HomeMy WebLinkAboutMemo - Mail Packet - 8/14/2018 - Memorandum From Travis Storin Re: 2017 Citizens Financial ReportJOURNEY TO PERFORMANCE EXCELLENCE
CITIZENS’ FINANCIAL REPORT
2017
FORT COLLINS, COLORADO
FISCAL YEAR ENDING DECEMBER 31, 2017
CONTENTS
Letter from the City Manager & CFO .....................1
Meet Fort Collins ........................................................2
About the City Government Organization ..........3
Customer-focused Excellence ...............................4
2017 Snapshot: Excellence in Action ....................6
Fort Collins by the Numbers ...................................7
Fort Collins Financial Results ...........................10-11
Revenues .....................................................................12
Expenses .....................................................................13
Treasury Administration ..........................................15
Capital Assets ........................................................... 16
Glossary ......................................................................17
The purpose of this report is to provide an overview of the
financial position and operations of the City of Fort Collins, as
reported in the City’s Comprehensive Annual Financial Report
(CAFR), along with other information of interest. The financial
information presented is unaudited and in a summarized and
condensed form, and does not substitute for the City’s CAFR.
The City’s CAFR is prepared in conformity with generally
accepted accounting principles (GAAP). Included in the CAFR
is the Independent Auditor’s Report by RSM US LLP on the
general purpose financial statements of the City. This report
summarizes more than 200 pages of the CAFR’s financial and
statistical data. The financial statements condense information
of all funds included in the “Total Primary Government.”
GAAP requires certain financial presentation and disclosures
which are omitted in this report. As a result, the Balance
Sheet and Income Statement presented here are not in strict
conformity with GAAP. The City’s CAFR has received awards
for outstanding financial reporting from the Government
Finance Officers Association. The CAFR and the City Manager’s
Budget are available on the City’s website, fcgov.com/finance.
ABOUT THIS REPORT
Fort Collins Residents,
Perhaps the highest duty entrusted to your local
government is the stewardship and custody of
the public’s resources, in particular its financial
resources. With this spirit of trust and transparency
in mind, we consider it vital that citizens are kept
informed and updated on the status of the City’s
finances. We’re proud to report that our strong
local economy, prudent fiscal management, and
healthy fund balances all position us well for the
challenges that the future holds. We maintain
an Aaa credit rating with Moody’s, a designation
that only 4 percent of governments receive.
It is thus our privilege to present to you the City
of Fort Collins 2017 Citizens’ Financial Report for
the fiscal year. This report is one part of the City
organization’s collective focus on accountability,
transparency and responsiveness to the
individuals and populations we serve. We hope
this report provides you an opportunity to learn
and participate in the City’s financial activities
in an easy-to-understand, concise manner.
This report includes condensed and simplified
information from the 2017 Comprehensive Annual
Financial Report (CAFR). It is important to note that
this report is unaudited and is presented on a non-
Generally Accepted Accounting Principles (GAAP)
basis. It contains condensed financial information
and does not provide all of the necessary financial
statements and note disclosures required by
GAAP. This document includes information on the
Fort Collins Urban Renewal Authority, a legally
separate, blended component unit of the City which
is therefore included in the City’s governmental
activity figures. It excludes discrete component
units and fiduciary fund information. The CAFR is a
more detailed and complete financial presentation
which is prepared in conformity with GAAP and
is audited by the City’s independent auditors.
This year’s theme is Journey to Performance
Excellence. Excellence is one of the six core
values adopted by the City’s professional staff.
In 2017, the City received the Malcolm Baldrige
National Quality Award, recognizing its systems-
based approaches, measurement tools, customer
focus and more. While receiving the award was a
tremendous honor and recognizes all the progress
we’ve made, we look forward to continuing our
excellence journey and serving the Fort Collins
community in high-performing and innovative ways.
We would like to thank the hard-working staff
of the Accounting and Treasury department, the
team responsible for producing this report and
the CAFR. Their commitment to accountability
and integrity provides a great service to the
Fort Collins community. We invite you to seek
more in-depth information online. The CAFR,
Biennial Budget, and other detailed reporting
are available online at fcgov.com/finance. The
City’s website also includes information about
2 CITIZENS’ FINANCIAL REPORT 2017
Fort Collins is recognized by various national
organizations and magazines as one of the best
places to live in the nation. Incorporated in 1873
and located in Northern Colorado, Fort Collins is
home to Colorado State University (CSU) and an
outstanding public school system, several large
high-tech employers and leading businesses
in the craft brewing industry. The community
offers exciting recreational opportunities,
unique cultural offerings and amenities, and is a
regional center for employment and commerce.
