,000) $ - $ 69,410,840 Construction in progress 88,308,459 32,491,612 (21,666,458) (1,282,530) 97,851,083 Total capital assets, not being depreciated 156,297,802 34,333,109 (22,086,458) (1,282,530) 167,261,923 Capital assets, being depreciated: Buildings and improvements 228,057,781 3,829,039 - - 231,886,820 Improvements other than buildings 507,972,743 17,746,451 - (6,340,492) 519,378,702 Machinery and equipment 60,080,388 1,698,023 (55,500) (2,602,543) 59,120,368 Total capital assets being depreciated 796,110,912 23,273,513 (55,500) (8,943,035) 810,385,890 Less accumulated depreciation for: Buildings and improvements (88,292,419) (4,743,227) - - (93,035,646) Improvements other than buildings (216,309,846) (13,873,568) - 5,285,817 (224,897,597) Machinery and equipment (46,265,795) (2,383,542) 55,500 2,577,866 (46,015,971) Total accumulated depreciation (350,868,060) (21,000,337) 55,500 7,863,683 (363,949,214) Total capital assets being depreciated, net 445,242,852 2,273,176 - (1,079,352) 446,436,676 Business-type activities capital assets, net $ 601,540,654 $ 36,606,285 $ (22,086,458) $ (2,361,882) $ 613,698,599 64 City of Fort Collins Comprehensive Annual Financial Report 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 4,495 - - 4,495 Improvements other than buildings 17 - - 17 Total capital assets being depreciated 4,512 - - 4,512 Less accumulated depreciation for: Buildings and improvements (1,641) (92) - (1,733) Improvements other than buildings (17) - - (17) Total accumulated depreciation (1,658) (92) - (1,750) Total capital assets being depreciated, net 2,854 (92) - 2,762 Component unit capital assets, net $ 5,383 $ (92) $ - $ 5,291 Depreciation expense was charged to functions / programs of the primary government as follows: Governmental Business-Type Activities Activities General government $ 715,835 $ - Public safety - police & judicial 1,478,201 - Cultural, parks, recreation & environmental services 4,923,643 - Planning and development 25,970 - Transportation services 4,261,649 - Capital assets held by the City's internal service funds used for governmental activities 1,181,057 - Light & Power - 8,032,824 Water - 5,514,445 Wastewater - 4,696,652 Storm Drainage - 2,134,399 Non-major Enterprise funds - Golf - 277,766 Capital assets held by the City's internal service fund used for business-type activities - 344,251 Total depreciation expense 12,586,355 21,000,337 Less capital assets held by the City's internal service funds 1,181,059 344,251 Depreciation expense excluding internal service funds $ 11,405,296 $ 20,656,086 City of Fort Collins Comprehensive Annual Financial Report 65 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, 2013 is $5,303,939. In November 2013, the City loaned Urban Renewal Authority (URA) $5,000,000 for The Summit on College Project, a mixed-use student housing project in the Prospect South Tax Increment Financing (TIF) District. The loan has a 24.16 year term and bears a fixed interest rate of 2.68%. The outstanding balance as of December 31, 2013 is $5,000,000. 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, 2013, the City had $38,360,287 and $2,397,712 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 D. Interfund Transfers and Advances: Trans- portation Capital Nonmajor Light Storm Internal General Services Projects Governmental and Power Drainage Service Total Transfer out: Governmental Funds General $ 731,420 $ 3,931,822 $ 1,225,317 $ 10,818,544 $ 86,147 $ 32,000 $ 4,680,870 $ 21,506,120 Transportation Services - - 331,240 105,460 - - - 436,700 Capital Projects - - - 109,210 - - - 109,210 Nonmajor Governmental 1,312,211 80,000 6,149,930 7,995,436 - - 115,069 15,652,646 Proprietary Funds Light & Power - - - 129,845 - - - 129,845 Water - - - 197,428 - - - 197,428 Wastewater - - - 10,136 - - - 10,136 Storm Drainage - 215,000 - 59,329 - - - 274,329 Golf - - - - - - 35,458 35,458 Internal Service 42,340 - - - - - 1,948,262 1,990,602 Total transfers in $ 2,085,971 $ 4,226,822 $ 7,706,487 $ 19,425,388 $ 86,147 $ 32,000 $ 6,779,659 $ 40,342,474 Transfers In: 66 City of Fort Collins Comprehensive Annual Financial Report 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 $5,871,826 and $271,017 of capital leases outstanding as of December 31, 2013, for governmental and business-type activities, respectively. Cost of all capital assets holding at December 31, 2013 that have been acquired under capital leases: DDA Short-Term Obligation: In 2012, a revolving line of credit was established with a bank for a 6 year period in the amount of $1,000,000 to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan and the Downtown Strategic Plan. During the fiscal year 2013, total draw amounts were $868,077. In July 2013, a total of $868,077 was repaid and there is no amount outstanding as of December 31, 2013. The DDA pays a portion of the City’s 2007 Certificates of Participation (COPS). In 2013, that payment was $229,655. The Downtown Development Authority services the 2010A and 2010B Subordinate Tax Increment Revenue Bonds. The taxable 2010A tax increment revenue bonds will mature in 2018 and the tax-exempt 2010B increment revenue bonds will mature in 2020. In 2013 the City issued a subordinate tax increment revenue bond with a Corporation for the principal sum of $6,050,000 to be serviced by the Downtown Development Authority. The Bond is not a general obligation of the City and full faith and credit of the City is not pledged to pay the debt service requirements. Principal and interest payments are secured by a pledge of Tax Increment Revenue. In the event that the available Pledged Tax Increment Revenues are not sufficient to repay the principal of and the interest on the Bond in full during the Tax Increment Period the City has declared the intent to pay any unpaid amounts from legally available funds of the City, subject to appropriation by the Council. The proceeds were received by the Downtown Development Authority and contributed to the Capital Projects fund to be used to design, acquire, construct and install City infrastructure in connection with the agreement with the Corporation. The contribution was recorded as intergovernmental revenue in the Capital Projects fund and general government capital contributions in the government-wide statement of activities. In 2013 the City issued tax increment revenue bonds for the principal sum of $11,085,000 to be serviced by the Urban Renewal Authority – North College District (URA). The bond is a special and limited obligation of the City payable solely out of and secured by a pledge of tax increment revenue. The proceeds were received by the URA and were used to pay off advances made by the City for the North College Marketplace, JAX Inc. Building Expansion, Northeast College Corridor Outfall, and the Kaufman and Robinson projects. 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 11,469,238 1,388,947 Accumulated depreciation (7,303,742) (1,060,935) Net Book Value $ 4,517,426 $ 442,042 City of Fort Collins Comprehensive Annual Financial Report 67 PLEDGED REVENUES Date Amount of Term of Issued Description Revenue Pledged Revenue Pledged Purpose of Debt Commitment 1997 Water Revenue Bond Water Revenues 2,697,205 Water Capital Projects through 2017 1999 Water Revenue Bonds Water Revenues 2,021,191 Water Capital Projects through 2019 2003 Subordinate Water Revenue Bonds Water Revenues 2,268,546 Water Capital Projects through 2030 2008 Water Revenue Refunding Bonds Water Revenues 10,415,113 Water Capital Projects through 2018 2001 Storm Drainage Revenue Bonds Storm Drainage Revenues 6,005,394 Storm Drainage Improvements through 2021 2007 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 11,067,885 Storm Drainage Improvements through 2019 2007 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 1,822,021 Storm Drainage Improvements through 2017 2011 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 8,133,626 Storm Drainage Improvements through 2022 1992 Sewer Revenue Bonds Sewer Revenues 69,975 Sewer Capital Projects through 2014 2009 Sewer Revenue Bonds Sewer Revenues 37,533,850 Sewer Capital Projects through 2028 2010 Sewer Revenue Bonds Sewer Revenues 3,078,767 Sewer Capital Projects through 2020 2010 Light and Power Bonds Light and Power Revenues 13,918,132 Light and Power Capital Projects through 2020 Date % Revenue P & I for Recognized for Issued Description Pledged 2013 2013 1997 Water Revenue Bond 1-15% 771,494 14,617,389 1999 Water Revenue Bonds 1-15% 368,224 14,617,389 2003 Subordinate Water Revenue Bonds 1-15% 188,224 14,617,389 2008 Water Revenue Bonds 1-15% 377,489 14,617,389 2001 Storm Drainage Revenue Bonds 1-25% 850,151 8,812,289 2007 Storm Drainage Revenue Refunding Bonds 1-25% 1,994,266 8,812,289 2007 Storm Drainage Revenue Refunding Bonds 1-25% 452,537 8,812,289 2011 Storm Drainage Revenue Refunding Bonds 1-25% 871,088 8,812,289 1992 Sewer Revenue Bonds 1-25% 1,843,493 11,869,801 2009 Sewer Revenue Bonds 1-25% 2,385,606 11,869,801 2010 Sewer Revenue Bonds 1-25% 426,943 11,869,801 2010 Light and Power Bonds 1-25% 2,037,126 20,287,403 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 2014 540 408 9,121 3,389 960,173 2015 550 397 9,481 2,978 959,322 2016 560 386 9,872 2,578 958,313 2017 575 369 9,878 2,196 956,137 2018 595 352 8,956 1,796 957,565 2019-2023 3,320 1,414 20,593 4,786 4,759,792 2024-2028 4,035 696 11,658 1,710 4,743,981 2029-2030 910 39 38 2 948,715 $ 11,085 $ 4,060 $ 79,597 $ 19,435 $ 15,243,995 Year Ending December 31 Principal Interest Principal Interest Total 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 4,460 355 225 4 5,044 2019-2023 10,765 971 - - 11,736 2024-2028 5,760 156 - - 5,916 $ 37,905 $ 3,949 $ 950 $ 98 $ 42,902 (amounts expressed in thousands) Governmental Activities Business-Type Activities Certificates of Participation Payments Business-Type Activities Revenue Bonds Governmental Activities City of Fort Collins Comprehensive Annual Financial Report 69 The following tables display the debt service requirements to maturity for the obligations described: Year Ending December 31 Principal Interest Principal Interest Total 2014 48 7 153 23 231 2015 50 6 161 20 237 2016 53 6 168 18 245 2017 55 5 176 15 250 2018 58 4 184 12 258 2019-2022 191 6 606 19 823 $ 455 $ 34 $ 1,448 $ 107 $ 2,044 Year Ending December 31 Principal Interest Principal Interest Total 2014 1,542 121 78 6 1,747 2015 1,578 85 80 4 1,747 2016 1,413 49 56 2 1,522 2017 898 22 40 1 961 2018 441 5 17 - 463 $ 5,872 $ 282 $ 271 $ 13 $ 6,438 Year Ending December 31 Principal Interest Total 2014 1,370 561 1,931 2015 1,418 495 1,913 2016 1,780 427 2,207 2017 1,846 351 2,197 2018 1,923 270 2,193 2019-2023 4,354 698 5,052 2024-2028 1,276 554 1,830 2029-2031 2,593 268 2,861 $ 16,560 $ 3,624 $ 20,184 (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 70 City of Fort Collins Comprehensive Annual Financial Report General long - term obligations of the primary government at December 31, 2013 is comprised of the following: Date Description/Interest Rates Maturity Original Outstanding Issued Dates Balance Balance Bonds Service by Urban Renewal Authority - North College District (secured by tax increment property taxes) 2013 2013 URA Tax Increment Revenue Bonds (2.000 - 4.250%) 2029 $ 11,085,000 $ 11,085,000 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 $ 6,300,000 2012 Lease Certificates of Participation (1.820%) 2026 34,395,000 31,605,000 2001 Assignment of Lease Payments - Police (4.70%) 2021 890,000 455,287 Unamortized premium on bonds 307,158 Other Obligations of Governmental Funds N/A Capital lease obligations (secured by leased equipment) 2013 N/A 2,398,225 N/A Compensated absences N/A N/A 4,906,234 N/A Net pension obligation N/A N/A 3,203,138 N/A Net Post Employment Health Care Obligation N/A N/A 1,188,127 Other Obligations of Internal Service Fund used by Governmental Activities N/A Capital lease obligations (secured by leased equipment) 2013 N/A 3,473,601 N/A Compensated absences N/A N/A 544,727 N/A Claims Payable N/A N/A 4,894,327 Total $ 70,360,824 Component unit long - term debt at December 31, 2013, 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 10,510,000 (secured by tax increment property taxes) 2013 Subordinate Tax Increment Revenue Bonds (variable interest rate based on the 10 year U.S. Treasure Note with a floor of .25%) 2031 6,050,000 6,050,000 (secured by tax increment property taxes) Other Obligations – Component Unit N/A Compensated absences N/A N/A 10,414 Total $ 16,570,414 (Continued) City of Fort Collins Comprehensive Annual Financial Report 71 Business-type long-term obligations at December 31, 2013 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 $ 11,725,000 Water Fund (secured by water revenues) 1997 Water Revenue Bond (3.80-5.30%) 2017 10,125,300 2,338,933 1999 Water Revenue Bond (3.28-5.25%) 2019 4,998,395 1,688,794 2003 Subordinate Water Revenue Bonds (5.025% ) 2030 2,476,446 1,667,197 2008 Water Revenue Bond (3.46%) 2018 9,645,000 9,415,000 2009 Water Revenue Bond (2.25-4.00%) 2013 7,815,000 - Storm Drainage Fund (secured by storm drainage revenues) 2001 Storm Drainage Revenue Bond (4.50-5.25%) 2021 9,845,000 4,447,500 2007 Storm Drainage Revenue Refunding Bonds (4.086%) 2019 15,945,000 9,705,000 2007 Storm Drainage Revenue Refunding Bonds (4.086%) 2017 3,360,000 1,650,000 2011 Storm Drainage Revenue Refunding Bonds (2.49%) 2022 8,515,000 7,200,000 Wastewater Fund (secured by sewer revenue) 1992 Sewer Revenue Bond (5.0-6.0%) 2014 24,540,580 - 2009 Sewer Revenue Bonds (2.0-5.0%) 2028 30,655,000 27,020,000 2010 Sewer Revenue Bonds (2.99%) 2020 3,900,000 2,740,000 1,165,303 Unamortized discount on bonds (12,943) Golf Fund (secured by golf revenue) 2007 Lease Certificates of Participation (3.860%) 2018 1,715,000 950,000 2001 Assignment of Lease Payments (4.70%) 2021 2,830,000 1,447,712 Other Obligations of Enterprise Funds N/A Capital lease obligations (secured by leased equipment) 2018 N/A 271,017 N/A Net Post Employment Health Care Obligation N/A N/A 653,469 N/A Compensated absences N/A N/A 1,608,568 Other Obligations of the Internal Service Fund used by Business-type Activities N/A Compensated absences N/A N/A 396,111 Total $ 86,076,661 Unamoritized premium on bonds 72 City of Fort Collins Comprehensive Annual Financial Report 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. 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, 2013, there were 19 series of Industrial Development Revenue Bonds outstanding, with an estimated aggregate principal amount payable of $55.8 million. City of Fort Collins Comprehensive Annual Financial Report 73 Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2013 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Primary Government: Governmental Activities Bonds, COPS, and ALPs: Tax revenue bonds $ - $ 11,085,000 $ - $ 11,085,000 $ 540,000 Fort Collins Leasing Corporation Certificates of participation 41,845,000 - (3,940,000) 37,905,000 4,090,000 Assignment of lease payments 501,222 - (45,935) 455,287 48,089 Total bonds, COPS and ALPS 42,346,222 11,085,000 (3,985,935) 49,445,287 4,678,089 Add other financing sources (bond premium) - 307,158 - 307,158 19,298 Total bonds, COPs and ALPs 42,346,222 11,392,158 (3,985,935) 49,752,445 4,697,387 Other Liabilities: Capital leases 3,718,971 3,294,889 (1,142,034) 5,871,826 1,541,869 Compensated absences 5,150,634 4,948,393 (4,648,066) 5,450,961 5,450,961 Claims payable 5,261,114 17,701,381 (18,068,168) 4,894,327 2,270,733 Net pension obligation 2,765,738 437,400 - 3,203,138 - Net post employment health care obligation 1,246,252 - (58,125) 1,188,127 - Total other liabilities 18,142,709 26,382,063 (23,916,393) 20,608,379 9,263,563 Governmental activities long-term liabilities $ 60,488,931 $ 37,774,221 $ (27,902,328) $ 70,360,824 $ 13,960,950 Business-Type Activities Bonds, COPS, and ALPs: Revenue bonds $ 90,006,816 $ - $ (10,409,392) $ 79,597,424 $ 9,121,535 Fort Collins Leasing Corporation Certificates of participation 1,095,000 - (145,000) 950,000 155,000 Assignment of lease payments 1,593,777 - (146,065) 1,447,712 152,911 92,695,593 - (10,700,457) 81,995,136 9,429,446 Add bond premium 1,374,697 - (209,394) 1,165,303 117,696 Less bond discount and (16,734) - 3,791 (12,943) (3,792) Total bonds, COPs and ALPs 94,053,556 - (10,906,060) 83,147,496 9,543,350 Other Liabilities: Capital leases 207,504 156,643 (93,130) 271,017 78,050 Compensated absences 1,879,297 2,132,800 (2,007,418) 2,004,679 2,004,679 Net post employment health care obligation 410,172 243,297 - 653,469 - Total other liabilities 2,496,973 2,532,740 (2,100,548) 2,929,165 2,082,729 Business-type activities long-term liabilities $ 96,550,529 $ 2,532,740 $ (13,006,608) $ 86,076,661 $ 11,626,079 Component Unit: Bonds: Tax revenue bonds $ 11,800,000 $ 6,050,000 $ (1,290,000) $ 16,560,000 $ 1,370,000 Total bonds 11,800,000 6,050,000 (1,290,000) 16,560,000 1,370,000 Compensated absences 8,537 20,418 (18,541) 10,414 10,414 Component unit long-term liabilities $ 11,808,537 $ 6,070,418 $ (1,308,541) $ 16,570,414 $ 1,380,414 74 City of Fort Collins Comprehensive Annual Financial Report Compensated Absences for Governmental Activities The General Fund is primarily used to liquidate the liability for compensated absences. The entire portion is current, as employees typically use the full balance in the subsequent year and the City records usage on a first in, first out basis. 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. City of Fort Collins Comprehensive Annual Financial Report 75 Fund Balances (Deficit): General Keep Fort Collins Great Transportation Capital Projects Urban Renewal Authority Non-major Governmental Total Nonspendable: Advances $ 5,000,000 $ - $ - $ - $ 5,303,939 $ - $ 10,303,939 Inventories 2,896,665 - - - - - 2,896,665 Prepaids 200 - 150 - - 9,046 9,396 Total Nonspendable 7,896,865 - 150 - 5,303,939 9,046 13,210,000 Restricted: Voter approved capital 694,514 - - 11,911,811 - 2,457,443 15,063,768 BOB Park Maintenance 75,000 - - - - - 75,000 Civic Center Parking - - 815,262 - - - 815,262 Conservation Trust - - - - - 1,931,157 1,931,157 Convention & Visitors Bureau 103,386 - - - - - 103,386 DDA/Woodward Bonds 2,272,000 - - - - - 2,272,000 Debt Service - - - - 952,103 - 952,103 Economic Rebates 2,382,450 - - - - - 2,382,450 Emergency 5,331,680 - - - - - 5,331,680 Fiscal Agent 3,049 - 435,876 - - 174,826 613,751 Fourth of July 6 - - - - - 6 HOME - - - - - 354,513 354,513 Horticulture 245,535 - - - - - 245,535 Larimer County Drug Task Force 371,324 - - - - - 371,324 KFCG Street Maintenance - 1,569,381 - - - - 1,569,381 KFCG Other Transportation - 4,791,744 - - - - 4,791,744 KFCG Police Services - 2,857,877 - - - - 2,857,877 KFCG Fire & Emergency Services - 494,848 - - - - 494,848 KFCG Parks & Rec - 959,733 - - - - 959,733 KFCG Other - 2,126,643 - - - - 2,126,643 Natural Areas - - - - - 9,935,072 9,935,072 Notes & loans receivable - - - - - 230,583 230,583 Perpetual Care - - - - - 1,689,182 1,689,182 Tree Donations 47,612 - - - - - 47,612 PEG Distribution 94,712 - - - - - 94,712 Police CAD Replacement 331,856 - - - - - 331,856 Recreation Donations - - - - - 30,311 30,311 Udall Property 145,432 - - - - - 145,432 Woodward Rebates 62,552 - - - - - 62,552 Total Restricted 12,161,108 12,800,226 1,251,138 11,911,811 952,103 16,803,087 55,879,473 Committed: Art in public places - - - - - 342,974 342,974 Advances - - - - - 2,651,970 2,651,970 Capital expansion - General government - - - - - 3,893,126 3,893,126 Capital expansion - Police - - - - - 887,528 887,528 Capital expansion - Fire - - - - - 367,707 367,707 Capital expansion - Community Parkland - - - - - 9,031,901 9,031,901 Capital projects - - - - - 1,989,019 1,989,019 Cultural development and planning 152,369 - - - - - 152,369 Cultural, Park, Rec & Enviroment - - - - - 5,404,059 5,404,059 Encumbrances - - - - - 337,293 337,293 Operations - - - - - 42,424 42,424 Planning & Development - - - - - 840,992 840,992 76 City of Fort Collins Comprehensive Annual Financial Report 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 2013, the City purchased liability insurance through a risk retention group. 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 $500,000 for all worker classifications. An excess policy providing limits mandated by the State of Colorado provides coverage above the self-insured retention. In 2013, 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 $225,000 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, 2013, amount to $3,497,933 and $1,396,394 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 $6,964,022 for the Self Insurance Fund is undiscounted and reflects an 80% confidence level factor. The discount refers to the City of Fort Collins Comprehensive Annual Financial Report 77 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 2011, 2012 and 2013 are as follows: 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 79. 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, 2014, employee membership data related to the Plan was as follows: Retirees and beneficiaries currently receiving benefits--190; vested terminated employees--121; active plan participants--128 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. 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. Self-Insurance Benefits 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 Claims & changes in estimates 807,917 16,893,464 Claim payments (1,310,823) (16,757,345) Claims payable - December 31, 2013 $ 3,497,933 $ 1,396,394 78 City of Fort Collins Comprehensive Annual Financial Report 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 2011 1,706,844 1,477,112 110,783 8.30 177,635 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 2013 2,681,999 2,765,738 188,070 7.57 365,306 2,504,763 2,067,363 3,203,138 437,400 % of Annual Annual Plan Pension Employer Pension Year Cost Contribution Cost 2011 1,639,992 1,345,466 82% 2012 2,236,029 1,241,929 56% 2013 2,504,763 2,067,363 83% 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) 1/1/2012 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% 1/1/2014 41,530,376 56,182,808 14,652,432 73.9% 8,202,862 178.6% SCHEDULE OF FUNDING PROGRESS SCHEDULE OF EMPLOYER CONTRIBUTIONS City of Fort Collins Comprehensive Annual Financial Report 79 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 2013, the City contributed 10.50% of covered pay to the Plan as well as the supplemental contributions; this amounted to $2,067,363. 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 position available for benefits as of December 31, 2013, is $44,714,837 all of which is reserved for benefits of employees and beneficiaries. Concentration of Credit Risk Investments in mutual funds exceeding 5% of the net position of the plan are as follows: Fidelity Low Priced Stock – 5.39%, Fidelity Value Fund – 7.50%, Vanguard 500 Index Inv – 5.21%, Vanguard Growth Index Inv – 5.62%, TRP International STK – 5.45%, TRP New Asia – 5.39%. 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 $4,946,373 and $3,080,455, respectively during 2013. Actuarial plan assumptions: Valuation date: January 01, 2014 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 6.5% interest (effective January 1, 2014). 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: 6.5% (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%) 80 City of Fort Collins Comprehensive Annual Financial Report 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 $163,636 during 2013. 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%. During 2013, 2012 and 2011, the City’s contributions were $313,474, $285,521, and $247,364 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. City of Fort Collins Comprehensive Annual Financial Report 81 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. 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 2013, the City contributed $82,765. 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: Annual required contribution $ 233,927 Interest on net OPEB obligation 62,206 Adjustment to annual required contribution (28,196) Annual OPEB cost (expense) 267,937 Contributions and payments made 82,765 Increase in net OPEB obligation 185,172 Net OPEB obligation - January 1, 2013 1,656,424 Net OPEB obligation - December 31, 2013 $ 1,841,596 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 82 City of Fort Collins Comprehensive Annual Financial Report The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligations for 2013 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: Because there were no active members in 2013, the covered payroll was $0. 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. Percentage of Annual Annual OPEB Net OPEB Fiscal Year Ended OPEB Cost Cost Contributed Obligation December 31, 2011 $ 152,717 34.6% $ 1,601,830 December 31, 2012 $ 146,193 62.7% $ 1,656,424 December 31, 2013 $ 267,937 30.9% $ 1,841,596 Total Members Actuarial Accrued Liability Current retirees, beneficiaries and dependents $ 2,788,530 31 Current active members - Total Actuarial Accrued Liability (AAL) 2,788,530 OPEB Plan Assets - Unfunded Actuarial Accrued Liability (UAAL) $ 2,788,530 City of Fort Collins Comprehensive Annual Financial Report 83 D. Commitments/Contingencies Construction Commitments The City had commitments of $2,315,884 for capital projects in governmental fund types and $125,009 in proprietary fund types at December 31, 2013. 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, 2013 (excluding those relating to capital projects) amounted to $23,940,625. 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, because the amount is not considered by management to be probable and measurable. Solid Waste Financial Assurance The City’s Water Utility owns and operates a Water Treatment Facility, which through the treatment process produces solids, and therefore must provide financial assurance of estimates for post closure costs in accordance with regulations pertaining to solid waste sites and facilities (6 CCR 1007-2, Part 1) as set by the State of Colorado Department of Public Health and Environment. The facility is not expected to be closed in the future, however in the event of closure the City estimates and provides assurance of total Closure Costs and Post-Closure Care Requirements of $1,212,480 and $20,000, respectively. This estimate is not reported as a liability by the City because the water treatment facility does not meet the definition of a landfill contained in GASB Statement No. 18, as defined by the U.S. Environmental Protection Agency. 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% fopr 2011, grading to 4.4% over 87 years. The inflation rate assumption is 2.5% and the amortization periods used are open. Discount rate: 3.5%, net of adminstrative expenses Projected pay increases: 0%. The plan was closed to new retirees effective December 31, 2009. 84 City of Fort Collins Comprehensive Annual Financial Report 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 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 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, 2013, the amount required as an emergency reserve in compliance with the amendment is $5,331,680 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 2013: 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 2012 and $88,750 in 2013. City of Fort Collins Comprehensive Annual Financial Report 85 Financial Information The Fort Collins-Loveland Municipal Airport is accounted for as a joint venture. A summary of financial information is as follows: The City’s annual contribution is reflected as an 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 2013, such funding amounted to $20,118,869. In addition, the City provided accounting and administrative services to PFA at no charge. Total current assets $ 2,034,499 Total capital assets (net of accumulated depreciation) 22,784,642 Total Assets 24,819,141 Total current liabilities (387,525) Total Net Position 24,431,616 Net assets invested in capital assets 22,784,642 Restricted capital 22,492 Unrestricted net position 1,624,482 Total Net Position $ 24,431,616 Total operating revenue $ 685,397 Total operating expenses (2,073,375) Interest Income (8,804) Nonoperating revenue 362,399 Capital contributions 2,941,287 Change in Net Position $ 1,906,904 As of December 31, 2013 For year ending December 31, 2013 86 City of Fort Collins Comprehensive Annual Financial Report Platte River Power Authority The Light and Power Fund purchases all of its electrical power from PRPA. During 2013, these purchases amounted to $80,319,174 of which $6,484,033 is included in accounts payable at December 31, 2013. 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 2013, billings for benefits and services amounted to $207,990. 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 2013, billings for benefits and services amounted to $776,466. City of Fort Collins Comprehensive Annual Financial Report 87 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 2013, 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 71 in 2012, 72 in 2011, and 71 in 2010. The average detail condition is as follows: Level of service ................................................................. PCI Range................................. Percent of Roads LOS A (best) ..................................................................... 100 to 86 .................................................... 20.3% LOS B (good) ................................................................... 85 to 71 .................................................... 37.7% LOS C (fair) ...................................................................... 70 to 56 .................................................... 25.9% LOS D (poor) .................................................................... 55 to 41 .................................................... 15.0% LOS F (worst) ................................................................... 40 to 0 ........................................................ 1.1% The City's next full 3 year assessment cycle will be completed in 2015. 88 City of Fort Collins Comprehensive Annual Financial Report 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 2013 2012 $15,565,821 $14,326,456 $15,250,042 $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 City of Fort Collins Comprehensive Annual Financial Report 89 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) 1/1/2012 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% 1/1/2014 41,530,376 56,182,808 14,652,432 73.9% 8,202,862 178.6% Annual Required % of Plan Contribution Employer ARC Year ARC Contribution Contributed 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% 2013 2,681,999 2,067,363 77% The information presented in the required supplementary schedule was determined as part of the actuarial valuation as of January 1, 2014. 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 6.5% interest (effective January 1, 2014). 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: 6.5% (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 90 City of Fort Collins Comprehensive Annual Financial Report 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] 2011 12/31/11 $ - $ 2,752,549 $ 2,752,549 - % $ - n/a 2012 12/31/11 $ - $ 2,721,966 $ 2,721,966 - % $ - n/a 2013 12/31/11 $ - $ 2,788,530 $ 2,788,530 - % $ - n/a 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. Note: The change in the actuarial accrued liability (AAL) is due to a reallocation of the AAL between the City and the Poudre Fire Authority There is no covered payroll reported because 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 ................................................................................................................. 123 Enterprise Budget Schedules ................................................................................................................................. 126 Internal Service Funds ........................................................................................................................................... 132 Fiduciary Funds .................................................................................................................................................... 145 Component Unit Statements .................................................................................................................................. 149 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 Fund 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. General Fund Sub-funds Museum -- to account for revenues received from Fort Collins Museum of Discovery and General Fund subsidies used to promote cultural activities. Emergency Recovery -- to account for FEMA monies to offset costs associated with the 2013 floods. URA Sub-funds URA - N. College District-- to account for the tax increment financing for the operations and debit services of the Urban Renewal Authority - N. College District. URA - Prospect South TIF Dist-- to account for the tax increment financing for the operations and debit services of the Urban Renewal Authority - Prospect South TIF District. 