Document Lafayette_doc_2743956f4f

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 City of Lafayette, Colorado ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 City of Lafayette Statement of Vision Lafayette’s panoramic view of the Rocky Mountains inspires our view into the future. We value our heritage, our unique neighborhoods, a vibrant economy and active life-styles. We envision a future that mixes small town livability with balanced growth and superior technologies. City of Lafayette, Colorado Prepared By: Finance Department 2009 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended December 31, 2009 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 6 GFOA Certificate of 11 Organizational Chart 12 Directory of City Officials 13 FINANCIAL SECTION Independent Auditors’ Report 15 Management’s Discussion and Analysis 16 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets 27 Statement of Activities 28 Fund Financial Statements: Balance Sheet – Governmental Funds 29 Reconciliation of the Governmental Funds Balance Sheet to the Government Wide Statement of Net Assets 30 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of 33 Statement of Net Assets – Proprietary Funds 34 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary 36 Statement of Cash Flows – Proprietary Funds 38 Notes to the Financial Statements 41 Required Supplementary Information: Schedule of Funding Progress – Volunteer Firefighters’ Pension Plan 76 Budgetary Comparison Schedule – General Fund 77 Budgetary Comparison Schedule – Lafayette Urban Renewal Authority 81 Budgetary Comparison Schedule – Exempla GID 82 Note to Required Supplementary Information 83 Other Schedules: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds 87 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 88 Combining Balance Sheet – Nonmajor Special Revenue Funds 89 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance – Nonmajor Special Revenue Funds 90 Budgetary Comparison Schedule – Ambulance and Fire 91 Budgetary Comparison Schedule – Lafayette City Center GID 92 Budgetary Comparison Schedule – Lafayette Corporate Campus GID 93 Budgetary Comparison Schedule – Lafayette Tech Center GID 94 Combining Balance Sheet – Nonmajor Capital Project Funds 95 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance – Nonmajor Capital Project Funds 96 Budgetary Comparison Schedule – Storm Drainage 97 Budgetary Comparison Schedule – Legacy Open Space Fund 98 ---PAGE BREAK--- FINANCIAL SECTION (CONTINUED) Other Schedules (continued): Budgetary Comparison Schedule – POST Open Space & Park Development Fund 99 Budgetary Comparison Schedule – Conservation Trust Fund 100 Budgetary Comparison Schedule – Capital Projects Fund 101 Budgetary Comparison Schedule – Debt Service Fund 102 Combining Statement of Net Assets – Internal Service Funds 104 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets – Internal Service Funds 105 Combining Statement of Cash Flows – Internal Service Funds 106 Budgetary Comparison Schedule – Employee Benefit Fund 107 Budgetary Comparison Schedule – Insurance Fund 108 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Water Utility 109 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Water Reclam 110 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Golf Course .111 Budgetary Comparison Schedule (Non-GAAP Budgetary Basis) – Storm Water 112 STATISTICAL SECTION Financial Trends: Net Assets, Last Nine Years (Schedule 1) 115 Changes in Net Assets, Last Nine Years (Schedule 2) 117 Fund Balances, Governmental Funds, Last Nine Years (Schedule 3) 121 Changes in Fund Balances, Governmental Funds, Last Nine Years (Schedule 4) 123 Revenue Capacity: General Governmental Tax Revenues by Source – All Governmental Fund Types (Schedule 5) 127 Direct and Overlapping Sales Tax Rates (Schedule 6) 128 Principal Sales and Use Tax Payers (Schedule 7) 129 Debt Capacity: Ratio of Outstanding Debt, by Type, Last Nine Years (Schedule 8) 131 Ratio of General Bonded Debt Outstanding and Legal Debt Limit (Schedule 9) 133 Direct and Overlapping Governmental Activities Debt (Schedule 10) 135 Pledged-Revenue Coverage, Last Nine Years (Schedule 11) 136 Demographic and Economic Information: Demographic and Economic Statistics and Top Ten Employers for 1999 and 2008, Last Nine Years (Schedule 12) 139 Operating Information: Full-time Equivalent City Employees by Function/Program (Schedule 13) 140 Operating Indicators by Function/Program (Schedule 14) 142 Capital Asset Statistics by Function/Program (Schedule 15) 143 COMPLIANCE SECTION Local Highway Finance Report 145 ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 INTRODUCTORY SECTION 2009 ---PAGE BREAK--- Finance Department 1290 S. Public Road  Lafayette, Colorado 80026  (303) 665-5588 Fax (303) 665-2153 June 22, 2010 Honorable Mayor, Members of the City Council, and Citizens of Lafayette, Colorado Ladies and Gentlemen: The comprehensive annual financial report (CAFR) of the City of Lafayette, Colorado for the fiscal year ended December 31, 2009, is hereby submitted. The City is responsible for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures. To the best of our knowledge and belief, the enclosed report is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The CAFR is presented in four sections: introductory, financial, statistical, and compliance. The introductory section includes this transmittal letter, the City’s organizational chart and a list of principal officials. The financial section includes Management’s Discussion and Analysis (MD&A), the government-wide financial statements (GWFS), and the combining and individual fund financial statements and schedules, as well as the independent auditors’ report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The compliance section includes the State required Local Highway Finance Report. State statutes and the City Charter require an annual audit by independent certified public accountants. The accounting firm of Swanhorst & Company LLC was selected to perform the audit. Their auditors’ report on the GWFS and combining and individual fund statements and schedules is included in the financial section of this report. Management of the City is responsible for establishing and maintaining internal controls. Controls should be designed to ensure that the assets of the City are protected from loss, theft or misuse. They should ensure that adequate accounting data is compiled so that the financial statements can be prepared in conformity with generally accepted accounting principles (GAAP). The internal controls are reviewed as a part of the City’s annual audit. They are designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that: the cost of a control should not exceed the benefits 6 ---PAGE BREAK--- likely to be derived; and the valuation of costs and benefits requires estimates and judgments by management. Generally accepted accounting principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lafayette MD&A can be found immediately following the report of the independent auditors. The City provides a full range of services. These services include police and fire protection; ambulance; water and sanitary sewer services; the construction and maintenance of streets and infrastructure; recreational activities and cultural events. This report includes all funds of the primary government – General Fund, Debt Service Fund, Capital Projects Funds, and proprietary funds. Seven Special Revenue Funds are also included in this report. Six of the funds are reported as blended component units. These component units are legally separate organizations for which the City of Lafayette is financially accountable. City Council acts as the governing board for each of them. Profile of the Government The City of Lafayette is located on the northern edge of the Denver Metropolitan area, situated in southeastern Boulder County, Colorado. The City enjoys a central location between Boulder, Denver, and Longmont. It has good highway access to the entire region, with Interstate 25 located 6 miles east, the Northwest Parkway located on the City’s Southern edge, and the U S 36 Freeway (Boulder Turnpike) 5 miles south of the City. The four-lane U S Highway 287 and two- lane Colorado State Highway 7 intersect in the City. Lafayette’s location, accessibility, and “small town feel” combine to make the City a desirable location for residential, commercial, and light-industrial development. According to the 2000 U S Census, Lafayette had a population of 23,197 in 2000 (current estimate-26,448) living in its 8.6 square mile area (21st in the state), up from 14,440 people in a 7.1 square mile area in 1990 (also 21st in the state). Lafayette is a home-rule city, meaning that the organization and operation of our municipal government is conducted according to the Charter of the City of Lafayette. This Charter, adopted by the electorate in 1958, provides for a strong Council/Administrator form of government. It is designed to provide the maximum of teamwork among the members of the Council. The Council is composed of seven members, who are elected on a non-partisan basis from the city at large. Provision is made for the overlapping of terms with a majority of the Council to be elected every two years. Council selects its own team leader, the Mayor, who presides at public meetings and represents the City in interactions with other governmental entities. The Council is the policy-determining or overall governing agent of the city, having power to pass ordinances, determine policy and appoint the City Administrator and the Chief of Police. The City Administrator is hired by the Council to implement their policies and directives, and to 7 ---PAGE BREAK--- oversee the daily administration and management of all City departments. The Municipal Judge and City Attorney are appointed by, and report to, City Council. The organization of the city government was created to assure maximum flexibility in organizational structuring, to allow for adjustment to new demands and changing circumstances as Lafayette grows and prospers. The Charter includes provisions for proper budgeting, fiscal control, auditing, and economical fiscal procedures. The annual budget serves as the foundation of the City’s financial planning and control. The objective of these budgetary controls is to ensure compliance with legal provisions. Compliance is embodied in the annual appropriated budget approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. The City Council may make additional appropriations or budgetary transfers during the fiscal year for unanticipated revenues received by the City. The City Administrator may re-allocate the budget between departments within the same fund. Any budget revisions affecting fund totals are adopted in a supplemental appropriation ordinance approved by the Council. The City Council and Department Heads receive reports during the year comparing budgeted amounts to actual expenditures. Capital project budget appropriations lapse upon completion of each project. All other appropriations lapse at year-end. