2014 Year-End
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 Year End The Financial Report provides an unaudited overview of the City’s major funds, including revenue and expenditure overall performance. This document is not meant to be a complete representation of the City’s financial performance, but rather a high-level look at the highlights.
2014 was a historic year for revenues throughout the City of Arvada, but especially in the General Fund. Total revenues grew by 15% over 2013 and surpassed budget by $6.5 million. Growth was experienced in all major revenue categories, highlighted by sales tax, auto use tax and building-related revenues. Building activity continued its torrid pace through the fourth quarter of 2014. As the graph shows below, the City issued 581 single-family building permits, generating a little more than $9 million in building-related revenues. This was a 53% increase over 2013 and the largest number of single-family building permits generated on record.
General Fund Building Revenue 600
$10,000,000 $9,000,000
480
Dollars
$7,000,000
360
$6,000,000 $5,000,000
240
$4,000,000 $3,000,000
120
$2,000,000 $1,000,000 $0 GF Building Revenue Single Family (Detached) Permits
0
2010 $4,201,763
2011 $3,896,438
2012 $5,137,472
2013 $6,072,258
2014 $9,200,979
151
125
321
427
581
Sales tax was up 7.5% over 2013 with the growth spread across all of the major categories except health and specialty foods. The largest increases, greater than 20%, were in fast-casual restaurants and furniture, appliance and flooring stores. These categories show a direct relationship to the increased building activity. Other sales tax categories demonstrated strong growth including grocery at 6.3%, department stores at 5.4%, retail hardware at 5.5% and restaurants at 8.8%. Finally, auto care also demonstrated a double-digit increase, likely driven by the continued growth in new auto sales. Auto use tax was up 11% over 2013. This represents the sixth straight year of growth in this revenue category. The highly anticipated Olde Town Transit Hub began construction in the fourth quarter. Removal of the Olde Town Grandview parking lot, utility relocations, shoring and phase one of excavation are the current tasks. The project, which includes over 600 parking spaces, multiple plazas and a bus transfer facility, is scheduled for completion in the third quarter of 2016. The City will use some of its 2014 one-time revenues to help complete the financial plan for the project.
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Permits
$8,000,000
The Arvada Center continues to work on a proposed governance change. The creation of a new 501(c)3 has been completed and the proposed operating agreement will go to Council for approval later in 2015. 2014 saw much of the same for the Center, award-winning performances and successful education sessions. However, rising costs and flat revenues resulted in the need for the General Fund to supplement the Center with an additional cash transfer of $375,000. The current theater season represents a first, as there will be no summer musical offered. This is just one of many cost-cutting measures that will be implemented in the upcoming months. The Police Tax Increment Funds share the same revenue trends as the General Fund with sales tax, auto use tax and building-related revenues all up for the year. Overall revenues will exceed budget by $700,000. The two substations opened in the spring and have already cemented themselves in the community. Planning has begun for a third station in the northwest part of City. Some of the one-time revenues will be set aside for the additional substation, with the remaining funds used to complete the remodel of Baker station, aka police headquarters. The Housing Authority was able to assist 508 families with monthly rent subsidies. Due to the mandatory 5% federal reduction, reserves were used to maintain consistent support levels. If the cuts in funding continue, the Authority will have to look at future program changes. Taps fees continue to be the highlight of the Water and Wastewater funds. This will add much needed capital funds that can be used for system build out, including the pending Gross Reservoir project. Water and Sewer sales are both up small percentage over 2013 but did not increase to meet 2014. This trend will be monitored closely in 2015 as future rates are being established. The Golf Fund returned to profitability in 2014. Rounds again eclipsed the 90,000 golfer mark and over 110,000 patrons visited the restaurants. Revenues increased 13% as “Grow the Game� initiatives, such as Ladies Night and Family Night, continued to bring new golfers to the courses and the restaurants. Course conditions also improved with the addition of three maintenance staff positions. Investment income for 2014 reversed a seven-year declining trend with a 13 basis point increase over 2013. This is still a revenue source that is well under historic averages and one that will probably remain low for a few more years as the Federal Reserve will be slow to raise short-term rates. For perspective, in 2006, our yearly average investment return was 5.07%, and in 2014, it was .647%. As we close the books on 2014, the City has emerged from the recession. Some revenue sources have not returned to pre-recession levels, specifically interest income and HUTF, but many have. Unemployment was 3.7%, lower than both the State average at 4.0% and the National average at 5.6%. Arvada continues to be a place for new business and business expansions with over 70 in 2014 alone. The one-time resources generated in 2014 will be dedicated to one-time reinvestments back into our community, including the Olde Town Transit Hub, AEDA and the land redevelopment code. Additional ongoing revenues will be used to balance our ten-year financial plans and to continue to implement the Strategic Results that have been defined by Council.
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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 2014 budget to 2014 actual fund balance, revenues and projections. We have included the original 2014 budget adopted in October 2013 and the 2014 revised budget, which was a result of the ten-year financial planning model that was completed in the third quarter 2014 and adopted by council in the fourth quarter 2014.
General Fund
2014 Budget
2014 Revised (ten-year plan)
2014 Actual
Beginning Fund Balance
$25,675,000
$25,675,000
$25,675,000
Revenues
$71,572,813
$74,097,724
$80,681,245
$69,459,872
$70,461,599
$68,132,722
6,908,690
7,003,690
7,003,690
EXPENDITURES Ongoing Capital
Revenue Highlights The General Fund will end 2014 with a fund balance of a little more than $31 million. Some of this balance, $2,270,250, will be used for items not completed in 2014. Another portion, $1,864,882, will be dedicated towards one-time items. Some, $3,106,146, will be used to complete the funding package for the Olde Town Transit Hub. The remaining amount will be used towards ongoing operations to help balance our 10-year financial plan and maintain our Council-directed 17% fund balance reserve. 2014 was a tremendous financial year for the General Fund. All revenue categories were up over 2013 and exceeded budgets except interest and property taxes. As you will see on the following pages, sales tax, auto use tax and building-related revenues led the way with increases of 7.5%, 11% and 53% respectively. Overall, revenues experienced a 15% increase over 2013 and finished $6.5 million dollars over budget. A large percentage of this revenue is considered one-time, not able to support ongoing operations, and will be used towards one-time expenditures as mentioned above.
