2014 city 1q report issuu

Financial Report2014 First Quarter

Table of Contents

Overview .......................................................... 1

General Fund .................................................. 2

Arvada Center ................................................. 7

Parks Fund ...................................................... 8

Special Revenue Funds ................................. 9

Capital Improvements Fund ........................11

Enterprise Funds ..........................................12

Internal Service Funds .................................18

City of Arvada Investment Report ..............22

1

overview2014 First QuarterThe revenue story for the General Fund continues to be positive. Sales tax

revenues for the first quarter 2014 are up over 3.7% compared to the 2013.

Restaurants are the story with fast-casual, fast-food and sit-down restaurants

all up over 2013. Public Utilities have also seen an increase in 2014, up 6.5%.

This revenue source is impacted the most by the weather, and the first quarter

of 2014 was colder with more snow than the first quarter 2013. Building

revenues are similar to 2013 with over $1.5 million in receipts. There were 105

single-family permits issued, an increase of 12 over 2013 and more than all of

2008 or 2009. The Candelas and Leyden Rock developments are leading the

way. It is difficult to trend an entire year off of one quarter, but the signs are

pointing to a positive revenue environment for 2014.

The Capital Projects Fund has just under a $45 million fund balance. There are some very large projects planned for the upcoming years including the garage

and pedestrian bridge in Olde Town, collector street improvements, quiet zones, traffic lights and safety improvements. The City has made a major commitment

to capital and infrastructure improvements and this will continue for the foreseeable future.

Water Revenues are down 13% and consumption is down 11% compared to 2013. Further analysis is being completed on the nature of the drop but the first

quarter is a small percentage of the total budgeted revenues. Reservoirs are full, so the hope is that there will not be water restrictions, at least early, in 2014.

Tap fees are up due to the increase in building activity. These revenues will be used for future capital needs.

The Golf Fund hopes the first quarter trend continues. Rounds and golf revenues are up at West Woods along with revenues in the restaurant. Even with the wet

winter, there were 10 more playable days in first quarter 2014 compared to the same period in 2013. The increase in the restaurants can also be attributed to

the remodel that was completed in the first quarter of 2013.

Internal service funds have kept their rates the same for 2014. These rates are sufficient to cover current expenditures and planned replacements. The major

replacements budgeted for 2014 include desktop/laptop computers, food bank parking lot and the final order of the new Ford Interceptors.

First quarter results rarely tell the story for the entire year but it is nice to be off to a positive start!

Restaurant revenues are the story the first quarter of 2014, with fast-casual, fast-food and sit-down restaurants all

up over 2013.

2

The following table provides a comparison of budgeted cash balances, revenues and expenditures to budget and prior year amounts in the same areas.

The General Fund began 2014 with a $25,675,000 fund

balance. Some of this fund balance, $3,008,076, was

dedicated to 2013 carryover and one-time items. An

additional $3,150,000 of one-time 2013 funds was added

to the Capital Fund for Gold Line TOD improvements.

Removing these items, revenue and expenditure budgets

are in balance for 2014.

In general, revenues are in line with or exceeding the 2014

budget estimates for the majority of revenue categories.

The major revenue categories of sales tax, use tax,

property tax, building 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 continue to be low as the current investment environment is not expected to change until 2015.

Expenditures in 2014 rose 9% over 2013. The comprehensive plan and the use of outside consultants for building and plan reviews make up the majority of this

increase. Personnel and other ongoing operating costs make up the difference, increasing at just over 3%. All of these items are in the budget for 2014.

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,transportationand

other infrastructure projects

GENERALFUND

General Fund 2014 Budget

As of 03/31/14

As of 03/31/13

Beginning Fund Balance $25,675,000 $25,675,000

Revenues $71,572,813 $13,157,024 $12,627,685

EXPENDITURES

Ongoing 70,514,872 12,503,510 11,445,551

Capital 6,908,690 - -

JPPHA 200,000 200,000 200,000

Total Expenditures $77,623,562 $12,703,510 $11,645,551

Income/(Loss) (6,050,749) 453,514 982,134

Ending Fund Balance $19,624,251 $26,128,514

3

GENERAL FUND REVENUE

Property Tax6%

Sales Tax49%

Use Tax2%

Auto Use Tax7%

Building Use Tax & Permits

7%Court Fines & Fees2%

Franchise Fees6%

Interest1%

Other20%

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2010 2011 2012 2013 2014GF Building Revenue $979,527 $664,651 $965,674 $1,549,612 $1,519,817Single Family (Detached) Permits 28 36 47 93 105

Dol

lars

General Fund BuildinG revenue throuGh March

First Quarter building revenues are slightly down in 2014 from the previous year, which is mostly due to a series of condominium permits and the remodeling of an

assisted living facility. The figures for 2014 represent greater overall building activity in Arvada, and are not as heavily influenced by large, particular construction

projects in the City.

108

96

84

72

60

48

36

24

12

0

Revenue Highlights

4

use tax collections

Sales Tax

Use TaxThe City has three primary use tax types: general, building and automobile. These are taxes paid in lieu of sales tax on purchases.

