City of Arvada 2015 Mid-Year Financial Report by City of Arvada

Financial Report

2015 Mid-Year

Photo Credit Richard Assmus

Table of Contents Overview.......................................................................................1 General Fund...............................................................................3 Arvada Center..............................................................................7 Parks Fund...................................................................................9 Special Revenue Funds........................................................... 11 Capital Improvements Projects Fund.................................... 13 Enterprise Funds...................................................................... 15 Internal Service Funds............................................................. 21 City of Arvada Investment Report.......................................... 25

OVERVIEW

2015 Mid-Year Report The Financial Report for the City of Arvada provides an unaudited overview of the major funds and how their revenues and expenditures performed in comparison to budget. This is not meant to be a complete accounting, but rather a quick look at the highlights. General Fund revenues grew 9% in the second quarter of 2015 as compared to 2014. This marks the fifth straight year-over-year increase. Growth was widespread in all the major revenue categories with the exception of property tax. Sales tax revenues are up 6.2% over 2014. This now makes seven straight years of growth (2009-2015) for this revenue source. Double-digit increases continue in the categories of Fast Casual Restaurants, Auto Care, Office Supplies, Office Equipment, Furniture, Appliances and Flooring. Retail Hardware and Grocery Chain Stores are next in line with growth rates of 9.4% and 7.1%, respectively. The graph below represents building revenue and permits for the past five years. The pace of new construction continues to increase as 368 singlefamily building permits were issued in the first half of 2015. This total represents more permits than we issued annually for all but three years since 1999. The Colorado economy is booming and the Denver Metro region leads the way.

General Fund Building Revenue through June $6,000,000

400 350

$5,000,000

300 250

Permits

Dollars

$4,000,000

200

$3,000,000

150

$2,000,000

100

$1,000,000 $0 GF Building Revenue Single-Family (Detached) Permits

50 0

2011 $1,537,119

2012 $2,488,239

2013 $3,337,113

2014 $4,451,433

2015 $5,510,864

157

228

297

368

Auto Use tax built on its first quarter, now up 14.7% for the year. We are in the middle of six years of consecutive growth. City Council has approved the use of some of the additional revenue in the form of capital projects, the largest being the Olde Town Transit Hub. Shoring, excavating and water remediation are the tasks currently underway. Three other projects – Traffic Signal at 58th Avenue, Ridge Road Improvements and 74th Avenue Pedestrian Bridge improvements – are discussed in detail in the Capital Improvements Fund section of this document. The Citizens’ Capital Improvement Project Committee presented their recommendations for future capital projects to Council in July. The recommendations followed criteria created by the committee, including replacement or improvement of existing assets, with special focus on infrastructure, increasing connectivity and quality of life. Council will take formal action on these recommendations later in the fall.

Rain was the story during the second quarter for the enterprise funds. Water consumption is down a hefty 28% compared to the first half of 2014. This could lead to an estimated 25% reduction, or almost $5 million dollars, in water fees. As the year progresses, usage will be closely monitored with appropriate budget adjustments made. Also affected were the golf courses, with 21 non-playable days and 28 golf events cancelled, leading to a reduction in rounds of 7% at West Woods and 23% at Lake Arbor. Restaurant revenues continue to grow, up almost 5%, and are helping to offset the lost golf revenue. Investment income recorded its second consecutive quarter of growth, up to an annualized yield of .70%. This surpasses the benchmark of .48% by over 22 basis points and represents a well-diversified portfolio. Everyone is still waiting for the Federal Reserve to do something with rates, and it appears that the wait might be a little longer.

Photo Credit Richard Assmus

At the mid-year mark, revenues, for the most part, are performing better than their budgets. Growth in the local and regional economies continues to be strong. We are in the middle of our first year of a two-year budget, and the focus will remain on maintaining our operations and addressing our ongoing capital maintenance needs with a look towards funding solutions for our larger strategic capital projects.

The General Fund pays for the City’s basic services. This includes police, street maintenance, planning, transportation planning, code enforcement, street light maintenance and costs, building activity and general administration. In addition, the General Fund also provides for the following: • Operational support to the Arvada Center • Operational support to the Parks Fund • General Debt Service payments • Transfer to the Capital Improvement Projects Fund for new parks, transportation and other infrastructure projects The following table provides a comparison of budgeted cash balances, revenues and expenditures to budget and prior year amounts in the same areas. 2015 Budget

As of 6/30/15

Beginning Fund Balance

$30,847,000

REVENUES

$75,878,254

$36,672,514

$33,641,029

Ongoing

77,038,736

32,249,098

28,809,640

Capital

7,439,052

JPPHA

1,255,000

770,650

200,000

$85,732,788

$33,019,748

$29,009,640

3,652,766

4,631,389

General Fund

As of 6/30/14

EXPENDITURES

Expenditures Income/(Loss) Ending Fund Balance

(9,854,534) $20,992,466

$34,499,766

Photo Credit Richard Assmus

The General Fund began 2015 with a $30,847,000 fund balance. Some of this fund balance, $4,135,132, was dedicated to 2014 carry-over items not completed in 2014 and one-time requests. An additional $3,106,146 of one-time funds was added to the Capital Improvement Projects Fund for the Olde Town Transit Hub improvements. We will also use $2,613,256 to balance the budget. These dollars will be taken from fund balance.

Revenue Highlights Overall, revenues are up 9% compared to the same time period in 2014. In general, revenues are in line with or exceeding the 2015 budget estimate for the majority of revenue categories, except sales tax and building revenue, which are exceeding their budgets. The major revenue categories of sales tax, use tax, property tax, building and intergovernmental revenues are discussed in more detail in the following tables and graphs. 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 now until late 2015.

GENERAL FUND

General Fund Overview

GENERAL FUND REVENUES Sales Tax 55%

Property Tax 6%

Use Tax 2%

Other 16%

Auto Use Tax 7% Interest 1%

Franchise Fees 6%

Court Fines & Fees 2%

Sales Tax

The graph below shows actual second quarter sales tax collections from 2011 to 2015. Sales tax collections lag one month; therefore, collections through the second quarter represent sales tax collections for five months. The City has now seen an increase in second quarter sales tax collections for seven straight years (2009-2015).

