2013 Second Quarter
Financial Report
Table of Contents Mid-Year Outlook.............................................................. 1-2 General Fund..................................................................... 3-7 Arvada Center................................................................... 8-9 Parks Fund.................................................................... 10-11 Special Revenue Funds................................................... 12-13 Capital Improvement Fund............................................ 14-15 Enterprise Funds............................................................. 16-21 Internal Service Funds....................................................22-24 Arvada Economic Development Association...................... 25 City of Arvada Investment Report................................ 26-28
overview
OVERVIEW
Mid-Year Outlook Nearly five years from the height of the global financial crisis, the City’s revenues have rebounded and are seeing healthy increases. In the General Fund, sales taxes for the first five months of 2013 are 4.36% more than the same period last year. Auto use tax, another major revenue source, is 5.9% over the same period in 2012. Also indicative of the health of the City is the increase in building-related revenues. As the graph below illustrates, the number of single-family building permits in 2013 is outpacing the activity from 2012, which produced the second highest building-related revenues in the last ten years.
Dollars
General Fund Building Revenue as of June $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 GF Building Revenue Single Family (Detached) Permits
245 210 175 140 105 70 35 0
2008 $1,605,010
2009 $1,320,066
2010 $2,141,038
2011 $1,537,119
2012 $2,488,389
2013 $3,337,113
60
24
62
75
157
233
The increase in building activity is also a positive for the Water and Wastewater funds through the tap fees that are paid by developers as they connect to the City’s systems. The tap fees have almost doubled since this same time in 2012. Although tap fee revenue has increased, we must still focus attention on water revenue. Through the first six months of the year, water consumption is down over 18%. The decrease in water consumption is due to two factors. First, during the month of April, there were multiple snow storms providing much-needed precipitation to outdoor landscaping for many customers. Second, from April l to June 26, Denver Water imposed Stage 2 drought restrictions (which the City is required to adopt since it receives its water from Denver Water) that limited customers to a two-day-per-week watering schedule. In the second half of 2013, we expect to make a $36 million payment to Denver Water for the City’s participation in the Denver Water Moffat project, which, when finished, will provide the City up to 3,000 acre feet of water. The Arvada Center revenues are down 13% from the same period last year. The decrease can be attributed to the timing of the summer show. Expenditures appear to be slightly down from 2012. However, since the summer show had not ended by the close of the second quarter, not all expenditures are accounted for at this time. We will continue to review activities at the Arvada Center throughout the rest of the year.
1
Revenues from the Golf Fund are down 12% when compared to 2012. A wet spring and closures in the restaurants are the causes for the decline. Playable rounds rebounded in June, with the busiest June since 2008 at West Woods. With several months left in the season, the third quarter results will present a more complete picture of the Golf Fund. Overall, the financial picture of the City is positive. Resources in many funds are adequate to sustain services to our citizens and offer new infrastructure assets such as Ralston Central Park and Wolff Park. The City will see two new Community Stations towards the end of the year and work can be seen along the Gold Line, the rail system that will link the City to downtown Denver.
The number of single-family building permits in 2013 is outpacing the activity from 2012, which produced the second highest building-related revenues in the last ten years.
2
general fund
GENERAL FUND
General Fund Overview The General Fund pays for the City’s basic services. This includes police, street maintenance, planning, transportation planning, street light maintenance and costs, building activity and general administration. In addition, the General Fund also provides for the following: • Operational support to the Arvada Center • Operational support to the Parks Fund • General Debt Service payments • Transfer to the Capital Improvements Fund for new parks, transportation and other infrastructure projects The following table provides a comparison of budgeted cash balances, revenues and expenditures to budget and prior year amounts in the same areas. As the table illustrates, we began the year with $22,965,000 in cash reserves. We budgeted $67,932,479 in revenues and $68,866,754 in expenditures. Since expenditures exceeded revenues, Council made a decision in 2012 to use $934,275 of cash reserves to balance the 2013 budget. At the end of 2012, we also had $3,680,526 included in the fund balance for projects that were not completed in 2012. Since appropriations lapse at the end of the calendar year, there are requests to re-appropriate these monies in the next year. On April 1, Council approved the carryover ordinance for project funds that needed to be re-appropriated. These amounts are shown in the carryover section of the table.
General Fund
As of 6/30/13
2013 Budget
As of 6/30/12
Beginning Fund Balance
$22,965,000
$22,965,000
REVENUES
$67,932,479
$30,739,733
$28,290,944
Ongoing
65,649,288
27,425,567
25,720,308
Capital
3,217,466
-
4,875,541
JPPHA
-
155,000
1,083,333
AEDA
-
-
500,000
$68,866,754
$27,580,567
$32,179,182
$72,547,280
$27,580,567
$32,179,182
(4,614,801)
3,159,166
(3,888,238)
$18,350,199
$26,124,166
EXPENDITURES
Expenditures 2013 Carryovers JPPHA Capital-Gold Line Improvements
2,500,000
Street Maintenance
163,721
Other
106,805
Total Expenditures Income/Loss Ending Fund Balance
3
910,000
Overall, the major revenue categories are continuing the positive trend. Sales tax growth is over 4% from the same period in 2012. Building use tax collections are at 88% of the 2013 budget due to continued building activity in the City. The major revenue categories of sales tax, use tax, property tax and intergovernmental revenues are discussed in more detail in the “Revenue Highlights” section. Investment returns show no movement, and will therefore be substantially short of budget estimates. The investment section at the end of this report will provide details of the City’s investments. Expenditures through six months in 2013 are less than expenditures in 2012. This is due to the one-time transfer of $500,000 to AEDA and a transfer of $1,083,333 to JPPHA for the purchase of land, both occurring in 2012. In addition, the timing of the transfer from the General Fund to the Capital Improvement Fund also accounts for the difference in expenditures. If the transfers are removed, expenditures are 6.6% more in 2013 than in 2012. This increase is expected as personnel-related expenditures were budgeted to increase 3.9% as a result of step and market increases and non-personnel related expenditures increased an average of 3%. In addition, the timing of street maintenance activities is occurring earlier in 2013 than in 2012. Budgeted expenditures also include one-time expenditures of $450,000 for the comprehensive plan and historical survey.