Construction in Arvada continues the trend from 2013. Although building use tax decreased from the first quarter of 2014, this quarter is the second strongest

first quarter in the past ten years. Based on the current activity, we do expect building use tax to exceed the budget for 2014. In addition, automobile purchases

still appear to be strong. After four consecutive years of increased auto use tax, the first quarter of 2014 auto use tax is 7.7% more than the first quarter of 2013.

General use tax is a stable source of revenue that does not have the up and down swings that we see in building and auto use tax.

sales tax collections

Sales tax collections in the first quarter still show an increase over the first quarter in 2013, but not quite at the rate that we saw last year. Sales tax collections lag

one month; therefore, collections for the first quarter represent sales tax collections for only two months.

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

03/31/10 03/31/11 03/31/12 03/31/13 03/31/14General $201,609 $172,091 $172,571 $179,830 $164,311Auto $546,932 $614,803 $699,804 $806,298 $868,221Building $350,394 $259,116 $494,072 $764,557 $667,925

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

03/31/10 03/31/11 03/31/12 03/31/13 03/31/14Sales Tax $5,252,127 $5,335,005 $5,620,783 $6,051,902 $6,279,068

5

Property TaxAlthough property tax accounts for less than 7% of General Fund revenues, property tax is a stable revenue source for the City. The City maintains one

of the lowest property tax rates in the Denver Metro Area with a mill levy of 4.31. In Colorado, the mill is placed on the assessed valuation.

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. Road and Bridge funds

are disbursed several months after collection, so January revenues will not be received until April. HUTF funds are disbursed the month after they are collected,

so the graph represents two months’ revenue.

ProPerty tax collections

INTERGOVERNMENTAL REVENUES

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

03/31/10 03/31/11 03/31/12 03/31/13 03/31/14Property Tax $1,500,684 $1,361,462 $1,723,913 $1,611,945 $1,608,708

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

$610,000

$620,000

$630,000

03/31/10 03/31/11 03/31/12 03/31/13 03/31/14Jefferson CountyHUTF $563,952 $593,804 $609,840 $602,577 $621,173

6

GENERAL FUND EXPENDITURES

Salary and Benefit Savings

The greatest year-over-year increase among Personnel Expenditures was found in Overtime, due primarily to a greater need for snow plowing in the first three

months of 2014. The Streets Division’s Overtime costs more than doubled from $38,372 to $80,316.

Salary & Benefits 2014 Budget

As of 03/31/14

As of 03/31/13

Salaries & Wages $28,879,080 $5,079,935 $5,003,233

Vacancy Savings (782,730) - -

Overtime 940,502 211,174 154,155

Group Insurance 5,179,173 909,887 833,012

Retirement 3,292,954 590,919 584,910

Medicare 343,436 61,165 58,837

Temporary Wages & SS 533,949 47,573 52,872

Other 365,968 81,394 83,295

Total $38,752,332 $6,982,047 $6,770,313

Personnel50%

Services and Charges9%

Supplies and Expenses7%

Contracts10%

Debt Service5%

Transfers18%

Miscellaneous1%

Revenue Highlights

7

ARVADA CENTERARVADACENTER

Arvada Center 2014 Budget

As of 03/31/14

As of 03/31/13

Beginning Fund Balance $ 232,000 $ 232,000

REVENUES

Generated $6,282,791 $821,334 $826,740

SCFD 1,096,970 278,277 283,286

City Cash Transfer 1,643,122 410,780 410,780

City In-Kind Transfer 2,040,000 - -

Total Revenues $11,062,883 $1,510,391 $1,520,806

EXPENDITURES

Ongoing $9,112,374 $1,430,855 $1,545,117

In-Kind 2,040,000 - -


Income/(Loss) (89,491) 79,536 (24,311)

Ending Fund Balance $ 142,509 $ 311,536

Arvada CenterRevenue HighlightsTicket Sales experienced a decrease of $25,346 or 4.6% in the first quarter compared

to the same time period in 2013. The Glass Menagerie and End of the Rainbow did

not meet their revenue estimates and sold fewer tickets than their comparable

shows from 2013. The Mousetrap, presented in the Black Box theater, was the most

successful show for that venue in the past seven years.

SCFD revenues decreased 1.8% or $5,009 compared

to 2013. This was the case even though the overall

tax base has increased. With more competition being

added to Tier 2, this will continue to be our experience

until the reauthorization process in 2016.

Education revenues were up $11,836 or 5.44%. Dance

Academy program attendance increased by almost 125

students for the winter session.

Expenditure HighlightsTotal expenditures are down 8% in the first quarter

of 2014 compared to the same time period last year.

This reduction was due to cost-control measures in the

Performing Arts productions. Net savings for the three

winter shows was $140,618. The difference in total

savings was an increase to payroll due to the hiring of

the Development Manager.

8

PARKS FUND

Parks Fund

Revenue HighlightsThere are four major revenue categories in the parks fund. All are

performing as expected during the first quarter.