Building Use Tax & Permits 5%

Sales Tax Collections

$50,000,000 $40,000,000 $30,000,000

Sales tax receipts for the first five months of 2015 are 6.2% above 2014 actuals. Sales tax collections are on track to exceed the 2015 budget of $43,587,267. As the next ten-year financial plan is reviewed, the sales tax base will be reset to reflect the increased collections.

$20,000,000 $10,000,000 $0

06/30/2011 06/30/2012 06/30/2013 06/30/2014 06/30/2015 2015 Budget Sales Tax $14,281,950 $15,085,589 $15,743,984 $16,788,754 $17,844,565 $43,587,267

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. General use tax is $105,000 more than 2014 actuals through six months and should meet the budget of $1,569,575. Building use tax for 2015 is at $2.7 million which already exceeds the 2015 budget amount due to the continued growth in west Arvada. Because we do not expect this level of growth to be sustainable on an ongoing basis, this revenue source will be adjusted in the ten-year financial plan for 2015 only. Auto use tax collections are showing a 14% increase over 2014 collections. Auto use tax collections are on track to exceed the 2015 budgeted amount of $5,482,500 and will also be revised in the ten-year financial plan.

Use Tax Collections $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 General

06/30/2011 $503,006

06/30/2012 $394,476

06/30/2013 $519,287

06/30/2014 $458,523

06/30/2015 $563,868

2015 Budget $1,569,575

Auto

$1,788,104

$1,922,856

$2,036,811

$2,295,021

$2,633,021

$5,482,500

$614,700

$1,203,992

$1,622,447

$2,209,249

$2,781,085

$2,100,000

Building

Property Tax The City’s property tax rate is 4.31 mills per $100 of valuation. In Colorado, the mill rate is placed on the assessed valuation. The following graph illustrates the year-to-date collections for the current and past four years.

Auto

General

Property Tax Collections $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000

Currently, property tax receipts are $213,850 less than the 2014 receipts for the first six months of the year and will likely be short of the 2015 budgeted amount. The budget for property tax will be reduced for 2015 when we prepare the next tenyear financial plan. Although many citizens have received a notice of a substantial increase to their property valuations, the increased valuation relates to the collection of property tax for 2016.

$2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Property Tax

06/30/2011 $2,642,707

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 less than $4.7 million in 2015. Road and Bridge funds are disbursed quarterly. The graph shows the first disbursement received in April. The next disbursement will be received in July. HUTF funds are received monthly and the graph shows five months of revenue. While these funds have been a stable revenue source, they have increased less than 1% in the past three years and should be attaining the budget for 2015.

06/30/2012 $3,226,229

06/30/2013 $3,296,677

06/30/2014 $3,463,858

06/30/2015 $3,250,008

2015 Budget $4,850,000

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

06/30/2011 $1,506,597

06/30/2012 $1,534,607

06/30/2013 $1,510,437

06/30/2014 $1,567,171

06/30/2015 $1,656,280

2015 Budget $3,944,230

$324,825

$367,274

$296,266

$298,400

$300,818

$751,750

Jefferson County

HUTF

Expenditure Highlights Expenditures in 2015 rose 12% over 2014. The majority of the increase is made up of the purchase of the post office at $1.11 million and the timing of the payment on the streets maintenance contract at $1.15 million. Personnel and other ongoing operating costs make up the rest of the difference, increasing at just over 3%. All of these items are in the budget for 2015. The transfer to the Capital Improvement Projects fund, which makes up all of the Capital budget listed above, will occur in the third quarter.

GENERAL FUND EXPENDITURES

Miscellaneous 1%

Transfers 21%

Personnel 46%

Debt Service 4%

Contracts 13%

Supplies and Expenses 6%

Services and Charges 9%

Salary and Benefit Savings Salary & Benefits

2015 Budget

Salaries & Wages

$30,150,876

Vacancy Savings

As of 6/30/15

As of 6/30/14

$12,970,666 -

980,122

454,061

392,466

Group Insurance

6,135,343

2,468,417

2,279,685

Retirement

3,400,792

1,488,069

1,460,595

Medicare

374,106

163,860

152,965

Temporary Wages & SS

337,118

220,653

108,788

Other

359,185

165,942

167,517

$40,928,315

$17,931,668

$17,225,256

Overtime

Total

(809,226)

$12,663,240

Temp Wages were up significantly in the first half of 2015, due primarily to the use of independent contractors in Public Works to help manage Transit-Oriented Development projects currently underway, as well as substantial increases in contract pay for relief judges in the Municipal Court. The high frequency of snow events earlier in the year is reflected in the elevated Overtime Expenditures.

ARVADA CENTER

Arvada Center Overview The Arvada Center Fund accounts for all revenues and expenditures related to performing arts, development, marketing, education and gallery at the Arvada Center. Sources of revenue include grants, charges for services and transfers from the Cityâ&#x20AC;&#x2122;s General Fund.

Revenue Highlights Generated revenue, which includes performing arts and education, is up 1.2% over the same time period in 2014. SCFD revenues have also experienced an increase, up over 10.2%. Total revenues are up at the mid-year point by 1.2% or just under $40,000.

Expenditure Highlights

Arvada Center

2015 Budget

Beginning Fund Balance

As of 06/30/15

As of 06/30/14

$ 201,000

$5,335,306

$2,022,398

$1,997,785

SCFD

1,029,553

306,843

278,278

City Cash Transfer

1,611,251

847,768

861,061

City In-Kind Transfer

2,225,881

REVENUES Generated

Total Revenues

$10,201,991

$3,177,009

$3,137,124

$7,819,253

$3,409,372

$3,443,797

EXPENDITURES Ongoing In-Kind

2,225,881

Total Expenditures

$10,045,134

$3,409,372

$3,443,797

Through the first six months of 2015, the Arvada Center continued to decrease expenses compared to 2014 with Income/(Loss) 156,857 (232,363) (306,673) overall expenditures down 1%. If you compare second quarter 2015 to second quarter 2014, expenditures Ending Fund Balance $ 357,857 $ (31,363) increased by 5.3%. The increase in expenditures was due to timing changes in the 2014-2015 theatrical season. While in 2014, the spring musical was produced in the first quarter; in 2015 the musical was produced in second quarter. As a result, more expenses related to the production were incurred in the second quarter 2015.