94 City of Fort Collins Comprehensive Annual Financial Report NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2013 Special Revenue Funds Cultural Capital Sales and Natural Services & Expansion Use Tax Areas Facilities Recreation ASSETS Cash and cash equivalents $ 1,751,282 $ 117,836 $ 1,057,819 $ 1,226,094 $ 305,804 Investments 14,374,800 982,579 8,651,074 2,027,372 2,556,886 Receivables Property taxes - - - - - Sales and use taxes - 1,417,551 - - - Accounts 2,293 - - 9,897 128,949 Notes and loans - - - - - Interest 40,906 8,872 27,398 5,790 6,911 Prepaid item - - - 9,046 - Advances to other funds 2,651,970 - - - - Due from other governments - - 313,957 57,522 - Restricted - cash and cash equivalents - - 174,826 - - Total Assets 18,821,251 2,526,838 10,225,074 3,335,721 2,998,550 LIABILITIES Accounts payable, accruals, and other - 1,612 30,604 90,584 172,229 Wages payable - - 70,064 32,203 87,065 Due to other governments - - - - 163 Due to other funds - - - - - Unearned revenue - - - 572,852 245,188 Deposits held - 67,783 14,508 111,976 - Total Liabilities - 69,395 115,176 807,615 504,645 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - - - - Unavailable revenue - grants - - - 57,522 - Total Deferred inflows of resources - - - 57,522 - FUND BALANCES (DEFICIT) Nonspendable - - - 9,046 - Restricted - 2,457,443 10,109,898 - 30,311 Committed 18,821,251 - - 342,974 - Assigned - - - 2,118,564 2,463,594 Unassigned - - - - - Total Fund Balances (Deficit) 18,821,251 2,457,443 10,109,898 2,470,584 2,493,905 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 18,821,251 $ 2,526,838 $ 10,225,074 $ 3,335,721 $ 2,998,550 City of Fort Collins Comprehensive Annual Financial Report 95 Special Revenue Funds (continued) Perpetual Home Transit Street Cemeteries Care CDBG Program Services Oversizing $ 47,974 $ 181,302 $ - $ 97,546 $ 279,685 $ 1,287,312 402,336 1,493,660 - 723,389 2,301,121 10,551,017 - - - - - - - - - - - - 43,782 9,976 2,500 15,208 59,309 6,835 - - - 230,583 - - 1,121 4,244 - - 7,285 29,606 - - - - - - - - - - - - - - 22,316 68,344 1,324,764 - - - - - - - 495,213 1,689,182 24,816 1,135,070 3,972,164 11,874,770 9,121 - 24,360 72,919 310,099 686,818 11,061 - 5,845 - 136,104 4,884 - - - - 3,581 - - - 116,156 - - - - - - 477,055 - - - - - - - - 20,182 - 146,361 549,974 449,784 691,702 - - - - - - - - - - - - - - - - - - - - - - - - - 1,689,182 - 585,096 - - - - - - - 11,183,068 475,031 - - - 3,522,380 - - - (121,545) - - - 475,031 1,689,182 (121,545) 585,096 3,522,380 11,183,068 $ 495,213 $ 1,689,182 $ 24,816 $ 1,135,070 $ 3,972,164 $ 11,874,770 96 City of Fort Collins Comprehensive Annual Financial Report NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) DECEMBER 31, 2013 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 $ 114,923 $ 12,473 $ 5,945 $ 6,485,995 Investments 942,783 102,182 48,617 45,157,816 Receivables Property taxes 271,800 24,662 - 296,462 Sales and use taxes - - - 1,417,551 Accounts - - - 278,749 Notes and loans - - - 230,583 Interest 2,708 280 93 135,214 Prepaid item - - - 9,046 Advances to other funds - - - 2,651,970 Due from other governments 2,468 145 - 1,789,516 Restricted - cash and cash equivalents - - - 174,826 Total Assets 1,334,682 139,742 54,655 58,627,728 LIABILITIES Accounts payable, accruals, and other 3,291 - - 1,401,637 Wages payable 367 - - 347,593 Due to other governments - - - 3,744 Due to other funds - - - 116,156 Unearned revenue - - - 1,295,095 Deposits held - - - 194,267 Total Liabilities 3,658 - - 3,358,492 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 271,800 24,662 - 296,462 Unavailable revenue - grants - - - 57,522 Total Deferred inflows of resources 271,800 24,662 - 353,984 FUND BALANCES (DEFICIT) Nonspendable - - - 9,046 Restricted - - - 14,871,930 Committed 1,059,224 115,080 54,655 31,576,252 Assigned - - - 8,579,569 Unassigned - - - (121,545) Total Fund Balances (Deficit) 1,059,224 115,080 54,655 54,915,252 Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficit) $ 1,334,682 $ 139,742 $ 54,655 $ 58,627,728 City of Fort Collins Comprehensive Annual Financial Report 97 Debt Service Fund Capital Project Funds Fort Collins Total Total Leasing Neighborhood Conservation Capital Non-major Corporation Parkland Trust Project Governmental $ - $ 603,819 $ 224,542 $ 828,361 $ 7,314,356 - 4,968,448 1,843,492 6,811,940 51,969,756 - - - - 296,462 - - - - 1,417,551 - 1,672 - 1,672 280,421 - - - - 230,583 - 14,009 5,323 19,332 154,546 - - - - 9,046 - - - - 2,651,970 - - - - 1,789,516 - - - - 174,826 - 5,587,948 2,073,357 7,661,305 66,289,033 - 15,345 136,445 151,790 1,553,427 - 7,059 5,755 12,814 360,407 - - - - 3,744 - - - - 116,156 - - - - 1,295,095 - - - - 194,267 - 22,404 142,200 164,604 3,523,096 - - - - 296,462 - - - - 57,522 - - - - 353,984 - - - - 9,046 - - 1,931,157 1,931,157 16,803,087 - 5,565,544 - 5,565,544 37,141,796 - - - - 8,579,569 - - - - (121,545) - 5,565,544 1,931,157 7,496,701 62,411,953 $ - $ 5,587,948 $ 2,073,357 $ 7,661,305 $ 66,289,033 98 City of Fort Collins Comprehensive Annual Financial Report City of Fort Collins Comprehensive Annual Financial Report 99 100 City of Fort Collins Comprehensive Annual Financial Report City of Fort Collins Comprehensive Annual Financial Report 101 102 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, 2013 Actual Budget Variance REVENUES Fees and charges for services $ 3,178,383 $ 1,501,000 $ 1,677,383 Earnings on investments 122,404 87,783 34,621 Total Revenues 3,300,787 1,588,783 1,712,004 EXPENDITURES Community Parkland Capital 833 - (833) Fire Capital Expansion 234,353 234,353 - Total Expenditures 235,186 234,353 (833) Excess of Revenues Over Expenditures 3,065,601 1,354,430 1,711,171 OTHER FINANCING (USES) Transfers out: General Fund (80,557) (96,000) 15,443 Conservation Trust Fund (70,000) (70,000) - Debt Service - COPS (348,677) (350,000) 1,323 Capital Projects Fund (462,952) (2,466,885) 2,003,933 Total Other Financing (Uses) (962,186) (2,982,885) 2,020,699 Net Change in Fund Balances 2,103,415 $ (1,628,455) $ 3,731,870 Fund Balances--January 1 16,717,836 Fund Balances--December 31 $ 18,821,251 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, 2013 Actual Budget Variance REVENUES Taxes $ 13,378,848 $ 12,697,100 $ 681,748 Earnings on investments 1,465 66,422 (64,957) Miscellaneous revenue 373 - 373 Total Revenues 13,380,686 12,763,522 617,164 EXPENDITURES Current operating Community and Operations 744,000 744,000 - Total Expenditures 744,000 744,000 - Excess of Revenues Over Expenditures 12,636,686 12,019,522 617,164 OTHER FINANCING (USES) Transfers out: General Fund (256,500) (256,500) - Natural Areas Fund (6,474,388) (6,474,388) - Cultural Services & Facilities Fund (24,000) (24,000) - Cemeteries Fund (7,500) (7,500) - Museum Fund (200,000) (200,000) - Transportation Services Fund (80,000) (80,000) - Capital Projects Fund (5,162,388) (5,162,388) - Total Other Financing (Uses) (12,204,776) (12,204,776) - Net Change in Fund Balances 431,910 $ (185,254) $ 617,164 Fund Balances--January 1 2,025,533 Fund Balances--December 31 $ 2,457,443 104 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, 2013 Actual Budget Variance REVENUES Intergovernmental $ 3,765,230 $ 3,340,607 $ 424,623 Fees and charges for services 25,958 28,000 (2,042) Earnings on investments 23,522 41,370 (17,848) Miscellaneous revenue 1,160,653 1,131,625 29,028 Total Revenues 4,975,363 4,541,602 433,761 EXPENDITURES Land Conservation 3,128,218 7,061,465 3,933,247 Enforcement 658,362 678,957 20,595 Education 584,754 600,480 15,726 Program Management 613,650 735,100 121,450 Resource Management 2,020,429 2,796,867 776,438 Public Improvements 1,019,882 2,573,590 1,553,708 Facility Operations 166,818 308,425 141,607 Land Management 476,244 644,973 168,729 Total Expenditures 8,668,357 15,399,857 6,731,500 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,692,994) (10,858,255) 7,165,261 OTHER FINANCING SOURCES (USES) Transfers in: Sales and Use Tax Fund 6,474,388 6,474,388 - Transfers out: Debt Service - COPS (1,122,619) (1,126,674) 4,055 Cultural Services & Facilities Fund (5,080) (5,080) - Capital Projects Fund (454,306) (2,360,000) 1,905,694 Data and Communications Fund (96,209) (96,209) - Sale of capital assets 1,002,444 1,000,000 2,444 Total Other Financing Sources (Uses) 5,798,618 3,886,425 1,912,193 Net Change in Fund Balances 2,105,624 $ (6,971,830) $ 9,077,454 Fund Balances--January 1 8,004,274 Fund Balances--December 31 $ 10,109,898 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, 2013 Actual Budget Variance REVENUES Intergovernmental $ 60,095 $ 347,493 $ (287,398) Fees and charges for services 2,292,353 2,882,609 (590,256) Earnings (loss) on investments (2,222) 1,555 (3,777) Miscellaneous revenue 54,315 90,108 (35,793) Total Revenues 2,404,541 3,321,765 (917,224) EXPENDITURES Administration 803,566 862,067 58,501 Lincoln Center 976,530 1,296,909 320,379 Museum 125,585 631,324 505,739 Art in Public Places 78,794 266,046 187,252 Performing and visual arts 1,277,888 1,698,000 420,112 Total Expenditures 3,262,363 4,754,346 1,491,983 Excess (Deficiency) of Revenues Over (Under) Expenditures (857,822) (1,432,581) 574,759 OTHER FINANCING SOURCES Transfers in: General Fund 837,655 837,655 - Neighborhood Parkland 2,000 440 1,560 Conservation Trust Fund 9,000 1,980 7,020 Natural Areas Fund 5,080 1,118 3,962 Capital Projects Fund 109,210 24,026 85,184 Light & Power Fund 129,845 124,601 5,244 Water Fund 197,428 190,184 7,244 Wastewater Fund 10,136 7,384 2,752 Stormwater Fund 59,329 54,085 5,244 Transfer S&U Tax - BOB 24,000 24,000 - Total Other Financing Sources 1,383,683 1,265,473 118,210 Net Change in Fund Balances 525,861 $ (167,108) $ 692,969 Fund Balances--January 1 1,944,723 Fund Balances--December 31 $ 2,470,584 106 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, 2013 Actual Budget Variance REVENUES Intergovernmental $ 71,949 $ 89,052 $ (17,103) Fees and charges for services 4,916,615 4,902,304 14,311 Earnings on investments 2,742 25,713 (22,971) Miscellaneous revenue 127,315 102,350 24,965 Total Revenues 5,118,621 5,119,419 (798) EXPENDITURES Recreation administration 3,517,091 4,334,331 817,240 Ice/aquatics programming 790,738 868,505 77,767 Adult programming 567,571 680,810 113,239 Youth programming 322,403 335,415 13,012 Sports programming 483,840 519,388 35,548 Special reserves 100,485 146,598 46,113 Grants/miscellaneous 67,661 96,552 28,891 Total Expenditures 5,849,789 6,981,599 1,131,810 Excess (Deficiency) of Revenues Over (Under) Expenditures (731,168) (1,862,180) 1,131,012 OTHER FINANCING SOURCES Transfers in: General Fund 891,363 891,363 - Total Other Financing Sources 891,363 891,363 - Net Change in Fund Balances 160,195 $ (970,817) $ 1,131,012 Fund Balances--January 1 2,333,710 Fund Balances--December 31 $ 2,493,905 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, 2013 Actual Budget Variance REVENUES Fees and charges for services $ 359,233 $ 337,000 $ 22,233 Earnings on investments 80 5,043 (4,963) Miscellaneous revenue 12,462 11,900 562 Total Revenues 371,775 353,943 17,832 EXPENDITURES Cemetery services 582,427 631,584 49,157 582,427 631,584 49,157 Excess (Deficiency) of Revenues Over (Under) Expenditures (210,652) (277,641) 66,989 OTHER FINANCING SOURCES Transfers in: General Fund 142,366 142,366 - Perpetual Care Fund 2,171 20,000 (17,829) Sales & Use Tax - Building on Basics 7,500 7,500 - Total Other Financing Sources 152,037 169,866 (17,829) Net Change in Fund Balances (58,615) $ (107,775) $ 49,160 Fund Balances--January 1 533,646 Fund Balances--December 31 $ 475,031 108 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, 2013 Actual Budget Variance REVENUES Fees and charges for services $ 48,950 $ 45,000 $ 3,950 Earnings on investments 2,171 20,000 (17,829) Total Revenues 51,121 65,000 (13,879) EXPENDITURES Other 145 145 - Total Expenditures 145 145 - Excess (Deficiency) of Revenues Over (Under) Expenditures 50,976 64,855 (13,879) OTHER FINANCING (USES) Transfers out: Cemeteries Fund (2,171) (20,000) 17,829 Total Other Financing (Uses) (2,171) (20,000) 17,829 Net Change in Fund Balances 48,805 $ 44,855 $ 3,950 Fund Balances--January 1 1,640,377 Fund Balances--December 31 $ 1,689,182 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, 2013 Prior Year Cumulative Actual Actual Actual Budget Variance REVENUES Intergovernmental $ 657,008 $ 4,493,193 $ 5,150,201 $ 6,316,670 $ (1,166,469) Earnings on investments - 682 682 82,596 (81,914) Miscellaneous revenue 162,724 321,835 484,559 957,773 (473,214) Total Revenues 819,732 4,815,710 5,635,442 7,357,039 (1,721,597) EXPENDITURES 2010-11 Grant 53,243 840,776 894,019 1,041,666 147,647 2011-12 Grant 247,932 937,582 1,185,514 1,185,505 (9) 2012-13 Grant 544,421 441,300 985,721 1,073,914 88,193 2013-14 Grant 34,978 - 34,978 1,145,162 1,110,184 Total Expenditures 880,574 2,219,658 3,100,232 4,446,247 1,346,015 Excess (Deficiency) of Revenues Over (Under) Expenditures (60,842) 2,596,052 2,535,210 2,910,792 (375,582) Net Change in Fund Balances (60,842) $ 2,596,052 2,535,210 $ 2,910,792 $ (375,582) Fund Balances (Deficit)--January 1 (60,703) (60,703) Less Prior Years' Project Revenues (4,815,710) Plus Prior Years' Project Expenditures 2,219,658 Fund Balances (Deficit)--December 31 $ (121,545) $ (121,545) 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, 2013 Prior Year Cumulative Actual Actual Actual Budget Variance REVENUES Intergovernmental $ 367,540 $ 2,060,607 $ 2,428,147 $ 4,009,957 $ (1,581,810) Earnings on investments 12,682 41,250 53,932 - 53,932 Miscellaneous revenue 416,452 366,947 783,399 541,255 242,144 Total Revenues 796,674 2,468,804 3,265,478 4,551,212 (1,285,734) EXPENDITURES 2009-10 Grant 2,819 165,081 167,900 167,900 - 2010-11 Grant 89,868 352,860 442,728 445,831 3,103 2011-12 Grant 681,789 143,243 825,032 894,079 69,047 2012-13 Grant 146,306 592,903 739,209 834,531 95,322 2013-14 Grant 16,469 - 16,469 765,981 749,512 Total Expenditures 937,251 1,254,087 2,191,338 3,108,322 167,472 Excess (Deficiency) of Revenues Over (Under) Expenditures (140,577) 1,214,717 1,074,140 1,442,890 (368,750) Net Change in Fund Balances (140,577) $ 1,214,717 1,074,140 $ 1,442,890 $ (368,750) Fund Balances--January 1 600,673 600,673 Less Prior Years' Project Revenues (2,468,804) Adjustment to Loans Receivable 125,000 125,000 Plus Prior Years' Project Expenditures 1,254,087 Fund Balances--December 31 $ 585,096 $ 585,096 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, 2013 Prior Year Cumulative Actual Actual Actual Budget Variance REVENUES Intergovernmental $ 4,436,921 $ 17,544,606 $ 21,981,527 $ 30,348,297 $ (8,366,770) Fees and charges for services 782,418 3,570,248 4,352,666 4,387,690 (35,024) Earnings on investments 8,044 185,925 193,969 181,912 12,057 Miscellaneous revenue 11,883 458,652 470,535 252,779 217,756 Total Revenues 5,239,266 21,759,431 26,998,697 35,170,678 (8,171,981) EXPENDITURES FTA Grants 2008 Operating - 8,431,566 8,431,566 9,084,080 652,514 2009 Operating - 8,708,203 8,708,203 10,630,156 1,921,953 2010 Operating 87,472 8,158,046 8,245,518 9,129,638 884,120 2011 Operating 32,929 8,388,931 8,421,860 8,889,965 468,105 2012 Operating 342,569 7,727,829 8,070,398 9,460,907 1,390,509 2013 Operating 8,584,599 76,600 8,661,199 9,589,323 928,124 2008 Capital 404,937 1,658,689 2,063,626 1,771,997 (291,629) 2009 Capital - 618,975 618,975 969,958 350,983 2010 Capital 35,762 2,378,478 2,414,240 3,582,449 1,168,209 2011 Capital - 5,895 5,895 684,762 678,867 2012 Capital 1,076,902 3,247 1,080,149 4,493,381 3,413,232 2013 Capital 9,538 - 9,538 568,077 558,539 Total Expenditures 10,574,708 46,156,459 56,731,167 68,854,693 12,123,526 Excess (Deficiency) of Revenues Over (Under) Expenditures (5,335,442) (24,397,028) (29,732,470) (33,684,015) 3,951,545 OTHER FINANCING SOURCES (USES) Transfers in: General Fund 5,573,818 25,769,606 31,343,424 31,343,424 - Transfers out: Capital Projects Fund - (152,524) (152,524) (152,524) - 5,573,818 25,617,082 31,190,900 31,190,900 - Net Change in Fund Balances 238,376 $ 1,220,054 1,458,430 $ (2,493,115) $ 3,951,545 Fund Balances--January 1 3,284,004 3,284,004 Less Prior Years' Project Revenues (47,529,037) Plus Prior Years' Project Expenditures 46,308,983 Fund Balances--December 31 $ 3,522,380 $ 3,522,380 112 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, 2013 Actual Budget Variance REVENUES Fees and charges for services $ 4,154,740 $ 2,084,500 $ 2,070,240 Earnings on investments 20,531 55,267 (34,736) Miscellaneous revenue 689,665 100,000 589,665 Total Revenues 4,864,936 2,239,767 2,625,169 EXPENDITURES Oversizing costs 1,326,636 2,601,384 1,274,748 Total Expenditures 1,326,636 2,601,384 1,274,748 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,538,300 (361,617) 3,899,917 OTHER FINANCING SOURCES (USES) Transfers in: General Fund 361,617 361,617 - Transfers out: Capital Projects Fund (285) (1,017,872) 1,017,587 Total Other Financing Sources (Uses) 361,332 (656,255) 1,017,587 Net Change in Fund Balances 3,899,632 $ (1,017,872) $ 4,917,504 Fund Balances--January 1 7,283,436 Fund Balances--December 31 $ 11,183,068 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, 2013 Actual Budget Variance REVENUES Taxes $ 272,106 $ 273,523 $ (1,417) Intergovernmental 31,083 28,000 3,083 Earnings on investments 359 10,769 (10,410) Miscellaneous revenue 100 - 100 Total Revenues 303,648 312,292 (8,644) EXPENDITURES Other 272,252 721,022 448,770 Total Expenditures 272,252 721,022 448,770 Excess (Deficiency) of Revenues Over (Under) Expenditures 31,396 (408,730) 440,126 OTHER FINANCING (USES) Transfers out: General Fund (40,000) (115,000) 75,000 Total Other Financing (Uses) (40,000) (115,000) 75,000 Net Change in Fund Balances (8,604) $ (523,730) $ 515,126 Fund Balances--January 1 1,067,828 Fund Balances--December 31 $ 1,059,224 114 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, 2013 Actual Budget Variance REVENUES Taxes $ 24,690 $ 24,615 $ 75 Intergovernmental 1,827 - 1,827 Earnings on investments 141 491 (350) Total Revenues 26,658 25,106 1,552 EXPENDITURES Other 494 600 106 Total Expenditures 494 600 106 Excess of Revenues Over Expenditures 26,164 24,506 1,658 Net Change in Fund Balances 26,164 $ 24,506 $ 1,658 Fund Balances--January 1 88,916 Fund Balances--December 31 $ 115,080 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, 2013 Actual Budget Variance REVENUES Earnings (loss) on investments $ (132) $ 339 $ (471) Miscellaneous revenue 56,836 65,534 (8,698) Total Revenues 56,704 65,873 (9,169) EXPENDITURES Other 54,788 65,534 10,746 Total Expenditures 54,788 65,534 10,746 Net Change in Fund Balances 1,916 $ 339 $ 1,577 Fund Balances--January 1 52,739 Fund Balances--December 31 $ 54,655 116 City of Fort Collins Comprehensive Annual Financial Report FORT COLLINS LEASING CORPORATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Miscellaneous revenue $ 53,766 $ 53,767 $ (1) Total Revenues 53,766 53,767 (1) EXPENDITURES Principal 3,756,280 3,371,281 (384,999) Interest 882,468 1,279,563 397,095 Other 3,500 2,500 (1,000) Total Expenditures 4,642,248 4,653,344 11,096 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,588,482) (4,599,577) 11,095 OTHER FINANCING SOURCES (USES) Transfers in: General Fund 3,011,726 3,017,043 (5,317) Capital Expansion Fund 348,677 350,000 (1,323) Natural Areas Fund 1,122,619 1,126,674 (4,055) Transportation Fund 105,460 105,860 (400) Total Other Financing Sources (Uses) 4,588,482 4,599,577 (11,095) Net Change in Fund Balances - $ - $ - Fund Balances--January 1 - Fund Balances--December 31 $ - City of Fort Collins Comprehensive Annual Financial Report 117 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, 2013 Prior Year Cumulative Actual Actual Actual Budget Variance REVENUES Intergovernmental $ - $ 494,319 $ 494,319 $ 428,896 $ 65,423 Fees and charges for services 2,011,034 15,834,106 17,845,140 13,189,876 4,655,264 Earnings on investments 8,376 2,379,466 2,387,842 2,151,439 236,403 Miscellaneous revenue - 291,062 291,062 271,389 19,673 Total Revenues 2,019,410 18,998,953 21,018,363 16,041,600 4,976,763 EXPENDITURES Waters Way Park 93,791 1,746,600 1,840,391 1,875,364 34,973 New Site Acquisition 26,704 1,960,995 1,987,699 2,110,945 123,246 New Park Site Development 37,069 1,500,340 1,537,409 2,419,788 882,379 Lee Martinez Park Addition 73,946 195,151 269,097 489,462 220,365 Huidekoper Park - 154,971 154,971 422,000 267,029 Lilac Park - 140,383 140,383 177,000 36,617 Registry Park 30,050 1,616,477 1,646,527 1,696,700 50,173 Romero 1,845 - 1,845 150,000 148,155 Richards Lake - 363,740 363,740 1,630,506 1,266,766 Staley Neighborhood Park 485,278 1,483,824 1,969,102 2,151,000 181,898 Avery Park Improvements - 39 39 200,000 199,961 Maple Hill Park 71,126 461,199 532,325 676,410 144,085 Rossborough Park Improvements - 3,932 3,932 175,000 171,068 Trailhead Park 8,801 244,022 252,823 827,000 574,177 Golden Meadows Park - 150,588 150,588 450,000 299,412 Soft Gold Neighborhood Park - 21,623 21,623 175,000 153,377 Side Hill Neighborhood Park - - - 198,000 198,000 Bacon School Neighborhood Park 340,775 - 340,775 350,000 9,225 Parkland Administration 402,869 - 402,869 408,578 5,709 Total Expenditures 1,572,254 10,043,884 11,616,138 16,582,753 4,966,615 Excess (Deficiency) of Revenues Over (Under) Expenditures 447,156 8,955,069 9,402,225 (541,153) 9,943,378 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 (2,000) (63,800) (65,800) (65,800) - Capital Projects Fund - (488,220) (488,220) (488,220) - Data & Communications Fund (7,582) - (7,582) (7,582) - Total Other Financing Sources (Uses) (9,582) (464,313) (473,895) (473,895) - Net Change in Fund Balances 437,574 $ 8,490,756 8,928,330 $ (1,015,048) $ 9,943,378 Fund Balances--January 1 5,127,970 5,127,970 Less Prior Years' Project Revenues (19,086,660) Plus Prior Years' Project Expenditures 10,595,904 Fund Balances--December 31 $ 5,565,544 $ 5,565,544 118 City of Fort Collins Comprehensive Annual Financial Report 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, 2013 Prior Year Cumulative Actual Actual Actual Budget Variance REVENUES Intergovernmental $ 1,585,140 $ 23,172,421 $ 24,757,561 $ 23,575,527 $ 1,182,034 Earnings on investments 210 531,293 531,503 771,902 (240,399) Miscellaneous revenue - 227,956 227,956 303,035 (75,079) Total Revenues 1,585,350 23,931,670 25,517,020 24,650,464 866,556 EXPENDITURES Trail acquisition/development 70,619 8,444,950 8,515,569 9,229,920 714,351 Open space acquisition - 1,105,949 1,105,949 1,162,403 56,454 Fossil Creek Trail 201,533 4,057,372 4,258,905 4,823,021 564,116 Tri-City trails - 677,174 677,174 1,072,541 395,367 Pickle Plant - 15,386 15,386 15,386 - Hughes Stadium Disc Golf Course 45,415 83,113 128,528 133,700 5,172 Administration 270,587 - 270,587 270,158 (429) Total Expenditures 588,154 14,383,944 14,972,098 16,707,129 1,735,031 Excess of Revenues Over Expenditures 997,196 9,547,726 10,544,922 7,943,335 2,601,587 OTHER FINANCING SOURCES (USES) Transfers in: Capital Projects Fund - 235,000 235,000 235,000 - Transfers out: General Fund (735,154) (884,400) (1,619,554) (1,619,554) - Cultural Services & Facilities Fund (9,000) (108,850) (117,850) (117,850) - Capital Projects Fund - (1,007,337) (1,007,337) (1,017,618) 10,281 Data and Communications Fund (11,278) - (11,278) (11,278) - Total Other Financing Sources (Uses) (755,432) (1,765,587) (2,521,019) (2,531,300) 10,281 Net Change in Fund Balances 241,764 $ 7,782,139 8,023,903 $ 5,412,035 $ 2,611,868 Fund Balances--January 1 1,689,393 1,689,393 Less Prior Years' Project Revenues (24,166,670) Plus Prior Years' Project Expenditures 16,384,531 Fund Balances--December 31 $ 1,931,157 $ 1,931,157 City of Fort Collins Comprehensive Annual Financial Report 119 MUSEUM FUND (A SUB-FUND OF THE GENERAL FUND) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET FOR THE YEAR ENDED DECEMBER 31, 2013 Original Final Actual Budget Budget Variance REVENUES Intergovernmental $ - $ - $ 138,933 $ (138,933) Earnings on investments 7,244 - - 7,244 Miscellaneous revenue 14,338 250,000 250,000 (235,662) Total Revenues 21,582 250,000 388,933 (367,351) EXPENDITURES Current operating Community and operation 991,319 1,181,420 1,320,353 329,034 Total Expenditures 991,319 1,181,420 1,320,353 329,034 Excess (Deficiency) of Revenues Over (Under) Expenditures (969,737) (931,420) (931,420) (38,317) OTHER FINANCING SOURCES (USES) Transfers in 931,420 931,420 931,420 - Transfers out (75,316) - (100,000) 24,684 Total Other Financing Sources (Uses) 856,104 931,420 831,420 24,684 Net Change in Fund Balances (113,633) $ - $ (100,000) $ (13,633) Fund Balances--January 1 - Fund Balances (Deficit)--December 31 $ (113,633) 120 City of Fort Collins Comprehensive Annual Financial Report EMERGENCY RECOVERY FUND (A SUB-FUND OF THE GENERAL FUND) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET FOR THE YEAR ENDED DECEMBER 31, 2013 Original Final Actual Budget Budget Variance REVENUES Intergovernmental $ 6,512 $ - $ 1,118,000 $ (1,111,488) Total Revenues 6,512 - 1,118,000 (1,111,488) EXPENDITURES Other 457,269 - 1,118,000 660,731 Total Expenditures 457,269 - 1,118,000 660,731 Net Change in Fund Balances (450,757) $ - $ - $ (450,757) Fund Balances--January 1 - Fund Balances (Deficit)--December 31 $ (450,757) City of Fort Collins Comprehensive Annual Financial Report 121 URBAN RENEWAL AUTHORITY - NORTH COLLEGE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Original Final Actual Budget Budget Variance REVENUES Taxes $ 1,284,690 $ 1,176,789 $ 1,176,789 $ 107,901 Earnings on investments 77,285 93,766 93,766 (16,481) Miscellaneous revenue 233,832 - - 233,832 Total Revenues 1,595,807 1,270,555 1,270,555 325,252 EXPENDITURES Sustainability Services 394,401 234,627 276,057 (118,344) Interest 596,493 950,966 950,966 354,473 Total Expenditures 990,894 1,185,593 1,227,023 236,129 Excess of Revenues Over Expenditures 604,913 84,962 43,532 561,381 OTHER FINANCING SOURCES (USES) Transfers out: - - (70,000) 70,000 Payment on advances (10,938,089) (10,938,089) (10,938,089) - Debt Debt issued 11,085,000 11,085,000 11,085,000 - Premium on Debt 316,806 - - 316,806 Total Other Financing Sources (Uses) 463,717 146,911 76,911 386,806 Net Change 1,068,630 $ 231,873 $ 120,443 $ 948,187 RECONCILIATION TO GAAP BASIS Payments on Advances 10,938,089 Net Change in Fund Balances 12,006,719 Fund Balances (Deficit)--January 1 (9,227,401) Fund Balances--December 31 $ 2,779,318 122 City of Fort Collins Comprehensive Annual Financial Report URBAN RENEWAL AUTHORITY - PROSPECT SOUTH TIF DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Original Final Actual Budget Budget Variance REVENUES Earnings (loss) on investments $ (111) $ - $ - $ (111) Total Revenues (111) - - (111) EXPENDITURES Sustainability Services 4,273,719 - 5,000,000 726,281 Excess of Revenues Over Expenditures (4,273,830) - (5,000,000) 726,170 OTHER FINANCING SOURCES Proceeds from advances 5,000,000 - 5,000,000 - Net Change 726,170 $ - $ - $ 726,170 RECONCILIATION TO GAAP BASIS Proceeds from Advances (5,000,000) Net Change in Fund Balances (4,273,830) Fund Balances--January 1 - Fund Balances (Deficit)--December 31 $ (4,273,830) City of Fort Collins Comprehensive Annual Financial Report 123 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. 124 City of Fort Collins Comprehensive Annual Financial Report 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, 2013 Current Prior Year Year Cumulative Actual Actual Actual Budget Variance REVENUES Intergovernmental $ 39,734,050 $ 37,034,187 $ 76,768,237 $ 111,222,620 $ (34,454,383) Earnings on investments 141,255 8,373,512 8,514,767 7,670,995 843,772 Miscellaneous revenue 1,390,479 8,276,744 9,667,223 9,629,315 37,908 Total Revenues 41,265,784 53,684,443 94,950,227 128,522,930 (33,572,703) EXPENDITURES Woodward Public Improvements 398,455 - 398,455 6,547,080 6,148,625 FC Museum / DSC Fac Design 111,915 16,159,871 16,271,786 16,296,470 24,684 BOB-Lincoln Center Renovation - 8,085,350 8,085,350 8,085,351 1 Env Site Mitigation - 112 E. Willow - 183,019 183,019 200,000 16,981 Block 32 Redevelopment 155,898 45,644 201,542 330,000 128,458 New Branch Library-Beyer Site 269,839 5,274,161 5,544,000 5,544,000 - Integrated Recycling Facility 28,697 - 28,697 443,520 414,823 Natural Areas Office Building 410,893 24,813 435,706 1,841,400 1,405,694 Downtown Poudre River Improvements 147,245 - 147,245 173,250 26,005 Coventry Dev Wildlife Habitat - - - 9,000 9,000 Regional Trails 170,281 1,818,437 1,988,718 1,988,718 - Southeast Community Park 161,166 3,618,141 3,779,307 4,244,026 464,719 East Community Park 175,700 - 175,700 1,700,000 1,524,300 Spring Canyon-Veterans Plaza 3,866 321,672 325,538 349,607 24,069 Water Craft Course - 36,342 36,342 150,000 113,658 BOB-Park Upgrades/Enhancements 5,656 299,241 304,897 304,897 - Gardens Capital Project - - - 397,500 397,500 BOB-Senior Center Expansion 1,069,079 7,406 1,076,485 3,440,050 2,363,565 Mulberry/Lemay Ped Bridge-Poudre Trail - - - 368,000 368,000 Trail Acq/Dev- Special Funds - - - 1,741,405 1,741,405 Fossil Creek Trail - - - 200,000 200,000 Pickle Plant - - - 75,364 75,364 Hughes Stadium Disc Golf Course 70,000 - 70,000 71,300 1,300 Street Oversizing Projects 57,755 10,982,849 11,040,604 12,981,899 1,941,295 BOB Int Imp & Traffic Signals 773,678 5,375,852 6,149,530 14,322,907 8,173,377 I-25 & SH 392 Interchange 138,806 4,190,433 4,329,239 4,739,593 410,354 I-25 Interchange Design Project - - - 100,000 100,000 City Bridge Program 1,107,770 2,375,132 3,482,902 5,519,372 2,036,470 Rairoad Crossing Replacement 92,839 231,591 324,430 619,903 295,473 Harmony/UPRR Safey & Maintenance 463,036 11,925 474,961 575,000 100,039 Mason Street Transportation Corridor 40,047,107 36,944,373 76,991,480 96,708,594 19,717,114 BOB Ped Plan & ADA Improvements 1,097,899 2,016,780 3,114,679 3,595,606 480,927 Bicycle Plan Implementation 74,041 48,833 122,874 530,000 407,126 N. College Improvements-Vine/Conifer 549,859 8,793,466 9,343,325 11,215,464 1,872,139 N. College Improvements-Conifer/Willox 589,728 103,338 693,066 3,366,000 2,672,934 Lemay/Vine Grade Sep Crossing 13,455 - 13,455 50,000 36,545 Administrative Charges 45,013 - 45,013 45,013 - Total Expenditures 48,229,676 106,948,669 155,178,345 208,870,289 53,691,944 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,963,892) (53,264,226) (60,228,118) (80,347,359) 20,119,241 (Continued on Next Page) City of Fort Collins Comprehensive Annual Financial Report 125 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, 2013 Current Prior Year Year Cumulative Actual Actual Actual Budget Variance OTHER FINANCING SOURCES (USES) Transfers in General Fund 1,135,086 8,430,502 9,565,588 9,585,549 (19,961) Capital Expansion Fund 547,866 8,597,754 9,145,620 11,134,639 (1,989,019) Sales and Use Tax Fund 5,162,388 44,262,551 49,424,939 47,504,506 1,920,433 Natural Areas Fund 454,306 888,326 1,342,632 3,248,326 (1,905,694) Cultural Services & Facilities Fund - 371,200 371,200 371,200 - Recreation Fund - - - 500,000 (500,000) Museum Fund 75,316 - 75,316 100,000 (24,684) Transit Services Fund - 116,525 116,525 116,525 - Street Oversizing Fund 285 5,040,336 5,040,621 6,058,208 (1,017,587) Transportation Services Fund 331,240 436,606 767,846 657,000 110,846 URA Operations & Maintenance Fund - 1,548,079 1,548,079 1,618,079 (70,000) Transfers out Cultural Services and Facilities Fund (109,210) (437,463) (546,673) (546,673) - Total Other Financing Sources (Uses) 7,597,277 69,254,416 76,851,693 80,347,359 (3,495,666) Net Changes in Fund Balance 633,385 $ 15,990,190 16,623,575 $ - $ 16,623,575 Fund Balances--January 1 20,404,680 20,404,680 Less Prior Years' Project Revenues (123,376,322) Plus Prior Years' Project Expenditures 107,386,132 Fund Balances--December 31 $ 21,038,065 $ 21,038,065 126 City of Fort Collins Comprehensive Annual Financial Report 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. City of Fort Collins Comprehensive Annual Financial Report 127 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, 2013 Actual Budget Variance REVENUES Charges for services $ 114,757,689 $ 109,235,769 $ 5,521,920 Intergovermental 933,688 267,040 666,648 Other nonoperating income 1,417,461 1,348,600 68,861 Earnings on investments 74,170 519,500 (445,330) Transfers (43,698) (43,697) (1) Loss on sale of capital assets (873,819) - (873,819) Contributed capital 12,954,709 1,801,000 11,153,709 Total Revenues 129,220,200 113,128,212 16,091,988 EXPENSES Programs (fund level of budgetary control) Customer and administrative services 4,683,584 5,288,916 605,332 System additions 8,292,788 9,010,794 718,006 Light and Power operations 8,138,067 8,117,879 (20,188) Payments and transfers 10,647,749 10,024,650 (623,099) Purchase of power 80,700,035 83,011,368 2,311,333 Energy services 4,533,038 6,078,128 1,545,090 Total Programs 116,995,261 121,531,735 4,536,474 Projects (project level of budgetary control) Substation Improvements 6,413,587 8,588,148 2,174,561 Art in Public Places 29,122 543,756 514,634 Smart Grid 27,321,297 34,890,127 7,568,830 SW Enclave System Purchases 1,572,756 2,575,444 1,002,688 Underground Conversion Program 103,888 1,758,568 1,654,680 Grants 6,901,486 7,369,504 468,018 Service Center Additions 260,728 4,619,563 4,358,835 MHz Radio System - 648,325 648,325 Mason Corridor 1,020,000 1,020,000 - CMMS Maintenance 76,012 381,129 305,117 Electric Vehicle Charge Stations 31,902 125,040 93,138 Total Projects 43,730,778 62,519,604 18,788,826 Total Expenses 160,726,039 184,051,339 23,325,300 Excess (deficiency) of revenues over (under) expenses before reconciling items (31,505,839) $ (70,923,127) $ 39,417,288 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 8,270,256 Current Year's Project Expenses 7,855,677 Prior Years' Project Expenses 33,589,279 Principal Reduction--Long-Term Debt 1,490,000 Depreciation (8,032,824) Bond Amortization 60,804 Total Reconciling Items 43,233,192 Change in net position 11,727,353 Net Position--January 1 177,687,691 Net Position--December 31 $ 189,415,044 128 City of Fort Collins Comprehensive Annual Financial Report WATER FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Charges for services $ 25,953,822 $ 26,553,614 $ (599,792) Other nonoperating income 1,062,826 200,636 862,190 Earnings on investments 164,353 818,643 (654,290) Gain on sale of capital assets 58,330 - 58,330 Contributed capital 5,474,104 2,379,860 3,094,244 Proceeds from issuance of long term debt - 545,762 (545,762) Total Revenues 32,713,435 30,498,515 2,214,920 EXPENSES Programs (fund level of