Download - City of Arvada 1st Qtr 2013 Financial Report
Financial Report2013 First Quarter
Table of Contents
2013 Outlook .......................................................................1
General Fund ................................................................... 2-6
Arvada Center ..................................................................... 7
Parks Fund ....................................................................... 8-9
Special Revenue Funds .................................................. 10-11
Capital Improvement Fund ........................................... 12-13
Enterprise Funds ............................................................ 14-17
Internal Service Funds ...................................................18-20
Arvada Economic Development Association ..................... 21
City of Arvada Investment Report ............................... 22-24
1
overview OVERVIEW
2013 OutlookThe same revenue trends that we saw in 2012 are continuing through the first quarter of 2013. Sales tax receipts are 7.67% higher than the first quarter of 2012.
Grocery store and general department store receipts, the two largest categories of sales tax, continue to increase over prior year receipts. Another growing
sector of sales tax includes the fast food, fast casual and restaurant categories, all of which are still showing increases. The one lagging category that we saw
in 2012 was sales tax from public utilities. Although we have experienced a dry winter, a few weeks of cold weather caused a 1.75% increase in this source of
sales tax. This source of sales tax is impacted by the weather and temperatures in summer and the first part of the winter. We are also experiencing growth in
building and auto-use tax. While one quarter certainly does not constitute a trend for 2013, the results are positive and speak to a growing economy.
Water revenues in the first quarter increased slightly from 2012 as many customers started watering due to a dry winter through March. As we approach the
summer months, there are concerns of reduced water consumption as Denver Water declared mandatory water restrictions and temporary drought surcharges
from April through September. Because the City obtains most of its water from Denver Water, we must adopt equivalent water restrictions that Denver Water
imposes on its Denver customers. This will result in reduced water revenues during the summer months. We will look at reducing expenditures to offset the
reduction in revenues. However, a majority of these are necessary to maintain the water system regardless of the amount of water used by our customers.
The City’s other two utilities, Wastewater and Stormwater, are operating within the budget. Tap fee revenues in Wastewater are outpacing 2012 revenues as we
continue to see growth in housing. Expenditures are slightly ahead of last year as the timing of the main replacement project is ahead of last year. Stormwater
revenues should be on pace with 2012 as there was no change in the stormwater fee. The Stormwater Fund will see a major capital expenditure of over $5 million
in 2013 related to the completion of the Garrison Street Bridge and channelization project.
It is still very early to predict how the Golf Fund will fare in 2013. Both golf and restaurant revenues are down compared to first quarter 2012. This decrease can
be attributed to the abnormally warm winter in 2012 compared to a cooler and wetter winter in 2013. Restaurant revenues are down due to the remodeling at
both West Woods and Lake Arbor, which necessitated closures at both restaurants, with West Woods’ restaurant closure lasting three weeks.
Hospitality Services is off to a slower start than in 2012; however staff is able to reduce expenditures when the level of bookings decreases. There are also
planned capital replacement projects this year which will close the facility for one month, and which will have an effect on revenues.
The established rates for the internal service funds are sufficient to cover expenditures and planned replacements in these funds. The transfers in these funds
are at 2012 levels. Major replacements for 2013 include the computer–aided dispatch management system, desktop/laptop computer replacement, mobile data
systems for police vehicles, a new street sweeper, and the second order of new Ford Interceptors.
Again, it is very early in the year to predict the financial results of 2013. However, the positive trends in revenue appear to be continuing in an encouraging
manner.
2
general fund GENERAL FUND
General Fund2013
Budget
As of
3/31/13
As of
3/31/12
Beginning Fund Balance $22,965,000 $22,965,000
REVENUES $67,932,479 $12,627,684 $11,206,774
EXPENDITURES
Ongoing $65,649,288 $11,787,477 $11,374,022
Capital 3,217,466 - -
JPPHA - 155,000 200,000
AEDA - - 500,000
2013 Expenditures $68,866,754 $11,942,477 $12,074,022
Income/Loss (934,275) 685,207 (867,240)
Ending Fund Balance $22,030,725 $23,650,207
General Fund OverviewThe 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:
• OperationalsupporttotheArvadaCenter
• OperationalsupporttotheParksFund
• GeneralDebtServicepayments
• TransfertotheCapitalImprovementsFundfornewparks,
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. Of this amount, $3,680,903 was reserved for projects that
were started in 2012 but not scheduled to be completed until 2013
(carryover items). In addition, since expenditures of $68,866,754
exceeded revenues of $67,932,479, Council made a decision in 2012 to
use $934,275 of cash reserves to balance the 2013 budget. Details of the
carryover items will be shown in the mid-year report as approval of the
carryover items did not occur until after the close of the first quarter.
In general, revenues are in line with the budget estimates for the
majority of revenue categories. The major revenue categories of sales
tax, use tax, property tax and intergovernmental revenues are discussed
in more detail in the “Revenue Highlights” section. The investment
report at the end of this report will provide details of the City’s
investments. Investment revenue will most likely be short of budget
because of the current investment environment which is not expected to
improve in 2013.