Revenue Highlights The following section highlights the sources generated to meet the operating expenditures of the General Fund. The City’s revenues come from many sources as illustrated in the graph below. Sales tax, use tax, property tax and intergovernmental revenues are the largest sources of revenue and are detailed in the next few pages. The remaining revenue sources consist of building permits, utility fees, fees we receive from other funds for general services, fees and fines, and miscellaneous revenues.
GENERAL FUND REVENUE
Intergovernmental 7%
All Other 7%
Administrative Services Use Tax 4% 8%
Property Tax 7% Building Activity 5%
Sales Tax 55%
Utility Fees 7%
4
Sales Tax SALES TAX COLLECTIONS
Sales tax collections in 2013 are continuing the upward trend from 2012. The graph below shows actual sales tax collections from 2009 to 2013. Sales tax collections lag one month; therefore, collections through the second quarter represent sales tax collections for five months.
$40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Sales Tax
06/30/2009 $13,774,078
06/30/2010 $13,831,761
06/30/2011 $14,281,950
06/30/2012 $15,085,589
06/30/2013 $15,743,984
2013 Budget $38,589,702
Use Tax
The City has three prime use tax types: general, building and automobile. These are taxes paid in lieu of sales tax on purchases.
USE TAX COLLECTIONS $8,000,000
General use tax is $128,000 over 2012 actuals through six months and is on pace to meet the budget of $1.2 million.
$7,000,000 $6,000,000 $5,000,000
Building use tax for 2013 is at $1.6 million, which will easily exceed the 2013 budget amount of $1.8 million. The ten-year financial plan anticipated growth, but not as quickly as we have seen in the past 18 months.
$4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Sales tax receipts for the first five months of 2013 are 4.36% above 2012 actuals. Sales tax collections are on track to exceed the 2013 budget of $38,589,803. Budgeted sales tax collections for 2013 represented a 3% increase over the 2012 budget. Because of increased sales tax collections in 2012, 2013 budgeted sales tax represents a 1.7% over 2012 actuals. As the next ten-year financial plan is reviewed, the sales tax base will be reset to reflect the 2012 actual collections.
06/30/2009
06/30/2010
06/30/2011 Building
06/30/2012
Auto
6/30/2013
2013 Budget
General
Property Tax
The City’s property tax rate is 4.31 mills per $100 of valuation. In Colorado, the mill rate is placed on the assessed valuation. The following graph illustrates the year-to-date collections for the past four years and the current year.
PROPERTY TAX COLLECTIONS $5,000,000 $4,500,000 $4,000,000 $3,500,000
Property tax is a stable revenue source for the City. Currently, property tax receipts are $70,000 above the 2012 receipts for the first six months of the year, but may be slightly under the budget amount of $4.6 million.
$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Property Tax
Auto use tax collections are showing a 5.9% increase over 2012 collections. Auto use tax collections are on track to exceed the 2013 budgeted amount of $4,580,610, which is a 7% increase over the 2012 budget.
06/30/2009 $3,210,287
06/30/2010 $3,266,618
06/30/2011 $2,642,707
06/30/2012 $3,226,229
06/30/2013 $3,296,677
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2013 Budget $4,600,000
Intergovernmental Revenues
INTERGOVERNMENTAL REVENUES
This category is made up of two revenue sources, Highway Users Trust Fund (HUTF), which is the City’s share of State-collected gas tax revenue, and Road and Bridge, which is the City’s share of property tax collected by Jefferson County and dedicated to the maintenance of roads and bridges. Combined, these revenues have averaged between $4.5 million and $4.7 million in the past five years and are budgeted for a little more than $4.7 million in 2013. Road and Bridge funds are disbursed quarterly. The graph shows the first disbursement received in April. The next disbursement will be received in July and we are on pace to meet budget for the year. HUTF funds are received monthly and the graph shows five months of revenue. These funds are fairly stable and are also on pace to meet budget.
$5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
06/30/2009
06/30/2010
06/30/2011
HUTF
06/30/2012
06/30/2013
2013 Budget
Jefferson County
Expenditure Highlights The largest expenditure in the General Fund is personnel costs which account for 52% of expenditures.
GENERAL FUND EXPENDITURES Supplies & Expenses 7%
Contracts 12%
Miscellaneous 1%
Services & Charges 10%
Personnel 52%
Debt Service 6%
Transfers 12%
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Salary and Benefit Expenditures PERSONNEL
2013 Budget
As of 6/30/13
As of 6/30/12
$ 27,678,938
$ 12,173,608
$ 11,815,447
(861,394)
-
-
903,476
420,589
309,713
Group Insurance
4,701,740
2,145,288
1,862,002
Retirement
3,172,604
1,433,616
1,387,040
Medicare
321,853
144,529
137,416
Temporary Wages & SS
541,216
163,029
120,439
Other
332,149
175,645
169,922
Total
$36,790,582
$16,656,303
$15,801,977
Salaries & Wages Vacancy Savings Overtime
Traffic Engineering, Streets, and Facilities Management represent the bulk of the increase in Temporary Wage expenditures. This spring’s repeated snow events hastened much of the rise in Overtime due to the need to plow. Despite these, as well as four high-impact retirements thus far in 2013, the General Fund is currently on pace to meet the budgeted Vacancy Savings total for 2013.
Fuel Expenditures Fuel General Fund Parks Police Tax Increments Utilities Other Total Expenditures
2013 Budget
As of 6/30/13
As of 6/30/12
$ 536,447
$ 271,495
$ 258,588
202,185
78,904
82,042
50,204
28,903
29,153
200,929
73,090
72,444
63,094
25,588
32,514
$1,052,859
$477,981
$474,740
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arvada center
ARVADA CENTER
Arvada Center Arvada Center
2013 Budget
As of 06/30/13
$ 232,000
$ 232,000
$ 6,138,453
$ 2,064,623
$ 2,536,902
SCFD
1,065,020
283,286
248,321
City Cash Transfer
1,643,122
821,561
821,561
City In-Kind Transfer
2,000,000
-
-
$10,846,595
$ 3,169,470
$ 3,606,784
Beginning Fund Balance
As of 06/30/12
Education revenues continue to be up slightly (2%) over 2012.
REVENUES Generated
Total Revenues EXPENDITURES Ongoing
$ 10,844,820
$ 3,719,703
$ 3,959,026
-
-
-
$10,844,820
$ 3,719,703
$ 3,959,026
1,775
(550,233)
(352,242)
233,775
$ (318,233)
In-Kind Total Expenditures Income/(Loss) Ending Fund Balance
$
show positive revenue growth in 2013 versus 2012 by about $125,000.
