2012 annual financial report
DESCRIPTION
COA 2012 year-end reportTRANSCRIPT
Financial Report2012 Year-End
Table of Contents
2012 Overview .....................................................................1
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
1
overview 2012 OVERVIEW
2012 OverviewThe completion of the fourth quarter of 2012 was positive, much like the previous three quarters. Sales tax receipts finished the
year 5.86% higher than 2011 and automobile use tax was 10.7% over 2011 following the nation’s trend of increased automobile
purchases.
The City issued 321 single-family permits compared to 125 in 2011. (See the following graph.)
BUILDING REVENUE AND SINGLE-FAMILY PERMITS
$0
$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
2007 2008 2009 2010 2011 2012GF Building Revenue $3,220,678 $3,171,672 $4,844,389 $3,882,867 $3,428,420 $4,585,077Single Family (Detached) Permits 113 96 64 151 125 321
Dolla
rs
0
35
70
105
140
175
210
245
280
315
350
2
We see the benefits of increased building activity in the General Fund,
Water and Wastewater Funds. In the General Fund, building use tax,
building permit fees and plan review fees totaled $4.5 million in 2012,
a $1.1 million increase over 2011. Water and Wastewater tap fees also
increased in 2012 and are used for capital improvements in both funds.
The Tax Increment Funds also reported increases in sales and use
tax receipts similar to the General
Fund. The fund balance in these funds
is adequate to fund the two police
substations that are planned in 2013,
while still meeting the reserve goal
of 11%.
The City’s three utilities, Water,
Wastewater and Stormwater, all
ended 2012 on a positive note. City
residents used over 5.764 billion
gallons of water in 2012 compared
to 5.049 billion gallons of water in
2011 due to the exceptionally dry
spring and summer. Total revenues in the Water Fund increased by
$3.6 million over 2011, generated by higher water consumption and
tap fees. In 2012, we also expected that initial payments for the
Denver Water Moffat Water project would be due. This project was
delayed, but we are now expecting that payments will start in 2013
upon approval of necessary permits for this project. The Wastewater
Fund revenues also exceeded 2011 revenues by $1.1 million, resulting
from increased sewer tap fees and sewer charges. Expenditures were
in line with the budget. However, there are some timing issues with
sewer main replacement work for the Gold Line, which we will need
to re-appropriate in 2013 in order to complete the project. The focus
of the Stormwater Fund in 2012 was the Garrison Street Bridge and
channelization projects. We expected to spend $9.8 million in 2012.
At the end of 2012, only $5.5 million was paid, so there will also be
monies that require re-appropriation in 2013. This project is expected
to be completed in the spring of 2013.
2012 was also a good year for the Golf Fund. Revenues are $510,000
higher than 2011. Rounds of play were up 11.5%. The additional
revenues in the Golf Fund helped to fund some needed capital
maintenance items of the courses. The projects to convert the entire
golf cart fleet from gas to electric and to provide a face lift to both the
clubhouse and restaurants at Lake Arbor and West Woods started in
2012 and will be finished by the first quarter of 2013.
The Internal Service Funds that account for the costs of the City’s
insurance, vehicle purchases and maintenance, computer purchases
and maintenance and building maintenance all have healthy funds
balances and are accumulating
monies to replace assets based on
a planned replacement schedule.
Major purchases in 2012 included a
new telephone system, replacement
of some police vehicles with the new
Ford Interceptors, and seal coats
of the parking lots at City Hall, the
Annex and the Arvada Center.
The only dim light in the financial
pictures is the level of interest
earnings. As in the previous two
years, the City’s interest revenues
continue to fall. However, due to the low interest rate environment,
the City will be able to refinance the outstanding Series 2003 Sales
and Use Tax Bonds in the first quarter of 2013. Refinancing these
bonds will enable the City to realize over $500,000 in savings through
decreased debt service payments.
Fitch assigns a “AAA” rating to the 2013 Sales and Use Tax Bonds
based on the City’s strong financial position, characterized by large
reserves, ample liquidity, and resilient revenue sources.
As we close the books for 2012, the story of the City’s finances is a
positive one. We completed the City’s first ten-year financial plan,
emphasizing the strategy of Taking Lasting Care, Building on the Base
and Building for the Future. There are many programs and projects
that are currently underway and planned for the future that will
prepare the City for the upcoming changes with police community
substations, the arrival of the Gold Line, and completion of the
Northwest area of the City. The ten-year plan, along with the City’s
conservative budgeting philosophy, will help to ensure that services to
the citizens are maintained.
Fitch assigns a “AAA” rating to the 2013 Sales and Use Tax Bonds based on the City’s strong
financial position, characterized by large reserves, ample liquidity, and resilient revenue sources.
3
general fund GENERAL FUND
General FundBudget2012
2012 Revised
(10-Year Plan)
2012
Actual
Beginning Fund Balance $23,065,000 $23,065,000 $23,065,000
REVENUES $63,883,931 $66,536,824 $68,301,048
EXPENDITURES
Ongoing $65,700,632 $66,562,219 $65,405,243
One Time
JPPHA 300,000 2,038,333 1,128,333
AEDA 500,000 500,000 500,000
Long Lake Ranch restrooms - 611,000 611,000
Traffic Calming - 250,000 250,000
Supplemental Appropriation - 541,352 541,352
2012 Expenditures $66,500,632 $70,502,904 $68,435,928
Money Dedicated for 2013
JPPHA - - 910,000
Carryovers to 2013 - - 270,903
Gold Line parking - - 2,500,000
Total Expenditures $66,500,632 $70,502,904 $72,116,831
Ending Fund Balance $20,448,299 $19,098,920 $19,249,217
17% of Expenditures 11,305,107 11,985,494 11,985,494
Use of cash to balance
2013-2018 - 7,113,426 7,263,723
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
• TransfertotheCapitalImprovementsFundfornew
parks, transportation and other infrastructure projects
The following table provides a comparison of budgeted fund balance,
revenues and expenditures to actual amounts in 2012. We have
included the original 2012 budget adopted in October 2011 and the
2012 revised budget, which was a result of the ten-year financial
planning model that was completed in the third quarter 2012.