JPPHA Expenditures
1,455,000
1,455,000
200,000
$77,823,562
$78,920,289
$75,336,412
Income/(Loss)
(6,250,749)
(4,822,565)
5,344,833
Money Dedicated for 2015 JPPHA
$
-
$
-
$1,255,000
Carryovers to 2015
-
-
1,015,250
One-time Items added in 2015
-
-
1,864,882
2015 Olde Town Transit Hub
-
-
3,106,146
Total Dedicated Expenditures
$77,823,562
$78,920,289
$82,577,690
Ending Fund Balance
$19,424,251
$20,852,435
$23,778,555
13,230,006
13,416,449
12,807,190
7,435,986
10,971,365
$7,311,054
$7,311,054
Goal (17% of Expenditures) Excess/(Deficit) Use of Fund Balance 2015-2024
Overall, revenues experienced a 15% increase over 2013 and finished $6.5 million dollars over budget. A large percentage of this revenue is considered one-time, not able to support ongoing operations, and will be used towards one-time expenditures.
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GENERAL FUND REVENUES Sales Tax 48%
Property Tax 6%
Use Tax 2%
Auto Use Tax 7% Other 18% Interest 1%
Franchise Fees 6%
Court Fines & Fees 2%
Building Use Tax & Permits 10%
Sales Tax 2014 sales tax collections increased 7.5% over 2013. Four of the top five sales tax producing categories, which include grocery stores, general department stores, retail hardware and restaurants, all showed increases over 5.5%. Utilities and cable television providers, the other top five category, increased a respectable 2.2% over the prior year. Fast-casual restaurants and furniture, appliance and flooring stores each posted increases of more than 20% over 2013. Health and specialty foods was the only category that posted a decrease.
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 $0
2010 Sales Tax $34,776,789
2011 $35,852,374
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2012 $37,954,667
2013 $40,205,021
2014 $43,211,510
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. As previously discussed, building-related revenue is up 53% over last year due to all the new home construction. General use tax is a stable source of revenue and showed a slight decrease versus 2013.
Use Tax Collections
$12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0
Auto use tax collections finished 11% over 2013, which demonstrates that vehicle sales are still strong.
General
2010 $1,374,997
2011 $1,511,848
2012 $1,220,977
2013 $1,554,343
2014 $1,533,818
Auto
$3,981,079
$4,340,794
$4,804,227
$5,379,579
$5,982,520
Building
$1,732,770
$1,780,442
$2,385,633
$2,884,866
$4,426,409
Building
Property Tax
Auto
General
Property Tax Collections
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.
$5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000
Property tax collections in 2014 were $49,005 below the budgeted amount. However, since real property is only appraised every odd-numbered year, tax collections trail the actual change in values.
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. In 2014, this revenue increased 2% over 2013. While these revenue sources are a stable source of revenue, they have not increased at the same pace as the cost of street maintenance; therefore, other general fund revenues have filled the gap.
$1,500,000 $1,000,000 $500,000 $0 Property Tax
2010 $4,637,622
2011 $4,643,015
2012 $4,500,376
2013 $4,556,940
2014 $4,600,995
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
2010 $3,791,075
2011 $3,809,048
2012 $3,818,142
2013 $3,847,443
2014 $3,949,386
$970,357
$776,092
$855,684
$718,844
$730,239
Jefferson County
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HUTF
Expenditure Highlights Total expenditures show savings of a little over $3.5 million. Unspent JPPHA funds, or $1,255,000, and carryovers of $1,015,250, make up the bulk of this savings. The remaining dollars are spread across all of the major expenditure categories due to departments’ conservative spending and strong financial management.
GENERAL FUND EXPENDITURES
Miscellaneous 1%
Transfers 20%
Personnel 48% Debt Service 5%
Contracts 11%
Supplies and Expenses 6% Services and Charges 9%
Salary and Benefit Savings Salary & Benefits Salaries & Wages Vacancy Savings Overtime
2014 Budget $28,894,508
2014 Actual $28,377,493
(782,730)
-
967,013
845,602
Group Insurance
5,481,633
5,189,265
Retirement
3,269,351
3,258,280
Medicare
357,499
352,629
Temporary Wages & SS
345,916
299,968
Other Total
388,736
352,144
$38,921,926
$38,675,381
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Despite seven high-impact retirements in 2014, the General Fund met its budgeted Vacancy Savings total for the year.
ARVADA CENTER
ARVADA CENTER
Arvada Center Revenue Highlights SCFD revenues saw an increase over 2013 of just over 1% or $10,491. This was a disappointment as the budget included a 3% increase. Greater competition in the Tier II market impacted the Center’s ability to hit the revenue targets.
Arvada Center
2014 Budget
2014 Actual
Beginning Fund Balance
$
232,000
$ 232,000
$ 6,283,090
$ 5,115,836
SCFD
1,096,970
1,039,076
City Cash Transfer-Original
1,643,122
1,643,122
-
375,000
2,040,000
1,957,871
REVENUES Generated
City Cash Transfer-Additional City In-Kind Transfer Total Revenues
$11,063,182
$10,130,905
$ 9,044,290
$ 8,204,755
EXPENDITURES Ongoing In-Kind Total Expenditures
2,040,000
1,957,871
$11,084,290
$10,162,626
Income/(Loss)
(21,108)
Ending Fund Balance
211,173
200,560
1,219,272
1,117,889
$(1,008,099)
$ (917,329)
Goal (11% of Expenditures) Excess/(Deficit)
(31,721)
SCFD Revenue $1,200,000 $1,000,000
Contributed revenue increased slightly in total from 2013 by approximately $6,000 or 2.2%. This increase is attributed to an increase of approximately 45% or $12,700 in foundation contributions.