Revenue Highlights The reduction in revenues from second quarter 2013 compared to second quarter 2012 reflect a timing difference in the summer show and the cancellation of one of our external partnerships. Legally Blonde ran during the month of June 2012 where Curtains will run during the month of July 2013. In addition, the Lone Tree Arts Center decided to not renew the contract for the traveling shows. The combined revenue for these two events was a little over $595,000. If you remove these, the Center would
8
Another positive is the subscription campaign. The 2013 campaign started a month earlier, in March, versus 2012. This has led to an increase of 6% over 2012. The trend looks like it will hold and it will represent the first time in five years that sales have not been flat or lower.
Expense Highlights The same timing difference related to the theater shows and the Lone Tree traveling show exists with expenditures but not at the same level. Many of the expenditures for the show Curtains have been processed and paid in June. Items such as set build, rehearsals and lighting design have already hit for about $292,000. Royalties and day-of-show costs will show in July. Taking out these expenses, overall expenditures are about $130,000 greater than in 2012. Curtains was the first show for which the Center used its new proactive approach to cost reductions and the hope is that there will be savings without effecting quality.
SCFD Revenue $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0
06/30/2009
06/30/2010
06/30/2011
06/30/2012
06/30/2013
2013 Budget
A majority of the Scientific and Cultural Facilities District (SCFD) grant contributions are received in the second half of the year. Current contributions are up 14% over last year. This trend will be one that we keep an eye on as the budget only calls for a 3% increase. As the economy improves, the pot of money should increase as the source of this grant funding is sales tax-based. There is increased competition each year from other arts and cultural facilities, but the Arvada Center continues to be the leader in the TIER 2 institutional category for funding.
City of Arvada Contributions $4,000,000 $3,500,000 $3,000,000 $2,500,000
In-Kind
$2,000,000
Cash
$1,500,000 $1,000,000 $500,000 $0
06/30/2009
06/30/2010
06/30/2011
06/30/2012
06/30/2013
2013 Budget
The cash support for the Arvada Center in 2013 is budgeted to stay at $1,643,122, which is the same level as 2012. This transfer is made monthly. The in-kind support is calculated at the end of the year and is on pace to exceed last year’s number of $2,097,497.
9
parks fund
PARKS FUND
Parks Fund Parks Fund Beginning Fund Balance
2013 Budget As of 6/31/13
As of 6/31/12
$4,061,000
$4,061,000
$3,398,539
$1,096,646
$1,033,966
2,883,545
1,441,773
1,404,022
APEX Reimbursement
927,000
-
2,541
Other
184,618
89,806
92,282
$7,393,702
$2,628,225
$2,532,812
$7,408,892
$2,853,322
$3,008,386
-
-
-
$7,408,892
$2,853,322
$3,008,386
(15,190)
(225,097)
(475,574)
$4,045,810
$3,835,903
REVENUES Open Space City Cash Transfer
Total Revenues EXPENDITURES Ongoing Capital Total Expenditures Income/(Loss) Ending Fund Balance
10
Revenue Highlights Jefferson County Open Space receipts, which represent the largest source of revenue for the Parks Fund, continue to trend up nearly 6% over 2012 during the same period. However, year-to-date receipts reflect four months of revenue as this revenue source lags by two months. In addition, the City receives a reimbursement from the APEX Park and Recreation District for maintenance of athletic-type parks such as StengerLutz. Those funds will not be received until the end of the year. Other revenue decreased due to lower interest income, but was partially offset by increased rental income. Overall, total revenue increased 3.77%.
Expenditure Highlights While temporary personnel increased just under 11% from mid-year 2012, there was an offset by a decrease in contract services resulting in an net decrease of approximately 12%. Ongoing operating expenditures such as supplies, expenses and utilities experienced an increase; however, total year-todate expenditures decreased 5.15%.
PARKS FUND REVENUE
$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-
06/31/2009 06/31/2010 06/31/2011 06/31/2012 06/31/2013 Open Space
Cash Transfer
11
APEX
2013 Budget
special revenue funds SPECIAL REVENUE FUNDS
Special Revenue Funds Overview Special Revenue Funds account for revenues that are to be used for specific purposes. The following are considered special revenue funds: • Tax Increment Funds • Community Development • Housing
Tax Increment Funds Overview
.21 and .25 Tax Increment Funds .21 and .25 Tax Increment Funds
2013 Budget
As of 6/31/13
Beginning Fund Balance
$12,898,000
$12,898,000
As of 6/31/12
REVENUES
There are two tax increment funds which account for the voterapproved sales tax increases to fund expanded police services. The first fund accounts for the .21 cent sales tax for police services and the second accounts for the .25 cent sales tax. Sources in the tax increment fund include sales tax, general use tax, auto use tax, building use and interest income. Since the tax increment is in addition to the City’s 3% sales tax, the revenue trends in the tax increment fund will closely follow those in the general fund.
Sales Tax/Audit Revenue
Revenue Highlights
Capital
Sales Tax/Audit Revenue increased 5.16% from mid-year 2012, while Use Tax collections experienced a 19.43% increase for the same time period. Recovered costs from agencies such as Jefferson County E911 Authority Board and State of Colorado increased 52.87%. Combined federal and state grants increased 21.49%. In total, revenues are up 8.85% compared to 2012.
Total Expenditures
$
6,132,531
$ 2,491,605
$ 2,369,259
1,148,832
642,946
538,330
51,168
100,267
64,227
$ 7,332,531
$3,234,818
$ 2,971,815
$
$
Use Tax Other Total Revenues EXPENDITURES Ongoing
Income/(Loss) Ending Fund Balance
Expenditure Highlights Working towards the goal of being fully staffed, salaries increased 1.93% and overtime increased 5.32% over mid-year 2012. Capital expenditures represent the initial phases of design development and the application process for the two new community stations rolled out in March with the ground breaking ceremony in June 2013.
12
7,106,518
3,167,920
$ 3,114,296
$8,000,000
$247,209
-
$ 15,106,518
$ 3,415,129
$ 3,114,296
(7,773,987)
(180,311)
(142,481)
$ 5,124,013
$12,717,689
ds
Community Development Community Development Fund Beginning Fund Balance
2013 Budget
Revenue Highlights
As of 6/30/13 As of 6/30/12
$6,920,000
$6,920,000
$
$
Most of the jump in Recovered Revenues was due to a $150,000 repayment on a promissory note for a 2010 loan made to the JeffCo Housing Authority for repairs and upgrades to the Parkview Village Apartments.
