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2013 Year-End

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........................................... 17 Internal Service Funds.................................. 25 City of Arvada Investment Report............... 29


overview

OVERVIEW

2013 Overview The Financial Report for the City of Arvada provides an un-audited overview of the major funds and a comparison of revenues and expenditures to the budget. This is not meant to be a complete accounting but a quick look at the highlights. 2013 was a positive year for revenues throughout the City of Arvada but especially in the General Fund. Sales Tax revenues finished the year strong, up 5.91% over 2012. Auto use tax was up 12% over 2012 as automobile sales in the State of Colorado reached a five-year high. Building use tax continues its strong run, up 20.9% over 2012. Single-family permits reached a 14-year high with 427 permits issued in 2013 alone.

Dollars

General Fund Building Revenue $6,500,000 $6,000,000 $5,500,000 $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

2009 $5,170,100

2010 $4,201,763

2011 $3,896,438

2012 $5,137,622

2013 $6,072,408

64

151

125

321

427

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While the increase in revenues certainly contributes to the City’s resources, the City is reluctant to add services or additional personnel based on the increased revenues as some of these revenues will not be sustainable over the long term. The City will, however, use the additional revenue to fund one-time capital projects that will benefit the community such as the Olde Town Transit-Oriented Development (TOD) improvements.

$1,000,000 for the first time in history. The summer concert series programming, right mix of marketing and increased overhead were the most significant challenges. Knowing that the City’s additional cash contribution to the Arvada Center is not sustainable over the ten-year financial plan, the Center spent much of 2013 working on the future of their governance and the appropriate mix of use and programming for the building.

The intensified building activities did lead to increases in tap fees for the Water and Sewer funds. The tap fees are the main source for capital improvements in these funds. Unfortunately, the largest producer of revenue in the Water fund is the sale of water. In 2013, water sales were down 14% with consumption down 17.4%. Normally, this would be of great concern but we have to remember the events of 2013. Spring brought high levels of participation, summer started with stage 2 water restrictions and September brought us an historical rainfall. Sewer sales were also affected by the reduced water usage, down 9% compared to budget. The City did deposit $36 million into an escrow account representing the first payment towards the Denver Water Moffat Dam project. This will provide the City up to 3,000 acre feet of water.

The Parks fund continues to expand the City’s inventory of parks with the completion of Britton, Wolff and Griffith Station Parks; the ongoing work on Ralston Central, Memorial and Long Lake Parks; and the planning for Ladybug, Lew Walsh and Yankee Doodle Parks. Needless to say, they are committed to the Parks, Trails and Open Space master plan that states: all residents of Arvada have a neighborhood park within one-half mile and a community park within two miles of their homes. The Internal Service Funds account for the costs of the City’s insurance, vehicle purchases and maintenance, computer purchases and maintenance, and building maintenance. All of these have healthy funds balances and are accumulating monies to replace assets based on a planned replacement schedule. Major purchases in 2013 included replacement of 15 additional police vehicles with the new Ford Interceptors, a jet/vacuum truck, a street sweeper, implementation of new budgeting software and the move to a new City-wide radio system.

The Tax Increment funds also benefitted from the increases in sales, use, auto and building use taxes, similar to the General Fund. These funds receive .46 cent sales tax, dedicated to police services. The construction of the two sector police stations, one on the east side of the City and one on the west side of the City, was completed in early 2014. A majority of the $8,750,000 budgeted for the two stations was spent in 2013. Even with the large expenditures related to the community stations, the funds were able to maintain their 11% required reserve balance.

As 2013 comes to a close, the story of the City’s finances is mostly a positive one. We updated the ten-year Capital Improvement Plan and financial plans, weathered the historic September rain storms, began construction on two community police stations, continued the work related to the Gold Line and TOD development projects and started the major undertaking of moving from a line item to a performance budget based on programs and services (nicknamed FOCUS). This project included City Council identifying four major FOCUS areas and 27 specific strategic results they expect the City to accomplish in the next six years.

The Arvada Center had an up and down year. They were able to increase season ticket subscribers, had the third most successful season opening musical in their history (Camelot) and Education revenues eclipsed

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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 • Transferto the Capital Improvements Fund for new parks, transportation and other infrastructure projects The following table provides a comparison of budgeted fund balances, revenues and expenditures to actual amounts in 2013. We have included the original 2013 budget adopted in October 2012 and the 2013 revised budget which was a result of the ten-year financial planning model that was completed in the third quarter 2013.

GENERAL FUND

General Fund

2013 Budget

2013 Revised (10-year plan)

2013 Actual

Beginning Fund Balance

$22,965,000

$22,965,000

$22,965,000

REVENUES

$67,932,479

$70,510,960

$73,426,565

$67,956,754

$65,522,495

$64,910,519

910,000

1,610,000

155,000

2013 Gold Line TOD Improvements

-

2,500,000

2,500,000

2013 Supplemental Appropriation

-

870,409

870,409

$68,866,754

$73,417,689

$69,991,337

JPPHA

-

-

1,455,000

Carryovers to 2014

-

-

666,256

One time Items added in 2014

-

-

886,820

2014 Gold Line TOD Improvements

-

-

3,150,000

$68,866,754

$73,417,689

$76,149,413

(934,275)

(2,906,729)

3,435,228

$22,030,725

$20,058,271

$20,242,152

11,707,348

12,481,007

11,898,527

7,577,264

8,343,625

$ 6,813,739

$ 7,396,219

EXPENDITURES Ongoing ONE-TIME EXPENDITURES JPPHA

2013 Expenditures MONEY DEDICATED FOR 2014

Total Expenditures Income/(Loss) Ending Fund Balance Goal (17% of Expenditures) Excess/(Deficiency) Use of Fund Balance 2014-2022

