HomeMy WebLinkAboutReport - Mail Packet - 8/6/2019 - Memorandum From Travis Storin Re: 2018 Peoples Annual Financial ReportCi
DATE:
TO:
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FROM:
RE:
CC:
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Financial Services
215 N Mason Street, 2d Floor
PO Box 580
Fort Collins, CO 80522
970.221.6770
97O.221 .6782 - lax
fcgov.com/finance
MEMORANDUM
August 1,2019
Mayor and Councilmembers
Darin Atteberry, City Manager
Mike Beckstead, CFO 74 fceA b
Travis Storin, Accounting Director 7 9
2018 People's Annual Financial Report
ELT Members
Attached is a copy of the recently published People's Financial Report. This Government
Finance Officers Association (GFOA) sanctioned report is designed for ease of explanation with
the community, specifically for those without a background in public finance per se. The report
is submitted for independent evaluation by GFOA under its Popular Financial Reporting Award
program, for which the City has been recognized for three years consecutively.
Staff has made copies available outside the Council chambers and the Finance department's
offices. If you desire to receive copies for a listening session or for distribution to a specific
entity or individual, please contact Carolyn Koontz at ckoontz@fcgov.com.
OUTSTANDING SERVICE
PEOPLE’S ANNUAL
FINANCIAL
REPORT
2018
FORT COLLINS, COLORADO
FISCAL YEAR ENDING DECEMBER 31, 2018
CONTENTS
Letter from the City Manager & CFO .....................1
Meet Fort Collins ........................................................2
About the City Government Organization ..........3
Customer-Focused Service ....................................4
2018 Snapshot: Service 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 BKD, 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,
One of the primary roles of government is to
use taxpayer dollars to provide the high quality
programs and services the community expects and
deserves, and to do so in a thoughtful, transparent
manner. This includes providing regular reports
on the City’s finances. We are proud to report
that the local economy remains strong, and
that the City’s financial stewardship and healthy
fund balances position us well to prepare for the
needs of a growing community. 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 2018 People’s Annual 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 2018 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.
The City’s mission is to provide exceptional
service for an exceptional community. That is a
commitment that the nearly 2,400 City employees
take seriously. From snowplow drivers and
emergency dispatchers, utility crews and recreation
officials, IT specialists and vehicle mechanics, the
City workforce provides high quality municipal
services around the clock across a wide variety
of professional fields. Our job is to make Fort
Collins a great place for you to live and work
—through reliable electricity and water, public
safety, well-maintained roads, and much more.
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
2 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
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 7,200 employees, CSU
was the largest employer in Fort Collins in 2018.
Despite the vibrancy and economic stability
the community enjoys, City leadership has
several challenges to navigate in coming years.
Throughout 2018, City staff and community
members partnered to update City Plan,
shaping the vision for Fort Collins in the next
20 years. City Plan was unanimously adopted
by City Council and addresses land use,
transportation and transit, and many other
topics. In addition, the community has set
ambitious climate action goals that will require
thoughtful planning in order to achieve while still
maintaining economic vitality and social health.
QUICK FACTS
• Estimated Population: 172,653
City of Fort Collins, May 2019
• Unemployment Rate: 3.2%
Bureau of Labor Statistics Occupational Employment
and Wage Estimates, December 2018
• Median Age: 29.2
American Community Survey 5-Year Estimates, 2013-2017
• Median Household Income: $60,110
American Community Survey 5-Year Estimates, 2013-2017
• Education Level (approximate percentage
of population with completion of 4 or more
years of college education): 53.6%
American Community Survey 5-Year Estimates, 2013-2017
MEET FORT COLLINS
TOP TEN EMPLOYERS BY HEADCOUNT
Colorado State University Education 7,200
Poudre R-1 School District Education 4,500
UC Health: Poudre Valley Hospital Healthcare 4,100
City of Fort Collins Government 2,100
Larimer County Government 1,700
Broadcom (Avago) Analog Electronics 1,500
Woodward, Inc. Aerospace 1,300
Otter Products, LLC Electronics Accessories 1,000
Department Of Agriculture Government 740
Tolmar, Inc. Pharmaceutical 650
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
• Five utilities: Light & Power, Water,
Wastewater, Stormwater, and Broadband
• 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
A 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 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
CUSTOMER-FOCUSED SERVICE
INTERACTING WITH THE CITY
People 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
FCTV - Regularly updated video content,
available on basic cable and streaming
online, which provides several programming
options designed to inform, educate,
and inspire.