PARKSFUND

Parks Fund 2014 Budget

As of 03/31/14

As of 03/31/13

Beginning Fund Balance

$4,301,000 $4,301,000

REVENUES

Open Space $3,514,740 $272,892 $261,769

City Cash Transfer 2,971,913 742,978 720,886

APEX Reimbursement

954,810 6,015 -

Other 187,848 60,520 25,282

Total Revenues $7,629,311 $1,082,406 $1,007,937

EXPENDITURES

Ongoing $7,881,273 $1,134,992 $1,160,220

Capital - - -


Income/(Loss) (251,962) (52,586) (152,283)

Ending Fund Balance

$4,049,038 $4,248,414

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

03/31/10 03/31/11 03/31/12 03/31/13 03/31/14

Open Space Cash Transfer APEX

PARKS FUND REVENUE

Expenditure HighlightsParks fund expenditures are approximately 2% below 2013

expenditures through the first quarter. To date, expenditures

have been as anticipated in the budget with nothing unexpected

occurring.

9

SPECIAL REVENUE FUNDS Special Revenue Funds OverviewSpecial Revenue Funds account for revenues that are to be used for specific

purposes. The following funds are considered special revenue funds:

• TaxIncrementFunds

• CommunityDevelopment

• Housing

Expenditure Highlights The West Woods and Lake Arbor community police stations

experienced their grand opening in late February. Since

becoming operational in March we are now begining to

see increases in needs and requests from the community.

Each station is staffed with approximately 30 sworn and

3 civilian employees. A number of community meetings

are being held at each location and our community rooms

are booked frequently. Feedback from the community

about both the building and the concept is overwhelmingly

postive. In February, the Arvada Police Department was

reaccredited by CALEA. This law enforcement accreditation

program exemplifies the Arvada Police Department’s

excellence in public saftey standards. Additionally, as of

March 2014, there are only 3 vacant Police Officer positions,

with 5 Recruits currently enrolled in the Police Academy

slated for graduation in June 2014. There have been 5

sworn retirements in the first quarter of 2014.

Revenue HighlightsThe US Department of Justice disbursed their 2013 JAG

award in the amount of $16,721 to be used for the

purchase of tasers. The 2014 JAG process for request for

application was also opened and we will begin that process

during the second quarter of this year. We continue to

recover costs from additional grants for programs such

as Enforcing Underage Drinking Laws (EUDL), a Federal

grant; Rocky Mountain High Intensity Drug Trafficking

Association (HIDTA), a State grant; and also a donation from

the Arvada Elks Lodge #2278 from their Drug Awareness

Committee. Programs such as B.A.T.T.L.E. through the

Colorado Automobile Theft Prevention Authority Board

and the Rocky Mountain Regional Computer Forensics Lab

continue to provide reimbursement for overtime.

SPECIALREVENUE

FUNDS

.21 and .25 Tax Increment Funds

2014 Budget

As of 03/31/14

As of 03/31/13


REVENUES

Sales Tax/Audit Revenue

$6,415,140 $997,077 $968,415

Use Tax 1,311,541 260,840 269,107

Other 117,000 85,466 42,418

Total Revenues $7,843,681 $1,343,383 $1,279,940

EXPENDITURES

Ongoing $7,525,559 $1,301,028 $1,314,194

Capital 3,344,728 1,428,518 106,729


Income/(Loss) (3,026,606) (1,386,163) (140,982)


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 accounts for the .21 cent

sales tax for police services and the second accounts for the .25 cent sales tax. Sources in the funds 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, revenue trends in the tax increment fund will closely follow those in the general fund.

10

Revenue HighlightsThe absence of Transfers Revenue for 2014 is due to timing adjustments made

to accommodate ever-evolving changes in federal reporting requirements.

Expenditure HighlightsThe Arvada Housing Authority currently assists 477 families with monthly

rent subsidies. These subsidies constituted approximately 89% of the

Fund’s expenditures thus far in 2014. The apparent drop in Rents is solely

a function of timing adjustments made to better accommodate federal

reporting requirements.

Revenue HighlightsThe decline in Recovered Revenues versus 2013 was due to a one-time,

$150,000 repayment last year on a promissory note for a 2010 loan made

to the JeffCo Housing Authority for repairs and upgrades to the Parkview

Village Apartments.

Expenditure HighlightsThe timing of the City Cash Transfer to the Arvada Housing Authority

represents most of the year-over-year decrease in Ongoing Expenditures.

This was caused by changes in the federal reporting practices and $57,042

provided to Family Tree for housing and family emergency supportive

services, both in 2013. This year’s Capital Project Transfer reflects

payments for the ongoing work to complete the renovation of the Memorial

Neighborhood Park Revitalization project.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2010 2011 2012 2013 2014Dollars $4,388 $9,002 $9,287 $6,972 $9,007

Tota

l Do

llars

EOC ENERGY ASSISTANCE 2010-2014through March - Dollars (Grants)

The City directly receives funding from Energy Outreach Colorado (EOC), a

nonprofit corporation, and disburses it to low income residents of Arvada as

assistance with costs related to energy.