4
As the table illustrates, we began the year with a $23,065,000 fund balance and, after completing the ten-year financial
plan, anticipated ending 2012 with a fund balance of $19,098,920.
Expenditures increased due to unfinished projects in the 2011 calendar year. Since appropriations lapse at the end of the
calendar year, there are requests to re-appropriate these monies in the next year to complete the projects. On May 7, 2012
the Council approved the carryover ordinance for projects that needed to be re-appropriated. These amounts are added to
the 2012 budgeted expenditures. In addition, on December 3, 2012, Council approved a supplemental appropriation that
added $541,352 for unexpected expenditures incurred throughout the year.
At the end of 2012, city staff reviewed the 2012 project budgets and determined there were monies in the 2012 budget for
projects that will be completed in 2013 that totaled $1,180,526. The majority of these funds relate to JPPHA ($910,000) and
completion of a small section of the street maintenance project that could not be completed in 2012 ($163,721). In addition,
during the capital improvement planning process, Council set aside $11,500,000 for Gold Line parking requirements.
$9,000,000 was a loan from the Wadsworth corridor monies, $1,500,000 from RTD, and $2,500,000 from the excess fund
balance from 2012. These amounts are shown in the table as “Money Dedicated for 2013” and will be presented for
Council’s approval in the carryover ordinance in April.
Revenue HighlightsThe following section highlights the sources generated to meet the operating expenditures of the General Fund. The City’s
revenue comes from many sources as illustrated in the graph below. Information about sales tax, use tax, property tax and
intergovernmental revenues is detailed in the next few pages.
GENERAL FUND REVENUE
Sales Tax52%
Interest0%
Franchise Fees6%
Court Fines and Fees3%
Building Use Tax & Permits6%
Auto Use Tax7%
Use Tax2%
Property Tax7%
Other17%
5
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.
Nationally, vehicles sales were up in 2012 and the
City saw the same trend as auto use tax increased
10.7% over 2011 collections. In 2012, the City saw
the largest number of single family permits issued
in the last five years which contributed to strong
building use tax collections. General use tax was a
concern throughout 2012, finishing the year down
about 6.5% from the budget estimates.
Sales tax collections in 2012 exceeded the prior year
collections by 5.8% and also exceed pre recession
sales tax levels.
Grocery chain sales, which are a stable sales tax
resource in the City, grew 10.8% in 2012, due to
the renovation of a large grocery store and the
opening of a new store. We have also seen an
increase in all three categories of fast food, fast
casual and restaurants, showing that people are
spending more money on eating out. General
department stores also showed an increase of
5.47% over 2011. The only area of concern was
the utilities category, which decreased 2.72% from
2011, showing the effects from the warm winter
temperatures.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2008 2009 2010 2011 2012
Building Auto General
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2008 2009 2010 2011 2012$35,945,909 $34,584,747 $34,776,789 $35,852,374 $37,954,667
Property Tax
PROPERTY TAX COLLECTIONS
$-
$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
2008 2009 2010 2011 2012$4,718,719 $4,770,519 $4,637,622 $4,643,015 $4,500,376
Prop
erty
Tax
Rev
enue
The City’s property tax rate is 4.31 mills per
$100 of valuation. In Colorado, the mill is
placed on the assessed value. Property tax
collections in 2012 were $49,624 less than
budget. While this is a small amount of the
overall City revenue, 7%, it is a very stable
source of revenue for the City.
6
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 three years. In 2012, we
received $4.67 million or about 1% less than our
budget. Both revenue sources were up from 2011
and we think this is a sustainable trend. Costs of
street maintenance do continue to escalate. In
2011, we saw asphalt related items rise 12% .
This trend continues in 2012, with an average of
a 9% increase. As costs continue to rise, added
pressure is put on other revenue sources to help
fill in the increasing shortage.
INTERGOVERNMENTAL REVENUES
All Other Revenue SourcesAs the pie chart of General Fund Revenues illustrates, 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. Investment interest earnings fall under the miscellaneous category and in the past were a
healthy source of revenue. Since the onset of the Great Recession, interest earnings continue to fall and in 2012 generated about $273,000. The last section of
this report reviews the investment portfolio in detail.
Expenditure HighlightsThe largest expenditure in the General Fund is personnel costs which account for 51% of expenditures.
GENERAL FUND EXPENDITURES
$0
$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
2009 2010 2011 2012
HUTF Jefferson County
Personnel51%
Transfers13%
Contracts12%
Debt Service7%
Services and Charges9%
Supplies and Expenses7% Misc
1%
7
PERSONNEL 2012 Budget 2012 Actual
Salaries & Wages $26,900,997 $26,015,957
Vacancy Savings (1,086,000) (1,086,000)
Overtime 877,161 736,065
Group Insurance 4,494,739 4,134,460
Retirement 3,081,596 3,055,856
Medicare 311,913 304,837
Temporary Wages & SS 516,355 371,397
Other 368,414 357,573
Total $35,465,175 $33,890,145
Three Divisions represent the substantial increase in temporary wage costs: Information
Technology’s use of temps for vacancy coverage, Building Inspection’s use of temps to manage
increased workload due to the rise in building activity, and Traffic Engineering’s use of temps
for the Olde Town parking study.