3


As the table illustrates, we began the year with a $22,965,000 fund balance and, after completing the ten-year financial plan, anticipated ending 2013 with a fund balance of $20,058,271. The actual fund balance will be $20,242,152 after the 2013 actual results along with the recommended additions to the 2014 budget are taken into account. The General Fund ended 2013 with very positive results. Revenues finished 2013 almost $3 million ahead of budget with sales tax, use tax, auto use tax and building revenues accounting for over $2 million of the increase. On the expenditure side, the General Fund spent about $3.4 million less than was budgeted. Of this amount $2,121,256 were monies set aside in the 2013 budget for projects that were not completed in 2013 which will need to be carried over into 2014. $1,455,000 of this amount relates directly to activities for JPPHA. Because of additional revenues, there are also additional one-time expenditures that are being recommended as an addition to the 2014 budget. We are only recommending the addition of one-time expenditures as the majority of increased revenues are considered a one-time increase and would not support ongoing expenditures. There were $886,820 in one time expenditures that were presented to council during approval of the 2014 budget that will be added in 2014. In addition, as planning of the Gold Line has continued, the City has found that there is a shortage of resources for the preferred option of the parking structure and related improvements. We are recommending that $3,150,000 be directed towards this shortage in 2014. With these additions, the General Fund will still maintain more than its fund balance reserve requirement of 17% of expenditures.

GENERAL FUND REVENUE

Sales Tax 49%

Property Tax 6%

Use Tax 2%

Auto Use Tax 7% Other 20% Franchise Fees 6%

Interest 1%

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Court Fines & Fees 2%

Building Use Tax & Permits 7%


Sales Tax In 2013 sales tax collections increased 5.91% over 2012. The top five sales tax producing categories — Grocery Stores, Department Stores, Utilities & Cable Television Providers, Retail Hardware Stores, and Restaurants — all showed increases over 2012. The Grocery Stores category experienced the largest increase finishing 2013 8.4% over 2012. Telecommunications providers and Clothing Stores showed slight decreases in 2013. Of the major sales tax producing categories, these are the only two that showed decreases.

SALES TAX COLLECTIONS $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $-

2009 $34,584,747

2010 $34,776,789

2011 $35,852,374

2012 $37,954,667

2013 $40,205,021

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. In 2013 new automobile sales in Colorado reached a five-year high. The City’s automotive use tax collections reflected increased sales, 12.0% over 2012. Building use tax collections increased by an impressive 20.9%, which was spurred by the increase in new home construction in 2013. General use tax showed the largest growth of the three categories, increasing by 27.3%.

USE TAX COLLECTIONS

$10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $General

2009 $1,278,837

2010 $1,374,997

2011 $1,511,848

2012 $1,220,977

2013 $1,554,343

Auto

$3,929,577

$3,981,079

$4,340,794

$4,804,227

$5,379,579

Building

$2,042,532

$1,732,770

$1,780,442

$2,385,633

$2,884,866

5


Property Tax The City maintains one of the lowest property tax rates in the Denver Metro Area with a mill levy of 4.31. In Colorado, the mill is placed on the assessed value. Property tax collections in 2013 were $43,060 below the budgeted amount. However, as real property is only appraised every odd-numbered year, tax collections trail behind actual changes in values.

PROPERTY TAX COLLECTIONS $5,000,000 $4,500,000

The City of Arvada maintains one of the lowest property tax rates in the Denver Metro Area.

$4,000,000

Property Tax Revenue

$3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $-

2009 $4,770,519

2010 $4,637,622

2011 $4,643,015

2012 $4,500,376

2013 $4,556,940

Intergovernmental Revenues This category is made up of two revenue sources, Highway Users Trust Fund (HUTF), which is the City’s share of state-collected gas tax revenue, and Road and Bridge, which is the City’s share of property tax collected by Jefferson County and dedicated to the maintenance of roads and bridges. Combined, these revenues have averaged just under $4.6 million in the past three years. In 2013, we received a little over $4.5 million or 3% less than our budget. Road and Bridge revenues were down 16% in 2013 compared to 2012 and HUTF was up less than 1%. Costs of street maintenance continue to escalate. In 2012, we saw asphalt-related items rise 9%. This trend continued in 2013, with an average of a 10% increase. As costs continue to rise, added pressure is put on other revenue sources to help fill in the increasing shortage.

INTERGOVERNMENTAL REVENUES

$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

2009

2010

HUTF

6

2011

2012

Jefferson County

2013


GENERAL FUND EXPENDITURES

Miscellaneous 1%

Transfers 18%

Debt Service 5% Personnel 50%

Contracts 10%

Supplies and Expenses 7% Services and Charges 9%

The City budgets 694.95 full-time benefited employees.

7


Salary and Benefit Savings Salary & Benefits Salaries & Wages

2013 Budget

2013 Actual

$27,681,938

$27,069,269

(861,394)

-

963,476

855,448

Group Insurance

4,701,740

4,579,470

Retirement

3,172,604

3,147,425

Medicare

321,853

320,770

Temporary Wages & SS

587,203

394,997

Other

332,149

361,729

$36,899,569

$36,729,109

Vacancy Savings Overtime

Total

Despite elevated Overtime Expenditures in Public Works and Public Safety, as well as six high-impact retirements in 2013, the General Fund met the budgeted Vacancy Savings total for the year.

