2014 Third Quarter
Financial Report
Table of Contents Overview........................................................... 1 General Fund................................................... 3 Arvada Center.................................................. 7 Parks Fund....................................................... 9 Special Revenue Funds................................ 11 Capital Improvements Fund.........................13 Enterprise Funds........................................... 15 Internal Service Funds.................................. 21 City of Arvada Investment Report............... 25
overview
2014 Third Quarter The City of Arvada continues to be in a historical growth pattern with revenues up across the board. This includes year-over-year increases in sales tax (7.3%), use tax (2%) and auto use tax (11%), but the real story continues to be the building activity. The chart below represents single-family building permits. Through the first nine months we have issued 471 permits, an increase of 38% over 2013, and the largest number of permits in the last 15 years. Revenue from these permits has grown 45% over 2013 and is already one million dollars over budget. If the mild weather continues into and through the 4th quarter, we should set a record high for single-family permits.
General Fund Building Revenue through September 480
$8,000,000
420
$7,000,000
360
$6,000,000
300
Dollars
$5,000,000
240
$4,000,000
180
$3,000,000 120
$2,000,000 60
$1,000,000 $0 GF Building Revenue Single Family (Detached) Permits
0
2010 $ 3,446,002
2011 $ 3,182,772
114
99
2012 $ 4,044,707 253
2013 $ 4,873,086 341
2014 $ 7,087,076 471
As one would expect, the largest increases in sales tax are being seen in Restaurants, Auto Care, Furniture, Flooring, Appliances and Equipment. All of these categories are related to the building activity and the increased number of new residents. When this third quarter report went to print, the initial contract to start construction on the Olde Town Transit Hub was approved by City Council. This project, expected to last 18 months, will transform the Wadsworth stop on the Gold Line Extension into a destination for Arvada residents and others wanting to visit Olde Town. Through conservative fiscal practices and improving economic conditions, the City will be able to cash finance its share of the estimated $30 million dollar price tag. RTD, CDOT and others are also contributing to this monumental undertaking. Opening date is scheduled for fall 2016. The Arvada Center continues to work on cost-control measures while maintaining performances at a high level. Year-over-year expenditures are down almost 4% with revenues being flat. These control measures have led to a positive income balance at the end of the third quarter. There are some large expenditures planned for the fourth quarter which may result in the Center needing additional cash support to break even for 2014. The Police Tax Increment Funds are also seeing the benefits of a recovering economy. Sales Tax revenues are up over 7% with Building Use Tax experiencing a 22% increase. These revenues will be put towards increasing our police force with 4 new police officer positions set to start in January 2015. The Funds will also start setting aside dollars in anticipation of building a third substation in the western part of Arvada.
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The Housing Authority has been able to maintain support for over 500 families with a monthly rent subsidy, all while dealing with a 5% mandatory reduction in its Federal funding. By using some identified historical reserves, the Authority has kept its number of clients at or near the maximum allowed. The CIP Fund has experienced some large expenditures in 2014, including Ralston Central Park, Long Lake Ranch restrooms, the completion of the two police substations and development costs related to the Olde Town Transit Hub. 2015 will see the completion of Britton and Griffith Parks and ongoing construction on the Transit Hub. The 2015-2016 Budget was approved by City Council on October 22. The budget includes maintaining City services across the board while adding some positions to help out with demand. The positions we are adding are directly tied to the increased building activity so that the City can better meet the demands. We feel very fortunate to be off to such a good start. Assuming the final three months of the year stay consistent, we should end the year in good financial condition and with some additional funds that we can apply towards our growing list of capital needs.
Assuming the final three months of the year stay consistent, we should end the year in good financial condition and with some additional funds that we can apply towards our growing list of capital needs.
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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 General Fund • Transferto the Capital Improvements Fund for new parks, transportation and other infrastructure projects Beginning Fund Balance The following table provides a comparison of budgeted cash balances, revenues and expenditures to budget and prior year amounts in the same areas. The General Fund began 2014 with a $25,675,000 fund balance. Some of this fund balance, $3,008,076, was dedicated to 2013 carryover and one-time items not completed in 2013. An additional $3,125,000 of onetime funds was added to the Capital Fund for Gold Line TOD improvements. Removing these items, revenue and expenditure budgets are in balance for 2014.
2014 Budget
As of 09/30/14
$25,675,000
$25,675,000
$71,572,813
$54,261,127
$48,739,995
Ongoing
69,459,872
45,623,615
43,429,109
Capital
6,908,690
-
-
JPPHA
1,455,000
200,000
200,000
$77,823,562
$45,823,615
$43,629,109
8,437,512
5,110,886
Revenues
As of 09/30/13
EXPENDITURES
Total Expenditures Income/(Loss)
(6,250,749)
Ending Fund Balance
$19,424,251
$34,112,512
GENERAL FUND REVENUE Sales Tax 49%
Property Tax 6%
Use Tax 2%
Auto Use Tax 7% Other 20% Franchise Fees 6%
Interest 1%
Court Fines & Fees 2%
Building Use Tax & Permits 7%
Revenue Highlights Overall, revenues are up 11% compared to the same time period in 2013. In general, revenues are in line with or exceeding the 2014 budget estimate for the majority of revenue categories. The major revenue categories of sales tax, use tax, property tax, building and intergovernmental revenues are discussed in more detail in the “Revenue Highlights” section. The investment report at the end of this document will provide details of the City’s investments. Investment revenue will continue to be low as the current investment environment is not expected to change until late 2015.