Fuel 2012 Budget 2012 Actual
General Fund $519,851 $494,213
Parks 196,296 162,603
Police Tax Increments 48,668 54,967
Utilities 222,008 131,022
Other 88,052 87,216
Total Expenditures $1,074,875 $930,021
Salary and Benefit Savings
8
arvada centerARVADA CENTER
Arvada CenterArvada Center 2012 Budget 2012 Actual
Beginning Fund Balance $ 232,174 $ 232,174
REVENUES
Generated $ 6,199,444 $ 5,446,139
SCFD 1,034,000 1,026,866
City Cash Transfer-Original 1,218,122 1,218,122
City Cash Transfer-Additional 725,000 625,970
City In-Kind Transfer 1,967,270 2,097,497
Total Revenues $11,143,836 $10,414,594
EXPENDITURES
Ongoing $ 8,876,566 $ 8,317,097
In-Kind 1,967,270 2,097,497
Total Expenditures $10,843,836 $10,414,594
Income/(Loss) 300,000 (0)
Cash Balance 532,174 232,174
Goal (11% of Expenditures) 1,192,822 1,145,605
Excess/(Deficit) $(660,648) $(913,432)
With a Mission “to inspire the residents of our region to live and
learn creatively by experiencing the performing arts, visual arts,
educational programs, and historical exhibits”, the Arvada Center
continues to focus on partnerships, collaboration, and innovation to
maintain and increase programming, audience base and revenue.
The Mission of the Center requires constant vigilance and balance
between and amongst commercially viable, revenue-producing
productions, classes, and workshops and reduced cost and free
offerings, as well as community-focused and accessible programs.
In 2012, the Arvada Center gained recognition for a number of
accomplishments and new initiatives. The Performing Arts Division
won the Henry Award for Best Season by a Theater Company, the
Education Division introduced Spring Break Camps to the area and
had a resounding success, and the Galleries completed one of their
most ambitious and recognized series of exhibitions in the 37-year
history of the Arvada Center, just to name a few.
The Center’s impact on the community and the region continues
to grow through summer programming, collaboration, and
partnerships. The relationships continued with Creede Repertory
Theatre, Lone Tree Arts Centers, and numerous other cultural
institutions. In addition, the Center, with the support of the City
Council, embarked on a process to examine the overall structure of
the Center and determine if there may be a better way to move the
Center forward in the coming years. This effort has taken shape in
the form of the Ad Hoc Task Force, meeting throughout the spring
of 2013.
2012 was a volatile year for revenues at the Center. Due to this
volatility, the Center did request and receive a supplemental
9
$0$200,000$400,000$600,000$800,000
$1,000,000$1,200,000
2009 2010 2011 2012
SCFD Revenue
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
Cash In-Kind Total
City of Arvada Contributions
2010
2011
2012
appropriation to address a shortfall in revenues. The Center requested $300,000; however, after all year-end revenues and expenditures were
accounted, the final amount needed was $200,970.
The primary reason for the financial gap is reduced revenue as overall expenditures grew by only 2%. Revenue did grow by 7.66% and 9% in
Education and Development, respectively, in 2012, but the largest driver in the revenue gap was performing arts. Performing arts revenue was
down 6.6% in 2012. Specifically, two major musicals performed below expectations. The musicals, Chess (part of the 2011 – 2012 theater season)
and Dirty Rotten Scoundrels (part of the 2012 – 2013
theater season) combined to perform approximately
$225,000 below initial projections. With regard to
Chess, only 71% of the capacity of the theater was
sold. This was primarily due to a lack of single ticket
sales as compared to other shows during the 2011 –
2012 season. With regard to Dirty Rotten Scoundrels,
only 60% of capacity was utilized. Dirty Rotten
Scoundrels was very well received by audiences and
critics; however, ticket sales were very slow. This was
experienced throughout the region at theaters and
concert venues this fall. It should be noted that there were several specific cost reductions made to the production of Dirty Rotten Scoundrels, including
a decrease in the number of actors cast (from 30 to 23); however, the decrease was not enough to offset the subpar sales. In addition to a lack of single
ticket sales, subscriptions for the 2012 – 2013 season are down as compared to 2011-2012.
With a supplemental appropriation of $200,000 in 2012, the total cash operating support given to the Arvada Center by the General Fund was
$1,843,000. Last year that support was $1,643,000,
and over the last six (6) years that support has
averaged approximately $1,870,000.
Total support, cash and in-kind, from the General
Fund, including the $500,000 shown for rent, and the
remainder of the support services provided by the
City, will equal approximately $3,810,270. Last year
that support was approximately $3,575,000, and
over the last six (6) years that support has averaged
approximately $3,877,835, or approximately 5.75%
of the General Fund.
10
parks fund PARKS FUND
Parks FundParks Fund 2012 Budget 2012 Actual
Beginning Fund Balance $4,047,373 $4,047,373
REVENUES
Generated $ 182,025 $ 175,878
Open Space 3,203,449 3,312,980
APEX Reimbursement 898,000 880,906
City Cash Transfer 2,808,044 2,790,916
Total Revenues $ 7,091,518 $ 7,160,680
EXPENDITURES
Ongoing $ 7,089,653 $ 6,965,841
Capital 200,000 200,000
Total Expenditures $ 7,289,653 $ 7,165,841
Income/(Loss) (198,135) (5,161)
Ending Fund Balance 3,849,238 4,042,212
Goal (11% of Total Expenditures) 801,862 788,243
Excess/(Deficit) $3,047,376 $3,253,969
Revenue HighlightsJefferson County Open Space revenue, the main source
of revenue for the Parks Fund, increased 5% over 2011
actuals, while the city cash transfer to the Parks Fund
increased 1.8%. Earned income from the Majestic View
Nature Center was similar to 2011 actuals. Total Parks
Fund revenues, when comparing 2012 original budget to
2012 actuals, are 1% above budget.
Expenditure HighlightsTotal actual expenditures are 6.2% more in 2012
compared to 2011 as a result of the increased use of
temporary staff, overtime and program expenses.