3
Expenditures in 2013 are slightly less than expenditures in 2012. This is due to the one-time transfer of $500,000 to AEDA made in 2012. If the transfer is
removed, expenditures are 3.1% 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%.
Revenue HighlightsThe 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
Sales Tax55%Utility Fees
7%
Building Activity5%
Property Tax7%
Intergovernmental7% Use Tax
8%
Administrative Services
4%
All Other7%
4
SALES TAX COLLECTIONS
USE TAX COLLECTIONS
Sales Tax
Use TaxThe City has three prime use tax types: general,
building and automobile. These are taxes paid in
lieu of sales tax on purchases.
Sales tax collections in 2013 are continuing the
upward trend from 2012. The graph below shows
actual sales tax collections. Sales tax collections lag
one month; therefore, the first quarter collections
represent sales tax collections for two months.
Sales tax receipts for the first quarter in 2013 are
7.67% above 2012 actuals.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
03/31/2008 03/31/2009 03/31/2010 03/31/2011 03/31/2012 03/31/2013
Building Auto General
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
03/31/2008 03/31/2009 03/31/2010 03/31/2011 03/31/2012 03/31/2013Sales Tax $5,549,908 $5,233,376 $5,252,127 $5,335,005 $5,620,783 $6,051,902
Property Tax
PROPERTY TAX COLLECTIONS
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
03/31/2008 03/31/2009 03/31/2010 03/31/2011 03/31/2012 03/31/2013Property Tax $1,646,477 $1,552,911 $1,500,684 $1,361,462 $1,723,913 $1,611,945
The City’s property tax rate is 4.31 mills per $100
of valuation. In Colorado, the mill is placed on
the assessed valuation. The graph illustrates the
collections for the past five years and the first
three months of 2013.
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 of $35,589,702 represents
a 1.7% over 2012 actuals. As the next ten-year
financial plan is reviewed, future sales tax will be
revised to reflect the 2012 actual collections.
For the first two months of 2013, general use tax
is showing a 4.2% increase over 2012 first quarter
collections. Building use tax for 2013 is at $764,557
which is a 54.7% increase over 2012 first quarter
collections. We expect building use tax to exceed
budget estimates in 2013 as the ten-year financial
plan anticipated growth, but not as quickly as we
have seen in the last 16 months. The 2013 budget
for use tax is $7,647,510.
Consumers continue to purchase vehicles. Auto use
tax collections are showing a 15.2% increase over
the previous year.
Property tax is a stable revenue source for the
City. Currently, property tax receipts are $112,000
below first quarter 2012 receipts.
5
Intergovernmental RevenuesThis 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 a little
over $4.5 million in the past five years and are
budgeted for $4.7 million in 2013. Road and
Bridge funds are disbursed a couple months
after collection, so we will not receive January’s
revenue until early April. HUTF funds are
disbursed the month after they are collected, so
the graph represents two months’ revenue.
INTERGOVERNMENTAL REVENUES
Expenditure HighlightsThe largest expenditure in the General Fund is personnel costs which account for 52% of expenditures.
GENERAL FUND EXPENDITURES
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
03/31/2008 03/31/2009 03/31/2010 03/31/2011 03/31/2012 03/31/2013
HUTF Jefferson County
Personnel52%
Transfers12%
Debt Service6%
Services & Charges10%
Supplies & Expenses
7%
Contracts12% Misc.
1%
6
PERSONNEL 2013 Budget As of 3/31/13 As of 3/31/12
Salaries & Wages $27,687,938 $4,970,781 $4,944,439
Vacancy Savings (861,394) - -
Overtime 903,476 154,155 145,981
Group Insurance 4,701,740 865,464 775,678
Retirement 3,172,604 584,910 581,183
Medicare 321,853 58,837 57,300
Temporary Wages & SS 542,216 52,872 36,423
Other 332,149 83,295 81,244
Total $36,800,582 $6,770,313 $6,622,249
Heightened use in Traffic Engineering, Building Inspection, Streets, and Facilities Management represents the bulk of
the increase in Temporary Wage expenditures. The General Fund is currently on pace to meet the budgeted Vacancy
Savings total for 2013.