budgetary control) Customer and administrative services 3,824,248 4,398,716 574,468 Payments and transfers 7,271,984 8,408,917 1,136,933 Transmission and distribution 2,790,596 2,992,177 201,581 Water engineering 102,269 102,222 (47) Water production 6,116,880 10,033,198 3,916,318 Water quality 933,354 1,072,820 139,466 Water resources 1,750,797 2,383,648 632,851 Total Programs 22,790,128 29,391,698 6,601,570 Projects (project level of budgetary control) Advanced Metering Infrastructure 4,673,192 4,659,229 (13,963) Asset Management 236,059 411,129 175,070 Capital Project Oversight 63,526 60,000 (3,526) Cathodic Protection 721,943 852,576 130,633 Distribution System Replacement 3,004,821 4,717,456 1,712,635 Engineering Distrubution Sys Replcmnt 6,139,674 7,007,638 867,964 Gravel Pit Storage Ponds 1,250,538 11,577,000 10,326,462 Halligan Reservoir Enlargement 11,577,741 37,187,446 25,609,705 High Park Fire 1,845,265 2,237,953 392,688 Master Plan Facilities 7,076,439 7,212,072 135,633 Meter Conversion Program 742,820 1,640,771 897,951 Michigan Ditch improvements 786,730 800,000 13,270 Poudre Pipeline 1,028,312 1,512,610 484,298 Service Center Improvements 988,369 1,343,297 354,928 Source of Supply Gen Replcmnt 76,929 463,443 386,514 Southwest System Improvements 1,072,068 1,486,528 414,460 Treatment Facility Improvement 825,847 997,013 171,166 Water Production Replcmnt Program 2,589,349 5,753,762 3,164,413 Water Supply Development 1,450,466 2,482,203 1,031,737 Total Projects 46,150,088 92,402,126 46,252,038 Total Expenses 68,940,216 121,793,824 52,853,608 Excess (deficiency) of revenues over (under) expenses before reconciling items (36,226,781) $ (91,295,309) $ 55,068,528 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 688,293 Current Year's Project Expenses 10,561,134 Prior Years' Project Expenses 36,334,291 Principal Reduction--Long-Term Debt 2,468,859 Depreciation (5,514,445) Bond Amortization 13,430 Total Reconciling Items 44,551,562 Change in net position 8,324,781 Net Position--January 1 260,332,922 Net Position--December 31 $ 268,657,703 City of Fort Collins Comprehensive Annual Financial Report 129 WASTEWATER FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Charges for services $ 20,337,824 $ 19,450,506 $ 887,318 Other nonoperating income 98,411 87,564 10,847 Earnings on investments 171,776 342,357 (170,581) Gain on sale of capital assets 31,065 - 31,065 Contributed capital 3,172,339 555,161 2,617,178 Total Revenues 23,811,415 20,435,588 3,375,827 EXPENSES Programs (fund level of budgetary control) Customer and administrative services 1,723,931 1,946,739 222,808 Payments and transfers 6,838,364 7,325,490 487,126 Pollution control 1,126,210 1,291,965 165,755 Trunk and collection 1,554,419 2,164,371 609,952 Water engineering 98,573 105,918 7,345 Water reclamation 5,455,008 5,966,732 511,724 Total Programs 16,796,505 18,801,215 2,004,710 Projects (project level of budgetary control) Art in public places - 483,780 483,780 Asset Management 233,714 411,130 177,416 Capital Project Oversight 31,729 40,000 8,271 Carbin Addition Alternative 57,034 60,500 3,466 Collection System Replacement 5,025,288 11,851,191 6,825,903 Collection System Study 957,674 970,000 12,326 800 MHz Radios - 240,920 240,920 Flow Monitoring Stations 1,006,089 1,015,000 8,911 Mulberry Water Reclamation Improvement 36,282,479 36,784,863 502,384 Service Center Improvements 2,079,853 2,579,139 499,286 Sludge Disposal Improvements 5,756,774 6,593,943 837,169 Treatment Plant Expansion 26,724,028 27,253,296 529,268 Water Reclamation Replacement Program 6,346,976 9,416,756 3,069,780 Total Projects 84,501,638 97,700,518 13,198,880 Total Expenses 101,298,143 116,501,733 15,203,590 Excess (deficiency) of revenues over (under) expenses before reconciling items (77,486,728) $ (96,066,145) $ 18,579,417 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 246,741 Current Year's Project Expenses 3,439,123 Prior Years' Project Expenses 81,062,515 Principal Reduction--Long-Term Debt 3,265,168 Depreciation (4,696,652) Bond Amortization 25,068 Total Reconciling Items 83,341,963 Change in net position 5,855,235 Net Position--January 1 143,302,416 Net Position--December 31 $ 149,157,651 130 City of Fort Collins Comprehensive Annual Financial Report 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, 2013 Actual Budget Variance REVENUES Charges for services $ 14,384,673 $ 13,853,000 $ 531,673 Other nonoperating income 18,911 20,000 (1,089) Earnings on investments 48,495 149,000 (100,505) Transfers 32,000 32,000 - Gain (loss) on sale of capital assets 27,782 (19,000) 46,782 Contributed capital 842,455 379,000 463,455 Total Revenues 15,354,316 14,414,000 940,316 EXPENSES Programs (fund level of budgetary control) Drainage and detention 1,528,760 2,029,728 500,968 Storm drainage engineering 1,269,836 1,442,312 172,476 Payments and transfers 6,817,118 7,250,953 433,835 Total Programs 9,615,714 10,722,993 1,107,279 Projects (project level of budgetary control) Drainage System Replacement 1,011,867 1,376,704 364,837 Old Town Basin 1,149,341 3,687,362 2,538,021 McClelland Mail Creek Basin 4,140 4,140 - Spring Creek Basin 43,370 736,432 693,062 Dry Creek Basin 508,770 1,680,475 1,171,705 West Vine Channel 552,492 1,852,206 1,299,714 Foothills Basin 3,950 8,728 4,778 Canal Importation 20,436,727 21,282,504 845,777 Cooper Slough 1,418,101 1,856,254 438,153 Fossil Creek 87,409 317,075 229,666 Cache La Poudre Drainageway 280,585 1,184,000 903,415 Utility Service Center 116,882 409,466 292,584 Master Planning 5,430,181 5,752,943 322,762 Developer Repays 1,880,243 2,491,333 611,090 Post Fire-Flood Warning Grant 18,184 23,841 5,657 Total Projects 32,942,242 42,663,463 9,721,221 Total Expenses 42,557,956 53,386,456 10,828,500 Excess (deficiency) of revenues over (under) expenses before reconciling items (27,203,640) $ (38,972,456) $ 11,768,816 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 146,519 Current Year's Project Expenses 1,531,657 Prior Years' Project Expenses 30,066,867 Principal Reduction--Long-Term Debt 3,085,000 Depreciation (2,134,399) Bond Amortization (68,892) Total Reconciling Items 32,626,752 Change in net position 5,423,112 Net Position--January 1 96,954,319 Net Position--December 31 $ 102,377,431 City of Fort Collins Comprehensive Annual Financial Report 131 GOLF FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Charges for services $ 2,895,447 $ 2,835,000 $ 60,447 Other nonoperating income 29,847 34,500 (4,653) Earnings on investments 2,665 3,330 (665) Gain on sale of capital assets 1,185 - 1,185 Proceeds from issuance of long term debt 156,644 156,644 - Total Revenues 3,085,788 3,029,474 56,314 EXPENSES Programs (fund level of budgetary control) Golf courses 3,094,105 3,170,277 76,172 Transfers 35,458 35,458 - Total Programs 3,129,563 3,205,735 76,172 Total Expenses 3,129,563 3,205,735 76,172 Excess (deficiency) of revenues over (under) expenses before reconciling items (43,775) $ (176,261) $ 132,486 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 133,062 Principal Reduction--Long-Term Debt 291,065 Principal Reduction--Capital Lease Obligations 93,131 Proceeds From Lease Purchases (156,644) Depreciation (277,766) Bond Amortization 3,096 Total Reconciling Items 85,944 Change in net position 42,169 Net Position--January 1 5,089,831 Net Position--December 31 $ 5,132,000 132 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK. City of Fort Collins Comprehensive Annual Financial Report 133 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. 134 City of Fort Collins Comprehensive Annual Financial Report INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION DECEMBER 31, 2013 Data and Equipment Self Insurance Communications ASSETS Current Assets Cash and cash equivalents $ 240,347 $ 3,719,476 $ 368,324 Investments 1,974,702 3,146,585 3,022,368 Receivables Accounts 51,435 34,909 4,057 Interest 4,203 9,153 8,499 Prepaid item - 219,794 - Due from other governments 9,937 - - Inventories of materials and supplies 545,254 - - Total Current Assets 2,825,878 7,129,917 3,403,248 Non-Current Assets Restricted - cash and cash equivalents 15,688 - 3,722 Land, water rights, other 30,126 - - Buildings, improvements and equipment 11,370,253 - 4,083,568 Accumulated depreciation (7,145,475) - (3,272,576) Total Non-Current Assets 4,270,592 - 814,714 Total Assets 7,096,470 7,129,917 4,217,962 LIABILITIES Current Liabilities Accounts payable 311,904 18,222 425,215 Interest payable 10,113 - 2,879 Wages payable 65,838 9,573 113,041 Compensated absences 119,740 31,319 353,324 Claims payable - 874,339 - Capital lease obligations 620,900 - 295,075 Total Current Liabilities 1,128,495 933,453 1,189,534 Non-Current Liabilities Claims payable - 2,623,594 - Capital lease obligations 1,719,237 - 838,389 Total Non-Current Liabilities 1,719,237 2,623,594 838,389 Total Liabilities 2,847,732 3,557,047 2,027,923 NET POSITION Net investment in capital assets 1,914,767 - 810,993 Restricted: fiscal agent 15,688 - 3,722 Unrestricted 2,318,283 3,572,870 1,375,324 Total Net Position $ 4,248,738 $ 3,572,870 $ 2,190,039 City of Fort Collins Comprehensive Annual Financial Report 135 Utility Customer Benefits Service and Admin. Total $ 1,809,748 $ 476,079 $ 6,613,974 9,917,210 2,609,451 20,670,316 802,182 639 893,222 29,792 8,219 59,866 - - 219,794 - - 9,937 - - 545,254 12,558,932 3,094,388 29,012,363 - - 19,410 - - 30,126 - 3,364,932 18,818,753 - (2,974,518) (13,392,569) - 390,414 5,475,720 12,558,932 3,484,802 34,488,083 568,201 218,693 1,542,235 - - 12,992 17,794 195,835 402,081 40,344 396,111 940,838 1,396,394 - 2,270,733 - - 915,975 2,022,733 810,639 6,084,854 - - 2,623,594 - - 2,557,626 - - 5,181,220 2,022,733 810,639 11,266,074 - 390,414 3,116,174 - - 19,410 10,536,199 2,283,749 20,086,425 $ 10,536,199 $ 2,674,163 $ 23,222,009 136 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, 2013 Data and Equipment Self Insurance Communications OPERATING REVENUES Charges for services $ 8,724,193 $ 2,645,765 $ 1,922,225 Total Operating Revenues 8,724,193 2,645,765 1,922,225 OPERATING EXPENSES Personal services 2,554,306 356,764 3,953,173 Contractual services 1,660,462 1,846,121 2,379,772 Commodities 4,242,331 163,399 1,561,741 Other 6,151 - - Depreciation 862,270 - 318,789 Total Operating Expenses 9,325,520 2,366,284 8,213,475 Operating Income (Loss) (601,327) 279,481 (6,291,250) NONOPERATING REVENUES (EXPENSES) Earnings on investments 1,999 1,876 3,805 Other revenue 98,315 13,783 - Gain on sale of capital assets 60,349 - - Interest expense (51,736) - (22,137) Total Nonoperating Revenues (Expenses) 108,927 15,659 (18,332) Income (Loss) Before Transfers (492,400) 295,140 (6,309,582) Transfers in 424,426 - 6,179,280 Transfers out - (175,953) - Change in Net Position (67,974) 119,187 (130,302) Net Position--January 1 4,316,712 3,453,683 2,320,341 Net Position--December 31 $ 4,248,738 $ 3,572,870 $ 2,190,039 City of Fort Collins Comprehensive Annual Financial Report 137 Utility Customer Benefits Service and Admin. Total $ 19,961,310 $ 11,605,884 $ 44,859,377 19,961,310 11,605,884 44,859,377 687,984 7,292,314 14,844,541 21,352,719 3,677,999 30,917,073 18,640 642,342 6,628,453 - 8,766 14,917 - 344,251 1,525,310 22,059,343 11,965,672 53,930,294 (2,098,033) (359,788) (9,070,917) 7,799 4,187 19,666 40,000 1,186,545 1,338,643 - 6,169 66,518 - - (73,873) 47,799 1,196,901 1,350,954 (2,050,234) 837,113 (7,719,963) - 175,953 6,779,659 - (1,814,649) (1,990,602) (2,050,234) (801,583) (2,930,906) 12,586,433 3,475,746 26,152,915 $ 10,536,199 $ 2,674,163 $ 23,222,009 138 City of Fort Collins Comprehensive Annual Financial Report INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 Data and Equipment Self Insurance Communications CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided $ 8,793,980 $ 2,645,071 $ 1,929,145 Cash paid to employees for services (2,560,038) (353,998) (3,911,839) Cash paid to other suppliers of goods & services (5,809,268) (2,520,774) (3,939,132) Payments for interfund services used - (431) (2,281) Other receipts 98,315 13,783 - Net cash provided (used) by operating activities 522,989 (216,349) (5,924,107) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 424,426 - 6,179,280 Transfers to other funds - (175,953) - Net cash provided (used) by noncapital financing activities 424,426 (175,953) 6,179,280 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt 1,404,485 - 383,653 Purchases of capital assets (1,575,379) - (97,278) Principal paid on capital debt (474,820) - (221,385) Interest paid on capital debt (44,993) - (21,076) Proceeds from sales of capital assets 81,367 - - Net cash provided (used) by capital and related financing activities (609,340) - 43,914 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments 1,596,453 1,154,297 (264,242) Purchase of investments (1,979,392) - - Earnings received on investments 12,869 34,121 2,789 Net cash provided (used) by investing activities (370,070) 1,188,418 (261,453) Net increase (decrease) in cash and cash equivalents (31,995) 796,116 37,634 Cash and cash equivalents, January 1 288,030 2,923,360 334,412 Cash and cash equivalents, December 31 $ 256,035 $ 3,719,476 $ 372,046 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ (601,327) $ 279,481 $ (6,291,250) Other receipts 98,315 13,783 - Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 862,270 - 318,789 (Increase) decrease in accounts receivable 69,787 (694) (1,326) (Increase) decrease in intergovernmental receivables (9,937) - 8,246 (Increase) in inventories 34,101 - - (Decrease) in prepaid item - (6,434) - Increase (decrease) in accounts payable 75,512 (600) 100 Increase (decrease) in compensated absences payable (13,166) 2,018 13,018 Increase in wages payable 7,434 748 28,316 Increase (decrease) in claims payable - (502,906) - (Decrease) in unearned revenue - (1,745) - Net cash provided (used) by operating activities $ 522,989 $ (216,349) $ (5,924,107) Reconciliation of cash and cash equivalents to statement of net position: Cash and cash equivalents 240,347 3,719,476 368,324 Restricted Assets - cash and cash equivalents 15,688 - 3,722 City of Fort Collins Comprehensive Annual Financial Report 139 Utility Customer Benefits Service and Admin. Total $ 19,676,563 $ 11,606,495 $ 44,651,254 (680,089) (7,220,379) (14,726,343) (21,230,273) (4,250,521) (37,749,968) (279) - (2,991) 40,000 1,186,545 1,338,643 (2,194,078) 1,322,140 (6,489,405) - 175,953 6,779,659 - (1,814,649) (1,990,602) - (1,638,696) 4,789,057 - - 1,788,138 - (44,044) (1,716,701) - - (696,205) - - (66,069) - 6,169 87,536 - (37,875) (603,301) 11,748,773 353,186 14,588,467 (9,962,939) - (11,942,331) 106,959 4,265 161,003 1,892,793 357,451 2,807,139 (301,285) 3,020 503,490 2,111,033 473,059 6,129,894 $ 1,809,748 $ 476,079 $ 6,633,384 $ (2,098,033) $ (359,788) $ (9,070,917) 40,000 1,186,545 1,338,643 - 344,251 1,525,310 (284,748) 611 (216,370) - - (1,691) - - 34,101 - - (6,434) 4,689 78,586 158,287 3,149 34,186 39,205 4,746 37,749 78,993 136,119 - (366,787) - - (1,745) $ (2,194,078) $ 1,322,140 $ (6,489,405) 1,809,748 476,079 6,613,974 - - 19,410 $ 1,809,748 $ 476,079 $ 6,633,384 140 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, 2013 Actual Budget Variance REVENUES Charges for services $ 8,724,193 $ 10,138,821 $ (1,414,628) Other nonoperating income 98,315 91,800 6,515 Earnings on investments 1,999 11,872 (9,873) Transfers 424,426 424,426 - Gain on sale of capital assets 60,349 70,000 (9,651) Proceeds from issuance of long term debt 1,404,485 1,404,485 - Total Revenues 10,713,767 12,141,404 (1,427,637) EXPENSES Programs (fund level of budgetary control) Fleet services 10,565,185 12,770,152 2,204,967 Total Programs 10,565,185 12,770,152 2,204,967 Total Expenses 10,565,185 12,770,152 2,204,967 Excess (deficiency) of revenues over (under) expenses before reconciling items 148,582 $ (628,748) $ 777,330 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 1,575,379 Principal Reduction--Capital Lease Obligations 474,820 Proceeds From Lease Purchases (1,404,485) Depreciation (862,270) Total Reconciling Items (216,556) Change in net position (67,974) Net Position--January 1 4,316,712 Net Position--December 31 $ 4,248,738 City of Fort Collins Comprehensive Annual Financial Report 141 SELF INSURANCE FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Charges for services $ 2,645,765 $ 2,647,538 $ (1,773) Other nonoperating income 13,783 - 13,783 Earnings on investments 1,876 42,631 (40,755) Total Revenues 2,661,424 2,690,169 (28,745) EXPENSES Programs (fund level of budgetary control) Risk Management 540,331 684,457 144,126 Property & Liability Insurance 1,308,867 1,298,048 (10,819) Workers Compensation 516,983 1,139,400 622,417 Risk Management Environmental 176,056 176,822 766 Total Expenses 2,542,237 3,298,727 756,490 Change in net position 119,187 $ (608,558) $ 727,745 Net Position--January 1 3,453,683 Net Position--December 31 $ 3,572,870 142 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, 2013 Actual Budget Variance REVENUES Charges for services $ 1,922,225 $ 1,589,470 $ 332,755 Earnings on investments 3,805 32,601 (28,796) Transfers 6,179,280 6,179,280 - Proceeds from issuance of long term debt 383,654 383,654 - Total Revenues 8,488,964 8,185,005 303,959 EXPENSES Programs (fund level of budgetary control) Management of Information Services 8,235,486 9,263,313 1,027,827 Total Programs 8,235,486 9,263,313 1,027,827 Total Expenses 8,235,486 9,263,313 1,027,827 Excess (deficiency) of revenues over (under) expenses before reconciling items 253,478 $ (1,078,308) $ 1,331,786 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 97,278 Principal Reduction--Capital Lease Obligations 221,385 Proceeds From Lease Purchases (383,654) Depreciation (318,789) Total Reconciling Items (383,780) Change in net position (130,302) Net Position--January 1 2,320,341 Net Position--December 31 $ 2,190,039 City of Fort Collins Comprehensive Annual Financial Report 143 BENEFITS FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Charges for services $ 19,961,310 $ 19,011,600 $ 949,710 Other nonoperating income 40,000 44,000 (4,000) Earnings on investments 7,799 123,070 (115,271) Total Revenues 20,009,109 19,178,670 830,439 EXPENSES Programs (fund level of budgetary control) Benefits 22,059,343 21,166,812 (892,531) Total Expenses 22,059,343 21,166,812 (892,531) Change in net position (2,050,234) $ (1,988,142) $ (62,092) Net Position--January 1 12,586,433 Net Position--December 31 $ 10,536,199 144 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, 2013 Actual Budget Variance REVENUES Charges for services $ 11,605,884 $ 13,105,888 $ (1,500,004) Other nonoperating income 1,186,545 982,800 203,745 Earnings on investments 4,187 45,285 (41,098) Transfers 175,953 175,953 - Loss on sale of capital assets 6,169 - 6,169 Total Revenues 12,978,738 14,309,926 (1,331,188) EXPENSES Programs (fund level of budgetary control) Customer and administrative services 11,665,466 13,776,993 2,111,527 Transfers 1,814,649 1,814,649 - Total Expenses 13,480,115 15,591,642 2,111,527 Excess (deficiency) of revenues over (under) expenses before reconciling items (501,377) $ (1,281,716) $ 780,339 RECONCILIATION TO GAAP BASIS Capital Outlay--Programs 44,045 Depreciation (344,251) Total Reconciling Items (300,206) Change in net position (801,583) Net Position--January 1 3,475,746 Net Position--December 31 $ 2,674,163 City of Fort Collins Comprehensive Annual Financial Report 145 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. 146 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, 2013 Actual Budget Variance ADDITIONS Contributions $ 2,089,644 $ 2,010,000 $ 79,644 Earnings on investments 218,140 102,000 116,140 Change in the fair value of investments 6,983,332 - 6,983,332 Total Additions 9,291,116 2,112,000 7,179,116 DEDUCTIONS Benefit payments 4,044,328 4,200,000 155,672 Administration 21,016 32,683 11,667 Total Deductions 4,065,344 4,232,683 167,339 Net Increase in Plan Net Position 5,225,772 $ (2,120,683) $ 7,346,455 Net Position Held in Trust for Pension Benefits--January 1 39,489,065 Net Position Held in Trust for Pension Benefits--December 31 $ 44,714,837 City of Fort Collins Comprehensive Annual Financial Report 147 AGENCY FUNDS COMBINING STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2013 Poudre River Poudre Public Total Fire Library Agency Authority District Funds ASSETS Current Assets Cash and cash equivalents $ 1,269,560 $ 614,193 $ 1,883,753 Receivables Interest 28,491 14,943 43,434 Investments, at fair value Certificates of deposit 302,892 147,083 449,975 U S Government securities 8,482,357 4,126,616 12,608,973 Corporate bonds 1,591,543 773,617 2,365,160 Total Investments, at fair value 10,376,792 5,047,316 15,424,108 Total Assets 11,674,843 5,676,452 17,351,295 LIABILITIES Current Liabilities Amounts held for other governments 11,674,843 5,676,452 17,351,295 Total Liabilities $ 11,674,843 $ 5,676,452 $ 17,351,295 148 City of Fort Collins Comprehensive Annual Financial Report AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2013 POUDRE FIRE AUTHORITY Balance-- Balance-- Dec. 31, 2012 Additions Deletions Dec. 31, 2013 ASSETS Cash and cash equivalents $ 1,137,858 $ 131,702 $ - $ 1,269,560 Receivables - interest 23,840 4,651 - 28,491 Investments, at fair value Certificates of deposit 594,439 - 291,547 302,892 U S Government securities 7,672,354 878,469 68,466 8,482,357 Corporate bonds 1,084,892 517,836 11,185 1,591,543 Total Investments, at fair value 9,351,685 1,396,305 371,198 10,376,792 Total Assets 10,513,383 1,532,658 371,198 11,674,843 LIABILITIES Amounts held for other governments $ 10,513,383 $ 1,532,658 $ 371,198 $ 11,674,843 POUDRE RIVER PUBLIC LIBRARY DISTRICT Balance-- Balance-- Dec. 31, 2012 Additions Deletions Dec. 31, 2013 ASSETS Cash and cash equivalents $ 551,827 $ 62,366 $ - $ 614,193 Receivables - interest 12,690 2,253 - 14,943 Investments, at fair value Certificates of deposit 289,161 - 142,078 147,083 U S Government securities 3,747,480 420,083 40,947 4,126,616 Corporate bonds 529,975 250,539 6,897 773,617 Total Investments, at fair value 4,566,616 670,622 189,922 5,047,316 Total Assets 5,131,133 735,241 189,922 5,676,452 LIABILITIES Amounts held for other governments $ 5,131,133 $ 735,241 $ 189,922 $ 5,676,452 TOTAL - ALL FUNDS Balance-- Balance-- Dec. 31, 2012 Additions Deletions Dec. 31, 2013 ASSETS Cash and cash equivalents $ 1,689,685 $ 194,068 $ - $ 1,883,753 Receivables - interest 36,530 6,904 - 43,434 Investments, at fair value Certificates of deposit 883,600 - 433,625 449,975 U S Government securities 11,419,834 1,298,552 109,413 12,608,973 Corporate bonds 1,614,867 768,375 18,082 2,365,160 Total Investments, at fair value 13,918,301 2,066,927 561,120 15,424,108 Total Assets 15,644,516 2,267,899 561,120 17,351,295 LIABILITIES Amounts held for other governments $ 15,644,516 $ 2,267,899 $ 561,120 $ 17,351,295 City of Fort Collins Comprehensive Annual Financial Report 149 COMPONENT UNIT FUNDS RECONCILIATIONS COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES DOWNTOWN DEVELOPMENT AUTHORITY (DDA) 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. 150 City of Fort Collins Comprehensive Annual Financial Report COMPONENT UNIT RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER 31, 2013 Statement Total Adjustments of Net Position ASSETS Cash and cash equivalents $ 509,447 $ - $ 509,447 Investments 3,330,470 - 3,330,470 Receivables Property taxes 3,483,027 - 3,483,027 Interest 15,683 - 15,683 Prepaid 710 - 710 Due from other governments 3,764 - 3,764 Inventory of real property held for resale 135,464 - 135,464 Restricted cash and cash equivalents 46,377 - 46,377 Restricted investments 2,491,126 - 2,491,126 Capital assets (non-depreciable) - 2,528,747 1 2,528,747 Capital assets (net of accumulated depreciation) - 2,761,684 1 2,761,684 Total Assets 10,016,068 5,290,431 15,306,499 LIABILITIES Accounts payable 6,254 - 6,254 Interest payable - 49,925 2 49,925 Wages payable 11,404 - 11,404 Unearned revenue 23,203 - 23,203 Non-Current liabilities Due within one year - 1,380,414 2 1,380,414 Due after one year - 15,190,000 2 15,190,000 Total Liabilities 40,861 16,620,339 16,661,200 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 3,483,027 - 3,483,027 Total Deferred inflows of resources 3,483,027 - 3,483,027 FUND BALANCES/NET POSITION Fund balances Nonspendable 136,174 Restricted 2,541,325 Assigned 3,814,681 Total Fund Balances 6,492,180 (11,329,908) (4,837,728) Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 10,016,068 Net Position: Net investment in capital assets 5,290,431 Restricted for debt service 2,541,325 Unrestricted (deficit) 3 (12,669,484) Total Net Position (Deficit) of Component Unit (page 29) $ (4,837,728) 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 151 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, 2013 Statement Total Adjustments of Activities Expenditures/Expenses (including transfers): Expenditures/expenses $ 11,155,686 $ (1,198,058) 1 $ 9,957,628 11,155,686 (1,198,058) 9,957,628 Program Revenues Charges for services 34,877 - 34,877 Operating grants and contributions 47,412 - 47,412 Net Program Revenues 82,289 - 82,289 Net Program Expense 11,073,397 (1,198,058) 9,875,339 General Revenues Property taxes 3,318,234 - 3,318,234 Investment earnings 14,521 - 14,521 Miscellaneous 6,050,878 (6,050,000) 2 878 Total General Revenues 9,383,633 (6,050,000) 3,333,633 Change in Net Position (pages 30-31) (1,689,764) (4,851,942) (6,541,706) Fund Balance (Deficit)/Net Position Beginning of the year 8,181,944 (6,477,966) 1,703,978 End of the year $ 6,492,180 $ (11,329,908) $ (4,837,728) 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 (2,125) Net increase in compensated absences 1,877 Debt payment (1,290,000) Current year depreciation 92,190 $ (1,198,058) 2 Proceeds from issuance of long term debt are not reported as revenues $ (6,050,000) 152 City of Fort Collins Comprehensive Annual Financial Report DOWNTOWN DEVELOPMENT AUTHORITY BALANCE SHEET DECEMBER 31, 2013 General Debt Service Total ASSETS Cash and cash equivalents $ 509,447 $ - $ 509,447 Investments 3,330,470 - 3,330,470 Receivables Property taxes 639,894 2,843,133 3,483,027 Interest 11,861 3,822 15,683 Prepaid item 710 - 710 Due from other governments 3,764 - 3,764 Inventory of real property held for resale 135,464 - 135,464 Restricted - cash and cash equivalents - 46,377 46,377 Restricted - investments - 2,491,126 2,491,126 Total Assets 4,631,610 5,384,458 10,016,068 LIABILITIES Accounts payable, accruals, and other 6,254 - 6,254 Wages payable 11,404 - 11,404 Unearned revenue 23,203 - 23,203 Total Liabilities 40,861 - 40,861 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 639,894 2,843,133 3,483,027 Total Deferred Inflows of Resources 639,894 2,843,133 3,483,027 Total Liabilities and Deferred inflows of resources 680,755 2,843,133 3,523,888 FUND BALANCES Nonspendable 136,174 - 136,174 Restricted - 2,541,325 2,541,325 Assigned 3,814,681 - 3,814,681 Total Fund Balances 3,950,855 2,541,325 6,492,180 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 4,631,610 $ 5,384,458 $ 10,016,068 City of Fort Collins Comprehensive Annual Financial Report 153 DOWNTOWN DEVELOPMENT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2013 General Debt Service Total REVENUES Taxes $ 636,475 $ 2,681,759 $ 3,318,234 Licenses and permits 1,800 - 1,800 Intergovernmental 47,412 - 47,412 Fees and charges for services 33,077 - 33,077 Earnings on investments 2,251 12,270 14,521 Miscellaneous revenue 878 - 878 Total Revenues 721,893 2,694,029 3,415,922 EXPENDITURES Current operating Administrative 8,957,401 784 8,958,185 Debt service Principal - 1,519,655 1,519,655 Interest - 677,846 677,846 Total Expenditures 8,957,401 2,198,285 11,155,686 Excess (Deficiency) of Revenues Over (Under) Expenditures (8,235,508) 495,744 (7,739,764) OTHER FINANCING SOURCES Proceeds from issuance of debt 6,050,000 - 6,050,000 Total Other Financing Sources 6,050,000 - 6,050,000 Net Change in Fund Balances (2,185,508) 495,744 (1,689,764) Fund Balances-January 1 6,136,363 2,045,581 8,181,944 Fund Balances-December 31 $ 3,950,855 $ 2,541,325 $ 6,492,180 154 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 (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Taxes $ 636,475 $ 616,837 $ 19,638 Licenses and permits 1,800 1,800 - Intergovernmental 47,412 36,260 11,152 Fees and charges for services 33,077 33,077 - Earnings on investments 2,251 2,283 (32) Miscellaneous revenue 878 - 878 Total Revenues 721,893 690,257 31,636 EXPENDITURES Administration 8,957,401 13,600,618 4,643,217 Total Expenditures 8,957,401 13,600,618 4,643,217 Excess (Deficiency) of Revenues Over (Under) Expenditures (8,235,508) (12,910,361) 4,674,853 OTHER FINANCING SOURCES Proceeds from issuance of debt 6,918,077 7,050,000 (131,923) Total Other Financing Sources 6,918,077 7,050,000 (131,923) Net Change in Fund Balance (1,317,431) $ (5,860,361) $ 4,542,930 RECONCILIATION TO GAAP BASIS Proceeds from short-term debt (868,077) Net Change in Fund Balance (2,185,508) Fund Balances--January 1 6,136,363 Fund Balances--December 31 $ 3,950,855 City of Fort Collins Comprehensive Annual Financial Report 155 DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2013 Actual Budget Variance REVENUES Taxes $ 2,681,759 $ 2,492,292 $ 189,467 Earnings on investments 12,270 30,603 (18,333) Total Revenues 2,694,029 2,522,895 171,134 EXPENDITURES Internal Administration Services 784 784 - Principal 2,387,732 2,519,655 131,923 Interest 677,846 677,846 - Total Expenditures 3,066,362 3,198,285 131,923 Excess (Deficiency) of Revenues Over (Under) Expenditures (372,333) (675,390) 303,057 RECONCILIATION TO GAAP BASIS Payment of principal on short-term debt 868,077 Net Change in Fund Balance 495,744 Fund Balances--January 1 2,045,581 Fund Balances--December 31 $ 2,541,325 156 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK. City of Fort Collins Comprehensive Annual Financial Report 157 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 ........................................................ 158 Changes in Net Position .................................................... Exh. A-2 ........................................................ 159 Fund Balances, Governmental Funds ............................... Exh. A-3 ........................................................ 160 Changes in Fund Balances, Governmental Funds ............ Exh. A-4 ........................................................ 161 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 ........................................................ 162 Direct and Overlapping Sales Tax Rates .......................... Exh. A-6 ........................................................ 163 Sales Tax Revenue Taxpayers by Industry ....................... Exh. A-7 ........................................................ 164 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 ........................................................ 165 Ratios of General Bonded Debt Outstanding ................... Exh. A-9 ........................................................ 166 Direct & Overlapping Governmental Act. Debt ............... Exh. A-10 ...................................................... 167 Legal Debt Margin Information ........................................ Exh. A-11 ...................................................... 168 Pledged Revenue Coverage .............................................. Exh. A-12 ...................................................... 169 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 ...................................................... 171 Principal Employers .......................................................... Exh. A-14 ...................................................... 172 Full-time Equivalent City Emp. By Function/Program .... Exh. A-15 ...................................................... 173 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 ...................................................... 174 Capital Asset Statistics by Function/Program .................. Exh. A-17 ...................................................... 175 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. 