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Sales Tax Sales Tax Collections
The graph shows actual third quarter sales tax collections from 2010 to 2014. Sales tax collections lag one month; therefore, collections through the third quarter represent eight months. The City has now seen an increase in third quarter sales tax collections for six straight years (2009-2014). Sales tax receipts for the first eight months of 2014 are 7.3% above 2013 actuals. Based on the postive trend of sales tax revenue, the sales tax budget was revised to $42,215,271 and sales tax collections are on track to meet or exceed the revised budget.
$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 $0 Sales Tax
09/30/2010 $22,684,401
09/30/2011 $23,156,589
09/30/2012 $24,552,903
09/30/2013 $25,953,189
09/30/2014 $27,844,593
2014 Budget $42,215,271
09/30/2014
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.
Use Tax Collections
$10,000,000 $9,000,000
General use tax is slightly more than 2013 actuals through nine months and will be close to the revised budget of $1.5 million if this source of revenue follows the trend from 2013.
$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000
Building use tax for 2014 is at $3.4 million which is one millon over the revised budget. This is a result of the 471 single-family permits issued in 2014.
$1,000,000 $0
$800,273
$897,032
$682,027
$873,197
$890,495
2014 Budget $1,538,799
Auto
$2,605,134
$2,894,875
$3,239,957
$3,516,156
$3,914,176
$5,375,000
Building
$1,423,798
$1,495,301
$1,898,048
$2,348,796
$3,429,533
$2,400,000
General
09/30/2010
09/30/2011
09/30/2012
Building
Auto use tax collections are showing a 11% increase over 2013 collections and are on track to exceed the 2014 budgeted amount of $5,375,000.
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Auto
09/30/2013
General
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 yearto-date collections for the current and past four years.
Property Tax Collections
$5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000
Currently, property tax receipts are slightly above the 2013 receipts for the first nine months of the year and might fall slightly short of the budgeted amount of $4.65 million.
$2,500,000
A majority of property tax revenues are received in the first two quarters.
Property Tax
$2,000,000 $1,500,000 $1,000,000 $500,000 $0
09/30/2010 $4,571,151
09/30/2011 $4,594,045
09/30/2012 $4,457,676
09/30/2013 $4,532,720
09/30/2014 $4,565,024
2014 Budget $4,650,000
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 between $4.5 million and $4.7 million in the past five years and are budgeted for a little more than $4.6 million in 2014. Road and Bridge funds are disbursed quarterly. HUTF funds are received monthly and the graph shows eight months of revenue. While these funds have been a stable revenue source, the budget for these revenues was reduced based on the actual collections through nine months.
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 HUTF Jefferson County
09/30/2010
09/30/2011
09/30/2012
09/30/2013
09/30/2014
$2,506,204
$2,528,738
$2,549,159
$2,539,390
$2,600,435
2014 Budget $3,895,536
$848,108
$754,282
$834,335
$701,103
$715,791
$720,750
Jefferson County
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HUTF
GENERAL FUND EXPENDITURES Miscellaneous 1%
Transfers 18%
Debt Service 5% Personnel 50%
Contracts 10%
Supplies and Expenses 7% Services and Charges 9%
Expenditure Highlights Expenditures in 2014 rose 5% over 2013. The compherensive plan and the use of outside consultants for building and plan reviews make up the majority of this increase. Personnel and other ongoing operating costs make up the difference, increasing at just over 3%. All of these items are in the budget for 2014. The transfer to the CIP fund, which makes up all of the Capital budget listed above, will occur in the forth quarter.
Salary and Benefit Savings Salary & Benefits Salaries & Wages
2014 Budget
As of 09/30/14
$28,879,080
As of 09/30/13
$19,122,680
$18,487,630
-
-
Vacancy Savings
(782,730)
Overtime
940,502
545,482
595,407
Group Insurance
5,179,173
3,486,183
3,105,420
Retirement
3,292,954
2,207,871
2,154,873
Medicare
343,436
232,997
218,550
Temporary Wages & SS
541,949
181,926
278,328
Other
365,968
249,096
259,304
$38,760,332
$26,026,235
$25,099,512
Total
The 8.4% decrease in Overtime expenditures was primarily due to drops for both PD and the Streets Division’s snow plowing operations. Substantial drops in Temporary Wage & Social Security Expenditures for Public Works versus 2013 are reflected in that decrease.
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ARVADA CENTER
ARVADA CENTER
Arvada Center
Through the third quarter 2014, the Arvada Center continued to decrease expenses compared to 2013. Total expenditures are down almost 4%. Revenue has decreased 1% from last year. The result is a net improvement over the first nine months of 2013 of $313,000. With the decrease in expenditures and 1% decrease in revenues from 2013, the Center is now showing positive income through the third quarter of 2014. The fourth quarter is always the most difficult with so much competition for your entertainment dollars.
Revenue Highlights The third quarter continues the trend of decreased revenues as compared to 2013. However, that revenue decrease is steady from the second quarter at 1%. In the first quarter the decrease was over 4%. Ticket sales through the third quarter 2014 are showing an increase over 2013 ticket sales of approximately 4%. Year-to-date consignment art sales in 2014 are 8.5% lower than 2013, which contributes to the overall 1% revenue decrease.
Expenditure Highlights By far the largest area of reduced expenses is in the Performing Arts Division. Performing Arts has decreased expenses by over $182,000 as compared to 2013. Marketing and Patron Services has also decreased significantly. These decreases can be attributed to a number of factors, but primarily they are due to the evolving approach to play productions that require less expense through cast, design and labor.