fcgov.com/fctv
Social Media - People can also stay
current and provide feedback via social
media platforms such as Facebook,
Twitter, or Instagram.
fcgov.com
OpenCity - Designed to take transparency
to the next level. The goal of OpenCity is
to create a web portal to host data sets,
including expense records, that are available
to the public in a format that people 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-INFORMED DECISION MAKING
The City of Fort Collins has deliberately moved
from a “trust us” model to being a data-
informed 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.
Climate Dashboard – A snapshot of the
community’s progress toward reducing
carbon emissions. The City tracks emissions
annually using 2005 as a baseline year. The
community aims to reduce carbon 20 percent
below 2005 levels by 2020 and 80 percent
by 2030 with the goal of being carbon
neutral by 2050. View the Climate Dashboard
at ftcollinscap.clearpointstrategy.com.
Financial Reporting – A wide collection
of financial and performance reporting is
maintained by the Finance department,
including quarterly budget variance reporting,
seven-year comparative statements, monthly
sales tax reporting, and more. Access
these reports at fcgov.com/finance.
Community 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/communitysurvey.
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 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
2018-2019 Snapshot SERVICE IN ACTION
CONNEXION BROADBAND
After voters approved a Utility Charter
amendment to add telecommunications
services, the City in 2018 began building
out municipal broadband service. After
considerable analysis and community
outreach, the City hired key broadband
staff, secured vendors, and closed on $142
million in bonds to fund construction. The
Connexion brand was unveiled in 2018, and
installation has begun, with the first residential
service anticipated to begin in Q3 2019.
FOCO CREATES
The result of an 18-month community visioning
process, the FoCo Creates Arts and Culture Plan
sets a vision for the future of the arts in Fort
Collins. The plan focuses on a creative culture
that is inclusive and equitable for all community
members, and establishes Fort Collins as an arts
and culture destination. The creative sector will
have enhanced visibility through collaborations
and partnerships, supporting an expanded
creative economy in Northern Colorado.
HORSETOOTH & COLLEGE
INTERSECTION IMPROVEMENTS
A 2011 intersection study listed the Horsetooth
Road and College Avenue intersection as
a top priority for safety and operational
improvements due to heavy congestion and a
high number of left-turn crashes. In 2018, crews
rebuilt the Horsetooth & College intersection,
adding dual left-turn lanes, pedestrian
refuge islands, new medians and signals, new
landscaping and urban design elements, and
a new bridge over Larimer Canal No. 2.
GARDENS EXPANSION
For more than a decade, the Gardens on
Spring Creek has grown as a source of positive,
engaging and creative opportunities for
people to connect with plants and with each
other. Five acres of new gardens have been
constructed and planted, including the Great
Lawn and stage, as well as several educational
and themed gardens. Work is underway on
an expanded Visitors Center, as well as a new
Conservatory Butterfly House. Presented in
partnership with the Butterfly Pavilion, the
1,500-square-foot glass house that will be
home to hundreds of native butterflies, offering
educational opportunities for all ages.
CITY GIVE
City Give is an umbrella for the many
existing and future fundraising activities
across departments and projects within
the City of Fort Collins. It is a pioneering
operational initiative created to orchestrate
and strengthen the City’s philanthropic
practices, standards and partnerships. City
CITY OF FORT COLLINS 7
FORT COLLINS
BY THE NUMBERS
OPERATING STATISTICS
1,741 1,779
2017 2018
+38
Net Operating Budget
$445.8 M
STAFFING (FULL-TIME EQUIVALENTS,
SALARIED AND HOURLY)
NET 2018 OPERATING & CAPITAL BUDGET
$491.2 M (AS AMENDED)
Net Capital
Budget
$44.7 M
PUBLIC SAFETY
CULTURE, PARKS, RECREATION & NATURAL AREAS
1.3 M
Recreation Facility
Attendance & Program
Participation
948
Parks Acreage
44
Trail Miles
352,833
Cultural Attendance
(Museum, Lincoln
Center, Gardens)
TRANSPORTATION
4.4 M
Transfort & Dial-a-Ride
Passengers
1,974
Street Lane
Miles
232
Traffic
Signals
UTILITIES
SUSTAINABILITY
$3.8 M
Dollars Awarded
to Human
Services Agencies
120
Homes Assessed
for Indoor
Air Quality
110,594
Police Incidents
19,999
Medical Calls
21,967
Fire Calls
44,705
Natural Areas
Acreage
201
to provide exceptional service for an exceptional community is a commitment that our 2,400
employees take seriously. Each day my colleagues strive to provide high quality municipal
services in order to help make Fort Collins a great place for everyone.”