$800,000 $600,000 $400,000 $200,000 $0
2010
2011
2012
2013
2014
For the summer concert series in 2014, the Center created a new partnership with Swallow Hill Music Association, a SCFD Tier II organization. This partnership uses Swallow Hill’s expertise and experience in identifying and booking talent in combination with the Center’s outdoor amphitheater and reputation for high-quality production. The Swallow Hill partnership provides for revenue sharing, something that did not exist previously and allowed the Center to generate net revenue from the concert series. After the first year with Swallow Hill the Center had increased attendance by 2,800 and in ticket sales by about $120,000. As the two organizations continue to work together, the series is expected to generate larger audiences and larger revenue gains.
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The Arvada Center experienced another topsy-turvy year in 2014. There were positives along the way including: SCFD, contributed revenue, summer concert series and marketing. The challenges included: education, overall ticket sales and production costs related to the theater shows. When the books were closed on the year, the Center needed an additional $405,200 to make ends meet. A portion of this difference was funded in the form of a $375,000 supplemental cash transfer from the General Fund, leaving a gap of $31,700. This gap will come out of the Center’s fund balance. The total cash contributed from the General Fund to the Center for 2014 was $2,017,122. An additional $1,957,871 of in-kind support was provided, for total General Fund support of $3,975,993. The 2014-2015 theater season continues the Center’s tradition of positive reaction from both patrons and critics. The partnership with Creede Repertory Theater was extended for the fifth year with great success in the production of The Last Romance. This season marks a change that will be realized in 2015: the Center will not be offering a summer musical. This change will benefit the Center financially but is a significant change to the season structure.
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
Cash
In-Kind 2010
2011
2012
Total 2013
2014
Expenditure Highlights Education programs decreased expenses by $73,900 or 8.49% from 2013 but experienced a 10.1% decrease in revenue from 2013. Performing Arts programs continue to work toward reduced show expenses. Although show expenses were reduced in the first half of the year, overall there was a 10%, or $375,000, increase in expenses. Marketing expenditures are down 11.06% or $143,513 from 2013. The Center is constantly working on the right mix in support of increased ticket sales.
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PARKS FUND
PARKS FUND
Parks Fund Revenue Highlights Total revenues were 5% greater in 2014 than in 2013, primarily driven by a 4% increase in Jefferson County Open Space monies and a 2% increase in General Fund cash transfer. Program revenues at the Majestic View Nature Center increased as a result of expanded public hours authorized in the 2014 budget; more than 20,000 visited the center in 2014. Lake recreation revenue exceeded $40,000 with more than 20,000 visitiors to Arvada Blunn Reservoir.
Expenditure Highlights Total expenses were 6% greater in 2014 than in 2013, highlighted by the completion of many park projects including Ralston Central Park, Memorial Park and many “Taking Lasting Care� projects. 2014 actual expenditures came in 3.5% below budget due to savings in personnel, fuel and professional services.
Parks Fund Beginning Fund Balance
2014 Budget
2014 Actual
$4,300,000
$4,300,000
$3,514,740
$3,685,566
2,971,913
2,937,398
APEX Reimbursement
954,810
866,384
Other
187,848
288,958
$7,629,311
$7,778,305
$7,878,273
$7,612,786
-
-
$7,878,273
$7,612,786
REVENUES Open Space City Cash Transfer
Total Revenues EXPENDITURES Ongoing Capital Total Expenditures Income/(Loss) Ending Fund Balance Goal (11% of Expenditures) Excess/(Deficit)
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(248,962)
165,519
$4,051,038
$4,465,519
866,610
837,406
$3,184,428
$3,628,113
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 $-
2010 $917,719
2011 $868,652
2012 $890,116
2013 $829,762
2014 $864,698
Cash Transfer
$3,109,960
$2,740,040
$2,790,917
$2,883,545
$2,937,398
Open Space
$4,001,617
$3,142,349
$3,312,981
$3,537,126
$3,685,566
APEX
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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 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.
Revenue Highlights Sales Tax and Use Taxes (Auto, General and Building) have all increased in comparison to year-end 2013. 2014 Sales Tax has increased by 7.40% and Use Taxes by 21.56%. Revenue generated from partnership with agencies such as Colorado Automobile Theft Prevention Program (BATTLE), High Visibility Impaired Driving Enforcement (HVE) and Jefferson County Emergency Communications Authority has provided reimbursement recovered costs just under $59,000 for 2014. Continued participation with grant programs such as; Rocky Mountain High Intensity Drug Trafficking Association (HIDTA), a state grant, and Enforcing Underage Drinking Laws (EUDL), a federal grant, created revenue in 2014 of $82,000. 2014 saw the expected completion of the two Community Stations. Lake Arbor Community Station ground preparation was more extensive than the West Woods Community Station and as a result $400,000 was transferred between funds to equalize the project burden.
.21 and .25 Tax Increment Funds
2014 Budget
2014 Actual
Beginning Fund Balance
$7,979,000
$7,979,000
$6,559,220
$6,793,186
1,529,040
1,834,322
158,040
718,180
$8,246,300
$9,345,689
Ongoing
$7,554,599
$7,330,252
Capital
3,344,728
2,546,692
$10,899,327
$9,876,944
REVENUES Sales Tax/Audit Revenue Use Tax Other Total Revenues EXPENDITURES
Total Expenditures Income/(Loss)
(2,653,027)
Ending Fund Balance
$5,325,973
$7,447,745
1,198,926
1,086,464
$4,127,047
$6,361,281
Goal (11% of Expenditures) Excess/(Deficit)
(531,255)
Expenditure Highlights With the timely completion of the Community Stations, the realignment of personnel and the rollout of FOCUS, 2014 experienced seven retirements which resulted in promotions throughout the programs. This resulted in salaries using 95.82% of budget with a salary savings of $175,275 and combined benefits only utilizing 89.46% of budget with an overall savings of $161,966. Overtime also saw a savings in over $50,000 or 81% of their budget.