Arvada Center
2014 Budget
Beginning Fund Balance
$
As of 09/30/14
As of 09/30/13
232,000
$ 232,000
$ 6,282,791
$3,916,215
$3,915,694
SCFD
1,096,970
768,407
767,211
City Cash Transfer
1,643,122
1,303,592
1,232,341
REVENUES Generated
City In-Kind Transfer Total Revenues
2,040,000
-
-
$11,062,883
$5,988,213
$5,915,246
$ 9,112,374
$5,811,662
$6,051,722
2,040,000
-
-
$11,152,374
$5,811,662
$6,051,722
EXPENDITURES Ongoing In-Kind Total Expenditures Income/(Loss)
(89,491)
Ending Fund Balance
7
$142,509
176,551 $408,551
(136,475)
SCFD Revenue $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 SCFD
09/30/2010 $680,527
09/30/2011 $706,943
09/30/2012 $758,167
09/30/2013 $767,211
09/30/2014 $768,407
2014 Budget $1,096,970
The largest portion of the Scientific and Cultural Facilities District (SCFD) grant contributions was received in September. Currently, contributions are up slightly over 2013 but it looks like we will be under the 2014 budget projection. The difficulty with projecting this grant revenue is that there is increased competition each year from other arts and cultural facilities. 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 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 In-Kind Cash
09/30/2010 $1,519,716
09/30/2011 $1,475,453
09/30/2012 $1,573,123
09/30/2013 $1,587,997
09/30/2014 $1,530,000
2014 Budget $2,040,000
$906,451
$886,982
$1,232,341
$1,232,341
$1,303,592
$1,643,122
The cash support for the Arvada Center in 2014 is budgeted to stay at $1,643,122, which is the same level as 2013. This transfer is made monthly. The In-kind support is calculated at the end of the year and is tracking to budget.
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PARKS FUND
PARKS FUND
Parks Fund Revenue Highlights Parks Fund year-to-date revenue continues to track at a pace exceeding 2013 levels. City attributable Jefferson County Open Space Funds, which represent the largest source of Parks Fund revenue, are up compared to last year. The city cash transfer is budgeted to be 3% greater in 2014 compared to 2013.
Expenditure Highlights 2014 Parks fund expenditures are within 6% of 2013 spending levels and are in line with projections for the year.
Parks Fund
2014 Budget
Beginning Fund Balance
As of 09/30/14
As of 09/30/13
$4,300,000
$4,300,000
$3,514,740
$2,036,513
$1,979,571
2,971,913
2,228,935
2,162,659
APEX Reimbursement
954,810
7,349
-
Other
187,848
213,129
141,946
$7,629,311
$4,485,926
$4,284,176
$7,881,273
$5,125,862
$4,844,862
-
-
10,786
$7,881,273
$5,125,862
$4,855,648
REVENUES Open Space City Cash Transfer
Total Revenues EXPENDITURES Ongoing Capital Total Expenditures Income/(Loss)
(251,962)
Ending Fund Balance
9
$4,048,038
(639,936) $3,660,064
(571,472)
PARKS FUND REVENUE
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 $-
$1,952
$2,040
$2,541
$-
$7,349
2014 Budget $954,810
Cash Transfer
$2,332,470
$2,130,205
$2,106,033
$2,162,659
$1,733,616
$2,971,913
Open Space
$2,670,871
$1,789,135
$1,867,491
$1,689,316
$2,036,513
$3,514,740
APEX
09/30/10
09/30/11
09/30/12
10
09/30/13
09/30/14
SPECIAL REVENUE FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds Overview Special Revenue Funds account for revenues that are to be used for specific purposes. The following funds are considered special revenue funds: • Tax Increment Funds • Community Development • Housing
Tax Increment Funds Overview There are two tax increment funds which account for the voterapproved 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.
Revenue Highlights Sales Tax and Audit Revenue increased in the third quarter by 7.51% while Use Tax continues its upward increase by just over 22% in comparison to the 2013 third quarter. Not including the one-time recovery of $26,902 from the Jefferson County Emergency Communications Authority in 2013, Recovered Costs reflects a 2.25% decrease from third quarter 2013. Recovered costs include: Enforcing Underage Drinking Laws (EUDL), a Federal grant, and Rocky Mountain High Intensity Drug Trafficking Association (HIDTA), a State grant. .21 and .25 Tax Increment Funds
2014 Budget
As of 09/30/14
As of 09/30/13
Beginning Fund Balance
$7,979,000
$7,979,000
$6,415,140
$4,403,165
$4,095,508
1,311,541
1,264,835
1,035,495
117,000
268,565
162,071
$7,843,681
$5,936,565
$5,293,073
Ongoing
$7,525,559
$4,816,859
$4,776,780
Capital
3,344,728
2,524,736
1,932,177
$10,870,287
$7,341,595
$6,708,956
(3,026,606)
(1,405,030)
(1,415,883)
REVENUES Sales Tax/Audit Revenue Use Tax Other Total Revenues EXPENDITURES
Total Expenditures Income/(Loss) Ending Fund Balance
$4,952,394
$6,573,970
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Expenditure Highlights 2014 third quarter salaries increased by $11,992. Overtime costs decreased by 16%, resulting in a net savings of $10,784 in comparison to the same time period in 2013. Additionally, Assignment Pay, Shift Differential and Beeper Pay reflected a net increase of $8,391 due to the realignment of personnel within the Community Stations. Additional benefits including Group Insurance, Retirement, Medicare and Long-Term Disability show an increase of just under 5%, with Group Insurance and Medicare having the largest combined increase in that segment by $47,030. Overall Personnel Expenditures in comparison to the third quarter 2013 have increased less than 1%. Capital Expenditures in 2014, all related to the completion of the Community Stations, represent nearly all the final project costs. Installation of Signal amplifiers (BDAs) to boost radio reception within the stations is one of the final projects remaining.