The Archbishop's Ceiling Photo Credit P. Switzer Photogr aphy 2015

Overall, the Center has a net improvement of $74,000. While still running a deficit over the first six months of 2015, they continue to move in the right direction.

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

06/30/2011 $248,791

06/30/2012 $248,321

06/30/2013 $283,286

06/30/2014 $278,278

06/30/2015 $306,843

2015 Budget $1,029,553

Scientific and Cultural Facilities District (SCFD) grant contributions increased 10.2% over 2014 . This revenue source should meet its budget for 2015. As the economy improves, the pot of money should increase as the source of this grant funding is sales tax-based. 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 a 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

06/30/2011 $983,635

06/30/2012 $1,048,749

06/30/2013 $1,058,665

06/30/2014 $1,020,000

06/30/2015 $1,112,941

2015 Budget $2,225,881

$591,322

$821,562

$861,061

$847,768

$1,611,251

The City of Arvada increased the budget for its in-kind support of the Center in 2015 when compared to 2014 by $185,800. Budgeted cash support has remained level.

Parks Fund Overview The Parks Fund accounts for costs associated with the acquisition, design, development, maintenance and beautification of parks, open space and trails within the City. Revenues are derived from the City’s General Fund, Grants Fund, Lands Dedicated Fund and Jefferson County Open Space funds.

Parks Fund Beginning Fund Balance

2015 Budget

As of 06/30/15

As of 06/30/14

$4,455,000

$3,620,182

$1,227,157

$1,101,533

3,061,070

1,534,754

1,485,957

APEX Reimbursement

963,454

834

7,349

Other

213,076

154,052

157,093

$7,857,783

$2,916,797

$2,751,932

$8,169,020

$3,115,040

$3,014,857

$8,169,020

$3,115,040

$3,014,857

REVENUES Open Space City Cash Transfer

Total Revenues EXPENDITURES Ongoing Capital Total Expenditures Income/(Loss) Ending Fund Balance

(311,237) $4,143,763

(198,243)

(262,925)

$4,256,757

Revenue Highlights Jefferson County Open Space Revenue, the largest source of income funding for Arvada Parks operations, was 11.4% greater in 2015 compared to a similar period in 2014. This is a tax assessed and collected by the County and then shared back to each individual City for “acquiring, maintaining, administering, and preserving open space … and construction, acquiring and maintaining park and recreational capital improvements”. The increase represents the robust growth in the County. All other revenue categories are performing as expected.

Expenditure Highlights

Photo Credit Richard Assmus

Second quarter expenses are in line with previous year’s expenses for a similar time period except one line item, water usage. With the above average rainfall, irrigation systems have not needed to be used as much as they were in past years. This should result in some budgetary savings at year end.

PARKS FUND

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 $-

06/30/2011 $-

06/30/2012 $2,541

06/30/2013 $-

06/30/2014 $7,349

06/30/2015 $834

2015 Budget $938,454

Cash Transfer

$1,420,137

$1,404,022

$1,441,773

$1,485,957

$1,534,754

$3,061,070

$998,042

$1,033,966

$1,096,646

$1,101,533

$1,227,157

$3,620,182

Open Space

Photo Credit Richard Assmus

APEX

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.

.21 and .25 Tax Increment Funds

2015 Budget

As of 06/30/15

As of 06/30/14

Beginning Fund Balance

$7,449,000

$6,811,046

$2,790,792

$2,653,466

1,475,580

918,433

762,148

117,000

110,752

212,974

$8,403,626

$3,819,977

$3,628,588

$8,098,926

$3,441,048

$3,093,757

420,000

9,013

2,466,614

$8,518,926

$3,450,062

$5,560,371

REVENUES Sales Tax/Audit Revenue Use Tax Other Total Revenues EXPENDITURES Ongoing Capital Total Expenditures Income/(Loss)

(115,300)

Ending Fund Balance

$7,333,700

369,916

(1,931,783)

$7,818,916

Revenue Highlights Sales Tax continued its upward trend with an increase of 5.18% over the first half of 2014. Use Tax also increased 20.51% over the first half of 2014 which is spurred by continued historic building activity. Other revenues show a decrease from 2014 due to an offsetting Capital Project transfer.

Salaries and Benefits in the first half of 2015 have increased 10.5% in comparison to the same time period in 2014. Assignment Pay and On-Call Pay combined increased over $21,100, with the 2015 approved policy change. Overtime saw an 16.6% increase over the first half of 2014. Also included in the change is the hiring of two new police officers. The large decrease in Capital expenditures is related to the completion of the community stations in the first quarter of 2014.

Photo Credit Richard Assmus

Expenditure Highlights

Community Development Overview The Community Development Fund accounts for all entitlements, revenues and expenditures of the Community Development Block Grants (CDBG) program and the Home Rehabilitation program and Essential Home Repairs program.

Community Development Fund

2015 Budget

As of 6/30/15

Beginning Fund Balance

$6,299,000

114,737

$ 104,388

668,001

64,008

204,654

45,000

22,500

9,000

4,667

5,473

836,738

$ 195,563

$ 275,218

624,727

$ 282,552

$ 229,823

Essential Home Repairs

392,044

69,596

155,633

Capital Project Transfer

170,077

$ 1,016,771

$ 352,147

$ 555,532

(180,033)

(156,584)

(280,314)

$6,118,967

$6,142,416

2015 Budget

As of 6/30/15

REVENUES

Revenue Highlights

Recovered

A few substantial deferred loan payments caused the uptick in Recovered Revenues, while the considerable drop in Grants Revenue was primarily a consequence of the timing of City draw downs from HUD.

Grants

Expenditure Highlights Expenditures on energy efficiency improvements for Parkview Village West Apartments represent the increase in Ongoing Expenditures. Last yearâ&#x20AC;&#x2122;s Capital Project Transfer reflects payments for the renovation of the Memorial Neighborhood Park Revitalization project, which was completed in 2014.

As of 6/30/14

City Cash Transfer Interest/Other Total Revenues

42,592

EXPENDITURES Ongoing

Total Expenditures Income/(Loss) Ending Fund Balance

Arvada Housing Authority Overview The Authority administers funds received for rent subsidy to low/ moderate income households under Section 8 of the U.S. Housing Assistance Payment Program.