11
PARKS REVENUE
0500
1,0001,5002,0002,5003,0003,5004,0004,500
Open Space Cash Transfer APEX
As of YE 2010 As of YE 2011 As of YE 2012
12
special revenue funds SPECIAL REVENUE FUNDS
.21 and .25 Tax Increment Funds.21 and .25 Tax Increment Funds
2012 Budget 2012 Actual
Beginning Fund Balance $ 12,356,000 $ 12,356,000
REVENUES
Sales Tax / Audit Revenue $ 5,598,455 $ 5,984,582
Use Tax 1,084,240 1,291,014
Other 216,340 168,228
Total Revenues $ 6,899,035 $ 7,443,825
EXPENDITURES
Ongoing $ $6,962,397 $ 6,919,593
Total Expenditures $6,962,397 $6,919,593
Income/(Loss) (63,362) 524,232
Ending Fund Balance $12,292,638 $12,880,232
Goal (11% of Total Expenditures)
765,864 761,155
Excess/(Deficit) $11,526,774 $12,119,076
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 HighlightsRevenue numbers continue to steadily increase through
year-end 2012 with Sales Tax/Audit revenue up 5.66%,
from $5,664,005 in 2011 to $5,984,582 in 2012. Use Tax
revenue was up 10% over 2011 actuals, from $1,172,604 in
2011 to $1,291,014 in 2012. Recovered Costs in 2012 (one-
time miscellaneous reimbursements from outside agencies)
continued to decline over 22% through the end of 2012.
Expenditure Highlights Salaries and benefits increased 7.92% over 2011. Police Officer positions are
filled at 96%. Total actual expenditures for year-end 2012 are at 99.39%
of budget. The fund balance increased $524,232 in 2012. However, we will
see the fund balance decrease in 2013 with the construction of two police
community substations.
13
special revenue funds Community Development
Community Development Fund 2012 Budget 2012 Actual
Beginning Fund Balance $ 7,098,000 $ 7,098,000
REVENUES
Recovered $ 114,737 $ 132,348
Grants 638,000 336,151
City Cash Transfer 45,000 45,000
Interest/Other 19,500 17,603
Total Revenues $ 817,237 $ 531,103
EXPENDITURES
Ongoing $ 454,826 $ 413,313
Essential Home Repairs 380,625 296,827
Loans 125,000 -
Total Expenditures $ 960,451 $ 710,140
Income/(Loss) (143,214) (179,037)
Ending Fund Balance $6,954,786 $6,918,963
The Loans line item provides for appropriation in the event that
opportunities arise for assistance related to multifamily housing. Since
no such opportunities arose in 2012, the Loans line had no expenditures.
Among the ongoing expenditures is funding for primary nonprofits
who serve disadvantaged Arvada residents each year. Additionally, a
considerable amount of federal Community Development Block Grant (CDBG)
funding has been reserved for use reconstructing Memorial Neighborhood
Park in 2013.
Arvada Housing Authority
Arvada Housing Authority 2012 Budget 2012 Actual
Beginning Fund Balance $ 390,000 $ 390,000
REVENUES
Recovered $ 19,178 $ 12,118
Grants 3,900,000 3,653,901
City Cash Transfer 26,000 80,000
Interest/Other 5,464 1,857
Total Revenues $3,950,642 $3,747,876
EXPENDITURES
Ongoing $ 355,323 $ 394,520
Rents 3,532,200 3,488,481
Transfers 53,674 50,627
Total Expenditures $3,941,197 $3,933,629
Income/(Loss) 9,445 (185,752)
Ending Fund Balance $ 399,445 $ 204,248
As of the end of 2012, the Arvada Housing Authority assisted
480 families with rent subsidies on a monthly basis. These
subsidies constitute nearly 90% of this Fund’s expenditures.
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. In 2011 and 2012, the City
has received supplemental funding from EOC,
which accounts for the increase in dollars and
grants over the past two years.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2008 2009 2010 2011 2012Dollars $31,514 $22,026 $24,309 $48,800 $52,000
Tota
l Dol
lars
EOC ENERGY ASSISTANCE 2008-2012Dollars (Grants)
(83)
(119)(113)
(67)(83)
14
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 2012, the majority of the revenues in the Capital Improvement Project (CIP) fund consisted of transfers from the General Fund, Construction
Fund and Lands Dedicated Fund.
Other revenues include park development fees, grant revenue and contributions from other governmental agencies.
Expenditure HighlightsThe majority of expenditures in this fund in 2012 relate to the construction of various park projects. Some of the park projects include Wolff,
Forest Springs, Sunrise Ridge, Saddlebrook, Four Acre and Thundercloud parks. Park staff also completed the Shelter at Indiana Esquestrian
and 80th Avenue medians as well as renovations of Davis Lane and Westwoods parks. Two major transportation projects included the Olde
Town streetscape project and the Sheridan bridge. There was also the purchase of land needed for parking at the future Olde Town station for
the Gold Line.
Reserved FundsThe CIP fund ended 2012 with a fund balance of $39 million and has confirmed grant revenues of $4 million that will be received upon
completion of the projects. Reserved projects total approximately $43 million.
15
capital improvementCapital Improvement Fund 2012 Budget 2012 Actual
Beginning Fund Balance $38,822,184 $38,822,184
REVENUES
Transfers in $10,505,777 $11,641,532
Other revenue 1,600,000 1,099,776
Total Revenues $12,105,777 $12,741,308
EXPENDITURES
CIP Administration $ 3,362,116 $ 927,057
CIP Street Projects 3,992,047 2,144,288
CIP Traffic Projects 6,047,052 1,743,429
CIP Park Projects 11,038,834 6,923,673
CIP Arvada Center Projects 310,000 238,630
Total Expenditures $24,750,049 $ 11,977,077
Ending Fund Balance $26,177,912 $39,586,415
Anticipated Grant Revenue $ 4,078,005
ASSIGNED FOR PROJECTS:
CIP Administration $16,929,648
CIP Buildings 3,494,822
CIP Street Projects 7,360,530
CIP Traffic Projects 6,391,617
CIP Park Projects 8,179,690
CIP Arvada Center Projects 338,814
8% Reserve 958,166
Total Assigned for Projects $43,653,287
Ending Fund Balance $ 11,133
16
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 HighlightsAnnual revenues from water sales were up by 14.0% over 2011
totals, with consumption up 14.1% over the same period.