Community Development Community Development Fund
2014 Budget
As of 09/30/14
Beginning Fund Balance
$6,896,000
$6,896,000
$114,737
$42,358
$309,825
668,000
402,574
374,688
City Cash Transfer
45,000
33,750
33,750
Interest/Other
19,500
7,508
7,211
Total Revenues
$847,237
$486,190
$725,475
$861,551
$415,734
$335,890
380,625
286,199
274,460
80,000
80,000
-
170,077
170,077
-
$1,492,253
$952,011
$610,350
(465,821)
115,125
Revenue Highlights
As of 09/30/13
The decline in Recovered Revenues versus 2013 was primarily due to a one-time $150,000 repayment last year on a promissory note for a 2010 loan made to the JeffCo Housing Authority for repairs and upgrades to the Parkview Village Apartments. Lower deferred loan repayments make up the rest of the difference.
Revenues Recovered Grants
Expenditure Highlights Funding for energy-efficiency audits and improvements for eligible housing represents most of the year-over-year increase in Ongoing Expenditures. This year’s Capital Project Transfer reflects payments for the Memorial Neighborhood Park Revitalization project. It’s worth noting that the wide gap between budgeted Revenues and Expenditures reflects the anticipated use of some HODAG funding in 2014.
Expenditures Ongoing Essential Home Repairs Loans Capital Project Transfer Total Expenditures Income/(Loss) Ending Fund Balance
(645,016) $6,250,984
$6,430,179
Arvada Housing Authority Arvada Housing Authority Beginning Fund Balance
2014 Budget
As of 09/30/14
$ 195,000
$ 195,000
$
$
Revenue Highlights
As of 09/30/13
The Housing Authority is operating at a 95% proration, or a 5% reduction, in Grants Revenue as compared to prior years. This decrease in funding was reflected in the decrease in Grants Revenue.
Revenues Recovered Grants
19,178
18,139
$
18,295
3,900,000
2,518,163
2,740,045
26,000
50,000
49,846
Interest/Other
5,464
216
477
Total Revenues
$3,950,642
$2,586,518
$2,808,663
Ongoing
$ 430,579
$ 239,638
$ 284,966
Rents
3,532,200
2,480,279
2,765,862
30,420
19,767
36,846
$3,993,199
$2,739,684
$3,087,674
Transfers
Expenditure Highlights The Arvada Housing Authority was assisting 508 families with monthly rent subsidies as of September 30th. These subsidies constituted approximately 90% of the Fund’s expenditures thus far in 2014. The drop in Rents Expenditures corresponds to the decrease in Grants Revenue.
Expenditures
Total Expenditures Income/(Loss) Ending Fund Balance
(42,557) $ 152,444
(153,166) $
EOC ENERGY ASSISTANCE 2010-2014 through September - Dollars (Grants)
(279,011)
41,834
$50,000 Total Dollars
Transfers
The City directly receives funding from Energy Outreach Colorado (EOC), a nonprofit corporation, and disburses it to low-income residents of Arvada for assistance with costs related to energy.
$40,000 $30,000 $20,000 $10,000 $0
2010 Dollars $20,609
12
2011 $40,972
2012 $45,500
2013 $32,462
2014 $33,242
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.
CAPITAL iMPROVEMENT FUND Revenue Highlights In 2014, the majority of the revenue in the CIP Fund will consist of transfers from the General Fund, Water Fund and Lands Dedicated Fund. The revenues will also include a one-time transfer of $3,150,000 from the General Fund for the Olde Town Transit Hub.
Expenditure Highlights CIP Administration includes expenditures for the construction at Ralston Creek, the new police radio system and the purchase of property for the expanded plaza at the Olde Town station and design work for the Olde Town Transit Hub. The expenditures in the Parks area include construction at Ralston Central Park, Long Lake Ranch restrooms, Memorial Neighborhood Park Revitalization project, renovation and construction of play areas at multiple parks, and tap fees for Maverick Mesa and Church’s Crossing parks. Smaller projects in the Transportation area include Garrison Street Trail, traffic control equipment replacement, traffic signal replacement and design work for two projects on 72nd Avenue and signal modification betterments along the Gold Line.
Capital Projects Capital Improvement Fund Beginning Fund Balance
2014 Budget
As of 09/30/14
As of 09/30/13
$44,830,000
$44,830,000
$4,358,690
$2,114,681
$3,095,587
CIP Administration
$1,974,070
$5,010,676
$1,942,736
CIP Street Projects
422,000
1,040,443
463,416
CIP Traffic Projects
3,026,382
1,524,139
735,261
790,230
3,593,714
1,268,634
51,500
248,973
255,302
$6,264,182
$11,417,945
$4,665,349
Revenues Expenditures
CIP Park Projects CIP Arvada Center Expenditures Income/Loss Ending Fund Balance
(1,905,492)
(9,303,264)
$42,924,508
$35,526,736
13
(1,569,762)
Revenues to the CIP fund in 2014 include a one-time transfer of $3,150,000 from the General Fund for the Olde Town Transit Hub.
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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 Beginning Fund Balance
2014 Budget
As of 09/30/14
As of 09/30/13
$66,779,000
$66,779,000
$20,026,271
$12,808,614
$12,757,767
Tap Fees
4,835,189
5,663,693
5,075,958
Interest
266,645
187,239
313,292
Other
682,972
1,459,514
5,583,368
$25,811,077
$20,119,060
$23,730,385
$16,845,528
$10,687,986
$15,268,295
Debt Service
2,260,700
167,361
178,926
Major Capital Maintenance
4,065,596
3,187,542
2,691,856
Capital
4,096,356
1,020,953
357,470
$27,268,180
$15,063,843
$18,496,548
5,055,217
5,233,837
REVENUES Water Charges
Total Revenues
Revenue Highlights
EXPENDITURES Ongoing
Total Expenditures Income/(Loss) Ending Fund Balance
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.
