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CITY OF 

                      

ARVADA, COLORADO 

COMPREHENSIVE ANNUAL FINANCIAL REPORT  For The Year Ended December 31, 2010 

REPORT ISSUED BY:       

 

DEPARTMENT OF FINANCE  VICTORIA A. RUNKLE, DIRECTOR 


ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT   December 31, 2010

TABLE OF CONTENTS Section

Page

INTRODUCTORY SECTION Letter of Transmittal – Director of Finance................................................................................. 1-4 Government Finance Officers Association Certificate of Achievement ....................................... 5 City Officials.................................................................................................................................. 6 Organizational Chart .................................................................................................................... 7

FINANCIAL SECTION Report of Independent Certified Public Accountants ............................................................ 9 Management’s Discussion and Analysis............................................................................. 11-22 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets................................................................................................. 23 Statement of Activities................................................................................................. 24-25 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet.......................................................................................................... 26 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ......................................................................... 27 Statement of Revenues, Expenditures, and Changes In Fund Balances ............... 28 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities....................................................................................... 29 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 30 Community Development Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ........................................ 31 Arvada Center Fund – Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 32 Parks Fund - Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 33 Proprietary Fund Financial Statements Statement of Net Assets .......................................................................................... 34 Statement of Revenues, Expenses and Changes in Fund Net Assets ................... 35 Statement of Cash Flows......................................................................................... 36 Fiduciary Fund Financial Statements Statements of Fiduciary Net Assets......................................................................... 37 Statements of Changes in Fiduciary Net Assets ..................................................... 38

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ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT   December 31, 2010

TABLE OF CONTENTS Section

Page

Notes to the Financial Statements ....................................................................................... 39-70 Required Supplementary Information Schedule of Funding Progress.......................................................................................... 71 Supplementary Information Combining and Individual Fund Statements and Schedules Construction Fund ................................................................................................... 72 Non-Major Governmental Funds Combining Balance Sheet .................................................................................... 74-75 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................................................ 76-77 Lands Dedicated Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................................... 78 Drainage Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 79 Arvada Housing Authority – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................................... 80 Police Seizure Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 81 Police Tax Increment Fund (.21) – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ........................................ 82 Police Tax Increment Fund (.25) – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ........................................ 83 Repayment Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 84 Grants Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 85 Bond Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................................... 86 Debt Service Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual............................................................... 87 Enterprise Funds Water Fund – Budgetary Comparison Schedule ..................................................... 90 Wastewater Fund – Budgetary Comparison Schedule ........................................... 91 Stormwater Fund – Budgetary Comparison Schedule ............................................ 92 Golf Fund – Budgetary Comparison Schedule ........................................................ 93 Food Service Fund – Budgetary Comparison Schedule ......................................... 94 Internal Service Funds Combining Statement of Net Assets........................................................................ 96 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ......................................................................................................... 97 Combining Statement of Cash Flows ...................................................................... 98 Insurance Service Fund – Budgetary Comparison Schedule.................................. 99 Computer Fund – Budgetary Comparison Schedule.............................................. 100 Print Shop Fund – Budgetary Comparison Schedule............................................. 101 ii


ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT   December 31, 2010

TABLE OF CONTENTS Section

Page Vehicle Fund – Budgetary Comparison Schedule.................................................. 102 Building Fund – Budgetary Comparison Schedule................................................. 103 Fiduciary Fund Agency Fund – Statement of Changes in Assets and Liabilities ............................ 105 Local Highway Finance Report.............................................................................. 107-108

STATISTICAL SECTION Financial Trends Net Assets by Component ................................................................................................... 110 Changes in Net Assets (expenses) ..................................................................................... 111 Changes in Net Assets (revenues) ...................................................................................... 112 Fund Balances, Governmental Funds ................................................................................. 113 Changes in Fund Balances, Governmental Funds.............................................................. 114 Revenue Capacity Direct and Overlapping Property Tax Rates........................................................................ 115 Sales and Use Tax Revenue ........................................................................................... 116-117 Principal Property Tax Payers ......................................................................................... 118-119 Property Tax Levies and Collections ................................................................................... 120 Assessed Value and Actual Value of Taxable Property ...................................................... 121 Debt Capacity Ratios of Outstanding Debt by Type.................................................................................... 122 Ratios of General Bonded Debt Outstanding ...................................................................... 123 Direct and Overlapping Governmental Activities Debt ........................................................ 124 Legal Debt Margin Information ............................................................................................ 125 Pledged-Revenue Coverage ............................................................................................... 126 Schedule of Debt Service Requirements – Governmental Activities................................... 127 Schedule of Debt Service Requirements – Business-type Activities................................... 128 Demographic and Economic Information Demographic and Economic Statistics ................................................................................ 129 Principal Employers ......................................................................................................... 130-131 Operating Information Full-time Equivalent City Government Employees by Function/Program............................ 132 Operating Indicators by Function/Program.......................................................................... 133 Capital Asset Statistics by Function/Program...................................................................... 134

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ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT   December 31, 2010

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FINANCE DEPARTMENT FACSIMILE: 720-898-7846 S TDD: 720-898-7869 PHONE: 720-898-7120 June 28, 2011 Citizens of the City of Arvada, Honorable Mayor, Members of City Council and City Manager We are pleased to submit the Comprehensive Annual Financial Report for Arvada Colorado for the fiscal year ended December 31, 2010. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present the financial position and results of operations of various funds and component units of the City in accordance with Generally Accepted Accounting Principles (GAAP). All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. In addition to an annual audit of the City’s financial records performed by a third-party private auditor, the City is also required to have an annual single audit in conformity with the provisions of the Single Audit Act, as amended, and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Information related to this single audit, including the schedules of federal and state financial assistance, findings and recommendations, and independent auditors’ reports on the internal control structure and compliance with applicable laws and regulations, are not included herein but are reported separately. In conformity with generally accepted accounting principles, as set forth in Government Accounting Standards Board (GASB) Statement 14, The Reporting Entity, and Statement 39, Determining Whether Certain Organizations are Component Units, this report includes all funds of the primary government and the City’s component units. For this report the City of Arvada and all its departments and funds comprise the Reporting Entity. Our component units are the Arvada Urban Renewal Authority and the Arvada Economic Development Association. The City is required to provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of management’s discussion and analysis (MD&A). This letter of transmittal is intended to complement the MD&A and should be read in conjunction with it. PROFILE OF THE CITY OF ARVADA The City of Arvada is located approximately 20 miles to the northwest of the City of Denver Colorado along Interstate 70. The City provides a full range of services, including police protection, physical parks, planning and zoning, transportation planning, street improvements and maintenance, a housing authority, a regional cultural center, two golf courses, municipal court services, water, waste water and storm water services and facilities, along with various administrative functions. The area has separate governmental units that provide fire protection and recreational services. The population of the City is approximately 108,539. THE ECONOMIC FACTORS OF 2010 The City’s finances continued to be unpredictable in 2010. Sales and use taxes combined, which comprise over 50 percent of our revenue for general governmental activities, were up 1.5% over 2009. While this increase was minimal, we viewed it as a positive sign that the City had stabilized and would build momentum for the future years.

P.O. BOX 8101

S

8101 RALSTON ROAD

S

ARVADA, COLORADO

S

80001-8101


City of Arvada Letter of Transmittal Comprehensive Annual Financial Report Page 2

Permit revenue was up for the first six months of 2010 as the last remaining roofs damaged in the hail storm were replaced. We also issued 190 permits for single family homes which more than doubled the number issued in 2009. While this number is still below our historic average, we are hopeful that this is a trend that will continue in 2011 and 2012. The City continued to focus on capital expenditures as over $24.7 million dollars was transferred into the Capital Projects Fund for current and future capital needs. This revenue came from many different sources including the General Fund, Parks Fund, Grants Fund, Construction Fund, Stormwater Fund, Insurance Fund and Vehicle Fund. While this is a large sum of money, it only represents a partial funding of the capital needs identified by City Council, the staff and the citizens of Arvada. Future years will continue to see a dedication to capital as the City’s aging infrastructure is in need of repair. The City departments continued to save budget dollars at every opportunity as the three ballot issues, Proposition 101 and Initiatives 60 and 61, were up for vote in November. While the voters did not pass these issues, the conservative efforts throughout the year did lead to savings of over $2.4 across all funds and $1.7 million in the General Fund. A large percentage of this savings came from personnel as many vacant positions were held open pending the November vote. FUTURE ECONOMIC FACTORS The City of Arvada’s current sales tax base is primarily based upon grocery store anchored shopping areas. In addition, we have five major value-based retailers: Kohl’s, Costco, Sam’s Club, K-Mart and Target shopping areas. We know from national statistics that people tended to shop at these value-based stores in 2010 over other discretionary spending. The question all economists and other interested analysts are asking is what will be significant changes in consumer spending based on the experience of this economic recession. While we certainly do not know the answer to that question, we know that before the recession, these businesses attracted consumers. While we need to always be scanning the environment for competitors to these businesses, we also know that we must ensure the best thing the government can do is strategically invest its capital dollars to ensure the City provides the necessary infrastructure to help all our businesses. To that end, our policy makers have defined their focus for the next two years. The City’s policy makers have clearly articulated that for the next two years, they will focus on capital improvements that strengthen our relationships with both other public agencies and the private sector. Through a series of special meetings, they have: √ Identified and dedicated $1.5 million of additional funding to street maintenance ($800,000), park maintenance ($500,000) and neighborhood revitalization ($200,000). √ Transferred $500,000 and reserved another $500,000 to the Arvada Economic Development Association (AEDA) to be used for small business loans and grants. √ Allocated an additional $900,000 to capital maintenance. This funding was created through reductions in internal service funds transfers and further reductions in line items. √ Dedicated further funding to the Jefferson Parkway Public Highway Authority (JPPHA), a municipal corporation organized in May 2008 to help facilitate the financing, construction, operation and maintenance of a public highway located on the northern and western perimeters of the Denver metropolitan area. JPPHA is currently working with private businesses and the local governments to refine conceptual engineering and firm up financing. When constructed, this road will complete the beltway loop around the greater Denver metro region. √ Dedicated monies to hold in reserve for improvements to Wadsworth Boulevard, which is the main arterial that runs through the City.


City of Arvada Letter of Transmittal Comprehensive Annual Financial Report Page 3

We believe our current economic base will slowly grow: the businesses we have provide the basic needs of our consumers. The only way to expand our economic base is to build upon the assets we currently have – our small businesses, the AURA districts and the partnerships with our regional partners. Also, because we realize our current economic base will only slowly grow, we made some ongoing reductions to our base budget. We reduced our position count in the 2011 budget by 10.5 (the net of 17 position eliminations and 6.5 position additions) across all funds, and departments reduced ongoing expenditures by over one million dollars. These changes better aligned the business needs of the organization for the future. This will be an ongoing annual process. We have learned over the past years that we must constantly question our level of services and how we might provide what we must as effectively and efficiently as possible. We believe we have developed both internal and external collaborations that will help us face the very different and unknown economic environment. FINANCIAL INFORMATION Pension Trust Funds: The City has three defined contribution programs for different types of employees: City of Arvada Retirement Program (CARP) for its regular employees; the Arvada Police Pension Plan (APPP) for its uniformed police officers; and the Executive Management Program for the appointed management team. The City deposits between 10% – 15% into an individual’s account and the employee must contribute between 8% - 10%. The employee directs their own investments within a limitation of funds as identified by each Board. In addition, the City offers a voluntary 457 program where employees can place additional dollars for retirement on a tax-free basis. All four programs have independently elected boards. The APPP uses Fidelity Investments as their record keeper. The others all use Great West Retirement Services. The Council adopts the investment plans of all the Boards. Internal Control Structure: The City of Arvada establishes and maintains an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and valuation of costs and benefits requires estimates and judgments by management. Budgetary Controls: The City of Arvada maintains budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City of Arvada’s City Council, its governing body. All activities of the City are included in the annual appropriated budget. The City maintains an accounting system to provide management with information regarding obligations against appropriations. Budgetary compliance is based on expenditures during the period (GAAP), rather than expenditures and encumbrances (non-GAAP). Because appropriations lapse at December 31, encumbrances outstanding are carried over and become a liability on the 2011 budget. Appropriations for fiscal 2011 will provide the authority to complete those transactions. Single Audit: As a recipient of federal and state financial assistance, the City is responsible for ensuring that adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. As part of the City's single audit, tests are performed to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied, in all material respects, with applicable laws and regulations. The results of the City’s single audit for fiscal year 2010, including any reported instances of significant deficiencies in the internal control structure or any violations of applicable laws and regulations, are reported separately. Independent Audit: Section 10.9 of the City of Arvada’s charter requires an annual audit of accounts and other evidences of financial transactions of the City and its departments by independent certified public accountants. The


City of Arvada Letter of Transmittal Comprehensive Annual Financial Report Page 4

audit is performed by a firm chosen by a three-member audit board consisting of the City Manager and two members of the City Council, known as the Finance Committee. This year Clifton Gunderson LLP, a firm of independent accountants, audited the financial statements for the year ended December 31, 2010. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Arvada for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2009. The City of Arvada has received this award for over 26 consecutive years. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy generally accepted accounting principles and applicable legal requirements. A certificate of achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the certificate of achievement program requirements and we are submitting it to the committee to determine its eligibility for another certificate. The preparation of this report could not have been accomplished without the professionalism and dedication demonstrated by the financial and management personnel of each department. Special mention needs to be directed to the dedicated employees of the Finance Department charged with ensuring that all accounting principles are adhered to each and every day, thus ensuring the efficient and effective preparation of this audit and document. Special thanks goes to Lisa Yagi, Assistant Finance Director; Bryan Archer, Controller; and many people of his team. The production of the document was in the capable hands of Arlene Martinez, the Finance Department’s Executive Secretary, and Steve Milke, the City’s Creative Services Designer. Respectfully submitted,

Victoria A. Runkle Director of Finance


ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT  December 31, 2010 

City Officials Bob Frie Mayor (Term expires 2011) Don Allard Councilmember – At-Large (Term expires 2013) Rachel Zenzinger Councilmember – District 1 (Term expires 2013) Mark McGoff Councilmember – District 2 (Term expires 2011) Shelley Cook Councilmember – District 3 (Term expires 2013) Bob Dyer Mayor Pro Tem Councilmember – District 4 (Term expires 2011) Marc Williams Councilmember – At-Large (Term expires 2011)

City Manager and Key Staff Craig G. Kocian William Ray George Boyle Christopher K. Daly Jo Mattoon James Root Michael Elms Victoria A. Runkle Gene Sobczak Chris Koch Gordon Reusink Timothy Steinhaus Hazel Hartbarger Michele Hovet Vicky Reier Don Wick

City Manager Deputy City Manager Municipal Judge City Attorney Director of Human Resources Director of Public Works Director of Community Development Director of Finance Executive Director of Arvada Center City Clerk Director of Parks, Golf and Hospitality Services Executive Director of Arvada Urban Renewal Authority Director of Arvada Economic Development Association Director of Information Technology Assistant to the City Manager Chief of Police

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ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT  December 31, 2010 

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ARVADA, COLORADO 

CITY OF 

COMPREHENSIVE ANNUAL FINANCIAL REPORT  December 31, 2010 

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A1 Independent Auditor’s Report Honorable Mayor and Members of City Council City of Arvada Arvada, Colorado We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Arvada as of and for the year ended December 31, 2010, which collectively comprise the City of Arvada’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Arvada’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Arvada as of December 31, 2010, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the General Fund, Community Development Fund, Arvada Center Fund, and Parks Fund, for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2011 on our consideration of the City of Arvada’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

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The management’s discussion and analysis and other post-employment benefit information on pages 11 through 22 and 71 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Arvada’s basic financial statements. The supplementary information listed in the table of contents is presented for purposes of legal compliance and additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and statistical section listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

a1 Greenwood Village, Colorado June 28, 2011

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ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

This section of the City of Arvada’s Comprehensive Annual Financial Report provides readers with a narrative overview and analysis of the City’s financial performance during the fiscal year that ended on December 31, 2010. We encourage readers to consider the information presented here in conjunction with the letter of transmittal at the front of this report, the City’s basic financial statements and notes to the financial statements, to enhance their understanding of the activities and financial health of the City of Arvada. Overview of Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of the following three components: • • •

Government-wide Financial Statements Fund Financial Statements Notes to the Financial Statements

Other supplementary information is also included at the end of the report. Government-wide Financial Statements. The government-wide statements are designed to provide readers with a broad overview of the City’s finances using the accrual basis of accounting, the basis of accounting used by most private-sector businesses. The statement of net assets presents information on all of the City’s assets and liabilities. The difference between assets and liabilities are reported as net assets. Over time, increases and decreases in net assets may provide an indication of whether the City’s financial position is improving or deteriorating. The statement of activities presents information reflecting how the City’s net assets have changed during the fiscal year that just ended. All changes in net assets are reported as soon as the underlying activity occurs. Thus, revenues and expenses are reported in these statements for some items that will only result in cash flows in future periods (e.g. uncollected taxes and earned but unused vacation leave). The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (government activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, parks, cultural and human service. The business-type activities of the City include water, wastewater, stormwater, golf and food service. The government-wide financial statements also include both the Arvada Urban Renewal Association and Arvada Economic Development Association as discretely presented component units of the City. Fund Financial Statements. Traditional users of the City’s financial statements will find the fund financial statement presentation more familiar. The focus is now on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. A major fund should generally meet both of the following criteria: 1) total assets, liabilities, revenues, or expenditures/expenses are at least 10% of the corresponding total (assets, liabilities or expenditures/expenses) for that fund type (i.e. governmental or enterprise funds) and 2) total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined. 11


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds. Governmental funds are used to report those same functions reported as governmental activities in the government-wide financial statements. However, unlike the governmentwide statements, the fund financial statements are prepared on the modified accrual basis. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available, and expenditures are recognized when the related fund liability is incurred, with the exception of long-term debt and similar long-term items which are recorded when due. Therefore, the focus of the governmental fund financial statements is on near-term inflows and outflows of spendable resources as well as on the balance of spendable resources available at the end of the fiscal year. Since the focus of the governmental funds is on near-term resources, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. To facilitate this comparison, reconciliations are provided for both the governmental fund balance sheet and the governmental statements of revenues, expenditures and changes in fund balances. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General fund, Community Development fund, Arvada Center fund, Parks fund, General Capital Projects fund and the Construction fund. These six funds are considered to be major funds. Data from the other governmental funds is combined into a single aggregated presentation. Individual fund data for each of these non-major funds is provided in the form of combining statements located within the supplementary information following the notes to the financial statements. The City adopts an annual appropriated budget for all of its governmental funds. A budgetary comparison statement has been provided to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 26-28 of this report. Proprietary Funds. The City maintains two different types of proprietary funds, enterprise and internal service funds. The proprietary fund financial statements are prepared on the accrual basis of accounting. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, wastewater, stormwater, food service and golf operations. Internal service funds are accounting devices used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for dental benefits provided by the City, its risk management program, its replacement of vehicles and information technology equipment, maintenance of vehicles and buildings and its print shop operations. The activity in these funds is allocated between the governmental and business-type activities based upon actual usage. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The Water, Wastewater and Stormwater and enterprise funds are considered to be major funds and are therefore presented separately within the proprietary fund financial statements. The Golf Course and Food Services funds do not qualify as major enterprise funds but are being presented as such. All internal service funds are considered to be non-major funds and they are combined into a single, aggregated column in the proprietary fund statements. Individual fund data for each of the nonmajor proprietary funds is provided in the form of combining statements located within the supplementary information following the notes to the financial statements. 12


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

The basic proprietary fund financial statements can be found on pages 34-36 of this report. Fiduciary Funds. The City maintains two different types of fiduciary funds, trust and agency funds. The fiduciary fund financial statements are prepared on the accrual basis of accounting. The fiduciary funds are used to account for resources held by the City in a trustee capacity or as an agent for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City’s own programs. The funds underlying each of the fiduciary fund types are combined into a single, aggregated column in the fiduciary fund statements The City does not adopt an annual appropriated budget for its fiduciary funds. The basic fiduciary fund financial statements can be found on pages 37-38 of this report. Notes to the Financial Statements. The notes to the basic financial statements are considered an integral part of the financial statements since they provide additional information needed to gain a full understanding of the data provided in both the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39-70 of this report. Combining Statements. The combining statements referred to earlier in connection with the non-major governmental funds, non-major enterprise funds, internal service funds and fiduciary funds are presented following the required notes to the financial statements. Infrastructure Assets. Historically, infrastructure assets (roads, bridges and capital improvements other than buildings) have not been reported or depreciated in governmental financial statements. Infrastructure represents a significant portion of the government’s assets. Similarly, the outflow of resources expended by a government to maintain infrastructure also represents a sizeable portion of its operations. GASB 34 requires that the infrastructure assets be valued and reported within the governmental column of the government-wide statements. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. At the close of December 31, 2010, the City’s assets exceeded liabilities by $635,169,000. The following summaries of net assets and changes in net assets are presented for the current year and the previous year in comparison format.

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ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

Statement of Net Assets The following table reflects the condensed Statement of Net Assets: City of Arvada Statement of Net Assets December 31, 2010 (in thousands) Governmental Activities

Current and other assets Capital assets Other non-current assets Total assets Other liabilities Long-term liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets

2010

2009

$ 138,678 266,315 5,984 410,977

$ 138,880 267,231 2,898 409,009

19,509 43,016 62,525

26,767 46,773 73,540

222,197 20,156 106,099 $ 348,452

218,883 17,934 98,652 $ 335,469

Business-type Activities 2010

2010

2009

91,710 216,571 203 308,484

$ 229,221 485,840 6,168 721,229

$ 230,590 483,802 3,101 717,493

4,595 18,940 23,535

3,569 20,885 24,454

24,104 61,956 86,060

30,336 67,658 97,994

198,953 87,764 $ 286,717

194,128 89,902 $ 284,030

421,150 20,156 193,863 $ 635,169

413,011 17,934 188,554 $ 619,499

$

90,543 219,525 184 310,252

2009

Total Primary Government

$

For more detailed information, see the Statement of Net Assets on page 23 of this report. By far the largest portion of the City’s Governmental net assets (64 percent) reflects its investment in capital assets (e.g. land, buildings, improvements, infrastructure and equipment), less any debt used to acquire those assets still outstanding. The City of Arvada uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s Governmental net assets (6 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $106,099,000 or (30 percent), may be used to meet the City’s ongoing obligations to its citizens and creditors. The City’s total net assets increased by $11,955,000 during the current fiscal year, net of the prior period adjustments. This is due to an increase in the governmental activities of $9,268,000 and an increase in the business-type activities of $2,687,000. The increase is primarily due to expansion in capital assets of both the City’s streets and utilities infrastructure, which are funded by dedicated revenues sources, contributed capital from developers and increases in user fees. 14


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

Changes in Net Assets The following table reflects a condensed summary of activities and changes in net assets: City of Arvada Statement of Activities December 31, 2010 (in thousands) Governmental Activities 2010 Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Sales and use taxes Property & Ownership taxes Other taxes and fees Interest Other Total revenues Expenses General government Public safety Public works Parks and recreation Culture Human services Interest Water Wastewater Stormwater Golf Food Total expenses Increase in net assets before transfers Transfers Increase in net assets Net assets, beginning Prior period adjustments Net assets, ending

$

15,313 11,790 180

2009

$

50,259 4,961 4,761 1,234 3,119 91,617 $

12,930 22,999 17,102 14,382 10,004 4,734 1,579 83,730

7,887 1,381 9,268 335,469 3,715 $ 348,452

Business-type Activities

16,254 9,501 2,789

2010

$

49,530 5,121 4,665 1,875 462 90,197 $

14,267 23,544 16,967 14,273 10,649 4,251 2,329 86,280

3,917 882 4,799 331,255 (585) $ 335,469

35,697 64 2,584

2009

$

894 84 39,323 $

19,150 9,341 1,279 3,871 1,614 35,255

4,068 (1,381) 2,687 284,030 $ 286,717

Total Primary Government

33,386 1,581

2010

$

1,361 1,319 37,647 $

19,386 8,770 1,366 4,010 1,659 35,191

2,456 (882) 1,574 279,736 2,720 $ 284,030

51,010 11,854 2,764

2009

$

50,259 4,961 4,761 2,128 3,203 130,940 $

12,930 22,999 17,102 14,382 10,004 4,734 1,579 19,150 9,341 1,279 3,871 1,614 118,985

11,955 11,955 619,499 3,715 $ 635,169

49,640 9,501 4,370 49,530 5,121 4,665 3,236 1,781 127,844

$

14,267 23,544 16,967 14,273 10,649 4,251 2,329 19,386 8,770 1,366 4,010 1,659 121,471

6,373 6,373 610,991 2,135 $ 619,499

For more detailed information, see the Statement of Activities on pages 24-25 of this report. The above condensed summary of the City of Arvada’s governmental and business-type activities for the year ended December 31, 2010 reflects net assets increasing $11,955,000, net of the prior period adjustments. Revenues and expenses graphs are presented below to enhance the reader’s understanding of the current year activities.

