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Home My WebLink AboutReport - Mail Packet - 9/1/2020 - Memorandum From Blaine Dunn And Kelley Vodden Re: 2019 Comprehensive Annual Financial Report -Cafr COMPREHENSIVE ANNUAL FINANCIAL REPORT 2019 FORT COLLINS, COLORADO | YEAR ENDED DECEMBER 31, 2019 City of Fort Collins, Colorado Comprehensive Annual Financial Report For the fiscal year ended December 31, 2019 Prepared by the Accounting Department: Blaine Dunn, Interim Accounting Director Kelley Vodden, Controller Jennifer Selenske, Senior Accountant Kerri Ishmael, Accountant II Logan Bailor, Accountant II Renee Callas, Senior Accounting Coordinator About our cover and section tabs… The cover photograph is a closeup of one of the flowers in the newly expanded Gardens on Spring Creek. The Introductory Section tab features the Cache la Poudre River, both in the Poudre Canyon, and as it flows through Kingfisher Point Natural Area in central Fort Collins. The youth in the photos are participants in the Summer in the City youth engagement program, learning about river health and natural areas management, and later taking a spin on a bike skills course. The Financial Section tab showcases several of the City’s Recreation programs, including aquatics, adult sports, and Adaptive Recreation Opportunities (ARO). ARO offers inclusion support for individuals with disabilities for any recreation program listed in the Recreator program guide. The Management’s Discussion and Analysis tab highlights the future of Fort Collins, including a community workshop held for the update to City Plan, Fort Collins’ comprehensive and transportation master plan; a ribbon cutting for the Solinator Garden, a 2,700 solar panel installation with 1,000 kW capacity that combines a pollinator garden and renewable energy installation; and an exhibit celebrating the 100-year history of City Park and looking toward the next phase of the park’s life. The Basic Financial Information tab features scenes from the Gardens on Spring Creek. In 2019, The Gardens completed a two-year, $6 million expansion project; the Gardens on Spring Creek re-opened its doors to the community in November 2019. The cultural facility now showcases 12 acres of beautifully curated display gardens with more than 1,700 plant varieties. In addition, The Gardens offers a permanent Butterfly House, home to more than 300 fluttering North American butterflies. The Notes to the Basic Financial Statements tab highlights amenities for community members to enjoy on a neighborhood level, including playground equipment maintenance, a bike-crossing signal, and the new Block Party Trailer. In 2019, Neighborhood Services introduced this free neighborhood “party in a box” containing large, durable party supplies like tables, chairs, outdoor games, an inflatable movie screen and projector, trash and recycling bins, and street barricades. Neighborhoods can reserve the Block Party Trailer for neighborhood events on weekends throughout the summer. Neighborhood Services’ Code Compliance staff will drop off and pick up the trailer so neighbors can relax and enjoy their party. The Supplementary Information tab features scenes from Fort Collins natural areas and the 2019 Earth Day festival. Eighty percent of Fort Collins community members support climate action and want simple, easy actions they can take to do their part. The Shift campaign is dedicated to mobilizing the community through simple action steps to reach the City’s climate action goals of a 20% reduction below 2005 levels in 2020; 80% below by 2030; and to be carbon neutral by 2050. The Statistical Section tab features the Poudre River Whitewater Park grand opening. Thanks to a comprehensive blueprint and vision for the river established in the 2014 Poudre River Downtown Master Plan, the whitewater park project accomplished multiple goals including: providing a purposeful and accessible place to recreate on the river, improving the safety and health of the river through floodplain adjustments, and returning the area to a more natural state through habitat and river restoration enhancements. The Other Schedules tab features the new micro-hydro power station that will provide 20% of the Water Treatment Facility’s electrical demand; line workers maintaining the City’s electric system; and Mayor Troxell at the grand opening of Sugar Beet Park in northeast 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 Balance of Governmental Funds to the Statement of Activities ............................ 35 Statement of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget (Non-GAAP budgetary basis) - General Fund (Consolidated) ........ 36 Statement of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget (Non-GAAP budgetary basis) - Keep Fort Collins Great Fund ................... 37 Statement of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget (Non-GAAP budgetary basis) – Urban Renewal Authority Fund (Consolidated) ................................................................................................................. 38 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 ............................................................. 95 Pension and Other Postemployment Benefits Plan Schedule ..................................................................... 97 SUPPLEMENTARY INFORMATION Nonmajor Governmental Funds ................................................................................................................ 103 Balance Sheet .............................................................................................................................. 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................... 108 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Actual and Budget Capital Expansion (Non-GAAP Budgetary Basis) ......................................................... 112 ii City of Fort Collins Comprehensive Annual Financial Report Sales and Use Tax (Non-GAAP Budgetary Basis) ......................................................... 113 Community Capital Improvement (Non-GAAP Budgetary Basis) ................................ 114 Natural Areas (Non-GAAP Budgetary Basis) ................................................................ 115 Cultural Services and Facilities (Non-GAAP Budgetary Basis) .................................... 116 Recreation (Non-GAAP Budgetary Basis) ..................................................................... 117 Cemeteries (Non-GAAP Budgetary Basis) .................................................................... 118 Perpetual Care (Non-GAAP Budgetary Basis) ............................................................... 119 Community Development Block Grant (Non-GAAP Budgetary Basis) ........................ 120 Home Program Fund (Non-GAAP Budgetary Basis) ..................................................... 121 Transit Services (Non-GAAP Budgetary Basis) ............................................................ 122 Transportation CEF (Non-GAAP Budgetary Basis) ...................................................... 123 Transportation Services (Non-GAAP Budgetary Basis) ................................................ 124 Parking Services (Non-GAAP Budgetary Basis) ........................................................... 125 General Improvement District No. 1 (Non-GAAP Budgetary Basis) ............................ 126 General Improvement District No. 15 - Skyview (Non-GAAP Budgetary Basis) ......... 127 Fort Collins Leasing Corporation (Non-GAAP Budgetary Basis) ................................. 128 Neighborhood Parkland (Non-GAAP Budgetary Basis) ................................................ 129 Conservation Trust (Non-GAAP Budgetary Basis) ........................................................ 130 General Fund Combining Schedules ........................................................................................................ 132 Balance Sheet .............................................................................................................................. 133 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................... 134 Schedule of Revenues, Expenditures and Changes in Fund Balances – Actual and Budget (Non- GAAP Budgetary Basis) ............................................................................................................. 135 Museum (Non-GAAP Budgetary Basis) ........................................................................ 136 Urban Renewal Authority ......................................................................................................................... 137 Balance Sheet .............................................................................................................................. 138 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................... 139 Schedule of Revenues, Expenditures and Changes in Fund Balances – Actual and Budget North College District (Non-GAAP Budgetary Basis) ................................................... 140 Prospect South TIF District (Non-GAAP Budgetary Basis) .......................................... 141 Foothills Mall District (Non-GAAP Budgetary Basis) ................................................... 142 Capital Project Fund ................................................................................................................................. 143 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Actual and Budget (Non-GAAP budgetary basis) ............................................. 144 Enterprise Funds ....................................................................................................................................... 147 Schedule of Revenues, Expenses and Changes in Net Position – Actual and Budget Electric and Telecommunications (Non-GAAP Budgetary Basis) ................................. 148 Water (Non-GAAP Budgetary Basis) ............................................................................ 149 Wastewater (Non-GAAP Budgetary Basis) ................................................................... 150 Storm Drainage (Non-GAAP Budgetary Basis) ............................................................. 151 Golf (Non-GAAP Budgetary Basis) ............................................................................... 152 Internal Service Funds .............................................................................................................................. 153 Combining and Individual Fund Financial Statements and Schedules Statement of Net Position ............................................................................................................ 154 Statement of Revenues, Expenses and Changes in Net Position ................................................. 156 Statement of Cash Flows ............................................................................................................. 158 Schedule of Revenues, Expenses and Changes in Net Position – Actual and Budget Equipment (Non-GAAP Budgetary Basis) ..................................................................... 160 Self Insurance (Non-GAAP Budgetary Basis) ............................................................... 161 Data and Communications (Non-GAAP Budgetary Basis) ............................................ 162 Benefits (Non-GAAP Budgetary Basis) ......................................................................... 163 Utility Customer Service and Administrative (Non-GAAP Budgetary Basis) ............... 164 City of Fort Collins Comprehensive Annual Financial Report iii Fiduciary Funds ........................................................................................................................................ 165 Combining and Individual Fund Schedules Schedule of Changes in Net Position Held in Trust for Pension Benefits—Actual and Budget ...................................................................................... 166 Schedule of Trust Fund Assets and Liabilities ........................................................................... 167 Schedule of Trust Fund Changes in Assets and Liabilities.......................................................... 168 Combining Schedule of Custodial Funds Assets and Liabilities ................................................. 169 Statement of Custodial Funds Changes in Assets and Liabilities ................................................ 170 Component Unit Funds ............................................................................................................................. 172 Combining and Individual Fund Financial Statements and Schedules Reconciliation of the Balance Sheet to the Statement of Net Position ........................................ 173 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ............................................................................ 174 Balance Sheet ............................................................................................................................. 175 Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................ 176 Schedule of Revenues, Expenditures and Changes in Fund Balances – Actual and Budget General (Non-GAAP Budgetary Basis) .......................................................................... 177 Debt Service (Non-GAAP Budgetary Basis) ................................................................. 178 STATISTICAL SECTION ................................................................................................................... 179 Net Position by Component – Last Ten Years ......................................................................................... 181 Changes in Net Position – Last Ten Years ............................................................................................... 182 Fund Balances, Governmental Funds – Last Ten Years ........................................................................... 183 Changes in Fund Balances, Governmental Funds – Last Ten Years ........................................................ 184 Taxable Sales by Category – Last Ten Years ........................................................................................... 185 Direct and Overlapping Sales Tax Rates – Last Ten Years ...................................................................... 186 Sales Tax Revenue Taxpayers by Industry ............................................................................................... 187 Ratios of Outstanding Debt by Type – Last Ten Years ............................................................................ 188 Direct and Overlapping Governmental Activities Debt ............................................................................ 189 Legal Debt Margin Information – Last Ten Years ................................................................................... 190 Pledged Revenue Coverage – Last Ten Years .......................................................................................... 191 Demographic and Economic Statistics ..................................................................................................... 192 Principal Employers .................................................................................................................................. 193 Full-time Equivalent City Employees by Function/Program – Last Ten Years ....................................... 194 Operating Indicators by Function/Program – Last Ten Years .................................................................. 195 Capital Asset Statistics by Function/Program – Last Ten Years .............................................................. 196 OTHER SCHEDULES ......................................................................................................................... 197 Debt Continuing Disclosures under SEC Rule 15c2-12 ........................................................................... 197 Electric and Telecommunications ................................................................................................ 198 Water ........................................................................................................................................... 201 Wastewater .................................................................................................................................. 205 Storm Drainage ............................................................................................................................ 207 Urban Renewal Authority ............................................................................................................ 209 Compliance Item ....................................................................................................................................... 197 Local Highway Finance Report ................................................................................................... 220 iv City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK INTRODUCTORYSECTIONINTRODUCTORY SECTION 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 July 31, 2020 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, 2019. 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, 2019 are free of material misstatement. The independent auditor, BKD, 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, 2019, 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 174,871 as of January 2020. This is approximately 50% 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, broadband internet service, water treatment, wastewater treatment and storm drainage. Fire protection and library services are not provided by the City but instead by Poudre Fire Authority (PFA) and Poudre River Public Library District. The City is the primary financial supporter for PFA. 215 N. Mason Street 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6562 970.221.6782 - fax fcgov.com 4 City of Fort Collins Comprehensive Annual Financial Report The City’s financial statements include the Downtown Development Authority, Fort Collins Capital Leasing Corporation, General Improvement District No. 1, General Improvement District No. 15 – Skyview and the Urban Renewal Authority. The City is a home rule city, organized under provisions of the Colorado Constitution. The City Charter, adopted in 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 The essential economic indicators for the City were moderate to strong in 2019. At the end of 2019, the local unemployment rate stood at 2.0%, which compares favorably to the state rate of 2.5% and national rate of 3.5%. The City relies heavily on sales and use tax revenues, which increased by 3.3% in 2019. Sales taxes and use taxes were up 4.2% and down 1.2%, respectively. Inflation was 2.5%, as measured by the Denver-Aurora-Lakewood Consumer Price Index for the second half of 2019 versus the second half of 2018. Overall governmental activity revenue increased 2.0% in 2019. This was attributable to offsetting changes: the aforementioned increase in sales and use taxes, a decrease in miscellaneous revenue related to an insurance recovery in 2018, and a decrease in capital grants for Transit. Rising market rates resulted in investment earnings of $8.3 million, an increase of $2.9 million over the prior year. At year-end, the City held $343.1 million in unrestricted net position and $2.0 billion in total net position, $37.4 million more and $47.2 million more, respectively, than it held in 2018. 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. Residents have more avenues than ever to keep up to speed on initiatives, news, programs, or requests for City services: • Access Fort Collins at fcgov.com/accessfortcollins is an easy way to reach the City with questions, comments, or service requests. The platform ensures that residents directly reach the staff best equipped to address their concerns. • Open Book is an online tool designed to disclose expenses in a simple to use format for members of the public interested in how the local government spends its revenues. Open Book can be viewed online at fcgov.com/openbook • OpenData is a City initiative started in 2016 to take transparency to the next level. The goal is to maintain a web portal to host data sets that are available to the public in a format that residents can easily search, filter, and utilize in an innovative and creative way. There are a number of data sets already available with more scheduled to go-live in the near future, including crime statistics, traffic information, construction permits, City facility utility usage, annexations, and various master plans. • Regularly updated video content, available at fcgov.com/fctv or on basic cable, provides several programming options designed to inform, educate, and inspire. Content includes Council meetings and public forums, plus regular programming including CityView, a bi-weekly news series that highlights major stories, initiatives, and upcoming events throughout the City in less than five minutes. • The Community Dashboard, an 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. City of Fort Collins Comprehensive Annual Financial Report 5 • Strategy Maps are a newly created internal management tool designed to enhance the use of metrics, targets, and initiatives to track the City’s progress against its 7 Key Outcome Areas and 54 Strategic Objectives. More information about the 2020 Strategic Plan and Strategy Maps can be found at fcgov.com/strategicplan. • Another tool staff is using to become more data driven is the Financial Monthly Report (FMR), 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. • Residents can also stay current and provide feedback utilizing social media platforms such as Facebook, Twitter, or Instagram. In addition, residents can get engaged in some of the City’s biggest projects by providing feedback at ourcity.fcgov.com. City Plan. The last update to City Plan was completed in 2011. In 2019 City Council formally adopted the update Fort Collins City Plan. City plan is the comprehensive development and transportation plan for Fort Collins. City Plan takes the long view, identifying goals and actions the community should take over the next ten to twenty years. The implementation of City Plan is facilitated by partnerships and the City’s Strategic Plan, which provides short- and mid-term guidance. Both are supported by the City’s budgeting process, department-level functional plans and the availability of funding from many sources. City plan is updated 10 years to ensure it remains current with the community’s vision. This iteration of City Plan carries forward the city’s longstanding commitment to sustainability and triple-bottom-line thinking. Emerging concerns about rising housing costs, increased congestion and the effects of continued growth pressures in the city and region are incorporated into City Plan through an emphasis on equity, resilience and access to opportunity. Principles, policies and strategies contained in City Plan— together with the Strategic Plan—are used to guide future growth and development and day-to-day decision-making within the City of Fort Collins organization. Fort Collins Connexion Internet Service. In June of 2018 after multiple years of analysis of alternatives, third-party consulting, community outreach, voter-approved charter amendments, and other due diligence, the City issued bonds raising $142.2 million to fund the construction of a municipally-owned high-speed fiber optic internet distribution utility. The City launched the Connexion brand in June 2018 and broke ground on its new utility in November 2018. The construction will span from 2019 through 2022. Connexion successfully connected their first customers to the network in August of 2019. Poudre River Whitewater Park. Located just north of Old Town, kayakers, tubers, and kids of all ages will be able to enjoy the Poudre River and all it has to offer. The park officially opened in fall of 2019. The park features a wave feature, a pedestrian bridge, river access, terrace stone sitting areas, walkways, a shoreline and an overlook. In addition to the recreation provided the park also added ecological benefits resulting in a healthier and more sustainable river environment. Gardens on Spring Creek Expansion. Started in November of 2017 the Gardens officially reopened their doors to the community in November 2019. The expansion added five acres of curated display gardens, doubled the size of the visitor center up to 10,000 square feet, added a new 1,500 square-foot Butterfly House, and a new amphitheater. The total cost of the expansion was $6 million dollars. The Gardens anticipate serving over 125,000 visitors on an annual basis. Police Regional Training Facility. In 2019 the City issued $25.3 million in Certificate of Participation (COP) financing. Of this total $8.2 million was borrowed for the joint Police Regional Training Facility. This joint venture is a partnership with the City of Loveland. Discussion began on this project starting in 2014. Once completed the facility will provide a highly training efficient operation, develop a center that allows for future growth, and ability to train together with multiple jurisdictions. The anticipated completion date of this facility is winter of 2020. 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, 2018. This was the 33nd 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 2019 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 BKD, LLP, the firm that serves as the City’s external auditor. Respectfully submitted, Darin A. Atteberry Travis Storin City Manager Interim 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, 2019 Elected Officials Wade Troxell ........................................................................................................................................ Mayor Susan Gutowsky .................................................................................................... District 1 Councilmember Julie Pignataro ....................................................................................................... District 2 Councilmember Ken Summers ......................................................................................................... District 3 Councilmember Kristin Stephens ......................................................................... Mayor Pro Tem, District 4 Councilmember Ross Cunniff .......................................................................................................... District 5 Councilmember Emily Gorgol ......................................................................................................... District 6 Councilmember Appointed Officials Darin Atteberry ......................................................................................................................... City Manager Delynn Coldiron ........................................................................................................................... City Clerk* Carrie Daggett ........................................................................................................................... City Attorney Kathleen Lane ....................................................................................................................... Municipal Judge *City Manager appointed, City Council approved City Officials and Department Directors Jeff Mihelich ................................................................................................................. Deputy City Manager Kelly DiMartino ............................................................................................................ Deputy City Manager Wendy Williams ........................................................................................................ Assistant City Manager Mike Beckstead ......................................................................................................... Chief Financial Officer Caryn Champine .......................................................... Planning, Development and Transportation Director Jackie Kozak-Thiel ............................................................................................. Chief Sustainability Officer Jeff Swoboda .......................................................................................................................... Chief of Police Kevin Gertig ....................................................................................................... Utilities Executive Director Teresa Roche ............................................................................................... Chief Human Resources Officer Colman Keane ................................................................................................ Broadband Executive Director 10 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK FINANCIALSECTIONFINANCIAL SECTION 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 City of Fort Collins Comprehensive Annual Financial Report 13 14 City of Fort Collins Comprehensive Annual Financial Report MANAGEMENT’SDISCUSSION & ANALYSISMANAGEMENT’S DISCUSSION & ANALYSIS 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, 2019. In addition to this overview and analysis based on currently known facts, decisions and conditions, the City would encourage readers to consider the information presented in the City’s letter of transmittal and the City’s financial statements, which begin on pages 3 and 29 of this report, respectively. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at December 31, 2019 by $2.0 billion (net position). Of the net position balance, $343 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 $47.1 million (2.4%). The governmental net position increased by $29.3 million (2.7%) and the business-type position increased by $17.8 million (2.1%). The General Fund, the City’s primary operating fund, ended 2019 with a $72.5 million fund balance, an increase of $5.4 million on a current financial resource basis. Of this amount, $70.9 million is spendable. The City’s total long-term liabilities increased by $9.7 million (4.0%) during the current year. Within that activity, the City’s governmental long-term liabilities increased by $20.7 million and business-type long- term liabilities decreased by $11.0 million. The City’s governmental long-term liabilities increased due to an issued Certificate of Participation in the amount of $23.9 million to fund the Prospect/I25 interchange and the new police training facility. The City’s business-type long-term liabilities decreased primarily due to a reduction of $4.0 million in postemployment benefits and a $4.5 million reduction in bonds payable. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of the following three components: 1) Government–wide Financial Statements, 2) Fund Financial Statements and 3) Notes to the Financial Statements. Other supplementary information is also included at the end of the report. Government-wide financial statements. The government–wide statements are designed to provide readers with a broad overview of the City’s finances using the accrual basis of accounting, the basis of accounting used by most private-sector businesses. The statement of net position presents information on the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources is 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 16 City of Fort Collins Comprehensive Annual Financial Report development services, transportation, and interest on long term debt. The business-type activities of the City include light and power, water, wastewater, storm drainage, and golf. The government-wide financial statements also include the Fort Collins, Colorado Downtown Development Authority (DDA) as a discretely presented component unit of the City. See Note I.A 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 City funds 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, except for 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, and the Capital Projects Fund. These four funds are 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 32-38 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 and 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 City of Fort Collins Comprehensive Annual Financial Report 17 activities in the government-wide financial statements. The activity in the Equipment Fund used for monitoring the fleet of vehicles is allocated between the governmental and business-type activities based upon actual usage. In addition, the utilities use an internal service fund to account for customer and administrative services. Because this fund is used solely by the utilities, it is included within the business-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 Electric and Telecommunications, 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 custodial 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 City reported assets, liabilities and changes in net position for (1) Pension and Other Employee Benefit Trust Funds, associated with City’s General Employees’ Retirement Plan Pension Fund and Retirement Health Savings plans and (2) Custodial Funds, representing fiduciary activities not held in a trust, including discretely presented Investment Pool Funds, all associated with fiduciary activities with other governmental organizations. 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 50-94 of this report. Other Information. The City has elected to use the modified approach to account for and report its street infrastructure capital assets. The City has included required supplementary information that explains the modified approach and recent assessments that have been performed using the related asset management system. Information about the City’s pension and other post-employment benefit plan is also included as required supplemental information. These schedules can be found on pages 95-99 of this report. Combining Statements. The combining statements referred to earlier in connection with the non-major governmental funds, non-major enterprise fund, internal service funds, 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, $1.6 billion (78.7%) 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 $47.9 million (2.9%) in 2019. 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, $81.6 million (4.1%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $343.0 million (17.2%), may be used to meet the City’s ongoing obligations to its citizens and creditors. The City’s total net position increased by $47.1 million in 2019. Unrestricted net position increased $37.3 million in 2019. Statement of 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 2019 2018 2019 2018 2019 2018 Current and other assets $ 352,755 $ 319,266 $ 312,087 $ 317,642 $ 664,842 $ 636,907 Capital assets 920,760 897,181 765,832 741,489 1,686,592 1,638,670 Total assets 1,273,515 1,216,447 1,077,919 1,059,131 2,351,434 2,275,577 Deferred outflows of resources 790 2,187 1,188 2,617 1,978 4,804 Other liabilities 29,343 30,016 33,695 24,788 63,038 54,804 Long-term liabilities 79,823 59,069 174,635 185,614 254,459 244,683 Total liabilities 109,166 89,085 208,330 210,402 317,496 299,487 Deferred inflows of resources 36,332 30,046 1,641 -37,973 30,046 Net position: Net investment in capital assets 855,974 857,873 717,336 710,492 1,573,311 1,568,365 Restricted 81,632 76,746 --81,632 76,746 Unrestricted 191,201 164,885 151,799 140,854 343,000 305,739 Total net position $ 1,128,808 $ 1,099,504 $ 869,135 $ 851,346 $ 1,997,943 $ 1,950,849 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, 2019 reflects net position increasing by $47.1 million (2.4%). 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) Business-type Total Activities Primary Government 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services $ 38,441 $ 36,844 $ 212,947 $ 212,104 $ 251,388 $ 248,947 Operating grants & contributions 14,858 10,520 463 127 15,320 10,647 Capital grants and contributions 15,100 18,829 6,551 15,110 21,651 33,939 General revenues: - Sales & use taxes 143,145 138,560 - - 143,145 138,560 Property taxes 29,871 29,363 - - 29,871 29,363 Occupational privilege taxes 2,659 2,569 - - 2,659 2,569 Lodging taxes 1,946 1,794 - - 1,946 1,794 Intergovernmental not restricted to programs 27,650 27,072 - 93 27,650 27,165 Investment earnings 8,253 5,443 9,284 4,791 17,537 10,234 Miscellaneous 5,039 10,216 2,449 4,935 7,488 15,151 Total Revenues 286,962 281,211 231,694 237,158 518,655 518,369 Expenses: General government 43,988 45,359 - - 43,988 45,359 Public safety 78,812 74,912 - - 78,812 74,912 Cultural, parks, recreation and natural areas 44,944 46,637 - - 44,944 46,637 Planning and development 17,482 17,486 - - 17,482 17,486 Transportation 73,047 71,975 - - 73,047 71,975 Interest on long-term debt 2,266 1,241 - - 2,266 1,241 Electric and telecommunications - - 145,582 144,992 145,582 144,992 Water - - 31,303 29,946 31,303 29,946 Wastewater - - 20,475 22,223 20,475 22,223 Storm drainage - - 10,457 10,723 10,457 10,723 Golf - - 3,206 3,260 3,206 3,260 Total expenses 260,539 257,610 211,023 211,144 471,561 468,754 Increase in net position before transfers 26,423 23,601 20,671 26,014 47,094 49,615 Transfers 2,881 3,274 ( 2,881 )( 3,274 )- - Increase in net position 29,304 26,875 17,790 22,741 47,094 49,615 Net position - beginning 1,099,504 1,072,629 851,346 828,605 1,950,849 1,901,234 Net position - ending $ 1,128,808 $ 1,099,504 $ 869,135 $ 851,346 $ 1,997,943 $ 1,950,849 Activities Governmental 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 $29.3 million, accounting for 62.2% of the City’s $47.1 million overall increase in net position. Major variations are due to the following: Sales and use taxes increased a $4.6 million (3.3%). This is an improvement over 2018 and 2017 which experienced grow rates of 2.2% and -0.3% respectively. Property taxes increased $0.5 million (1.7%). Of that, $0.4 million was from the completion of the North College District, Prospect South and Foothills Mall renovations that resulted in additional property tax increment revenue in the Urban Renewal Authority. Transportation operating grants and contributions increased in 2019 by $4.4 million with $3.6 million deriving from the Congestion Mitigation and Air Quality Improvement (CMAQ) program. Cultural Services (Culture, parks, recreation and natural areas) experienced an increase of $1.4 million (13.8%) in charges for services compared to 2018. The vast majority, $0.9 million driven by performing and visual arts. Neighborhood services increased $0.2 million and other services increased $0.3 million. Rising market rates resulted in investment earnings of $8.3 million that were $2.8 million more than the prior year. The City’s investment portfolio is entirely composed of fixed-income securities and cash equivalents. Expenses in governmental activities increased $2.9 million (1.1%) over the prior year. Personnel costs make up 47.1% of governmental activity expenses and in 2019 they increased $4.5 million (3.8%). A reduction of $1.7 million (3.6%) in expenses within cultural services contributed towards the net expenses total in governmental activities. Business-type activities. Business-type activities in the utility and golf funds increased the City’s net position by $17.8 million, accounting for 37.7% of the City’s $47.1 million increase in net position. Major variations are due to the following: Charges for services in business activities totaled $212.9 million for an increase of $0.8. million (0.4%) from 2018 to 2019. Electric and Telecommunications charges increased 2.4% year-over-year driven by a 1.8% rate increase. Water revenue decreased 6.6% compared to 2018 in part due to weather impacts coupled with water conservation efforts. Wastewater revenue decreased 2.1% from 2018 due to the same weather impacts mentioned above. Storm drainage revenue was up 2.8% from 2018. Other Utility revenues declined $8.2 million from 2018. Total Electric and Telecommunications capital grant and contribution revenues decreased $4.0 million. Total Water capital contributions and donations revenues decreased $1.2 million compared to 2018. Wastewater capital contributions declined $1.8 million in 2019 as compared to 2018. Storm drainage capital contributions and donations declined $1.2 million compared to 2018. Investment earnings increased $4.5 million as a result of higher market rates and earnings on unspent bond proceeds in Electric and Telecommunications. Business-type expenses totaled $211.0 million in 2019, a decrease of $0.1 million compared to 2018. Electric and Telecommunications expenses experience a slight increase of 0.4%. Water expenses increased $1.4 million (4.5%) driven primarily by other capital outlay. Wastewater expenses decreased $1.7 million (7.9%) driven by a decrease in net pension liability and a reduction in other personnel costs. Storm Drainage expenses also decreased $0.3 million (2.5%). 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, 2019, the total Governmental fund balances were $228.0 million, an increase of $25.7 million (12.7%) compared to the prior year. There was $1.6 million non-spendable, $81.9 million restricted, $71.3 million committed, $63.2 million assigned, and $9.9 million unassigned fund balance. The explanations for these restrictions are contained in the Notes to the Basic Financial Statements, section III.F on page 80. 