As with many cities that house a large university,
the economy and culture of Fort Collins are
closely tied with CSU. Both the university and
the city have grown considerably in population
in recent history. With 7,829 employees, CSU
was the largest employer in Fort Collins in 2017.
Despite the vibrancy and economic stability
the community enjoys, City leadership has
several challenges to navigate in coming years.
The City is launching City Plan to help shape
the community’s vision for Fort Collins in the
next 20 years. City Plan will address land use,
transportation and transit, and many other
topics. The Keep Fort Collins Great sales tax,
which is 0.85 percent of taxable sales, or $27.6
million of 2017 revenues, is scheduled to expire
December 31, 2020. Finally, the community
has set ambitious goals around Climate Action
Planning that will require thoughtful planning
in order to achieve while still maintaining
economic vitality and social health.
QUICK FACTS
• Estimated Population: 171,100
City of Fort Collins, March 1, 2018
• Unemployment Rate: 2.5%
Bureau of Labor Statistics Occupational Employment
and Wage Estimates, December 2017
• Median Age: 29.3
American Community Survey 5-Year Estimates, 2011-2015
• Median Household Income: $55,647
American Community Survey 5-Year Estimates, 2011-2015
• Education Level (approximate percentage
of population with completion of 4 or more
years of college education): 52.5%
American Community Survey 5-Year Estimates, 2011-2015
Meet Fort Collins
TOP TEN EMPLOYERS BY HEADCOUNT
Colorado State University Education 7,829
Poudre R-1 School District Education 4,394
UC Health: Poudre Valley Hospital Healthcare 4,288
City Of Fort Collins Government 1,992
Larimer County Government 1,855
Broadcom (Avago) Analog Electronics 1,244
Woodward Inc. Aerospace 1,201
Employment Solutions Personnel Staffing 868
Otter Products, LLC Electronics Accessories 826
Department Of Agriculture Government 789
CITY OF FORT COLLINS 3
CITY LEADERSHIP
Fort Collins is a home rule city with a Council/
Manager form of government. The Council is
made up of six district councilmembers who
are elected on a non-partisan basis for a four-
year term and a Mayor who is elected at-large
on a non-partisan basis for a two-year term.
The Council appoints the City Manager, the City
Attorney and the Municipal Judge, who in turn
manage the professional municipal organization.
CITY SERVICES
The Fort Collins municipal organization
provides a full range of services, including:
• Police
• Fire Protection through a local Authority
• Four utilities: Light & Power, Water,
Wastewater, and Stormwater
• Streets, Transportation, and
Transit infrastructure
• Parks, Recreation, Natural Areas,
and Cultural facilities
• Planning, Engineering, and
Community services
• Sustainability services, including
Economic Health, Environmental
Services, and Social Sustainability
To contact a department, the full department
directory can be found at fcgov.com/cityservices.
KEY OUTCOME AREAS
The City’s entire strategic planning, budgeting,
execution, and performance measurement
revolves around seven outcome areas.
Our strategic plan is located at
fcgov.com/strategicplan; the City budget
can be reviewed at fcgov.com/budget.
Neighborhood Livability and Social Health
Culture and Recreation
Economic Health
Environmental Health
Safe Community
Transportation
High Performing Government
VISION, MISSION, & VALUES
Vision: To provide world-class municipal services
through operational excellence and a culture of
innovation.
Mission: Exceptional service for
an exceptional community.