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Community Development
Arvada Housing Authority
Community Development Fund
2014 Budget
2014 Actual
Arvada Housing Authority
2014 Budget
2014 Actual
Beginning Fund Balance
$6,896,000
$6,896,000
Beginning Fund Balance
$ 195,000
$ 195,000
$114,737
$277,969
Recovered
$
$
668,000
511,352
Grants
3,900,000
3,516,725
City Cash Transfer
45,000
45,000
26,000
60,000
Interest/Other
19,500
(22,835)
Interest/Other
5,464
281
Total Revenues
$ 847,237
$ 811,486
Total Revenues
$3,950,642
$3,598,298
$ 922,859
$ 749,709
Ongoing
$ 430,578
$ 352,165
380,625
350,074
Rents
3,532,200
3,398,974
80,000
80,000
Transfers
330,077
227,370
Total Expenditures
$1,713,561
$1,407,153
(866,324)
(595,667)
$6,029,676
$6,300,333
Revenues Recovered Grants
Revenues
Transfers
Expenditures Ongoing Essential Home Repairs Loans Capital Project Transfer Total Expenditures Income/(Loss) Ending Fund Balance
19,178
21,291
Expenditures
30,420
26,378
$3,993,198
$3,777,517
Income/(Loss)
(42,557)
Ending Fund Balance
$ 152,444
(153,166) $
15,780
Arvada Housing Authority
Community Development Revenue Highlights
Revenue Highlights
Among Recovered Revenues were two repayments from the Jefferson County Housing Authority totaling $55,000 related to the Viking Square and Aspen Ridge apartment complexes. Grants Revenue was below budget due to spending constraints from cuts related to Federal budget sequestration.
The Housing Authority operated at a 95% proration in Grants Revenue in 2014 due to mandatory cuts initiated during the prior year Federal budget sequestration. Due to the mandatory cuts, Grants Revenue fell well below the original budget.
Expenditure Highlights Expenditure Highlights
As of 12/31/2014, the Arvada Housing Authority was assisting 508 families with monthly rent subsidies. These subsidies constituted approximately 90% of the Fund’s expenditures in 2014.
The Capital Project Transfer reflects funding for the Memorial Neighborhood Park Revitalization project and sidewalk replacements along West 59th Place between Kipling Street and Miller Street. The gap between Revenues and Expenditures reflects the use of some HODAG funding in 2014. Loan Expenditures represent payments to the Jefferson County Housing Authority related to Viking Square and Aspen Ridge.
EOC ENERGY ASSISTANCE 2010-2014 Dollars (Grants)
The City directly receives funding from Energy Outreach Colorado (EOC), a nonprofit
$60,000
corporation, and disburses it to low-income related to energy. Since 2011, the City received supplemental funding from EOC, which accounts for the notable increase in 2011.
(119)
$50,000
Total Dollars
residents of Arvada as assistance with costs
(113)
$40,000
(119)
(117)
(67)
$30,000 $20,000 $10,000 $0 Dollars
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2010 $24,309
2011 $48,800
2012 $52,000
2013 $44,212
2014 $44,492
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 2014, the majority of the revenues in the Capital Improvement Project (CIP) fund consisted of transfers from the General Fund, Water Fund, Grants Fund and Community Development Fund. Other revenues include park development fees, grant revenue and contributions from other governmental agencies.
Capital Projects Capital Improvement Fund Beginning Fund Balance
2014 Budget
2014 Actual
$44,829,977
$44,829,977
$4,358,690
$7,734,936
-
2,056,222
$4,358,690
$9,791,158
CIP Administration
$21,312,544
$7,139,260
CIP Street Projects
497,000
1,568,041
CIP Traffic Projects
3,888,832
2,201,453
CIP Park Projects
1,294,106
4,832,200
146,500
370,533
Total Expenditures
$27,138,982
$16,111,487
Ending Fund Balance
$22,049,685
$38,509,648
REVENUES Transfers in Other revenue Total Revenues EXPENDITURES
CIP Arvada Center Projects
Anticipated Grant Revenue
10,280,844
Assigned for Projects: CIP Administration CIP Buildings
$25,078,370 589,165
CIP Street Projects
6,860,367
CIP Traffic Projects
7,505,257
CIP Park Projects
6,791,994
CIP Arvada Center Projects 8% Reserve Total Assigned for Projects Ending Fund Balance
510,480 1,288,919 48,624,553 $165,938
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Expenditure Highlights The City’s three priority areas are reflected throughout 2014 expenditures. Playground renovation at Bridgeside, Homestead, Yankee Doodle, Lady Bug, Lew Walsh and Club Crest South Parks, as well as an internal project to replace the outdated police radio system, demonstrate “Taking Lasting Care” of current assets. There are several park projects that continue “Building our Base”, including the completion of Ralston Central Park and the very popular spray park, the Memorial Neighborhood Revitalization Park project, restrooms at Long Lake Ranch and water taps for Mesa Maverick and Church’s Crossing Parks. The planned transit hub at the Gold Line station along the Gold Line represents “Investing for the Future” and the largest project that the City is currently undertaking. The design and construction of a transit hub will support the activities related to the future Gold Line station in Olde Town. In 2014, property was purchased to expand the plaza and the rest of 2014 was spent designing the transit hub. In the fourth quarter of 2014, the City began excavation for the Transit Hub. Construction will continue through 2015 with a planned opening in 2016. Finally, the City started to install fiber along 64th Avenue.
Reserved Funds The CIP fund ended 2014 with a fund balance of over $38 million and confirmed grant revenues of $10 million that will fund a variety of projects in various stages of design and construction.