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 $12.7 million which resulted in a December 31, 2019 fund balance of $24.7 million. Restricted fund balance was $13.1 million for voter approved projects and committed fund balance was $11.6 million. The largest capital project expenditures (expressed in millions) are shown in the table below. The General Fund is the chief operating fund of the City. At December 31, 2019, the total fund balance was $72.5 million. The spendable fund balance was $70.9 million. The General Fund increased $5.4 million in 2019 compared to a decrease of $3.7 million in 2018. The increase is driven primarily by tax revenue ($3.1 million) and investment earnings ($1.3) million. The Keep Fort Collins Great Special Revenue Fund is another major governmental fund of the City. As of December 31, 2019, the total fund balance was $8.4 million; the entirety of which is restricted to voter constraints. This is a decrease of $1.4 million due primarily to planned use of fund balances for both operations and capital expenditures. The Urban Renewal Authority Fund has the primary purpose of blight remedy by stimulating and leveraging private capital investment using tax increment financing in private development projects and public improvement projects. The December 31, 2019 fund balance was $1.2 million. The fund increased $5.7 million over 2018 due to Tax Increment Funding (TIF) monies that are collected through increased property tax collections. Capital Project Description Current Year Spending Life to Date Spending Prospect Road at I25 6.0$ 6.0$ Poudre River Whitewater Park 5.4 7.5 Willow Street Improvements 2.2 2.4 Gardens at Spring Creek: Visitors Center 2.2 2.6 Suniga Improvements 1.9 2.7 ADA Pedestrian Sidewalk Improvements 1.1 3.0 Sharp Point Connection 1.0 1.2 24 City of Fort Collins Comprehensive Annual Financial Report 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. General Fund Budgetary Highlights The final budgeted lapsing expenditure appropriations were $24.7 million higher than the original budget lapsing appropriations. Revision to budget revenue appropriations are generally a product of unanticipated grant revenues and/or self-funded projects being appropriated. Major revisions to lapsing appropriations are summarized below: The 2019 ordinances created new budget appropriations for the following items: $17.4 million for Prospect Road at I25, $0.5 million for additional compensation resulting from police collective bargaining agreement, $3.1 million in other changes and $3.7 million for purchase orders that were carried forward from 2018. The variance between actual lapsing expenditures and the final budget amounted to $5.9 million (3.4%) less than budget. Total lapsing expenditures of $172.7 million were $18.9 million (12.3%) higher than in 2018. The decreased expenditures versus budget in the general fund were primarily due to the following: $2.0 million less than budget was spent on property services, $1.0 million less than budget was spent on capital outlay and $2.8 million less on various grants, sponsorships and donations across all service areas. The City expects to maintain its solid financial condition by continuous control over expenditures and through the evaluation of viable options for diversifying revenues. (amounts expressed in thousands, totals may not add due to rounding) Unrestricted Change in Net Position Net Position for Year Ended Proprietary Funds 12/31/2019 12/31/2019 Electric and Telecommunications $ 27,375 ( 19 ) Water 74,713 5,781 Wastewater 45,250 5,598 Storm Drainage 22,585 8,303 Total of Major Enterprise Funds 169,923 19,664 Other Enterprise Fund - Golf 1,045 495 Total Enterprise Funds 170,968 20,158 Internal Service Funds 22,552 4,306 Total Proprietary Funds $ 193,519 $ 24,465 Change in Net Position - Proprietary Funds City of Fort Collins Comprehensive Annual Financial Report 25 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, 2019 amounted to $1.6 billion (net of accumulated depreciation). This was an increase of $47.9 million (2.9%). This investment in capital assets includes land, water rights, buildings and improvements, machinery, equipment, and light and 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 three-year cycle. The most recent three-year assessment was completed as of May 1, 2019. It resulted in a Pavement Condition Index (PCI) rating of 74.6. It met the City’s policy of achieving a good (Level of Service B) rating. For 2019, the City spent $16.0 million on its street maintenance program as compared to $18.4 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 95-99 of this report. Major capital improvements during this fiscal year included the following: Governmental Activities Prospect Road at I25 $ 6.0 million Poudre River Whitewater Park 5.4 million Willow Street Improvements 2.2 million Gardens at Spring Creek: Visitors Center 2.2 million Suniga Improvements 1.9 million ADA Pedestrian Sidewalk Improvements 1.1 million Sharp Point Connection 1.0 million Business Activities Broadband/Telecommunications Systems 21.7 million Light & Power Systems 10.3 million Water systems 8.7 million Storm Drainage systems 7.1 million Wastewater systems 7.0 million Additional information on the City’s capital assets can be found in Note III.C on pages 68-69 of this report. Capital Assets Net of Depreciation as of December 31 (amounts expressed in thousands, totals may not add due to rounding) Governmental Business-type TotalActivitiesActivitiesPrimary Government 2019 2018 2019 2018 2019 2018 Land, rights of way, water rights, other $ 246,769 $ 241,686 $ 73,975 $ 73,714 $ 320,744 $ 315,400 Street system infrastructure 347,390 347,390 - - 347,390 347,390 Construction in progress 71,683 63,365 113,046 85,788 184,729 149,153 Infrastructure 13,921 14,192 3,202 3,338 17,123 17,530 Buildings and improvements 94,633 97,435 124,246 129,281 218,878 226,716 Improvements other than buildings 111,386 104,154 423,013 418,758 534,399 522,912 Machinery and equipment 34,977 28,958 28,350 30,611 63,328 59,569 Total capital assets $ 920,760 $ 897,181 $ 765,832 $ 741,489 $ 1,686,592 $ 1,638,670 26 City of Fort Collins Comprehensive Annual Financial Report Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $216.5 million (bonds, certificates of participation, capital leases, etc.). This was an increase of $17.9 million (9.0%) due to the issuance of the 2019 COPs. Of the outstanding amount, $164.6 million represents bonds secured by specified revenue sources (i.e., revenue bonds). The remaining $51.9 million represents debt primarily secured by the new facilities or equipment being financed by certificates of participation, assignment of lease payments or capital leases. Additional information on the City’s long-term obligations can be found in Note III.E on pages 71-79 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 Director’s attention at the following address: Accounting Director 215 North Mason Street 2nd Floor PO Box 580 Fort Collins, CO 80522-0580 Outstanding Debt as of December 31 (amounts expressed in thousands, totals may not add due to rounding) Governmental Business-type Total Activities Activities Primary Government 2019 2018 2019 2018 2019 2018 Revenue bonds $ 12,640 $ 8,265 $ 151,959 $ 157,109 $ 164,599 $ 165,374 Certificates of participation 43,085 24,185 - - 43,085 24,185 Assignment of lease payments 130 191 413 606 543 797 Capital leases 7,384 7,359 933 906 8,317 8,265 Total outstanding debt $ 63,239 $ 40,000 $ 153,305 $ 158,621 $ 216,545 $ 198,621 BASIC FINANCIAL INFORMATION BASIC FINANCIALINFORMATION 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, 2019 Primary Government -- City of Fort Collins Governmental Business-type Component Activities Activities Total Unit ASSETS Cash and cash equivalents 31,508,600$ 21,917,958$ 53,426,558$ 621,694$ Investments 226,888,450 165,714,572 392,603,022 4,903,774 Receivables: Property taxes 34,611,907 - 34,611,907 7,554,286 Sales and use taxes 14,601,760 - 14,601,760 - Accounts, net 4,938,521 20,681,070 25,619,591 9,037 Notes - 1,334,848 1,334,848 - Interest 1,104,270 1,242,475 2,346,745 42,633 Prepaid 492,794 - 492,794 - Internal Balances 18,044,822 (18,044,822) - - Due from other governments 6,507,889 - 6,507,889 - Inventories of materials and supplies 685,098 5,973,111 6,658,209 - Inventory of real property held for resale 1,477,894 - 1,477,894 135,464 Restricted cash and cash equivalents 3,302,755 59,803,250 63,106,005 - Restricted investments - 53,464,067 53,464,067 1,250,000 Investment in joint venture 8,590,486 - 8,590,486 - Capital assets (non-depreciable)665,842,686 187,020,637 852,863,323 2,528,747 Capital assets (net of accumulated depreciation)254,917,165 578,811,639 833,728,804 2,268,775 Total assets 1,273,515,097 1,077,918,805 2,351,433,902 19,314,410 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 790,232 1,187,710 1,977,942 - Total deferred outflows of resources 790,232 1,187,710 1,977,942 - LIABILITIES Accounts payable 14,625,194 20,247,325 34,872,519 161,756 Interest payable 246,113 559,356 805,469 12,288 Wages payable 5,121,348 1,994,578 7,115,926 28,261 Compensated absences 7,583,755 2,341,099 9,924,854 13,323 Due to other governments 214,153 - 214,153 - Unearned revenue 1,338,123 8,546,736 9,884,859 - Deposits held 214,131 5,671 219,802 - Non-current liabilities Due within one year 11,240,669 4,176,779 15,417,448 1,757,598 Due in more than one year 68,582,551 170,458,554 239,041,105 4,174,088 Total liabilities 109,166,037 208,330,098 317,496,135 6,147,314 DEFERRED INFLOWS OF RESOURCES Property taxes 34,611,907 - 34,611,907 7,554,286 Other pension-related items 1,719,665 1,641,204 3,360,869 Total deferred inflows of resources 36,331,572 1,641,204 37,972,776 7,554,286 NET POSITION Net investment in capital assets 855,974,413 717,336,311 1,573,310,724 4,797,522 Restricted for: Debt service 3,253,043 - 3,253,043 1,506,772 Capital projects 36,585,207 - 36,585,207 - Donations and grants 841,900 - 841,900 - Parks and natural areas 22,896,032 - 22,896,032 Development agreements 2,070,613 - 2,070,613 - Emergencies 7,105,519 - 7,105,519 - Other 8,879,874 - 8,879,874 Unrestricted (deficit)191,201,119 151,798,902 343,000,021 (691,484) Total Net Position 1,128,807,720$ 869,135,213$ 1,997,942,933$ 5,612,810$ 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, 2019 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTIONS/ PROGRAM ACTIVITIES: Primary Government: Governmental Activities: General government 43,988,242$ 9,069,397$ 967,180$ 672,217$ Public safety 78,812,228 1,658,698 3,094,624 712,602 Culture, parks, recreation and natural areas 44,943,834 11,174,806 822,115 6,321,054 Planning and development 17,481,640 3,799,809 1,102,875 - Transportation 73,046,565 12,738,338 8,870,905 7,394,194 Interest on long-term debt 2,266,155 - - - Total Governmental Activities 260,538,664 38,441,048 14,857,699 15,100,067 Business-type Activities: Electric and Telecommunications 145,581,667 136,031,720 461,068 3,225,603 Water 31,303,463 31,902,600 1,454 2,075,905 Wastewater 20,474,587 24,043,505 - 538,797 Storm Drainage 10,456,844 17,483,009 - 709,900 Golf 3,206,203 3,486,916 - - Total Business-type Activities 211,022,764 212,947,750 462,522 6,550,205 Total Primary Government 471,561,428 251,388,798 15,320,221 21,650,272 Component Unit: Downtown Development Authority 3,080,890$ 91,419$ 87,108$ -$ 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 (33,279,448)$ $(33,279,448)$ $ (73,346,304) (73,346,304) (26,625,859) (26,625,859) (12,578,956) (12,578,956) (44,043,128) (44,043,128) (2,266,155) (2,266,155) (192,139,850) (192,139,850) (5,863,276) (5,863,276) 2,676,496 2,676,496 4,107,715 4,107,715 7,736,065 7,736,065 280,713 280,713 - 8,937,713 8,937,713 (192,139,850) 8,937,713 (183,202,137) (2,902,363) General Revenues Sales & use taxes 143,144,963 - 143,144,963 - Property taxes 29,870,914 - 29,870,914 6,662,654 Occupational privilege taxes 2,658,592 - 2,658,592 - Lodging taxes 1,946,406 - 1,946,406 - Intergovernmental not restricted to programs 27,649,790 - 27,649,790 - Investment earnings 8,253,312 9,283,544 17,536,856 216,591 Miscellaneous 5,038,986 2,449,379 7,488,365 20,463 Transfers 2,880,930 (2,880,930) - - Total general revenues and transfers 221,443,893 8,851,993 230,295,886 6,899,708 Changes in Net Position 29,304,043 17,789,706 47,093,749 3,997,345 Net Position --January 1 1,099,503,677 851,345,507 1,950,849,184 1,615,465 Net Position --December 31 1,128,807,720$ 869,135,213$ 1,997,942,933$ 5,612,810$ 32 City of Fort Collins Comprehensive Annual Financial Report GOVERNMENTAL FUNDS BALANCE SHEET DECEMBER 31, 2019 Primary Government Keep Urban Total Fort Collins Capital Renewal Other Total General Great Projects Authority Governmental Governmental ASSETS Cash and cash equivalents 6,284,941$ 616,624$ 3,294,218$ 145,337$ 13,772,397$ 24,113,517$ Investments 61,218,152 5,655,053 23,934,821 1,147,245 107,746,845 199,702,116 Receivables Property taxes 27,115,072 - - 7,143,521 353,314 34,611,907 Sales and use taxes 9,481,789 3,061,581 - - 2,058,390 14,601,760 Accounts, net 1,337,142 - 317,422 - 3,223,994 4,878,558 Interest 297,212 27,404 115,996 5,555 522,132 968,299 Prepaid item 18,940 - - - - 18,940 Due from other funds - - - - 259,420 259,420 Advances to other funds - - - - 758,093 758,093 Due from other governments 114,914 - 2,698,856 - 3,438,441 6,252,211 Inventory of real property held for resale 1,477,894 - - - - 1,477,894 Restricted - cash and cash equivalents 49,713 - - 1,389,136 - 1,438,849 Total Assets 107,395,769 9,360,662 30,361,313 9,830,794 132,133,026 289,081,564 LIABILITIES Accounts payable, accruals, and other 4,030,212 633,241 2,369,233 9,937 5,726,840 12,769,463 Wages payable 2,893,464 309,245 33,370 6,373 1,442,781 4,685,233 Due to other governments 198,334 - - - 15,819 214,153 Due to other funds - 26,858 202,952 - 65,140 294,950 Unearned revenue - - 2,117 - 1,336,006 1,338,123 Advance from other funds - - - 1,516,186 - 1,516,186 Deposits held 68,559 - - - 145,572 214,131 Total Liabilities 7,190,569 969,344 2,607,672 1,532,496 8,732,158 21,032,239 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 27,115,072 - - 7,143,521 353,314 34,611,907 Unavailable revenue - grants 614,163 - 3,013,812 - 1,707,200 5,335,175 Unavailable revenue - other - - - - 151,275 151,275 Total Deferred Inflows of Resources 27,729,235 - 3,013,812 7,143,521 2,211,789 40,098,357 FUND BALANCES (DEFICIT) Nonspendable 1,621,834 - - - - 1,621,834 Restricted 10,262,203 8,391,318 13,106,392 1,390,827 48,740,747 81,891,487 Committed 10,334,005 - 11,633,437 - 49,359,681 71,327,123 Assigned 40,093,974 - - - 23,088,651 63,182,625 Unassigned 10,163,949 - - (236,050) - 9,927,899 Total Fund Balances 72,475,965 8,391,318 24,739,829 1,154,777 121,189,079 227,950,968 Total Liabilities, Deferred Inflows of Resources and Fund Balances 107,395,769$ 9,360,662$ 30,361,313$ 9,830,794$ 132,133,026$ 289,081,564$ 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, 2019 Amounts reported for governmental activities in the statement of net position (page 29) are different because: Total fund balances - governmental funds (page 32)227,950,968 Capital assets of $1,114,406,011 net of accumulated depreciation of $206,560,958 used in governmental activities are not financial resources, therefore, are not reported in the funds.907,845,053 City's joint venture equity interest in Fort Collins/Loveland Airport.8,590,486 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as a deferred inflow of resources in the funds.5,486,450 Internal service fund allocated to business type activities 18,851,205 Long-term liabilities are not due and payable in the current period and therefore are not reported in funds: Bonds payable (12,640,000) Certificates of Participation (43,085,000) Assignment of lease (129,910) Premium (2,336,390) Deferred loss on refunding, net of deferred gain 790,232 Interest payable (212,574) Compensated absences (6,919,048) Net pension liability (5,824,420) T otal OPEB liability (209,006) (70,566,116) Deferred inflow of resources, other pension-related items (1,478,024) Internal service funds are used by management to charge the costs of certain activities to individual funds. Except for the utility customer service and administrative fund, the assets/deferred outflows of resources and liabilities/deferred inflows of resources of the internal service funds are included in the governmental activities in the statement of net position.32,127,698 Net position of governmental activities (page 29)1,128,807,720 The notes to the financial statements are an integral part of this statement. 34 City of Fort Collins Comprehensive Annual Financial Report GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2019 Primary Government Keep Urban Total Fort Collins Capital Renewal Other Total General Great Projects Authority Governmental Governmental REVENUES Taxes 116,593,702$ 28,904,768$ -$ 6,130,429$ 25,991,976$ 177,620,875$ Licenses and permits 3,509,596 - - - 347,183 3,856,779 Intergovernmental 16,526,016 - 2,106,132 - 32,750,559 51,382,707 Fees and charges for services 9,793,971 - 49,575 - 26,591,401 36,434,947 Fines and forfeitures 1,764,265 - - - 999,973 2,764,238 Earnings on investments 2,930,084 251,728 180,882 95,326 3,814,190 7,272,210 Miscellaneous revenue 1,099,084 203 922,911 - 941,861 2,964,059 Total Revenues 152,216,718 29,156,699 3,259,500 6,225,755 91,437,143 282,295,815 EXPENDITURES Current Police services 41,776,651 6,085,925 - - - 47,862,576 Financial services 4,599,848 - - - - 4,599,848 Community services 14,160,785 3,837,984 2,712,651 - 19,977,966 40,689,386 Planning, development and transportation 10,258,328 13,612,724 4,459,453 - 42,960,565 71,291,070 Executive, legislative, and judicial 7,780,374 91,626 - - - 7,872,000 Information and employee services 17,548,639 404,384 884 - - 17,953,907 Sustainability services 5,655,946 1,464,804 1,395 4,197,835 1,265,347 12,585,327 Other 1,674,285 - - - 2,000 1,676,285 Intergovernmental Fire protection 26,715,616 3,108,875 - - - 29,824,491 Capital outlay 3,543,157 1,869,132 18,722,798 - 15,370,967 39,506,054 Debt service Principal 60,769 - - 615,000 4,965,000 5,640,769 Interest and debt service costs 2,784 - - 828,937 1,128,625 1,960,346 Total Expenditures 133,777,182 30,475,454 25,897,181 5,641,772 85,670,470 281,462,059 Excess of Revenues Over (Under) Expenditures 18,439,536 (1,318,755) (22,637,681) 583,983 5,766,673 833,756 OTHER FINANCING SOURCES (USES) Transfers in 2,297,362 - 35,932,882 - 28,530,047 66,760,291 Transfers out (41,060,644) (127,500) (555,922) (300,000) (31,251,944) (73,296,010) Debt Debt issued 23,865,000 - - 4,990,000 - 28,855,000 Premium on debt 1,879,179 - - 338,863 - 2,218,042 Sale of capital assets - - - - 315,061 315,061 Total Other Financing Sources (Uses)(13,019,103) (127,500) 35,376,960 5,028,863 (2,406,836) 24,852,384 Net Changes in Fund Balances (Deficit)5,420,433 (1,446,255) 12,739,279 5,612,846 3,359,837 25,686,140 Fund Balances (Deficit)-January 1 67,055,532 9,837,573 12,000,550 (4,458,069) 117,829,242 202,264,828 Fund Balances -December 31 72,475,965$ 8,391,318$ 24,739,829$ 1,154,777$ 121,189,079$ 227,950,968$ 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, 2019 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)25,686,140$ 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, $37,466,804, exceeded depreciation, $15,396,136, in the current period.22,070,668 The net effect of disposal of capital assets (21,671) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds.(123,603) 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 5,640,769 Debt issued (28,855,000) Premium on debt issued (2,218,042) Amortization of premium, deferred amount of refunding (20,572) Interest expense (75,987) (25,528,832) In the statement of activities, certain expenses - compensated absences, other post-employment benefits and pension expense - are measured by the amounts incurred during the year. In the governmental funds, however, expenditure for these items are measured by the amount of financial resources used or due (essentially, the amounts actually paid). These amounts represent the net effect of compensated absences, other post-employment benefits and pension-related amounts on the statement of activities. Change in net pension liability 4,374,557 Change in postemployment healthcare benefits (56,154) Change in compensated absences (574,041) 3,744,362 Expenses in Statement of Activities related to City's Equity in Joint Venture Change in Non-Capital Equity position in Fort Collins/Loveland Airport (615,737) Change in deferred outflow of resources, other pension-related items (2,582,174) Allocation of internal service fund net position to business type activities 2,300,025 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.4,374,865 Change in net position of governmental activities (pages 30-31)29,304,043$ 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, 2019 Original Final Actual Budget Budget Variance REVENUES Programs Taxes 116,593,702$ 114,578,400$ 114,578,400$ 2,015,302$ Licenses and permits 3,509,596 3,920,000 3,920,000 (410,404) Intergovernmental 14,366,917 13,922,544 13,958,980 407,937 Fees and charges for services 9,793,971 9,820,105 10,285,421 (491,450) Fines and forfeitures 1,764,265 2,557,124 2,581,268 (817,003) Earnings on investments 2,930,084 1,476,020 1,476,020 1,454,064 Miscellaneous revenue 1,060,038 939,105 1,004,095 55,943 Proceeds from issuance of long-term debt 17,402,484 - 17,402,484 - Transfers 3,272,003 3,115,143 3,296,163 (24,160) Projects Intergovernmental 4,961,967 - 6,684,452 (1,722,485) Miscellaneous revenue 3,036,504 - 4,401,901 (1,365,397) Proceeds from issuance of long-term debt 8,341,695 - 8,341,695 - Transfers 107,782 - 134,782 (27,000) Total Revenues 187,141,008 150,328,441 188,065,661 (924,653) EXPENDITURES Programs (fund level of budgetary control) Community services 14,843,901 15,174,158 16,488,177 1,644,276 Information and employee services 18,067,013 18,185,805 19,762,411 1,695,398 Executive, legislative, and judicial 7,613,475 7,938,050 8,065,597 452,122 Financial services 4,599,848 4,546,064 4,701,724 101,876 Fire protection 26,715,616 26,715,616 26,715,616 - Other 43,402,747 26,676,688 44,427,583 1,024,836 Planning, development and transportation 10,196,300 9,486,849 10,160,003 (36,297) Police services 41,820,896 40,296,270 41,740,674 (80,222) Sustainability services 5,478,635 4,832,651 6,530,042 1,051,407 Projects (project level of budgetary control) Community services 274,833 - 280,760 5,927 Information and employee services 153,431 - 4,096,143 3,942,712 Executive, legislative, and judicial 700,358 - 568,820 (131,538) Planning, development and transportation 636,943 - 1,092,186 455,243 Police services 3,951,425 - 14,569,089 10,617,664 Sustainability services 1,492,480 - 1,593,671 101,191 Total Expenditures 179,947,901 153,852,151 200,792,496 20,844,595 Excess of revenues over (under) expenditures 7,193,107 (3,523,710)$ (12,726,835)$ 19,919,942$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 4,164,275 Prior Years' Project Revenues (5,936,949) Eliminated Intrafund Transfers-out 945,801 Eliminated Intrafund Transfers-in (945,801) Total Reconciling Items (1,772,674) Net Change in Fund Balances 5,420,433 Fund Balances--January 1 67,055,532 Fund Balances--December 31 72,475,965$ 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 BALANCE-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Original Final Actual Budget Budget Variance REVENUES Programs Earnings on investments 251,728$ 261,104$ 261,104$ (9,376)$ Miscellaneous revenue 203 - - 203 Taxes 28,904,768 28,200,200 28,200,200 704,568 Total Revenues 29,156,699 28,461,304 28,461,304 695,395 EXPENDITURES Programs (fund level of budgetary control) Fire Protection 3,268,232 3,130,359 3,130,359 (137,873) Other Community Priorities 3,077,955 3,185,614 3,911,549 833,594 Other Street and Transportation 2,454,484 2,540,860 2,627,620 173,136 Parks and Recreation 3,263,607 3,508,858 3,779,610 516,003 Police services 5,977,783 5,986,498 6,006,277 28,494 Street Maintenance 8,502,822 7,606,019 9,553,845 1,051,023 Projects (project level of budgetary control) Capital Maintenance 9,387,544 9,522,137 9,524,762 137,218 City Bridge Program 5,299,462 16,175,706 6,425,560 1,126,098 Dial-A-Ride Operations 1,747,917 1,747,917 1,747,917 - FC Bikes 670,338 819,419 672,447 2,109 Safe Routes to School 1,309,699 1,316,000 1,316,000 6,301 Senior Center Expansion 750,000 750,000 750,000 - Trail Acquisition & Development 827,000 827,000 827,000 - CCIP Community Capital Imp Plan 139,462 - 500,000 360,538 Total Expenditures 46,676,305 57,116,387 50,772,946 4,096,641 Excess of revenues over (under) expenditures (17,519,606) (28,655,083)$ (22,311,642)$ 4,792,036$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 16,073,351 Total Reconciling Items 16,073,351 Net Change in Fund Balance (1,446,255) Fund Balance--January 1 9,837,573 Fund Balance--December 31 8,391,318$ The notes to the financial statements are an integral part of this statement. 38 City of Fort Collins Comprehensive Annual Financial Report URBAN RENEWAL AUTHORITY (CONSOLIDATED) STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT)-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Original Final Actual Budget Budget Variance REVENUES Programs Taxes 6,130,429 5,556,502 5,556,502 573,927 Earnings on investments 95,326 37,033 37,033 58,293 Proceeds from issuance of long-term debt 5,328,863 - - 5,328,863 Total Revenues 11,554,618 5,593,535 5,593,535 5,961,083 EXPENDITURES Programs (fund level of budgetary control) Debt & other uses 6,164,048 1,637,781 1,661,492 (4,502,556) Other purchased services 40,101 11,790 11,790 (28,311) Personnel costs 224,802 302,542 302,542 77,740 Purchased prof & tech services 458,371 238,816 594,900 136,529 Purchased property services 3,467,414 3,369,648 3,733,459 266,045 Supplies 7,147 7,100 7,100 (47) Transfers 300,000 300,000 300,000 - Total Expenditures 10,661,883 5,867,677 6,611,283 (4,050,600) Excess of revenues over (under) expenditures 892,735 (274,142)$ (1,017,748)$ 1,910,483$ RECONCILIATION TO GAAP BASIS Principal reduction--advances payable 4,720,111 Total Reconciling Items 4,720,111 Net Change in Fund Balance (Deficit)5,612,846 Fund Balance (Deficit)--January 1 (4,458,069) Fund Balance (Deficit)--December 31 1,154,777$ The notes to the financial statements are an integral part of this statement. City of Fort Collins Comprehensive Annual Financial Report 39 THIS PAGE INTENTIONALLY LEFT BLANK 40 City of Fort Collins Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF NET POSITION DECEMBER 31, 2019 Electric and Telecom-Storm munications Water Wastewater Drainage ASSETS Current Assets Cash and cash equivalents 3,240,050$ 9,395,837$ 5,291,639$ 2,764,598$ Investments 25,498,944 74,108,533 41,739,911 21,805,480 Receivables - Accounts, net 14,135,503 2,483,531 2,300,914 1,748,977 Interest 563,537 359,137 202,265 105,672 Prepaid item - - - - Due from other funds - - - - Due from other governments - - - - Inventories of materials and supplies 5,973,111 - - - Total Current Assets 49,411,145 86,347,038 49,534,729 26,424,727 Non-Current Assets Advance to other funds - 758,093 - - Restricted - cash and cash equivalents 59,803,250 - - - Restricted - investments 53,464,067 - - - Land, water rights, other 1,777,331 57,249,601 3,423,833 8,642,728 Buildings, improvements and equipment 350,170,418 320,807,429 250,544,975 149,254,756 Accumulated depreciation (186,192,330) (151,503,197) (112,051,332) (46,706,218) Construction in progress 36,487,607 32,611,855 21,887,957 21,962,622 Note receivable 1,334,848 - - - Total Non-Current Assets 316,845,191 259,923,781 163,805,433 133,153,888 Total Assets 366,256,336 346,270,819 213,340,162 159,578,615 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding - - 1,046,814 140,896 Total Deferred Outflows of Resources - - 1,046,814 140,896 LIABILITIES Current Liabilities Accounts payable 14,194,519 1,306,340 1,551,315 2,898,044 Interest payable 485,752 3,804 54,892 8,647 Wages payable 669,452 405,954 279,393 145,389 Compensated absences 890,865 503,964 331,494 180,196 Bonds payable - 142,571 1,985,000 1,520,000 Claims payable - - - - Due to other funds - 29,610 - - Capital lease obligations 24,737 - - 50,737 Unearned revenue 520,932 8,025,804 - - Total Current Liabilities 16,786,257 10,418,047 4,202,094 4,803,013 Non-Current Liabilities Postemployment benefits 1,157,322 1,683,507 1,654,044 484,640 Bonds payable 142,166,479 804,261 18,019,476 2,132,983 Claims payable - - - - Capital lease obligations 12,560 - - 43,657 Deposits held - 5,671 - - Total Non-Current Liabilities 143,336,361 2,493,439 19,673,520 2,661,280 Total Liabilities 160,122,618 12,911,486 23,875,614 7,464,293 DEFERRED INFLOWS OF RESOURCES Other pension-reletated items 287,098 427,254 413,167 123,000 Total Deferred Inflows of Resources 287,098 427,254 413,167 123,000 NET POSITION Net investment in capital assets 178,472,086 258,218,855 144,847,772 129,547,408 Restricted: fiscal agent - - - - Unrestricted 27,374,534 74,713,224 45,250,423 22,584,810 Total Net Position 205,846,620$ 332,932,079$ 190,098,195$ 152,132,218$ 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: Net position of business-type activities (page 29). The notes to the financial statements are an integral part of this statement. City of Fort Collins Comprehensive Annual Financial Report 41 Non Major Enterprise Fund Enterprise Internal Golf Funds Service Funds 182,709$ 20,874,833$ 8,438,208$ 1,427,998 164,580,866 28,320,040 12,145 20,681,070 59,963 6,382 1,236,993 141,453 - - 473,854 - - 77,900 - - 255,678 - 5,973,111 685,098 1,629,234 213,346,873 38,452,194 - 758,093 - - 59,803,250 1,863,906 - 53,464,067 - 2,881,310 73,974,803 30,126 9,739,529 1,080,517,107 31,849,584 (5,707,319) (502,160,396) (19,527,769) 95,793 113,045,834 1,017,784 - 1,334,848 - 7,009,313 880,737,606 15,233,631 8,638,547 1,094,084,479 53,685,825 - 1,187,710 - - 1,187,710 - 99,443 20,049,661 2,053,394 6,261 559,356 33,941 52,615 1,552,803 877,890 77,801 1,984,320 1,021,487 - 3,647,571 - - - 4,189,333 - 29,610 12,760 453,734 529,208 2,717,936 - 8,546,736 - 689,854 36,899,265 10,906,741 278,030 5,257,543 2,212,644 - 163,123,199 - - - 3,073,267 760,268 816,485 4,666,436 - 5,671 - 1,038,298 169,202,898 9,952,347 1,728,152 206,102,163 20,859,088 70,564 1,321,083 561,564 70,564 1,321,083 561,564 5,795,262 716,881,383 7,849,259 - - 1,863,906 1,044,569 170,967,560 22,552,008 6,839,831$ 887,848,943 32,265,173$ 137,475 (18,851,205) 869,135,213$ 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, 2019 Electric and Telecom-S torm munications Water Wastewater Drainage OPERATING REVENUES Charges for services 135,142,673$ 31,659,641$ 23,887,186$ 17,441,127$ Other revenue 2,092,359 309,511 169,271 48,609 Total Operating Revenues 137,235,032 31,969,152 24,056,457 17,489,736 OPERATING EXPENSES Personnel services 12,062,853 7,597,012 5,359,283 2,617,714 Contractual services 12,114,020 6,962,135 3,656,212 1,409,929 Commodities 94,279,254 1,827,666 1,088,612 234,693 Customer service and administrative charges 6,404,807 3,699,988 2,113,894 2,519,370 Other 2,874,322 3,222,711 1,032,460 223,402 Depreciation 11,675,416 7,392,558 6,266,408 2,960,096 Total Operating Expenses 139,410,672 30,702,070 19,516,869 9,965,204 Operating Income (Loss)(2,175,640) 1,267,082 4,539,588 7,524,532 NONOPERATING REVENUES (EXPENSES) Earnings on investments 4,419,673 2,464,204 1,476,591 770,408 Intergovernmental 193,858 6,454 - - Gain (loss) on sale of capital assets 95,018 34,006 (67,677) 1,865 Interest expense (5,281,946) (59,627) (591,795) (292,774) Total Nonoperating Revenues (Expenses)(573,397) 2,445,037 817,119 479,499 Income (Loss) Before Contributions and Transfers (2,749,037) 3,712,119 5,356,707 8,004,031 Capital contributions 3,225,603 2,075,905 538,797 709,900 Transfers in - 333,000 - - Transfers out (495,153) (339,529) (297,777) (411,045) Change in Net Position (18,587) 5,781,495 5,597,727 8,302,886 Net Position--January 1 205,865,207 327,150,584 184,500,468 143,829,332 Net Position--December 31 205,846,620$ 332,932,079$ 190,098,195$ 152,132,218$ Adjustment to reflect the consolidation of internal service fund net position related to enterprise funds: Allocation of governmental activities related to internal service fund net position: Change in net position of business-type activities (pages 30-31) The notes to the financial statements are an integral part of this statement. City of Fort Collins Comprehensive Annual Financial Report 43 Non Major Enterprise Fund Enterprise Internal Golf Funds Service Funds 3,454,944$ 211,585,571$ 62,528,044$ 46,868 2,666,618 5,192,739 3,501,812 214,252,189 67,720,783 1,293,165 28,930,027 20,048,029 1,020,066 25,162,362 45,528,384 379,913 97,810,138 3,654,692 - 14,738,059 - 43,850 7,396,745 891,791 349,193 28,643,671 2,185,069 3,086,187 202,681,002 72,307,965 415,625 11,571,187 (4,587,182) 46,360 9,177,236 1,088,257 - 200,312 26,285 6,761 69,973 130,493 (30,263) (6,256,405) (209,253) 22,858 3,191,116 1,035,782 438,483 14,762,302 (3,551,400) - 6,550,205 167,760 125,000 458,000 10,508,606 (68,600) (1,612,104) (2,818,783) 494,883 20,158,404 4,306,183 6,344,948 27,958,990 6,839,831$ 32,265,173$ (68,674) (2,300,024) 17,789,706$ 44 City of Fort Collins Comprehensive Annual Financial Report STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019 Electric and Telecom- munications Water Wastewater Storm Drainage CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users 134,939,331$ 39,948,744$ 24,107,370$ 17,403,116$ Receipts from interfund services provided - - - - Cash paid to employees for services (12,211,087) (8,024,192) (5,797,258) (2,763,399) Cash paid to other suppliers of goods & services (115,360,433) (16,179,262) (7,681,548) (4,565,896) Payments for interfund services used - (3,538) (36,292) (1,568) Other receipts 2,092,359 309,511 169,271 48,609 Net cash provided (used) by operating activities 9,460,170 16,051,263 10,761,543 10,120,862 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 333,000 - - Transfers to other funds (495,153) (339,529) (297,777) (411,045) Advances from other funds - 133,346 - - Net cash provided (used) by noncapital financing activities (495,153) 126,817 (297,777) (411,045) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt - - - - Capital contributions 3,225,603 2,075,905 538,797 709,900 Purchases of capital assets (31,439,589) (6,935,531) (6,771,980) (7,479,241) Principal paid on capital debt (24,237) (306,925) (2,156,609) (3,035,490) Interest paid on capital debt (5,828,864) (62,191) (464,206) (191,954) Proceeds from sales of capital assets - 34,006 12,202 1,865 Grant proceeds from federal government 193,858 6,454 - 824,379 Net cash (used) by capital and related financing activities (33,873,229) (5,188,282) (8,841,796) (9,170,541) CASH FLOWS FROM INVESTING ACTIVITIES Payments received for note receivable (236,428) (2,510) - - Sale/maturity of restricted investments 49,564,617 - - - (Increase)/decrease in pooled investments (6,893,020) (11,392,749) (2,428,657) (991,188) Earnings received on investments 4,436,273 2,369,347 1,440,065 751,140 Net cash provided (used) by investing activities 46,871,442 (9,025,912) (988,592) (240,048) Net increase in cash and cash equivalents 21,963,230 1,963,886 633,378 299,228 Cash and cash equivalents, January 1 (cash & cash equivalents includes cash held by fiscal agent and restricted assets - cash & cash equivalents)41,080,070 7,431,951 4,658,261 2,465,370 Cash and cash equivalents, December 31 (cash & cash equivalents includes restricted assets - cash & cash equivalents)63,043,300$ 9,395,837$ 5,291,639$ 2,764,598$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)(2,175,640) 1,267,082 4,539,588 7,524,532 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 11,675,416 7,392,558 6,266,408 2,960,096 (Increase) decrease in accounts receivable (524,274) 263,299 220,184 (38,011) (Increase) decrease in inventories (363,889) - - - (Increase) decrease in prepaid item - - - - (Increase) decrease in pension-related items 501,506 746,335 721,722 214,860 Increase (decrease) in accounts payable 675,859 (466,762) 209,630 (178,502) Increase (decrease) in compensated absences payable 72,858 34,370 35,135 (4,495) Increase (decrease) in post-employment benefits (847,037) (1,264,366) (1,220,124) (364,014) Increase (decrease) in wages payable 124,439 56,481 25,292 7,964 Increase (decrease) in claims payable - - - - Increase (decrease) in intergovernmental payable - (3,538) (36,292) (1,568) (Decrease) in unearned revenue 320,932 8,025,804 - - Net cash provided (used) by operating activities 9,460,170$ 16,051,263$ 10,761,543$ 10,120,862$ Noncash investing, capital, and financing activities: Unrealized gain/(loss) on pooled investments 310,323 995,782 619,262 317,032 Unrealized gain/(loss) on restricted investments 163,764 - - - Reconciliation of cash and cash equivalents to statement of net position: Cash and cash equivalents 3,240,050 9,395,837 5,291,639 2,764,598 Restricted Assets - cash and cash equivalents 59,803,250 - - - 63,043,300$ 9,395,837$ 5,291,639$ 2,764,598$ The notes to the financial statements are an integral part of this statement. City of Fort Collins Comprehensive Annual Financial Report 45 Non Major Enterprise Fund Total Total Internal Golf Enterprise Funds Service Funds 3,463,575$ 219,862,136$ -$ - - 63,185,923 (1,367,071) (30,163,007) (20,660,247) (1,455,231) (145,242,370) (49,480,820) - (41,398) (6,931) 46,868 2,666,618 5,192,739 688,141 47,081,979 (1,769,336) 125,000 458,000 10,508,606 (68,600) (1,612,104) (2,818,783) - 133,346 - 56,400 (1,020,758) 7,689,823 379,103 379,103 3,123,743 - 6,550,205 167,760 (405,609) (53,031,950) (797,606) (472,590) (5,995,851) (3,098,700) (30,476) (6,577,691) (204,335) 6,761 54,834 (2,726,489) - 1,024,691 121,405 (522,811) (57,596,659) (3,414,222) - (238,938) - - 49,564,617 - (248,181) (21,953,795) (1,767,303) 44,918 9,041,743 1,071,318 (203,263) 36,413,627 (695,985) 18,467 24,878,189 1,810,280 164,242 55,799,894 8,491,834 182,709$ 80,678,083$ 10,302,114$ 415,625 11,571,187 (4,587,182) 349,193 28,643,671 2,185,069 8,631 (70,171) 657,879 - (363,889) (15,063) - - (123,722) 123,262 2,307,685 980,952 (11,402) 228,823 310,381 (178) 137,690 23,609 (208,830) (3,904,371) (1,661,927) 11,840 226,016 45,148 - - 422,451 - (41,398) (6,931) - 8,346,736 - 688,141$ 47,081,979$ (1,769,336)$ 19,633 2,262,032 437,270 - 163,764 - 182,709 20,874,833 8,438,208 - 59,803,250 1,863,906 182,709$ 80,678,083$ 10,302,114$ 46 City of Fort Collins Comprehensive Annual Financial Report STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS DECEMBER 31, 2019 Assets Cash and cash equivalents 3,436,361$ -$ 4,409,649$ Receivables Tax and in-Lieu collections - - 11,588 Interest 69,902 137,456 - Total Receivables 69,902 137,456 11,588 Investments at fair value US government securities 10,723,459 24,866,857 - Corporate securities 1,148,955 3,496,627 - Bonds - mutual funds 267,704 - - Mutual funds 40,335,118 - - Short term investments 246,396 - - Total Investments 52,721,632 28,363,484 - Total assets 56,227,895 28,500,940 4,421,237 LIABILITIES Accounts payable and other liabilities 171 - - Due to other governments - - 393,236 Total liabilities 171 - 393,236 NET POSITION Restricted for: Pensions 48,057,882 - - Postemployment benefits other than pensions 8,169,842 - - Pool Participants - 28,500,940 - Individuals, organizations and other governments - - 4,028,001 Total net position 56,227,724$ 28,500,940$ 4,028,001$ The notes to the financial statements are an integral part of this statement Custodial Funds Pension (and Other Employee Benefit) Trust Funds Investment Pool Funds Custodial Funds City of Fort Collins Comprehensive Annual Financial Report 47 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2019 ADDITIONS Cash and cash equivalents -$ -$ 766,656$ Contributions Employer 1,868,826 - - Employee 323,851 - - Total Contributions 2,192,677 - 766,656 Investment earnings Net increase in fair value of investments 9,799,721 3,953,338 - Interest, dividends and other 280,543 34,089 - Total Investment Earnings 10,080,264 3,987,427 - Less investment costs: Administrative expenses 13,828 - - Net investment earnings 10,066,436 3,987,427 - Sales tax collections for other governments - - 46,743 Use tax collections for other governments - - 1,075,863 In-lieu fee collections for other governments - - 879,415 Collections for shared ancillary costs - - 1,637,494 Total Additions 12,259,113 3,987,427 4,406,171 DEDUCTIONS Benefits paid to participants or beneficiaries 5,702,102 - - Administrative expense 26,939 - - Payments of sales tax to other governments - - 46,743 Payments of use tax to other governments - - 1,075,863 Payments of in-lieu fees to other governments - - 879,415 Payments for shared ancillary costs - - 1,363,566 Total deductions 5,729,041 - 3,365,587 Net increase in fiduciary net position 6,530,072 3,987,427 1,040,584 Net position - beginning (as restated)49,697,652 24,513,513 2,987,417 Net position - ending 56,227,724$ 28,500,940$ 4,028,001$ The notes to the financial statements are an integral part of this statement Pension (and Other Employee Benefit) Trust Funds Investment Pool Funds Custodial Funds Custodial Funds 48 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK NOTES TO THE BASIC FINANCIAL STATEMENTSNOTES City of Fort Collins Comprehensive Annual Financial Report 49 NOTES TO THE BASIC FINANCIAL STATEMENTS I. Summary of Significant Accounting Policies A. Reporting Entity .................................................................................................................. 50 B. Joint Ventures. ..................................................................................................................... 50 C. Jointly Governed Organization............................................................................................ 51 D. Undivided Interest ............................................................................................................... 51 E. Government-wide and Fund Financial Statements ............................................................. 51 F. Measurement Focus and Basis for Accounting .................................................................. 52 G. Financial Statement Presentation ........................................................................................ 52 H. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance .......................................................................... 54 II. Stewardship, Compliance and Accountability A. Budgetary Information ........................................................................................................ 59 B. Deficit Fund Balance and Net Position ............................................................................... 60 C. Tax Abatements .................................................................................................................... 60 III. Detailed Notes on All Funds A. Deposits and Investments .................................................................................................... 63 B. Notes Receivable ................................................................................................................. 67 C. Capital Assets ...................................................................................................................... 68 D. Inter-fund Transfers and Advances ..................................................................................... 70 E. Long-term Obligations ........................................................................................................ 71 F. Fund Balances ...................................................................................................................... 80 IV. Other Information A. Risk Management ............................................................................................................... 81 B. Employee Retirement Systems and Pension Plans .............................................................. 82 C. Other Postemployment Benefits .......................................................................................... 87 D. Presentation of Postemployment Benefit Obligations ........................................................ 90 E. Commitments and Contingencies ........................................................................................ 91 F. Legal Matters ....................................................................................................................... 91 G. Related Party Transactions. ................................................................................................. 92 H. Subsequent Events .............................................................................................................. 94 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 residents 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); the City of Fort Collins General Improvement District No. 15-Skyview (GID No. 15- Skyview); and the General Employees’ Retirement Plan (GERP) as a fiduciary component unit. 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 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 economic substance and governance for reporting purposes, the same as the primary government because the City Council serves as a substantial majority of board of directors. Management of the primary government, reporting to elected officials of the primary government, has operational responsibility for the URA and is charged with day-to-day operations. Its transactions and balances are blended with those of the City. The URA is presented as a special revenue fund. GID No. 15-Skyview was organized in 1997 by Larimer County and was inherited by the City as part of the Southwest Annexation. The mill levy funds are used to maintain the street system for the Skyview Subdivision. GID No. 15-Skyview is, in substance, the same as the primary government since the City Council serves as the board of directors. As such, it levies all taxes, approves all budgets, and issues all debt on behalf of GID No. 15- Skyview. Accordingly, its transactions and balances are blended with those of the City. GID No. 15-Skyview is presented as a special revenue fund. See Note IV.B.1 for a discussion of GERP. B. Joint Ventures The City has joined with other governmental units to form the following joint ventures: The Northern Colorado Regional Airport was created for the purpose of operating a municipal airport for the benefit City of Fort Collins Comprehensive Annual Financial Report 51 of the residents 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 Metropolitan Planning Organization (NFRMPO) is an association of local governments that was formed in 1988 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 NFRMPO Planning Council appoints its own management and approves its own budget. 