Darin Atteberry, Fort Collins City Manager
The City’s mission
10 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
Fort Collins Financial Results
NET POSITION
The net position, or net worth, of the City on
December 31, 2018 was $2.0 billion. Of the net
position balance, $305.7 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 $49.6 million
(2.6%). The governmental net position increased
by $26.9 million (2.5%) and the business-type
position increased by $22.7 million (2.7%).
The City’s total long-term liabilities increased by
$134.7 million (122.4%) during the current year.
Within that activity, the City’s governmental
long-term liabilities decreased by $662,000 and
business-type long-term liabilities increased
by $135.3 million. The City issued $129.6 million
in par value of revenue bonds to finance
the construction and start-up operations of
broadband services in 2018 resulting in an
increase in business-type long-term debt while
the decrease in governmental debt was driven
by principal payments on existing amounts.
NET POSITION
(at December 31 in thousands)
Governmental Business-type Total Primary Government
2017 2018 2017 2018 2017 2018
ASSETS
Current and other assets $ 312,097 $ 319,266 $ 174,728 $ 317,642 $ 486,825 $ 636,907
Capital assets 876,783 897,181 724,038 741,489 1,600,820 1,638,670
Total assets 1,188,879 1,216,447 898,766 1,059,131 2,087,645 2,275,577
Deferred outflows of resources 1,016 2,187 1,609 2,617 2,625 4,804
LIABILITIES
Long-term liabilities 59,731 59,069 50,267 185,614 109,998 244,682
Other liabilities 25,764 30,016 20,533 24,788 46,297 54,804
Total liabilities 85,495 89,085 70,801 210,402 156,296 299,487
Deferred inflows of resources 31,772 30,046 969 - 32,741 30,046
NET POSITION
Net investment in capital assets 829,571 857,873 679,667 710,492 1,509,238 1,568,365
Restricted 81,844 76,746 - - 81,844 76,746
Unrestricted 161,214 164,885 148,938 140,854 310,152 305,739
TOTAL NET POSITION $ 1,072,629 $ 1,099,504 $ 828,605 $ 851,346 $ 1,901,234 $ 1,950,850
CITY OF FORT COLLINS 11
Fort Collins Financial Results
SUMMARY OF ACTIVITIES
Governmental revenues decreased slightly by
$2.6 million while expenses increased $13.7
million. The City deliberately drew down its
reserve amounts in 2018 for capital projects
such as the Poudre River Downtown project,
neighborhood park development, Lincoln Center
theater updates, City Plan, road and bridge
projects, and more.
On the business-type side, program revenues
experienced a net increase of $6.3 million. This
2.7 percent increase was driven primarily by
rate increases in the electrical, water, and
wastewater 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
2017 2018 2017 2018 2017 2018
REVENUES
Program revenues,
primarily service charges
$ 85,296 $ 66,194 $ 227,515 $ 227,340 $ 312,811 $ 293,534
Sales & use taxes 135,621 138,560 - - 135,621 138,560
Other general revenues 62,880 76,457 3,333 9,818 66,213 86,275
TOTAL REVENUES 283,797 281,211 230,848 237,158 514,645 518,369
Expenses 243,912 257,609 193,789 211,144 437,700 468,753
Transfers 3,505 3,274 ( 3,505 ) ( 3,274 ) - -
CHANGE IN NET
POSITION
43,390 26,876 33,555 22,740 76,945 49,616
Net position, beginning of year 1,029,238 1,072,629 795,050 828,605 1,824,289 1,901,234
NET POSITION,
END OF YEAR
$ 1,072,629 $ 1,099,504 $ 828,605 $ 851,346 $ 1,901,234 $ 1,950,850
12 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
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 and purchases 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
Street 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 DECEMBER 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
Whitewater 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 residents value. The tax is used for road
improvement projects, increased staffing and
facilities for emergency responders, parks
maintenance, and other priorities. In April 2019,
Fort Collins voters approved a reconfiguration
of this tax. Beginning in 2021, instead of a 0.85%
renewable tax, Fort Collins will permanently
add 0.6% to the ongoing Base Rate and add
a renewable 0.25% tax through 2030.