Arvada Housing Authority Beginning Fund Balance

16,000

Recovered

19,178

3,194

Grants

3,939,000

2,316,860

1,617,901

82,400

50,000

Interest/Other

1,000

136

151

Total Revenues

$4,041,578

$2,370,190

$1,684,531

167,796

$ 161,087

REVENUES

Revenue Highlights The substantial jump in Grants Revenue was primarily due to the timing of receipts from the U.S. Department of Housing & Urban Development.

Expenditure Highlights As of June 30th, the Arvada Housing Authority was assisting 480 families with monthly rent subsidies out of a maximum 509. These subsidies continue to constitute approximately 90% of the Fundâ&#x20AC;&#x2122;s expenditures. As with Grants Revenue, increased Rents Expenditures were due primarily to timing in the first half of the year.

Transfers

Total Dollars

EOC ENERGY ASSISTANCE 2011-2015 through June - Dollars (Grants)

2011 Series1 $30,799

2013 $27,500

2014 $17,500

2015 $23,915

16,479

Ongoing

$381,443

Rents

3,638,166

1,812,237

1,611,389

31,333

8,630

11,608

$4,050,941

$1,988,663

$1,784,084

(9,363)

381,528

(99,554)

6,637

$ 397,528

Total Expenditures Income/(Loss) Ending Fund Balance

2012 $29,473

EXPENDITURES

Transfers

$35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0

As of 6/30/14

The City directly receives funding from Energy Outreach Colorado (EOC), a nonprofit corporation, and disburses it to low-income residents of Arvada as assistance with costs related to energy.

City of Arvada Citizensâ&#x20AC;&#x2122; Capital Improvement Committee Photo Credit Richard Assmus

The Capital Improvement Projects Fund is where the City keeps track of capital projects for streets, traffic, parks and the Arvada Center.

Capital Projects Capital Improvement Fund

2015 Budget

As of 6/30/15

As of 6/30/14

Beginning Fund Balance

$ 38,551,182

REVENUES

$ 7,528,952

$ 2,702,283

$ 1,785,554

CIP Administration

$ 10,011,960

$ 2,787,185

$ 4,359,727

CIP Street Projects

1,181,090

222,574

307,621

CIP Traffic Projects

2,269,479

598,646

694,142

CIP Park Projects

2,807,848

1,886,891

2,354,767

50,000

114,680

120,190

$ 16,320,377

$ 5,609,976

$ 7,836,447

EXPENDITURES

CIP Arvada Center Total Expenditures Income/Loss Ending Fund Balance

(8,791,425) $ 29,759,757

$ (2,907,693)

(6,050,893)

$ 32,500,289

Revenue Highlights In 2015, the majority of the revenue in the CIP Fund will consist of transfers from the General Fund and Lands Dedicated Fund. The revenues will also include a one-time transfer of $3,106,046 from the General Fund for the Olde Town Transit Hub and $90,000 for improvements to 82nd and Simms approved in the carry-over ordinance in March.

Expenditure Highlights Expenditures in the second quarter continue to include construction costs for Britton and Griffith Parks, the Kipling Underpass and the Olde Town Transit Hub. New projects this quarter include work being done for the 74th Avenue pedestrian and bike bridge, new traffic signal at 58th Avenue, the Majestic View arboretum and the Park, Trail and Open Space Master Plan.

CAPITAL IMPROVEMENT PROJECTS FUND

Capital Improvement Projects (CIP) Fund Overview

Project Highlights With a fund balance of over $33 million, there are many capital improvement projects happening in the City. In the second quarter, we will continue to provide additional detail on some of the ongoing projects. The projects highlighted this quarter will help strengthen bicyclist and pedestrian safety and increase the use of alternative/active transportation in City of Arvada. Traffic Signal at 58th Avenue: A new traffic signal at 58th Avenue in front of the King Soopers is now operational. With increasing traffic on 58th Avenue, it is very difficult for pedestrians with their bags from King Soopers and Kmart to cross 58th Avenue to catch eastbound RTD buses. In addition, motorists exiting the stores and traveling eastbound on 58th Avenue have a difficult left turn. The installation of this traffic signal will assist pedestrians and motorists to safely cross 58th Avenue. Ridge Road Improvements: With the Gold Line coming to Arvada in 2016, the City is making improvements in many areas to make sure that pedestrians and bicyclists have access to the three stations that will serve Arvada. In addition to the Kipling Street Underpass that was highlighted in the first quarter, there are improvements on Ridge Road between Miller and Iris. A grant from the Denver Regional Council of Governments for $800,000, along with City funds of $516,000, will pay for the installation of curb, gutter and sidewalks in some areas, and widening of sidewalks from three feet to eight feet in other areas. This project will also widen the Ridge Road bridge to accommodate bicyclists. All of these improvements will provide easier access to the stations.

Photo Credit Richard Assmus

74th Avenue Pedestrian/Bicyclist Bridge: While this project is a smaller project, it has been in the works for almost four years. This project will install pedestrian bridges over the Croke and Farmers Canals on 74th Avenue. It will also connect Robby Ferrufino Park to a trail by Indian Tree Golf Course. The City was finally able to secure permission from the two canal companies to construct the bridges. Both bridges should be completed by August 2015.

Overview 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. Water Fund Beginning Fund Balance

2015 Budget

As of 6/30/15

As of 6/30/14

$71,970,000

$20,700,210

$5,513,875

$5,640,669

Tap Fees

8,329,106

4,659,615

3,776,037

Interest

329,438

153,728

123,588

Other

698,449

986,761

1,016,317

$30,057,203

$11,313,978

$10,556,611

$17,644,709

$7,509,763

$7,439,303

Major Capital Maintenance

4,187,564

1,918,712

2,299,735

Capital

5,058,656

$1,460,199

652,984

$29,152,629

$10,888,673

$10,392,022

904,574

425,305

164,588

$72,874,574

$72,395,305

REVENUES Water Charges

Total Revenues EXPENDITURES Ongoing

Total Expenditures Income/(Loss) Ending Fund Balance*

Revenue Highlights Revenues from Water Charges were down 2.2% through the first six months of the year, with consumption down a hefty 28.3% due to prolonged stretches of wet weather. The gulf between revenues and consumption was due to the timing of utility cycle batch postings and the lag in time between consumption and billing. Due to the wet conditions and considerable drop in water consumption so far in 2015, the Department of Utilities is estimating water sales to come in under budget by $5 million. Tap Fees continued to pour in, reflecting ongoing substantial residential building activity.