15


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

Governmental Activities Governmental Activities increased Arvada’s Net Assets by $9,268,000 2010 Revenues by Source  Governmental Activties

Property &  Ownership taxes 5.41%

Other taxes and  fees 5.20%

Other 3.40%

Interest 1.35%

Charges for  services 16.71% Operating  grants and  contributions 12.87%

Capital grants and  contributions 0.20%

Sales and use  taxes 54.86%

2010 Expenses and Program Revenues Governmental Activities $25,000 

$20,000

Expense

$15,000

$10,000

$5,000

$‐ General Govt

Public Safety

Public Works

Parks &  Rec

16

Culture

Human Svc

Interest

Revenue


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

Business-type Activities Business-type Activities increased Arvada’s Net Assets by $2,687,000.

2010 Expenses and Program Revenues Business‐Type Activities Capital  grants and  Interest contributions 2.27% 6.57%

Other 0.21%

Operating grants  and contributions 0.16%

Charges for  services 90.79%

2010 Expenses and Program Revenues Business‐Type Activities 20,000  18,000  Expense 16,000  14,000  12,000  10,000  8,000  6,000  4,000  2,000  ‐ Water

Wastewater Stormwater

17

Golf

Food

Revenue


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

Governmental activities. Governmental activities in 2010 were driven by three primary initiatives. First, statewide there were three ballot initiatives, referred to as “60/61/101”. If any or all of these would have passed, it would have required the City to dramatically reduce all local services. While these did not pass, their impact was two-fold. The analysis of these initiatives required a significant amount of work for all departments. Also, it had a chilling impact on hiring for any vacant positions. The second major impact meant we left many positions vacant. In the General Activities, it translated into personnel savings of over $2,420,275. This added to net assets. The second primary initiative was the reduction of ten positions in the 2010 budget in the General Activities. The reductions in the 2010 budget were the result of an in-depth analysis of work. This resulted in lowering our actual employment costs by over $825,000 in 2010 from 2009, and this, of course, is an ongoing savings. The third primary initiative in the General Activities was the allocation of all unreserved cash balances from Internal Service, General and other small funds to both new capital projects and programs to help the creation of small businesses. Overall, we dedicated over $20 million to these projects, including $1.5 million to small business loan and grant programs and the balance to the CIP. This also helped increase our net assets. Also increasing our net assets was the savings that departments had in a variety of line items. In fuel alone, the City saved over $250,000 – again providing assets to our General Activities. We also ended the year with an identified budget of $2.6 million as support to an intergovernmental agency, the Jefferson Parkway Public Highway Authority (JPPHA). They did not need the $2.6 million in 2010; thus, this cash was left in the net assets at the end of the year. The JPPHA will be requesting these monies in 2011. Overall, the reserves performed nearly as we had estimated. The local economy began to perform somewhat better than 2009 with over $100,000 more in sales taxes, sales tax audit revenue of over $900,000 as compared to $600,000 in 2009, and improving revenue from the state-shared intergovernmental revenue of vehicle fuel taxes of $250,000. All of these changes helped increase the City’s net assets by $9,268,000.

Business-type activities. Business-type activities increased the City’s net assets by $2,687,000. Key elements of this increase are due to the following: • • •

Capital contributions from developers into the Water, Wastewater and Stormwater Funds The budgeting strategy for 2010 included measures so the revenues would exceed expenses in the Wastewater and Stormwater Funds for future large capital needs. Expenses were down in the Golf Course and Food Service Funds compared to last year. This was due to the economy, a reduction in revenues and the deferral of some capital purchases.

Financial Analysis of the City’s Funds As noted previously, the City uses fund accounting to ensure and demonstrate compliance with financerelated 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 18


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of year. At the end of December 31, 2010, the City’s governmental funds reported combined ending fund balances of $104,722,000, an increase of $5,973,000 from the prior year including a prior period adjustment of $3,715,000. Approximately $83,742,000 (80 percent of that amount) constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed for prepaid expenses or inventory ($731,000), to fund a state constitution mandated emergency reserve ($3,518,000) or for other restricted purposes ($16,731,000). The General Fund is the main operating fund of the City. At December 31, 2010, the unreserved fund balance of the General Fund was $18,652,000 while the total fund balance was $21,058,000. The General Fund balance of the City decreased $11,681,000. This was primarily due to some large one-time transfers made to the Capital Projects Fund for future capital projects. The Community Development Fund is a major fund of the City. At December 31, 2010, the unreserved fund balance of the Community Development Fund was $5,527,000, while the total fund balance was $7,094,000. The fund balance decreased $425,000 in 2010. This was primarily caused by 3 new loans made in 2010. The Arvada Center Fund is a major fund of the City. At December 31, 2010, the unreserved fund balance of the Arvada Center Fund was $147,000, while the total fund balance was $617,000. The fund balance increased $313,000 in 2010, including a prior period adjustment of $332,000 related to the Arts Council. This was primarily caused by decreases in ticket sales and performance-related revenues and increased production costs. The Parks Fund is a major fund of the City for 2010. At December 31, 2010, the unreserved fund balance of the Parks Fund was $3,535,000, while the total fund balance was $3,830,000. The fund balance increased $1,321,000 in 2010, including a prior period adjustment of $3,383,000 related to Park development fees. This was primarily due to savings in expenditure lines, specifically personnel, temporary wages and utilities and increases in recovered costs and Open Space revenues. The General Capital Projects Fund is another major fund of the City. At December 31, 2010, the unreserved fund balance was $44,533,000, while the total fund balance was $45,305,000. The fund balance increased $15,755,000 in 2010. This increase was caused by transferring of dollars for multiyear and future year projects all in 2010. Examples of these are the Garrison Street Park and Bridge project, 2-3 year time period, the East and South Central Park projects, 3 year time periods, and the Wadsworth Corridor project, 3-5 year time period. The Construction Fund is the final major fund of the City. At December 31, 2010, the unreserved fund balance was $4,277,000 a decrease of $606,000 over 2009. This reduction was caused by two items, a transfer to the Capital Projects Fund for a future project and payment of final arbitrage on the 2005 COP Bond issue.

Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The unrestricted net asset balances of the City’s proprietary funds (including the major enterprise funds) are reflected in the following table: 19


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

Table of Unrestricted Net Assets Change in Net Assets - Proprietary Funds (in thousands) Unrestricted Net Assets for Year ended 12/31/10 Major Enterprise Funds Water Wastewater Stormwater Golf Food Total of major enterprise funds Internal service funds Total proprietary funds

$

59,347 10,204 10,788 20 904 81,263 23,473 104,736

$

Unrestricted Net Assets for Year ended 12/31/09 $

$

63,398 9,609 11,631 (34) 909 85,513 23,452 108,965

Component units. The Arvada Economic Development Association (AEDA) was established to encourage all forms of economic development. Funding for AEDA consists of compensation from the City for services it renders the City and its citizens. The statement of net assets reflects a $1,061,000 unrestricted net asset balance. The unrestricted assets of AEDA amounted to $1,061,000. The total change in net assets for AEDA was an increase of $529,000. Budgetary Highlights General Fund. The increase from the original budgeted expenditures to the final budget amounted to $20,147,642: • • • • • •

Transfer to Capital Improvements Set aside for JPPHA Transfer to Arvada Center Purchase of AURA Loan Grants Miscellaneous Small Increases

$12,300,000 2,700,000 705,000 2,750,000 1,082,092 610,550 $20,147,642

There were no significant variances between the final amended budget and the actual results. Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2010 amounted to $485,840,000 (net of accumulated depreciation). This investment in capital assets includes land, water rights, buildings and improvements, equipment and infrastructure.

20


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

City of Arvada Capital Assets (net of depreciation) as of December 31, 2010 (in thousands)

Land and water rights Infrastructure Construction in progress Buildings Improvements other than buildings Equipment & Vehicles Total capital assets

Governmental Activities

Business-type Activities

Total Primary Government

$

$

$

$

51,527 132,910 7,516 18,976 49,561 5,825 266,315

$

34,925 6,784 724 7,646 167,989 1,457 219,525

$

86,452 139,694 8,240 26,622 217,550 7,282 485,840

Major capital improvements during this fiscal year include the following: Governmental Activities • Completion of the Skyline Estate Park • Completion of the Memorial Park Playground • Completion of traffic signal and lane change at 58th and Kipling Street • Completion of the Arvada Channel Trail • Purchase of land related to the Garrison Bridge project Proprietary Activities • Completion of the Leyden Storage Facility • Completion of the Arvada Channel COP project • Completion of the Croke Pump Station Additional information of the City’s capital assets can be found in Note 3.B on pages 54-55 of this report. Long-term debt. At the end of December 31, 2010, the City had total debt outstanding of $63,984,000. Of this amount, $46,430,000 represents bonds secured by specified revenue sources (i.e. sales tax revenue bonds and water revenue bonds). The remaining $17,554,000 is represented by capital leases of $1,685,000, Certificates of Participation of $14,755,000, and an OPEB liability of $1,141,000.

21


ARVADA, COLORADO 

CITY OF 

MANAGEMENT’S DISCUSSION AND ANALYSIS  December 31, 2010

City of Arvada Outstanding Debt as of December 31, 2010 (in thousands) Governmental Activities

Business-type Activities

Total Primary Government

Revenue bonds Certificates of Participation OPEB Capital leases

$

27,775 14,755 1,141 783

$

18,655 875

$

46,430 14,755 1,141 1,658

Total outstanding debt

$

44,454

$

19,530

$

63,984

Additional information on the City’s long-term obligations can be found in Note 3.E on pages 57-61 of this report. Financial Contact The City’s financial statements are designed to provide users (citizens, taxpayers, customers, investors and creditors) with a general overview of the City’s finances and to demonstrate the City’s accountability. Questions concerning any of the information presented in this report or requests for additional information should be sent to the City’s Finance Director at the following address: City of Arvada Attention: Finance Director P.O. Box 8101 Arvada, CO 80001

22


ARVADA, COLORADO

CITY OF 

STATEMENT OF NET ASSETS December 31, 2010 (in thousands)   Governmental Activities ASSETS Cash and investments Restricted cash Cash with fiscal agent Taxes receivable Accounts receivable, net of allowance for uncollectibles Special assessments receivable Accrued interest Internal balances Inventories Prepaid costs Notes Receivable – non-current Unamortized bond issuance costs Property available for sale Investment in LLC Capital assets Land, water rights and construction in progress Other capital assets, net Total capital assets Total assets LIABILITIES Accounts & contracts payable Accrued interest payable Deferred revenue Long-term liabilities Due within one year: Bonds and notes payable Certificates of Participation Claims payable Capital leases Compensated absences Due in more than one year: Bonds and notes payable Certificates of Participation Capital leases OPEB Compensated absences Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Debt Service Emergencies Letter of Credit Scholarships & Grants Conservation Trust CDBG Law Enforcement Unrestricted TOTAL NET ASSETS

Primary Government Businesstype Activities

$ 125,501 1,746 10,738

$

Component Units AURA AEDA

Total

80,810 25 -

$ 206,311 1,746 25 10,738

4,355 186 4,636 375 156 184 -

7,657 44 461 873 693 5,984 857 -

72 11 557 5,820 2,000

427 1 5 -

59,043 207,272 266,315 410,977

35,649 183,876 219,525 310,252

94,692 391,148 485,840 721,229

4 4 15,565

1,089

5,716 176 5,596

2,016 152 135

7,732 328 5,731

133 5,270

28 -

3,202 820 1,721 249 2,029

1,734 228 330

4,936 820 1,721 477 2,359

-

-

25,378 13,935 534 1,141 2,028 62,525

17,963 647 330 23,535

43,341 13,935 1,181 1,141 2,358 86,060

2,745 6 8,154

28

222,197

198,953

421,150

4

-

201 3,518 36 186 3,217 1,524 11,474 106,099 $ 348,452

87,764 $ 286,717

201 3,518 36 186 3,217 1,524 11,474 193,863 $ 635,169

7,407 7,411

1,061 1,061

3,302 44 275 (4,636) 498 537 5,984 673 -

The accompanying notes are an integral part of these financial statements. 23

$

$

1,831 5,270

$

$

656 -


ARVADA, COLORADO

CITY OF 

STATEMENT OF ACTIVITIES Year Ended December 31, 2010 (in thousands)

Expenses FUNCTIONS/PROGRAM ACTIVITIES: Primary Government: Governmental activities: General government Public safety Public works Parks and recreation Culture Human services Interest Total governmental activities

$ 12,930 22,999 17,102 14,382 10,004 4,734 1,579 83,730

Business-type activities: Water Wastewater Stormwater Golf Food Total business-type activities Total primary government Component Units: AURA AEDA Total component units

$ $

Charges for Services

Program Revenues Operating Capital Grants Grants and And ContriContributions butions

$

$

5,130 1,578 2,603 1,479 4,454 69 15,313

1,532 4,002 1,214 5,042 11,790

$

Total

180 180

$

6,662 1,578 2,603 5,661 5,668 5,111 27,283

19,150 9,341 1,279 3,871 1,614 35,255

17,250 9,904 3,099 3,890 1,554 35,697

64 64

2,172 328 84 2,584

19,422 10,232 3,247 3,890 1,554 38,345

118,985

51,010

11,854

2,764

65,628

6,411 707 7,118

$ $

173 173

$ $

1,228 1,228

The accompanying notes are an integral part of these financial statements. 24

$ $

-

$ $

173 1,228 1,401


ARVADA, COLORADO

CITY OF 

Net (Expense) Revenue and Changes in Net Assets Primary Government - City of Arvada GovernBusinessmental Type Activities Activities Total

$

(6,268) (21,421) (14,499) (8,721) (4,336) 377 (1,579) (56,447)

$

-

$ General Revenues Taxes: Property and Ownership Sales and use Transportation tax Investment earnings Miscellaneous Transfers in (out) Total Change in net assets Net assets, January 1 Prior Period Adjustment Net assets, December 31

$

-

4,961 50,259 4,761 1,234 3,119 1,381 65,715 9,268 335,469 3,715 $ 348,452

$

(6,268) (21,421) (14,499) (8,721) (4,336) 377 (1,579) (56,447)

272 891 1,968 19 (60) 3,090

(56,447)

$

-

3,090

$ $

$

-

894 84 (1,381) (403) 2,687 284,030 $ 286,717

Component Unit AURA

$

-

Component Unit AEDA

$

-

272 891 1,968 19 (60) 3,090

-

-

(53,357)

-

-

$

-

$

4,961 50,259 4,761 2,128 3,203 65,312 11,955 619,499 3,715 $ 635,169

$

$

The accompanying notes are an integral part of these financial statements. 25

$

$

(6,238) (6,238)

$

6,015 514 34 6,563 325 5,086 2,000 7,411

$

$

$

521 521

8 8 529 532 1,061


ARVADA, COLORADO

CITY OF 

GOVERNMENTAL FUNDS BALANCE SHEET December 31, 2010 (in thousands)

General Fund ASSETS Cash and investments Restricted cash Taxes receivable Accounts receivable, net of allowance for uncollectibles

$

Arvada Center

$

$

350 85 37 204 381

Special assessments receivable Accrued interest Due from other funds Inventories Prepaid costs Non-current notes receivable, net of allowance for uncollectibles Total assets

18,801 10,022

Community Development Fund

$

2,778 32,658

5,456 1,524 348 -

$

3,206 10,534

1,477 222 -

Primary Government General Capital Projects Construction Parks Fund Fund $

3 2 79 78

$

1,861

2,551 588

$

918 12 9 39

$

4,117

45,598 11

$

991 44 81 -

$

46,725

4,277 -

Other Governmental Funds

Total Governmental Funds

$

$

1 -

$

4,278

21,933 117 688 44 20

$

22,802

100,093 1,746 10,738 3,299 44 224 37 292 518

$

5,984 122,975

LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Escrows payable Due to other funds Deferred revenue Total liabilities FUND BALANCES Reserved for: Inventories Prepaid costs Conservation Trust Law enforcement programs Letter of Credit Community Development Housing Scholarships & Grants Emergencies Total reserved

4,145 7,455 11,600

9 1 3,430 3,440

282 962 1,244

266 21 287

385 1,035 1,420

1 1

224 37 261

5,312 1 37 12,903 18,253

204 381 1,821 2,406

1,524 43 1,567

78 36 186 170 470

9 39 247 295

772 772

-

20 3,217 11,474 294 465 15,470

213 518 3,217 11,474 36 1,524 294 186 3,518 20,980

Unreserved: Designated reported in: General fund - future Special revenue funds Undesignated reported in: General fund Special revenue funds Debt Service funds Capital projects funds Total unreserved

828 -

-

166

-

-

-

-

828 166

17,824 18,652

5,527 5,527

(19) 147

3,535 3,535

44,533 44,533

4,277 4,277

6,694 377 7,071

17,824 15,737 377 48,810 83,742

Total fund balances

21,058

7,094

617

3,830

45,305

4,277

22,541

104,722

Total liabilities and fund balances

$

32,658

$

10,534

$

1,861

$

The accompanying notes are an integral part of these financial statements.

26

4,117

$

46,725

$

4,278

$

22,802

$

122,975


ARVADA, COLORADO

CITY OF 

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS December 31, 2010 (in thousands)

Amounts reported for governmental activities in the statement of net assets (page 23) are different because: Total fund balances – governmental funds (page 26)

$ 104,722

Capital assets net of accumulated depreciation used in governmental activities are not current financial resources. Therefore, they are not reported in the fund financial statement.

260,865

Internal service funds are used by management to charge the costs of certain activities to individual funds. A portion of the assets and liabilities of internal service funds are included in the governmental activities in the statement of net assets. Long-term assets are not available to pay current year expenditures and therefore are deferred in the fund Notes Receivable – non-current net of allowance AURA Loan Donated Art

23,657

4,486 2,745 77 7,308

Long-term liabilities and related items are not due and payable in the current period and accordingly are not reported in the fund financial statements. Balances at December 31, 2010 are: Bonds payable Certificates of Participation Obligation under capital lease Interest Accrual OPEB Compensated absences Unamortized bond issuance costs Subtotal Net assets of governmental activities (page 23)

(28,580) (14,755) (153) (176) (1,141) (3,968) 673 (48,100) $348,452

The accompanying notes are an integral part of these financial statements. 27


ARVADA, COLORADO

CITY OF 

GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 2010 (in thousands)

General Fund REVENUES Property and Ownership Taxes Sales and use taxes Franchise fees Licenses & permits Intergovernmental Charges for services Recovered costs Fines & Forfeitures Interest Memberships & donations Miscellaneous Total Revenues

$

EXPENDITURES Current expenditures: General government Public Safety Public Works Parks and recreation Culture Human Services Debt Service Principal Interest Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

$

4,961 39,646 4,327 2,964 5,814 458 565 1,558 249 148 60,690

Community Development Fund $

1,280 33 69 1,382

Primary Government General Capital Projects Construction Parks Fund Fund

Arvada Center $

923 4,454 40 291 121 5,829

$

168 4,002 943 52 91 5,256

$

180 123 245 421 969

$

3 3

Other Governmental Funds $

10,613 4,241 216 431 15,501

Total Governmental Funds $

4,961 50,259 4,327 3,132 16,440 5,035 1,753 1,558 1,014 291 860 89,630

13,571 17,871 17,286 -

1,043

9,788 -

6,666 -

-

39 -

87 6,002 3,726

13,697 23,873 17,286 6,666 9,788 4,769

604 49,332

1,043

9,788

34 6,700

9,279 9,279

39

4,079 1,667 15,561

4,079 1,667 9,917 91,742

11,358

$

339

$

(3,959)

$

(1,444)

$

(8,310)

$

(36)

$

(60)

$

(2,112)

OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES, BEGINNING PRIOR PERIOD ADJUSTMENT FUND BALANCES, ENDING

$

(23,039) (23,039)

45 (809) (764)

3,940 3,940

3,110 (3,728) (618)

(11,681) 32,739

(425) 7,519

(19) 304

(2,062) 2,509

21,058

$

7,094

$

332 617

$

3,383 3,830

24,770 (705) 24,065

15,755 29,550 $

45,305

The accompanying notes are an integral part of these financial statements. 28

(570) (570)

1,752 (396) 1,356

(606) 4,883 $

4,277

33,617 (29,247) 4,370

1,296 21,245 $

22,541

2,258 98,749 $

3,715 104,722


ARVADA, COLORADO

CITY OF 

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year ended December 31, 2010 (in thousands) Net change in fund balances – total government funds (page 28) Governmental funds report capital outlays as expenditures. However in the statement of activities, the cost of those assets is allocated over their useful lives and reported as depreciation expense. This is the amount by which depreciation exceeded capital outlays in the current period. Capital outlay Depreciation expense Disposal of capital assets Excess of depreciation expense over capital outlay

$2,258

9,917 (9,815) (263) (161)

Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net assets. Issuing debt increases long-term liabilities and does not affect the statement of activities. Repayment of principal

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Amortization of Bond Premium Donated Art Notes Receivable Subtotal

4,078

102 77 4,333 4,512

Internal service funds are used by management to charge the costs of certain activities, such as risk management, vehicle replacement and maintenance, information technology replacement and the print shop services. A portion of the revenue (expense) of certain internal service funds is reported with governmental activities. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Amortization of Bond issuance costs OPEB Interest Expense Compensated absences Subtotal Change in net assets of governmental activities (page 25)

The accompanying notes are an integral part of these financial statements.

29

(931)

(69) (462) 88 (45) (488) $ 9,268


ARVADA, COLORADO

CITY OF 

GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual Amounts

Variance With Final Budget Positive (Negative)

$

$

Budgeted Amounts

REVENUES Property and ownership taxes Sales and use taxes Franchise fees Licenses and permits Intergovernmental Charges for services Recovered costs Fines and forfeitures Interest Administrative services Miscellaneous Total revenues EXPENDITURES Current expenditures: Fund administration Legislative Judicial Management Legal Finance Human resources Public safety Public works Planning Information technology Total current expenditures Capital outlay Total expenditures EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

Original

Final

$ 5,054 36,953 4,473 1,871 4,808 357 200 1,648 300 5,658 89 61,411

$ 5,054 39,060 4,473 2,426 4,706 438 285 1,648 485 5,658 89 64,322

2,269 303 915 2,421 1,354 2,725 1,272 19,435 17,477 2,229 3,050 53,450 36 53,486

9,927 311 918 2,472 1,354 2,780 1,419 19,576 18,373 2,311 3,050 62,491 98 62,589

5,291 289 846 2,196 1,324 2,713 1,341 17,871 17,286 2,221 2,933 54,311 604 54,915

4,636 22 72 276 30 67 78 1,705 1,087 90 117 8,180 (506) 7,674

7,925

1,733

11,358

9,625

(10,750) (10,750) (2,825) 26,520 $ 23,695

(21,795) (21,795) (20,062) 32,739 $ 12,677

Total expenditures as presented on budgetary basis plus allocation of internal transfers Total expenditures as presented on GAAP basis

4,961 39,646 4,327 2,964 5,814 458 565 1,558 249 5,583 148 66,273

(23,039) (23,039) (11,681) 32,739 $ 21,058 $ 54,915 (5,583) $ 49,332

The accompanying notes are an integral part of these financial statements.

30

$

(93) 586 (146) 538 1,108 20 280 (90) (236) (75) 59 1,951

(1,244) (1,244) 8,381 8,381


ARVADA, COLORADO

CITY OF 

COMMUNITY DEVELOPMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Variance With Final Budget

Budgeted Amounts Actual

Positive

Final

Amount

(Negative)

638 20 108

$ 1,238 20 108

$ 1,280 33 69

$

766

1,366

1,382

16

1,235

1,235

1,043

192

1,235

1,235

1,043

192

131

339

208

Original REVENUES Intergovernmental Interest Miscellaneous

$

Total revenues

42 13 (39)

EXPENDITURES Current expenditures: Human Services Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

(469)

OTHER FINANCING SOURCES (USES) Transfers in

45

45

45

(193)

(793)

(809)

(16)

Total other financing sources

(148)

(748)

(764)

(16)

NET CHANGE IN FUND BALANCE

(617)

(617)

(425)

192

Transfers out

FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

5,561

7,519

7,519

4,944

$ 6,902

$ 7,094

The accompanying notes are an integral part of these financial statements.