(1,457,103) $65,321,897
$71,834,217
15
Revenues from Water Charges were up 0.4% through three quarters, with consumption down 2.8% over the same period in 2013. Water taps continue to be bought at an incredible pace, reflecting both continued substantial building activity and the purchase of three substantial irrigation taps for developer-constructed parks in northwest Arvada. The significant year-over-year drop in Other Revenues was due to a $4 million pass-through payment in 2013 related to water rights acquisition received from the Jefferson Center Metropolitan District (JCMD).
Expenditure Highlights Four million dollars of 2013 Ongoing Expenditures represented 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. The timing of payments for raw water purchases from Denver Water round out the bulk of differences in Ongoing Expenditures between this year and last. Increases in both Major Capital Maintenance and Capital Expenditures are due to the timing of annual expenditures.
Water Consumption This chart, with data provided by Utilities, shows water consumption through September by year since 2010.
WATER CONSUMPTION
Thousands of Gallons
As of September
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
1000s of Gallons
2010 3,573,218
2011 3,386,517
2012 4,261,633
2013 3,536,589
2014 3,438,791
Water Tap Fees This chart shows water tap fee revenue through September by year since 2010.
WATER FUND - TAP FEES
Dollars
As of September
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 0 Tap Fees
2010 1,127,111
2011 1,683,340
2012 2,662,486
16
2013 5,075,958
2014 5,663,693
Wastewater Fund The Wastewater Fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater. WasteWater Fund
As of 09/30/13
Revenue Highlights
$7,665,501
$7,573,254
Expenditure Highlights
380,403
546,327
555,486
633,620
72,310
56,203
2014 Budget
As of 09/30/14
$11,893,000
$11,893,000
$11,730,087
Tap Fees Interest
Beginning Fund Balance
Sewer Tap Fee Revenues, though down 2% year-todate versus 2013, remain at an historically high level due to continued residential construction.
REVENUES Sewer Charges
Other
594,738
442,833
406,549
$13,338,848
$8,726,971
$8,591,493
$7,500,000
$5,535,546
$5,417,243
Ongoing
3,128,500
1,993,995
2,093,153
Major Capital Maintenance
1,961,852
593,844
1,533,822
204,600
-
-
$12,794,952
$8,123,384
$9,044,218
543,896
603,586
$12,436,896
$12,496,586
Total Revenues
Treatment charges from the Metro Wastewater Reclamation District represented about two-thirds of Total Expenditures year-to-date. The substantial drop in Major Capital Maintenance is due to the timing of and payments for sewer system work.
EXPENDITURES Metro District
Capital Total Expenditures Income/(Loss) Ending Fund Balance
(452,725)
Wastewater Tap Fees This chart shows sewer tap fee revenue through September by year since 2010.
WASTEWATER FUND - TAP FEES
Dollars
As of September
$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
2010 $130,041
2011 $152,845
2012 $356,045
17
2013 $555,486
2014 $546,327
Stormwater Fund The Stormwater Fund accounts for all activities necessary to maintain a stormwater management plan.
Stormwater Fund Beginning Fund Balance
2014 Budget
As of 09/30/14
As of 09/30/13
$5,941,000
$5,941,000
$3,147,497
$2,342,044
$2,388,844
28,031
193,410
55,302
$3,175,528
$2,535,454
$2,444,145
$2,062,029
$855,707
$854,051
REVENUES Stormwater Fee Other Total Revenues EXPENDITURES Ongoing Debt Service
932,800
699,600
699,366
5,415,414
1,104,096
4,192,340
Total Expenditures
$8,410,243
$2,659,403
$5,745,757
Income/(Loss)
(5,234,715)
Capital
Ending Fund Balance
$706,285
(123,949)
(3,301,611)
$5,817,051
Revenue Highlights The City’s Stormwater Utility Fee Revenue, which represents the vast majority of all revenue for the Stormwater Fund, came in consistent with 2013 levels. The rate for the Stormwater Utility Fee has not changed since 2009. Most of the increase in Other Revenues is due to recovered costs from other jurisdictions participating in drainage projects with the City.
Expenditure Highlights Capital Expenditures thus far in 2014 include final bills for the Garrison Street Bridge Replacement and related Ralston Creek channelization, as well as initial work on flood threat mitigation in the wake of last year’s significant flooding. Higher Garrison project expenditures in the first half of 2013 account for the substantial drop in Capital Expenditures.
18
Golf Fund Revenue Highlights West Woods rounds were up 6% over the 2013 same time period due to less special discounting. (Metro area rounds were up 1% - Golf Datatech.) Improved course conditions are a positive factor. A DryJect aeration process with quicker green recover period eliminated the need for an aeration discount in September. Lake Arbor is offering more specials to generate rounds. The new senior category green fee is drawing from annual and regular rounds.
Expenditure Highlights Total expenditures are more than 6% below 2013 levels, mostly due to spending less on capital projects. Other highlights include hiring three new Golf Maintenance employees approved in the 2014 budget and increasing staffing levels at both the Lake Arbor and West Woods restaurants. All Grow the Game/Player Development programs continue to sell out.