Expenditure HighlightsThe substantial difference between the Capital budget and the
Capital expenditures stems from Gross Reservoir. For 2012, the
City had budgeted $2.5 million for Gross Reservoir Expansion-
related costs, but the project saw no City expenditures for the
year. As for the Major Capital Maintenance budget, approximately
$300,000 of Gold Line-related water main work in railroad right-
of-way planned for 2012 will be completed and billed in 2013.
Delays and postponements related to other planned 2012 projects
account for the remaining budget-to-actual difference.
Water FundWater Fund 2012 Budget 2012 Actual
Beginning Fund Balance $ 58,524,000 $ 58,524,000
REVENUES
Water Charges $ 18,224,100 $ 19,717,158
Tap Fees 3,093,671 4,378,473
Interest 1,154,839 537,263
Other 790,371 1,424,771
Total Revenues $23,262,981 $26,057,665
EXPENDITURES
Ongoing $14,986,506 $15,272,587
Debt Service 2,265,700 2,257,346
Major Capital Maintenance 3,944,500 3,093,631
Capital 3,036,959 114,720
Total Expenditures $24,233,665 $20,738,283
Income/(Loss) (970,684) 5,515,007
Ending Fund Balance $57,553,316 $64,039,007
Goal (25% of Ops+Debt Svc) 6,998,452 6,848,901
Excess/(Deficit) $50,554,865 $56,994,481
Water BondsFitch Ratings performed an annual review of the Water Enterprise Bonds, Series
2009, and affirmed the “AAA” rating for these bonds. In arriving at the stable
outlook for the Water Enterprise Bonds, Fitch cited a strong financial profile, low
debt levels, solid management and a stable local economy as key rating drivers.
17
Water Tap FeesThis chart shows a history of annual water tap fee collections since 2008. The substantial increase of 83% in 2012 reflects the
considerable increase in residential building activity.
Water ConsumptionThis chart shows annual water consumption since 2008. Historically dry conditions led to substantial increases in consumption.
- 400,000 800,000
1,200,000 1,600,000 2,000,000 2,400,000 2,800,000 3,200,000 3,600,000 4,000,000 4,400,000 4,800,000 5,200,000 5,600,000 6,000,000
2008 2009 2010 2011 2012Water Consumption 5,437,028 4,577,112 5,150,842 5,049,729 5,700,412
Thou
sand
s of
Gal
lons
WATER CONSUMPTION(Thousands of Gallons)
$0$400,000$800,000
$1,200,000$1,600,000$2,000,000$2,400,000$2,800,000$3,200,000$3,600,000$4,000,000$4,400,000
2008 2009 2010 2011 2012Tap Fees $2,227,346 $1,185,036 $1,785,928 $2,394,111 $4,378,473
Dol
lars
WATER FUND - TAP FEES
18
Wastewater Tap FeesThis chart shows a history of annual wastewater tap fee collections since 2008. As with water tap fee collections, the substantial increase in 2012 reflects the
considerable increase in residential building activity.
Due to its location, the Arvada Station development falls within the City’s wastewater system, but its water service is provided by the Valley Water District.
This is a reason for the greater increase in wastewater tap fee collections in 2012 as compared to water tap fee collections.
Wastewater FundThe wastewater fund accounts for all activities
necessary in the collection, transmission and
disposal of sewage and wastewater.
Revenue HighlightsIllustrative of the considerable increase in
building activity within the City, tap fee revenues
for 2012 were up nearly 143% over 2011 totals.
These figures include many, but not all, of the
wastewater tap fees for the Arvada Station
development.
Expenditure HighlightsApproximately $800,000 of Gold Line-related
sewer main replacement work in railroad right-of-
way planned for 2012 will be completed and billed
in 2013. Charges from the Metro Wastewater
Reclamation District represent over 63% of all
expenditures in 2012.
$0$40,000$80,000
$120,000$160,000$200,000$240,000$280,000$320,000$360,000$400,000$440,000$480,000$520,000$560,000$600,000$640,000$680,000$720,000$760,000$800,000$840,000
2008 2009 2010 2011 2012Tap Fees $242,368 $128,576 $232,062 $343,561 $834,078
Dol
lars
WASTEWATER FUND - TAP FEES
Wastewater Fund
Wastewater Fund 2012 Budget 2012 Actual
Beginning Fund Balance $10,740,000 $10,740,000
REVENUES
Sewer Charges $10,704,387 $10,075,096
Tap Fees 234,486 834,078
Interest 209,614 95,260
Other 560,683 624,334
Total Revenues $11,709,170 $11,628,768
EXPENDITURES
Metro District $6,536,367 $6,540,959
Ongoing 2,900,070 2,688,896
Major Capital Maintenance 1,808,283 1,003,145
Capital 360,500 105,086
Total Expenditures $11,605,220 $10,338,087
Income/(Loss) 103,950 1,290,681
Ending Fund Balance $10,843,950 $12,030,681
Goal (25% of Op. Exp.) 2,811,180 2,558,250
Excess/(Deficit) $ 8,032,770 $ 9,472,431
19
Stormwater FundThe Stormwater fund accounts for all activities necessary to maintain a stormwater
management plan.
Stormwater 2012 Budget 2012 Actual
Beginning Fund Balance $10,953,000 $10,953,000
REVENUES
Stormwater Fee $3,119,747 $3,152,909
Other 66,268 2,888,904
Total Revenues $3,186,015 $6,041,813
EXPENDITURES
Ongoing $1,158,846 $1,050,716
Debt Service 932,488 932,490
Capital 10,650,000 5,428,119
Total Expenditures $12,741,334 $7,411,325
Income/(Loss) (9,555,319) (1,369,512)
Ending Fund Balance $1,397,681 $9,583,488
Goal (25% of Ops + Debt Svc) 1,222,200 1,195,169
Excess/(Deficit) $175,482 $8,388,319
Revenue HighlightsIn August, $1.98 million was transferred from the Drainage Fund to the
Stormwater Fund. These funds, comprised of Unit Drainage Fees (or UDFs,
last collected in 2003) and interest, reimbursed the Stormwater Fund for work
completed by the Stormwater Utility within the drainage basins for which the UDFs
were paid. In addition, the City received just over $600,000 in reimbursements
from the Urban Drainage and Flood Control District (UDFCD) for drainage
improvements associated with the Garrison Street Bridge Replacement.