REVENUES
HOW IS FUNDING RAISED?
BASE TAX RATE 2.25%
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 each of the
seven outcomes. Teams evaluate effectively
purchasing these offers from the seller based
on their priority. These purchase decisions put
residents and their priorities first. For more
information, please visit fcgov.com/bfo.
In 2018, governmental expenditures totaled
$257.6 million, an increase of $13.7 million,
or 6.1 percent, when compared to 2017.
Transportation expenses increased $13.7
million largely due to expanded transit
service and the growing City Bridge program.
Culture, parks, recreation and natural areas
increased $2.2 million; and planning and
development expenses decreased $3.1 million.
Business-type Expenses totaled $211.1 million
in 2018, an increase of $17.4 million, or 9.0
percent, when compared to 2017. Light and
Power accounted for $11.7 million of the
increase primarily due to purchased power
costs from Platte River Power Authority, the
area electricity generation and transmission
provider, personnel services, contractual services
and depreciation. Water expenses increased
$4.3 million (16.5%) because of an increase in
personnel services, depreciation, and contractual
services. Wastewater expenses increased $1.3
million (6.3%) because of personnel services.
BUSINESS-TYPE EXPENSES
BY SERVICE
2018 2017 2016 2015 2014
$3.2
$9.5
$19.5
$27.7
$124.3
$3.1
$10.8
$21.0
$25.6
$133.3
$3.3
$9.2
14 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
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 40,605 5,717 - - - - 46,322
Investigations 6,488 1,491 7,978
Police Information Serv. 7,790 1,168 8,958
Patrol 18,287 1,346 19,633
Community & Special Serv. 4,595 1,252 5,846
Office of the Chief 3,445 461 3,906
FINANCIAL SERV. TOTAL 4,529 - - - - - 4,529
COMMUNITY & OPERATION
SERV. TOTAL 27,658 4,727 - 10,195 - 24,847 67,427
Operation Services 13,119 4 13,123
Recreation 1,478 118 6,997 8,594
Community Serv. Admin. 288 42 330
Park Planning & Dev. 4,678 4,525 9,202
Cultural Services 2,258 118 2,865 4,088 9,329
Parks 11,823 2,515 42 596 14,976
Natural Areas 169 574 2,489 8,640 11,873
PLANNING, DEV. & TRANS. TOTAL 11,088 15,385 24,622 14,089 - 24,685 89,869
PDT Administration 2,113 562 2,675
Transfort / Parking 2,787 2 22,288 25,077
Comm. Dev & Neighborhood Svcs. 8,974 135 9,108
FC Moves 1 1,156 842 346 2,345
Streets 7,899 16,913 31 24,842
Traffic 699 3,775 12 4,486
Engineering 2,709 2,531 13,729 2,366 21,335
EXECUTIVE SERVICES TOTAL 3,620 16 - - - - 3,636
JUDICIAL SERVICES TOTAL 1,051 - - - - - 1,051
LEGAL SERVICES TOTAL 2,389 - - - - - 2,389
INFO. & EMPLOYEE SVCS. TOTAL 5,636 343 - - - - 5,979
SUSTAINABILITY SERVICES TOTAL 5,927 1,745 - 116 4,722 2,699 15,209
Economic Health Office 2,071 309 411 2,790
Social Sustainability 1,383 664 2,288 4,335
Environmental Services 2,051 699 116 2,866
Administration 422 73 495
Urban Renewal Auth. 4,722 4,722
OTHER NON DEPT. TOTAL 1,782 - - - - 5,571 7,354
POUDRE FIRE AUTHORITY TOTAL 25,010 3,058 - - - - 28,067
GRAND TOTAL $129,296 $30,991 $24,622 $24,400 $4,722 $57,802 $271,833
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, 2018, the fair market value of the
City’s cash and investments was $548.0 million.
