2011 CAFR

Arvada, Colorado Comprehensive Annual Financial Report

For the Year Ended December 31, 2011

CITY OF

ARVADA, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Year Ended December 31, 2011

REPORT ISSUED BY:

DEPARTMENT OF FINANCE VICTORIA A. RUNKLE, DIRECTOR

ARVADA, COLORADO

CITY OF

COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2011

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 ......................................................... 9-10 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 Funds Financial Statements Statement of Net Assets .......................................................................................... 34 Statement of Revenues, Expenses and Changes in Fund Net Assets ................... 35 Statement of Cash Flows......................................................................................... 36 Fiduciary Funds 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, 2011

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 Grants Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................................................... 84 Bond Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................................... 85 Debt Service Fund – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................................................... 86 Enterprise Funds Water Fund – Budgetary Comparison Schedule ..................................................... 88 Wastewater Fund – Budgetary Comparison Schedule ........................................... 89 Stormwater Fund – Budgetary Comparison Schedule ............................................ 90 Golf Fund – Budgetary Comparison Schedule ........................................................ 91 Food Service Fund – Budgetary Comparison Schedule ......................................... 92 Internal Service Funds Combining Statement of Net Assets ........................................................................ 94 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ......................................................................................................... 95 Combining Statement of Cash Flows ...................................................................... 96 Insurance Service Fund – Budgetary Comparison Schedule.................................. 97 Computer Fund – Budgetary Comparison Schedule ............................................... 98 Print Shop Fund – Budgetary Comparison Schedule .............................................. 99 Vehicle Fund – Budgetary Comparison Schedule .................................................. 100 Building Fund – Budgetary Comparison Schedule ................................................. 101 ii

CITY OF

ARVADA, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2011

TABLE OF CONTENTS Section

Page Fiduciary Fund Agency Fund – Statement of Changes in Assets and Liabilities ............................ 103 Local Highway Finance Report .............................................................................. 105-106

STATISTICAL SECTION Financial Trends Net Assets by Component ................................................................................................... 108 Changes in Net Assets (expenses) ..................................................................................... 109 Changes in Net Assets (revenues) ...................................................................................... 110 Fund Balances, Governmental Funds ................................................................................. 111 Changes in Fund Balances, Governmental Funds .............................................................. 112 Revenue Capacity Direct and Overlapping Property Tax Rates ........................................................................ 113 Sales and Use Tax Revenue ........................................................................................... 114-115 Principal Property Tax Payers ......................................................................................... 116-117 Property Tax Levies and Collections ................................................................................... 118 Assessed Value and Actual Value of Taxable Property ...................................................... 119 Debt Capacity Ratios of Outstanding Debt by Type .................................................................................... 120 Ratios of General Bonded Debt Outstanding ...................................................................... 121 Direct and Overlapping Governmental Activities Debt ........................................................ 122 Legal Debt Margin Information ............................................................................................ 123 Pledged-Revenue Coverage ............................................................................................... 124 Schedule of Debt Service Requirements – Governmental Activities................................... 125 Schedule of Debt Service Requirements – Business-type Activities................................... 126 Demographic and Economic Information Demographic and Economic Statistics ................................................................................ 127 Principal Employers ......................................................................................................... 128-129 Operating Information Full-time Equivalent City Government Employees by Function/Program ............................ 130 Operating Indicators by Function/Program .......................................................................... 131 Capital Asset Statistics by Function/Program ...................................................................... 132

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CITY OF

ARVADA, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2011

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Introductory Section

INTRODUCTORY

SECTION

LETTER OF TRANSMITTAL

GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF ACHIEVEMENT

CITY OFFICIALS

ORGANIZATIONAL CHART

FINANCE DEPARTMENT FACSIMILE: 720-898-7846  TDD: 720-898-7869 PHONE: 720-898-7120 June 25, 2012 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, 2011. 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, wastewater and stormwater 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 106,433.

THE ECONOMIC FACTORS OF 2011 Officially, the Great Recession began in December of 2007 and ended in June of 2009. As we all know, the end of this recession was quiet. It will take many state and local governments a few years to return to pre-2007 revenue levels.

Having stated that, the City of Arvada fared generally better in 2011 than in 2010 and the City’s revenues are beginning to reflect 2007 levels. This means, like many citizens and businesses, the city’s revenues have remained flat or were lower than they were in 2007 and 2008.

P.O. BOX 8101



8101 RALSTON ROAD



ARVADA, COLORADO



80001-8101

City of Arvada Letter of Transmittal Comprehensive Annual Financial Report Page 2 As the nation begins to slowly recover from the Great Recession, the City experienced small, but positive increases in various revenue sources. Sales tax receipts – which pay for over 50 percent of our general expenditures – increased by 3.34 percent over 2010 levels. Automobile sales were higher nationally and locally, generating over $5 million for the City, which is an 11 percent increase above 2010. Building activity was also higher with the permitting of a 360 multi-family project in the Kipling Ridge area.

The City has responded to the changing environment in many ways. The one major response is to be ever-vigilant on ways to lower spending. In 2011 the City saved over $2 million by leaving positions vacant as employees left for different opportunities. Departments saved over $900,000 in various line items. Between 2010 and 2011, these types of savings resulted in providing monies for major capital projects. This is the major story of 2011.

Through savings and analysis of all available cash reserves, over $10 million was identified for one-time capital expenditures. The Council allocated portions of the available monies over a series of meetings. Between May and January 2012 the Council allocated over $13.475 million for additional projects above the $7 million we dedicated for capital maintenance. The projects included arterial fencing, setting aside over $4.15 to for new rail stations and $2 million in additional street capital maintenance. The latter ensures over $5 million will be spent on paving materials for our streets.

Capital investment was the highlight of the 2011 activity. The City began the design for a major new bridge at Garrison Street which, in turn, created the need to move and build a new, larger and much improved indoor soccer and other sport facility in partnership with the Apex Recreational District. The City dedicated approximately $2,000,000 to help with this move and construction. This bridge project also produced an opportunity to redevelop the entire park area of Ralston Creek in the core of the City. This also generated a movement to conduct a comprehensive plan for both transportation and other park needs in the Ralston Road corridor. One additional project designed with the Jefferson School District is the redesign of a large barren field beside the K – 8 school, also in the City’s core, into an active play area.

These projects join other major investments. The City purchased land for new parks in the central and east neighborhoods of the City and a major skate park was nearly completed with a cost of over $2,000,000. The excitement of the new skate park was felt as young people from all over the region started using it before its “official” opening. The City joined a neighborhood in the development of the first park that will include growing of fruit trees and vegetables for purchase.

The City began a neighborhood grant program that provided over $90,000 for small neighborhood-identified needs.

Neighborhoods had to match their request with sweat equity, with the outcome being neighborhood identification signs, neighborhood meeting events and landscaping projects.

This past year was a significant year in producing results in the City’s mission of “Continuing to Build a Great Community.”

Through everyday efforts of park and street maintenance, property and building code enforcement and public safety, Arvada has been able to retain service levels and add amenities even as the country has faced one of the most difficult financial periods in over 50 years. With the monies set aside, continued focus on “Taking Lasting Care” of the facilities we have and investment in the Ralston Fields, west side and transit areas, the City should easily be able to continue to be a great community for all families.

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 retailers: Kohl’s, Costco, Sam’s Club, K-Mart and Target. All of these businesses continued to do well in 2011, indicating that residents continue to look towards value for their purchasing power.

In late 2011, one of the City’s major retail areas had a major renovation of a Kroger type of business. Another area began to attract a number of fast-food and fast-casual restaurants. Both of these areas are now experiencing significant retail sales. We expect this growth to continue into the future, increasing the City’s sales tax base.

City of Arvada Letter of Transmittal Comprehensive Annual Financial Report Page 3 The City was also able to secure a Wal-Mart Marketplace in a space vacated by another major grocery store over three years ago. The Marketplace may not increase the total grocery sales in our City, as we expect to see shifting between various stores. It will, however, create activity in a shopping area that is struggling due to the major tenant closing.

In addition to the new multi-housing units, we have begun to have some growth in single family housing permits. This started late in 2011. The homes range from $200,000 to $500,000, but the builders have started the basic infrastructure required to build the 2,000 homes they expect to have completed by 2025.

There are three major new economic engines for the City of Arvada for the next decade. The first is the redevelopment of an area referred to as “Ralston Fields.” This area is comprised of aging shopping centers, and sales tax revenue has been decreasing for the past seven years. Over 30 years ago the City created a separate Urban Renewal Authority to help with the development and redevelopment of areas. It is clear the economy is slowly recovering as the Urban Authority has more interest in redeveloping the Ralston Fields area. Also, the City has made major park and flood mitigation improvements adjacent to the commercial areas. These investments will improve the area for both the private sector and the residents. Finally, the City is beginning to have discussions about further partnership in developing a few more amenities to the area to encourage more commercial growth.

The second noteworthy economic change will be the opening of the three rail stations in our City. The City has set aside over $8 million dollars to ensure the commuter experience is very positive. The changes include altering roads for access, adding money for amenities and purchasing property for parking requirements. In the short term, the economic benefit will be derived from the construction work to our restaurants and other amenities. In the long term, we have already seen major multi-housing being built at one of the stations. We expect more changes to occur, adding people to use our businesses.

The final significant investment that will have long-term implications is the completion of the Denver Beltway. The final 10 miles is between Broomfield County, Jefferson County and the City of Arvada. These three entities have created a joint Public Highway Authority to determine if a public private partnership (P3) can be created to complete this integral piece of the regional transportation system. In 2011, a great deal of work was completed to increase the wildlife area in a positive approach for the land already dedicated for the transportation corridor. Discussions occurred with various entities about connectivity and various challenges. This is the last piece of a large transportation project that would connect I-25 to I-70 west to the mountains.

Overall, we continue to see small signs of an improving economy. We believe the investment in basic infrastructure and keeping our focus on the three prime areas of economic growth will enable the city to continue the concept of growing the City at a sustainable rate.

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.

City of Arvada Letter of Transmittal Comprehensive Annual Financial Report Page 4 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 2012 budget. Appropriations for fiscal 2012 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 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, 2011.

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, 2010. The City of Arvada has received this award for 27 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 go 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, 2011

City Officials Marc Williams Mayor (Term expires 2015) Don Allard Councilmember – At-Large (Term expires 2013) Bob Fifer Councilmember – At-Large (Term expires 2015) Rachel Zenzinger Mayor Pro Tem Councilmember – District 1 (Term expires 2013) Mark McGoff Councilmember – District 2 (Term expires 2015) Shelley Cook Councilmember – District 3 (Term expires 2013) Bob Dyer Councilmember – District 4 (Term expires 2015)

City Manager and Key Staff Mark G. Deven Michele Hovet William Ray George Boyle Christopher K. Daly Michael Elms Hazel Hartbarger Ron Czarnecki Robert Manwaring Linda Haley Maureen Phair Gordon Reusink Victoria A. Runkle Clark Johnson James Sullivan Don Wick Chris Koch Vicky Reier

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

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CITY OF

ARVADA, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2011

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CITY OF

ARVADA, COLORADO

COMPREHENSIVE ANNUAL FINANCIAL REPORT December 31, 2011

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SECTION

REPORTS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

MANAGEMENT’S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

Financial Section

FINANCIAL

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

CliftonLarsonAllen LLP www.cliftonlarsonallen.com

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 City of Arvada as of and for the year ended December 31, 2011, 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, 2011, 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 25, 2012 on our consideration of 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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Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and schedules of funding progress on pages 11 through 22 and 71 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. 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. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

The introductory section and statistical sections 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.

a Greenwood Village, Colorado June 25, 2012

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MANAGEMENT’S DISCUSSION AND ANALYSIS

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

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, 2011. 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 Authority 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.

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CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

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 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.

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CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

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.

Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government financial position.

At the close of December 31, 2011, the City’s assets exceeded liabilities by $650,427,000. The following summaries of net assets and changes in net assets are presented for the current year and the previous year in comparison format.

13

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Statement of Net Assets The following table reflects the condensed Statement of Net Assets: City of Arvada Statement of Net Assets December 31, 2011 (in thousands) Governmental Activities 2011

2010

2011 $

2011

2010

$ 138,678

90,543

$ 229,995

$ 229,221

266,315

225,377

219,525

500,098

485,840

3,650

5,984

166

184

3,816

6,168

Total assets

418,307

410,977

315,602

310,252

733,909

721,229

Other liabilities

23,081

19,509

4,235

4,595

27,316

24,104

Long-term liabilities

39,150

43,016

17,016

18,940

56,166

61,956

Total liabilities

62,231

62,525

21,251

23,535

83,482

86,060

234,874

222,197

206,768

198,953

441,642

421,150

25,837

20,156

1,866

-

27,703

20,156

95,365 356,076

106,099 $ 348,452

85,717 $ 294,351

87,764 $ 286,717

181,082 $ 650,427

193,863 $ 635,169

Other non-current assets

90,059

2010

274,721

Capital assets

$

Total Primary Government

139,936

Current and other assets

$

Business-type Activities

Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets

$

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 (66 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 $25,837,000 (7 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $95,365,000 or (27 percent), may be used to meet the City’s ongoing obligations to its citizens and creditors.

The City’s total net assets increased by $15,258,000 during the current fiscal year. This is due to an increase in the governmental activities of $7,624,000 and an increase in the business-type activities of $7,634,000. The increase is primarily due to contributed capital from developers, increases in user fees that will be used for current and future capital projects, increases in reserve funds that will be used for future replacements of vehicles, computers and buildings and line item budgetary savings.

14

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

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, 2011 (in thousands) Governmental Activities 2011

Business-type Activities

2010

2011

Total Primary Government

2010

2011

2010

Revenues Program revenues: Charges for services

$

15,890

$

15,313

$

37,054

$

35,697

$

52,944

$

51,010

Operating grants and contributions

9,218

11,790

200

64

9,418

11,854

Capital grants and contributions

6,470

180

6,519

2,584

12,989

2,764

General revenues: 50,996

50,259

-

-

50,996

50,259

Property & Ownership taxes

4,953

4,961

-

-

4,953

4,961

Other taxes and fees

4,648

4,761

-

-

4,648

4,761

Interest

1,602

1,234

1,148

894

2,750

2,128

471

3,119

87

84

558

3,203

94,248

91,617

45,008

39,323

139,256

130,940

Sales and use taxes

Other Total revenues Expenses General government

$

14,280

$

12,930

$

-

$

-

$

14,280

$

12,930

Public safety

23,989

22,999

-

-

23,989

22,999

Public works *

25,631

24,483

-

-

25,631

24,483

7,121

7,001

-

-

7,121

7,001

10,613

10,004

-

-

10,613

10,004

Human service

4,420

4,734

-

-

4,420

4,734

Interest

1,501

1,579

-

-

1,501

1,579

Water

-

-

19,544

19,150

19,544

19,150

Wastewater

-

-

9,883

9,341

9,883

9,341

Stormwater

-

-

1,457

1,279

1,457

1,279

Golf

-

-

3,799

3,871

3,799

3,871

Food

-

-

1,760

1,614

1,760

1,614

87,555

83,730

36,443

35,255

123,998

118,985

6,693

7,887

8,565

4,068

15,258

11,955

931

1,381

Increase in net assets

7,624

9,268

7,634

Net assets, beginning

348,452

335,469

-

3,715

$ 356,076

$ 348,452

Parks and recreation * Culture

Total expenses Increase (decrease) in net assets before transfers Transfers

Prior period adjustments Net assets, ending

(931)

(1,381)

-

-

2,687

15,258

11,955

286,717

284,030

635,169

619,499

-

-

-

3,715

$ 294,351

$ 286,717

$ 650,427

$ 635,169

* A re-classification of depreciation expense was made in 2011 from Parks to Public Works. This was also done for 2010 for comparison purposes

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, 2011 reflects net assets increasing $15,258,000. Revenues and expenses graphs are presented below to enhance the reader’s understanding of the current year activities.