31

-

$

192


ARVADA, COLORADO

CITY OF 

ARVADA CENTER FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Intergovernmental revenues Scientific and Cultural Facilities District State and local Charges for services Performing Arts Education Gallery/Museum Interest Memberships and donations Miscellaneous

$

Total revenues EXPENDITURES Current expenditures: Administration Performing Arts Development Marketing Education Gallery/Museum Facilities Total current expenditures Capital outlay Total expenditures DEFICIENCY OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES Transfers in Total other financing sources

987 5

$

$

987 5

913 10

(74) 5

3,558 946 150 631 168

4,161 946 150 631 168

3,453 843 158 40 291 121

(708) (103) 8 40 (340) (47)

6,445

7,048

5,829

(1,219)

476 5,378 212 1,345 1,459 558 236 9,664

506 5,706 225 1,427 1,548 592 250 10,254

498 5,438 214 1,360 1,475 565 238 9,788

8 268 11 67 73 27 12 466

13

13

-

13

9,677

10,267

9,788

479

(3,232)

(3,219)

(3,959)

(740)

3,235

3,940

3,940

-

3,235

3,940

3,940

-

3

721

138 141

304 1,025

NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING PRIOR PERIOD ADJUSTMENT FUND BALANCE, ENDING

Final

$

The accompanying notes are an integral part of these financial statements.

32

$

(19)

(740)

304 332 617

332 (408)

$


ARVADA, COLORADO

CITY OF 

PARKS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Budgeted Amounts Original Final REVENUES Licenses, permits & fees Intergovernmental revenues Jefferson County-Open Space Recovered costs Interest Miscellaneous

$

Total revenues EXPENDITURES Current expenditures: Park maintenance Park design Total current expenditures

43

DEFICIENCY OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources

$

168

125

4,002 943 52 91

1,068 120 (43) 34

3,918

3,952

5,256

1,304

6,187 762

6,182 762

5,949 717

233 45

6,949

6,944

6,666

278

-

34

34

-

6,949

6,978

6,700

278

(3,031)

(3,026)

(1,444)

1,582

3,110 (15)

3,110 (885)

3,110 (3,728)

(2,843)

3,095

2,225

(618)

(2,843)

(2,062)

(1,261)

2,509 3,383 3,830

3,383 2,122

64

$

$

2,934 823 95 57

NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING PRIOR PERIOD ADJUSTMENT FUND BALANCE, ENDING

43

2,917 823 95 40

Capital outlay Total Expenditures

$

Actual Amounts

Variance With Final Budget Positive (Negative)

2,227 2,291

(801)

$

The accompanying notes are an integral part of these financial statements.

33

2,509 1,708

$

$


ARVADA, COLORADO

CITY OF 

PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31, 2010 (in thousands) Governmental Activities

Business-Type Activities

Water Fund ASSETS CURRENT ASSETS Cash and investments Cash with fiscal agent Accounts receivable, net of allowance for uncollectibles Accrued interest Inventories Prepaid costs Total current assets

$

59,987 25

Stormwater Fund

Waste-water fund

$

9,326 -

$

Golf Course

10,460 -

$

182 -

Food Service

Total Business Type Activities

$

$

855 -

80,810 25

Internal Service Funds

$

25,408 -

1,968 139 250 52 62,421

1,836 21 8 11,191

382 23 10,865

17 1 93 93 386

152 2 32 3 1,044

4,355 186 375 156 85,907

3 51 206 19 25,687

184

-

-

-

-

184

-

30,786

5

628

4,230

-

35,649

-

114,171 207,562

37,421 48,617

27,816 39,309

3,439 8,055

1,029 2,073

183,876 305,616

5,450 31,137

851 25 105 206

725 206 28

59 9

111 22 62

64 25

1,810 25 127 206 330

404 44

1,630 104 2,921

959

68

228 109 532

26 115

1,630 104 228 135 4,595

1,721 96 2,265

NONCURRENT LIABILITIES Serial bonds payable Bond Premium Accrued compensated absences

17,025 938 206

28

9

62

25

17,025 938 330

45

Capital lease payable Total non-current liabilities Total liabilities

18,169 21,090

28 987

9 77

647 709 1,241

25 140

647 18,940 23,535

534 579 2,844

NET ASSETS Invested in capital assets, net of related debt

125,260

37,426

28,444

6,794

1,029

198,953

4,820

Restricted Unrestricted Total net assets

1,865 59,347 186,472

10,204 47,630

10,788 39,232

20 6,814

904 1,933

1,865 81,263 282,081

23,473 28,293

NONCURRENT ASSETS Deferred charges Land, water rights & construction in progress Property & equipment, net of accumulated depreciation Total assets LIABILITIES CURRENT LIABILITIES Accounts payable Matured bonds & interest payable Accrued interest Contracts payable Accrued compensated absences Serial bonds payable Bond Premium Claims payable Capital lease payable Deferred revenue Total current liabilities

$

$

$

$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net Assets of business-type activities (page 23) The accompanying notes are an integral part of these financial statements.

34

$

$

$

4,636 286,717

$


ARVADA, COLORADO

CITY OF 

PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS Year Ended December 31, 2010 (in thousands) Governmental Activities

Business-Type Activities

Water Fund REVENUES Sales Licenses/permits & fees Service charges & fees Recovered costs Grants Miscellaneous Total revenues

$

16,865 13 292 80 17,250

Stormwater Fund

Waste-water fund $

9,904 9,904

$

3,099

Golf Course $

64 3,163

1,384 2,497 9 3,890

Food Service

Total Business Type Activities

$

$

1,539 15 1,554

19,788 13 15,792 64 104 35,761

Internal Service Funds $

9,485 257 108 9,850

EXPENSES Operating & maintenance Administration Insurance premiums Uninsured damages & claims Repair & maintenance Depreciation Total expenses

14,337 671 3,448 18,456

7,343 742 1,079 9,164

832 457 1,289

3,678 213 3,891

1,546 41 51 1,638

27,736 1,454 5,248 34,438

3,314 536 450 2,361 1,098 7,759

OPERATING INCOME (LOSS)

(1,206)

740

1,874

(1)

(84)

1,323

2,091

676 (110) (697) 84

95 (216) -

112 -

3 (41) -

8 -

894 (326) (738) 84

220 22 (28) -

(47)

(121)

112

(38)

8

(86)

214

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS

(1,253)

619

1,986

(39)

(76)

1,237

2,305

CAPITAL CONTRIBUTIONS TRANSFERS IN TRANSFERS OUT

2,172 500 (91)

328 63 (259)

84 1 (1,772)

154 (4)

27 -

2,584 745 (2,126)

711 (3,700)

CHANGE IN NET ASSETS

1,328

751

299

111

(49)

2,440

(684)

NON-OPERATING REVENUES (EXPENSES) Interest income Gain (loss) on sale of assets Interest expense Amortization Total non-operating revenues (expenses)

NET ASSETS, BEGINNING NET ASSETS, ENDING

$

185,144 186,472

$

46,879 47,630

$

38,933 39,232

$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in Net Assets of business-type activities (page 25) The accompanying notes are an integral part of these financial statements.

35

6,703 6,814

$

1,982 1,933

$

$

247 2,687

28,977 28,293


ARVADA, COLORADO

CITY OF 

PROPRIETARY FUNDS STATEMENT OF CASH FLOWS Year Ended December 31, 2010 (in thousands) Governmental Activities

Business-Type Activities

Water Fund Cash flows from operating activities Cash received from external customers $ 17,240 Cash received from internal customers Cash payments to external suppliers (9,127) Cash payments to internal suppliers (657) Cash payments to employees for services (5,130) Net cash provided (used ) by operating activities 2,327 Cash flows from non-capital financing activities

Stormwater Fund

Wastewater fund 9,852 (5,714) (427) (1,186) 2,525

(1,298) (384) (1,971) 241

1,400 79 (712) (60) (845) (138)

(91) 500

(259) 63

(1,772) 1

(4) 154

27

(2,126) 745

(3,700) 711

409

(196)

(1,771)

150

27

(1,381)

(2,989)

1,786 (5,033) (1,550) (712) -

232 (1,355) -

(1,515) -

(51) (221) (51) -

(7) -

2,018 (7,961) (1,771) (763) -

(342) (91) (28) 62

(5,509)

(1,123)

(1,515)

(323)

(7)

(8,477)

(399)

676 676

95 95

112 112

3 3

8 8

894 894

220 220

(2,097) 62,109 60,012

1,301 8,025 9,326

(787) 11,247 10,460

71 111 182

(110) 965 855

(1,622) 82,457 80,835

(318) 25,726 25,408

Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation (Increase) decrease in account receivable (Increase) decrease in inventories (Increase) decrease in prepaid expenditures (Increase) decrease in accrued interest income

(1,206)

740

1,874

(1)

(84)

1,323

2,091

3,448 (151) 1 38

1,079 (52) 1

457 26 5

213 4 (2) 1 (1)

51 (75) (2) -

5,248 (248) (4) 2 43

1,098 (3) (11) 44 19

(Decrease) increase in accounts payable (Decrease) increase in claims/bonds payable (Decrease) increase in deferred revenue (Decrease) increase in accrued benefits Net cash provided (used) by operating activities Non-cash investing, capital and financing activities Developer Contributions Capital Lease

$

147 50 2,327

$

754 3 2,525

$

39 (14) 2,387

$

11 18 (2) 241

$

8 (32) (4) (138)

$

959 (14) 33 7,342

$

(36) (339) (13) 2,850

$ $

386 -

$ $

96 -

$ $

84 -

$ $

-

$ $

-

$ $

566 -

$ $

41

36

$

$

35,580 79 (17,302) (1,551) (9,464) 7,342

Internal Service Funds

$ 3,894

The accompanying notes are an integral part of these financial statements.

$

Food Service

3,194 (451) (24) (332) 2,387

Transfers to other funds Transfers from other funds Net cash provided (used ) by non-capital financing activities Cash flows from capital & related financing activities Capital Contributions Purchase of capital assets Payment of capital lease Principal paid on capital debt Interest paid on capital debt Proceeds from sale of assets Net cash provided (used) by capital and related financing activities Cash flows from investing activities Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents January 1, 2010 Cash and cash equivalents December 31, 2010 Reconciliation of operating income (loss) to net cash provided (used) by operating activities:

$

Golf Course

Total Business Type Activities $

373 9,494 (3,201) (1,858) (1,958) 2,850


ARVADA, COLORADO

CITY OF 

FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET ASSETS December 31, 2010 (in thousands)

Defined Benefit Police Pension ASSETS Pooled cash & investments Local Government Investment Pool Accrued interest Accounts receivable Total assets

$

56 353 409

LIABILITIES Escrow payable Total liabilities

Agency Fund

$

4,111 8 1,865 5,984

5.984 5,984

-

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS

$

The accompanying notes are an integral part of these financial statements.

37

409

$

-


ARVADA, COLORADO

CITY OF 

FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS Year Ended December 31, 2010 (in thousands)

Defined Benefit Police Pension ADDITIONS Investment income

$

1

Total additions

1

DEDUCTIONS Benefits paid Total deductions

29 29

NET (DECREASE)

(28)

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS BEGINNING OF YEAR

$

437

END OF YEAR

$

409

The accompanying notes are an integral part of these financial statements.

38


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

TABLE OF CONTENTS 1.

Summary of Significant Accounting Policies A. Financial Reporting Entity........................................................................................... 41 Blended Component Units ................................................................................... 41 Discrete Component Units ..............................................................................41-42 B. Government-Wide and Fund Financial Statements ..............................................42-43 C. Financial Statement Presentation .........................................................................43-45 D. Assets, Liabilities and Equity 1. Deposits and Investments.................................................................................... 45 2. Receivables and Payables................................................................................... 46 3. Inventories and Prepaid Items ............................................................................. 46 4. Restricted Assets ................................................................................................. 46 5. Capital Assets .................................................................................................46-47 6. Compensated Absences...................................................................................... 47 7. Long-Term Obligations ........................................................................................ 47 8. Fund Equity .....................................................................................................47-48 9. Net Assets............................................................................................................ 48 10. Estimates ............................................................................................................. 48

2.

Stewardship, Compliance and Accountability A. Budgetary Information ................................................................................................ 48 B. Expenditures/Expenses in Excess of Appropriation................................................... 49 C. State Constitutional Amendment................................................................................ 49

3.

Detailed Notes on All Funds and Account Groups A. Deposits and Investments .....................................................................................50-53 B. Capital Assets........................................................................................................54-55 C. Construction Commitments ........................................................................................ 55 D. Interfund Transactions...........................................................................................55-56 E. Long-Term Debt Revenue Bonds...............................................................................................57-58 Capital Lease Obligations ...............................................................................58-61 Changes in General Long-Term Liabilities .......................................................... 61

39


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

4.

Other Information A. Risk Management....................................................................................................... 62 B. Commitments and Contingencies 1. Litigation............................................................................................................... 63 2. Federal Grants ..................................................................................................... 63 3. Commitments ....................................................................................................... 63 4. AURA Commitments .......................................................................................63-64 C. Conduit Debt Obligation ........................................................................................64-65 D. Retirement Commitments 1. Defined Benefit Police Pension Plan ................................................................... 65 2. City of Arvada Retirement Plan – Defined Contribution Plan .............................. 66 3. Defined Contribution Police Pension Plan ......................................................66-67 4. Executive Retirement Plan................................................................................... 67 E. OPEB .......................................................................................................................67-68 F. Prior Period Adjustments .............................................................................................. 69 G. Related Party Note ....................................................................................................... 69

40


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

1. Summary of Significant Accounting Policies This is a summary of significant accounting policies for the City of Arvada, Colorado presented to assist the reader in interpreting the financial statements and other data in this report. The policies are considered essential and should be read in conjunction with the accompanying financial statements. A. Financial Reporting Entity The City of Arvada is a political subdivision of the State of Colorado, located in Jefferson and Adams Counties in the Northwest quadrant of the greater Denver, Colorado, metropolitan area. The population of the City is approximately 108,539. The City, incorporated in 1904, provides general government; police services; water; sewer, stormwater; golf; the Arvada Center for the Arts and Humanities; park maintenance; food service; and various trust and agency functions in a fiduciary capacity. The City does not provide fire protection, public education, or solid waste services. An elected mayor and six-member council govern the City. As required by accounting principles generally accepted in the United States of America (US GAAP) these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. The discretely presented component units, on the other hand, are reported in separate columns in the government-wide statements to emphasize they are legally separate from the City. Each blended and discretely presented component unit has a December 31 year-end. Blended Component Units Arvada Housing Authority (Special Revenue Fund) – The Authority administers funds received for rent subsidy to low/moderate income households under Section 8 of the U.S. Housing Assistance Payment Program. The City provides all administrative support to the Authority. The Authority, a legally separate entity, is governed by a Board of Directors, which consists of all current members of the Arvada City Council. Separate audited financial statements for the Arvada Housing Authority are not prepared. Arvada Council of the Arts and Humanities (Arts Council) (Special Revenue Fund) – The Arts Council is a registered 501(c) 3 organization. Its role is to advise the Arvada City Council, provide guidance and support to the Arvada Center staff and act as an advocate for public support and funding for the Arvada Center. Separate audited financial statements for the Arts Council are not prepared. Discrete Component Units Arvada Urban Renewal Authority (AURA) – AURA is reported in a separate column as a discrete component unit presentation to emphasize that it is legally separate from the City. AURA was created by Ordinance No. 1717 under the Colorado Urban Renewal Law and was approved by the voters on March 3, 1981. Its purpose is to develop, redevelop or rehabilitate blighted areas of the City. AURA currently has five active project areas, Ralston Fields, JCMD, Village Commons, Olde Town Station and Northwest Arvada. The governing body of the Authority is a commission of seven members, appointed by the Mayor and approved by City Council for staggered terms of five years. AURA's annual budget must be approved by the City Council and the City provides administrative support to the Authority. 41


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

AURA is included in the City's financial statements due to the City's ability to appoint AURA's governing authority and approve the budget and its revisions. The City does not have any responsibilities to fund AURA operating deficiencies or deficits. Tax revenues are imposed and collected by the City. Separate audited financial statements for AURA may be obtained from the City. Arvada Economic Development Association (AEDA) – AEDA is reported in a separate column as a discrete component unit presentation to emphasize that it is legally separate from the City. AEDA financial statements consist of one governmental fund. AEDA was established to encourage and stimulate all forms of economic development, 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. AEDA is included in the City's financial statements due to the City's ability to appoint AEDA's governing board. Separate audited financial statements for AEDA are not available. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all the non-fiduciary activities of the City and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the City is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major enterprise funds are reported as separate columns in the fund financial statements. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and trust fund financial statements. Revenues are recorded when earned and expenses are recorded 42


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Government fund financial statements are reported using the current financial resources measurement focus and modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and judgments, are recorded only when payment is due. Taxes, franchise fees, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. Agency funds use the accrual basis of accounting. C. Financial Statement Presentation The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses as appropriate. The various funds are summarized by type within the financial statements. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. 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. The Arvada Center Fund accounts for all revenues and expenditures of the Arvada Center for the Arts and Humanities.

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. The General Capital Projects Fund accounts for all major capital projects of the City. Appropriations are not restricted to a fiscal year. Sources of revenue to this fund are transfers from contributions from the General and other funds, interest earned, transfers from Jefferson County Open Space funds and contributions by developers and government grants. 43


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

The Construction Fund accounts for proceeds from the Series 2005 COP Bond issue to be used for Stormwater drainage improvements, Water main line replacements, and an expansion of the Arvada Center for the Arts and Humanities and for the remaining proceeds from the 1999 Sales and Use Tax Bond issue. The City reports the following major proprietary funds: The Water Fund accounts for all activity within the scope of water utility operations. Water service is available within the City limits and is extended to some residents of the county and adjacent cities. All activities necessary to provide such service are accounted for in this fund, including administration, operations, capital water projects, maintenance, financing and related debt service, and billing and collection. The Wastewater Fund accounts for all activities necessary in the collection, transmission, and disposal of sewage and wastewater. It includes administration, operations, capital maintenance, financing and billing and collection. The Stormwater Fund accounts for all activities necessary to maintain a stormwater management plan. In includes administration, operations, capital maintenance and billing and collection. The Golf Course Fund accounts for all revenues and expenses of the Lake Arbor and West Woods Golf Courses, including food service operations. It includes administrative, operations, maintenance, financing and related debt service at Lake Arbor and West Woods Golf Courses. Food service activities include restaurant operations at the West Woods and Lake Arbor Golf Courses. The Food Service 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. Government and enterprise fund types that do not meet the criteria of major funds have been summarized and presented as other governmental funds and other enterprise funds, respectively within the fund financial statements. Additionally, the City reports the following fund types: Internal Service Funds are used to account for the City’s fleet and information technology replacement, risk management insurance program, printing services and building and fleet maintenance services. The City reports the following fiduciary funds: The Pension Trust Fund is used to account for the City’s defined benefit police pension trust to provide retirement benefits for one retiree that did not elect to join the new plan formed in 1986. Agency Fund is used to account for a variety of deposits from various sources held in escrow. All Governmental Accounting Standards Board (GASBs) pronouncements as well as all Financial Accounting Standards Board (FASBs) issued prior to November 30, 1989, are generally followed in the government-wide and proprietary fund financial statements, unless those pronouncements conflict or contradict guidance of GASB pronouncements. Governments have the option of following subsequent private-sector guidance for their business-type activities and enterprise 44


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

funds, subject to this same limitation. The City has elected not to follow subsequent privatesector guidance. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are the charges between the City’s enterprise operations and various other functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Operating expenses for enterprise and internal service funds include cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities and Equity 1) Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The City pools cash resources of most funds to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing securities and disclosed as part of the City's investments. Cash overdrafts from pooled cash and investments are reported as an interfund receivable/payable. Colorado statutes require that the City use an eligible public depository as defined by the Public Deposit Protection Act (PDPA). Under the Act, the depository is required to pledge a pool of eligible collateral having a market value at all times equal to at least 102% of the aggregate public deposits held by the depository not insured by Federal Depository Insurance. The pool for all the uninsured public deposits as a group is to be maintained by another institution or held in trust. Each institution designated as a public depository can be assessed a portion of the losses of a public entity's deposits in a failed public depository. Thus, all public deposits are fully collateralized. Eligible collateral as defined by the Act primarily includes obligations of, or guaranteed by, the U.S. Government, the State of Colorado or any subdivision thereof and obligations evidenced by notes received by first lien mortgages or deeds of trust on real property. Investments are reported at fair value. The fair value of the City’s investments is based upon values provided from quoted market prices.

45


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

2) Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds". On the Statement of Net Assets, residual balances between governmental and business type activities are reflected as internal balances. Receivables are shown net of an allowance for collectibles, where applicable. Property taxes attach an enforceable lien on the property as of January 1 and are levied of the following January 1. Taxes are payable the following year in one installment made on or before April 30, or in two installments made on or before February 28 and June 15. The assessments and collections are made by Jefferson County and Adams County and are remitted monthly to the City. City property tax revenues certified in December are recorded as a receivable and an offsetting deferred revenue. The City records non-current receivables for interfund and other long-term notes on the Statement of Net Assets of its Proprietary Fund Types. Within the governmental funds, all non-current receivables are fully offset by deferred revenue if the payment resulting in the receivable was originally recorded as an expenditure. Otherwise non-current receivables are fully offset by a reservation of fund balance. Non-current receivables and other long-term notes are shown on the statement of net assets of the government-wide statements. 3) Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method with the exception of the City's central supply inventory which is valued at average cost. The cost of inventories is recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both government-wide and fund financial statements. 4) Restricted Assets The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. Certain assets of the Community Development Block Grant special revenue fund are restricted because their use is completely restricted by grant agreements. Certain assets of the Arvada Center special revenue fund are restricted because their use is restricted by actor agreements. 5) Capital Assets Capital assets which include property, plant, equipment, and all infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements and in the Proprietary Funds in the fund financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years. Such assets are recorded at historical costs or estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair market value at the date of donation. 46


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Capital assets other than land and water rights are depreciated. Depreciation is computed using the straight-line method with estimated useful lives as follows: Assets Buildings Road system infrastructure Other improvements Other infrastructure Equipment Vehicles

Years 50 25 20 8-50 5-10 3-5

6) Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. No liability is reported for unpaid accumulated sick leave since benefits are not paid upon termination. Vacation pay is accrued when earned in the government-wide; proprietary and fiduciary fund financial statements. The compensated absences are only reported in governmental funds if they are due. Compensated absences of the governmental activities are expected to be liquidated primarily with revenues of the General Fund. 7) Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Debt premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the debt using the effective interest method. Debts payable are reported net of the applicable debt premium or discount. Debt issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize debt premiums and discounts, as well as debt issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 8) Fund Equity In the fund financial statements, fund equity of the City’s governmental funds are classified either as reserved or unreserved. Reserved fund balances indicates an amount of fund equity which is legally required to be segregated in accordance with legal and contractual provisions or not available as current financial resources. The unreserved fund equity represents the amount available for budgeting future operations. The unreserved portion may be further classified as either designated or undesignated. Designated unreserved fund balances represent amounts identified by management for future budgetary use of current resources. The General Fund designation is to balance the

47


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

2011 budget. Designations of fund balance represent tentative management plans that are subject to change. 9) Net Assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition or construction of improvements of those assets. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restriction imposed by creditors, grantors, laws, or regulations of other governments. In November, 1992, Colorado voters passed Article X, Section 20 to the State Constitution, described in Note 2B. The Amendment requires that a percentage of fiscal year spending, excluding bonded debt service, be legally restricted to be used for declared emergencies only. This amount is reflected on the government-wide statement of net assets as net assets – reserved for emergencies. The amendment requires a three percent emergency reserve at December 31, 1995 and thereafter. An emergency is defined in the Amendment as an event, which excludes economic conditions, revenue shortfalls, salary or fringe benefit increases. 10) Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. 2. Stewardship, Compliance and Accountability A. Budgetary Information Annual budgets are adopted on a basis consistent with US GAAP for all governmental funds except the capital projects fund, which adopts project-length budgets. All other annual appropriations lapse at fiscal year end. Proprietary Funds are budgeted on a non-GAAP basis due to the budgeting of capital outlay and not depreciation. Budgetary financial statements do not include the general Capital Projects Fund because the projects accounted for in that fund span multiple years. Budgets are also not adopted for the Fiduciary funds. Not less than sixty days prior to the first day of the next fiscal year, Council adopts the City budget by resolution and the annual appropriation by ordinance. The City prepares a combination line item and program budget, but the level of control is at the fund level which is the amount approved by ordinance. For budgetary, appropriation and reporting purposes, interfund transfers are considered to be revenues or expenditures. Both the adopted budget and the level of appropriation (by fund) can be amended during the budget year. This action requires Council approval in the form of a resolution for a budgetary amendment and by ordinance requiring a public hearing for an increase in appropriations. Intrafund budgetary transfers between departments within a fund can be accomplished with the approval of the Manager.