Expenditure HighlightsCosts related to the replacement of the Garrison Street Bridge and related
channelization on Ralston Creek represented nearly 58% of all Stormwater
expenditures in 2012. As of the end of 2012, the Stormwater Utility’s Garrison
project was over 50% done. However about $4,379,000 will need to be
carried over into the 2013 budget. Due to some add-ons to the project,
completion is expected in April 2013, weather permitting. An additional
$800,000 was spent on the City’s share of costs pertaining to the Ridge Road
Tributary pursuant to an IGA with UDFCD and the City of Wheat Ridge.
20
Golf FundGolf Fund 2012 Budget 2012 Actual
Beginning Fund Balance $ 206,000 $ 206,000
REVENUES
Golf $ 2,868,767 $ 3,076,259
Restaurant 1,151,363 1,189,846
City Cash Transfer 219,474 265,043
Total Revenues $4,239,604 $4,531,148
EXPENDITURES
Golf $ 2,041,579 $ 2,052,284
Food 1,122,922 1,186,173
Operations 769,103 768,978
Capital 310,841 76,897
Total Expenditures $4,244,445 $4,084,332
Income/(Loss) (4,841) 446,816
Ending Fund Balance $ 201,159 $ 652,816
Rounds by Type - January thru December 2011/2012
WEST WOODS Regular Special Tournament Annual Senior Junior Other Total
2011 18,606 14,530 2,535 4,544 4,930 934 525 46,604
2012 23,875 10,633 3,040 5,982 7,486 1,039 1,283 53,338
5,269 -3,897 505 1,438 2,556 105 758 6,734
28% -27% 20% 32% 52% 11% 144% 14%
LAKE ARBOR Regular Special Tournament Annual Junior Other Total
2011 13,659 11,207 1,661 18,695 481 1,226 46,929
2012 20,176 6,969 1,348 19,595 617 2,238 50,943
6,517 -4,238 -313 900 136 1,012 4,014
48% -38% -19% 5% 28% 83% 9%
Revenue HighlightsTotal earned revenue from Golf and Restaurant operations increased
12% over 2011 actuals, from $3,807,574 to $4,266,105, a difference
of $458,531. Revenue growth was fueled by an 11.5% increase in
total rounds played at city golf courses: 104,281 in 2012 compared to
93,533 in 2011. West Woods Golf Club was named Best Golf Course in
Jefferson County in a Colorado Community Media reader’s poll.
Expenditure HighlightsTotal actual expenditures increased $33,650 in 2012, from $4,050,682
in 2011 to $4,084,332 in 2012 as the increase in Golf and Restaurant
revenues were re-invested into turf maintenance and capital
improvements projects, most notably a new maintenance building
at West Woods Golf Club and the conversion from gas to electric golf
cart fleet. These projects were not completed in 2012 and monies
necessary to complete them will be carried forward to 2013.
21
Hospitality FundHospitality Fund 2012 Budget 2012 Actual
Beginning Fund Balance $ 758,000 $ 758,000
REVENUES
Banquets $ 944,776 $ 932,006
Concessions 148,841 131,925
Miscellaneous 573,146 433,266
Total Revenues $1,666,763 $1,497,197
EXPENDITURES
Overhead $ 587,282 $ 285,388
Operations 1,263,406 1,272,724
Capital/Equipment 263,096 24,533
Transfer to General Fund 128,000 -
Total Expenditures $2,241,784 $1,582,644
Income/(Loss) (575,021) (85,447)
Ending Fund Balance 182,979 672,553
Goal (25% of Total Expenditures) 560,446 395,661
Excess/(Deficit) $ (377,467) $ 276,892
Revenue HighlightsTotal fund revenue decreased $54,337 or 3.6% in 2012
compared to 2011 actuals: $1,497,197 in 2012 compared
to $1,551,534 in 2011. This decrease is attributed to a
decrease in concession sales at the Arvada Center and
Stenger Sports Complex.
Expenditure HighlightsTotal actual expenditures decreased in 2012: from
$1,700,589 in 2011 to $1,582,644 in 2012, a decrease of
7.45%. Less monies were spent on salaries, benefits and
inventory in 2012 compared to 2011. Capital/Equipment
and the Transfer to General Fund monies in 2012 were
to be used for both a kitchen and banquet replacement
project and a ceiling and flooring replacement project. To
schedule the project, the facility will need to be closed for
one month in order to complete the work. Therefore the
projects are now scheduled to take place in 2013.
Major projects, including kitchen and banquet
replacement and ceiling and flooring replacement, will
take place in 2013. This will require a one-month facility closure for completion of this
work.
22
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 HighlightsTransfers came in under budget due to the suspension of Risk Management
Operations charges to all Funds for the final quarter of 2012. It was
determined mid year that the Insurance Fund could forego the revenue,
saving all Funds a total of $242,239 for the year.
Expenditure Highlights
Administration expenditures include $170,000 in costs related to network
liability and $113,000 relating to the remodeling of PD’s Dispatch
area. There were also $18,000 in Professional Services expenditures in
Operations as part of an in-depth analysis of the Insurance Fund.
*Per GASB Statement 10, an additional $1,486,072 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 Management
Risk Management 2012 Budget 2012 Actual
Beginning Fund Balance $ 4,684,000 $ 4,684,000
REVENUES
Transfers $ 2,310,582 $ 2,061,825
Other 66,000 71,577
Total Revenues $2,376,582 $2,133,402
EXPENDITURES
RM Administration $ 2,016,248 $ 1,794,018
RM Operations 603,648 605,771
Total Expenditures $2,619,896 $2,399,789
Income/(Loss) $(243,314) $(266,387)
Ending Fund Balance $4,440,686 $4,417,613
23
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 services remain at 2011 levels and Vehicle Maintenance
charges in 2012 are level with 2011 charges, though 2013 charges will
increase by 3%.