15

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Governmental Activities Governmental Activities increased Arvada’s Net Assets by $7,624,000

16

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Business-type Activities Business-type Activities increased Arvada’s Net Assets by $7,634,000

2011 Expenses and Program Revenues Business-Type Activities $25,000

$20,000

Expense

Revenue

$15,000

$10,000

$5,000

$Water

Wastewater Stormwater

Golf

17

Food

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Governmental activities. Governmental activities increased the City’s net assets by $7,624,000. Key elements of this change are due to the following: • • • • • •

Capital contributions from developers amounted to $3,594,000 Other capital grants in the form of lands dedicated and park development fees related to new housing developments were up $1,846,000 Sales and Use tax collections were up $737,000 Interest revenues were up $368,000 Charges for Services were up $577,000 Transfers out were down $450,000 due to the net of the decreased amount transferred to Capital Projects and the increased amount transferred to the Arvada Center

Business-type activities. Business-type activities increased the City’s net assets by $7,634,000. Key elements of this increase are due to the following: • •

•

Capital contributions from developers.

The budgeting strategy for 2011 included measures so the revenues would exceed expenses in the Wastewater and Stormwater Funds for future large capital needs. There was also a very large Stormwater project that was not completed in 2011. These funds will be carried over into the 2012 budget The Golf Course Fund was able to reduce expense and increase revenues enough to be “profitable” in 2011.

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 City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of year.

In 2011, the City implemented The Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This Statement defines the different types of fund balances that a governmental entity must use for financial reporting purposes. Per GASB 54, as of December 31, 2011, fund balances of governmental funds are classified as follows: Non-spendable – amounts that cannot be spent either because they are not spendable in form or because they are legally or contractually required to be maintained intact. The City had $908,000 in nonspendable resources.

Restricted – amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or law and regulations of other governments; or through constitutional provisional or enabling legislations. The City had $25,878,000 in restricted resources.

Committed – amounts that are subject to a purpose constraint imposed by a formal action of the City Council. The City Council is the highest level of decision-making authority for the City. Commitments may be established, modified or rescinded only through resolutions and ordinances approved by the City Council. The City had $24,279,000 in committed resources.

18

ARVADA, COLORADO

CITY OF

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Assigned – amounts that are for an intended use established by the City, but that are not considered restricted or committed. The purpose of the assignment must be narrower than the purpose of the General Fund. The City had $33,085,000 in assigned resources.

Unassigned – represents the remaining balance for the City’s General Fund. The City had $17,947,000 in unassigned resources.

The General Fund is the main operating fund of the City. At December 31, 2011, the non-spendable fund balance was $607,000, the restricted fund balance was $1,780,000, the assigned fund balance was $2,731,000 and the unassigned fund balance was $17,947,000. The total fund balance, as restated, increased $1,828,000 in 2011 to $23,065,000. This was primarily due to some revenues increasing over budget, specifically building use tax, building permit fees and sales tax, and savings in personnel costs related to vacancies and unspent project funds. These project funds will be carried over and spent in 2012.

The Community Development Fund is a major fund of the City. At December 31, 2011, the restricted fund balance was $1,448,000 and the assigned fund $5,650,000. Total fund balance increased $4,000 in 2011 to $7,098,000. This was primarily due to savings in program related costs and personnel.

The Arvada Center Fund is a major fund of the City. At December 31, 2011, the non-spendable fund balance was $228,000, the restricted fund balance was $292,000 and the assigned fund balance was $69,000. The total fund balance decreased $28,000 in 2011 to $589,000. This was primarily caused by increases in production costs and overhead.

The Parks Fund is a major fund of the City. At December 31, 2011, the non-spendable fund balance was $50,000, the restricted fund balance was $203,000 and the assigned fund balance was $3,794,000. The total fund balance increased $217,000 in 2011 to $4,047,000. This was primarily due to savings in expenditure lines, specifically personnel, temporary wages and utilities.

The General Capital Projects Fund is another major fund of the City. At December 31, 2011, the restricted fund balance was $424,000, the committed fund balance was $24,279,000 and the assigned fund balance was $16,299,000. The total fund balance decreased $4,303,000 in 2011 to $41,002,000.

This decrease was budgeted and should continue for the next few years as many large multi-year projects are underway. Examples of these are the Garrison Street Park and Bridge project, 2-3 year time period, and the East and South Central Park projects, three-year time periods and the Arvada K-12 Park Project.

The Construction Fund is another major fund of the City. At December 31, 2011, the restricted fund balance was $1,000 and the assigned fund balance was $4,267,000. The total fund balance decreased $9,000 in 2011 to $4,268,000. The reduction in fund balance was caused by a final arbitrage calculation performed in 2011.

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

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Table of Unrestricted Net Assets Change in Net Assets - Proprietary Funds (in thousands) Unrestricted Unrestricted Net

Net Assets for

Assets at 12/31/11

Year ended 12/31/10

Major Enterprise Funds Water

$

58,524

$

59,347

Wastewater

10,740

10,204

Stormwater

10,953

10,788

Golf

206

20

Food

758

904

81,181

81,263

Total of major enterprise funds Internal service funds Total proprietary funds

22,010 $

103,191

23,473 $

104,736

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 $1,216,000 unrestricted net asset balance. The total change in net assets for AEDA was an increase of $155,000.

Budgetary Highlights General Fund. The increase from the original budgeted expenditures to the final budget amounted to $4,199,000 and can be summarized as follows: • • • • • • • •

Added $2,600,000 for additional funding related to the Parkway Added $500,000 for funding of small business revolving loan and grants programs Added $425,000 for an additional operating transfer to the Arvada Center Added $200,000 for and Olde Town TOD Study nd Added $194,000 for costs related to an overlay project on 72 Ave Added $185,000 for the final stages of the Energy Efficiency and Conservation Block Grant Program Added $24,500 for additional funding related to the annual audit Other appropriations of $70,500 for various projects and grants

There was one significant variance between the final amended budget and the actual results. This was related to the spending of the Parkway funds. Over $2,500,000 was remaining at the end of 2011. These funds will be requested to carry over into 2012 to be spent as part of the ongoing efforts related to the Parkway.

20

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

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, 2011 amounted to $500,098,000 (net of accumulated depreciation). This investment in capital assets includes land, water rights, buildings and improvements, equipment and infrastructure.

City of Arvada Capital Assets (net of depreciation) as of December 31, 2011 (in thousands)

Land and water rights

Governmental

Business-type

Total Primary

Activities

Activities

Government

$

Infrastructure Construction in progress

51,587

$

35,400

$

86,987

127,896

6,958

134,854

16,360

2,414

18,774

Buildings

18,103

7,349

25,452

Improvements other than buildings

53,910

172,103

226,013

6,865

1,153

8,018

Equipment & Vehicles Total capital assets

$

274,721

$

225,377

$

500,098

Major capital improvements during this fiscal year include the following: Governmental Activities • Completion of the Arvada Skate Park • Completion of the additional Rail Road Crossing systems • Completion of Skyline Estate Park • Completion of Ralston Creek Torrey St Park • Completion of an additional phase of the Stenger Sports Complex • Completion of phase 2 of the Beeman Park • Completion of the Creekside Park Trail • Completion of the Little Dry Creek Playground • Completion of the Quaker Acres Park Proprietary Activities • Purchase of the water tower site at Arvada Ridge • Completion of the Pierce Street outfall project • Completion of the permanent bathrooms at Lake Arbor Golf Course • On-going maintenance and replacement of water, sewer and stormwater lines Additional information of the City’s capital assets can be found in Note 3.B on pages 56-57 of this report.

21

CITY OF

ARVADA, COLORADO

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2011

Long-term debt. At the end of December 31, 2011, the City had total debt outstanding of $58,361,000.

Of this amount, $41,700,000 represents bonds secured by specified revenue sources (i.e. sales tax revenue bonds and water revenue bonds). The remaining $16,661,000 represents capital leases of $1,181,000, Certificates of Participation of $13,935,000, and an OPEB liability of $1,545,000.

City of Arvada Outstanding Debt as of December 31, 2011 (in thousands)

Revenue bonds

Governmental

Business-type

Total Primary

Activities

Activities

Government

$

Certificates of Participation OPEB Capital leases Total outstanding debt

$

24,675

$

17,025

$

41,700

13,935

-

13,935

1,545

-

1,545

534

647

1,181

40,689

$

17,672

$

58,361

Additional information on the City’s long-term obligations can be found in Note 3.E on pages 59-62 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

STATEMENTS FINANCIAL BASIC

Basic Financial Statements

CITY OF

ARVADA, COLORADO

STATEMENT OF NET ASSETS December 31, 2011 (in thousands) Governmental Activities ASSETS Cash and investments Restricted cash Taxes receivable Accounts receivable, net of allowance for uncollectibles Accrued interest Internal balances Inventories Prepaid costs Notes Receivable – non-current Unamortized bond issuance costs Property available for sale Investment in LLC Deposit Capital assets Land, water rights and construction in progress Other capital assets, net Total capital assets Total assets LIABILITIES Accounts payable Contracts payable Accrued interest payable Unearned revenue Long-term liabilities Due within one year: Bonds and notes payable Claims payable Certificates of Participation 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: Nonspendable endowment Debt Service Emergencies Letter of Credit Scholarships & Grants/Donor Conservation Trust Lands Dedicated Drainage CDBG Law Enforcement/Seizure Unrestricted

$

124,701 1,645 10,767

Primary Government Businesstype Activities

$

79,971 -

204,672 1,645 10,767

4,652 357 4,536 394 149 166 -

10,503 706 964 738 3,047 769 -

110 865 508 5,814 2,000 80

714 2 12 -

67,947 206,774 274,721 418,307

37,814 187,563 225,377 315,602

105,761 394,337 500,098 733,909

3 3 15,614

1,450

9,539 162 5,637

1,258 496 109 130

10,797 496 271 5,767

939 3,974

34 200

3,302 1,486 845 102 2,008

1,784 134 324

5,086 1,486 845 236 2,332

8

-

22,076 13,090 432 1,545 2,007 62,231

16,178 513 325 21,251

38,254 13,090 945 1,545 2,332 83,482

2,762 9 7,692

234

234,874

206,768

441,642

3

-

121 294 3,023 36 61 2,938 3,584 1,984 1,427 12,369 95,365 356,076

1,866 85,717 294,351

121 2,160 3,023 36 61 2,938 3,584 1,984 1,427 12,369 181,082 650,427

15 7,904 7,922

1,216 1,216

5,851 349 (4,536) 570 589 3,047 603 -

$

Component Units AURA AEDA

Total

$

$

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

23

$

$

2,261 3,973

$

$

722 -

CITY OF

ARVADA, COLORADO

STATEMENT OF ACTIVITIES Year Ended December 31, 2011 (in thousands)

Expenses FUNCTIONS/PROGRAM ACTIVITIES: Primary Government: Governmental activities: General government $ 14,280 Public safety 23,989 Public works 25,631 Parks and recreation 7,121 Culture 10,613 Human services 4,420 Interest 1,501 Total governmental activities 87,555 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

$

5,333 1,322 2,038 1,799 5,156 242 15,890

Program Revenues Operating Capital Grants Grants and And ContriContributions butions

$

763 17 3,142 1,240 4,056 9,218

$

Total

5,619 851 6,470

$ 11,715 1,339 2,038 5,792 6,396 4,298 31,578

19,544 9,883 1,457 3,799 1,760 36,443

18,221 10,336 3,176 3,804 1,517 37,054

200 200

3,673 1,239 1,607 6,519

21,894 11,575 4,983 3,804 1,517 43,773

123,998

52,944

9,418

12,989

75,351

$ $

4,608 1,021 5,629

$ $

245 245

$ $

1,162 1,162

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

24

$ $

-

$ $

245 1,162 1,407

CITY OF

ARVADA, COLORADO

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

$

(2,565) (22,650) (23,593) (1,329) (4,217) (122) (1,501) (55,977)

$

-

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

7,330

-

$

4,953 50,996 4,648 1,602 471 931 63,601 7,624 348,452 $ 356,076

$

$

$

$

2,350 1,692 3,526 5 (243) 7,330

(55,977)

$

-

$

-

1,148 87 (931) 304 7,634 286,717 $ 294,351

(2,565) (22,650) (23,593) (1,329) (4,217) (122) (1,501) (55,977)

$

-

Component Unit AEDA

$

-

2,350 1,692 3,526 5 (243) 7,330

-

-

(48,647)

-

-

$ $

-

4,953 50,996 4,648 2,750 558 63,905 15,258 635,169 $ 650,427

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

25

Component Unit AURA

$ (4,363) $ (4,363)

$

$

$

$

4,306 526 42 4,874 511 7,411 7,922

$

$

141 141

14 14 155 1,061 1,216

ARVADA, COLORADO

CITY OF

GOVERNMENTAL FUNDS BALANCE SHEET December 31, 2011 (in thousands)

General Fund

Community Development Fund

Arvada Center

Primary Government General Capital Projects Construction Fund Fund Parks

$

$

$

$

Other Governmental Funds

Total Governmental Funds

$

$

ASSETS Cash and investments Restricted cash Taxes receivable

22,302 -

5,647 1,427

1,494 218

2,883 -

$

42,400 -

$

4,268 -

21,859 -

100,853 1,645

10,165

-

-

591

11

-

-

10,767

3,083

286

9

874

778

-

817

5,847

Accrued interest Due from other funds

115 402

2 -

-

14 -

12 -

1 -

92 -

236 402

Inventories Prepaid costs Non-current notes receivable, net

227 380

-

79 107

11 39

-

-

23

317 549

Accounts receivable, net of allowance for uncollectibles

of allowance for uncollectibles Total assets

$

LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable

36,674

$

3,047 10,409

6,222

9 2

$

1,907

$

298

4,412

$

43,201

$

4,269

$

22,791

$

344

1,667

1

-

-

-

-

2

-

402 46

402 12,306

1

763

21,566

Escrows payable

-

Due to other funds Deferred revenue

7,387

3,300

1,020

21

532

Total liabilities

13,609

3,311

1,318

365

2,199

315

3,047 123,663

8,856

FUND BALANCES 607

-

228

50

-

-

23

908

Committed

1,780 -

1,448 -

292 -

203 -

424 24,279

1 -

21,730 -

25,878 24,279

Assigned

2,731

5,650

69

3,794

16,299

4,267

275

33,085

17,947

-

-

-

-

-

-

17,947

23,065

7,098

589

4,047

41,002

4,268

22,028

102,097

Nonspendable Restricted

Unassigned

Total fund balances Total liabilities and fund balances

$

36,674

$

10,409

$

1,907

$

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

26

4,412

$

43,201

$

4,269

$

22,791

$

123,663

CITY OF

ARVADA, COLORADO

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS December 31, 2011 (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)

$ 102,097

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.