Fuel General Fund

2013 Budget

2013 Actual

$536,447

$499,649

202,185

167,255

50,204

52,593

174,429

148,722

Golf

49,580

36,721

Other

13,514

15,645

$1,026,359

$920,585

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 fuel expenditures to 2013 actuals across all Funds. 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 Beginning Fund Balance

2013 Budget

2013 Actual

$ 232,000

$ 232,000

$ 5,788,453

$ 5,255,717

SCFD

1,065,020

1,028,585

 ity Cash TransferC Original

1,643,122

1,643,122

 ity Cash TransferC Additional

350,000

405,000

2,000,000

2,117,329

$10,846,595

$10,449,753

REVENUES Generated

 ity In-Kind C Transfer Total Revenues EXPENDITURES Ongoing In-Kind Total Expenditures Income/(Loss) Ending Fund Balance Goal (11% of Expenditures) Excess/(Deficit)

$ 8,844,820

$ 8,332,317

2,000,000

2,117,329

$10,844,820

$10,449,646

1,775

107

233,775

232,107

1,192,930

1,149,461

$ (959,155)

$ (917,354)

The Arvada Center experienced a topsy-turvy year in 2013. There were many positives along the way including: increased season subscribers, Camelot, SCFD and education. The challenges included: programming of the summer concert season, contributed revenue, productions costs related to the theater shows, the correct marketing mix and overhead.

City of Arvada Contributions $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

2009 2010 2011 2012 2013

Cash

In-Kind

Total

When the books were closed on the year, the Center needed an additional $405,000 in the form of a supplemental cash transfer from the General Fund to make ends meet. The total cash contributed from the General Fund to the Center for 2013 was $2,048,122. An additional $2,117,328 of in-kind support was provided, for total General Fund support of $4,165,450 for 2013 or a 5.5% increase over 2012.

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The 2013-2014 Theater Season generated positive reaction with a 10% increase in season subscribers. The show lineup was one that created excitement as evidenced by the 6.85% increase in ticket sales. Season opener Camelot outsold the prior season opener by 42.5% and went on to become the third most successful season-opening musical. Lone Tree Arts Center decided to not renew their contract for a traveling theater performance, resulting in $350,000 of lost budgeted revenue. SCFD revenues were flat compared to last year, with an increase of only $1,720. This was a disappointment as the budget called for a 3% increase. Greater competition in the Tier II market lead to the reduction.

SCFD Revenue $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0

2009

2010

2011

2012

2013

Contributed revenue decreased in total from 2012 by 8.91% or around $25,000. One-time donations were the cause of this reduction. There is a positive in this revenue source as individual contributions have increased over 2012 by 6.04%. This is a direct cause of the 2013-2014 subscription “Friends of the Center� campaign. The summer concert series in 2013 was a major challenge as the concert promoter NIPP was scheduled to put on 14 shows but was only able to program eight shows. This had a ripple effect throughout the Center, causing lost budgeted revenue potential estimated at $470,000, lost attendance of 7,450 and reduced momentum. Finally, Education completed a very successful year with total revenues topping $1 million dollars for the first time! This is an increase of 6.17% over 2012. Program reasons for the increase include increased summer camp attendance, Arts Day programming and small tuition increases. The Performing Arts division worked hard to reduce show expenses. They were successful in the second half of 2013 and look to continue this model for the rest of the 2013-2014 Theater Season and build on it for the 2014-2015 Theater Season. This will be an ongoing challenge for the Center. Marketing expenditures are up 11.82% or $170,000 over 2012. The addition of more TV media and the radio launch of the current season lead to this increase. The Center is constantly working on the right mix to increase ticket sales. The Center added some staff back in 2013 to help with programming. This included the hiring of an Executive Director and moving an Accounting Technician from part-time to full-time. The staff will be further expanding in 2014 with the hiring of a Chief Development Officer. This staff will help the Center position itself better for the challenges ahead.

10


parks fund

PARKS FUND

Parks Fund Parks Fund Beginning Fund Balance

2013 Budget

2013 Actual

$4,061,000

$4,061,000

$3,398,539

$3,537,126

2,883,545

2,883,545

APEX Reimbursement

927,000

828,696

Other

184,618

195,059

$7,393,702

$7,444,426

$7,645,022

$7,165,805

-

10,786

$7,645,022

$7,176,591

(251,320)

267,835

$3,809,680

$4,328,835

840,952

789,425

$2,968,728

$3,539,410

REVENUES Open Space City Cash Transfer

Total Revenues EXPENDITURES Ongoing Capital Total Expenditures Income/(Loss) Ending Fund Balance Goal (11% of Total Expenditures) Excess/(Deficit)

11

Revenue Highlights There are four major revenue categories in the Park Fund: CityAttributable Jefferson County Open Space (Open Space) Funds; Transfer from the General Fund; Reimbursement for services provided to the Apex Park and Recreation District (City-Apex Intergovernmental Agreement); and Other Revenue, including interest earnings, Majestic View Nature Center program revenues, and revenue from lake recreation programs. All four categories performed as expected. Open Space Funds exceeded projections as sales tax collections exceeded original projections, and the Apex Park and Recreation District reimbursement was less than budgeted as fewer special projects were requested.

Expenditure Highlights The growing season began with mandatory watering resrictions and ended in a major flood event that damaged 24 parks. As a result, savings occurred in the parks water budget, but $42,000 was spent to repair parks damaged by the flood waters. Newly completed parks came on line and an attendance record was established for the annual 4th of July Fireworks Show. Total Parks Fund expenses were less than budgeted, with the largest savings in personnel, professional services and contracts.


PARKS FUND REVENUE

$9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-

01/01/2009

01/01/2010

01/01/2011

Open Space

Cash Transfer

01/01/2012

01/01/2013

APEX

An attendance record was established for the annual 4th of July Fireworks Show.

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special revenue funds 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 .21 and .25 Tax Increment Funds

2013 Budget

2013 Actual

Beginning Fund Balance

$12,898,000

$12,898,000

$6,274,165

$6,325,324

1,347,832

1,508,937

186,768

246,839

$7,808,765

$8,081,100

Ongoing

$7,152,118

$6,854,046

Capital

8,750,000

6,077,920

$15,902,118

$12,931,965

Income/(Loss)

(8,093,353)

(4,850,865)

Ending Fund Balance

$4,804,647

$8,047,135

1,749,233

1,422,516

$3,055,414

$6,624,619

Revenue Highlights 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 53% or $35,977 from year-end 2012. Sales Tax/Audit revenue increased by 5.69%, and Use Tax revenue also increased by 16.88% for a combined total of $558,665 for year-end 2013.