Expenditure Highlights In 2012, Fleet purchased 38 new vehicles, 21 pieces of equipment, and
executed leases on eight motorcycles.
Information Technology and Print ServicesInformation Technology and Print Services
2012 Budget 2012 Actual
Beginning Fund Balance $ 8,679,000 $ 8,679,000
REVENUES
Maintenance $959,712 $959,712
Replacement 897,441 898,168
Print Shop 425,049 296,687
Total Revenues $2,282,202 $2,154,567
EXPENDITURES
Maintenance $1,259,365 $817,486
Replacement 2,493,850 1,666,761
Print Shop 389,265 263,714
Total Expenditures $4,142,480 $2,747,961
Income (Loss) $(1,860,278) $(593,394)
Ending Fund Balance $6,826,722 $8,093,606
Vehicles
Vehicles 2012 Budget 2012 Actual
Beginning Fund Balance $6,985,000 $6,985,000
REVENUES
Maintenance Transfers $2,132,707 $2,132,707
Replacement Transfers 1,095,582 1,095,582
Other 379,476 86,517
Total Revenues $3,607,765 $3,314,806
EXPENDITURES
Maintenance $2,350,309 $2,241,455
Replacement 2,015,867 1,553,501
Total Expenditures $4,366,176 $3,794,957
Income/(Loss) (758,411) (480,150)
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 HighlightsPrint Shop revenues and expenses are both well below projections.
However, revenues exceed expenditures by $32,973. The Print Shop
is maintaining a fund balance slightly above $100,000, which will be
drawn down by about $28,000 in early 2013 with the purchase of a new
platemaker.
Expenditure Highlights The majority of replacement monies spent in 2012 were related to the
replacement of the current phone system software with a VoIP -based
Unified Communication System (UCS). The project cost was $807,000
and was completed on time with minimal impact to the City’s workflow.
Both the computer replacement and maintenance lines are below budget
as the CAD, Records Management System upgrade and budget software
replacement scheduled in 2012 have been delayed until 2013. $1,138,000
for those projects will be carried forward into 2013.
24
Buildings
Buildings 2012 Budget 2012 Actual
Beginning Fund Balance $ 1,654,000 $1,654,000
REVENUES
Replacement Transfers $ 407,351 $ 407,351
Other 112,849 119,536
Total Revenues $520,200 $526,887
EXPENDITURES
Replacement $ 766,799 $ 368,826
Capital Lease 112,848 112,609
Total Expenditures $ 879,647 $ 481,435
Income/(Loss) (359,447) 45,452
Ending Fund Balance $1,294,553 $1,699,452
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 HighlightsDue to careful evaluation, prudent deferments, and constant
reevaluating of a comprehensive replacement schedule, contributions
remain at 2011 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, with lease obligations ending
in 2016. Among the projects completed this year were seal coats of the
parking lots at City Hall, the Annex, and the Arvada Center, as well as
boiler replacements at the Ralston Treatment Plant.
25
Arvada Economic Development Association
Operations 2012 Budget 2012 Actual
Beginning Fund Balance $429,231 $429,231
Revenue 729,000 703,100
Expenditures 744,029 703,100
Ending Fund Balance $414,202 $429,231
Revenue HighlightsRevenue in the AEDA Operations Fund consists of a transfer from the
general fund equal to the personnel and operating expenditures.
Expenditure Highlights Expenditures in 2012 are slightly lower than budget due to
lower salary and benefit costs. Salaries and benefits account for
approximately 53% of the expenditures.
Program 2012
Beginning Cash Balance $ 721,482
Revenue 599,044
Expenditures (185,525)
Ending Cash Balance 1,135,001
Reserved for AEDA Loan Program (300,000)
Reserved for AEDA Small Business Grants (65,447)
Reserved for Job Creation Program (23,500)
Commitments (341,323)
Available Unallocated Cash Balance $404,731
Revenue HighlightsRevenues in 2012 reflect the third $500,000 payment of the $1,500,000
transfer from the City of Arvada for the AEDA business financial
assistance programs.
Expenditure HighlightsExpenditures in 2012 reflect 12 pilot business grants and one financial
assistance redevelopment grant. Four new loans were approved through
the Colorado Enterprise Fund.
26
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 are 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 yield of .724% in 2012 compared to 1.119% in 2011. The benchmark yield for the City’s portfolio, as established by the investment policy,
is a weighted benchmark of allowable securities. For the year, the weighted benchmark return was .41 percent, constructed using the average 2012 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 remained constant throughout 2012 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 $86.7 million
in investment calls 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. The portfolio increased approximately $874 thousand from December, 2011 to December, 2012. LGIP balances were reduced
$21.5 million during the year with investment focused in the two to four year maturity range of the curve by purchasing securities with a six month or greater
“lockout” period to earn a better than average coupon before the lockout period expired. During 2012, the City invested in a money market fund which is
available to Colorado Public entities, this fund provides a yield approximately 2 basis points higher than the local government investment pools. An indirect
benefit to the Arvada portfolio has been the capital appreciation that has been attained in this time, even though this is considered as “paper gains” and has
no profound affect on the yield we use to benchmark, the gain in 2012 was $452,870. Key information regarding the City’s portfolio follows:
PORTFOLIO PERFORMANCE
YTD Dec-12 YTD Dec-11 Difference
Interest Earnings $1,531,397 $2,255,678 -$724,281
Portfolio Yield 0.724% 1.119% -0.395%
Benchmark Yield 0.410% 0.590% -0.180%
Tracking Error +31bps +55bps -24bps
PORTFOLIO CHANGES
01/01/2012 12/31/2012 Difference
Money Market $0 $5,006,842 $5,006,842
Savings/Cash 21,135,849 20,163,693 -972,156
CD 19,185,915 19,270,465 84,550
Corporate 21,000,000 5,000,000 -16,000,000
LGIP 66,953,063 45,407,414 -21,545,649
US Agency 73,700,000 108,000,000 34,300,000
US Treasury 7,000,000 7,000,000 0
Total $208,974,827 $209,848,414 $873,587
27
0.0%5.0%
10.0%15.0%20.0%25.0%30.0%35.0%40.0%
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5
37.0%
1.9%
8.6%
3.4%
15.7%
21.4%
11.9%
Maturity (yrs)
ACCOUNT SUMMARY
Par Value $209,848,414
Book Value 209,901,724
Market Value 210,301,284
Unrealized Gain/(Loss) $452,870
PORTFOLIO ALLOCATION
Savings/ cash 9.6%CD 9.2%
Corporate 2.4%
LGIP 21.6%
Money Market 2.4%
U.S. Agencies 51.5%
U.S. Treasuries 3.3%
PORTFOLIO CHARACTERISTICS
Average Duration (yrs) 1.92
Average Coupon 0.716%
Average Cost YTM 0.646%
Average Market YTM 0.513%
City of Arvada Investments as of December 31, 2012The City’s portfolio as of December 31, 2012 is shown below, which includes credit ratings as of December 31, face value and interest earnings for 2012.