The yield on market for the total assets in
the portfolio for 2018 was 1.68 percent and
total interest earnings were $8.6 million.
BONDED DEBT OBLIGATIONS
The City’s credit rating was Aaa by Moody’s
Investors Service at Dec. 31, 2018. 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,
2018, the City held total bonded debt of $206.2
million. Of this amount, $32.9 million was related
to government activities and $173.3 million was
related to business-type activities. The debt
service due within one year is $20.9 million.
$163.8M
FEDERAL NAT’L
MORTGAGE ASSOC. 19%
FEDERAL FARM
CREDIT BANK 30%
CORPORATE
BONDS 4%
$105.7M
$88.3M
FEDERAL HOME
LOAN BANK 20%
$20M
CASH &
DEPOSITS 16%
$107.9M
FEDERAL HOME
LOAN MORTGAGE
CORP. 9% $50.7M
US TREASURIES AND
CERTIFICATES OF
DEPOSIT 2% $11.8M
2018 2017 2016
$1.3
$25.8
$62.9
REVENUE BONDS
CERTIFICATES OF PARTICIPATION
ASSIGNMENT OF LEASE PAYMENTS
$1.0
$29.6
$52.1
16 PEOPLE’S ANNUAL FINANCIAL REPORT 2018
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, 2018. 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 as net book value
based on acquisition cost and accumulated
depreciation, estimated fair market value is
2-3 times higher 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
7% IN PROGRESS
3%
52%
27%
11%
GOVERNMENT CAPITAL ASSETS
$876.8M
BUSINESS-TYPE CAPITAL ASSETS
$724.0M
57% INFRASTRUCTURE
AND IMPROVEMENTS
LAND AND
LAND RIGHTS
BUILDING AND
IMPROVEMENTS
MACHINERY
AND EQUIPMENT
CONSTRUCTION
IN PROGRESS
10%
17%
12%
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
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 excluding the discretely
presented component units and fiduciary funds.
Restricted — funds that are not available
for use because they have been set aside
19-21276
for a specific purpose or project.
Unrestricted — one-time funds available
to use for operations or capital.
$.8
$24.1
$181.2
120M
100M
80M
60M
40M
CASH & INVESTMENTS
December 31, 2018 in millions
CITY DEBT OBLIGATIONS
December 31, 2018 in millions
of spending by ballot language. Figures are in thousands and on a non-GAAP Budgetary Basis.
$18.3
$25.6
$116.9
LIGHT & POWER
WATER
WASTEWATER
STORMWATER
GOLF
$3.2
$9.9
$20.2
$26.4
$131.8
$3.3
$10.7
$22.2
$29.9
$145
250M
200M
150M
100M
50M
2018 2017 2016 2015 2014
$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
GENERAL GOVERNMENT
PUBLIC SAFETY
CULTURE, PARKS, RECREATION AND NATURAL AREAS
PLANNING AND DEVELOPMENT
TRANSPORTATION
INTEREST ON LONG-TERM DEBT
$1.3
$58.3
$20.6
$44.4
$73.9
$45.4
$1.2
$72.0
$17.5
$46.6
$74.9
$45.4
300M
250M
200M
150M
100M
50M
GOVERNMENT EXPENSES
BY SERVICE
KEEP FORT
COLLINS GREAT
.85%
STREETS AND
TRANSPORTATION .25%
COMMUNITY
CAPITAL IMPROVEMENT
PROGRAM .25%
NATURAL AREAS .25%
$85.7M
$27.9 M
$8.3M
$8.4M
$8.3M
SALES & USE TAX
Dollar amounts in millions
and reflect 2018 revenue
Bike Lane Miles
(approx.)
207
Affordable Housing
Units Added
CO2
17%
Reduction in
Greenhouse Gases
(against 2005 levels, as of 2017)
544
Miles of
Water Mains
1,963
Miles of High
Voltage Circuits
122,000
Customer Calls
Responded to
99.99%
Electric System
Reliability
Give is an investment in new pathways for
successful public-private collaboration.
TRANSPORTATION
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 2018 supporting that vision.
• Riverside Bridge Replacement
• Long View Trail
• Fossil Creek Trail Connection
• West Mulberry Improvements
program in 2015. Additional information
on the Baldrige Performance Excellence
Program is located at nist.gov/baldrige.
VALUES
City’s website also includes information about
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