2013 Third Quarter
Financial Report
Table of Contents Overview........................................................... 1 General Fund................................................... 3 Arvada Center.................................................. 9 Parks Fund..................................................... 11 Special Revenue Funds................................13 Capital Improvements Fund......................... 15 Enterprise Funds........................................... 16 Internal Service Funds.................................. 22 City of Arvada Investment Report............... 25
overview
OVERVIEW
Overview While the majority of information in this report is positive, we would be remiss if we did not mention the historic rainfall event that occurred during the week of September 9, 2013. The City received rainfall amounts between five inches in central Arvada to fifteen inches in parts of western Arvada. Seventeen inches is the amount of rainfall that we expect to see in an entire year. While the City fared better than other parts of Colorado, this event serves to remind us of the importance of infrastructure improvements. The Ralston Creek and VanBibber projects both demonstrate the need for careful and continued infrastructure improvements that are accomplished through the City’s ten-year capital improvement plan. Many capital improvements may not seem important or may cause disruption during construction, but in the case of these two projects saved potential flooding for hundreds of residents. In addition, the costs of this event will reach over $1,000,000 which also serves as a reminder of the importance of establishing cash reserves. While all or a portion of these expenditures may be reimbursed through the Federal Emergency Management Agency, it will be necessary to upfront the majority of these expenditures. Without reserves, this type of event would have an immediate and serious impact on the services that the City provides to its residents. This is why the City maintains a reserve policy in all funds and employs a ten-year financial planning model. In the General Fund, sales and use taxes represent more than 60% of the total revenue budget. The positive trend of these revenues in the first two quarters continues in the third quarter. Sales tax collections are 5.7% over the same period in 2012. Auto and building use tax also show increases of over 8% and 23%, respectively, over 2012. As the following graph illustrates, the number of single-family building permits in 2013 is outpacing the activity from 2012 and at the end of the third quarter we have issued more single-family permits than the entire 2012 year.
1
Dollars
General Fund Building Revenue as of September $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 GF Building Revenue Single Family (Detached) Permits
400 320 240 160 80 0 2008 $2,691,371
2009 $3,120,461
2010 $3,446,002
2011 $3,182,772
2012 $4,044,857
2013 $4,873,086
79
40
114
99
253
360
services. In 2013, we will be using $8,750,000 of the fund balance to build two community stations. One station will be located in northeastern Arvada and the second station is located in the western area of Arvada. These stations should be operational in the first quarter of 2014.
The building activity also translates into the Water and Wastewater funds through increased tap fees. Tap fees account for $5,075,958 and $555,486 in the two funds, respectively. Although tap fees have increased in 2013, the largest source of revenue in the Water fund is based on the level of water that is consumed by residents. Unfortunately, the spring snow storms, the water restrictions in early summer and the rainfall event in September have all combined to reduce water consumption by 17% in 2013. Water revenue for 2013 is more than $2 million below 2012. This drop in revenue will result in the fund balance being lower than budgeted. In the third quarter, the City completed an intergovernmental agreement with Denver Water and established an escrow for $36 million that represents the first payment towards the Denver Water Moffat project which will provide the City up to 3,000 acre feet of water.
The third quarter results for the Arvada Center show that expenditures continue to outpace revenue by over $136,000. This gap is likely to grow by the end of the year, which will require additional funds to be transferred from the General Fund. The third quarter financial results continue to show the positives in the economy with increased sales tax, purchases of vehicles and new home building. The effects of the rainfall event did require additional resources to repair the hardest hit areas. However, because of the reserves that we maintain, we have been able to make the necessary repairs in a timely manner. With three months left in 2013, we are optimistic that the next three months will mirror the previous nine months.
Another fund that benefits from the increases in sales and use tax collections is the Police Tax Increment fund. This fund receives a .46 cent sales tax. These funds are used for expanded police
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general fund
general fund
General Fund Overview The General Fund pays for the City’s basic services. This includes police, street maintenance, planning, transportation planning, street light maintenance and costs, building activity and general administration. In addition, the General Fund also provides for the following: • Operational support to the Arvada Center • Operational support to the Parks Fund • General Debt Service payments • Transfer to the Capital Improvements Fund for new parks, transportation and other infrastructure projects
General Fund
2013 Budget
As of 9/30/13
As of 9/30/12
Beginning Fund Balance
$22,965,000
$22,965,000
REVENUES
$67,932,479
$48,739,995
$45,569,239
$65,649,288
$43,474,312
$41,022,518
3,217,466
-
4,875,541
JPPHA
-
155,000
1,083,333
AEDA
-
-
500,000
$68,866,754
$43,629,312
$47,481,392
EXPENDITURES Ongoing Capital
The following table provides a comparison of budgeted cash balances, revenues and expenditures to budget and prior year amounts in the same areas.
Expenditures 2013 Carryovers JPPHA Capital-Gold Line Improvements
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$
910,000
$
-
$
-
2,500,000
-
-
Street Maintenance
163,721
-
-
Other
106,805
-
-
Total Expenditures
$72,547,280
$43,629,312
$47,481,392
Income/Loss
(4,614,801)
5,110,683
(1,912,153)
Ending Fund Balance
$18,350,199
$28,075,683
As the table illustrates, we began the year with $22,965,000 in cash reserves. We budgeted $67,932,479 in revenues and $68,866,754 in expenditures. Since expenditures exceeded revenues, Council made a decision in 2012 to use $934,275 of cash reserves to balance the 2013 budget. At the end of 2012, we also had $3,680,526 included in the fund balance for projects that were not completed in 2012. Since appropriations lapse at the end of the calendar year, there are requests to re-appropriate these monies in the next year. On April 1, Council approved the carryover ordinance for project funds that needed to be re-appropriated. These amounts are shown in the carryover section of the table. Overall, the major revenue categories are continuing their positive trend. Sales tax growth is over 5% from the same period in 2012. The major revenue categories of sales tax, use tax, property tax and intergovernmental revenues are discussed in more detail in the “Revenue Highlights” section. Investment returns show no movement, and will therefore be substantially short of budget estimates. The investment section at the end of this report will provide details of the City’s investments. Expenditures through nine months in 2013 are less than expenditures in 2012. This is due to the one-time transfer of $500,000 to AEDA and a transfer of $1,083,333 to JPPHA for the purchase of land, both occurring in 2012. In addition, the timing of the transfer from the General Fund to the Capital Improvement Fund also accounts for the difference in expenditures. If the transfers are removed, operating expenditures are 6% more in 2013 than in 2012. This increase is expected as personnel-related expenditures were budgeted to increase 3.9% as a result of step and market increases, and non-personnel related expenditures increased an average of 3%. In addition, the timing of street maintenance activities is occurring earlier in 2013 than in 2012. Budgeted expenditures also include one-time expenditures of $450,000 for the comprehensive plan and historical survey.