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. Detailed budget to actual comparisons are provided in this report for the General Fund, Exempla General Improvement District, Lafayette Urban Renewal Authority, nonmajor governmental funds, and proprietary funds. Factors Affecting Financial Condition Local Economy To date, the City has been able to minimize the affects of the current economic downturn. Construction activity almost ceased during 2008 due to the availability of credit. Proposed developments, both residential and commercial, have been postponed until economic conditions improve, with one exception. The Prana apartment complex began construction late in 2009, thus providing a boost to construction related revenues in 2009. Consumer activity remained strong throughout the year in spite of the closing of a grocery store and a few smaller local businesses. Businesses continue to be interested in eventually locating in the City. Commercial activity is poised to continue on, especially on the South end of the City, as soon as businesses can rely on a more stable environment. 8 ---PAGE BREAK--- The City continues its efforts to improve the quality of life within its borders by attracting desirable development. In addition, emphasis has been placed on small business retention and attracting new businesses within the community. Economic development activities promoted by the City are responsible for new business development, as well as business retention. These activities are essential at this time in order to take advantage of opportunities that occur in the future as the economy improves. Elements of sound economic expansion such as transportation, recreation facilities, planning considerations, and managed growth policies continue to be key issues. The City is confident that the long-term consequences of efforts in these areas will serve to maintain the City's competitive position and foster economic expansion. Such efforts are consistent with the City's goal of protecting the quality of life and the long-term financial interests of the citizenry. Long Term Financial Planning During the budget preparation process, capital needs are projected five years into the future, along with anticipated revenues and related operating expenditures. These projections are updated each year. Colorado’s water resources continue to be a critical component of the City’s ability to service its population and grow. Over the past few years, the City has been actively engaged in improving its sources and storage of water. Most recently, a major pipeline (75th Street) was constructed to carry clean water from Boulder Creek to the Baseline Reservoir. The City also was admitted to the Northern Colorado Water Conservancy District in order to diversify the portfolio and obtain a major source of water supply from the western slope. In 2006, the City began acquiring land at the Goosehaven water storage facility in order to expand raw water storage capacity. In 2008, the City acquired land as a site for a future peaking plant as insurance against higher summer water demands. In April 2003, the City issued Water Revenue Bonds to fund construction of a raw water transmission system, purchase shares in water supply districts, and other water-related projects. In order to pay for the additional debt service and anticipated operating cost increases, water rates were increased 9% in 2003, 2004, 2005, and 2006, but no further increases are anticipated in the near future. Lafayette continues its efforts to provide quality sanitary sewer services to the citizens. The testing lab was remodeled in 1999 as part of this effort, and additional sludge treatment capacity was brought on line in 1998. Expansion of the water reclamation plant began in 2001 and was completed in 2004 at a cost of approximately $8 million. Increased operating costs are forcing plans for increasing sewer rates beginning in 2010. As part of the US Highway 287 realignment, the City acquired Public Road in April 1996. Public Road, which was part of the old Highway 287, is the main north-south thoroughfare in the heart of downtown Lafayette. Even after the US 287 realignment, Public Road continues to have unusually high traffic volumes for a “bypassed” road. The City has placed a high priority on 9 ---PAGE BREAK--- public and private improvements along this one-mile stretch of road in the City’s old town area. The construction of the Festival Plaza along South Public Road in the urban renewal area commenced in November, 2008. Upon its completion in early 2009, the plaza attracted more activities to old town, benefitting the local businesses. In March, 2008, the City issued Sales and Use Tax Revenue bonds in the amount of $6,910,000 to address deferred maintenance on critical streets within the City and the construction of an addition to the Recreation Center. The winter of 2006-2007 accelerated the street maintenance schedule. Street projects continued in 2009, and the Recreation Center addition was completed. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2008. This was the 22nd consecutive year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both Generally Accepted Accounting Principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments The dedicated service of Accounting Manager Wade Nickerson and the entire staff of the Finance Department’s Accounting Division went into the preparation of the 2009 CAFR. The financial statements were closed, the audit was performed, and the CAFR was prepared under the guidelines of GASB 34. This year is the ninth year for the City of Lafayette to utilize Governmental Accounting Standards Board Statement No. 34— Basic Financial Statements — and Management’s Discussion and Analysis — for State and Local Governments. Each and every member of our staff has our sincere appreciation for the contributions they made in order to complete the 2009 CAFR. In closing, without the leadership and support of Lafayette’s Mayor and City Council members, preparation of