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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.
enterprise funds
Water Fund Water Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$66,779,000
$66,779,000
$20,026,271
$17,647,949
Tap Fees
4,835,189
10,167,203
Interest
266,645
250,504
Other
682,972
2,234,348
$25,811,077
$30,300,004
REVENUES Water Charges
Total Revenues EXPENDITURES Ongoing
$17,194,402
$15,918,172
Debt Service
2,260,700
2,253,407
Major Capital Maintenance
4,065,596
4,538,880
Capital
4,096,356
1,879,908
$27,617,054
$24,590,368
Total Expenditures Income/(Loss)
(1,805,977)
5,709,636
Ending Fund Balance
$64,973,023
$72,488,636
Cash Escrow for Gross Reservoir
$36,989,586
$36,989,586
6,904,264
6,147,592
$21,079,173
$29,351,458
Goal (25% of Expenditures) Excess/(Deficit)
15
The Water Fund accounts for all activities within the scope of the water utility operations including administration, operations, capital water projects, financing and related debt service and billing and collection.
Revenue Highlights Revenues from Water Charges were up 3.9% for the year, with consumption up 1.4% over 2013. Despite this modest increase in consumption, Water Charges came in under budget. Water taps continue to be sold at an incredible pace, reflecting both continued substantial building activity and the purchase of four substantial irrigation taps for developer-constructed parks in northwest Arvada. As for Other Revenues, substantial sales of water meters and water used for construction purposes came in well above the budget.
Expenditure Highlights Major Capital Maintenance expenditures exceeded the budget in 2014 as a direct result of 2013 flooding. The flood delayed the 2013 completion of pipe replacement and associated asphalt work under contract. Funding originally programmed to complete that contract in 2013 was diverted to immediately address flood damage in various areas of the City’s water system. As a result, those funds were not available to carry over into 2014 to pay for the completion of the work which started in 2013. With that said, both sufficient funding and appropriation were otherwise available in the Water Fund to offset the net increase in Major Capital Maintenance work for the year.
Water Consumption This chart, with data provided by Utilities, shows water consumption since 2010.
WATER CONSUMPTION
Thousands of Gallons
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 1000s of Gallons
2010 5,150,842
2011 5,049,729
2012 5,700,412
2013 4,707,585
2014 4,775,208
Water Tap Fees This chart shows water tap fee revenue since 2010.
Dollars
WATER FUND - TAP FEES $10,400,000 $9,600,000 $8,800,000 $8,000,000 $7,200,000 $6,400,000 $5,600,000 $4,800,000 $4,000,000 $3,200,000 $2,400,000 $1,600,000 $800,000 $Tap Fees
2010 $1,785,928
2011 $2,394,111
2012 $4,378,473
16
2013 $7,896,850
2014 $10,167,203
Wastewater Fund The Wastewater Fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater. WasteWater Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$11,893,000
$11,893,000
$11,730,087
$10,503,782
Tap Fees
380,403
1,001,500
Interest
633,620
95,282
Other
523,451
933,791
$13,267,561
$12,534,355
REVENUES Sewer Charges
Total Revenues EXPENDITURES Metro District
$7,500,000
$7,380,728
Ongoing
3,128,501
2,742,535
Major Capital Maintenance
1,961,852
1,194,471
204,600
-
$12,794,953
$11,317,735
472,608
1,216,621
$12,365,608
$13,109,621
3,198,738
2,829,434
$9,166,869
$10,280,187
Capital Total Expenditures Income/(Loss) Ending Fund Balance Goal (25% of Expenditures) Excess/(Deficit)
Revenue Highlights Sewer Tap Fee Revenues remained at an historically high level due to continued incredible levels of residential construction. Revenue from Sewer Charges for 2014 rose a modest 1.6% over the previous year. Receipts from Clear Creek Valley Water & Sanitation District for the use of the City’s sewer mains to transport its effluent to Metro Wastewater facilities came in higher than what was budgeted, as reflected in the elevated Other Revenues.
Expenditure Highlights Treatment charges from the Metro Wastewater Reclamation District represented nearly two-thirds of Total Expenditures in 2014. Expenditures on Major Capital Maintenance came in well under budget due to the timing of work. Utilities has requested that most of this funding be carried over into 2015.
Wastewater Tap Fees
Dollars
This chart shows sewer tap fee revenue since 2010.
WASTEWATER FUND - TAP FEES
$1,040,000 $960,000 $880,000 $800,000 $720,000 $640,000 $560,000 $480,000 $400,000 $320,000 $240,000 $160,000 $80,000 $Tap Fees
2010 $232,062
2011 $343,561
17
2012 $834,078
2013 $849,001
2014 $1,001,500
Stormwater Fund The Stormwater Fund accounts for all activities necessary to maintain a stormwater management plan. Stormwater Fund Beginning Fund Balance
2014 Budget
2014 Actual
$5,941,000
$5,941,000
$3,147,497
$3,223,720
28,031
258,193
$3,175,528
$3,481,913
$2,062,029
$1,277,821
932,800
932,800
5,415,414
1,644,892
Total Expenditures
$8,410,243
$3,855,513
Income/(Loss)
(5,234,715)
REVENUES Stormwater Fee Other Total Revenues EXPENDITURES Ongoing Debt Service Capital
(373,600)
Ending Fund Balance
$706,285
$5,567,400
Goal (25% of Expenditures)
2,102,561
963,878
Excess/(Deficit)
$(1,396,276)
$4,603,521
18
Revenue Highlights The City’s Stormwater Utility Fee Revenue, which represents nearly all revenue for the Stormwater Fund, came in consistent with the Budget. The rate for the Stormwater Utility Fee in 2014 had not changed since 2009, though it was increased as of January 1, 2015.
Expenditure Highlights The budget for capital included substantial carryovers from previous years to address potential scenarios for the Garrison Street Bridge Replacement. With all Stormwater-related work completed, this appropriation will be allowed to expire. Ongoing Expenditures came in well under budget due to unspent funding for minor work as opportunities arose.