158 City of Fort Collins Comprehensive Annual Financial Report Net Position by Component (in thousands) Exhibit A-1 Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Restated Restated 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Governmental activities Net investment in capital assets $ 392,475 $ 428,474 $ 481,713 $ 526,367 $ 551,853 $ 573,887 $ 597,270 $ 628,758 $ 662,461 $ 694,119 Restricted 10,005 9,826 8,957 (12,037) 5,229 8,960 37,138 43,327 52,466 55,649 Unrestricted 146,213 188,871 193,016 184,842 161,680 146,408 113,086 107,784 119,944 145,207 Total governmental activities net position 548,693 627,170 683,685 699,172 718,762 729,256 747,494 779,869 834,870 894,974 Business-type activities Net investment in capital assets 340,554 358,079 376,929 398,949 429,392 453,420 466,364 490,511 508,284 531,113 Restricted 4,546 1,118 1,091 1,130 1,642 1,671 1,030 1,025 995 1,032 Unrestricted 123,724 141,010 161,847 175,273 168,966 157,998 163,527 160,226 172,528 178,571 Total business-type activities net position 468,824 500,207 539,867 575,353 600,000 613,089 630,922 651,763 681,808 710,716 Primary government Net investment in capital assets 733,029 786,553 858,642 925,317 981,245 1,027,307 1,063,634 1,119,270 1,170,745 1,225,232 Restricted 14,551 10,944 10,047 (10,907) 6,871 10,631 38,168 44,352 53,461 56,680 Unrestricted 269,938 329,880 354,863 360,115 330,646 304,406 276,613 268,010 292,472 323,778 Total primary government net position $ 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 $ 1,605,690 Totals may not add due to rounding City of Fort Collins Comprehensive Annual Financial Report 159 Changes in Net Position (in thousands) Exhibit A-2 Last Ten Fiscal Years (accrual basis of accounting) Expenses 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Governmental activities General government $ 13,358 $ 19,382 $ 27,085 $ 26,553 $ 33,535 $ 32,868 $ 29,752 $ 33,674 $ 34,645 $ 40,118 Public safety 35,766 38,703 43,299 44,412 46,521 50,056 48,854 51,313 55,633 56,660 Culture, parks, recreation & natural areas 31,412 34,029 32,004 34,790 35,490 38,515 27,342 29,755 32,448 40,910 Planning and development 11,730 5,752 5,525 7,593 6,585 9,706 14,331 11,053 9,502 13,547 Transportation 43,125 41,074 44,644 42,839 44,659 36,471 34,698 38,540 42,249 43,710 Library 3,645 3,790 3,729 3,900 - - - - - - Interest on long-term debt 2,092 3,172 3,100 3,113 3,063 2,632 2,682 2,523 2,148 1,406 Total governmental activities expenses 141,128 145,902 159,386 163,199 169,852 170,247 157,659 166,857 176,625 196,352 Business-type activities Light & Power 69,014 73,898 73,793 80,479 81,620 83,888 91,693 97,057 101,513 116,639 Water 19,644 19,787 19,790 23,272 21,205 20,667 19,671 19,941 22,169 23,312 Wastewater 14,105 13,866 13,187 14,240 13,370 14,668 14,129 14,163 15,872 17,808 Storm drainage 8,237 8,187 7,493 9,132 9,021 9,426 8,307 8,407 8,119 9,428 Golf 2,297 2,529 2,469 2,697 2,507 2,387 2,454 2,547 2,661 2,758 Total business-type activities expenses 113,297 118,267 116,732 129,820 127,723 131,037 136,253 142,115 150,333 169,946 Total primary government expenses 254,425 264,169 276,118 293,019 297,575 301,284 293,911 308,973 326,958 366,298 Program revenues Governmental activities General government 4,299 4,297 4,706 4,890 12,962 8,863 6,782 7,479 6,458 6,944 Public safety 2,768 2,371 2,436 3,719 1,823 1,930 1,862 1,724 1,548 1,688 Culture, parks, recreation & natural areas 6,223 6,952 7,257 11,868 8,065 7,388 7,004 7,491 7,680 8,486 Planning and development 3,588 3,063 2,828 2,617 1,649 994 1,295 1,622 2,579 3,540 Transportation 9,216 8,805 9,296 9,293 12,003 8,577 8,101 6,926 11,147 12,108 Operating grants & contributions 10,454 23,640 10,684 10,988 6,917 7,998 8,240 13,712 9,284 10,075 Capital grants & contributions 28,275 46,702 31,530 30,932 7,775 25,717 16,014 14,784 31,678 49,585 Total governmental activities program revenues 64,823 95,829 68,736 74,306 51,194 61,467 49,298 53,737 70,374 92,426 Business-type activities Light & Power 74,571 80,049 81,482 83,326 83,521 84,253 94,235 100,814 109,776 115,879 Water 22,798 24,544 26,366 25,243 24,499 21,978 24,463 24,308 28,553 26,210 Wastewater 13,415 13,908 14,235 15,114 16,272 17,803 19,275 19,149 20,882 20,430 Storm drainage 13,234 13,505 13,074 13,197 13,576 13,631 13,869 13,946 14,082 14,396 Golf 2,215 2,415 2,540 2,579 2,644 2,608 2,676 2,672 3,096 2,921 Operating grants & contributions 52 57 13 20 24 112 220 131 6 30 Capital grants & contributions 12,984 16,591 16,151 16,651 12,233 8,169 9,019 11,661 15,979 24,099 Total business-type activities program revenues 139,270 151,069 153,860 156,129 152,768 148,553 163,757 172,680 192,374 203,963 Total primary government program revenues 204,093 246,898 222,596 230,436 203,963 210,020 213,055 226,417 262,748 296,389 Net (expenses) revenue Governmental activities (76,304) (50,073) (90,649) (88,892) (118,658) (108,780) (108,360) (113,120) (106,251) (103,925) Business-type activities 25,973 32,802 37,128 26,309 25,046 17,517 27,504 30,565 42,042 34,017 Total primary government net expenses (50,332) (17,271) (53,522) (62,583) (93,612) (91,263) (80,857) (82,556) (64,210) (69,908) General revenues and other changes in net position Govermental activities Taxes: Sales & use taxes 72,057 72,735 75,631 78,445 75,865 70,501 74,719 97,589 109,732 111,846 Property taxes 14,444 14,955 15,898 16,298 16,683 17,038 17,833 17,742 18,188 18,485 Occupational privilege taxes 2,253 2,228 2,424 2,359 2,494 2,413 2,327 2,433 2,560 2,653 Lodging tax 601 668 842 838 833 736 808 909 1,012 1,103 Intergovernmental not restricted to programs 527 494 486 541 10,420 9,277 9,919 10,274 10,681 20,032 Investment earnings 2,955 8,941 17,231 14,546 9,043 3,655 2,367 2,601 1,998 537 Miscellaneous 278 392 3,540 3,261 14,400 1,394 787 1,019 1,246 2,991 Transfers 5,927 6,405 6,670 6,900 11,820 10,947 13,636 13,486 15,837 6,383 Total governmental activities 99,042 106,818 122,722 123,188 141,560 115,962 122,395 146,054 161,253 164,029 Business-type activities Intergovernmental not restricted to programs - - - 10 - - - - - - 160 City of Fort Collins Comprehensive Annual Financial Report Fund Balances, Governmental Funds (in thousands) Exhibit A-3 Last Ten Fiscal Years (modified accrual basis of accounting) Restated 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General Fund Non Spendable $ 1,781 $ 1,781 $ 3,026 $ 3,026 $ 3,026 $ 16,616 $ 9,546 $ 8,519 $ 8,519 $ 7,897 Restricted 6,085 6,433 5,386 5,278 4,956 4,287 6,400 7,389 9,751 12,161 Committed 420 460 813 1,025 569 700 720 604 589 646 Assigned 21,146 24,418 21,806 16,444 13,008 5,015 4,929 7,348 12,439 10,403 Unassigned 4,723 4,304 11,973 22,485 23,897 10,977 19,330 16,307 23,956 29,012 Total general fund 34,155 37,397 43,005 48,258 45,456 37,594 40,924 40,167 55,253 60,120 All Other Governmental Funds Non Spendable - - - - - 1 6 7 5,311 5,313 Restricted 411 428 1,183 1,199 1,245 4,674 31,816 35,938 42,715 43,718 Committed 21,823 25,495 15,293 13,440 14,652 14,352 27,556 21,540 30,543 37,142 Assigned 119,428 131,285 114,448 95,644 89,859 87,415 30,269 30,978 23,447 31,444 Unassigned - - - - - (9,930) (4,703) (6,842) (14,592) (7,872) Total other governmental funds $ 141,661 $ 157,207 $ 130,924 $ 110,283 $ 105,755 $ 96,512 $ 84,944 $ 81,622 $ 87,424 $ 109,745 Totals may not add due to rounding City of Fort Collins Comprehensive Annual Financial Report 161 Changes in Fund Balances, Govermental Funds (in thousands) Exhibit A-4 Last Ten Fiscal Years (modified accrual basis of accounting) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenues Taxes $ 88,866 $ 90,071 $ 93,994 $ 97,278 $ 95,875 $ 90,689 $ 95,687 $ 118,673 $ 131,491 $ 134,086 Licences & permits 1,948 1,887 1,656 1,657 1,493 1,013 1,236 1,554 2,184 3,040 Intergovernmental 21,302 15,985 22,241 18,057 26,998 29,802 37,520 34,738 53,192 68,696 Fees and charges for services 33,975 31,382 31,681 39,947 30,013 22,918 22,709 22,765 30,742 33,323 Fines & forfeitures 2,287 1,929 2,266 2,825 2,749 2,779 2,737 2,730 2,783 2,803 Earnings on investments 2,422 5,381 8,515 8,798 5,861 3,082 2,064 2,255 1,754 585 Securities lending income 275 3,077 7,807 3,915 1,809 103 6 - - - Miscellaneous revenue 14,175 30,199 15,201 12,646 4,408 2,472 2,684 8,835 4,224 6,275 Total Revenues 165,251 179,911 183,362 185,121 169,205 152,858 164,643 191,549 226,370 248,809 Expenditures Police services 27,240 24,748 26,566 28,463 28,424 29,269 30,490 31,231 34,512 34,805 Financial services 2,849 2,641 2,553 2,877 3,013 3,044 2,909 2,874 3,187 3,616 Community and operation 48,233 28,611 32,441 33,674 32,924 32,894 29,375 32,298 36,043 43,973 Planning, development and transporation 37,501 36,313 36,419 36,103 42,977 37,091 34,475 41,862 45,397 45,830 Executive, legislative, and judicial 4,771 4,907 4,323 4,613 4,945 4,306 4,675 4,390 4,639 5,370 Employee and communications 1,832 1,849 1,618 1,536 2,036 2,774 1,949 2,590 2,449 2,766 Sustainability services 3,670 4,306 3,788 5,215 4,579 8,735 12,246 9,643 7,096 12,332 Other 1,790 1,128 1,084 1,478 1,995 1,177 1,717 1,318 1,682 1,753 Library 3,645 3,740 3,729 3,997 346 - - - - - Securities lending Interest 255 3,056 7,695 3,854 1,563 53 4 - - - Agent fees 20 21 45 37 57 28 1 - - - Intergovernmental Fire protection 12,625 14,515 15,161 15,505 16,383 17,224 17,458 18,994 19,283 20,065 Capital outlay 18,922 27,363 61,964 54,065 27,379 23,944 31,851 40,914 38,356 55,057 Debt service Principal 3,090 3,777 4,243 2,988 4,626 4,731 3,805 4,174 6,968 4,202 Interest and debt service costs 1,274 4,262 3,267 3,128 2,955 2,654 2,693 2,524 2,499 1,517 Total expenditures 167,716 161,237 204,897 197,534 174,201 167,923 173,650 192,811 202,111 231,287 Excess (deficiency) of revenues over (under) expenditures (2,465) 18,674 (21,535) (12,413) (4,996) (15,066) (9,007) (1,262) 24,259 17,522 Other Financing Sources (Uses) Proceeds from issuance of long term debt 51,402 162 608 763 1,198 - - 976 35,092 12,909 Transfers in 103,815 104,098 114,140 112,846 114,237 115,086 35,457 39,128 41,781 33,445 Transfers out (103,927) (104,147) (113,888) (116,583) (117,769) (117,124) (39,156) (42,958) (46,030) (37,705) Sale of capital assets - - - - - - 265 37 181 1,018 Payments to escrow agent - - - - - (2) - - (34,395) - Total other financing sources (uses) 51,290 113 860 (2,975) (2,334) (2,040) (3,435) (2,817) (3,371) 9,667 Net change in fund balances $ 48,825 $ 18,788 $ (20,675) $ (15,388) $ (7,330) $ (17,106) $ (12,441) $ (4,079) $ 20,888 $ 27,188 Debt service as a percentage of noncapital expenditures 3.17% 6.67% 5.13% 4.35% 5.42% 5.11% 4.54% 4.38% 5.78% 3.29% Totals may not add due to rounding 162 City of Fort Collins Comprehensive Annual Financial Report Taxable Sales by Category Exhibit A-5 Last Ten Fiscal Years in millions of dollars 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sales Tax Category Grocery, Convenience, Liquor $ 283.3 $ 299.6 $ 320.1 $ 347.4 $ 359.8 $ 359.7 $ 363.8 $ 394.1 $ 429.0 $ 458.9 Restaurants, Caterers and Bars 238.3 248.7 257.0 274.8 285.9 285.4 295.6 315.4 337.9 353.1 General Merchandise 335.5 339.7 334.9 336.2 318.3 306.7 299.4 303.0 303.5 313.1 Vehicle Sales, Parts and Repairs 165.3 157.7 157.8 175.8 162.9 149.3 160.0 164.5 180.6 193.6 Building Materials, Garden Equipment & Supplies 121.6 128.3 129.2 132.4 138.4 130.2 142.9 154.8 165.9 186.1 Sporting, Hobby, Book, Music 114.3 116.1 116.9 121.7 126.0 126.1 129.2 134.5 134.9 137.3 Broadcasting and Telecommunications 119.8 103.2 99.5 116.5 113.7 113.0 119.0 116.7 117.2 108.0 Electronics and Appliances 84.1 94.3 104.8 116.8 117.7 107.8 111.9 118.2 122.1 126.0 Miscellaneous Retailers 98.0 99.1 102.5 113.6 110.0 103.9 110.4 116.4 121.7 131.0 Utilities 83.3 93.3 99.6 96.0 103.3 97.5 100.8 107.0 111.2 117.5 Clothing and Accessories 94.7 95.7 87.8 84.9 79.4 74.8 76.9 83.0 88.7 82.9 Pharmacy, Salon and Laundry 38.6 39.8 40.0 44.0 45.4 45.0 54.5 61.1 54.6 56.8 Other 45.8 45.5 47.6 47.4 47.2 43.0 44.3 45.9 51.0 53.7 Rental and Leasing Services 52.4 52.0 49.1 52.1 52.1 46.4 43.1 42.7 46.3 44.5 Furniture and Home Furnishings 48.4 50.9 51.7 56.7 52.3 38.9 41.0 43.7 50.0 56.5 Wholesale Trade 42.7 41.6 138.8 57.9 49.2 41.9 35.6 37.5 42.4 43.6 Lodging 25.0 27.2 31.7 34.3 33.9 29.1 32.2 35.2 40.2 42.1 Manufacturing 30.5 39.0 33.2 37.9 37.3 26.7 30.5 37.1 44.5 44.2 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 $2,441.7 $2,548.9 City direct sales tax rate* 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.85% 3.85% 3.85% * Food sales city direct sales tax rate is 2.25% Totals may not add due to rounding City of Fort Collins Comprehensive Annual Financial Report 163 Direct and Overlapping Sales Tax Rates Exhibit A-6 Last Ten Fiscal Years Fiscal Year City Direct Rate* Larimer County State of Colorado 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% 2013 3.85% 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 164 City of Fort Collins Comprehensive Annual Financial Report Sales Tax Revenue Taxpayers by Industry Exhibit A-7 Current Year and 2004 tax liability in thousands Fiscal Year 2013 Fiscal Year 2004 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 230 1.99% $ 13,049 14.16% 161 2.12% $ 7,220 12.44% Restaurants, Caterers and Bars 524 4.53% 13,581 14.74% 421 5.56% 6,941 11.96% General Merchandise 25 0.22% 10,820 11.74% 17 0.22% 9,423 16.23% Vehicle Sales, Parts and Repairs 422 3.65% 7,470 8.11% 337 4.45% 4,892 8.43% Building Materials, Garden Equipment & 2,615 22.61% 7,160 7.77% 1,111 14.66% 3,608 6.22% Sporting, Hobby, Book, Music 449 3.88% 5,285 5.74% 304 4.01% 3,382 5.83% Broadcasting & Telecommunications 279 2.41% 4,158 4.51% 243 3.21% 3,565 6.14% Electronics and Appliances 371 3.21% 4,850 5.26% 186 2.45% 2,502 4.31% Miscellaneous Retailers 1,445 12.50% 4,993 5.42% 945 12.47% 2,880 4.96% Utilities 12 0.10% 4,526 4.91% 9 0.12% 2,489 4.29% Clothing and Accessories 291 2.52% 3,228 3.50% 215 2.84% 2,790 4.81% Pharmacy, Salon and Laundry 765 6.62% 2,115 2.30% 427 5.64% 1,122 1.93% Other 2,860 24.73% 2,097 2.28% 2,005 26.46% 1,351 2.33% Rental and Leasing Services 388 3.36% 1,712 1.86% 372 4.91% 1,586 2.73% Furniture and Home Furnishings 182 1.57% 2,164 2.35% 176 2.32% 1,427 2.46% Wholesale Trade 314 2.72% 1,639 1.78% 279 3.68% 1,249 2.15% Lodging 35 0.30% 1,621 1.76% 21 0.28% 740 1.28% Manufacturing 357 3.09% 1,665 1.81% 348 4.59% 885 1.52% Total 11,564 100.00% $ 92,134 100.00% 7,577 100.00% $ 58,054 100.00% 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 City of Fort Collins Comprehensive Annual Financial Report 165 Ratios of Outstanding Debt by Type Last Ten Fiscal Years Exhibit A-8 in thousands Governmental Activities Business-Type Activities General Certificates Assignment General Certificates Assignment Total Percentage Fiscal Obligation Revenue of of Lease Capital Obligation Revenue of of Lease Capital Primary of Personal Per Year Bonds Bonds Participation Payments Leases Bonds Bonds Participation Payments Leases Government Income Capita 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 2.3% 0.93 2013 - 11,085 37,905 455 5,872 - 79,597 950 1,448 271 137,583 n/a 0.91 Totals may not add due to rounding Note: Personal Income provided by the Bureau of Economic Analysis. Information is updated regularly and 2013 data was not availabe at the time this schedule was prepared. 166 City of Fort Collins Comprehensive Annual Financial Report 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 2004 13,455 0.15% 106 2005 10,455 0.11% 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% - 2013 - 0.00% - City of Fort Collins Comprehensive Annual Financial Report 167 Direct and Overlapping Governmental Activities Debt Exhibit A-10 As of December 31, 2013 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 $ 55,317 100.00% $ 55,317 Overlapping Debt Harmony Tech Park No. 1 4 - 0.00% - Harmony Tech Park No. 2 4 - 0.06% - Harmony Tech Park No. 3 4 - 0.00% - Poudre R-1 School District 4 294,842 98.60% 290,712 Poudre Health Services District 4 - 96.81% - Poudre River Public Library 4 - 99.83% - Total Overlapping Debt 294,842 290,712 Total Direct and Overlapping Debt $ 350,159 $ 346,029 Estimated actual valuation $ 17,342,255 Assessed valuation $ 2,461,821 Net direct debt $ 55,317 Estimated overlapping debt $ 290,712 Net direct and estimated overlapping debt $ 346,029 Ratio of net direct debt to estimated actual valuation 0.0032 Ratio of net direct debt to assessed valuation 0.0225 Net direct debt per capita 5 $ 0 Ratio of net direct and estimated overlapping debt to estimated actual valuation 0.0200 Ratio of net direct and estimated overlapping debt to assessed valuation 0.1406 Net direct and estimated overlapping debt per capita 5 $ 2 Estimated actual valuation per capita 5 $ 115 Assessed valuation per capita 5 $ 16 1 2 Includes outstanding debt supported by general property taxes less available debt service monies. 3 168 City of Fort Collins Comprehensive Annual Financial Report Legal Debt Margin Information Exhibit A-11 Last Ten Fiscal Years in thousands Assessed Valuation 1 $ 2,461,821 Debt limit - 10% of assessed value 246,182 Amount of debt applicable to limit: Total bonded debt (including special assessments) 96,157 Less: Assets in debt service funds available for payment of general obligation debt - Other deductions allowed by law: Downtown Development Authority tax increment bonds (16,560) Light and Power revenue bonds (11,725) Water revenue bonds (15,110) Sewer revenue bonds (29,760) Storm drainage revenue bonds (23,003) Net amount of debt applicable to debt limit - Legal debt margin $ 246,182 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Debt Limit $ 139,080 $ 149,791 $ 152,958 $ 171,317 $ 175,881 $ 182,224 $ 181,595 $ 179,223 $ 179,603 $ 246,182 Total net debt applicable to limit - - - - - - - - - - Legal debt margin $ 139,080 $ 149,791 $ 152,958 $ 171,317 $ 175,881 $ 182,224 $ 181,595 $ 179,223 $ 179,603 $ 246,182 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. City of Fort Collins Comprehensive Annual Financial Report 169 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 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 n/a 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 2013 129,264 108,976 20,287 1,490 547 2,037 9.96 Net Revenue Gross Available for Revenues Expenses Debt Service Principal Interest Total Coverage 2004 16,979 9,461 7,731 1,505 1,951 3,456 2.24 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 2013 23,811 11,942 11,870 3,265 1,343 4,608 2.58 Net Revenue Gross Available for Revenues Expenses Debt Service Principal Interest Total Coverage 2004 13,762 3,782 10,336 2,248 2,194 4,442 2.33 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 2013 15,322 6,510 8,812 3,085 954 4,039 2.18 LIGHT AND POWER REVENUE BONDS Debt Service Requirements SEWER REVENUE BONDS Debt Service Requirements STORM DRAINAGE REVENUE BONDS Debt Service Requirements 170 City of Fort Collins Comprehensive Annual Financial Report 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 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 2013 32,727 18,109 14,617 2,569 676 3,245 4.50 Totals may not add due to rounding WATER REVENUE BONDS Debt Service Requirements City of Fort Collins Comprehensive Annual Financial Report 171 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 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 12,826,581 41,311 6.4% 224.57 508 2013 151,330 n/a n/a 5.4% 230.79 670 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 2013 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, 2011-2013 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. 172 City of Fort Collins Comprehensive Annual Financial Report Principal Employers Exhibit A-14 2013 and Ten Years Ago Fiscal Year 2013 Fiscal Year 2004 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Colorado State University 7,317 1 8.1% 5,700 1 7.3% Poudre R-1 School District 4,025 2 4.5% 3,014 3 3.9% Poudre Valley Health Care Inc. 3,078 3 3.4% 2,300 5 2.9% City of Fort Collins 1,889 4 2.1% 1,400 6 1.8% Larimer County 1,566 5 1.7% 1,400 6 1.8% Hewlett Packard Company 1,312 6 1.5% - - 0.0% Center Partners 1,299 7 1.4% 860 8 1.1% Woodward Inc 1,291 8 1.4% - - 0.0% Employment Solutions Personnel Serv. 1,242 9 1.4% 4,060 2 5.2% Avago 852 10 0.9% - - 0.0% Anheiser Busch/Inbev - - 0.0% 750 10 1.0% Agilent Technologies - - 0.0% 2,600 4 3.3% Advanced Energy Industries Inc - - 0.0% 779 9 1.0% Total 23,871 26.6% 22,863 29.3% Source 2013: QCEW, Third Quarter, 2013 Source 2004: City of Fort Collins Planning Department City of Fort Collins Comprehensive Annual Financial Report 173 Full-time Equivalent City Employees by Function/ Program Exhibit A-15 Last Ten Fiscal Years Function/ Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General government Economic Development 0.8 0.2 0.7 1.5 2.9 3.8 3.5 4.4 4.2 6.2 Finance Administration 5.8 3.8 2.6 2.9 3.0 3.0 2.6 2.6 3.1 4.3 Accounting, Sales Tax, Treasury 15.7 15.8 19.3 22.1 20.8 20.6 20.2 20.7 19.9 18.3 Budget 2.0 1.9 1.5 2.0 3.7 4.0 4.0 3.5 3.8 3.7 Purchasing & Risk Management 10.7 9.8 8.8 8.7 9.3 9.8 9.4 9.0 9.3 9.6 Information Technology 46.9 46.6 43.6 45.4 50.0 51.0 51.8 50.4 55.3 60.5 Community & Public Involvement 10.1 9.8 8.1 9.2 10.0 10.2 10.1 10.2 11.0 11.0 Human Resources 16.9 16.2 16.8 16.7 19.0 19.9 19.7 19.9 20.4 21.9 Operation Services 63.6 60.2 59.0 60.7 64.9 66.8 64.2 64.3 70.2 72.3 City Clerk's Office 5.6 5.6 5.8 5.8 5.8 5.8 5.8 5.7 5.8 6.5 City Attorney's Office 9.1 8.7 8.9 9.0 9.0 9.0 10.6 11.3 11.1 13.1 City Council 7.0 7.3 7.0 7.2 6.8 6.5 7.0 6.8 7.0 6.7 City Manager's Office 9.9 9.9 8.8 10.5 9.6 10.9 9.6 10.7 12.3 13.0 Municipal Court 7.9 7.9 8.2 7.8 8.5 7.7 7.2 8.3 8.2 7.5 Public safety Investigations 62.6 63.9 63.1 63.7 66.0 66.3 65.4 64.8 63.5 55.3 Police Information Services 62.0 59.9 56.5 55.1 53.8 53.6 54.9 56.8 59.8 60.1 Patrol 95.7 98.1 99.8 100.3 105.3 107.3 111.2 120.0 132.6 150.3 Office of the Chief 19.8 18.9 18.1 18.0 18.4 18.6 18.2 17.6 17.5 17.2 Culture, parks, recreation & natural areas Environmental Services 5.6 4.8 3.5 3.7 5.7 6.3 5.8 7.4 9.8 11.4 Recreation 132.5 133.0 129.3 128.3 130.7 132.3 127.5 126.1 127.0 125.3 Community Services Admin 3.5 3.0 2.8 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Park Planning & Development 6.4 6.3 5.4 5.2 5.8 6.0 5.4 5.1 5.4 4.9 Cultural Services 32.1 31.8 31.5 33.8 37.3 39.8 33.8 35.6 40.6 44.9 Parks 91.4 89.0 89.9 89.2 101.7 105.3 101.5 110.0 115.4 121.2 Natural Areas 33.1 37.2 38.7 39.4 40.8 43.9 43.2 43.9 45.7 46.6 Planning and development Social Sustainability 4.9 4.8 5.2 5.0 5.0 5.0 5.0 4.9 4.7 4.9 PDT Administration 4.8 4.6 4.8 4.8 5.4 5.3 5.4 5.6 4.8 3.0 Comm Dev & Neighborhood Svcs 51.6 49.2 47.5 45.4 44.9 39.5 36.1 37.5 46.7 49.8 Urban Renewal Authority 0.0 0.0 0.4 0.5 1.0 1.0 1.1 1.0 1.0 2.0 Transportation PDT Administration 3.0 3.0 2.5 0.7 0.0 0.0 0.0 0.0 0.0 0.0 Transfort / Dial-a-Ride 87.6 81.1 72.1 74.2 75.6 75.0 72.9 74.2 74.3 76.9 FC Moves 2.1 1.4 1.5 2.5 4.7 4.4 4.4 4.3 4.7 5.0 Streets 52.9 50.5 49.7 48.9 48.7 45.3 47.6 53.4 53.4 52.0 Traffic 24.1 25.1 24.0 26.8 28.2 28.0 26.9 27.9 28.9 27.7 Engineering 36.2 32.6 30.5 28.7 30.8 31.2 29.6 30.7 33.3 35.0 Parking 23.1 20.9 19.3 19.0 17.7 17.8 18.8 19.2 20.6 19.5 Light & Power Light & Power Administration 40.9 40.2 38.7 39.3 39.2 38.9 38.8 39.1 40.6 39.9 Light & Power Operations 51.3 50.5 53.0 54.2 58.8 63.0 60.7 60.0 61.7 78.3 L&P System Additions 43.4 37.6 32.1 30.6 29.1 30.6 31.4 30.7 28.4 9.7 L&P Energy Services 6.8 7.0 7.7 8.4 9.8 14.0 17.2 17.8 17.5 17.4 Water Water Administration 32.2 31.5 30.1 29.6 30.3 30.1 29.6 30.2 31.7 31.5 Water Trans & Distribution 18.3 21.2 20.6 21.6 23.6 26.0 24.7 24.9 23.3 25.5 Water Meter Operations 10.5 10.5 10.7 9.7 9.6 10.0 9.8 11.1 10.9 10.6 Water Production 27.4 26.3 25.0 26.4 29.2 29.4 29.2 29.7 29.4 30.3 Water Quality 9.0 9.0 7.7 7.8 8.0 8.0 8.0 7.8 8.0 7.9 Water Resources 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.0 3.4 Wastewater WW Administration 14.8 15.0 14.5 14.7 14.7 13.9 13.5 13.6 14.1 13.9 WW Trunk and Collection 15.5 15.6 15.0 14.9 14.3 15.2 16.1 16.6 17.1 17.2 174 City of Fort Collins Comprehensive Annual Financial Report Operating Indicators by Function/Program Exhibit A-16 Last Ten Fiscal Years Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General Government Job applications processed n/a n/a 12,823 8,907 9,209 5,148 7,112 11,415 10,192 10,760 Warrants issued n/a n/a 972 918 1,010 798 1,231 1,370 1,379 1,146 Camera Radar completed cases n/a n/a 9,761 19,026 21,239 20,414 18,137 17,634 13,954 16,750 Public Safety Adult arrests 6,313 4,202 4,663 5,188 4,373 4,154 4,739 4,792 5,112 4,605 Juvenile arrests 1,306 914 963 958 809 811 849 675 610 553 Traffic violations 12,744 13,334 13,838 15,341 18,890 15,737 20,792 18,484 21,678 19,399 Number of fires per 1000 population 2.85 3.89 2.75 2.16 2.64 2.22 2.22 2.19 2.12 2.05 Total inspections per 1000 population 17.57 1.80 1.99 3.76 9.83 16.83 16.75 11.91 24.20 21.70 Average calls per week 229 230 237 246 259 266 276 299 306 317 Average response time 4:29 4:17 4:15 4:20 4:14 4:10 4:39 4:59 5:34 6:55 Culture, parks, recreation & natural areas Epic Pool & Ice attendance 494,577 405,660 424,313 323,183 373,809 353,161 480,586 385,426 364,459 465,615 City Park Pool attendance 64,413 63,376 70,851 71,608 91,444 77,276 74,821 75,755 66,651 60,138 Mulberry Pool attendance 89,358 73,909 87,351 92,322 98,640 117,033 167,810 202,148 134,358 148,641 Senior Center Pool attendance 23,754 35,931 25,338 37,888 32,980 55,765 21,179 25,775 29,236 32,599 Youth Activity Center attendance 45,921 23,686 3,578 7,729 712 1,090 24,207 31,171 46,202 41,666 North Aztlan Center attendance 156,697 167,136 187,728 135,203 105,362 145,898 177,779 194,315 183,292 164,849 Farm attendance 91,204 91,139 60,215 62,161 79,730 61,166 61,737 61,336 62,736 57,502 Museum attendance 34,057 40,107 40,607 32,000 18,142 33,904 26,852 22,752 23,315 114,292 Scheduled Park events 5,962 5,538 5,057 5,672 6,185 5,650 5,630 5,953 6,486 6,122 Planning and development Construction permits- single family units 893 674 394 385 254 153 177 258 469 630 Construction permits- Multi family units 63 44 24 24 37 4 10 31 39 40 Transportation Transfort Passengers 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 2,296,511 Revenue Miles 703,081 686,030 640,677 774,545 798,849 791,627 913,682 995,858 1,028,405 1,033,967 Revenue Hours 58,516 57,782 54,665 66,647 68,356 69,984 75,564 77,356 78,551 78,741 Dial a Ride Passengers 82,276 87,725 85,735 51,779 44,135 41,719 40,385 37,851 37,747 34,121 Revenue Miles 439,771 450,047 560,053 348,952 282,257 269,831 252,107 166,893 156,941 205,512 Revenue Hours 34,883 38,399 47,188 31,678 25,092 23,456 21,690 20,407 19,429 17,770 Light & Power Customers n/a n/a 62,548 62,991 63,913 64,750 65,504 66,220 67,209 68,585 Electric Use- megawatt hours 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 1,500,215 Peak demand- megawatts n/a n/a 279 296 285 264 282 292 302 295 Interuption Index- minutes/year n/a n/a 25.63 18.00 10.00 10.99 17.27 21.73 16.84 9.58 Water Customers n/a n/a 33,312 32,780 33,082 32,910 32,983 33,074 33,147 33,348 Treated water delivered- acre feet n/a n/a 29,133 27,192 25,633 22,683 24,030 23,387 26,875 23,972 Peak day water use- million gallons/day n/a n/a 49.0 47.5 44.3 37.1 40.8 39.7 46.8 43.0 Water main breaks n/a n/a 100 67 59 79 139 97 108 92 Wastewater Customers n/a n/a 33,120 32,992 32,847 33,134 33,226 33,305 33,398 33,555 Average flow wastewater treated- million gallons/day n/a n/a 14.5 15.1 15.7 14.8 13.9 13.7 12.9 13.9 Recycled processed wastewater biosolids- dry tons n/a n/a 1,764 1,709 1,738 1,793 1,747 1,817 1,901 1,890 Industrial discharge permits n/a n/a 13 13 15 14 14 14 15 16 Storm Drainage Customers n/a n/a 39,938 40,272 40,554 40,911 40,813 41,395 42,020 42,589 Golf Rounds played 118,781 123,313 124,609 117,133 115,031 121,579 93,898 120,236 86,842 118,172 City of Fort Collins Comprehensive Annual Financial Report 175 Capital Asset Statistics by Function/Program Exhibit A-17 Last Ten Fiscal Years Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 198 220 224 232 225 281 284 270 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 44 45 45 46 46 46 46 46 48 49 Acreage of parks 759 761 761 861 861 861 861 861 871 878 Miles of hard surface trails 22.52 23.62 24.87 28.67 28.67 28.67 30.39 31.74 32.44 35.62 Planning and development Land Bank progam- acres* n/a n/a 51 51 51 51 51 51 51 49 Land Bank progam- yield of future affordable housing units* n/a n/a 513 513 513 446 510 510 510 490 Transportation Transit buses n/a n/a 23 27 27 29 44 34 40 34 Lane miles n/a n/a 1,756 1,793 1,796 1,796 1,796 1,796 1,861 1,901 Light & Power Underground distribution lines- miles n/a n/a 766.0 788.0 801.4 820.0 837.5 851.8 864.0 874.8 Overhead distribution lines- miles n/a n/a 11.0 9.0 6.7 7.0 8.4 10.6 10.7 10.7 Distribution substations n/a n/a 5 5 5 5 5 6 7 7 Distribution transformers n/a n/a 7,525 7,982 8,060 8,082 8,226 8,357 8,453 8,655 Water Water mains and distribution lines- miles of pipe n/a n/a 532 539 540 541 527 528 529 539 Hydrants n/a n/a 3,411 3,464 3,487 3,494 3,510 3,524 3,539 3,617 Plant capacity- millions gallons/day n/a n/a 87 87 87 87 87 87 87 87 Raw water storage- acre feet n/a n/a 6,500 7,161 7,161 7,161 7,161 7,161 7,161 7,161 Treated water storage- million gallons n/a n/a 36.3 36.0 35.5 35.5 35.5 35.5 35.5 35.5 Water rights owned- avg yield in acre feet/year n/a n/a 73,000 73,700 74,120 74,140 74,160 74,420 74,670 74,945 Wastewater Trunk and collection- miles of pipe n/a n/a 434 435 437 436 437 436 437 437 Plants- treatment capacity n/a n/a 29 29 29 29 29 29 29 29 Biosolids facility- acres n/a n/a 26,200 26,000 26,350 26,582 26,680 26,680 26,680 26,680 Storm Drainage City owned detention basins n/a n/a 90 90 90 90 90 90 90 90 City owned detention basins- acres n/a n/a 320 320 320 320 320 320 320 320 Regional drainage channels n/a n/a 63 67 69 69 69 69 58 58 Storm sewer manholes n/a n/a 2,676 2,765 2,968 3,265 2,568 3,524 3,640 3,909 Storm sewer pipeline- miles n/a n/a 175.0 190.2 197.2 219.6 220.0 224.2 232.0 237.0 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. 176 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK. City of Fort Collins Comprehensive Annual Financial Report 177 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 2004 to 2013: 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 2013, amounts paid by the university comprised 4.5% of wastewater system revenues ($915,326), with a total usage representing 7.1% of total system usage. Additionally, amounts paid by a large commercial customer comprised 3.5% of wastewater system revenues ($716,697), with a total usage representing 5.7% of total system usage. Rate Structure User Charges. The following tables show the City’s monthly wastewater user charges in effect on January 1, 2013. 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 or 2014. 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 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 2013 33,555 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 1 178 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) 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. Metering of large commercial customers commenced in 2013. It is difficult to predict, but projections for this potential loss are $127,000 per year until 2015 when it is expected that all metering will have 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, and there was no increase in 2013. 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 179 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: 2009 2010 2011 2012 2013 User rates $ 17,702 $ 19,137 $ 19,020 $ 20,809 $ 20,338 Plant investment fees 3,416 2,442 639 2,120 3,172 Other fees & charges 108 176 158 123 129 Investment earnings 1,611 413 557 468 172 Total Wastewater Revenue $ 22,837 $ 22,167 $ 20,375 $ 23,520 $ 23,811 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, 2013. The following sets forth the operating history of the Wastewater Fund for the years ended December 31, 2009 through 2013: Restated 2009 2010 2011 2012 2013 Operating Revenues Charges for services $ 17,702 $ 19,137 $ 19,020 $ 20,809 $ 20,338 Operating Expenses Administrative charge 1,487 2,200 1,781 1,642 1,724 Personal services 4,961 5,176 4,819 4,801 4,931 Contractual services 1,767 3,349 3,384 3,893 3,873 Commodities 775 859 1,092 1,110 1,245 Other 1,587 533 59 211 169 Depreciation 3,219 3,301 3,946 4,628 4,697 Total Operating Expenses 13,796 15,418 15,081 16,285 16,638 Operating Income 3,906 3,719 3,939 4,524 3,700 Nonoperating Revenues (Expenses) Other revenue 103 143 143 104 98 Earnings on investments 1,611 413 557 468 172 Gain on sale of capital assets 6 33 16 19 31 Interest expense (1,989) (313) (412) (1,328) (1,308) Other expenses (140) (147) (195) - - Total Nonoperating Revenues (Expenses) (410) 129 109 (737) (1,007) Income Before Contributions and Transfers 3,495 3,848 4,048 3,786 2,693 Capital contributed 3,416 2,442 639 2,120 3,172 Operating transfers in - 76 77 - - Operating transfers out (158) - - - (10) Income After Contributions and Transfers 3,258 2,517 716 2,120 3,162 Change in Net Position 6,754 6,365 4,764 5,906 5,855 Net Position--Jan. 1 119,746 126,500 132,865 137,397 143,302 Net Position--Dec. 31 $ 126,500 $ 132,865 $ 137,629 $ 143,302 $ 149,157 Totals may not add due to rounding 180 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 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 2013 23,811 11,942 11,870 3,265 1,343 4,608 2.58 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--2004 TO 2013 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 181 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, 2013 is $1,023,319. 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, 2013 was $242,301. 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 $29,486,102 as of December 31, 2013. This amount satisfies the 17% requirement indicated above for fiscal year 2013. In addition to the above, the bond ordinance established the following fund: 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. STORM DRAINAGE UTILITY ENTERPRISE 182 City of Fort Collins Comprehensive Annual Financial Report 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 2009 through 2013. 