Fuel 2013 Budget As of 3/31/13 As of 3/31/12
General Fund $536,447 $114,769 $120,145
Parks 202,185 22,869 28,166
Police Tax Increments 50,204 12,560 12,382
Utilities 225,929 28,536 31,259
Other 63,094 3,877 5,810
Total Expenditures $1,077,859 $182,610 $197,762
Salary and Benefit Savings
7
arvada centerARVADA CENTER
Arvada CenterArvada Center 2013 Budget As of 03/31/13 As of 03/31/12
Beginning Fund Balance $232,000 $232,000
REVENUES
Generated $6,138,453 $826,740 $821,722
SCFD 1,065,020 283,286 248,320
City Cash Transfer 1,643,122 410,780 410,780
City In-Kind Transfer 2,000,000 - -
Total Revenues $10,846,595 $1,520,806 $1,480,822
EXPENDITURES
Ongoing $8,844,820 $1,545,117 $1,537,068
In-Kind 2,000,000 - -
Total Expenditures $10,844,820 $1,545,117 $1,537,068
Income/(Loss) 1,775 (24,311) (56,246)
Ending Fund Balance 233,775 207,689
performance production was on track to match or exceed the
2012 PHAMALY production; however, a sold-out performance
was canceled due to the weather. The cancellation resulted in
approximately $12,000 refunded to patrons. The production still
made net positive revenue, but did not meet previous results or
current-year expectations. The other production in the Black Box,
and part of our subscription series, was Blithe Spirit. The play
performed well, meeting projections and garnering critical acclaim.
AC Presents is down a little over $75,000 compared to 2012. Lone
Tree had made a down payment in the first quarter of 2012 of
$50,000 for their presentation of Chess.
Revenues from Education classes are up $10,000 from last year.
This growth is primarily due to a tuition increase. This is the
second year the Center successfully offered Spring Break camps.
With the recovering economy, SCFD revenue collections increased
in 2012. This growth will result in an increase in the SCFD
contribution to the Center for 2013. The amount for the first
quarter was an increase of $35,000, or 12% over the 2012
contribution.
Expense HighlightsOverall, expenses are tracking upward, with most of the increase
related to Payroll and Benefits. Historically, expenses are not out
of line in the first quarter of the year. Previous experience shows
that expenses can easily ratchet up in the third and fourth quarters.
Therefore, the Center is taking a proactive approach and addressing
issues related to show costs and personnel expenses now.
Revenue HighlightsFirst quarter results at the Arvada Center have been positive overall. Ticket sales
had an overall increase of $57,000 or 10.62% from last year. This increase is mainly
due to the success of Man Of LaMancha, the spring musical. The show exceeded sales
projections significantly and will also contribute some revenue to the second quarter.
Two other theater productions took place in the first quarter. The first was “The
Foreigner” presented by PHAMALY in partnership with the Arvada Center. This three-
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parks fund PARKS FUND
Parks FundParks Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $4,061,000 $4,061,000
REVENUES
Generated $184,618 $25,282 $25,477
Open Space 3,398,539 261,769 250,590
APEX Reimbursement 927,000 - -
City Cash Transfer 2,883,545 720,886 702,011
Total Revenues $7,393,702 $1,007,937 $978,077
EXPENDITURES
Ongoing $7,408,892 $1,162,525 $1,144,372
Capital - - -
Total Expenditures $7,408,892 $1,162,525 $1,144,372
Income/(Loss) (15,190) (154,588) (166,295)
Ending Fund Balance $4,045,810 $3,906,412
Revenue HighlightsJefferson County Open Space receipts, which represent the
largest source of revenue for the Parks Fund, continue to trend
up nearly 4.5% over 2012 during the same period. However,
year-to-date receipts reflect only one month of revenue as this
revenue source lags by two months.
Expenditure HighlightsAn approximately 4% decrease in personnel expenditures
was offset by increases in professional services and internal
service fund contributions, resulting in a year-to-date increase
of 1.59%.
9
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Open Space Cash Transfer APEX
As of 3/31/11 As of 3/31/12 As of 3/31/13 2013 Budget
PARKS FUND REVENUE
10
special revenue funds SPECIAL REVENUE FUNDS
.21 and .25 Tax Increment Funds.21 and .25 Tax Increment Funds
2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $12,898,000 $12,898,000
REVENUES
Sales Tax / Audit Revenue $6,132,531 $968,415 $881,615
Use Tax 1,148,832 269,107 209,520
Other 51,168 42,418 3,373
Total Revenues $7,332,531 $1,279,940 $1,094,507
EXPENDITURES
Ongoing $7,068,514 $1,342,525 $1,332,517
Capital $8,000,000 $106,729 -
Total Expenditures $15,068,514 $1,449,253 $1,332,517
Income/(Loss) (7,735,983) (169,313) (238,010)
Ending Fund Balance $5,162,017 $12,728,687
Special Revenue Funds OverviewSpecial Revenue Funds account for revenues that are to be used for
specific purposes. The following are considered special revenue
funds:
• TaxIncrementFunds
• CommunityDevelopment
• Housing
Tax Increment Funds OverviewThere are two tax increment funds which account for the voter-
approved 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.
Revenue HighlightsSales tax, building use tax, and auto use tax receipts continued
their upward trends into 2013. Total tax revenues were up 13.4%
versus the first quarter of 2012.
Expenditure Highlights Costs associated with the construction of two new community
stations dominate the 2013 budgets for the two Tax Increment
Funds. Each fund will bear the cost of a community station.