REVENUES Recovered
114,737
Grants
254,835
$
31,250
638,000
130,229
185,990
City Cash Transfer
45,000
22,500
22,500
Interest/Other
19,500
4,922
11,548
817,237
$ 412,486
$ 251,288
$591,852
$269,912
$165,457
380,625
135,095
166,616
67,958
-
-
$ 1,040,435
$ 405,007
$ 332,073
(223,198)
7,479
(80,785)
$ 6,696,802
$ 6,927,479
Total Revenues
$
Expenditure Highlights The timing of the City Cash Transfer to the Arvada Housing Authority due to changes in federal reporting practices, $57,042 provided to Family Tree for housing and family emergency supportive services, and start-up expenditures for the Residential Energy Efficiency Program constitute the increase in Ongoing expenditures.
EXPENDITURES Ongoing Essential Home Repairs Loans Total Expenditures Income/(Loss) Ending Fund Balance
Arvada Housing Authority Arvada Housing Authority Beginning Fund Balance
2013 Budget As of 6/30/13 As of 6/30/12 $ 205,000
$ 205,000
$
$
REVENUES Recovered Grants
11,456
$
4,716
3,900,000
1,849,642
1,845,164
26,000
49,846
-
5,464
362
906
$3,950,642
$1,911,306
$1,850,786
$
$
$
City Cash Transfer Interest/Other Total Revenues
19,178
EXPENDITURES Ongoing Rents Transfers Total Expenditures Income/(Loss) Ending Fund Balance
389,347
180,165
167,604
3,532,200
1,938,448
2,065,073
29,534
26,233
23,179
$3,951,081
$2,144,846
$2,255,856
(439)
(233,540)
(405,070)
$ 204,561
$ (28,540)
13
Revenue Highlights The timing of the City Cash Transfer (from the Community Development Fund) was moved up in 2013 per changes in federal financial reporting practices.
Expenditure Highlights The Arvada Housing Authority currently assists 494 families with monthly rent subsidies. These subsidies constitute approximately 90% of this Fund’s expenditures.
capital improvement CAPITAL IMPROVEMENT FUND
Capital Improvement Fund Overview The Capital Improvement Fund is where the City keeps track of capital projects for streets, traffic, parks, and the Arvada Center.
Revenue Highlights In 2013, the majority of the revenue in the CIP Fund will consist of transfers from the General Fund, Risk Management Fund and Lands Dedicated Fund. Other revenues include park development fees, grant revenue and contributions from other governmental agencies. The revenues also include a onetime transfer of $2,500,000 from the General Fund for the Gold Line improvements.
Expenditure Highlights Although CIP expenditures in 2013 are less than 2012, there are still many CIP projects in various stages of construction. CIP Administration projects include construction at Ralston Central Park and expenditures for the City’s FOCUS process. Transportation projects include Ridge Road improvements, bridge repairs and design work for the Kipling Parkway Underpass. The majority of expenditures in the Parks area include construction at Forest Springs and tap fees for Big Meadows. Projects completed at the Arvada Center include the Gallery floor, the sound system and purchases of public art.
Projects in 2013 include Ralston Central and Forest Springs Parks. In addition, video security, front entry repair and exterior lighting projects will all address safety issues at the Arvada Center.
14
t
Capital Projects Capital Improvement Fund
2013 Budget
As of 6/30/13
As of 6/30/12
Beginning Fund Balance
$39,138,000
$39,138,000
$4,590,966
$1,123,566
$9,953,803
CIP Administration
$15,700,000
$457,419
$165,349
CIP Street Projects
250,000
225,047
1,133,115
CIP Traffic Projects
2,172,000
265,162
628,201
CIP Park Projects
2,769,974
874,854
3,815,437
678,500
248,117
50,412
Total Expenditures
$21,570,474
$2,070,599
$5,792,514
Income/Loss
(16,979,508)
(947,033)
4,161,289
Ending Fund Balance
$22,158,492
$38,190,967
REVENUES Total Revenues EXPENDITURES
CIP Arvada Center Projects
15
enterprise funds
ENTERPRISE FUNDS
Enterprise Funds Overview Enterprise funds account for activities that generate a fee that makes the entity self supporting. The five enterprise funds in the City are: • • • • •
Water Fund Wastewater Fund Stormwater Fund Golf Fund Hospitality Fund
Water Fund The Water Fund accounts for all activities within the scope of the water utility operations including administration, operations, capital water projects, financing and related debt service and billing and collection.
in the JCMD, which was covered by a payment to the City from JCMD in January 2013. Over $36 million of the Capital budget represents the first major payment to Denver Water for the Gross Reservoir Expansion project. The timing of main replacement work & payments accounts for elevated Major Capital Maintenance Expenditures. Also, the Water Fund began budgeting this year for the annual transfer of revenue dedicated for Parks purposes, adding an additional $235,196 in budgeted Ongoing Expenditures for 2013. Previously, these transfers were appropriated through budget amendments.
Water Fund Water Fund
2013 Budget As of 6/30/13
As of 6/30/12
Beginning Fund Balance
$63,980,000
$63,980,000
$19,053,224
$5,304,368
$6,075,812
REVENUES Water Charges Tap Fees
3,204,761
3,678,618
1,733,754
Revenue Highlights
Interest
1,190,885
203,124
290,148
Year-to-date revenue from water sales is down 12.7%, with consumption down 18.6% over the same period in 2012. This decline can be attributed to Stage 2 water restrictions and anticipated surcharges, as well as high levels of spring precipitation. It is worth noting that 2012 saw substantially elevated consumption levels. Compared to average year-to-date consumption for 2007-2011, 2013 totals were down only 4.2%. The spike in Other Revenues is due to a payment received from the Jefferson Center Metropolitan District (JCMD).
Other
667,875
4,961,210
979,071
$24,116,745
$14,147,320
$9,078,785
$16,176,618
$10,630,452
$6,632,064
Debt Service
2,265,300
178,926
195,773
Major Capital Maintenance
4,173,252
1,498,336
1,350,649
39,601,897
42,535
54,868
$62,217,067
$12,350,249
$8,233,354
Expenditure Highlights
Income/(Loss)
(38,100,322)
1,797,071
845,432
Four million dollars of the year-to-date Ongoing Expenditures represent a payment to Consolidated Mutual for water rights
Ending Fund Balance
$25,879,678
$65,777,071
Total Revenues EXPENDITURES Ongoing
Capital Total Expenditures
16
Water Consumption This chart shows January through June water consumption since 2009. Both currently-removed water restrictions and a very wet second quarter contributed to the drop in consumption.