Values:
• Collaboration
• Excellence
• Integrity
• Outstanding Service
• Safety & Well-being
• Stewardship
About the City
Government Organization
VISION
MISSION
4 CITIZENS’ FINANCIAL REPORT 2017
Customer-focused Excellence
INTERACTING WITH THE CITY
Citizens have more avenues than ever
to keep up to speed on initiatives, news,
programs, or requests for City services:
Access Fort Collins - An easy way to reach
the City with questions, comments, or
service requests.
fcgov.com/accessfortcollins
Open Book - An online tool designed
to disclose expenses in a simple-to-use
format for those interested in how the local
government spends its revenues.
fcgov.com/openbook
FCTV - Regularly updated video content,
available on basic cable, which provides
several programming options designed to
inform, educate, and inspire.
fcgov.com/fctv
Social Media - Citizens can also stay current
and provide feedback via social media
platforms such as Facebook, Twitter, or
Instagram.
fcgov.com
OpenCity - A new initiative to take
transparency to the next level. The goal of
OpenCity is to create a web portal to host
data sets that are available to the public in a
format that citizens can easily search, filter,
or use in innovative and creative ways.
fcgov.com/opencity
Our City - This is your chance to get
involved in the City’s biggest projects!
Engagement and feedback opportunities
on this site mirror what is happening on the
ground so everyone can join.
ourcity.fcgov.com
THERE’S AN APP FOR THAT
To stay just one tap away from the City,
consider downloading these handy
applications to your smart phone.
• Access Fort Collins
• Ride Transfort
• FC Parking
• Pace Bike Share
CITY OF FORT COLLINS 5
DATA-DRIVEN DECISION MAKING
The City of Fort Collins has deliberately
moved from a “trust us” model to being a
data-driven organization. We are using data
to improve efficiency and accountability.
Community Dashboard – An online tool
that measures the community’s progress
in attaining the City’s Key Outcome Areas.
Important 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.
Strategy Maps – The City created Strategy
Maps to enhance metrics and track the City’s
progress. Strategy Maps tie to each of the 54
Strategic Objectives within the 2018 Strategic
Plan. This provides insight into the City’s
progress in achieving the Strategic Objectives,
which will then help meet the Outcomes. See
more about the strategy maps in the 2018
Strategic Plan at fcgov.com/strategicplan.
Monthly Financial Reports – An internal report
prepared monthly by managers and reviewed
by City executives. Management uses this
report to closely analyze their department’s
budget expenditures and revenues. The report
also communicates departments’ projects,
goals and needs to other departments.
Citizen Survey – A statistically valid survey is
conducted every two years to poll the public
on their perceptions and satisfaction with local
government. The information gained from this
survey is an important step in the Strategic Plan
and the Budgeting for Outcomes processes.
Learn more at fcgov.com/citizensurvey.
Malcolm Baldrige National Quality Award
On November 16, 2017, U.S. Commerce
Secretary Wilbur Ross named the City of Fort
Collins and four other organizations as the 2017
recipients of the Malcolm Baldrige National
Quality Award. This Presidential-level honor
recognizes exemplary practices among American
organizations and businesses including a drive
for radical innovation, thoughtful leadership,
and administrative improvement. Receiving
the award was the culmination of a rigorous,
multi-year pursuit for the City of Fort Collins,
as only the third city to win in the prestigious
award’s 30-year history. Fort Collins began
applying at the state level in 2011 with the
Rocky Mountain Performance Excellence
(RMPEx) program. After receiving the highest
level “Peak status” from RMPEx in 2014, the
City began applying to the national Baldrige
6 CITIZENS’ FINANCIAL REPORT 2017
2017 Snapshot EXCELLENCE IN ACTION
The City’s adoption of the Baldridge Excellence
Framework is widely considered international
best practice, and is one of the best, most
cost-effective performance assessments an
organization can find. Below, several marquee
City projects are highlighted as examples
of applying the principles of continuous
improvement, collaboration, customer focus,
and long-term planning. Each of these projects
was conceived as part of intentional multi-year
planning efforts such as the 10-year City Plan,
Trails Master Plan, Parks and Recreation Policy
Plan, Downtown Plan and Master Street Plan.
TWIN SILO PARK
A new jewel in the Fort Collins parks system,
Twin Silo park opened in November 2017.
This one-of-a-kind 54-acre park carries
agriculturally-themed features such as an
orchard, large community garden, and hops
trestles. The park includes traditional fields
such as ballfields, as well as less common
features such as pickleball courts and a BMX
track. Finally, the park’s centerpiece and
namesake: two 48-foot tall former grain
silos relocated from city property. The silos
are connected by a tall slide and stand over
a play area cleverly designed as a barn.
LINCOLN CORRIDOR
In 2017, the City completed construction of
a community-supported vision for one of
its critical connections from Downtown Fort
Collins to the eastern side of the community.