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 Airport (see Note IV, G. 1.), 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 residents of Larimer County. The City does not retain an on-going financial interest or responsibility in LETA. D. Undivided Interest 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 two entities now jointly operate the 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 transactions of the City for the Museum are reported as a sub-fund of the General Fund. E. 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. 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 is 52 City of Fort Collins Comprehensive Annual Financial Report offset by program revenues. Direct expenses are those that are clearly associated with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. F. 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 fund. The custodial 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. 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 City 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, pension liabilities, 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 subject 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 City; as a result, they are not subject to accrual. G. 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, deferred inflows/outflows of resources, 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 City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. City of Fort Collins Comprehensive Annual Financial Report 53 Keep Fort Collins Great fund, a special revenue 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 11% for community priorities other than those listed above, as determined by the City Council. The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. URA, a 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: Electric and Telecommunications fund, formally titled in City Code Section 8-77 as the “Light and Power Fund” is used to account for the combined operations of the City’s electric and internet telecommunications utility. Water fund is used to account for the operation of the City’s water utility. Wastewater fund is used to account for the operation of the City’s wastewater utility. 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, technology and 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. In the government-wide statements, all internal service funds are reported in the governmental activities except for the Utility Customer Service and Administration Fund, which is reported under the business-type activities. Fiduciary funds are used to account for (1) pension and other employee benefit trust funds, which include the City’s General Employees’ Retirement Plan, a defined benefit pension plan, and Retirement Health Savings plans, defined contribution plans, which each provide retirement benefits for its employees/retirees, and (2) custodial funds used to account for cash and investments held by the City on behalf of Poudre Fire Authority and Poudre River Public Library District, as well as fiduciary resources held by the City for other third-parties, specifically other governmental organizations. 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. 54 City of Fort Collins Comprehensive Annual Financial Report H. 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 Statement No. 72. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available; for others, it might not be available. However, the objective of a fair value measurement in both cases is the same--that is, to determine the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Fair value is an exit price at the measurement date from the perspective of a market participant that controls the asset or is obligated for the liability. 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, including external investment pools, to be cash equivalents. Receivables Accounts receivable are expressed net of allowances for doubtful accounts. The Electric and Telecommunications Fund maintains an allowance of $335,000, Water Fund maintains an allowance of $59,000, Wastewater Fund maintains an allowance of $20,000, and Storm Drainage Fund has an allowance of $10,000. Long-term portions of receivables in the governmental fund financial statements are reported and then offset by non-spendable, restricted and committed fund balance reserve accounts 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. Inventory of Real Property Held for Resale Inventory of real property held for resale generally reflects the cost of raw land for development of affordable housing held by the City’s Land Bank Program in the General Fund. These assets are carried at the lower of cost or fair value. Capital Assets Capital assets, which are acquired or constructed, are reported at historical cost in the applicable governmental or business-type activities’ columns in the government-wide and proprietary fund 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 greater than one year. Donated capital assets are recorded at estimated acquisition value at the date of donation. City of Fort Collins Comprehensive Annual Financial Report 55 Capital assets other than land, construction in progress, 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 financial statements 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. In addition to liabilities, the financial statements 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 City reports deferred outflows/inflows of resources as follows: Gain/Loss on Refunding - In the government-wide and proprietary funds statement of net position, deferred outflows/inflows of resources on refunding represent the difference in the carrying value of refunded debt and its reacquisition price. The difference is amortized and recognized over the remaining life of the old refunded debt or the new refunding debt, whichever is shorter. Unavailable Revenues - Unavailable revenue is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, grants and parking tickets. 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 tax revenue is reported as a deferred inflow of resources and will be recognized as revenue in the year for which they are levied. Pension-Related Amounts – In the government-wide and proprietary funds statement of net position, a deferred inflow of resources is reported for the unrecognized items not yet charged to pension expense related to the net pension liability, such as the unamortized portion of the net difference projected and actual earnings on pension plan investments and other differences between expected and actual experience. Deferred inflows for the net difference between projected and actual investment earnings are recognized over a period of five years. 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. 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. 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. 56 City of Fort Collins Comprehensive Annual Financial Report 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 straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are reported as expenses in the period they are incurred. 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 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. Pension The net pension liability and net deferred inflows of resources, pension expense and information about the fiduciary net position of the General Employee Retirement Plan (GERP) and additions to/deductions from the fiduciary net position has been determined on the same basis as they are reported by GERP. For this purpose, benefit payments are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. Other Postemployment Benefits (OPEB) The total OPEB liability and OPEB expense have been determined on the same basis as they are reported by the Plan. For this purpose, long-term obligations are reported as liabilities in the applicable governmental activities and business-type activities statement of net position. OPEB expense is recognized during the current period. Fund Balance/Net Position GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions establishes fund balance classifications that comprise a hierarchy based on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in the governmental funds. In the fund financial statements, fund balance of the City’s governmental funds is classified as nonspendable, restricted, committed, assigned, or unassigned. Nonspendable fund balances indicate amounts that cannot be spent such as permanent endowments or assets in non- liquid form. It also includes the long-term amount of advances, loans and notes receivables as well as property held for resale unless the proceeds from the collection of these items would be considered restricted, committed, or assigned in which case they are included in those categories. Restricted fund balances indicate amounts constrained for a specific purpose by external parties, constitutional provision or enabling legislation. Committed fund balances indicate amounts constrained for a specific purpose by the City Council, which is the City’s highest level of decision-making authority. Amounts are established, modified and rescinded only through a Council approved ordinance. The ordinance must occur prior to year-end; however, the amount can be determined in the subsequent period. Assigned fund balances indicate amounts the City intends to be used for specific purposes, but do not meet the City of Fort Collins Comprehensive Annual Financial Report 57 criteria to be classified as restricted or committed. The City Manager, Chief Financial Officer and Accounting Director are authorized to assign fund balance as outlined in the fund balance policy. Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not included in the other classifications. In other funds, the unassigned classification is used to report a deficit fund balance. When unassigned and restricted, committed, or assigned fund balances are available for use, it is the City’s policy to use restricted, committed, or assigned resources before unassigned resources. Refer to footnote III.F for additional detail associated with the fund balance classifications in the City’s governmental funds. 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. Investment 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. Minimum Fund Balance Policy It is the City’s policy to maintain a 60 Day Liquidity of at least 17% of the subsequent year’s originally adopted budgeted expenditures and transfers out, excluding expenditures and transfers out for large and unusual one-time items. The 60 Day Liquidity Goal is held as assigned fund balance in the general fund and is in addition to the restricted balance required by Article X, Section 20 of the State Constitution. 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 billings from one fund to another for purchased goods or services as well as payment in lieu of taxes. In the government-wide statement of activities, transactions, which constitute reimbursements, are eliminated except for transfers between governmental and business-type activities. 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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Discretely Presented Component Unit The significant accounting policies for the City's discretely presented component unit are substantially the same as the primary government. Additional disclosures follow. The discretely presented component unit data presented in the government-wide statements includes total data for all fund types of the Downtown Development Authority (DDA), including its General Fund, Debt Service Fund and its non-current assets and liabilities. The Board of Directors of the DDA approves their respective budget by resolution. The budget is then submitted to City Council for approval. Budgetary matters with respect to basis of accounting and legal level of budgetary control are generally the same for the DDA as those of the City. 58 City of Fort Collins Comprehensive Annual Financial Report Adoption of New Accounting Pronouncements Effective January 1, 2019, the City adopted GASB Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. As presented in the Fiduciary Fund Statements, the City reported assets, liabilities and changes in net position for (1) Pension and Other Employee Benefit Trust Funds, associated with City’s General Employees’ Retirement Plan Pension Fund and Retirement Health Savings plans and (2) Custodial Funds, representing fiduciary activities not held in a trust, including Investment Pool Funds, all associated with fiduciary activities with other governmental organizations. The adoption of GASB 84 resulted in an increase in net position as of January 1, 2019 of $6,638,715 for Pension (and Other Employee Benefit) Trust Funds, $24,513,513 for Investment Pools Funds and $2,987,417 for Custodial Funds. The GASB has issued several statements not yet implemented by the City. City management has not yet determined the effect the Statements will have on the financial statements. However, the City intends to implement all standards by the required dates. The Standards which may impact the City are as follows: GASB Statement No. 87, Leases, issued June 2017, originally effective December 31, 2020 though GASB has extended the implementation date and now will be effective for the City beginning with its fiscal year ending December 31, 2022, with earlier adoption encouraged. Statement No. 87 establishes a single approach to accounting for and reporting leases by state and local governments. Under this statement, a government entity that is a lessee must recognize (1) a lease liability and (2) an intangible asset representing the lessee’s right to use the leased asset. In addition, the City must report the (1) amortization expense for using the asset over the shorter of the term of the lease or the useful life of the underlying asset, (2) interest expense on the lease liability and (3) note disclosures about the lease. The Statement provides exceptions from the single-approach for short-term leases, financial purchases, leases of assets that are investments and certain regulated leases. This statement also addresses accounting for lease terminations and modifications, sale-leaseback transactions, nonlease components embedded in lease contracts (such as service agreements), and leases with related parties. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, issued March 2018, originally effective December 31, 2019 though GASB has extended the implementation date and now will be effective for the City beginning with its fiscal year ending December 31, 2020, with earlier adoption encouraged. Statement No. 88 clarifies which liabilities governments should include in their note disclosures related to debt. This statement defines debt that must be disclosed in the notes of the financial statements as a liability that arises from contractual obligation to pay cash in one or more payments to settle an amount that is fixed at the date the contractual obligation is established. Governments must also disclose amounts of unused lines of credits, asset pledges as collateral for debt and the terms specified in the debt agreements related to significant events of default with finance-related consequences, termination events with finance-related consequences, and subjective acceleration clauses. Within the notes, governments should separate information regarding direct borrowings and direct placements of debt from other debt. City of Fort Collins Comprehensive Annual Financial Report 59 NOTE II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information 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 not adopted on a basis consistent with generally accepted accounting principles (GAAP). The exceptions to GAAP are appropriations for grants and capital projects that do not lapse until the grant or project is completed. Capital Project Funds Budgets for the Capital Project Funds are not consistent with GAAP because appropriations do not lapse on an annual basis as explained below. 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, bond amortization, and changes in estimates such as claim reserves or post-employment liabilities. Capital project budgets for certain enterprise funds do not lapse on an annual basis as explained below. Legal Level of Control The legal level of budgetary control is at the individual fund level, except for capital projects, the URA, and federal and state grants for which the legal level of control is at the project, tax increment financing district, or grant level. For budgetary purposes, operating transfers are considered expenditures. Lapsing Appropriations All appropriations unexpended or unencumbered lapse at the end of the year to the applicable fund, except capital project and grant appropriations which lapse when the project or grant activity is completed. Appropriations which are legally 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 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, Community Capital Improvement Program Fund, 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. 60 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 15 The City has an enforceable legal claim on the taxes when the levy is certified in December and records a receivable on that date. 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. Deficit Fund Balance and Net Position The DDA had a deficit unrestricted net position of $691,484 as of December 31, 2019. The URA fund had a deficit unassigned fund balance of $236,050 as of December 31, 2019. The fund will continue to have a deficit fund balance as tax increment fund monies are collected through increased property tax collections. C. Tax Abatements Primary Government and Blended Component Units Abatement Agreements The City has established two major tax abatement programs: (1) manufacturer’s use tax rebates (MUTR) and (2) business assistance agreements for purposes of economic development. Manufacturer’s Use Tax Rebate: The MUTR program is established by City Code Article II – Tax Refund and Rebate Program, section 25-64. Under this code section, the City may refund a portion of use taxes paid by a qualifying manufacturer for manufacturing machinery to be used in the City of Fort Collins directly and exclusively in the manufacture of tangible personal property for sale or profit. Once the taxpayer has completed the application process, the abatement comes in the form of a rebate payment check of taxes previously paid. The base use tax rate charged is 3.00% of the equipment cost, and rebates are for 1.50% of the first $5,000,000 in qualifying equipment purchases and 1.00% for purchases from $5,000,001 and up. The maximum rebate given to any one company is $2,400,000. City of Fort Collins Comprehensive Annual Financial Report 61 For the fiscal year ended December 31, 2019, the City abated use tax totaling $405,437, including three abatement agreements that exceeded 10% of the total amount abated under the MUTR program. Broadcom Limited, formerly Avago Technologies, received a MUTR abatement totaling $220,907. Woodward, Inc. received a MUTR abatement totaling $89,076. Anheuser Busch received a MUTR abatement totaling $61,763. Business Assistance Agreements: The City approves primary employer business assistance agreements pursuant to and subject to the terms of Economic Health Financial Policy 9 and authorized by City Council under Resolutions 91-15, 99-23, 2013-025, and 2015-079. This policy applies to requests for direct assistance from primary employers looking to remain or expand their operations in the City, as well as primary employers evaluating relocation to the City. City Council approves business assistance packages subject to the following criteria: economic impact, contribution to quality of place, alignment with City objectives, natural resource stewardship, and community well-being. All agreements are performance-based including but not limited to annual average wages, number of retained or net new jobs, and/or health care premium assistance. The types of assistance commonly used are private activity bond financing, manufacturing equipment use tax rebates (separate from the standard MUTR program), and business personal property tax rebates. The maximum allowable property tax rebate will not exceed 50% of the City’s portion of the personal property tax rate, and the maximum term is not to exceed 10 years. Applicants for direct assistance commit to the following at a minimum: • Pledge to Annual Reporting • Separate Use Tax Schedule • Timeline for Confidentiality, no greater than 30 days • Assurance of Existing Workforce Retention For the fiscal year ended December 31, 2019, the City abated sales, use, and property tax totaling $878,084. Abatement recipients exceeding 10% of the total amount abated or that are otherwise deemed material for qualitative reasons were: Project Name Avago Technologies [Broadcom Limited] Building 4 FBAR Clean Room Facility Project Description Redevelopment of property by retrofitting wafer fabrication facility in 2014, including new 12,160 square foot FBAR Clean Room Facility expansion Approved Abatement 100% of use taxes paid, up to $3,882,200. Three rebate applications and seven concurrent annual payments for each application. 50% of personal property taxes paid, up to $629,100 in total and a limit on each annual payment of $157,700 2019 Amount $401,156 Project Commitment 135 net new jobs created in Fort Collins Recapture Provisions City may reduce the amount of any either use tax or personal property tax paid by the percentage shortfall from full compliance 62 City of Fort Collins Comprehensive Annual Financial Report Project Name Woodward, Inc. World Headquarters Project Description Four-phase relocation and expansion of office space, manufacturing facilities, and testing facilities on a former golf course and designated redevelopment area Approved Abatement 80% of use taxes paid on construction materials 80% of use taxes paid on eligible equipment, up to $1,212,000 Separate from the use tax abatement disclosed herein, the agreement includes separate incentives around development fees, capital improvement fees, and tax increment financing (TIF) of improvement and façade projects. 2019 Amount $0 Project Commitment Maintain employment level of 1,400 employees Recapture Provisions Rebate is reduced by $500,000 if employment level has not reached 1,400 employees by December 31, 2019. Rebate is reduced by 40% if employment level has not reached 1,400 employees by December 31, 2020. Project Name Foothills Mall Redevelopment Project Description Redevelopment of blighted property after decline in sales tax revenue since 2001 of over 61%. Revitalization project costing $312 million, of which $53 million was approved in public assistance in the form of City sales tax revenue abatements and Urban Renewal Authority (URA) tax increment financing(TIF). Approved Abatement Pledged sales tax increment on General Fund portion (2.25%) of sales tax collections above a sales tax base established in 2013. Increment of 25 years beginning May 1, 2013 and ending April 30, 2038. Sales tax increment is only paid toward debt service as fifth priority after 1) Mall Metro District Debt Service Mill Levy, 2) Mall Metro District Specific Ownership Taxes, 3) URA Property Tax TIF and 4) Mall Metro District Public Improvement Fee. 2019 Amount $476,928 Project Commitment Developer commits to build parking structure, City-owned and operated recreational facility, ditch relocation for storm drainage, upgrades and improvements to utilities, and construction of a pedestrian underpass linking the District to transit. Recapture Provisions Once District debt is paid off, the balances in a supplemental debt service reserve are returned to the City. City of Fort Collins Comprehensive Annual Financial Report 63 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 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 2019 were in eligible public depositories, as defined by the Public Deposit Protection Act of 1989. Primary Government The carrying amount of the City's deposit accounts as of December 31, 2019 was $116,532,563 excluding amounts held in a fiduciary capacity associated with the GERP pension trust fund, RHS other employee benefit trust funds and Custodial funds, including the Investment Pool funds. The bank balance was $116,174,474. Component Unit The Downtown Development Authority’s undivided share of the City’s deposits as of December 31, 2019 was a carrying amount of $621,694. The bank balance was $564,869. 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, held under PDPA, 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 having an investment grade rating. • 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. 64 City of Fort Collins Comprehensive Annual Financial Report • 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 and the RHS other employee benefit trust funds may include: • Equity investments. • Domestic mutual funds. • International mutual funds. • Bond mutual funds. The City’s and its discretely presented component unit’s investments are subject to interest rate and credit risk as described below: Interest Rate Risk The City’s investment policy limits its exposure to fair value losses arising from rising interest rates by: • Whenever possible, holding investments to their stated maturity dates. • Investing a portion of the operating funds in shorter-term securities, money market mutual funds, or local government investment pools. Based on the current rate environment, the City assumes certain callable securities may be called on the first call date. 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 Farm Credit Bank (FFCB), Federal Home Loan Mortgage Corp. (FHLMC), Federal Home Loan Bank (FHLB), and Federal National Mortgage Association (FNMA). These investments were 32.4%, 22.9%, 18.7% and 14.1%, respectively, of the City’s total investment. 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 and utilizes a third- party safekeeping arrangement with financial institutions. Credit Risk The City's investment policy limits investments in corporate bonds to the top four ratings issued by nationally recognized statistical rating organizations (NRSROs) at the time of purchase. As of December 31, 2019, the City's investment in corporate bonds was rated AA- or better by Standard and Poor's and Aa3 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, 2019, the local government investment pools (ColoTrust and CSAFE) in which the City had invested and reported at amortized cost, were rated AAA by Standard and Poor’s. The City’s investments in US government agencies were rated Aaa by Moody’s and AA+/- by Standard and Poor’s. All marketable Certificates of Deposit (CDs) held by the City do not exceed the insurable amount allowed by the FDIC. Therefore, the City does not bear any additional credit risk through these CDs. City of Fort Collins Comprehensive Annual Financial Report 65 Fair Value Measurements The City categorizes its assets and liabilities measured at fair value within the hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. • Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest to Level 3 inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. Information regarding the City’s fair value, credit risk rating, maturity, and fair value measurement are described below. Investment prices for the City’s securities are reported by US Bank, the City’s custodial bank. US Bank acquires its pricing data from Interactive Data, a third-party provider, which provides global security evaluations and fair value pricing for fixed income securities. Their evaluations represent a good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. Interactive Data’s evaluations are based on market data and evaluated pricing models that vary by asset class and incorporate trade, bid and other market information as well as evaluated pricing applications utilizing benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing to prepare evaluations. In addition, model processes such as the Option Adjusted Spread model are used to assess interest rate impacts and develop prepayment scenarios. For each asset class, teams of evaluators gather information from market sources and integrate relevant credit information, perceived market movements, and sector news into the evaluated pricing applications and models. The City invests primarily in fixed income securities and Local Government Investment Pools (LGIP). The General Employees’ Retirement Plan (GERP) invests primarily in domestic and international mutual funds, and fixed income securities. The Retirement Health Savings (RHS) other employee benefit trust funds invest primarily in domestic mutual funds. The investments are valued at fair value at least monthly. For the City, GERP, and the RHS plans, the following fair value techniques were utilized in measuring the fair value of its investments. Mutual Funds: The investments are reported at fair value based on quoted NAV market prices through mutual fund companies and obtained from the National Association of Securities Dealers. U.S. Government Agency and Investment Grade Corporate securities: U.S. Government Agency securities are reported at fair value based on a multi-dimensional relational model and Option Adjusted Spread model. The model inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and other reference data including TRACE reported trades. TRACE is a program developed by the National Association of Securities Dealers (NASD) which allows for the reporting of over-the counter transactions for eligible fixed-income securities. Marketable Certificates of Deposit: The investments are reported at fair value based on multiple market and industry inputs. A model is utilized to intake all information and assign a fair value. The model inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and other reference data including TRACE reported trades. 66 City of Fort Collins Comprehensive Annual Financial Report The City has no other investments meeting the fair value disclosure requirements of GASB Statement No. 72. As of December 31, 2019, the City, including the GERP Pension Trust Fund and the RHS plans, had the following investments and maturities: Fair Value Credit Risk Rating Measurement Fair Up to 121 days More than Investment Type S&P/Moody's Level Value 120 days to 5 years 5 years Investments measured by fair value levels Instrumentality Federal Farm Credit Bank (FFCB)AA+/AAA 2 147,852,095$ 17,541,173$ 127,758,447$ 2,552,475$ Federal Home Loan Bank (FHLB)AA+/AAA 2 86,955,687 4,985,512 81,970,175 - Federal Home Loan Mortgage Corporation (FHLMC)AA+/AAA 2 105,417,341 12,834,176 92,583,165 - Federal National Mortgage Association (FNMA)AA+/AAA 2 64,144,340 10,380,436 53,763,904 - Corporate bonds AA+/AA1 2 16,927,608 - 16,927,608 - Corporate bonds AAA/AAA 2 16,938,764 - 16,938,764 - Corporate bonds AA+/AA3 2 2,512,805 - 2,512,805 - Corporate bonds AA-/AA3 2 1,531,336 - 1,531,336 - Corporate bonds AA+/AA2 2 3,098,185 - 3,098,185 - Corporate bonds AA+/AAA 2 3,811,667 - 3,811,667 - Corporate bonds AA/AA2 2 3,774,540 - 3,774,540 - Marketable Certificates of Deposit N/A 2 4,975,131 - 4,975,131 - Total Investments Controlled by the City 457,939,499$ 45,741,297$ 409,645,727$ 2,552,475$ Percent of Total 10%89%1% The City has $32,679,376 measured at net asset value (NAV) invested in Mutual Funds held by Fidelity Investments for employees' retirement accounts. The City, as the Trustee, has $8,169,842 measured at net asset value (NAV) invested in Mutual Funds held by ICMA-RC for employees' retirement health savings accounts. Investment Maturities Component Unit Fair Value Credit Risk Rating Measurement Fair Up to 121 days More than Investment Type S&P/Moody's Level Value 120 days to 5 years 5 years Investments measured by fair value levels Instrumentality Federal Farm Credit Bank (FFCB)AA+/AAA 2 1,668,295$ 214,016$ 1,454,279$ -$ Federal Home Loan Bank (FHLB)AA+/AAA 2 752,976 60,827 692,149 - Federal Home Loan Mortgage Corporation (FHLMC)AA+/AAA 2 1,095,358 - 1,095,358 - Federal National Mortgage Association (FNMA)AA+/AAA 2 782,611 126,649 655,962 - Corporate bonds AA+/AA1 2 206,530 - 206,530 - Corporate bonds AAA/AAA 2 206,666 - 206,666 - Corporate bonds AA+/AA3 2 30,658 - 30,658 - Corporate bonds AA-/AA3 2 18,683 - 18,683 - Corporate bonds AA+/AA2 2 37,800 - 37,800 - Corporate bonds AA+/AAA 2 46,505 - 46,505 - Corporate bonds AA/AA2 2 46,052 - 46,052 - Marketable Certificates of Deposit N/A 2 11,638 - 11,638 - Investments measures at the NAV Certificates of Deposit 1,250,000 1,250,000 Total DDA Investments 6,153,772$ 1,651,492$ 4,502,280$ -$ Percent of Total 27%73%0% Investment Maturities City of Fort Collins Comprehensive Annual Financial Report 67 Restrictions on Cash and Investments Cash and investments on December 31, 2019 were restricted for the following, excluding General Employees’ Retirement Plan (GERP) and Retirement Health Savings (RHS) Plans: Fund/Component Unit Amount Restriction Downtown Development Authority $ 1,250,000 Debt service through bond ordinance Urban Renewal Authority 1,389,136 Debt service through bond ordinance Equipment fund 1,863,906 Unspent lease proceeds Electrical and Telecommunications 113,267,317 Unspent bond proceeds General Fund 49,713 Unspent bond proceeds B. Notes Receivable In March 1996, the City entered into an agreement with a developer for the construction of low - income apartment units. Under the agreement, the City loaned $913,000 to the developer from the HOME Program special revenue fund and received a deed of trust against the property. By an Assignment and Assumption Agreement and a Second Amendment and Loan Extension agreement, both dated May 18, 2017, another developer assumed the original debt obligation and further agreed to pay the City $1.5 million in principal plus interest. The loan bears interest at 3% per annum. The loan is to be repaid from 50% of the net available cash flow generated by the project as calculated annually. While there is no set payment schedule any unpaid principal balance and accrued interest is to be paid in full as of May 15, 2054. Based upon a review of project income statements, the project did not have a net available cash flow in 2019. The City received no interest payments for 2019. The outstanding balance as of December 31, 2019 is $1,500,000. The allowance recorded against this receivable is $1,500,000. Accrued interest on this loan has not been recorded since it is uncertain as to the frequency of when the project will be able to make payments against the note. The Electric and Telecommunications Fund has certain notes receivable related to efficiencies with customers connected to a Home Efficiency Loan Program. The balance of these loans as of December 31, 2019 is $1,334,848. 68 City of Fort Collins Comprehensive Annual Financial Report C. Capital Assets A summary of changes in capital asset activity for the year ended December 31, 2019 follows: Beginning Ending Balance Additions Transfers Deletions Balance Primary Government: Governmental activities Capital assets, not being depreciated: Land, rights of way, water rights, other 241,686,103$ 5,082,848$ -$ -$ 246,768,951$ Street system infrastructure 347,390,340 - - - 347,390,340 Construction in progress 63,365,268 24,802,402 (16,484,275) - 71,683,395 Total capital assets, not being depreciated 652,441,711 29,885,250 (16,484,275) - 665,842,686 Capital assets, being depreciated: Infrastructure 30,056,881 662,293 - 30,719,174 Buildings and improvements 149,958,332 - 344,211 - 150,302,543 Improvements other than buildings 171,162,442 417,794 13,830,932 - 185,411,168 Machinery and equipment 100,617,662 9,926,094 2,309,132 (1,723,861) 111,129,027 Total capital assets being depreciated 451,795,317 11,006,181 16,484,275 (1,723,861) 477,561,912 Less accumulated depreciation for: Infrastructure (15,865,286) (932,484) - - (16,797,770) Buildings and improvements (52,523,516) (3,146,515) - - (55,670,031) Improvements other than buildings (67,008,149) (7,016,911) - - (74,025,060) Machinery and equipment (71,659,261) (6,146,517) - 1,653,892 (76,151,886) Total accumulated depreciation (207,056,212) (17,242,427) - 1,653,892 (222,644,747) Total capital assets being depreciated, net 244,739,105 (6,236,246) 16,484,275 (69,969) 254,917,165 Governmental activities capital assets, net 897,180,816$ 23,649,004$ -$ (69,969)$ 920,759,851$ Business-type activities Capital assets, not being depreciated: Land, rights of way, water rights, other 73,713,550$ 261,254$ -$ -$ 73,974,804$ Construction in progress 85,787,652 50,560,592 (23,302,411) - 113,045,833 Total capital assets, not being depreciated 159,501,202 50,821,846 (23,302,411) - 187,020,637 Capital assets, being depreciated: Buildings and improvements 245,777,219 - 51,691 - 245,828,910 Improvements other than buildings 720,161,596 69,404 22,797,273 - 743,028,273 Infrastructure/Fiber Optics 3,406,333 - - - 3,406,333 Machinery and equipment 90,314,907 2,273,804 453,447 (889,661) 92,152,497 Total capital assets being depreciated 1,059,660,055 2,343,208 23,302,411 (889,661) 1,084,416,013 Less accumulated depreciation for: Buildings and improvements (116,496,255) (5,086,756) - - (121,583,011) Improvements other than buildings (301,403,674) (18,611,273) - - (320,014,947) Infrastructure/Fiber Optics (68,127) (136,253) - - (204,380) Machinery and equipment (59,703,823) (4,907,995) - 809,782 (63,802,036) Total accumulated depreciation (477,671,879) (28,742,277) - 809,782 (505,604,374) Total capital assets being depreciated, net 581,988,176 (26,399,069) 23,302,411 (79,879) 578,811,639 Business-type activities capital assets, net 741,489,378$ 24,422,777$ -$ (79,879)$ 765,832,276$ City of Fort Collins Comprehensive Annual Financial Report 69 Beginning Ending Balance Additions Transfers Deletions Balance Component Unit: Capital assets, not being depreciated: Land, water rights, rights of way, other 2,528,747$ -$ -$ -$ 2,528,747$ Total Capital assets, not being depreciated 2,528,747 - - - 2,528,747 Capital assets, being depreciated Buildings and improvements 4,495,465 - - - 4,495,465 Improvements other than buildings 103,076 - - - 103,076 Total Capital Assets, being depreciated 4,598,541 - - - 4,598,541 Less accumulated depreciation Buildings and improvements (2,194,731) (92,190) - - (2,286,921) Improvements other than buildings (32,330) (10,515) - - (42,845) Total Accumulated Depreciation (2,227,061) (102,705) - - (2,329,766) Total capital assets being depreciated, net 2,371,480 (102,705) - - 2,268,775 Capital Assets, net 4,900,227$ (102,705)$ -$ -$ 4,797,522$ Depreciation expense was charged to functions / programs of the primary government as follows: Governmental Business-Type Activities Activities General government 813,706$ -$ Public safety - police and judicial 1,119,813 - Cultural, parks, recreation and environmental services 5,602,428 - Community planning and environmental services 57,424 - Transportation services 7,802,763 - Capital assets held by the City's internal service funds used for governmental activities 2,031,297 - Light and Power - 11,675,416 Water - 7,392,558 Wastewater - 6,266,408 Storm Drainage - 2,960,096 Non-major enterprise funds - Golf - 349,193 Capital assets held by the City's internal service fund used for business-type activities - 153,772 Total depreciation expense 17,427,433 28,797,443 Less capital assets held by the City's internal service funds 2,031,297 153,772 Depreciation expense 15,396,136$ 28,643,671$ 70 City of Fort Collins Comprehensive Annual Financial Report D. Inter-fund Transfers and Advances 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. Advances to URA In May 2009, the City Capital Expansion Fund and Water Fund loaned the URA a combined $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. In 2019, the URA made an interest and principal payment of $44,929 and $266,692, respectively. The amount outstanding as of December 31, 2019 is $1,516,186 with a 50% share receivable within the Capital Expansion and Water Funds. In November 2013, the City General Fund loaned the URA $5,000,000 for the Summit on College Project, a mixed-use student housing project in the Prospect South Tax Increment Financing District. The loan has a 24 year term and bears a fixed interest rate of 2.68%. In 2019, the URA made an interest and principal payment of $118,932 and $4,500,250, respectively. The outstanding balance as of December 31, 2019 is $0; this loan is paid in full. In December 2014, the City loaned URA $247,000 for the Prospect Station project. The loan has a 23 year term and bears a fixed interest rate of 4.5%. In 2019, the URA made an interest and principal payment of $9,756 and $219,861, respectively. The outstanding balance as of December 31, 2019 is $0; this loan is paid in full. Capital Nonmajor In ternal Transfer out:General Projects Governmental Golf Water Service Total Governmental Funds General -$ 17,650,572$ 16,114,087$ 125,000$ 166,500$ 7,004,485$ 41,060,644$ Keep Fort Collins Great 113,500 - 14,000 - - - 127,500 Capital Projects 16,403 - 539,519 - - - 555,922 URA - 300,000 - - - - 300,000 Nonmajor Governmental 1,053,030 17,982,310 11,615,529 - - 601,075 31,251,944 Proprietary Funds Electric and Telecommunications 279,135 - 3,256 - - 212,762 495,153 Water 203,294 - 10,890 - - 125,345 339,529 Wastewater 28,924 - 11,096 - 166,500 91,257 297,777 Storm Drainage 131,543 - 221,670 - - 57,832 411,045 Golf - - - - - 68,600 68,600 Internal Service 471,533 - - - - 2,347,250 2,818,783 Total transfers in 2,297,362$ 35,932,882$ 28,530,047$ 125,000$ 333,000$ 10,508,606$ 77,726,897$ Transfers In: City of Fort Collins Comprehensive Annual Financial Report 71 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. Revenue Bonds: The City and component unit issue bonds and notes where income derived from acquired or constructed assets is pledged to pay debt service. As of December 31, 2019, the City had $12,640,000, $151,959,333, and $5,931,686 of revenue bonds outstanding for governmental activities, business-type activities and the DDA component unit, respectively. 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. 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. The outstanding balance as of December 31, 2019 is $7,650,000. In 2019, the City issued tax increment revenue bonds for the principal sum of $4,990,000 to be serviced by the URA Prospect South Tax Increment Financing District. 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 Summit and Prospect Station developments. The outstanding balance as of December 31, 2019 is $4,990,000. The DDA services the 2010A and 2010B Subordinate Tax Increment Revenue Bonds. The taxable 2010A tax increment revenue bonds matured in 2018 and the tax-exempt 2010B increment revenue bonds will mature in 2020. The outstanding balance as of December 31, 2019 is $1,370,000. 