11
special revenue funds Community Development
Community Development Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $6,920,000 $6,920,000
REVENUES
Recovered $114,737 $156,539 $25,340
Grants 638,000 45,266 19,469
City Cash Transfer 45,000 11,250 11,250
Interest/Other 19,500 2,908 456,123
Total Revenues $817,237 $215,962 $63,393
EXPENDITURES
Ongoing $591,852 $180,540 $78,865
Essential Home Repairs 380,625 93,796 28,250
Loans 67,958 - -
Total Expenditures $1,040,435 $274,336 $107,115
Income/(Loss) (223,198) (58,374) (43,722)
Ending Fund Balance $6,696,802 $6,861,626
Both the timing of the City Cash Transfer to the Arvada
Housing Authority due to changes in federal reporting
practices and $57,042 provided to Family Tree for housing
and family emergency supportive services represent the
increase in Ongoing expenditures.
Arvada Housing Authority
Arvada Housing Authority 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $390,000 $390,000
REVENUES
Recovered $19,178 $9,500 $10,671
Grants 3,900,000 2,773,415 2,762,785
City Cash Transfer 26,000 18,760 28,502
Interest/Other 5,464 1,455 933
Total Revenues $3,950,642 $2,803,129 $2,802,891
EXPENDITURES
Ongoing $380,323 $272,510 $273,257
Rents 3,532,200 2,942,589 2,776,379
Transfers 28,674 35,628 41,007
Total Expenditures $3,941,197 $3,250,728 $3,090,642
Income/(Loss) 9,445 (447,598) (287,751)
Ending Fund Balance $399,445 $(57,598)
The Arvada Housing Authority currently assists exactly
500 families with monthly rent subsidies. These subsidies
constitute approximately 90% of this Fund’s expenditures.
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capital improvementCAPITAL IMPROVEMENT FUND
Capital Improvement Fund OverviewThe Capital Improvement Fund is where the City keeps track of capital projects for streets, traffic, parks, and the Arvada Center.
Revenue HighlightsIn 2013, the majority of the revenue in the CIP Fund consists 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.
Expenditure HighlightsThe guiding principles for the City’s CIP Fund are identified as:
There are many CIP projects which fall into the Taking Lasting Care category. The City sets aside monies to replace or renovate the current infrastructure.
The projects for 2013 include collector street improvements, ADA ramps, intersection safety improvements, signal replacement, playground renovation,
trail renovation and tree replacement.
In 2011, the City purchased two large parcels for the South Central Park (to be named Griffith Station Park) and East Arvada Park (to be called Britton
Park). In 2013 we will begin construction of these parks which will be Building our Base.
In 2013, we are appropriating over $12 million for the transit-oriented development (TOD) projects along the Gold Line rail project. Although most of
the monies will not be spent in 2013, planning for this project must be started now to allow sufficient time for design and construction by opening day in
2016. The City, the Arvada Urban Renewal Authority (AURA) and the Regional Transportation District (RTD) are jointly issuing a request for proposal to
develop the eight-acre site for the Olde Town station. This is one example of Investing for the Future.
• TakingLastingCare
• BuildingOurBase
• InvestingfortheFuture
13
capital improvementCapital Improvement Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $39,138,000 $39,138,000
REVENUES
Total Revenues $4,590,966 $219,780 $128,112
EXPENDITURES
CIP Administration $13,200,000 $281,484 $965,231
CIP Street Projects 250,000 60,718 308,325
CIP Traffic Projects 2,172,000 85,766 146,856
CIP Park Projects 2,466,000 355,830 957,414
CIP Arvada Center Projects 678,500 32,032 49,571
Total Expenditures $18,766,500 $815,830 $2,427,397
Income/Loss (14,175,534) (596,050) (2,299,285)
Ending Fund Balance $24,962,466 $38,541,950
Capital Projects
14
enterprise fundsENTERPRISE FUNDS
Enterprise Funds OverviewEnterprise funds account for activities that generate a fee that
makes the entity self supporting. The five enterprise funds in the
City are:
• WaterFund
• WastewaterFund
• StormwaterFund
• GolfFund
• HospitalityFund
Water FundThe 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.
Revenue HighlightsYear-to-date revenue from water sales is up by 4.8 %, with
consumption up 2.8% over the same period in 2012. However,
we do not anticipate this trend to continue with mandatory water
restrictions and the five snow storms in April. The spike in Other
Revenues is due to a payment received from the Jefferson Center
Metropolitan District (JCMD).