The area has a strong, diverse, and “uniquely
Fort Collins” mix of retail, industry, offices,
recreation, and neighborhoods with rich history
and culture. The finished project created a
multi-modal design along the corridor and
replaced the Poudre River Bridge, thereby
improving mobility, safety, and flood control,
all while enhancing the appearance and
creating a street with a unique identity.
BROADBAND INTERNET SERVICE
In November 2017, Fort Collins voters
approved a Utility Charter amendment to
add telecommunication services and, with
subsequent Council direction, issue bonds of up
to $150 million. Fort Collins began prioritizing
broadband after community outreach in the
2014 budgeting process. In 2015, voters first
indicated their support for Broadband by
approving a home-rule exception to SB152,
which restricts local government participation
in telecommunications. After considerable
analysis of alternatives, third-party consulting,
community outreach, and due diligence, in
2018 the City Council directed staff to issue
bonds and begin construction of a municipally-
owned, retail network with the objective of
CITY OF FORT COLLINS 7
Fort Collins
by the Numbers
OPERATING STATISTICS
1,701 1,741
2016 2017
+40
Net Operating Budget
$438.4 M
STAFFING (FULL-TIME EQUIVALENTS,
SALARIED AND HOURLY)
NET 2017 OPERATING &
CAPITAL BUDGET $491.2 M (AS AMENDED)
Net Capital
Budget
$52.8 M
PUBLIC SAFETY
CULTURE, PARKS, RECREATION & NATURAL AREAS
1.3 M
Recreation Facility
Attendance & Program
Participation
939
Parks Acreage
43
Trail Miles
377,531
Cultural Attendance
(Museum, Lincoln
Center, Gardens)
TRANSPORTATION
4.3 M
Transfort & Dial-a-Ride
Passengers
1,957
Street Lane
Miles
230
Traffic
Signals
UTILITIES
SUSTAINABILITY
$1.7 M
Dollars Awarded to
Human Services/
Housing Agencies
125
Homes Assessed
for Indoor
Air Quality
110,590
Police Incidents
22,778
Medical Calls
22,197
Fire Calls
44,579
Natural Areas
Acreage
211
and honored as we are that Fort Collins is a Baldrige recipient, we do not consider this a finish line.
We are in the middle of our journey, and this recognition is an indicator that we are headed in the right
direction. It is a great privilege to serve this community, and I look forward to continuing to pursue
excellence with you.”
Darin Atteberry, City of Fort Collins City Manager
As Humbled
10 CITIZENS’ FINANCIAL REPORT 2017
Fort Collins Financial Results
NET POSITION
The net position, or net worth, of the City on
December 31, 2017 was $1.9 billion. Of the net
position balance, $310.2 million is unrestricted
and is available to meet ongoing obligations in
accordance with the City’s fund designations and
fiscal policies.
The City’s net position increased by $76.9 million
(4.2 percent). The governmental net position
increased by $43.4 million (4.2 percent) and the
business-type position increased by $33.5 million
(4.2 percent).
The City’s total long-term liabilities decreased
by $9.9 million (8.3 percent) during the
current year. Within that activity, the City’s
governmental long-term liabilities increased by
$2.3 million and business-type long-term liabilities
decreased by $12.2 million. The City issued new
certificates of participation for the Firehouse
Alley Parking Garage in 2017 resulting in an
increase in governmental long-term debt while
the decrease in business-type debt was driven
by principal payments on existing amounts.
NET POSITION
(at December 31 in thousands)
Governmental Business-type Total Primary Government
2016 2017 2016 2017 2016 2017
ASSETS
Current and other assets $ 313,630 $ 312,097 $ 178,336 $ 174,728 $ 491,965 $ 486,825
Capital assets 824,965 876,783 701,684 724,038 1,526,649 1,600,820
Total assets 1,138,595 1,188,879 880,020 898,766 2,018,615 2,087,645
Deferred outflows of resources 2,203 1,016 2,872 1,609 5,076 2,625
LIABILITIES
Long-term liabilities 57,429 59,731 62,468 50,267 119,896 109,998
Other liabilities 28,915 25,764 25,369 20,533 54,284 46,297
Total liabilities 86,344 85,495 87,837 70,801 174,181 156,296
Deferred inflows of resources 25,216 31,772 5 969 25,221 32,741
NET POSITION
Net investment in capital assets 781,421 829,571 646,367 679,667 1,427,789 1,509,238
Restricted 80,520 81,844 859 81,379 81,844
Unrestricted 167,297 161,214 147,824 148,938 315,121 310,152
TOTAL NET POSITION $ 1,029,238 $ 1,072,629 $ 795,050 $ 828,605 $ 1,824,289 $ 1,901,234
CITY OF FORT COLLINS 11
Fort Collins Financial Results
SUMMARY OF ACTIVITIES
Governmental revenues increased substantially
by $23.7 million. Charges for services were
$4.3 million higher than last year. Operating
and capital grants and contributions were $10.3
million higher than last year. Property taxes
were $2.3 million higher than last year due
to significant increase in assessed values.