48


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

B. Expenditures/Expenses in Excess of Appropriation Expenditures exceeded appropriations in the Debt Service Fund by $311,945 and the Parks Fund by $2,565,000. C. State Constitutional Amendment On November 3, 1992, the voters of the State approved Article X, Section 20 to the State Constitution (the Amendment) limiting growth of public entities and their ability to borrow and tax. Enterprises, defined as government-owned businesses authorized to issue revenue bonds and receiving less than 10% of its annual revenue in grants from all state and local governments combined, are excluded from the provisions of the Amendment. The City's management is of the opinion that it’s Water, Wastewater, Stormwater and Food Service operations qualify for this exclusion. The initial revenue base is 1992 fiscal year spending. Future revenue limits are determined based upon the prior year's fiscal year spending adjusted for a growth factor based upon inflation and changes in the actual value of real property within its boundaries. Excluded revenues such as gifts and federal funds are not used to calculate the limit. Revenue in excess of the limit must be refunded unless the voters approve retention of such revenue. On November 5, 1996, the qualified electors of the City approved Resolution R-96-127, which reads as follows: Without creating any new tax or increasing any current taxes, shall the City of Arvada be permitted, in 1996 and each year thereafter, to retain and spend City revenues in excess of the spending, revenue raising, or other limits in Article X, Section 20 or the Colorado Constitution, utilizing such revenues for public safety, municipal services, transportation and other public improvements, parks and recreational facilities, and any other lawful public purpose?

The Amendment requires, with certain exceptions, voter approval prior to imposing new taxes, increasing a tax rate, imposing a mill levy that will produce property tax revenue in excess of the amount collected in the previous year adjusted by the growth factor, extending an expiring tax, or implementing a tax policy change which directly causes a net tax revenue gain. Except for bond refinancing at lower interest rates or adding employees to existing pension plans, the Amendment specifically prohibits the creation of multiple fiscal year debt or other financial obligations without voter approval and without irrevocably pledging present cash reserves for all future payments. The City believes it is in compliance with the requirements of the Amendment. However, due to the broad general terms of the Amendment, the City has been required to make certain interpretations of the Amendment's language in order to determine its compliance. Ultimately, the courts may be required to determine the appropriate interpretations of the Amendment's terms and provisions.

49


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

3. Detailed Notes on Funds and Account Balances A. Deposits and Investments As of December 31, 2010, the City's cash deposits had a carrying value of $28,089,672. The bank balances were $29,774,547 of which $1,086,337 was covered by federal deposit insurance and $28,688,210 was collateralized with securities held by the pledging financial institution’s trust department or agent in the City’s name. Investment policies are governed by the City’s investment policies and procedures and State Statutes. Investments of the City and AEDA may include: • •

• • •

Local government investment pools authorized under the laws of the State of Colorado whose investment policy closely mirrors that of the City. Direct obligations of the United State government, including such instruments as Treasury Bills, Treasury Notes, Treasury Bonds, Export Import Bank issues, Farmers Home Administration Insured Notes, certain scaled discount notes, and certain relatively short-term securities issued by the Government National Mortgage Association. Obligations of certain U.S. Government agencies, including but not limited to such instruments as Federal Home Loan Bank debt, Federal National Mortgage Association debt, certain scaled discount notes, and/or certain short-term Federal Farm Credit debt. Purchases of the direct or agency securities mentioned above, under the terms of a repurchase agreement or in support of a City “Sweep Account” which meet the City’s procedures for the delivery, possession and safekeeping of investment securities. Repurchase agreements Commercial paper and certificates of deposits AAA-rated money market funds

Investments of the employee pension plans are determined contractually with the third-party custodian. The plans currently contain a wide range of money market and mutual funds and are not subject to the City’s investment policies. Interest Rate Risk The City’s investment policy does not specifically address Interest Rate Risk. The State Statutes requires 3 or 5 years depending on the investment. In practice, the City does not purchase any investments with a maturity of longer than 5 years with all “money market instruments” having a maturity of one year or less. The City assumes its investments will be held to maturity and callable investments may or may not be called. Credit Risk The City’s general investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. The State Statutes specify rating requirements depending on the investment. All corporate bonds have AA or higher ratings. Concentration of Credit Risk As a means of limiting its exposure, the City’s total investment in any specific money market or mutual fund shall not exceed 10% of the total assets of such fund class. At December 31, 50


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

2010, the City's investments in the FHLB, FHLMC, FNMA, and FFCB are 18.83%, 8.13%, 8.08% and 12.5% of total investments, respectively. Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. The City’s investment policy requires commercial banks and savings and loan associations to be eligible public depositories within the meaning of the Colorado Revised Statues of PDPA and S&L PDPA. The depositories will also have to posses overall financial strength, capitalization and liquidity to ensure the safety and availability of such monies. The assessment of this overall financial strength will be rated by the Prudent Man Analysis, Inc (PMA). Inasmuch as PMA utilizes overall rating of 1 through 5, (1 being strongest….5 being weakest), the City’s policy is to seek commercial banks with an overall PMA rating of 1 or 2. In the event that Prudent Man Analysis (PMA) services are not available, then the City may, upon written approval from the City manager or his/her designee, utilize other third-party agencies. Local Government Investment Pool At December 31, 2010, the City had invested in both the Colorado Local Government Liquid Asset Trust (Colotrust) and the Colorado Surplus Asset Fund Trust (CSAFE). These investment vehicles were established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces the requirements of creating and operating these pools. Their operation is similar to a money market fund with each share equal in value to $1.00. Investments of these entities are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian's internal records identify the investments owned by the participating governments. Cash and Investments reported on the financial statements as of December 31, 2010: Cash and Investments Restricted Cash Cash with fiscal agent

$ 206,311 1,746 25

Total per Statement of Net Assets

$ 208,082

Agency Fund Police Pension Defined Benefit

4,111 409

Total Financial Statement Cash & Investments

Carrying value of cash Fair market value of investments

$ 212,602

28,090 184,512

Total value cash and investments

$ 212,602

51


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

AURA Investment Policy Investments The Authority is required to comply with State statutes which specify instruments meeting defined rating, maturity, and concentration risk criteria in which units of local government may invest. In addition, the Authority has an investment policy in which seeks to ensure the preservation of capital in the overall portfolio. Per the Authority’s investment policy, funds of the Authority may be invested in: • U.S. Treasury Securities. • Obligations of the U.S. Government agencies (including FDIC and FSLIC insured transactions up to $100,000). • Certificates of deposit and other evidences of deposit or investment at banks, savings and loan associations and other state or federally regulated financial institutions subject to PDPA (5%) and a minimum net worth of any bank of $10,000,000 and a minimum net worth of any savings and loan association of $15,000,000. • Repurchase agreements made in compliance with Revised Colorado State Statute 2436-113. Repurchase collateral will be perfected and delivered to the Trustee. Repurchase agreements must be collateralized at a minimum of 100% of the purchase price of the repurchase agreement and market-to-market on a weekly basis. All repurchase agreements shall be evidenced by a master repurchase agreement between the Authority and securities dealer. • Money market funds. Investments with any financial institutions which have appeared in any published watch list during a 12-month period preceding the investment date in an amount greater than $100,000 is specifically prohibited. The Authority's investment policy follows State statutes, but places additional limits on investment maturities and custodial credit risk. Interest Rate Risk – The Authority's investment policy limits the maturity of investment instruments or fixed-income securities to a maximum of three years except for reserve funds which are invested subject to agreements tailored to bond indentures, when applicable. Investments in the Dreyfus Government Cash Management money market fund of $725,337 have a weighted average maturity of less than one year. Credit Risk – State statutes limit investments in money market funds to those that maintain a constant share price, with a maximum remaining maturity in accordance with Rule 2a-7, and either have assets of one billion dollars or the highest rating issued by a nationally recognized organization that regularly rates such obligations. At December 31, 2010, the Authority's investment in the Dreyfus Government Cash Management money market fund of $725,337 was rated AAA Moody’s. Custodial Credit Risk – The Authority's investment policy requires that investments be placed with two or more financial institutions and in such amounts or proportions of total investments or assets as may be reasonable and prudent. Concentration of Credit Risk – State statutes generally do not limit the amount the Authority may invest in one issuer.

52


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

As of December 31, 2010, the City had the following investments and maturities:

Asset Category Local Government Investment Pool Trust Funds

Credit Quality

AAA

U.S. Treasuries U.S. Agencies FHLB FHLMC FNMA FFCB

AAA AAA AAA AAA

Subtotal for U.S. Agencies

Corporate Bonds Subtotal for Corporate Bonds

Total for all Asset Categories

AAA AA

Fair Value

Investment Maturities >1 yr >2 yrs >3 yrs and and and <= 2 yrs. <= 3 yrs. <= 4 yrs.

<= 1 year

>4 yrs and <= 5 yrs.

61,987,509

61,987,509

-

-

-

-

7,155,960

-

-

5,067,200

2,088,760

-

34,739,570 15,005,450 14,917,250 23,057,370

2,077,660 5,006,250

3,175,920

17,821,720 4,975,250 14,875,200

9,868,600 9,986,750 5,109,250 -

4,971,590 5,018,700 4,832,750 -

87,719,640

7,083,910

3,175,920

37,672,170

24,964,600

14,823,040

18,395,000 9,254,010 27,649,010

5,124,750 6,095,940 11,220,690

13,270,250 3,158,070 16,428,320

-

-

-

184,512,119

80,292,109 19,604,240 42,739,370 27,053,360 14,823,040 43.52% 10.62% 23.16% 14.67% 8.03%

As of December 31, 2010 AURA’s cash deposits had carrying values of $1,105,269. The bank balances were $1,111,381 of which $428,519 was covered by the federal deposit insurance and $682,862 was collateralized with securities held by the pledging financial institution’s trust department or agent in AURA’s name. As of December 31, 2010 AEDA’s cash deposits had carrying values of $656,122. The bank balances were $656,122 of which $345,300 was covered by the federal deposit insurance and $310,822 was collateralized with securities held by the pledging financial institution’s trust department or agent in AEDA’s name A summary of changes in capital asset activity for the year ended December 31, 2010 follows (in thousands):

53


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

B. Capital Assets Balance January 1, 2010 Primary Government: Governmental activities Capital assets not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements other than buildings Equipment & Vehicles Infrastructure Total capital assets being depreciated

$

Less accumulated depreciation for: Buildings Improvements other than buildings Equipment & Vehicles Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net

$

49,026 27,109 76,135

$

$

9,279 9,279

(251) (251)

(569) (632)

(14,122) (12,844) (16,751) (229,962) (273,679)

(913) (1,379) (1,239) (7,382) (10,913)

63 9 509 581

191,096

(9,893)

(51)

267,231

26,374 7,695 6,986 41,055

$

(614)

Additions

$

856 2,637 3,493

14,638 229,454 3,077 843 248,012

4,922 113 5,035

Less accumulated depreciation for: Buildings Improvements other than buildings Equipment & Vehicles Infrastructure Total accumulated depreciation

(6,696) (64,360) (1,407) (33) (72,496)

(296) (4,599) (326) (27) (5,248)

Total capital assets, being depreciated, net

175,516 $

$

400 620 1,020

Capital assets, being depreciated: Buildings Improvements other than buildings Equipment & Vehicles Infrastructure Total capital assets being depreciated

Business-type activities capital assets, net

Retirements

34,011 38,541 23,255 368,968 464,775

Balance January 1, 2010 Business-type activities Capital assets not being depreciated: Water rights Land Construction in progress Total capital assets, not being depreciated

Additions

216,571

54

3,280

Balance December 31, 2010

$

$

(63)

$

(302)

Retirements

$

-

-

-

207,272 $

266,315

Transfers To (From) CIP

Balance December 31, 2010

$

$

(8,899) (8,899)

2,898

-

(6,992) (68,280) (1,704) (60) (77,036)

8,899 $

-

27,230 7,695 724 35,649

14,638 236,269 3,161 6,844 260,912

6,001 8,899

(326) (326)

(14,972) (14,214) (17,481) (237,344) (284,011)

26,120 $

51,527 7,516 59,043 33,948 63,775 23,306 370,254 491,283

1,286 26,120

679 29 708

$

2,501 (28,621) (26,120) 24,834

(1,005) (29) (1,034)

(213) $

Transfers To (From) CIP

183,876 $

219,525


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

Depreciation expense was charged to functions/programs of the primary government as follows (in thousands): Governmental Business-Type Activities Activities General government $1,534 $ Public safety – police & judicial 90 Public works 37 Parks 7,782 Culture 364 Human Services 8 Internal Service 1,098 Water 3,448 Wastewater 1,079 Stormwater 457 Golf 213 51 Food $ 5,248 Total depreciation expense $ 10,913 C. Construction Commitments The City has active construction projects as of December 31, 2010. The projects include street construction, parks construction water, and wastewater system projects. At year end the City’s commitments with contractors are as follows (in thousands): Remaining Commitment $ 209 526 614 381 $ 1,730

Project Spent-to-Date $ 1,941 1,459 1,242 4,612 $ 9,254

Street construction Water construction Wastewater construction Parks construction Total D. Interfund Transactions

There was one due from and one due to balance as of December 31, 2010. The Arvada Housing Authority owes the General Fund $37,298 for expenditures paid on its behalf.

Transfers to/from other funds for the year ended December 31, 2010 were as follows (in thousands): Fund

Transfers In

General Fund Community Development Fund Arvada Center Parks Capital Projects Fund Construction Fund Non-major Governmental Funds Water Fund Wastewater Fund

55

$

45 3,940 3,110 24,770 1,752 500 63

Transfers Out $ 23,039 809 3,728 705 570 396 91 259


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

Stormwater Fund Golf Course Fund Food Service Fund Internal Service Funds Total

1 154 27 711

1,772 4 3,700

$35,073

$35,073

The General Fund transfers out include support transfers to the Arvada Center, Parks, Community Development, Golf Course and Food Service Funds, a capital transfer to the Capital Projects Fund, debt transfers to the Bond and COP Funds and the Building Fund for energy payments. The Community Development Fund transfer in is from the General Fund to meet operations and the transfer out is to the Housing Fund to offset administrative costs. The Arvada Center Fund transfer in is from the General Fund to meet operations. The Parks Fund transfer in is from the General Fund to meet operations. The transfer out is a capital transfer to the Capital Projects Fund. The Capital Projects Fund transfers in are for current and future capital projects. This year the General, Vehicles, Construction, Grants, Community Development, Insurance, Water and Stormwater Funds made transfers into the Capital Projects Fund. The Construction Fund transfer out is to the Capital Projects Fund for a future capital project. The Water Fund transfers out are to the Stormwater Fund for operations, the Capital Projects Fund for a non-enterprise asset and to the Central Services Fund for energy payments. The transfers in are from the Wastewater and Parks Funds for overhead. The Wastewater Fund transfer in is from the Stormwater Fund for overhead. The transfers out are to the Water Fund for overhead and the Building Fund for energy payments. The Stormwater Fund transfers out are to the Wastewater Fund for overhead, the Capital Projects Fund for a non-enterprise asset and the Bond Fund for payment of debt. The Golf Course Fund transfers in are from the General Fund to meet operations and capital projects. The transfers out are to the Building Fund for energy payments. The Food Service Fund transfer in is from the General Fund to meet operations. The Internal Service Funds transfers in are for the purchase of new vehicles and energy lease payments. The transfers out are one-time transfers from the Insurance Fund and the Vehicle Fund into the Capital Projects Fund.

56


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

E. Long-term Debt Revenue Bonds Governmental Activities Series 2009 Sales and Use Tax Refunding Revenue Bonds On May 20, 2009 the City advance refunded $12,975,000 and $8,250,000 of 1998 and 1999 Sales and Use Tax Refunding Revenue Bonds, respectively, with an issuance of $19,885,000 of Sales and Use Tax Refunding Bonds dated July 1, 2009, with interest rates varying from 2.5% to 4.0% payable semi-annually on June 1 and December 1. The bonds mature beginning in 2009 and continue through 2018. The bonds were issued for the purpose of advance refunding a portion of the City’s 1998 and 1999 Sales and Use Tax Revenue Refunding Bonds in order to realize interest savings. Bonds outstanding and related interest requirements as of December 31, 2010, are as follows (in thousands): Year Ending December 31 2011 2012 2013 2014 2015 2016-2018

Principal 1,775 1,830 1,890 1,935 1,990 8,035

Interest 553 499 435 388 340 653

Total 2,328 2,329 2,325 2,323 2,330 8,688

Total

$ 17,455

$ 2,868

$20,323

Series 2003 Sales and Use Tax Refunding Revenue Bonds On July 16, 2003, the City advance refunded $16,350,000 of the Series 1992 Sales and Use Tax Refunding and Improvement Revenue Bonds by the issuance of $16,955,000 of Sales and Use Tax Refunding Revenue Bonds dated July 1, 2003 with interest rates ranging from 2.0% to 4.0% payable semi-annually. The bonds mature beginning in 2005 and continue through 2017. Bonds outstanding and related interest requirements as of December 31, 2010, are as follows (in thousands): Year Ending December 31 2011 2012 2013 2014 2015 2016-2017

Principal 1,325 1,370 1,420 1,465 1,520 3,220

Interest 378 335 289 239 186 195

Total 1,703 1,705 1,709 1,704 1,706 3,415

Total

$10,320

$ 1,622

$11,942

The 2003 and 2009 Sales and Use Tax Refunding Revenue Bonds are payable solely from the City’s 3% sales tax. The sales and use tax revenues allocated for repayment of these

57


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

bonds is deposited separately into the Debt Fund. During the year ended December 31, 2010, revenues of $43,678,000 were available to pay annual debt service of $4,032,381. Business-type Activities Series 2009 Water Enterprise Revenue Refunding Bonds On April 24, 2009 the City currently refunded $22,615,000 of 2001 Variable Rate Demand Water Enterprise Bonds, with the issuance of $21,745,000 of Water Enterprise Revenue Refunding bonds dated May 1, 2009 with interest ranging from 2.0% to 5.0% payable semiannually on May 1 and November 1. The bonds mature beginning in 2009 and continue through 2020. Annual debt service requirements for the outstanding bond at December 31, 2010, are as follows (in thousands):

Year Ending December 31 2011 2012 2013 2014 2015 2016-2020

Principal 1,630 1,680 1,730 1,760 1,805 10,050

Interest 635 586 535 501 457 1,258

Total 2,265 2,266 2,265 2,261 2,262 11,308

Total

$18,655

$3,972

$22,627

Series 2005 Certificates of Participation In July 27, 2005 the City issued Certificates of Participation in the amount of $18,505,000. The Certificates were dated July 1, 2005, with interest rates ranging from 2.75% to 4.35% payable semi-annually. The lease payments mature beginning in 2006 and continue through 2024. Year Ending December 31 2011 2012 2013 2014 2015 2026-2020 2021-2024

Principal 820 845 880 910 945 5,300 5,055

Interest 580 554 520 489 456 1,696 537

Total

$ 14,755

$ 4,832

Total 1,400 1,399 1,400 1,399 1,401 6,996 5,592 $ 19,587

Capital Lease Obligations Governmental Activities In 2010, the City entered into a lease agreement for $40,460 for a 5-year period for the purchase of a printing press. The interest rate is 7.93%. Payments of both principal and interest are due monthly. Minimum required lease payments are as follows as of December 31, 2010 (in thousands): 58


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

Year Ending December 31 2011

10

2012

10

2013

10

2014

10

2015

3

Total

$

43

Less amounts representing interest Present value of lease payments

(7) $ 36

In 2007, the City entered into a lease agreement for $13,363 for a 5-year period for the purchase of three utility vehicles. The interest rate is 4.75%. Payments of both principal and interest are due annually. Minimum required lease payments are as follows as of December 31, 2010 (in thousands): Year Ending December 31 2011

3

Total

$

Less amounts representing interest Present value of lease payments

3 (1)

$

2

In 2004, the city entered into a lease agreement for $1,005,093 for a 13-year period for an energy efficiency project. The interest rate is 3.99%. Payments for both principal and interest are due monthly in 2005 and quarterly thereafter. Minimum required lease payments are as follows as of December 31, 2010 (in thousands): Year Ending December 31 2011

112

2012

113

2013

114

2014

115

2015

116

2016

101

Total

$671

Less amounts representing interest Present value of lease payments

(76) $595

In 1996, the City entered into a capital lease obligation for the expansion of West Woods Golf Course for $2,980,200. The commitment will be paid over a 15-year period in semi-annual installments. Under the ground lease, the City leases certain land used for the new nine-hole golf course. Until 2009, this lease was paid out of the Golf Course Fund through user fees

59


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

and therefore was a liability of this fund. In 2009, the General Fund took over this liability from the Golf Course Fund and will continue to make the payments until the lease is paid off. Minimum required lease payments are as follows as of December 31, 2010 (in thousands): Year Ending December 31 2011

155

Total

$155

Less amounts representing interest Present value of lease payments

(5) $150

The total value of the governmental assets capitalized related to the capital leases net of related depreciation is $3,870,237. Business-type Activities In 2007, the City entered into a lease agreement for $481,315 for a 5-year period for the purchase of 175 golf carts. The interest rate is 4.75%. Payments of both principal and interest are due annually. Minimum required lease payments are as follows as of December 31, 2010 (in thousands): Year Ending December 31 2011

113

Total

$ 113

Less amounts representing interest Present value of lease payments

(15) $ 98

In 2006, the City entered into a lease agreement in the amount of $1,303,000 for a 10-year period for the replacement of the Lake Arbor Golf course irrigation system. The interest rate is 5.94%. Payments of both principal and interest are due semi-annually in January and July. Minimum required lease payments are as follows as of December 31, 2010 (in thousands): Year Ending December 31 2011

158

2012

158

2013

158

2014

158

2015

158

2016

79

Total

$869

Less amounts representing interest Present value of lease payments

60

(92) $ 777


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

The total value of the business-type assets capitalized related to the capital leases net of related depreciation is $1,347,884.

Changes in General Long-Term Liabilities – During the year ended December 31, 2010 the following changes occurred in liabilities reported in the governmental activities (including internal service funds), business type activities, and component units (in thousands):

Governmental Activities Revenue Bonds Bond Premium Certificates of Participation Capital Lease OPEB Compensated Absences Total Governmental

Balance Additions Reductions Balance 01/01/2010 12/31/2010 $ 30,770 $ - $ 2,995 $ 27,775 $ 907 102 805 15,550 795 14,755 1,121 40 378 783 679 515 53 1,141 4,025 2,176 2,144 4,057 $ 53,052 $ 2,731 $ 6,467 $ 49,316 $

Due in 1 year 3,100 102 820 249 2,029 6,300

Business Type Activities Revenue Bonds Bond Premium Capital Lease Compensated Absences Total Business Type

Balance Additions Principal Balance 01/01/2010 12/31/2010 $ 20,205 $ - $ 1,550 $ 18,655 $ 1,145 104 1,041 1,093 218 875 627 390 356 661 $ 23,070 $ 390 $ 2,228 $ 21,232 $

Due in 1 year 1,630 104 228 330 2,292

61


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

4. Other Information A. Risk Management The City has established a risk management program for much of its insurance needs. It is self insured for occurrences of general liability and auto liability claims, which are subject to the Colorado Governmental Immunity Act which caps recoveries at $150,000 per person and $600,000 per accident. Property damage is subject to a $100,000 deductible and liability insurance a $250,000 deductible. The Workers’ Compensation program maintains a self-insured retention (SIR) limit of $350,000. There have been no settlements which exceed the Governmental Immunity Caps for general or auto liability in the last three years. No loss has been recorded in the last three years for the property program that exceeds the $100,000 deductible. Additionally, no claim or settlement in workers’ compensation has exceeded the SIR in the last three years. Premiums are paid by each department into the Insurance Fund (internal service) to pay claims, claim reserves and administrative costs of the program including premiums to commercial insurance companies for losses in excess of the self-insured amounts. The City also provides dental insurance for employees. Dental claims are limited to $1,000/year per person. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors. The liability for claims and judgments is recorded in the internal service funds. Changes in the balances of claims liabilities during the past two years are as follows (in thousands): Insurance Service Unpaid Claims, January 1, 2009

$1,814

Incurred Claims

1,375

Claim Payments

1,129

Unpaid Claims, December 31, 2009

2,060

Incurred Claims

450

Claim Payments

789

Unpaid Claims, December 31, 2010

$1,721

62


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

B.