Thousands of Gallons
WATER CONSUMPTION as of June 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
Water Consumption
2009 1,517,646
2010 1,471,564
2011 1,508,338
2012 1,743,469
2013 1,419,753
Water Tap Fees This chart shows January through June sewer tap fee revenue since 2009.
WATER FUND - TAP FEES as of June
Dollars
s
$4,000,000 $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $0 Tap Fees
2009 $853,616
2010 $913,652
2011 $1,113,787
17
2012 $1,733,754
2013 $3,678,618
Wastewater Fund The wastewater fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater. Wastewater Fund
2013 Budget
Beginning Fund Balance
As of 6/30/13
Revenue Highlights
As of 6/30/12
$11,510,000
$11,510,000
$11,248,581
$4,663,799
$4,962,684
Tap Fees
235,258
377,063
190,893
Interest
566,480
37,166
49,913
Other
577,416
186,398
171,707
$12,627,735
$5,264,427
$5,375,196
$7,222,990
$3,611,495
$3,270,480
Ongoing
3,199,709
1,393,780
1,285,184
Major Capital Maintenance
2,540,762
478,769
29,476
154,500
-
-
$13,117,961
$5,484,044
$4,585,140
(490,226)
(219,617)
790,057
$ 11,019,774
$ 11,290,383
REVENUES Sewer Charges
Total Revenues EXPENDITURES Metro District
Capital Total Expenditures Income/(Loss) Ending Fund Balance
Reflective of the incredible pace of residential building activity within the City, tap fee revenues through June have nearly doubled over 2012. The year-to-date drop in Sewer Charge Revenue is due to the timing of receipts.
Expenditure Highlights Costs for the purchase of a new Manhole Spray Lining System and associated maintenance materials represent the vast majority of the increase in ongoing expenditures. The timing of payments for sewer main replacements represents the increase in Major Capital Maintenance. Charges from the Metro Wastewater Reclamation District, which are up over 10%, continue to represent nearly two-thirds of all expenditures.
Wastewater Tap Fees This chart shows January through June sewer tap fee revenue since 2009.
Dollars
WASTEWATER FUND - TAP FEES as of June $400,000 $360,000 $320,000 $280,000 $240,000 $200,000 $160,000 $120,000 $80,000 $40,000 $0 Tap Fees
2009 $57,344
2010 $100,352
2011 $109,741
18
2012 $190,893
2013 $377,063
Stormwater Fund The Stormwater fund accounts for all activities necessary to maintain a stormwater management plan. Stormwater Beginning Fund Balance
2013 Budget
As of 6/30/13
As of 6/30/12
$9,316,000
$9,316,000
$3,157,295
$1,502,211
$1,584,213
66,480
41,722
93,211
$3,223,775
$1,543,932
$1,677,425
$1,882,648
$592,558
$542,205
933,288
466,244
466,244
8,838,986
1,014,496
1,016,343
$11,654,922
$2,073,298
$2,024,792
(8,431,147)
(529,365)
(347,367)
884,853
$ 8,786,635
REVENUES Stormwater Fee Other Total Revenues EXPENDITURES Ongoing Debt Service Capital Total Expenditures Income/(Loss) Ending Fund Balance
$
19
Revenue Highlights The apparent drop in Stormwater Fee revenue is due to the timing of receipts. The fee has remained at the same level since 2009. The drop in Other Revenues is due to decreased interest earnings and lower year-to-date recovered costs.
Expenditure Highlights Final work and payments on the Garrison Street Bridge Replacement and related Ralston Creek channelization continue to dominate expenditures in 2013.
Golf Fund Golf Fund
Revenue Highlights
2013 Budget
As of 6/31/13
$ 632,000
$ 632,000
$ 3,015,108
$ 1,299,723
$1,542,832
1,119,828
549,955
564,550
City Cash Transfer
201,294
100,647
109,737
Total Revenues
$4,336,230
$1,950,324
$2,217,119
$ 2,151,379
$ 954,599
$ 899,911
1,113,966
522,594
512,388
Administration
893,969
465,156
375,879
Capital
397,499
368,007
-
Beginning Fund Balance
As of 6/31/12
April continued where March left off with generally cold, wet conditions to start the 2nd quarter. April playable days were down 39% at West Woods and 32% at Lake Arbor. Rounds in the Metro area were down 28% through May (Golf Datatech). Additionally, the cold spring coming after the winter drought left course conditions behind what they were in 2012. Winter green fee discounts had to be extended well beyond what they were in 2012. Golf cart restrictions continued into May. On a positive note, June saw better weather and improved course conditions. West Woods realized an 8% round increase over 2012 and at 8,422 rounds, was the busiest June since 2008. Total revenues were down 12.03% from mid-year 2012.
