Balance – Budget and Actual Community Development Fund Statement of Revenues, Expenditures and Changes in

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

Governmental activities Governmental activities increased the City’s net position by $33,447,000 . Key elements of this change are due to the following:

• Developer contributions amounted to $6,965,000 • Sales and use tax revenues increased $13,037,000 • General governmental expenditures decreased $9,663,000 as 2020 included support to local businesses during the COVID 19 pandemic

Business-type activities Business-type activities increased the City’s net position by $11,168,000 . Key elements of this increase are due to the following:

• Developer contributions amounted to $10,671,000 • Service charges and fees revenue increased $1,040,000 as a Solid Waste Fund was added to provide trash and recycling services to Arvada Citizens • Miscellaneous revenues increased $3,300,000 due to a cost recovery from a special district for additional wastewater capacity to the special district in the northwest area of the City . The City has an active project in this area to increase water and wastewater capacity

Financial Analysis of the City’s Funds

As noted previously, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements .

Governmental funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources . Such information is useful in assessing the City’s financing requirements . In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of year .

December 31, 2021, fund balances of governmental funds are classified as follows:

Non-spendable – amounts that cannot be spent either because they are not spendable in form or because they are legally or contractually required to be maintained intact . The City had $613,000 in non-spendable resources .

Restricted – amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or law and regulations of other governments; or through constitutional provisional or enabling legislations . The City had $122,650,000 in restricted resources .

Committed – amounts that are subject to a purpose constraint imposed by a formal action of the City Council . The City Council is the highest level of decision-making authority for the City . Commitments may be established, modified or rescinded only through resolutions and ordinances approved by the City Council . The City had $17,654,000 in committed resources .

Assigned – amounts that are for an intended use established by the City, but that are not considered restricted or committed . The purpose of the assignment must be narrower than the purpose of the General Fund . The City had $25,209,000 in assigned resources .

Unassigned – represents the remaining balance for the City’s General Fund . The City had $57,388,000 in unassigned resources .