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 DDA. 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 the available Pledged Tax Increment Revenues are not sufficient to repay the principal of and 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 outstanding balance as of December 31, 2019 is $4,561,686. Certificates of Participation and Assignment of Lease Payments: Through the Fort Collins Leasing Corporation, the City issues certificates of participation (COP) and assignments of lease payments (ALP) 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, 2019, the City had $43,214,909 and $413,086 of COP/ALP outstanding for governmental and business-type activities, respectively. The DDA paid a portion of the City’s 2017 COP. In 2019, the principal payment was $300,000. Capital Leases: The City also enters into lease agreements as a lessee for financing the acquisition of land, various machinery and equipment for both governmental and business-type activities. The capital assets acquired from the lease agreements are included with capital assets and the amortization of leased equipment is included with depreciation in the financial statements. These lease agreements qualify as capital leases for accounting purposes and therefore, have been reflected at the present value of their future minimum lease payments as of the inception date. The City had $7,384,565 and $932,606 of capital leases outstanding for governmental and business-type activities, respectively as of December 31, 2019. 72 City of Fort Collins Comprehensive Annual Financial Report Cost of all capital assets holding at December 31, 2019 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. In 2018, the DDA renewed its revolving line of credit in the amount of $5,000,000 and it renews each year thereafter until 2024. During the fiscal year 2019, total draw amounts were $3,746,318. During 2019, a total of $3,746,318 was repaid and there is no amount outstanding as of December 31, 2019. No interest was paid as the minimum loan origination fee paid exceeded interest expense during the time the loan was outstanding. Balance, End of Year Balance, End of Year Buildings and Improvements 351,930$ -$ Improvements other than buildings - 114,030 Machinery and equipment 24,230,372 2,898,722 Accumulated depreciation (13,961,799) (1,829,966)$ Net Book Value 10,620,503$ 1,182,786$ Governmental Activities Business Type Activities Date % Revenue P & I for Recognized for Issued Description Pledged 2019 2019 1999 Water Revenue Bonds 1-15% 183,796 13,233,824 2003 Subordinate Water Revenue Bonds 1-15% 188,224 13,233,824 2001 Storm Drainage Revenue Bonds 1-25% 743,705 11,966,801 2007 Storm Drainage Revenue Refunding Bonds 1-25% 1,545,677 11,966,801 2011 Storm Drainage Revenue Refunding Bonds 1-25% 910,781 11,966,801 2010 Sewer Revenue Bonds 1-25% 440,415 12,753,707 2016 Sewer Revenue Bonds 1-25% 2,180,400 12,753,707 2018 Light and Power Revenue Bonds 1-30% 5,827,788 *17,240,070 * Note that the debt service on the 2018 bonds for the 2018-2020 fiscal years is 100% funded by a capitalized interest fund. As such, there is effectively a 0% revenue pledge for those years. Pledged Revenues Date Amount of Revenue Term of Issued Description Revenue Pledged Pledged Purpose of Debt Commitment 1999 Water Revenue Bonds Water Revenues - Water Capital Projects through 2019 2003 Subordinate Water Revenue Bonds Water Revenues 1,139,497 Water Capital Projects through 2030 2001 Storm Drainage Revenue Bonds Storm Drainage Revenues 1,115,811 Storm Drainage Improvements through 2021 2007 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues - Storm Drainage Improvements through 2019 2011 Storm Drainage Revenue Refunding Bonds Storm Drainage Revenues 2,751,597 Storm Drainage Improvements through 2022 2010 Sewer Revenue Bonds Sewer Revenues 448,007 Sewer Capital Projects through 2020 2016 Sewer Revenue Bonds Sewer Revenues 20,582,270 Sewer Capital Projects through 2028 2018 Light and Power Revenue Bonds Light and Power Revenues 220,821,648 Telecommunications System through 2042 City of Fort Collins Comprehensive Annual Financial Report 73 Year Ending December 31 Principal Interest Principal Interest Total 2020 $ 855 $ 459 $ 3,648 $ 6,671 $ 11,632 2021 885 434 3,002 6,519 10,840 2022 920 396 4,058 6,399 11,773 2023 955 357 5,351 6,259 12,921 2024 995 316 5,943 6,077 13,332 2025-2029 5,655 964 33,659 26,746 67,023 2030-2034 1,660 128 30,269 20,720 52,778 2035-2039 715 23 38,270 12,695 51,703 2040-2042 --27,760 2,814 30,574 $ 12,640 $ 3,077 $ 151,959 $ 94,899 $ 262,575 Totals may not sum due to rounding Revenue Bonds (amounts expressed in thousands) Governmental Activities Business-Type Activities Year Ending December 31 Principal Interest Total 2020 $ 3,415 $ 1,304 $ 4,719 2021 3,510 1,212 4,722 2022 3,605 1,116 4,721 2023 3,705 1,017 4,722 2024 3,800 915 4,715 2025-2029 12,025 3,140 15,165 2030-2034 6,780 1,658 8,438 2035-2038 6,245 510 6,755 $ 43,085 $ 10,872 $ 53,957 (amounts expressed in thousands) Governmental Activities Certificates of Participation Payments The following tables display the debt service requirements to maturity for the obligations described: Year Ending December 31 P rincipal Interest Principal Interest Total 2020 $ 63 $ 2 $ 202 $ 6 $ 273 2021 67 1 211 3 282 $ 130 $ 3 $ 413 $ 9 $ 555 Assignment of Lease Payments (amounts in thousands) Governmental Activities Business-Type Activities 74 City of Fort Collins Comprehensive Annual Financial Report Capital Lease Payments (amounts in thousands) Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest Total 2020 $ 2,718 $ 178 $ 328 $ 24 $ 3,247 2021 2,009 113 277 15 2,414 2022 1,440 62 174 8 1,684 2023 883 26 113 3 1,025 2024 335 4 41 1 379 $ 7,384 $ 383 $ 933 $ 50 $ 8,750 Component Unit DDA - Tax Increment Bonds (amounts in thousands) Year Ending December 31 Principal Interest Total 2020 $ 1,758 $ 147 $ 1905 2021 384 96 480 2022 383 97 480 2023 385 95 480 2024 390 90 480 2025-2029 2,347 311 2,658 2030 285 12 297 $ 5,932 $ 848 $ 6,780 City of Fort Collins Comprehensive Annual Financial Report 75 General long-term obligations of the primary government at December 31, 2019 is comprised of the following: Date Maturity O riginal Outstanding Issued Description/Interest Rates Dates Balance Balance Bonds Serviced by Urban Renewal Authority - Secured by tax increment property taxes 2013 2013 URA Tax Increment Revenue Bonds (2.0 - 4.25%) North College District 2029 11,085,000$ 7,650,000$ 2019 2019 URA Tax Increment Revenue Bonds (2.0 -2.125%) Prospect South District 2036 4,990,000$ 4,990,000$ COP / ALP serviced by General Fund, Natural Areas Fund, Transportation Fund, and Capital Expansion Fund through the Fo rt Collins Capital Leasing Corporation Debt Service Fund 2012 Lease Certificates of Participation (1.82%)2026 34,395,000 13,350,000 2017 Lease Certificates of Participation (2.48%)2027 8,425,000 6,890,000 2019 Lease Certificates of Participation (3.0-5.0%)2038 23,865,000 22,845,000 2001 Assignment of Lease Payments - Police (4.7%)2021 890,000 129,909 Unamortized premium on bonds 2,336,390 Other Obligations of Governmental Funds N/A Compensated absences N/A N/A 6,919,047 N/A Net pension liability N/A N/A 5,824,430 N/A Total post employment health care liability N/A N/A 209,007 O ther Obligations of Internal Service Fund used by Governmental Activities Various Capital lease obligations (secured by leased equipment)Various N/A 7,384,566 N/A Compensated absences N/A N/A 664,708 N/A Claims payable N/A N/A 7,262,600 N/A Net pension liability N/A N/A 951,317 Total 87,406,974$ Component Unit long - term debt at December 31, 2019, is comprised of the following obligations: Bonds Serviced by Downtown Development Authority Debt Service Fund 2010 Subordinate Tax Increment Revenue Bonds (4.01-6.08%)2020 12,500,000$ 1,370,000$ Secured by tax increment property taxes 2013 Subordinate Tax Increment Revenue Bonds 2031 6,050,000 4,561,686 Variable interest rate based on the 10 year U.S. Treasury Note with a .25% floor Secured by tax increment property taxes Other Obligations – Component Unit N/A Compensated absences N/A N/A 13,323 Total 5,945,009$ (Continued) 76 City of Fort Collins Comprehensive Annual Financial Report Business-type long-term obligations at December 31, 2019 consists of the following: Date Maturity O riginal Outstanding Issued Description/Interest Rates Dates Balance Balance Bonds, COP, and ALP, serviced by Enterprise Funds Light and Power Fund Secured by light and power revenues 2018 Tax-Exempt Revenue Bonds, Series 2018A (3.5 - 5%)2032-42 $ 84,945,000 $ 84,945,000 2018 Taxable Revenue Bonds, Series 2018B (3.18 - 3.91%)2022-31 $ 44,690,000 $ 44,690,000 Water Fund Secured by water revenues 2003 Subordinate Water Revenue Bonds (5.025% )2030 2,476,446 946,833 Storm Drainage FundSecured by storm drainage revenues 2001 Storm Drainage Revenue Bond (4.5-5.25%)2021 9,845,000 1,017,500 2011 Storm Drainage Revenue Refunding Bonds (2.49%)2022 8,515,000 2,620,000 Wastewater FundSecured by sewer revenue 2010 Sewer Revenue Bonds (2.99%)2020 3,900,000 435,000 2016 Sewer Revenue Refunding Bonds (2.0-4.0%)2028 18,795,000 17,305,000 14,811,438 Golf Fund Secured by golf revenue 2001 Assignment of Lease Payments (4.7%)2021 2,830,000 413,086 Other Obligations of Enterprise Funds Various Capital lease obligations (secured by leased equipment)Various 932,606 N/A Net pension liability N/A 5,205,291 N/A Total post employment health care liability N/A 52,252 N/A Compensated absences N/A 1,984,320 Other Obligations of the Internal Service Fund used by Business-type Activities N/A Compensated absences N/A 356,779 N/A Net pension liability N/A 1,261,327 Total 176,976,432$ Unamortized premium on bonds City of Fort Collins Comprehensive Annual Financial Report 77 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. In June 2018, the city irrevocably placed $5,464,330 of existing cash resources in escrow for the sole purpose of satisfying scheduled payments of both interest and principal on the 2010 Light & Power Revenue Bonds, Series B, as part of an in-substance legal defeasance. The escrow agent applied these cash resources to the purchase of essentially risk-free time deposit federal securities through the US Treasury State and Local Government Series (SLGS). The escrow account cannot be redirected, and the SLGS holdings cannot be substituted for non-risk-free assets as they are not eligible for early redemption or prepayment. The outstanding principal amount to be paid from escrow as of December 31, 2019 was $1,775,000. 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, 2019, there were 6 series of Industrial Development Revenue Bonds outstanding, with an estimated aggregate principal amount payable of $45,306,000. 78 City of Fort Collins Comprehensive Annual Financial Report Changes in long-term liabilities Long-term liability activity for the year ended December 31, 2019 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One YearPrimary Government: Governmental Activities Bonds, COP, and ALP: Revenue bonds 8,265,000$ 4,990,000$ (615,000)$ 12,640,000$ 855,000$ Certificates of participation 24,185,000 23,865,000 (4,965,000) 43,085,000 3,415,000 Assignment of lease payments 190,679 - (60,769) 129,910 63,400 Total bonds, COP and ALP 32,640,679 28,855,000 (5,640,769) 55,854,910 4,333,400 Add bond premium 210,666 2,218,042 (92,318) 2,336,390 - Total bonds, COP and ALP 32,851,345 31,073,042 (5,733,087) 58,191,300 4,333,400 Other Liabilities: Capital leases 7,359,522 3,123,550 (3,098,506) 7,384,566 2,717,936 Compensated absences 6,983,335 7,043,919 (6,443,499) 7,583,755 7,583,755 Claims payable 6,840,149 25,718,551 (25,296,100) 7,262,600 4,189,333 Net pension liability 11,865,043 (5,089,296) 6,775,747 - Total post employment health care liability 152,853 56,154 209,007 - Total other liabilities 33,200,902 35,942,174 (39,927,401) 29,215,675 14,491,024 Governmental activities long-term liabilities 66,052,247$ 67,015,216$ (45,660,488)$ 87,406,975$ 18,824,424$ Business-Type Activities Bonds and ALP: Revenue bonds 157,108,758$ -$ (5,149,425)$ 151,959,333$ 3,647,571$ Assignment of lease payments 606,317 - (193,231) 413,086 201,599 157,715,075 - (5,342,656) 152,372,419 3,849,170 Add bond premium 15,622,012 - (810,574) 14,811,438 - Total bonds and ALP 173,337,087 - (6,153,230) 167,183,857 3,849,170 Other Liabilities: Capital leases 906,091 379,103 (352,588) 932,606 327,609 Compensated absences 2,206,179 2,626,057 (2,491,137) 2,341,099 2,341,099 Net pension liability 11,323,596 - (4,856,978) 6,466,618 - Total post employment health care liability 47,032 5,220 - 52,252 - Total other liabilities 14,482,898 3,010,380 (7,700,703) 9,792,575 2,668,708 Business-type activities long-term liabilities 187,819,985$ 3,010,380$ (13,853,933)$ 176,976,432$ 6,517,878$ Component Unit: Bonds: Tax revenue bonds 8,022,997$ -$ (2,091,311)$ 5,931,686$ 1,757,598$ Compensated absences 24,641 25,129 (36,447) 13,323 13,323 Component unit long-term liabilities 8,047,638$ 25,129$ (2,127,758)$ 5,945,009$ 1,770,921$ City of Fort Collins Comprehensive Annual Financial Report 79 Liquidation and Reporting of Governmental Activities Long-Term Liabilities The General Fund is primarily used to liquidate the governmental activities liabilities for compensated absences, net pension liability and 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. 80 City of Fort Collins Comprehensive Annual Financial Report 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 table represents these classifications and the purposes for which the amounts can be spent as of December 31, 2019. Udall Endowment: In 1996 and 2000, the City received a donation of 61 acres of land for use by the City as a natural area. The donor also provided $125,000 to be used for maintenance of the property. The amount remains in perpetual trust. Income is used solely for the maintenance the property. The endowment does not appreciate and interest earnings are appropriated in accordance with City Code and Charter. The endowment is recorded as nonspendable fund balance/restricted net position, and the cumulative income is recorded as restricted fund balance/net position. Fund Balances: General Keep Fort Collins Great Capital Projects Urban Renewal Authority Other Governmental Funds Total Nonspendable: Inventories 1,477,894 - - - - 1,477,894 Prepaids 18,940 - - - - 18,940 Udall endowment 125,000 - - - - 125,000 Total Nonspendable 1,621,834 - - - - 1,621,834 Restricted: Voter approved capital - 2,257,937 13,070,640 - 12,200,411 27,528,988 Community and operation - - - - 32,805,546 32,805,546 Parking - - - - 1,241,768 1,241,768 Convention and visitors bureau 213,568 - - - - 213,568 DDA/Woodward bonds 700,000 - - - - 700,000 Economic rebates 1,370,613 - - - - 1,370,613 Emergency 7,105,519 - - - - 7,105,519 Fiscal agent - - 1,390,827 - 1,390,827 Street maintenance 2,444,734 - - - 2,444,734 Other transportation 366,335 - - 1,063,029 1,429,364 Police services 285,658 1,904,995 - - - 2,190,653 Fire and emergency services 52,335 - - - 52,335 Parks and recreation 241,240 574,162 - - 37,398 852,800 Other 107,960 790,820 35,752 - 1,005,490 1,940,022 PEG distribution 205,447 - - - - 205,447 Sustainability services - - - 387,105 387,105 Udall property 32,199 - - - - 32,199 Total Restricted 10,262,204 8,391,318 13,106,392 1,390,827 48,740,747 81,891,487 Committed: Capital projects 152,534 - 11,633,437 - 43,393,581 55,179,552 Cultural development and planning 1,790,702 - - - 5,966,100 7,756,802 Police training campus 8,206,303 - - - - 8,206,303 Traffic calming 184,466 - - - - 184,466 Total Committed 10,334,005 - 11,633,437 - 49,359,681 71,327,123 Assigned: Camera radar 1,269,768 - - - - 1,269,768 Community and operation 670,291 - - - 3,970,389 4,640,680 Downtown parking plan - - - 174,819 174,819 Encumbrance for purchase orders 4,357,929 - - - 1,680,934 6,038,863 Harmony road - - - 5,521,239 5,521,239 Manufacturer use tax rebate 477,000 - - - - 477,000 Horticulture 268,625 - - - 268,625 Recreation - - - 274,030 274,030 General government 32,852,407 - - - 6,150,047 39,002,454 Transportation - - - 5,317,193 5,317,193 Waste innovation program 197,953 - - - - 197,953 Total Assigned 40,093,973 - - - 23,088,651 63,182,625 Unassigned 10,163,949 - - (236,050) 9,927,899 Total Fund Balances 72,475,965$ 8,391,318$ 24,739,829$ 1,154,777$ 121,189,079$ 227,950,968$ City of Fort Collins Comprehensive Annual Financial Report 81 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 $100,000 per occurrence deductible for most causes of loss including earthquake. Flood deductibles are $100,000 per occurrence, except in Special Flood Hazard Areas (SFHA) covered by FEMA, with separate deductibles applying - $500,000 for building, $500,000 for personal property, and $100,000 for time element costs. Named Storm deductibles are $50,000. Windstorm or hail deductibles are 2 percent of Total Insurable Values at the time of loss. Employees’ tools has a $10,000 deductible. Crime and boiler and machinery coverage has a $10,000 deductible. Vehicles have a $100,000 deductible. The City purchases 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, Law Enforcement and Wrongful Acts Liability – $10 million/occurrence, $20 million aggregate, with aggregate applying to each coverage separately. Auto Liability - $10 million/occurrence with no aggregate. Public Official Liability - $10 million/each wrongful act, $20 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. The Downtown Development Authority, a component unit, purchases general, public official liability, property, employment practices liability, non-owned auto liability, hired auto physical damage, workers compensation, Crime, and excess liability coverage from The Colorado Special Districts (CSD) Pool. 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 coverage has a deductible of $500. Crime coverage has a $500 deductible per occurrence. Coverage limits are as follows: General Liability – $2,000,000 per occurrence, no annual aggregate Public Entity Liability - $2,000,000 per occurrence limit / no annual aggregate (this includes all the lines of liability, with an overall limit of $2M for GL, AL, POL, EPL, with various sub-limits). Public Official Liability - $2,000,000 per occurrence limit, no annual aggregate Excess Liability - $1,000,000 per occurrence, no annual aggregate Workers Compensation Liability – Part A is paid according to state schedule Part B Employers Liability - $2,000,000 per employee/accident/disease Crime coverage - $100,000 per occurrence Employee Health and Illness The City and the component unit self-fund their employees for comprehensive major medical benefits under a Preferred Provider Options (PPO) health plan and a High Deductible Health Plan. The Benefits Fund (an internal service fund) is utilized to finance and account for medical risks of loss. Stop-loss coverage is retained as excess risk coverage, applying on a per occurrence basis with 2017 and 2018 being $225,000, and 2019 being $250,000 per occurrence. During the past three years, there have been 26 claims that have exceeded the stop-loss limit. 82 City of Fort Collins Comprehensive Annual Financial Report 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, 2019, amount to $5,107,400 and $2,155,200, respectively. These claims were determined on an actuarial basis and reflect the 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 $5,107,400 for the Self Insurance Fund is undiscounted and reflects a 75% confidence level factor. The discount refers to the full or undiscounted amount reduced for future investment earnings that can be generated on funds held between the date of valuation and the date of the final payment of claims. Changes in claims liabilities amounts for 2018 and 2019 are as follows: B. Employee Retirement Systems and Pension Plans 1. General Employees' Retirement Plan Plan Description The General Employees’ Retirement Plan (the Plan) is a governmental plan established pursuant to IRS Code Section 414(d). The Plan is administered by the General Employees Retirement Committee (GERC) with City Council having the option to alter, amend or terminate the Plan. All permanent, classified, non-uniformed employees hired before January 1, 1999 are eligible to be members of the General Employees' Retirement Plan, a single-employer defined benefit plan. Employees hired after January 1, 1999 are only eligible to participate in the Money Purchase Plan. The benefits and refunds of the Plan are recognized when due and payable in accordance with the terms of the plan. 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 1.5% 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. 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. 2019 2018 2019 2018 Medical claims liability, beginning of year 4,495,349$ 5,056,066$ 2,344,800$ 1,577,069$ Claims & changes in estimates 3,820,173 1,303,945 21,898,378 23,347,207 Claim payments (3,208,122) (1,864,662) (22,087,978) (22,579,476) Medical claims liability, end of year 5,107,400$ 4,495,349$ 2,155,200$ 2,344,800$ Self-Insurance Benefits City of Fort Collins Comprehensive Annual Financial Report 83 As of December 31, 2019, employee membership data related to the Plan was as follows: Retirees and beneficiaries currently receiving benefits 271 Inactive employees entitled to but not yet receiving benefits 70 Active plan participants 42 Total 383 The Plan is accounted for in the General Employees' Retirement Plan Pension Fund (a pension trust fund). The entire cost of the Plan is paid by the City as established or amended by City Council. The City’s current funding policy is to contribute 10.5% of the compensation for active plan participants plus an annual supplemental contribution while the plan is underfunded. The Plan does not issue a stand-alone financial report. Financial statements for the Plan are presented within the City’s financial statements as a fiduciary pension trust fund. Net Pension Liability Actuarial Assumptions An actuarial valuation is performed annually to determine the total pension liability. The net pension liability is to be measured as the total pension liability less the Plan’s fiduciary net position. To value the Plan, the actuary must predict future events such as investment return, mortality, and rates of termination and retirement using actuarial assumptions. Any variation in future experience from that expected from these assumptions will result in corresponding changes in the estimated costs of the Plan’s benefits. A description of assumptions applied in the current valuation follow. Valuation date January 1, 2020 Measurement date December 31, 2019 Inflation 2.50% Salary increase including inflation Graded by age including inflation, productivity and merit increases Mortality Pub-2010 General Employees Mortality Tables projected generationally using Scale MP2018 Actuarial cost method Entry Age Normal Asset valuation method Market value Investment rate of return 6.25% per annum, compounded annually net of investment-related expenses COLA None Change in assumptions The mortality assumption was updated to most recently published tables by the Society of Actuaries (SOA) developed exclusively from public- sector pension plan experience The form of payment assumption for participants retiring from deferred vested status was updated to better reflect anticipated future experience Significant changes There were no significant changes between the valuation date and measurement date Discount Rate The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees; therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Change in the discount rate since the prior measurement period is as follows: 84 City of Fort Collins Comprehensive Annual Financial Report Measurement Date 12/31/19 Discount Rate 6.25% Long-term expected rate of return, net of investment expense 6.25% Bond Municipal Bond Index 2.74% Money-Weighted Rate of Return The money-weighted rate of return considers the changing amounts actually invested during a period and weights the amount of pension plan investments by the proportion of time they are available to earn a return during that period. External cash flows are determined on a monthly basis and are assumed to occur at the middle of each month. External cash inflows are netted with external cash outflows, resulting in a net external cash flow each month. The money-weighted rate of return is calculated net of investment expenses. Fiscal Year Ending Net Money-Weighted December 31 Rate of Return 2019 20.95% 2018 -5.12% 2017 16.48% Long-Term Expected Rate of Return The best-estimate range for long-term expected rate of return is determined by adding expected inflation to the expected long-term real returns and reflecting expected volatility and correlation. The following is the Plan’s asset target allocations and the long-term expected geometric real rate of return for each asset class as of December 31, 2019. Asset Class Target Allocation Long-Term Expected Geometric Real Rate of Return Domestic Equity 45% 3.2% International Equity 15% 4.6% Fixed Income 40% 1.2% Change in Net Pension Liability Total Pension Liability Increase (Decrease) Plan Fiduciary Net Position Net Pension Liability (a) (a) – (b) Balance as of December 31, 2018 $66,247,577 $43,058,938 $23,188,639 Changes for the year Service Cost 308,736 - 308,736 Interest on total pension liability 3,557,492 - 3,557,492 Effect of economic/demographic gains of losses 226,198 - 226,198 Effect of assumption changes or inputs (3,823,926) - (3,823,926) Benefit payments (5,215,830) (5,215,830) - Employer contributions - 1,472,169 (1,472,169) Net investment income - 8,769,544 (8,769,544) Administrative expense - (26,939) 26,939 Balance as of December 31, 2019 $61,300,247 $48,057,882 $13,242,365 City of Fort Collins Comprehensive Annual Financial Report 85 Sensitivity Analysis The following presents the net pension liability, calculated using the discount rate of 6.25%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.25%) or 1 percentage point higher (7.25%) than the current rate. Current Discount 1% Decrease Rate 1% Increase 5.25% 6.25% 7.25% Total pension liability $66,976,552 $61,300,247 $56,405,125 Fiduciary net position 48,057,882 48,057,882 48,057,882 Net pension liability 18,918,670 13,242,365 8,347,243 Fiduciary net position as % of total pension liability 71.8% 78.4% 85.2% Pension Expense and Deferred Outflows of Resources Related to Pension For the year ended December 31, 2019, the City recognized pension expense of $2,603,161. The City reported deferred (inflows) of resources related to pension from the following source: Net difference between projected and actual earnings ($3,360,869) Deferred (inflows) for the net difference between projected and actual earnings are recognized over a period of five years. Amounts reported as deferred inflows of resources related to pension will be recognized in the pension expense as follows: 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 2019, the City contributed 37.5% of covered pay to the Plan as well as the supplemental contributions; this amounted to $1,472,169. 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, 2019, is $48,057,882 all of which is reserved for benefits of employees and beneficiaries. Net Deferred Year Ending (Inflows) of December 31 Resources 2020 (957,511)$ 2021 (1,007,063) 2022 (157,423) 2023 (1,238,872) Thereafter - Total (3,360,869)$ 86 City of Fort Collins Comprehensive Annual Financial Report Concentration of Credit Risk Investments in mutual funds exceeding 5% of the net position of the plan are as follows: Fidelity Mid Cap Enhanced Index – 5.3%, Fidelity Balance – 6.9%, TRP International (PRITX) – 6.0%, TRP New Asia (PRASX) – 5.3%, Vanguard 500 Index Inv – 7.9%, Vanguard Growth Index 5.7%. 2. 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; therefore, it is not included in the City’s financial statements. 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 $7,757,125 and $4,411,751, respectively during 2019. 3. 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 December 31, 2007, the plan has been frozen. There can no longer be any money withheld for this plan. Police Services, through the Collective Bargaining Unit (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. Both the frozen City plan and the current CBU plan are deemed defined contribution plans administered through trusts. Based on fiduciary activities of the City in relation to both RHS plans, the assets, liabilities and changes in fiduciary net position are presented in the Fiduciary Funds statements. 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 with less than 10 years of service, 1.25% for participants with 10-20 years of service, and 1.5% for participants with more than 20 years of service. Once participants become eligible to get reimbursed from their own RHS account, they can turn in receipts to a third-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. Employer and employee contributions to the CBU RHS plan were $396,657 and $323,851, respectively during 2019. City of Fort Collins Comprehensive Annual Financial Report 87 4. 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. Based on 2016 actuarial results, the Fire & Police Pension Association Board of Directors agreed to increase the contribution rate to 2.8%, effective January 1, 2019 through December 31, 2020. During 2019 the City’s contributions were $892,884, equal to the statutory required contribution. 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. 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 at https://www.fppaco.org/annual-reports.html. 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. 88 City of Fort Collins Comprehensive Annual 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 2019, the City contributed $16,393. Retiree and active members receiving benefits contribute monthly premiums as outlined: Premier Non- Medicare Premier Medicare Dental Vision Employee: $ 1,227 $ 490 $ 40 $ 8 Employee +1: 2,452 981 71 16 Participants Covered by the Benefit Terms The following is a summary of Plan participants at December 31, 2019: Participants Retiree Spouse Medical 4 1 Dental 13 8 Vision 11 4 Total OPEB Liability: The City’s total OPEB liability of $261,258 was measured as of December 31, 2019, and was determined by an actuarial valuation as of December 31, 2017. The total OPEB liability as of December 31, 2019 was determined using the following actuarial assumptions and other inputs: Inflation 2.50% Salary increases, including inflation N/A Discount rate 2.74% The discount rate was based on the Bond Buyer 20-Bond Governmental Obligations Index Mortality rates were based on the Pub-2010 General Employee Mortality Tables projected generationally using Scale MP2018. The size of the Plan’s population is not large enough to have a statistically credible independent study of retiree mortality. A standard published table appropriate to the Plan’s retiree population was used with a margin for future mortality improvement relative to recent Plan experience. City of Fort Collins Comprehensive Annual Financial Report 89 Changes in the Total OPEB Liability: Changes of assumptions and other inputs reflect a change in the discount rate from 4.10 percent in 2018 to 2.74 percent in 2019. Sensitivity Analysis The following presents the total OPEB liability of the City, calculated using the discount rate of 2.74 percent, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.74 percent) or 1 percentage point higher (3.74 percent) than the current rate: 1% Decrease Discount Rate 1% Increase 1.74% 2.74% 3.74% Total OPEB liability $ 291,187 $ 261,258 $ 236,131 The following presents total OPEB liability of the City, calculated using the current healthcare cost trend rates as well as what the City’s total OPEB liability would be if it were calculated using trend rates that are 1 percentage point lower or 1 percentage point higher than the current trend rates: Current 1% Decrease Trend Rate 1% Increase Total OPEB liability $ 233,048 $ 261,258 $ 294,332 Increase (Decrease) Total OPEB Liability Balance as of December 31, 2018 199,885$ Changes for the year: Service Cost - Interest on total OPEB liability 9,309 Effect of Plan changes - Effect of economic/demographic gains/losses - Effect of assumption changes or inputs 68,457 Benefit payments (16,393) Balance as of December 31, 2019 261,258$ 90 City of Fort Collins Comprehensive Annual Financial Report Deferred Inflows/Outflows of Resources For the year ended December 31, 2019, the City recognized OPEB expense of $42,492. At December 31, 2019, the City reported $0 in deferred outflows of resources and $0 in deferred inflows of resources. There were no amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB. D. Presentation of Postemployment Benefit Liabilities Within the basic financial statements, the net pension liability and total OPEB liability are presented on a combined basis on certain exhibits, including within the proprietary funds. The breakdown of these amounts is as follows: Postemployment Benefit Obligations Total Other Post- Total Post- Net Pension employment employment Liability Benefits Liability Obligations Governmental Activities Governmental Funds 5,824,420$ 209,006$ 6,033,426$ Internal Service Funds Equipment Fund 548,600 - 548,600 Data & Communications Fund 306,227 - 306,227 Benefits Fund 96,501 - 96,501 Total Governmental Activities 6,775,748 209,006 6,984,754 Business -Type Activities Enterprise Funds Golf Fund 278,033 - 278,033 Electric and Telecommunications 1,131,210 26,126 1,157,336 Water Fund 1,683,455 - 1,683,455 Wastewater Fund 1,627,934 26,126 1,654,060 Storm Drainage Fund 484,645 - 484,645 Internal Service Funds Utility Customer Service Fund 1,261,340 - 1,261,340 Total Business-Type Activities 6,466,617 52,252 6,518,869 TOTAL 13,242,365$ 261,258$ 13,503,623$ City of Fort Collins Comprehensive Annual Financial Report 91 E. Commitments/Contingencies Construction Commitments The City had commitments of $1,764,366, $17,523 and $2,151,280 for capital projects in governmental fund types, component unit, and proprietary fund types, respectively, at December 31, 2019. 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 proprietary funds at December 31, 2019 amounted to $88,128,398. Notice of Potentially Responsible Party Status On May 6, 2019, the City received communication from a State regulatory agency that it is considered a potentially responsible party (PRP), as that term is defined in Statement No. 49 of the Governmental Accounting Standards Board, Accounting and Financial Reporting for Pollution Remediation Obligations (GASB 49), as are two other identified PRPs, related to groundwater protection standards at a solid waste disposal facility on property that is owned in part by the City. While this communication, and subsequent clarifications, have indicated various deadlines for a potential settlement of the groundwater compliance issues, such deadlines have been repeatedly extended and negotiations are still ongoing. The solid waste disposal facility was operated by the City for about 8 years and has been operated by one of the other PRPs for more than 40 years since then. City staff and staff of the other PRPs are continuing to address the groundwater issues at the solid waste facility and are continuing to discuss potential settlement of the compliance issues with the State. The City remains in the relatively early stages of assessing the technical information about the facility, some of which is still being developed, investigating possible remedial alternatives and work with the other PRPs to negotiate next steps with the State. The results of these assessments are still in preliminary form and thus the necessary remediation measures remain in flux. The City has engaged external legal counsel and consulting support in an amount currently estimated at $100,000 to assist in this process. The potential financial responsibility of the City for a future remediation effort also remains indeterminable pending finalization of an assessment of corrective measures and approval of that report by the State. In addition, the PRPs remain in negotiation regarding the allocation of financial responsibility. As of December 31, 2019, the City has not expended other financial resources associated with potential pollution at the site, although the PRP operating the facility continues active site characterization and remediation work in furtherance of finalizing an assessment of corrective measures report to be submitted to the State agency. Further, a range of outcomes is not reasonably estimable and are thus not yet recognized in the financial statements. Pursuant to GASB 49, the City will define and periodically refine an estimated remediation liability if and when the stages of a remediation effort are determined and financial responsibility is allocated among the PRP. 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 92 City of Fort Collins Comprehensive Annual Financial Report 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 $1,326,037 and $22,240, 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. F. 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 State Constitution also 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, 2019, the amount required as an emergency reserve in compliance with the amendment is $7,105,519 and is shown as a restriction of fund balance in the General Fund. G. 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 2019: 1. Northern Colorado Regional 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. City of Fort Collins Comprehensive Annual Financial Report 93 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. Pursuant to an Intergovernmental Agreement between the City of Fort Collins, Colorado and the City of Loveland, Colorado, dated March 19, 2019, each of the Cities agreed to treat their required annual contribution as a fair market value rental rate for the Federal Aviation Administration Release property, defined therein as a portion of the Airport property, to be used for a future police training facility. Each City contributed $242,500 in 2018 and $177,339 in 2019. Financial Information The Northern Colorado Regional Airport is accounted for as a joint venture. A summary of financial information is as follows: As of December 31, 2019 Total current assets $ 2,738,303 Total capital Assets (net of accumulated depreciation) 14,657,231 Total Assets 17,395,534 Total current liabilities 214,561 Total Net Position $ 17,180,973 Net investment in capital assets 14,657,231 Restricted capital - Unrestricted net position 2,523,742 Total Net Position $ 17,180,973 For the Year Ended December 31, 2019 Total operating revenue 1,258,264 Total operating expense (2,812,982) Interest income 118,764 Non-operating revenue - Capital contributions 204,480 Change in Net Position $ (1,231,474) The City’s annual contribution is reflected as an expenditure of the General Fund. The City’s share of The Northern Colorado Regional 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 Airport can be obtained from the City of Loveland Finance Department at 500 East Third Street, Loveland, Colorado, 80537. 2. Poudre Fire Authority As mentioned in the summary of significant accounting policies, the City provides funding for PFA. During 2019, such funding amounted to $29,824,491 and was an expenditure in the General Fund and Keep Fort Collins Great Fund. In addition, the City provided accounting and administrative services to PFA at no charge. 94 City of Fort Collins Comprehensive Annual Financial Report 3. Platte River Power Authority The Light and Power Fund purchases all of its electrical power from PRPA. During 2019, these purchases amounted to $93,607,977 of which $7,673,799 is included in accounts payable on December 31, 2019. 4. North Front Range Metropolitan Planning Organization The City allows the North Front Range Metropolitan Planning Organization (NFRMPO) to participate in its employee benefit plans and bills NFRMPO for this coverage. In addition, NFRMPO also used the City’s fleet services for vehicle maintenance. During 2019, billings amounted to: Benefits $ 126,902 Services 98,274 Total $ 225,176 H. Subsequent Events COVID-19 In early 2020, an outbreak of the novel strain of coronavirus (COVID-19) emerged globally. The World Health Organization (WHO) declared a health emergency on January 20, 2020 and further declared a global pandemic on March 11, 2020. As a result, there have been mandates from federal, state and local authorities resulting in an overall decline in economic activity. The City continues to evaluate the impact of the economic decline on City financials and has concluded that while it is reasonable the virus will have a negative effect on the City’s sales tax and other revenue collections, the specific impact is not readily determinable. City of Fort Collins Comprehensive Annual Financial Report 95 REQUIRED SUPPLEMENTARY INFORMATION I. 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. The 2019 overall average PCI of the City’s street system was 74.6, approximately mid-range within the LOS of “B”. The City’s street system was at a PCI of 78 in 2018 and 79 in 2017. The average detail condition is as follows: Level of service ……………………………….................PCI Range…………………….….....Percent of Roads LOS A (excellent)………………………………………..100 to 86……………………………………….39% LOS B (good)……………………………………….….....85 to 71……………………………………......30% LOS C (fair)……………………………………………....70 to 56…………………………………..……17% LOS D (poor)………………………………………..……55 to 41…………………………………………9% LOS F (very poor)………………………………………...40 to 0……….…………………………………5% The City's next full three-year assessment cycle will be completed by the end of 2021. 