2009 2010 2011 2012 2013 Storm drainage utility fee (operation & maintenance component) $ 13,624 $ 13,858 $ 13,923 $ 14,051 $ 14,385 Storm drainage basin fees 168 358 434 948 842 Total Storm Drainage Fund Fee Revenues $ 13,792 $ 14,217 $ 14,357 $ 14,999 $ 15,227 Operating History of the Storm Drainage Fund Restated 2009 2010 2011 2012 2013 Operating Revenues Charges for services $ 13,624 $ 13,858 $ 13,923 $ 14,051 $ 14,385 Operating Expenses Administrative charge 2,181 2,145 1,983 1,844 1,990 Personal services 2,112 2,019 2,010 2,054 1,908 Contractual services 1,359 773 1,021 939 2,096 Commodities 108 115 197 186 185 Other 78 1 87 42 331 Depreciation 2,258 2,216 2,184 2,201 2,134 Total Operating Expenses 8,095 7,268 7,483 7,265 8,644 Operating Income 5,529 6,590 6,440 6,786 5,740 Nonoperating Revenues (Expenses) Other revenue 16 17 59 30 18 Earnings on investments 399 297 252 184 48 Intergovernmental - 53 2 490 0 Gain/loss on sale of capital assets (21) 28 (12) 26 28 Interest expense (1,501) (1,447) (1,288) (1,085) (1,012) Other expenses (44) (44) (54) (69) - Total Nonoperating Revenues (Expenses) (1,150) (1,095) (1,042) (425) (917) Income Before Contributions and Transfers 4,379 5,495 5,398 6,361 4,823 Capital contributions 168 358 434 948 842 Operating transfers In - 31 32 - 32 Operating transfers out (180) (275) (220) (220) (274) Income After Contributions and Transfers (12) 114 246 728 600 Change in Net Position 4,367 5,609 5,644 7,090 5,423 Net Position--Jan. 1 74,366 78,733 84,343 89,865 96,954 Net Position--December 31 $ 74,366 $ 84,343 $ 89,987 $ 96,954 $ 102,377 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, 2013. The following sets forth the operating history of the Storm Drainage for the years ended December 31, 2009 through 2013. City of Fort Collins Comprehensive Annual Financial Report 183 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 2013 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 2014. Storm drainage utility fees are billed through the City’s consolidated monthly billing system, permitting the City to include storm drainage utility fees on a customer’s regular utility bill. If a customer fails to pay any utility fees, the City has the authority to terminate utility service to the delinquent customer and to place a lien on the property for which the fees are delinquent. Approximately 83% of storm drainage utility billing accounts and 45% of storm drainage revenues are attributable to single family residential customers. 17% of accounts and 55% 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 4.2% of total revenue and the City municipal government at 2.6%. 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 2013 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 2013 would have covered the combined average annual debt service* requirements of the bonds approximately 2.43 times and would have covered the combined maximum debt service of the bonds approximately 2.43 times. *2013-2017 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 2014. 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 1999 0% 2004 10% 2009 0% 2000 10% 2005 0% 2010 0% 2001 9% 2006 0% 2011 0% 2002 45% 2007 0% 2012 0% 2003 10% 2008 0% 2013 0% 184 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 2004-2013: 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, 2013 is set forth below: The following table sets forth the ten largest customers of the water system, which in the aggregate accounted for approximately 16.7% of total water usage during 2013: 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 and a 4% across the board rate increase was implemented in 2013 for all rate classes. Years Water (at December 31) Customers 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 2013 33,348 Classification Number of Accounts Accounts Residential 31,131 93.4% Commercial & Industrial 2,217 6.6% Total 33,348 100.0% Customer Water Usage Millions of Gallons Percent of Total Water Use Industrial 864.60 12.6% University 318.50 4.6% Industrial 209.20 3.0% Water District 154.60 2.3% Industrial 104.70 1.5% City Government 101.80 1.5% School District 90.25 1.3% Commercial 38.88 0.6% Hospital 32.91 0.5% Commercial 31.83 0.5% City of Fort Collins Comprehensive Annual Financial Report 185 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 2,500,000 186 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: 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 City of Fort Collins Comprehensive Annual Financial Report 187 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 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 2013 629 3,049 - 1,791 - 5 5,474 188 City of Fort Collins Comprehensive Annual Financial Report 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: 2009 2010 2011 2012 2013 User charges for services $ 21,752 $ 24,228 $ 24,101 $ 28,326 $ 25,954 Plant investment fees 2,116 1,721 3,612 3,449 5,474 Other fees & charges 260 309 326 334 384 Investment earnings 1,573 1,027 1,178 953 164 Total Water System Revenue $ 25,701 $ 27,285 $ 29,217 $ 33,061 $ 31,976 Operating History of the Water Fund Restated 2009 2010 2011 2012 2013 Operating Revenues Charges for services $ 21,752 $ 24,228 $ 24,101 $ 28,326 $ 25,954 Operating Expenses Administrative charge 3,840 3,897 3,395 3,244 3,209 Personal services 5,726 6,008 5,721 5,975 6,250 Contractual services 4,924 4,960 5,451 5,810 6,251 Commodities 1,555 1,609 1,546 3,188 1,725 Other 314 108 198 1,018 675 Depreciation 4,853 4,903 5,090 5,375 5,514 Total Operating Expense 21,211 21,485 21,400 24,610 23,624 Operating Income 541 2,743 2,700 3,715 2,330 Nonoperating Revenues (Expenses) Other revenue 250 285 289 291 1,076 Earnings on investments 1,573 1,027 1,178 953 164 Gain on sale of capital assets 10 24 36 42 58 Interest expense (1,061) (925) (828) (740) (581) Other expenses (189) (9) (9) - - Total Nonoperating Revenues (Expenses) 584 402 667 547 718 Income Before Contributions and Transfers 1,125 3,145 3,367 4,262 3,048 Capital contributions 2,116 1,721 3,612 3,449 5,474 Operating transfers in (out) (189) 91 87 - (197) Income After Contributions and Transfers 1,926 1,811 3,699 3,449 5,277 Change in Net Position 3,051 4,956 7,066 7,711 8,325 Net Position--Jan. 1 237,651 240,702 245,659 252,622 260,333 Net Position--Dec. 31 $ 240,702 $ 245,659 $ 252,725 $ 260,333 $ 268,658 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, 2013. The following sets forth the operating history of the Water Fund for the years ended December 31, 2009 through 2013. City of Fort Collins Comprehensive Annual Financial Report 189 WATER UTILITY ENTERPRISE WATER REVENUE BONDS SEC RULE 15c2-12 INFORMATION – DEBT STRUCTURE OF THE WATER FUND (UNAUDITED) As of December 31, 2013, 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 2,339 Water Revenue Bond, Series 1999 4,998 1,689 Water Subordinate, 2004 2,476 1,667 Water Revenue Refunding Series 2008 9,645 9,415 Water Revenue Refunding Series 2009 7,815 - Total $ 35,060 $ 15,110 Totals may not add due to rounding 190 City of Fort Collins Comprehensive Annual Financial Report 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 2013 This Information From The Records Of (example - City of _ or County of _): Prepared By: Wendy Shinazy 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) 331,525 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 24,458,900 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 4,265,920 2. General fund appropriations 4,293,439 b. Snow and ice removal 1,783,153 3. Other local imposts (from page 2) 16,978,227 c. Other 3,834,538 4. Miscellaneous local receipts (from page 2) 9,855,142 d. Total (a. through c.) 9,883,611 5. Transfers from toll facilities 4. General administration & miscellaneous 1,146,038 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 35,820,074 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 17,432 7. Total (1 through 6) 31,126,808 b. Redemption B. Private Contributions c. Total (a. + b.) 17,432 C. Receipts from State government 2. Notes: (from page 2) 4,710,698 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) 35,837,506 3. Total (1.c + 2.c) 17,432 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 35,837,506 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 0 1. Bonds (Refunding Portion) B. Notes (Total) 0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 35,837,506 35,837,506 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 City of Fort Collins Comprehensive Annual Financial Report 191 STATE: Colorado YEAR ENDING (mm/yy): December 2013 AMOUNT AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments 302,796 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes 10,514,782 c. Parking Garage Fees 1,838,137 2. Infrastructure & Impact Fees 4,146,411 d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 16,352 4. Licenses 263,780 f. Charges for Services 5,766,756 5. Specific Ownership &/or Other 2,053,254 g. Other Misc. Receipts 288,123 6. Total (1. through 5.) 16,978,227 h. Other 1,642,978 c. Total (a. + b.) 16,978,227 i. Total (a. through h.) 9,855,142 (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 4,282,724 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 427,974 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 427,974 g. Total (a. through f.) 0 4. Total (1. + 2. + 3.f) 4,710,698 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 0 0 b. Engineering Costs 0 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 331,525 331,525 (3). System Preservation 0 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4) 0 331,525 331,525 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 331,525 331,525 (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 July 21, 2014 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Ginny Sawyer Date: July 21, 2014 SUBJECT FOR DISCUSSION Renewal of the ¼-cent Community Capital Improvement Program (current program is Building on Basics) and the ¼- cent Street Maintenance Tax EXECUTIVE SUMMARY The purpose of this item is to provide an update regarding the renewal of the current community capital improvement tax (Building on Basics or BOB) and the Street Maintenance Tax and to present a narrowed potential project list for Council consideration. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council Support the proposed timeline and milestones? 2. Does Council support the proposed narrowed project list? Are there any projects Council would like to add or remove from the list? BACKGROUND/DISCUSSION Fort Collins is fortunate to have a long history of voter-approved sales tax initiatives to fund major capital projects. Since 1973, these voter approved sales tax capital programs have supported efforts to build the city we know and love today, as well as make critically needed improvements to transportation infrastructure. The current initiative, Building on Basics (BOB), was approved in 2005. BOB is a quarter cent tax which equates to 25-cents on a $100 purchase. Over the 10-year period (2005 to 2015), BOB will provide almost $58 million dollars for investment in community projects. These dollars have supported the Lincoln Center renovations, the Museum of Discovery, new bike facilities, improvements to North College and Timberline, sidewalk upgrades, and the Senior Center expansion. The BOB initiative will expire December 31, 2015. The Fort Collins community has also supported street maintenance through a ¼ cent tax since 1989. The current Street Maintenance tax will also expire December 31, 2015. This quarter-cent tax covers roughly half of the Street Maintenance Program’s costs. Other program funding includes Keep Fort Collins Great money and the General Fund. The Street Maintenance Program maximizes the community’s investment in the street network by performing ongoing maintenance before much more costly repairs or replacement is necessary, extending the usable life of a street. The Street Maintenance Program repairs over 130 lane miles of roads each year. Both of these tax renewals, Street Maintenance and BOB, will be presented to the voters in April 2015. July 21, 2014 Work to Date BOB 2.0 In summer/fall of 2013, staff began compiling a list of unfunded needs that have been identified in master plans, the Strategic Plan, or the budgeting process. (Attachment 1) Since that time the list has been refined and weighed through multiple lenses, including utilization of the Budgeting for Outcome (BFO) Teams. Each BFO team member was asked to rate each proposed project (High, Medium, Low) based on how the project met their team strategic objectives. Due to the workload on BFO teams, individual ratings were then averaged into a Team rating (meaning, the Teams’ did not discuss the projects and agree on a project rating.) Projects meeting a broad range of strategic objectives are noted in the attached table (Attachment 2). This is not to discount projects that strongly meet more specific strategic objectives but instead is meant to provide a data point. Based on BFO Team feedback, staff review, and Executive Leadership review, Council is being presented with a potential “short list” to be used for full public outreach. The recommended projects are noted in attachments 3 and 4. Other than having the recommended projects noted the projects are not prioritized. The attached Table contains the following:  Project ID  Page on which the project description can be found in the Project Description document (Attachment 4.)  Project Title  Noted projects that have Budget offers, or related Budget offers, in the current budget process.  Noted projects that met a variety of Strategic Objectives across multiple Budget Outcomes.  Estimated project cost in thousands.  Estimated annual O&M in thousands.  The Net Present Value of the capital cost and 10 years of O & M. The entire list of projects totals over $400 million. The narrowed list of projects totals between $260 and $280 million. Projections for a renewed ¼ cent tax are between $7 - 8 million/year or just under $80 million over the 10-year term of the tax. (Attachment 3) July 21, 2014 Street Maintenance The Street Maintenance tax has historically been widely supported passing by more than a 70% margin in previous elections. Due to this long-standing support and based on preliminary conversations with Boards and community groups, staff is proposing extending the term beyond 10 years to 15 or 20 years. A 15 year renewal would sunset in 2031 and 20 years in 2036 (aligning with the potential of a BOB 3.0 renewal.) Timeline Staff is proposing the following timeline and milestones: July-October 2014: Extensive public engagement to determine community priorities of projects and desired term for Street Maintenance tax. Outreach will be similar to the budget outreach and include focus groups, web presence, use of social media, Boards and Commission super meeting, and possible Community Issues Forum and District meetings. September Work Session: September 30 Goal: Provide update on public engagement; determine term of Street Maintenance Tax; determine any additional detail or data needed for October Off-Site Session. October Off-Site BOB 2.0 Session: Saturday, October 11 Goal: Narrow project list to $80-100 million range. December Work Session: Tuesday, December 9 Goal: Finalize BOB 2.0 package. July 21, 2014 January Regular Meeting: Tuesday, January 6 Goal: Adopt Resolution referring ballot language to April 2015 ballot. Staff will continue to engage the public through the January meeting. Additional Project Information Council requested that staff develop Net Present Value (NPV) estimates that include on-going operations and maintenance (O&M) costs for each project. Staff has estimated the initial capital costs of each project plus the annual O&M associated with each project. A NPV of the O&M costs has been developed based on 10 years, inflated at 2.8% (the 30 years Consumer Price Index (CPI) for the Denver/Boulder area) and then discounted back to the present value (PV) using a 4.8% discount rate (the 20 year average AA municipal bond cost.) Each project now has a “NPV of Capital and O&M” in the attached table reflecting the sum of initial capital costs plus the PV of 10 years of O&M costs. NEXT STEPS Staff will move forward as directed based on the outcome of the July 22, 2014 work session. ATTACHMENTS 1. Project Narratives 2. Project Table 3. Projections for 1/4- cent CULTURE AND RECREATION 1 | Page 7/15/2014 CR1-RECOMMENDED PROJECT TITLE: Southeast Community Creative Center ESTIMATED PROJECT COST: $10M ESTIMATED ANNUAL O&M: $200K Service Area: Community Services Department: Recreation Services Project Location: Directly west of Fossil Ridge High School or at Fossil Creek Community Park Project Description: A leading edge Community Center focused on inspiring creativity through innovation, technology, art, physical health and idea sharing. The multifaceted and unique complex will serve as a center for the community to create, share and interact while providing access to new and emerging technology, collaborative opportunities and learning experiences. The Center will include space for citizens to convene, collaborate and create. The spaces will be functional, open and equipped with features to help promote successful creativity. The Center will also provide an opportunity for community members to express their creativity through art exhibitions and project displays. The Center will feature a unique approach to idea building and creativity by encouraging a connection to nature and physical activity. The Center’s surrounding park environment (SE Park or Fossil Creek Park) will complement the core concept of the project by strongly linking discovery, nature, physical activity and creativity. The center’s location will be positioned to allow future expansion based on the community’s need and growth. A southeast community center is included in the 2008 Parks and Recreation Policy Plan and the 2008 Cultural Facilities Plan. Why is this Project Needed? Southeast Fort Collins is rapidly growing but it does not have a community center. To improve their quality of life and to create a sense of place, citizens in the southeast need an accessible, safe, convenient and interesting place to convene, socialize and collaborate. This center will support and enhance our community’s desire to create, invent and share ideas while celebrating the entrepreneurial and pioneering values that have always been a part of Fort Collins. The Center will be a destination built on our community’s vibrant history of creativity while simultaneously embracing a future of innovation. This center, in combination with the surrounding park, will define this rapidly growing area as the epicenter for community-based ideas and innovation. CR2-RECOMMENDED PROJECT TITLE: Water Sustainability Improvements for Parks and Golf ESTIMATED PROJECT COST: $4.2M ESTIMATED ANNUAL O&M: $10K Service Area: Community Services Department/Program: Parks and PP&D Project Location: Various parks and SouthRidge Golf Course Project Description: This project saves 7,000,000 gallons of water each year by replacing the 30 year old irrigation system at SouthRidge Golf Course with a new, efficient system. The project saves 2,000,000 gallons of water annually by installing a synthetic turf field on the oval at Fossil Creek Community Park. This project also saves 20,000,000 gallons of treated water each year by converting Lee Martinez, Avery and Soft Gold parks to raw water irrigation systems. These parks are currently irrigated with treated water. CULTURE AND RECREATION 2 | Page 7/15/2014 Why is this Project Needed? The 30-year-old, inefficient irrigation system for SouthRidge Golf Course has reached the end of its useful life. Replacing it with a new, efficient irrigation system will save over 7 million gallons of water annually. The current irrigation system breaks down frequently, resulting in the need for costly repairs. The City’s Golf Division has been funded by earned revenue for many years but it is a break-even operation, lacking the financial resources necessary to replace the system. Most municipal golf operations do not break-even, with 67% requiring General Fund support to meet expenses. The City’s General Fund has supported the Golf Division in the past, primarily related to paying a portion of the debt incurred to build SouthRidge. From 2008 through 2011 the Golf Division lost ~$240,000 and utilized reserves to balance its budget. 2012 was an exceptional weather year making up for much of the loss from the previous four years. Golf in northern Colorado is very competitive and the City has not been able to invest in our three courses to the extent needed. Funding the SouthRidge irrigation system with City capital dollars will allow fee revenues to improve the overall quality of our golf courses and help ensure the Golf Division remains self-funded. The turf fields in the oval at Fossil Creek Park have never been robust due to poor soil conditions and salty irrigation water. Replacing a large area of the oval with synthetic turf will save 2 million gallons of water each year and it will greatly improve the playability of the fields. The new fields will also stand up to repeated play; so many more games can be scheduled on them. A number of synthetic turf fields have been installed in Colorado and they are highly regarded by staff and users. Synthetic fields also save on maintenance expenses by eliminating mowing and irrigation needs. Converting the irrigation systems at Martinez, Avery and Soft Golf parks to raw water saves 20 million gallons in treated water use annually. Reducing treated water consumption is a very important goal in our semi-arid environment. The conversion also reduces operating costs because raw water is much less expensive than treated water. Additional Details: The cost of the new irrigation system at SouthRidge Golf Course is 2.2 million dollars. The cost of synthetic turf fields at Fossil Creek Park is 1.25 million dollars. The cost to convert Martinez, Avery and Soft Gold parks to raw water irrigation systems is $750,000. The total project cost is 4.2 million dollars. CR3-RECOMMENDED PROJECT TITLE: Renovation of the Historic Carnegie Building ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: $10K Service Area: Community Services Department: Cultural Services Project Location: 200 Mathews Street Project Description: This project renovates the historic 1904 Carnegie library building for re-use as the Community Creative Center. The creative center concept includes flexible inexpensive spaces for the community to rent to support their creative endeavors. Once fully renovated, the building will house galleries, performance space, classrooms, innovative think spaces, and a digital class room. The building is currently offering rental gallery space and serving as the home to the Arts CULTURE AND RECREATION 3 | Page 7/15/2014 Incubator of the Rockies (AIR), Beet Street’s professional development program for creativity and business. It also is intended that the Fort Collins Public Access Network (FCPAN) will create a studio in the basement level of the building, allowing more of the community to access the cable station. Cultural Services partnered with Beet Street to secure a $100,000 National Endowment for the Arts Our Town grant in 2011. The grant included funds to work with an architect (RB+B) to develop a space use program for transitioning the building to the new community creative center. In addition, in 2012, A&E Design Associates surveyed the building to estimate historic restoration needs. The two plans call for the following work to be completed:  Uncover and restore windows  Add a main staircase to connect all three floors  Add restrooms to the main level  Create tech-rich think-space/lounge  Renovate the lower level to accommodate a studio, wet and dry classrooms, and gallery  Enlarge and outfit the lower level classroom with digital technology for live-streaming  Restore interior floors and finishes, improve HVAC, upgrade electrical, consolidate storage, and fix foundation drainage issues. Why is this project needed? The historic 1904 Carnegie building is one of the oldest, continuously operating public buildings in Fort Collins, designated a local Historic Landmark District by Resolution in 1978. The building is also a contributing structure to the Laurel School Historic District, National Register 10/3/1980, 5LR.463. The building is now the home of the Community Creative Center but it requires renovation and improvements to serve its new purpose, address long-term access and infrastructure issues, and to protect and stabilize this historic treasure into the future. The Community Creative Center at the Carnegie Building is implementing the creative and innovation center concept that supports creative endeavors, provides think space, and serves as a hub for the integration and collaboration of innovation and creativity. This project will activate this prominent historic landmark building, the courtyard and the surrounding park. Additional Details: The estimated cost for this work is $2 million: $1.47 for renovations and infrastructure improvements and $430,000 for historic restoration. It is possible to apply for a grant from the State Historic Fund up to $200,000 towards historic restoration components of the overall project. The first application for these funds in 2013 was not successful. CR4-RECOMMENDED PROJECT TITLE: Completion of the Gardens at the Gardens on Spring Creek ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: $20K Service Area: Community Services Department/Program: Parks Project Location: At the Gardens on Spring Creek Project Description: This project completes the gardens at the Gardens on Spring Creek by constructing 5 acres of CULTURE AND RECREATION 4 | Page 7/15/2014 beautiful gardens including the Great Lawn, Prairie Garden, Foothills Garden and the Xeriscape Demonstration Garden. The Great Lawn is a multi-use community venue comprised of an oval turf area surrounded by themed gardens and including a stage. It will host small concerts and plays, festivals, weddings and events. The Prairie and Foothills gardens will showcase our native plants in a landscaped setting to educate visitors and inspire them to use native plants in their gardens. The Xeriscape Demonstration Garden (to be called the Undaunted Garden) will showcase hardy, drought tolerant plants that thrive in our semi-arid environment. Why is this Project Needed? The Gardens on Spring Creek, thanks to funding from Building Community Choices and countless donations, opened in May 2004 with a mission to improve the lives of people and foster environmental stewardship through horticulture. The Gardens has become a destination for residents and tourists alike, with visitation increasing from 1,634 in 2004 to over 55,000 in 2012. This increase is due to the addition of several large and popular gardens, the availability of high- quality educational programs for youth and adults, and a variety of special events for the community. The Gardens has 180 active volunteers and 25 partnerships with local non-profits and educational organizations. This project will build on The Gardens’ remarkable success and will establish the facility as a “must-see” destination for generations to come. The project will also enable The Gardens to significantly increase revenue through visitor fees and rental of the Great Lawn venue. The final phase for completing The Gardens on Spring Creek is a 3 million dollar expansion of the visitor center, including a conservatory. Gardens staff is currently fundraising for the expansion and for the completion of the gardens. Additional Funding Details: The cost of the project is 2 million dollars. CR5-RECOMMENDED PROJECT TITLE: Recreational Trail Enhancements ESTIMATED PROJECT COST: $250K-7.25M ESTIMATED ANNUAL O&M: Up to $78K for all projects. Service Area: Community Services Department/Program: Park Planning Project Location: Various locations along the trail system Project Description: This project includes a variety of new trails and trail improvements. The projects are listed individually, with estimated costs, to provide flexible funding options. 1. Widen and improve Spring Creek Trail between Edora Park and Shields street ($750,000). 2. Complete the Poudre River trail from the Environmental Learning Center to Arapahoe Bend Natural Area ($1.5 million, O&M $14,000). This ~two mile section of trail completes the City’s Poudre River Trail, connecting it to the overpass of I-25 to Timnath, Windsor and on to Greeley Colorado. Staff anticipates acquiring the land for the trail in the near future. 3. Fossil Creek Trail from Ziegler Road to the Power Trail ($250,000, O&M $11,500). This 1.75 miles of trail provides a much needed east/west trail in the rapidly developing southeast area of Fort Collins. Right of way for the trail will be provided as the area develops, which is anticipated to occur in the next few years. CULTURE AND RECREATION 5 | Page 7/15/2014 4. Power Trail railroad underpass south of Harmony at Keenland Drive ($900,000, O&M $1,000). Permission from the railroad for the underpass is anticipated in the next year. 5. Canal Trail from Horsetooth Road to Spring Creek Trail ($500,000, O&M $9,750). Right of Way from development is anticipated in the next few years. 6. Overland Road Trail from Drake Road to Poudre Trail ($3,000,000, O&M $31,500). Right of Way for the trail is needed, primarily from CSU. 7. Two restrooms (Poudre Trail at Taft Hill and Power Trail north of Trilby), rest stops and drinking fountains at various locations ($350,000, O&M $10,000). Why is this Project Needed? In the recent Trail Master Plan survey, 95% of respondents said the City’s paved trail system was important or very important to their quality of life. In the 2013 Citizen Survey, 95% rated the trail system as good or very good. The Spring Creek Trail between Lemay and Shields is the most heavily used trail in our trail system but it is narrow and showing its age. Renovating and widening this trail section will improve safety and the overall trail user experience. The other trail projects complete significant gaps in the trail system. Completing these trail sections was a very high priority in the Trail Master Plan survey. Restrooms, shade and drinking fountains were also highly rated improvements in the trail survey and they enhance the trail user’s enjoyment of the trail system. Additional Details: Total project cost $250,000 up to $7,250,000. CR6-RECOMMENDED PROJECT TITLE: EPIC Pool Improvements ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: 0 Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Current EPIC location at 1801 Riverside Ave Project Description: This project is for corrective major maintenance at EPIC pool. Several deficiencies in the pool and HVAC system need to be corrected. Examples of needed repairs are:  The gutter for the Lap Pool needs to be replaced to allow for better water circulation. The current pool turnover is at minimum value. The movable bulkheads will need to be replaced because the current ones would not work with new gutter and are very heavy/difficult to remove. We also need to install a regenerative pool filter.  The Therapy Pool requires re-plumbing of circulation lines. Currently there is too much pressure drop for the system.  The HVAC system needs two additional units. One unit is for the bleacher area and one is to augment existing AHU-1. The air exchanges for the pool are below design standards. Why is this Project Needed? The firm Ohlson Lavoie Collaborative was contracted to perform a complete pool study on the CULTURE AND RECREATION 6 | Page 7/15/2014 mechanical, structural, aquatic, and operations of the EPIC spa, wader and main pool. The results of the study determined there were several major deficiencies in the pool and HVAC systems at EPIC. These deficiencies will need to be corrected in order to provide the highest quality service at the EPIC facility. CR7 PROJECT TITLE: Preserving Our Heritage: City Park Train, Club Tico Renovations, Fire Museum ESTIMATED PROJECT COST: $1M ESTIMATED ANNUAL O&M: $25K Service Area: Community Services and PFA Department/Program: Recreation and PFA Project Location: City Park and The Car Barn at Cherry and Howes Street Project Description: This project brings back the much loved City Park train in a new, expanded location east of the playground. The project also completes the renovation of Club Tico at City Park by renovating the kitchen and restrooms and adding a second story deck on the south side of the facility. A Fire Museum at the historic Car Barn would also become a reality through this project. The volunteer supported Fire Museum would showcase historic fire engines, uniforms and equipment while telling the fascinating story of fire-fighting in Fort Collins. Why is this Project Needed? The historic train at City Park sadly reached the end of the tracks in 2011because it could no longer be operated safely. A new train on an expanded track will restore this treasured City Park experience. Club Tico is a popular dance and event venue but has been showing its age. Through donations and City support much of the facility has been renovated, including the stage and dance floor. This historic community center will realize its old glory through this final phase of restoration. It will also become a sought-after event venue once the kitchen and restrooms are upgraded. Fort Collins has a rich history of fire-fighting but we don’t have a fire museum. The Fire Museum project will showcase a wonderful collection of fire- fighting memorabilia in a great building and enrich the cultural landscape by telling the story of fire-fighting in our community. Additional Details: The new train and track costs $350,000, the Club Tico renovation costs $250,000 and the Fire Museum costs $400,000 for a total project cost of $1,000,000. CR8 PROJECT TITLE: Velo and Fitness Park ESTIMATED PROJECT COST: $2.1M ESTIMATED ANNUAL O&M: $162K Service Area: N/A-Citizen Initiated Department/Program: N/A Project Location: TBD Project Description: The cycling and fitness park would provide a collection of key bicycle related features and non- cycling features in a single site or across multiple sites. Included would be a mountain bike track, a cyclocross course, a criterium course, a kids area, an Olympic size BMX course, and supporting facilities all making this a centerpiece of Fort Collins – where bicycling is a way of life. It would accommodate a wide range of abilities, with opportunities to just recreate, to build skills, and even CULTURE AND RECREATION 7 | Page 7/15/2014 compete. The kid’s area could host a Bicycle Safety Town as well as tricycle and small bicycle trails, and a state of the art playground. Space would also be included for non-cycling activities such as running, skating, walking, hiking and various sports fields. A velodrome could be could be added in a later phase when funding is available. The City would own, develop, and operate the park. A single park site, or multiple combined sites, would require a minimum of 50 acres. Private funding would be raised to cover a portion of the land and construction costs. Construction phases would be based upon need and available funds. Why is this Project Needed?  