Community Development Fund

2014 Budget

As of 03/31/14

As of 03/31/13


$6,896,000 $6,896,000

Revenues

Recovered $114,737 $34,197 $156,539

Grants 668,000 10,797 45,266

City Cash Transfer 45,000 11,250 11,250

Interest/Other 19,500 2,162 2,164

Total Revenues $847,237 $58,407 $215,219

Expenditures

Ongoing $1,111,628 $68,512 $171,940

Essential Home Repairs

380,625 66,232 63,372

Loans - - -

Capital Project Transfer

- 64,123 -

Total Expenditures

$1,492,253 $198,867 $235,312

Income/(Loss) (645,016) (140,460) (20,094)

Ending Fund Balance

$6,250,984 $6,755,540

Community Development Arvada Housing AuthorityArvada Housing Authority

2014 Budget

As of 03/31/14

As of 03/31/13


$195,000 $195,000

Revenues

Recovered $19,178 $7,346 $4,078

Grants 3,900,000 905,825 965,342

Transfers 26,000 - 49,846

Interest/Other 5,464 87 238

Total Revenues $3,950,642 $913,257 $1,019,504

Expenditures

Ongoing $430,579 $71,247 $81,426

Rents 3,532,200 774,109 1,078,520

Transfers 30,420 4,688 10,855

Total Expenditures

$3,993,199 $850,044 $1,170,800

Income/(Loss) (42,557) 63,214 (151,296)

Ending Fund Balance

$152,444 $258,214

11

Expenditure HighlightsThe fund balance in the Capital Improvement Projects Fund continues to accumulate monies for new infrastructure projects such as the parking structure along

the Gold Line, Britton and Griffith parks and the Van Bibber underpass. There are also monies set aside for ongoing projects that include signal replacement,

collector street improvements, ADA ramps, intersection safety improvements, quiet zones and sidewalk and trail gaps.

Current expenditures reflect charges for projects started in 2013 that include replacement of the police radio system and video security equipment at the Arvada

Center. Work on Ralston Central Park is continuing in 2014 and should be completed in the second quarter. Expenditures in the first quarter also include the

purchase of land needed to expand the plaza at the Olde Town station and water taps for Maverick Mesa and Church’s Crossing parks.

Work on Ralston Central Park should be completed in the second

quarter 2014.

CAPITAL 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 2014, the revenue in the CIP Fund consists of transfers from the General,

Lands Dedicated and Water Funds. The revenues will also include a one-time

transfer of $3,150,000 from the General Fund for the Gold Line parking

structure.

Capital ProjectsCapital Improvement Fund

2014 Budget

As of 03/31/14

As of 03/31/13


Revenues $4,358,690 $803,523 $219,780

Expenditures

CIP Administration $1,974,070 $2,995,792 $281,484

CIP Street Projects 422,000 145,437 60,718

CIP Traffic Projects 3,026,382 142,549 85,766

CIP Park Projects 790,230 929,046 355,830

CIP Arvada Center 51,500 110,228 32,032

Expenditures $6,264,182 $4,323,052 $815,830

Income/Loss (1,905,492) (3,519,529) (596,050)


12

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 the Water Fund, the

Wastewater Fund, the Stormwater Fund, the Golf Fund and the Hospitality Fund.

Water FundThe Water Fund accounts for all activities with the scope of the water utility

operations including administration, operations, capital water projects, financing

and related debt service and billing and collection.

Revenue HighlightsRevenues from Water Charges were down 13.3% for the first quarter, with

consumption down 11.0% over the same period in 2013. Utilities is reviewing

and monitoring both revenue and consumption data to identify the full nature of

the drops. Tap Fees continued to be sold at an incredible pace, reflecting both

continued substantial building activity and the purchase of three substantial

irrigation taps for developer-constructed parks in northwest Arvada. The

significant year-over-year drop in Other Revenues was due to a four-million

dollar pass-through payment in 2013 related to water rights acquisition received

from the Jefferson Center Metropolitan District (JCMD). The drop in Interest

Revenue is due to a lower fund balance because of the City’s down payment on

the Gross Reservoir Expansion project currently held in escrow.

enterprise funds

Expenditure HighlightsFour million dollars of 2013 Ongoing Expenditures represented 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 timing of the annual

transfers of Parks Water Tap and Irrigation System Revenues, as well as the

payment of annual water rights assessments, round out the bulk of differences

in Ongoing Expenditures between the first quarters of 2013 and 2014. Increases

in both Major Capital Maintenance and Capital Expenditures are due to the

timing of annual expenditures.

Water Fund

Water Fund

2014 Budget

As of 03/31/14

As of 03/31/13


REVENUES

Water Charges $20,026,271 $2,299,237 $2,651,864

Tap Fees 4,835,189 1,559,970 1,309,849

Interest 266,645 65,138 112,448

Other 682,972 561,975 4,323,525

Total Revenues $25,811,077 $4,486,321 $8,397,685

EXPENDITURES

Ongoing $16,845,528 $3,229,162 $6,536,186

Debt Service 2,260,700 - -

Major Capital Maintenance 4,065,596 887,370 591,728

Capital 4,096,356 370,426 -


Income/(Loss) (1,457,103) (638) 1,269,770


Tap Fees continued to be sold at an incrediblepace, reflecting both continued substantial building

activity and the purchase of three substantial irrigation taps for developer-constructed parks

in northwest Arvada.

13

Water Tap FeesThis chart shows annual water tap fee revenue since 2010.

Water ConsumptionThis chart, with data provided by Utilities, shows first quarter water consumption since 2010.