Expenditure Highlights Photo Credit Richard Assmus

The decrease in Major Capital Maintenance Expenditures was due to the timing of annual expenditures. Much of the increase in Capital Expenditures was due to work extending the Cityâ&#x20AC;&#x2122;s water system northwest to accommodate growth. * $36,989,586 of the Fund Balance is a cash escrow reserved in Denver Waterâ&#x20AC;&#x2122;s name for the Gross Reservoir expansion.

ENTERPRISE FUNDS

Water Fund

Water Consumption This chart, with data provided by Utilities, shows water consumption through June by year since 2011.

Thousands of Gallons

WATER CONSUMPTION As of June 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 -

1000s of Gallons

2011 1,508,338

2012 1,743,469

2013 1,419,752

2014 1,501,877

2015 1,076,560

This chart shows water tap fee revenue through June by year since 2011.

Dollars

WATER FUND - TAP FEES As of June $4,800,000 $4,400,000 $4,000,000 $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $Tap Fees

2011 $1,113,787

2012 $1,733,754

2013 $3,678,618

2014 $3,776,037

2015 $4,659,615

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

2015 Budget

As of 6/30/15

$13,048,000

$12,401,341

$5,184,457

$4,898,635

Tap Fees

555,211

522,319

350,220

Interest

128,674

53,612

47,340

Other

612,581

184,864

208,960

$13,697,807

$5,945,253

$5,505,155

$7,832,149

$3,916,075

$3,690,364

Ongoing

3,140,527

1,322,480

1,310,094

Major Capital Maintenance

2,720,762

811,250

15,862

Beginning Fund Balance

As of 6/30/14

Revenue Highlights Sewer Tap Fee Revenues remain high due to robust residential construction. Most of the year-overyear increase in Sewer Charges was due to the timing of utility cycle batch postings.

REVENUES Sewer Charges

Total Revenues EXPENDITURES Metro District

Capital Total Expenditures

501,500

$14,194,938

$6,049,805

$5,016,320

Income/(Loss)

(497,131)

Ending Fund Balance

$12,550,869

(104,552)

Expenditure Highlights Treatment charges from the Metro Wastewater Reclamation District represented nearly twothirds of Total Expenditures through the first six months of the year. The jump in Major Capital Maintenance Expenditures was due to the timing of payments on contract work.

488,835

$12,943,448

Wastewater Tap Fees This chart shows second quarter sewer tap fee revenue since 2011.

Dollars

WASTEWATER FUND - TAP FEES As of June $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 $0 Tap Fees

2011 $109,741

2012 $190,893

2013 $377,063

2014 $350,220

2015 $522,319

Stormwater Fund Overview The Stormwater Fund accounts for all activities necessary to maintain a stormwater management plan. Stormwater Fund Beginning Fund Balance

2015 Budget

As of 6/30/15

As of 6/30/14

$5,565,000

$3,326,374

$1,662,320

$1,521,698

32,341

26,326

43,459

$3,358,715

$1,688,646

$1,565,157

$1,931,716

$ 583,374

$ 604,741

933,288

466,644

466,400

1,635,000

1,660

367,992

$4,500,004

$1,051,677

$1,439,133

636,969

126,024

REVENUES Stormwater Fee Other Total Revenues EXPENDITURES Ongoing Debt Service Capital Total Expenditures Income/(Loss)

(1,141,289)

Ending Fund Balance

$4,423,711

$6,201,969

Revenue Highlights The Cityâ&#x20AC;&#x2122;s Stormwater Utility Fee rate rose by 2% as of the beginning of 2015, the first increase since 2009. However, a vast majority of the reflected year-over-year increase was due to the timing of utility cycle batch postings.

Expenditure Highlights

Photo Credit Richard Assmus

The drop in Capital Expenditures was due to the absence of payments on the Garrison Street Bridge Replacement and related Ralston Creek channelization, which were wrapping up in early 2014.

Golf Fund Overview The Golf Course Fund accounts for all revenues and expenses of the Lake Arbor and West Woods Golf Courses, including food service operations.

Revenue Highlights

Golf Fund

The first half of the year brought approximately 26 inches of moisture to Arvada’s golf courses. Golf rounds were severely impacted by rainy weather in May and June, with overall metro area rounds down 26% in May. As a result, golf revenue was down $150,000 from May 1 thru June 17, as compared to a similar time period in 2014. Through the second quarter, total golf revenue is approximately 5% below 2014 levels. Even when open, soggy conditions required constant cart path-only restrictions and between West Woods Golf Club and Lake Arbor Golf Club there were a combined 21 non-playable days, with many afternoons overcast and rainy. In addition, 28 golf events were rained out including club events, tournaments, corporate leagues and “Grow the Game” clinics. The silver lining for Arvada Golf was that there were more visitors to the restaurants, with gross revenues up approximately 5% over a similar period in 2014. As a result, overall, total golf fund revenue is 2% below 2014 levels.

2015 Budget

As of 06/30/15

$ 207,000

Golf Courses

$3,489,178

$1,357,643

$1,433,806

Restaurants

1,228,929

665,638

634,943

215,759

112,237

104,738

$4,933,866

$2,135,518

$2,173,486

Golf Courses

$2,046,354

$ 985,616

$ 972,753

Restaurants

1,331,246

656,873

613,760

Administration

1,472,171

586,398

522,090

241,000

7,813

13,772

$5,090,771

$2,236,700

$2,122,375

Beginning Fund Balance

As of 06/30/14

REVENUES

City Cash Transfer Total Revenues EXPENDITURES

Capital Total Expenditures Income/(Loss)

(156,904)

Ending Fund Balance

50,096

(101,183)

51,111

$ 105,817

Expenditure Highlights Second quarter expenses are in line with 2014 expenses for a similar period.