These cycling features fill a major missing hole for new facilities identified in the Fort Collins Parks and Rec Policy Plan.  Bicycling is the 6th most popular sports activity in the US according to the 2011 NSGA Sports Participation survey. Yet we have only small separate BMX and trials courses in the Fort Collins parks system. June 16, 2014  Parks Planning staff agrees this addresses Culture and Recreation Strategic Objectives: o 2.4 Maintain and enhance the current culture, recreation and parks systems. o 2.5 Plan, design and implement citywide park, recreation and trail improvements. o 2.7 Promote a healthy community and responsible access to nature Other Related Projects (if any): FC Bikes is proposing funding for a pilot Bicycle Safety town in the 2015/2016 BFO. That project could be co-located with the Velo Park site. Additional Funding Details: Private funding, donations and partnerships expected to cover a portion of the total costs. Total includes: $1.5M for land purchase (50 acres at $30K acre using 2013 ROW purchase rate), $735K for phase 1 construction plus facilities/parking. Costs do not include phase 2 construction cost of $125K or additional facilities/parking of $350K. ECONOMIC HEALTH 8 | Page 7/15/2014 ECH1-RECOMMENDED PROJECT TITLE: Downtown Restroom ESTIMATED PROJECT COST: $350K ESTIMATED ANNUAL O&M: 0 Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Oak Street Parking Area Project Description: This project is to build a modern and larger restroom facility in downtown at the Oak St. Parking area. It will replace an outdated, inadequate, and unpleasant 1980 constructed building. The intent is to welcome the public and visitors with the presence of a safe, family friendly and attractive restroom facility in the “Old-Town” area. This project will deconstruct the existing building, design, and construct a facility having seven single-occupant spaces. It will incorporate energy efficiency technologies (solar, natural lighting, photovoltaic panels). Materials selected will be low maintenance, vandal resistant, and sustainable while providing an attractive exterior and pleasing interior décor. Safety and security features will include access control. Why is this Project Needed? The existing small public restroom located at 123 Oak St. is a two occupant (1 women’s and 1 men’s) facility. It does not meet the public’s need for a pleasing and modern restroom facility. As the City strives to sustain a vibrant downtown, promote public transportation, and support a healthy environment, well-designed public restrooms are necessary. This building project is long overdue in order to support the downtown shopping population - both tourist and the local public. During events downtown, there has been a queue to use the existing facility. ECH2-RECOMMENDED PROJECT TITLE: Quiet Zone Implementation I (Downtown/CSU) ESTIMATED PROJECT COST: $1.5M ESTIMATED ANNUAL O&M: $160K Service Area: Planning, Development, & Transportation Department/Program: FC Moves Project Location: BNSF rail line downtown and on CSU campus Project Description: This project would construct the improvements required to bring railroad crossings up to the necessary level of improvement to obtain a quiet zone in the subject location. Why is this Project Needed? Train horn noise in Fort Collins continues to be a concern, and has impacts on quality of life and economic development. Obtaining a quiet zone would alleviate these issues. Other Related Projects: Quiet Zone Implementation (Drake to Trilby) Additional Details: Staff is currently undertaking an exercise to attempt to obtain a waiver to certain requirements of the quiet zone rule. If this attempt is successful, the cost for implementation may be considerably less. ECONOMIC HEALTH 9 | Page 7/15/2014 ECH3-RECOMMENDED PROJECT TITLE: Quiet Zone Implementation II (Drake to Trilby – 5 crossings) ESTIMATED PROJECT COST: $1.25M ESTIMATED ANNUAL O&M: $50K Service Area: Planning, Development, & Transportation Department/Program: FC Moves Project Location: BNSF rail line from Drake to Trilby Project Description: This project would construct the improvements required to bring railroad crossings up to the necessary level of improvement to obtain a quiet zone in the subject location. Why is this Project Needed? Train horn noise in Fort Collins continues to be a concern, and has impacts on quality of life and economic development. Obtaining a quiet zone would alleviate these issues. Other Related Projects: Quiet Zone Implementation (Downtown/CSU) ECH4-RECOMMENDED PROJECT TITLE: Mason Street Enhancement ESTIMATED PROJECT COST: $3M - $5M ESTIMATED ANNUAL O&M: $9K Service Area: PDT/CMO Department/Program: Engineering, CMO Project Location: Mason Street from Laurel Street to Cherry St Project Description: This project proposes to fund efforts to implement improvements to Mason Street including downtown railroad and intersection enhancements. This offer will also fund enhancements along the Mason Corridor that implement elements from the Mason Street Transportation Corridor Master Plan. This project will focus on the following: • Improving safety for all modes of travel • Improving appearance and safety at intersections • Providing bicycle circulation options (on or near the corridor) • Pedestrian circulation along and across Mason Street • Ensuring mobility and accessibility for people of all ages and abilities • Creating a beautiful, identifiable, and unique design • Identifying funding and building partnerships This offer would fund architectural and engineering design of enhancements along Mason Street. As the City embarks on the operation of the MAX service, it is imperative to the success of the Mason Corridor to design and construct improvements along the corridor. The Mason Street Transportation Corridor Master Plan identified the following design principles; they are intended to reflect the design direction and goals for the Master Plan of the Mason Street Corridor: ECONOMIC HEALTH 10 | Page 7/15/2014 • Corridor Character— The design character of the corridor reflects the area that it goes through, while maintaining common elements that give the Mason Street Transportation Corridor a unique appearance and identity. • Positive Impression— The corridor is a community asset, of which the citizens of Fort Collins can be proud. Note: BFO Offer 1.18 is similar. Why is this Project Needed? This project provides implementation of the Mason Street Transportation Corridor Master Plan. It supports the MAX operations by improving walking and bicycling connections to and from MAX stations within the Midtown area. This project will fund enhanced railing along the BNSF Railroad, along with intersection improvements such as bulb outs and landscaping. ECH5-RECOMMENDED PROJECT TITLE: East Mulberry Corridor Planning ESTIMATED PROJECT COST: $300K ESTIMATED ANNUAL O&M: 0 Service Area: PDT/Util/Sustainability(EH) Department/Program: Cross-Service Areas Project Location: East Mulberry, from Lemay to County Road 5 Project Description: Comprehensive planning effort in preparation for annexation and development of major gateway corridor. Should include financial analysis, utility and land use planning, design standards, market analysis, etc. Note: BFO Offer 146.1 is similar, but focuses more on land use aspects rather than infrastructure. Why is this Project Needed? Mulberry is a major arterial entryway into downtown Fort Collins, and is expected to be an important economic development region to serve downtown and the northeast region. While there is already a corridor plan, it lacks the level of detail needed to pursue purchase of rights of way and design. Other Related Projects: Mulberry/I-25 interchange, Lincoln Improvements, Vine/Lemay intersection ECH6-RECOMMENDED PROJECT TITLE: Linden Street Renovations ESTIMATED PROJECT COST: $2M - $3M ESTIMATED ANNUAL O&M: $12K Service Area: PDT/CMO Department/Program: Engineering, CMO Project Location: Linden Street, Walnut to Jefferson Project Description: The Downtown Development Authority has funded the conceptual design for this project and the work will be completed in 2014. The conceptual design process will help define the option for final design. This offer will fund the final design of this project that will provide for the enhancement of ECONOMIC HEALTH 11 | Page 7/15/2014 perhaps one of downtown’s most significant and photographed blocks, the 200 block of Linden Street. This block is one of the city’s most programmed streets, hosting festivals, events and concerts throughout the year. While the streetscape is adequate, this block is primarily a place for cars. This project envisions the possibility a transformation of the block to a more pedestrian-oriented space in the heart of downtown. This project will look at options for the renovation of this important downtown block of Linden Street. One option may be a combination of pedestrian and auto uses enhancing the Old Town experience. Another option that will be explored is a pedestrian plaza with the idea of extending the pedestrian mall of Old Town Square through this section of Linden Street, this concept would reconstruct the entire block from building face to building face creating a space for people year- round. As the conceptual design for this project progresses, the design concepts will become clearer and should be defined in the summer of 2014. Note: BFO Offer 1.19 is similar. Why is this Project Needed? This project will create a more pedestrian friendly environment extending Old Town north along Linden Street. This project will help connect Old Town to the developing River District. ECH7-RECOMMENDED PROJECT TITLE: Willow Street Improvements – College Avenue to Linden Street ESTIMATED PROJECT COST: $3.5M ESTIMATED ANNUAL O&M: $11K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Willow Street Improvements from College Avenue to Linden Street Avenue Project Description: This project would implement improvements to Willow Street as identified in the River District Infrastructure Plan. This project is envisioned to extend vibrant, pedestrian-oriented activities to the River District. Wide sidewalks, on-street parking, urban design, landscaping and potentially a linear water feature are planned. BFO offer 1.11 is for final design. Why is this Project Needed? Willow Street lacks pedestrian and parking facilities to support current and planned adjacent land uses. These improvements are part of a larger River District Plan. Other Related Projects: Lincoln Boulevard Improvements, Jefferson Street Improvements ECH8-RECOMMENDED PROJECT TITLE: Parking Infrastructure Fund ESTIMATED PROJECT COST: $5M ESTIMATED ANNUAL O&M: $400K Service Area: Planning, Development, & Transportation Department/Program: Parking Project Location: Various Project Description: This project will provide funds toward parking infrastructure needs identified in the adopted ECONOMIC HEALTH 12 | Page 7/15/2014 Parking Plan (primarily Downtown), and other important parking needs such as parking facilities on the Mason Corridor, or upgrades to the Harmony and I-25 park-&-ride. A parking infrastructure fund would allow the City to enter into public/private partnerships with developers who also need parking. These partnerships would lower costs for both parties through economies of scale. They would also help achieve higher-level City goals, such as urban design considerations and mitigation of transportation demand impacts, by strategically locating parking facilities near transit centers. When combined with other Travel Demand Management techniques, comprehensive parking strategies can serve as tools for improving the efficiency of the transportation network, reducing or managing congestion, and slowing the growth in Vehicle Miles Travelled (VMT). All of these outcomes contribute to the achievement of environmental goals that have been adopted in the City’s Climate Action Plan, City Plan and the Transportation Master Plan. Why is this Project Needed? New parking infrastructure is needed because parking is a vital part of the City’s larger transportation system, and strategically-located parking will make all elements of the system work better and more efficiently. ECH9-RECOMMENDED PROJECT TITLE: Downtown Parks Maintenance Shop ESTIMATED PROJECT COST: $3.5M ESTIMATED ANNUAL O&M: 0 Service Area: Community and Operations Services Department/Program: Operations Services Project Location: To be determined Project Description: This project will build a new Parks maintenance shop on the City’s Street Department property, replacing the temporary structure which houses the downtown crew for the past 5 years. The building will house over 30 employees, responsible for maintaining the numerous city facilities, downtown core area, Old Town Square and future expansion of City owned streetscapes and medians in the river district. The new facility will provide similar shop amenities as other satellite shops in the city. Why is this Project Needed? This project is needed because the current Parks downtown shop location will be lost due to the master plan development of block 32. This current shop will have to move off site to a new facility built at a new location, preferably at the City’s Street facility, which will afford similar access to the core area of the City. This project meets all aspects of a triple bottom line analysis. It meets environmental objectives because staging crews near the downtown greatly reduces fuel use and increases efficiencies. Crews have opportunities to use electric vehicles, bicycles, foot travel and other low-fuel use equipment to accomplish their assigned duties. The botanical crews are required to refill water tanks multiple times during the day. If travel distances are increased, it would result in untimely maintenance, increase any traffic conflicts with the public, and greatly decrease efficiency. It meets financial objectives because a shop in close proximity to work assignments saves employee’s time in completing their work assignments by reducing travel and response time. The downtown area requires crews to work in a concise timeframe to allow ECONOMIC HEALTH 13 | Page 7/15/2014 basic work duties to be accomplished before the public starts utilizing the sidewalks and facilities. By literally reporting minutes from their assigned work area, it allows crews to be very efficient, effective and timely. It meets social objectives because using small electric vehicles and bicycles along city sidewalks makes for a much safer environment for citizens. During the winter months, snow removal operations can clear sidewalks earlier and remain closer to city facilities keeping them clear and safe. ECH10-RECOMMENDED PROJECT TITLE: Median and Streetscape Enhancements and Renovations ESTIMATED PROJECT COST: $1-2M ESTIMATED ANNUAL O&M: $89.6K Service Area: Community Services Department: Parks Project Description: The proposed project would renovate roughly three miles of median between Prospect and Harmony road. Renovation would include adding irrigation, new mulch, new plantings, and limited urban design enhancements. Why is this Project Needed: Most of the medians in College Avenue from Prospect to Harmony Road have not been renovated in 30 years. In most instances there is not even irrigation. Midtown has been identified in City Plan as a major location for renovation and redevelopment. This dense retail area is responsible for 40% of the City’s tax base and is the major retail corridor in the City. With the $300M renovation of Foothills Mall it is important for the City to continue to reinforce the importance of this corridor. Additionally, the $87M MAX project and the Midtown Urban Design Plan point toward the importance of continuing to revitalize this important corridor. This proposed funding is a key step in restoring the visual attractiveness of College and emphasizing its importance as our City spine. ECH11 PROJECT TITLE: Community Marketplace ESTIMATED PROJECT COST: $9M ESTIMATED ANNUAL O&M: $125K Service Area: Sustainability Services Department/Program: Economic Health Project Description: The Community Marketplace project will construct an indoor market hall allowing for year-round operation of a farmer’s market. The hall would include space for permanent tenants and open space for temporary stalls. The stalls would operate only on select days, with permanent tenants open year round for normal operating hours. The intent is for the project to become a focal point for local food production and increase the availability of Fort Collins products. Project Location: Downtown – location undetermined. Why is this Project Needed? The Community Marketplace has been a past priority of the Fort Collins Downtown Development Authority (DDA). Currently, the DDA has deprioritized the project due to funding limitations. The project would also help to drive the supply of locally produced food by providing an additional venue for the sale of these products. ECONOMIC HEALTH 14 | Page 7/15/2014 Additional Details: A feasibility study was performed on the concept by the DDA in 2011. The results of the study indicate that Fort Collins can support a Community Marketplace as long as it includes an anchor rent paying tenant, such as the Food Co-op. Additional details can be provided from the Feasibility Study if requested. ENVIRONMENTAL HEALTH 15 | Page 7/15/2014 ENV1-RECOMMENDED PROJECT TITLE: Climate Action Projects ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: 0 Service Area: Sustainability Services Department/Program: Multiple Project Location: Multiple Project Description: In 2014, Fort Collins’ Climate Action Plan will be updated and will identify several high priority projects that will need to be implemented over the next five to ten years to achieve greenhouse gas (GHG) reduction goals and targets. In addition, strategies to increase Fort Collins’ preparedness to a changing climate will be developed through the climate adaption planning process underway in 2013/2014. The requested pool of funding will be used to fund projects that are ranked high priority from these processes, and may include supporting a ReUse warehouse for resusable goods in the community, transitioning to more efficient streetlights, supporting intelligent transportation systems, increasing electric vehicle charging stations, etc. Why is this Project Needed? Reducing local GHG emissions is proven to deliver local benefits to the community such as savings on energy bills, reduction in air pollution emissions, extended landfill life, local job creation, etc. Funding will be needed to provide seed money (grants match, support for public/private partnerships, etc.) for anticipated high priority climate mitigation and adaptation projects. Several likely climate projects will be able to support economic health in Fort Collins. For example, the “reusable materials” that are currently thrown away in Fort Collins are valued at over $2M alone. Keeping these items out of the landfill and in use locally adds value to the economy. ENV2-RECOMMENDED PROJECT TITLE: Community Organics Composting and Recycling Facility ESTIMATED PROJECT COST: $2.5M ESTIMATED ANNUAL O&M: $70K Service Area: Sustainability Services Department/Program: Environmental Services Project Location: TBD Project Description: This project would develop a combined Community Recycling Center (CRC) for hard-to-recycle materials (construction & demolition debris, electronic waste, common household chemical products, etc.) that features a commercially-scaled transfer station for yard waste and food scraps, to be co- located with the CRC. Scoping/feasibility studies (2012) for the CRC led to a multi-phase phase plan. By designing and building multiple phases simultaneously at a single location, optimal development and financial efficiencies will be gained. A full-service, permanent CRC will function as a waste diversion hub for ENVIRONMENTAL HEALTH 16 | Page 7/15/2014 many years to come by accepting various hard-to-recycle materials, including organic materials, and thereby increase the community’s ability to achieve Zero Waste goals. This component of the project ($1.5M) is currently seeking funding through the City’s 2015/2016 budget process. Regional partnerships will be sought to offer the combined CRC/organics transfer station’s use to all Larimer County residents. Why is this Project Needed? The Community Recycling Center and commercial scale organics transfer station are an integral part of Fort Collins road to zero waste. The newly adopted Zero Waste goals identify the need for an organics composting facility if Fort Collins is to achieve zero waste. Currently, yard and food waste comprise an estimated 29% (38,000 tons/year) of material thrown into the landfill and are responsible for generating 3% of community greenhouse gas emissions. Larimer County landfill life is estimated to be only 12 years, and the cost of rebuilding a similar landfill is estimated to range from $20M -$80M. Keeping organics out the landfill would create more local jobs, reduce GHG emissions, extend landfill life, and improve the community’s access to compost for use as a soil amendment. Additional Details: This project requests a total of $2.5M for development and construction of a combined facility; this includes costs for the hard-to-recycle-materials center ($1.5 M) and $1M for the organics transfer station. The site will be operated by the private sector under contract(s) to the City. Therefore, charges will be applied for users of the organics transfer, currently estimated at $35/ton; however, the gate fee for the hard-to-recycle-materials remains to be determined by the operator. The City’s expectation is for operations and maintenance (O&M) costs to be covered in the operator(s) business model. The on-going O&M costs of $70,000 identified here provides a contingency to cover unanticipated facility maintenance costs and/or limited subsidy to the operator(s) during the first few years of operation as the usage scales up. ENV3-RECOMMENDED PROJECT TITLE: Downtown Poudre River Enhancements ESTIMATED PROJECT COST: $13.8M ESTIMATED ANNUAL O&M: $75K Service Area: Community Services Department/Program: Natural Areas and PP&D Project Location: Poudre River between Shields Street and Lincoln Avenue Project Description: This project has three distinct enhancement areas. The Coy diversion project (near the Power Plant building) involves modifying/removing the Coy diversion structure and boat chute, creating a whitewater park, enhancing the river habitat and adding a pedestrian bridge over the river east of College Avenue. The Martinez/Legacy Park project improves Legacy Park by routing the road away from the river, modifying and revegatating the river bank, adding picnic areas, creating natural play areas, and adding a restroom, parking and landscaping. The project also re-grades parts of both parks to connect them to the floodplain, which mitigates flooding risks at College Avenue. This project also modifies the Lake Canal diversion structure to facilitate boating and fish movement. The third project implements the Poudre River Enhancement Plan between Linden and Lincoln. Improvements include bank stabilization and beautification as well as habitat ENVIRONMENTAL HEALTH 17 | Page 7/15/2014 enhancements. This reach of the river has been heavily impacted by human use over the years and this project will help beautify and naturalize the area. Implementation of the project requires cooperation from other parties with ownership interests in diversion structures and other property impacted by the improvements. Why is this Project Needed? The Poudre River is an elemental part of Fort Collins yet it has never been integrated into the fabric of our community. This project will connect the community to the river. The project will significantly improve the river ecosystem and help restore the river’s natural beauty. River recreation will be greatly enhanced by trail improvements, play areas, river access points, picnic areas and a whitewater park. The project will also help protect life and property by improving management of stormwater. Other Related Projects: Woodward natural area and river improvements; Sterling and McMurry Ponds river improvements; Shields bridge replacement (County). Additional Details: The Coy diversion project is estimated to cost $6 million. The Martinez/Legacy project is estimated to cost $5.3 million. The Linden/Lincoln project is estimated to cost $2.5 million. Total project cost is $13.8 million. Staff intends to seek funding for the Coy diversion project through the BFO process and other available avenues to accelerate implementation. HIGH PERFORMING GOVERNMENT 18 | Page 7/15/2014 HPG1-RECOMMENDED PROJECT TITLE: Parking Garage & Retail Space ESTIMATED PROJECT COST: $10-11M ESTIMATED ANNUAL O&M: $300K for both Garages Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Block 32 Project Description: There is a growing need for additional parking in downtown Fort Collins to meet the daily needs of the community. We are looking at two separate parking structures, each having 400 parking stalls, office for parking services and 11,000 SF of retail space which will be leased along the street fronts. Why is this Project Needed? There is a growing need for additional parking in downtown Fort Collins to meet the daily needs of the community. With the new master plan for Blocks 32 and 42, there will become an increased parking need for both the City staff and the public that will be visiting these facilities. The Master plan calls for two separate parking structures with each having 400 stalls and retail space that can be leased along the street fronts. Other Related Projects (if any): 1. Municipal Services City & Hall/ Administration Building – A new 125,000 SF City Hall is being proposed and shown to be placed on Block 32/42 which is to house many departments currently located in 215 N Mason. 2. Utilities Customer Service and Administration building is being designed for construction beginning in July 2014. This building is a 35,000 SF building and is to be located on the SW corner of Block 32 and will house the customer service and senior management of the Fort Collins Utilities Service Area. 3. Building and Development Services – With many of the current staff at 215 N Mason being placed in the New City Hall this frees up space to move the Building and Development services from 281 N College and allow for this property to be sold off. HPG2 PROJECT TITLE: Vehicle Storage ESTIMATED PROJECT COST: $3M ESTIMATED ANNUAL O&M: $65K Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Streets Facility 625 Ninth Street Project Description: This project is for the construction of a new 20,000 square foot facility for vehicle storage to house snow removal equipment. There will also be room to store construction equipment such as the road graders and loaders that are used for snow removal. The building will have 14 bays which will allow for all the needed equipment to be stored inside. HIGH PERFORMING GOVERNMENT 19 | Page 7/15/2014 Why is this Project Needed? The current vehicle storage facility is already beyond capacity. As the city grows and the demand for snow removal increases, more space will be needed for additional plow trucks and equipment. Having snow plow trucks loaded and stored in a covered and heated space helps to ensure timely response to snow which has been proven to decrease snow removal costs as well as ensure safe streets for the public. Getting plows on the streets early allows crews to get ahead of the storm. HPG3 PROJECT TITLE: Building and Development Services ESTIMATED PROJECT COST: $6-7M ESTIMATED ANNUAL O&M: 0 Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Block 32 Project Description: There is a growing need to have the City’s Building and Development services in a central location so there are better efficiencies and collaboration during the project review process. Discussions indicate a new City Hall would house many departments currently in 215 N Mason. If this space is vacated, there will be adequate space to move the staff currently at 281 N College into 215 N Mason and occupy the 1st and 2 nd floors. This would create a central location for Building and Development services because the staff at 700 Wood Street would be relocated to the New Customer Service building on Block 32. This would create a one-stop shop for the public and improve customer services. Why is this Project Needed? Most of the City Building and Development services are located at 281 N College, but there are also some review personnel currently located at 700 Wood Street and 215 N Mason. The ideal scenario would be to have all these personnel in one central location so the City would have better efficiencies and collaboration during the review process, and the public would have a one stop shop for interaction during the review process. Other Related Projects (if any): 1. Municipal Services City & Hall/ Administration Building – A new 125,000 SF City Hall is being proposed and shown to be placed on Block 32/42 which is to house many departments currently located in 215 N Mason. 