96 City of Fort Collins Comprehensive Annual Financial Report REQUIRED SUPPLEMENTARY INFORMATION (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: Maintenance Actual Year Estimate Experience 2019 $18,355,293 $15,953,470 2018 17,892,042 15,370,349 2017 18,678,501 19,113,302 2016 16,700,000 16,124,280 2015 15,858,500 15,015,591 City of Fort Collins Comprehensive Annual Financial Report 97 REQUIRED SUPPLEMENTARY INFORMATION (continued) II. Pension SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS PENSION TRUST FUND FOR THE LAST FIVE FISCAL YEARS* Fiscal Year Ending December 31 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Total Pension Liability Service Cost 308,736$ 291,421$ 313,286$ 383,757$ 447,690$ 487,063$ N/A N/A N/A N/A Interest on total pension liability 3,557,492 3,620,607 3,695,911 3,681,690 3,651,345 3,571,272 N/A N/A N/A N/A Effect of economic/demographic (gains) or losses 226,198 554,888 21,369 (455,387) 224,753 237,034 N/A N/A N/A N/A Effect of assumption changes or inputs (3,823,926) 6,602,855 1,337,286 220,453 - 827,847 N/A N/A N/A N/A Benefit payments (5,215,830) (4,847,491) (3,720,322) (3,367,735) (4,205,104) (3,509,719) N/A N/A N/A N/A Net Change in Total Pension Liability (4,947,330) 6,222,280 1,647,530 462,778 118,684 1,613,497 N/A N/A N/A N/A Total pension liability, Beginning 66,247,577 60,025,297 58,377,767 57,914,989 57,796,305 56,182,808 N/A N/A N/A N/A Total pension liability, Ending (a)61,300,247$ 66,247,577$ 60,025,297$ 58,377,767$ 57,914,989$ 57,796,305$ N/A N/A N/A N/A Fiduciary Net Position Employer contributions 1,472,169$ 1,576,991$ 1,652,786$ 1,720,650$ 1,830,265$ 1,905,906$ N/A N/A N/A N/A Investment income net of investment expenses 8,769,544 (2,457,997) 7,032,710 2,496,850 (274,583) 2,630,327 N/A N/A N/A N/A Benefit payments (5,215,830) (4,847,491) (3,720,322) (3,367,735) (4,205,104) (3,509,719) N/A N/A N/A N/A Administrative expenses (26,939) (20,297) (26,752) (30,743) (22,706) (18,935) N/A N/A N/A N/A Net change in Plan Fiduciary Net Position 4,998,944 (5,748,794) 4,938,422 819,022 (2,672,128) 1,007,579 N/A N/A N/A N/A Fiduciary Net Position, Beginning 43,058,938 48,807,732 43,869,310 43,050,288 45,722,416 44,714,837 N/A N/A N/A N/A Fiduciary Net Position, Ending (b)48,057,882$ 43,058,938$ 48,807,732$ 43,869,310$ 43,050,288$ 45,722,416$ N/A N/A N/A N/A Employer's Net Pension Liability (a-b)13,242,365$ 23,188,639$ 11,217,565$ 14,508,457$ 14,864,701$ 12,073,889$ N/A N/A N/A N/A Covered payroll 3,923,740$ 4,738,991$ 5,255,224$ 6,191,383$ 7,306,661$ 7,306,659$ N/A N/A N/A N/A Net pension liability as a % of covered payroll 337.49% 489.32% 213.46% 234.33% 203.44% 165.25%N/A N/A N/A N/A *Information prior to 2014 is unavailable 98 City of Fort Collins Comprehensive Annual Financial Report REQUIRED SUPPLEMENTARY INFORMATION (continued) Plan Year Required Contribution Employer Contribution Contribution Deficiency (Excess) Covered Payroll Actual Contribution as a % of Covered Payroll 2019 $ 1,531,993 $ 1,472,169 $ 59,824 $3,923,740 37.5% 2018 1,617,594 1,576,991 40,603 4,738,991 33.3% 2017 1,671,799 1,652,786 19,013 5,255,224 31.5% 2016 1,770,095 1,720,650 49,445 6,191,383 27.8% 2015 1,887,199 1,830,265 56,934 7,306,661 25.0% 2014 2,659,452 1,905,906 753,546 7,306,659 26.1% 2013 2,681,999 2,067,363 614,636 8,202,862 25.2% 2012 2,334,577 1,241,929 1,092,648 8,834,557 14.1% 2011 1,706,844 1,345,466 361,378 9,582,235 14.0% 2010 1,892,946 2,100,467 (207,521) 10,399,210 20.2% SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' RETIREMENT PLAN FOR THE LAST TEN FISCAL YEARS Fiscal Year Ending Net Money-Weighted Rate December 31 of Return 2019 21.3% 2018 -5.1% 2017 16.5% 2016 5.9% 2015 -0.6% 2014 6.0% 2013 18.7% 2012 11.6% 2011 -3.1% 2010 11.1% Rate of return for 2013 and earlier are net of all expenses. Rate of return for 2014 and later is net of investment expenses only. SCHEDULE OF EMPLOYER CONTRIBUTIONS PENSION TRUST FUND LAST TEN FISCAL YEARS City of Fort Collins Comprehensive Annual Financial Report 99 REQUIRED SUPPLEMENTARY INFORMATION (continued) Actuarial Assumptions Valuation date December 31, 2017 Measurement date December 31, 2019 Inflation 2.50% Salary increase including inflation Graded by age including inflation, productivity, and merit increases Mortality Pub-2010 General Employees Mortality Tables projected generationally using Scale MP2018 Actuarial cost method Entry Age Normal Asset valuation method Market Value There were no significant changes between the fiscal year end and the valuation date. I. Other Postemployment Benefits Plan There is no covered payroll reported because the plan was closed to new retirees effective December 31, 2009 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Total OPEB Liability Service cost -$ -$ -$ N/A N/A N/A N/A N/A N/A N/A Interest on total OPEB liability 9,309 3,580 7,818 N/A N/A N/A N/A N/A N/A N/A Changes of benefit terms - - - N/A N/A N/A N/A N/A N/A N/A Effect of economic/demographic gains or (losses)- - - N/A N/A N/A N/A N/A N/A N/A Effect of assumption changes or inputs 68,457 6,147 6,534 N/A N/A N/A N/A N/A N/A N/A Benefit payments (16,393) (20,844) (20,180)N/A N/A N/A N/A N/A N/A N/A Net change in total OPEB liability 61,373 (11,117) (5,828)N/A N/A N/A N/A N/A N/A N/A Total OPEB liability, beginning 199,885 211,002 216,830 N/A N/A N/A N/A N/A N/A N/A Total OPEB liability, ending 261,258 199,885 211,002 N/A N/A N/A N/A N/A N/A N/A Covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Total OPEB liability as a % of covered payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Notes to schedule: Information is not available prior to 2017. In future reports additional information will be added until 10 years of historical data is presented Changes of assumptions: Changes of assumptions and other inputs reflect the changes in the discount rate each period. The following are discount rates used in each period. 2019 2.74% 2018 4.10% 2017 3.44% Schedule of Changes in Total OPEB Liability and Related Ratios 100 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK SUPPLEMENTARYINFORMATIONSUPPLEMENTARY INFORMATION City of Fort Collins Comprehensive Annual Financial Report 101 SUPPLEMENTARY INFORMATION Non-Major Governmental Funds ........................................................................................................................... 103 General Fund Combining Schedules ..................................................................................................................... 132 Urban Renewal Authority Combining Schedules .................................................................................................. 137 Capital Projects Fund Budget Schedule ................................................................................................................. 143 Enterprise Funds .................................................................................................................................................... 147 Internal Service Funds ........................................................................................................................................... 153 Fiduciary Funds .................................................................................................................................................... 165 Component Unit Statements .................................................................................................................................. 172 102 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK City of Fort Collins Comprehensive Annual Financial Report 103 blank 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. CCIP -- to account for collections of the City's .25% sales and use tax designated for Community Capital Improvement Program, a 10-year voter-approved tax renewal dedicated to specific projects. 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, 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. Transportation Capital Expansion Fees -- to account for capital expansion fees used to pay the City's portion of street oversizing costs. Transportation -- to account for the revenues used to operate and maintain streets, bridges, traffic controls, and transportation long- term planning. Parking -- to account for the revenue and operations of Parking Services. 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. 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. 104 City of Fort Collins Comprehensive Annual Financial Report NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2019 Community Cultural Capital Sales and Capital Improve-Natural Services & Expansion Use Tax ment Program Areas Facilities ASSETS Cash and cash equivalents 2,481,371$ (71,846)$ 1,088,529$ 2,131,950$ 438,728$ Investments 19,570,965 - 9,455,051 16,776,721 3,212,026 Receivables Sales and use taxes - 244,044 907,173 - - Accounts - 664,394 - 903,652 30,224 Interest 94,846 - 45,818 81,297 15,564 Due from other funds - - - - - Advances to other funds 758,093 - - - - Due from other governments - - - 12,700 - Total Assets 22,905,275 836,592 11,496,571 19,906,320 3,696,542 LIABILITIES Accounts payable, accruals, and other - 1,762 - 119,739 196,564 Wages payable - - - 166,546 84,665 Due to other governments - - - - - Due to other funds - - - - - Unearned revenue - - - 70,660 917,831 Deposits held - - - 14,508 131,064 Total Liabilities - 1,762 - 371,453 1,330,124 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - - - - Unavailable revenue - grants - - - 12,700 - Unavailable revenue - other - - - - - Total Deferred inflows of resources - - - 12,700 - FUND BALANCES Restricted - 834,830 11,496,571 19,522,167 100,000 Committed 22,905,275 - - - 906,549 Assigned - - - - 1,359,869 Total Fund Balances 22,905,275 834,830 11,496,571 19,522,167 2,366,418 Total Liabilities, Deferred Inflows of Resources and Fund Balances 22,905,275$ 836,592$ 11,496,571$ 19,906,320$ 3,696,542$ Special Revenue Funds City of Fort Collins Comprehensive Annual Financial Report 105 Trans- Trans- Perpetual Home Transit portation portation Recreation Cemeteries Care CDBG Program Services CEF Services 412,692$ 68,410$ 228,050$ (27,716)$ 367,088$ 805,507$ 2,737,809$ 1,422,767$ 2,841,835 483,599 1,798,764 - - 6,204,973 21,599,328 12,491,824 - - - - - - - 907,173 53,261 6,937 - 57,929 27,532 208,085 - 1,073,108 13,772 2,344 8,717 - - 30,064 104,665 60,514 - - - - - - - 259,420 - - - - - - - - - - - - - 3,395,999 - 29,742 3,321,560 561,290 2,035,531 30,213 394,620 10,644,628 24,441,802 16,244,548 215,497 18,221 - 18,517 - 2,442,134 235,116 2,018,392 190,662 17,288 - 5,486 4,119 436,550 3,684 450,633 12 154 - - - 13,378 - 2,275 - - - - - - - 65,140 347,515 - - - - - - - - - - - - - - - 753,686 35,663 - 24,003 4,119 2,892,062 238,800 2,536,440 - - - - - - - - - - - 5,486 4,120 1,454,393 - 230,501 - - - - - - - - - - - 5,486 4,120 1,454,393 - 230,501 41,749 - 2,035,531 724 386,381 - - - - 37,127 - - - - 24,125,662 1,385,068 2,526,125 488,500 - - - 6,298,173 77,340 12,092,539 2,567,874 525,627 2,035,531 724 386,381 6,298,173 24,203,002 13,477,607 3,321,560$ 561,290$ 2,035,531$ 30,213$ 394,620$ 10,644,628$ 24,441,802$ 16,244,548$ Special Revenue Funds (continued) 106 City of Fort Collins Comprehensive Annual Financial Report NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) DECEMBER 31, 2019 General General Imp.Total Improvement District # 15 Special Parking District # 1 Skyview Revenues ASSETS Cash and cash equivalents 180,980$ 103,792$ 14,815$ 12,382,926$ Investments 1,417,297 818,693 116,971 96,788,047 Receivables Property taxes - 312,898 40,416 353,314 Sales and use taxes - - - 2,058,390 Accounts 194,391 4,246 235 3,223,994 Interest 6,887 3,967 566 469,021 Due from other funds - - - 259,420 Advances to other funds - - - 758,093 Due from other governments - - - 3,438,441 Total Assets 1,799,555 1,243,596 173,003 119,731,646 LIABILITIES Accounts payable, accruals, and other 106,299 255 - 5,372,496 Wages payable 54,108 - - 1,413,741 Due to other governments - - - 15,819 Due to other funds - - - 65,140 Unearned revenue - - - 1,336,006 Deposits held - - - 145,572 Total Liabilities 160,407 255 - 8,348,774 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - 312,898 40,416 353,314 Unavailable revenue - grants - - - 1,707,200 Unavailable revenue - other 151,275 - - 151,275 Total Deferred inflows of resources 151,275 312,898 40,416 2,211,789 FUND BALANCES Restricted 1,241,768 930,443 132,587 36,722,751 Committed - - - 49,359,681 Assigned 246,105 - - 23,088,651 Total Fund Balances 1,487,873 930,443 132,587 109,171,083 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,799,555$ 1,243,596$ 173,003$ 119,731,646$ Special Revenue Funds (continued) City of Fort Collins Comprehensive Annual Financial Report 107 Debt Service Fund Capital Project Funds Fort Collins Total Total Leasing Neighborhood Conservation Capital Non-major Corporation Parkland Trust Project Governmental -$ 1,046,597$ 342,874$ 1,389,471$ 13,772,397$ - 8,254,687 2,704,111 10,958,798 107,746,845 - - - - 353,314 - - - - 2,058,390 - - - - 3,223,994 - 40,005 13,106 53,111 522,132 - - - - 259,420 - - - - 758,093 - - - - 3,438,441 - 9,341,289 3,060,091 12,401,380 132,133,026 - 129,795 224,549 354,344 5,726,840 - 20,411 8,629 29,040 1,442,781 - - - - 15,819 - - - - 65,140 - - - - 1,336,006 - - - - 145,572 - 150,206 233,178 383,384 8,732,158 - - - - 353,314 - - - - 1,707,200 - - - - 151,275 - - - - 2,211,789 - 9,191,083 2,826,913 12,017,996 48,740,747 - - - - 49,359,681 - - - - 23,088,651 - 9,191,083 2,826,913 12,017,996 121,189,079 -$ 9,341,289$ 3,060,091$ 12,401,380$ 132,133,026$ 108 City of Fort Collins Comprehensive Annual Financial Report NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2019 Community Cultural Capital Sales and Capital Improve-Natural Services & Expansion Use Tax ment Program Areas Facilities REVENUES Taxes -$ 8,464,342$ 8,599,014$ -$ -$ Licenses and permits - - - - - Intergovernmental - - - 5,465,944 14,500 Fees and charges for services 3,736,064 - - 89,633 2,993,525 Fines and forfeitures - - - - - Earnings on investments 649,799 577 388,270 591,630 118,768 Miscellaneous revenue - 1,725 - 152,894 117,492 Total Revenues 4,385,863 8,466,644 8,987,284 6,300,101 3,244,285 EXPENDITURES Current operating Community services - - - 6,935,356 4,291,789 Planning, development and transportation - - - - - Sustainability services - - 109,556 - - Other - - - - - Capital outlay - - - 4,802,020 302,769 Debt service Principal - - - - - Interest and debt service costs - - - - - Total Expenditures - - 109,556 11,737,376 4,594,558 Excess of Revenues Over (Under) Expenditures 4,385,863 8,466,644 8,877,728 (5,437,275) (1,350,273) OTHER FINANCING SOURCES (USES) Transfers in - - - 8,467,004 1,521,966 Transfers out (965,539) (8,467,004) (10,117,808) (2,257,941) (28,468) Sale of capital assets - - - 136,116 67 Total Other Financing Sources (Uses)(965,539) (8,467,004) (10,117,808) 6,345,179 1,493,565 Net Changes in Fund Balances 3,420,324 (360) (1,240,080) 907,904 143,292 Fund Balances -January 1 19,484,951 835,190 12,736,651 18,614,263 2,223,126 Fund Balances -December 31 22,905,275$ 834,830$ 11,496,571$ 19,522,167$ 2,366,418$ Special Revenue Funds City of Fort Collins Comprehensive Annual Financial Report 109 Trans- Trans- Perpetual Home Transit portation portation Recreation Cemeteries Care CDBG Program Services CEF Services -$ -$ -$ -$ -$ -$ -$ 8,599,014$ - - - - - - - 347,183 - - - 403,952 698,924 14,291,615 - 9,933,821 6,215,634 552,522 68,055 - - 1,326,291 4,298,392 3,989,671 - - - - - - - 8,858 102,018 21,763 63,871 61 323 155,149 825,379 414,008 238,615 14,250 - (83,285) (388,192) 94,851 4,350 406,558 6,556,267 588,535 131,926 320,728 311,055 15,867,906 5,128,121 23,699,113 6,921,338 617,187 - - - - - - - - - - - 16,487,458 286,551 23,574,322 - - - 409,684 626,043 - - - - - - - - - - - 168,506 29,702 - - - 6,284,254 320,389 355,341 - - - - - - - - - - - - - - - - 7,089,844 646,889 - 409,684 626,043 22,771,712 606,940 23,929,663 (533,577) (58,354) 131,926 (88,956) (314,988) (6,903,806) 4,521,181 (230,550) 586,175 216,371 - - - 9,962,764 261,316 1,571,604 (129,214) (404,532) (63,365) - - (165,439) (5,520,210) (2,553,271) 100,551 - - - - 27,175 - 50,177 557,512 (188,161) (63,365) - - 9,824,500 (5,258,894) (931,490) 23,935 (246,515) 68,561 (88,956) (314,988) 2,920,694 (737,713) (1,162,040) 2,543,939 772,142 1,966,970 89,680 701,369 3,377,479 24,940,715 14,639,647 2,567,874$ 525,627$ 2,035,531$ 724$ 386,381$ 6,298,173$ 24,203,002$ 13,477,607$ Special Revenue Funds (continued) 110 City of Fort Collins Comprehensive Annual Financial Report NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2019 General General Imp.Total Improvement District No. 15 Special Parking District No. 1 Skyview Revenues REVENUES Taxes -$ 297,368$ 32,238$ 25,991,976$ Licenses and permits - - - 347,183 Intergovernmental - 50,258 2,785 30,861,799 Fees and charges for services 1,551,737 - - 24,821,524 Fines and forfeitures 991,115 - - 999,973 Earnings on investments 55,266 26,650 6,739 3,420,271 Miscellaneous revenue 50,841 - - 610,099 Total Revenues 2,648,959 374,276 41,762 87,052,825 EXPENDITURES Current operating Community services - - - 18,765,670 Planning, development and transportation 2,508,597 - 103,637 42,960,565 Sustainability services - 120,064 - 1,265,347 Other - - - - Capital outlay 185,351 - - 12,448,332 Debt service Principal - - - - Interest and debt service costs - - - - Total Expenditures 2,693,948 120,064 103,637 75,439,914 Excess of Revenues Over (Under) Expenditures (44,989) 254,212 (61,875) 11,612,911 OTHER FINANCING SOURCES (USES) Transfers in 48,614 - - 22,635,814 Transfers out (62,934) (55,000) - (30,790,725) Sale of capital assets 975 - - 315,061 Total Other Financing Sources (Uses)(13,345) (55,000) - (7,839,850) Net Changes in Fund Balances (58,334) 199,212 (61,875) 3,773,061 Fund Balances -January 1 1,546,207 731,231 194,462 105,398,022 Fund Balances -December 31 1,487,873$ 930,443$ 132,587$ 109,171,083$ Special Revenue Funds (continued) City of Fort Collins Comprehensive Annual Financial Report 111 Debt Service Fund Fort Collins Total Total Leasing Neighborhood Conservation Capital Non-major Corporation Parkland Trust Project Governmental -$ -$ -$ -$ 25,991,976$ - - - - 347,183 - 676 1,888,084 1,888,760 32,750,559 - 1,769,877 - 1,769,877 26,591,401 - - - - 999,973 - 309,302 84,617 393,919 3,814,190 301,392 30,370 - 30,370 941,861 301,392 2,110,225 1,972,701 4,082,926 91,437,143 - 893,514 318,782 1,212,296 19,977,966 - - - - 42,960,565 - - - - 1,265,347 2,000 - - - 2,000 - 2,189,274 733,361 2,922,635 15,370,967 4,965,000 - - - 4,965,000 1,128,625 - - - 1,128,625 6,095,625 3,082,788 1,052,143 4,134,931 85,670,470 (5,794,233) (972,563) 920,558 (52,005) 5,766,673 5,794,233 100,000 - 100,000 28,530,047 - (21,323) (439,896) (461,219) (31,251,944) - - - - 315,061 5,794,233 78,677 (439,896) (361,219) (2,406,836) - (893,886) 480,662 (413,224) 3,359,837 - 10,084,969 2,346,251 12,431,220 117,829,242 -$ 9,191,083$ 2,826,913$ 12,017,996$ 121,189,079$ Capital Project Funds 112 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 649,799$ 368,715$ 281,084$ Fees and charges for services 3,736,064 4,080,000 (343,936) Payment on advance 133,346 - 133,346 Total Revenues 4,519,209 4,448,715 70,494 EXPENDITURES Programs Capital Expansion-General 90,000 90,000 - Community Parkland Capital Exp 500,539 2,717,139 2,216,600 Police Capital Expansion 375,000 375,000 - Total Expenditures 965,539 3,182,139 2,216,600 Excess (deficiency) of revenues over (under) expenditures 3,553,670 1,266,576$ 2,287,094$ RECONCILIATION TO GAAP BASIS Principal Reduction--Advances (133,346) Total Reconciling Items (133,346) Net Change in Fund Balances 3,420,324 Fund Balances--January 1 19,484,951 Fund Balances--December 31 22,905,275$ City of Fort Collins Comprehensive Annual Financial Report 113 SALES AND USE TAX FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 577$ 14,243$ (13,666)$ Miscellaneous revenue 1,725 - 1,725 Taxes 8,464,342 8,294,300 170,042 Total Revenues 8,466,644 8,308,543 158,101 EXPENDITURES Programs Transfers to Funds 8,467,004 8,308,543 (158,461) Total Expenditures 8,467,004 8,308,543 (158,461) Excess (deficiency) of revenues over (under) expenditures (360) -$ (360)$ Fund Balances--January 1 835,190 Fund Balances--December 31 834,830$ 114 City of Fort Collins Comprehensive Annual Financial Report COMMUNITY CAPITAL IMPROVEMENT PROGRAM FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Taxes 8,599,014$ 8,294,300$ 304,714$ Earnings on investments 388,270 - 388,270 Total Revenues 8,987,284 8,294,300 692,984 EXPENDITURES Projects (project level of budgetary control) City Park Train 200,298 350,000 149,702 Nature in the City 620,688 800,000 179,312 Bus Stop Improvements 392,721 400,000 7,279 Bicycle Infrastructure Imprvmt 1,056,159 1,350,000 293,841 Bike/Ped Grade Separated Cross 437,143 3,500,000 3,062,857 Arterial Intersection Imprvmnt 915,182 1,500,000 584,818 Lincoln Avenue Bridge 5,264,221 5,613,000 348,779 Pedestrian Sidewalk - ADA 4,111,630 4,200,000 88,370 Affordable Housing Fund 312,979 1,100,000 787,021 Gardens Visitor Ctr Expansion 2,030,339 2,225,000 194,661 Transfort Bus Replacements - 500,000 500,000 Willow Street Improvements 2,333,324 3,432,000 1,098,676 Poudre River Proj (CCIP only) 4,344,000 4,344,000 - Linden St Renovation 67,205 563,000 495,795 Total Expenditures 22,085,889 29,314,000 7,295,316 Excess (deficiency) of revenues over (under) expenditures (13,098,605) (21,019,700)$ 7,988,300$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 11,858,525 Total Reconciling Items 11,858,525 Net Change in Fund Balances (1,240,080) Fund Balances--January 1 12,736,651 Fund Balances--December 31 11,496,571$ City of Fort Collins Comprehensive Annual Financial Report 115 NATURAL AREAS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Progams Earnings on investments 591,630$ 291,371$ 300,259$ Fees and charges for services 89,633 61,000 28,633 Intergovernmental 5,410,823 4,250,000 1,160,823 Miscellaneous revenue 152,894 135,000 17,894 Proceeds from sale of capital assets 136,116 - 136,116 Transfers 8,467,004 8,308,543 158,461 Projects Intergovernmental 71,661 251,472 (179,811) Total Revenues 14,919,761 13,297,386 1,622,375 EXPENDITURES Progams Education 579,568 600,952 21,384 Enforcement 1,034,083 1,021,736 (12,347) Facility Operations 939,617 944,166 4,549 Land Conservation 6,840,869 15,817,467 8,976,598 Land Management 17,713 16,417 (1,296) Program Management 1,025,433 1,052,493 27,060 Public Improvements 1,126,472 2,027,828 901,356 Resource Management 2,375,720 3,735,346 1,359,626 Projects Education 71,908 251,472 179,564 Total Expenditures 14,011,383 25,467,877 11,456,494 Excess (deficiency) of revenues over (under) expenditures 908,378 (12,170,491)$ 13,078,869$ RECONCILIATION TO GAAP BASIS Current Year's Project Expenses 16,066 Principal Reduction--Long-term Debt (16,540) Total Reconciling Items (474) Net Change in Fund Balances 907,904 Fund Balances--January 1 18,614,263 Fund Balances--December 31 19,522,167$ 116 City of Fort Collins Comprehensive Annual Financial Report CULTURAL SERVICES AND FACILITIES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 118,768$ 62,703$ 56,065$ Fees and charges for services 2,993,525 2,735,635 257,890 Intergovernmental 10,000 - 10,000 Miscellaneous revenue 36,029 46,500 (10,471) Transfers 1,478,098 1,242,077 236,021 Projects Intergovernmental 71,550 5,000 66,550 Miscellaneous revenue 325,130 114,948 210,182 Transfers 1,105,335 1,550,118 (444,783) Total Revenues 6,138,435 5,756,981 381,454 EXPENDITURES Programs Art in Public Places 79,434 257,168 177,734 Lincoln Center 4,235,114 4,382,026 146,912 Projects Art in Public Places 1,043,071 1,728,149 685,078 Lincoln Center 247,146 160,000 (87,146) Total Expenditures 5,604,765 6,527,343 922,578 Excess (deficiency) of revenues over (under) expenditures 533,670 (770,362)$ 1,304,032$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 981,740 Prior Years' Project Revenues (1,372,118) Total Reconciling Items (390,378) Net Change in Fund Balances 143,292 Fund Balances--January 1 2,223,126 Fund Balances--December 31 2,366,418$ City of Fort Collins Comprehensive Annual Financial Report 117 RECREATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 102,018$ 62,545$ 39,473$ Fees and charges for services 6,215,634 6,375,274 (159,640) Miscellaneous revenue 333,016 161,630 171,386 Sale of capital assets 6,150 - 6,150 Transfers 586,175 586,175 - Projects Intergovernmental 331,576 408,634 (77,058) Miscellaneous revenue - 7,500 (7,500) Total Revenues 7,574,569 7,601,758 (27,189) EXPENDITURES Programs Adult Programs & Senior Center 1,666,562 1,675,489 8,927 Child Development 321,238 309,880 (11,358) City Park Pool 108,758 167,674 58,916 EPIC 1,821,291 1,988,101 166,810 Farm 365,693 373,986 8,293 NACC 737,283 756,741 19,458 Recreation Administration 1,363,455 1,517,735 154,280 Special Revenue Accounts 77,834 90,423 12,589 Sports 756,944 874,220 117,276 Recreation Grants 931,377 1,041,134 109,757 Total Expenditures 8,150,435 8,795,383 644,948 Excess (deficiency) of revenues over (under) expenditures (575,866) (1,193,625)$ 617,759$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 931,377 Prior Years' Project Revenues (331,576) Total Reconciling Items 599,801 Net Change in Fund Balances 23,935 Fund Balances--January 1 2,543,939 Fund Balances--December 31 2,567,874$ 118 City of Fort Collins Comprehensive Annual Financial Report CEMETERIES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 21,763$ 13,009$ 8,754$ Fees and charges for services 552,522 458,000 94,522 Miscellaneous revenue 14,250 14,000 250 Transfers 216,371 187,540 28,831 Total Revenues 804,906 672,549 132,357 EXPENDITURES Programs Grandview Cemetery 518,369 529,171 10,802 Roselawn Cemetery 133,030 171,773 38,743 Cemetery capital project transfers-out 400,022 437,149 37,127 Total Expenditures 1,051,421 1,138,093 86,672 Excess (deficiency) of revenues over (under) expenditures (246,515) (465,544)$ 219,029$ Fund Balances--January 1 772,142 Fund Balances--December 31 525,627$ City of Fort Collins Comprehensive Annual Financial Report 119 PERPETUAL CARE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 63,871$ 34,534$ 29,337$ Fees and charges for services 68,055 57,000 11,055 Total Revenues 131,926 91,534 40,392 EXPENDITURES Programs (fund level of budgetary control) Transfers to Funds 63,365 34,534 (28,831) Total Expenditures 63,365 34,534 (28,831) Excess (deficiency) of revenues over (under) expenditures 68,561 57,000$ 11,561$ Fund Balances--January 1 1,966,970 Fund Balances--December 31 2,035,531$ 120 City of Fort Collins Comprehensive Annual Financial Report 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 61$ -$ 61$ Miscellaneous revenue (83,284) - (83,284) Projects Earnings on investments 629 82,596 (81,967) Intergovernmental 9,736,290 11,529,068 (1,792,778) Miscellaneous revenue 2,157,097 2,652,834 (495,737) Total Revenues 11,810,793 14,264,498 (2,453,705) EXPENDITURES Projects CDBG FY 10-11 1,041,666 1,041,666 - CDBG FY 12-13 1,300,366 1,300,366 - CDBG FY 13-14 1,434,844 1,434,914 70 CDBG FY 14-15 902,432 940,596 38,164 CDBG FY 15-16 988,357 1,008,898 20,541 CDBG Grant PI FY13-14 349,261 349,191 (70) CDBG Grant PI FY14-15 157,865 157,865 - CDBG Grant PI FY 15-16 233,634 233,634 - CDBG Grant PI FY 10-11 2,881 2,881 - CDBG FY 16-17 916,694 975,901 59,207 CDBG Grant FY 17-18 1,348,141 1,324,036 (24,105) CDBG Grant FY 18-19 455,052 1,253,061 798,009 CDBG Grant FY 19-20 35,888 1,330,697 1,294,809 Total Expenditures 9,167,081 11,353,706 2,186,625 Excess (deficiency) of revenues over (under) expenditures 2,643,712 2,910,792$ (267,080)$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 8,757,396 Prior Years' Project Revenues (11,490,064) Total Reconciling Items (2,732,668) Net Change in Fund Balances (88,956) Fund Balances--January 1 89,680 Fund Balances--December 31 724$ City of Fort Collins Comprehensive Annual Financial Report 121 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 323$ -$ 323$ Miscellaneous revenue (388,192) - (388,192) Projects Earnings on investments 40,182 - 40,182 Intergovernmental 5,788,337 7,456,232 (1,667,895) Miscellaneous revenue 2,527,078 2,784,019 (256,941) Total Revenues 7,967,728 10,240,251 (2,272,523) EXPENDITURES Projects HOME FY 11-12 867,964 892,392 24,428 HOME FY 12-13 807,671 834,531 26,860 HOME FY 13-14 827,958 827,958 - HOME FY 14-15 464,783 549,878 85,095 HOME FY 15-16 402,459 550,344 147,885 HOME FY15-16 PI 425,773 277,888 (147,885) HOME Grant PI FY 11-12 24,428 - (24,428) HOME Grant PI FY 12-13 55,318 28,458 (26,860) HOME Grant PI FY13-14 541,280 541,280 - HOME Grant PI FY14-15 567,809 509,405 (58,404) HOME FY 16-17 561,870 561,870 - HOME Grant FY 17-18 1,143,124 2,231,749 1,088,625 HOME Grant FY 19-20 25,348 719,116 693,768 Total Expenditures 6,715,785 8,524,869 1,809,084 Excess (deficiency) of revenues over (under) expenditures 1,251,943 1,715,382$ (463,439)$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 6,089,742 Prior Years' Project Revenues (7,656,673) Total Reconciling Items (1,566,931) Net Change in Fund Balances (314,988) Fund Balances--January 1 701,369 Fund Balances--December 31 386,381$ 122 City of Fort Collins Comprehensive Annual Financial Report 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 155,149$ -$ 155,149$ Fees and charges for services 1,288,321$ 908,978$ 379,343$ Intergovernmental 4,887,260 5,380,256 (492,996) Miscellaneous revenue 94,825 - 94,825 Sale of capital assets 27,175 - 27,175 Transfers 9,962,764 10,187,764 (225,000) Projects Earnings on investments 627,040 673,557 (46,517) Fees and charges for services 13,303,701 12,779,686 524,015 Intergovernmental 97,698,847 101,991,874 (4,293,027) Miscellaneous revenue 1,209,558 1,327,058 (117,500) Sale of capital assets 49,340 - 49,340 Transfers 102,447,613 103,358,118 (910,505) Total Revenues 231,751,593 236,607,291 (4,855,698) EXPENDITURES Programs COLT Support 469,282 557,074 87,792 Overhead 2,072,110 2,125,539 53,429 Stadium Events 54,080 150,000 95,920 Information Technology 765,831 736,723 (29,108) Bus Operator/Tran Operator I 5,987,285 - (5,987,285) Dispatch 125,234 - (125,234) Operations 3,912,534 11,610,574 7,698,040 Service Development 466,714 644,398 177,684 Demand Response 1,445,938 1,671,437 225,499 Transit Transfers 46,084 46,084 - Projects 5307 Pass-Thru 10,346,267 10,301,427 (44,840) 5309 Capital 21,164,656 23,321,915 2,157,259 Additional Revenue Service 1,962,291 1,091,496 (870,795) CMAQ Capital 9,204,852 7,964,640 (1,240,212) CSU Transit Center 675,632 806,066 130,434 DAR Operations 25,231,729 30,114,358 4,882,629 DAR Overhead 2,206,314 2,350,596 144,282 DAR Revenue 83 - (83) Dispatch Operations 4,382,663 4,339,868 (42,795) Downtown Transit Center 4,041,913 3,347,369 (694,544) Fixed Operations 92,918,381 102,380,230 9,461,849 Fixed Overhead 19,376,044 18,160,132 (1,215,912) Information Technology 4,112,819 3,438,750 (674,069) Marketing - GF 3,556,771 3,357,762 (199,009) MAX - Start Up & Testing 1,025,381 1,116,004 90,623 Safe Ride Home Program 652,776 653,541 765 Safety/Training 6,744,595 4,582,769 (2,161,826) South Transit Center 124,985 596,475 471,490 Variable Revenue 31,887 - (31,887) Bike N Ride Shelter TAP Grant 78,606 210,000 131,394 FASTER Bus Lift 232,545 - (232,545) FLEX Bus Purchase 1,174,972 1,200,000 25,028 FASTER PO#491001715 Pool Veh. 320,555 250,000 (70,555) CMAQ CNG BUS CO-2019-001-00 - 1,597,000 1,597,000 FY18 5339 Grant 4,420 - (4,420) FY19 5339 Grant - 2,234,934 2,234,934 FY20 Settlement - E Buses - 2,017,640 2,017,640 FY20 Settlement - Cutaways - 116,268 116,268 Total Expenditures 224,916,229 243,091,069 18,174,840 Excess (deficiency) of revenues over (under) expenditures 6,835,364 (6,483,778)$ 13,319,142$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 201,979,075 Prior Years' Project Revenues (205,893,745) Total Reconciling Items (3,914,670) Net Change in Fund Balances 2,920,694 Fund Balances--January 1 3,377,479 Fund Balances--December 31 6,298,173$ City of Fort Collins Comprehensive Annual Financial Report 123 TRANSPORTATION CAPTIAL EXPANSION FEE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 4,298,392$ 4,554,261$ (255,869)$ Earnings on investments 825,379 443,938 381,441 Miscellaneous revenue 4,350 - 4,350 Transfers 261,316 248,739 12,577 Total Revenues 5,389,437 5,246,938 142,499 EXPENDITURES Programs Capital Outlay 320,388 2,775,000 2,454,612 Other - 56,907 56,907 Other Purchased Services 198,492 151,372 (47,120) Personnel Costs 74,992 212,065 137,073 Purchased Prof & Tech Services 12,587 123,646 111,059 Purchased Property Services - 30,000 30,000 Supplies 481 - (481) Transfers 5,520,210 20,260,288 14,740,078 Total Expenditures 6,127,150 23,609,278 17,482,128 Excess (deficiency) of revenues over (under) expenditures (737,713) (18,362,340)$ 17,624,627$ Fund Balances--January 1 24,940,715 Fund Balances--December 31 24,203,002$ 124 City of Fort Collins Comprehensive Annual Financial Report TRANSPORTATION SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 414,008$ 343,567$ 70,441$ Fees and charges for services 3,989,671 5,730,045 (1,740,374) Fines and forfeitures 8,858 8,858 - Intergovernmental 9,933,208 9,107,413 825,795 Licenses and permits 347,183 250,000 97,183 Miscellaneous revenue 406,559 194,305 212,254 Sale of capital assets 50,177 - 50,177 Taxes 8,599,014 8,294,300 304,714 Transfers 1,447,641 1,447,645 (4) Projects Intergovernmental 333,444 836,338 (502,894) Miscellaneous revenue 7,000 - 7,000 Transfers 123,963 123,963 - Total Revenues 25,660,726 26,336,434 (675,708) EXPENDITURES Programs (fund level of budgetary control) Engineering 2,744,312 3,234,749 490,437 FC Moves 554,399 572,225 17,826 PDT Administration 2,995,026 4,337,548 1,342,522 Streets 16,765,619 18,129,933 1,364,314 Traffic 3,415,594 4,236,537 820,943 Projects (project level of budgetary control) FC Moves 547,952 1,175,000 627,048 Traffic Signal System Software 165,131 280,000 114,869 Total Expenditures 27,188,033 31,965,992 4,777,959 Excess of revenues over (under) expenditures (1,527,307) (5,629,558)$ 4,102,251$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 705,098 Prior Years' Project Revenues (339,831) Total Reconciling Items 365,267 Net Change in Fund Balances (1,162,040) Fund Balances--January 1 14,639,647 Fund Balances--December 31 13,477,607$ City of Fort Collins Comprehensive Annual Financial Report 125 PARKING SERVICES FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 55,266$ 32,291$ 22,975$ Fees and charges for services 1,551,737 1,783,000 (231,263) Fines and forfeitures 991,115 850,000 141,115 Intergovernmental - 60,000 (60,000) Miscellaneous revenue 50,841 127,813 (76,972) Sale of capital assets 975 - 975 Transfers 48,614 - 48,614 Projects Total Revenues 2,698,548 2,853,104 (154,556) EXPENDITURES Programs Parking Services 1,558,935 1,819,576 260,641 Civic Center Parking Structure 586,022 686,253 100,231 Old Town Parking Structure 303,228 306,147 2,919 Harmony Park & Ride - 60,000 60,000 Jefferson St Parking Structure 225,577 255,156 29,579 Parking Systems Specialist (7) - 7 Parking Transfers 46,084 46,084 - Projects Parking Sensor Technology 981,396 1,212,000 230,604 Total Expenditures 3,701,235 4,385,216 683,981 Excess (deficiency) of revenues over (under) expenditures (1,002,687) (1,532,112)$ 529,425$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 944,353 Total Reconciling Items 944,353 Net Change in Fund Balances (58,334) Fund Balances--January 1 1,546,207 Fund Balances--December 31 1,487,873$ 126 City of Fort Collins Comprehensive Annual Financial Report GENERAL IMPROVEMENT DISTRICT NO. 1 FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 26,650$ 14,342$ 12,308$ Intergovernmental 50,258 45,000 5,258 Taxes 297,368 308,000 (10,632) Total Revenues 374,276 367,342 6,934 EXPENDITURES Programs Construction Services 20,434 60,000 39,566 Other Prof & Tech Services 2,949 6,000 3,051 Professional & Technical 5,951 11,500 5,549 Rebates & Incentives 34,831 30,000 (4,831) Transfers to Funds 55,000 55,000 - Utility Services 2,791 4,500 1,709 Other Purchased Services 683 - Projects GID #1 Opera Galleria 52,425 60,000 Total Expenditures 175,064 227,000 45,044 Excess (deficiency) of revenues over (under) expenditures 199,212 140,342$ 51,978$ Fund Balances--January 1 731,231 Fund Balances--December 31 930,443$ City of Fort Collins Comprehensive Annual Financial Report 127 GENERAL IMPROVEMENT DISTRICT NO. 15 - SKYVIEW FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 6,739$ 3,197$ 3,542$ Intergovernmental 2,785 2,800 (15) Taxes 32,238 32,784 (546) Total Revenues 41,762 38,781 2,981 EXPENDITURES Programs Professional & Technical 645 1,000 355 Infrastructure Maint Supplies 102,992 125,000 22,008 Total Expenditures 103,637 126,000 22,363 Excess (deficiency) of revenues over (under) expenditures (61,875) (87,219)$ 25,344$ Fund Balances--January 1 194,462 Fund Balances--December 31 132,587$ 128 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 (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Miscellaneous revenue 301,392$ 363,748$ (62,356)$ Transfers 5,794,233 6,151,132 (356,899) Total Revenues 6,095,625 6,514,880 (419,255) EXPENDITURES Programs Debt Service 6,093,625 6,508,884 415,259 Professional & Technical 2,000 5,800 3,800 Total Expenditures 6,095,625 6,514,684 419,059 Excess (deficiency) of revenues over (under) expenditures - 196$ (196)$ Fund Balances--January 1 - Fund Balances--December 31 -$ City of Fort Collins Comprehensive Annual Financial Report 129 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 198,703$ 198,703 -$ Fees and charges for services 172,056 - 172,056 Projects Earnings on investments 2,638,818 2,577,294 61,524 Fees and charges for services 16,241,026 17,043,043 (802,017) Intergovernmental 193,114 386,096 (192,982) Miscellaneous revenue 113,816 74,590 39,226 Transfers 352,707 522,707 (170,000) Total Revenues 19,910,240 20,802,433 (892,193) EXPENDITURES Programs Parkland & Administration Cost 370,759 432,415 61,656 Parkland Commun Support 1,840 - (1,840) Projects Lake Canal Neighborhood Park 5,286 5,300 14 Lee Martinez Park Addition 539,462 839,462 300,000 Maple Hill Park 2,136,026 2,681,061 545,035 New Park Site Development 2,026,236 4,132,257 2,106,021 New Site Acquisition 3,047,877 3,050,945 3,068 Romero 150,000 150,000 - Side Hill Neighborhood Park 346,654 616,096 269,442 Trailhead Park 495,754 2,895,000 2,399,246 Eastridge Park 1,580 10,000 8,420 Streets Facility Park 1,981,987 2,215,000 233,013 Whitewater Neighborhood Park 94,090 200,000 105,910 Water Supply Assessment 12,944 15,180 2,236 Office Improvements 140,067 200,000 59,933 Parks & Rec Policy Plan Update 39,140 450,000 410,860 East Comm Pk Maint Fac 1,790 5,000 3,210 Parks Develop Review 979 782 (197) Total Expenditures 11,392,471 17,898,498 6,506,027 Excess (deficiency) of revenues over (under) expenditures 8,517,769 2,903,935$ 5,613,834$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 8,288,361 Prior Years' Project Revenues (17,700,016) Total Reconciling Items (9,411,655) Net Change in Fund Balances (893,886) Fund Balances--January 1 10,084,969 Fund Balances--December 31 9,191,083$ 130 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, 2019 Final Actual Budget Variance REVENUES Programs Intergovernmental 488,054$ -$ 488,054$ Projects Earnings on investments 491,723 925,522 (433,799) Intergovernmental 16,182,822 16,093,498 89,324 Total Revenues 17,162,599 17,019,020 143,579 EXPENDITURES Programs Administration 88,055 144,116 56,061 Conservation Trust Transfers 400,000 400,000 - Projects Longview Corridor Trail 310,558 318,050 7,492 Trail Acquisition/Development 9,465,874 10,156,844 690,970 Trees Along the Trails 66,456 125,000 58,544 Fossil Creek Trail Underpass 1,132,762 1,132,762 - Fossil Ck Trl-Shields/College 2,037,325 2,045,350 8,025 Hydro Bank and Trl Repair 5,759 106,000 100,241 Power Trl to Spring Creek 196,636 242,400 45,764 Poudre Trail at I-25 131,668 290,000 158,332 Dev Review Future Trails 34,896 35,000 104 Poudre Trl-Lincoln Mid Sch 418,521 575,700 157,179 Rossborough Cyclocross 10,691 14,000 3,309 Tree Replacement 26,400 26,400 - Eastside Pk Land Purchase 2,444 5,000 2,556 Total Expenditures 14,328,045 15,616,622 1,288,577 Excess (deficiency) of revenues over (under) expenditures 2,834,554 1,402,398$ 1,432,156$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 12,836,006 Prior Years' Project Revenues (15,189,898) Total Reconciling Items (2,353,892) Net Change in Fund Balances 480,662 Fund Balances--January 1 2,346,251 Fund Balances--December 31 2,826,913$ City of Fort Collins Comprehensive Annual Financial Report 131 THIS PAGE INTENTIONALLY LEFT BLANK 132 City of Fort Collins Comprehensive Annual Financial Report blank GENERAL FUND COMBINING SCHEDULES General Fund Components General -- this 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. Museum -- to account for revenues received from Fort Collins Museum of Discovery and General Fund subsidies used to promote cultural activities. City of Fort Collins Comprehensive Annual Financial Report 133 GENERAL FUND COMBINING BALANCE SHEET DECEMBER 31, 2019 General Fund Museum Eliminations Consolidated ASSETS Cash and cash equivalents 6,199,795$ 85,146$ -$ 6,284,941$ Investments 60,546,563 671,589 - 61,218,152 Receivables Property taxes 27,115,072 - - 27,115,072 Sales and use taxes 9,481,789 - - 9,481,789 Accounts, net 1,337,142 - - 1,337,142 Interest 293,957 3,255 - 297,212 Prepaid item 18,940 - - 18,940 Due from other governments 114,914 - - 114,914 Inventory of real property held for resale 1,477,894 - - 1,477,894 Restricted - cash and cash equivalents 49,713 - - 49,713 Total Assets 106,635,779 759,990 - 107,395,769 LIABILITIES Accounts payable, accruals, and other 4,015,803 14,409 - 4,030,212 Wages payable 2,855,704 37,760 - 2,893,464 Due to other governments 198,334 - - 198,334 Deposits held 68,559 - - 68,559 Total Liabilities 7,138,400 52,169 - 7,190,569 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 27,115,072 - - 27,115,072 Unavailable revenue - grants 614,163 - - 614,163 Total Deferred inflows of resources 27,729,235 - - 27,729,235 FUND BALANCES Nonspendable 1,621,834 - - 1,621,834 Restricted 10,262,203 - - 10,262,203 Committed 10,334,005 - - 10,334,005 Assigned 39,386,153 707,821 - 40,093,974 Unassigned 10,163,949 - - 10,163,949 Total Fund Balances 71,768,144 707,821 - 72,475,965 Total Liabilities, Deferred Inflows of Resources and Fund Balances 106,635,779$ 759,990$ -$ 107,395,769$ 134 City of Fort Collins Comprehensive Annual Financial Report GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2019 General Fund Museum Eliminations Consolidated REVENUES Taxes 116,593,702$ -$ -$ 116,593,702$ Licenses and permits 3,509,596 - - 3,509,596 Intergovernmental 16,526,016 - - 16,526,016 Fees and charges for services 9,793,971 - - 9,793,971 Fines and forfeitures 1,764,265 - - 1,764,265 Earnings on investments 2,906,039 24,045 - 2,930,084 Miscellaneous revenue 1,099,084 - - 1,099,084 Total Revenues 152,192,673 24,045 - 152,216,718 EXPENDITURES Current operating Police services 41,776,651 - - 41,776,651 Financial services 4,599,848 - - 4,599,848 Community services 13,199,015 961,770 - 14,160,785 Planning, development and transportation 10,258,328 - - 10,258,328 Executive, legislative, and judicial 7,780,374 - - 7,780,374 Information and employee services 17,548,639 - - 17,548,639 Sustainability services 5,655,946 - - 5,655,946 Other 1,674,285 - - 1,674,285 Intergovernmental Fire protection 26,715,616 - - 26,715,616 Capital outlay 3,543,157 - - 3,543,157 Debt service Principal 60,769 - - 60,769 Interest and debt service costs 2,784 - - 2,784 Total Expenditures 132,815,412 961,770 - 133,777,182 Excess (Deficiency) of Revenues Over (Under) Expenditures 19,377,261 (937,725) - 18,439,536 OTHER FINANCING SOURCES (USES) Transfers in 2,297,362 945,801 (945,801) 2,297,362 Transfers out (41,998,694) (7,751) 945,801 (41,060,644) Debt Debt issued 23,865,000 - - 23,865,000 Premium on Debt 1,879,179 - - 1,879,179 Total Other Financing Sources (Uses)(13,957,153) 938,050 - (13,019,103) Net Changes in Fund Balances 5,420,108 325 - 5,420,433 Fund Balances -January 1 66,348,036 707,496 - 67,055,532 Fund Balances -December 31 71,768,144$ 707,821$ -$ 72,475,965$ City of Fort Collins Comprehensive Annual Financial Report 135 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Taxes 116,593,702$ 114,578,400$ 2,015,302$ Licenses and permits 3,509,596 3,920,000 (410,404) Intergovernmental 14,366,917 13,958,980 407,937 Fees and charges for services 9,793,971 10,285,421 (491,450) Fines and forfeitures 1,764,265 2,581,268 (817,003) Earnings on investments 2,906,039 1,458,485 1,447,554 Miscellaneous revenue 1,060,038 954,095 105,943 Proceeds from issuance of long-term debt 17,402,484 17,402,484 - Transfers 2,326,202 2,350,362 (24,160) Projects Intergovernmental 4,961,967 6,684,452 (1,722,485) Miscellaneous revenue 3,036,504 4,401,901 (1,365,397) Proceeds from issuance of long-term debt 8,341,695 8,341,695 - Transfers 107,782 134,782 (27,000) Total Revenues 186,171,162 187,052,325 (881,163) EXPENDITURES Programs (fund level of budgetary control) Community services 13,874,380 15,376,341 1,501,961 Information and employee services 18,067,013 19,762,411 1,695,398 Executive, legislative, and judicial 7,613,475 8,065,597 452,122 Financial services 4,599,848 4,701,724 101,876 Fire protection 26,715,616 26,715,616 - Other 43,402,747 44,427,583 1,024,836 Planning, development and transportation 10,196,300 10,160,003 (36,297) Police services 41,820,896 41,740,674 (80,222) Sustainability services 5,478,635 6,530,042 1,051,407 Projects (project level of budgetary control) Information and employee services 153,431 4,096,143 3,942,712 Executive, legislative, and judicial 700,358 568,820 (131,538) Planning, development and transportation 636,943 1,092,186 455,243 Police services 3,951,425 14,569,089 10,617,664 Sustainability services 1,492,480 1,593,671 101,191 Community services 274,833 280,760 5,927 Total Expenditures 178,978,380 199,680,660 20,702,280 Excess (deficiency) of revenues over (under) expenditures 7,192,782 (12,628,335)$ 19,821,117$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 4,164,275 Prior Years' Project Revenues (5,936,949) Total Reconciling Items (1,772,674) Net Change in Fund Balances 5,420,108 Fund Balances--January 1 66,348,036 Fund Balances--December 31 71,768,144$ 136 City of Fort Collins Comprehensive Annual Financial Report MUSEUM FUND (A SUB-FUND OF THE GENERAL FUND) SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 24,045$ 17,535$ 6,510$ Miscellaneous revenue - 50,000 (50,000) Transfers 945,801 945,801 - Total Revenues 969,846 1,013,336 (43,490) EXPENDITURES Programs (fund level of budgetary control) Capital Outlay - 37,500 37,500 Other - 50,000 50,000 Other Purchased Services 97,568 88,112 (9,456) Personnel Costs 812,062 860,238 48,176 Purchased Prof & Tech Services 5,585 7,500 1,915 Purchased Property Services 10,107 17,922 7,815 Supplies 36,448 42,813 6,365 Transfers 7,751 7,751 - Total Expenditures 969,521 1,111,836 142,315 Excess (deficiency) of revenues over (under) expenditures 325 (98,500)$ 98,825$ Fund Balances--January 1 707,496 Fund Balances--December 31 707,821$ City of Fort Collins Comprehensive Annual Financial Report 137 blank URBAN RENEWAL AUTHORITY COMBINING SCHEDULES URA Components URA - North 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 District-- to account for the tax increment financing for the operations and debit services of the Urban Renewal Authority - Prospect South TIF District. URA - Foothills Mall -- to account for the tax increment financing for the operations and debit services of the Urban Renewal Authority - Foothills Mall TIF District. 