REVENUES Sales Tax/Audit Revenue Use Tax Other Total Revenues

Expenditure Highlights The capital improvement expenditure reflects $6,077,920 for the construction of two community police stations to enhance the department’s sector policing plan. The community stations were constructed in the West Woods and Lake Arbor neighborhoods and opened in late February 2014. Each community station’s location is strategically placed within the neighborhood to enhance police public partnerships to reduce crime and disorder. Both stations are full-service police facilities, providing 24-hours-per-day/7-days-per-week police services to their assigned neighborhood. Community rooms at each station are available free of charge for public meetings.

EXPENDITURES

Total Expenditures

Goal (11% of Total Expenditures) Excess/(Deficit)

13


Community Development Community Development Fund Beginning Fund Balance

2013 Budget $6,920,000

Arvada Housing Authority Arvada Housing Authority

2013 Actual

Beginning Fund Balance

$6,920,000

$114,737

$387,622

638,000

688,180

City Cash Transfer

45,000

45,000

Interest/Other

19,500

8,534

Total Revenues

$817,237

$1,129,336

Grants

Recovered Grants

Essential Home Repairs Loans Total Expenditures Income/(Loss) Ending Fund Balance

$ 205,000

$ 205,000

$

$

19,178

21,177

3,900,000

3,602,526

26,000

149,846

Interest/Other

5,464

591

Total Revenues

$3,950,642

$3,774,140

$415,347

$428,285

3,506,200

3,306,480

29,534

47,229

$3,951,081

$3,781,994

(439)

(7,854)

$204,561

$197,146

City Cash Transfer

EXPENDITURES

EXPENDITURES Ongoing

2013 Actual

REVENUES

REVENUES Recovered

2013 Budget

$1,164,012

$846,379

390,625

314,818

4,941

-

$1,559,578

$1,161,197

(742,341)

(31,860)

$6,177,659

$6,888,140

Ongoing Rents Transfers Total Expenditures Income/(Loss) Ending Fund Balance

Revenue Highlights

Revenue Highlights

Much of the surplus 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 surplus in Grants Revenues is tied to the City’s use of CDBG funding for the Memorial Neighborhood Park Revitalization project.

Expenditure Highlights

The jump in Transfers Revenue reflects an increase in financial support from the Community Development Fund to offset reductions in federal funding for the Arvada Housing Authority.

The Arvada Housing Authority currently assists 474 families with monthly rent subsidies. These subsidies constituted approximately 87% of the Fund’s expenditures in 2013.

Expenditure Highlights Much of the gap between budgeted and actual expenditures represents appropriation for the CDBG funding for the Memorial Park project, the first phase of which will be completed in 2014.

EOC ENERGY ASSISTANCE 2009-2013 Dollars (Grants)

$60,000 $50,000 Total Dollars

The City directly receives funding from Energy Outreach Colorado (EOC), a nonprofit corporation, and disburses it to low income residents of Arvada as assistance with costs related to energy. Since 2011, the City received supplemental funding from EOC, which accounts for the increase in dollars and grants in the past three years. The lower dollar total for 2013 is due to less supplemental funding received by the City.

$40,000 $30,000 $20,000 $10,000 $0 Dollars

14

2009 $22,026

2010 $24,309

2011 $48,800

2012 $52,000

2013 $44,212


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 consisted of transfers from the General Fund, Computer Fund, Insurance Fund and Lands Dedicated Fund. Other revenues include park development fees, grant revenue and contributions from other governmental agencies.

Expenditure Highlights The majority of expenditures in this fund in 2013 relate to the construction of various park projects. The largest project is the 20-acre Ralston Central Park. Upon completion of the Garrison Street Bridge in the spring of 2013, construction of the park started soon after and when finished will include a spray park, horse shoe courts, restrooms, two age-related playgrounds, a memorial garden and a shaded picnic area. Some of the other park projects include Forest Springs, Memorial Neighborhood Park Revitalization and restrooms at Long Lake Ranch. Design of the Kipling Parkway Underpass also started in 2013 and is supported, in part, by a $1,600,000 grant from Denver Regional Council of Governments. The Arvada Center also started work on projects related to video security improvements, exterior lighting improvements and replacement of the front entry plaza, all funded by the Insurance Fund. There were two large internal City projects that started in 2013 — the police radio system and the FOCUS performance-budgeting initiative. These projects are ongoing and should be finished in 2014.

Reserved Funds The CIP fund ended 2013 with a fund balance of over $44 million and has confirmed grant revenues of $9 million that will be received upon completion of the projects. Reserves for projects total over $53 million.

The Garrison Street Bridge construction project was completed in Spring of 2013.

15


Capital Projects Capital Improvement Fund Beginning Fund Balance

2013 Budget

2013 Actual

$39,138,000

$39,138,000

$ 8,231,614

$10,142,089

Other revenue

76,600

5,849,885

Total Revenues

$ 8,308,214

$15,991,974

CIP Administration

$17,380,000

$ 5,616,092

CIP Street Projects

285,000

883,450

CIP Traffic Projects

2,193,600

1,371,669

CIP Park Projects

6,250,622

2,141,343

678,500

329,175

Total Expenditures

$ 26,787,722

$ 10,341,729

Ending Fund Balance

$ 20,658,492

$44,788,245

REVENUES Transfers in

EXPENDITURES

CIP Arvada Center Projects

Anticipated Grant Revenue

$ 8,917,924

Assigned for Projects: CIP Administration

$ 26,290,383

CIP Buildings

834,951

CIP Street Projects

8,175,506

CIP Traffic Projects

6,578,868

CIP Park Projects

10,094,113

CIP Arvada Center Projects

675,138

8% Reserve

827,338

Total Assigned for Projects

$53,476,297

Ending Fund Balance

$229,872

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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 Water Fund