Golf Fund Revenue Highlights Total revenues were 13% greater in 2014 than in 2013, with golf revenues exceeding $3,000,000 in sales and restaurant revenues topping $1,400,000. Fueling this was a 6% increase in rounds played at West Woods Golf Club, a rate increase in the golf and restaurant price structure and a number of new Grow the Game initiatives that brought new customers to Arvada Golf. Additionally, West Woods Golf Club ran a well-received, year-long 20th anniversary celebration.
Golf Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$ 101,000
$ 101,000
Golf Courses
$3,383,085
$3,041,055
Restaurants
1,193,135
1,405,089
209,475
209,475
Expenditure Highlights
Total Revenues
$4,785,695
$4,655,619
Golf Courses
$1,942,006
$1,699,493
Restaurants
1,363,125
1,348,756
Administration
1,491,869
1,487,835
Total expenditures were 10% greater in 2014 than in 2013. Highlights include the addition of three benefitted Golf Maintenance Worker positions, authorized in the 2014 budget, and increased building maintenance and equipment replacement expenses relating to aging golf facilities. More than 90,000 golfers played at the City’s golf courses and more than 110,000 guests were served at its restaurants. The Golf Fund fund balance increased by more than $100,000.
REVENUES
City Cash Transfer
EXPENDITURES
Capital Total Expenditures
33,000
13,549
$4,830,000
$4,549,634
(44,305)
105,985
Income/(Loss) Ending Fund Balance
$
56,695
$ 206,985
Goal (11% of Expenditures)
531,300
500,460
Excess/(Deficit)
(474,605)
(293,475)
Golf Rounds by Type - January thru December WEST WOODS
Regular
Special
Tournament
Annual
Senior
Junior
Other
Total
2013
21,548
9,544
2,226
6,687
4,987
780
488
46,260
2014
29,241
2,559
2,105
7,617
6,302
876
484
49,184
7,693
-6,985
-121
930
1,315
96
-4
2,924
36%
-73%
-5%
14%
26%
12%
-1%
6%
LAKE ARBOR
Regular
Special
Tournament
Annual
Senior
Junior
Other
Total
2013
19,996
2,764
878
17,964
0
650
1,865
44,117
2014
12,971
5,517
716
16,370
4,283
656
1,242
41,755
-7,025
2,753
-162
-1,594
4,283
6
-623
-2,362
-35%
100%
-18%
-9%
100%
1%
-33%
-5%
19
Hospitality Fund Revenue Highlights In addition to looking at program revenues in the Hospitality fund, for purposes of more detailed analysis in reviewing and understanding sources and trends, revenues are further broken down into market segments. Total revenues were 4% greater in 2014 than in 2013, driven by increases in the government, association and religious market segments. Arvada Center and In-House market segments decreased $32,000 compared to 2013; historically, these segments produced over $200,000 in revenue annually. Over the last five years, this has been reduced to approximately $75,000. The education and government market segments are slow in responding to an improving economy and showed a decrease of $29,000 in 2014 compared to 2013.
Expenditure Highlights Total expenditures were 7% less in 2014 than in 2013, highlighted by fewer commodities and less replacement equipment being purchased. Overall, 12% or 5,847 more guests visited the Arvada Center Banquet and Conference Center in 2014 compared to 2013, for a total of 52,877. This increase was due to the Arvada Covenant Church hosting their weekly services, as well as an increase in the association and corporate markets segments.
Hospitality Fund
2014 Budget
2014 Actual
$ 554,000
$ 554,000
$1,002,310
$ 783,811
Concession Services
176,994
181,900
Banquet and Guest Services
523,074
444,229
$1,702,378
$1,409,940
$ 347,603
$ 370,882
1,378,228
965,196
127,000
-
27,468
27,468
$1,880,299
$1,363,546
Beginning Fund Balance REVENUES Sales
Total Revenues EXPENDITURES Administration Operations Capital Transfer to General Fund Total Expenditures Income/(Loss)
(177,921)
Ending Fund Balance Goal (11% of Expenditures) Excess/(Deficit)
Overall, 12% or 5,847 more guests visited the Arvada Center Banquet and Conference Center in 2014 compared to 2013.
20
46,393
$376,079
$600,393
206,833
149,990
$169,247
$450,403
Internal Service Funds Overview We have five Internal Service Funds – Insurance Fund (Risk Management), Computer Fund, Print Services Fund, Vehicles Fund and Building Fund. Internal Service Funds charge internal programs and departments for use of goods and services. 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.
Insurance Fund
Overview
Insurance Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$4,593,000
$4,593,000
2,030,187
2,032,874
70,019
135,604
$2,100,206
$2,168,478
$2,193,468
$1,886,526
445,398
442,976
$2,638,866
$2,329,502
Revenues Contributions Other Total Revenues Expenditures Risk Mgmt Administration Risk Mgmt Operations Total Expenditures Income/(Loss) Ending Fund Balance
INTERNAL SERVICE funds
(538,660) $4,054,340
(161,024) $4,431,976
The Insurance Fund, administered by the Risk Management Program of Finance, accounts for the City’s self-insurance against loss. It is funded with contributions by all City departments and programs based on their levels and types of exposure. The Fund is also used for loss prevention programs, the protection of City personnel and the preservation of City property and assets.
Revenue Highlights With the exception of a modest increase in Operations charges that includes personnel costs, contributions in 2014 by participating Funds generally remained at 2013 levels.
Expenditure Highlights Expenditures related to Workers’ Compensation rose in 2014, due in large part to payments on a small number of high-dollar claims. General liability expenditures also increased due to water & sewer main incidents, as well as additional premiums for increased umbrella liability coverage. The continued emphasis on controlling loss frequency and severity allows for accurate forecasting year over year. Variances in annual costs for premiums, claims and loss control activities have remained stable. *Per GASB Statement 10, an additional $807,882 in cash is currently held in the Insurance Fund to cover potentially incurred liabilities as of the beginning of the year. This figure was reached by Risk Management’s actuary for 2013, the revised figure for 2014 was not available at the time of publication.