- 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

2010 2011 2012 2013 20141000s of Gallons 712,368 658,633 680,612 699,889 623,164

Thou

sand

s of

Gal

lons

WATER CONSUMPTIONAs of March

$-

$400,000

$800,000

$1,200,000

$1,600,000

2010 2011 2012 2013 2014Tap Fees $269,977 $585,481 $418,267 $1,309,849 $1,559,970

Dol

lars

WATER FUND - TAP FEESAs of March

14

$0

$40,000

$80,000

$120,000

$160,000

2010 2011 2012 2013 2014Tap Fees $23,184 $40,265 $71,369 $153,953 $117,951

Dolla

rs

WASTEWATER FUND - TAP FEESAs of March

Wastewater FundThe wastewater fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater.

Revenue HighlightsSewer Tap Fee Revenues, while below 2013’s record

level, remain at a historically high level due to continued

residential construction. The purchase of three park

irrigation taps caused a divergence in sewer taps from

water taps.

Expenditure HighlightsTreatment charges from the Metro Wastewater

Reclamation District represented about three-fourths of

Total Expenditures in the first quarter. The majority of the

9% increase in Ongoing Expenditures was due to higher

personnel costs.

Wastewater FundWasteWater Fund

2014 Budget

As of 03/31/14

As of 03/31/13


REVENUES

Sewer Charges $11,730,087 $2,274,034 $2,308,845

Tap Fees 380,403 117,951 153,953

Interest 633,620 23,735 21,282

Other 594,738 8,575 (28,308)

Total Revenues $13,338,848 $2,424,295 $2,455,773

EXPENDITURES

Metro District $7,500,000 $1,845,182 $1,805,748

Ongoing 3,128,500 596,321 547,056

Major Capital Maintenance

1,961,852 13,300 193,560

Capital 204,600 - -


Income/(Loss) 543,896 (30,507) (90,591)


Wastewater Tap FeesThis chart shows annual sewer tap fee revenue since 2010.

15

Stormwater FundThe Stormwater fund accounts for all activities necessary to maintain a stormwater management plan.

Revenue HighlightsThe City’s Stormwater Utility Fee Revenue, which represents nearly all revenue for the Stormwater Fund, came in consistent with 2013 levels. The rate for the

Stormwater Utility Fee has not changed since 2009.

Expenditure HighlightsThe drop in Ongoing Expenditures was due to a series of bad debt writeoffs in 2013. Capital Expenditures thus far in 2014 include final bills for the Garrison

Street Bridge Replacement and related Ralston Creek channelization, as well as initial work on flood threat mitigation in the wake of last year’s significant

flooding.

Stormwater Fund2014

BudgetAs of

03/31/14As of

03/31/13


REVENUES

Stormwater Fee $3,147,497 $732,783 $723,609

Other 28,031 13,265 (6,208)

Total Revenues $3,175,528 $746,049 $717,401

EXPENDITURES

Ongoing $2,062,029 $283,191 $316,059

Debt Service 932,800 233,200 233,122

Capital 5,415,414 176,010 196,011

Total Expenditures $8,410,243 $692,401 $745,192

Income/(Loss) (5,234,715) 53,647 (27,791)


Stormwater Fund

16

Golf Fund

Revenue HighlightsThere are two major revenue categories in the Golf Fund: Golf

revenues and Golf restaurant revenues. Green fee revenue is

up 25% in 2014 compared to 2013, most notably due to 10 more

playable days in March, 2014 at West Woods Golf Course. The

2014 green fee increases had minimal effect on revenue as first

quarter is still a discount fee season and carts are restricted to

cart path only. Golf restaurant revenue is up approximately

28% compared to 2013 due to increased levels of business this

year compared to last year. The 2014 restaurant price increases

had minimal effect on revenue as they went into effect March

1st.

Expenditure HighlightsGolf Fund expenditures are 24% less in 2014 compared to 2013.

In 2013, the public areas of the West Woods Clubhouse and

Lake Arbor Restaurant were remodeled which accounts for the

difference. Turf conditions coming into the spring are better in

2014 compared to 2013 because of minimal winter kill and cart

path-only restrictions in place throughout the winter.

Golf Fund2014

BudgetAs of

03/31/14As of

03/31/13

Beginning Fund Balance $105,000 $105,000

REVENUES

Golf Courses $3,383,085 $347,451 $277,040

Restaurants 1,193,135 186,733 146,305

City Cash Transfer 209,475 52,369 50,324

Total Revenues $4,785,695 $586,553 $473,668

EXPENDITURES

Golf Courses $2,395,843 $320,309 $338,712

Restaurants 1,258,466 201,294 162,044

Administration 938,500 298,133 299,876

Capital 103,000 4,262 285,578

Total Expenditures $4,695,809 $823,998 $1,086,210

Income/(Loss) 89,886 (237,445) (612,541)

Ending Fund Balance $194,886 $(132,445)