Commitments and Contingencies

1) Litigation The City is involved in pending litigation. The City anticipates no potential claims resulting from these cases which would materially affect the financial statements of the City. 2) Federal Grants Federal grants are subject to audit which could result in disallowed costs, the amount which is undeterminable at December 31, 2010. If any costs are disallowed in the future, the City expects them to be insignificant. 3) Commitments th In October of 1997 and as amended in November of 2000, the City and DHI-64 & Indiana entered into a sales tax incentive agreement. This agreement was for $2,901,246 and will have approximately $1,686,010 remaining at the end of 2010 after paying $83,295 in principal. The City is obligated to pay this balance off at a rate of 28% of all city sales tax generated by the area. This commitment will last until May 2013 or until paid off, whichever is sooner.

4) AURA Commitment Developer Agreements The Authority receives incremental property taxes within the Ralston Fields area, as discussed in Note 1. In addition, a public improvement corporation (PIC) collects public improvement fees (PIF) within the area in substitution of a sales tax. In 2004, the Authority entered into a cooperation agreement among the following parties: • Ridge Venture LLC (the Developer), • Retail Sales Operation, • Kipling Ridge Metropolitan District (the District), and • The City. The purpose of this agreement is to accomplish the purposes of the Ralston Fields Urban Renewal Plan (the Plan). In this agreement, a portion of the incremental property tax revenues collected by the Authority and a portion of the PIF collected by the PIC are allocated to the City, the District, and the Retail Sales Operation, as follows: • The City: The Authority is to pay the City $100,000 a year for a continuing period of 18 consecutive years, which is passed through to the City of Wheat Ridge. This payment is for charges for municipal services incurred by the City of Wheat Ridge for property adjacent to the Ralston Fields Urban Renewal Area (the Area) arising from or out of the development activities that are necessary to implement the purposes of the Plan. • The retail Sales Operation: The Authority and the PIC are to remit 25% of property taxes and PIF, respectively, derived from the Retail Sales Operation back to the Retail Sales Operation up to a maximum of $3 million. The agreement allows the Authority and the PIC to pay a maximum $500,000 per year until 2014 or when the $3 million is reached, whichever is earlier (Retail Sales Operation Reimbursement Period). As of December 31, 2010, $1,945,867 of the $3 million had been paid to the Retail Sales Operation.

63


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

• The District: The Authority and the PIC are to remit to the District 60% of all property tax and PIF from the Area, excluding taxes derived from the Retail Sales Operation. Additionally, the Authority is to remit to the District another 45% of all sales and property tax revenue derived from the Retail Sales Operation up to the end of the Retail Sales Operation Reimbursement Period. After the Retail Sales Operation Reimbursement Period has expired, the Authority will remit to the District 60% of all property tax and PIF from the Area, inclusive of taxes derived from the Retail Sales Operation. Upon the earlier of (a) payment in full of the District’s outstanding bonds (bonds outstanding as of December 31, 2010, or $1,297,500) or (b) September 30, 2028, the Authority’s obligations to the District will terminate. As of December 31, 2010, $1,305,790 had been paid to the district. Additionally, 100% of the ad valorem tax on real and personal property attributable to the District Mill Levy actually received by AURA shall be remitted to the District. Total amount remitted to the District related to the District Mill Levy during the year ended December 31, 2010 was $94,467. The District Mill Levy remitted by AURA to the District shall not be included in the totals of Property Tax payments as noted above. On April 4, 2005, the Authority also entered into a Master Redevelopment Agreement with the Jefferson Center Metropolitan District No. 1 (JCMD No. 1) and the City. This agreement, and the obligations associated with this agreement, were assigned and assumed by Jefferson Center Metropolitan District No. 2 (JCMD) effective retroactively to April 4, 2005. On January 11, 2010 this agreement was Amended and Restated. The amended and restated agreement states that JCMD will bear the costs and expenses incurred in connection with the establishment of the Jefferson Center and Northwest Arvada Urban Renewal Areas and adoption of the Jefferson Center and Northwest Arvada Urban Renewal Plans. The Authority, subject to the terms and conditions set forth in the Amended and Restated Master Redevelopment Plan Agreement, is obligated to remit to JCMD and JCMD No. 1 the pledged revenues for use in financing project costs and any reimbursable expenditures in accordance with the agreement. Pledged revenues are equal to the total amount of incremental property and sales taxes received by the Authority which are available for payment to JCMD and reduced by the administrative fees of $150,000. Additionally, any City Property Tax Increment collected by the county and remitted to the Authority shall be utilized by the Authority in furtherance of urban renewal plans. With respect to the Jefferson Center Urban Renewal Plan, the Authority’s obligations under this agreement will terminate upon the earlier of (a) the payment in full of all JCMD obligations (bonds outstanding as of December 31, 2010, of $38,800,000), or (b) the date th that is the 25 anniversary of the date of adoption of the Jefferson Center Urban Renewal Plan. With respect to the Northwest Arvada Urban Renewal Plan, the Authority’s obligations under this agreement will terminate upon the earlier of (a) the date payment is made in full of all JCMD obligations (bonds outstanding as of December 31, 2010, of $38,800,000), supported by Northwest Area Property Taxes or to which Northwest Area Property Taxes are pledged, or (b) the date that is the 25th anniversary of the date of adoption of the Jefferson Center Urban Renewal Plan. The agreement is expected to terminate in 2034. The Northwest Area Urban Renewal Area did not receive any tax revenue during the year ended December 31, 2010, as the area was established at the end of 2009. C. Conduit Debt Obligation From time to time, the City has issued Industrial/Mortgage Revenue Bonds, Mortgage Credit Certificates and Private Activity Bonds. Industrial Bonds are issued to provide financial assistance to private-sector entities for the acquisition and construction of industrial and 64


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

commercial facilities. Mortgage Bonds are issued to provide financial assistance to low and moderate income persons and families in the purchase of a home. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of such property transfers to the person/family served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2010, there was 1 Industrial Revenue Bond, 1,002 single and multi-family Mortgage Bonds, 96 Mortgage Credit Certificates and 1 Private Activity Bond. The unpaid balance on the Industrial Revenue Bond is $3.5 million and on the Mortgage Bonds is $35.2 million. The unpaid balance on the Mortgage Credit Certificates is $7.8 million and on the Private Activity Bond is $25.5 million. D. Retirement Commitments The City has adopted separate retirement or pension plans (Plans) covering all employees, except those hired on a temporary basis. Although it has not expressed any intention to do so, the City has the right under the Plans to discontinue its contribution or to terminate the Plans. Should the Plans terminate at some future time, their net assets will be used to provide participants' benefits. Upon such termination, the assets of the Plans are to be allocated for the benefit of each participant and the beneficiary in a manner approved by the Internal Revenue Service. 1) Defined Benefit Police Pension Plan The City has a single employer-defined benefit plan to cover the uniformed police officers that did not elect to participate in the Defined Contribution Police Pension Plan that became effective January 1, 1986. In 1986, single premium group annuities were purchased for the benefit of retired employees, beneficiaries and terminated vested employees. After January 1, 1986, all new uniformed police officers are participants in the Defined Contribution Police Pension Plan. One fully vested participant remains in the Defined Benefit Plan as of December 31, 2010. The participant began receiving retirement benefits in 1997, as defined by City ordinance. Contribution requirements of the plan were not actuarially determined and an actuary was not used to determine the actuarial implications. The Pension Board commissioned an actuarial valuation of the plan in the summer of 2006. The valuation determined that the assets of the plan, $558,000, exceeded the present value of the retirement obligation of $480,000 to the participating member at that time. As of December 31, 2010, the net assets held in trust were $409,000. No contributions have been made by the participant or the City for the years ended December 31, 2010, 2009 and 2008.

65


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

2) City of Arvada Retirement Plan – Defined Contribution Plan Effective January 1, 1993, all eligible City employees participate in the City of Arvada Retirement Plan (CARP), a defined contribution plan. All City full-time and part-time employees, except uniformed police officers, the City Manager, and his staff, the City Attorney and Department Heads who elect to participate in the Executive Retirement Plan, are eligible to participate in CARP. 499 employees were participants in the plan as of December 31, 2010. Employer contributions vest with the employee according to the following: Years of Service Less than 1 year 1 year 2 years 3 years 4 years 5 or more years

Vesting Percentage 0% 20% 40% 60% 80% 100%

The plan requires covered employees to contribute 8% of their salary to the plan and the City to contribute 10% of the compensation of all participants hired after April 2, 2004. Employees hired on or before April 2, 2004 had a choice of receiving a flat rate 10% contribution or receiving an age weighted, graduated retirement contribution up to a minimum of 15%. The maximum permissible contribution is the lesser of $49,000 or 100% of the participant's earnings for the plan year. Benefit payments are based upon the participant account balance as of the valuation date immediately preceding the date of distribution. The participant may elect to receive distribution in a lump sum; substantially equal annual, semi-annual, quarterly or monthly installments; through the purchase of an immediate or deferred single payment, nontransferable annuity contract; or a combination of the above. Plan provisions and contribution requirements are established and may be amended by City Council. The required City contribution of $3,684,027 and the required employee contributions of $2,383,779 were paid during 2010. Additional employee contributions of $866,978 were also made in 2010. The required contributions represent 12.36% and 8% of total covered payroll, respectively. The plan investments are maintained and administered by Great-West Retirement Services. 3) Defined Contribution Police Pension Plan The City provides pension benefits for all of its uniformed officers not covered in the Defined Benefit Police Pension Plan through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Participants are eligible to participate from the date of employment. The Plan requires that the City and the participant each contribute 10% of the participant's compensation. Participants are fully vested after five years of continuous service. City contributions for, and interest forfeited by, employees who leave employment before five years of service are used to reduce the Plan's expenses. Plan provisions and contribution requirements are established and may be amended by City Council.

66


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

150 employees were participants as of December 31, 2010. The required contributions for the City and PMPP employees amounted to $1,190,207 each (10% of covered payroll). The plan allows voluntary and roll over contributions by employees. The plan investments are maintained and administered by Fidelity Investments. 4) Executive Retirement Plan The City provides pension benefits for the City Manager, his staff and the City Attorney through a separate defined contribution plan. The plans are administered by Great-West Retirement Services. Qualified employees are eligible to participate from the date of employment. Under the plan, the City contributes an amount equal to 10.2% of the participant's base salary. The employees covered by this plan were required to make a 8% contribution in 2010. Employees covered under this Plan are vested upon date of hire. Employees who leave employment with the City are entitled to all contributions and interest earnings. Plan provisions and contribution requirements are established and may be amended by City Council. For the year ended December 31, 2010 the City contributed $194,017 for the benefit of the 13 participants in the Plan and the employees contributed $147,795.

E. Post-Employment Benefits Other than Pensions The City adopted the standards of Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions (GASB Statement No. 45), for the year ended December 31, 2008, on a prospective basis. Plan Description – The City has established a single employer-defined benefit post-employment healthcare plan. Employees with at least 20 years of service with the City, or 5 years of service with the City plus 59 years of age, are eligible to receive health insurance benefits after retirement. The retiree pays 100% of the health care premium. These benefits expire when the retiree reaches the age of 65. The authority to establish and amend benefit provisions rests with the City Council. The City does not issue a stand-alone financial report for the plan. Funding Policy – The contribution requirements of plan members and the City are established and may be amended by the City Council. The required contribution is based on projected payas-you-go financing requirements. For the year ended December 31, 2010, the City made $52,960 in contributions to the plan. Plan members are required to contribute their share of the premiums. Annual OPEB Cost and Net OPEB Obligation – The City’s annual other post-employment benefit (OPEB) cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period of thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation to the plan.

67


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB Obligation, Beginning Net OPEB Obligation, Ending

$

512,654 27,876 25,656 514,874 52,960 461,914 679,288 $ 1,141,202

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the year ended December 31, 2010, follows.

Year Ended 12/31/10 12/31/09 12/31/08

Annual OPEB Cost $ 514,874 $ 513,954 $ 510,644

Percentage of Annual OPEB Cost Contributed 10.3 % 27.5 % 27.4 %

Net OPEB Obligation $ 1,141,202 $ 679,288 $ 370,585

Funded Status and Funding Progress – At January 1, 2010, the most recent actuarial valuation date, the actuarial accrued liability (AAL) was $ 5,118,413 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $ 43,239,463 million, and the ratio of the unfunded actuarial accrued liability (UAAL) to the covered payroll was 11.8%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. These assumptions include among others, annual rates of payroll increases, healthcare cost trends, and mortality rates. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents trend information about the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions – Projections of benefits for financial reporting purposes are based on the substantive plan as understood by the City and plan members, and are based on the types of benefits provided at the time of each valuation and the historical pattern of sharing of the benefit costs between the City and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the longterm perspective of the calculations. Significant methods and assumptions included the following: • • • • • • • • •

Actuarial Valuation Date – January 1, 2010 Actuarial Cost Method – Projected Unit Credit Amortization Method – Level Percentage of Pay, Open Inflation Rate – 2.5% per annum Remaining Amortization Period – 30 years Assumed Salary Growth Rate – 3.5% Asset Valuation Method – Fair Value Discount Rate – 3.75% Healthcare Cost Trend Rate and Premium Increase – 10.2% for 2010, 8% for 2011 and grading to 4.4% over the life cycle. 68


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

F. Prior Period Adjustments The City has determined that certain transactions were recorded incorrectly in a prior year. Governmental Funds: In the Governmental Funds, it was determined that Park Development fees were incorrectly shown as deferred revenue when received and then as revenue in the period when they were spent. To correct this error, all Park Development fees were shown as revenue and the corresponding deferred revenue was eliminated. The beginning balance of the Parks Fund of $2,509,000 has been increased by $3,383,000 to $5,892,000. It was also determined that the Arts Council should be a blended component unit of the Arvada Center. To correct this error, all assets, liabilities, revenues and expenditures of the Arts Council were combined with the Arvada Center and any appropriate eliminations were made. The beginning balance of the Arvada Center of $304,000 has been increased by $332,000 to $636,000. In addition, the beginning net assets for governmental activities of $335,469,000, as originally reported, have been increased $3,715,000 to $339,184,000. G. Related Party Note In February 2010, the City and AURA entered into an intergovernmental agreement in which the City loaned the Authority $2,745,000 at a simple interest rate of 3.5% for 2 years. Interest payments are due monthly. The loan is due and payable in full on March 1, 2012. The loan was collateralized with a building and two parcels of land.

69


ARVADA, COLORADO 

CITY OF 

NOTES TO FINANCIAL STATEMENTS  December 31, 2010

This Page Intentionally Left Blank

70


ARVADA, COLORADO

CITY OF 

Schedule of Funding Progress

Actuarial Actuarial Value Valuation Date of Assets 01/01/2008  (a) $                         ‐ 01/01/2010 $                         ‐

Retiree Health Program Actuarial Accrued Liability (AAL)‐ Projected Unit  Credit Cost Unfunded AAL Method (UAAL) $             5,370,851 $       5,370,851 $             5,118,413 $       5,118,413

Fund Ratio Covered Payroll 0% $       38,797,330 0% $       43,239,463

UAAL as a Percentage of  Covered Payroll 13.84% 11.84%

(a) GASB 45 was implemented as of January 1, 2008; therefore, actuarial information on the Retiree Health Program is not  available prior to that date.

71


ARVADA, COLORADO

CITY OF 

CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Interest

$

Total revenues

-

Final

$

-

3

3

-

-

3

3

EXPENDITURES Current expenditures: Personnel services Licenses & Fees

-

80

9 30

(9) 50

Total expenditures

-

80

39

41

-

(80)

(36)

44

725 -

725 (540)

(570)

(725) (30)

725

185

(570)

(755)

725

105

(606)

(711)

7,430

4,883

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Sale of assets Transfer Out Total other financing uses NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

8,155

72

$

4,988

4,883 $

4,277

$

(711)


ARVADA, COLORADO

CITY OF 

NON-MAJOR GOVERNMENTAL FUNDS Lands Dedicated Fund - To account for annexation requirements to be used primarily for park purposes. Drainage Fund - To account for drainage fees that are levied as development occurs. Cash fees are restricted for use in construction of drainage facilities within the basin in which collected or may be used to reimburse developers for construction of required drainage structures. Interest accumulated on these cash fees is unrestricted for use, providing the capital drainage facility has sufficient appropriation in the Capital Projects Fund to justify transfer of these monies. Arvada Housing Authority Fund - The Section 8 Housing Assistance Payments Program is administered by the Arvada Housing Authority. The program is designed to provide rent subsidies to low or moderate income households. Police Seizure Fund - Colorado statutes authorize local law enforcement agencies to seize cash and other assets belonging to persons convicted of public nuisance crimes. The statutes also specify that the courts may award the property to the agency that apprehended the criminal and that these resources must be used only for specific law enforcement purposes. This fund was established to account for these resources as they are awarded to and expended by the City's law enforcement agency. Police Tax Increment Funds - The purpose of the tax increment funds is to account for the voter approved sales tax increases to fund expanded police services. Repayment Fund - To account for payments to the City from the Arvada Urban Renewal Authority for notes due to the City. Grants Fund - To account for receipt of lottery monies through the Conservation Trust Fund. Also to account for the disbursement of monies through transfers to other funds for specific uses as dictated by the Conservation Trust Fund. Bond Fund – To account for transfers from the General Fund and Stormwater Fund for payments of principal and interest on the $18,505,000 Series 2005 COP Bonds. Debt Service Fund – To account for the payment of revenue debt incurred through bond issues other than Water Bond Issues, which are accounted for in the Water Fund. Payments for the Limited Sales and Use Tax Revenue Bonds are included in this fund.

73


ARVADA, COLORADO

CITY OF 

NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2010 (in thousands)

Lands Dedicated Fund ASSETS Cash and investments Accounts receivable (net) Taxes Receivable Accrued interest Prepaid costs Total assets

Special Revenue Funds Arvada Housing Authority Police Seizure Fund Fund

Drainage Fund

Police Tax Increment (.21) Fund

$

4,530 9 -

$

1,953 4 -

$

457 21 -

$

243 1 -

$

5,681 304 12 20

$

4,539

$

1,957

$

478

$

244

$

6,017

LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Due to other funds

-

-

11 37

-

100 -

Total liabilities

-

-

48

-

100

1

1

294 113

244 -

20 5,795 102

4,538 4,539

1,956 1,957

23 430

244

5,917

FUND BALANCES Reserved for: Prepaid costs Conservation Trust Law enforcement programs Housing Emergencies Unreserved: Special Revenue Fund Debt Service Fund Total fund balance Total liabilities and fund balances

$

4,539

$

74

1,957

$

478

$

244

$

6,017


ARVADA, COLORADO

CITY OF 

Debt Service Police Tax Increment (.25) Fund

Repayment Fund

Grants Fund

Debt Service Fund

Bond Fund

Total Non-major Governmental

$

5,279 363 11 -

$

66 117 -

$

3,225 7 -

$

114 -

$

385 -

$

21,933 688 117 44 20

$

5,653

$

183

$

3,232

$

114

$

385

$

22,802

109 -

4 -

-

-

-

224 37

109

4

-

-

-

261

5,435 109

2

5,544 $

5,653

3,217 15

177 179 $

183

1

3,232 $

3,232

121

113 114 $

75

114

20 3,217 11,474 294 465

264 385 $

385

6,694 377 22,541 $

22,802


ARVADA, COLORADO

CITY OF 

NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 2010 (in thousands)

Lands Dedicated Fund REVENUES Taxes Intergovernmental Revenues Interest Miscellaneous

$

Total Revenues

Special Revenue Funds Arvada Housing Authority Police Seizure Fund Fund

Drainage Fund

44 -

$

19 -

$

3,762 2 20

$

3 -

Police Tax Increment (.21) Fund

$

3,004 56 329

44

19

3,784

3

3,389

-

-

3,726

25

2,923

-

-

-

-

-

-

-

3,726

25

2,923

44

19

58

OTHER FINANCING SOURCES (USES) Transfers in Transfers out

-

-

38 -

-

-

Total other financing sources (uses)

-

-

38

-

-

44

19

96

(22)

4,495

1,938

334

266

EXPENDITURES Program Costs Debt Service Principal Interest Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

NET CHANGE IN FUND BALANCES FUND BALANCES, BEGINNING FUND BALANCES, ENDING

$

4,539

$

76

1,957

$

430

(22)

$

244

466

466 5,451 $

5,917


ARVADA, COLORADO

CITY OF 

Debt Service Police Tax Increment (.25) Fund

$

Repayment Fund

3,577 51 -

$

-

$

Debt Service Fund

Bond Fund

$

6 -

$

4,032 10 -

Total Non-major Governmental

$

10,613 4,241 216 431

(6) 82

479 31 -

3,628

76

510

6

4,042

15,501

3,054

87

-

-

-

9,815

-

-

-

795 605

3,284 1,062

4,079 1,667

3,054

87

-

1,400

4,346

15,561

574

(11)

510

(1,394)

(304)

-

-

(396)

1,400 -

314 -

1,752 (396)

-

-

(396)

1,400

314

1,356

114

6

10

1,296

3,118

108

375

21,245

574

(11)

4,970 $

Grants Fund

5,544

190 $

179

$

3,232

$

114

77

$

385

(60)

$

22,541


ARVADA, COLORADO 

CITY OF 

LANDS DEDICATED FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Dedications Interest

$

Total revenues NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

75 120

Final

$

75 120

$

44

$

(75) (76)

195

195

44

(151)

195

195

44

(151)

4,614

4,495

4,495

4,809

78

$

4,690

$

4,539

$

(151)


ARVADA, COLORADO 

CITY OF 

DRAINAGE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Interest

$

Total revenues NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

Final

20

$

20

19

(1)

20

20

19

(1)

20

20

19

(1)

1,942

1,938

1,938

1,962

$

79

1,958

$

1,957

$

(1)


ARVADA, COLORADO 

CITY OF 

ARVADA HOUSING AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Intergovernmental revenues Federal grants Interest Miscellaneous

$

Total revenues EXPENDITURES Current expenditures: Personnel services Services and charges Supplies Rents Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Transfers In Total other financing uses NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

4,649 5 18

Final

$

4,649 5 18

$

3,762 2 20

$

(887) (3) 2

4,672

4,672

3,784

(888)

357 75 23 4,358

357 75 23 4,358

299 98 13 3,316

58 (23) 10 1,042

4,813

4,813

3,726

1,087

(141)

(141)

58

199

193

193

38

(155)

193

193

38

(155)

52

52

96

44

331

334

334

-

383

80

$

386

$

430

$

44


ARVADA, COLORADO 

CITY OF 

POLICE SEIZURE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Seizure & forfeitures Interest

$

Total Revenues EXPENDITURES NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

25 3

Final

$

25 3

$

3

28

28

3

25

25

25

3

3

(22)

245

266

248

81

$

269

$

(25) (25)

266 $

244

(25) -

$

(25)


ARVADA, COLORADO 

CITY OF 

POLICE TAX INCREMENT (.21) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Sales and use taxes Intergovernmental revenues Federal grants Interest Miscellaneous

$

Total revenues EXPENDITURES Current expenditures: Personnel services Services and charges Supplies Total expenditures

$

$

$

3,004

$

178

110

56 329

2,936

2,936

3,389

2,282 241 521

2,274 241 529

2,276 175 472

3,044

3,044

2,923

121

466

574

5,451

-

(108)

4,676

FUND BALANCE, BEGINNING

2,826

110 -

(108)

NET CHANGE IN FUND BALANCE

FUND BALANCE, ENDING

2,826

Final

4,568

82

5,451 $

5,343

$

5,917

(54) 329 453

(2) 66 57

$

574


ARVADA, COLORADO 

CITY OF 

POLICE TAX INCREMENT (.25) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Sales and use taxes Interest

$

Total revenues EXPENDITURES Current expenditures: Personnel services Services and charges Supplies Total expenditures

NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

3,398 115

Final

$

3,398 115

3,577 51

179 (64)

3,513

3,513

3,628

115

2,956 166 173

2,956 166 173

2,853 96 105

103 70 68

3,295

3,295

3,054

241

218

218

574

356

4,675

4,970

4,970

-

4,893

83

$

5,188

$

5,544

$

356


ARVADA, COLORADO 

CITY OF 

REPAYMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Interest Recovered Cost

$

Total Revenues

-

Final

$

70

$

(6) 82

$

(6) 12

-

70

76

6

EXPENDITURES

-

100

87

13

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

-

(30)

(11)

19

NET CHANGE IN FUND BALANCE

-

(30)

(11)

19

190

190

120

FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

120

84

$

160

$

179

$

19


ARVADA, COLORADO 

CITY OF 

GRANTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Intergovernmental revenues State grants Interest

$

Total revenues OTHER FINANCING USES Transfers out Total other financing uses NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

516 60

Final

$

516 60

479 31

(37) (29)

576

576

510

(396)

(396)

(396)

-

(396)

(396)

(396)

-

180

180

114

3,124

3,118

3,118

3,304

85

$

3,298

$

3,232

(66)

(66) $

(66)


ARVADA, COLORADO 

CITY OF 

BOND FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Interest

$

EXPENDITURES Debt Service Principal Interest Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Transfers In Total other financing uses

-

FUND BALANCE, ENDING

$

$

-

6

6

795 605

795 605

795 605

-

1,400

1,400

1,400

-

(1,400)

(1,400)

(1,394)

6

1,400

1,400

1,400

-

1,400

1,400

1,400

-

-

-

6

6

99

108

108

-

NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING

Final

99

86

$

108

$

114

$

6


ARVADA, COLORADO 

CITY OF 

DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Sales and use taxes Interest

$

Total revenues

4,032 5

Final

$

4,032 5

4,032 10

5

4,037

4,037

4,042

EXPENDITURES Services and Charges Principal Interest

2,995 1,037

2 2,995 1,037

3,284 1,062

2 (289) (25)

Total expenditures

4,032

4,034

4,346

(312)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

5

3

(304)

(307)

OTHER FINANCING USES Transfers In

-

-

314

314

-

-

314

314

5

3

10

7

375

375

375

-

Total other financing uses NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

380

87

$

378

$

385

5

$

7


ARVADA, COLORADO 

CITY OF 

This Page Intentionally Left Blank

88


ARVADA, COLORADO 

CITY OF 

ENTERPRISE FUNDS

Water Fund - This fund accounts for all activity within the scope of water utility operations. Water service is available to all areas within the City limits and is extended to some residents of the county and adjacent cities. All activities necessary to provide such service are accounted for in this fund, including administration, operations, capital water projects, maintenance, financing and related debt service, and billing and collection. Wastewater Fund - This fund accounts for all activities necessary in the collection, transmission, and disposal of sewage and wastewater. It includes administration, operations, capital maintenance, financing and billing and collection. Stormwater Fund - This fund accounts for all activities necessary to maintain a stormwater management plan. It includes administration, operations, capital maintenance and billing and collection. Golf Course Fund - This fund accounts for all revenues and expenses of the Lake Arbor and West Woods Golf Courses, including food service operations. It includes administrative, operations, maintenance, financing and related debt service at Lake Arbor and West Woods Golf Courses. Food service activities include restaurant operations at the West Woods and Lake Arbor Golf Courses. Food Services Fund - This fund accounts for all revenues 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.