2013 Budget

2013 Actual

Beginning Fund Balance

$64,119,000

$64,119,000

$19,053,224

$16,982,267

Tap Fees

3,204,761

7,896,550

Interest

1,190,885

383,367

Other

4,667,875

5,913,875

$28,116,745

$31,176,059

$20,176,618

$19,914,102

Debt Service

2,265,300

2,259,565

Major Capital Maintenance

4,173,252

3,911,485

39,601,897

2,269,688

Total Expenditures

$66,217,067

$28,354,841

Income/(Loss)

(38,100,322)

2,821,219

Ending Fund Balance

$26,018,678

$66,940,219

8,352,767

8,215,962

$17,665,911

$58,724,257

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.

REVENUES Water Charges

Total Revenues

Revenue Highlights Revenue from water sales was down 14% year-over year, with consumption down 17.4% 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 with average annual consumption between 2007 and 2011, 2013 totals were down 8.1%. Among the Other Revenues is a $4 million pass-through payment related to water rights acquisition received from the Jefferson Center Metropolitan District (JCMD).

EXPENDITURES Ongoing

Capital

Goal (25% of Ops + Debt Svc) Excess/(Deficit)

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%. 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. Other Capital work in 2013 included preparation of Leyden Caverns for water extraction, as well as water system capacity expansion in the northwest area of the City.

17


Water Consumption This chart, with data provided by Utilities, shows annual water consumption since 2009. The threat of potential water restrictions, a wet second quarter, and the torrents of September all contributed to the drop in consumption.

WATER CONSUMPTION (Thousands of Gallons)

Thousands of Gallons

6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Water Consumption

2009 4,577,112

2010 5,150,842

2011 5,049,729

2012 5,700,412

2013 4,707,585

Water Tap Fees This chart shows annual water tap fee revenue since 2009.

Dollars

WATER FUND - TAP FEES $8,000,000 $7,600,000 $7,200,000 $6,800,000 $6,400,000 $6,000,000 $5,600,000 $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 $1,185,036

2010 $1,785,928

2011 $2,394,111

18

2012 $4,378,473

2013 $7,896,850


Wastewater Fund The wastewater fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater.

Wastewater Fund Revenue Highlights

Wastewater Fund

2013 Budget

2013 Actual

Beginning Fund Balance

$12,011,000

$12,011,000

$11,248,581

$10,175,837

Tap Fees

235,258

849,001

Interest

566,480

75,369

Other

577,416

807,070

$12,627,735

$11,907,277

$7,222,990

$7,222,990

Ongoing

3,199,709

2,931,776

Major Capital Maintenance

2,540,762

1,950,704

154,500

-

$13,117,961

$12,105,470

(490,226)

(198,193)

$11,520,774

$11,812,807

3,240,865

3,026,367

$ 8,279,908

$ 8,786,440

REVENUES Sewer Charges

Total Revenues EXPENDITURES Metro District

Capital Total Expenditures Income/(Loss) Ending Fund Balance Goal (25% of Ops + Debt Svc) Excess/(Deficit)

19

Sewer Tap Fee Revenues remain at historically high levels due to continued residential construction. Sewer Charges came in under budget due to decreased consumption. 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.

Expenditure Highlights Treatment charges from the Metro Wastewater Reclamation District represent about three-fifths of total Wastewater expenditures. Costs for the replacement, relocation, and modification of wastewater lines in the Gold Line Corridor were among the Major Capital Maintenance Expenditures.


Wastewater Tap Fees This chart shows annual sewer tap fee revenue since 2009.

Dollars

WASTEWATER FUND - TAP FEES $880,000 $840,000 $800,000 $760,000 $720,000 $680,000 $640,000 $600,000 $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

2009 $128,576

2010 $232,062

2011 $343,561

20

2012 $834,078

2013 $849,001


Stormwater Fund The Stormwater fund accounts for all activities necessary to maintain a stormwater management plan.

Stormwater Fund Stormwater Fund Beginning Fund Balance

2013 Budget

2013 Actual

$9,338,000

$9,338,000

$3,157,295

$3,165,247

66,480

53,793

$3,223,775

$3,219,040

$1,882,648

$1,168,285

933,288

932,488

8,838,986

4,529,044

$11,654,922

$6,629,817

Income/(Loss)

(8,431,147)

(3,410,776)

Ending Fund Balance

$

906,853

$5,927,224

2,815,936

2,100,773

$(1,909,082)

$3,826,450

REVENUES Stormwater Fee Other Total Revenues EXPENDITURES Ongoing Debt Service Capital Total Expenditures

Goal (25% of Ops + Debt Svc) Excess/(Deficit)

Revenue Highlights The City’s Stormwater Utility Fee Revenue, which represents nearly all revenue for the Stormwater Fund, came in almost exactly on budget. The rate for the Stormwater Utility Fee has not changed since 2009.

Expenditure Highlights The Garrison Street Bridge Replacement and related Ralston Creek channelization dominated Stormwater Expenditures in 2013. Final odds and ends should be wrapped up in early 2014. The revised 2013 Budget included the original funding dedication for the Garrison Street Bridge Replacement, which had been contemplated to deplete the fund balance below the Fund’s target in the short term. However, the Stormwater portion of the overall project came in well under budget.

