and Actual

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) DECEMBER 31, 2021

Proprietary funds The City’s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail .

The unrestricted net position balances of the City’s proprietary funds (including the major enterprise funds) are reflected in the following table:

Major Enterprise Funds Water Wastewater Stormwater Solid Waste Golf Total of major enterprise funds Food Service Internal service funds Total proprietary funds

Unrestricted Unrestricted Net Position for Net Position for Year ended 12/31/21 Year ended 12/31/20

$ 100,679 11,919 8,180 (1,033) (1,634) 118,111 28,454

$ 146,565 $ 109,927 9,047 7,382 (2,497) 123,859 (346) 28,017

$ 151,530

Component units The Arvada Urban Renewal Authority (AURA) was created by Ordinance No . 1717 under the Colorado Urban Renewal Law and approved by voters on March 3, 1981 . AURA’s purpose is to develop, redevelop or rehabilitate blighted areas of the City . The governing body of AURA is a commission of seven members, appointed by the Mayor and approved by City Council . AURA’s annual budget is approved by the City Council and the City provides administrative support to AURA . The statement of net position reflects $552,000 of restricted net position balance and $4,108,000 of unrestricted net position balance . The total change in net position for AURA was an increase of $3,612,000 .

Budgetary Highlights

General Fund

Final budgeted expenditures and transfers out increased $13,333,000 from the original budget to $104,716,000 . $4,383,000 of this increase is due to projects not completed in 2020 and carried to 2021 and also one-time funding for projects . Major projects included traffic projects, streets maintenance projects, software projects and safety and security . The City was awarded $5,538,000 in funding from the American Rescue Plan Act . The remaining increase included various operational expenses in the General Fund .

Property tax exceeded budget by $405,000 due to increasing property values, and Sales and Use Tax also exceeded budget by $18,056,000 primarily due to increased online sales and grocery store sales . Investment revenues were $1,172,000 below budget due to the current investment environment which includes a loss on the year end mark to market adjustment . Finance saw a savings of $3,493,000 from budget due to expenditures budgeted for the funds awarded from the American Rescue Plan but not spent in 2021 . Public Works saw a savings of $1,633,000 from budget due to streets maintenance projects not completed and carried into 2022 .