Water FundWater Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $63,980,000 $63,980,000
REVENUES
Water Charges $19,053,224 $2,651,864 $2,530,542
Tap Fees 3,204,761 1,309,849 418,267
Interest 1,190,885 112,448 160,816
Other 667,875 4,482,865 636,764
Total Revenues $24,116,745 $8,557,026 $3,746,388
EXPENDITURES
Ongoing $16,003,618 $6,629,498 $2,731,406
Debt Service 2,265,300 - -
Major Capital Maintenance 4,046,252 616,871 871,798
Capital 38,842,708 18,514 60,070
Total Expenditures $61,157,878 $7,264,883 $3,663,275
Income/(Loss) (37,041,133) 1,292,142 83,113
Ending Fund Balance $26,938,867 $65,272,142
Expenditure HighlightsFour million dollars of the year-to-date Ongoing Expenditures represent a payment
to Consolidated Mutual for water rights in the JCMD, which was covered by a
payment to the City from JCMD in January 2013. The year-to-date drops in both
Major Capital Maintenance and Capital are solely functions of timing. Over $37
million of the Capital budget represents the scheduled first major payment to
Denver Water for the Gross Reservoir Expansion project.
15
Wastewater FundThe wastewater fund accounts for all activities
necessary in the collection, transmission and
disposal of sewage and wastewater.
Revenue HighlightsReflective of the continued health of building
activity within the City, first quarter tap fee
revenues more than doubled over the first quarter
of 2012. The apparent drop in Sewer Charge
revenue is due to the timing of receipts.
Expenditure HighlightsCosts 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 represent
the increase in Major Capital Maintenance.
Charges from the Metro Wastewater Reclamation
District continue to represent nearly two-thirds of
all expenditures.
Wastewater Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $11,510,000 $11,510,000
REVENUES
Sewer Charges $11,248,581 $2,308,845 $2,478,408
Tap Fees 235,258 153,953 71,369
Interest 566,480 21,282 27,175
Other 577,416 3,555 6,275
Total Revenues $12,627,735 $2,487,636 $2,583,226
EXPENDITURES
Metro District $7,222,990 $1,805,748 $1,635,240
Ongoing 3,035,709 778,188 607,655
Major Capital Maintenance 1,904,762 193,560 22,189
Capital 154,500 - -
Total Expenditures $12,317,961 $2,777,496 $2,265,083
Income/(Loss) 309,774 (289,860) 318,143
Ending Fund Balance $11,819,774 $11,220,140
Revenue HighlightsThe apparent drop in Stormwater Fee revenue is due to the
timing of receipts. The fee has remained at the same level
since 2009.
Expenditure HighlightsThe timing of the City’s annual contribution for the Rooney
Road Recycling Center and an accounting for uncollectible
utility charges as bad debt represent the rise in ongoing
expenditures. The increase in capital expenditures is
due to project work on the Garrison Street Bridge and Lee
Street Outfall projects in the first quarter.
Stormwater 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $9,316,000 $9,316,000
REVENUES
Stormwater Fee $3,157,295 $723,609 $793,286
Other 66,480 18,460 53,883
Total Revenues $3,223,775 $742,069 $847,169
EXPENDITURES
Ongoing $1,882,648 $316,059 $208,112
Debt Service 933,288 233,122 233,122
Capital 3,928,050 196,011 56,452
Total Expenditures $6,743,986 $745,192 $497,686
Income/(Loss) (3,520,211) (3,123) 349,483
Ending Fund Balance $5,795,789 $9,312,877
Stormwater FundThe Stormwater fund accounts for all activities
necessary to maintain a stormwater management
plan.
Wastewater Fund
Stormwater Fund
16
Golf FundGolf Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $632,000 $632,000
REVENUES
Golf $3,015,108 $277,040 $400,943
Restaurant 1,119,828 146,305 165,163
City Cash Transfer 201,294 50,324 54,869
Total Revenues $4,336,230 $473,668 $620,974
EXPENDITURES
Golf $2,151,379 $342,374 $283,761
Restaurants 1,113,966 161,491 134,035
Administration 893,969 299,876 159,101
Capital 131,419 296,816 30
Total Expenditures $4,290,733 $1,100,558 $576,927
Income/(Loss) 45,497 (626,889) 44,047
Ending Fund Balance $677,497 $5,111
Rounds by Type - January thru March 2012/2013
WEST WOODS Regular Special Tournament Annual Senior Junior Other Total
2012 794 2,500 0 662 626 54 139 4,775
2013 0 1,389 0 410 62 12 62 1,935
-794 -1,111 0 -252 -564 -42 -77 -2,840
-100% -44% 0% -38% -90% -78% -55% -59%
LAKE ARBOR Regular Special Tournament Annual Junior Other Total
2012 1,687 2,122 0 2,867 51 170 6,897
2013 992 1,015 0 2,212 54 153 4,426
-695 -1,107 0 -655 3 -17 -2,471
-41% -52% 0% -23% 6% -10% -36%
Revenue HighlightsBoth Golf Course and Restaurant revenues were down
considerably compared to the first quarter 2012, respectively
31% and 11%. Weather played a substantial role in comparing
March 2012 to 2013. March 2012 is the anomaly due to a record
lack of precipitation, while March 2013 was both cooler and
wetter. Playable days were down 62% at West Woods and
down 52% at Lake Arbor. Cottonwood 9 at West Woods was
closed all three months to accommodate a ditch company siphon
project. As for the Restaurants, West Woods, which generates
a vast majority of total Restaurant revenue, lost three weeks
of business due to closure for remodeling. The Lake Arbor
Restaurant was closed for remodeling, as well, but for a lesser
period of time.