On the business-type side, program revenues
experienced a net increase of $6.7 million.
This 3 percent increase was driven primarily
by rate increases to the utilities.
Expenses are described in greater
detail in the following pages.
CONDENSED SUMMARY
OF ACTIVITIES
(at December 31 in thousands)
Governmental Business-type Total Primary Government
2016 2017 2016 2017 2016 2017
REVENUES
Program revenues,
primarily service charges
$ 70,683 $ 85,296 $ 222,379 $ 227,515 $ 293,062 $ 312,811
Sales & use taxes 136,087 135,621 - - 136,087 135,621
Other general revenues 53,356 62,880 1,780 3,333 55,136 66,213
TOTAL REVENUES 260,126 283,797 224,159 230,848 484,285 514,645
Expenses 225,695 243,912 191,481 193,789 417,177 437,700
Transfers 2,236 3,505 ( 2,236 ) ( 3,505 ) - -
CHANGE IN NET
POSITION
36,666 43,390 30,441 33,555 67,108 76,945
Net position, beginning of year 992,572 1,029,238 764,609 795,050 1,757,181 1,824,289
NET POSITION,
END OF YEAR
$ 1,029,238 $ 1,072,629 $ 795,050 $ 828,605 $ 1,824,289 $ 1,901,234
12 CITIZENS’ FINANCIAL REPORT 2017
Revenues
HOW IS FUNDING RAISED?
SALES & USE TAX
Many City services are funded through service
charges, such as our Utility or Recreation
services. However, the City assesses a 3.85
percent tax upon sales, purchases, and certain
services in order to fund other services that
are not charged based on volume or usage.
Base Rate
2.25%.
Funds government services like police,
transportation, and administration.
Streets and Transportation
0.25%, EXPIRES DECEMBER 31, 2025.
Streets maintenance taxes were first approved
in 1984 and were renewed in 1989, 1998, 2006,
and 2016. The Street Maintenance Program
focuses on extending the lifespan of roadways
and minimizing the cost of maintaining a viable
road surface. Good roads cost less to maintain
than those in poor condition, and this tax allows
the City to maintain the current level of service.
Community Capital Improvement
Program (CCIP)
0.25%, RENEWED APRIL 2015 AND
EXPIRES DEC. 31, 2025
CCIP taxes were initiated in 1985 and were
renewed in 1990, 1998, 2006, and 2016.
Project highlights using this funding for
2016-2025 include City Park train and Club
Tico renovations, Downtown Poudre River
White Water Park, a Visitor’s Center at the
Gardens on Spring Creek, Willow and Linden
Street improvements, Lincoln Avenue bridge,
and a Southeast Community Center.
Natural Areas
0.25%, EXPIRES DECEMBER 31, 2030.
Open Space Yes!, originally passed in 1992 and
renewed in 1998 and 2006, is a key component
in the conservation and management of
natural areas and trails. Expenditures from
this tax include land acquisition, resource and
land management, public improvements, and
educational programming.
Keep Fort Collins Great
0.85%, EXPIRES DECEMBER 31, 2020.
This tax was passed by Fort Collins voters in
November 2010 to fund services and programs
that community values. The tax is used for
road improvement projects, increased staffing
and facilities for emergency responders,
parks maintenance, and other priorities.
BASE TAX RATE 2.25%
KEEP FORT
COLLINS GREAT
.85%
STREETS AND
TRANSPORTATION .25%
CITY OF FORT COLLINS 13
Expenses
WHERE DOES THE MONEY GO?