2014 Budget
As of 09/30/14
$ 101,000
$ 101,000
Golf Courses
$3,383,085
$2,660,448
$2,367,445
Restaurants
1,193,135
1,158,277
999,561
209,475
122,194
150,971
$4,785,695
$3,940,919
$3,517,976
Golf Courses
$2,395,843
$1,452,632
$1,560,372
Restaurants
1,258,466
1,030,602
967,031
Administration
938,500
901,562
728,509
Capital
103,000
13,549
383,657
$4,695,809
$3,398,344
$3,639,570
89,886
542,574
$ 190,886
$ 643,574
Golf Fund Beginning Fund Balance
As of 09/30/13
REVENUES
City Cash Transfer Total Revenues EXPENDITURES
Total Expenditures Income/(Loss) Ending Fund Balance
Golf Rounds by Type - January thru September 2014 WEST WOODS
Regular
Special
Tournament
Annual
Senior
Junior
Other
Total
2013
16,538
7,989
4,770
5,344
4,304
833
367
40,145
2014
23,200
2,394
4,264
6,042
5,320
834
338
42,392
6,662
-5,595
-506
698
1,016
1
-29
2,247
40%
-70%
-11%
13%
24%
0%
-8%
6%
LAKE ARBOR
Regular
Special
Tournament
Annual
Senior
Junior
Other
Total
2013
17,496
1,756
940
14,615
0
633
887
36,327
2014
11,399
4,636
716
13,417
3,765
651
919
35,503
-6,097
2,880
-224
-1,198
3,765
18
32
-824
-35%
164%
-24%
-8%
100%
3%
4%
-2%
19
(121,593)
Hospitality Fund Revenue Highlights Year-to-date revenue is 5.6% greater than in 2013, reflecting an increase in events held and the number of guests served. 51 more groups have been served this year over last, representing 4,743 more guests. The third quarter market segments maintained year-to-date performance with a strong increase in the Association, Religious and Corporate market segments. The Association market increased by $13,832 over last year and $31,297 over the last five-year average. The Corporate segment showed a positive increase over last year of $38,528. The continuation of the decline in the Arvada Center events is noted with a $12,814 decrease from last year and a 60.70% decrease in revenue over the past five-year average. This is due to the Arvada Center’s transition away from Hospitality. Revenue from other in-house events continues to decline as well. Year to date after the third quarter, a decrease of $19,477 was realized, a decline of 41% over the past five-year average. In addition, revenues were maintained from last year’s numbers and show a modest increase of $5,001 despite a decrease of over $32,000 in the Arvada Center and in-house market segments.
Hospitality Fund Beginning Fund Balance
2014 Budget
As of 09/30/14
As of 09/30/13
$ 554,000
$ 554,000
$1,002,310
$ 562,982
REVENUES Banquets
$ 532,128
Concessions
176,994
157,365
111,991
Miscellaneous
523,074
260,371
284,641
Total Revenues
$1,702,378
$ 980,718
$ 928,760
$ 298,178
$ 220,376
$
1,291,653
686,117
741,988
263,000
-
-
27,468
20,601
194,564
$1,880,299
$ 927,094
$1,031,927
EXPENDITURES Administration Operations Capital Transfer to General Fund Total Expenditures Income/(Loss)
(177,921)
Ending Fund Balance
Expenditure Highlights 2014 Hospitality Fund expenditures are 10% below 2013 spending levels and are in line with projections for three quarters of the year.
Year-to-date revenue is 5.6% greater than in 2013, reflecting an increase in events held and the number of guests served.
20
$ 376,079
53,624 $ 607,624
95,375
(103,167)
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.
Overview
Revenue Highlights
The Insurance Fund, administered by the Risk Management Program 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.
Save for Operations inflated at 3%, which include Risk Management’s personnel costs, contributions by participating Funds generally remain at 2013 levels.
Expenditure Highlights
Risk Management Risk Management Fund
2014 Budget
As of 09/30/14
As of 09/30/13
Beginning Fund Balance
$4,593,000
$4,593,000
2,032,528
1,524,655
1,507,762
70,019
65,820
110,751
$2,102,547
$1,590,475
$1,618,513
$1,993,796
$1,280,785
$1,232,613
645,062
245,339
421,881
$2,638,858
$1,526,124
$1,654,493
Revenues Transfers Other Total Revenues Expenditures Risk Mgmt Administration Risk Mgmt Operations Total Expenditures Income/(Loss) Ending Fund Balance
(536,311) $4,056,689
64,351
(35,980)
$4,657,351
21
A year-over-year increase for the first three quarters in Workers’ Compensation claims expenses comprises nearly all of the net rise in Administration Expenditures. The claims pattern for Workers’ Comp is following a normal variance, with a small number of higher dollar claims impacting the total. This was partially offset by the lack of a one-time contribution for repairs at George Meyers Pool in 2013. Property claims costs also rose, but are in line with normal ups and downs influenced by the weather. Auto Liability, Auto Physical, and General Liability expenses dropped. The movement of two City Attorney’s Office positions from the Risk Management Fund to the General Fund earlier this year represents the substantial drop in Operations Expenditures. An offsetting transfer to the General Fund will be completed later in the year. *Per GASB Statement 10, an additional $807,882 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 2013.
Information Technology and Print Services Information Technology Fund
2014 Budget
As of 09/30/14
As of 09/30/13
Beginning Fund Balance
$6,134,000
$6,134,000
Maintenance
$ 959,787
$ 729,282
$ 729,825
Replacement
899,054
719,733
738,755
Print Shop
450,935
243,744
242,843
$2,309,776
$1,692,759
$1,711,422
Maintenance
$1,171,777
$613,112
$670,621
Replacement
949,250
491,879
931,335
Print Shop
501,610
284,706
227,412
$2,622,637
$1,389,697
$1,829,368
Revenues
Total Revenues Expenditures
Total Expenditures Income/(Loss) Ending Fund Balance
(312,861) $5,821,139
303,061
A proposed rate change starting January 1, 2015 will increase revenue to a level that will allow us to sustain the Print Shop operation, allow for continual replacement of equipment and still keep rates well below commercial market averages..