89


ARVADA, COLORADO 

CITY OF 

WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Original

Final

Amounts

(Negative)

$ 18,646 27 224 1,954 23 699 404

$ 18,646 27 224 1,954 23 699 394

$ 16,865 13 292 676 80 2,172 500

21,977

21,967

20,598

(1,369)

14,735 712 5,220 1,550 712 7

17,997 717 2,364 1,550 712 7

14,337 671 5,033 1,550 697 91

3,660 46 (2,669) 15 (84)

22,936

23,347

22,379

Budgeted Amounts

REVENUES Sales Licenses/permits and fees Service charges and fees Interest income Miscellaneous revenues Developer Contributions Transfers in Total revenues EXPENDITURES Operating and maintenance Administration Capital Outlay Principal expense Interest expense Transfers out Total expenditures CHANGE IN NET ASSETS

$

(959)

$ (1,380)

(1,781)

ADJUSTMENTS TO GAAP BASIS Principal Capital Outlay Net book value of assets retired Depreciation and amortization

1,550 5,033 (110) (3,364)

CHANGE IN NET ASSETS, GAAP BASIS

$

90

1,328

$

(1,781) (14) 68 (1,278) 57 1,473 106

968 $

(401)


ARVADA, COLORADO 

CITY OF 

WASTEWATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Licenses/permits and fees Service charges and fees Interest income Other Revenues Developer Contributions Transfers In

$

Total revenues EXPENDITURES Operating and maintenance Administration Capital Outlay Transfers Out Total expenditures

CHANGE IN NET ASSETS

29 9,979 402 217 63

Final

$

29 9,979 402 217 63

9,904 95 328 63

(29) (75) (307) 111 -

10,690

10,690

10,390

(300)

7,887 742 1,590 259

7,959 742 1,590 259

7,343 742 1,355 259

616 235 -

10,478

10,550

9,699

851

140

691

$

212

$

ADJUSTMENTS TO GAAP BASIS Capital Outlay Net book value of assets retired Depreciation

1,355 (216) (1,079)

CHANGE IN NET ASSETS, GAAP BASIS

$

91

751

$

551


ARVADA, COLORADO 

CITY OF 

STORMWATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Service charges and fees Grants Interest Income Developer Contributions Transfer In Total revenues EXPENDITURES Operating and maintenance Capital outlay Transfers Out Total expenditures

CHANGE IN NET ASSETS

$

3,054 10 283 -

Final

$

3,054 10 283 -

$

3,099 64 112 84 1

$

45 54 (171) 84 1

3,347

3,347

3,360

902 4,429 1,132

902 4,429 1,132

832 1,515 1,772

70 2,914 (640)

6,463

6,463

4,119

2,344

$ (3,116)

$ (3,116)

(759)

ADJUSTMENTS TO GAAP BASIS Capital Outlay Deprecation

1,515 (457)

CHANGE IN NET ASSETS, GAAP BASIS

$

92

299

13

$

2,357


ARVADA, COLORADO 

CITY OF 

GOLF FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Sales Service charges and fees Interest income Miscellaneous revenue Transfers In

$

Total revenues EXPENDITURES Operating and maintenance Principal expense Interest expense Capital outlay Transfers Out Total expenditures CHANGE IN NET ASSETS

1,392 2,775 14 154

Final

$

1,392 2,775 14 154

1,384 2,497 3 9 154

(8) (278) 3 (5) -

4,335

4,335

4,047

(288)

3,992 221 52 62

3,991 221 52 59 4

3,678 221 41 52 4

313 11 7 -

4,327

4,327

3,996

331

8

51

$

8

$

ADJUSTMENTS TO GAAP BASIS Principal Captial Outlay Depreciation

221 52 (213)

CHANGE IN NET ASSETS, GAAP BASIS

$

93

111

$

43


ARVADA, COLORADO 

CITY OF 

FOOD SERVICES FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original

REVENUES Sales Interest income Miscellaneous revenues Transfers in

$

Total revenues EXPENDITURES Operating and maintenance Administration Capital outlay Total expenditures CHANGE IN NET ASSETS

$

1,702 16 21 -

Final

$

1,702 16 21 -

$

1,539 8 15 27

$

(163) (8) (6) 27

1,739

1,739

1,589

(150)

1,665 121 -

1,665 121 -

1,546 41 7

119 80 (7)

1,786

1,786

1,594

192

(47)

$

(47)

(5)

ADJUSTMENTS TO GAAP BASIS Depreciation

(51)

Capital Outlay

7

CHANGE IN NET ASSETS, GAAP BASIS

$

94

(49)

$

42


ARVADA, COLORADO 

CITY OF 

INTERNAL SERVICE FUNDS

Insurance Service Fund - This fund accounts for the activities associated with the City’s worker’s compensation, unemployment and property and liability insurance activities. Premiums are paid by each department into this fund to pay claims, claim reserves and administrative costs of the program including premiums to commercial insurance companies for losses in excess of the self insured amounts. Computer Fund - This fund accounted for the accumulation of financial resources necessary for the timely and orderly replacement and maintenance of the City’s computer equipment and software. Print Shop Fund - This fund accounts for the accumulation of financial resources necessary for the operation of the City’s print shop, copier maintenance and replacement. Vehicle Fund – This fund accounts for the accumulation of financial resources necessary for the timely and orderly replacement and maintenance of the City’s vehicles and equipment. Building Fund – This fund accounts for the accumulation of financial resources used for non-routine building maintenance.

95


ARVADA, COLORADO 

CITY OF 

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS December 31, 2010 (in thousands)

Insurance Service Fund

Computer Fund

$

$

Print Shop Fund

Vehicle Fund

Total Internal Service Funds

Building Fund

ASSETS CURRENT ASSETS Cash and investments Accounts Receivable (net) Accrued Interest Inventories Prepaid costs Total current assets

6,391 13 5

8,881 18 -

$

63 3 2 2

$

7,980 16 204 12

$

2,093 4 -

$

25,408 3 51 206 19

6,409

8,899

70

8,212

2,097

25,687

-

170

39

4,022

1,219

5,450

6,409

9,069

109

12,234

3,316

31,137

79 1,721 3 -

37 -

6 7

70 41 -

212 89

404 1,721 44 96

1,803

37

13

111

301

2,265

4 -

-

29

41 -

505

45 534

4

-

29

41

505

579

1,807

37

42

152

806

2,844

4,602

170 8,862

3 64

4,022 8,060

625 1,885

4,820 23,473

NONCURRENT ASSETS Property and equipment, net of accumulated depreciation Total assets

LIABILITIES CURRENT LIABILITIES Accounts payable Claims payable Accrued compensated absences Capital lease Total current liabilities

NONCURRENT LIABILITIES Accrued compensated absences Capital lease Total non-current liabilities Total liabilities

NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets

$

4,602

$

9,032

96

$

67

$

12,082

$

2,510

$

28,293


ARVADA, COLORADO 

CITY OF 

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Year Ended December 31, 2010 (in thousands)

Insurance Service Fund

Print Shop Fund

Computer Fund

Vehicle Fund

Total Internal Service Funds

Building Fund

REVENUES Service charges

$

$

2,008 108

$

292 10

$

4,111 27

$

407 -

Recovered costs

2,667 220

$

9,485 365

Total revenues

2,887

2,116

302

4,138

407

9,850

1,438

90

286

1,500

-

3,314

536 450 -

1,590 76

4 3

534 759

233 260

536 450 2,361 1,098

2,424

1,756

293

2,793

493

7,759

463

360

9

1,345

(86)

2,091

43 -

19 93 -

1 (2)

3 65 -

18 (26)

43

112

(1)

68

(8)

214

506

472

8

1,413

(94)

2,305

-

600

-

-

111

711

EXPENSES Administration Insurance premiums/ prescriptions Uninsured damages and claims Repair and maintenance Depreciation Total expenses Operating income

NON-OPERATING REVENUES (EXPENSES) Gain (loss) on sale of assets Interest income Interest expense

22 220 (28)

Total non-operating revenues (expenses)

INCOME BEFORE TRANSFERS TRANSFERS IN TRANSFERS OUT

(2,000)

-

-

(1,700)

-

(3,700)

CHANGE IN NET ASSETS

(1,494)

1,072

8

(287)

17

(684)

NET ASSETS, BEGINNING

6,096

7,960

59

12,369

2,493

NET ASSETS, ENDING

$

4,602

$

9,032

97

$

67

$

12,082

$

2,510

28,977 $

28,293


ARVADA, COLORADO 

CITY OF 

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 2010 (in thousands)

Cash Flows From Operating Activities Cash received from external customers Cash received from internal customers Cash payments to external suppliers Cash payments to internal suppliers Cash payments to employees for services

Insurance Service Fund

Computer Fund

Print Shop Fund

Vehicle Fund

Building Fund

Total Internal Service

$

$

$

$

$

$

Net cash provided (used) by operating activities Cash Flows From Noncapital Financing Activities Transfers to other funds Transfer from other funds Net cash provided (used) by noncapital financing activities

233 2,668 (575) (1,677) (539) 110

(2,000) (2,000)

Cash Flows From Capital and Related Financing Activities Purchases of capital assets Payment of capital lease Interest Expense Proceeds from sale of assets Net cash provided (used) by capital and related financing activities

-

Cash Flows From Investing Activities Interest on investments Net cash provided (used) by investing activities

43 43

Net increase (decrease) in cash and cash equivalents

99 2,016 (1,625) (13) (83) 394

8 291 (140) (155) 4

32 4,112 (736) (168) (1,181) 2,059

(1,700) (1,700)

1 407 (125) 283

111 111

373 9,494 (3,201) (1,858) (1,958) 2,850

600 600

-

(3,700) 711 (2,989)

(50) 19 (31)

(5) (2) (7)

(292) 43 (249)

(86) (26) (112)

(342) (91) (28) 62 (399)

93 93

1 1

65 65

18 18

220 220

175

300

(318)

(1,847)

1,056

(2)

Cash and cash equivalents January 1, 2010

8,238

7,825

65

7,805

1,793

25,726

Cash and cash equivalents December 31, 2010

6,391

8,881

63

7,980

2,093

25,408

463

360

9

1,345

-

76 -

3 (3) 2 (7)

Reconciliation of operating income to net cash provided (used) by operating activities : Operating income Adjustments to reconcile operating income to net cash provided by operating activities : Depreciation Expense (Increase) decrease in account receivable (Increase) decrease in inventories (Increase) decrease in prepaid expenditures (Increase) decrease in accrued interest income (Decrease) increase in accounts payable (Decrease) increase in claims payable (Decrease) increase in accrued benefits Net cash provided (used) by operating activities Noncash investing, capital and financing activities Capital Lease

$

98

1 13 (23) (339) (5)

41 (1) (82) -

-

110

394

4

-

$

-

$

41

(86)

2,091

759 (13) 2 6 (32)

260 -

(8)

-

1,098 (3) (11) 44 19 (36) (339) (13)

1 108

2,059

$

-

283

$

-

2,850

$

41


ARVADA, COLORADO 

CITY OF 

INSURANCE SERVICE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Service charges Recovered costs Interest income Total revenues EXPENDITURES Administration Uninsured damages and claims Insurance premiums Transfers Out Total expenditures CHANGE IN NET ASSETS

$

Final

2,897 78

$

2,897 220 78

2,667 220 43

(230) (35)

2,975

3,195

2,930

(265)

1,279 1,084 735 2,000

1,279 1,084 1,135 2,000

1,438 450 536 2,000

(159) 634 599 -

5,098

5,498

4,424

$ (2,123)

$ (2,303)

99

$ (1,494)

1,074 $

809


ARVADA, COLORADO 

CITY OF 

COMPUTER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original REVENUES Service charges Recovered costs Gain (loss) on sale of assets Interest income Transfers In Total revenues

$

EXPENDITURES Administration Repair and maintenance Capital Total expenditures CHANGE IN NET ASSETS

$

2,000 46 2 2,048

Final

$

2,000 46 2 2,048

2,008 108 19 93 600 2,828

8 62 17 93 600 780

94 1,902 -

94 1,902 -

90 1,590 50

4 312 (50)

1,996

1,996

1,730

266

52

1,098

52

$

ADJUSTMENTS TO GAAP BASIS Capital Outlay Depreciation

50 (76)

CHANGE IN NET ASSETS, GAAP BASIS

$

100

1,072

$

1,046


ARVADA, COLORADO 

CITY OF 

PRINT SHOP FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Service charges Recovered Costs Interest income Total revenues

$

EXPENDITURES Administration Principal Interest Repair and maintenance Total expenditures CHANGE IN NET ASSETS

$

401 401

Final

$

401 401

$

292 10 1 303

$

(109) 10 1 (98)

340 5 2 12

340 5 2 12

286 5 2 4

54 8

359

359

297

62

42

6

42

$

ADJUSTMENTS TO GAAP BASIS Principal Depreciation

5 (3)

CHANGE IN NET ASSETS, GAAP BASIS

$

101

8

$

(36)


ARVADA, COLORADO 

CITY OF 

VEHICLE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

Budgeted Amounts Original REVENUES Service charges Recovered costs Interest Income Gain (loss) on sale of assets Total revenues EXPENDITURES Administration Repair and maintenance Capital Transfer Out Total expenditures

CHANGE IN NET ASSETS

$

4,112 75 278

Final

$

4,112 75 278

$

4,111 27 65 3

$

(1) 27 (10) (275)

4,465

4,465

4,206

(259)

1,622 519 3,366 1,700

1,630 518 3,359 1,700

1,500 534 292 1,700

130 (16) 3,067 -

7,207

7,207

4,026

3,181

$ (2,742)

$ (2,742)

180

ADJUSTMENTS TO GAAP BASIS Capital Outlay Depreciation

292 (759)

CHANGE IN NET ASSETS, GAAP BASIS

$

102

(287)

$

2,922


ARVADA, COLORADO 

CITY OF 

BUILDING FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2010 (in thousands)

Actual

Variance With Final Budget Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original* REVENUES Service charges Interest Income Transfers In

$

Total revenues EXPENDITURES Repair and maintenance Capital Principal Interest Total expenditures

CHANGE IN NET ASSETS

$

407 111

Final

$

407 111

407 18 111

18 -

518

518

536

18

245 85 26

245 85 26

233 85 26

12 -

356

356

344

12

162

192

162

$

ADJUSTMENTS TO GAAP BASIS Principal Depreciation

85 (260)

CHANGE IN NET ASSETS, GAAP BASIS

$

103

17

$

30


ARVADA, COLORADO 

CITY OF 

This Page Intentionally Left Blank

104


ARVADA, COLORADO

CITY OF 

AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 2010 (in thousands)

Balance

Balance January 1, 2010

Additions

Deductions

$

$

$

December 31, 2010

ESCROW FUND ASSETS Cash and investments Accrued Interest Accounts receivable Total assets LIABILITIES Escrow funds Total liabilities

$

4,316 11 2,078 6,405

6,405 6,405

$

105

421 671 1,092

626 3 884 1,513

1,071 1,071

1,492 1,492

$

$

$

4,111 8 1,865 5,984

5,984 5,984


ARVADA, COLORADO

CITY OF 

This Page Intentionally Left Blank

106


ARVADA, COLORADO 

CITY OF 

Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually.

Form # 350-050-36

City of Arvada LOCAL HIGHWAY FINANCE REPORT This Information From The Records Of City of Arvada

YEAR ENDING : Dec-10 Prepared By: Daniel Leong Phone: 720-898-7122

I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. ITEM 1. 2. 3. 4. 5.

Local

B.

Motor-Fuel Taxes

Local

C. Receipts from

D. Receipts from

Motor-Vehicle Taxes

State HighwayUser Taxes

Federal Highway Administration

Total receipts available Minus amount used for collection expenses Minus amount used for nonhighway purposes Minus amount used for mass transit Remainder used for highway purposes II. RECEIPTS FOR ROAD AND STREET PURPOSES AMOUNT

ITEM A. Receipts from local sources: 1. Local highway-user taxes a. Motor Fuel (from Item I.A.5.) b. Motor Vehicle (from Item I.B.5.) c. Total (a.+b.) 2. General fund appropriations 3. Other local imposts (from page 2) 4. Miscellaneous local receipts (from page 2) 5. Transfers from toll facilities 6. Proceeds of sale of bonds and notes: a. Bonds - Original Issues b. Bonds - Refunding Issues c. Notes d. Total (a. + b. + c.) 7. Total (1 through 6) B. Private Contributions C. Receipts from State government (from page 2) D. Receipts from Federal Government (from page 2) E. Total receipts (A.7 + B + C + D)

20,414,999 1,293,417 0

0 21,708,416

4,178,231 388,854 26,275,501

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES AMOUNT ITEM A. Local highway disbursements: 1. Capital outlay (from page 2) 7,525,186 2. Maintenance: 5,025,196 3. Road and street services: a. Traffic control operations 3,183,597 b. Snow and ice removal 749,446 c. Other d. Total (a. through c.) 3,933,043 4. General administration & miscellaneous 676,670 5. Highway law enforcement and safety 9,115,405 6. Total (1 through 5) 26,275,501 B. Debt service on local obligations: 1. Bonds: a. Interest b. Redemption c. Total (a. + b.) 0 2. Notes: a. Interest b. Redemption c. Total (a. + b.) 0 3. Total (1.c + 2.c) 0 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)

IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued

Redemptions

26,275,501

Closing Debt 0

A. Bonds (Total) 1. Bonds (Refunding Portion) B. Notes (Total)

0 V. LOCAL ROAD AND STREET FUND BALANCE

A. Beginning Balance

B. Total Receipts C. Total Disbursements 26,275,501 26,275,501

D. Ending Balance

E. Reconciliation 0

Notes and Comments:

FORM FHWA-536 (Rev. 1-05)

PREVIOUS EDITIONS OBSOLETE

107

(Next Page)


ARVADA, COLORADO 

CITY OF 

STATE: Colorado YEAR ENDING (mm/yy): Dec-10

LOCAL HIGHWAY FINANCE REPORT

II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM A.3. Other local imposts: a. Property Taxes and Assessments b. Other local imposts: 1. Sales Taxes 2. Infrastructure & Impact Fees 3. Liens 4. Licenses 6 5. Specific Ownership &/or Other 6. Total (1. through 5.) c. Total (a. + b.)

AMOUNT

970,358

323,059 1,293,417 1,293,417

AMOUNT

ITEM A.4. Miscellaneous local receipts: a. Interest on investments b. Traffic Fines & Penalities c. Parking Garage Fees d. Parking Meter Fees e. Sale of Surplus Property f. Charges for Services g. Other Misc. Receipts h. Other i. Total (a. through h.)

0

(Carry forward to page 1)

ITEM C. Receipts from State Government 1. Highway-user taxes 2. State general funds 3. Other State funds: a. State bond proceeds b. Project Match c. Motor Vehicle Registrations d. Other (Specify) - DOLA Grant e. Other (Specify) f. Total (a. through e.) 4. Total (1. + 2. + 3.f)

AMOUNT 3,791,075

387,156

387,156 4,178,231

(Carry forward to page 1)

ITEM D. Receipts from Federal Government 1. FHWA (from Item I.D.5.) 2. Other Federal agencies: a. Forest Service b. FEMA c. HUD d. Federal Transit Admin e. U.S. Corps of Engineers f. Other Federal g. Total (a. through f.) 3. Total (1. + 2.g)

AMOUNT

388,854 388,854 (Carry forward to page 1)

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL HIGHWAY SYSTEM (a) A.1. Capital outlay: a. Right-Of-Way Costs b. Engineering Costs c. Construction: (1). New Facilities (2). Capacity Improvements (3). System Preservation (4). System Enhancement & Operation (5). Total Construction (1) + (2) + (3) + (4) d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)

OFF NATIONAL HIGHWAY SYSTEM (b)

1,215,019

1,337,389

1,012,038

961,729 2,679,493 319,517 3,960,739 5,298,128

1,012,038 2,227,058

TOTAL (c) 2,552,408 0 0 1,973,768 2,679,493 319,517 4,972,778 7,525,186 (Carry forward to page 1)

Notes and Comments:

FORM FHWA-536 (Rev.1-05)

PREVIOUS EDITIONS OBSOLETE

108


ARVADA, COLORADO 

CITY OF 

Statistical Section This part of the City of Arvada's Comprehensive Annual Financial Report represents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplemental information says about the City's overall financial health. Contents

Page

Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Net Assets by Component Changes in Net Assets (expenses) Changes in Net Assets (revenues) Fund Balances, Governmental Funds Changes in Fund Balances, Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes. Direct and Overlapping Sales Tax Rates Sales and Use Tax Revenue Principal Property Tax Payers Property Tax Levies and Collections Assessed & Actual Values of Taxable Property Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Pledged-Revenue Coverage Schedule of Debt Service Requirements - Governmental Activities Schedule of Debt Service Requirements - Business-Type Activities Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment wherein the City's financial activites take place and to help make comparisons over time and with other governments. Demographic and Economic Statistics Principal Employers Operating Information These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the service the City provides and the activities it performs. Full-time Equivalent City Government Employees by Function/Program Operating Indicators by Function/Program Capital Asset Statistics by Function/Program Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year.