Every two years, the City Manager submits
a budget for City Council’s adoption. The
proposed budget cannot include expenditures
that exceed estimated reserve balances and
anticipated income. The budget represents six
months of input from community members,
City staff and City management, and serves
as the two-year blueprint for advancing
results in the seven key outcome areas.
Fort Collins uses Budgeting for Outcomes
(BFO) for its budget. The process focuses on
results and priorities, not on cost. The process
shifts from paying for costs to buying results.
Service providers, or “sellers,” make offers
to results teams aligned behind one of the
seven outcomes. Teams evaluate effectively
purchasing these offers from the seller based
on their priority. These purchase decisions
put citizens and their priorities first. For more
information, please visit fcgov.com/bfo.
In 2017, governmental expenditures increased
by $18.2 million, or 8.1 percent, compared
to 2016. Included in this increase was $9.1
million in public safety where the City spent
$4.5 million more on police services and $4.9
million more on Poudre Fire Authority services.
Transportation spent $6.7 million more than
last year, and planning and development
spent $6.6 million more than last year.
Business-type Expenses totaled $193.7
million in 2017, an increase of $2.3 million, or
1.2 percent, when compared to 2016. Light
and Power accounted for $1.5 million of the
increase primarily due to purchased power
costs from Platte River Power Authority, the
area electricity generation and transmission
provider. Water expenses decreased $0.8 million
(3.0 percent) Wastewater expenses increased
$.8 million (3.8 percent). Storm drainage
expenses increased $0.9 million (9 percent).
Business-type Expenses
BY SERVICE
50M
100M
150M
250M
2017 2016 2015 2014 2013
$3.2
$9.5
$19.5
$27.7
$124.3
$3.1
$10.8
$21.0
$25.6
$133.3
14 CITIZENS’ FINANCIAL REPORT 2017
SERVICE AREA
Department
General
Fund
Keep Fort Collins
Great Fund
Transportation
Fund
Capital Projects
Fund
Urban
Renewal
Authority
Other Gov.
Funds
Grand
Total
POLICE SERV. TOTAL $ 38,425 $4,998 $43,426
Investigations 6,102 1,510 7,444
Police Information Serv. 6,897 547 19,287
Patrol 17,772 1,515 4,758
Community & Special Serv. 3,365 1,393 4,324
Office of the Chief 4,290 32 2 3,097
FINANCIAL SERV. TOTAL 4,361 4,361
COMMUNITY & OPERATION
SERV. TOTAL 25,309 4,936 8,838 28,648 67,731
Operation Services 12,034 29 330 6 12,399
Recreation 1,540 242 7,315 9,098
Community Serv. Admin. 351 49 400
Park Planning & Dev. 7,485 4,211 11,697
Cultural Services 2,267 111 188 4,294 6,860
Parks 10,515 2,542 16 580 13,654
Natural Areas 141 665 577 12,241 13,623
PLANNING, DEV. & TRANS. 9,982 14,757 27,319 24,681 47,668 124,407
PDT Administration 2,078 555 2,633
Transfort / Parking 2,611 8,597 45,056 56,264
Comm. Dev & Neighborhood Svcs. 7,895 170 55 8,120
FC Moves 8 844 707 636 2,196
Streets 9,646 19,286 1 28,933
Traffic 542 4,283 76 4,902
Engineering 944 2,488 15,448 2,480 21,359
EXECUTIVE SERVICES 3,690 16 3,706
JUDICIAL SERVICES TOTAL 894 894
LEGAL SERVICES TOTAL 2,232 2,232
INFORMATION & EMPLOYEE SVCS. 5,728 257 5,985
SUSTAINABILITY SERVICES TOTAL 6,875 2,027 318 5,797 3,242 18,258
Economic Health Office 2,433 313 283 3,030
Social Sustainability 1,549 1,035 3,242 5,826
Environmental Services 2,469 636 34 3,140
Administration 424 42 466
Urban Renewal Auth. 5,797 5,797
OTHER NON-DEPT. TOTAL 1,695 4,630 6,325
POUDRE FIRE AUTHORITY 24,012 3,362 1,631 29,006
GRAND TOTAL $123,203 $30,354 $27,319 $33,837 $5,797 $85,821 $306,330
Expenses (CONTINUED) –
WHERE DOES THE MONEY GO?