Revenue Highlights The following section highlights the sources generated to meet the operating expenditures of the General Fund. The City’s revenue comes from many sources as illustrated in the graph below. Information about sales tax, use tax, property tax and intergovernmental revenues is detailed in the next few pages.
general fund REVENUE
Intergovernmental 7%
All Other 7%
Administrative Services Use Tax 4% 8%
Property Tax 7% Building Activity 5%
Sales Tax 55%
Utility Fees 7%
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Sales Tax Sales tax collections in 2013 are continuing the upward trend from 2012. The graph below shows actual sales tax collections from 2009 to 2013. Sales tax collections lag one month; therefore, collections through the third quarter represent sales tax collections for eight months. Sales tax receipts for the first eight months of 2013 are 5.7% above 2012 actuals. The original budgeted sales tax collections of $38,589,702 for 2013 represented a 3% increase over the 2012 budget. Because actual 2012 sales tax collections exceeded the 2012 budget, the revised tenyear financial plan increased the budget for sales tax by over $1.2 million. Sales tax collections are on track to meet the revised 2013 budget of $39,879,393.
sales tax collections
$40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Sales Tax
09/30/2009
09/30/2010
09/30/2011
09/30/2012
09/30/2013
$22,399,180
$22,684,401
$23,156,589
$24,552,902
$25,953,189
Use Tax The City has three primary use tax types: general, building and automobile. These are taxes paid in lieu of sales tax on purchases.
2013 Revised Budget $38,589,702
use tax collections $9,000,000 $8,000,000 $7,000,000
General use tax is $191,000 over 2012 actuals through the first nine months and should be close to the budget of $1.3 million.
$6,000,000
Building use tax for 2013 is at $2.3 million which has exceeded the 2013 budget amount of $1.8 million. The revised ten-year financial plan increased building use tax to $2.4 million.
$2,000,000
$5,000,000 $4,000,000 $3,000,000
$1,000,000 $0
09/30/2009
09/30/2010
09/30/2011 Building
09/30/2012
Auto
09/30/2013 2013 Revised Budget
General
Auto use tax collections for the first eight months of 2013 are 8.53% above 2012 actuals. The original budgeted auto use tax collections of $4,580,610 for 2013 represented a 7.1% increase over the 2012 budget. However, actual 2012 auto use tax exceeded the 2012 budget by over 12%. Therefore, the revised ten-year financial plan increased the budget for auto use tax to $5.044 million. Auto use tax collections are still on track to meet the revised 2013 budget.
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Property Tax The City’s property tax rate is 4.31 mills per $100 of valuation. In Colorado, the mill rate is placed on the assessed valuation. The following graph illustrates the year-to-date collections for the past four years and the current year.
property tax collections
Property tax is a stable revenue source for the City. Currently, property tax receipts are $75,000 above the 2012 receipts for the first nine months of the year, but may be slightly under the budget amount of $4.6 million.
$5,000,000
$4,500,000
$4,000,000 Property Tax
09/30/2009 $4,706,688
09/30/2010 $4,571,151
09/30/2011 $4,594,047
09/30/2012 $4,457,676
09/30/2013 $4,532,750
2013 Budget $4,600,000
Intergovernmental Revenues Highway Users Trust Fund (HUTF), the City’s share of State-collected gas tax revenue, and Road and Bridge, the City’s share of property tax collected by Jefferson County and dedicated to the maintenance of roads and bridges, have historically been two of the more stable revenue sources for the City. Combined, these revenues have averaged between $4.5 million and $4.7 million in the past five years and are budgeted for a little more than $4.7 million in 2013. Road and Bridge funds are disbursed quarterly with the largest two quarters being the first and second. The graph shows the first two disbursements received in April and July. The next two disbursements intergovernmental revenues will be received in October $5,000,000 and December. We are on pace to be under budget by $4,500,000 $35,000 or 4% for the year. $4,000,000 HUTF funds are received $3,500,000 monthly and the graph shows $3,000,000 eight months of revenue. This $2,500,000 revenue source is also on pace to be under budget for $2,000,000 2013. $1,500,000
$1,000,000 $500,000 $0
09/30/2009
09/30/2010
HUTF
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09/30/2011
09/30/2012
09/30/2013
Jefferson County
2013 Budget
Expenditure Highlights The largest expenditure in the General Fund is personnel costs which account for 52% of expenditures.
general fund expenditures
Services & Charges 10%
Debt Service 6%
Supplies & Expenses 7%
Miscellaneous 1%
Contracts 12%
Personnel 52%
Transfers 12%
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Salary and Benefit Savings Salary & Benefits Salaries & Wages
2013 Budget
As of 9/30/13
As of 9/30/12
$27,680,938
$18,487,580
$17,785,691
(861,394)
-
-
903,476
595,458
475,203
Group Insurance
4,701,740
3,105,420
2,811,347
Retirement
3,172,604
2,154,873
2,089,409
Medicare
321,853
218,550
207,817
Temporary Wages & SS
593,796
278,328
250,512
Other
332,149
259,304
257,641
$36,845,162
$25,099,512
$23,877,620
Vacancy Savings Overtime
Total
Public Works represents the bulk of the increase in Temporary Wage expenditures. Plowing by the Streets Division during this spring’s repeated snow events still represents the bulk of Overtime costs, with increases in the Police Department also contributing. Despite these increases, as well as six high-impact retirements thus far in 2013, the General Fund is currently on pace to meet the currently-budgeted Vacancy Savings total for 2013.
Fuel General Fund
2013 Budget
As of 9/30/13
As of 9/30/12
$536,447
$390,264
$372,503
202,185
129,337
128,987
50,204
42,172
42,237
200,929
115,351
99,732
Golf
49,580
37,377
62,806
Other
13,514
12,335
9,672
$1,052,859
$726,835
$715,938
Parks Police Tax Increments Utilities
Total Expenditures
Due to a software bug in the City’s fuel system installed last year, charges to various Departments were understated during the latter half of 2012 and well into 2013. The problem has since been corrected, but the necessary reconciliation added a total of $49,654 in 2012 fuel expenditures to 2013 actuals across all funds. So while the figures in this table reflect actual expenditures, they include some fuel consumption from as far back as July 2012. In the spring, both West Woods and Lake Arbor replaced their gasoline-powered carts with electric carts. The result has been a substantial drop in fuel consumption for the golf courses.
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arvada center
arvada center
Arvada Center Arvada Center
2013 Budget
Beginning Fund Balance
As of 09/30/13
Overall, contributed revenue continues to be a challenge. Individual and corporate donations have increased but Federal and foundation grant funding have decreased. The net is a decrease year over year of a little more than 3%.