109

110 111 112 113 114

115 116-117 118-119 120 121

122 123 124 125 126 127 128

129 130-131

132 133 134


ARVADA, COLORADO 

CITY OF 

City of Arvada Net Assets by Component Last Eight Fiscal Years (accrual basis of accounting)

Fiscal Year 2003 Governmental Activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business-type Activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net assets Primary Government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets

$

$

$

$

$

$

2004

2005

2006

190,540 14,474 78,559 283,573

$ 199,026 16,626 76,450 $ 292,102

$ 201,623 37,925 49,722 $ 289,270

$ 213,611 29,974 52,701 $ 296,286

126,226 69,579 195,805

$ 136,294 71,309 $ 207,603

$ 146,968 71,037 $ 218,005

$ 160,118 83,312 $ 243,430

316,766 14,474 148,138 479,378

$ 335,320 16,626 147,759 $ 499,705

$ 348,591 37,925 120,759 $ 507,275

$ 373,729 29,974 136,013 $ 539,716

Source: City of Arvada, Finance Department Note: Change in format of CAFR does not have 10 years of history. Government-wide financial statements have been prepared in accordance with the requirements of GASB Statement 34. Financial Statements were not restated for previous years for purposes of providing ten-year trend data. In future years, as information becomes available, additional years will be presented.

110

2007 $

$

$

$

$

$

2008

2009

2010

223,565 15,735 74,472 313,772

$ 233,223 17,425 80,607 $ 331,255

$ 218,883 18,174 98,412 $ 335,469

$ 222,197 20,156 106,099 $ 348,452

174,370 100 89,078 263,548

$ 186,979 100 92,657 $ 279,736

$ 194,128

$ 198,953

89,902 $ 284,030

87,764 $ 286,717

397,935 15,835 163,550 577,320

$ 420,202 17,801 172,988 $ 610,991

$ 413,011 18,174 188,554 $ 619,739

$ 421,150 20,156 193,863 $ 635,169


ARVADA, COLORADO 

CITY OF 

City of Arvada Changes in Net Assets Last Eight Fiscal Years (accrual basis of accounting)

Functions/Program Activities Expenses Governmental activities: General Government Public safety Public works Parks and recreation Culture Human Services Interest

2003

$

Total governmental activities expenses Business-type activities: Water Wastewater Other Total business-type activities expenses Total primary government expenses

22,177 17,843 12,866 5,379 7,875 5,334 2,371

Fiscal Year 2005 2006

2004

$

17,569 19,047 13,858 5,506 8,242 5,528 2,157

$

33,914 19,380 14,007 5,865 9,170 5,051 2,084

$

22,946 21,278 14,843 6,231 9,352 4,170 2,469

2007

$

26,142 22,054 17,357 6,598 9,155 4,081 2,361

2008

$

27,821 22,922 16,352 6,861 10,041 4,355 2,245

2009

$

14,267 23,544 16,967 14,273 10,649 4,251 2,329

2010

$

12,930 22,999 17,102 14,382 10,004 4,734 1,579

73,845

71,907

89,471

81,289

87,748

90,597

86,280

83,730

13,949 6,315 6,586

13,962 6,816 6,860

15,524 7,007 6,421

16,288 6,931 6,982

17,137 7,633 6,894

18,807 9,359 7,079

19,386 8,770 7,035

19,150 9,341 6,764

26,850

27,638

28,952

30,201

31,664

35,245

35,191

35,255

99,545

$ 118,423

$ 111,490

$ 119,412

$ 125,842

$ 121,471

$ 118,985

$ 100,695

$

Program Revenues Governmental activities: Charges for services: General Government Public works Parks & Recreation Other activities Operating grants and contributions Capital grants and contributions

5,985 2,023 587 3,926 9,063 13,178

6,077 2,603 736 3,975 9,517 8,171

10,268 2,473 770 4,136 10,019 7,347

9,535 1,926 762 5,269 9,301 4,596

10,193 2,006 866 8,864 9,265 6,960

11,212 1,892 885 6,979 9,008 12,432

5,267 3,008 1,020 6,959 9,501 2,789

5,130 2,603 1,479 6,101 11,790 180

Total governmental activities program revenues

34,762

31,079

35,013

31,389

38,154

42,408

28,544

27,283

12,806 5,525 8,800 8,070

12,751 5,339 8,927 8,619

13,502 5,979 8,072 7,602

16,525 6,921 8,359 10,658

15,881 7,692 9,167 10,563

19,285 8,484 8,857 10,706

14,972 9,753 8,661 1,581

17,250 9,904 8,543 64 2,584

35,201

35,636

35,155

42,463

43,303

47,332

34,967

38,345

Business-type activities: Charges for services: Water Wastewater Other Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues

$

69,963

$

66,715

$

70,168

111

$

73,852

$

81,457

$

89,740

$

63,511

$

65,628


ARVADA, COLORADO 

CITY OF 

City of Arvada Changes in Net Assets Last Seven Fiscal Years (modified accrual basis of accounting)

Functions/Program Activities Net (Expense)/Revenue Governmental activities Business-type activities Total primary government net expense

2003 (39,083) 8,351 ($30,732)

General Revenues and Other Changes In Net Assets Governmental activities: Taxes Property taxes $ 4,113 Franchise taxes 3,277 Sales taxes 33,352 Transportation taxes 4,384 Investment earnings 4,383 Miscellaneous 726 Transfers (671) Total governmental activities 49,564 Business-type activites Investment earnings 1,370 Miscellaneous 168 Transfers 671 Total business-type activities Total primary government

Change in Net Assets Governmental activities Business-type activities Total primary government

$

2,209 51,773

$

10,481 10,560 21,041

Fiscal Year 2005 2006

2004 (40,828) 7,998 ($32,830)

$

4,412 3,490 34,956 4,481 4,141 643 (2,766) 49,357

(54,458) 6,203 ($48,255)

$

854 180 2,766

$

3,800 53,157

$

8,529 11,798 20,327

4,404 34,674 4,295 4,746 5,258 (1,751) 51,626

(49,900) 12,262 ($37,638)

$

1,653 795 1,751

$

4,199 55,825

$

(2,832) 10,402 7,570

4,534 42,426 4,692 6,509 1,449 (2,694) 56,916

$

13,163 70,079

$

7,016 25,425 32,441

Note: General Government represents support and administrative divisions such as Legal, Finance, City Manager's Office, KATV, Human Resources, Planning, Code Enforcement, Information Services, Courts, and City Council.

2008

(49,594) 11,639 ($37,955)

$

3,279 7,190 2,694

Source: City of Arvada, Finance Department

112

2007

4,785 50,051 4,668 5,529 4,871 (2,824) 67,080

(48,189) 12,087 ($36,102)

$

5,244 411 2,824

$

8,479 75,559

$

17,486 20,118 37,604

2009

5,099 50,322 4,533 4,707 1,122 (111) 65,672

$

3,832 158 111

$

4,101 69,773

$

17,483 16,188 33,671

2010

(57,736) (224) ($57,960)

(56,447) 3,090 ($53,357)

5,121 49,530 4,665 1,875 462 882 62,535

4,961 50,259 4,761 1,234 3,119 1,381 65,715

1,361 1,319 (882)

$

1,798 64,333

$

4,799 1,574 6,373

894 84 (1,381)

$

(403) 65,312

$

9,268 2,687 11,955


ARVADA, COLORADO 

CITY OF 

City of Arvada Fund Balances – Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2001 General Fund Reserve Unreserved Total general fund

$

2,296 24,215

2002 $

1,745 27,976

2003 $

2,142 28,504

Fiscal Year 2005 2006

2004 $

2,209 33,084

$

2,506 27,132

$

2,336 28,696

2007 $

2,623 25,981

2008 $

2009

2,484 27,325

$ 2,521 30,218

2010 $

2,406 18,652

26,511

29,721

30,646

35,293

29,638

31,032

28,604

29,809

32,739

21,058

7,607

8,361

5,730

4,876

8,669

10,986

13,382

15,048

16,530

18,574

16,254 745 18,077

14,862 343 34,275

16,280 4,277 44,533

All Other Governmental Funds Reserve Unreserved Special revenue funds Debt Service Capital project funds

16,657

14,260

14,822

13,809

11,509

11,827

30,610

20,454

20,985

17,127

24,196

14,163

14,605 637 16,566

Subtotal All Other Governmental Funds

54,874

43,075

41,537

35,812

44,374

36,976

45,190

50,124

66,010

83,664

Total Governmental Funds Reserve Unreserved

9,903 71,482

10,106 62,690

7,872 64,311

7,085 64,020

11,175 62,837

13,322 54,686

16,005 57,789

17,690 62,243

18,842 79,907

20,980 83,742

$ 81,385

$ 72,796

$ 72,183

$ 71,105

$ 74,012

$ 68,008

$ 73,794

$ 79,933

$ 98,749

$ 104,722

Total all other governmental funds

Source: City of Arvada Finance Department

113


ARVADA, COLORADO 

CITY OF 

City of Arvada Changes in Fund Balances-Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2005 2006

2001

2002

2003

2004

2007

2008

2009

2010

Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits Interest Memberships and Donations Miscellaneous

$ 40,217 1,749 18,306 8,534 1,491 7,245 578 704

$ 41,095 2,423 13,722 10,577 1,417 5,323 606 541

$ 40,742 2,329 14,716 13,426 1,176 4,290 459 1,110

$ 42,858 2,776 16,953 9,902 1,102 3,927 457 1,860

$ 42,856 2,686 14,826 10,750 1,129 4,313 422 1,150

$ 50,917 2,275 14,773 10,611 1,152 5,520 419 1,747

$ 58,839 2,294 14,975 13,203 1,225 4,228 317 4,173

$ 59,773 2,219 13,577 13,867 1,378 3,674 299 894

$ 58,710 3,450 15,291 8,324 1,633 1,431 332 664

$ 59,547 3,132 16,440 6,788 1,558 1,014 291 860

Total revenues

$ 78,824

$ 75,704

$ 78,248

$ 79,835

$ 78,132

$ 87,414

$ 99,254

$ 95,681

$ 89,835

$ 89,630

General Government Public Safety Public Works Program Costs Capital Outlay Debt Service Principal Interest

$ 10,476 13,535 11,816 17,083 17,011

$ 10,828 14,200 12,566 18,900 20,903

$ 13,713 15,242 13,319 19,071 10,904

$ 14,103 15,924 14,025 19,441 11,253

$ 19,024 16,030 13,891 21,988 24,110

$ 14,878 17,523 15,025 23,039 16,324

$ 17,466 17,628 17,792 23,888 8,702

$ 18,747 23,866 16,651 20,621 4,411

12,167 24,094 17,128 20,981 5,946

13,697 23,873 17,286 21,223 9,917

2,120 2,780

2,225 2,669

3,695 2,371

1,250 2,157

1,840 2,084

3,230 2,469

3,345 2,361

3,460 2,245

3,011 1,469

4,079 1,667

Total Expenditures

$ 74,821

$ 82,291

$ 78,315

$ 78,153

$ 98,967

$ 92,488

$ 91,182

$ 90,001

$ 84,796

$ 91,742

Revenues:

Expenditures:

Excess (Deficiency) of Revenues Over (Under) Expenditures

4,003

(6,587)

(67)

1,682

(20,835)

(5,074)

8,072

5,680

5,039

(2,112)

21,768 (20,109)

20,541 (22,543)

110 18,661 (19,317)

9,853 (12,613)

18,505 4,752 16,322 (15,837)

724 21,851 (23,505)

724 16,562 (19,572)

725 11,091 (11,357)

(192) 20,857 (21,952) 15,774 (12,884)

33,617 (29,247)

1,659

(2,002)

(546)

(2,760)

23,742

(930)

(2,286)

459

1,603

4,370

6,139

$ 6,642

$ 2,258

Other Financing Sources (Uses) Bond Issuance costs Proceeds from borrowing Payments to escrow agent Sale of Assets Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances

$

5,662

Debt service as a % of Noncapital Expenditures

9%

$

(8,589)

9%

$

(613)

10%

$

(1,078)

5%

Source: City of Arvada, Finance Department

114

$

2,907

6%

$

(6,004)

8%

$

5,786

7%

$

7%

6%

8%


ARVADA, COLORADO 

CITY OF 

City of Arvada Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years

City Direct Rates

Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Basic Rate 3.21% 3.21% 3.21% 3.21% 3.21% 3.46% 3.46% 3.46% 3.46% 3.46%

State of Colorado

Jefferson County

2.90% 2.90% 2.90% 2.90% 2.90% 2.90% 2.90% 2.90% 2.90% 2.90%

0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Overlapping Rates Rapid Transit Adams District County RTD 0.70% 0.70% 0.70% 0.70% 0.70% 0.75% 0.75% 0.75% 0.75% 0.75%

0.60% 0.60% 0.60% 0.60% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

Cultural Facilities District 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%

Baseball Football Stadium District 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%

Source: City of Arvada, Finance Department The combined direct and overlaping rates for Jefferson and Adams counties are 8.06% and 8.31%, respectively.

115


ARVADA, COLORADO 

CITY OF 

City of Arvada Sales and Use Tax Last Ten Fiscal Years

2001 Sales Tax: Grocery Chain Stores Fast Food Restaurants General Dept Stores Public Utilities Restaurant & Lounges Telephone Equipment & Service Misc. - Other Total Sales Tax

$

6,074,502 1,368,927 4,962,814 3,335,420 8,298,233 775,573 8,096,626

Calendar Year 2002 $

5,641,172 1,415,175 6,484,783 2,966,106 1,843,542 998,110 14,577,475

2003 $

6,084,534 1,419,775 6,439,482 3,101,609 1,896,498 1,175,604 14,230,448

2004 $

5,877,084 1,455,665 6,707,313 3,376,846 1,909,988 1,507,751 14,408,246

32,912,095

33,926,363

34,347,950

35,242,893

29,207 29,506 107,292 275,703 382,995 2,036 669,624

102,552 29,851 11,131 227,536 56,933 5,070 785,647

41,224 24,737 48,993 180,843 48,584 7,264 889,989

60,570 24,316 15,796 167,922 49,418 7,257 863,177

Total Use Tax

1,496,363

1,218,720

1,241,634

1,188,456

Auto Use

5,909,843

5,988,125

5,831,569

5,568,113

Building Use

1,826,496

2,345,927

1,785,921

3,060,688

$ 42,144,797

$ 43,479,135

$ 43,207,074

$ 45,060,150

Use Tax: Grocery Chain Stores Fast Food Restaurants General Dept Stores Public Utilities Restaurant & Lounges Telephone Equipment & Service Misc. - Other

Total City Direct Sales Tax Rate

3.21%

3.21%

3.21%

3.21%

Source: City of Arvada, Finance Department Note: Report reformatted to reflect both Sales and Use Tax totals presented on a cash basis. Auto Use was restated to reflect end-of-year accurals. Sales and Use tax are reported on a cash basis and include Arvada Urban Renewal Authority taxes through July 2006. Auto and Building Use taxes are reported on an accrual basis. Different rounding settings were used at different phases of the production of these numbers, so some numbers may be off by $1. The Miscellaneous category includes all businesses not listed in the above categories. Revenue increase for Public Utilities was related to an audit due to a natural gas product, which makes electricty, not being taxed correctly. Additionally the decrease in Sales Tax revenue for Public Utilities relates to the new tier structure that the Utility put into place in 2010. The revenue differences in 2009-2010 under the Misc-Other catagory in both Sales and Use Tax are not clearly identified, as in September 2010 the Sales Tax Department took the opportunity to better define their industry codes by expanding the available list.

116


ARVADA, COLORADO 

CITY OF 

City of Arvada Sales and Use Tax Last Ten Fiscal Years

2005 $

5,986,055 1,516,717 6,618,964 3,632,166 1,916,329 1,280,206 14,705,419

Calendar Year 2007 2008

2006 $

6,529,755 1,719,437 7,146,661 4,030,217 2,096,434 1,282,742 16,573,910

$

7,017,236 1,707,247 7,312,606 4,074,050 2,227,360 1,382,418 17,006,837

$

7,288,486 1,810,008 7,288,906 4,317,928 2,255,327 1,480,300 17,064,447

2009 $

2010

7,321,094 1,802,468 7,325,139 3,947,475 2,223,585 1,476,853 16,152,264

$ 7,207,867 2,055,222 7,273,593 3,250,660 2,327,476 1,590,756 16,720,308

35,655,856

39,379,156

40,727,754

41,505,402

40,248,879

40,425,882

61,453 39,050 91,822 145,881 55,256 9,455 922,461

110,181 32,056 56,729 154,510 62,426 4,088 1,188,404

24,091 22,567 36,522 231,681 45,754 3,556 942,161

27,114 27,749 69,290 225,767 50,506 3,203 1,199,747

68,055 15,459 48,512 589,297 29,931 4,545 1,196,560

56,962 29,626 50,083 1,141,121 23,865 4,545 1,050,757

1,325,378

1,608,394

1,306,332

1,603,376

1,952,358

2,356,959

5,230,665

4,978,494

5,444,119

4,957,715

4,534,445

4,593,311

2,582,355

2,404,810

1,930,349

1,772,748

2,382,088

2,078,930

$ 44,794,254

$ 48,370,854

$ 49,408,554

$ 49,839,241

$ 49,117,770

$ 49,455,082

3.21%

3.46%

3.46%

3.46%

117

3.46%

3.46%


ARVADA, COLORADO 

CITY OF 

City of Arvada, Colorado Principal Property Tax Payers Current Year and Nine Years Ago 2001

2002

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2003

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2004

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2005

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

Tax Remitter ADLP 80th LLC AMCAP Denver LP Arvada Market Place Arvada Market Place East Arvada Structures LLC Arvada West 04, LLC AT&T Broadband Chou Jack C Co Trustee CIN Arvada LP Cobe Laboratories Comcast of Colorado Costco Wholesale Corp. Cub Square Centre LLC Eagle Hardware Inc. Equiatable Crow Arvada LTD. Home Depot USA Inc. Indian Tree LLC Inland Western Arvada LLC Milton Roy Company Mountain States Video Inc. North Park Center Plains End LLC Public Service Co. Qwest Corp. R&M Western Partnership Regency Centers LP Sundyne Corp. Sunstrand Corp. TCI Colorado TVO Southwestern Partners U.S. West Total

2,053 8,396 3,843 2,566 5,050 12,573 13,603 1,875 2,085 2,227 -

9 3 5 6 4 2 1 10 8 7 -

$ 54,271

0.23% 0.96% 0.44% 0.29% 0.58% 1.44% 1.56% 0.21% 0.24% 0.25% -

2,032 4,591 8,458 3,843 2,566 12,663 16,131 1,875 2,573 2,227 -

6.20%

$ 56,959

9 4 3 5 7 2 1 10 6 8 -

0.23% 0.51% 0.94% 0.43% 0.28% 1.41% 1.80% 0.21% 0.28%

0.25% -

2,164 2,145 8,701 3,727 2,869 2,741 17,660 14,216 13,073 2,492 -

6.34%

$ 69,788

Source: Jefferson and Adams County Assessors Offices Note: The top ten taxpayers represents roughly 7% of the total assessed valuation for the City of Arvada. The remaining 93% represents smaller business and residential customers

118

9 10 4 5 6 7 1 2 3 8 -

0.22% - 0 0.22% 0.89% 0.38% 0.29% 0.28% 1.81% 1.45% 1.34% 0.25% -

3,463 8,105 3,691 3,597 3,636 2,741 9,273 16,194 13,533 10,549 -

7.13%

$ 74,782

9 5 6 8 7 10 4 1 2 3 -

0.35% 0.83% 0.38% 0.37% 0.37% 0.28% 0.95% 1.66% 1.38% 1.08% 7.65%

4,346 4,661 8,437 3,573 5,036 2,842 12,489 13,639 14,242 9,933 -

$ 79,198

8 7 5 9 6 10 3 2 1 4 -

0.42% 0.45% 0.82% 0.35% 0.49% 0.28% 1.21% 1.33% 1.38% 0.97% -

7.70%


ARVADA, COLORADO 

CITY OF 

City of Arvada, Colorado Principal Property Tax Payers Current Year and Nine Years Ago 2006

2007

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2008

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2009

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

Taxable Assessed Value

Rank

-

3,657 4,297 3,805 4,594 9,478 34,352 9,321 12,036 4,531 4,019 -

10 7 9 5 3 1 4 2 6 8 -

6.95%

$ 90,090

2010 Percentage of Total City Taxable Assessed Value

Taxable Assessed Value

Rank

Percentage of Total City Taxable Assessed Value

Tax Remitter ADLP 80th LLC AMCAP Denver LP Arvada Market Place Arvada Market Place East Arvada Structures LLC Arvada West 04, LLC AT&T Broadband Chou Jack C Co Trustee CIN Arvada LP Cobe Laboratories Comcast of Colorado Costco Wholesale Corp. Cub Square Centre LLC Eagle Hardware Inc. Equiatable Crow Arvada LTD. Home Depot USA Inc. Indian Tree LLC Inland Western Arvada LLC Mountain States Video Inc. Plains End LLC (& II) Public Service Co. Qwest Corp. R&M Western Partnership Regency Centers LP Sundyne Corp. Sunstrand Corp. Target Corp. TCI Colorado TVO Southwestern Partners U.S. West Total

3,878 4,661 7,969 3,534 3,611 5,036 12,489 12,601 16,601 9,416 -

$ 79,796

8 7 5 10 9 6 3 2 1 4 -

0.37% 0.45% 0.76% 0.34% 0.35% 0.48% 1.19% 1.21% 1.59% 0.90% -

4,090 4,477 3,889 4,792 11,456 12,504 15,610 12,420 4,281 4,521 -

7.63%

$ 78,040

9 7 10 5 4 2 1 3 8 6 -

0.36% 0.40% 0.35% 0.43% 1.02% 1.11% 1.39% 1.10% 0.38% 0.40% -

4,090 4,477 4,596 4,792 11,456 13,275 15,238 12,447 4,238 4,390 -

6.93%

$ 78,999

119

10 7 6 5 4 2 1 3 9 8 -

0.36% 0.39% 0.40% 0.42% 1.01% 1.17% 1.34% 1.09% 0.37% 0.39%

0.32% 0.38% 0.34% 0.00% 0.41% 0.84% 3.05% 0.83% 1.07% 0.40% 0.36%

4,110 3,704 3,486 4,199 9,615 28,337 14,170 12,310 4,309 3,891 -

-

7.99%

$

88,131

7 9 10 6 4 1 2 3 5 8 -

0.37% 0.33% 0.31% 0.37% 0.86% 2.53% 1.26% 1.10% 0.38% 0.35% -

7.85%


ARVADA, COLORADO 

CITY OF 

City of Arvada Property Tax Levies and Collections Last Ten Years (modified accrual basis of accounting)

Fiscal Year Ended 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Taxes Levied for the Fiscal Year (1) 2,966,911 3,619,912 3,695,017 3,963,606 3,996,218 4,169,012 4,422,851 4,757,970 4,803,790 4,668,390

Collection within the Fiscal Year of the Levy Percentage Amount of Levy 2,958,060 3,599,394 3,673,671 3,959,477 3,993,781 4,135,847 4,383,304 4,718,720 4,770,519 4,637,622

99.70% 99.43% 99.42% 99.90% 99.94% 99.20% 99.11% 99.18% 99.31% 99.34%

Source: Jefferson and Adams County Assessors Offices Note: Excludes Specific Ownership Tax (1) Taxes levied is for the tax year preceding the fiscal year. The mill levy rate for 2010 is 4.31.