268,183

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 Note Subtotal

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, 2011 are: Bonds payable Obligation under certificates of participation Interest Accrual OPEB Compensated absences Unamortized bond issuance costs Subtotal Net assets of governmental activities (page 23)

23,478

3,926 2,745 6,671

(25,378) (13,935) (162) (1,545) (3,936) 603 (44,353) $356,076

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

27

CITY OF

ARVADA, COLORADO

GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 2011 (in thousands)

General Fund

Community Development Fund

Arvada Center

$

$

$

Primary Government General Capital Projects Construction Parks Fund Fund

Other Governmental Funds

Total Governmental Funds

$

$

$

REVENUES Property and Ownership Taxes Sales and use taxes

4,953 40,192

-

-

-

$

-

$

-

10,804

4,953 50,996

Franchise fees

4,283

-

-

-

-

-

-

4,283

Licenses & permits Intergovernmental Charges for services Recovered costs

2,344 4,857 513 347

403 -

948 5,218 -

52 3,142 900

1,655 545 593

-

4,161 -

2,396 15,166 6,276 1,840

Fines & Forfeitures Interest Memberships, donations & dedications

1,261 418 -

10 -

19 292

40 -

433 -

4 -

307 1,285

1,261 1,231 1,577

Miscellaneous Total Revenues

140 59,308

242 655

133 6,610

92 4,226

75 3,301

4

157 16,714

839 90,818

EXPENDITURES Current expenditures: General government Public Safety

11,050 17,292

-

-

-

17 -

13 -

6,263

11,080 23,555

Public Works Parks and recreation Culture

18,188 -

-

10,213

6,682 -

-

-

-

18,188 6,682 10,213

-

578

-

-

-

-

3,827

4,405

-

-

-

-

-

-

4,073

4,073

29 46,559

578

10,213

13 6,695

14,509 14,526

13

1,515 15,678

1,515 14,551 94,262

(3,603)

$ (2,469)

Human Services Debt Service Principal Interest Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES, BEGINNING AS RESTATED FUND BALANCES, ENDING

$

12,749

$

77

$

$

(11,225)

-

45

3,575

2,740

6,922

(10,921) (10,921)

(118) (73)

3,575

(54) 2,686

6,922

$

(9)

$

1,036

$

(3,444)

-

1,673

14,955

-

(3,043) (1,370)

(14,136) 819

1,828

4

(28)

217

(4,303)

(9)

(334)

(2,625)

21,237 $ 23,065

7,094 7,098

617 589

3,830 $ 4,047

45,305 $ 41,002

4,277 4,268

22,362 $ 22,028

104,722 $ 102,097

$

$

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

28

$

CITY OF

ARVADA, COLORADO

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year ended December 31, 2011 (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

$(2,625)

14,551 (10,822) (5) 3,724

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 Developer contributed capital Notes Receivable – current net of allowance Subtotal

4,073

102 3,594 (637) 3,059

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

(179)

(70) (404) 14 32 (428) $7,624

CITY OF

ARVADA, COLORADO

GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2011 (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 (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer In Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING AS RESTATED FUND BALANCE, ENDING

Original

Final

$ 5,163 39,509 4,400 1,889 4,741 369 331 1,648 503 5,668 114 64,335

$ 5,163 39,509 4,400 1,889 4,774 369 331 1,648 503 5,668 114 64,368

2,625 263 906 2,224 1,393 2,785 1,141 19,115 17,361 2,147 3,002 52,962 35 52,997

5,885 263 908 2,218 1,393 2,842 1,177 19,157 19,058 2,254 3,001 58,156 35 58,191

3,468 255 828 2,117 1,344 2,721 1,102 17,292 18,188 2,129 2,871 52,315 29 52,344

2,417 8 80 101 49 121 75 1,865 870 125 130 5,841 6 5,847

11,338

6,177

12,749

6,572

(12,264) (12,264) (926) 12,676 $ 11,750

(11,269) (11,269) (5,092) 21,237 $ 16,145

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

4,953 40,192 4,283 2,344 4,857 513 347 1,261 418 5,785 140 65,093

(10,921) (10,921) 1,828 21,237 $ 23,065 52,344 (5,785) 46,559

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

30

$

(210) 683 (117) 455 83 144 16 (387) (85) 117 26 725

348 348 6,920 6,920

CITY OF

ARVADA, COLORADO

COMMUNITY DEVELOPMENT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget

Budgeted Amounts Original

Final

Actual

Positive

Amount

(Negative)

$

$

REVENUES Intergovernmental Interest

$

Miscellaneous

638 20

$

638 20

403 10

(235) (10)

111

111

242

131

769

769

655

(114)

798

798

578

220

1

1

-

1

799

799

578

221

(30)

(30)

77

107

Transfers in

45

45

45

-

Transfers out

(134)

(134)

(118)

16

(89)

(89)

(73)

16

(119)

(119)

4

123 -

Total revenues EXPENDITURES Current expenditures: Program costs Capital outlay Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES)

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

$

6,902

7,094

7,094

6,783

$ 6,975

$ 7,098

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

31

$

123

CITY OF

ARVADA, COLORADO

ARVADA CENTER FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands) Variance With Final Budget Actual

Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original

Final

REVENUES Intergovernmental revenues Scientific and Cultural Facilities District

$

931

$

931

948

17

Charges for services Performing Arts Education Gallery/Museum Interest Memberships and donations Development 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 (USES) Transfers in Total other financing uses

4,399 902 196 -

4,399 902 196 -

4,182 763 273 19

(217) (139) 77 19

555 143

555 143

292 133

(263) (10)

7,126

7,126

6,610

(516)

575 5,816 198 1,557 1,262 681 173 10,262

575 5,816 198 1,557 1,262 681 173 10,262

588 5,779 197 1,547 1,254 676 172 10,213

(13) 37 1 10 8 5 1 49

14

14

-

14

10,276

10,276

10,213

63

(3,150)

(3,150)

(3,603)

3,150

3,575

3,575

-

3,150

3,575

3,575

-

-

425

(28)

1,024

617

617

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

$

1,024

$

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

32

1,042

$

589

(453)

(453) $

(453)

CITY OF

ARVADA, COLORADO

PARKS FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

REVENUES Licenses and permits Intergovernmental revenues Jefferson County-Open Space Recovered costs Interest Miscellaneous

Budgeted Amounts Original Final

Actual Amounts

$

$

44

$

44

52

Variance With Final Budget Positive (Negative) $

8

3,141 848 97 41

3,141 848 97 59

3,142 900 40 92

1 52 (57) 33

4,171

4,189

4,226

37

6,067 750

6,091 750

5,933 749

158 1

6,817

6,841

6,682

159

13

13

13

-

Total Expenditures

6,830

6,854

6,695

159

DEFICIENCY OF REVENUES UNDER EXPENDITURES

(2,659)

(2,665)

(2,469)

196

2,840 (3)

2,841 (665)

2,740 (54)

(101) 611

2,837

2,176

2,686

510

217

706

3,830

-

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

OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources NET CHANGE IN FUND BALANCE

178

FUND BALANCE, BEGINNING FUND BALANCE, ENDING

(489)

1,708 $

1,886

3,830 $

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

33

3,341

$

4,047

$

706

CITY OF

ARVADA, COLORADO

PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31, 2011 (in thousands) Governmental Activities

Business-Type Activities

Water Fund

Wastewater fund

Stormwater Fund

$

$

Golf Course

Total Business Type Activities

Food Service

Internal Service Funds

ASSETS CURRENT ASSETS Cash and inv estments

$

Accounts receiv able, net of allowance for uncollectibles Accrued interest Inv entories Prepaid costs Total current assets NONCURRENT ASSETS Deferred charges Land, water rights & construction in progress Property & equipment, net of accumulated depreciation Total assets

58,791

9,499

10,628

$

296

$

757

$

79,971

$

23,848

2,337

1,818

352

19

126

4,652

4

258 261 48

46 8

48 -

2 98 90

3 35 3

357 394 149

113 253 40

61,695

11,371

11,028

505

924

85,523

24,258

166

-

-

-

-

166

-

32,681

5

898

4,230

-

37,814

-

114,912

38,528

29,918

3,227

978

187,563

6,538

209,454

49,904

41,844

7,962

1,902

311,066

30,796

874 97 60

143 436

61 -

105 12 -

75 -

1,258 109 496

683 -

LIABILITIES CURRENT LIABILITIES Accounts pay able Accrued interest Contracts pay able Accrued compensated absences

220

26

7

47

24

324

39

Serial bonds pay able Bond Premium Claims pay able Capital lease pay able

1,680 104 -

-

-

134

-

1,680 104 134

1,486 102

Deferred rev enue Total current liabilities

3,035

605

68

87 385

43 142

130 4,235

2,310

Serial bonds pay able Bond Premium Accrued compensated absences

15,345 833 220

26

7

48

24

15,345 833 325

40

Capital lease pay able Total non-current liabilities Total liabilities

16,398 19,433

26 631

7 75

513 561 946

24 166

513 17,016 21,251

432 472 2,782

129,631

38,533

30,816

6,810

978

206,768

6,004

1,866 58,524

10,740

10,953

206

758

1,866 81,181

22,010

NONCURRENT LIABILITIES

NET ASSETS Inv ested in capital assets, net of related debt Restricted for: Debt Serv ice Unrestricted Total net assets

$

190,021

$

49,273

$

41,769

Adjustment to reflect the consolidation of internal serv ice fund activ ities related to enterprise funds Net assets of business-ty pe activ ities (page 23) The accompany ing notes are an integral part of these financial statements.

34

$

7,016

$

1,736

$

289,815

$

4,536 294,351

$

28,014

CITY OF

ARVADA, COLORADO

PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS Year Ended December 31, 2011 (in thousands) Governmental Activities

Business-Type Activities

Water Fund REVENUES Sales

$

Wastewater fund

17,566

$

-

Stormwater Fund $

Golf Course -

$

Food Service

1,369

$

1,505

Total Business Type Activities

Internal Service Funds

$

$

20,440

-

Licenses/permits & fees

-

-

-

-

-

-

-

Serv ice charges & fees Recov ered costs Grants

295 -

10,336 -

3,176 200

2,421 -

-

16,228 200

7,723 180 -

Miscellaneous Total rev enues

360 18,221

10,336

3,376

14 3,804

1,505

374 37,242

28 7,931

EXPENSES Operating & maintenance

14,229

7,665

824

3,536

1,564

27,818

-

620 -

765 -

-

-

125 -

1,510 -

2,974 689 437

Repair & maintenance Depreciation

3,524

1,081

595

212

51

5,463

3,418 1,194

Total ex penses

18,373

9,511

1,419

3,748

1,740

34,791

8,712

(152)

825

1,957

56

(235)

2,451

(781)

Interest income Gain (loss) on sale of assets

846 (487)

137 (357)

148 (37)

6 -

11 -

1,148 (881)

374 40

Interest ex pense Amortization

(626) 87

-

-

(33) -

-

(659) 87

(24) -

Total non-operating rev enues (ex penses)

(180)

(220)

111

(27)

11

(305)

390

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS

(332)

605

2,068

29

(224)

2,146

(391)

CAPITAL CONTRIBUTIONS TRANSFERS IN TRANSFERS OUT

3,673 405 (197)

1,239 65 (266)

1,607 (1,138)

213 (40)

27 -

6,519 710 (1,641)

123 (11)

CHANGE IN NET ASSETS

3,549

1,643

2,537

202

(197)

7,734

(279)

Administration Insurance premiums Uninsured damages & claims

OPERATING INCOME (LOSS) NON-OPERATING REVENUES (EXPENSES)

NET ASSETS, BEGINNING NET ASSETS, ENDING

$

186,472 190,021

$

47,630 49,273

$

39,232 41,769

$

Adjustment to reflect the consolidation of internal serv ice fund activ ities related to enterprise funds Change in net assets of business-ty pe activ ities (page 25) The accompany ing notes are an integral part of these financial statements.

35

6,814 7,016

$

1,933 1,736

$

$

(100) 7,634

28,293 28,014

CITY OF

ARVADA, COLORADO

PROPRIETARY FUNDS STATEMENT OF CASH FLOWS Year Ended December 31, 2011 (in thousands) Governmental Activities

Business-Type Activities

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 Net cash provided (used) by operating activities Cash flows from non-capital financing activities

Water Fund $ 17,939 (9,053) (542) (5,262) 3,082

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 l tcash equivalents January 1, 2011 Cashi and

Wastewater fund $

10,354 (7,314) (351) (1,121) 1,568

$

Golf Course

3,406 (489) (9) (328) 2,580

$ 3,802 (1,508) (255) (1,832) 207

Total Business Type Activities

Food Service $

1,447 96 (770) (53) (855) (135)

$

36,948 96 (19,134) (1,210) (9,398) 7,302

Internal Service Funds $

211 7,717 (5,059) (598) (1,892) 379

(197) 405

(266) 65

(1,138) -

(40) 213

27

(1,641) 710

(11) 123

208

(201)

(1,138)

173

27

(931)

112

2,394 (5,368) (1,630) (634) -

344 (1,650) -

(1,397) -

(228) (43) -

-

2,738 (8,415) (1,858) (677) -

(2,361) (96) (24) 118

(5,238)

(1,306)

(1,397)

(271)

-

(8,212)

(2,363)

727 727 (1,221)

112 112 173

123 123 168

5 5 114

10 10 (98)

977 977 (864)

312 312 (1,560)

60,012 58,791

9,326 9,499

10,460 10,628

182 296

855 757

80,835 79,971

25,408 23,848

(152)

825

1,957

56

(235)

2,451

(781)

$

3,524 (369) (11) 4 23 (25) 60 28 3,082

$

1,081 18 (583) 231 (4) 1,568

$

595 30 2 (4) 2,580

$

212 (2) (5) 3 (6) (22) (29) 207

$

51 26 (3) 11 17 (2) (135)

$

5,463 (297) (19) 7 (553) 206 60 (5) (11) 7,302

$

1,194 (1) (47) (21) 280 (235) (10) 379

$

1,279

$

895

$

1,607

$

-

$

-

$

3,781

$

-

Cash and cash equivalents December 31, 2011

Reconciliation of operating income (loss) to net cash provided (used) by operating activities: 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 (Decrease) increase in accounts payable (Decrease) increase in claims/bonds payable (Decrease) increase in contracts payable (Decrease) increase in deferred revenue (Decrease) increase in accrued benefits Net cash provided (used) by operating activities

Stormwater Fund

Non-cash investing, capital and financing activities Developer Contributions

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

36

CITY OF

ARVADA, COLORADO

FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET ASSETS December 31, 2011 (in thousands)

Defined Benefit Police Pension ASSETS Pooled cash & investments Accrued interest Accounts receivable Total assets

$

381 381

LIABILITIES Escrow payable Total liabilities

Agency Fund

$

4,587 21 2,423 7,031

-

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS

$

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

37

381

7,031 7,031

$

-

CITY OF

ARVADA, COLORADO

FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS Year Ended December 31, 2011 (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

409

END OF YEAR

$

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

38

381

STATEMENTS FINANCIAL

THE TO NOTES

Notes to the Financial Statements

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 ..................................................................................................... 47-50 9. Net Assets ............................................................................................................ 50 10. Estimates ............................................................................................................. 50

2.