Many of the City’s expenditures are segregated from other expenditures by a dedicated revenue source.
Below is a breakdown by department of how proceeds from the various dedicated tax components
are spent. Dedicated revenues, such as Keep Fort Collins Great, are contained to specified areas
CITY OF FORT COLLINS 15
Treasury Administration
WHERE’S THE MONEY KEPT?
CASH & INVESTMENT MANAGEMENT
Investment policies are governed by City
Council adopted policy. The principal objective
of the City’s cash and investment strategy is
preservation of investment principal. Thus, the
policy allows for only fixed-income investments,
such as state or local government debt, U.S.
agency obligations, or U.S. corporate debt. Equity
investments, such as common stock or mutual
funds, are disallowed under the City’s policy.
At Dec. 31, 2017, the fair market value of the
City’s cash and investments was $402.6 million.
The yield on market for the total assets in
the portfolio for 2017 was 1.41 percent and
total interest earnings were $5.4 million.
Cash & Investments
December 31, 2017 in thousands
BONDED DEBT OBLIGATIONS
The City’s credit rating was Aaa by Moody’s
Investors Service at Dec. 31, 2017. This highly
favorable investment rating, maintained by only
4 percent of governments, allows the city to pay
less interest on its debt issuances. At Dec. 31,
2017, the city held total bonded debt of $82.7
million. Of this amount, $38.7 million was related
to government activities and $44.0 million was
related to business-type activities. The debt
service due within one year is $14.5 million.
City Debt Obligations
December 31, 2017 in thousands
$115,597K
FEDERAL NAT’L
MORTGAGE ASSOC. 28%
FEDERAL FARM
CREDIT BANK 29%
CORPORATE
BONDS 12%
$114,330K
$66,894K
FEDERAL HOME
LOAN BANK 11%
$47,381K
CASH &
DEPOSITS 17%
$44,010K
FEDERAL HOME
LOAN MORTGAGE
CORP. 3% $14,424K
40K
60K
80K
100K
120K
2017 2016 2015
$1.5
$30.3
$72.2
16 CITIZENS’ FINANCIAL REPORT 2017
Capital Assets
WHAT DOES THE CITY OWN?
The book value, historical cost less
depreciation, of the City’s capital assets
totaled $1.6 billion at Dec. 31, 2017. This
investment in capital assets includes
buildings and improvements, infrastructure
and other improvements, including streets,
bridges, and the full utility delivery
system, land and right of way, various
equipment and construction in progress.
Total investment in capital assets increased
$74.2 million compared to 2016. While
the City reports its assets at net book
value based on acquisition cost and
accumulated depreciation, estimated fair
market value is $3.9 billion for government-
wide assets due to market appreciation
of water rights, land and building values.
This estimate is based on appraisal value,
replacement cost, and/or insured values.
INFRASTRUCTURE AND
IMPROVEMENTS
LAND AND
LAND RIGHTS
BUILDING AND
IMPROVEMENTS
MACHINERY AND
EQUIPMENT
CONSTRUCTION
5% IN PROGRESS
3%
54%
27%
11%
Government Capital
Assets $876.8M
Business-type Capital
Assets $724.0M
56% INFRASTRUCTURE
AND IMPROVEMENTS
LAND AND
LAND RIGHTS
BUILDING AND
IMPROVEMENTS
MACHINERY
AND EQUIPMENT
CONSTRUCTION
IN PROGRESS
10%
17%
13%
4%
CITY OF FORT COLLINS 17
Glossary
Assets - what the City of Fort Collins owns.
Business-type activities - private sector-type
operations, such as Utilities and Golf, where
fees for services typically cover all or most of
the cost of operations, including depreciation.
Capital assets - items such as City or
Utility land, construction in progress,
equipment, infrastructure and buildings,
and improvements net of depreciation.
Component Unit - legally separate
organizations for which the city is financially
accountable. The Urban Renewal Authority,
Downtown Development Authority, and
General Improvement Districts #1 and
#15 are the City’s component units.
Current and other assets - items such as
pooled cash and investments, cash and
investments with fiscal agents, receivables,
internal balances, inventories, deposits with
others, prepaid items and deferred charges.
Deferred inflows - an acquisition of a net asset
that is applicable to a future reporting period.
Deferred outflows - a consumption
of a net asset that is applicable to
a future reporting period.