WEST WOODS Regular Special Tournament Annual Senior Junior Other Total

2013 0 1,389 0 410 62 12 62 1,935

2014 889 1,027 0 855 346 51 91 3,259

889 -362 0 445 284 39 29 1,324

-26% 0% 109% 458% 325% 47% 68%

Golf Rounds by Type - January thru March 2014

LAKE ARBOR Regular Special Tournament Annual Senior Junior Other Total

2013 992 1,015 0 2,212 0 54 153 4,426

2014 715 1,163 0 2,138 87 45 219 4,367

-277 148 0 -74 87 -9 66 -59

-28% 15% 0% -3% -17% 43% -1%

17

Hospitality Fund

Revenue HighlightsOverall, first quarter revenue in 2014 was 7% greater than in 2013,

with 2,000 more guests and an additional 11 groups served. By market

segment: the Arvada Center in-house market share saw a reduction in

revenue due to the Center’s decision to utilize outside catering for events;

the corporate market rebounded in the first quarter with an increase

of $30,000 in revenue; and the association market remained steady in

the number of groups, guests and revenue generated. All other market

segments were similar to 2013 activity levels.

Expenditure HighlightsHospitality Fund expenditures are approximately 3% below 2013

expenditures through the first quarter. To date, expenditures have been

as anticipated in the budget with nothing unexpected occurring.

Hospitality Fund2014

BudgetAs of

03/31/14As of

03/31/13


REVENUES

Banquets $1,002,311 $154,146 $158,071

Concessions 176,994 15,875 16,476

Miscellaneous 523,074 95,547 73,132

Total Revenues $1,702,378 $265,568 $247,679

EXPENDITURES

Administration $298,178 $55,032 $46,423

Operations 1,291,653 183,840 200,246

Capital 263,000 - -

Transfer to General Fund 27,468 6,887 6,488


Income/(Loss) (177,920) 19,809 (5,479)

Ending Fund Balance $380,080 $577,809

First quarter revenue was 7% greater than the same period in 2013, with 2,000 more guests and additional 11

groups served.

18

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 HighlightsContributions by participating Funds generally remain at 2013

levels.

Expenditure Highlights

Year-over year increases for the first quarter in claims

expenses for Workers Compensation and Property Insurance,

though partially offset by a drop in General Liability Expenses,

comprise the vast majority of increases in Administration

Expenditures.

*Per GASB Statement 10, an additional $807,882 in cash

is currently held in the Risk Management Fund to cover

potentially incurred liabilities as of the beginning of the year.

INTERNAL SERVICE funds

Risk Management Fund

2014 Budget

As of 03/31/14

As of 03/31/13


Revenues

Transfers 2,032,528 508,218 502,587

Other 70,019 32,356 5,184

Total Revenues $2,102,547 $540,575 $507,771

Expenditures

Risk Mgmt Administration

$1,993,796 $306,583 $226,508

Risk Mgmt Operations 645,062 137,179 134,108


Income/(Loss) (536,311) 96,813 147,155


Risk Management

19

Information Technology and Print ServicesOverviewThe Computer Fund provides resources for both 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 this technology. The Print Shop Fund provides

ongoing capital support for the City’s printing needs.

Revenue HighlightsRevenues for the Technology Replacement and Maintenance

Funds have been held static for the last few years. Due

to recent technology changes in 2013, a revenue analysis

will be completed to ensure that future maintenance and

replacement levels will continue to be maintained. Print

Shop revenues continue to remain steady in the first quarter

of 2014, but with the replacement of the high-speed copier,

color copier and all convenience copiers City-wide, we will

be adjusting chargeback rates starting in 2015 to keep the

fund healthy.

Information Technology Fund

2014 Budget

As of 03/31/14

As of 03/31/13


Revenues

Maintenance $959,787 $239,911 $239,942

Replacement 899,054 279,139 289,596

Print Shop 450,935 56,453 78,975

Total Revenues $2,309,776 $575,503 $608,512

Expenditures

Maintenance $1,171,777 $205,733 $284,888

Replacement 949,250 252,805 151,829

Print Shop 501,610 51,522 78,583


Income/(Loss) (312,861) 65,444 93,213


Expenditure Highlights Primary expenditures from the Replacement Fund are

for the desktop/laptop replacement program that has

been scheduled within the first six months of 2014.

Approximately 210 machines were replaced in the first

quarter and an additional 250 will be replaced during the

second quarter. The maintenance expenses for the first

quarter have been primarily for the Radio Replacement

Project, Golf Course Point-of-Sale System, and the Oracle

Financial System. Print Shop expenditures will spike in the

second quarter of 2014 as we pay for this new replacement

equipment. This expenditure will likely cause the Print

Shop to operate at a loss in 2014; however, we will still

have a positive fund balance.

20

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 2013 levels. For the City as

a whole, Vehicle Maintenance transfers remain roughly at

2013 levels.

Expenditure Highlights The conspicuous drop in year-over-year Maintenance

Expenditures is due to drops in first quarter spending in

a number of line items, including Inventory and Repair &

Maintenance - Vehicles. However, it is too early in the year

to declare a trend for the rest of 2014.