REVENUES Golf Courses Restaurant
EXPENDITURES Golf Restaurants
Total Expenditures
While expenditures for both Golf at 6.08% and Restaurant at 1.99% have seen a slight increase in comparison to mid-year 2012, the largest impact is reflected in Capital. This includes (220,583) (360,031) 428,941 work done to renovate the interior of West Woods and electrical $ 411,417 $ 271,969 work to accommodate cart storage and equipment buildings at both West Woods and Lake Arbor. The City entered into a lease in May for 160 electric carts: 100 at West Woods and 60 at Lake Arbor. There was an increase in January thru June 2012/2013 lease costs compared to 2012 due to Special Tournament Annual Senior Junior Other Total the conversion from gas to electric 4,964 1,142 2,649 3,033 531 470 24,028 carts. There is also an increase in routine, building and vehicle 5,588 604 2,648 1,420 322 351 19,282 repair and maintenance as well as 624 -538 -1 -1,613 -209 -119 -4,746 an increase in electricity which is 13% 0% 0% -53% -39% -25% -20% partially offset by a decrease in fuel, due to the conversion of golf carts. Overall, total expenditures Special Tournament Annual Junior Other Total in comparison to mid-year 2012 3,828 375 9,367 289 891 24,909 increased 29%. 1,357 679 8,022 298 689 19,544 $4,556,813
Income/(Loss) Ending Fund Balance
Rounds by Type WEST WOODS
Regular
2012
11,239
2013
8,349 -2,890 -26%
LAKE ARBOR
Regular
2012
10,159
2013
8,466
Expenditure Highlights
$2,310,356
$1,788,178
-1,693
-2,471
304
-1,345
9
-202
-5,365
-17%
-65%
81%
-14%
3%
-23%
-22%
20
Hospitality Fund Hospitality Fund
2013 Budget
As of 6/31/13
$ 674,000
$ 674,000
$
973,117
$ 399,805
$473,588
Concessions
183,320
45,868
55,667
Miscellaneous
516,836
213,882
235,822
$1,673,273
$659,555
$765,077
Administration
$292,009
$131,427
$139,779
Operations
1,279,389
503,850
601,701
263,096
-
-
25,952
12,976
-
$1,860,446
$648,254
$741,481
(187,173)
11,302
23,597
$ 486,827
$ 685,302
Beginning Fund Balance
As of 6/31/12
REVENUES Banquets
Total Revenues EXPENDITURES
Capital Transfer to General Fund Total Expenditures Income/(Loss) Ending Fund Balance
Revenue Highlights Banquet and conference-related revenue continues to decline 15.6% in comparison to 2012. This variance is due in part to the number of organizations responding to internal scheduling conflicts or the need to rotate demographically for their organization. Additionally the facility was closed for one month for repairs. Concession revenue also experienced a decrease from 2012 by 17.6% Overall revenue decreased 13.8% from mid-year 2012.
Expenditure Highlights Total actual expenditures decreased from first quarter 2012 by 12.6% which would be expected as operating expenditures such as inventory and temporary wages are dependent upon the number of banquets that are booked. Through six months, revenues are sufficient to cover expenditures. However, expenditures are expected to increase due to the capital replacement projects which will be completed in 2013. The capital expenditures are funded through the fund balance.
Expenditures are expected to increase due to the capital replacement projects which will be completed in 2013.
21
internal service
INTERNAL SERVICE FUNDS
Internal Service Funds Overview We have four Internal Service Funds. These Funds charge for goods and services to each division that uses them. The Funds then pay for all associated costs of things such as purchasing insurance, vehicle purchases and maintenance, computer purchases and maintenance, and buildings maintenance.
Risk Management Risk Management
Overview
2013 Budget
As of 6/30/13
$4,433,000
$4,433,000
2,010,729
1,005,175
1,152,032
67,980
92,042
57,888
$2,078,709
$1,097,216
$1,209,920
Risk Management Administration
$2,575,540
$940,840
$1,172,787
Risk Management Operations
622,527
288,240
283,345
$3,198,067
$1,229,080
$1,456,131
(1,119,358)
(131,864)
(246,211)
$3,313,642
$4,301,136
Beginning Fund Balance
As of 6/30/12
REVENUES Transfers Other Total Revenues EXPENDITURES
Total Expenditures Income/(Loss) Ending Fund Balance
The Insurance Fund, administered by the Risk Management Division of Finance, provides the means by which the City self-insures against loss. It is funded with contributions by all City divisions based on their levels and types of exposure. The Fund is also used for programs for loss prevention, the protection of City personnel and the preservation of City property and assets.
Revenue Highlights Due to continuing trends of relatively low claims costs and an effective focus on safety, charges to participating funds were reduced by nearly 13% for 2013. Higher year-to-date recovered costs account for the greater Other revenue.
Expenditure Highlights Year-to-date reductions in both Workers Compensation and General Liability claims expenditures represent the bulk of the drop in Administration expenditures. Of note, the Risk Management Administration budget includes a $573,500 transfer to the Capital Projects Fund for three safety-related projects at the Arvada Center in 2013: video security, front entry repair, and exterior lighting improvements. *Per GASB Statement 10, an additional $935,705 in cash is currently held in the Risk Management Fund to cover potentially incurred liabilities as of the beginning of the year. This figure was reached by Risk Management’s actuary.
22
e
Information Technology and Print Services Information Technology and Print Services
2013 Budget
As of 6/31/13
Beginning Fund Balance
$8,088,000
$8,088,000
As of 6/31/12
Revenue Highlights
REVENUES Maintenance
$
959,712
$
479,883
$
479,856
Replacement
896,767
513,145
440,278
Print Shop
437,801
165,269
149,869
$2,294,280
$1,158,297
$1,070,003
Total Revenues
Computer Maintenance and Replacement contributions by participating Funds remain at 2012 levels. Recovered costs associated with CAD maintenance are reflected in the Replacement revenue increase. The Print Shop revenue increased due to increases in both copier revenue and print shop revenue.
Expenditure Highlights
EXPENDITURES Maintenance
$ 1,149,621
Replacement
2,110,295
381,521
1,395,381
403,825
149,595
117,201
Total Expenditures
$3,663,742
$1,072,330
$1,973,666
Ending Fund Balance
$6,718,538
$8,173,967
Print Shop
contributions by all City divisions based on their levels of use of information technology. The Print Shop Fund provides ongoing capital support for the City’s printing needs.
$
541,214
$
461,083
Overview The Computer Fund provides resources for ongoing maintenance and replacement of the City’s computers, network hardware and other electronic infrastructure. It is funded with
The substantial drop in Replacement expenditures is due to the bulk of phone system replacement expenditures having been made in the first quarter of 2012. There are three major projects that are currently being worked on which will be using the Replacement Fund: Upgrade of the Police Computer Aided Dispatch and Records Management System CAD/RMS, installation of mobile data systems into Police vehicles, and replacement of the City land mobile radio system, which is used by both Police and Public Works. The final project is the City-wide desktop replacement project.
Vehicles Vehicles Beginning Fund Balance
2013 Budget
As of 6/30/13
$6,522,000
$6,522,000
As of 6/30/12
Revenue Highlights
REVENUES Maintenance Transfers
$ 2,196,638
$ 1,098,290
$ 1,066,354
Replacement Transfers
1,095,582
557,886
547,791
136,177
58,708
121,491
$3,428,397
$1,714,884
$1,735,635
Other Total Revenues
is funded with contributions by all City divisions based on their vehicle inventory and use.
EXPENDITURES
Charges for Fleet Maintenance services, which include personnel costs, rose 3% over 2012 levels. Increases for Vehicle Maintenance transfers for some, but not all, divisions net to an increase of 1.8%. Lower year-to-date salvage revenue for retired vehicles are reflected in the decreased Other revenues.