Golf Rounds by Type - January - June Variance

2014

2015

Player Support

12,187

11,041

Super Users Annuals

2,552

2,769

217

Tournament

1,663

1,622

(41)

-2%

186

209

12%

18,172

16,845

Grow the Game Total

Lake Arbor

(1,146)

-9%

(1,327)

-7%

Variance

2014

2015

Player Support

8,410

5,970

(2,440)

-29%

Super Users Annuals

5,600

4,337

(1,263)

-23%

Tournament

142

404

262

185%

Grow the Game

125

185

48%

14,857

11,396

Total

(3,461)

-23%

Photo Credit Richard Assmus

Westwoods

Hospitality Fund Overview The Hospitaliuty Fund accounts for all revenue and expenses associated with food service activities including the operation of banquet facilities at the Arvada Center for the Arts and Humanities and offsite catering.

Revenue Highlights Total revenue is approximately 3.5% below 2014 levels. Highlights of various market segments include: an increase in the Government market segment with the addition of five new groups at $21,629 in revenue compared to a similar time period in 2014; a continued decrease in the in-house and Arvada Center market segments; a decrease in the Education market segment as it was affected by budgetary constraints and reflecting the loss of Denver School of the Arts ($9,000), Access Education ($17,000), and CCD ($8,000); and an increase in the Wedding/Anniversary market segment of $14,550 compared to a similar time period in 2014.

Expenditure Highlights Total expenses are approximately 7% below 2014 levels and within established margins. The large capital expenditures that were budgeted for 2015 and 2016 have been placed on hold pending the banquet and conference feasability study to be completed later in 2015.

Hospitality Fund

2015 Budget

As of 06/30/15

$ 602,000

$1,032,380

$ 377,017

$ 393,688

Concession Services

192,444

54,781

67,872

Banquet and Guest Services

614,514

231,381

225,590

$1,839,338

$ 663,178

$ 687,150

$ 352,740

$ 150,677

$ 129,288

1,296,310

452,992

494,333

371,315

13,734

$2,020,365

$ 603,670

$ 637,355

Beginning Fund Balance

As of 06/30/14

REVENUES Sales

Total Revenues EXPENDITURES Administration Operations Capital Transfer to General Fund Total Expenditures Income/(Loss)

(181,027)

Ending Fund Balance

420,973

59,508 $

661,508

49,794

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 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. Insurance Fund Beginning Fund Balance

2015 Budget

As of 6/30/15

As of 6/30/14

$4,065,000

$1,817,992

$ 909,095

$1,016,437

72,120

48,903

49,823

$1,890,112

$ 957,998

$1,066,260

$2,126,669

$1,155,586

$ 994,541

426,889

211,339

253,285

$2,553,558

$1,366,925

$1,247,827

REVENUES Contributions Other Total Revenues EXPENDITURES Risk Mgmt Administration Risk Mgmt Operations Total Expenditures Income/(Loss) Ending Fund Balance*

(663,446) $3,401,554

(408,928) $3,656,072

Revenue Highlights The reduction in Contributions Revenue was due was due to a 28% cut in charges for operations, which was hastened by the move of two City Attorney’s Office FTEs from the Insurance Fund to the General Fund. Charges for lines of coverage - Workers Compensation, General Liability, Auto Liability, Property, and Auto Physical - remained generally unchanged.

Expenditure Highlights Claim costs for Auto Physical Damage saw the greatest year-over-year percentage increase through the first six months of 2015. The number of reported Auto Physical Damage claims almost doubled over the same period last year. Seventy-two of the 129 physical damage claims this year resulted from a major hail storm on June 4. The reduction in Operations expenses was primarily due to the move of two City Attorney’s Office FTEs out of the Insurance Fund. *Per GASB Statement 10, an additional $1,269,963 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 2014.

(181,567)

INTERNAL SERVICE FUNDS

Internal Service Funds Overview

Computer Fund & Print Services Fund Overview The Computer Fund provides resources for both ongoing maintenance and replacement of the Cityâ&#x20AC;&#x2122;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 Cityâ&#x20AC;&#x2122;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. Computer Fund/ Print Services Fund

2015 Budget

As of 06/30/15

$6,240,000

Maintenance

$ 950,006

$ 476,715

$ 479,822

Replacement

961,061

504,649

503,934

Print Shop

464,463

199,341

159,480

$2,375,530

$1,180,704

$1,143,236

Maintenance

$1,072,121

$ 498,648

$ 510,602

Replacement

2,323,213

283,989

431,254

450,581

155,118

208,190

$3,845,915

$ 937,755

$1,150,046

Beginning Fund Balance

As of 06/30/14

REVENUES

Total Revenues EXPENDITURES

Print Shop Total Expenditures Income/(Loss)

(1,470,385)

Ending Fund Balance

$4,769,615

242,948 $6,482,948

Revenue Highlights Revenues in the maintenance and replacement funds are on track as estimated for 2015. Print Shop revenue is just below what has been projected, but keeping in line with expenditures.

Expenditure Highlights Expenditures in the Technology Fund are for systems utilized across all City department operations. Expenditures are currently on track in the maintenance and replacement funds with some larger replacements budgeted for later in the year. The Print Shop expenses are slightly below projections. There are no large expenditures anticipated for 2015 for the Print Shop as all equipment purchases were completed in 2014.

(6,810)

Vehicles Overview

Revenue Highlights

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.

Charges for Vehicle Maintenance services, which include personnel costs, rose 3% over 2014 levels. Charges for Vehicle Replacement contributions rose 1% over 2014 levels. Gains from the sale of retired units were the source of the increase in Other Revenues.