21


Golf Fund Golf Fund Beginning Fund Balance

2013 Budget

2013 Actual

$ 633,000

$ 633,000

Golf Courses

$3,015,108

$2,710,560

Restaurants

1,119,828

1,212,398

201,294

201,294

$4,336,230

$4,124,252

Golf Courses

$2,211,379

$2,106,340

Restaurants

1,113,966

1,259,046

Administration

893,969

901,787

Capital

397,499

370,057

$4,616,813

$4,637,231

(280,583)

(512,979)

$ 352,417

$ 120,021

507,849

510,095

$ (155,432)

$ (390,074)

REVENUES

City Cash Transfer Total Revenues EXPENDITURES

Total Expenditures Income/(Loss) Ending Fund Balance Goal (25% of Total Expenditures) Excess/(Deficit)

22

Revenue Highlights There are two major revenue categories in the Golf Fund: Golf Revenues and Golf Restaurant Revenues. Golf Restaurant Revenues exceeded 2012 actuals and the 2013 budget even with the pro shop and restaurant remodeling project. Golf Revenues were down 12% compared to 2012 actuals, due to a 13% drop in rounds played. The drop in rounds occurred during the spring months, when weather conditions did not allow for play, and in September, when flood waters resulted in the extended closure of the West Woods Golf Club and cancellation of the largest revenue tournament of the year. Lake Arbor Golf Club also spent some time closed due to the wet conditions. The flood impact on Arvada Golf revenues was estimated at $120,000.

Expenditure Highlights Total Golf Fund expenses were less than budgeted, in direct response to the decline in the number of golf rounds played. A number of projects were completed including the remodel of both the pro shop and the clubhouse, as well as the completion of the West Woods Golf Club storage building. The Lake Arbor Golf Course Safety Study was also completed along with the top three recommended priorities.


Golf Rounds by Type - January thru December 2012/2013 WEST WOODS

Regular

Special

Tournament

Annual

Senior

Junior

Other

Total

2012

23,875

10,633

3,040

5,982

7,486

1,039

1,283

53,338

2013

20,883

9,544

2,226

6,687

4,987

780

1,153

46,260

-2,992

-1,089

-814

705

-2,499

-259

-130

-7,078

-13%

-10%

-26%

12%

-33%

-25%

-10%

-13%

LAKE ARBOR

Regular

Special

Tournament

Annual

Junior

Other

Total

2012

20,176

6,969

1,348

19,595

617

2,238

50,943

2013

19,996

2,764

878

17,964

650

1,865

44,117

-180

-4,205

-470

-1,631

33

-373

-6,826

-1%

-60%

-35%

-8%

5%

-17%

-13%

September flood waters resulted in the extended closure of the West Woods Golf Club and cancellation of the largest revenue tournament of the year.

23


Hospitality Fund Hospitality Fund Beginning Fund Balance

2013 Budget

2013 Actual

$ 675,000

$ 675,000

$ 905,306

$ 811,859

Concessions

167,270

148,703

Miscellaneous

459,193

398,448

Total Revenues

$1,531,769

$1,359,011

$ 369,719

$ 354,185

1,279,389

1,097,791

185,386

4,800

25,952

25,952

$1,860,446

$1,482,728

(328,677)

(123,717)

$ 346,323

$ 551,283

204,649

163,100

$ 141,674

$ 388,183

REVENUES Banquets

EXPENDITURES Administration Operations Capital Transfer to General Fund Total Expenditures Income/(Loss) Ending Fund Balance Goal (25% of Total Expenditures) Excess/(Deficit)

24

Revenue Highlights Total Hospitality Fund revenue was less than budgeted as a result of a number of factors within market segments. The Arvada Center in-house market share saw a reduction in revenue due to the Center’s decision to utilize outside catering for events. The corporate market segment was below budget due to a number of events which either outgrew the facility or were not held in 2013. The wedding/anniversary market segment saw a decline due to newer facilities opening in the metropolitan area. The association, education and government market segments all saw increases in 2013 compared to 2012. In July 2013 the kitchen and ballrooms were closed for a month for remodeling, the first closure in 19 years. This had an adverse estimated effect of over $100,000 in booking losses.

Expenditure Highlights Total Hospitality expenses were less than budgeted and less than expended in 2012. This is a direct result of the decline in the number of events held in 2013.


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*

Overview 2013 Budget

2013 Actual

$4,983,000

$4,983,000

2,010,729

2,010,350

67,980

136,236

$2,078,709

$2,146,586

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.

REVENUES Transfers Other Total Revenues

Revenue Highlights Elevated recovered claim costs in 2013 account for the Other Revenue well in excess of what was budgeted.

Expenditure Highlights

EXPENDITURES Risk Management Administration

$2,635,360

$2,099,774

Risk Management Operations

631,207

604,132

Total Expenditures

$3,266,567

$2,703,907

Income/(Loss)

(1,187,858)

(557,321)

Ending Fund Balance

$3,795,142

$4,425,679

Year-over-year reductions in claims expenses for both Workers Compensation (-20.6%) and General Liability (-27.5%) represent the bulk of the difference between budgeted and actual Administration Expenditures.

*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 for 2012. The revised figure for 2013 was not available at the time of the publication of the 2013 Year-end Report.

25


Information Technology and Print Services Information Technology and Print Services

2013 Budget

2013 Actual

$8,088,000

$8,088,000

Maintenance

$ 959,712

$ 969,766

Replacement

896,767

964,495

Print Shop

437,801

308,978

$2,294,280

$2,243,238

Maintenance

$1,149,621

$1,154,142

Replacement

3,610,295

2,785,901

403,825

304,685

Total Expenditures

$5,163,741

$4,244,729

Income/(Loss)

(2,869,461)

(2,001,491)

Ending Fund Balance

$5,218,539

$6,086,509

Beginning Fund Balance REVENUES

Total Revenues EXPENDITURES

Print Shop

Overview 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 technology replacement fund has been static for the last few years. The revenue is for maintenance and replacement of current technology that is already in place. Print shop revenues have remained fairly flat for several years due in most part to an emphasis on environmental conservation and using digital media in place of some printed material. We believe that demand will stay flat for the foreseeable future.