this report would not have been possible. Sincerely, Gary Kiapha e, CCM Robert E. Wright, CPA City Administrator Finance Director 10 ---PAGE BREAK--- Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lafayette Colorado For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2008 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association ofthe United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFR5) achieve the highest standards in government accounting and financial reporting. President Executive Director 11 ---PAGE BREAK--- CITIZENS OF LAFAYETTE CITY ATTORNEY - Municipal Prosecution MUNICIPAL JUDGE - Traffic Violations - Code Violations CITY ADMINISTRATOR - General City Administration - Boards and Commissions - Human Resources BOARDS & COMMISSIONS - Planning Commission - Lafayette Cultural Arts Commission - Zoning Board of Adjustment - Library Board - Open Space Advisory Board - Employee Pension Board - Senior Center Advisory Board - Waste Reduction Advisory Committee - Historic Preservation Board - Telecommunications Advisory Board - Youth Advisory Committee - Outdoor Classroom Task Force - Urban Renewal/Architectural Review Committee - Public Art Committee - Latino Advisory Board FINANCE - Accounting - Budget - Utility Billing - Risk Management - Cash Management - Information Technologies COMMUNITY LIFE - Library - Senior Services - Cultural Arts - Local History RECREATION & FACILITY MANAGEMENT - Recreation Leisure Programs Aquatics - Recreation Center - Building Maintenance PLANNING & BUILDING - Planning Current Long Range - Building Code Administration Inspection POLICE - Patrol - Investigation - Code Enforcement - Emergency Management - School Resource Officers - Records & Evidence - Community Affairs Unit COMMUNITY DEVELOPMENT - Economic Development - Community Communication - Urban Renewal - Community Housing Program FIRE - Suppression - Inspection - Training - EMS CITY COUNCIL CITY CLERK - Records Management - Licensing - Court Administration PUBLIC WORKS - Engineering - Equipment Maintenance - Storm Drainage - Streets/Traffic Control - Utilities Water Water Reclamation PARKS, OPEN SPACE & GOLF - Parks - Cemeteries - Open Space - Golf Course 12 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO CITY COUNCIL Christine Cameron Mayor Jay Ruggeri, Mayor Pro-Tem Kerry Bensman Frank Phillips Alex Schatz Carolyn Cutler Staci Lupberger ADMINISTRATION Gary Klaphake City Administrator Betsy Stroomer Community Life Director Robert Wright Finance Director Doug Short Public Works Director Gerry Morrell Fire Chief Paul Schultz Police Chief Monte Stevenson Parks, Open Space, & Golf Director Curt Cheesman Recreation and Facilities Management Director Phillip Patterson Community Development Director Susan Koster City Clerk Peter Johnson City Engineer Roger Buchholz Municipal Court Judge David Williamson City Attorney 13 ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 FINANCIAL SECTION 2009 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Lafayette Lafayette, Colorado INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lafayette as of and for the year ended December 31, 2009, which collectively comprise the basic financial statements of the City of Lafayette, as listed in the table of contents. These financial statements are the responsibility of the City of Lafayette's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lafayette as of December 31,2009, and the respective changes in financial position and cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis and required supplementary information listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose offorming opinions on the financial statements that collectively comprise the City of Lafayette's basic financial statements. The other schedules and local highway finance report listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. June 22, 2010 ---PAGE BREAK--- Management’s Discussion and Analysis Our discussion and analysis of the City of Lafayette’s financial statements for the year ended December 31, 2009, provides a narrative overview of its financial activities. Please consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s financial statements. Financial Highlights: • The assets of the City of Lafayette exceeded its liabilities at the close of 2009 by $236 million (net assets). Of this amount, $46 million, or 19%, is unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. • General sales tax revenue decreased by 2.02% from 2008 as a result of the closing of an anchor store and other smaller businesses. However, retail strength was sustained in other areas resulting from the need for basic supplies. Use tax revenues, on the other hand, were 7.2% higher primarily as a result of the construction of an apartment complex. • The Exempla General Improvement District redeemed bonds in the face amount of $6,510,000 on July 1, 2009. Although GID debt is not a liability of the City, it is included in the combined debt structure as a component unit. Since the debt service is administered as part of a special assessment process, the redemption increased capital grants in the Statement of Activities by a like amount. • Net Assets increased 2% or $5 million from 2008 after excluding the $6.5 million special assessment received in 2009 from the Exempla GID. • At the close of 2009, the City’s unreserved General Fund balance was $9.1 million on a modified accrual basis, a 22% increase over 2008. Overview of the Financial Statements: This discussion and analysis is intended to serve as an introduction to the City of Lafayette’s basic financial statements. The City’s basic financial statements comprise three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Lafayette finances, in a manner similar to a private- sector business. The statement of net assets presents information on all of the City of Lafayette’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Lafayette is improving or deteriorating. The statement of activities presents information showing how the City’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned, but unused, vacation leave). 