As of 09/30/12
$232,000
$232,000
$6,138,453
$3,915,695
$3,819,521
SCFD
1,065,020
767,210
758,167
City Cash Transfer
1,643,122
1,232,341
1,232,341
City In-Kind Transfer
2,000,000
-
-
$10,846,595
$5,915,246
$5,810,029
REVENUES Generated
Total Revenues EXPENDITURES Ongoing
$8,844,820
$6,051,721
$6,073,411
2,000,000
-
-
$10,844,820
$6,051,721
$6,073,411
1,775
(136,475)
(263,382)
In-Kind Total Expenditures Income/(Loss) Ending Fund Balance
$
233,775
$
95,525
Revenue Highlights The 2013-2014 theater season opened with Camelot. Ticket sales were successful as the show ended as the third highest grossing season-opening musical. The current projections put year-end ticket sales at a 6% increase over 2012. Positive reaction to the 2013-2014 Theater Season has resulted in just under a 10% increase in season subscriptions.
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Education programs and the related tuition continue to have a successful year with a current year-over-year increase of greater than 6%. Increased summer camp attendance, along with a small tuition increase, are the main factors for the increase.
Expenditure Highlights Overall, expenditures are even compared to last year. Performing Arts has worked hard at reducing show costs without effecting quality. A few areas have seen increases over 2012 – Marketing, Education and salaries. Marketing’s increase is related to increased TV and radio media; Education’s increase is related to the growth in programming; and the salary increase is related to a 1.5 increase in FTEs. Overall, expenditures are still outpacing revenues by over 2% or $136,000. The Center is working on closing this gap in the 4th quarter. They are $130,000 ahead of last year at this time, but are seeing challenges in the 4th quarter. Pre-show sales for All Dogs Go to Heaven and the Christmas show are lower than in 2012.
SCFD Revenue $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0
09/30/2009
09/30/2010
09/30/2011
09/30/2012
09/30/2013
2013 Budget
The largest portion of the Scientific and Cultural Facilities District (SCFD) grant contributions was received in September. Currently, contributions are up 1% over last year. This was well below the prior quarter’s trend and it now looks like we will be under the budget projection and we may even see less revenue than in 2012. There is increased competition each year from other arts and cultural facilities but the Arvada Center continues to be the leader in the TIER 2 institutional category for funding.
City of Arvada Contributions $4,000,000 $3,500,000 $3,000,000 $2,500,000
In-Kind
$2,000,000
Cash
$1,500,000 $1,000,000 $500,000 $0
12/31/2009
12/31/2010
12/31/2011
12/31/2012
09/30/2013
2013 Budget
The cash support for the Arvada Center in 2013 is budgeted to stay at $1,643,122, which is the same level as 2012. This transfer is made monthly. The in-kind support is calculated at the end of the year and is on pace to exceed last year’s number of $2,097,497.
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parks fund
parks fund
Parks Fund Parks Fund Beginning Fund Balance
2013 Budget
As of 9/30/13
As of 9/30/12
$4,061,000
$4,061,000
$3,398,539
$1,979,572
$1,867,491
2,883,545
2,162,659
2,106,033
APEX Reimbursement
927,000
-
2,541
Other
184,618
141,946
134,642
$7,393,702
$4,284,177
$4,110,707
$7,408,892
$4,855,648
$4,817,854
-
-
-
$7,408,892
$4,855,648
$4,817,854
(15,190)
(571,471)
(707,147)
$4,045,810
$3,489,529
Revenues Open Space City Cash Transfer
Total Revenues Expenditures Ongoing Capital Total Expenditures Income/(Loss) Ending Fund Balance
11
Revenue Highlights Jefferson County Open Space receipts, which represent the largest source of revenue for the Parks fund, continue to trend up at 6% over 2012; however, year-to-date revenues receipts reflect seven months of revenue as this revenue source lags by two months. The Apex Park and Recreation reimbursement for services rendered is made at the end of the year. Overall, revenue projections continue as anticipated.
Expenditure Highlights Overall expenditures in 2013 are within 1% of year-to-date expenditures in 2012 and are on track to meet 2013 budget projections.
PARKS FUND REVENUE
$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-
09/30/2009 09/30/2010 09/30/2011 09/30/2012 09/30/2013 2013 Budget Open Space
Cash Transfer
12
APEX
special revenue fund SPECIAL REVENUE FUNDS
Special Revenue Funds Overview
Tax Increment Funds Overview
Special Revenue Funds account for revenues that are to be used for specific purposes. The following funds are considered special revenue funds:
There are two tax increment funds which account for the voter-approved sales tax increases to fund expanded police services. The first accounts for the .21 cent sales tax for police services and the second accounts for the .25 cent sales tax. Sources in the funds include sales tax, general use tax, auto use tax, building use and interest income. Since the tax increment is in addition to the City’s 3% sales tax, revenue trends in the tax increment fund will closely follow those in the general fund.
• Tax Increment Funds • Community Development • Housing
.21 and .25 Tax Increment Funds As of 9/30/12
.21 and .25 Tax Increment Funds
2013 Budget
Beginning Fund Balance
$12,898,000
$12,898,000
$6,132,531
$4,095,508
$3,855,627
1,148,832
1,035,421
890,983
51,168
162,145
98,873
$7,332,531
$5,293,073
$4,845,483
As of 9/30/13
Revenue Highlights
Revenues Sales Tax/Audit Revenue Use Tax Other Total Revenues Expenditures Ongoing
$7,106,518
$4,776,780
$4,728,867
Capital
8,000,000
1,932,177
-
$15,106,518
$6,708,956
$4,728,867
Income/(Loss)
(7,773,987)
(1,415,883)
116,616
Ending Fund Balance
$5,124,013
$11,482,117
Total Expenditures
13
The upward trend in revenue numbers continues to increase in the third quarter of 2013. In comparison to third quarter 2012, Sales Tax/Audit revenue increased by 6.22%, while Use Tax revenue increased by 16.21%. Recovered costs from grants for programs such as Enforcing Underage Drinking Laws (EUDL), a Federal grant, and Rocky Mountain High Intensity Drug Trafficking Association (HIDTA), a State grant, increased 1.32% or $42,732 from the same time period in 2012.
Expenditure Highlights Salaries increased in the third quarter 2013 by $146,024 with a small increase in overtime of $13,940. Additionally, group insurance and workers’ compensation actuals reflected a savings of over $113,000 in comparison to the same time period in 2012. The two new Community Stations are well underway with exterior construction almost complete at both locations. Parking lots and sidewalks should be finished in October with interior work to commence with the cold weather approaching. Anticipated occupancy is slated for March 2014.