Stewardship, Compliance and Accountability A. Budgetary Information ........................................................................................... 50-51 B. State Constitutional Amendment ................................................................................ 51

3.

Detailed Notes on All Funds and Account Groups A. Deposits and Investments ..................................................................................... 52-55 B. Capital Assets ........................................................................................................ 56-57 C. Construction Commitments ........................................................................................ 57 D. Interfund Transactions ........................................................................................... 57-58 E. Long-Term Debt Revenue Bonds ............................................................................................... 59-60 Capital Lease Obligations ............................................................................... 60-62 Changes in General Long-Term Liabilities .......................................................... 62

39

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

4.

Other Information A. Risk Management ....................................................................................................... 63 B. Commitments and Contingencies 1. Litigation ............................................................................................................... 64 2. Federal Grants ..................................................................................................... 64 3. Commitments ....................................................................................................... 64 4. AURA Commitments ....................................................................................... 64-65 C. Conduit Debt Obligation ........................................................................................ 65-66 D. Retirement Commitments 1. Defined Benefit Police Pension Plan .............................................................. 66-67 2. City of Arvada Retirement Plan – Defined Contribution Plan .............................. 67 3. Defined Contribution Police Pension Plan ...................................................... 67-68 4. Executive Retirement Plan ................................................................................... 68 E. OPEB ....................................................................................................................... 68-70 F. Related Party Note........................................................................................................ 70 G. Subsequent Event ........................................................................................................ 70

40

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 combining 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. The City has implemented GASB Statement 61, The Financial Statement Reporting Entity, and we believe that AEDA is included as a discrete component unit in the City's financial statements for the following reasons: the City funds all of the operations of AEDA, the City Council appoints 6 members of the board and to not include them would be misleading to the financials.

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

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 on 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 restriction 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

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 The City adopted the standards of Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Government Fund Type Definitions (GASB 54), for the year ending December 31, 2011. This Statement defines the different types of fund balances that a government entity must use for financial reporting purposes. The classifications are designed based on the relative strength of the constraints that control how specific amounts can be spent, or in the case of inventories, the inability to be spent. When expenditures are incurred that use funds from more than one classification, the City will generally determine the order which the funds are used on a case-by-basis basis, taking into account any application requirements or grant agreements, contracts, business circumstances or other

47

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

constraints. If no other constraints exist, the order of spending of resources will be restricted, committed, assigned and lastly, unassigned.

GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance classifications listed below: 1. Nonspendable - fund balance associated with inventories, prepaids, long-term loans and notes receivable, and property held for resale (unless the proceeds are restricted, committed or assigned) 2. Restricted – fund balance that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation.

3. Committed – fund balance that can be spent only for specific purposes stipulated by a formal action approved by City Council.

4. Assigned – fund balance intended to be used by the government for a specific purpose but does not meet the criteria to be classified as restricted or committed.

5. Unassigned – fund balance that is the residual classification that does not meet any of the other classifications and is used for the General Fund only.

The following table illustrates the current fund balance amounts associated with each major fund and the non-major funds in the aggregate:

48

ARVADA, COLORADO

CITY OF

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Community

Arvada

Capital

Fund Balances (Deficit):

General

Development

Center

Parks

Nonspendable:

Fund

Fund

Fund

Fund

Inventories Endowments Prepaid Total Nonspendable

Other

Total

Projects Construction Governmental Governmental Fund

Fund

Funds

Funds

227

-

-

11

-

-

-

-

-

121

-

-

-

-

238 121

380

-

107

39

-

-

23

549

607

-

228

50

-

-

23

908

Restricted: Conservation Trust

-

-

-

-

-

-

2,938

2,938

Voter restricted sales tax - police

-

-

-

-

-

-

12,117

12,117

Seizure Funds Emergencies - Tabor

-

-

-

-

-

-

252

252

1,780

21

195

203

424

1

399

3,023

Donor intentions

-

-

58

-

-

-

-

58

Community Development

-

1,427

-

-

-

-

-

1,427

Debt service

-

-

-

-

-

-

456

456

Lands Dedicated

-

-

-

-

-

-

3,584

3,584

Drainage

-

-

-

-

-

-

1,984

1,984

Scholarships & Grants

-

-

3

-

-

-

-

3

Letter of Credit

-

-

36

-

-

-

-

36

1,780

1,448

292

203

424

1

21,730

25,878

Capital - Arvada Center

-

-

-

-

16

-

-

16

Capital - General

-

-

-

-

15,015

-

-

15,015

Capital - Parks

-

-

-

-

5,381

-

-

5,381

Capital - Streets

-

-

-

-

2,126

-

-

2,126

Total Restricted Committed

Capital - Traffic Total Committed

-

-

-

-

1,741

-

-

1,741

-

-

-

-

24,279

-

-

24,279

Assigned Capital - Arvada Center

-

-

-

-

286

-

-

286

Capital - Buildings

-

-

-

-

699

-

-

699

Capital - Parks

-

-

-

-

4,133

-

-

4,133

Capital - Streets

-

-

-

-

5,084

-

-

5,084

Capital - Traffic

-

-

-

-

6,097

-

-

6,097

Community Development

-

5,650

-

-

-

-

-

5,650

-

-

-

-

275

275

-

3,794

-

-

-

3,794 115

Housing

-

Parks

-

-

115

-

-

-

-

-

-

Arvada Center

Outdoor Lab

-

-

69

-

-

-

-

69

Construction

-

-

-

-

-

4,267

-

4,267

2012 Budget

2,616

-

-

-

-

-

-

2,616

275

Total Assigned Unassigned Total Fund Balances (Deficit)

2,731

5,650

69

3,794

16,299

4,267

17,947

-

-

-

-

-

23,065

7,098

589

4,047

41,002

4,268

49

33,085 17,947

22,028

102,097

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

As a result of implementing GASB 54, it was determined that the Repayment Fund did not meet the definition of a special revenue fund and would need to be reclassified to the General Fund. As a result, the following adjustment has been made to the beginning balance:

Governmental Activities:

General Fund

Net Assets – December 31, 2010 as originally stated GASB 54 implementation Adjusted Net Assets – December 31, 2010 as restated

$21,058,000

Other Governmental Funds $22,541,000

179,000

(179,000)

$21,237,000

$22,362,000

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 50

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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.

B. 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, Golf 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.

51

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

3. Detailed Notes on Funds and Account Balances A. Deposits and Investments As of December 31, 2011, the City's cash deposits had a carrying value of $41,791,299. The bank balances were $42,054,898 of which $1,347,500 was covered by federal deposit insurance and $40,707,398 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 shortterm 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, 2011, the City's investments in the FHLB, FNMA, and FFCB are 14.19%, 15.24% and 14.26% of total investments, respectively.

52

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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, 2011, 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, 2011: Cash and Investments Restricted Cash

$ 204,672 1,645

Total per Statement of Net Assets

$ 206,317

Agency Fund Police Pension Defined Benefit

4,587 381

Total Financial Statement Cash & Investments

Carrying value of cash Fair market value of investments

$ 211,285

41,791 169,494

Total value cash and investments

$ 211,285

53

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 24-36113. 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.

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, 2011, the Authority's investment in the Dreyfus Government Cash Management money market fund of $1,191,404 was rated AAA by 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.

54

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

As of December 31, 2011, the City had the following investments and maturities: Investment Maturities

Asset Category

Credit

>1 yr

>2 yrs

>3 yrs

Quality

and

and

and

and

<= 2 yrs.

<= 3 yrs.

<= 4 yrs.

<= 5 yrs.

<= 1 year

>4 yrs

Per Moody's

Fair Value

AAA

66,840,140

66,840,140

7,185,060

-

5,071,300

2,113,760

-

4,997,250

8,661,030

5,394,129

5,004,750

Local Government Investment Pool Trust Funds U.S. Treasuries

-

U.S. Agencies FHLB

AAA

24,057,159

FHLMC

AAA

-

FNMA

AAA

25,827,588

FFCB

AAA

24,172,010

3,093,360

FAMCA

AAA

-

-

74,056,756

3,093,360

-

-

13,091,310

13,091,310

8,320,450

3,041,700

5,278,750

21,411,760

16,133,010

169,493,716

86,066,510

Subtotal for U.S. Agencies Commercial Paper

A1

Corporate Bonds

AAA AA

Subtotal for Corporate Bonds Total for all Asset Categories

5,043,600

50.78%

5,749,988

5,009,150

10,024,850

4,998,500

6,033,900

10,046,250

-

-

-

-

10,040,850

19,409,517

16,437,179

25,075,850

-

-

-

-

-

-

5,278,750

-

-

-

20,390,900

21,523,277

16,437,179

25,075,850

12.03%

12.70%

9.70%

14.79%

As of December 31, 2011 AURA’s cash deposits had carrying values of $1,069,084. The bank balances were $1,074,591 of which $385,351 was covered by the federal deposit insurance and $689,240 was collateralized with securities held by the pledging financial institution’s trust department or agent in AURA’s name.

As of December 31, 2011 AEDA’s cash deposits had carrying values of $721,616. The bank balances were $721,616 of which $373,319 was covered by the federal deposit insurance and $348,297 was collateralized with securities held by the pledging financial institution’s trust department or agent in AEDA’s name

55

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

B. Capital Assets A summary of changes in capital asset activity for the year ended December 31, 2011 follows (in thousands): Balance January 1, 2011 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

$

51,527 7,516 59,043

$

$

60 14,509 14,569

Retirements

$

-

33,948 63,775 23,306 370,254 491,283

1,286 2,403 2,307 5,996

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

(913) (2,439) (1,343) (7,321) (12,016)

150 23 795 968

207,272

(6,020)

(143)

266,315

Balance January 1, 2011 Business-type activities Capital assets not being depreciated: Water rights Land Construction in progress Total capital assets, not being depreciated

Additions

27,230 7,695 724 35,649

$

8,549

Additions

$

3,292 3,292

$

(143)

Retirements

$

-

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

8,893 11 8,904

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

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

(297) (4,713) (316) (137) (5,463)

10 763 6 779

Total capital assets, being depreciated, net

183,876

3,441

(881)

$

219,525

56

$

6,733

$

(204) (33) (874) (1,111)

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

Business-type activities capital assets, net

Transfers To (From) CIP

(881)

$

94 5,512 59 5,665

(15,735) (16,630) (18,029) (244,665) (295,059)

5,665 $

-

Transfers To (From) CIP

$

475 (1,602) (1,127)

206,774 $

$

27,230 8,170 2,414 37,814

14,628 244,333 3,167 7,155 269,283

-

(7,279) (72,230) (2,014) (197) (81,720)

1,127 -

274,721

Balance December 31, 2011

816 311 1,127

$

51,587 16,360 67,947 33,838 70,540 24,894 372,561 501,833

-

(10) (1,645) (5) (1,660)

$

(5,665) (5,665)

Balance December 31, 2011

187,563 $

225,377

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Depreciation expense was charged to functions/programs of the primary government as follows (in thousands): Governmental Business-Type Activities Activities General government $2,613 $ Public safety â&#x20AC;&#x201C; police & judicial 87 Public works 7,356 Parks 407 Culture 359 Internal Service 1,194 Water 3,524 Wastewater 1,081 Stormwater 595 Golf 212 Food 51 Total depreciation expense $ 12,016 $ 5,463 C. Construction Commitments The City has active construction projects as of December 31, 2011. The projects include streets, traffic, parks, Arvada Center and general construction and water, and wastewater system projects. At year end the Cityâ&#x20AC;&#x2122;s commitments with contractors are as follows (in thousands): Remaining Commitment $ 1,205 141 3,058 31 120 37 65 $ 4,657

Project Spent-to-Date $ 1,254 847 3,585 282 185 458 853 $ 7,464

Streets construction Traffic construction Parks construction Arvada Center construction General construction Water system Wastewater system Total D. Interfund Transactions

There was one due from and one due to balance as of December 31, 2011. The Arvada Housing Authority owes the General Fund $401,831 for expenditures paid on its behalf.

Transfers to/from other funds for the year ended December 31, 2011 were as follows (in thousands): Fund

Transfers In

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

57

$

45 3,575 2,740 6,922 1,673 405

Transfers Out $ 10,921 118 54 3,043 197

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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

65 213 27 123

266 1,138 40 11

$15,788

$15,788

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, Grants, Lands Dedicated, Parks, and Water made transfers into the Capital Projects Fund.

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 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 Vehicles Fund to the Computer Fund.

58

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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 Cityâ&#x20AC;&#x2122;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, 2011, are as follows (in thousands): Year Ending December 31 2012 2013 2014 2015 2016 2017-2018

Principal 1,830 1,890 1,935 1,990 2,045 5,990

Interest 499 435 388 340 280 374

Total 2,329 2,325 2,323 2,330 2,325 6,364

Total

$ 15,680

$ 2,316

$17,996

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, 2011, are as follows (in thousands): Year Ending December 31 2012 2013 2014 2015 2016 2017 Total

Principal 1,370 1,420 1,465 1,520 1,580 1,640

Interest 335 289 239 186 129 66

Total 1,705 1,709 1,704 1,706 1,709 1,706

$8,995

$ 1,244

$10,239

The 2003 and 2009 Sales and Use Tax Refunding Revenue Bonds are payable solely from the Cityâ&#x20AC;&#x2122;s 3% sales tax. The sales and use tax revenues allocated for repayment of these

59

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

bonds is deposited separately into the Debt Fund. During the year ended December 31, 2011, revenues of $44,160,000 were available to pay annual debt service of $4,030,431.