Vehicles Fund Beginning Fund Balance

2015 Budget

As of 6/30/15

$6,247,000

As of 6/30/14

Expenditure Highlights

REVENUES Maintenance Transfers

$2,321,122

$1,160,561

$1,126,759

Replacement Transfers

1,130,947

565,473

559,875

144,378

164,308

53,831

$3,596,447

$1,890,343

$1,740,465

Maintenance

$3,056,258

$1,076,788

$966,195

Replacement

1,725,440

277,391

431,304

Total Expenditures

$4,781,698

$1,354,178

$1,397,499

Income/(Loss)

(1,185,251)

536,164

342,966

Ending Fund Balance

$5,061,749

$6,783,164

2015 Budget

As of 6/30/15

$2,368,000

$ 446,814

$ 223,407

$ 215,651

136,312

127,267

126,653

$ 583,126

$ 350,674

$ 342,304

Replacement

$ 588,615

Capital Lease

120,918

Other Total Revenues EXPENDITURES

The rise in Maintenance Expenditures reflects fuller staffing of Fleet operations in the first half of 2015, which was not the case during the same period last year. Additionally, Fleet in January began keeping some of its personnel on-call during winter weather months to better ensure staff availability to service plow vehicles. This change will cost the Vehicles Fund approximately $25,000 a year. Budgeted Maintenance Expenditures include $500,000 for the construction of a new storage building at the Indiana Shops, which will include a PD weapons testing range. Construction is scheduled to proceed later this year. There are currently 19 units up for replacement in 2015.

Buildings Building Fund Beginning Fund Balance

As of 6/30/14

REVENUES Replacement Transfers Other Total Revenues EXPENDITURES

Total Expenditures Income/(Loss) Ending Fund Balance

$ 709,533 (126,407) $2,241,593

4,890

486

57,314 $

62,204 288,469

56,476 $

56,962 285,342

$2,656,469

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 were generally increased by 3% for 2015, having been frozen since 2009.

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. Replacements planned for this year include carpet in parts of City Hall, the Annex, and Arvada Center, HVAC units at the Arvada Center, Ralston Treatment Plants and both golf course club houses, the Ralston House roof, and parking lot repairs throughout the City.

Arvada Economic Development Association (AEDA) Overview AEDA was established to encourage and stimulate all forms of economic development â&#x20AC;&#x201C; commercial and industrial. The services provided by AEDA benefit both the City and citizens by providing information and services to existing and prospective businesses and industries. Funding for AEDA consists of compensation from the City for services it renders the City and its citizens. The City also provides administrative support for AEDA. A Board of Directors appointed by City Council governs AEDA. 2015 Budget

Beginning Fund Balance

$475,577

Revenue

790,879

397,190

391,054

Expenditures

784,897

328,322

333,990

$481,559

$544,445

Ending Fund Balance

As of 6/30/15

As of 6/30/14

Operations

Revenue Highlights Revenue in the AEDA Operations Fund consists of a transfer from the general fund equal to the personnel and operating expenditures.

Expenditure Highlights Year-to-date expenditures in 2015 are at 42% of budgeted expenditures and are comparable to 2014 expenditures. Salaries and benefits represent the largest expenditure at approximately 45% of the total expenditures.

Beginning Cash Balance Revenue Expenditures

06/30/2015 $579,836 523,291 (459,682)

Ending Cash Balance

643,445

Reserved for Job Creation Program

(18,000)

New Entrepreneur Program

(19,500)

Arvada Manufacturing Initiative Small Business Grant Program Phase VI

(9,600) (125)

Commitments

(319,298)

Available Unallocated Cash Balance

$276,922

Revenue Highlights

Photo Credit Richard Assmus

Program

Revenues in 2015 consist of a cash contribution from the City of Arvada for $500,000, repayments from two loans and interest income.

Expenditure Highlights Expenditures in 2015 reflect 20 AEDA small business grants and one loan. The grants are used to help Arvada businesses improve signage, landscaping, facades and site improvements.

Photo Credit Richard Assmus

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 U.S. Treasuries, U.S. 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 In the second quarter of 2015, the City’s portfolio managed a yield of 0.709% following an annualized yield of 0.695% in the first quarter. In general, the portfolio yield remained fairly constant in the last couple of years with a slight uptrend since 2013, when it hit bottom at 0.534%. The City’s portfolio has been consistently performing above the benchmark yield which is a weighted average yield of allowable securities, as established by the investment policy. For the second quarter of 2015, the weighted benchmark return was 0.482%. Short-term rates continue to be anchored by the Fed’s zero interest target rate policy. However, economists are now projecting that the Federal Reserve will finally begin the process of normalizing rates by the end of 2015. In anticipation, the interest rates on LGIP funds and the money market accounts are slowly climbing up. As rates go up the prices of existing bonds go down. Unrealized capital gain in our portfolio at the end of the first quarter turned into unrealized capital loss at the end of the second quarter, affecting the portfolio’s total return. We continue to focus on shorter term investments with one- to three-year maturity. Callable securities spreads are still more attractive but they carry an increased risk of being redeemed before the maturity date. As a result, during the second quarter 2015, the portfolio saw $54 million in investment calls. The majority of the calls came in June, which led to a temporary increase in our short-term cash positions. The reinvestment environment continues to be challenging. Bond yields are not expected to rise significantly in the near future, as the Fed signals to be gradual in raising rates. Key information regarding the City’s portfolio is shown in the following tables and graphs:

CITY OF ARVADA INVESTMENT REPORT

Investment Portfolio Objectives

PORTFOLIO PERFORMANCE 06/30/2015 $586,680 0.709% 0.482% +23bps

YTD Interest Earnings Portfolio Yield Benchmark Yield Tracking Error

06/30/2014 $494,956 0.676% 0.430% +25bps

QUARTERLY PORTFOLIO CHANGES 06/30/2015 06/30/2014 $ 1,014,461 $1,013,448 18,992,764 10,732,898 15,044,500 20,194,478 5,995,000 5,995,000 32,674,324 16,197,959 105,625,000 114,600,000 $179,346,049 $168,733,783

Money Market Savings/Cash CD Corporate LGIP US Agency Total ACCOUNT SUMMARY Par Value Book Value Market Value Unrealized Gain/(Loss)

Difference $91,724 0.033% 0.052% -2bps

PORTFOLIO YIELD VS. CUSTOM BENCHMARK

$179,346,049 $179,347,166 $179,336,164 $(9,885)

1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%

PORTFOLIO CHARACTERISTICS Average Duration (yrs) 1.69 Average Coupon 0.758% Average Cost YTM 0.798% Average Market YTM 0.790%

2010

2011

2012

2013

2014

2015- 20151Q 2Q

Portfolio Yield 1.38% 1.19% 0.72% 0.53% 0.65% 0.70% 0.71% Benchmark

0.61% 0.40% 0.41% 0.34% 0.45% 0.46% 0.48%

PORTFOLIO ALLOCATION

MATURITY DISTRIBUTION US Agency, 58.9%

LGIP, 18.2%

Difference $ 1,013 8,259,866 (5,149,978) 16,476,365 (8,975,000) $10,612,266

35.0% 30.0%

32.9% 27.3%

30.4%

25.0% 20.0% 15.0% Corporate, 3.3% CD, 8.4%

10.0% Savings/ Cash, 10.6%

Money Market, 0.6%

4.8%

4.6%

5.0% 0.0%

0.0% 0-.25

.5-1

1-2 Maturity (yrs)

2-3

3-4

4-5

City of Arvada Investments as of June 30, 2015 The Cityâ&#x20AC;&#x2122;s portfolio as of June 30, 2015 is shown below, which includes credit ratings as of June 30, face value and actual interest earnings for 2015.