Expenditure HighlightsBoth the timing of debt payments and substantial capital
outlays represent the increases in expenditures for the first
quarter. The budget for Capital Expenditures was increased in
April per the carry-over ordinance to accommodate the costs
of completing the West Woods Cart & Equipment Building and
accompanying infrastructure upgrades to service electric carts.
17
Hospitality FundHospitality Fund 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $674,000 $674,000
REVENUES
Banquets $973,117 $158,071 $176,906
Concessions 183,320 16,476 12,018
Miscellaneous 516,836 73,132 84,898
Total Revenues $1,673,273 $247,679 $273,822
EXPENDITURES
Administration $292,009 $46,423 $50,939
Operations 1,279,389 194,507 216,629
Capital 263,096 885 -
Transfer to General Fund 25,952 6,488 28,914
Total Expenditures $1,860,446 $248,304 $296,482
Income/(Loss) (187,173) (625) (22,660)
Ending Fund Balance $486,827 $673,375
Revenue HighlightsBanquet and conference-related revenue saw a decline of
9.55% in comparison to 2012. This variance is due to the
number of organizations responding to internal scheduling
conflicts or the need to rotate demographically for their
organization. This shortfall is anticipated to level out
in April as anticipated revenue in April has increased
approximately $38,000 over 2012.
Expenditure HighlightsTotal actual expenditures decreased from first quarter
2012 by 16.25%. The transfer to General Fund monies
reflect the biggest portion of this percentage. However,
expenditures are expected to increase in 2013 due to the
capital replacement projects which will close the facility
for one month in 2013.
Expenditures are expected to increase in 2013 due to the capital replacement projects which will close the facility
for one month in 2013.
18
internal serviceINTERNAL SERVICE FUNDS
Internal Service Funds OverviewWe 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.
OverviewThe 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 HighlightsDue 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.
Expenditure Highlights
The apparent spike in Administration costs is due to purchase
orders for renewals of the City’s insurance coverages being created
in March instead of April. Of note, the RM Administration budget
includes a $573,500 transfer to the Capital Projects Fund for three
safety-related projects in 2013: video security, front entry repair
and exterior lighting improvements at the Arvada Center.
*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.
Risk ManagementRisk Management 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $4,433,000 $4,433,000
REVENUES
Transfers 2,010,729 502,587 576,016
Other 67,980 20,465 30,086
Total Revenues $2,078,709 $523,053 $606,101
EXPENDITURES
RM Administration $2,540,540 $583,280 $479,171
RM Operations 622,527 134,314 134,193
Total Expenditures $3,163,067 $717,594 $613,364
Income/(Loss) (1,084,358) (194,541) -7,263
Ending Fund Balance $3,348,642 $4,238,459
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OverviewThe 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 is funded with contributions by all City divisions based on
their vehicle inventory and use.
Revenue HighlightsCharges 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 a rise of 1.8%.
Expenditure Highlights A large piece of the increase in Maintenance expenditures
stems from the timing of an annual payment for the FASTER
electronic fleet management system. The decrease in
Replacement reflects the timing of a 2012 purchase order
for the acquisition of new Ford Police Interceptors. Among
this year’s acquisitions will be a new street sweeper.
Information Technology and Print ServicesInformation Technology and Print Services
2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $8,088,000 $8,088,000
REVENUES
Maintenance $959,712 $239,942 $239,928
Replacement 896,767 289,596 212,757
Print Shop 437,801 78,975 69,073
Total Revenues $2,294,280 $608,512 $521,757
EXPENDITURES
Maintenance $1,149,621 $295,837 $247,315
Replacement 972,295 156,742 965,557
Print Shop 403,825 88,723 55,999
Total Expenditures $2,525,742 $541,302 $1,268,872
Ending Fund Balance $7,856,538 $8,155,210
Vehicles
Vehicles 2013 Budget As of 3/31/13 As of 3/31/12
Beginning Fund Balance $6,522,000 $6,522,000
REVENUES
Maintenance Transfers $2,196,638 $549,145 $533,177
Replacement Transfers 1,095,582 278,943 273,896
Other 136,177 49,547 68,204
Total Revenues $3,428,397 $877,635 $875,277
EXPENDITURES
Maintenance $3,746,934 $520,343 $481,046
Replacement 1,645,963 353,616 586,661
Total Expenditures $5,392,897 $873,959 $1,067,707
Income/(Loss) (1,964,500) 3,676 (192,431)
Ending Fund Balance $6,226,589 $6,504,850
OverviewThe Computer Fund provides resources for both the ongoing
maintenance and replacement of the City’s computers,
network hardware and other electronic infrastructure. It
is funded with 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.