138 City of Fort Collins Comprehensive Annual Financial Report URBAN RENEWAL AUTHORITY FUND COMBINING BALANCE SHEET DECEMBER 31, 2019 North College Prospect South Foothills Mall Consolidated ASSETS Cash and cash equivalents 109,066$ 36,082$ 189$ 145,337$ Investments 860,658 285,092 1,495 1,147,245 Receivables Property taxes 2,443,843 748,108 3,951,570 7,143,521 Interest 4,169 1,379 7 5,555 Restricted - cash and cash equivalents 975,514 413,622 - 1,389,136 Total Assets 4,393,250 1,484,283 3,953,261 9,830,794 LIABILITIES Accounts payable, accruals, and other 9,937 - - 9,937 Wages payable 6,373 - - 6,373 Advance from other funds 1,516,186 - - 1,516,186 Total Liabilities 1,532,496 - - 1,532,496 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 2,443,843 748,108 3,951,570 7,143,521 Total Deferred inflows of resources 2,443,843 748,108 3,951,570 7,143,521 FUND BALANCES Restricted 975,514 413,622 1,691 1,390,827 Unassigned (558,603) 322,553 - (236,050) Total Fund Balances 416,911 736,175 1,691 1,154,777 Total Liabilities, Deferred Inflows of Resources and Fund Balances 4,393,250$ 1,484,283$ 3,953,261$ 9,830,794$ City of Fort Collins Comprehensive Annual Financial Report 139 URBAN RENEWAL AUTHORITY FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT) FOR THE YEAR ENDED DECEMBER 31, 2019 North College Prospect South Foothills Mall Consolidated REVENUES Taxes 1,989,781$ 603,023$ 3,537,625$ 6,130,429$ Earnings on investments 62,701 22,542 10,083 95,326 Total Revenues 2,052,482 625,565 3,547,708 6,225,755 EXPENDITURES Current operating Sustainability services 173,161 423,529 3,601,145 4,197,835 Debt service Principal 615,000 - - 615,000 Interest and debt service costs 378,891 450,046 - 828,937 Total Expenditures 1,167,052 873,575 3,601,145 5,641,772 Excess (Deficiency) of Revenues Over (Under) Expenditures 885,430 (248,010) (53,437) 583,983 OTHER FINANCING SOURCES (USES) Transfers out (300,000) - - (300,000) Debt Debt issued - 4,990,000 - 4,990,000 Premium on Debt - 338,863 - 338,863 Total Other Financing Sources (Uses)(300,000) 5,328,863 - 5,028,863 Net Changes in Fund Balances (Deficit)585,430 5,080,853 (53,437) 5,612,846 Fund Balances (Deficit)-January 1 (168,519) (4,344,678) 55,128 (4,458,069) Fund Balances-December 31 416,911$ 736,175$ 1,691$ 1,154,777$ 140 City of Fort Collins Comprehensive Annual Financial Report URBAN RENEWAL AUTHORITY - NORTH COLLEGE DISTRICT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Original Final Actual Budget Budget Variance REVENUES Programs Taxes 1,989,781$ 1,799,193$ 1,799,193$ 190,588$ Earnings (loss) on investments 62,701 21,717 21,717 40,984 Total Revenues 2,052,482 1,820,910 1,820,910 231,572 EXPENDITURES Programs (fund level of budgetary control) Capital Outlay - - - - Debt & Other Uses 993,891 1,222,258 1,222,258 228,367 Other Purchased Services 40,101 11,790 11,790 (28,311) Personnel Costs 224,802 302,542 302,542 77,740 Purchased Prof & Tech Services (98,889) 172,221 208,065 306,954 Purchased Property Services - 183,211 183,211 183,211 Supplies 7,147 7,100 7,100 (47) Transfers 300,000 300,000 300,000 - Total Expenditures 1,467,052 2,199,122 2,234,966 767,914 Excess (deficiency) of revenues over (under) expenditures 585,430 (378,212)$ (414,056)$ 999,486$ Fund Balances--January 1 (168,519) Fund Balances--December 31 416,911$ City of Fort Collins Comprehensive Annual Financial Report 141 URBAN RENEWAL AUTHORITY - PROSPECT SOUTH TIF DISTRICT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Original Final Actual Budget Budget Variance REVENUES Programs Taxes 603,023$ 518,118$ 518,118$ 84,905$ Earnings on investments 22,542 15,316 15,316 7,226 Proceeds from issuance of long-term debt 5,328,863 - - - Total Revenues 5,954,428 533,434 533,434 92,131 EXPENDITURES Programs (fund level of budgetary control) Debt & Other Uses 5,170,157 415,523 439,234 (4,730,923) Purchased Prof & Tech Services 411,767 2,079 238,236 (173,531) Purchased Property Services 11,762 11,762 11,762 - Total Expenditures 5,593,686 429,364 689,232 (4,904,454) Excess (deficiency) of revenues over (under) expenditures 360,742 104,070$ (155,798)$ (4,812,323)$ RECONCILIATION TO GAAP BASIS Principal Reduction--Advances 4,720,111 Total Reconciling Items 4,720,111 Net Change in Fund Balances 5,080,853 Fund Balances (Deficit)--January 1 (4,344,678) Fund Balances (Deficit)--December 31 736,175$ 142 City of Fort Collins Comprehensive Annual Financial Report URBAN RENEWAL AUTHORITY - FOOTHILLS MALL DISTRICT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Original Final Actual Budget Budget Variance REVENUES Programs Taxes 3,537,625$ 3,239,191$ 3,239,191$ 298,434$ Earnings (loss) on investments 10,083 - - 10,083 Total Revenues 3,547,708 3,239,191 3,239,191 308,517 EXPENDITURES Programs Purchased Prof & Tech Services 145,493 64,516 148,599 3,106 Purchased Property Services 3,455,652 3,174,675 3,538,486 82,834 Total Expenditures 3,601,145 3,239,191 3,687,085 85,940 Excess (deficiency) of revenues over (under) expenditures (53,437) -$ (447,894)$ 394,457$ Fund Balances (Deficit)--January 1 55,128 Fund Balances (Deficit)--December 31 1,691$ City of Fort Collins Comprehensive Annual Financial Report 143 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. 144 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, 2019 Final Actual Budget Variance REVENUES Programs Miscellaneous revenue (2,542,191)$ -$ (2,542,191)$ Transfers 11,697,302 16,403 11,680,899 Projects Earnings on investments 5,935,297 5,833,541 101,756 Fees and charges for services 49,575 38,950 10,625 Intergovernmental 93,443,027 97,803,282 (4,360,255) Miscellaneous revenue 11,252,194 8,392,995 2,859,199 Proceeds from issuance of long-term debt 9,529,503 9,535,000 (5,497) Transfers 108,917,197 148,100,983 (39,183,786) Total Revenues 238,281,904 269,721,154 (31,439,250) EXPENDITURES Programs Transfers 101,403 101,403 - Projects Arthur Ditch M.P/Alt analysis 139,303 185,000 45,697 Block 32 redevelopment 320,579 439,000 118,421 BOB pedestrian plan/ADA improvement 2,011,952 2,011,976 24 BOB-intersection improvement and traffic sign 2,395,712 2,745,427 349,715 City bridge program 3,603,156 4,266,219 663,063 Downtown Poudre river improvement 1,424,487 1,482,509 58,022 Env Site Mitig-112 E Willow 183,019 200,000 16,981 EPIC pool improvements 1,757,529 1,839,000 81,471 Gardens capital project 2,863,962 2,858,394 (5,568) I-25 interchange design project 79,230 100,000 20,770 Integrated recycling facility 1,593,574 1,685,000 91,426 Lemay/Vine railroad crossing 3,092,445 12,004,839 8,912,394 Linden Street-Walnut/Jefferson 189,531 300,000 110,469 Mason Street transportation corridor 85,311,126 88,853,001 3,541,875 N College Improv-Vine/Conifer 1,057,113 1,057,113 - North College improvement-Conifer/Willox 10,512,165 10,676,864 164,699 Northeast community park 1,973,700 3,610,000 1,636,300 Oak Street public restroom replacement 347,711 350,000 2,289 Prospect/College intersection improvement 2,679,517 2,700,000 20,483 Remington greenway implementation 150,000 150,000 - Remington Greenway Implement.442,475 450,000 7,525 Southeast community park 16,221,624 16,221,624 - Traffic calming - capital 364,050 500,000 135,950 (Continued on Next Page) City of Fort Collins Comprehensive Annual Financial Report 145 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, 2015 Final Actual Budget Variance Willow Street river district enhancements 310,514$ 372,985$ 62,471$ CCIP pedestrian/ADA 3,006,927 3,095,297 88,370 BOB-park improvements 559,162 1,703,622 1,144,460 Fossil Creek trail-College/Shields 1,000,000 1,000,000 - Expansion of shop 2,565,671 2,870,000 304,329 Sharp point connection 1,175,223 1,250,000 74,777 CCIP arterial intersection improvement 6,110,793 7,078,413 967,620 CCIP bike/pedestrian crossing 437,143 3,500,000 3,062,857 Parking structure 8,424,503 8,430,000 5,497 BOB-Timberline Road improvement-Drake/Prospect 4,932,937 5,087,102 154,165 BOB-bicycle plan implementation 1,313,125 1,373,000 59,875 Grandview mausoleum section 2 462,873 500,000 37,127 Suniga Impvmts-College/Blondel 2,661,561 3,459,444 797,883 Riverside Bridge Rplcmt.2,451,123 2,456,223 5,100 Longview Trail/Xcel 1,013,808 1,013,808 - Eastside Parks Improvements 20,665 50,000 29,335 Harmony/StraussCabin Intersect 611,253 899,760 288,507 S Timberline/Stetson/Trilby 52,957 2,849,496 2,796,539 Bicycle Infrastructure Improve 1,056,159 1,350,000 293,841 Railroad Crossing Replacement 1,335,754 1,419,903 84,149 Street Oversizing Project 6,501,844 7,056,397 554,553 CCIP City Park Train 203,796 350,000 146,204 CCIP Poudre Kayak Park 7,531,095 7,724,287 193,192 CCIP Nature in the City 586,761 767,270 180,509 CCIP Bus Stop Improvment 392,721 2,094,934 1,702,213 CCIP Lincoln Avenue Bridge 5,228,221 5,541,000 312,779 CCIP Garden's Visitor Center 2,599,931 2,791,715 191,784 Downtown Intersection Renvtn 1,289,758 1,482,520 192,762 Poudre River Plan Reach 4 - 125,000 125,000 The Garden of Eatin'140,305 200,000 59,695 CCIP Lincoln St. Renovation 67,205 563,000 495,795 CCIP Willow Street Improvment 2,378,127 3,911,803 1,533,676 CCIP Transfor Bus Replacment - 500,000 500,000 Major Reprs & Maint-Capital 6,680 6,681 1 Major Bldg Maintenance 37,072 37,072 - College & Trilby Intersections 22,782 600,000 577,218 Harmony/Power Trail Grade Sep 8,766 400,000 391,234 N Mason St 37,503 537,961 500,458 Pedestrian Plan (BCC) 461,927 461,927 - N.College PedestrianConnection 1,825,451 2,362,414 536,963 Prospect Rd/Sharp Pt/I-25 181,391 2,000,000 1,818,609 Prospect Rd. & I-25 6,031,651 19,202,484 13,170,833 Drake Rd Improvements 1,452,612 1,465,189 12,577 Timberline & Prspct Intersctn 860,886 1,119,718 258,832 Minor Street Capital Projects 125,306 127,347 2,041 Rec Trails W of Taft Hill 17,998 21,000 3,002 East Community Park 2,519,700 3,100,000 580,300 Total Expenditures 218,827,003 244,060,403 25,233,400 Excess (deficiency) of revenues over (under) expenditures 19,454,901 25,660,751$ (6,205,850)$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 192,373,902 Prior Years' Project Revenues (199,089,524) Total Reconciling Items (6,715,622) Net Change in Fund Balances 12,739,279 Fund Balances--January 1 12,000,550 Fund Balances--December 31 24,739,829$ 146 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK City of Fort Collins Comprehensive Annual Financial Report 147 blank ENTERPRISE FUNDS INDIVIDUAL FUND BUDGET SCHEDULES Electric and Telecommunications -- to account for operation of the City's electric and telecommunications 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. 148 City of Fort Collins Comprehensive Annual Financial Report ELECTRIC AND TELECOMMUNICATIONS FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 4,419,673$ 589,686$ 3,829,987$ Fees and charges for services 135,142,673 135,960,600 (817,927) Intergovernmental 193,858 - 193,858 Miscellaneous revenue 5,317,962 4,903,650 414,312 Sale of capital assets 95,018 - 95,018 Projects Miscellaneous revenue 594,575 753,515 (158,940) Total Revenues 145,763,759 142,207,451 3,556,308 EXPENSES Programs (fund level of budgetary control) L&P Energy Services 4,762,371 7,484,783 2,722,412 L&P Payments and Transfers 16,487,078 17,199,780 712,702 L&P Purchase of Power 94,923,838 97,869,300 2,945,462 L&P System Additions 4,564,438 6,257,884 1,693,446 Light & Power Operations 9,700,037 10,398,489 698,452 Telecommunications Programs 1,888,773 3,928,577 2,039,804 Projects (project level of budgetary control) Art in Public Places 634,704 1,708,363 1,073,659 Service Center-L&P Parent 1,737,419 1,907,453 170,034 Substation Cap Proj 2,530,332 2,882,616 352,284 SW Enclave Sys Purchases 77,463 1,230,878 1,153,415 Underground Conversion 217,859 1,478,157 1,260,298 New Capacity-Duct Banks 370,982 903,642 532,660 Substation Cap Prj - Parent - 1,359,611 1,359,611 New Capacity - Circuits 2,317,313 4,098,103 1,780,790 Dist. System Impr. & Replace 1,841,738 2,795,495 953,757 Operational Technology 1,640,996 2,580,000 939,004 CMMS–Maintenance Management 684,047 1,079,129 395,082 800 MHz Radio System - - - Integrated Util Services Grant 79,887 125,000 45,113 CIS Upgrade/Repl - L&P Parent 2,434,215 3,314,506 880,291 Telecommunications Projects 34,356,875 117,565,154 83,208,279 Total Expenses 181,250,365 286,166,920 104,916,555 Excess (deficiency) of revenues over (under) expenses before reconciling items (35,486,606) (143,959,469)$ 108,472,863$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 15,632,339 Prior Years' Project Revenues (594,575) Capital Outlay--Programs 4,074,159 Current Year's Project Expenses 27,460,448 Principal Reduction--Long-term Debt 24,236 Depreciation (11,675,416) Bond Amortization 546,828 Total Reconciling Items 35,468,019 Change in net position (18,587) Net Position--January 1 205,865,207 Net Position--December 31 205,846,620$ City of Fort Collins Comprehensive Annual Financial Report 149 WATER FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 2,464,204$ 1,086,154$ 1,378,050$ Fees and charges for services 31,659,641 29,980,000 1,679,641 Intergovernmental 6,454 - 6,454 Miscellaneous revenue 2,385,416 2,660,000 (274,584) Sale of capital assets 34,006 150,000 (115,994) Transfers 333,000 333,000 - Projects - - Intergovernmental - 70,000 (70,000) Miscellaneous revenue 108,000 450,000 (342,000) Total Revenues 36,990,721 34,729,154 2,261,567 EXPENSES Programs (fund level of budgetary control) Water Meter Operations 731,864 771,345 39,481 Water Minor Capital 900,556 1,839,685 939,129 Water Payments and Transfers 9,447,573 9,765,347 317,774 Water Production 5,297,418 5,820,263 522,845 Water Quality 1,071,659 1,142,664 71,005 Water Resources 2,740,568 3,328,699 588,131 Water Trans & Distribution 3,139,047 3,358,313 219,266 Projects (project level of budgetary control) Art in Public Places 647,428 1,433,552 786,124 CMMS–Maintenance Management 1,204,518 1,680,879 476,361 Distribution Sys Replcmnts 5,181,359 5,614,146 432,787 Gravel Pit Storage Ponds 11,555,796 11,569,369 13,573 Halligan Res Enlargement Proj 18,240,938 37,377,446 19,136,508 High Park Fire 45,000 342,688 297,688 Treatment Facility Improv 768,588 828,952 60,364 Water Meter Replace & Rehab 1,063,875 2,613,674 1,549,799 Water Prod Replcmnt Prgm 2,800,804 3,946,880 1,146,076 Water Supply Development 127,013 1,088,399 961,386 Wtr Cathodic Protection 306,325 312,663 6,338 Wtr Svc Ctr Improvements 2,496,419 2,675,714 179,295 Hoffman Mill Property Purchase 121,941 125,000 3,059 Chlorine Contact Basin 9,996,984 10,720,000 723,016 Watershed Protection 138,613 240,000 101,387 2017-Water Quality Lab Rehab 712,553 2,600,000 1,887,447 2017-Water Quality Master Plan 102,786 110,000 7,214 2017-Undergrnd Elec Pow Supply - 1,300,000 1,300,000 2017-Poudre Canyon Water Line 783,049 800,000 16,951 PARENT-Distro Small Projects - 83,413 83,413 CIS Upgrade/Repl - Wtr Parent 1,628,702 2,226,934 598,232 2018-Sherwood St WM Replace 447,712 559,000 111,288 2018-AB Cathodic Protection 1,384,088 2,280,000 895,912 2018-Hickory Street WMR 464,869 627,000 162,131 PARENT-Water Qual Cap Replace - 150,000 150,000 2019-New Pollution/Water Lab 189,691 500,000 310,309 Water Efficiency Grants - 70,000 70,000 2019 - Gravity Thickener 61,668 575,000 513,332 2019-Enviro Learn Center Dam 17,826 500,000 482,174 2019-HAWS Hansen Canal Pump 4,841 3,200,000 3,195,159 2019-HAWS Greeley Interconnect 7,140 - (7,140) Total Expenses 83,829,211 122,177,025 38,347,814 Excess (deficiency) of revenues over (under) expenses before reconciling items (46,838,490) (87,447,871)$ 40,609,381$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 52,876,868 Prior Years' Project Revenues (108,000) Capital Outlay--Programs 263,882 Current Year's Project Expenses 6,671,649 Principal Reduction--Long-term Debt 306,924 Proceeds From Advances (133,342) Depreciation (7,392,558) Bond Amortization 1,216 Total Reconciling Items 52,619,985 Change in net position 5,781,495 Net Position--January 1 327,150,584 Net Position--December 31 332,932,079$ 150 City of Fort Collins Comprehensive Annual Financial Report WASTEWATER FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 23,887,186$ 24,010,000$ (122,814)$ Fines and forefeitures 1,100 - 1,100 Earnings on investments 1,476,591 798,967 677,624 Miscellaneous revenue 706,967 1,420,000 (713,033) Sale of capital assets (67,677) - (67,677) Total Revenues 26,004,167 26,228,967 (224,800) EXPENSES Programs (fund level of budgetary control) WW Minor Capital 850,077 922,260 72,183 WW Payments and Transfers 7,304,881 8,615,972 1,311,091 WW Trunk and Collection 1,733,293 1,778,653 45,360 WW Water Quality 1,121,551 1,244,232 122,681 WW Water Reclamation 5,755,866 5,966,935 211,069 Projects (project level of budgetary control) Art in Public Places 434,221 988,631 554,410 CMMS–Maintenance Management 1,049,089 1,240,380 191,291 DWRF CIP Summary 872,351 4,727,500 3,855,149 MWRF Improvements - 11,254 11,254 North College Sewer 555,778 729,256 173,478 Sludge Disposal Improv 18,762 384,509 365,747 Wtr Reclam Replcmnt Prgm 1,354,463 3,058,049 1,703,586 WW Collection Sys Replcmnt 2,493,510 4,071,206 1,577,696 WW Svc Ctr Improvements 25,658 353,132 327,474 Hoffman Mill Property Purchase 73,262 75,000 1,738 UV Disinfection System 5,888,123 5,900,000 11,877 2017-Dewatering Improvements 4,033,299 4,270,000 236,701 2017-Sludge Strain Press 1,414,330 1,520,000 105,670 2017-Inflow/Infiltration Study - 200,000 200,000 2017-Water Rec&Bio Master Plan 496,573 500,000 3,427 PARENT-Collect Small Projects - 583,596 583,596 PARENT-Cured In Place Pipe - 53,177 53,177 CIS Upgrd/Repl - Wstwtr Parent 1,178,407 1,605,464 427,057 2018-Digester Lid 612 1,744,721 2,100,000 355,279 2018-Sidestream Treatment 1,604,867 5,400,000 3,795,133 2018-City Park WWM Replace 35,075 200,000 164,925 2019-SW Drake Levee 7,702 51,500 43,798 2019-Remington St WWMR - 293,550 293,550 2019-New Pollution/Water Lab 191,173 500,000 308,827 2019-DWRF Carbon Add Phase 1 247,929 1,700,000 1,452,071 2019-Polution Contr Lab Repair - 225,000 225,000 2019-Maple & Pearl WWMR 32,436 587,000 554,564 2019-North College WW Improv 42,128 206,000 163,872 2019-21" Stover SMR Spring Crk 25,329 650,000 624,671 PARENT-DWRF Improvement CIP - 552,820 552,820 Total Expenses 40,584,854 61,265,076 20,680,222 Excess (deficiency) of revenues over (under) expenses before reconciling items (14,580,687) (35,036,109)$ 20,455,422$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 17,648,581 Capital Outlay--Programs 612,471 Current Year's Project Expenses 6,159,509 Principal Reduction--Long-term Debt 1,905,000 Depreciation (6,266,408) Bond Amortization 119,261 Total Reconciling Items 20,178,414 Change in net position 5,597,727 Net Position--January 1 184,500,468 Net Position--December 31 190,098,195$ City of Fort Collins Comprehensive Annual Financial Report 151 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 770,408$ 438,325$ 332,083$ Fees and charges for services 17,441,127 17,170,000 271,127 Licenses and permits 19,650 - 19,650 Miscellaneous revenue 738,858 690,000 48,858 Sale of capital assets 1,865 - 1,865 Projects Intergovernmental 4,647,117 5,122,156 (475,039) Total Revenues 23,619,025 23,420,481 198,544 EXPENSES Programs (fund level of budgetary control) Stormwater Minor Capital 191,632 367,048 175,416 Stormwater Operations 3,888,937 4,192,553 303,616 SW Payments and Transfers 6,963,979 7,711,160 747,181 Projects (project level of budgetary control) Art in Public Places 304,204 518,860 214,656 CMMS–Maintenance Management 973,460 997,879 24,419 Flood Mapping/Stream Gagin 515,321 550,918 35,597 Spring Crk Basin Improv 116,667 119,550 2,883 SW Basin Improvements 26,558,587 30,491,801 3,933,214 SW Developer Repays 297,611 380,027 82,416 SW Master Planning 438,153 482,450 44,297 Util Ser Cntr Add/Remodel 25,658 241,894 216,236 Stormwater Basin Improvements - 137,836 137,836 2017-Remington St Storm Sewer 435,556 712,000 276,444 2017-Magnolia St Outfall Ph 1 621,454 1,500,000 878,546 CIS Upgrd/Repl - Stmwtr Parent 1,060,981 1,450,097 389,116 2018-Mail Crk; Palmer-Passway 689,311 1,400,000 710,689 Master Planning - 228,981 228,981 2019-1337 W. Vine Drive Land 238,800 255,000 16,200 2019-Timberline Levee @Nix Imp 19,939 103,000 83,061 2019 - N Mason Area Drainage 123,356 267,800 144,444 2019-Flood Warning Sys Upgrade - 100,000 100,000 Total Expenses 43,463,606 52,208,854 8,745,248 Excess (deficiency) of revenues over (under) expenses before reconciling items (19,844,581) (28,788,373)$ 8,943,792$ RECONCILIATION TO GAAP BASIS Prior Years' Project Expenses 25,348,997 Prior Years' Project Revenues (4,647,117) Capital Outlay--Programs 410,855 Current Year's Project Expenses 7,068,386 Principal Reduction--Long-term Debt 2,986,495 Depreciation (2,960,096) Bond Amortization (60,053) Total Reconciling Items 28,147,467 Change in net position 8,302,886 Net Position--January 1 143,829,332 Net Position--December 31 152,132,218$ 152 City of Fort Collins Comprehensive Annual Financial Report GOLF FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 3,454,944$ 3,583,000$ (128,056)$ Earnings (loss) on investments 46,360 22,411 23,949 Miscellaneous revenue 46,868 48,000 (1,132) Sale of Capital Assets 6,761 - 6,761 Projects Transfers 125,000 125,000 - Total Revenues 3,679,933 3,778,411 (98,478) EXPENSES Programs (fund level of budgetary control) Capital Outlay 43,850 38,100 (5,750) Debt and Other Uses 502,853 489,591 (13,262) Other - 99,958 99,958 Other Purchased Services 201,399 203,200 1,801 Personnel Costs 1,293,165 1,471,274 178,109 Purchased Prof and Tech Services 483,768 535,919 52,151 Purchased Property Services 388,698 356,464 (32,234) Supplies 379,913 397,697 17,784 Transfers 68,600 68,600 - Projects (project level of budgetary control) Purchased Prof & Tech Services - 125,000 125,000 Total Expenses 3,362,246 3,785,803 423,557 Excess (deficiency) of revenues over (under) expenses before reconciling items 317,687 (7,392)$ 325,079$ RECONCILIATION TO GAAP BASIS Current Year's Project Expenses 53,799 Principal Reduction--Long-term Debt 472,590 Depreciation (349,193) Bond Amortization - Total Reconciling Items 177,196 Change in net position 494,883 Net Position--January 1 6,344,948 Net Position--December 31 6,839,831$ City of Fort Collins Comprehensive Annual Financial Report 153 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. 154 City of Fort Collins Comprehensive Annual Financial Report INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION DECEMBER 31, 2019 Data and Equipment Self Insurance Communications ASSETS Current Assets Cash and cash equivalents 676,197$ 3,722,201$ 446,657$ Investments 4,999,934 3,261,274 3,522,741 Receivables Accounts - 33,158 7,037 Interest 24,235 20,020 17,073 Prepaid item - 473,854 - Due from other funds - - - Due from other governments 255,678 - - Inventories of materials and supplies 685,098 - - Total Current Assets 6,641,142 7,510,507 3,993,508 Noncurrent Assets Restricted - cash and cash equivalents 1,863,906 - - Land, water rights, other 30,126 - - Buildings, improvements and equipment 23,087,161 - 4,863,515 Accumulated depreciation (11,940,655) - (4,143,134) Construction in progress 1,017,784 - - Total Noncurrent Assets 14,058,322 - 720,381 Total Assets 20,699,464 7,510,507 4,713,889 LIABILITIES Current Liabilities Accounts payable 504,112 578,420 274,609 Interest payable 33,941 - - Wages payable 158,668 34,109 205,965 Compensated absences 157,713 36,307 442,856 Claims payable - 2,034,133 - Due to other funds - - 12,760 Capital lease obligations 2,717,936 - - Total Current Liabilities 3,572,370 2,682,969 936,190 Noncurrent Liabilities Postemployment benefits 548,595 - 306,222 Claims payable - 3,073,267 - Capital lease obligations 4,666,436 - - Total Noncurrent Liabilities 5,215,031 3,073,267 306,222 Total Liabilities 8,787,401 5,756,236 1,242,412 DEFERRED INFLOWS OF RESOURCES Other pension related items 139,233 - 77,719 NET POSITION Net investment in capital assets 6,673,951 - 720,380 Restricted: fiscal agent 1,863,906 - - Unrestricted 3,234,973 1,754,271 2,673,378 Total Net Position 11,772,830$ 1,754,271$ 3,393,758$ City of Fort Collins Comprehensive Annual Financial Report 155 Utility Customer Benefits S ervice and Admin.Total 2,550,028$ 1,043,125$ 8,438,208$ 15,402,385 1,133,706 28,320,040 - 19,768 - 59,963 74,643 5,482 141,453 - - 473,854 - 77,900 77,900 - - 255,678 - - 685,098 18,046,824 2,260,213 38,452,194 - - 1,863,906 - - 30,126 - 3,898,908 31,849,584 - (3,443,980) (19,527,769) - - 1,017,784 - 454,928 15,233,631 18,046,824 2,715,141 53,685,825 498,589 197,664 2,053,394 - - 33,941 37,373 441,775 877,890 27,832 356,779 1,021,487 2,155,200 - 4,189,333 - - 12,760 - - 2,717,936 2,718,994 996,218 10,906,741 96,500 1,261,327 2,212,644 - - 3,073,267 - - 4,666,436 96,500 1,261,327 9,952,347 2,815,494 2,257,545 20,859,088 24,491 320,121 561,564 - 454,928 7,849,259 - - 1,863,906 15,206,839 (317,453) 22,552,008 15,206,839$ 137,475$ 32,265,173$ 156 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, 2019 Data and Equipment Self Insurance Communications OPERATING REVENUES Charges for services 9,016,316$ 3,057,461$ 1,922,518$ Other revenue 3,419,313 423,300 - Total Operating Revenues 12,435,629 3,480,761 1,922,518 OPERATING EXPENSES Personal services 3,341,863 762,895 5,372,301 Contractual services 2,441,210 5,770,910 3,223,996 Commodities 2,417,672 128,231 827,036 Other 611,891 - 177,631 Depreciation 1,849,387 - 181,910 Total Operating Expenses 10,662,023 6,662,036 9,782,874 Operating Income (Loss)1,773,606 (3,181,275) (7,860,356) NONOPERATING REVENUES (EXPENSES) Earnings on investments 163,596 174,983 133,530 Intergovernmental 26,285 - - Gain (loss) on sale of capital assets 103,442 - - Interest expense (208,381) - (872) Total Nonoperating Revenues (Expenses)84,942 174,983 132,658 Income (Loss) Before Transfers 1,858,548 (3,006,292) (7,727,698) Capital contributions 167,760 - - Transfers in - 2,340,652 7,784,839 Transfers out (174,704) (294,434) (239,704) Change in Net Position 1,851,604 (960,074) (182,563) Net Position--January 1 9,921,226 2,714,345 3,576,321 Net Position--December 31 11,772,830$ 1,754,271$ 3,393,758$ City of Fort Collins Comprehensive Annual Financial Report 157 Utility Customer Benefits Service and Admin.Total 33,793,690$ 14,738,059$ 62,528,044$ 40,000 1,310,126 5,192,739 33,833,690 16,048,185 67,720,783 1,001,417 9,569,553 20,048,029 29,660,310 4,431,958 45,528,384 15,913 265,840 3,654,692 - 102,269 891,791 - 153,772 2,185,069 30,677,640 14,523,392 72,307,965 3,156,050 1,524,793 (4,587,182) 509,840 106,308 1,088,257 - - 26,285 - 27,051 130,493 - - (209,253) 509,840 133,359 1,035,782 3,665,890 1,658,152 (3,551,400) - - 167,760 - 383,115 10,508,606 - (2,109,941) (2,818,783) 3,665,890 (68,674) 4,306,183 11,540,949 206,149 27,958,990 15,206,839$ 137,475$ 32,265,173$ 158 City of Fort Collins Comprehensive Annual Financial Report INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019 Data and Equipment Self Insurance Communications CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided 9,685,978$ 3,024,303$ 1,949,692$ Cash paid to employees for services (3,467,703) (758,385) (5,476,545) Cash paid to suppliers of goods and services (5,346,850) (5,046,637) (4,272,640) Payments for interfund services used - - 12,760 Other receipts 3,419,313 423,300 - Net cash provided (used) by operating activities 4,290,738 (2,357,419) (7,786,733) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds - 2,340,652 7,784,839 Transfers to other funds (174,704) (294,434) (239,704) Net cash provided (used) by noncapital financing activities (174,704) 2,046,218 7,545,135 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital debt 3,123,743 - - Capital contributions 167,760 - - Purchases of capital assets (557,415) - (267,964) Principal paid on capital debt (3,019,966) - (78,734) Interest paid on capital debt (203,369) - (966) Proceeds from sales of capital assets (2,632,514) - - Grant proceeds from federal government 121,405 - - Net cash (used) by capital and related financing activities (3,000,356) - (347,664) CASH FLOWS FROM INVESTING ACTIVITIES (Increase)/decrease in pooled investments (293,416) 143,009 434,116 Earnings received on investments 159,330 175,577 133,217 Net cash provided (used) by investing activities (134,086) 318,586 567,333 Net increase (decrease) in cash and cash equivalents 981,592 7,385 (21,929) Cash and cash equivalents, January 1 1,558,511 3,714,816 468,586 Cash and cash equivalents, December 31 2,540,103$ 3,722,201$ 446,657$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)1,773,606$ (3,181,275)$ (7,860,356)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense 1,849,387 - 181,910 (Increase) decrease in accounts receivable 669,662 (33,158) 27,174 (Increase) in inventories (15,063) - - (Increase) decrease in prepaid item - (123,722) - (Increase) decrease in pension-related items 243,213 - 135,761 Increase (decrease) in accounts payable 138,986 364,175 (43,977) Increase (decrease) in compensated absences payable 22,936 7,696 7,461 Increase (decrease) in post-employment obligation (412,052) - (230,006) Increase in wages payable 20,063 (3,186) (17,460) Increase (decrease) in claims payable - 612,051 - (Decrease) in unearned revenue - - 12,760 Net cash provided (used) by operating activities 4,290,738$ (2,357,419)$ (7,786,733)$ Noncash investing, capital, and financing activities: Unrealized gain/(loss) on pooled investments 71,348 48,107 58,514 Reconciliation of cash and cash equivalents to statement of net position: Cash and cash equivalents 676,197 3,722,201 446,657 Restricted Assets - cash and cash equivalents 1,863,906 - - 2,540,103$ 3,722,201$ 446,657$ City of Fort Collins Comprehensive Annual Financial Report 159 Utility Customer Benefits Service and Admin.Total 33,787,891$ 14,738,059$ 63,185,923$ (1,040,611) (9,917,003) (20,660,247) (29,958,168) (4,856,525) (49,480,820) - (19,691) (6,931) 40,000 1,310,126 5,192,739 2,829,112 1,254,966 (1,769,336) - 383,115 10,508,606 - (2,109,941) (2,818,783) - (1,726,826) 7,689,823 - - 3,123,743 - - 167,760 - 27,773 (797,606) - - (3,098,700) - - (204,335) - (93,975) (2,726,489) - - 121,405 - (66,202) (3,414,222) (2,824,308) 773,296 (1,767,303) 488,804 114,390 1,071,318 (2,335,504) 887,686 (695,985) 493,608 349,624 1,810,280 2,056,420 693,501 8,491,834 2,550,028$ 1,043,125$ 10,302,114$ 3,156,050$ 1,524,793$ (4,587,182)$ - 153,772 2,185,069 (5,799) - 657,879 - - (15,063) - - (123,722) 42,781 559,197 980,952 (92,345) (56,458) 310,381 (11,714) (2,770) 23,609 (72,482) (947,387) (1,661,927) 2,221 43,510 45,148 (189,600) - 422,451 - (19,691) (6,931) 2,829,112$ 1,254,966$ (1,769,336)$ 195,870 63,431 437,270 2,550,028 1,043,125 8,438,208 - - 1,863,906 2,550,028$ 1,043,125$ 10,302,114$ 160 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, 2019 Final Actual Budget Variance REVENUES Fees and charges for services 9,016,316$ 10,908,000$ (1,891,684)$ Earnings (loss) on investments 163,596 84,381 79,215 Miscellaneous revenue 3,522,755 3,121,767 400,988 Sale of capital assets - 76,000 (76,000) Intergovernmental 951,300 731,941 219,359 Total Revenues 13,653,967 14,922,089 (1,268,122) EXPENSES Programs (fund level of budgetary control) Compressed natural gas site 410,518 350,000 (60,518) Equipment shop 2,946,795 3,760,087 813,292 Fleet fuel 1,943,572 3,261,170 1,317,598 Fleet pool rental 193,190 489,004 295,814 Fleet support services 464,216 566,128 101,912 Fleet warehouse 75,038 73,017 (2,021) General fund equipment replacement 73,099 73,226 127 Parks, forestry, horticulture vehicle replacement 746,986 732,770 (14,216) Police equipment replacement 1,220,448 1,140,675 (79,773) Streets shop 903,707 1,067,397 163,690 Transfort shop 2,349,714 2,508,520 158,806 PDT vehicle replacement 1,332,502 1,338,389 5,887 Equipment Transfers 113,317 113,317 - Projects (project level of budgetary control) Fleet services energy grants 1,014,613 751,326 (263,287) Total Expenses 13,787,715 16,225,026 2,437,311 Excess (deficiency) of revenues over (under) expenses before reconciling items (133,748) (1,302,937)$ 1,169,189$ RECONCILIATION TO GAAP BASIS Prior years' project expenses Prior years' project revenues 813,997 Capital outlay--programs (757,255) Current year's project expenses 557,414 Principal reduction--long-term debt 200,617 Payment to Escrow Agent 3,019,966 Bond Amortization (1,849,387) Total Reconciling Items 1,985,352 Change in net position 1,851,604 Net Position--January 1 9,921,226 Net Position--December 31 11,772,830$ City of Fort Collins Comprehensive Annual Financial Report 161 SELF INSURANCE FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 3,057,461$ 2,858,571$ 198,890$ Earnings (loss) on investments 174,983 - 174,983 Miscellaneous revenue 423,302 - 423,302 Transfers 2,340,652 2,340,652 - Total Revenues 5,996,398 5,199,223 797,175 EXPENSES Programs (fund level of budgetary control) Risk management 6,344,421 5,592,391 (752,030) Total Expenses 6,344,421 5,592,391 (752,030) Excess (deficiency) of revenues over (under) expenses before reconciling items (348,023) (393,168)$ 45,145$ Actuarial change (612,051) Change in net position (960,074) Net Position--January 1 2,714,345 Net Position--December 31 1,754,271$ 162 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, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 1,922,611$ 2,145,681$ (223,070)$ Earnings (loss) on investments 133,530 92,874 40,656 Transfers 7,784,839 7,779,608 5,231 Total Revenues 9,840,980 10,018,163 (177,183) EXPENSES Programs (fund level of budgetary control) Application services 388,338 367,912 (20,426) Data management services 936,749 991,961 55,212 Dev tracking system 328,038 320,946 (7,092) E-Government services 633,966 642,682 8,716 E-Mail services 70,041 106,243 36,202 Enterprise document management services 512,525 703,431 190,906 ERP services 1,033,323 1,119,314 85,991 Geographic informational services 598,501 606,181 7,680 Infra equipment replacement 1,278,862 1,570,375 291,513 IT administration 649,215 663,921 14,706 IT client services 1,812,733 1,632,888 (179,845) Network services 1,031,195 1,224,807 193,612 Non-enterprise equipment and support 18,328 448,784 430,456 Voice services 588,622 888,673 300,051 Cybersecurity and Prevention 68,191 209,300 141,109 Data & Communication Transfers 239,704 239,704 - Total Expenses 10,188,331 11,737,122 1,548,791 Excess (deficiency) of revenues over (under) expenses before reconciling items (347,351) (1,718,959)$ 1,371,608$ RECONCILIATION TO GAAP BASIS Principal reduction--long-term debt 267,964 Payment to Escrow Agent 78,734 Bond Amortization (181,910) Total Reconciling Items 164,788 Change in net position (182,563) Net Position--January 1 3,576,321 Net Position--December 31 3,393,758$ City of Fort Collins Comprehensive Annual Financial Report 163 BENEFITS FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 33,793,690$ 34,740,193$ (946,503)$ Earnings (loss) on investments 509,840 165,473 344,367 Miscellaneous revenue 40,000 40,000 - Total Revenues 34,343,530 34,945,666 (602,136) EXPENSES Programs (fund level of budgetary control) Benefits 30,867,240 34,948,935 4,081,695 Total Expenses 30,867,240 34,948,935 4,081,695 Excess (deficiency) of revenues over (under) expenses before reconciling items 3,476,290 (3,269)$ 3,479,559$ RECONCILIATION TO GAAP BASIS Actuarial change 189,600 Total Reconciling Items 189,600 Change in net position 3,665,890 Net Position--January 1 11,540,949 Net Position--December 31 15,206,839$ 164 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, 2019 Final Actual Budget Variance REVENUES Programs Fees and charges for services 14,738,059$ 17,024,792$ (2,286,733)$ Earnings (loss) on investments 106,308 76,448 29,860 Miscellaneous revenue 1,310,126 1,160,000 150,126 Other financing sources 27,051 - 27,051 Transfers 383,115 383,115 - Total Revenues 16,564,659 18,644,355 (2,079,696) EXPENSES Programs (fund level of budgetary control) Electric field services 1,099,845 1,273,911 174,066 Safety and security 110,328 114,067 3,739 Utilities electric systems eng div 163,272 336,029 172,757 Utilities enviro regulatory affairs 870,574 902,502 31,928 Utilities customer connections 6,426,460 6,975,502 549,042 Utilities management 686,529 1,124,485 437,956 Utilities strategic planning 272,952 269,749 (3,203) Utility financial operations 1,753,934 2,604,316 850,382 Utility tech and cust service 5,188,920 5,629,772 440,852 Total Expenses 16,572,814 19,230,333 2,657,519 Excess (deficiency) of revenues over (under) expenses before reconciling items (8,155) (585,978)$ 577,823$ RECONCILIATION TO GAAP BASIS Current year's project expenses 93,253 Depreciation (153,772) Total Reconciling Items (60,519) Change in net position (68,674) Net Position--January 1 206,149 Net Position--December 31 137,475$ City of Fort Collins Comprehensive Annual Financial Report 165 FIDUCIARY FUNDS COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Pension and Other Employee Benefit Trust Funds: General Employees' Retirement Plan - to account for the general employees' retirement pension plan Closed to new hires as of 1/1/1999. Retirement Health Savings Plans - to account for employer-sponsored health benefit savings plans Old Plan - plan frozen as of December 31, 2017 New Plan - active plan known as the Collective Bargaining Unit RHS Plan Custodial Funds: Investment Pool Fund - to account for external portion of investment pool associated with Poudre Fire Authority Poudre River Public Library District Combined Regional Information Systems Project (CRISP) - to account for amounts paid by Larimer County and City of Loveland held by City for purchase of capital equipment for CRISP Poudre School District (PSD) - to account for collections of in- Lieu of Land Dedications for School Purposes held by the City on behalf of PSD Thompson School District (TSD) - to account for collections of in- Lieu of Land Dedications for School Purposes held by the City on behalf of TSD Larimer County - to account for collections of Use tax held by City on behalf of Larimer County State of Colorado - to account for collections of Sales tax held by City on behalf of State Poudre Fire Authority -- to account for cash held by the City on behalf of Poudre Fire Authority. Poudre River Public Library District -- to account for cash held by the City on behalf of Poudre River Public Library District. 