21
Computer Fund & Print Services Fund Computer Fund/ Print Services Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$6,134,000
$6,134,000
Maintenance
$956,872
$1,057,563
Replacement
899,318
943,888
Print Shop
450,935
316,980
$2,307,125
$2,318,431
Maintenance
$1,176,321
$693,936
Replacement
1,432,956
1,110,593
501,610
371,727
$3,110,887
$2,176,256
Revenues
Total Revenues Expenditures
Print Shop Total Expenditures Income/(Loss) Ending Fund Balance
(803,762) $5,330,238
142,175 $6,276,175
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 Services Fund provides ongoing capital support for the City’s printing needs. Because these two funds operate to support combined activities within the Information Technology Department, the financial reporting is combined for these two funds.
Revenue Highlights Revenues in both the Maintenance and Replacement Funds stayed on track for 2014. The Maintenance Fund had just over a 9% increase and the Replacement Fund 3.62% in comparison to 2013. Print Services revenues continue to be flat from 2013 to 2014. In the Spring of 2014, the Print Shop reduced the color copy charge from fifty cents per copy to thirty-five cents per copy. Effective January 1, 2015 the black and white copy charge will be increasing from five cents to five and a half cents. This rate change will increase revenue to a level that will sustain Print Shop operations, allowing for continual replacement of equipment while keeiping rates well below the commercial market average.
Expenditure Highlights Expenditures were trailing for the Maintenance and Replacement Funds as some planned projects did not get started. These include $85,000 for the replacement of the Point-of-Sales Systems for the golf courses and $75,000 for a fingerprint system for the police department. What did get completed was the purchase of replacement data center infrastructure hardware (servers and storage), which came from a budget amendment of $486,250. This replacement saved $50,000 of maintenance in 2014. The budget for the Computer and Print Services Funds can vary greatly from year to year. This is due to the differing useful life of all the different technology covered under this fund. Print Services expenditures are above 2013 numbers as a result of the outright purchase of new equipment in the Print Shop, a Color Press and a high-volume black and white printer with multiple finishing capabilities. The expected useful life of these new devices is about seven years.
22
Vehicles Vehicles Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$6,350,000
$6,350,000
Maintenance Transfers
$2,253,518
$2,253,518
Replacement Transfers
1,119,750
1,119,750
116,579
376,999
$3,489,847
$3,750,267
Maintenance
$2,259,370
$2,182,275
Replacement
1,810,800
1,732,355
$4,070,170
$3,914,630
Revenues
Other Total Revenues
Income/(Loss) Ending Fund Balance
(580,323) $5,769,677
The Vehicles Fund provides resources for the maintenance of City vehicles and heavy equipment and/or replacement. 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.
Expenditures
Total Expenditures
Overview
Expenditure Highlights A total of 55 units (vehicles and equipment combined) were replaced in 2014.
(164,363) $6,185,638
Buildings Building Fund
2014 Budget
2014 Actual
Beginning Fund Balance
$2,131,000
$2,131,000
$431,301
$431,301
132,721
148,696
$564,022
$579,997
Revenues Replacement Transfers Other Total Revenues
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 Expenditures Replacement
$366,681
$220,799
Capital Lease
117,396
114,851
$484,077
$335,650
79,945
244,347
$2,210,945
$2,375,347
Total Expenditures Income/(Loss) Ending Fund Balance
23
Monthly replacement charges from contributing funds generally remained at 2013 levels, except for increases to both PD Tax Increment Funds 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. Replacement expenditures include the reconstructed Arvada Community Food Bank parking lot and concrete repair at the George Meyers Pool.
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
Expenditures in 2014 are slightly lower than budget primarily due to reduced spending in professional services, advertising and dues and subscriptions.
2014 Budget $396,890
$396,890
Revenue
775,000
753,964
Expenditures
766,881
746,004
$405,009
$404,850
Ending Fund Balance
Revenue Highlights
Program
2014
Beginning Cash Balance
$875,781
Revenue Expenditures Ending Cash Balance
2014 Actual
21,748 (317,694) 579,835
Reserved for AEDA Loan Program
-
Reserved for Job Creation Program
(23,500)
Reserved for New Entrepreneur Program
(19,500)
Arvada Manufacturing Initiative
(15,000)
Commitments
(395,128)
Available Unallocated Cash Balance
$126,708
24
Revenues in 2014 consist of interest income and the repayment of one loan.