Revenue HighlightsComputer Maintenance and Replacement contributions
by participating Funds remain at 2012 levels. Recovered
costs associated with CAD maintenance are reflected in the
Replacement revenue increase.
Expenditure Highlights 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. Major projects for
the remainder of 2013 include computer-aided dispatch
management system , budget software replacement and
desktop/laptop computer replacement, as well as mobile
data systems for police vehicles.
20
Buildings
Buildings 2013 BudgetAs of
3/31/13As of
3/31/12
Beginning Fund Balance $1,704,000 $1,704,000
REVENUES
Replacement Transfers $407,351 $101,838 $101,838
Other 131,233 4,044 5,631
Total Revenues $538,584 $105,882 $107,469
EXPENDITURES
Replacement $60,925 $41,946 $58,080
Capital Lease 113,977 27,304 26,784
Total Expenditures $174,902 $69,250 $84,863
Income/(Loss) 363,682 36,631 22,606
Ending Fund Balance $2,067,682 $1,740,631
OverviewThe 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 HighlightsMonthly replacement charges from contributing funds
remain at 2012 levels.
Expenditure HighlightsThe Capital Lease expenditures represent payments per an
agreement with Siemens Building Technologies in 2004 for
energy efficiency improvements at various City facilities.
Among the projects funded in 2013 is the floor replacement
for the gallery at the Arvada Center, which was converted
to concrete in lieu of replacing the existing carpet.
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Arvada Economic Development Association
Operations 2013 BudgetAs of
3/31/12As of
3/31/13
Beginning Fund Balance $405,500 $405,500
Revenue 754,000 188,547 182,306
Expenditures 730,683 168,111 169,267
Ending Fund Balance $428,817 $425,936
Revenue HighlightsRevenue 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 23% of
budgeted expenditures and are comparable to 2012
expenditures. Salaries and benefits represent the
largest expenditure at approximately 53% of the
expenditures.
Program 2013
Beginning Cash Balance $1,135,001
Revenue 3,174
Expenditures (81,633)
Ending Cash Balance 1,056,542
Reserved for AEDA Loan Program (300,000)
Reserved for AEDA Small Business Grants (100,000)
Reserved for Job Creation Program (23,500)
Commitments (257,848)
Available Unallocated Cash Balance $ 375,194
Revenue HighlightsRevenues in 2013 consist of interest income and loan
payments from two loans.
Expenditure HighlightsExpenditures in 2013 reflect seven AEDA small business
grants. The grants were used to help Arvada businesses
improve signage, landscaping, facades, and site
improvements.
22
investment reportCITY OF ARVADA INVESTMENT REPORT
Investment Portfolio ObjectivesPursuant 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 PerformanceThe portfolio saw a first quarter 2013 yield of .548% which is a decrease of 33bps when compared to the first quarter 2012 yield of .878%. The benchmark
yield for the City’s portfolio, as established by the investment policy, is a weighted benchmark of allowable securities. For the first 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 $19 million in investment calls during the first quarter due to the expiration of call “lockout” periods. These calls
resulted in reinvestment in lower-yielding securities, which contributes to the reduction in investment income. An indirect benefit to the Arvada portfolio
has been the capital appreciation that has been attained in this time, although this is considered as “paper gains” and has no profound effect on the yield we
use to benchmark. The gain during the first quarter of 2013 was $242,231. Key information regarding the City’s portfolio is shown in the tables and graphs
below:
PORTFOLIO PERFORMANCE
YTD Mar-13 YTD Mar-12 Difference
Interest Earnings $303,680 $445,118 -$141,437
Portfolio Yield 0.548% 0.878% -0.330%
Benchmark Yield 0.370% 0.370% 0.000%
Tracking Error +18bps +51ps -24bps
PORTFOLIO CHANGES
01/01/2013 3/31/2013 Difference
Money Market $ 5,006,842 $5,009,265 $ 2,423
Savings/Cash 20,163,693 20,167,698 4,005
CD 19,270,465 19,285,268 14,803
Corporate 5,000,000 3,000,000 -2,000,000
LGIP 45,407,414 44,158,330 -1,249,084
US Agency 108,000,000 117,600,000 9,600,000
US Treasury 7,000,000 2,000,000 -5,000,000
Total $209,848,414 $211,220,561 $1,372,147
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0.0%5.0%
10.0%15.0%20.0%25.0%30.0%35.0%
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5
34.8%
6.2%2.4% 3.3%
20.4%17.5%
15.4%
Maturity (yrs)
ACCOUNT SUMMARY
Par Value $211,220,561
Book Value $211,250,904
Market Value $211,462,792
Unrealized Gain/(Loss) $242,231
PORTFOLIO ALLOCATION
Savings/cash10%
CD9%
Corporate1%
LGIP21%
Money Market
2%
U.S. Agencies
56%
U.S. Treasuries
1%
PORTFOLIO CHARACTERISTICS
Average Duration (yrs) 2.05
Average Coupon 0.631%
Average Cost YTM 0.624%
Average Market YTM 0.544%
City of Arvada Investments as of March 31, 2013The City’s portfolio as of March 31, 2013 is shown below, which includes credit ratings as of March 31, face value and interest earnings for 2013.