(117,946)
$6,437,061
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 Revenues in the Maintenance and Replacement funds are still on track for 2014. Print Shop revenues continue to be flat from 2013 to 2014. There is still a proposed rate change starting January 1, 2015 that will increase revenue to a level that will allow us to sustain the Print Shop operation, allow for continual replacement of equipment and still keep rates well below commercial market averages.
Expenditure Highlights Expenditures are currently on track in the Maintenance and Replacement funds. The requested $486,250 to purchase replacement data center infrastructure hardware has occurred. As a reminder, $350,000 was budgeted for expenditures in 2015 but we are seeking to use those funds in 2014 to replace equipment that will not be covered under maintenance after December 2014. We added an additional $138,250 to purchase additional computing capacity to help handle several new initiatives that are currently underway. These are Knowledge Management, test environments, Courts online payments, and enterprise content management. We will replenish the Replacement fund with funds from each of the previously mentioned projects. Print Shop expenditures are above 2013 numbers as a result of the outright purchase of new equipment in the Print Shop. We have a healthy fund balance and used just over $80,000 of the balance to purchase equipment with an expected useful life of seven years. The propsed chargeback model for the Print Shop will allow us to continue to provide a highquality product at a cost well below commercial rates.
22
Vehicles Vehicles Fund
2014 Budget
As of 09/30/14
$6,350,000
$6,350,000
Maintenance Transfers
$2,262,414
$1,690,139
$1,647,435
Replacement Transfers
1,115,772
839,813
836,829
116,579
125,072
116,282
$3,494,765
$2,655,023
$2,600,546
Maintenance
$2,071,728
$1,462,576
$1,534,282
Replacement
1,972,400
1,213,289
1,169,297
$4,044,128
$2,675,865
$2,703,579
Beginning Fund Balance
As of 09/30/13
Revenues
Other Total Revenues Expenditures
Total Expenditures Income/(Loss) Ending Fund Balance
(549,363)
(20,842)
$5,800,637
$6,329,158
2014 Budget
As of 09/30/14
$2,131,000
$2,131,000
$ 431,165
$ 323,476
(103,033)
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 2013 levels. For the City as a whole, Vehicle Maintenance transfers remain roughly at 2013 levels.
Expenditure Highlights A total of 51 units (vehicles and equipment combined) are scheduled for replacement in 2014. In 2013, approximately 30 units were replaced.
Buildings Building Fund Beginning Fund Balance
As of 09/30/13
Revenues Replacement Transfers Other Total Revenues
$ 305,513
134,721
130,096
125,608
$ 565,886
$ 453,572
$ 431,121
Expenditures Replacement
$ 366,681
Capital Lease
117,396
85,398
84,293
$ 484,077
$85,934
$ 168,369
81,809
367,637
262,752
$2,212,809
$2,498,637
Total Expenditures Income/(Loss) Ending Fund Balance
$
536
$
84,076
Overview 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 Highlights Monthly replacement charges from contributing funds generally remain at 2013 levels. The minor increase is due to both PD Tax Increment Funds beginning to pay into the Fund for future replacements at the Lake Arbor and West Woods Community Stations.
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. The term of this lease expires in 2016. Payments for the completed replacement of the Arvada Community Food Bank parking lot and concrete repair at the George Meyers Pool were posted at the beginning of the fourth quarter and are not reflected here.
23
Arvada Economic Development Association Revenue Highlights Revenue in the AEDA Operations Fund consists of a transfer from the general fund equal to the personnel and operating expenditures.
Operations
Expenditure Highlights
Beginning Fund Balance
Year-to-date expenditures in 2014 are at 68% of budgeted expenditures and are comparable to 2013 expenditures. Salaries and benefits represent the largest expenditure at approximately 45% of the expenditures.
As of 09/30/13
$396,890
Revenue
775,000
585,046
564,289
Expenditures
766,881
521,780
490,081
$405,009
$460,156
Ending Fund Balance
2014
Beginning Cash Balance
$875,781
Expenditures
As of 09/30/14
$396,890
Program
Revenue
2014 Budget
11,936 (223,577)
Ending Cash Balance
664,140
Reserved for Job Creation Program
(23,500)
Reserved for New Entrepreneur Program
(19,500)
Arvada Manufacturing Initiative
(19,200)
Small Business Grant Program Phase 5
(14,144)
Commitments
(476,242)
Available Unallocated Cash Balance
$111,554
24
Revenue Highlights Revenues in 2014 consist of interest income and the repayment of one loan.
Expenditure Highlights Expenditures in 2014 reflect 18 AEDA small business grants and one loan. The grants were used to help Arvada businesses improve signage, landscaping, facades, and site improvements.