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, 2011, are as follows (in thousands):

Year Ending December 31 2012 2013 2014 2015 2016 2017-2020

Principal 1,680 1,730 1,760 1,805 1,860 8,190

Interest 586 535 501 457 403 855

Total 2,266 2,265 2,261 2,262 2,263 9,045

Total

$17,025

$3,337

$20,362

Governmental Activities 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 2012 2013 2014 2015 2016 2017-2021 2022-2024

Principal 845 880 910 945 980 5,510 3,865

Interest 554 520 489 456 421 1,484 328

Total

$ 13,935

$ 4,252

Total 1,399 1,400 1,399 1,401 1,401 6,994 4,193 $ 18,187

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, 2011 (in thousands): 60

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Year Ending December 31 2012

10

2013

10

2014

10

2015

3

Total

$

Less amounts representing interest Present value of lease payments

33 (4) $ 29

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, 2011 (in thousands): Year Ending December 31 2012

113

2013

114

2014

115

2015

116

2016

101

Total

$559

Less amounts representing interest Present value of lease payments

(54) $505

The total value of the governmental assets capitalized related to the capital leases net of related depreciation is $721,982.

Business-Type Activities 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, 2011 (in thousands):

61

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Year Ending December 31 2012

158

2013

158

2014

158

2015

158

2016

79

Total

$711

Less amounts representing interest Present value of lease payments

(64) $ 647

The total value of the business-type assets capitalized related to the capital leases net of related depreciation is $1,090,288.

Changes in General Long-Term Liabilities â&#x20AC;&#x201C; During the year ended December 31, 2011 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 Bond Bond Premium Certificates of Participation Capital Lease OPEB Compensated Absences Total Governmental

Balance Additions Reductions Balance Due in 01/01/2011 12/31/2011 1 year $ 27,775 $ - $ 3,100 $ 24,675 $ 3,200 805 102 703 102 14,755 820 13,935 845 783 249 534 102 1,141 516 112 1,545 4,057 2,166 2,208 4,015 2,008 $ 49,316 $ 2,682 $ 6,591 $ 45,407 $ 6,257

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

Balance Additions Principal Balance Due in 01/01/2011 12/31/2011 1 year $ 18,655 $ - $ 1,630 $ 17,025 $ 1,680 1,041 104 937 104 875 228 647 134 661 348 360 649 324 $ 21,232 $ 348 $ 2,322 $ 19,258 $ 2,242

62

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

4. Other Information A. Risk Management The City has established a risk management program for much of its insurance needs. It is selfinsured 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 Workersâ&#x20AC;&#x2122; 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 workersâ&#x20AC;&#x2122; 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, 2010

$2,060

Incurred Claims

450

Claim Payments

789

Unpaid Claims, December 31, 2010

1,721

Incurred Claims

437

Claim Payments

672

Unpaid Claims, December 31, 2011

$1,486

63

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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, 2011. 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 $1,604,108 remaining at the end of 2011 after paying $81,902 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, 2011, $2,316,670 of the $3 million had been paid to the Retail Sales Operation.

64

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

• 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, 2011, or $12,360,000) or (b) September 30, 2028, the Authority’s obligations to the District will terminate. As of December 31, 2011, $1,665,075 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, 2011 was $88,666. 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, 2011, of $37,600,000), 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, 2011, of $37,600,000), supported by Northwest Area Property Taxes or to which Northwest Area Property Taxes are th pledged, or (b) the date that is the 25 anniversary of the date of adoption of the Jefferson Center Urban Renewal Plan. The agreement is expected to terminate in 2034.

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 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 65

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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, 2011, there was 1 Industrial Revenue Bond, 973 single and multi-family Mortgage Bonds, 101 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 $25.7 million. The unpaid balance on the Mortgage Credit Certificates is $8.5 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, 2011.

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 for January 1, 2011. The valuation determined that the assets of the plan, $409,230, were not enough to cover the present value of the retirement obligation of $517,694 to the participating member at that time. The total unfunded actuarial liability was $108,464 and the funded ratio (total assets divided by total retirement obligations) was 79%.

As of December 31, 2011, the net assets held in trust were $381,508.

No contributions have been made by the participant or the City for the years ended December 31, 2011, 2010 and 2009. The City has budgeted $20,000 per year starting in 2012 to fund the unfunded actuarial liability. The annual required contribution and resulting net pension obligation were not significant.

66

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Significant methods and assumptions included the following: • • • • • •

Actuarial Valuation Date – January 1, 2011 Actuarial Cost Method – Unit Credit Cost Method Amortization Method – Level Dollar Rate of Investment Return – 3.5% per annum Remaining Amortization Period – 20 years Asset Valuation Method – Market Value

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. 493 employees were participants in the plan as of December 31, 2011. 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 maximum 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 $3,779,156 and the required employee contributions of $2,345,983 were paid during 2011. Additional employee contributions of $266,579 were also made in 2011. The required contributions represent 12.88% 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 named the Police Money 67

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Purchase Plan (PMPP). 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.

155 employees were participants as of December 31, 2011. The required contributions for the City and PMPP employees amounted to $1,041,233 each (10% of covered payroll).

There were forfeitures of $140,429 also contributed on the employee side, bringing the total employee contributions to $1,181,662. 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 10.02% of the participant's base salary. The employees covered by this plan were required to make an 8% contribution in 2011.

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, 2011 the City contributed $195,623 for the benefit of the 14 participants in the Plan and the employees contributed $154,371.

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 â&#x20AC;&#x201C; 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 â&#x20AC;&#x201C; 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, 2011, the City made $112,521 in contributions to the plan and all governmental funds with employees, General Fund, Arvada Center Fund, Parks Fund, Community Development Fund, Arvada Housing Fund and

68

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Police Tax Increment Funds, contributed to this number. contribute their share of the premiums.

Plan members are required to

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.

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 42,795 39,386 516,063 112,521 403,542 1,141,202 $ 1,544,744

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, 2011, follows.

Year Ended 12/31/11 12/31/10 12/31/09

Annual OPEB Cost $ 516,063 $ 514,874 $ 513,954

Percentage of Annual OPEB Cost Contributed 21.8 % 10.3 % 27.5 %

Net OPEB Obligation $ 1,544,744 $ 1,141,202 $ 679,288

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:

69

CITY OF

ARVADA, COLORADO

NOTES TO FINANCIAL STATEMENTS December 31, 2011

• • • • • • • • •

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.

F. 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.

G. Subsequent Event In March of 2012, the City and AURA agreed to extend their intergovernmental loan agreement in the amount of $2,745,000 an additional year with a new maturity date of April 1, 2013. All of the other terms of the agreement have stayed the same.

70

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF

ARVADA, COLORADO

Schedule of Funding Progress

Retiree Health Program Actuarial Accrued Liability (AAL)Projected Unit UAAL as a Actuarial Actuarial Value Credit Cost Unfunded AAL Funded Percentage of Valuation Date of Assets Method (UAAL) Ratio Covered Payroll Covered Payroll 01/01/2008 (a) $ - $ 5,370,851 $ 5,370,851 0% $ 38,797,330 13.84% 01/01/2010 $ - $ 5,118,413 $ 5,118,413 0% $ 43,239,463 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.

Police Defined Pension Program Actuarial Accrued Liability (AAL)Projected Unit UAAL as a Actuarial Actuarial Value Credit Cost Unfunded AAL Funded Percentage of Valuation Date of Assets Method (UAAL) Ratio Covered Payroll Covered Payroll 01/01/2011 (b) $ 409,230 $ 517,694 $ 108,464 79% N/A N/A

(b) The net pension obligation was 0 as of January 1, 2010.

71

CITY OF

ARVADA, COLORADO

CONSTRUCTION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original

Final

Actual

Positive

Amounts

(Negative)

$

$

REVENUES Interest Total revenues

$

-

$

-

4

4

-

-

4

4

Licenses & Fees

-

13

13

-

Total expenditures

-

13

13

-

-

(13)

(9)

4

-

(13)

(9)

4

EXPENDITURES Current expenditures:

DEFICIENCY OF REVENUES OVER EXPENDITURES NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

4,987

4,277

4,277

$ 4,987

$ 4,264

$ 4,268

72

$

4

NONMAJOR

GOVERNMENTAL

FUNDS

LANDS DEDICATED FUND DRAINAGE FUND ARVADA HOUSING AUTHORITY POLICE SEIZURE FUND POLICE TAX INCREMENT FUNDS REPAYMENT FUND GRANTS FUND BOND FUND DEBT SERVICE FUND

Nonmajor Governmental Funds

CITY OF

ARVADA, COLORADO

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.

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 â&#x20AC;&#x201C; 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 â&#x20AC;&#x201C; 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 and Highway Users Tax Fund Bonds are included in this fund.

73

CITY OF

ARVADA, COLORADO

NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2011 (in thousands)

ASSETS Cash and investments Accounts receivable (net) Accrued interest Prepaid costs Total assets

Special Revenue Funds Arvada Housing Police Authority Seizure Fund Fund

Lands Dedicated Fund

Drainage Fund

Police Tax Increm ent (.21) Fund

$

3,635 16 -

$

1,976 9 -

$

789 55 -

$

251 1 -

$

6,008 351 27 23

$

3,651

$

1,985

$

844

$

252

$

6,409

LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Due to other funds Deferred revenue

-

-

13 402 39

-

159 3

Total liabilities

-

-

454

-

162

67 3,584 3,651

1 1,984 1,985

115 275 390

252 252

23 6,224 6,247

FUND BALANCES Nonspendable Restricted Committed Assigned Unassigned Total fund balance Total liabilities and fund balances

$

3,651

$

1,985

74

$

844

$

252

$

6,409

CITY OF

ARVADA, COLORADO

Debt Service Police Tax Increm ent (.25) Fund

Grants Fund

Bond Fund

$

5,819 411 26 -

$

2,925 13 -

$

120 -

$

336 -

$

21,859 817 92 23

$

6,256

$

2,938

$

120

$

336

$

22,791

$

Debt Service Fund

Total Non-m ajor Governm ental

143 4

-

-

-

315 402 46

147

-

-

-

763

6,109 6,109

2,938 2,938

120 120

336 336

23 16,162 5,568 275 22,028

6,256

$

2,938

$

120

75

$

336

$

22,791

CITY OF

ARVADA, COLORADO

NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 2011 (in thousands)

Lands Dedicated Fund REVENUES Taxes Intergovernmental Revenues Dedications Interest Miscellaneous

$

Total Revenues

1,285 46 -

Special Revenue Funds Arvada Housing Police Authority Seizure Fund Fund

Drainage Fund

$

28 -

$

3,653 1 15

$

4 4

Police Tax Increm ent (.21) Fund

$

3,061 16 86 138

1,331

28

3,669

8

3,301

-

-

3,827

-

2,971

-

-

-

-

-

-

-

3,827

-

2,971

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

1,331

28

(158)

8

330

OTHER FINANCING SOURCES (USES) Bond Issuance Costs Bond Proceeds Bond Refinancing Transfers in Transfers out

(2,219)

-

118 -

-

-

Total other financing sources (uses)

(2,219)

-

118

-

-

(888)

28

(40)

8

330

244

5,917

EXPENDITURES Program Costs Debt Service Principal Interest Total expenditures

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

4,539 $

3,651

1,957 $

76

1,985

430 $

390

$

252

$

6,247

CITY OF

ARVADA, COLORADO

Debt Service Police Tax Increm ent (.25) Fund

Grants Fund

Bond Fund

Debt Service Fund

Total Non-m ajor Governm ental

$

$

$

$

$

3,775 82 -

6 -

3,968 16 -

10,804 4,161 1,285 307 157

3,857

530

6

3,984

16,714

3,292

-

-

-

-

-

820 580

3,253 935

10,090 4,073 1,515

3,292

-

1,400

4,188

15,678

565

530

(1,394)

(204)

1,036

-

(824)

1,400 -

155 -

1,673 (3,043)

-

(824)

1,400

155

(1,370)

565

(294)

6

5,544 $

492 38 -

6,109

3,232 $

2,938

(49)

114 $

120

(334)

385 $

336

77

22,362 $

22,028

CITY OF

ARVADA, COLORADO

LANDS DEDICATED FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Actual

Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original

Final

REVENUES Dedications

$

Interest Total revenues

75

$

75

1,285

120

120

46

195

195

1,331

1,210 (74) 1,136

OTHER FINANCING SOURCES (USES) Transfers out

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

$

(1,965)

(2,220)

(2,219)

1

(1,770)

(2,025)

(888)

1,137

4,690

4,539

2,920

78

$

2,514

4,539 $

3,651

$

1,137

CITY OF

ARVADA, COLORADO

DRAINAGE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Actual

Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original

Final

REVENUES Interest

$

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

$

20

$

20

28

8

20

20

28

8

20

20

28

8

1,958

1,957

1,957

-

1,978

$

79

1,977

$

1,985

$

8

CITY OF

ARVADA, COLORADO

ARVADA HOUSING AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands) Variance With Final Budget Actual

Positive

Amounts

(Negative)

$

$

Budgeted Amounts Original

Final

REVENUES Intergovernmental revenues Federal grants

$

Interest Miscellaneous Total revenues

3,900

$

3,900

3,653

(247)

5

5

1

19

19

15

(4) (4)

3,924

3,924

3,669

(255)

EXPENDITURES Current expenditures: Personnel services

300

300

322

(22)

Services and charges

78

78

107

(29)

Supplies

23

23

15

8

3,480

3,480

3,383

97

3,881

3,881

3,827

54

43

43

(158)

(201)

26

26

118

92

Total other financing uses

26

26

118

92

NET CHANGE IN FUND BALANCE

69

69

(40)

(109)

386

430

430

Rents Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING USES Transfers In

FUND BALANCE, BEGINNING FUND BALANCE, ENDING

$

455

80

$

499

$

390

$

(109)

CITY OF

ARVADA, COLORADO

POLICE SEIZURE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original

Final

Actual

Positive

Amounts

(Negative)

$

$

REVENUES Seizure & forfeitures

$

25

$

25

-

(25)

Interest

4

4

4

-

Miscellaneous

-

-

4

4

29

29

8

(21)

25

25

-

25

4

4

8

4

269

244

244

-

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

$

273

81

$

248

$

252

$

4

CITY OF

ARVADA, COLORADO

POLICE TAX INCREMENT (.21) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$ 2,866

$ 2,866

$ 3,061

$

-

63

16

(47)

100

100

86

(14)

-

27

138

111

2,966

3,056

3,301

245

2,402

2,465

2,326

139

Services and charges

266

266

208

58

Supplies

453

453

437

16

3,121

3,184

2,971

213

2

29

-

29

3,123

3,213

2,971

242

330

487 -

REVENUES Sales and use taxes

195

Intergovernmental revenues Federal grants Interest Miscellaneous Total revenues EXPENDITURES Current expenditures: Personnel services

Total current expenditures Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCE FUND BALANCE, BEGINNING FUND BALANCE, ENDING

(157)

(157)