16 ---PAGE BREAK--- Both of the government-wide financial statements distinguish functions of the City of Lafayette that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Lafayette include general government, judicial, public safety, public works, and culture and recreation. The business-type activities of the City include the water utility, water reclamation fund, storm water fund, and a golf course operation. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Lafayette, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Proprietary funds. The City of Lafayette maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Lafayette uses enterprise funds to account for its water utility, water reclamation, storm water, and for its golf course operation. The second type of proprietary fund includes the Internal Service funds. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City of Lafayette’s various functions. The City uses internal service funds to account for its insurance and employee benefits. Because both of these services predominantly benefit governmental rather than business-type functions, the assets and liabilities of the internal service funds have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water, Water Reclamation, and Golf Course funds (all major funds), and the Storm Water fund (nonmajor fund). Conversely, since they are defined as proprietary funds, both internal service funds are combined into a single, aggregated memo presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. 17 ---PAGE BREAK--- Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Lafayette’s progress in funding its obligation to provide pension benefits to its volunteer firefighters and a budgetary comparison schedule for the General Fund, the Lafayette Urban Renewal Authority, and the Exempla General Improvement District. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. Government-wide Financial Analysis The Statement of Net Assets and Statement of Activities for 2009 are compared with the results of 2008 in order to measure the impact of the current economic slump and to review the City’s progress towards maintaining financial stability. Analysis of Net Assets As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the City of Lafayette, assets exceeded liabilities by $236 million at the close of 2009, an increase of 5% from 2008. The following table reflects amounts in thousands of dollars. Governmental Activities Business-type Activities Total 2009 2008 2009 2008 2009 2008 Current and Other Assets $ 39,147 $ 41,726 $ 32,776 $ 33,479 $ 71,923 $ 75,205 Capital Assets 130,356 125,297 97,035 95,789 227,391 221,086 Total Assets 169,503 167,023 129,811 129,268 299,314 296,291 Long-term Liabilities Outstanding 26,717 35,164 24,885 26,014 51,602 61,178 Other Liabilities 8,944 8,982 2,046 908 10,990 9,890 Total Liabilities 35,661 44,146 26,931 26,922 62,592 71,068 Net Assets: Invested in Capital Assets, net of related debt 107,348 91,484 74,987 74,995 182,335 166,479 Restricted 8,203 14,990 - 4,610 8,203 19,600 Unrestricted 18,291 16,403 27,893 22,741 46,184 39,144 Total Net Assets $ 133,842 $ 122,877 $ 102,880 $ 102,346 $236,722 $ 225,223 By far the largest portion of the City’s net assets (77%) reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 18 ---PAGE BREAK--- Capital assets in governmental activities increased during 2009 primarily as a result of developer dedicated land and rights-of-way, which amounted to $3.6 million and acquisition of open space land ($2.2 million). The latter acquisition also reduced the current assets and restricted net assets. Long-term liabilities decreased $6.5 million from the Exempla GID bond redemption, and $1.9 million from planned debt service payments. In May, 2003, water revenue bonds in the face amount of $15.6 million were issued. The bonds were issued for the construction of a raw water transmission system, the purchase of real property, and construction of a raw water storage facility, the payment of costs associated with fees for joining and purchasing shares in water supply districts, or the development of a reclaimed water transmission system for irrigation purposes. At December 31, 2009, $2.6 million remained to be spent on these projects. During 2009, the City invested $1 million for a cover over the water pretreatment basins. Other liabilities in business activities increased primarily due to the prepayment of water taps. Changes in Net Assets The City’s total revenues, including the special item, of $46.9 million exceeded expenses of $35.4 million, including the special item, resulting in an increase in net assets of $11.5 million. The key elements of this increase are presented in the following table, reflected in thousands of dollars: Governmental Activities Business-type Activities Total Government Program revenues: 2009 2008 2009 2008 2009 2008 Charges for services $4,110 $5,144 $9,285 $10,477 $13,395 $15,621 Operating grants 1,311 1,208 - - 1,311 1,208 Capital grants & contributions 11,422 3,289 2,360 1,086 13,782 4,375 General revenue: Property taxes 6,367 4,476 - - 6,367 4,476 Sales and use taxes 10,250 10,292 - - 10,250 10,292 Interest 355 1,456 408 2,045 763 3,501 Gain on sale of property 1 8 - - 1 8 Franchise Taxes 913 1,000 - - 913 1,000 Other general revenues 31 31 - - 