166 City of Fort Collins Comprehensive Annual Financial Report GENERAL EMPLOYEES' RETIREMENT PLAN TRUST FUND SCHEDULE OF CHANGES IN NET POSITION HELD IN TRUST FOR P ENSION BENEFITS - ACTUAL AND BUDGET FOR THE YEAR ENDED DECEMBER 31, 2019 Actual Budget Variance ADDITIONS Contributions 1,472,169$ 1,525,000$ (52,831)$ Earnings on investments 280,543 221,309 59,234 Change in the fair value of investments 8,489,001 - 8,489,001 Total Additions 10,241,713 1,746,309 8,495,404 DEDUCTIONS Benefit payments 5,215,830 5,800,000 584,170 Administration 26,939 29,250 2,311 Total Deductions 5,242,769 5,829,250 586,481 Net Increase (Decrease) in Plan Net Position 4,998,944 (4,082,941)$ 9,081,885$ Net Position Held in Trust for Pension Benefits--January 1 43,058,938 Net Position Held in Trust for Pension Benefits--December 31 48,057,882$ City of Fort Collins Comprehensive Annual Financial Report 167 PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS COMBINING SCHEDULE OF ASSETS AND LIABILITIES DECEMBER 31, 2019 GERP OLD NEW Pension Retirement Health Retirement Health Trust Fund Savings Plan S avings Plan ASSETS Cash and cash equivalents 3,436,361$ -$ -$ 3,436,361$ Interest Receivable 69,902 - - 69,902 Investments, at fair value U S Government securities 10,723,459 - - 10,723,459 Corporate securities 1,148,955 - - 1,148,955 Bonds - mutual funds - 254,639 13,065 267,704 Mutual funds 32,679,376 4,297,916 3,357,826 40,335,118 Short terms investments - 156,355 90,041 246,396 Total Investments, at fair value 44,551,790 4,708,910 3,460,932 52,721,632 Total Assets 48,058,053 4,708,910 3,460,932 56,227,895 LIABILITIES Accounts payable and other liabilities 171 - - 171 NET POSITION Amounts held for pensions 48,057,882 - - 48,057,882 Amounts held for postemployment benefits other than pensions - 4,708,910 3,460,932 8,169,842 Total net position 48,057,882$ 4,708,910$ 3,460,932$ 56,227,724$ Total Pension (and Other Employee Benefit) Trust Funds 168 City of Fort Collins Comprehensive Annual Financial Report RETIREMENT HEALTH SAVINGS PLAN TRUST FUNDS SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2019 OLD NEW Retirement Health Retirement Health Savings Plan Savings Plan ADDITIONS Contributions Employer 100$ 396,557$ Employee 516 323,335 Investment earnings Change in the fair value of investments 765,028 545,692 Less investment costs 5,790 8,038 Net investment earnings 759,238 537,654 Total Additions 759,854 1,257,546 DEDUCTIONS Benefit payments 416,852 69,420 Total Deductions 416,852 69,420 Net Increase in Plan Net Position 343,002 1,188,126 Net Position Held in Trust for Other Employee Benefit Plan Benefits--January 1 4,365,908 2,272,806 Net Position Held in Trust for Other Employee Benefit Plan Benefits--December 31 4,708,910$ 3,460,932$ City of Fort Collins Comprehensive Annual Financial Report 169 CUSTODIAL FUNDS COMBINING SCHEDULE OF ASSETS AND LIABILITIES DECEMBER 31, 2019 Poudre River Combined Poudre Public Regional Information Poudre Thompson Total Fire Library Systems Project School School Larimer State of Custodial Authority District (CRISP) District District County Colorado Funds ASSETS Cash and cash equivalents 2,710,444$ 1,042,246$ 275,311$ 172,967$ 2,653$ 204,619$ 1,409$ 4,409,649$ Receivables Interest Receivable 97,956 39,500 - - - - - 137,456 Tax and other collections - - - 1,710 2,764 7,114 - 11,588 Total receivables 97,956 39,500 - 1,710 2,764 7,114 - 149,044 Investments, at fair value U S Government securities 17,719,991 7,146,866 - - - - - 24,866,857 Corporate securities 2,491,678 1,004,949 - - - - - 3,496,627 Total Investments, at fair value 20,211,669 8,151,815 - - - - - 28,363,484 Total Assets 23,020,069 9,233,561 275,311 174,677 5,417 211,733 1,409 32,922,177 LIABILITIES Amounts held for other governments - - - 174,677 5,417 211,733 1,409 393,236 Total Liabilities -$ -$ -$ 174,677$ 5,417$ 211,733$ 1,409$ 393,236$ 170 City of Fort Collins Comprehensive Annual Financial Report CUSTODIAL FUNDS SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2019 POUDRE FIRE AUTHORITY Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 2,094,324$ 616,120$ -$ 2,710,444$ Receivables - interest 71,983 25,973 - 97,956 Investments, at fair value US government securities 16,054,903 1,665,088 - 17,719,991 Corporate securities 958,381 1,533,297 - 2,491,678 Total Investments, at fair value 17,013,284 3,198,385 - 20,211,669 Total Assets 19,179,591 3,840,478 - 23,020,069 LIABILITIES Amounts held for other governments -$ -$ -$ -$ POUDRE RIVER PUBLIC LIBRARY DISTRICT Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 891,710$ 150,536$ -$ 1,042,246$ Receivables - interest 31,384 8,116 - 39,500 Investments, at fair value US government securities 6,980,187 166,679 - 7,146,866 Corporate securities 416,675 588,274 - 1,004,949 Total Investments, at fair value 7,396,862 754,953 - 8,151,815 Total Assets 8,319,956 913,605 - 9,233,561 LIABILITIES Amounts held for other governments -$ -$ -$ -$ COMBINED REGIONAL INFORMATION Beginning Ending SYSTEMS PROJECT (CRISP)Balance Additions Deductions Balance ASSETS Cash and cash equivalents 1,383$ 1,637,494$ 1,363,566$ 275,311$ Total Assets 1,383 1,637,494 1,363,566 275,311 LIABILITIES Amounts held for other governments -$ -$ -$ -$ City of Fort Collins Comprehensive Annual Financial Report 171 CUSTODIAL FUNDS SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2019 POUDRE SCHOOL DISTRICT Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 545,447$ 865,516$ 1,237,996$ 172,967$ Receivables - in Lieu Collections 5,053 1,710 5,053 1,710 Total Assets 550,500 867,226 1,243,049 174,677 LIABILITIES Amounts held for other governments 550,500$ 867,226$ 1,243,049$ 174,677$ THOMPSON SCHOOL DISTRICT Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 2,709$ 9,425$ 9,481$ 2,653$ Receivables - in Lieu Collections - 2,764 - 2,764 Total Assets 2,709 12,189 9,481 5,417 LIABILITIES Amounts held for other governments 2,709$ 12,189$ 9,481$ 5,417$ LARIMER COUNTY Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 241,579$ 1,068,749$ 1,105,709$ 204,619$ Receivables - Use tax collections 894 7,114 894 7,114 Total Assets 242,473 1,075,863 1,106,603 211,733 LIABILITIES Amounts held for other governments 242,473$ 1,075,863$ 1,106,603$ 211,733$ STATE OF COLORADO Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 1,538$ 46,743$ 46,872$ 1,409$ Receivables - Sales tax collections - - - - Total Assets 1,538 46,743 46,872 1,409 LIABILITIES Amounts held for other governments 1,538$ 46,743$ 46,872$ 1,409$ TOTAL CUSTODIAL FUNDS Beginning Ending Balance Additions Deductions Balance ASSETS Cash and cash equivalents 3,778,690$ 4,394,583$ 3,763,624$ 4,409,649$ Receivables -Interest 103,367 34,089 - 137,456 Receivables - Other collectibles 5,947 11,588 5,947 11,588 Investments, at fair value US government securities 23,035,090 1,831,767 - 24,866,857 Corporate securities 1,375,056 2,121,571 - 3,496,627 Total Investments, at fair value 24,410,146 3,953,338 - 28,363,484 Total Assets 28,298,150 8,393,598 3,769,571 32,922,177 LIABILITIES Amounts held for other governments 797,220$ 2,002,021$ 2,406,005$ 393,236$ 172 City of Fort Collins Comprehensive Annual Financial Report blank 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. City of Fort Collins Comprehensive Annual Financial Report 173 COMPONENT UNIT RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER 31, 2019 Statement Total Adjustments of Net Position ASSETS Cash and cash equivalents 621,694$ -$ 621,694$ Investments 4,903,774 - 4,903,774 Receivables Property taxes 7,554,286 - 7,554,286 Accounts 9,037 - 9,037 Interest 42,633 - 42,633 Inventory of real property held for resale 135,464 - 135,464 Restricted investments 1,250,000 - 1,250,000 Capital assets (non-depreciable)- 2,528,747 1 2,528,747 Capital assets (net of accumulated depreciation)- 2,268,775 1 2,268,775 Total Assets 14,516,888 4,797,522 19,314,410 Total Assets and Deferred outflows of resources 14,516,888 4,797,522 19,314,410 LIABILITIES Accounts payable 161,756 - 161,756 Interest payable - 12,288 2 12,288 Wages payable 28,261 - 28,261 Compensated absences - 13,323 13,323 Non-Current liabilities Due within one year - 1,757,598 2 1,757,598 Due after one year - 4,174,088 2 4,174,088 Total Liabilities 190,017 5,957,297 6,147,314 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 7,554,286 - 7,554,286 FUND BALANCES/NET POSITION Fund balances Nonspendable 135,464 Restricted 1,506,772 Assigned 5,130,349 Total Fund Balances 6,772,585 (1,159,775) 5,612,810 Total Liabilities, Deferred Inflows of Resources and Fund Balances 14,516,888$ Net Position: Net investment in capital assets 4,797,522 Restricted for debt service 1,506,772 Unrestricted (deficits)3 (691,484) Total Net Position (Deficit) of Component Unit (page 29)5,612,810$ 1 Capital assets net of accumulated depreciation used in governmental activities are not current financial resourcesTherefore 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. 174 City of Fort Collins Comprehensive Annual Financial Report 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, 2019 Statement Total Adjustments of Activities Expenditures/Expenses (including transfers): Expenditures/expenses 8,832,150$ (5,751,260)$ 1 3,080,890 8,832,150 (5,751,260) 3,080,890 Program Revenues Charges for services 91,419 - 91,419 Operating grants and contributions 87,108 - 87,108 Net Program Revenues 178,527 - 178,527 Net Program Expense 8,653,623 (5,751,260) 2,902,363 General Revenues Property taxes 6,662,654 - 6,662,654 Investment earnings 216,591 - 216,591 Miscellaneous 3,766,781 (3,746,318) 2 20,463 Total General Revenues 10,646,026 (3,746,318) 6,899,708 Change in Net Position (pages 30-31)1,992,403 2,004,942 3,997,345 Fund Balance/Net Position Beginning of the year 4,780,182 (3,164,717) 1,615,465 End of the year 6,772,585$ (1,159,775)$ 5,612,810 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 (5,018) Net decrease in compensated absences (11,318) Debt Payment (5,837,630) Current year depreciation 102,705 (5,751,261) 2 Proceeds from issuance of long term debt are not reported as revenues in the governmental funds.(3,746,318) City of Fort Collins Comprehensive Annual Financial Report 175 DOWNTOWN DEVELOPMENT AUTHORITY BALANCE SHEET DECEMBER 31, 2019 General Debt Service Total ASSETS Cash and cash equivalents 595,101$ 26,593$ 621,694$ Investments 4,693,570 210,204 4,903,774 Receivables Property taxes 788,897 6,765,389 7,554,286 Accounts 8,952 85 9,037 Interest 22,743 19,890 42,633 Inventory of real property held for resale 135,464 - 135,464 Restricted - investments - 1,250,000 1,250,000 Total Assets 6,244,727 8,272,161 14,516,888 LIABILITIES Accounts payable, accruals, and other 161,756 - 161,756 Wages payable 28,261 - 28,261 Total Liabilities 190,017 - 190,017 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 788,897 6,765,389 7,554,286 FUND BALANCES Nonspendable 135,464 - 135,464 Restricted - 1,506,772 1,506,772 Assigned 5,130,349 - 5,130,349 Total Fund Balances 5,265,813 1,506,772 6,772,585 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,244,727$ 8,272,161$ 14,516,888$ 176 City of Fort Collins Comprehensive Annual Financial Report DOWNTOWN DEVELOPMENT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED DECEMBER 31, 2019 General Debt Service Total REVENUES Taxes 758,150$ 5,904,504$ 6,662,654$ Licenses and permits 1,800 - 1,800 Intergovernmental 87,108 - 87,108 Fees and charges for services 89,619 - 89,619 Earnings on investments 151,445 65,146 216,591 Miscellaneous revenue 20,463 - 20,463 Total Revenues 1,108,585 5,969,650 7,078,235 EXPENDITURES Current operating Administrative 2,860,431 - 2,860,431 Debt service Principal - 5,837,630 5,837,630 Interest - 134,089 134,089 Total Expenditures 2,860,431 5,971,719 8,832,150 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,751,846) (2,069) (1,753,915) OTHER FINANCING SOURCES (USES) Proceeds from issuance of long term debt 3,746,318 - 3,746,318 Total Other Financing Sources 3,746,318 - 3,746,318 Net Change in Fund Balances 1,994,472 (2,069) 1,992,403 Fund Balances-January 1 3,271,341 1,508,841 4,780,182 Fund Balances-December 31 5,265,813$ 1,506,772$ 6,772,585$ City of Fort Collins Comprehensive Annual Financial Report 177 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, 2019 Final Actual Budget Variance REVENUES Programs Earnings on investments 151,445$ 5,000$ 146,445$ Fees and charges for services 89,619 - 89,619 Intergovernmental 87,108 50,000 37,108 Licenses and permits 1,800 1,800 - Miscellaneous revenue 20,463 - 20,463 Proceeds from issuance of long-term debt 3,746,318 4,000,000 (253,682) Taxes 758,150 739,504 18,646 Total Revenues 4,854,903 4,796,304 58,599 EXPENDITURES Programs DDA - financed activities 2,026,520 7,625,039 5,598,519 Operation and maintenance DDA 833,911 809,787 (24,124) Total Expenditures 2,860,431 8,434,826 5,574,395 Excess (deficiency) of revenues over (under) expenditures 1,994,472 (3,638,522)$ 5,632,994$ Fund Balances--January 1 3,271,341 Fund Balances--December 31 5,265,813$ 178 City of Fort Collins Comprehensive Annual Financial Report DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND S CHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-- ACTUAL AND BUDGET (NON-GAAP BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2019 Final Actual Budget Variance REVENUES Taxes 5,904,504$ 5,882,946$ 21,558$ Earnings (loss) on investments 65,146 - 65,146 Total Revenues 5,969,650 5,882,946 86,704 EXPENDITURES Debt service 5,971,719 6,225,366 253,647 Internal admin services - 156 156 Total Expenditures 5,971,719 6,225,522 253,803 Excess (deficiency) of revenues over (under) expenditures (2,069) (342,576)$ 340,507$ Fund Balances--January 1 1,508,841 Fund Balances--December 31 1,506,772$ STATISTICALSECTIONSTATISTICAL SECTION City of Fort Collins Comprehensive Annual Financial Report 179 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 ........................................................ 181 Changes in Net Position .................................................... Exh. A-2 ........................................................ 182 Fund Balances, Governmental Funds ............................... Exh. A-3 ........................................................ 183 Changes in Fund Balances, Governmental Funds ............ Exh. A-4 ........................................................ 184 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 ........................................................ 185 Direct and Overlapping Sales Tax Rates .......................... Exh. A-6 ........................................................ 186 Sales Tax Revenue Taxpayers by Industry ....................... Exh. A-7 ........................................................ 187 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 ........................................................ 188 Direct and Overlapping Governmental Act. Debt ............ Exh. A-9 ........................................................ 189 Legal Debt Margin Information ........................................ Exh. A-10 ...................................................... 190 Pledged Revenue Coverage .............................................. Exh. A-11 ...................................................... 191 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-12 ...................................................... 192 Principal Employers .......................................................... Exh. A-13 ...................................................... 193 Full-time Equivalent City Emp. By Function/Program .... Exh. A-14 ...................................................... 194 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-15 ...................................................... 195 Capital Asset Statistics by Function/Program .................. Exh. A-16 ...................................................... 196 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. 180 City of Fort Collins Comprehensive Annual Financial Report THIS PAGE INTENTIONALLY LEFT BLANK City of Fort Collins Comprehensive Annual Financial Report 181 Net Position by Component (in thousands)Exhibit A-1Last Ten Fiscal Years(accrual basis of accounting)2010201120122013201420152016201720182019Governmental activitiesNet investment in capital assets$ 597,270 $ 628,758 $ 662,461 $ 694,119 $ 718,092 $ 754,652 $ 781,421 $ 829,571 $ 857,873 $ 855,974Restricted37,138 43,327 52,466 55,649 76,411 75,207 80,520 81,844 76,746 81,632Unrestricted113,086 107,784 119,944 145,207 153,205 161,718 166,301 161,214 164,885 191,201Total governmental activities net position747,494 779,869 834,870 894,974 947,708 991,577 1,028,243 1,072,629 1,099,504 1,128,808Business-type activitiesNet investment in capital assets466,364 490,511 508,284 531,113 564,294 595,216 646,367 679,667 710,492 717,336Restricted1,030 1,025 995 1,032 853 1,027 859---Unrestricted163,527 160,226 172,528 178,571 182,456 167,931 147,389 148,938 140,854 151,799Total business-type activities net position630,922 651,763 681,808 710,716 747,603 764,174 794,615 828,605 851,346 869,135Primary governmentNet investment in capital assets1,063,634 1,119,270 1,170,745 1,225,231 1,282,386 1,349,868 1,427,789 1,427,789 1,568,365 1,573,311Restricted38,168 44,352 53,461 56,681 77,264 76,234 81,379 81,379 76,746 81,632Unrestricted276,613 268,010 292,472 323,778 335,661 329,648 313,691 313,691 305,739 343,000Total primary government net position$ 1,378,416 $ 1,431,631 $ 1,516,678 $ 1,605,690 $ 1,695,311 $ 1,755,751 $ 1,822,858 $ 1,822,858 $ 1,950,849 $ 1,997,943Totals may not add due to rounding 182 City of Fort Collins Comprehensive Annual Financial Report Changes in Net Position (in thousands)Exhibit A-2 Last Ten Fiscal Years (accrual basis of accounting) Expenses 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Governmental activities General government $ 29,752 $ 33,674 $ 34,645 $ 40,118 $ 36,434 $ 47,737 $ 46,706 $ 45,431 $ 45,359 $ 43,953 Public safety 48,854 51,313 55,633 56,660 57,686 61,018 64,852 73,945 74,912 78,812 Culture, parks, recreation and natural areas 27,342 29,755 32,448 40,910 37,165 35,423 47,315 44,396 46,637 44,944 Planning and development 14,331 11,053 9,502 13,547 11,160 11,241 13,982 20,594 17,486 17,482 Transportation 34,698 38,540 42,249 43,710 58,021 57,596 51,514 58,290 71,975 73,047 Interest on long-term debt 2,682 2,523 2,148 1,406 1,945 1,317 1,326 1,255 1,241 2,266 Total governmental activities expenses 157,659 166,857 176,625 196,352 202,411 214,332 225,695 243,912 257,610 260,503 Business-type activities Light and Power 91,693 97,057 101,513 116,639 116,911 124,304 131,780 133,285 144,992 145,582 Water 19,671 19,941 22,169 23,312 25,586 27,698 26,383 25,598 29,946 31,303 Wastewater 14,129 14,163 15,872 17,808 18,314 19,492 20,197 20,958 22,223 20,475 Storm drainage 8,307 8,407 8,119 9,428 9,196 9,287 9,913 10,805 10,723 10,457 Golf 2,454 2,547 2,661 2,758 3,306 3,169 3,208 3,142 3,260 3,206 Total business-type activities expenses 136,253 142,115 150,333 169,946 173,313 183,949 191,481 193,789 211,144 211,023 Total primary government expenses 293,911 308,973 326,958 366,298 375,724 398,281 417,177 437,700 468,754 471,526 Program revenues Governmental activities General government 6,782 7,479 6,458 6,944 8,807 15,194 15,980 15,786 9,598 9,069 Public safety 1,862 1,724 1,548 1,688 1,750 1,918 1,598 1,603 1,519 1,659 Culture, parks, recreation & natural areas 7,004 7,491 7,680 8,486 9,165 9,222 9,813 10,673 9,820 11,175 Planning and development 1,295 1,622 2,579 3,540 5,335 4,409 4,870 4,561 4,339 3,800 Transportation 8,101 6,926 11,147 12,108 13,409 9,833 12,356 16,280 11,568 12,738 Operating grants and contributions 8,240 13,712 9,284 10,075 6,958 8,737 11,277 17,013 10,520 14,858 Capital grants and contributions 16,014 14,784 31,678 49,585 28,040 17,788 14,788 19,379 18,829 15,100 Total governmental activities program revenues 49,298 53,737 70,374 92,426 73,464 67,102 70,683 85,296 66,194 68,399 Business-type activities Light and Power 94,235 100,814 109,776 115,879 115,412 118,780 126,466 130,198 132,869 136,031 Water 24,463 24,308 28,553 26,210 27,044 27,925 29,912 31,106 34,154 31,903 Wastewater 19,275 19,149 20,882 20,430 21,486 22,223 23,460 24,102 24,557 24,044 Storm drainage 13,869 13,946 14,082 14,396 14,835 15,070 15,696 16,807 17,008 17,483 Golf 2,676 2,672 3,096 2,921 3,270 3,499 3,430 3,474 3,516 3,487 Operating grants and contributions 220 131 6 30 8 74 260 -127 463 Capital grants and contributions 9,019 11,661 15,979 24,099 25,772 16,280 23,155 21,828 15,110 6,551 Total business-type activities program revenues 163,757 172,680 192,374 203,963 207,827 203,851 222,379 227,515 227,340 219,960 Total primary government program revenues 213,055 226,417 262,748 296,389 281,291 270,953 293,062 312,811 293,534 288,359 Net (expenses) revenue Governmental activities (108,360) (113,120) (106,251) (103,925) (128,947) (147,231) (155,013) (158,616) (191,416) (192,105) Business-type activities 27,504 30,565 42,042 34,017 34,514 19,902 30,898 33,727 16,196 8,938 Total primary government net expenses (80,857) (82,556) (64,210) (69,908) (94,434) (127,329) (124,115) (124,889) (175,220) (183,167) General revenues and other changes in net position Governmental activities Taxes: Sales and use taxes 74,719 97,589 109,732 111,846 129,088 134,899 136,087 135,621 138,560 143,145 Property taxes 17,833 17,742 18,188 18,485 19,155 19,988 22,822 25,097 29,363 29,871 Occupational privilege taxes 2,327 2,433 2,560 2,653 2,676 2,851 2,757 2,974 2,569 2,659 Lodging tax 808 909 1,012 1,103 1,305 1,451 1,453 1,521 1,794 1,946 Intergovernmental not restricted to programs 9,919 10,274 10,681 20,032 21,146 22,436 24,075 25,074 27,072 27,650 Investment earnings 2,367 2,601 1,998 537 3,142 7,497 1,541 3,826 5,443 8,253 Miscellaneous 787 1,019 1,246 2,991 3,211 2,912 708 4,387 10,216 5,039 Transfers 13,636 13,486 15,837 6,383 1,959 1,532 2,236 3,505 3,274 2,881 Total governmental activities 122,395 146,054 161,253 164,029 181,681 193,564 191,679 202,006 218,291 221,444 Business-type activities Intergovernmental not restricted to programs - - - - - - -226 93 - Investment earnings 2,585 2,919 2,227 466 2,330 2,113 890 2,220 4,791 9,284 Other miscellaneous 1,379 1,498 1,613 808 2,003 1,984 890 888 4,935 2,449 Transfers (13,636) (13,486) (15,837) (6,383) (1,959) (1,532) (2,236) (3,505) (3,274) (2,881) Total business-type activities (9,671) (9,069) (11,996) (5,109) 2,374 2,565 (456) (172) 6,544 8,852 Total primary government 112,724 136,985 149,257 158,920 184,055 196,129 191,223 201,834 224,835 230,296 Change in net position Governmental activities 14,034 32,934 55,001 60,104 52,734 46,333 36,666 43,390 26,875 29,339 Business-type activities 17,833 21,496 30,045 28,908 36,887 22,467 30,441 33,555 22,740 17,790 Total primary government $ 31,867 $ 54,429 $ 85,047 $ 89,012 $ 89,621 $ 68,800 $ 67,108 $ 76,945 $ 49,615 $ 47,129 Totals may not add due to rounding City of Fort Collins Comprehensive Annual Financial Report 183 Fund Balances, Governmental Funds (in thousands)Exhibit A-3Last Ten Fiscal Years(modified accrual basis of accounting)2010201120122013201420152016201720182019General FundNon Spendable$ 9,546 $ 8,519 $ 8,519 $ 7,897 $ 8,345 $ 7,196 $ 6,998 $ 6,485 $ 6,323 $ 1,622Restricted6,400 7,389 9,751 12,161 16,369 13,795 13,540 12,051 10,984 10,262Committed720 604 589 646 506 529 482 375 1,981 10,334Assigned4,929 7,348 12,439 10,403 23,709 20,715 20,963 17,909 13,124 40,094Unassigned19,330 16,307 23,956 29,012 25,744 30,708 33,391 33,919 34,644 10,164Total general fund40,924 40,167 55,253 60,120 74,674 72,943 75,375 70,740 67,056 72,476All Other Governmental FundsNon Spendable6 75,311 5,313 5,317 5,314 5,382 89--Restricted31,816 35,938 42,715 43,718 60,041 63,491 66,973 68,254 64,755 71,629Committed27,556 21,540 30,543 37,142 44,237 53,892 51,864 45,125 54,413 60,993Assigned30,269 30,978 23,447 31,444 26,902 21,497 22,899 24,397 21,530 23,089Unassigned(4,703) (6,842) (14,592) (7,872) (9,397) (9,458) (11,183) 27,665 (5,489) (236)Total other governmental funds$ 84,944 $ 81,622 $ 87,424 $ 109,745 $ 127,099 $ 134,736 $ 135,935 $ 165,529 $ 135,209 $ 155,475Totals may not add due to rounding 184 City of Fort Collins Comprehensive Annual Financial Report Changes in Fund Balances, Governmental Funds (in thousands)Exhibit A-4Last Ten Fiscal Years(modified accrual basis of accounting)2010201120122013201420152016201720182019RevenuesTaxes$ 95,687 $ 118,673 $ 131,491 $ 134,086 $ 152,223 $ 159,188 $ 163,119 $ 165,214 $ 172,286 $ 177,621Licenses and permits1,236 1,554 2,184 3,040 4,645 3,924 4,001 4,122 4,026 3,857Intergovernmental37,520 34,738 53,192 68,696 49,779 45,717 38,362 48,076 45,269 51,383Fees and charges for services22,709 22,765 30,742 33,323 37,569 32,611 39,330 39,446 36,948 36,435Fines and forfeitures2,737 2,730 2,783 2,803 2,536 2,774 2,152 2,034 2,826 2,764Earnings on investments2,064 2,255 1,754 585 2,923 2,558 1,116 3,040 4,318 7,272Securities lending income6------5,255--Miscellaneous revenue2,684 8,835 4,224 6,275 5,229 4,203 3,767-6,810 3,004Total Revenues164,643 191,549 226,370 248,809 254,904 250,975 251,847 267,187 272,483 282,336ExpendituresPolice services30,490 31,231 34,512 34,805 35,617 36,619 38,755 41,822 44,834 47,863Financial services2,909 2,874 3,187 3,616 3,798 3,868 3,957 4,361 4,529 4,600Community services22,575 24,075 27,497 34,112 30,726 32,356 43,895 38,387 38,769 40,689Planning, development and transportation34,475 41,862 45,397 45,830 52,907 59,985 53,449 69,950 70,323 71,291Executive, legislative, and judicial4,675 4,390 4,639 5,370 5,945 6,850 6,940 6,832 7,076 7,872Information and employee8,749 10,813 10,996 12,627 12,371 14,375 15,773 17,601 18,431 17,954Sustainability services12,246 9,643 7,096 12,332 8,421 10,280 12,997 16,458 13,484 12,585Other1,717 1,318 1,682 1,753 1,320 2,368 1,314 1,776 1,790 1,676Securities lendingInterest4---------Agent fees1---------IntergovernmentalFire protection17,458 18,994 19,283 20,065 20,753 22,280 24,058 29,006 28,067 29,824Capital outlay31,851 40,914 38,356 55,057 42,704 42,221 31,762 45,479 37,704 39,506Debt servicePrincipal3,805 4,174 6,968 4,202 5,275 5,819 5,831 4,844 5,610 5,641Interest and debt service costs2,693 2,524 2,499 1,517 1,953 1,440 1,370 1,155 1,215 1,960Total expenditures173,650 192,811 202,111 231,287 221,790 238,462 240,101 277,670 271,833 281,462Excess (deficiency) of revenues over(under) expenditures(9,007) (1,262) 24,259 17,522 33,115 12,513 11,746 (10,483) 650 874Other Financing Sources (Uses)Proceeds from issuance of long term debt-976 35,092 12,909 3,190 239-8,425-29,194Premium on debt---------1,879Transfers in35,457 39,128 41,781 33,445 40,033 50,047 42,056 46,696 44,669 66,760Transfers out(39,156) (42,958) (46,030) (37,705) (44,496) (57,124) (50,246) (52,796) (50,919) (73,296)Sale of capital assets265 37 181 1,018 67 230 75 2,019 232 275Payments to escrow agent--(34,395)-------Total other financing sources (uses)(3,435) (2,817) (3,371) 9,667 (1,206) (6,608) (8,115) 4,344 (6,018) 24,812Net change in fund balances$ (12,441) $ (4,079) $ 20,888 $ 27,188 $ 31,909 $ 5,906 $ 3,631 $ (6,139) $ (5,368) $ 25,686Debt service as a percentage ofnoncapital expenditures4.54% 4.38% 5.78% 3.29% 3.99% 3.80% 3.52% 2.71% 2.96% 3.12%Totals may not add due to rounding City of Fort Collins Comprehensive Annual Financial Report 185 Taxable Sales by CategoryExhibit A-5Last Ten Fiscal Yearsin millions of dollars2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Sales Tax CategoryGrocery, Convenience, Liquor$ 363.8 $ 394.1 $ 429.0 $ 458.9 $ 488.3 $ 513.5 $ 530.3 $ 532.4 $ 548.1 $ 561.0Restaurants, Caterers and Bars295.6 315.4 337.9 353.1 380.2 408.8 427.7 448.3 470.6$ 486.3General Merchandise299.4 303.0 303.5 313.1 323.2 302.9 300.0 301.3 314.0$ 309.7Building Materials, Garden Equipment & Supplies142.9 154.8 165.9 186.1 221.5 226.4 230.0 241.8 259.7$ 263.1Vehicle Sales, Parts and Repairs160.0 164.5 180.6 193.6 221.4 228.5 227.6 235.3 237.5$ 242.6Miscellaneous Retailers110.4 116.4 121.7 131.0 138.6 146.9 169.8 202.7 218.3$ 249.3Electronics and Appliances111.9 118.2 122.1 126.0 150.7 163.0 156.6 154.4 137.1$ 120.0Sporting, Hobby, Book, Music129.2 134.5 134.9 137.3 140.5 149.2 144.8 137.1 137.0$ 129.4Broadcasting and Telecommunications119.0 116.7 117.2 108.0 111.8 115.2 124.7 121.4 130.8$ 126.2Utilities100.8 107.0 111.2 117.5 122.2 118.1 118.9 124.2 127.7$ 130.1Clothing and Accessories76.9 83.0 88.7 82.9 78.4 78.1 103.1 105.3 109.0$ 111.8Pharmacy, Salon and Laundry54.5 61.1 54.6 56.8 66.6 84.5 101.2 117.9 133.6$ 149.1Other44.3 45.9 51.0 53.7 58.6 63.3 70.3 75.2 72.7$ 79.0Furniture and Home Furnishings41.0 43.7 50.0 56.5 60.7 65.4 68.0 68.2 69.5$ 60.5Rental and Leasing Services43.1 42.7 46.3 44.5 52.0 59.3 66.5 67.6 65.6$ 67.5Wholesale Trade35.6 37.5 42.4 43.6 45.2 54.1 57.1 43.4 58.9$ 74.8Lodging32.2 35.2 40.2 42.1 49.8 54.9 53.5 56.0 70.8$ 75.0Manufacturing30.5 37.1 44.5 44.2 52.2 51.4 51.6 64.5 64.1$ 60.0Total$2,191.2 $2,310.9 $2,441.7 $2,548.9 $2,761.9 $2,883.7 $3,001.7 $3,097.0 $3,225.0 $3,295.4City direct sales tax rate*3.00% 3.00% 3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 3.85%* Food sales city direct sales tax rate is 2.25%Totals may not add due to rounding 186 City of Fort Collins Comprehensive Annual Financial Report Direct and Overlapping Sales Tax Rates Exhibit A-6 Last Ten Fiscal Years Fiscal Year City Direct Rate*Larimer County State of Colorado 2010 3.00%0.80%2.90% 2011 3.85%0.80%2.90% 2012 **3.85%0.80% / 0.60%2.90% 2013 3.85%0.60%2.90% 2014 3.85%0.60%2.90% 2015 3.85%0.65%2.90% 2016 3.85%0.65%2.90% 2017 3.85%0.65%2.90% 2018 3.85%0.55%2.90% 2019 3.85%0.80%2.90% * Food for home consumption sales direct rate is 2.25% **Larimer County tax rate decreased from 0.8% to 0.6% effective July 1, 2012 City of Fort Collins Comprehensive Annual Financial Report 187 Sales Tax Revenue Taxpayers by IndustryExhibit A-7Current Year and 2010tax liability in thousandsFiscal Year 2019Fiscal Year 2010NumberPercentageTaxPercentageNumberPercentageTaxPercentageof Filersof TotalLiabilityof Totalof Filersof TotalLiabilityof TotalGrocery, convenience, liquor267 1.93%$ 15,91813.30% 183 1.81%$ 9,19414.44%Restaurants, caterers and bars644 4.65% 18,641 15.57% 425 4.20% 8,880 13.95%General merchandise28 0.20% 10,634 8.88% 27 0.27% 8,381 13.16%Vehicle sales, parts and repairs518 3.74% 9,336 7.80% 371 3.66% 4,816 7.57%Building materials, garden equipment and supplies3,269 23.63% 10,137 8.47% 2,258 22.30% 4,271 6.71%Broadcasting and telecommunications297 2.15% 4,864 4.06% 259 2.56% 3,504 5.50%Sporting, hobby, book, and music 340 2.46% 5,108 4.27% 413 4.08% 3,864 6.07%Miscellaneous retailers1,767 12.77% 9,520 7.95% 1,154 11.40% 3,246 5.10%Utilities29 0.21% 4,928 4.12%9 0.09% 3,110 4.89%Electronics and appliances354 2.56% 4,630 3.87% 301 2.97% 3,438 5.40%Pharmacy, salon and laundry816 5.90% 5,701 4.76% 670 6.62% 1,629 2.56%Clothing and accessories244 1.76% 4,343 3.63% 231 2.28% 2,307 3.62%Other3,088 22.32% 3,051 2.55% 2,639 26.06% 1,351 2.12%Furniture and home furnishings202 1.46% 2,324 1.94% 167 1.65% 1,439 2.26%Rental and leasing services425 3.07% 2,603 2.18% 331 3.27% 1,288 2.02%Manufacturing672 4.86% 2,283 1.91% 362 3.57%917 1.44%Wholesale trade416 3.01% 2,792 2.33% 304 3.00% 1,063 1.67%Lodging460 3.32% 2,878 2.40% 23 0.23%966 1.52%Total13,836 100.00%$ 119,691100.00% 10,127 100.00%$ 63,666100.00%Note: Due to confidentiality needs, the names of the ten largest revenue payers are not available. The categories presented are intendedto provide alternative information regarding the sources of the city's revenue. Totals may not add due to rounding 188 City of Fort Collins Comprehensive Annual Financial Report Ratios of Outstanding Debt by TypeLast Ten Fiscal YearsExhibit A-8in thousandsGovernmental ActivitiesBusiness-Type ActivitiesCertificatesAssignmentCertificatesAssignmentTotalPercentageFiscalRevenue ofof LeaseCapitalNet UnamortizedRevenue ofof LeaseCapitalNet UnamortizedPrimaryof PersonalPerYearBondsParticipationPaymentsLeasesPremium/(Discount)BondsParticipationPaymentsLeasesPremium/(Discount)GovernmentIncomeCapita *2010 670 49,100 587 1,0151,178 109,884 1,360 1,868 227828 166,716 3.0%1.162011 340 45,870 545 2,7551,083 100,380 1,230 1,734 245391 154,572 2.7%1.072012-41,845 501 3,719-90,007 1,095 1,594 2081,358 140,326 2.3%0.942013 11,085 37,905 455 5,872307 79,597950 1,448 2711,152 139,043 2.1%0.922014 10,833 33,815 407 7,790288 71,514795 1,295 6511,038 128,426 1.9%0.832015 9,995 29,630 357 8,781269 60,995620 1,134 608925 113,313 1.6%0.702016 9,435 25,365 304 8,190249 49,838425966 7203,368 98,860 1.3%0.612017 8,860 29,410 249 8,463230 39,960225790 7493,002 91,937 1.1%0.552018 8,265 24,185 191 7,360211 157,109-606 90615,622 214,454 1.9%1.252019 12,640 43,085 130 7,3852,336 151,959-413 93314,811 233,692NA1.35Totals may not add due to roundingNote: Personal Income provided by the Bureau of Economic Analysis. Information is updated regularly and 2019 data was not available at the time this schedule was prepared.*These numbers are in thousands as rest of the table. In 2019 the 1.35 means $1,350.00 is the total debt per person City of Fort Collins Comprehensive Annual Financial Report 189 Direct and Overlapping Governmental Activities Debt Exhibit A-9 As of December 31, 2019 in thousands Percentage Share of Debt Debt Applicable Applicable Outstanding 2 to the City 3 to the City Direct Debt City of Fort Collins 1 63,239 100.00%$ 63,239 Overlapping Debt Harmony Tech Park No. 2 4 10,930 100.00%10,930 Mall Metro District 4 71,510 100.00%71,510 Poudre R-1 School District 4 480,235 74.62%358,374 Total Overlapping Debt 562,675 440,814 Total Direct and Overlapping Debt $ 625,914 $ 504,053 Estimated actual valuation $ 27,486,157 Assessed valuation $ 2,945,433 Net direct debt $ 63,239 Estimated overlapping debt $ 440,814 Net direct and estimated overlapping debt $ 504,053 Ratio of net direct debt to estimated actual valuation 0.2% Ratio of net direct debt to assessed valuation 2.1% Net direct debt per capita 5 $ 366 Ratio of net direct and estimated overlapping debt to estimated actual valuation 1.8% Ratio of net direct and estimated overlapping debt to assessed valuation 17.1% Net direct and estimated overlapping debt per capita 5 $ 2,919 Estimated actual valuation per capita 5 $ 159,199 Assessed valuation per capita 5 $ 17,060 1 2 Includes outstanding debt supported by general property taxes less available debt service monies. 3 4 Source: Governmental entity. 5 ASSESSED VALUATION, DEBT, AND DEBT RATIO DECEMBER 31, 2018 Includes all governmental activities outstanding debt supported by general property taxes less available debt service monies. 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. Based on 2017 Population estimate per City of Fort Collins Planning Office--167,500. Per capita amounts are presented unrounded and not in thousands. 190 City of Fort Collins Comprehensive Annual Financial Report Legal Debt Margin InformationExhibit A-10Last Ten Fiscal Yearsin thousandsAssessed Valuation 1$ 2,945,433Debt limit - 10% of assessed value294,543Amount of debt applicable to limit:Total bonded debt (including special assessments)(157,891)Less:Assets in debt service funds available for payment of general obligation debt-Other deductions allowed by law:Downtown Development Authority tax increment bonds5,932Light and Power revenue bonds129,635Water revenue bonds947Storm drainage revenue bonds3,638Sewer revenue bonds17,740Net amount of debt applicable to debt limit0 Legal debt margin$ 294,5432010201120122013201420152016201720182019Debt Limit$ 181,595 $ 179,223 $ 179,603 $ 188,469 $ 193,422 $ 222,960 $ 230,800 $ 230,800 $ 260,250 $ 294,543Total net debt applicable to limit----------Legal debt margin$ 181,595 $ 179,223 $ 179,603 $ 188,469 $ 193,422 $ 222,960 $ 230,800 $ 230,800 $ 260,250 $ 294,543Total net debt applicable to the limitas a percentage of debt limit0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0.00%0.00%1Source: Larimer County Assessor's Office. City of Fort Collins Comprehensive Annual Financial Report 191 Pledged Revenue Coverage Exhibit A-11 Last Ten Fiscal Years in thousands Net Revenue Gross Available for Revenues Expenses Debt Service Principal Interest Total Coverage 2010 99,951 91,483 8,468 ---n/a 2011 109,106 96,124 12,982 -235 235 n/a 2012 119,771 100,664 19,107 1,415 622 2,037 9.38 2013 129,264 108,976 20,287 1,455 580 2,035 9.97 2014 125,953 107,205 18,748 1,490 547 2,037 9.20 2015 125,308 114,156 11,152 1,520 514 2,034 5.48 2016 134,007 122,822 11,186 1,580 453 2,033 5.50 2017 137,106 122,757 14,348 1,757 303 2,059 6.97 2018 143,462 129,626 13,836 5,476 2,400 7,876 1.76 2019 144,975 127,735 17,240 -5,828 5,828 2.96 WATER REVENUE BONDS Net Revenue Gross Available for Debt Service Requirements Revenues Expenses Debt Service Principal Interest Total Coverage 2010 27,289 16,582 10,707 2,633 1,034 3,667 2.92 2011 29,217 16,310 12,907 2,661 943 3,604 3.58 2012 33,061 19,235 13,825 2,755 841 3,596 3.85 2013 32,727 18,109 14,617 2,854 676 3,530 4.14 2014 37,579 18,629 18,950 2,569 510 3,079 6.15 2015 34,521 20,302 14,219 2,759 474 3,233 4.40 2016 37,911 20,004 17,908 2,871 326 3,197 5.60 2017 42,881 18,444 24,437 2,744 222 2,966 8.24 2018 41,135 21,818 19,317 2,484 144 2,628 7.35 2019 36,543 23,310 13,234 307 57 364 36.34 Net Revenue Gross Available for Revenues Expenses Debt Service Principal Interest Total Coverage 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 1,308 4,573 2.60 2014 26,258 11,586 14,672 1,640 1,217 2,857 5.14 2015 24,360 12,303 12,057 1,695 1,158 2,853 4.23 2016 28,376 14,072 14,305 1,760 328 2,088 6.85 2017 29,085 14,371 14,714 2,123 549 2,672 5.51 2018 27,779 14,893 12,886 2,167 511 2,678 4.81 2019 26,004 13,250 12,754 1,905 716 2,621 4.87 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 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 2014 17,742 5,749 11,993 3,203 840 4,042 2.97 2015 16,129 5,635 10,494 3,335 832 4,167 2.52 2016 20,387 6,771 13,616 3,465 699 4,164 3.27 2017 18,255 7,570 10,685 3,595 475 4,070 2.63 2018 19,583 7,205 12,378 2,877 302 3,179 3.89 2019 18,972 7,005 11,967 2,938 263 3,200 3.74 Totals may not add due to rounding Gross pledged revenues includes all operating revenues and nonoperating revenues, excluding transfers. Operation and maintence expenses generally include all expenses properly allocable to the system pursuant to GAAP and excludes depreciation, amortization, interest expense or transfers. Debt Service Requirements LIGHT AND POWER REVENUE BONDS Debt Service Requirements WASTEWATER REVENUE BONDS Debt Service Requirements STORM DRAINAGE REVENUE BONDS 192 City of Fort Collins Comprehensive Annual Financial Report Demographic and Economic Statistics Exhibit A-12 Last Ten Fiscal Years Personal Per Income Capita Calendar (thousands Personal Unemployment Denver-Aurora Residential Year Population of dollars)Income Rate Lakewood CPI-U Building Permits 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 13,545,018 42,866 5.4%230.79 670 2014 155,400 14,126,667 43,584 4.3%237.20 802 2015 160,935 15,118,879 45,318 3.3%239.99 558 2016 162,919 16,019,414 47,117 2.8%246.64 589 2017 167,500 17,384,100 50,539 2.2%255.00 649 2018 171,100 18,851,522 64,287 2.8%261.96 414 2019 172,653 N/A N/A 2.3%267.00 434 Source: 3) Unemployment rate provided by the United States Department of Labor - Bureau of Labor Statistics. Average/year 4) CPI-U, annual, is provided by the US Bureau of Labor Statistics- Denver-Aurora-Lakewood area is the nearest region CPIU database changed from Denver-Boulder-Greeley to Denver-Aurora-Lakewood in 2017. *Historically, Residential building permits did not include multi family Note : Information for personal income, per capita, and unemployment rate is based on the Fort Collins/Loveland regional area. 1) Population prior to 2009 provided by the Colorado State Demography Office. 2010 population is from the US Census 2009, 2011-2015 population is estimated by the Colorado State Demography Office; 2016-2019 population is estimated by the City of Fort Collins Planning Department. 2) 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 2020 was not available at the time this schedule was prepared. GeoName states 'Fort Collins, CO (Metropolitan Statistical Area)' 5) Number of residential building permits issued obtained from the City of Fort Collins Neighborhood and Building Services department. Single family detached and attached City of Fort Collins Comprehensive Annual Financial Report 193 Principal Employers Exhibit A-13 2019 and Ten Years Ago Fiscal Year 2019 Fiscal Year 2009 * Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Colorado State University 7,600 1 7.4%6,755 1 7.8% UC Health: Poudre Valley Hospital 5,400 2 5.3%2,832 3 3.3% Poudre R-1 School District 4,400 3 4.3%3,929 2 4.5% City of Fort Collins 2,200 4 2.1%1,795 5 2.1% Larimer County 2,000 5 2.0%1,975 4 2.3% Woodward 1,400 6 1.4%994 8 1.1% Broadcom (Avago)1,200 7 1.2%656 9 0.8% Department of Agriculture 1,000 8 1.0% Otter Products, LLC 900 9 0.9% Dillon Companies Inc (King Soopers)850 10 0.8% Hewlett Packard 1,524 6 1.8% Center Partners 1,081 7 1.2% Anheuser Busch 609 10 0.7% Total 26,950 26.3% 22,150 25.4% Source: United States Bureau of *2010 data not available 194 City of Fort Collins Comprehensive Annual Financial Report Full-time Equivalent City Employees by Service Area/Department Exhibit A-14 Last Ten Fiscal Years Service Area/ Department 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Financial Services 35 35 35 38 38 38 43 47 48 47 Executive Services 23 25 25 25 28 28 29 30 29 30 Judicial Services 7 8 8 7 8 8 9 10 10 10 Legal Services 12 12 12 12 15 17 18 19 20 20 Sustainability Services 13 15 19 25 26 25 32 33 34 36 Police Services * Investigations 45 48 55 56 57 55 55 54 52 51 Police Information Systems 55 57 60 61 61 57 57 61 61 64 Patrol 140 144 149 153 159 161 164 167 141 131 Community and Special Services 37 49 Office of the Chief 14 15 16 18 18 18 19 20 19 22 Community Services Recreation 128 128 128 126 128 130 124 127 129 128 Cultural Services 42 46 50 56 55 51 53 56 56 62 Parks 127 132 135 138 139 135 142 148 156 147 Natural Areas 45 46 48 47 48 48 50 49 49 49 Planning, Development & Transportation Transfort / Parking Services 91 92 94 96 115 132 140 142 145 143 Comm Dev & Neighborhood Svcs 44 45 51 56 60 61 65 69 71 71 FC Moves 6 6 6 5 6 8 9 8 9 9 Streets 51 57 57 53 55 56 56 57 55 55 Traffic 26 29 30 28 27 26 28 29 29 26 Engineering 30 30 33 35 33 33 35 35 36 35 Information & Employee Services Information Technology 54 52 57 61 67 67 69 71 72 70 Comm. & Public Involvement 9 9 10 11 13 15 16 17 17 16 Human Resources 20 19 20 22 21 22 24 26 26 25 Operation Services 63 65 70 72 73 72 78 81 81 79 Utility Services Light & Power 104 107 108 107 107 112 110 108 111 105 Water 77 80 80 84 84 87 89 91 93 94 Wastewater 61 61 60 60 59 59 63 63 65 64 Storm Drainage 30 31 29 32 33 32 31 32 33 31 Broadband 2 22 Customer Service & Admin.91 88 92 93 93 88 93 92 92 91 Total City of Fort Collins 1,445 1,481 1,537 1,577 1,623 1,642 1,701 1,741 1,779 1,782 Note: Full time equivalents are based on filled positions using hours worked, excluding overtime, but including vacation, sick and holiday time. The data includes all employees , including exempt, not-exempt, with benefits, and without benefits. Vacancies are not included. Prior years restated due to reorganization, and data was missing compensation time used. * Police Services restructured the departments in 2018. Totals may not add due to rounding. City of Fort Collins Comprehensive Annual Financial Report 195 Operating Indicators by Function/ProgramExhibit A-15Last Ten Fiscal YearsFunction/Program2010201120122013201420152016201720182019General GovernmentJob applications processed7,112 11,415 10,192 10,760 6,666 18,747 18,752 17,544 12,482 17,853Warrants issued1,231 1,370 1,379 1,146 874 723 952 920 788 861Camera Radar completed cases18,137 17,634 13,954 16,750 13,599 14,003 16,747 18,977 19,762 18,111Public SafetyAdult arrests4,739 4,792 5,112 4,605 4,827 5,235 5,983 6,237 5,817 5,327Juvenile arrests849 675 610 553 658 767 587 589 560 601Traffic violations20,792 18,484 21,678 19,399 17,292 17,418 15,293 13,756 13,317 10,946Number of fires per 1000 population2.22 2.19 2.12 2.05 1.76 1.91 1.78 1.71 1.53 1.43Total inspections per 1000 population16.75 11.91 24.20 21.70 13.39 26.35 26.03 33.20 36.43 31.22Average calls per week276 299 306 317 339 367 403 427 422 422Average response time4:39 4:59 5:34 6:55N/A N/A N/A N/A N/A N/AMinutes fire personnel are on scene 90% of the timeN/A N/A N/A N/A N/A N/A7:23 7:16N/A8:54Culture, parks, recreation & natural areasEpic Pool & Ice attendance480,586 385,426 364,459 465,615 361,276 354,486 294,860 323,231 376,920 319,910City Park Pool attendance74,821 75,755 66,651 60,138 49,155 52,545 51,311 46,764 55,409 58,508Mulberry Pool attendance167,810 202,148 134,358 148,641 57,260 57,149 65,168 71,578 83,278 78,099Senior Center Pool attendance21,179 25,775 29,236 32,599 20,213 24,627 24,415 25,461 31,400 31,012Youth Activity Center attendance 24,207 31,171 46,202 41,666 11,951N/A N/A N/A N/A N/AFoothills Activity Center attendanceN/A N/A N/A N/A N/A N/A48,572 55,329 66,072 74,700North Aztlan Center attendance177,779 194,315 183,292 164,849 210,766 218,225 170,618 170,837 171,400 193,811Farm attendance61,737 61,336 62,736 57,502 60,077 62,326 66,648 66,969 54,440 64,519Museum attendance26,852 22,752 23,315 114,292 92,251 99,146 122,549 126,839 121,611 126,639Scheduled park events5,630 5,953 6,486 6,122 7,016 5,877 6,061 7,700 5,804 5,565Planning and developmentConstruction permits- single family units177 258 469 630 743 509 522 583 414 320Construction permits- multi family units1031 39 40 59 4967663638TransportationTransfortPassengers2,034,195 2,156,775 2,271,732 2,296,511 2,611,642 3,266,194 4,089,206 4,306,807 4,406,988 4,467,906Revenue miles913,682 995,858 1,028,4051,033,967 1,297,623 1,496,165 1,611,409 1,612,941 1,661,011 1,648,666Revenue hours75,564 77,356 78,551 78,741 103,232 118,846 126,380 129,438 132,864 132,462Dial a RidePassengers40,385 37,851 37,747 34,121 34,533 35,450 34,005 29,594 30,085 30,885Revenue miles252,107 166,893 156,941 205,512 207,782 210,076 200,018 183,355 196,386 211,699Revenue hours21,690 20,407 19,429 17,770 17,642 18,229 17,741 16,062 15,965 16,667Light & PowerCustomers65,504 66,220 67,209 68,585 69,619 70,594 71,016 72,523 74,585 75,656Electric use- megawatt hours1,442,741 1,493,417 1,508,735 1,500,215 1,475,103 1,519,377 1,547,459 1,532,219 1,545,547 1,515,763Peak demand- megawatts282 292 302 295 281 291 304 311 317 299Interruption index- minutes/year17.27 21.73 16.84 9.58 25.54 20.60 18.83 15.95 16.82 17.70WaterCustomers32,983 33,074 33,147 33,348 34,290 34,744 35,092 35,279 35,629 35,769Treated water delivered- acre feet24,030 23,387 26,875 23,972 23,733 24,263 27,173 26,000 26,566 24,451Peak day water use- million gallons/day40.8 39.7 46.8 43.0 40.8 40.2 49.6 45.0 49.0 44.7Water main breaks13997 108 92 80 116 111978099WastewaterCustomers33,226 33,305 33,398 33,555 34,203 34,425 34,995 35,195 35,362 35,409Average flow wastewater treated- million gallons/day13.9 13.7 12.9 13.9 14.7 15.0 14.6 14.5 14.2 14.0Recycled processed wastewater bio solids- dry tons1,747 1,817 1,901 1,890 2,277 2,322 2,321 2,355 2,192 2,113Industrial discharge permits1414 15 16 16 1313141415Storm DrainageCustomers40,813 41,395 42,020 42,589 43,609 44,388 45,008 45,589 46,119 46,456GolfRounds played78,608 77,854 86,865 77,812 81,469 82,349 78,084 78,654 77,261 74,800*PFA cannot provide the data for 2018 for 'minutes fire personnel are on scene 90% of the time' due to a software change in 2018; no response data is available for 2018.