Expenditure Highlights
Maintenance
$ 3,746,934
$ 1,022,129
$ 1,033,930
Replacement
1,645,963
370,783
818,061
Total Expenditures
$5,392,897
$1,392,912
$1,851,992
Income/(Loss)
(1,964,500)
321,971
(116,356)
Ending Fund Balance
$4,557,500
$6,843,971
Overview The Vehicles Fund provides resources for the maintenance of City vehicles and heavy equipment, as well as their replacement when various factors demand their retirement. It
23
Included in the Maintenance budget is $1.5 million for relocating Fleet operations on the eastern side of the City. Due to far higher than anticipated costs for remodeling the Culbertson Building, the project was cancelled for 2013. The decrease in Replacement expenditure reflects the timing of scheduled vehicle replacements. Among this year’s acquisitions will be a new street sweeper.
Buildings 2013 Budget
As of 6/30/13
$1,704,000
$1,704,000
$407,351
$203,675
$203,675
131,233
121,441
123,283
$538,584
$325,116
$326,959
Replacement
$168,782
$38,016
$73,888
Capital Lease
113,977
55,657
54,855
$282,759
$93,673
$128,743
255,825
231,443
198,216
$1,959,825
$1,935,443
Buildings Beginning Fund Balance
As of 6/30/12
REVENUES Replacement Transfers Other Total Revenues EXPENDITURES
Total Expenditures Income/(Loss) Ending Fund Balance
24
Overview The Buildings Fund provides resources for maintaining major portions of facility infrastructure as replacement becomes necessary. The primary types of infrastructure are HVAC equipment, parking lots, roofs, and carpet. It is funded with contributions by all City divisions based on their facility occupancy.
Revenue Highlights Monthly replacement charges from contributing funds remain at 2012 levels.
Expenditure Highlights The Capital Lease expenditures represent payments per an agreement with Siemens Building Technologies in 2004 for energy efficiency improvements at various City facilities. Among plans for the remainder of 2013 is the replacement of the Food Bank parking lot for $106,000.
Arvada Economic Development Association 2013 Budget
As of 6/30/12
$405,500
$405,500
Revenue
754,000
375,500
361,525
Expenditures
730,683
343,963
358,635
$428,817
$437,037
Operations Beginning Fund Balance
Ending Fund Balance
As of 6/30/13
Program
2013
Beginning Cash Balance
$1,135,001
Revenue
5,393
Expenditures
(95,185)
Ending Cash Balance
1,045,209
Reserved for AEDA Loan Program
(300,000)
Reserved for AEDA Small Business Grants
(100,000)
Reserved for Job Creation Program
(23,500)
Commitments Available Unallocated Cash Balance
(351,997) $ 269,712
25
Revenue Highlights Revenue in the AEDA Operations Fund consists of a transfer from the general fund equal to the personnel and operating expenditures.
Expenditure Highlights Year-to-date expenditures in 2013 are at 47% of budgeted expenditures and are comparable to 2012 expenditures. Salaries and benefits represent the largest expenditure at approximately 52% of the expenditures.
Revenue Highlights Revenues in 2013 consist of interest income and loan payments from two loans. As of June 30, the two loans are paid off.
Expenditure Highlights Expenditures in 2013 reflect seven AEDA small business grants. The grants were used to help Arvada businesses improve signage, landscaping, facades, and site improvements.
investment report
CITY OF ARVADA INVESTMENT REPORT
Investment Portfolio Objectives Pursuant to the City’s investment policy, the primary objectives of the City’s investment activities, in priority order are safety, liquidity and yield. Consistent with this policy, the portfolio of securities is invested in US Treasuries, US Agency debt, local government investment pools (LGIP’s), commercial paper, and corporate debt subject to rating and concentration limits. The City’s investment portfolio is managed to provide sufficient liquidity to meet all reasonably anticipated operating cash needs without selling securities prior to maturity.
Investment Portfolio Performance The portfolio saw a second quarter 2013 yield of .423% which is a decrease of 29bps when compared to the second quarter 2012 yield of .647%. The benchmark yield for the City’s portfolio, as established by the investment policy, is a weighted benchmark of allowable securities. For the second quarter, the weighted benchmark return was .37 percent, constructed using the average 2013 monthly returns. The City’s portfolio yield continued to decline from the previous rolling four quarters, as evidenced by the considerable reduction in investment income and the unfavorable reinvestment environment. One contributing factor to these performance results is that the Fed has left rates at very low levels. The discount rate remains at .25 percent and the Fed has announced that we will continue to experience these rates most likely into 2015. The Federal Reserve will keep rates unchanged until the dynamics of our economy significantly change. The portfolio saw $51 million in investment calls during the first half of the year due to the expiration of call “lockout” periods. These calls have resulted in reinvestment in lower yielding securities which contributes to the reduction in investment income. Balances in LGIP funds have increased due to the anticipated cash outflow of $36 million during third quarter 2013 for the Denver Water Project. Key information regarding the City’s portfolio is shown in the tables and graphs below:
PORTFOLIO PERFORMANCE