2. Utilities Customer Service and Administration building is being designed for construction beginning in July 2014. This building is a 35,000 SF building and is to be located on the SW corner of Block 32 and will house the customer service and senior management of the Fort Collins Utilities Service Area. 3. Parking Garage Structure – A new 400 Stall parking structure is part of the Master plan for Blocks 32 and 42 to reduce the increased demand for parking in Downtown Fort Collins. HIGH PERFORMING GOVERNMENT 20 | Page 7/15/2014 HPG4 PROJECT TITLE: City Hall/ Administration Building ESTIMATED PROJECT COST: $40-50M ESTIMATED ANNUAL O&M: 500K Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Block 32/42 Project Description: The City of Fort Collins is looking to develop its downtown property to meet future building capacity and improve efficiencies between departments. Most City buildings are at or near capacity, and the City is looking at ways to use Blocks 32 and 42 to plan how the City of Fort Collins should function for the next 15–20 years and prepare for future growth for the next 50–100 years. The current City Hall is out of space and has no room for growth so as we are discussing a new City Hall we are looking at what departments should be in a New City Hall and what space would be needed to function properly. It has been determined after several interviews and meetings that City Hall should house the following departments: City Attorney, City Clerk, City Manager, CPIO, HR, Finance, IT, Risk Management, Municipal Courts, Sustainability along with Council offices and chambers. With these departments we are looking at a City Hall of 125,000 SF which provides some room for future growth. Why is this Project Needed? City Hall, like most City buildings, is at capacity and many departments which should be in City Hall have been moved out due to lack of space causing poor efficiencies and collaboration. Other Related Projects (if any): 1. Utilities Customer Service and Administration building is being designed for construction beginning in July 2014. This building is a 35,000 SF building and is to be located on the SW corner of Block 32 and will house the customer service and senior management of the Fort Collins Utilities Service Area. 2. Building and Development Services – With many of the current staff at 215 N Mason being placed in the New City Hall this frees up space to move the Building and Development services from 281 N College and allow for this property to be sold off. 3. Parking Garage Structure – A new 400 Stall parking structure is part of the Master plan for Blocks 32 and 42 to reduce the increased demand for parking in Downtown Fort Collins. SAFE COMMUNITY 21 | Page 7/15/2014 SC1-RECOMMENDED PROJECT TITLE: Regional Training Facility ESTIMATED PROJECT COST: $10.5M ESTIMATED ANNUAL O&M: $320K Service Area: Police Services Department/Program: Administration Project Location: Fort Collins – Loveland Airport Project Description: Regional Training Facility Partnership with Loveland Why is this Project Needed? The current shooting range is over 20 years old and in need of major repairs estimated to cost $600K. With only 12 shooting lanes, the capability for efficient training is extremely limited. The city’s population is expected to grow annually by 2% increasing the need for additional officers. The Mulberry corridor is expected to be annexed into the city sometime around 2017 necessitating additional officers. Training of new officers is further exacerbated due to sending them to Adams County for a basic police academy. This model is not efficient as the agency continues to grow. Police Services does not have any local area to train for driving, necessitating travel to a facility in Adams County. By partnering with the City of Loveland, both communities benefit. Time not used by Fort Collins or Loveland at the facility will be rented out to other northern Colorado agencies to help offset the costs of operations and maintenance. There is no such facility in northern Colorado and interest level is high with other law enforcement agencies. This facility also allows for the establishment of a basic police training academy, which will increase efficiencies and be cost effective compared to our current model. The anticipated $21 million cost will be shared equally by both cities. Additional Details: The O & M costs include all staff expenses, marketing, range support, range equipment and operating costs, and maintenance contingency. While some of this will be offset by user fees from outside agencies, the cities of Loveland and Fort Collins will pay the lion’s share of expenses. It is uncertain at this time if the split will be 50/50 since FCPS is twice the size of Loveland. SC2-RECOMMENDED PROJECT TITLE: Computer Aided Dispatch/Records Management System Upgrades ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: 0 Service Area: Police Services Department/Program: Information Services Project Location: Police Building and Laptop Computers Project Description: Necessary upgrades/maintenance on CAD/RMS system (2016 thru life of tax at $200K annually) Why is this Project Needed? The current system will age out and parts and support will become obsolete requiring upgrades and/or replacement. Replacement includes 5-year server replacement as outlined in the IT Service Level Agreement (SLA). In public safety departments such as police, fire, and ambulance, it is essential that communications and records systems are consistently operating without system failures. This equipment is important to the ongoing mission to provide for efficient and highly functioning first response to emergency SAFE COMMUNITY 22 | Page 7/15/2014 situations, police situations, fires and natural disasters, or any other type of response to provide for public safety. SC3-RECOMMENDED PROJECT TITLE: Land Purchase for Police Maintenance Facility ESTIMATED PROJECT COST: $800K-1.1M ESTIMATED ANNUAL O&M: 5K Service Area: Community and Operations Services Department/Program: Operations Services Project Location: To be determined Project Description: The purchase of this property and the site improvements will be the first phase of a long-term future project for a future shared fleet police vehicle maintenance shop. Preliminary discussions have begun with Larimer County to service Larimer County Sheriff's vehicles at this site. Why is this Project Needed? Development has already begun in the area between the Police Services site and Larimer County Sheriff’s facility. We need to purchase a suitable property now, while good sites are available and before property values increase. Other Related Projects: Police Maintenance Facility SC4-RECOMMENDED PROJECT TITLE: Police District One Lease Buyout ESTIMATED PROJECT COST: $500K ESTIMATED ANNUAL O&M: 0 Service Area: Community and Operations Services Department/Program: Operations Services Project Location: Civic Center Parking Garage Project Description: The Police have had a unit known as District One in Old Town since 1999. In May of 2010, District One moved into a space containing 3,800 square feet in the Civic Center Shoppes on the ground floor of the Parking Garage. Having this Police presence in the Old Town area has been very advantageous for the Police Department. Their current location, while not in Old Town, is on the east side of the tracks, enabling officers to reach Old Town very quickly. In addition, since the main Police Department has moved close to Drake and Timberline, the officers on the north side of town use this space for their office work. The Police would like to continue to use this space and our current lease terminates April 30, 2015. Why is this Project Needed? When the City constructed the Parking Garage, the space for the retail spaces were leased to the Contractor under a ground lease with a term of 40 years. The Ground Lease was later assigned to Post Modern Development. There are around 25 years left on this Ground Lease. We had meetings with Post Modern Development this summer and we discussed the possibility of buying out their share of the space occupied by District One. Since the Police do desire to stay in this space, it makes sense to own the space, avoid paying rental costs, and be in control of all costs for maintenance and repair. In addition, the value of this space will increase once the MAX becomes operational in the spring of 2014. SAFE COMMUNITY 23 | Page 7/15/2014 SC5-RECOMMENDED PROJECT TITLE: Campus West Policing Sub-Station ESTIMATED PROJECT COST: $460K ESTIMATED ANNUAL O&M: $486K/ $77K for lease and $409K for personnel Service Area: Police Services Department/Program: Patrol Project Location: Campus West Area Project Description: The identification and securing of building space to establish a police sub-station in the Campus West area. This could also be a partnership with other City entities such as Neighborhood Services and CSU. This project would provide improved City services to constituents. Why is this Project Needed? The Campus West sub-station and community policing team was originally proposed in 2005 in the BFO process. In 2012, partial funding through KFCG was received for 4 police officers to be dedicated to the area; however, the facility and the remaining sergeant, two police officers, and records specialist packaged with the sub-station were not funded. The presence of both long-term homeowners and a large CSU student population that rent homes creates challenges for the area surrounding CSU. There are also large apartment complexes in the area with a high CSU student population. The neighborhood associations in that area are very active in maintaining their quality of life. The Campus West area sees a high level of property crime, noise and party complaints and disturbances. A sub-station in the Campus West area is of value to residents on the west side of the city as a point of contact for police services, and the opportunity to co-locate with other city and university departments would create a very positive community policing partnership. The future addition of thousands of students, a possible on-campus stadium and the growing population density in this area will continue to make a stronger police presence in this area important Additional Details: Project costs are based on an estimate of $360K to obtain and modify the facility and $100K for start-up costs for the personnel. The estimated annual O&M represents an estimated $77K for lease payments for the facility and $409K in ongoing personnel costs for a sergeant, two police officers and a records specialist to fully staff the team. These personnel are in addition to the four police officers currently funded by KFCG. SC6 PROJECT TITLE: Halo Camera and Other Camera Monitoring ESTIMATED PROJECT COST: $1.09M ESTIMATED ANNUAL O&M: 0 Service Area: Police Services Department/Program: Information Services Project Location: Various City Locations Project Description: This project seeks to utilize cameras placed in high activity locations, at selected traffic intersections, and two mobile camera platforms for surveillance at any desired location. This purchase would also include essential computer management software and hardware, fiber from cameras to storage location, and SAFE COMMUNITY 24 | Page 7/15/2014 self-contained platforms with the ability to broadcast to a centralized location for monitoring. Why is this Project Needed? Increasingly camera technology is being utilized in law enforcement as a valuable tool to record situations when police are not present. Active monitoring assists in providing police response during criminal acts. Camera technology has been refined and picture quality has vastly improved. Cost has significantly decreased. Camera technology has exhibited its value throughout the world as it relates to public safety, recording of major events at specific locations, apprehension of criminals, and providing evidence for prosecution. The Boston Marathon bombing is an example of the ability to record events and provide photographic evidence leading to the apprehension of those responsible. In addition to providing a record of events during an incident, cameras also serve as a crime deterrent. SC7 PROJECT TITLE: Police Vehicle Maintenance Facility ESTIMATED PROJECT COST: $6.5-7.5M ESTIMATED ANNUAL O&M: $280K Service Area: Community and Operations Services Department/Program: Operations Services Project Location: To be determined Project Description: The plan for this facility is to perform routine maintenance on the police vehicle fleet. There have also been preliminary discussions with Larimer County with regard to the potential for collaboration in servicing Larimer County Sheriff's vehicles at this shop. Why is this Project Needed? We have 171 police vehicles at the Timberline Police Station. Having a vehicle maintenance shop closer to the Station than the existing maintenance shop will provide more efficient service for the Police. It will be more cost effective and more convenient to have routine items performed on their vehicles without having to drive as far as they currently do to the existing maintenance shop. TRANSPORTATION 25 | Page 7/15/2014 T1-RECOMMENDED PROJECT TITLE: Vine & Lemay Grade Separated Crossing Design, ROW and Construction ESTIMATED PROJECT COST: $25M ESTIMATED ANNUAL O&M: $60K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Lemay Avenue between Lincoln Avenue and New (Realigned) Vine Drive. Project Description: Design, right-of-way acquisition and construction of the master-planned realignment of Lemay Avenue, including grade separation of Lemay Avenue and the Burlington Northern and Santa Fe Railroad. The cost estimate from the 2010 Mountain Vista plan for this project is $32M. Staff is in the process of developing concept alternatives including revised cost estimates. Why is this Project Needed? Existing Vine Drive and Lemay Avenue is congested and constrained by the Burlington Northern and Santa Fe Railroad. Trains block the intersection and create extended gridlock in the area. This location is a top location for congestion and safety complaints. Existing neighborhoods in this area are becoming increasingly impacted by the congestion on Lemay. Additional Details: Other funding sources such as Street Oversizing and Local Street obligations would be available, so Staff is recommending BOB 2.0 funding of $25M not the currently estimated cost of $32M. Note: BFO Offer 1.9 is for Vine/Lemay Design and ROW purchase. Other Related Projects: New (Realigned) Vine Drive between College Avenue and Timberline, including the New Vine and Lemay intersection. T2-RECOMMENDED PROJECT TITLE: Realigned Vine Drive I (New Vine Drive) from College Avenue to Lemay Avenue ESTIMATED PROJECT COST: $8-12M ESTIMATED ANNUAL O&M: $30K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Realigned Vine Drive (New Vine Drive) from College Avenue to Lemay Avenue Project Description: This project would construct a New Vine Drive on an alignment north of the existing Vine Drive as identified on the Master Street Plan and New Vine Drive Conceptual Design. The road is planned as a 4-lane arterial and is identified as an Enhanced Travel Corridor connecting the northeast portion of the City to downtown. Why is this Project Needed? A new alignment of Vine Drive is master planned to create separation between Vine Drive and the Burlington Northern and Santa Fe Railroad and limit impact to existing neighborhoods. The project is vital to maintaining connectivity and mobility for all modes of travel in the northeast part of Fort Collins. Other Related Projects: Lemay Avenue realignment and grade separation. TRANSPORTATION 26 | Page 7/15/2014 T3-RECOMMENDED PROJECT TITLE: Timberline Road Improvements – Stetson Creek to Trilby Road ESTIMATED PROJECT COST: $12M ESTIMATED ANNUAL O&M: $36K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Timberline Avenue between Stetson Creek and Trilby Road Project Description: This project would improve Timberline Road to 4-lane arterial standards between Stetson Creek and Trilby Road. These standards may be varied for context sensitivity, but the intent of connectivity for all modes will be met. Why is this Project Needed? Substantial development in the southeast area of Fort Collins has highlighted existing transportation deficiencies on Timberline Road including lack of roadway capacity, bicycle facilities, sidewalks, curb, gutter, medians and landscaping. This project addresses a key pedestrian facilities deficiency in the Southeast part of town helping safely connect neighborhoods to schools, parks, churches, and open space. T4-RECOMMENDED PROJECT TITLE: West Laporte Avenue Improvements – Impala Drive to Taft Hill Road ESTIMATED PROJECT COST: $2.5M ESTIMATED ANNUAL O&M: $8K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: West Laporte Avenue Improvements from Impala Drive to Taft Hill Road Project Description: This project would improve Laporte Avenue to 2-lane arterial standards as identified on the Master Street Plan from Impala Drive to Taft Hill Road. Why is this Project Needed? This section of Laporte Avenue lacks key elements of the 2-lane arterial standard and serves a critical connection to Poudre High School. T5-RECOMMENDED PROJECT TITLE: Lincoln Avenue Improvements ESTIMATED PROJECT COST: $12M ESTIMATED ANNUAL O&M: $36K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Lincoln Avenue between Jefferson Street and Lemay Avenue Project Description: This project would improve Lincoln Avenue, including the Lincoln Avenue bridge over the Poudre, from TRANSPORTATION 27 | Page 7/15/2014 Lemay Avenue to Jefferson Street. The improvements will be based on the recently adopted Lincoln Corridor Plan. This funding level represents the minimal improvement level specified by City Council at the time of the Lincoln Corridor Plan adoption. Why is this Project Needed? Lincoln Avenue currently lacks sidewalks, curb and gutter, left turn lanes and enhancements including landscaping and urban design. The adjacent land uses are redeveloping, especially the south side (Woodward). Additional Details: Note: BFO Offer1.12 is for Lincoln design; 17.2 is for neighborhood projects in the plan area identified during the Corridor plan. T6-RECOMMENDED PROJECT TITLE: Jefferson Street Improvements-College Avenue to Lincoln Avenue/Mountain Avenue ESTIMATED PROJECT COST: $7.5M ESTIMATED ANNUAL O&M: $24K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Jefferson Street Improvements from College Ave to Lincoln Avenue/Mountain Avenue Project Description: This project would implement modifications to Jefferson Street identified in the Jefferson Street Corridor Plan. These include a change to a 3-lane cross section, improvements to the traditional intersections at Linden and Lincoln, pedestrian improvements, urban design, and a landscaped median. Why is this Project Needed? Jefferson Street is a narrow four lane street and carries significant truck traffic. The intent of this project is to create a street more consistent with a downtown urban character while maintaining the function of the road as a State Highway and truck route. The design is the result of a detailed and collaborative corridor study completed by the City, the Downtown Development Authority (DDA), and the Colorado Department of Transportation (CDOT). A key goal of the design is to remove the perceived barrier the existing street causes between Old Town and the emerging River District. Additional Details: The final design of this project is currently funded through a federal grant. The project is planned to be collaboration with utilities to replace and upgrade sewer, stormwater and water infrastructure. Other Related Projects: Lincoln Boulevard Improvements, Willow Street Improvements T7-RECOMMENDED PROJECT TITLE: College Midtown Transportation Plan Implementation Fund ESTIMATED PROJECT COST: $10M, could be apportioned over time ESTIMATED ANNUAL O&M: $33K Service Area: Planning, Development, & Transportation Department/Program: FC Moves TRANSPORTATION 28 | Page 7/15/2014 Project Location: College Avenue between Mulberry and Harmony Project Description: The College Midtown Transportation Plan is in its initial stages, with an anticipated completion date in the 4th quarter of 2014. When completed, the Plan will include a prioritized list of infrastructure improvement projects for all modes of travel. At this time a specific list of improvements has not yet been developed. BFO Offer 1.17 “Midtown Plan Implementation” (2015-$750,000) is for final design of improvements. Why is this Project Needed? College Avenue is a major arterial corridor that serves as a transportation and commercial hub for the city. As land uses along the College and Mason corridors continue to become denser and more intense, the roadway will require new improvements to address the needs and demands of expanding user groups. T8 Continuation of BOB I Project-RECOMMENDED PROJECT TITLE: Bike Plan Implementation ESTIMATED PROJECT COST: $500K/year for $5M total ESTIMATED ANNUAL O&M: $15K Service Area: Planning, Development, & Transportation Department/Program: FC Moves Project Location: Fort Collins Project Description: Provides a dedicated annual source of funding to be used to implement small capital projects identified in the Bike Plan, or which advance cycling. These funds may be used toward stand-alone bike facility projects, or may be used to supplement other capital projects to enhance the bicycle elements of the project. Why is this Project Needed? Provides a dedicated funding source for bike projects. These projects are often relatively small scale. Periodically, opportunities arise to provide additional bike facilities as an “add on” to another larger project, and this resource allows these low cost additions. Additional Details: This is an annual, ongoing allocation. This program would be a continuation of the current bike plan implementation funding in the existing Building on Basics program. T9-RECOMMENDED PROJECT TITLE: Bicycle/Pedestrian Grade-Separated Crossings Fund ESTIMATED PROJECT COST: $10M Total, $1M/Year ESTIMATED ANNUAL O&M: $ 30K Service Area: Planning, Development, & Transportation Department/Program: FC Moves/ Engineering/Park Planning and Development Project Location: Fort Collins TRANSPORTATION 29 | Page 7/15/2014 Project Description: This project establishes an annual fund that would construct top priority grade-separated bicycle and pedestrian crossings across arterial roadways. Staff in PDT and Park Planning and Development are coordinating to determine top priority projects. Potential locations include the Power Trail crossing at Harmony Road, crossing Shields Street west of the CSU Main Campus, crossing Prospect Road near Center Avenue, major arterial crossings by the Mason Trail, and other crossings identified in the Harmony Road Enhanced Travel Corridor Plan and the Midtown in Motion College Avenue Transportation Study. The proposed level of funding would allow construction of approximately one crossing every other year. Note: BFO Offer 1.15 is similar. Why is this Project Needed? Grade separated crossings allow bicyclists and pedestrians in high use areas to cross major roadways more safely and efficiently. T10-RECOMMENDED PROJECT TITLE: Start-up for Bike Share ESTIMATED PROJECT COST: $505K ESTIMATED ANNUAL O&M: $150K Service Area: Planning, Development, & Transportation Department/Program: FC Moves Project Location: Fort Collins Project Description: This project is for estimated capital start-up costs to provide automated (i.e., self-checkout) bike share service in Fort Collins. It is anticipated that the automated program would supplement and work in tandem with the existing Bike Library. The project cost covers the City’s share of capital and the first two years of operations. The requested amount represents the City’s share of expenses and considers other sources based on recommendations in the Bike Share Business Plan. Annual O & M costs may be further offset by availability of other funding sources. Note: BFO Offer 2.6 is similar. Why is this Project Needed? Bike share is an efficient and effective way to make bicycling available across the City. This program will have particular synergy with MAX and other Transfort services, allowing commuters to use the transit system and check out bicycles at their destinations in order to complete their trip. Bike share can serve as a key strategy for reducing demand for on-bus bike racks. Additional Details: Staff has developed a business plan that outlines how to best proceed with this program. It is typical to combine seed funds from a local government with fees, sponsorships, and other funding sources to complete the overall financing of a bike share system. T11 Continuation of BOB I Project-RECOMMENDED PROJECT TITLE: Transfort Bus Fleet Replacement ESTIMATED PROJECT COST: Total $4.2M, $420K/year ESTIMATED ANNUAL O&M: $35K per bus/ 350K total Service Area: Planning, Development, & Transportation Department/Program: Transfort TRANSPORTATION 30 | Page 7/15/2014 Project Location: Fort Collins Project Description: The funding of this project would provide the 20% local match needed to replace 40 heavy duty buses and add 10 new specialty buses over the next 10 years. This 20% or, $4.2 million, would be leveraged to receive $16.8 million of federal and state grant funding. Over the next ten years three-quarters of Transfort’s fleet will be beyond its useful life. The replacement of buses beyond their useful life will reduce maintenance expenses and ensure reliable service to the Transfort customer. Why is this Project Needed? With local match funding in place, Transfort can apply for federal funding to procure the needed vehicles. Oftentimes, federal grants require that local funds are already in place prior to the funding award and by ensuring that Transfort has access to local match funding, staff is free to seek out any and all grant opportunities. In turn, by not allowing Transfort’s fleet of vehicles to surpass its useful service life, the City of Fort Collins will reduce preventive maintenance costs by approximately $30,000 per vehicle per year or $1.5M over the span of the project. Additional Details: This project is requesting $4.2M over the next ten years to leverage local match funding for $16.8M in federal grant funding to purchase 50 replacement heavy duty vehicles. The project has the added benefit of saving in excess of $1.5M in preventive maintenance costs that would be incurred otherwise. T12 Continuation of BOB I Project-RECOMMENDED PROJECT TITLE: Arterial Intersection Improvements Fund ESTIMATED PROJECT COST: Total $7.5M, $750K/yr. ESTIMATED ANNUAL O&M: $2K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Fort Collins Project Description: This project would create a funding source to address the City’s highest priority safety and congestion problems at arterial intersections. Note: BFO Offer 1.7 is the last year appropriation of the BOB I funds. Typically, these projects have included landscaping and urban design improvements to intersections. The projects will be prioritized on a rigorous analysis of benefits (increased safety and reduced congestion for all modes of travel) and costs. Why is this Project Needed? A comprehensive Arterial Intersection Prioritization Study was completed in 2011 and identifies key improvement locations. Some of these projects were completed with BOB funding; this project would continue funding for the improvements. Additional Details: These projects have historically been very competitive in the Federal Grant programs. Leveraging of similar funds in the previous BOB tax measure more than doubled the available dollars. TRANSPORTATION 31 | Page 7/15/2014 T13 -RECOMMENDED PROJECT TITLE: Bridge Maintenance and Replacement ESTIMATED PROJECT COST: Total $20M ESTIMATED ANNUAL O&M: $0 Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Citywide Project Description: This project repairs and replaces deficient, sub-standard, and obsolete bridges within the Citywide network of 280+ bridges. Potential projects are prioritized using a triple bottom line approach. They include both small and large structures, and typically include bicycle, pedestrian and urban design improvements. Why is this Project Needed? The City’s network of bridges is aging and deteriorating. A dedicated source of funding is necessary to maintain the network to a safe and responsible standard. Other Related Projects: BFO Offer 1.21 is similar. T14-RECOMMENDED PROJECT TITLE: Southwest Annexation Road Improvements Fund ESTIMATED PROJECT COST: $5M ESTIMATED ANNUAL O&M: Service Area: Planning, Development and Transportation Department/Program: Streets Project Location: Southwest Annexation Area Project Description: This proposal establishes a fund to partner with southwest annexation area HOA’s and residents to help make needed improvements to roads not built to City standards and in need of repair or replacement. City Ordinance 182 (1998) states that, “except for minor maintenance needed to keep the streets in a safe condition, the City will not maintain substandard annexed streets until such time as the streets have been upgraded to comply with City standards”. Note: BFO Offer 25.19 is similar. Why is this Project Needed? Many substandard roads in the Southwest Annexation area are aging and in disrepair. HOA’s and residents struggle to collect funds adequate to make needed repairs and bring roads up to City standard. This fund could help establish public-private partnerships to accelerate much needed repairs to infrastructure in this area. TRANSPORTATION 32 | Page 7/15/2014 T15 PROJECT TITLE: Realigned Vine Drive II (New Vine Drive) from Lemay Avenue to Timberline Road ESTIMATED PROJECT COST: $8-12M ESTIMATED ANNUAL O&M: $30K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Realigned Vine Drive (New Vine Drive) from Lemay Avenue to Timberline Road Project Description: This project would construct a New Vine Drive on an alignment north of the existing Vine Drive as identified on the Master Street Plan and New Vine Drive Conceptual Design. The road is planned as a 4-lane arterial and is identified as an Enhanced Travel Corridor connecting the northeast portion of the City to downtown. Why is this Project Needed? A new alignment of Vine Drive is master planned to create separation between Vine Drive and the Union Pacific Railroad and limit impact to existing neighborhoods. The project is vital to maintaining connectivity and mobility for all modes of travel in the northeast part of Fort Collins. Other Related Projects: Lemay Avenue realignment and grade separation, New Vine between College and Lemay. T16 PROJECT TITLE: Trilby Road Improvements I – College Avenue to Lemay Avenue ESTIMATED PROJECT COST: $8M ESTIMATED ANNUAL O&M: $24K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Trilby Road Improvements from College Avenue to Lemay Avenue Project Description: This project would improve Trilby Road to 4-lane arterial standards as identified on the Master Street Plan from College Avenue to Lemay Avenue. Why is this Project Needed? This section of Trilby Road lacks key elements of the 4-lane arterial standard including bike lanes and sidewalks. T17 PROJECT TITLE: Trilby Road Improvements II – Lemay Avenue to Timberline Road ESTIMATED PROJECT COST: $12M ESTIMATED ANNUAL O&M: $36K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Trilby Road Improvements from Lemay Avenue to Timberline Road TRANSPORTATION 33 | Page 7/15/2014 Project Description: This project would improve Trilby Road to 4-lane arterial standards as identified on the Master Street Plan from Lemay Avenue to Timberline Road. Why is this Project Needed? This section of Trilby Road lacks key elements of the 4-lane arterial standard. This roadway serves as a critical connection in the southeast part of Fort Collins for neighborhoods, schools and parks. The roadway currently lacks adequate bicycle and pedestrian facilities. T18 PROJECT TITLE: Mulberry and Prospect Interchange -Gateway ESTIMATED PROJECT COST: $10M ESTIMATED ANNUAL O&M: $30K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Mulberry and Prospect Interchanges Project Description: The Colorado Department of Transportation (CDOT) has authorized the design of I-25 from SH 392 to SH 14 (Mulberry Street) including the Interchanges at Prospect and Mulberry. As part of the 2013/2014 Budget process funds were approved to design enhancement features to the CDOT design as well as gateway elements to the I-25 design. CDOT anticipates the construction of part or all and these improvements over the next 5 to 10 years. This project will provide construction funds to enhance the CDOT construction. This project will develop and construct critical gateway features including gateway signage and landscaping. Why is this Project Needed? This is a one-time opportunity to participate and influence the design of these gateway projects which will eventually be part of the City. Additional Details: The $10M cost assumes this project will be constructed with the interchange construction. Given the uncertainty of funding for the interchange improvements, this project could be reduced to $6M as a stand-alone signage and landscaping project that would interface with the eventual interchange improvements. T19 PROJECT TITLE: Prospect Road Corridor Improvements I – Taft Hill Road to the Poudre River ESTIMATED PROJECT COST: $ 22M ESTIMATED ANNUAL O&M: $ 66K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Prospect Road from Taft Hill Road to the Poudre River Project Description: This project would improve Prospect Road to 4-lane arterial standards with variations for context sensitivity from Taft Hill Road to the Poudre River (east of Timberline Road). Prospect is also TRANSPORTATION 34 | Page 7/15/2014 identified as an Enhanced Travel Corridor. Note: BFO Offer 18.2 is for the ETC planning element necessary to identify specific Prospect Corridor improvements. Why is this Project Needed? Prospect Road is a vital arterial road connection for Fort Collins, providing the most direct link from I-25 to Colorado State University (CSU) and the Midtown area. This section of Prospect lacks critical elements of a 4-lane arterial street including adequate lane widths, landscaped medians, bike lanes and adequate sidewalks. CSU’s master plan shows continued growth and significant infrastructure projects on the south side of campus, including a potential on-campus stadium. Other Related Projects: Prospect Road Improvements II – Poudre River to I-25 T20 PROJECT TITLE: Prospect Road Corridor Improvements II – Poudre River to I-25 ESTIMATED PROJECT COST: $7.5M ESTIMATED ANNUAL O&M: $23K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: East Prospect Road from the Poudre River to I-25 Project Description: This project would improve Prospect Road to 4-lane arterial standards with variations for context sensitivity from the Poudre River to I-25. Prospect is also identified as an Enhanced Travel Corridor. Why is this Project Needed: Prospect Road is a vital arterial road connection for Fort Collins providing the most direct link from I-25 to Colorado State University (CSU) and the Midtown area. Development and interchange improvements are planned at I-25 and Prospect. CSU’s master plan shows continued growth and significant infrastructure projects on the south side of campus. This section of Prospect Road was improved as part of Building Community Choices but was not widened to its ultimate four lane design as shown in the Master Street Plan. Other Related Projects: Prospect Road Improvements I – Poudre River to Taft Hill Road T21 PROJECT TITLE: East Harmony Road Improvements - Medians ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: $6K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: East Harmony Road from Boardwalk Road to Timberline Road Project Description: This project would add landscaped medians to East Harmony Road from Boardwalk to Timberline. TRANSPORTATION 35 | Page 7/15/2014 Why is this Project Needed? East Harmony lacks the standard landscaped medians in much of this section. Landscaped medians were recently installed on Harmony near the Lemay intersection. T22 PROJECT TITLE: East Harmony Road Improvements – College Avenue to Boardwalk Drive ESTIMATED PROJECT COST: $5.5M ESTIMATED ANNUAL O&M: $17K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: East Harmony Road Improvements from College Avenue to Boardwalk Drive Project Description: This project would improve East Harmony Road to the 6-lane arterial standard as identified on the Master Street Plan. Why is this Project Needed? This section is the final piece of East Harmony to complete the 6-lane cross section to I-25. This section lacks sidewalk on the south side. T23 PROJECT TITLE: Harmony Corridor Plan Implementation – Buffered Bike Lanes ESTIMATED PROJECT COST: $250K ESTIMATED ANNUAL O&M: $1K Service Area: Planning, Development, & Transportation Department/Program: FC Moves Project Location: Various locations along the Harmony Corridor Project Description: Installs buffered bike lanes along Harmony Road per the recommendations of the Harmony Corridor Plan. Buffered bike lanes are flat, painted lanes that include a hatched buffer area between the bike lane and the adjacent vehicle traffic. Consistent with the Harmony Enhanced Travel Corridor Plan, green pavement markings are included where appropriate. This project will result in 10 lane miles of improved bike lanes, from Shields to I-25. The cost accounts for an estimated $25K per lane mile which includes site preparation, old marking removal, signing, traffic control, mobilization, design and construction engineering. Why is this Project Needed? Harmony Road is a high speed, high volume roadway. The existing bike lanes can be enhanced by providing an additional striped buffer between the vehicle traffic and the bike lane. Other Related Projects: 5 other projects identified in the Harmony Corridor Plan TRANSPORTATION 36 | Page 7/15/2014 T24 PROJECT TITLE: Harmony Corridor Plan Implementation: Intersection Improvements including