5,343

5,917

5,917

$ 5,186

$ 5,760

$ 6,247

82

$

487

CITY OF

ARVADA, COLORADO

POLICE TAX INCREMENT (.25) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

Actual

Positive (Negative)

Original

Final

Amounts

$ 3,448

$ 3,448

$ 3,775

125

125

82

3,573

3,573

3,857

284

3,062

3,062

2,975

87

Services and charges

206

206

154

52

Supplies

187

187

163

24

3,455

3,455

3,292

163

1

1

-

1

3,456

3,456

3,292

164

117

117

565

448

5,188

5,544

5,544

-

$ 5,305

$ 5,661

$ 6,109

REVENUES Sales and use taxes Interest Total revenues

$

327 (43)

EXPENDITURES Current expenditures: Personnel services

Total current expenditures Capital Outlay Total Expenditures

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

83

$

448

CITY OF

ARVADA, COLORADO

GRANTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original

Final

Actual

Positive

Amounts

(Negative)

$

$

REVENUES Intergovernmental revenues State grants Interest Total revenues

$

526

$

526

492

(34)

60

60

38

(22)

586

586

530

(56)

(643)

(824)

(824)

-

(643)

(824)

(824)

-

(57)

(238)

(294)

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

3,298

3,232

3,232

$ 3,241

$ 2,994

$ 2,938

84

(56) $

(56)

CITY OF

ARVADA, COLORADO

BOND FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original

Final

Actual

Positive

Amounts

(Negative)

$

$

REVENUES Interest

$

-

$

-

6

6

EXPENDITURES Debt Service Principal

820

820

820

-

Interest

580

580

580

-

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

108

114

114

-

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

$

108

85

$

114

$

120

$

6

ARVADA, COLORADO

CITY OF

DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$ 4,030

$ 4,030

$ 3,968

$

5

5

16

4,035

4,035

3,984

REVENUES Sales and use taxes Interest Total revenues

(62) 11 (51)

EXPENDITURES Services and Charges Principal Interest Total expenditures

-

5

-

3,250

3,250

3,253

5

935

935

935

-

4,185

4,190

4,188

2

(3)

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES

(150)

(155)

(204)

(49)

155

155

155

-

155

155

155

-

5

-

378

385

OTHER FINANCING USES Transfers In Total other financing uses

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

$

383

86

$

385

(49)

(49)

385 $

336

$

(49)

Enterprise Funds

ENTERPRISE

MAJOR

FUNDS

ENTERPRISE

FUNDS

WATER FUND STORMWATER FUND WASTEWATER FUND

NONMAJOR

ENTERPRISE GOLF FUND

FOOD SERVICES FUND

FUNDS

CITY OF

ARVADA, COLORADO 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.

87

CITY OF

ARVADA, COLORADO

WATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands) Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$

REVENUES $ 17,623

$ 17,623

$ 17,566

Licenses/permits and fees

Sales

27

27

-

Service charges and fees

227

227

295

68

Interest income

716

716

846

130

Miscellaneous revenues Water/Tap

Total revenues

(27)

23

23

360

3,014

3,014

2,394

-

-

1,279

1,279

405

405

405

-

22,035

22,035

23,145

1,110

Developer Contributions Transfers in

(57)

337 (620)

EXPENDITURES 14,478

14,298

14,229

69

Administration

Operating and maintenance

696

716

620

96

Capital Outlay

5,850

6,485

5,368

1,117

Principal expense

1,630

1,630

1,630

-

635

635

626

7

7

197

23,296

23,771

22,670

Interest expense Transfers out Total expenditures CHANGE IN NET ASSETS

$ (1,261)

$ (1,736)

475

ADJUSTMENTS TO GAAP BASIS Principal

1,630

Capital Outlay

5,368

Net book value of assets retired

(487)

Depreciation and amortization

(3,437)

CHANGE IN NET ASSETS, GAAP BASIS

$ 3,549

88

9 (190) 1,101 $

2,211

CITY OF

ARVADA, COLORADO

WASTEWATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands) Variance With Final Budget Budgeted Amounts Original REVENUES Licenses/permits and fees

$

Service charges and fees

Final

29

$

29

Actual

Positive

Amounts

(Negative)

$

$

-

10,545

10,545

10,336

94

94

137

Interest income

(29) (209) 43

Other Revenues

-

Sewer/Tap

227

227

344

117

-

-

895

895

65

65

65

-

10,960

10,960

11,777

817

Developer Contributions Transfers In Total revenues EXPENDITURES Operating and maintenance

9,647

9,698

7,665

2,033

Administration

765

765

765

-

Capital Outlay

313

262

1,650

Transfers Out

266

266

266

-

10,991

10,991

10,346

645

Total expenditures

CHANGE IN NET ASSETS

$

(31)

$

(31)

1,431

ADJUSTMENTS TO GAAP BASIS Capital Outlay

1,650

Net book value of assets retired

(357)

Depreciation

(1,081)

CHANGE IN NET ASSETS, GAAP BASIS

$ 1,643

89

(1,388)

$

1,462

CITY OF

ARVADA, COLORADO

STORMWATER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$ 3,059

$ 3,059

$ 3,176

$

Grants

10

10

200

190

Interest Income

96

96

148

52

-

-

1,607

1,607

3,165

3,165

5,131

1,966

Operating and maintenance

1,049

1,049

824

225

Capital outlay

6,969

6,969

1,397

5,572

Transfers Out

999

999

1,138

9,017

9,017

3,359

REVENUES Service charges and fees

Developer Contributions Total revenues

117

EXPENDITURES

Total expenditures

CHANGE IN NET ASSETS

$ (5,852)

$ (5,852)

1,772

ADJUSTMENTS TO GAAP BASIS Capital Outlay

1,397

Net book value of assets retired

(37)

Deprecation

(595)

CHANGE IN NET ASSETS, GAAP BASIS

$ 2,537

90

(139) 5,658

$

7,624

CITY OF

ARVADA, COLORADO

GOLF COURSE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands) Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$ 1,274

$ 1,358

$ 1,369

$

2,295

2,386

2,421

35

-

1

6

5

REVENUES Sales Service charges and fees Interest income Other revenue

11

9

11

14

3

213

213

213

-

3,791

3,969

4,023

54

3,411

3,639

3,536

103

Principal expense

230

230

228

2

Interest expense

Transfers In Total revenues EXPENDITURES Operating and maintenance

43

43

33

10

Capital outlay

-

8

-

8

Transfers Out

103

40

40

-

3,787

3,960

3,837

123

9

186

Total expenditures CHANGE IN NET ASSETS

$

4

$

ADJUSTMENTS TO GAAP BASIS Principal

228

Depreciation

(212)

CHANGE IN NET ASSETS, GAAP BASIS

$

91

202

$

177

CITY OF

ARVADA, COLORADO

FOOD SERVICES FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original

Final

Actual

Positive

Amounts

(Negative)

$

REVENUES $ 1,631

$ 1,631

$ 1,505

Interest income

Sales

6

6

11

5

Transfers in

-

-

27

27

1,637

1,637

1,543

(94)

Total revenues

(126)

EXPENDITURES 1,586

1,586

1,564

22

Administration

Operating and maintenance

125

125

125

-

Capital outlay

103

103

-

103

1,814

1,814

1,689

125

Total expenditures CHANGE IN NET ASSETS

$

(177)

$

(177)

(146)

ADJUSTMENTS TO GAAP BASIS Depreciation

(51)

CHANGE IN NET ASSETS, GAAP BASIS

$

92

(197)

$

31

INTERNAL

SERVICE

FUNDS

COMPUTER FUND PRINT SHOP FUND VEHICLE FUND BUILDING FUND

Internal Service Funds

INSURANCE SERVICE FUND

CITY OF

ARVADA, COLORADO

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 accounts 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.

93

CITY OF

ARVADA, COLORADO

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS December 31, 2011 (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

6,312 2 31 7

8,738 39 18

$

107 2 1 3 5

$

6,878 33 250 10

$

1,813 9 -

$

23,848 4 113 253 40

6,352

8,795

118

7,171

1,822

24,258

-

84

36

5,459

959

6,538

6,352

8,879

154

12,630

2,781

30,796

176 1,486 3 -

215 -

11 8

113 36 -

168 94

683 1,486 39 102

1,665

215

19

149

262

2,310

3 -

-

21

37 -

411

40 432

3

-

21

37

411

472

1,668

215

40

186

673

2,782

4,684

84 8,580

7 107

5,459 6,985

454 1,654

6,004 22,010

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

$

4,684

$

8,664

94

$

114

$

12,444

$

2,108

$

28,014

CITY OF

ARVADA, COLORADO

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Year Ended December 31, 2011 (in thousands)

Insurance Service Fund

Print Shop Fund

Computer Fund

Vehicle Fund

Building Fund

Total Internal Service Funds

REVENUES Service charges

$

Recovered costs Miscellaneous Total revenues

2,005 40 -

$

1,778 109 28

$

309 3 -

$

3,224 28 -

$

407 -

$

7,723 180 28

2,045

1,915

312

3,252

407

7,931

Administration

933

130

261

1,623

27

2,974

Insurance premiums/ prescriptions

689 437 -

2,212 86

3

564 846

642 259

689 437 3,418 1,194

2,059

2,428

264

3,033

928

8,712

48

219

(521)

(781)

40 374 (24)

EXPENSES

Uninsured damages and claims Repair and maintenance Depreciation Total expenses Operating income

(14)

(513)

96 -

134 -

1 (2)

40 114 -

29 (22)

96

134

(1)

154

7

82

(379)

47

373

(514)

(391)

-

(11)

112 -

123 (11)

47

362

(402)

(279)

67

12,082

114

$ 12,444

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

Total non-operating revenues (expenses)

INCOME BEFORE TRANSFERS TRANSFERS IN TRANSFERS OUT

-

CHANGE IN NET ASSETS

82

NET ASSETS, BEGINNING NET ASSETS, ENDING

11 (368)

4,602 $

4,684

9,032 $

8,664

95

$

$

390

2,510

28,293

2,108

$ 28,014

CITY OF

ARVADA, COLORADO

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 2011 (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 Net cash provided (used) by operating activities

Insurance Service Fund

Computer Fund

Print Shop Fund

Vehicle Fund

Building Fund

Total Internal Service

$

$

$

$

$

$

36 2,005 (1,296) (443) (459) (157)

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

-

137 1,778 (2,081) (101) (267)

4 309 (98) (1) (161) 53

29 3,223 (872) (154) (1,171) 1,055

5 402 (712) (305)

211 7,717 (5,059) (598) (1,892) 379

-

11 11

-

(11) (11)

112 112

(11) 123 112

-

-

(7) (2) (9)

(2,361) 118 (2,243)

(89) (22) (111)

(2,361) (96) (24) 118 (2,363)

78 78

113 113

-

97 97

24 24

312 312

(79)

(143)

44

(1,102)

(280)

(1,560)

Cash and cash equivalents January 1, 2011

6,391

8,881

63

7,980

2,093

25,408

Cash and cash equivalents December 31, 2011

6,312

8,738

107

6,878

1,813

23,848

(14)

(513)

48

219

(521)

(781)

(2)

86 (18) 178

846 (46) 2 43

259 -

(2) 97 (235) (1)

3 1 (1) (3) 5

-

-

(9)

-

1,194 (1) (47) (21) 280 (235) (10)

(157)

(267)

53

1,055

(305)

379

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 Net increase (decrease) in cash and cash equivalents

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 (Decrease) increase in accounts payable (Decrease) increase in claims payable (Decrease) increase in accrued benefits Net cash provided (used) by operating activities

96

(43)

CITY OF

ARVADA, COLORADO

INSURANCE SERVICE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$ 2,681

$ 2,681

$ 2,005

$

-

-

40

40

Interest income

66

66

96

30

Total revenues

2,747

2,747

2,141

1,255

1,015

933

82

Insurance premiums

905

905

689

216

Uninsured damages and claims

736

616

437

179

-

360

-

360

2,896

2,896

2,059

837

REVENUES Service charges Recovered costs

(676)

(606)

EXPENDITURES Administration

Transfers Out Total expenditures CHANGE IN NET ASSETS

$

(149)

$

97

(149)

$

82

$

231

CITY OF

ARVADA, COLORADO

COMPUTER FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

Actual

Positive

Original

Final

Amounts

(Negative)

$ 2,001

$ 1,838

$ 1,778

$

46

46

109

63

Miscellaneous Costs

-

-

28

28

Interest income

-

-

134

134

Gain (loss) on sale of assets

2

2

-

(2)

REVENUES Service charges Recovered Costs

Transfers In Total revenues

(60)

-

-

11

11

2,049

1,886

2,060

174

EXPENDITURES Administration Repair and maintenance Total expenditures CHANGE IN NET ASSETS

86

86

130

(44)

4,102

4,102

2,212

1,890

4,188

4,188

2,342

1,846

$ (2,139)

$ (2,302)

$

(282)

ADJUSTMENTS TO GAAP BASIS (86)

Depreciation CHANGE IN NET ASSETS, GAAP BASIS

$

98

(368)

$

2,020

CITY OF

ARVADA, COLORADO

PRINT SHOP FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original

Final

Actual

Positive

Amounts

(Negative)

$

$

REVENUES Service charges

$

413

$

-

Recovered Costs

413 -

309 3

(104) 3

Interest income

-

-

1

1

Total revenues

413

413

313

(100)

355

355

261

94

12

12

-

12

Principal

-

-

7

(7)

Interest

-

-

2

(2)

367

367

270

EXPENDITURES Administration Repair and maintenance

Total expenditures CHANGE IN NET ASSETS

$

46

$

46

$

43

ADJUSTMENTS TO GAAP BASIS Principal

7

Depreciation

(3)

CHANGE IN NET ASSETS, GAAP BASIS

$

99

47

97 $

(3)

CITY OF

ARVADA, COLORADO

VEHICLE FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts

REVENUES Service charges

Actual

Positive

Amounts

(Negative)

$

Original

Final

$ 4,284

$ 3,224

$ 3,224

-

-

28

28

75

75

114

39

286

286

40

(246)

4,645

3,585

3,406

(179)

1,652

1,682

1,623

495

494

564

3,323

3,282

2,361

921

-

11

11

-

5,470

5,469

4,559

910

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

$

(825)

$ (1,884)

$ (1,153)

ADJUSTMENTS TO GAAP BASIS Capital Outlay

2,361

Depreciation

(846)

CHANGE IN NET ASSETS, GAAP BASIS

$

100

362

59 (70)

$

731

CITY OF

ARVADA, COLORADO

BUILDING FUND BUDGETARY COMPARISON SCHEDULE Year Ended December 31, 2011 (in thousands)

Variance With Final Budget Budgeted Amounts Original REVENUES Service charges

$

Interest Income Transfers In Total revenues

407

Final

$

407

Actual

Positive

Amounts

(Negative)

$

$

407

-

-

-

29

29

112

112

112

-

519

519

548

29

-

-

27

(27)

EXPENDITURES Administration Repair and maintenance

382

682

642

40

Principal

89

89

89

-

Interest

22

22

22

-

493

793

780

13

Total expenditures

CHANGE IN NET ASSETS

$

26

$

(274)

$

(232)

ADJUSTMENTS TO GAAP BASIS Principal

89

Depreciation

(259)

CHANGE IN NET ASSETS, GAAP BASIS

$

101

(402)

$

42

CITY OF

ARVADA, COLORADO

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102

FIDUCIARY FUND

CITY OF

ARVADA, COLORADO

AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 2011 (in thousands)

Balance

Balance

January 1,

December 31,

2011

Additions

Deductions

$

$

2011

ESCROW FUND ASSETS Cash and investments

$

Accrued Interest Accounts receivable Total assets LIABILITIES Escrow funds Total liabilities

4,111

1,028

552

$

4,587

8

21

8

21

1,865

928

370

2,423

$

5,984

$

1,977

$

930

$

7,031

$

5,984

$

2,341

$

1,294

$

7,031

$

5,984

$

2,341

$

1,294

$

7,031

103

CITY OF

ARVADA, COLORADO

This Page Intentionally Left Blank

104

LOCAL HIGHWAY FINANCE REPORT

ARVADA, COLORADO

CITY OF

Financial Planning 02/0 T he public report burden for this information collection is estimated to average 380 hours annually.