Community Development Community Development Fund Beginning Fund Balance
2013 Budget
As of 9/30/13
Revenue Highlights
As of 9/30/12
$6,920,000
$6,920,000
$ 114,737
$ 309,825
638,000
374,688
254,165
City Cash Transfer
45,000
33,750
33,750
Interest/Other
19,500
7,211
46,151
Total Revenues
$ 817,237
$ 725,475
$ 374,687
$ 591,852
$ 335,890
$ 261,197
380,625
274,460
197,819
67,958
-
-
$1,040,435
$ 610,350
$ 459,016
(223,198)
115,125
(84,328)
$6,696,802
$7,035,125
Revenues Recovered Grants
$
40,621
expenditures Ongoing Essential Home Repairs Loans Total Expenditures Income/(Loss) Ending Fund Balance
Most of the jump in Recovered Revenues was due to a $150,000 repayment on a promissory note for a 2010 loan made to the JeffCo Housing Authority for repairs and upgrades to the Parkview Village Apartments. The increase in Grants Revenues is tied to the corresponding increase in Essential Home Repairs Expenditures in 2013.
Expenditure Highlights The timing of the City Cash Transfer to the Arvada Housing Authority due to changes in federal reporting practices, $57,042 provided to Family Tree for housing and family emergency supportive services, and start-up expenditures for the Residential Energy Efficiency Program constitute the increase in Ongoing Expenditures. Larger loans for the Essential Home Repair Program account for the increase in this category.
Arvada Housing Authority Arvada Housing Authority Beginning Fund Balance
2013 Budget
As of 9/30/13
$ 205,000
$ 205,000
$
$
As of 9/30/12
Revenues Recovered
18,295
$9,500
3,900,000
2,740,045
2,773,415
26,000
49,846
18,760
Interest/Other
5,464
477
1,455
Total Revenues
$3,950,642
$2,808,663
$2,803,129
$ 389,347
$ 284,966
$ 272,510
3,532,200
2,765,862
2,942,589
29,534
36,846
35,628
$3,951,081
$3,087,674
$3,250,728
(439)
(279,011)
(447,598)
$ 204,561
$ (74,011)
Grants City Cash Transfer
19,178
expenditures Ongoing Rents Transfers Total Expenditures Income/(Loss) Ending Fund Balance
14
Revenue Highlights The timing of the transfer from the Community Development Fund was moved up in 2013 per changes in federal financial reporting practices.
Expenditure Highlights The Arvada Housing Authority currently assists 479 families with monthly rent subsidies. This total is down from 500 as of September 30, 2012, thus the decrease in Rents Expenditures. These subsidies constitute approximately 90% of this Fund’s expenditures.
capital improvement Capital Improvement Fund
Capital Improvement Fund Overview The Capital Improvement Fund is where the City keeps track of capital projects for streets, traffic, parks, and the Arvada Center.
Revenue Highlights In 2013, the majority of the revenue in the CIP Fund will consist of transfers from the General Fund, Risk Management Fund and Lands Dedicated Fund. Other revenues include park development fees, grant revenue and contributions from other governmental agencies. The revenues also include a one-time transfer of $2,500,000 from the General Fund for the Gold Line improvements. Transfers from the General Fund have not been made in 2013, which explains the drop in revenues compared to 2012.
Expenditure Highlights Although CIP expenditures in 2013 are less than 2012, there are still many CIP projects in various stages of construction.
Capital Projects Capital Improvement Fund
2013 Budget
As of 9/30/13
As of 9/30/12
Beginning Fund Balance
$39,138,000
$39,138,000
$4,590,966
$3,095,587
$11,751,894
CIP Administration
$15,700,000
$1,942,736
$834,707
CIP Street Projects
250,000
463,416
1,571,800
CIP Traffic Projects
2,172,000
735,261
1,269,696
CIP Park Projects
2,769,974
1,268,634
4,881,319
678,500
255,302
184,284
Total Expenditures
$21,570,474
$4,665,349
$8,741,806
Income/Loss
(16,979,508)
(1,569,762)
3,010,088
Ending Fund Balance
$22,158,492
$37,568,238
REVENUES Total Revenues Expenditures
CIP Arvada Center Projects
15
CIP Administration projects include construction at Ralston Creek and expenditures for the City’s FOCUS process and the police radio system. Transportation projects include Ridge Road Bicycle/Pedestrian improvements, bridge repairs, installation of conduit and design work for the Kipling Parkway Underpass. The majority of expenditures in the Parks area include construction at Forest Springs, tap fees for Big Meadows and architectural services for Memorial Park and the restrooms at Long Lake Ranch. Projects completed at the Arvada Center include the Gallery floor, the sound system for the main stage and purchases of public art.
enterprise funds
ENTERPRISE FUNDS
Enterprise Funds Overview Enterprise funds account for activities that generate a fee that makes the entity self supporting. The five enterprise funds in the City are the Water Fund, the Wastewater Fund, the Stormwater Fund, the Golf Fund and the Hospitality Fund.
Water Fund Water Fund
2013 Budget
As of 9/30/13
As of 9/30/12
Beginning Fund Balance
$63,980,000
$63,980,000
$19,053,224
$12,757,767
$14,874,183
Tap Fees
3,204,761
5,075,958
2,662,486
Interest
1,190,885
313,292
417,515
667,875
5,583,368
1,280,882
$24,116,745
$23,730,385
$19,235,066
$16,176,618
$15,268,295
$11,112,937
Debt Service
2,265,300
178,926
195,773
Major Capital Maintenance
4,173,252
2,691,856
1,993,807
39,601,897
357,470
82,785
Total Expenditures
$62,217,067
$18,496,548
$13,385,302
Income/(Loss)
(38,100,322)
5,233,837
5,849,765
Ending Fund Balance
$25,879,678
$69,213,837
Revenues Water Charges
Other Total Revenues Expenditures Ongoing
Capital
16
Water Fund The Water Fund accounts for all activities with the scope of the water utility operations including administration, operations, capital water projects, financing and related debt service and billing and collection.
Revenue Highlights Year-to-date revenue from water sales is down 14.2%, with consumption down 17.0% over the same period in 2012. This decline can be attributed to a combination of Stage 2 water restrictions and anticipated surcharges in the summer, high levels of spring precipitation, and September flooding. It is worth noting that 2012 saw substantially elevated consumption levels. Compared to average year-to-date consumption for 2007-2011, 2013 totals were down only 0.6%. The spike in Other Revenues is due to a payment received from the Jefferson Center Metropolitan District (JCMD).
Expenditure Highlights Four million dollars of the year-to-date Ongoing Expenditures represent a payment to Consolidated Mutual for water rights in the JCMD, which was covered by a payment to the City from JCMD in January 2013. With that payment adjusted out, Ongoing Expenditures are up a mere 1.4%.