Description CUSIP Credit Rating
12/31/2012
Coupon Rate Maturity Date Face Value Interest 2012
Savings
JP Morgan Savings N/A 0.15% N/A $5,138,767 $19,161
Wells Fargo Savings N/A 0.18% N/A 5,024,927 8,683
JP Morgan Checking N/A 0.35% N/A 10,000,000 0
Sub Total Savings 20,163,693 27,844
Certificate of Deposit
FirstBank CD5343 N/A 0.30% 7/27/13 5,031,652 20,703
FirstBank CD7281 N/A 0.30% 11/30/13 5,117,264 19,922
FirstBank CD7273 N/A 0.25% 5/28/13 4,066,290 19,922
FirstBank CD8679 N/A 0.60% 5/5/14 5,055,259 20,086
Sub Total Certificate of Deposit 19,270,465 80,633
Corporate
Berkshire Hathaway 084664BG5 AA+ 5.00% 8/15/13 3,000,000 150,000
General Electric Co 369604AY9 AA+ 5.00% 2/1/13 2,000,000 100,000
Sub Total Corporate 5,000,000 250,000
Local Government Investment Pool
C Safe N/A 0.17% N/A 22,021,856 38,709
Colo Trust N/A 0.21% N/A 23,385,557 64,399
Sub Total Local Government Investment Pool 45,407,414 103,109
Money Market
Csip AAAm 0.22% N/A 5,006,842 6,842
Sub Total Money Market 5,006,842 6,842
Chart continues next page
MATURITY DISTRIBUTION
28
Investment Management Focus - 20132012 continued 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, 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
12/31/2012
Coupon Rate Maturity Date Face Value Interest 2012
US Agency
FFCB 3133EAH27 AAA 0.43% 08/13/2015 5,000,000.00 0
FFCB 3133EC2L7 AAA 0.44% 11/13/2015 5,000,000.00 0
FFCB 3133EC3M4 AAA 0.60% 11/21/2016 3,000,000.00 0
FFCB 3133EAU22 AAA 0.68% 09/12/2016 5,000,000.00 0
FFCB 3133EAGG7 AAA 1.00% 03/08/2016 4,000,000.00 20,000.00
FFCB 3133EAKP2 AAA 1.36% 04/04/2017 5,000,000.00 34,000.00
FHLB 313380U96 AAA 0.50% 10/16/2015 3,000,000.00 0
FHLB 313376ZJ7 AAA 0.50% 02/24/2015 5,000,000.00 12,500.00
FHLB 3133816B6 AAA 0.55% 11/13/2015 5,000,000.00 0
FHLB 313380C70 AAA 0.55% 02/08/2016 5,000,000.00 0
FHLB 313380U88 AAA 0.80% 04/17/2017 3,000,000.00 0
FHLB 3133727K4 AAA 2.13% 12/28/2015 2,000,000.00 42,500.00
FHLMC 3134G3V98 AAA 0.70% 11/21/2016 5,000,000.00 0
FNMA 3136G0W1 AAA 0.55% 02/22/2016 5,000,000.00 0
FNMA 3136G0HP9 AAA 0.60% 05/29/2015 3,000,000.00 9,000.00
FNMA 3136FTM89 AAA 0.80% 02/24/2016 5,000,000.00 20,000.00
FNMA 3136FT3J6 AAA 1.00% 12/28/2016 5,000,000.00 37,500.00
FNMA 3136G0RX1 AAA 1.00% 07/26/2017 5,000,000.00 0
FNMA 3136G0XD8 AAA 1.00% 08/28/2017 6,000,000.00 0
FNMA 3136FTDG1 AAA 1.05% 10/21/2015 5,000,000.00 52,500.00
FNMA 3136G0GT2 AAA 1.05% 11/14/2016 5,000,000.00 26,250.00
FNMA 3136FPEL7 AAA 1.05% 09/09/2013 5,000,000.00 52,500.00
FNMA 3136G0FS5 AAA 1.25% 05/17/2017 3,000,000.00 18,750.00
FNMA 3136G0XW6 AAA 0.50% 02/28/2017 3,000,000.00 0
FNMA 3136G0DZ1 AAA 0.65% 04/26/2016 3,000,000.00 9,375.00
Sub Total Agency 108,000,000.00 334,875.00
US Treasury
T-Bond 912828KY5 AAA 2.63% 06/30/14 2,000,000 78,750
T-Note 912828MT4 AAA 1.38% 03/15/13 5,000,000 68,750
Sub Total US Treasury 7,000,000 147,500
TOTAL $209,848,414 $950,803
Finance Department • 8001 Ralston Road • Arvada, Colorado 80002(720) 898-7120 • www.arvada.org