Expenditure Highlights Expenditures in 2014 reflect 27 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 fourth quarter 2014 yield of .647% which is an increase of 11 basis points when compared to the year-to-date fourth quarter 2013 yield of .534%. 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 .450%, 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. However, the investment environment continues to be challenging. The Federal Reserve kept interest rates very low through 2014 and it is expected that the Fed will start raising short-term rates in mid-2015 but that process will be slow. The City’s portfolio saw $50 million in investment calls in 2014. We were able to re-invest some of that money into callable securities with a call “lockout” period of at least 6 months which typically have a little higher yield. The average portfolio duration dropped from 2.43 to 2.04 years as we have invested in shorter maturity ranges in anticipation of rates increasing in 2015. We are also keeping a higher balance in our liquid cash accounts to fund construction costs associated with the Transit Hub. 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 12/31/2014 12/31/2013 $1,034,501 $1,085,950 0.647% 0.534% 0.450% 0.340% +20bps +19bps
Money Market Savings/Cash CD Corporate LGIP US Agency US Treasury Total
PORTFOLIO CHANGES 12/31/2014 12/31/2013 $ 1,013,883 $ 1,012,960 13,289,185 16,216,933 10,015,299 17,270,066 5,995,000 4,495,000 14,965,657 9,945,387 121,725,000 120,600,000 2,000,000 $167,004,025 $171,540,346
Difference $ (51,449) 0.113% 0.110% +1bps
Difference $ 923 (2,927,748) (7,254,767) 1,500,000 5,020,270 1,125,000 (2,000,000) $(4,536,321)
ACCOUNT SUMMARY Par Value Book Value Market Value Unrealized Gain/(Loss)
$167,004,025 $167,004,269 $166,585,268 $ (418,757) PORTFOLIO CHARACTERISTICS
Average Duration (yrs) Average Coupon Average Cost YTM Average Market YTM
2.04 0.704% 0.848% 0.970%
PORTFOLIO ALLOCATION
MATURITY DISTRIBUTION
U.S. Agencies, 72.9%
36.3%
40.0% 30.0%
23.5% 17.1%
20.0% 10.0%
Money Market, 0.6%
Corporate, 3.6% LGIP, 9.0%
CD, 6.0%
Savings/ Cash, 8.0%
0.0%
26
15.9%
4.2% 0-.25
.5-1
3.0% 1-2
2-3
Maturity (yrs)
3-4
4-5
City of Arvada Investments as of December 31, 2014 The City’s portfolio as of December 31, 2014 is shown below, which includes credit ratings as of December 31, face value and actual interest earnings for 2014. Description
CUSIP/Ticker
Credit Rating 12/31/2014
Coupon Rate
Maturity Date
Ending Face
Interest
Amount/Shares
Dividends $
SAVINGS/CHECKING JPMorgan Chase Savings
CHASE
N/A
0.03%
N/A
$ 1,046,566
Wells Fargo Savings
WELLSFARGO
N/A
0.09%
N/A
1,036,102
3,520
N/A
0.30%
N/A
11,206,517
-
13,289,185
4,622
JP Morgan Checking Sub Total Savings/Checking
1,102
CERTIFICATE OF DEPOSIT Vectra Bank
4049504774
N/A
0.30%
03/18/2015
5,007,650
7,650
Vectra Bank
4049504782
N/A
0.30%
03/18/2015
5,007,650
7,650
10,015,299
15,299
Sub Total Certificate Of Deposit CORPORATE Apple, Inc
037833AH3
AA1
0.45%
05/03/2016
1,410,000
6,345
Berkshire Hathaway
084664BX8
AA2
0.95%
08/15/2016
3,085,000
29,308
Exxon Mobil
30231GAA0
AAA
0.92%
03/15/2017
1,500,000
6,716
5,995,000
35,653
Sub Total Corporate LOCAL GOVERNMENT INVESTMENT POOL C Safe LGIP
CSAFE
AAAm
0.12%
N/A
8,019,451
9,765
Colo Trust LGIP
COLOTRUST8001
AAAm
0.12%
N/A
6,946,207
4,939
14,965,657
14,704
1,013,883
924
1,013,883
924
5,000,000
16,500
Sub Total Local Government Investment Pool MONEY MARKET CSIP MM
CSIP
AAAm
0.08%
N/A
Sub Total Money Market US AGENCY FFCB
3133ED7L0
AAA
0.33%
11/13/2015
FFCB
3133ED6Z0
FFCB
3133EC3M4
AAA
0.55%
05/12/2016
3,000,000
16,500
AAA
0.60%
11/21/2016
3,000,000
18,000
FFCB
3133ECP40
AAA
0.64%
05/09/2017
5,000,000
32,000
FFCB
3133EAU22
AAA
0.68%
09/12/2016
5,000,000
34,000
FFCB
3133EDTR3
AAA
1.09%
08/28/2017
4,125,000
-
FFCB
3133EEEG1
AAA
1.34%
06/11/2018
5,000,000
-
FHLB
313382TR4
AAA
0.60%
04/24/2017
5,000,000
30,000
FHLB
313382HD8
AAA
0.70%
12/27/2016
5,000,000
35,000
FHLB
313382HT3
AAA
0.75%
03/27/2017
5,000,000
37,500
FHLB
313382W25
AAA
0.75%
08/15/2017
5,000,000
37,500
FHLB
313380U88
AAA
0.80%
04/17/2017
3,000,000
24,000
Chart continues next page
27
Description
CUSIP/Ticker
Credit Rating 12/31/2014
Coupon Rate
Maturity Date
Ending Face
Interest
Amount/Shares
Dividends
FHLB
3134G4ZY7
AAA
1.02%
04/21/2017
3,000,000
15,300
FHLB
3133727K4
AAA
2.13%
12/28/2015
2,000,000
42,500
FHLB
3130A3EG5
AAA
1.25%
11/20/2019
5,000,000
-
FHLB
313382F65
AAA
0.60%
03/27/2018
5,600,000
37,800
FHLB
313382FL2
AAA
0.63%
03/27/2018
5,000,000
34,375
FHLB
313382T78
AAA
0.55%
04/30/2018
3,000,000
17,625
FHLB
313382Z63
AAA
0.50%
05/22/2018
5,000,000
31,250
FHLMC
3134G56W0
AAA
0.65%
12/23/2016
5,000,000
16,250
FHLMC
3134G5SB2
AAA
0.75%
12/19/2016
3,000,000
-
FHLMC
3134G4Z76
AAA
1.00%
04/07/2017
3,000,000
15,000
FHLMC
3134G5SU0
AAA
1.00%
06/30/2017
3,000,000
-
FHLMC
3134G5A21
AAA
1.15%
12/26/2017
5,000,000
28,750
FHLMC
3134G4VU9
AAA
1.15%
09/11/2017
3,000,000
17,250
FHLMC
3134G5A54
AAA
1.25%
12/26/2017
5,000,000
31,250
FHLMC
3134G5SQ9
AAA
0.50%
06/30/2017
4,000,000
-
FNMA
3136G0XD8
AAA
1.00%
08/28/2017
6,000,000
60,000
FNMA
3136G1LA5
AAA
0.50%
05/15/2018
Subtotal US Agency Total
3,000,000
18,750
121,725,000
647,100
$ 167,004,025
$ 718,301
Investment Management Focus - 2014 2014 continued to be a struggle for the capital markets as the Fed has kept interest rates low, which will most likely continue until mid-2015. 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 (five 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