Expenditure Highlights The major expenses out of the Technology Fund are broken down into maintenance and replacement. The annual maintenance payments from the fund are for primary business systems: Oracle Financials, Police CAD/RMS system, Radio System, Courts, GIS products and Infrastructure items such as SAN, Network Switches, Enterprise Data Backup and Virtualization software. The replacement portion of the fund varies from year to year. In 2013 there were some major infrastructure and software changes. Changes to the infrastructure included upgrading server and data storage to the next generation. This new infrastructure lead the way for an upgrade to the CAD/RMS system for the police department. Other big changes were the Arvada Center Tessitura system upgrade and the start of the computer replacement for city staff. Print Shop expenses were higher than normal this year due to the replacement of a key piece of printing equipment called a plate maker. Expenses will be higher again in 2014 as we replace both the high-speed copier and the color copier in the print shop. We have chosen to purchase these items rather than leasing because we have a healthy fund balance and we believe we will be able to use the machines for 7-10 years. As a result we expect that expenditures will outpace revenue by as much as $60,000 in 2014, but will be well below revenue in 2015 and beyond.

26


Vehicles

Overview

Vehicles

2013 Budget

2013 Actual

Beginning Fund Balance

$6,678,000

$6,678,000

Maintenance Transfers

$2,196,638

$2,196,580

Replacement Transfers

1,095,582

1,115,772

136,177

102,640

$3,428,397

$3,414,992

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.

REVENUES

Other Total Revenues

Revenue Highlights Charges for Fleet Maintenance services, which include personnel costs, rose 3% over 2012 levels. Increases for Vehicle Replacement transfers for some, but not all, divisions net to an increase of 1.8%.

Expenditure Highlights

EXPENDITURES Maintenance

$3,746,934

$2,160,723

Replacement

1,645,963

1,650,888

Total Expenditures

$5,392,897

$3,811,611

Income/(Loss)

(1,964,500)

(396,619)

Ending Fund Balance

$4,713,500

$6,281,381

27

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. Replacements in 2013 included 15 Police Interceptors, eight pick up trucks, and 23 other vehicles, trailers, and pieces of equipment.


Buildings Buildings

2013 Budget 2013 Actual

Beginning Fund Balance

$1,704,000 $1,704,000

Arvada Economic Development Association Operations Beginning Fund Balance

REVENUES Replacement Transfers Other Total Revenues

$407,351

$407,351

131,233

245,483

$538,584

$652,833

EXPENDITURES $214,562

$97,875

Capital Lease

113,977

113,725

$328,539

$211,600

210,045

441,234

$1,914,045

$2,145,234

Income/(Loss) Ending Fund Balance

2013 Actual

$405,500

$405,500

Revenue

754,000

707,657

Expenditures

730,683

707,657

Ending Fund Balance

$428,817

$405,500

Revenue Highlights

Replacement

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 Expenditures in 2013 are lower than budget primarily due to reduced spending in printing, advertising, dues and subscriptions, supplies and postage.

Program

Overview

Beginning Cash Balance

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.

Revenue Expenditures Ending Cash Balance Reserved for AEDA Loan Program

Revenue Highlights Monthly replacement charges from contributing funds remained at 2012 levels. The surplus of Other Revenue reflects a supplemental transfer of $120,000 from the General Fund to cover parking lot reconstruction costs for the Arvada Community Food Bank, scheduled to be completed in 2014. The City owns both the building and the parking lot, and is responsible for the maintenance of the parking lot per the City’s lease agreement with the Food Bank.

2013 $1,135,001 8,068 (267,288) 875,781 (300,000)

Reserved for Job Creation Program

(23,500)

New Entrepreneur

(19,500)

Commitments

(225,002)

Available Unallocated Cash Balance

$ 307,779

Revenue Highlights Revenues in 2013 consist of interest income and loan payments from two loans. The two loans are now paid off.

Expenditure Highlights

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. Replacements in 2013 included carpet for the banquet facilities at the Arvada Center.

Expenditures in 2013 reflect 28 small business grants and two shopping center grants. The grants were used to help Arvada businesses improve signage, landscaping, facades, and for site improvements.

28


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 fourth quarter 2013 yield of .534% which is a decrease of 19bps when compared to the year-todate fourth quarter 2012 yield of .724%. The benchmark yield for the City’s portfolio, as established by the investment policy, is a weighted benchmark of allowable securities. For the fourth 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 $59 million in investment calls during 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 due to the $36 million funding of an escrow account for the Denver Water Project during the third quarter. We are keeping a balance in our checking account 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:

29


PORTFOLIO PERFORMANCE

PORTFOLIO CHANGES

12/31/2013

12/31/2012

Difference

$1,085,950

$1,531,397

-$445,447

Money Market

0.534%

0.724%

-0.190% -0.070%

Interest Earnings Portfolio Yield Benchmark Yield Tracking Error

0.340% +19bps

0.410% +31ps

12/31/2013

-16bps

12/31/2012

Difference

$ 1,012,960

$ 5,006,842

-$ 3,993,882

Savings/Cash

16,216,933

20,163,693

-3,946,760

CD

17,270,066

19,270,465

-2,000,399

Corporate

4,495,000

5,000,000

-505,000

LGIP

9,945,387

45,407,414

-35,462,027

120,600,000

108,000,000

12,600,000

2,000,000

7,000,000

-5,000,000

US Agency US Treasury Total

ACCOUNT SUMMARY

$171,540,346

$209,848,414

-$38,308,068

PORTFOLIO CHARACTERISTICS

Par Value

$171,540,346

Average Duration (yrs)

Book Value

$171,542,334

Average Coupon

0.625%

Market Value

$170,746,487

Average Cost YTM

0.718%

Average Market YTM

0.831%

Unrealized Gain/(Loss)