VehiclesFund

2014 Budget

As of 03/31/14

As of 03/31/13


Revenues

Maintenance Transfers $2,262,414 $563,380 $549,145

Replacement Transfers 1,115,772 279,938 278,943

Other 116,579 93,614 12,546

Total Revenues $3,494,765 $936,931 $840,634

Expenditures

Maintenance $2,071,728 $388,512 $522,171

Replacement 1,972,400 98,133 $83,677


Income/(Loss) (549,363) 450,286 234,786


Vehicles

BuildingsBuildingFund

2014 Budget

As of 03/31/14

As of 03/31/13


Revenues

Replacement Transfers $431,165 $107,825 $101,838

Other 134,721 120,808 (363)

Total Revenues $565,886 $228,633 $101,475

Expenditures

Replacement $366,681 $ - $34,556

Capital Lease 117,396 27,840 27,304

Total Expenditures $484,077 $27,840 $61,861

Income/(Loss) 81,809 200,793 39,614


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

remained at 2013 levels. The small increase is due to both

PD Tax Increment Funds beginning to pay into the Fund for

future replacements at the Lake Arbor and West Woods

Community Stations. The leap in Other Revenues was solely

due to the timing of transfers from various Funds for annual

Capital Lease payments.

Expenditure HighlightsThe Capital Lease Expenditures represent payments per an

agreement with Siemens Building Technologies in 2004 for

energy efficiency improvements at various City facilities.

The term of this lease expires in 2016. Activity scheduled

for 2014 includes the replacement of the Arvada Community

Food Bank parking lot.

21

Operations2014

BudgetAs of

3/31/14As of

3/31/13


Revenue 775,000 197,196 182,306

Expenditures 766,881 167,424 169,267

Ending Fund Balance $405,009 $426,662

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 2014 are at 22% of budgeted

expenditures and are comparable to 2013 expenditures. Salaries

and benefits represent the largest expenditure at approximately

45% of the expenditures.

Program 2014

Beginning Cash Balance $875,781

Revenue 1,133

Expenditures (15,676)

Ending Cash Balance 861,238

Reserved for AEDA Loan Program (300,000)

Reserved for AEDA Small Business Grants (150,000)

Reserved for Job Creation Program (23,500)

Reserved for New Entrepreneur Program (19,500)

Commitments (209,325)

Available Unallocated Cash Balance $158,913

Revenue HighlightsRevenues in 2014 consist of interest income.

Expenditure HighlightsExpenditures in 2014 reflect three AEDA small business grants.

The grants were used to help Arvada businesses improve signage,

landscaping, facades, and site improvements.

Arvada Economic Development Association

22

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.

CITY OF ARVADA INVESTMENT

REPORT

Investment Portfolio OverviewThe portfolio saw a year-to-date first quarter 2014 yield of .599% which is an increase of 5bps when compared to the year-to-date first quarter 2013 yield of .548%.

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 .31%, constructed using the average 2014 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% and the Federal Reserve 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 $20 million in investment calls during the first quarter 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 decreased due to the $36 million funding of an escrow account for the

Denver Water Project during the third quarter of 2013. We are keeping a balance in our checking account due to the fact that the City earns .30% earnings credit on

balances in our accounts. This earnings credit offsets monthly banking fees and is higher than the current LGIP rates of .10%. Keeping this balance in our checking

account reduces our banking fees but will allow us to quickly invest these funds as interest rates recover. Key information regarding the City’s portfolio is shown in

following tables and graphs:

03/31/2014 03/31/2013 Difference

Interest Earnings $246,725 $303,680 -$56,955

Portfolio Yield 0.599% 0.600% 0.001%

Benchmark Yield 0.313% 0.370% -0.057%

Tracking Error +29bps +23ps +7ps

PORTFOLIO PERFORMANCE

03/31/2014 03/31/2013 Difference

Money Market $1,013,210 $5,006,842 -$3,993,632

Savings/Cash 21,140,670 20,163,693 976,977

CD 17,284,936 19,270,465 -1,985,529

Corporate 5,995,000 5,000,000 995,000

LGIP 17,465,038 36,468,439 -19,003,401

US Agency 100,600,000 108,000,000 -7,400,000

US Treasury 2,000,000 7,000,000 -5,000,000

Total $165,498,854 $200,909,439 -$35,410,585

PORTFOLIO CHANGES

Par Value $165,498,854

Book Value $165,498,377

Market Value $164,944,251

Unrealized Gain/(Loss) -$554,603

ACCOUNT SUMMARY

Average Duration (yrs) 2.03

Average Coupon 0.581%

Average Cost YTM 0.666%

Average Market YTM 0.746%

PORTFOLIO CHARACTERISTICS

Savings/ cash, 12.0%CD, 10.5%

LGIP, 10.5%

Money Market,

0.6%

U.S. Agencies,

60.9%

U.S. Treasuries,

1.2%

Maturity (yrs)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0-.25 .5-1 1-2 2-3 3-4 4-5

28.1%

7.4%10.3%

18.1%

27.6%

8.5%

MATURITY DISTRIBUTION

PORTFOLIO ALLOCATION

23

City of Arvada Investments as of March 31, 2014

The City’s portfolio as of March 31, 2014 is shown below, which includes credit ratings as of March 31, face value and actual interest earnings for 2014.