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 2014 yield of .653% which is an increase of 14bps when compared to the year-to-date third quarter 2013 yield of .517%. 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 .42%, constructed using the average 2014 monthly returns. The City’s portfolio yield has increased over the last four quarters due to slight increases in investment yields. The Feds have left interest rates low as 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 $36 million in investment calls during the first three quarters of the year due to the expiration of call “lockout” periods. 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:
25
Interest Earnings Portfolio Yield Benchmark Yield Tracking Error
PORTFOLIO PERFORMANCE 09/30/2014 09/30/2013 $774,488 $844,124 0.653% 0.517% 0.420% 0.340% +23bps +18ps
Money Market Savings/Cash CD Corporate LGIP US Agency US Treasury Total
PORTFOLIO CHANGES 09/30/2014 09/30/2013 $1,013,670 $1,012,646 12,498,356 19,910,479 15,151,772 19,320,829 5,995,000 0 18,464,446 28,022,079 115,725,000 112,600,000 0 2,000,000 $168,848,244 $182,866,033
Difference -$69,636 0.136% 0.080% 5bps
Difference $ 1,024 -7,412,123 -4,169,057 5,995,000 -9,557,633 3,125,000 -2,000,000 -$14,017,789
ACCOUNT SUMMARY Par Value Book Value Market Value Unrealized Gain/(Loss)
$168,848,244 $168,848,559 $168,391,092 ($457,152) PORTFOLIO CHARACTERISTICS
Average Duration (yrs) Average Coupon Average Cost YTM Average Market YTM
2.03 0.656% 0.722% 0.837%
PORTFOLIO ALLOCATION
MATURITY DISTRIBUTION
U.S. Agencies, 68.5%
Money Market, 0.6%
38.3%
40.0% 30.0%
22.0%
18.7%
20.0% LGIP, 10.9%
13.3% 5.9%
10.0% Corporate, 3.6% CD, 9.0%
0.0%
Savings/ Cash, 7.4%
26
0-.25
.25-1
1.8% 1-2
2-3
Maturity (yrs)
3-4
4-5
City of Arvada Investments as of Septmeber 30, 2014 The City’s portfolio as of September 30, 2014 is shown below, which includes credit ratings as of September 30, face value and actual interest earnings for 2014. Description
CUSIP/Ticker
Credit Rating 09/30/2014
Coupon Rate
Maturity Date
Ending Face
Interest
Amount/Shares
Dividends
SAVINGS/CHECKING JPMorgan Chase Savings
CHASE
N/A
0.05%
N/A
1,046,487.25
1,022.75
Wells Fargo Savings
WELLSFARGO
N/A
0.09%
N/A
1,035,868.98
3,287.42
0.30%
N/A
10,416,000.00
Wells Fargo Checking Sub Total Savings/Checking
12,498,356.23
4,310.17
CERTIFICATE OF DEPOSIT FIRSTBANK
CD7281
N/A
0.30%
12/02/2014
5,144,125.42
11,487.15
Vectra Bank
4094504774
N/A
0.30%
03/18/2015
5,003,823.36
3,823.36
Vectra Bank
4049504782
N/A
0.30%
03/18/2015
Sub Total Certificate Of Deposit
5,003,823.36
3,823.36
15,151,772.14
19,133.87
CORPORATE Apple, Inc
037833AH3
AA1
0.45%
05/03/2016
1,410,000.00
3,172.50
Exxon Mobil
30231GAA0
AAA
0.92%
03/15/2017
1,500,000.00
6,715.62
Berkshire Hathaway
084664BX8
AA2
0.95%
08/15/2016
3,085,000.00
29,307.50
5,995,000.00
39,195.62
8,019,393.85
7,394.69
Sub Total Corporate LOCAL GOVERNMENT INVESTMENT POOL C Safe LGIP
CSAFE
AAAm
0.12%
N/A
Colo Trust LGIP
COLOTRUST8001
AAAm
0.12%
N/A
Sub Total Local Government Investment Pool
10,445,051.68
1,273.29
18,464,445.53
8,667.98
1,013,669.78
710.23
1,013,669.78
710.23
MONEY MARKET CSIP MM
CSIP
AAAm
0.09%
N/A
Sub Total Money Market US AGENCY FFCB
3133ED7L0
AAA
0.33%
11/13/2015
5,000,000.00
8,250.00
FFCB
3133ED6Z0
AAA
0.55%
05/12/2016
3,000,000.00
8,250.00
FFCB
3133EC3M4
AAA
0.60%
11/21/2016
3,000,000.00
9,000.00
FFCB
3133ECP40
AAA
0.64%
05/09/2017
5,000,000.00
16,000.00
FFCB
3133EAU22
AAA
0.68%
09/12/2016
5,000,000.00
34,000.00
FFCB
3133EDTR3
AAA
1.09%
08/28/2017
4,125,000.00
0.00
FHLB
313381QX6
AAA
0.55%
07/25/2016
3,000,000.00
16,500.00
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
35,000.00
FHLB
313382HT3
AAA
0.75%
03/27/2017
5,000,000.00
37,500.00
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
12,000.00
Chart continues next page
27
Description
CUSIP/Ticker
Credit Rating 09/30/2014
Coupon Rate
Maturity Date
Ending Face
Interest
Amount/Shares
Dividends
FHLB
3134G4ZY7
AAA
1.02%
04/21/2017
3,000,000.00
0.00
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
37,800.00
FHLB
313382FL2
AAA
0.63%
03/27/2018
5,000,000.00
34,375.00
FHLB
313382T78
AAA
0.55%
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
3134G56W0
AAA
0.65%
12/23/2016
5,000,000.00
0.00
FHLMC
3134G52G9
AAA
1.00%
01/23/2017
3,000,000.00
7,500.00
FHLMC
3134G4Z76
AAA
1.00%
04/07/2017
3,000,000.00
0.00
FHLMC
3134G5A21
AAA
1.15%
12/26/2017
5,000,000.00
0.00
FHLMC
3134G4VU9
AAA
1.15%
09/11/2017
3,000,000.00
17,250.00
FHLMC
3134G5A54
AAA
1.25%
12/26/2017
5,000,000.00
0.00
FHLMC
3134G4KY3
AAA
1.00%
11/26/2018
3,000,000.00
15,000.00
FNMA
3136G0RX1
AAA
1.00%
07/26/2017
5,000,000.00
50,000.00
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
Subtotal Agency
115,725,000.00
481,675.00
TOTALS
168,848,243.68
553,692.87
Investment Management Focus - 2014 2014 continues to be a struggle for the capital markets as the Fed has kept interest rates low, which will continue through 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 and capital needs. 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.
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Finance Department • 8101 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, Controller Arlene Martinez, Executive Assistant Vesta Weinhauer, Treasury Analyst