120

Collections in Subsequent Years 0.00 0.00 0.00 0.00 0.00 0.00 3,853 2,080 1,795 1,108

Total Collections to Date Percentage Amount of Levy 2,958,060 3,599,394 3,673,671 3,959,477 3,993,781 4,135,847 4,387,157 4,720,800 4,772,315 4,638,730

99.70% 99.43% 99.42% 99.90% 99.94% 99.20% 99.19% 99.22% 99.34% 99.36%


ARVADA, COLORADO 

CITY OF 

City of Arvada Assessed Value and Actual Value of Taxable Property Last Ten Years

Vacant property Residential property Commercial property Industrial property Agricultural property Natural Resources State assessed property Personal property Total taxable assessed value

$ $ $ $ $ $ $ $ $

2001 19,856,790 620,039,430 117,711,960 42,488,310 1,415,170 320 29,414,670 2,362,510 833,289,160

Total direct tax rate Estimated actual taxable value

4.31 $

$ $ $ $ $ $ $ $ $

2003 24,888,210 668,716,330 169,080,180 59,594,190 1,522,620 320 50,996,310 2,776,230 977,574,390

$ $ $ $ $ $ $ $ $

4.31

7,822,202 $

2004 24,582,300 678,489,350 169,543,790 59,461,020 1,532,080 320 45,218,320 2,563,490 981,390,670

2005 $ 26,517,270 $ 689,194,530 $ 203,122,180 $ 62,613,590 $ 1,568,160 $ 320 $ 42,921,340 $ 2,762,230 $ 1,028,699,620

4.31

4.31

9,465,987 $

9,576,687 $

9,828,930

11.5%

11.5%

10.3%

10.2%

2006 $ 20,196,350 $ 703,037,820 $ 212,625,220 $ 60,758,960 $ 1,554,330 $ 320 $ 44,143,550 $ 2,900,950 $ 1,045,217,500

2007 $ 28,559,660 $ 752,547,870 $ 225,401,350 $ 68,972,520 $ 1,516,050 $ 320 $ 45,809,460 $ 3,269,500 $ 1,126,076,730

2008 $ 27,772,060 $ 759,627,790 $ 230,096,840 $ 68,876,220 $ 1,492,280 $ 420 $ 46,001,680 $ 3,298,970 $ 1,137,166,260

2009 $ 22,225,900 $ 728,285,380 $ 240,075,860 $ 70,564,000 $ 1,952,380 $ 420 $ 61,326,920 $ 3,054,470 $ 1,127,485,330

2010 $ 20,415,720 $ 729,786,750 $ 235,714,770 $ 70,224,120 $ 1,917,540 $ 420 $ 60,603,390 $ 3,416,840 $ 1,122,079,550

4.31

4.31

4.31

4.31

4.31

Total direct tax rate Estimated actual taxable value

2002 19,473,130 631,774,510 158,006,570 49,597,740 1,464,220 320 34,571,620 2,979,570 897,867,680 4.31

7,243,227 $

Assessed value as a percentage of estimated actual value

Vacant property Residential property Commercial property Industrial property Agricultural property Natural Resources State assessed property Personal property Total taxable assessed value

$ $ $ $ $ $ $ $ $

$

9,886,572 $

Assessed value as a percentage of estimated actual value

10.6%

10,577,558 $ 10.6%

Source: Jefferson and Adams County Assessors' offices.

121

10,844,919 $ 10.5%

10.5%

10,359,457 $ 10.9%

10,359,672 10.8%


ARVADA, COLORADO 

CITY OF 

City of Arvada Ratios of Outstanding Debt by Type Last Ten Fiscal Years (in thousands)

Governmental Activities Sales General Tax Certificates Fiscal Obligation Increment Capital of Year Bonds Bonds Lease Participation 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

8,140 7,840 -

50,335 45,615 45,020 43,770 41,930 39,405 36,790 34,080 30,770 27,775

8 13 7 1,010 977 909 846 768 1,121 783

18,505 17,800 17,070 16,320 15,550 14,755

Business-Type Activities

Water Bonds 30,280 30,280 29,135 27,940 26,690 25,390 24,030 22,615 20,205 18,655

Source: City of Arvada Finance Department

122

Capital Leases

Total Primary Government

Percentage of Personal Income

2,405 2,578 2,297 2,006 1,698 2,617 2,465 2,009 1,093 875

91,168 86,326 76,459 74,726 89,800 86,121 81,201 75,792 68,739 62,843

3.60% 3.50% 3.44% 3.45% 3.11% 3.67% 2.51% 2.55% 1.95% 1.95%

Per Capita 0.89 0.83 0.75 0.72 0.87 0.84 0.77 0.71 0.64 0.58


ARVADA, COLORADO 

CITY OF 

City of Arvada Ratio of General Bonded Debt Outstanding and Legal Debt Margin Last Ten Fiscal Years (modified accrual basis of accounting)

General Bonded Debt Outstanding

Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

General Obligation Bonds

Redevelopment Bonds $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Percentage of Actual Taxable Value of Property

Total

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Source: City of Arvada Comprehensive Annual Financial Report (2001-2010), Jefferson and Adams County Assessors Offices, Denver Regional Council of Governments

123

Per Capita

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00


ARVADA, COLORADO 

CITY OF 

City of Arvada Direct and Overlapping Governmental Activities Debt

Jurisdiction Direct City of Arvada

$

Overlapping Jefferson County School District R-1 Adams County School District (50) North Jeffco Park & Recreation District (Apex) Hyland Hills Park & Recreation District Arvada West Town Center Business Improvement District Southwest Adams County Fire Protection District 2

Total

Overlapping Jefferson County School District R-1 Adams County School District (50) North Jeffco Park & Recreation District (Apex) Hyland Hills Park & Recreation District Arvada West Town Center Business Improvement District Southwest Adams County Fire Protection District 2

Total

-

100.00%

693,168,474 106,700,000 17,425,000 15,610,000 5,345,000

15.00% 5.74% 80.33% 3.90% 100.00%

1,740,420

13.26%

$ 839,988,894

$

Estimated Share of Overlapping Debt

$

-

100.00%

103,975,271 6,124,580 13,997,503 608,790 5,345,000

651,955,000 104,535,000 16,235,000 14,910,000 5,345,000

15.00% 5.74% 80.33% 3.90% 100.00%

230,780

1,545,570

13.26%

$ 130,281,923

$ 794,525,570

-

100.00%

564,450,000 99,335,000 13,485,000 13,440,000 5,345,000

15.00% 5.74% 80.33% 3.90% 100.00%

1,158,090

13.26%

$ 697,213,090

2007 Percents Applicable To City

General Obligation Bonded Debt Outstanding

-

2009 Percents Applicable To City

General Obligation Bonded Debt Outstanding

Jurisdiction Direct City of Arvada

2006 Percents Applicable To City

General Obligation Bonded Debt Outstanding

$

Estimated Share of Overlapping Debt

$

General Obligation Bonded Debt Outstanding

-

$

Estimated Share of Overlapping Debt

$

$

Estimated Share of Overlapping Debt

-

100.00%

97,793,250 6,000,309 13,041,576 581,490 5,345,000

609,570,000 102,290,000 14,920,000 14,190,000 5,345,000

15.00% 5.74% 80.33% 3.90% 100.00%

91,435,500 5,871,446 11,985,236 553,410 5,345,000

204,943

1,351,390

13.26%

179,194

$ 122,966,567

$ 747,666,390

2010 Percents Applicable To City

-

Estimated Share of Overlapping Debt

-

100.00%

84,667,500 5,701,829 10,832,501 524,160 5,345,000

502,790,000 95,910,000 11,970,000 13,175,000 5,345,000

15.00% 5.74% 80.33% 3.90% 100.00%

75,418,500 5,505,234 9,615,501 513,825 5,345,000

153,563

965,880

13.26%

128,076

$ 107,224,552

$ 630,155,880

$

-

$ 96,526,136

Source: Jefferson County School District, Adams County Schools District, Jefferson County Parks, and Recreation District, Hylands Hills Park Recreation District, Southwest Adams County Fire Protection District, and City of Arvada Note: Overlapping governments listed above incorporate a portion of the City of Arvada. This percentage of the incorporated areas is used to calculate the estimated share of overlapping debt. This figure is taken into account to determine the City of Arvada'a ability to issue and repay long term debt.

124

2008 Percents Applicable To City

General Obligation Bonded Debt Outstanding

$

-

$ 115,369,786


125

$

$

2001

1.29%

214,501,802

2,795,000

217,296,802

$

$

2002

$

$

2003

0.00%

283,979,601

-

283,979,601

Note: Chapter XI, Section 4 of the Charter of the City of Arvada: "The aggregate amount of bonds or other evidences of indebtedness shall not exceed three (3) percent of the actual value, as determined by the County Assessors of Jefferson County and

0.00%

234,666,063

-

234,666,063

Source: Jefferson and Adams County Assessors' Offices

Total net debt applicable to the limit as a percentage of debt limit

Legal debt margin

Total net debt applicable to limit

Debt Limit

$

$

0.00%

287,300,626

-

287,300,626

2004

$

$

0.00%

294,867,900

-

294,867,900

2005

Legal Debt Margin Calculation for Fiscal Year 2010 Actual Value $10,520,909,044 Debt limit (3.00% of actual value) 315,627,271 Debt applicable to limit: General obligation bonds 0 Less: Amount set aside for repayment of general obligation debt 0 Total net debt applicable to limit Legal debt margin 315,627,271

$

$

2006

0.00%

313,565,250

-

313,565,250

$

$

2007

0.00%

337,823,019

-

337,823,019

$

$

2008

0.00%

325,347,584

-

325,347,584

$

$

2009

0.00%

315,775,961

-

315,775,961

2010

0.00%

$ 315,627,271

-

$ 315,627,271

CITY OF 

ARVADA, COLORADO 


ARVADA, COLORADO 

CITY OF 

City of Arvada Pledged-Revenue Coverage Last Ten Fiscal Years

Year

Utility Service Charges

Less: Operating Expenses

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

22,948,000 21,174,000 19,116,000 20,405,000 20,075,000 35,876,000 27,144,000 24,695,000 17,759,000 19,815,000

11,301,000 11,212,000 11,569,000 11,262,000 12,519,000 18,140,000 13,481,000 14,455,000 14,625,000 15,099,000

Water Revenue Bonds Net Available Debt Service Revenue Principal Interest Coverage 11,647,000 9,962,000 7,547,000 9,143,000 7,556,000 17,736,000 13,663,000 10,240,000 3,134,000 4,716,000

2,925,000 2,795,000 1,145,000 1,195,000 1,250,000 1,300,000 1,360,000 1,415,000 1,540,000 1,550,000

1,117,221 1,791,521 1,207,383 408,721 713,999 946,425 959,164 1,054,494 944,004 697,288

2.88 2.17 3.21 5.70 3.85 7.90 5.89 4.15 1.26 2.10

Source: City of Arvada, Finance Department Note: Service charges include water sales, licenses and permit fees. Operating expenses include operations, administration & maintenance, and tap fees. Coverage represents the ratio of debt payments to net revenue avaliable. Sales and use tax bonds are backed by the generation of sales and use tax revenues.

126

Sales and Use Tax Bonds Sales Tax Increment 50,335,000 45,615,000 45,020,000 43,770,000 41,930,000 39,405,000 36,790,000 34,080,000 30,770,000 27,775,000

Debt Service Principal Interest 2,120,000 2,225,000 3,695,000 1,250,000 1,840,000 2,525,000 2,615,000 2,710,000 2,241,564 3,284,428

2,779,605 2,669,440 2,261,558 1,898,941 1,846,441 1,777,421 1,690,339 1,593,666 840,853 1,061,698

Coverage 10.27 9.32 7.56 13.90 11.37 9.16 8.55 7.92 9.98 6.39


ARVADA, COLORADO 

CITY OF 

Schedule of Debt Service Requirements Governmental Activities December 31, 2010

Sales and Use Tax Refunding and Improvement Revenue Bonds - Series 2003

Year 2010 2011 2012 2013 2014 2015 2016 2017 Totals

Principal 1,325,000 1,370,000 1,420,000 1,465,000 1,520,000 1,580,000 1,640,000 $10,320,000

Interest 377,906 334,844 288,606 238,906 185,800 128,800 65,600 $1,620,462

Total Payment 1,702,906 1,704,844 1,708,606 1,703,906 1,705,800 1,708,800 1,705,600 $11,940,462

Principal Balance 10,320,000 8,995,000 7,625,000 6,205,000 4,740,000 3,220,000 1,640,000 $ -

Sales & Use Tax Revenue Refunding Bonds - Series 2009

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 TOTALS

Principal 1,775,000 1,830,000 1,890,000 1,935,000 1,990,000 2,045,000 2,105,000 3,885,000 $17,455,000

Interest 552,525 499,275 435,225 387,975 339,600 279,900 218,550 155,400 $2,868,450

127

Total Payment 2,327,525 2,329,275 2,325,225 2,322,975 2,329,600 2,324,900 2,323,550 4,040,400 $20,323,450

Principal Balance 17,455,000 15,680,000 13,850,000 11,960,000 10,025,000 8,035,000 5,990,000 3,885,000 $ -


ARVADA, COLORADO 

CITY OF 

Schedule of Debt Service Requirements Business-Type Activities December 31, 2010

Water Enterprise Revenue Refunding Bonds - Series 2009

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TOTALS

Principal 1,630,000 1,680,000 1,730,000 1,760,000 1,805,000 1,860,000 1,915,000 2,010,000 2,090,000 2,175,000 $18,655,000

Interest* 634,600 585,700 535,300 500,700 456,700 402,550 346,750 251,000 170,600 87,000 $3,970,900

128

Total Payment 2,264,600 2,265,700 2,265,300 2,260,700 2,261,700 2,262,550 2,261,750 2,261,000 2,260,600 2,262,000 $22,625,900

Principal Balance 18,655,000 17,025,000 15,345,000 13,615,000 11,855,000 10,050,000 8,190,000 6,275,000 4,265,000 2,175,000 $ -


ARVADA, COLORADO 

CITY OF 

City of Arvada, Colorado Demographic and Economic Statistics Last Ten Calendar Years

Year

Population

Personal Income (in thousands of dollars)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

104,150 101,925 103,125 102,655 103,004 105,455 107,050 106,327 107,702 108,539

2,534,907 2,467,400 2,220,900 2,166,328 2,885,863 2,345,530 3,236,229 2,968,862 3,523,040 3,216,987

Per Capita Income

Median Age

School Enrollment

Unemployment Rate

24,339 24,208 21,536 21,103 28,017 22,242 30,231 27,922 32,711 29,639

36.0 37.5 37.2 37.2 37.2 37.2 37.2 39.8 39.4 39.4

19,295 18,999 18,495 18,434 17,488 18,286 18,064 19,469 19,624 19,409

4.10% 6.30% 6.90% 6.30% 5.70% 4.40% 4.30% 5.60% 8.10% 9.80%

Source: Denver Regional Council of Governments, Adams and Jefferson County School Districts, Arvada Ecomonic Development Department, and Real Estate Center Website. Note: Per Capita Income information was provided by the Arvada Economic Development Department, through the US Census Bureau, American Community survey in 2008 inflation adjusted dollars. Umemployement rate provided by CO Dept. of Labor & Employment

129


130

7 3

8 10 3 9

220 350

200 160 350 190

55,128

Total Employees

100.00%

92.77%

7.23%

0.36%

0.36% 0.29% 0.63% 0.34%

0.40% 0.63%

0.42%

1.53% 1.15% 0.56% 0.54%

3 9

350 190

53,782

50,064

3,718

1 2 4 5 6 8 7 10 8

900 643 310 300 230 200 220 175 200

100.00%

93.09%

6.91%

0.65% 0.35%

0.37%

0.41% 0.33%

0.37%

0.43%

1.67% 1.20% 0.58% 0.56%

Figure for 2010 consitutes annual average total of employed residents of Arvada (DoL&E stats are based on worker residency, not location of employment). Also, the former provider of total employment statistics no longer publishes data for Arvada, so bottom line figures **Total for Target for 2010 is an estimate

Source: City of Arvada, Economic Development Department and CO Department of Labor & Employment

51,140

3,988

8

6

230

200

1 2 4 5

845 633 310 300

% of Total City Employees Rank Employment

% of Total City Employees Rank Employment

Other Employers

Total Principal Employers

Sorin Group USA(formerly COBE Cardio) City of Arvada Sundyne Corporation Jefferson Ctr. For Mental Health Target** Pridemark Paramedic Serv. Inc. Home Depot Costco Super Target Sam's Club King Soopers #36 Kohl's Dept. Store Severn Trent Laboratories Mark VII Equipment Employers Unity Tarco Yenter Companies Talx Corporation Xcel Energy Wanco Inc Colorado Credit Union League New York Life Insurance Co Piper Electric Swinerton Builders Colorado Lutheran Home & Apts. King Scoopers #45 Minolta Business Systems Denver Instrument Company King Sooper #3 Sundstrand Fluid Handling King Sooper #22 Glover United Masonry W.L. Contractors Cub Foods

Employer

###

2001

53,822

50,007

3,815

350

800 650 310 300 220 210 220 200 180 175 200 3

1 2 4 5 6 7 6 8 9 10 8

100.00%

92.91%

7.09%

0.65%

0.37%

0.33% 0.33%

1.49% 1.21% 0.58% 0.56% 0.41% 0.39% 0.41% 0.37%

% of Total City Employees Rank Employment

2003

###

54,108

50,700

3,408

160

180 175

800 653 290 300 220 210 220 200

10

8 9

1 2 4 3 5 6 5 7

100.00%

93.70%

6.30%

0.30%

0.33% 0.32%

1.48% 1.21% 0.54% 0.55% 0.41% 0.39% 0.41% 0.37%

% of Total City Employees Rank Employment

City of Arvada Principal Employers Current Year and Nine Years Ago

55,126

51,521

3,605

780 660 320 300 220 210 200 200 200 180 175 160

1 2 3 4 5 6 7 7 7 8 9 10

100.00%

93.46%

6.54%

1.41% 1.20% 0.58% 0.54% 0.40% 0.38% 0.36% 0.36% 0.36% 0.33% 0.32% 0.29%

% of Total City Employees Rank Employment

###

CITY OF 

ARVADA, COLORADO 


131

5 4 6 7 8 9 10

9

220 300 200 180 175 160 157

160

53,837 56,888

Total Employees

3,051

2 1 3

450 699 350

100.00%

94.64%

5.36%

0.28%

0.28%

0.32% 0.31% 0.28%

0.35%

0.39% 0.53%

0.79% 1.23% 0.62%

57,940

54,817

3,123

9 8

7 8 10

160 150 140

143 150

6

4 5 5

2 1 3

180

275 200 200

450 705 370

100.00%

94.61%

5.39%

0.25% 0.26%

0.28% 0.26% 0.24%

0.31%

0.47% 0.35% 0.35%

0.78% 1.22% 0.64%

% of Total City Employees Rank Employment

% of Total City Employees Rank Employment

Total Employed by Other Employers

Total Employed by Principal Employers

Sorin Group USA(formerly COBE Cardio) City of Arvada Sundyne Corporation Jefferson Ctr. For Mental Health Target** Pridemark Paramedic Serv. Inc. Home Depot Costco Super Target Sam's Club King Soopers #36 Kohl's Dept. Store Severn Trent Laboratories/Test America Mark VII Equipment Employers Unity Tarco Yenter Companies Talx Corporation Xcel Energy Wanco Inc Colorado Credit Union League CCW Products Piper Electric Swinerton Builders Colorado Lutheran Home & Apts. King Scoopers #45 Minolta Business Systems Denver Instrument Company King Sooper #3 Sundstrand Fluid Handling King Sooper #22 Glover United Masonry W.L. Contractors Cub Foods

Employer

2007

###

7

9 10

160

145 140

57,381

54,170

3,211

8

10

6 7

4 5 5

2 1 3

150

140

175 160

275 200 200

389 707 370

100.00%

94.40%

5.60%

0.24%

0.25%

0.28%

0.26%

0.24%

0.30% 0.28%

0.48% 0.35% 0.35%

0.68% 1.23% 0.64%

% of Total City Employees Rank Employment

2008

54,097

51,284

2,813

173

180 175

220 275 207 212

350 691 330

10

8 9

5 4 7 6

2 1 3

100.00%

94.80%

5.20%

0.32%

0.33% 0.32%

0.41% 0.51% 0.38% 0.39%

0.65% 1.28% 0.61%

% of Total City Employees Rank Employment

2009

City of Arvada Principal Employers Current Year and Nine Years Ago (continued)

52,222

49,463

2,759

145

186

155

220 268 195 225

351 691 323

10

8

9

6 4 7 5

2 1 3

100.00%

94.72%

5.28%

0.28%

0.36%

0.30%

0.42% 0.51% 0.37% 0.43%

0.67% 1.32% 0.62%

% of Total City Employees Rank Employment

2010

CITY OF 

ARVADA, COLORADO 


ARVADA, COLORADO 

CITY OF 

City of Arvada, Colorado Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

City Manager's/Clerk's Office Community Development Cultural Services Economic Development Parks, Golf, and Hospitality Finance/Risk Management Judicial/Legal Information Technology Human Resources Public Works Public Safety

17.75 23.25 38.75 4.00 69.75 42.25 18.75 19.00 8.00 182.00 209.75

19.75 23.25 38.75 4.00 70.75 41.75 19.75 19.00 8.00 188.00 209.75

19.75 23.25 39.00 4.00 71.75 42.75 19.75 22.00 8.00 189.00 210.75

19.75 23.00 39.00 4.00 72.00 42.75 18.75 22.00 9.00 191.00 211.75

18.75 23.00 39.00 4.00 71.00 46.25 18.75 23.00 9.00 194.50 212.75

18.75 23.00 41.10 4.00 71.00 46.25 18.75 26.00 9.00 196.25 244.75

18.75 26.00 41.00 4.00 72.00 46.25 19.00 26.00 9.00 198.50 244.75

18.75 26.00 41.00 5.00 72.00 43.25 21.00 29.00 9.00 202.75 239.00

17.00 26.00 40.00 5.00 74.00 43.25 21.00 29.00 9.00 205.25 236.40

17.00 26.00 39.00 4.00 72.00 42.75 22.00 29.00 9.00 200.25 230.40

Total

633.25

642.75

650.00

653.00

660.00

698.85

705.25

706.75

705.90

691.40

Function/program

Source: City of Arvada Budget Book 2011-2012 Note: Figures represents budgeted full and part-time benefited employees.

132


ARVADA, COLORADO 

CITY OF 

City of Arvada, Colorado Operating Indicators by Function/Program Last Ten Fiscal Years

2001

2002

2003

Fiscal Year 2005 2006

2004

2007

2008

2009

2010

Function/Program General government Building permits issued Police Physical arrests Parking violations Traffic violations Other public works Street resurfacing (miles) Potholes repaired Parks and recreation Athletic field permits issued Water Consumers (Tap) New connections Leaks Average daily consumption (thousands of gallons)

5,478

6,217

6,770

5,414

4,692

5,077

4,619

5,852

14,582

8,552

3,019 754 10,018

3,228 386 11,653

3,238 796 10,807

3,134 564 10,830

3,148 292 9,296

3,112 473 9,062

3,005 489 10,385

3,067 458 10,448

2,655 314 11,513

2,373 442 10,366

14

4 2,409

17 8,858

6 1,343

8 2,716

18 6,723

12 ---

10

10

---

---

9 ---

---

19,027

19,050

14,850

20,560

21,111

21,651

23,356

22,062

21,989

20,830

32,200 333 72 17,800,000

32,930 283 95 17,500,000

33,810 410 79 17,500,000

34,266 297 61 17,500,000

34,548 324 54 15,200,000

34,368 300 48 17,900,000

34,528 178 66 16,000,029

35,082 131 66 16,300,000

35,104 74 37 13,761,000

35,100 167 47 15,828,849

Source: City of Arvada Building Department, Police Department, Street Department, Parks Department, and Water Department.

Note: Building permits increased in FY 2009 due to a major hailstorm. A major focus and increased funding was placed on pavement preservation/management. This allowed our streets crew to focus more on the entire city's infrastructure. As a result the number of street resurfacing and pothole repairs was more than double over the prior year. An unusual wet summer caused a decrease in the average daily water consumption in 2009.

133


ARVADA, COLORADO 

CITY OF 

City of Arvada, Colorado Capital Assets Statistics by Function/Program Last Ten Fiscal Years

Function/Program Police Stations Patrol units Fire Protection Districts Other public works Streets (miles) Parks and recreation Square Miles (City of Arvada) Playgrounds Tennis/basketball Courts Baseball/softball diamonds Soccer/football fields Community centers/Sport complexes Water Water mains (miles) Fire hydrants Wastewater Sanitary sewers (miles) Storm sewers (miles) Treatment capacity (millions of gallons)

2001

2002

2003

2004

2005

Fiscal Year 2006

2007

2008

2009

2010

1 106 2

1 106 2

1 106 2

1 106 2

1 106 3

1 107 3

1 108 3

1 82 3

1 79 3

1 79 3

385

392

392

392

398

401

404

404

411

413

33 47 71 40 29 20

35 48 73 40 35 20

35 48 71 11 9 20

35 48 75 26 24 20

36 50 71 26 33 19

36 55 72 25 41 21

36 55 71 35 25 21

36 57 72 41 27 19

36

36

72 41 27 19

75 41 27 19

415 4,293

418 4,388

420 4,442

542 4,547

560 4,606

540 4,640

542 4,676

550 4,639

551 4,650

568 4808

370 167 3,713

370 102 3,130

372 107 3,187

391 127 3,172

434 125 3,104

392 144 3,160

392 136 3,401

396 140 3,430

400 144 3,256

408 145 3,295

Source: City of Arvada, Police, Parks & Rec, Engineering Departments

134

CAFR for Year Ending 12/31/10  

Year ending 2010 CAFR

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