Chart continues next page

Description Savings/Checking CUSIP/Ticker Credit Rating

12/31/2013

Coupon

Rate

Maturity

Date

Ending Face

Amount/Shares

Interest

Dividends

JPMorgan Chase Savings CHASE N/A 0.05% N/A 5,545,797.22 332.72

Wells Fargo Savings WELLSFARGO N/A 0.13% N/A 5,033,991.92 1,380.36

JP Morgan Checking N/A 0.30% N/A 10,560,881.04 0.00

Sub Total Savings/Checking 21,140,670.18 1,713.08

Certificate Of Deposit

FIRSTBANK CD7273 N/A 0.25% 05/27/2014 2,005,078.17 0.00

FIRSTBANK CD7281 N/A 0.30% 12/02/2014 5,136,394.11 3,755.84

FIRSTBANK CD8679 N/A 0.60% 05/05/2014 5,093,001.53 7,421.02

FRISTBANK CD5343 N/A 0.30% 07/29/2014 5,050,461.82 3,693.00

Sub Total Certificate Of Deposit 17,284,935.63 14,869.86

Corporate

Apple, Inc 037833AH3 AA1 0.45% 05/03/2016 1,410,000.00 0.00

Exxon Mobil 30231GAA0 AAA 0.92% 03/15/2017 1,500,000.00

Berkshire Hathaway 084664BX8 AA2 0.95% 08/15/2016 3,085,000.00 14,653.75

Sub Total Corporate 5,995,000.00 14,653.75

Local Government Investment Pool

C Safe LGIP CSAFE AAAm 0.10% N/A 16,020,011.05 1,620.11

Colo Trust LGIP COLOTRUST8001 AAAm 0.11% N/A 1,445,027.83 410.40

Sub Total Local Government Investment Pool 17,465,038.88 2,030.51

Money Market

CSIP MM CSIP AAAm N/A N/A 1,013,210.44 250.89

Sub Total Money Market 1,013,210.44 250.89

US Agency

FFCB 3133ED7L0 AAA 0.33% 11/13/2015 5,000,000.00 0.00

FFCB 3133ED6Z0 AAA 0.55% 05/12/2016 3,000,000.00 0.00

FFCB 3133EC3M4 AAA 0.60% 11/21/2016 3,000,000.00 0.00

FFCB 3133EC940 AAA 0.64% 05/09/2017 5,000,000.00 0.00

FFCB 3133EAU22 AAA 0.68% 09/12/2016 5,000,000.00 17,000.00

FFCB 3133ECY57 AAA 1.58% 08/28/2017 3,000,000.00 23,700.00

FHLB 313381ZP3 AAA 0.43% 02/12/2016 5,000,000.00 10,750.00

FHLB 313381QX6 AAA 0.55% 07/25/2016 3,000,000.00 8,250.00

FHLB 313382TR4 AAA 0.60% 04/24/2017 5,000,000.00 0.00

FHLB 313382HD8 AAA 0.70% 12/27/2016 5,000,000.00 17,500.00

FHLB 313382HT3 AAA 0.75% 03/27/2017 5,000,000.00 18,750.00

FHLB 313382W25 AAA 0.75% 08/15/2027 5,000,000.00 0.00

FHLB 313380U88 AAA 0.80% 04/17/2017 3,000,000.00 0.00

FHLB 3133727K4 AAA 2.13% 12/28/2015 2,000,000.00 0.00

FHLB 313382F65 AAA 0.60% 03/27/2018 5,600,000.00 16,800.00

FHLB 313382FL2 AAA 0.63% 03/27/2018 5,000,000.00 15,625.00

FHLB 313382T78 AAA 0.55% 04/30/2018 3,000,000.00 0.00

24

Investment Management Focus - 20142014 continues to be a struggle for the capital markets as the Fed has kept interest rates low, which will continue into 2014. We will continue to monitor the

two items of focus we have highlighted below.

Diversification of Maturities: We will continue to keep LGIP and cash and savings 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 some 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 10bps.

Description Savings/Checking CUSIP/Ticker Credit Rating

12/31/2013

Coupon

Rate

Maturity

Date

Ending Face

Amount/Shares

Interest

Dividends

FHLB 313382Z63 AAA 0.50% 05/22/2018 5,000,000.00 0.00

FHLMC 3134G4LD8 AAA 0.40% 11/27/2015 5,000,000.00 0.00

FHLMC 3134G4VU9 AAA 1.15% 09/11/2017 3,000,000.00 0.00

FHLMC 3134G4KY3 AAA 1.00% 11/26/2018 3,000,000.00 0.00

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 3136G1LA5 AAA 50.00% 05/15/2018 3,000,000.00 0.00

Subtotal Agency 100,600,000.00 183,375.00

US Treasury

T-bond 912828KY5 AAA 2.65% 06/30/2014 2,000,000.00 0.00

Subtotal US Treasury 2,000,000.00 0.00

Totals 165,498,855.13 216,893.09

Finance Department • 8101 Ralston Road • Arvada, Colorado 80002(720) 898-7120 • www.arvada.org

Contributors:

Bryan Archer, Director of FinanceLisa Yagi, Assistant Director of Finance

Ryan Adler, Budget AnalystDeanne Gibboney, Budget Analyst

Debra Nielson, ControllerArlene Martinez, Executive Assistant

2014 city 1q report issuu

Documents