Form # 350-050-36

City of Arvada YEAR ENDING :

LOCAL HIGHWAY FINANCE REPORT

December 2011 This Information From The Records Of:

Prepared By: Daniel Leong

City of Arvada

Phone: 720-898-7122 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. ITEM

Local

B.

Local

C. Receipts from

D. Receipts from

Motor-Fuel

Motor-Vehicle

State Highway-

Federal Highway

Taxes

Taxes

User Taxes

Administration

1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes II. RECEIPTS FOR ROAD AND STREET PURPOSES

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES

AMOUNT

ITEM

AMOUNT

ITEM

A. Receipts from local sources:

A. Local highway disbursements:

1. Local highway-user taxes

1. Capital outlay (from page 2)

a. Motor Fuel (from Item I.A.5.)

2. Maintenance:

b. Motor Vehicle (from Item I.B.5.)

3. Road and street services:

c. Total (a.+b.)

24,416,215 4,735,990

a. Traffic control operations

2. General fund appropriations

36,807,932

b. Snow and ice removal

3. Other local imposts (from page 2)

1,086,360

c. Other

4. Miscellaneous local receipts (from page 2)

0

3,015,980 846,713

d. Total (a. through c.)

3,862,693

5. Transfers from toll facilities

4. General administration & miscellan

678,230

6. Proceeds of sale of bonds and notes:

5. Highway law enforcement and safe

9,140,100

a. Bonds - Original Issues

6. Total (1 through 5)

b. Bonds - Refunding Issues

42,833,228

B. Debt service on local obligations:

c. Notes

1. Bonds:

d. Total (a. + b. + c.)

0

7. Total (1 through 6)

37,894,292

a. Interest b. Redemption c. Total (a. + b.)

B. Private Contributions

0

2. Notes:

C. Receipts from State government (from page 2)

4,197,878

a. Interest b. Redemption

D. Receipts from Federal Government (from page 2)

741,057 42,833,227

E. Total receipts (A.7 + B + C + D)

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 +

42833227.79

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

Amount Issued

Redemptions

Closing Debt 0

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

0

B. Notes (Total) V. LOCAL ROAD AND STREET FUND BALANCE A. Beginning Balance

B. Total Receipts

C. Total Disbursement D. Ending Balance

42833227.49

E. Reconciliation

42,833,228

0

Notes and Comments:

FORM FHWA-536 (Rev. 1-05)

PREVIOUS EDITIONS OBSOLETE

105

(Next Page)

ARVADA, COLORADO

CITY OF

STATE: Colorado YEAR ENDING (mm/yy):

LOCAL HIGHWAY FINANCE REPORT

December 2011 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM

ITEM

AMOUNT

A.3. Other local imposts:

AMOUNT

A.4. Miscellaneous local receipts:

a. Property Taxes and Assessments

a. Interest on investments

b. Other local imposts:

b. Traffic Fines & Penalities

1. Sales Taxes

776,092

c. Parking Garage Fees

2. Infrastructure & Impact Fees

d. Parking Meter Fees

3. Liens

e. Sale of Surplus Property

4. Licenses

f. Charges for Services

5. Specific Ownership &/or Other

310,268

6. Total (1. through 5.) c. Total (a. + b.)

g. Other Misc. Receipts

1,086,360

h. Other

1,086,360

i. Total (a. through h.)

0

(Carry forward to page 1)

ITEM

(Carry forward to page

ITEM

AMOUNT

C. Receipts from State Government

AMOUNT

D. Receipts from Federal Government

1. Highway-user taxes

3,809,048

2. State general funds

1. FHWA (from Item I.D.5.)

2. Other Federal agencies:

3. Other State funds:

a. Forest Service

a. State bond proceeds

b. FEMA

b. Project Match

c. HUD

c. Motor Vehicle Registrations

388,830

d. Federal Transit Admin

d. Other (Specify)

e. U.S. Corps of Engineers

e. Other (Specify)

f. Other Federal

741,057

g. Total (a. through f.)

741,057

f. Total (a. through e.)

388,830

4. Total (1. + 2. + 3.f)

4,197,878

3. Total (1. + 2.g) (Carry forward to page

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL

OFF NATIONAL

HIGHWAY

HIGHWAY

SYSTEM

SYSTEM

(a)

(b)

TOTAL (c)

A.1. Capital outlay: a. Right-Of-Way Costs

7,746,552

2,999,114

b. Engineering Costs

10,745,666 0

c. Construction: (1). New Facilities

0

(2). Capacity Improvements

4,408,518

(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)

5,812,203

10,220,721

3,149,488

3,149,488

300,341

300,341

4,408,518

9,262,031

13,670,549

12,155,070

12,261,145

24,416,215 (Carry forward to page

Notes and Comments:

FORM FHWA-536 (Rev.1-05)

PREVIOUS EDITIONS OBSOLETE

106

Statistical Section

SECTION STATISTICAL

CITY OF

ARVADA, COLORADO

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

108 109 110 111 112

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

113 114-115 116-117 118 119

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

120 121 122 123 124 125 126

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.

107

127 128-129

130 131 132

CITY OF

ARVADA, COLORADO

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

Fiscal Year 2003

2004

2005

2006

2007

2008

2009

2010

2011

Governmental Activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets

$ 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

$ 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 20,306 100,289 $ 342,792

$ 234,874 25,837 95,365 $ 356,076

Business-type Activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net assets

$ 126,226 69,579 $ 195,805

$ 136,294 71,309 $ 207,603

$ 146,968 71,037 $ 218,005

$ 160,118 83,312 $ 243,430

$ 174,370 100 89,078 $ 263,548

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

$ 194,128 89,902 $ 284,030

$ 198,953 1,865 85,899 $ 286,717

$ 206,768 1,866 85,717 $ 294,351

Primary Government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets

$ 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

$ 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 22,171 186,188 $ 629,509

$ 441,642 27,703 181,082 $ 650,427

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.

108

CITY OF

ARVADA, COLORADO

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

City of Arvada Changes in Net Assets, Last Nine 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

Fiscal Year 2005 2006

2007

2008

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

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

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

89,471

81,289

87,748

13,962 6,816 6,860

15,524 7,007 6,421

16,288 6,931 6,982

26,850

27,638

28,952

$ 100,695

$ 99,545

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

Total governmental activities program revenues

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

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

2003

2004

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

$ 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

73,845

71,907

13,949 6,315 6,586

2009

2011

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

15,586 22,999 17,102 14,382 10,000 4,734 1,579

14,280 23,989 25,631 7,121 10,613 4,420 1,501

90,597

86,280

86,382

87,555

17,137 7,633 6,894

18,807 9,359 7,079

19,386 8,770 7,035

19,169 9,341 6,764

19,544 9,883 7,016

30,201

31,664

35,245

35,191

35,274

36,443

$ 118,423

$ 111,490

$ 119,412

$ 125,842

$ 121,471

$ 121,656

$ 123,998

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 1,578 2,603 5,819 11,789 3,020

5,333 2,038 1,799 6,720 9,218 6,470

34,762

31,079

35,013

31,389

38,154

42,408

28,544

29,939

31,578

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

17,170 9,904 8,519 64 2,584

18,221 10,336 8,497 200 6,519

35,201

35,636

35,155

42,463

43,303

47,332

34,967

38,241

43,773

$ 69,963

$ 66,715

$ 70,168

$ 73,852

$ 81,457

$ 89,740

63,511

$ 68,180

$ 75,351

109

$

2010

$

CITY OF

ARVADA, COLORADO

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

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

2003

2004

(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

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

$

Fiscal Year 2005 2006 (54,458) 6,203 ($48,255)

4,412 $ 4,404 3,490 34,956 34,674 4,481 4,295 4,141 4,746 643 5,258 (2,766) (1,751) 49,357 51,626

2007

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

$

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

2008

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

$

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

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

$

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

854 180 2,766

1,653 795 1,751

3,279 7,190 2,694

5,244 411 2,824

3,832 158 111

Total business-type activities Total primary government

2,209 $ 51,773

3,800 $ 53,157

4,199 $ 55,825

13,163 $ 70,079

8,479 $ 75,559

4,101 $ 69,773

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

10,481 10,560 $ 21,041

8,529 11,798 $ 20,327

(2,832) 10,402 $ 7,570

7,016 25,425 $ 32,441

17,486 20,118 $ 37,604

17,483 16,188 $ 33,671

Source: City of Arvada, Finance Department 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.

110

2009

2010

2011

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

(56,443) 2,967 ($53,476)

(55,977) 7,330 ($48,647)

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

4,961

4,953

50,259 4,761 1,206 1,198 1,381 63,766

50,996 4,648 1,602 471 931 63,601

1,361 1,319 (882)

894 207 (1,381)

1,148 87 (931)

$

1,798 64,333

(280) $ 63,486

304 $ 63,905

$

4,799 1,574 6,373

7,323 2,687 $ 10,010

7,624 7,634 $ 15,258

$

CITY OF

ARVADA, COLORADO

City of Arvada Fund Balances â&#x20AC;&#x201C; Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

General Fund Reserve Unreserved Nonspendable Restricted Committed Assigned Unassigned Total general fund

2002

2003

2004

$ 1,745 27,976 29,721

$ 2,142 28,504 30,646

$ 2,209 33,084 35,293

8,361

5,730

14,260

Fiscal Year 2005

2006

2007

2008

2009

2010

2011

$ 2,506 27,132 29,638

$ 2,336 28,696 31,032

$ 2,623 25,981 28,604

$ 2,484 27,325 29,809

$ 2,521 30,218 32,739

2,406 18,652 21,058

607 1,780 2,731 17,947 23,065

4,876

8,669

10,986

13,382

15,048

16,530

17,855

-

14,822

13,809

11,509

11,827

16,254 745 18,077 -

14,862 343 34,275 -

14,831 377 48,810 -

301 24,098 24,279 30,354 -

$

All Other Governmental Funds Reserve Unreserved Special revenue funds Debt Service Capital project funds Nonspendable Restricted Committed Assigned Unassigned Subtotal All Other Governmental Funds

20,454 -

20,985 -

17,127 -

24,196 -

14,163 -

14,605 637 16,566 -

43,075

41,537

35,812

44,374

36,976

45,190

50,124

66,010

81,873

79,032

Total Governmental Funds Reserve Unreserved Nonspendable Restricted Committed Assigned Unassigned

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 -

21,033 82,670 -

908 25,878 24,279 33,085 17,947

$ 72,796

$ 72,183

$ 71,105

$ 74,012

$ 68,008

$ 73,794

$ 79,933

$ 98,749

$ 103,703

$ 102,097

Total all other governmental funds

Source: City of Arvada Finance Department Note: In Fiscal Year ending December 31, 2011, the City of Arvada Government Accounting Standard Board Statement number 54. The presentation of fund balance five Fund Balance types are listed above with figures recorded in the applicable categories. A brief definition of these categories are defined on page 48 of the Notes to the Financial Statements section of the CAFR.

111

CITY OF

ARVADA, COLORADO

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

Fiscal Year 2005 2006

2002

2003

2004

2007

2008

2009

2010

2011

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

$ 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 3,014 16,440 9,563 1,558 986 290 924

60,232 2,396 15,166 8,116 1,261 1,231 1,577 839

Total revenues

$ 75,704

$ 78,248

$ 79,835

$ 78,132

$ 87,414

$ 99,254

$ 95,681

$ 89,835

$ 92,322

$ 90,818

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

$ 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 21,219 9,917

11,080 23,555 18,188 21,300 14,551

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

4,073 1,515

Total Expenditures

$ 82,291

$ 78,315

$ 78,153

$ 98,967

$ 92,488

$ 91,182

$ 90,001

$ 84,796

$ 91,738

$ 94,262

(6,587)

(67)

1,682

(20,835)

(5,074)

8,072

5,680

5,039

584

(3,444)

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)

-

-

30,777 (26,407)

14,955 (14,136)

(2,002)

(546)

(2,760)

23,742

(930)

(2,286)

459

1,603

4,370

819

2,907

$ (6,004) $

5,786

6,139

$ 6,642

$ 4,954

$ (2,625)

7%

6%

7%

7%

Revenues:

Expenditures:

Excess (Deficiency) of Revenues Over (Under) Expenditures 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

$ (8,589) $

Debt service as a % of Noncapital Expenditures

8%

(613) $ (1,078) $

9%

5%

5%

Source: City of Arvada, Finance Department

112

7%

7%

$

CITY OF

ARVADA, COLORADO

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

City Direct Rates

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Basic Rate 3.21% 3.21% 3.21% 3.21% 3.46% 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% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%

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

Cultural Facilities District

Baseball Football Stadium District

0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%

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. The Baseball/Football stadium taxes expire Jan 1, 2012.

113

CITY OF

ARVADA, COLORADO City of Arvada Sales and Use Tax Last Ten Fiscal Years

2002 Sales Tax: Grocery Chain Stores Fast Food Restaurants General Dept Stores Public Utilities Restaurant & Lounges Telephone Equipment & Service Misc. - Other Total Sales Tax

$

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

2005 $

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

33,926,363

34,347,950

35,242,893

35,655,856

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

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

Total Use Tax

1,218,720

1,241,634

1,188,456

1,325,378

Auto Use

5,988,125

5,831,569

5,568,113

5,230,665

Building Use

2,345,927

1,785,921

3,060,688

2,582,355

$ 43,479,135

$ 43,207,074

$ 45,060,150

$ 44,794,254

3.21%

3.21%

3.21%

3.21%

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

Source: City of Arvada, Finance Department

Note: Increased Sales and Use Tax revenue for Fast Food Restaurants is tied to the increase in new fast casual style restaurants which opened in 2011. Grocery Chain Stores had an increase in Use Tax due to the initial construction phase of a large remodeling project for an 80th & Wadsworth location.