Description CUSIP Credit Rating
3/31/2013
Coupon Rate Maturity Date Face Value Interest 2013
Savings
JP Morgan Savings N/A 0.15% N/A $5,027,077 $1,854
Wells Fargo Savings N/A 0.18% N/A 5,140,621 2,151
JP Morgan Checking N/A 0.35% N/A 10,000,000 0
Sub Total Savings 20,167,698 4,005
Certificate of Deposit
FirstBank CD5343 N/A 0.30% 7/27/13 5,035,334 3,682
FirstBank CD7281 N/A 0.30% 11/30/13 5,121,008 3,745
FirstBank CD7273 N/A 0.25% 5/28/13 4,066,290 0
FirstBank CD8679 N/A 0.60% 5/5/14 5,062,636 7,377
Sub Total Certificate of Deposit 19,285,268 14,803
Corporate
Berkshire Hathaway 084664BG5 AA+ 5.00% 8/15/13 3,000,000 75,000
Sub Total Corporate 3,000,000 75,000
Local Government Investment Pool
C Safe N/A 0.17% N/A 22,021,169 7,817
Colo Trust N/A 0.21% N/A 22,137,162 8,867
Sub Total Local Government Investment Pool 44,158,331 16,684
Money Market
Csip AAAm 0.22% N/A 5,009,265 2,422
Sub Total Money Market 5,009,265 2,422
Chart continues next page
MATURITY DISTRIBUTION
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Investment Management Focus - 20132013 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 the 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, and 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.
Description CUSIP Credit Rating
3/31/2013
Coupon Rate Maturity Date Face Value Interest 2013
US Agency
FNMA 3136FPEL7 AAA 1.05% 09/09/2013 5,000,000 26,250
FHLB 3133727K4 AAA 2.13% 12/28/2015 2,000,000
FNMA 3136FTDG1 AAA 1.05% 10/21/2015 5,000,000
FNMA 3136FTM89 AAA 0.80% 02/24/2016 5,000,000 20,000
FFCB 3133EAKP2 AAA 1.36% 04/04/2017 5,000,000
FNMA 3136G0DZ1 AAA 0.65% 04/26/2016 3,000,000
FNMA 3136G0FS5 AAA 1.25% 05/17/2017 3,000,000
FNMA 3136G0GT2 AAA 1.05% 11/14/2016 5,000,000
FNMA 3136G0HP9 AAA 0.60% 05/29/2015 3,000,000
FNMA 3136G0RX1 AAA 1.00% 07/26/2017 5,000,000 25,000
FHLB 313380C70 AAA 0.55% 02/08/2016 5,000,000 13,750
FFCB 3133EAH27 AAA 0.43% 08/13/2015 5,000,000 10,750
FNMA 3136G0W1 AAA 0.55% 02/22/2016 5,000,000 13,750
FNMA 3136G0XD8 AAA 1.00% 08/28/2017 6,000,000 30,000
FNMA 3136G0XW6 AAA 0.00% 02/02/2017 3,000,000 7,500
FFCB 3133EAU22 AAA 0.68% 09/12/2016 5,000,000 17,000
FHLB 313380U96 AAA 0.50% 10/16/2015 3,000,000
FHLB 313380U88 AAA 0.80% 04/17/2017 3,000,000
FFCB 3133EC2L7 AAA 0.44% 11/13/2015 5,000,000
FFCB 3133EC3M4 AAA 0.60% 11/21/2016 3,000,000
FHLMC 3134G3V98 AAA 0.70% 11/21/2016 5,000,000
FHLB 313381QX6 AAA 0.55% 07/25/2016 3,000,000
FHLB 313381ZP3 AAA 0.43% 02/12/2016 5,000,000
FHLB 313382F65 AAA 0.60% 03/27/2018 5,600,000
FHLB 313382FL2 AAA 0.63% 03/27/2018 5,000,000
FHLB 313382HD8 AAA 0.70% 12/27/2016 5,000,000
FHLB 313382HT3 AAA 0.75% 03/27/2017 5,000,000
Sub Total Agency 117,600,000 164,000.00
US Treasury
T-Bond 912828KY5 AAA 2.63% 06/30/14 2,000,000 78,750
Sub Total US Treasury 2,000,000 78,750
TOTAL $211,220,561 $355,665
Finance Department • 8001 Ralston Road • Arvada, Colorado 80002(720) 898-7120 • www.arvada.org