31 31 Total revenues 34,760 26,904 12,053 13,608 46,813 40,512 Program expenses: General government 5,576 5,441 - - 5,576 5,441 Judicial 284 290 - - 284 290 Public safety 7,216 7,382 - - 7,216 7,382 Public works 4,607 4,916 - - 4,607 4,916 Culture and recreation 5,873 5,698 - - 5,873 5,698 Interest on long-term debt 1,261 1,515 - - 1,261 1,515 Water - - 5,357 5,486 5,357 5,486 Water reclamation - - 2,709 2,889 2,709 2,889 Golf course - - 1,687 1,837 1,687 1,837 Storm Water - - 218 25 218 25 Total expenses 24,817 25,242 9,971 10,237 34,788 35,479 Excess before transfers & special items 9,943 1,662 2,082 3,371 12,025 5,033 Special Items: Adjustment of asset held for resale (632) - - - (632) - Gain on fire conversion 105 110 - - 105 110 Return of water rights to developer - - - (469) - (469) Transfers 1,548 1,416 (1,548) (1,416) - - Increase in net assets $10,964 $3,188 $534 $1,486 $11,498 $4,674 19 ---PAGE BREAK--- Governmental activities During 2009, net assets in governmental activities increased by $11 million. Charges for services decreased $1 million from 2008 largely due to the collection of defined building permit fees on the Prana apartment complex. Capital grants increased $8.1 million from the Exempla GID bond redemption ($6.5 million) and developer dedications ($1.6 million). Property taxes increased as a result of higher property assessments and the ambulance and fire mill levy. Property assessments lag the direction of the economy and are forecasted to decrease by 2011. Interest revenues decreased as expected from falling interest rates. Expenses decreased during the year by 1.7% ($424 thousand). $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 General Government Judicial Public Safety Public Works Culture and Recreation Interest and Fiscal Charges 2009 Expenses and Program Revenues - Governmental Activities Expenses Program Revenues As defined in the footnotes, program revenues are directly associated with a specific activity. However, program revenues account for 53% of total revenues related to governmental activities in 2009 as influenced by the Exempla GID bond redemption. General revenues, consisting mostly of taxes, are not directly associated with any governmental function, and are not included in the above chart. Total revenues from governmental activities are summarized below. 20 ---PAGE BREAK--- Business-type activities Net assets in business-type activities increased by $0.5 million during 2009. Charges for services decreased $1.2 million from 2008 from lower water sales (weather related) and lower golf course revenues (weather and economy related). Developer dedications increased $1.3 million over 2008 as a result of the Prana apartment complex. Interest revenues decreased reflecting the direction of the investment market. Expenses decreased in all areas related to the lower demand for services. The following chart demonstrates the comparison of expenses and program revenues for business-type activities. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Water Water Reclamation Golf Course Storm Water 2009 Expenses and Program Revenues - Business-type Activities Expenses Program Revenues Financial Analysis of the City’s Funds Governmental Funds – Information on the major governmental funds of the City follows the government wide financial statements. These funds are accounted for using the modified accrual basis of accounting. At the end of 2009, the city reported a combined fund balance of $24.7 million, a decrease of $1.7 million. The fund balances of the governmental funds excluding the General Fund decreased approximately $3 million as a result of open space purchased, street and drainage projects, and the addition to the Recreation Center. The General Fund is the primary operating fund of the city. At the end of 2009, the unreserved fund balance of the General Fund was $9.1 million, an increase of $1.6 million created by curtailing operative expenditures. Expenditures were reduced in 2009 in anticipation of decreased sales and use tax revenues. $10.6 million was unreserved in all governmental funds, an increase of 25% over 2008, and remained available for spending at the City’s discretion. The remainder of the fund balance is not available for new spending and is reserved as follows: Restricted for Capital Projects (Bond Proceeds) $ 3,708,650 Reserved for Inventory, Prepaid Expenses, and Assets Held for Resale 1,426,377 Reserved for Administrator Severance Package 548,102 Reserved for GID Expenditures 3,451,994 Reserved for Ace Hardware Lease Guarantee 1,282,500 Reserved for other Capital Projects 3,468,467 Reserved for Various Community Projects 171,245 Total Restricted and Reserved $ 14,057,335 21 ---PAGE BREAK--- Proprietary Funds – Information on the proprietary funds provide the same type of information found in the government-wide statements, but with more detail. At the end of 2009, the City reported unrestricted net assets of $27.9 million, an increase of $0.5 million. Other factors concerning the finances of these funds have been discussed above in the business-type activities section. General Fund Budgetary Highlights The City’s final budget differs from the original budget in that it contains carry forward appropriations for various programs and projects, and supplemental appropriations approved during the year. The General Fund accounts for all of the general services provided by the City of Lafayette. At the end of 2009, the fund balance of the General Fund had increased by $1.5 million (11.8%) to $13.8 million as mentioned above. The unreserved fund balance increased by approximately the same amount. The following chart presents a summary of the major revenue sources of the City’s General Fund. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2009 Budget & Actual Revenue by Source - General Fund Budget Actual As discussed previously, actual sales tax revenues were lower than in 2008, but the growth in use taxes favorably influenced the end result. The 2009 budget was prepared by projecting sales in anticipation of continued growth in established retailers. Therefore, total expenditures were reduced 3.5% in order to provide a reserve to absorb the revised revenue decreases. At the end of 2009, revenues actually increased approximately 1.7 General government expenditures include all administrative functions of the City (i.e. council, administrator, clerk, judicial, finance, planning, and municipal facilities), as well as public safety, public works, and culture and recreation. The following chart presents a summary of functional categories for expenditures. 22 ---PAGE BREAK--- - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 General Government Judicial Public Safety Public Works Culture and Recreation Capital Outlay 2009 Budget & Actual Expenditures by Source - General Fund Budget Actual Operating expenditures were controlled and under budget in all functions except Public Works. The department absorbed increased utility costs related to street light maintenance. Capital Assets and Debt Administration Capital Assets: The City of Lafayette’s investment in capital assets for its governmental and business-type activities as of December 31, 2009 amounts to $227 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, water and waste water systems, improvements, machinery and equipment, park facilities, roads, storm drainage, and other infrastructure. Major capital asset activity during 2009 (with prior year Work-in-Progress (WIP)) include (in thousands): Developer Dedications- Land & Rights-of-Way $1,679 Infrastructure 2,612 Festival Plaza 521 Recreation Center Addition 485 Pre-treatment Basin Covers 877 Water Rights 896 Acquisition of Open Space Land 2,130 23 ---PAGE BREAK--- Capital Assets at Year-End (Net of Depreciation, in thousands) Governmental Business-type Activities Activities Total 2009 2008 2009 2008 2009 2008 Land $ 62,317 $ 58,421 $ 7,663 $ 7,515 $ 69,980 $ 65,936 Water Rights - - 25,848 24,952 25,848 25,952 Buildings and Systems 16,247 15,473 58,012 58,799 74,259 74,272 Improvements other than Buildings 336 367 93 108 429 475 Infrastructure 46,513 46,167 - - 46,513 46,167 Equipment 3,601 3,903 3,436 3,725 7,037 7,628 Construction in Process 1,342 966 1,983 691 3,325 1,657 Total $130,356 $125,297 $97,035 $95,790 $227,391 $221,087 Additional information on the City’s capital assets can be found in Note 5 to the Financial Statements. Bonded Debt: At December 31, 2009, the City had total bonded debt outstanding of $41.9 million. Of this amount, $8.3 million consisted of debt backed by the full faith and credit of the City, and the balance of $33.6 million represents bonds secured solely by specified revenue sources (revenue and demand bonds). Additional information on the City’s debt structure is located in Note 6 to the Financial Statements. Outstanding Bond Debt at Year-End General Obligation, Revenue and Demand Bonds (in millions) Governmental Business-type Activities Activities Total 2009 2008 2009 2008 2009 2008 General obligation bonds $ 6.3 $ 7.2 $ 2.0 $ 2.7 $ 8.3 $ 9.9 Revenue bonds 13.6 14.4 16.0 16.0 29.6 30.4 Demand bonds 4.0 10.4 - - 4.0 10.4 Total bonded debt $ 23.9 $ 32.0 $ 18.0 $ 18.7 $ 41.9 $ 50.7 Economic Factors and Next Year’s Budgets and Rates The City of Lafayette is in a strong financial position. At December 31, 2009, fund balance in the General Fund was at $13.8 million. Council’s policy in this area is to maintain the General Fund balance at 25% of budgeted expenditures. Revenues for 2010 were estimated based on the following assumptions: • Water usage will be similar to 2009. • Golf Course revenues will be flat. • No increase in recreation fees to remain competitive with neighboring facilities. • Revenue from sales and use tax returns will decrease • 13 residential building permits will be issued. 24 ---PAGE BREAK--- • Property tax collections will approximate 100% of the levy imposed. Debt service mill levies will be adjusted to generate the necessary amounts for principal and interest payments. • Property tax revenue will increase from the new mill levy for Ambulance and Fire services. • Inflation will not exceed • Interest earnings are calculated at 2% interest, as a result of previously purchased investments. Based on early 2010 results, General Fund revenues are 1% higher than at the same time in 2009, but sales tax revenues are down 6% which is indicative of the uncertainty of the local economy. General Fund expenditures are comparable to the same period in 2009 as a result of the restructuring in November, 2008, and the related 1% across-the-board cut. Water Fund metered water sales are similar to 2009 for the same period and water tap fees to date in 2010 have dropped considerably from 2009. Water Reclamation Fund revenues and Golf Course revenues are approximately the same. Contacting the City’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the city’s accountability for the funds and assets it receives. If you have questions about this report, or need additional financial information, contact the City of Lafayette Finance Department at 1290 South Public Road, Lafayette, CO 80026. 