Expenditure Highlights (continued) Over $36 million of the Capital budget represents the first major payment to Denver Water for the Gross Reservoir Expansion project. This payment was made in September; however, since the cash was deposited into an escrow account, the transaction does not appear as an expenditure in 2013. Work to enable the extraction of water from the Leyden Caverns and water system capacity expansion in the northwest area of the City represent the increases in year-to-date Capital Expenditures. The timing of main replacement work and payments accounts for elevated Major Capital Maintenance Expenditures.
Water Consumption This chart, with data provided by Utilities, shows January through September water consumption since 2009. Water restrictions, a wet second quarter, and the torrents of September all contributed to the drop in consumption.
WATER CONSUMPTION
Thousands of Gallons
as of September (Thousands of Gallons) 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Water Consumption
2009 3,215,575
2010 3,573,218
2011 3,386,517
2012 4,261,633
2013 3,536,589
Water Tap Fees This chart shows January through September water tap fee revenue since 2009.
Dollars
WATER FUND - TAP FEES as of September $5,200,000 $4,800,000 $4,400,000 $4,000,000 $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $Tap Fees
2009 $1,163,649
2010 $1,127,111
2011 $1,683,340
17
2012 $2,662,486
2013 $5,075,958
Wastewater Fund due to the timing of billing cycle posting. The increase in Other Revenue is due to receipts from the Clear Creek Valley Water & Sanitation District for the use of the City’s sewer mains to transport its effluent to Metro Wastewater facilities.
The wastewater fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater. Wastewater Fund
2013 Budget
As of 9/30/13
As of 9/30/12
Beginning Fund Balance
$11,510,000
$11,510,000
$11,248,581
$7,572,637
$7,824,599
Tap Fees
235,258
555,486
356,045
Interest
566,480
56,203
73,312
Other
577,416
406,549
347,087
$12,627,735
$8,590,876
$8,601,044
$7,222,990
$5,417,243
$4,905,719
Ongoing
3,199,709
2,093,153
1,903,970
Major Capital Maintenance
2,540,762
1,533,822
583,657
154,500
-
-
$13,117,961
$9,044,218
$7,393,346
(490,226)
(453,342)
1,207,697
Expenditure Highlights Costs for the purchase of a new Manhole Spray Lining System and associated maintenance materials represent the vast majority of the increase in Ongoing Expenditures. The timing of payments for sewer main replacements represent the increase in Major Capital Maintenance. Charges from the Metro Wastewater Reclamation District, which are up over 10%, represent about three-fifths of total Wastewater expenditures.
Revenues Sewer Charges
Total Revenues
Wastewater Tap Fees
Expenditures
Capital Total Expenditures Income/(Loss) Ending Fund Balance
This chart shows January through September sewer tap fee revenue since 2009.
WASTEWATER FUND - TAP FEES as of September
Dollars
Metro District
$11,019,774 $11,056,658
Revenue Highlights Reflective of the incredible pace of residential building activity within the City, tap fee revenues through September are up over 56%. The apparent drop in Sewer Charge Revenue is
$560,000 $520,000 $480,000 $440,000 $400,000 $360,000 $320,000 $280,000 $240,000 $200,000 $160,000 $120,000 $80,000 $40,000 $Tap Fees
18
2009 $94,304
2010 $130,041
2011 $152,845
2012 $356,045
2013 $555,486
Stormwater Fund
Golf Fund
The Stormwater fund accounts for all activities necessary to maintain a stormwater management plan. Stormwater Fund
2013 Budget
Beginning Fund Balance
$9,316,000
As of 9/30/13
Golf Fund Beginning Fund Balance
As of 9/30/12
$2,388,844
$2,448,340
Capital Total Expenditures Income/(Loss) Ending Fund Balance
$3,015,108
$2,367,445
$2,722,485
1,119,828
999,562
1,001,476
201,294
150,971
164,606
66,480
55,302
1,924,178
$4,336,230
$3,517,977
$3,888,567
$3,223,775
$2,444,145
$4,372,519
$1,882,648
$854,051
$777,975
Golf Courses
$2,151,379
$1,560,372
$1,491,734
Restaurants
1,113,966
967,031
906,518
933,288
699,366
699,366
8,838,986
4,192,340
2,735,781
Administration
893,969
728,509
624,287
Capital
397,499
383,657
-
$11,654,922
$5,745,757
$4,213,121
$4,556,813
$3,639,570
$3,022,538
(8,431,147)
(3,301,611)
159,397
Income/(Loss)
(220,583)
(121,593)
866,028
$884,853
$6,014,389
Ending Fund Balance
$411,417
$510,407
City Cash Transfer Total Revenues Expenditures
Expenditures Debt Service
$632,000
Golf
$3,157,295
Total Revenues
Ongoing
$632,000
Restaurants
Other
As of 9/30/12
Revenues
$9,316,000
Revenues Stormwater Fee
2013 Budget As of 9/30/13
Total Expenditures
Revenue Highlights In August 2012, approximately $1.8 million was transferred from the Drainage Fund to the Stormwater Fund. These funds represent Unit Drainage Fees (UDFs) collected prior to 2004, as well as interest earned over time. This transfer reimbursed the Stormwater Fund for work completed by the Stormwater Utility within the drainage basins for which the UDFs were paid. The apparent drop in Stormwater Fee Revenue is due to the timing of billing cycle posting.
Expenditure Highlights Final work and payments on the Garrison Street Bridge Replacement and related Ralston Creek channelization continue to dominate expenditures in 2013. The increase in Ongoing Expenditures is primarily due to an increase in personnel costs.
Revenue Highlights West Woods rounds increased 4% in July and August over 2012 rounds played but decreased 35% in September due to unprecedented rains and flooding at West Woods Golf Course, and its closure while repairs were undertaken. Rounds lost due to the flood included West Woods Golf Course’s largest grossing revenue tournament event of the year and the tournament could not be rescheduled. As a result, year-todate total rounds are 14% below 2012 rounds played. Strong first and second quarter restaurant sales helped offset third quarter declines in food and beverage revenue (resulting from closure of the course) and are within 1% of 2012 year-to-date revenue. In short, increases in play in July and August were largely offset by September’s flood and its impacts.
Expenditure Highlights Expenditures continue to match budget assumptions, with a few exceptions. All 109 bunkers at West Woods Golf Course were damaged during the flood, resulting in extra time and resources needed for reconstruction. A total of 75 tons of new bunker sand had to be purchased. Capital expenditures reflect work done to renovate the interior of West Woods and electrical work to accommodate cart storage and equipment buildings at both West Woods and Lake Arbor.