-$793,859

PORTFOLIO ALLOCATION

MATURITY DISTRIBUTION

U.S. Agencies, 70.3%

Money Market, 0.6%

2.43

24.2%

25.0% 20.0%

21.6%

15.8%

15.0%

11.2%

14.3%

12.8%

10.0% 5.0% LGIP, 5.8% CD, 10.1%

Savings/ cash, 12.0%

U.S. Treasuries, 1.2%

0.0%

30

0-.25

.5-1

1-2 2-3 Maturity (yrs)

3-4

4-5


City of Arvada Investments as of December 31, 2013 The City’s portfolio as of December 31, 2013 is shown below, which includes credit ratings as of December 31, face value and actual interest earnings for 2013. Description

CUSIP/Ticker

Credit Rating 12/31/2013

Coupon Rate

Maturity Date

Ending Face Amount/Shares

Interest/ Dividends

CHASE

N/A

0.05%

N/A

545,464.50

6,697.79

WELLSFARGO

N/A

0.13%

N/A

5,032,611.56

7,685.02

N/A

0.30%

N/A

10,638,856.94

0.00

16,216,933.00

14,382.81

Savings/Checking JPMorgan Chase Savings Wells Fargo Savings JP Morgan Checking Sub Total Savings/Checking Certificate Of Deposit FIRSTBANK

CD7273

N/A

0.25%

05/27/2014

2,005,078.17

10,150.03

FIRSTBANK

CD7281

N/A

0.30%

12/02/2014

5,132,638.27

23,983.64

FIRSTBANK

CD8679

N/A

0.60%

05/05/2014

5,085,580.51

30,321.56

FRISTBANK

CD5343

N/A

0.30%

07/29/2014

5,046,768.82

6,508.03

17,270,065.77

70,963.26

Sub Total Certificate Of Deposit Corporate Apple, Inc

037833AH3

AA1

0.45%

05/03/2016

1,410,000.00

0.00

Berkshire Hathaway

084664BX8

AA2

0.95%

08/15/2016

3,085,000.00

0.00

4,495,000.00

0.00

Sub Total Corporate Local Government Investment Pool C Safe LGIP

CSAFE

AAAm

N/A

N/A

1,018,783.03

24,889.38

Colo Trust LGIP

COLOTRUST8001

AAAm

N/A

N/A

1,445,062.58

20,740.35

Colo Trust LGIP

COLOTRUST8004

AAAm

N/A

N/A

392,640.48

1,067.37

Colo Trust LGIP

COLOTRUST8007

AAAm

N/A

N/A

355,055.76

455.95

Colo Trust LGIP

COLOTRUST8008

AAAm

N/A

N/A

5,144,046.10

6,619.94

Colo Trust LGIP

COLOTRUST8009

AAAm

N/A

N/A

53,306.08

379.36

Colo Trust LGIP

COLOTRUST8010

AAAm

N/A

N/A

1,536,492.83

1,992.83

9,945,386.86

56,145.18

1,012,959.55

6,117.28

1,012,959.55

6,117.28

0.00

Sub Total Local Government Investment Pool Money Market CSIP MM

CSIP

AAAm

N/A

N/A

Sub Total Money Market US Agency FFCB

3133ED7L0

AAA

0.33%

11/13/2015

5,000,000.00

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

22,000.00

FFCB

3133ED6Z0

AAA

0.55%

05/12/2016

3,000,000.00

0.00

FFCB

3133EC3M4

AAA

0.60%

11/21/2016

3,000,000.00

18,000.00

FFCB

3133EC940

AAA

0.64%

05/09/2017

5,000,000.00

16,000.00

FFCB

3133EAU22

AAA

0.60%

09/12/2016

5,000,000.00

34,000.00

FFCB

3133ECY57

AAA

1.58%

08/28/2017

3,000,000.00

0.00

Chart continues next page

31


Description

CUSIP/Ticker

Credit Rating 12/31/2013

Coupon Rate

Maturity Date

FHLB

313381ZP3

AAA

0.43%

02/12/2016

5,000,000.00

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

15,000.00

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

18,750.00

FHLB

313380U88

AAA

0.80%

04/17/2017

3,000,000.00

24,000.00

FHLB

3133727K4

AAA

2.13%

12/28/2015

2,000,000.00

42,500.00

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

0.50%

04/30/2018

3,000,000.00

8,250.00

FHLB

313382Z63

AAA

0.50%

05/22/2018

5,000,000.00

12,500.00

FHLMC

3134G4LD8

AAA

0.40%

11/27/2015

5,000,000.00

0.00

FHLMC

3134G4KY3

AAA

1.00%

11/26/2018

3,000,000.00

0.00

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

3136G1LA5

AAA

0.50%

05/15/2018

3,000,000.00

7,500.00

120,600,000.00

505,175.00

2,000,000.00

52,500.00

2,000,000.00

52,500.00

171,540,345.18

705,283.53

Sub Total US Agency

Ending Face Amount/Shares

Interest/ Dividends 10,750.00

US Treasury T-Bond

912828KY5

AAA

Sub Total US Treasury Total

2.63%

06/30/2014

Investment Management Focus - 2014 2013 continued to be a struggle for the capital markets as the Fed has kept interest rates low, which will continue into 2014. We will continue to monitor the two items of focus we have highlighted below. Diversification of Maturities: We will continue to keep LGIP and cash and savings 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 some 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.

32


Finance Department • 8001 Ralston Road • Arvada, Colorado 80002 (720) 898-7120 • www.arvada.org

Contributors: Bryan Archer, Director of Finance Lisa Yagi, Assistant Director of Finance Ryan Adler, Budget Analyst Deanne Gibboney, Budget Analyst Debra Nielson, Investment Manager Arlene Martinez, Executive Assistant

2013 Year-End Report for City of Arvada  
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