PORTFOLIO CHANGES
YTD JUN-13
YTD JUN-12
Difference
06/30/2013
06/30/2012
Difference
Interest Earnings
$553,332
$824,399
-$271,067
Money Market
$5,011,115
$3,001,010
$2,010,104
Portfolio Yield
0.487%
0.706%
-0.219%
Savings/Cash
20,171,595
31,152,850
-10,981,255
Benchmark Yield
0.370%
0.360%
0.010%
CD
19,305,493
19,231,056
74,437
Tracking Error
+12bps
+35ps
-23bps
Corporate
3,000,000
5,000,000
-2,000,000
LGIP
58,070,646
49,425,322
8,645,324
US Agency
111,600,000
101,000,000
10,600,000
2,000,000
7,000,000
-5,000,000
$219,158,848
$215,810,238
$3,348,610
US Treasury Total
26
ACCOUNT SUMMARY
PORTFOLIO CHARACTERISTICS
Par Value
$219,158,848
Average Duration (yrs)
1.88
Book Value
$219,160,808
Average Coupon
0.554%
Market Value
$217,672,072
Average Cost YTM
0.573%
Unrealized Gain/(Loss)
-$
Average Market YTM
0.710%
486,776
MATURITY DISTRIBUTION
PORTFOLIO ALLOCATION U.S. Treasuries 0.9%
Savings/cash 9.2%
CD 8.8%
50.0%
43.9%
40.0%
Corporate 1.4%
30.0% 17.2% 14.6% 16.9%
20.0% 4.2%
10.0% LGIP 26.5% U.S. Agencies 50.9%
0.0%
Money Market 2.3%
3.2%
0-.25 .25-.5 .5-1 2-3 Maturity (yrs)
3-4
4-5
City of Arvada Investments as of June 30, 2013 The City’s portfolio as of June 30, 2013 is shown below, which includes credit ratings as of June 30, face value and interest earnings for 2013. Description
CUSIP /Ticker
Credit Rating
Coupon Rate
Maturity Date
6/30/2013
Ending Face
Interest/
Amount/Shares
Dividends
Savings JPMorgan Chase Bank Savings Wells Fargo Savings
CHASE
N/A
0.15%
N/A
5,142,539.22
3,772.51
WELLSFARGO
N/A
0.15%
N/A
5,029,055.54
4,129.01
N/A
0.30%
N/A
10,000,000.00
0.00
20,171,594.76
7,901.52
4,071,362.28
5,071.85
JPMorgan Chase Bank Checking Sub Total/Average Cash Certificate of Deposit FIRSTBANK
CD72-73
N/A
0.25%
11/26/2013
FIRSTBANK
CD72-81
N/A
0.30%
11/30/2013
5,124,839.97
7,576.15
FIRSTBANK
CD5343A
N/A
0.30%
07/27/2013
5,039,101.00
7,721.66
FIRSTBANK
CD8679
N/A
0.60%
05/05/2014
5,070,189.37
14,930.44
19,305,492.62
35,300.10
3,000,000.00
75,000.00
3,000,000.00
75,000.00
22,021,013.40
15,244.26
Sub Total/Average Certificate Of Deposit Corporate Berkshire Hathaway
084664BG5
AA2
5.00%
08/15/2013
Sub Total Corporate Local Government Investment Pool C Safe LGIP Colo Trust LGIP
CSAFE
N/A
0.13%
N/A
COLOTRUST
N/A
0.12%
N/A
Sub Total/Average Local Government Investment Pool
36,049,632.65
17,979.91
58,070,646.05
33,224.17
Money Market CSIP MM
CSIP
AAAm
0.13%
Sub Total Money Market
N/A
5,011,114.53
4,272.26
5,011,114.53
4,272.26
Chart continues next page
27
Description
CUSIP /Ticker
Credit Rating
Coupon Rate
Maturity Date
6/30/2013
Ending Face
Interest/
Amount/Shares
Dividends
US Agency FFCB
3133EAH27
AAA
0.43%
08/13/2015
5,000,000.00
10,750.00
FFCB
3133EC2L7
AAA
0.44%
11/13/2015
5,000,000.00
11,000.00
FFCB
3133EC3M4
AAA
0.60%
11/21/2016
3,000,000.00
9,000.00
FFCB
3133EC940
AAA
0.64%
05/09/2017
5,000,000.00
0
FFCB
3133EAU22
AAA
0.68%
09/12/2016
5,000,000.00
17,000.00
FHLB
313381ZP3
AAA
0.43%
02/12/2016
5,000,000.00
0 0
FHLB
313381QX6
AAA
0.55%
07/25/2016
3,000,000.00
FHLB
313382TR4
AAA
0.60%
04/24/2017
5,000,000.00
0
FHLB
313382HD8
AAA
0.70%
12/27/2016
5,000,000.00
0
FHLB
313382HT3
AAA
0.75%
03/27/2017
5,000,000.00
0
FHLB
313382W25
AAA
0.75%
08/15/2017
5,000,000.00
0
FHLB
313380U88
AAA
0.80%
04/17/2017
3,000,000.00
12,000.00
FHLB
3133727K4
AAA
2.13%
12/28/2015
2,000,000.00
21,250.00
FHLB
313382F65
AAA
0.60%
03/27/2018
5,600,000.00
0
FHLB
313382FL2
AAA
0.63%
03/27/2018
5,000,000.00
0
FHLB
313382T78
AAA
0.55%
04/30/2018
3,000,000.00
0
FHLB
313382Z63
AAA
0.50%
05/22/2018
5,000,000.00
0
FNMA
3136G0W1
AAA
0.55%
02/22/2016
5,000,000.00
13,750.00
FNMA
3136FTM89
AAA
0.80%
02/24/2016
5,000,000.00
20,000.00
FNMA
3136G0RX1
AAA
1.00%
07/26/2017
5,000,000.00
25,000.00
FNMA
3136G0XD8
AAA
1.00%
08/28/2017
6,000,000.00
30,000.00
FNMA
3136FTDG1
AAA
1.05%
10/21/2015
5,000,000.00
26,250.00
FNMA
3136FPEL7
AAA
1.05%
09/09/2013
5,000,000.00
26,250.00
FNMA
3136G0XW6
AAA
0.50%
02/28/2017
3,000,000.00
7,500.00
FNMA
3136G1LA5
AAA
0.50%
05/15/2018
3,000,000.00
0
111,600,000.00
229,750.00
Sub Total/Average US Agency US Treasury T-Bond
912828KY5
AAA
2.63%
Sub Total/Average US Treasury TOTAL
06/30/2014
2,000,000.00
0
2,000,000.00
0.00
$219,158,847.96
$385,448.05
Investment Management Focus - 2013 2013 continues to be a struggle for the capital markets. We will continue to monitor the two items of focus we have highlighted below. Diversification of Maturities: We will continue to keep LGIP balances at levels to meet operating needs to capture attractive interest rates. We will focus on a blended strategy which calls for emphasis in short-term positions as well as long-term positions (5 years in the City’s case), but also staggering maturities in between to smooth the revenue stream. This will allow ample cash should the City experience unexpected needs, allow us to take advantage of better coupons in longer maturity buckets and the ability to capitalize on investment opportunities if/when yields begin to recover. Agency spreads are tighter, callables will get better yield: Call provisions are a tool used by issuers to refinance debt at a more attractive rate. Our focus will be to purchase callable securities with a call “lockout” period of six months or more to enhance investment income over the LGIP funds, which are currently yielding 13bps.
28
Finance Department • 8001 Ralston Road • Arvada, Colorado 80002 (720) 898-7120 • www.arvada.org