Description

CUSIP/Ticker

Credit Rating 06/30/2015

Coupon Rate

Maturity Date

Ending Face

Interest

Amount/Shares

Dividends

SAVINGS/CHECKING JPMorgan Chase Savings

CHASE

N/A

0.03%

N/A

146,635

Wells Fargo Savings

WELLSFARGO

N/A

0.08%

N/A

136,252

190

N/A

0.30%

N/A

18,709,877

18,992,764

259

JP Morgan Checking Sub Total Savings/Checking CERTIFICATE OF DEPOSIT Vectra Bank

5791396061

N/A

0.55%

06/25/2016

5,018,184

6,952

Vectra Bank

5791396079

N/A

0.55%

06/25/2016

5,018,184

6,952

Vectra Bank

5791396095

N/A

0.55%

07/07/2016

1,005,924

924

Vectra Bank

5791396103

N/A

0.65%

08/29/2016

1,000,552

552

Vectra Bank

5791396111

N/A

0.65%

08/29/2016

1,000,552

552

Vectra Bank

5791396129

N/A

0.65%

08/29/2016

1,000,552

552

Vectra Bank

5791396137

N/A

0.65%

08/29/2016

1,000,552

552

15,044,500

17,037

Sub Total Certificate Of Deposit CORPORATE Apple, Inc

037833AH3

AA1

0.45%

05/03/2016

1,410,000

3,173

Berkshire Hathaway

084664BX8

AA2

0.95%

08/15/2016

3,085,000

14,654

Exxon Mobil

30231GAA0

AAA

0.92%

03/15/2017

1,500,000

6,908

5,995,000

24,734

Sub Total Corporate LOCAL GOVERNMENT INVESTMENT POOL C Safe LGIP

CSAFE

AAAm

0.16%

N/A

11,920,388

7,665

Colo Trust LGIP

COLOTRUST8001

AAAm

0.15%

N/A

15,846,075

7,400

Colo Trust LGIP

COLOTRUST8004

AAAm

0.15%

N/A

173,985

136

Colo Trust LGIP

COLOTRUST8008

AAAm

0.15%

N/A

4,552,890

3,023

Colo Trust LGIP

COLOTRUST8010

AAAm

0.15%

N/A

180,986

452

32,674,324

18,676

1,014,461

578

1,014,461

578

Sub Total Local Government Investment Pool MONEY MARKET CSIP MM

CSIP

AAAm

0.12%

N/A

Sub Total Money Market US AGENCY FFCB

3133ED7L0

AAA

0.33%

11/13/2015

5,000,000

8,250

FHLB

3130A3EG5

AAA

1.25%

11/20/2019

5,000,000

31,250

FHLB

3133727K4

AAA

2.13%

12/28/2015

2,000,000

21,250

FHLB

313380U88

AAA

0.80%

04/17/2017

3,000,000

12,000

FHLB

313382HD8

AAA

0.70%

12/27/2016

1,500,000

17,500

Chart continues next page

Description

CUSIP/Ticker

Credit Rating 12/31/2014

Coupon Rate

Maturity Date

Ending Face

Interest

Amount/Shares

Dividends

FHLB

313382HT3

AAA

0.75%

03/27/2017

5,000,000

18,750

FHLB

313382T78

AAA

0.63%

04/30/2018

3,000,000

9,375

FHLB

313382TR4

AAA

0.60%

04/24/2017

5,000,000

15,000

FHLB

313382W25

AAA

0.75%

08/15/2017

5,000,000

18,750

FFCB

3133EC3M4

AAA

0.60%

11/21/2016

3,000,000

9,000

FFCB

3133ECP40

AAA

0.64%

05/09/2017

5,000,000

16,000

FFCB

3133EDTR3

AAA

1.09%

08/28/2017

4,125,000

22,481

FFCB

3133EE2S8

AAA

1.98%

06/29/2020

3,000,000

FFCB

3133EEEG1

AAA

1.34%

06/11/2018

5,000,000

33,500

FFCB

3133EEK41

AAA

1.18%

02/13/2018

5,000,000

FFCB

3133EEP46

AAA

1.09%

02/26/2018

6,000,000

FHLMC

3134G56W0

AAA

0.65%

12/23/2016

5,000,000

16,250

FHLMC

3134G5A21

AAA

1.15%

12/26/2017

5,000,000

28,750

FHLMC

3134G5SB2

AAA

0.75%

12/19/2016

3,000,000

11,250

FHLMC

3134G6L76

AAA

1.25%

05/25/2018

5,000,000

FHLMC

3134G6UC5

AAA

0.70%

04/28/2017

4,000,000

FHLMC

3134G7BR1

AAA

1.00%

06/28/2018

5,000,000

FHLMC

3134G7CQ2

AAA

1.25%

03/22/2018

5,000,000

FHLMC

3134G7ET4

AAA

0.85%

06/23/2017

3,000,000

FNMA

3136G2G84

AAA

1.15%

04/30/2018

5,000,000

Subtotal Agency

105,625,000

289,356

Totals

179,346,049

350,640

Investment Management Focus - 2015 2015 continues to be a struggle for the capital markets as the Federal Reserve has kept interest rates low, which will continue through 2015. We will continue to monitor the two items of focus we have highlighted below. Diversification of Maturities: We continue to keep LGIP and cash 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, allowing us to take advantage of better coupons in longer maturity buckets and afford us 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 16bps.

Photo Credit Richard Assmus

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