**2015-2018 Job applications were restaed due to a reporting error. 196 City of Fort Collins Comprehensive Annual Financial Report Capital Asset Statistics by Function/ProgramExhibit A-16Last Ten Fiscal YearsFunction/Program2010201120122013201420152016201720182019General GovernmentAdministrative buildings3 3 3 3 3 3 3 3 3 3Municipal court1 1 1 1 1 1 1 1 1 1Public SafetyPolice stations1 1 1 1 1 1 1 3 3 3Police cars225 281 284 270 257 260 279 259 316 346Fire stations13 13 13 13 13 13 13 13 13 13Culture, parks, recreation & natural areasSwimming pools4 4 4 4 4 4 4 4 4 4Number of parks46 46 48 49 49 49 49 49 50 51Acreage of parks861 861 871 878 878 878 879 939 948 961Miles of hard surface trails30.4 31.7 32.4 35.6 35.6 38.6 39.1 39.4 44.1 44.1Planning and developmentLand Bank program- acres*51 51 51 49 49 49 49 41 41 41Land Bank program- yield of future affordable housing units*510 510 510 490 490 490 490 410 410 410TransportationTransit buses44 34 40 34 44 54 56 58 58 58Lane miles1,796 1,796 1,861 1,901 1,901 1,922 1,922 1,957 1,974 1,976Light & PowerUnderground distribution lines- miles837.5 851.8 864.0 874.8 897.1 920.3 946.3 936.7 948.7 955.1Overhead distribution lines- miles8.4 10.6 10.7 10.7 10.3 9.5 5.8 4.69 4.40 4.00Distribution substations5 6 7 7 7 7 7 7 7 7Distribution transformers8,226 8,357 8,453 8,655 8,827 8,882 9,015 9,138 9,176 9,252WaterWater mains and distribution lines- miles of pipe527 528 529 539 544 549 549 542 544 546Hydrants3,510 3,524 3,539 3,617 3,659 3,729 3,763 3,780 3,827 3,832Plant capacity- millions gallons/day87 87 87 87 87 87 87 87 87 87Raw water storage- acre feet7,161 7,161 7,161 7,161 7,161 7,161 7,161 9,100 9,100 9,100Treated water storage- million gallons35.5 35.5 35.5 35.5 35.5 35.5 35.5 36 34 34Water rights owned- avg yield in acre feet/year74,160 74,420 74,670 74,945 75,245 75,295 75,345 75,795 76,085 76,185WastewaterTrunk and collection- miles of pipe437 436 437 437 445 445 446 446 455 458Plants- treatment capacity29 29 29 29 29 29 29 29 29 29Biosolids facility- acres26,680 26,680 26,680 26,680 26,680 26,680 26,680 26,054 26,054 26,500Storm DrainageCity owned detention basins90 90 90 90 90 105 106 108 108 109City owned detention basins- acres320 320 320 320 320 330 321 325 325 537Regional drainage channels69 69 69 69 69 69 69 69 69 69Storm sewer manholes2,568 3,524 3,640 3,909 3,909 4,271 4,326 4,372 4,439 4,476Storm sewer pipeline- miles**220.0 224.2 232.0 237.0 241.0 247.0 177.0 178.0 181.5 182.4GolfGolf courses3 3 3 3 3 3 3 3 3 3City Park Nine- acres56 56 56 56 56 56 56 56 56 56Collindale- acres160 160 160 160 160 160 160 160 160 160SouthRidge-acres128 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 atdiscount to non-profit developers to build affordable housing projects.Land Bank code allows up to 12 dwelling units per acre; report has consistently used 10 bu's per acre**Miles for 2015 and prior includes storm drainage systems not maintained by the City. Miles for 2016 includes only City of Fort Collins maintained pipes.***Unclear definition on police stations. For last 20 years have had 2 stations and added an addition one in 2017****Police cars includes 5 motorcycles, 1 bearcat and 1 accident callout vehicle as of 2017 data*****Updated 2017 Underground distribution lines-miles, data was incorrect******Unknown history of police car data; Police and Operation Services reviewed Asset list, updated for 2018 figures*******Correction in calculating detention basin acres in 2019 with new GIS mapping and Maximo asset management data. OTHER SCHEDULES OTHER SCHEDULES City of Fort Collins Comprehensive Annual Financial Report 197 INDEX OF OTHER SCHEDULES A. Debt Continuing Disclosures under SEC Rule 15c2-12 Electric and Telecommunications Fund: History of Net Pledged Revenues and Pro-Forma Debt Service Coverage Exhibit B-1 History of Electric System Customers Exhibit B-2 Electric System Statistics by Customer Class Exhibit B-3 10 Largest Electric System Customers Exhibit B-4 Electric and Telecommunications - Budget to Actual Statement Supplementary Information p. 150 Electric and Telecommunications - History of Revenues, Expenses and Changes in Net Position Exhibit B-5 Electric and Telecommunications - Changes in Working Capital Exhibit B-6 Water Fund: History of Water System Customers Exhibit B-7 10 Largest Water System Customers Exhibit B-8 Water Rate Structures Exhibit B-9 Water Pledged Revenue Exhibit B-10 Water Fund - History of Revenue, Expenses and Changes in Net Position Exhibit B-11 Wastewater Fund: History of Wastewater Customers Exhibit B-12 Wastewater Rate Structures and Plant Investment Fees Exhibit B-13 Wastewater Fund - History of Revenues, Expenses and Changes in Net Position and Pledged Revenue Exhibit B-14 Wastewater Budget Summary and Comparison Supplementary Information p. 152 Wastewater Debt Service Coverage Statistical Section Exhibit A-12 Storm Drainage Fund: Storm Drainage - History of Revenues, Expenses and Changes in Net Position and Pledged Revenue Exhibit B-15 Storm Drainage Rate Changes 10 Years Exhibit B-16 Storm Drainage Debt Service Coverage Statistical Section Exhibit A-12 Urban Renewal Authority: History of Assessed Valuations in the Plan Area Exhibit B-17 Property Tax Collections in the Plan Area Exhibit B-18 Assessed Valuation of Classes of Property in the Plan Area Exhibit B-19 Largest Taxpayers in the Plan Area Exhibit B-20 Sample Mill Levy within the Plan Area Exhibit B-21 Estimated Overlapping General Obligation Debt Exhibit B-22 Urban Renewal Authority History of Revenues, Expenditures and Changes in Fund Balance Exhibit B-23 Outstanding Revenue Obligations Exhibit B-24 History of Assessed Valuations in the Plan Area Exhibit B-25 Property Tax Collections in the Plan Area Exhibit B-26 Assessed Valuation of Classes of Property in the Plan Area Exhibit B-27 Largest Taxpayers in the Plan Area Exhibit B-28 Sample Mill Levy within the Plan Area Exhibit B-29 Estimated Overlapping General Obligation Debt Exhibit B-30 Urban Renewal Authority History of Revenues, Expenditures and Changes in Fund Balance Exhibit B-31 Outstanding Revenue Obligations Exhibit B-32 Assessed Valuation of Classes of Property Exhibit B-33 Property Tax Levies and Collections Exhibit B-34 10 Largest Property Taxpayers in the City Exhibit B-35 Tax Levy Applicable to most Properties Located in the City Exhibit B-36 Sales & Use Tax Revenue Exhibit B-37 Taxable Sales by Category Statistical Section Exhibit A-5 General Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Exhibit B-38 Combined Statement of Debt Notes: E - Long-term Obligation City of Fort Collins Debt Service Requirements to Maturity Notes: E - Long-term Obligation Assessed Valuation, Debt and Debt Ratio Statistical Section Exhibit A-10 B. Compliance Item Local Highway Finance Report Exhibit C-1 198 City of Fort Collins Comprehensive Annual Financial Report History or Net Pledged Revenues and Pro-Forma Debt Service Coverage Exhibit B-1 $ 000's 2015 2016 2017 2018 2019 Gross Pledged Revenues (1)$ 125,326 $ 133,546 $ 137,106 $ 143,462 $ 144,975 Operation and Maintenance Expenses (2)114,156 122,822 122,757 129,626 127,735 Net Pledged Revenues 11,170 10,725 14,348 13,836 17,240 Combined Maximum Annual Principal and Interest Requirements (3)10,195 10,195 10,195 10,195 10,195 Pro-Forma Coverage 1.10 1.05 1.41 1.36 1.69 (3) Represents the combined maximum annual principal and interest requirements payable on the 2018 bonds ($10,195,000 in 2038). (1) Includes all Operating Revenues and Nonoperating Revenues, excluding transfers. (2) Generally includes all expenses properly allocable to the system pursuant to GAAP. Does not include depreciation or amortization, interest expense or transfers. City of Fort Collins Comprehensive Annual Financial Report 199 ` History of Electric System Customers Exhibit B-2 Years Electric Customers % Change 2010 65,507 1.2 2011 66,223 1.1 2012 67,212 1.5 2013 68,588 2.0 2014 69,621 1.5 2015 70,596 1.4 2016 71,327 1.0 2017 72,523 1.7 2018 74,585 2.8 2019 75,656 1.4 200 City of Fort Collins Comprehensive Annual Financial Report Electric System Statistics by Customer Class Exhibit B-3 2015 2016 2017 2018 2019 Electric sales in MWH Residential 485,337 495,471 485,351 508,875 501,259 Commercial & Traffic Signals 519,802 514,419 506,731 506,361 495,276 Industrial & Contract 463,409 493,830 506,951 501,693 487,420 Total 1,468,548 1,503,720 1,499,033 1,516,929 1,483,955 Electric Revenues Residential 47,083,536$ 50,029,684$ 50,959,274$ 53,027,343$ 54,457,591$ Commercial & Traffic Signals 41,679,100 42,879,865 43,738,751 44,288,930 45,842,050 Industrial & Contract 28,687,555 32,163,442 34,032,167 34,382,767 34,831,680 Total 117,450,191$ 125,072,991$ 128,730,192$ 131,699,040$ 135,131,321$ Average Customer Accounts Residential 61,738 62,770 63,760 65,303 66,865 Commercial & Traffic Signals 8,843 8,543 8,750 9,268 8,777 Industrial & Contract 15 14 13 14 14 Total 70,596 71,327 72,523 74,585 75,656 Average Annual Use per Residential Customer 7,861 7,893 7,612 7,793 7,497 Annual Peak Demand (MW)291 304 311 317 299 10 Largest Electric Utility Customers Exhibit B-4 For year ending December 31, 2019 Customers (1)Electric Charges % of Total Electric Charges University 11,159,840$ 8.3% High Tech Company 1 8,815,919 6.5% Industrial / Manufacturer 1 5,267,488 3.9% High Tech Company 2 4,212,969 3.1% City Government 2,580,779 1.9% School District 1,786,779 1.3% Industrial / Manufacturer 2 1,726,526 1.3% Medical 1,487,582 1.1% County Government 863,464 0.6% Industrial / Manufacturer 3 665,314 0.5% Sub-total 10 Largest Customers 38,566,662 28.5% All other customers 96,564,659 71.5% Total 135,131,321$ 100.0% (1) State laws prohibit disclosing the identity of the Enterprise's customers City of Fort Collins Comprehensive Annual Financial Report 201 Electric and Telecommunications Fund - History of Revenues, Expenses and Changes in Net Position Exhibit B-5 2015 2016 2017 2018 2019 OPERATING REVENUES Charges for services 117,450,191$ 125,072,991$ 128,730,192$ 131,699,040$ 135,142,673$ Other revenue 1,596,769 1,808,474 1,925,171 1,564,440 1,825,149 Total Operating Revenues 119,046,960 126,881,465 130,655,363 133,263,480 136,967,822 OPERATING EXPENSES Personal services 7,510,929 7,936,963 10,459,859 12,233,122 12,062,853 Contractual services 9,496,190 11,053,742 11,560,054 13,345,873 12,114,020 Commodities 89,287,299 94,439,663 91,471,848 94,795,217 94,279,254 Customer service and administrative charges 5,268,453 6,500,603 5,832,953 5,883,633 6,404,807 Other 2,593,227 2,890,540 3,432,567 3,368,557 2,874,322 Depreciation 8,646,806 9,209,164 10,325,278 11,277,691 11,675,416 Total Operating Expenses 122,802,904 132,030,675 133,082,559 140,904,093 139,410,672 Operating Income (Loss)(3,755,944) (5,149,210) (2,427,196) (7,640,613) (2,442,850) NONOPERATING REVENUES (EXPENSES) Earnings on investments 546,738 249,907 522,721 2,388,946 4,419,673 Intergovernmental 224,799 337,380 225,524 92,857 193,858 Gain (loss) on sale of capital assets 144,160 123,422 211,436 101,156 95,018 Interest expense (386,728) (324,879) (258,998) (3,020,485) (5,281,946) Gain (loss) on defeasance - - - (9,344) - Total Nonoperating Revenues (Expenses)528,969 385,830 700,683 (446,870) (573,397) Income (Loss) Before Contributions and Transfers (3,226,975) (4,763,380) (1,726,513) (8,087,483) (3,016,247) Capital contributions 5,731,923 6,414,998 5,490,709 7,708,773 3,492,813 Transfers in 179,000 67,000 - - - Transfers out (19,281) (103,715) (235,226) (235,846) (495,153) Change in Net Position 2,664,667 1,614,903 3,528,970 (614,556) (18,587) Net Position--January 1 199,453,840 201,087,113 202,702,016 206,479,763 205,865,207 Cumulative effect of GASB 68 and GASB 75 implementation (1)(2) (1,031,394) - 248,777 - - Net Position--January 1 (restated)198,422,446 201,087,113 202,950,793 206,479,763 205,865,207 Net Position--December 31 201,087,113$ 202,702,016$ 206,479,763$ 205,865,207$ 205,846,620$ Beginning in 2018, the exhibit includes both Light & Power and Broadband as a combined fund. (1) Effective January 1, 2015, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions-An amendment to GASB Statement No. 27 (GASB 68). GASB 68, which was retroactively applied, addressed accounting and financial reporting for pensions. As a result, the financial statements for December 31, 2014 were restated to apply the changes associated with the implementation to adjust the net pension liability. This resulted in a $1,031,394 reduction in net assets. (1) Effective January 1, 2017, the City adopted GASB Statement No. 75, Accounting and Financial Reporting for Post Employment Benefits Other than Pensions (GASB 75). GASB 75, which was retroactively applied, addressed accounting and financial reporting for pensions. As a result, the financial statements for December 31, 2015 were restated to apply the changes associated with the OPEB. This resulted in a $248,777 increase in net assets. 202 City of Fort Collins Comprehensive Annual Financial Report Electric and Telecommunications - Changes in Working Capital Exhibit B-6 2015 2016 2017 2018 2019 Current Assets 65,126,493$ 52,523,574$ 47,935,176$ 40,660,883$ 49,411,145$ Current Liabilities 13,701,093 15,754,103 14,418,380 15,591,759 16,786,257 Working Capital 51,425,400 36,769,471 33,516,796 25,069,124 32,624,888 Change in Working Capital (5,114,163)$ (14,655,929)$ (3,252,675)$ (8,447,672)$ 7,555,764$ Beginning in 2018, the exhibit includes both Light & Power and Broadband as a combined fund. History of Water System Customers Exhibit B-7 Years Commercial Total (at December 31)Residential Industrial Customers 2010 30,828 2,155 32,983 2011 30,903 2,171 33,074 2012 30,983 2,164 33,147 2013 31,131 2,217 33,348 2014 31,771 2,519 34,290 2015 32,229 2,515 34,744 2016 32,654 2,431 35,085 2017 32,600 2,679 35,279 2018 32,786 2,843 35,629 2019 32,870 2,899 35,769 10 Largest Water System Customers Exhibit B-8 Year Ending December 31, 2019 Customer (1) Water Used Thousands of Gallons Percent of Total Water Use Industrial 859,195 12.6% University 363,459 5.3% Industrial 294,096 4.3% City Government 122,404 1.8% Industrial 82,258 1.2% School District 81,904 1.2% County Government 38,780 0.6% Commercial 36,015 0.5% Industrial 30,923 0.5% Hospital 29,535 0.4% sub-total 10 largest 1,938,569 28.5% All other customers 4,858,417 71.5% Total 6,796,986 100.0% (1) State laws prohibit disclosing the identity of the Enterprise's customers City of Fort Collins Comprehensive Annual Financial Report 203 Water Rate Structures Exhibit B-9 Rates effective for 2019 A. Residential Rate per 1,000 gallons Monthly Base Charge Use 0-7,000 Gallons Use 7,001- 13,000 Gallons Use >13,000 Gallons Single family 17.87$ 2.768$ 3.180$ 3.658$ Monthly Base Charge Use 0-9,000 Gallons Use 9,001- 13,000 Gallons Use >13,000 Gallons Duplex 18.80$ 2.388$ 2.744$ 3.158$ B. Nonresidential Standard Use Charges Excess Use Charges Nov-Apr May-Oct Nov-Apr May-Oct Meter Size (inches) Monthly Base Charge Winter Fee per 1,000 gallons Summer Fee per 1,000 gallons Threshold per 1,000 gallons per month Winter Fee per 1,000 gallons Summer Fee per 1,000 gallons 3/4 16.18$ 2.2504$ 2.8122$ 100 3.2330$ 4.0439$ 1 45.12 2.2504$ 2.8122$ 300 3.2330$ 4.0439$ 1 1/2 122.70 2.2504$ 2.8122$ 625 3.2330$ 4.0439$ 2 184.91 2.2504$ 2.8122$ 1,200 3.2330$ 4.0439$ 3 282.02 2.2504$ 2.8122$ 1,400 3.2330$ 4.0439$ 4 442.75 2.2504$ 2.8122$ 2,500 3.2330$ 4.0439$ 6 858.89 2.2504$ 2.8122$ 2,500 3.2330$ 4.0439$ 8 1,517.31 2.2504$ 2.8122$ 2,500 3.2330$ 4.0439$ C. Plant Investment Fees Residential Type Fee Single Family $730 plus $0.36/sqft of lot area Duplex, Multi-Family, Mobile Home $530/living unit plus $0.26/sqft of lot area Non-Residential Water Meter (inches)Fee 0.75 7,940$ 1.00 20,960$ 1.50 43,520$ 2.00 72,470$ 3 and above based on peak day demand 204 City of Fort Collins Comprehensive Annual Financial Report Water Pedged Revenue ($000s)Exhibit B-10 2015 2016 2017 2018 2019 User charges for services $ 27,705 $ 29,776 $ 30,772 $ 33,723 $ 31,660 Plant investment fees 6,141 7,347 10,838 3,273 2,076 Other fees & charges 377 446 484 3,037 344 Investment earnings 785 343 787 1,116 2,464 Total Water System Revenue $ 35,008 $ 37,911 $ 42,881 $ 41,148 $ 36,543 Water Fund - History of Revenue, Expenses and Changes in Net Position ($000s)Exhibit B-11 2015 2016 2017 2018 2019 Operating Revenues Charges for services $ 27,705 $ 29,776 $ 30,772 $ 33,723 $ 31,660 Other revenue 288 417 389 504 310 Total Operating Revenues 27,993 30,193 31,161 34,227 31,969 Operating Expenses Personal services 6,819 7,308 4,748 8,773 7,597 Contractual services 6,867 6,287 1,841 7,201 6,962 Commodities 1,675 1,816 2,942 1,786 1,828 Administrative charge 2,983 3,666 7,592 2,971 3,700 Other 653 927 1,322 1,087 3,223 Capital asset impairments 1,305 ---- Depreciation 6,083 6,431 6,955 7,219 7,393 Total Operating Expense 26,385 26,435 25,399 29,037 30,702 Operating Income 1,607 3,758 5,762 5,189 1,267 Nonoperating Revenues (Expenses) Earnings on investments 785 343 787 1,116 2,464 Intergovernmental 6 Gain on sale of capital assets 89 29 95 2,533 34 Interest expense (486) (357) (240) (149)(60) Other expenses ----- Total Nonoperating Revenues(Expenses)387 14 642 3,500 2,445 Income Before Contributions and transfers 1,995 3,772 6,404 8,689 3,712 Capital contributions 6,141 7,347 10,838 3,273 2,076 Operating transfers in (out)209 (208) (427) (433)(7) Change in Net Position 8,345 10,911 16,815 11,529 5,781 Net Position--January 1 (restated)279,550 *287,895 298,806 *315,622 327,151 Net Position--December 31 $ 287,895 $ 298,806 $ 315,622 $ 327,151 $ 332,932 Totals may not add due to rounding * Restated 2015 beginning balance due to implementing GASB 68 and 2017 beginning balance due to implementing GASB 75. City of Fort Collins Comprehensive Annual Financial Report 205 History of Wastewater System Customers Exhibit B-12 Years Total (at December 31)Customers 2010 33,226 2011 33,305 2012 33,398 2013 33,555 2014 34,203 2015 34,425 2016 34,982 2017 35,184 2018 35,362 2019 35,409 Wastewater Rate Structures and Plant Investment Fees Exhibit B-13 Effective during 2019 A. Residential Fixed Variable Single family 18.97$ 3.686$ /kgal of WQA Duplex 21.75 3.266 /kgal of WQA Multi-family 2.92 per living unit 3.708 /kgal of WQA B. Commercial Fixed Variable 3/4" metered 10.07$ 3.491$ /kgal 1"23.25 3.491$ /kgal 1 1/2"46.79 3.491$ /kgal 2"80.06 3.491$ /kgal 3"127.93 3.491$ /kgal 4"202.04 3.491$ /kgal 6"885.68 3.491$ /kgal 8"1,022.65 3.491$ /kgal C. Plant Investment Fees Residential: Single family residence 3,537$ Duplex and Multi-family residence (per living unit)2,588$ Non-Residential: (based on water connection size) 3/4" 7,518$ 1"16,553$ 1 1/2"31,728$ 2"65,813$ 3"* 4"* *Calculated on an individual basis, but not less than the 2" charges 206 City of Fort Collins Comprehensive Annual Financial Report Wastewater Revenues Expenses and Change in Net Position and Pledged Revenues Exhibit B-14 Wastewater Pledged Revenues (in 000's) 2015 2016 2017 2018 2019 User rates $ 21,329 $ 22,064 $ 23,949 $ 24,412 $ 23,887 Plant investment fees 3,674 2,729 4,411 2,378 539 Other fees & charges 404 253 172 222 102 Investment earnings 438 439 553 768 1,477 Total Wastewater Revenue $ 25,846 $ 25,486 $ 29,085 $ 27,779 $ 26,004 History of Wastewater Revenues, Expenses and Change in Net Position (in 000s) 2015 2016 2017 2018 2019 Operating Revenues Charges for services $ 22,064 $ 23,297 $ 23,949 $ 24,412 $ 23,887 Other revenue 204 191 160 160 169 Total Operating Revenues 22,268 23,488 24,109 24,572 24,056 Operating Expenses Personnel services 5,010 5,451 5,612 6,805 5,359 Contractual services 3,026 4,061 3,984 3,628 3,656 Commodities 1,102 1,176 1,302 934 1,089 Administrative charge 2,159 2,679 2,607 2,624 2,114 Other 1,006 703 866 903 1,032 Depreciation 5,474 5,708 5,941 6,130 6,266 Total Operating Expenses 17,776 19,779 20,312 21,023 19,517 Operating Income 4,492 3,708 3,797 3,549 4,540 Nonoperating Revenues (Expenses) Earnings on investments 439 133 553 768 1,477 Gain on sale of capital assets 50 82 12 62 (68) Interest expense (1,127) (717) (675) (639) (592) Total Nonoperating Revenues(Expenses)(638) (502) (111) 191 817 Income Before Contributions and Transfers 3,854 3,207 3,686 3,739 5,357 Capital contributed 2,729 4,673 4,411 2,378 539 Transfers in 29 125 --- Transfers out (38) (72) (211) (226) (298) Change in Net Position 6,574 7,933 7,886 5,891 5,598 Net Position--January 1 (restated)156,029 *162,603 170,723 *178,609 184,500 Net Position--December 31 $ 162,603 $ 170,536 $ 178,609 $ 184,500 $ 190,098 Totals may not add due to rounding * Restated 2015 beginning balance due to implementing GASB 68 and 2017 beginning balance due to implementing GASB 75. City of Fort Collins Comprehensive Annual Financial Report 207 Storm Drainage - History of Revenues, Expenses and Change in Position and Pledged Revenue Exhibit B-15 ($000's) Storm Drainage Pledged Revenue 2015 2016 2017 2018 2019 Storm drainage fees $ 15,035 $ 15,620 $ 16,755 $ 16,971 $ 17,441 Capital contributions 1,526 4,530 1,088 1,874 710 Other Revenues 342 236 412 740 821 Total Storm Drainage Pledged Revenue $ 16,904 $ 20,387 $ 18,255 $ 19,585 $ 18,972 Storm Drainage Comparative Statement of Revenue, Expenses and Change in Net Position 2015 2016 2017 2018 2019 Operating Revenues Charges for services $ 15,035 $ 15,620 $ 16,755 $ 16,971 $ 17,441 Other revenue 47 86 208 56 49 Total Operating Revenues 15,082 15,707 16,964 17,027 17,490 Operating Expenses Personnel services 1,748 2,401 2,708 2,939 2,618 Contractual services 998 1,081 1,946 1,454 1,410 Commodities 316 195 192 189 235 Administrative charge 2,276 2,815 2,427 2,421 2,519 Other 296 278 297 202 223 Depreciation 2,603 2,633 2,717 2,829 2,960 Total Operating Expenses 8,238 9,404 10,287 10,034 9,965 Operating Income 6,844 6,303 6,677 6,993 7,525 Nonoperating Revenues (Expenses) Earnings on investments 295 135 328 414 770 Intergovernmental 1 --2 - Gain/loss on sale of capital assets 0 14 (125) 267 2 Interest expense (775) (661) (533) (403) (293) Total Nonoperating Revenues(Expenses)(479) (511) (329) 280 479 Income Before Contributions and Transfers 6,365 5,792 6,347 7,274 8,004 Capital contributions 1,526 4,530 1,088 1,874 710 Operating transfers In --3 -- Operating transfers out (247) (247) (623) (324) (411) Change in Net Position 7,644 10,075 6,816 8,824 8,303 Net Position--January 1 (restated)110,471 *118,115 128,190 *135,006 143,829 Net Position--December 31 $ 118,115 $ 128,190 $ 135,006 $ 143,829 $ 152,132 Totals may not add due to rounding * Restated 2015 beginning balance due to implementing GASB 68 and 2017 beginning balance due to implementing GASB 75. 208 City of Fort Collins Comprehensive Annual Financial Report Stormwater Rate Changes 10 years Exhibit B-16 Year Increase 2010 0% 2011 0% 2012 0% 2013 0% 2014 0% 2015 0% 2016 0% 2017 5% 2018 0% 2019 2% History of Assessed Valuations in the Plan Area Exhibit B-17 North College URA TIF District Levy Year Collection Year Total Assessed Valuation in Tax Increment Area Valuation Allocable to Base Amount Valuation Allocable to Increment 2010 2011 32,584,550 20,112,768 12,471,782 2011 2012 32,757,840 20,016,051 12,741,789 2012 2013 37,929,510 22,011,398 15,918,112 2013 2014 40,300,349 21,667,359 18,632,990 2014 2015 44,086,170 23,878,464 20,207,706 2015 2016 37,929,510 22,011,398 15,918,112 2016 2017 40,300,349 21,667,359 18,632,990 2017 2018 44,086,170 23,878,464 20,207,706 2018 2019 45,487,882 23,706,854 21,781,028 2019 2020 52,697,648 26,688,404 26,009,244 Source: Larimer County Assessor's Office City of Fort Collins Comprehensive Annual Financial Report 209 Property Tax Collections in the Plan Area Exhibit B-18 North College URA TIF District Levy Year Collection Year Anticipated Tax Increment (1) Current Tax Collections Collection Rate 2010 2011 547,237 524,486 96% 2011 2012 925,521 918,817 99% 2012 2013 1,309,288 1,284,690 98% 2013 2014 1,115,796 1,115,796 100% 2014 2015 1,138,877 1,138,877 100% 2015 2016 1,442,005 1,428,674 99% 2016 2017 1,666,784 1,655,585 99% 2017 2018 1,835,225 1,841,552 100% 2018 2019 1,984,898 1,984,898 100% 2019 2020 2,443,843 N/A N/A Source: Larimer County Assessor's Office (1) Increment amounts do not reflect abatements and other adjustments. Assessed Valuation of Classes of Property in the Plan Area Exhibit B-19 2019 Assessed payable in 2020 North College URA TIF District Class Total Assessed Valuation (1) Percent of Assessed Valuation Residential $ 14,944,689 28.36% Commercial 33,866,213 64.27% Vacant 2,776,075 5.27% Industrial 925,613 1.76% State Assessed 181,816 0.35% Agricultural 3,127 0.01% Natural Resources 115 0.00% TOTAL $ 52,697,648 100.00% (1) Includes real and personal property, excludes Exempt properties. Source: Larimer County Assessor's Office 210 City of Fort Collins Comprehensive Annual Financial Report Largest Taxpayers in the Plan Area Exhibit B-20 North College URA TIF District Taxpayer Name 2019 Assessed Valuation Percentage of Total Assessed Valuation Ft Collins Borrower LLC 4,933,605$ 9.36% Dillon Companies Inc. NKA Dillon Companies LLC 3,883,332 7.37% RMI2 Properties LLC 1,538,711 2.92% JOG LLC 1,141,846 2.17% North College LLC 797,430 1.51% Cole Ab Fort Collins Co LLC 782,362 1.48% The Kroger Co.731,557 1.39% JSPERGM Inc.701,974 1.33% 1415 Blue Spruce LLC 691,882 1.31% Kaufman And Robinson Inc.686,224 1.30% subtotal 10 largest tax payers 15,888,923 30.15% All Other Taxpayers 36,808,725 69.85% Total 52,697,648 100.00% Source: Larimer County Assessor's Office Total Assessed Valuation does not include tax exempt properties. Sample Total Mill Levy Exhibit B-21 North College URA TIF District Taxing Entity 2019 Mill Levy Poudre R-1 School District 56.000 Larimer County 21.863 City of Fort Collins 9.797 Health District of Northern Larimer County 2.167 Larimer County Pest Control 0.142 Poudre River Public Library District 3.000 Northern Colorado Water Conservation District 1.000 Total Mill Levy 93.969 Source: Larimer County Assessor's Office One mill equals one tenth of one cent. Mill levies certified in 2019 are for the collection of ad valorem property taxes in 2020. City of Fort Collins Comprehensive Annual Financial Report 211 Estimated Overlapping General Obligation Debt Exhibit B-22 North College URA TIF District ($000's) 2019 Assessed Entity Valuation (1)Obligation Debt $ 3,946,998 $ 480,235 $ 6,412 TOTAL $ 3,946,998 $ 480,235 $ 6,412 (1) Assessed values certified in 2019 are for collection of ad valorem property taxes in 2020. Sources: Larimer County Assessor's Office; and individual taxing entities (2) The percentage of an entity's outstanding debt chargeable to the Authority is calculated by comparing the assessed valuation of the portion overlapping the Authority to the total assessed valuation of the overlapping entity. Outstanding General Outstanding General Obligation Debt Attributable to the Authority(2) Percent Debt Poudre R-1 School District 1.34% History of Revenues, Expenditures and Changes in Fund Balances Exhibit B-23 North College URA TIF District 2015 2016 2017 2018 2019 REVENUES Taxes $ 1,162,119 $ 1,457,830 $ 1,689,687 $ 1,841,552 $ 1,989,781 Interest earnings 89,539 81,680 20,537 44,560 62,701 Total Revenues 1,251,658 1,539,510 1,710,224 1,886,112 2,052,482 EXPENDITURES Sustainability services (1) 150,771 166,132 3,068,793 252,212 173,161 Debt service Principal 550,000 560,000 575,000 595,000 615,000 Interest 529,461 518,461 455,843 403,100 378,891 Total Expenditures 1,230,232 1,244,593 4,099,636 1,250,312 1,167,052 Excess (Deficiency) of Revenues (1) Over (Under) Expenditures 21,426 294,917 (2,389,412) 635,800 885,430 OTHER FINANCING SOURCES (USES) Transfers out - - - (303,000) (300,000) Total Other Financing Sources (Uses) - - - (303,000) (300,000) Net change in Fund Balances (Deficit) 21,426 294,917 (2,389,412) 332,800 585,430 Fund Balances (Deficit)-January 1 1,571,750 1,593,176 1,888,093 (501,319) (168,519) Fund Balances (Deficit)-December 31(1) $ 1,593,176 $ 1,888,093 $ (501,319) $ (168,519) $ 416,911 (1) Excess deficiencies of Revenues Under Expenditures and negative fund balances are reflected because the category "Sustainability Services" includes, among other things, the entire amount of advances payable to the City in each year. The advances are to be repaid by property tax increment revenue to be received through 2029. However, modified accrual accounting standards do not allow the recognition of a taxes receivable assets beyond those due within the year advanced. 212 City of Fort Collins Comprehensive Annual Financial Report Outstanding Revenue Obligations Exhibit B-24 North College URA TIF District Issue Outstanding Principal 2013 URA Revenue Bond $ 7,650,000 City Loan Obligations RMI2 1,516,186 History of Assessed Valuations in the Plan Area Exhibit B-25 Midtown Prospect South URA TIF District Levy Year Collection Year Total Assessed Valuation in Tax Increment Area Valuation Allocable to Base Amount Valuation Allocable to Increment 2013 2014 9,583,850 8,691,259 892,591 2014 2015 12,409,380 8,691,259 3,718,121 2015 2016 13,860,667 8,940,341 4,920,326 2016 2017 13,940,740 8,940,341 5,000,399 2017 2018 15,685,812 9,865,392 5,820,420 2018 2019 16,489,868 9,799,401 6,690,467 2019 2020 19,398,891 11,436,743 7,962,148 Source: Larimer County Assessor's Office Property Tax Collections in the Plan Area Exhibit B-26 Midtown Prospect South URA TIF District Levy Year Collection Year Anticipated Tax Increment (1) Current Tax Collections Collection Rate 2013 2014 79,862 79,862 100% 2014 2015 332,338 332,338 100% 2015 2016 445,750 436,935 98% 2016 2017 456,299 448,013 98% 2017 2018 527,710 519,146 98% 2018 2019 601,514 590,963 98% 2019 2020 748,108 N/A N/A Source: Larimer County Assessor's Office (1) Increment amounts do not reflect abatements and other adjustments. City of Fort Collins Comprehensive Annual Financial Report 213 Assessed Valuation of Classes of Property in the Plan Area Exhibit B-27 2019 Assessed payable in 2020 Midtown Prospect South URA TIF District Class Total Assessed Valuation (1) Percent of Assessed Valuation Commercial $ 12,750,695 65.73% Residential 6,213,267 32.03% Vacant 194,431 1.00% Industrial 148,741 0.77% State Assessed 91,757 0.47% TOTAL $ 19,398,891 34.27% (1) Includes real and personal property, excludes Exempt properties. Source: Larimer County Assessor's Office Largest Taxpayers in the Plan Area Exhibit B-28 Midtown Prospect South URA TIF District Taxpayer Name 2019 Assessed Valuation Percentage of Total Assessed Valuation Acc Op (Fort Collins) LLC 5,479,548$ 28.25% Imago Enterprises Inc 2,822,480 14.55% WSRH Fort Collins LLC 1,280,420 6.60% Johnson Investments Inc 870,000 4.48% 1611 College LLC 780,941 4.03% 255 Johnson Storage LLC 559,864 2.89% Nelson-Remington LLC 471,830 2.43% Remington North LLC 431,114 2.22% Elevations Credit Union 397,126 2.05% Stuka LLC 371,461 1.91% subtotal 10 largest tax payers 13,464,784 69.41% All Other Taxpayers 5,934,107 30.59% Total 19,398,891 100.00% Source: Larimer County Assessor's Office Total Assessed Valuation does not include tax exempt properties. 214 City of Fort Collins Comprehensive Annual Financial Report Sample Total Mill Levy Exhibit B-29 Midtown Prospect South URA TIF District Taxing Entity 2019 Mill Levy Poudre R-1 School District 56.000 Larimer County 21.863 City of Fort Collins 9.797 Health District of Northern Larimer County 2.167 Larimer County Pest Control 0.142 Poudre River Public Library District 3.000 Northern Colorado Water Conservation District 1.000 Total Mill Levy 93.969 Source: Larimer County Assessor's Office One mill equals one tenth of one cent. Mill levies certified in 2019 are for the collection of ad valorem property taxes in 2020. Estimated Overlapping General Obligation Debt Exhibit B-30 Midtown Prospect South URA TIF District ($000's) 2019 Assessed Entity Valuation (1)Obligation Debt $ 3,946,998 $ 480,235 $ 2,360 TOTAL $ 3,946,998 $ 480,235 $ 2,360 (1) Assessed values certified in 2019 are for collection of ad valorem property taxes in 2020. Sources: Larimer County Assessor's Office; and individual taxing entities (2) The percentage of an entity's outstanding debt chargeable to the Authority is calculated by comparing the assessed valuation of the portion overlapping the Authority to the total assessed valuation of the overlapping entity. Outstanding General Outstanding General Obligation Debt Attributable to the Authority(2) Percent Debt Poudre R-1 School District 0.49% City of Fort Collins Comprehensive Annual Financial Report 215 History of Revenues, Expenditures and Changes in Fund Balances Exhibit B-31 Midtown Prospect South URA TIF District 2015 2016 2017 2018 2019 REVENUES Taxes $ 339,120 $ 445,852 $ 480,883 $ 529,741 $ 603,023 Interest earnings 9,900 5,689 3,743 18,833 22,542 Total Revenues 349,020 451,541 484,626 548,574 625,565 EXPENDITURES Sustainability services (1) 106,782 618,961 21,380 22,358 423,529 Debt service Interest 173,502 229,060 242,476 259,946 450,046 Total Expenditures 280,284 848,021 263,856 282,304 873,575 Excess (Deficiency) of Revenues (1) Over (Under) Expenditures 68,736 (396,480) 220,770 266,270 (248,010) OTHER FINANCING SOURCES (USES) Loan Issuance - - - - 4,990,000 Premium on Debt - - - - 338,863 Total Other Financing Sources (Uses) - - - - 5,328,863 Net change in Fund Balances (Deficit) 68,736 (396,480) 220,770 266,270 5,080,853 Fund Balances (Deficit)-January 1 (4,503,974) (4,435,238) (4,831,718) (4,610,948) (4,344,678) Fund Balances (Deficit)-December 31(1) $ (4,435,238) $ (4,831,718) $ (4,610,948) $ (4,344,678) $ 736,175 (1) Excess deficiencies of Revenues Under Expenditures and negative fund balances are reflected because the category "Sustainability Services" includes, among other things, the entire amount of advances payable to the City in each year. The advances are to be repaid by property tax increment revenue to be received through 2029. However, modified accrual accounting standards do not allow the recognition of a taxes receivable assets beyond those due within the year advanced. Outstanding Revenue Obligations Exhibit B-32 Midtown Prospect South URA TIF District Issue Outstanding Principal 2019 URA Revenue Bond $ 4,990,000 216 City of Fort Collins Comprehensive Annual Financial Report Assessed and Estimated Actual Values Exhibit B-33 City of Fort Collins Excludes Exempt Properties Assessment Total Estimated Year Assessed Value A ctual Value 2010 1,815,946,000 14,520,314,000 2011 1,792,231,000 14,456,330,000 2012 1,796,031,012 14,531,850,737 2013 1,884,693,625 15,272,734,901 2014 1,934,218,000 15,676,980,000 2015 2,229,600,072 18,146,317,000 2016 2,308,002,168 18,766,287,951 2017 2,581,037,435 23,119,631,947 2018 2,602,500,511 23,553,588,477 2019 2,945,432,922 27,486,157,451 Source: Larimer County Assessor's Office Property Tax Levies and Collections Exhibit B-34 City of Fort Collins Levy Tax Levy Collection Dollar Amount Dollar Amount Percentage Year(1)(Mills)(2) Year Levied Collected Collected 2010 9.797 2011 17,113,497 16,696,371 97.56 2011 9.797 2012 16,988,466 16,594,770 97.68 2012 9.797 2013 16,956,775 16,537,511 97.53 2013 9.797 2014 17,812,490 17,304,529 97.15 2014 9.797 2015 18,186,953 17,680,445 97.21 2015 9.797 2016 21,843,126 21,623,883 99.00 2016 9.797 2017 22,611,497 22,520,432 99.60 2017 9.797 2018 23,837,475 23,677,786 99.33 2018 9.797 2019 23,946,641 23,887,806 99.75 2019 9.797 2020 27,118,713 N/A N/A (1) Taxes for the year levied are collected in the following year. (2) One mill generates $1 of property tax revenue per $1,000 of assessed valuation. Source: Larimer County Treasurer's Office City of Fort Collins Comprehensive Annual Financial Report 217 Ten Largest Property Taxpayers of the City Exhibit B-35 2019 Assessed Valuation for Taxes Due in 2020 Taxpayer Assessed Valuation (Property in the City) Percentage of Total City Assessed Valuation Avago Technologies Wireless (USA) $ 115,308,246 3.91 Anheuser Busch LLC 49,984,108 1.70 Ramco-Gershenson Properties LP 32,138,919 1.09 Walton Foothills Holdings VI LLC 25,773,138 0.88 Anheuser-Busch Commercial 21,913,966 0.74 Woodward Governor Company 15,885,899 0.54 Amcap Harmony LLC 15,809,002 0.54 New Belgium Brewing Co. Inc. 14,629,019 0.50 Woodward Inc. 14,132,448 0.48 Public Service Co Of Colo (Xcel) 13,992,646 0.48 Sub-total 10 largest property taxpayers 319,567,391 10.85 All other property taxpayers 2,625,865,531 89.15 Total Assessed Valuation 2,945,432,922 100.00 Source: Larimer County Assessor's Office Total Assessed Valuation does not include tax exempt properties Present Tax Levy Applicable to Most Properties Located in the City Exhibit B-36 For 2019 Taxes Due in 2020 Governmental Unit Mill Levy City of Fort Collins 9.797 Larimer County 21.863 Health District of Northern Larimer County 2.167 Poudre River Public Library District 3.000 Larimer County Pest Control 0.142 Poudre School District R-1 56.000 Northern Colorado Water Conservancy District 1.000 Governmental Unit Mill Levy Thompson Valley Health Services District 1.762 Fort Collins Downtown Development Authority 5.000 Fort Collins General Improvement District No. 1 4.924 Larimer County GID No. 15 Skyview South 10.000 Foothills Metro District 67.512 Harmony Technology Park Metro District No. 2 25.000 South Fort Collins Sanitation District 0.470 Thompson R2-J School District 43.838 Fort Collins-Loveland Water District 1.500 I-25 Prospect Interchange 10.000 Source: Larimer County Assessor's Office Portions of the City are subject to additional mill levies due to their location within the following tax districts: 218 City of Fort Collins Comprehensive Annual Financial Report Sales and Use Tax Revenue Exhibit B-37 ($000's) Unrestricted Restricted Purpose 2.25% 0.25% 0.25% 0.25% 0.85% 3.85% Year General Fund Pavement Maintenance Capital Projects Natural Areas Keep Fort Collins Great Total 2010 57,887 5,554 5,554 5,554 - 74,549 2011 60,321 5,817 5,817 5,817 19,818 97,590 2012 68,074 6,596 6,596 6,596 21,752 109,614 2013 68,967 6,689 6,689 6,689 22,811 111,846 2014 79,803 7,800 7,800 7,800 25,885 129,088 2015 83,895 8,112 8,112 8,112 26,669 134,899 2016 84,039 8,198 8,188 8,216 27,447 136,087 2017 83,473 8,179 8,179 8,172 27,414 135,416 2018 85,347 8,286 8,286 8,407 27,887 138,213 2019 88,101 8,599 8,599 8,464 28,905 142,668 City of Fort Collins Comprehensive Annual Financial Report 219 General Fund - Comparative Revenues, Expenditures and Change in Fund Balance Exhibit B-38 Includes the sub-funds of Museum and Emergency Recovery $000's 2015 2016 2017 2018 2019 REVENUES Taxes $ 106,377 $ 108,843 $ 109,331 $ 113,488 $ 116,594 Licenses and permits 3,635 3,741 3,810 3,799 3,510 Intergovernmental 12,605 12,575 14,052 15,087 16,526 Fees and charges for services 9,209 10,133 9,506 9,825 9,794 Fines and forfeitures 2,774 2,152 2,034 2,046 1,764 Earnings on investments 1,008 502 1,160 1,618 2,930 Miscellaneous revenue 2,015 1,797 1,425 3,923 1,139 Total Revenues 137,623 139,742 141,317 149,785 152,257 EXPENDITURES Current operating Police services 32,707 34,736 36,927 39,117 41,777 Financial services 3,868 3,957 4,361 4,529 4,600 Community services *20,619 21,561 12,486 13,184 14,161 Planning, development and transportation 6,830 7,756 8,856 9,900 10,258 Executive, legislative and judicial 6,842 6,935 6,815 7,060 7,780 Information and employee *3,541 4,652 17,299 18,100 17,549 Sustainability services 7,831 7,913 6,728 5,720 5,656 Other 2,205 1,250 1,695 1,782 1,674 Intergovernmental Fire protection 19,383 20,557 24,012 25,010 26,716 Capital outlay 1,860 1,174 4,022 4,890 3,543 Debt service Principal 235 224 61 Interest 22 17 4 3 Total Expenditures 105,943 110,731 123,203 129,296 133,777 Excess (Deficiency) of Revenues Over (Under) Expenditures 31,680 29,011 18,115 20,488 18,480 OTHER FINANCING SOURCES (USES) Transfers in 619 955 1,678 1,368 2,297 Transfers out (34,193) (27,536) (25,967) (25,548) (41,061) Proceeds from issuance of long-term debt 23,865 Capital leases 44 Sale of capital assets 118 1 1,539 7 (40) Total Other Financing Sources (Uses)(33,411) (26,580) (22,750) (24,173) (14,939) Net Change in Fund Balance (1,731) 2,432 (4,635) (3,684) 3,541 Fund Balances-January 1 74,674 72,943 75,375 70,740 67,056 Fund Balance-December 31 $ 72,943 $ 75,375 $ 70,740 $ 67,056 $ 70,597 * Beginning in 2017 Facilities Operations moved from Community Services to Information and Employee Services 220 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: Fort Collins YEAR ENDING : December 2019 This Information From The Records Of (example - City of _ or County of _):Prepared By: Accounting Phone:970-416-2436 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle S tate 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)24,475,444 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:16,507,239 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 1,776,049 2. General fund appropriations 2,025,954 b. Snow and ice removal 3,936,238 3. Other local imposts (from page 2)34,844,642 c. Other 2,258,263 4. Miscellaneous local receipts (from page 2)6,239,366 d. Total (a. through c.)7,970,550 5. Transfers from toll facilities 4. General administration & miscellaneous 1,660,036 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 749,004 a. Bonds - Original Issues 16,132,740 6. Total (1 through 5)51,362,273 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)16,132,740 a. Interest 792,663 7. Total (1 through 6)59,242,702 b. Redemption 689,520 B. Private Contributions - c. Total (a. + b.)1,482,183 C. Receipts from State government 2. Notes: (from page 2)6,245,313 a. Interest D. Receipts from Federal Government b. Redemption (from page 2)2,006,998 c. Total (a. + b.) E. Total receipts (A.7 + B + C + D)67,495,013 3. Total (1.c + 2.c)1,482,183.00 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)54,326,639 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 1. Bonds (Refunding Portion)16,132,740 689,520 B. Notes (Total) A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 67,495,013 54,326,639 13,168,374 - Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) ITEM V. LOCAL ROAD AND STREET FUND BALANCE ITEM IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) AND STREET PURPOSES LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROADII. RECEIPTS FOR ROAD AND STREET PURPOSES City of Fort Collins Comprehensive Annual Financial Report 221 STATE: Colorado YEAR ENDING (mm/yy): December 2019 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 32,238 a. Interest on investments 837,611 b. Other local imposts: b. Traffic Fines & Penalties 1. Sales Taxes 26,500,181 c. Parking Garage Fees 2. Infrastructure & Impact Fees 4,298,393 d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 36,028 4. Licenses 356,042 f. Charges for Services 4,013,469 5. Specific Ownership &/or Other 3,657,788 g. Other Misc. Receipts 832,262 6. Total (1. through 5.)34,812,404 h. Other 519,996 c. Total (a. + b.)34,844,642 i. Total (a. through h.)6,239,366 (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 5,734,978 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 509,722 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify)613 f. Other Federal 2,006,998 f. Total (a. through e.)510,335 g. Total (a. through f.)2,006,998 4. Total (1. + 2. + 3.f)6,245,313 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 254,746 254,746 b. Engineering Costs 4,073,558 4,073,558 c. Construction: (1). New Facilities 1,533,234 1,533,234 (2). Capacity Improvements 10,700,989 10,700,989 (3). System Preservation 686,687 686,687 (4). System Enhancement & Operation 7,226,230 7,226,230 (5). Total Construction (1) + (2) + (3) + (4)20,147,140 20,147,140 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)24,475,444 24,475,444 (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