Fiduciary fund - accounts for assets
held on behalf of outside parties,
including other governments.
Governmental activities - City basic
services, including police, planning,
economic development, and culture and
recreation sales, use, and property taxes
finance the majority of these services.
Invested in capital assets, net of related
debt - amounts invested in capital assets
less accumulated depreciation and any
outstanding debt used to acquire these assets.
Liabilities - what the City of Fort Collins owes.
Long-term liabilities - items such as
bonds, loans, compensated absences, and
other City of Fort Collins obligations.
Net book value – represents the acquisition cost
less accumulated depreciation for an asset.
Net Position - the difference between the
City of Fort Collins assets and liabilities.
It is the net worth of the City.
Other liabilities - items such as payables,
payroll, accrued interest and unearned revenue.
PILOT – payment in lieu of taxes, made to
compensate the primary government for
some or all of the tax revenue lost due to the
tax exempt status of the City’s utilities.
Primary Government - all of the governmental
and business-type activities belonging to the
City of Fort Collins, but excludes the discretely
presented component units and fiduciary funds.
Restricted - funds that are not available
for use because they have been set aside
18-20114
for a specific purpose or project.
Unrestricted - one-time funds available
to use for operations or capital.
$1.3
$25.8
$62.9
REVENUE BONDS
CERTIFICATES OF PARTICIPATION
ASSIGNMENT OF LEASE PAYMENTS
$1.0
$29.6
$52.1
of spending by ballot language. Figures are in thousands and on a non-GAAP Budgetary Basis.
$3.3
$9.2
$18.3
$25.6
$116.9
$2.8
$9.4
$17.8
$23.3
$116.6
LIGHT & POWER
WATER
WASTEWATER
STORMWATER
GOLF
$3.2
$9.9
$20.2
$26.4
$131.8
50M
100M
150M
200M
250M
2017 2016 2015 2014 2013
$1.3
$57.6
$11.2
$35.4
$61.0
$47.7
$1.3
$51.6
$14.0
$47.3
$65.0
$47.3
$1.9
$58.0
$11.2
$37.2
$57.7
$36.4
$1.4
$43.7
$13.5
$40.9
$56.7
$40.1
GENERAL GOVERNMENT
PUBLIC SAFETY
CULTURE, PARKS, RECREATION AND NATURAL AREAS
PLANNING AND DEVELOPMENT
TRANSPORTATION
$1.3 INTEREST ON LONG-TERM DEBT
$58.3
$20.6
$44.4
$73.9
$45.4
Government Expenses
BY SERVICE
COMMUNITY CAPITAL /
BUILDING ON BASICS .25%
NATURAL AREAS .25%
$83.7M
$27.4 M
$8.2M
$8.2M
$8.2M
Sales & Use Tax
Dollar amounts in millions
and reflect 2017 revenue
Bike Lane Miles
(approx.)
$169,100
Targeted industry
cluster funds
$ CO2
17%
Reduction in
Greenhouse Gases
(against 2005 levels)
542
Miles of
Water Mains
2,004
Miles of High
Voltage Circuits
119,000
Customer Calls
Responded to
99.99%
Reliability
Rate
servicing its first customers in late 2019.
FIREHOUSE ALLEY
PARKING STRUCTURE
An excellent example of collaboration, it was
built in conjunction with the new Elizabeth Hotel
in downtown Fort Collins. In partnering on the
parking structure with the hotel’s developers,
the City is simultaneously supporting
its Council-adopted Parking Plan and a
longstanding economic and cultural goal of
having a boutique hotel in the downtown area.
MULTIMODAL INFRASTRUCTURE
IMPROVEMENTS
The City’s vision has long embraced safe
facilities for pedestrians, bicycles, motorized
vehicles and public transit. The City completed
four projects in 2017 supporting that vision.
• College & Prospect Intersection
• Fossil Creek Trail Underpass
• Elizabeth and Shields Underpass
• Foothills Underpass at College Avenue
program in 2015. Additional information
on the Baldrige Performance Excellence
Program is located at nist.gov/baldrige.
VALUES
departmental operations, job opportunities, City
Council agendas, meetings and much more.
Darin Atteberry
City Manager
Mike Beckstead
Chief Financial Officer
CITY OF FORT COLLINS 1
Letter from the City Manager & CFO