Decreased Use Tax in Public Utilities from 2011 to 2010 relates to the replacement of infrastructure lines in 2010. The overall increase in Sales Tax revenue is reflected in several areas such as; General Department Stores in big box locations, a resurgence of car leases from 2010 and an increase in home improvement areas such as furniture, flooring and appliances. This report has been reformatted to reflect both Sales and Use Tax totals presented on a cash basis. Auto and Building Use taxes are reported on an accrual basis. The Miscellaneous category includes all businesses not listed in the above categories.

114

CITY OF

ARVADA, COLORADO City of Arvada Sales and Use Tax Last Ten Fiscal Years

2006 $

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

2007 $

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

2008 $

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

2009 $

2010

2011

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

7,319,409 2,167,255 7,492,172 3,155,985 2,368,744 1,576,849 17,159,077

39,379,156

40,727,754

41,505,402

40,248,879

40,425,882

41,239,491

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

145,708 45,810 28,893 425,956 45,491 1,670 1,135,344

1,608,394

1,306,332

1,603,376

1,952,358

2,356,959

1,828,872

4,978,494

5,444,119

4,957,715

4,534,445

4,593,311

5,006,383

2,404,810

1,930,349

1,772,748

2,382,088

2,078,930

2,070,334

$ 48,370,854

$ 49,408,554

$ 49,839,241

$49,117,770

$49,455,082

$50,145,080

3.46%

3.46%

3.46%

3.46%

3.46%

3.46%

115

CITY OF

ARVADA, COLORADO

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

2002

2003

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2004

2005 Percentage of Total City Taxable Taxable Taxable Assessed Assessed Assessed Value Rank Value Value Rank

2006 Percentage of Total City Taxable Taxable Assessed Assessed Value 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 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

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

9 4 3 5 7 2 1 10 6 8 -

$ 56,959

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

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

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

116

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% -

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

7.70%

$ 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% -

7.63%

CITY OF

ARVADA, COLORADO

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

2007

2008

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2009

2010

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value

2011

Percentage of Total City Taxable Taxable Assessed Assessed Value Rank 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

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

$ 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

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% -

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

6.95%

$ 90,090

117

10 7 9 5 3 1 4 2 6 8 -

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% -

3,609 3,420 3,364

18,915 15,902 12,290 4,160 3,839 -

7.85%

$ 76,850

4,372 6,979

8 9 10 5 4 1 2 3 6 7 -

0.32% 0.30% 0.00% 0.39% 0.62% 1.69% 1.42% 1.10% 0.37% 0.34% -

6.54%

CITY OF

ARVADA, COLORADO

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

Fiscal Year Ended 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Taxes Levied for the Fiscal Year (1) 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 4,677,597

Collection within the Fiscal Year of the Levy Collections Total Collections to Date Percentage in Subsequent Percentage Amount of Levy Years Amount of Levy 3,599,394 3,673,671 3,992,477 3,993,781 4,135,847 4,383,304 4,718,720 4,770,519 4,637,622 4,643,015

99.43% 99.42% 100.73% 99.94% 99.20% 99.11% 99.18% 99.31% 99.34% 99.26%

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 2011 is 4.31.

118

0.00 0.00 0.00 0.00 0.00 3,853 2,080 1,795 1,108 1,750

3,599,394 3,673,671 3,992,477 3,993,781 4,135,847 4,387,157 4,720,800 4,772,315 4,638,730 4,644,765

99.43% 99.42% 100.73% 99.94% 99.20% 99.19% 99.22% 99.34% 99.36% 99.30%

CITY OF

ARVADA, COLORADO

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

2002 2003 2004 $ 19,473,130 $ 24,888,210 $ 24,582,300 $ 631,774,510 $ 668,716,330 $ 678,489,350 $ 158,006,570 $ 169,080,180 $ 169,543,790 $ 49,597,740 $ 59,594,190 $ 59,461,020 $ 1,464,220 $ 1,522,620 $ 1,532,080 $ 320 $ 320 $ 320 $ 34,571,620 $ 50,996,310 $ 45,218,320 $ 2,979,570 $ 2,776,230 $ 2,563,490 $ 897,867,680 $ 977,574,390 $ 981,390,670

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

4.31

Estimated actual taxable value

$

7,822,202

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

$

11.5%

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

Total direct tax rate Estimated actual taxable value

4.31

10.3%

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

4.31 $

Assessed value as a percentage of estimated actual value

10,577,558

9,465,987

$

10,844,919

10.6%

10.5%

Source: Jefferson and Adams County Assessors' offices.

119

4.31 $

$

10.2%

10,359,457 10.9%

9,828,930

4.31 $

10.5%

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 $

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

4.31

9,576,687

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

4.31

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

10.6%

2011 $ 20,501,926 $ 717,675,555 $ 219,477,899 $ 67,948,483 $ 2,076,911 $ 415 $ 53,119,623 $ 3,245,250 $ 1,084,046,062

4.31 $

10,359,672 10.8%

9,886,572

4.31 $

10,157,393 10.7%

CITY OF

ARVADA, COLORADO

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

Governmental Activities Sales General Tax Certificates of Fiscal Obligation Increment Capital Year Bonds Bonds Lease Participation 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

7,840 -

45,615 45,020 43,770 41,930 39,405 36,790 34,080 30,770 27,775 24,675

13 7 1,010 977 909 846 768 1,121 783 534

18,505 17,800 17,070 16,320 15,550 14,755 13,935

Business-Type Activities

Water Bonds 30,280 29,135 27,940 26,690 25,390 24,030 22,615 20,205 18,655 17,025

Source: City of Arvada Finance Department

120

Capital Leases

Total Primary Government

Percentage of Personal Income

2,578 2,297 2,006 1,698 2,617 2,465 2,009 1,093 875 647

86,326 76,459 74,726 89,800 86,121 81,201 75,792 68,739 62,843 56,816

3.50% 3.44% 3.45% 3.11% 3.67% 2.51% 2.55% 1.95% 1.95% 1.71%

Per Capita 0.83 0.75 0.72 0.87 0.84 0.77 0.71 0.64 0.58 0.53

CITY OF

ARVADA, COLORADO

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

General Bonded Debt Outstanding

Fiscal Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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 (2002-2011), Jefferson and Adams County Assessors Offices, Denver Regional Council of Governments

121

Per Capita

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

CITY OF

ARVADA, COLORADO

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

-

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

$

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

Estimated Share of Overlapping Debt

$

-

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

-

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

Estimated Share of Overlapping Debt

General Obligation Bonded Debt Outstanding

2009 Percents Applicable To City

General Obligation Bonded Debt Outstanding

Jurisdiction

Total

2006 Percents Applicable To City

General Obligation Bonded Debt Outstanding

$

-

-

$

$

2010 Percents Applicable To City

-

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%

153,563

965,880

13.26%

$ 107,224,552

$ 630,155,880

Estimated Share of Overlapping Debt

$

2008 Percents Applicable To City

General Obligation Bonded Debt Outstanding

-

-

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

Estimated Share of Overlapping Debt

$

-

$

$

$

-

$ 115,369,786

2011 Percents Applicable To City

General Obligation Bonded Debt Outstanding

Estimated Share of Overlapping Debt

-

100.00%

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

452,710,000 92,910,000 10,360,000 12,280,000 5,345,000

15.01% 6.60% 82.48% 4.25% 100.00%

67,941,734 6,136,090 8,544,473 521,718 5,345,000

128,076

774,970

16.65%

129,013

$ 96,526,136

$ 574,379,970

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.

Percentages have been updated from the prior year based on assessed valuation figures from the 2011 Jefferson and Adams County abstacts.

122

Estimated Share of Overlapping Debt

$

-

$ 88,618,027

123

$

0.00%

234,666,063

-

234,666,063

$

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

0.00%

283,979,601

-

283,979,601

2003

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

2002

$

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 2011 Actual Value $10,279,371,136 Debt limit (3.00% of actual value) 308,381,134 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 308,381,134

$

0.00%

313,565,250

-

313,565,250

2006

$

0.00%

337,823,019

-

337,823,019

2007

$

0.00%

325,347,584

-

325,347,584

2008

$

0.00%

315,775,961

-

315,775,961

2009

0.00%

$ 315,627,271

-

315,627,271

2010

0.00%

$ 308,381,134

-

308,381,134

2011

CITY OF

ARVADA, COLORADO

City of Arvada Legal Debt Margin Information Last Ten Fiscal Years

CITY OF

ARVADA, COLORADO

City of Arvada Pledged-Revenue Coverage Last Ten Fiscal Years

Year

Utility Service Charges

Less: Operating Expenses

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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 21,541,000

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 15,046,000

Water Revenue Bonds Net Debt Service Available Revenue Principal Interest 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 6,495,000

Coverage

2,795,000 1,791,521 1,145,000 1,207,383 1,195,000 408,721 1,250,000 713,999 1,300,000 946,425 1,360,000 959,164 1,415,000 1,054,494 1,540,000 944,004 1,550,000 697,288 1,630,000 626,495

2.17 3.21 5.70 3.85 7.90 5.89 4.15 1.26 2.10 2.88

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.

124

Sales and Use Tax Bonds Sales Debt Service Tax Increment Principal Interest Coverage 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 24,675,000

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 3,250,434

2,669,440 2,261,558 1,898,941 1,846,441 1,777,421 1,690,339 1,593,666 840,853 1,061,698 935,309

9.32 7.56 13.90 11.37 9.16 8.55 7.92 9.98 6.39 5.90

CITY OF

ARVADA, COLORADO

Schedule of Debt Service Requirements Governmental Activities December 31, 2011

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

Year 2011 2012 2013 2014 2015 2016 2017 Totals

Principal 1,370,000 1,420,000 1,465,000 1,520,000 1,580,000 1,640,000 $8,995,000

Interest 334,844 288,606 238,906 185,800 128,800 65,600 $1,242,556

Total Payment 1,704,844 1,708,606 1,703,906 1,705,800 1,708,800 1,705,600 $10,237,556

Principal Balance 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 2011 2012 2013 2014 2015 2016 2017 2018 TOTALS

Principal 1,830,000 1,890,000 1,935,000 1,990,000 2,045,000 2,105,000 3,885,000 $15,680,000

Interest 499,275 435,225 387,975 339,600 279,900 218,550 155,400 $2,315,925

125

Total Payment 2,329,275 2,325,225 2,322,975 2,329,600 2,324,900 2,323,550 4,040,400 $17,995,925

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

CITY OF

ARVADA, COLORADO

Schedule of Debt Service Requirements Business-Type Activities December 31, 2011

Water Enterprise Revenue Refunding Bonds - Series 2009

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

Principal 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 $17,025,000

Interest 585,700 535,300 500,700 456,700 402,550 346,750 251,000 170,600 87,000 $3,336,300

126

Total Payment 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 $20,361,300

Principal Balance 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 $ --

CITY OF

ARVADA, COLORADO

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

Year

Population

Personal Income (in thousands of dollars)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

101,925 103,125 102,655 103,004 105,455 107,050 106,327 107,702 108,539 106,433

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 3,316,346

Per Capita Income

Median Age

School Enrollment

Unemployment Rate

24,208 21,536 21,103 28,017 22,242 30,231 27,922 32,711 29,639 31,159

37.5 37.2 37.2 37.2 37.2 37.2 39.8 39.4 39.4 40.5

18,999 18,495 18,434 17,488 18,286 18,064 19,469 19,624 19,409 18,947

6.30% 6.90% 6.30% 5.70% 4.40% 4.30% 5.60% 8.10% 9.80% 8.30%

Source: Denver Regional Council of Governments, Adams and Jefferson County School Districts, Arvada Ecomonic Development Department, and Colorado Department of Labor and Employment

127

128

3 9

350 190

53,782

Total Employees

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%

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%

Figure for 2011 constitutes 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 **Totals for Target, Costco, and Home Depot for 2011 are estimates

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

50,064

3,718

1 2 4 5 6 8 7 10 8

900 643 310 300 230 200 220 175 200

% 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

2003

2002

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

2004

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 EmployeesRank Employment

###

56,888

53,837

3,051

160

157

180 175 160

9

10

7 8 9

6

5 4

220 300 200

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%

% of Total City EmployeesRankEmployment

2006

CITY OF

ARVADA, COLORADO

129

Total Employees

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

6 7 8 10

180 160 150 140

94.61% 100.00%

57,940

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%

54,817

3,123

9 8

4 5 5

275 200 200

143 150

2 1 3

7

9 10

160

145 140

57,381

54,170

3,211

8

10

140

150

6 7

4 5 5

2 1 3

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

% of Total City Employees RankEmployment

450 705 370

2008

2007

54,097

51,284

2,813

173

10

8 9

5 4 7 6

220 275 207 212 180 175

2 1 3

350 691 330

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 RankEmployment

2009

2010

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 RankEmployment

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

56,842

54,051

2,791

189

200 268 180 225 218 155

351 682 323

8

7 4 9 5 6 10

2 1 3

100.00%

95.09%

4.91%

0.33%

0.35% 0.47% 0.32% 0.40% 0.38% 0.27%

0.62% 1.20% 0.57%

% of Total City Employees RankEmployment

2011

CITY OF

ARVADA, COLORADO

CITY OF

ARVADA, COLORADO

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

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

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

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

16.75 24.00 38.75 4.00 70.00 38.00 23.00 29.00 9.00 202.25 227.40

Total

642.75

650.00

653.00

660.00

698.85

705.25

706.75

705.90

691.40

682.15

Function/program

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

130

CITY OF

ARVADA, COLORADO

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

2002

2003

Fiscal Year 2005 2006

2004

2007

2008

2009

2010

2011

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)

6,217

6,770

5,414

4,692

5,077

4,619

5,852

14,582

8,552

5,019

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

2,384 468 8,776

14

---

10 ---

10 ---

9 ---

4 2,409

17 8,858

6 1,343

8 2,716

18 6,723

42 1,547

19,050

14,850

20,560

21,111

21,651

23,356

22,062

21,989

20,830

21,871

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

35,644 141 39 15,805,112

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

Note: Building permits decreased over the prior year due to a decrease in roof repairs and new construction. Pothole repairs decreased over the prior year due to the city's efforts on milling and overlay projects. This can be seen through the increase in street resurfacing miles over the prior year.

131

CITY OF

ARVADA, COLORADO

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)

2002

2003

2004

2005

Fiscal Year 2006

2007

2008

2009

2010

2011

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

1 79 3

392

392

392

398

401

404

404

411

413

420

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

38

72 41 27 19

75 41 27 19

75 41 27 19

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

572 4768

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

410 148 3,548

Source: City of Arvada, Police, Parks & Rec, Public Works Departments

132