19
Rounds by Type - January thru September 2012/2013 West Woods
Regular
Special
Tournament
Annual
Senior
Junior
Other
Total
2012
21,530
9,293
2,919
4,824
6,150
988
967
46,671
2013
20,140
6,716
2,200
5,344
4,172
740
835
40,147
-1,390
-2,577
-719
520
-1,978
-248
-132
-6,524
-6%
-28%
0%
11%
-32%
-25%
-14%
-14%
Lake Arbor
Regular
Special
Tournament
Annual
Junior
Other
Total
2012
18,871
5,504
844
15,903
595
1,672
43,389
2013
17,496
1,871
940
14,615
633
1,609
37,164
-1,375
-3,633
96
-1,288
38
-63
-6,225
-7%
-66%
11%
-8%
6%
-4%
-14%
20
Hospitality Fund Hospitality Fund Beginning Fund Balance
2013 Budget
As of 9/30/13
Revenue Highlights
As of 9/30/12
$ 674,000
$ 674,000
$ 973,117
$ 532,128
$ 628,378
Concessions
183,320
111,991
96,939
Miscellaneous
516,836
284,641
304,195
Total Revenues
$1,673,273
$928,760
$1,029,511
Administration
$ 369,719
$ 270,475
$ 202,394
Operations
1,279,389
741,988
827,046
185,386
-
-
25,952
19,464
-
$1,860,446
$1,031,927
$1,029,440
(187,173)
(103,167)
71
$ 486,827
$ 570,833
Revenues Banquets
Expenditures
Capital Transfer to General Fund Total Expenditures Income/(Loss) Ending Fund Balance
Year-to-date Hospitality Fund revenue is 11% below 2012 revenue for a similar period with highlights from the following market segments: a reduction of in-house Arvada Center events due to the Center’s decision to utilize outside catering for events; the Association market continues to be the strongest market segment, with an increase of 6.4% over year-to-date 2012; a 24% decrease in the corporate market segment due to the loss of major clients (Pinnacol Assurance moved their event to the southern metro area but will be back next year; Exempla and Kaiser ceased employer training programs when the delay in the Affordable Care Act implementation was announced); and, a decline in the wedding market segment. In addition, the Arvada Center kitchen was closed for the month of July for major repairs to the floor and roof, the first time the kitchen has been closed in 20 years.
Expenditure Highlights Year-to-date expenditures are tracking as projected. The most significant change from 2012 is the closure of the Arvada Center kitchen for the month of July. The capital budget amount of 185,386 is tied to the equipment replacement plan. This plan is reviewed in the fourth quarter of the year and will be expended during that time period.
The Arvada Center kitchen was closed for the month of July for major repairs to the floor and roof, the first time the kitchen has been closed in 20 years.
21
internal service
internal service funds
Internal Service Funds Overview We have four Internal Service Funds. These Funds charge for goods and services to each division that uses them. The Funds then pay for all associated costs of things such as purchasing insurance, vehicle purchases and maintenance, computer purchases and maintenance, and buildings maintenance.
Risk Management Risk Management Beginning Fund Balance*
2013 Budget
Overview As of 9/30/13
As of 9/30/12
$4,433,000
$4,433,000
2,010,729
1,507,762
1,728,048
67,980
110,751
82,158
Revenues Transfers Other Total Revenues
$2,078,709
$1,618,513 $1,810,206
$2,575,540
$1,231,828
$1,487,904
622,527
421,881
412,524
Total Expenditures
$3,198,067
$1,653,708
$1,900,428
Income/(Loss)
(1,119,358)
(35,195)
(90,222)
Ending Fund Balance
$3,313,642
$4,397,805
Expenditures RM Administration RM Operations
*Per GASB Statement 10, an additional $935,705 in cash is currently held in the Risk Management Fund to cover potentially incurred liabilities as of the beginning of the year. This figure was reached by Risk Management’s actuary.
22
The Insurance Fund, administered by the Risk Management Division of Finance, provides the means by which the City self-insures against loss. It is funded with contributions by all City divisions based on their levels and types of exposure. The Fund is also used for programs for loss prevention, the protection of City personnel and the preservation of City property and assets.
Revenue Highlights Due to continuing trends of relatively low claims costs and an effective focus on safety, charges to participating funds were reduced by nearly 13% for 2013. Higher year-to-date recovered costs account for the greater Other revenue.
Expenditure Highlights Year-to-date reductions in both Workers Compensation and General Liability claims expenditures represent the bulk of the drop in Administration expenditures. The Risk Management Administration budget includes a $573,500 transfer to the Capital Projects Fund for three safety-related projects at the Arvada Center in 2013: video security, front entry repair, and exterior lighting improvements. Preliminary work is underway for all three, but will continue into 2014.
Information Technology and Print Services Overview
Information Technology and Print Services
2013 Budget
As of 9/30/13
Beginning Fund Balance
$8,088,000
$8,088,000
Maintenance
$959,712
$729,825
$719,784
Replacement
896,767
738,755
668,993
Print Shop
437,801
242,843
222,659
$1,334,568
$981,598
$891,652
Maintenance
$1,149,621
$670,621
$657,586
Replacement
2,110,295
931,335
1,573,585
403,825
227,412
183,248
Total Expenditures
$2,514,120
$1,158,747
$1,756,833
Income/(Loss)
(1,179,552)
(177,149)
(865,181)
Ending Fund Balance
$6,908,448
$7,910,851
As of 9/30/12
Revenues
Total Revenues Expenditures
Print Shop
The Computer Fund provides resources for both ongoing maintenance and replacement of the City’s computers, network hardware, and other electronic infrastructure. It is funded with contributions by all City divisions based on their levels of use of this technology. The Print Shop Fund provides ongoing capital support for the City’s printing needs.
Revenue Highlights Revenue for the Computer Maintenance and Computer Replacement funds remains at the 2012 levels. This level is currently adequate for the existing technology covered under this fund. Revenues for the Print Shop come from charge backs for actual work performed and copies made from the multi-function devices.
Expenditure Highlights Expenditures for the Computer Maintenance fund remain on track to cover current maintenance on existing technology equipment. Budgeted Replacement fund expenditures are trailing due to delays in current projects such as the land mobile radios and computer replacement. Work on these projects will continue into 2014. Print Shop expenditures are on track, and are slightly higher than 2012 due to the needed replacement of an antiquated paper cutter.