Queue Jumps ESTIMATED PROJECT COST: $10M ESTIMATED ANNUAL O&M: $30K Service Area: Planning, Development, & Transportation Department/Program: FC Moves Project Location: Harmony Road at signalized intersections Project Description: This project makes intersection improvements to provide pedestrian refuges, add turn lanes where warranted, and construct bus queue jumps along Harmony Road. Queue jumps are dedicated lanes at intersections that allow buses to avoid congestion at intersections. Why is this Project Needed? These intersection improvements were identified in the Harmony Corridor Plan and provide benefits to all modes of travel. These improvements allow transit service to operate more effectively on this busy corridor. Other Related Projects: Five other projects identified in the Harmony Corridor Plan T25 PROJECT TITLE: Downtown Circulator – Mason to Lemay ESTIMATED PROJECT COST: $4.2M ESTIMATED ANNUAL O&M: $1.2M Service Area: Planning, Development, & Transportation Department/Program: Transfort Project Location: Circulator Route connecting downtown area to the Lincoln Corridor and surrounding neighborhoods, likely via Linden, Buckingham, Lincoln and Lemay Streets Project Description: Project is identified as a Phase 1 service improvement in Transfort’s Strategic Operating Plan. Cost is based on high-tech electric buses and supporting infrastructure, several new stops, 20 minute frequencies (10 minute combined), bidirectional travel, and service hours of 11-7:30 p.m. Monday - Saturday. Why is this Project Needed? To connect the Lincoln Corridor’s new and existing and businesses to downtown via frequent, direct transit service. Other Related Projects: Lincoln Boulevard Improvements. TRANSPORTATION 37 | Page 7/15/2014 T26 PROJECT TITLE: High Priority, Small Capital Project Fund ESTIMATED PROJECT COST: Total $3M, $300K/year ESTIMATED ANNUAL O&M: $9K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Fort Collins Project Description: This project would create a fund for the application of solving small (<$100k), high priority safety and operational transportation needs. Note: BFO Offer 1.14 is similar. Why is this Project Needed? This fund would give the City the ability to quickly address small safety and transportation operation problems as they are discovered. Historically, unanticipated high accident or dangerous locations will emerge as travel patterns change. Examples of types of projects envisioned are: roadway striping for vehicles or bicycles, access and median changes, railroad crossing modifications, sidewalk changes, etc. COMMUNITY AND NEIGHBORHOOD LIVABILTY 38 | Page 7/15/2014 CNL1-RECOMMENDED PROJECT TITLE: Housing for Chronically Homeless (Homeward 2020) ESTIMATED PROJECT COST: $5M ESTIMATED ANNUAL O&M: $ Service Area: Sustainability Services Department/Program: Social Sustainability Project Location: TBD Project Description: This project would leverage funds by providing matching grant funding that will result in the construction of 125 units of permanent supportive housing for current homeless individuals. The project would be constructed and managed by the Fort Collins Housing Authority. Supportive housing is an innovative and proven solution to serve people who would not be able to stay housed without a wide range of supportive services. Affordable housing is combined with services to help people facing complex challenges to live with stability, autonomy and dignity. Supportive housing improves housing stability, employment, mental and physical health and reduces active substance use. People in supportive housing live more stable and productive lives. Housing stability and supportive services for these individuals has been proven to reduce other community costs in such areas as reduced emergency room use and reduced response needed by fire and police. Why is this Project Needed? Principle LIV 7 in City Plan states that the City envisions that “a variety of housing types and densities for all income levels shall be available throughout the Growth Management Area.” Inclusion of this project in the Building on Basics 2 package will assist in bringing this goal to fruition. Studies estimate there are over 3,000 homeless people in Larimer County. At least 250 of these individuals are chronically homeless, and nearly 1,000 are school-aged children. Our community lacks a sufficient supply of affordable housing. In June 2011 the Colorado Division of Housing released a report on rent burdened households in Colorado. At that time, there were less than 22,000 affordable rental units in Larimer County for households earning $25,000 or less per year and more than twice as many households (roughly 45,700) at that income level. Nearly 54% of renters spend more than 30% of their income for housing. Larimer County is cited as the third most rent-burdened county in the state. When housing costs rise over 30% of a household’s income, the possibility of becoming homeless significantly increases. The Murphy Center for Hope provided services to more than 1,700 (unduplicated) people in the last year and regularly provides services to more than 150 homeless or near homeless persons per day. Additionally, The FCHA’s waiting list currently has over 1,900 families/individuals waiting for affordable housing. Other Related Projects: Redtail Ponds is a 60-unit apartment community that will provide 40 units of permanent supportive housing for homeless adults with one or more disability and on-site services ranging from job training to case management. An additional 20 units will provide housing for low income individuals. The Single room occupancy (SRO) program provides 27 rooms for homeless individuals in Fort COMMUNITY AND NEIGHBORHOOD LIVABILTY 39 | Page 7/15/2014 Collins. Resident Managers live on-site and provide a variety of programming to assist residents transitioning from homelessness to a more stable living arrangement. Referrals are made from Catholic Charities Mission and post shelter counseling is provided. Additional Funding Details: The total cost estimate for this project is $27,250,000. Low Income Housing Credits would cover $19,075 M. This leaves a gap of $8,175,000 between the Low Income Tax Credit source of funds and the project cost in today’s dollars. Grant funds from the City and State CDBG and HOME program can be sought to fill this gap in addition to the BOB 2.0 contribution, or additional grant funds could increase the number of units that could be built. Total O & M for this project is 1.9M annually, however the City is not committing to this cost and only recommends moving forward with a commitment from other agencies to support this cost. CNL2 Continuation of BOB I Project-RECOMMENDED PROJECT TITLE: Americans with Disabilities Act (ADA) Sidewalk Compliance/Pedestrian Plan/Arterial Pedestrian Crossings ESTIMATED PROJECT COST: Total 10 years $30.9M at $3.3M/Year ESTIMATED ANNUAL O&M: $24K Service Area: Planning, Development, & Transportation Department/Program: Engineering Project Location: Fort Collins Project Description: This project proposes to fund the Pedestrian Sidewalk and ADA Compliance Program. To date, the sidewalk program has been funded by the 2005 Building on Basics (BOB) ballot initiative which prescribed the installation of pedestrian improvements citywide to eliminate hazards and remove obstacles. In 2016, the BOB funding source will no longer be available which will require the use of additional funds. Based on the 2013 assessment, a total program cost has been quantified into a 30-year program. With the $134 million Pedestrian Sidewalk and ADA Compliance Program needs, a sustainable and predictable revenue source is recommended to implement the overall cost of construction of a 30-year compliance program. Projected costs will change over time due to inflation, construction of sidewalks by adjacent property owners and private development, and project scheduling based on construction of sidewalks by other City departments (Streets and Engineering Capital Projects Departments). Note: BFO Offer 1.6 is similar. This offer: • Supports the recently updated Transportation Master Plan. Approximately $300,000 per year through 2015 has been allocated for pedestrian improvement projects. • Seeks to implement the recommendations from the pedestrian needs assessment completed in 2013 which identifies missing or substandard sidewalks and ramps that do not comply with the American Disabilities Act (ADA). • The Americans with Disabilities Act (ADA) required a transition plan be in place by July 26, 1992, that provided for the removal of pedestrian barriers. Any structural modifications COMMUNITY AND NEIGHBORHOOD LIVABILTY 40 | Page 7/15/2014 were to be completed by January 26, 1995. Without funding for a installing the required pedestrian facilities, the City of Fort Collins will continue to be in violation of ADA without a proactive effort toward compliance. Noncompliance puts the City at risk of losing federal grant funds. • Constructs missing sidewalks and ramps. • Overall cost of compliance – 30-year compliance target • Supports prioritization of infrastructure management software. Why is this Project Needed? The City is not in compliance with the Americans with Disabilities Act. The Pedestrian Plan is unfunded. CNL3-RECOMMENDED PROJECT TITLE: Americans with Disabilities Act Bus Stop Improvements ESTIMATED PROJECT COST: Total $1M, $100K/yr. ESTIMATED ANNUAL O&M: $28K Service Area: Planning, Development, & Transportation Department/Program: Transfort Project Location: Fort Collins Project Description: This project would improve 10 bus stops per year to meet ADA accessibility requirements. There are currently over 200 bus stops within the Transfort system that have been determined to be non-ADA accessible. Why is this Project Needed? Currently there are over 200 bus stops within the Transfort system that do not meet Americans with Disabilities Act (ADA) access requirements. This funding would allow Transfort to upgrade 10 bus stops per year to be ADA accessible and improve mobility options for disabled residents of Fort Collins. Other Related Projects: This project is related to the ADA Sidewalk Compliance program to bring all pedestrian facilities up to ADA accessibility requirements. Additional Details: This project is requesting $100,000 per year to improve a minimum of 10 bus stops per year for the duration of the funding source. Transfort staff will continually seek opportunities to leverage this limited local funding source to receive additional funding from state and federal grants to advance the improvements of deficient bus stops. COMMUNITY AND NEIGHBORHOOD LIVABILTY 41 | Page 7/15/2014 CNL4-RECOMMENDED PROJECT TITLE: Lincoln Neighborhood Projects ESTIMATED PROJECT COST: Total $850K ESTIMATED ANNUAL O&M: $3K Service Area: Planning, Development, & Transportation Department/Program: FCMoves Project Location: Buckingham, Alta Vista, and Andersonville Neighborhoods Project Description: This project will fund the design and construction of ten neighborhood projects identified in the Lincoln Corridor Plan that were identified through substantial outreach to the neighborhoods during the planning process. The projects are generally located within the Northside Neighborhoods (Buckingham, Alta Vista, Andersonville, San Cristo/Via Lopez.) These neighborhoods are historic, lower-income, minority neighborhoods with substandard infrastructure. The list of projects for 2015 address infrastructure deficiencies, safety, and connectivity; the projects for 2016 improve neighborhood livability. Projects are listed below. 2015 Projects: 1. East Vine Drive: transit stop improvements (Project B in the Lincoln Corridor Plan) 2. Lemay Avenue: Push button pedestrian signal and crosswalk (B) 3. Lemay Avenue: New sidewalks (D) 4. Lemay Avenue: Interim asphalt sidewalks (E) 5. Buckingham Neighborhood: New sidewalks (I) 2016 Projects: 1. Brewery Destination: Wayfinding (A) 2. Alta Vista, Andersonville, Buckingham Neighborhoods: Gateway/Interpretive Signage/Entrance Monument (F) 3. Andersonville Neighborhood: New neighborhood park elements at Streets Facility (G) 4. Buckingham Neighborhood: Signage to reduce impacts of cut-through traffic (H) 5. Buckingham Neighborhood: Alley improvements (I) Note: BFO Offer 17.2 is similar. Why is this Project Needed? These projects will address existing deficiencies, enhance livability, and celebrate the historical and cultural heritage of our Northside neighborhoods. The projects were well supported by the community during the Lincoln outreach process. A variety of City departments (e.g. FCMoves, Planning, Engineering, Traffic Operations, Parks, Transfort, and Streets) are committed to collaborating on the implementation of these projects. In addition, staff will continue to work with the neighborhoods for final prioritization. COMMUNITY AND NEIGHBORHOOD LIVABILTY 42 | Page 7/15/2014 CNL5-RECOMMENDED PROJECT TITLE: Sustainable Child Care Center ESTIMATED PROJECT COST: $2M ESTIMATED ANNUAL O&M: $825K Service Area: Sustainability Services Department/Program: Social Sustainability Project Location: TBD, preferably in Mid-town or the Harmony Corridor where there are large concentrations of employees and residential neighborhoods nearby, and easy access to transit. Project Description: There is a growing need for a new child care center in South Fort Collins serving low income families. The need is for a facility of approximately 10,000 sq. ft. in size, with a 12,000 sq. ft. playground that would accommodate 80-100 infants and children. The center would provide subsidized fees and flexible hours, including weekends, to accommodate families who work alternative hours or are in service occupations. While the City would own the facility, it would be managed by a private (non-profit) operator. This project has the opportunity to be a partnership with other local agencies and/or organizations (Teaching Tree, LaFamilia/Family Center, Teaching Tree, FCURA, PSD, etc.) including matching funding. A site location and project scope study/analysis needs to be undertaken. Why is this Project Needed? There are few affordable, quality child care facilities in south Fort Collins although the occurrence of low income and families below poverty is shifting southward. There are over 200 families on wait lists for the childcare centers that do provide subsidized childcare. There has been a decline in the number of centers that accept CCAP subsidized payments. The City’s “Snapshot Report on Early Childhood Care and Education” identified finding a “New Child Care Centers in South Fort Collins” as a “PRIORITY”. The need for a new child care center in the Mid-Town area was discussed by City Council as part of the recent deliberations on public funding of the Foothills Mall redevelopment. CNL6-RECOMMENDED PROJECT TITLE: Implementing Nature in the City ESTIMATED PROJECT COST: $3-5 Million ESTIMATED ANNUAL O&M: $100K Service Area: Sustainability Services Department: Environmental Services Project Location: Throughout the City Project Description: Initiated in 2014, Nature in the City is a vision and strategic plan for incorporating nature into the City’s increasingly urban environment. To achieve this vision, this project will allow for the restoration of 20-50 sites and for the acquisition of 6-10 parcels. Restoration will include the conversion of stormwater ponds, parks and other neighborhood open spaces to include natural spaces that provide habitat, therapeutic benefits associated with nature, and opportunities for play. The City will partner with neighborhoods, businesses, and other City departments, including Natural Areas, Parks, and Stormwater, to achieve these goals. COMMUNITY AND NEIGHBORHOOD LIVABILTY 43 | Page 7/15/2014 Acquisition will include parcels that provide key linkages to the broader corridors of the City, whether for habitat or recreation, as well as linking to existing patches of open space. Acquisition will also include sites with high wildlife value or sites that have the potential to provide high value. Priority for restoration of sites and acquisition will be based on ensuring all residents have access to nature close to home as well as how the sites contribute to the overall open space network. Why is this Project Needed? The City is transitioning from a large, suburban town to a small, urban city. The Fort Collins’ population is predicted to grow from approximately 150,000 today to 250,000 residents. As this transition occurs, it is critical that we protect access to nature and the key open spaces that define our community. This project supports the restoration and acquisition of lands beyond the scope of the Open Space tax dollars priorities; additional capital dollars invested now would further this effort in a more timely manner. Other efforts that highlight the need for this effort include the following: • Preserving access to nature and the City’s sense of place is included in four chapters of the City’s Strategic Plan (Community and Neighborhood Livability, Culture and Recreation, Environmental Health, and Economic Health). • The Midtown Urban Design Plan calls for providing open spaces (both small and large) within each character district. • The Plug in to Nature study, by Larimer County, found that the biggest barrier for accessing nature is time. Providing nature closer to home ensures more time in nature once you get there. • A California study of 3,000 teenagers found that these kids had significantly lower Body Mass Index (BMI) when in close proximity to nature or open spaces. CNL7-RECOMMENDED PROJECT TITLE: Investments in Declining Neighborhoods ESTIMATED PROJECT COST: $3.5M ESTIMATED ANNUAL O&M: $175K Service Area: Sustainability Services Department: Social Sustainability Project Description: This proposal is to support public investment in older neighborhoods identified as declining. It includes funding to provide the following: 1. Streetscapes that provide a coordinated approach to the design and management of streets in these neighborhoods that create visually appealing public spaces involving the visual and pedestrian environment of their streets. This could include tree-lined streets and sidewalks, other landscaping along street edges, and landscaped medians in arterial streets. These streetscapes may also encompass other various urban design elements. 2. Low or no cost loans for housing reinvestment in an effort to infuse private funds into rehabilitation of these declining neighborhoods. 3. Economic development tools such as incentives to encourage the development of neighborhood businesses and services to provide increased access and activity within these neighborhoods. 4. Support City involvement in neighborhood organizing to engage residents in their community. Revitalization efforts must include the full range of neighborhood stakeholders in the development and implementation of plans focused on improving these communities. COMMUNITY AND NEIGHBORHOOD LIVABILTY 44 | Page 7/15/2014 Why is this Project Needed? Fort Collins has grown dramatically. We have added over 100,000 citizens since 1970, which has required rapid periods of housing construction. Since that time our understanding of what constitutes a great, healthy neighborhood has grown with the help of the various iterations of City Plan. We realize that great neighborhoods have the following characteristics: • Great building design and scale, including proportionality that creates interesting visual experiences; • Accessibility to various modes of transportation that allow residents to safely and reliably connect with the larger community; • Fosters social interactions and develops a sense of community and neighborliness; • Promotes security from crime and is made safe for children and other users; • Promotes a sense of pride and community engagement among its residents. Over time, and due to a variety of circumstances, some neighborhoods have declined in appearance and maintenance. Crime has increased and they lack neighborhood gathering places, lack access to local amenities and are far from needed goods and services. In some places the housing stock is extremely dated and has not been maintained. In some of these neighborhoods there are no places for children to safely play except in streets, and pride of place does not exist among neighborhood residents. Many of these neighborhoods have had no public investment for decades. Unfortunately, they are also neighborhoods where many of our low income, senior, and disabled residents live. Some of the housing is owned by landlords who also have not invested in housing improvements in decades, leaving substandard housing which may also be unsafe. For long-term sustainability, Fort Collins must come together around comprehensive strategies to improve the quality of life in our declining neighborhoods and enhance their competitive position in the housing market, making them neighborhoods of choice and private investment. Well-planned, well-executed neighborhood development strategies send a powerful signal to both existing residents and newcomers that the city cares about its neighborhoods. In addition, lack of public investment in low income neighborhoods raises questions of equity and social justice within our City. In 2012 The Department of Housing and Urban Development (HUD) required Fort Collins to assess our impediments and observations to fair housing. The first observation reported to HUD is that some residents perceive an inequitable distribution of resources, including the perception that more affluent neighborhoods receive better services and attention from the City. World class communities promote equitable public and private investments and make housing and neighborhood investments that create a path to social and economic mobility for all residents. In an effort to ensure that all Fort Collins neighborhoods are welcoming and vibrant for their residents, the City has an obligation to reinvest and revitalize these neighborhoods and make sure they do not decline further. 1 Num Page # Project BFO Offer Strategic Plan Broad Impact Annual O&M Culture and Recreation CR 1 1 Southeast Community Creative Center 10,000 200 11,802 CR 2 1 Water Sustainability Improvements for Parks and Golf x 4,200 10 4,290 CR 3 2 Renovation of the Historic Carnegie Building 2,000 10 2,090 CR 4 3 Completion of the Gardens on Spring Creek x 2,000 20 2,180 CR 5 4 Recreational Trail Enhancements x x 250 - 7,250 78 953 - 7,953 CR 6 5 EPIC Pool Improvements x 2,000 2,000 CR 7 6 Preserving our Heritage: City Park Train; Club Tico Renovation; Fire Museum 1,000 25 1,225 CR 8 6 Velo and Fitness Park 2,100 162 3,559 Sub-Total Culture and Recreation 23,550 - 30,550 505 28,099 - 35,099 Sub-Total Recommend Culture and Recreation 20,450 - 27,450 318 23,315 - 30,315 Economic Health ECH 1 8 Downtown Restroom x x 350 350 ECH 2 8 Quiet Zone Implementation I-(Downtown /CSU - 16 crossings + 2 ped crossings) 1,500 160 2,941 ECH 3 9 Quiet Zone Implementation II- (Drake to Trilby - 5 crossings) 1,250 50 1,700 ECH 4 9 Mason Street Enhancement x 3,000 - 5,000 9 3,081 - 5,081 ECH 5 10 East Mulberry Corridor planning, prelim design, and ROW purchase x x 300 300 ECH 6 10 Linden Street Renovations x 2,000 - 3,000 12 2,108 - 3,108 ECH 7 11 Willow Street Improvements 3,500 11 3,595 ECH 8 11 Parking Infrastructure Fund x x 5,000 400 8,603 ECH 9 12 Downtown Maintenance Shop x 3,500 3,500 ECH 10 13 Median and Streetscape Enhancement & Renovations 1,000 - 2,000 90 1,807 - 2,807 ECH 11 13 Community Marketplace 9,000 125 10,126 Sub-Total Economic Health 30,400 - 34,400 856 38,112 - 42,112 Sub-Total Recommend Economic Health 21,400 - 25,400 731 27,986 - 31,986 Capital Cost NPV of Capital Cost and 10 Years O&M* Potential Capital Improvement Tax Projects By Outcome ALL VALUES ARE IN THOUSANDS (Gray = Not Recommended) *O&M inflated at 2.8% for 10 years and discounted to PV at 4.8% and added to Capital 7/15/2014 Version 6 2 Num Page # Project BFO Offer Strategic Plan Broad Impact Annual Capital Cost O&M NPV of Capital Cost and 10 Years O&M* Potential Capital Improvement Tax Projects By Outcome Environmental Health ENV 1 15 Climate Action Projects 2,000 2,000 ENV 2 15 Community Organics Composting and Recycling Facility x 2,500 70 3,131 ENV 3 16 Downtown Poudre River Enhancements x x 13,800 75 14,476 Sub-Total Environmental Health 18,300 - 18,300 145 19,606 - 19,606 Sub-Total Recommend Environmental Health 18,300 - 18,300 145 19,606 - 19,606 High Performing Government HPG 1 18 Parking Garage & Retail Space x 10,000 - 11,000 300 12,702 - 13,702 HPG 2 18 Vehicle Storage 3,000 65 3,586 HPG 3 19 Building and Development Services 6,000 - 7,000 65 6,586 - 7,586 HPG 4 20 City Hall Administration Building 40,000 - 50,000 500 44,504 - 54,504 Sub-Total High Performing Government 59,000 - 71,000 930 67,378 - 79,378 Sub-Total Recommend High Performing Government 10,000 - 11,000 300 12,702 - 13,702 Safe Community SC 1 21 Regional Training Facility x 10,500 320 13,383 SC 2 21 Computer Aided Dispatch/Record Management System Upgrades x 2,000 2,000 SC 3 22 Land for Police Maintenance Facility x 800 - 1,100 5 845 - 1,145 SC 4 22 Police District 1 Lease Buy Out 500 500 SC 5 23 Campus West Policing Substation 460 486 4,838 SC 6 23 HALO Camera and Other Camera Monitoring 1,090 1,090 SC 7 24 Police Vehicle Maintenance Facility 6,500 - 7,500 280 9,022 - 10,022 Sub-Total Safe Community 21,850 - 23,150 1,091 31,678 - 32,978 Sub-Total Recommend Safe Community 14,260 - 14,560 811 21,566 - 21,866 ALL VALUES ARE IN THOUSANDS (Gray = Not Recommended) *O&M inflated at 2.8% for 10 years and discounted to PV at 4.8% and added to Capital 7/15/2014 Version 6 3 Num Page # Project BFO Offer Strategic Plan Broad Impact Annual Capital Cost O&M NPV of Capital Cost and 10 Years O&M* Potential Capital Improvement Tax Projects By Outcome Transportation T 1 25 Vine & Lemay Grade Separated Crossing Design, ROW and Construct x x 25,000 60 25,540 T 2 25 Realigned Vine Drive - College to Lemay x 8,000 - 12,000 30 8,270 - 12,270 T 3 26 South Timberline Road Improvements 12,000 36 12,324 T 4 26 West LaPorte Avenue Improvements 2,500 8 2,568 T 5 26 Lincoln Avenue Improvements x x 12,000 36 12,324 T 6 27 Jefferson Street Improvements x 7,500 24 7,716 T 7 27 College Midtown Transportation Plan Implementation x x 10,000 33 10,297 T 8 28 Bike Plan Implementation x 5,000 15 5,135 T 9 28 Bike/Ped Grade Separated Crossings x 10,000 30 10,270 T 10 29 Start up for Bike Share x 505 150 1,856 T 11 29 Bus Fleet Replacement x 4,200 350 7,353 T 12 30 Arterial Intersection Improvements x 7,500 2 7,520 T 13 31 Bridge Maintenance and Replacement x 20,000 20,000 T 14 31 Southwest Annexation Road Improvements Fund x 5,000 5,000 T 15 32 Realigned Vine Drive-Lemay to Timberline x 8,000 - 12,000 30 8,270 - 12,270 T 16 32 Trilby Road Improvements I-College to Lemay 8,000 24 8,216 T 17 32 Trilby Road Improvements II- Lemay to Timberline 12,000 36 12,324 T 18 33 Mulberry & Prospect I-25 Interchange Enhancements x 10,000 30 10,270 T 19 33 Prospect Road Improvements I-Taft to Poudre River x 22,000 66 22,595 T 20 34 Prospect Road Improvements II- Poudre River to I-25 7,500 23 7,703 ALL VALUES ARE IN THOUSANDS (Gray = Not Recommended) *O&M inflated at 2.8% for 10 years and discounted to PV at 4.8% and added to Capital 7/15/2014 Version 6 4 Num Page # Project BFO Offer Strategic Plan Broad Impact Annual Capital Cost O&M NPV of Capital Cost and 10 Years O&M* Potential Capital Improvement Tax Projects By Outcome T 21 34 E. Harmony Road Improvements-Medians 2,000 6 2,054 T 22 35 E. Harmony Road Improvement- College to Boardwalk 5,500 17 5,649 T 23 35 Harmony Plan Implementation - Buffered Bike Lanes 250 1 257 T 24 36 Harmony Plan Implementation - Intersection Improvements Including Queue Jumps 10,000 30 10,270 T 25 36 Downtown Circulator - Lincoln Avenue x 4,200 1,200 15,010 T 26 37 High Priority, Small Capital Project Fund 3,000 9 3,081 Sub-Total Transportation 221,655 - 229,655 2,245 241,874 - 249,874 Sub-Total Recommend Transportation 129,205 - 133,205 774 136,175 - 140,175 Community and Neighborhood Livability CNL 1 38 Housing for Chronically Homeless(Homeward 2020) 5,000 5,000 CNL 2 39 ADA Sidewalk Compliance / Ped Plan / Arterial Ped Crossings x x 30,900 24 31,116 CNL 3 40 Bus Stop Installation and Enhancement-ADA x 1,000 28 1,248 CNL 4 41 Lincoln Neighborhood Projects x 850 3 877 CNL 5 42 Sustainable Child Care Center 2,000 - 2,500 825 9,432 - 9,932 CNL 6 42 Implementing Nature in the City 3,000 - 5,000 100 3,901 - 5,901 CNL 7 43 Investments in Declining Neighborhoods 3,500 175 5,076 Sub-Total Community and Neighborhood Livability 46,250 - 48,750 1,155 56,650 - 59,150 Sub-Total Recommend Community and Neighborhood Livability 46,250 - 48,750 1,155 56,650 - 59,150 Total 421,005 - 455,805 6,926 483,397 - 518,197 Total Recommended 259,865 - 278,665 4,233 298,000 - 316,800 ALL VALUES ARE IN THOUSANDS (Gray = Not Recommended) *O&M inflated at 2.8% for 10 years and discounted to PV at 4.8% and added to Capital 7/15/2014 Version 6 2014 Forecast Sales Tax* Mall Dedicated New** Total Sales Tax 2014 Budget Use Tax*** Annual Total Base $ 5,621,327 $ 941,600 Projections 2016 $ 5,905,907 $ 252,079 $ 6,157,985 $ 979,641 $ 7,137,626 2017 $ 6,053,554 $ 260,014 $ 6,313,568 $ 999,233 $ 7,312,802 2018 $ 6,204,893 $ 268,108 $ 6,473,001 $ 1,019,218 $ 7,492,220 2019 $ 6,360,016 $ 276,364 $ 6,636,380 $ 1,039,602 $ 7,675,982 2020 $ 6,519,016 $ 284,786 $ 6,803,801 $ 1,060,395 $ 7,864,196 2021 $ 6,681,991 $ 293,375 $ 6,975,367 $ 1,081,602 $ 8,056,969 2022 $ 6,849,041 $ 302,137 $ 7,151,178 $ 1,103,234 $ 8,254,412 2023 $ 7,020,267 $ 311,073 $ 7,331,340 $ 1,125,299 $ 8,456,640 2024 $ 7,195,774 $ 320,189 $ 7,515,963 $ 1,147,805 $ 8,663,768 2025 $ 7,375,668 $ 329,486 $ 7,705,155 $ 1,170,761 $ 8,875,916 Total $ 66,166,127 $ 2,897,611 $ 69,063,738 $ 10,726,792 $ 79,790,530 *Sales Tax Forecast Based on updated projections used for 2015/2016 BFO plus 2.5% Growth Rate in 2017-2025 **Based on Mall Model *** Use Tax - 2% Growth Rate BOB II Sales and Use Tax Projections IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) WW Water Quality 8.3 8.5 7.8 7.5 8.0 8.9 8.7 8.0 8.3 8.3 WW Water Reclamation 39.4 37.7 36.6 36.1 35.9 35.6 35.0 33.2 32.2 32.5 Storm drainage Stormwater Administration 12.0 11.8 11.4 11.6 11.5 11.4 11.4 11.5 12.0 11.7 Stormwater Operations 27.7 25.5 26.3 27.3 29.5 30.4 29.3 29.0 28.1 31.4 Golf Golf Administration 1.9 1.7 1.7 1.7 1.7 0.9 0.8 0.8 0.7 0.7 Golf Operations 20.4 20.4 19.8 18.9 20.0 20.5 21.2 20.8 19.6 20.2 Total City of Fort Collins 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 1,560.0 Note: Full time equivalents are based on filled positions using hours worked, excluding overtime, but including vacation, sick and holiday 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 2013 Population estimate per City of Fort Collins Planning Office--151,330 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, 2013 Includes all governmental activities outstanding debt supported by general property taxes less available debt service monies. Investment earnings 2,434 3,719 7,072 15,279 9,583 4,727 2,585 2,919 2,227 466 Sale of land & equipment 1,535 244 - - - - - - - - Other miscellaneous 1,102 1,022 2,130 787 1,839 1,792 1,379 1,498 1,613 808 Transfers (5,927) (6,405) (6,670) (6,900) (11,820) (10,947) (13,636) (13,486) (15,837) (6,383) Total business-type activities (855) (1,420) 2,532 9,167 (398) (4,428) (9,671) (9,069) (11,996) (5,109) Total primary government 98,187 105,399 125,254 132,354 141,161 111,533 112,724 136,985 149,257 158,920 Change in net position Governmental activities 22,738 56,745 32,072 34,295 22,902 7,181 14,034 32,934 55,001 60,104 Business-type activities 25,118 31,383 39,660 35,476 24,648 13,088 17,833 21,496 30,045 28,908 Total primary government $ 47,855 $ 88,128 $ 71,732 $ 69,771 $ 47,549 $ 20,270 $ 31,867 $ 54,429 $ 85,047 $ 89,012 Totals may not add due to rounding $ 256,035 $ 3,719,476 $ 372,046 Maintenance, Mitigation & Improvement 8,977 - - - - - 8,977 Traffic calming 485,124 - - - - - 485,124 Street Oversizing - - - - - 11,183,068 11,183,068 Transportation - - - - - 169,735 169,735 Total Committed 646,470 - - - - 37,141,796 37,788,266 Assigned: Affordable housing 257,690 - - - - - 257,690 Camera radar 876,506 - - - - - 876,506 Capital projects - - - 9,126,254 - 500,000 9,626,254 DT Parking Plan - - 557,597 - - - 557,597 Encumbrances 4,459,009 - 650,120 - - 3,414,561 8,523,690 Harmony Road - - 6,112,027 - - - 6,112,027 Manufacturer Use Tax Rebate 345,000 - - - - - 345,000 Operations - - 473,544 - - 421,532 895,076 Police department 94,407 - - - - - 94,407 Recreation - - - - - 266,330 266,330 Road Improvements 4,300,000 - - - - - 4,300,000 Cultural, Park, Rec & Enviroment - - - - - 3,977,146 3,977,146 Transportation - - 5,944,795 - - - 5,944,795 Waste Innovation Program 70,847 - - - - - 70,847 Total Assigned 10,403,459 - 13,738,083 9,126,254 - 8,579,569 41,847,365 Unassigned: 29,012,017 - - - (7,750,554) (121,545) 21,139,918 Total Fund Balances (Deficit) $ 60,119,919 $ 12,800,226 $ 14,989,371 $ 21,038,065 $ (1,494,512) $ 62,411,953 $ 169,865,022 (Decrease) in claims payable - - - - Increase (decrease) in intergovernmental payable 6,000 - - - (Decrease) in unearned revenue - - - - Net cash provided (used) by operating activities $ 6,401,702 $ 6,258,752 $ 8,391,647 $ 9,251,911 Noncash investing, capital, and financing activities: Capital contributions - 1,841,498 - - Reconciliation of cash and cash equivalents to statement of net position: Cash and cash equivalents 5,352,879 7,209,516 3,586,625 2,275,455 Restricted Assets - cash and cash equivalents - 268,218 242,301 521,700 $ 5,352,879 $ 7,477,734 $ 3,828,926 $ 2,797,155 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.