Vehicles Vehicles
2013 Budget
As of 9/30/13
As of 9/30/12
Beginning Fund Balance
$6,522,000
$6,522,000
Maintenance Transfers
$2,196,638
$1,647,435
$1,599,530
Replacement Transfers
1,095,582
836,829
821,687
136,177
116,086
98,048
$3,428,397
$2,600,350
$2,519,265
Maintenance
$3,746,934
$1,534,871
$1,644,674
Replacement
1,645,963
1,169,297
1,254,101
Total Expenditures
$5,392,897
$2,704,168
$2,898,774
Income/(Loss)
(1,964,500)
(103,818)
(379,509)
Ending Fund Balance
$4,557,500
$6,418,182
Revenues
Other Total Revenues Expenditures
23
Overview The Vehicles Fund provides resources for the maintenance of City vehicles and heavy equipment, as well as their replacement when various factors demand their retirement. It is funded with contributions by all City divisions based on their vehicle inventory and use.
Revenue Highlights Charges for Fleet Maintenance services, which include personnel costs, rose 3% over 2012 levels. Increases for Vehicle Maintenance transfers for some, but not all, divisions net to an increase of 1.8%.
Expenditure Highlights Included in the Maintenance budget is $1.5 million for relocating Fleet operations on the eastern side of the City. Due to far higher than anticipated costs for remodeling the Culbertson Building, the project was cancelled for 2013.
Buildings Buildings Beginning Fund Balance
2013 Budget
As of 9/30/13
Arvada Economic Development Association
As of 9/30/12
Operations
$1,704,000 $1,704,000
Beginning Fund Balance
Revenues Replacement Transfers Other Total Revenues
$407,351
$305,513
$305,513
131,233
125,608
125,920
$538,584
$431,121
$431,433
Replacement
$168,782
$84,076
$333,166
Capital Lease
113,977
84,293
83,208
$282,759
$168,369
$416,373
255,825
262,752
15,059
$1,959,825
$1,966,752
Income/(Loss) Ending Fund Balance
As of 9/30/12
As of 9/30/13
$405,500
$405,500
Revenue
754,000
544,500
564,049
Expenditures
730,683
509,892
487,573
Ending Fund Balance
$428,817
$440,108
Revenue Highlights
Expenditures
Total Expenditures
2013 Budget
Revenue in the AEDA Operations Fund consists of a transfer from the general fund equal to the personnel and operating expenditures.
Expenditure Highlights Year-to-date expenditures in 2013 are at 67% of budgeted expenditures and are comparable to 2012 expenditures. Salaries and benefits represent the largest expenditure at approximately 52% of the expenditures. Program Beginning Cash Balance
Overview
Revenue
The Buildings Fund provides resources for maintaining major portions of facility infrastructure as replacement becomes necessary. The primary types of infrastructure are HVAC equipment, parking lots, roofs, and carpet. It is funded with contributions by all City divisions based on their facility occupancy.
Expenditures
Revenue Highlights Monthly replacement charges from contributing funds remain at 2012 levels.
Expenditure Highlights The Capital Lease Expenditures represent payments per an agreement with Siemens Building Technologies in 2004 for energy efficiency improvements at various City facilities. Due to scheduling issues, the replacement of the Food Bank parking lot has been postponed to 2014.
As of 9/30/13 $1,135,001 6,755 (137,561)
Ending Cash Balance
1,004,195
Reserved for AEDA Loan Program
(300,000)
Reserved for AEDA Small Business Grants
(200,000)
Reserved for Job Creation Program
(23,500)
New Entrepreneur
(19,500)
Commitments
(327,267)
Available Unallocated Cash Balance
$133,928
Revenue Highlights Revenues in 2013 consist of interest income and loan payments from two loans. The two loans are now paid off.
Expenditure Highlights Expenditures in 2013 reflect 21 small business grants and one shopping center grant. The grants were used to help Arvada businesses improve signage, landscaping and facades, and for site improvements.
24
investment report
City of Arvada Investment Report
Investment Portfolio Objectives Pursuant to the City’s investment policy, the primary objectives of the City’s investment activities, in priority order are safety, liquidity and yield. Consistent with this policy, the portfolio of securities is invested in US Treasuries, US Agency debt, local government investment pools (LGIP’s), commercial paper, and corporate debt subject to rating and concentration limits. The City’s investment portfolio is managed to provide sufficient liquidity to meet all reasonably anticipated operating cash needs without selling securities prior to maturity.
Investment Portfolio Overview The portfolio saw a year-to-date third quarter 2013 yield of .517% which is a decrease of 23 basis points (bps) when compared to the year-to-date third quarter 2012 yield of .745%. The benchmark yield for the City’s portfolio, as established by the investment policy, is a weighted benchmark of allowable securities. For the third quarter, the weighted benchmark return was .34%, constructed using the average 2013 monthly returns. The City’s portfolio yield continued to decline from the previous rolling four quarters, as evidenced by the considerable reduction in investment income and the unfavorable reinvestment environment. One contributing factor to these performance results is that the Fed has left rates at very low levels. The discount rate remains at .25% and the Federal Reserve has announced that we will continue to experience these rates most likely into 2015. The Federal Reserve will keep rates unchanged until the dynamics of our economy significantly change. The portfolio saw $51 million in investment calls during the first three quarters of the year due to the expiration of call “lockout” periods. These calls have resulted in reinvestment in lower-yielding securities which contributes to the reduction in investment income. Balances in LGIP funds have decreased during the third quarter due to the $36 million funding of an escrow account for the Denver Water Project late in the quarter. Our savings/cash balance has increased due to the fact that the City earns .30% earnings credit on balances in our accounts. This earnings credit offsets monthly banking fees and is higher than the current LGIP rates of .12%. Keeping this balance in our checking account reduces our banking fees but will allow us to quickly invest these funds as interest rates recover. Key information regarding the City’s portfolio is shown in the following tables and graphs:
25
PORTFOLIO PERFORMANCE
PORTFOLIO CHANGES
YTD SEP-13
YTD Sep-12
Difference
Interest Earnings
09/30/2013
09/30/2012
Difference
$1,012,646
$5,003,784
-$3,991,138
$844,124
$1,201,347
-$357,223
Money Market
Portfolio Yield
0.517%
0.745%
-0.228%
Savings/Cash
22,175,479
20,159,434
2,016,045
Benchmark Yield
0.340%
0.401%
-0.061%
CD
19,320,829
19,248,103
72,726
0
5,000,000
-5,000,000
28,022,079
53,916,152
-25,894,073
112,600,000
105,000,000
7,600,000
Tracking Error
+18bps
+34ps
-16bps
Corporate LGIP US Agency US Treasury
2,000,000
Total
ACCOUNT SUMMARY
$185,131,032
7,000,000
-5,000,000
$215,327,473
-$30,196,441
PORTFOLIO CHARACTERISTICS
Par Value
$185,131,033
Average Duration (yrs)
Book Value
$185,119,548
Average Coupon
0.576%
Market Value
$184,230,854
Average Cost YTM
0.665%
Average Market YTM
0.782%
Unrealized Gain/(Loss)
-$900,178
PORTFOLIO ALLOCATION Money Market, 0.5%
2.22
PORTFOLIO ALLOCATION
U.S. Agencies, 60.6%
35.0%
32.6% 25.9%
30.0% 25.0%
20.5%
20.0%
11.7%
15.0%
CD, 10.5%
6.5%
10.0%
LGIP, 15.2% Savings/ cash, 12.0%
5.0%
U.S. Treasuries, 1.1%
0.0%
26
0-.25
.5-1
2.7%
1-2 2-3 Maturity (yrs)
3-4
4-5
City of Arvada Investments as of September 30, 2013 The City’s portfolio as of September 30, 2013 is shown below, which includes credit ratings as of September 30, face value and interest earnings for 2013. Description
CUSIP/Ticker
Credit Rating 9/30/2013
Coupon Rate
Maturity Date
CHASE
N/A
0.15%
N/A
WELLSFARGO
N/A
0.15%
N/A
0.30%
Ending Face Amount/Shares
Interest/ Dividends
Savings/Checking JPMorgan Chase Bank Cash Wells Fargo Cash JP Morgan Checking
5,144,521.42
5,754.71
N/A
5,030,957.28
6,030.75
N/A
12,000,000.00
0.00
22,175,478.70
11,785.46
4,071,362.28
5,071.85
Sub Total Savings/Checking Certificate Of Deposit FIRSTBANK
CD72-73
N/A
0.25%
11/26/2013
FIRSTBANK
CD72-81
N/A
0.30%
11/30/2013
5,128,716.56
11,452.74
FIRSTBANK
CD8679
N/A
0.60%
05/05/2014
5,077,837.51
22,578.63
FIRSTBANK
CD53-43
N/A
0.30%
07/29/2014
5,042,912.73
11,261.13
19,320,829.08
50,364.35
18,020,749.66
2,126.89
Sub Total Certificate Of Deposit Local Government Investment Pool C Safe LGIP Colo Trust LGIP
CSAFE
AAAm
0.12%
N/A
COLOTRUST
AAAm
0.12%
N/A
Sub Total Local Government Investment Pool
10,001,329.74
2,093.73
28,022,079.40
4,220.62
1,012,645.67
5,803.40
1,012,645.67
5,803.40
Money Market CSIP MM
CSIP
AAAm
0.12%
N/A
Sub Total Money Market US Agency FFCB
3133EAH27
AAA
0.43%
08/13/2015
5,000,000.00
21,500.00
FFCB
3133EC2L7
AAA
0.44%
11/13/2015
5,000,000.00
11,000.00
FFCB
3133EC3M4
AAA
0.60%
11/21/2016
3,000,000.00
9,000.00
FFCB
3133EC940
AAA
0.64%
05/09/2017
5,000,000.00
0.00
FFCB
3133EAU22
AAA
0.68%
09/12/2016
5,000,000.00
34,000.00
FFCB
3133ECY57
AAA
1.58%
08/28/2017
3,000,000.00
0.00
FHLB
313381ZP3
AAA
0.43%
02/12/2016
5,000,000.00
10,750.00
FHLB
313381QX6
AAA
0.55%
07/25/2016
3,000,000.00
8,250.00
FHLB
313382TR4
AAA
0.60%
04/24/2017
5,000,000.00
0.00
FHLB
313382HD8
AAA
0.70%
12/27/2016
5,000,000.00
17,500.00
FHLB
313382HT3
AAA
0.75%
03/27/2017
5,000,000.00
18,750.00
FHLB
313382W25
AAA
0.75%
08/15/2017
5,000,000.00
0.00
FHLB
313380U88
AAA
0.80%
04/17/2017
3,000,000.00
12,000.00
FHLB
3133727K4
AAA
2.13%
12/28/2015
2,000,000.00
21,250.00
FHLB
313382F65
AAA
0.60%
03/27/2018
5,600,000.00
16,800.00
FHLB
313382FL2
AAA
0.63%
03/27/2018
5,000,000.00
15,625.00
FHLB
313382T78
AAA
0.55%
04/30/2018
3,000,000.00
0.00
FHLB
313382Z63
AAA
0.50%
05/22/2018
5,000,000.00
0.00
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Description
CUSIP/Ticker
Credit Rating 9/30/2013
Coupon Rate
Maturity Date
FNMA
3136G0W1
AAA
0.50%
02/22/2016
5,000,000.00
27,500.00
FNMA
3136FTM89
AAA
0.80%
02/24/2016
5,000,000.00
40,000.00
FNMA
3136G0RX1
AAA
1.00%
07/26/2017
5,000,000.00
50,000.00
FNMA
3136G1U49
AAA
1.00%
08/26/2016
3,000,000.00
0.00
FNMA
3136G0XD8
AAA
1.00%
08/28/2017
6,000,000.00
60,000.00
FNMA
3136FTDG1
AAA
1.05%
10/21/2015
5,000,000.00
26,250.00
FNMA
3136G0XW6
AAA
0.75%
02/28/2017
3,000,000.00
15,000.00
FNMA Step
3136G1LA5
AAA
0.50%
05/15/2018
3,000,000.00
9,375.00
112,600,000.00
424,550.00
2,000,000.00
26,250.00
2,000,000.00
26,250.00
185,131,032.85
522,973.83
Sub Total US Agency
Ending Face Amount/Shares
Interest/ Dividends
US Treasury T-Bond
912828KY5
AAA
2.63%
Sub Total/Average US Treasury Total / Average
06/30/2014
Investment Management Focus - 2013 2013 continues to be a struggle for the capital markets. We will continue to monitor the two items of focus we have highlighted below. Diversification of Maturities: We will continue to keep LGIP balances at levels to meet operating needs to capture attractive interest rates. We will focus on a blended strategy which calls for emphasis in short-term positions as well as long-term positions (5 years in the City’s case), but also staggering maturities in between to smooth the revenue stream. This will allow ample cash should the City experience unexpected needs, allow us to take advantage of better coupons in longer maturity buckets and the ability to capitalize on investment opportunities if/when yields begin to recover. Agency spreads are tighter, callables will get better yield: Call provisions are a tool used by issuers to refinance debt at a more attractive rate. Our focus will be to purchase callable securities with a call “lockout” period of six months or more to enhance investment income over the LGIP funds, which are currently yielding 12bps.
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Finance Department • 8001 Ralston Road • Arvada, Colorado 80002 (720) 898-7120 • www.arvada.org
Contributors: Lisa Yagi, Interim Finance Director Bryan Archer, Controller Ryan Adler, Budget Analyst Deanne Gibboney, Budget Analyst Arlene Martinez, Executive Assistant