25 ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FINANCIAL SECTION 2009 ---PAGE BREAK--- Governmental Business-type Activites Activities Total ASSETS Cash and Investments 20,114,403 $ 28,601,062 $ 48,715,465 $ Accrued Interest Receivable 287,899 186,350 474,249 Accounts Receivable (Net of Allowance for Uncollectibles) 1,827,994 469,827 2,297,821 Property Taxes Receivable 6,188,364 - 6,188,364 Prepaid Items 160,196 17,405 177,601 Inventory 26,377 69,137 95,514 Notes Receivable 2,373,750 - 2,373,750 Restricted Cash and Investments 5,343,140 2,877,691 8,220,831 Special Assessments Receivable 1,023,118 214,657 1,237,775 Assets Held for Resale 1,400,000 - 1,400,000 Capital Assets (Net of Accumulated Depreciation) Land 62,317,301 7,662,800 69,980,101 Water Rights - 25,848,033 25,848,033 Buildings and Systems 16,247,338 58,011,655 74,258,993 Improvements Other than Buildings 336,006 92,886 428,892 Infrastructure 46,513,182 - 46,513,182 Equipment 3,601,316 3,436,152 7,037,468 Construction in Progress 1,341,492 1,983,624 3,325,116 Bond Issue Costs, Net of Amortization 400,938 339,420 740,358 Total Assets 169,502,814 129,810,699 299,313,513 LIABILITIES Accounts Payable 1,117,848 192,210 1,310,058 Accounts Payable from Restricted Assets 778 299,792 300,570 Accrued Liabilities 277,175 200,874 478,049 Deposits Payable 1,218,301 38,312 1,256,613 Water and Sewer Tap Fees Received in Advance - 1,314,520 1,314,520 Deferred Revenues 6,329,718 - 6,329,718 Noncurrent Liabilities Due Within One Year 2,370,587 1,354,515 3,725,102 Due in More than One Year 24,346,628 23,530,332 47,876,960 Total Liabilities 35,661,035 26,930,555 62,591,590 NET ASSETS Invested in Capital Assets, Net of Related Debt 108,131,823 74,987,290 183,119,113 Restricted for: Capital Projects 3,468,467 - 3,468,467 Ace Hardware Lease Guarantee 1,282,500 - 1,282,500 GID Obligations 3,451,994 - 3,451,994 Unrestricted 17,506,995 27,892,854 45,399,849 Total Net Assets 133,841,779 $ 102,880,144 $ 236,721,923 $ The notes to the financial statements are an integral part of this statement. CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS December 31, 2009 27 ---PAGE BREAK--- Operating Capital Grants Charges for Grants and and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General Government 5,576,356 $ 148,017 $ 29,821 $ 280,039 $ (5,118,479) $ - $ (5,118,479) $ Judicial 284,210 1,034,448 - - 750,238 - 750,238 Public Safety 7,215,606 523,819 320,449 6,794 (6,364,544) - (6,364,544) Public Works 4,607,496 863,965 842,381 10,292,791 7,391,641 - 7,391,641 Culture and Recreation 5,872,607 1,539,268 118,437 842,456 (3,372,446) - (3,372,446) Interest and Fiscal Charges 1,261,069 - - - (1,261,069) - (1,261,069) Total Governmental Activities 24,817,344 4,109,517 1,311,088 11,422,080 (7,974,659) - (7,974,659) Business-type Activities Water 5,356,621 4,828,996 - 1,981,718 - 1,454,093 1,454,093 Water Reclamation 2,709,406 1,653,409 - 378,729 - (677,268) (677,268) Golf Course 1,686,988 2,137,553 - - - 450,565 450,565 Storm Water 218,269 665,258 - - - 446,989 446,989 Total Business-type Activities 9,971,284 9,285,216 - 2,360,447 - 1,674,379 1,674,379 Total All Activities 34,788,628 $ 13,394,733 $ 1,311,088 $ 13,782,527 $ (7,974,659) 1,674,379 (6,300,280) General Revenues: Property Taxes 6,367,167 - 6,367,167 General Sales & Use Taxes 10,250,821 - 10,250,821 Unrestricted Intergovernmental Revenues 30,926 - 30,926 Franchise Taxes 913,075 - 913,075 Interest 354,536 408,204 762,740 Gain on Sale of Property 644 - 644 Transfers 1,548,521 (1,548,521) - Special Items: Adjustment of Asset Held for Resale (631,968) - (631,968) Gain on Fire Conversion 105,458 - 105,458 Total General Revenues and Transfers 18,939,180 (1,140,317) 17,798,863 Change in Net Assets 10,964,521 534,062 11,498,583 Net Assets - Beginning January 1 122,877,258 102,346,082 225,223,340 Net Assets - Ending December 31 133,841,779 $ 102,880,144 $ 236,721,923 $ The notes to the financial statements are an integral part of this statement. Program Revenues Net (Expense) Revenue And Changes in Net Assets CITY OF LAFAYETTE, COLORADO STATEMENT OF ACTIVITIES For the fiscal year ended December 31, 2009 28 ---PAGE BREAK--- Lafayette Exempla Urban General Other Renewal Improvement Governmental General Authority District Funds Total ASSETS Cash and Investments 12,620,606 $ 587,809 $ 1,963,867 $ 3,626,228 $ 18,798,510 $ Accrued Interest Receivable 77,786 3,291 11,680 44,877 137,634 Accounts Receivable Net of Allowance for Uncollectables 1,611,034 3,000 258 7,738 1,622,030 Property Taxes Receivable 2,997,933 130,035 73,278 2,987,118 6,188,364 Inventory 26,377 - - - 26,377 Notes Receivable - 2,373,750 - - 2,373,750 Restricted Cash and Investments 564,884 - 1,090,500 3,687,756 5,343,140 Special Assessments Receivable 583,718 - 329,550 109,850 1,023,118 Assets Held for Resale 1,400,000 - - - 1,400,000 Total Assets 19,882,338 $ 3,097,885 $ 3,469,133 $ 10,463,567 $ 36,912,923 $ LIABILITIES Accounts Payable 1,056,171 $ 1,010 $ 297 $ 28,897 $ 1,086,375 $ Accounts Payable from Restricted Assets - - - 778 778 Accrued Liabilities 151,667 - - 3,114 154,781 Deposits Payable 1,023,590 2,000 - 142,294 1,167,884 Deferred Revenues 3,846,818 2,480,035 402,828 3,096,968 9,826,649 Total Liabilities 6,078,246 2,483,045 403,125 3,272,051 12,236,467 FUND BALANCE Reserved for Inventory and Assets Held for Resale 1,426,377 - - - 1,426,377 Reserved for Administrator Severance Package 548,102 - - - 548,102 Reserved for GID Expenditures - - 3,066,008 385,986 3,451,994 Reserved for Ace Hardware Lease Guarantee 1,282,500 - - - 1,282,500 Reserved for Capital Projects 1,272,092 - - 5,905,025 7,177,117 Reserved for Various Community Projects 171,245 - - - 171,245 Unreserved reported in: General Fund 9,103,776 - - - 9,103,776 Special Revenue Funds - 614,840 - 820,196 1,435,036 Debt Service Fund - - - 80,309 80,309 Total Fund Balance 13,804,092 614,840 3,066,008 7,191,516 24,676,456 Total Liabilities and Fund Balance 19,882,338 $ 3,097,885 $ 3,469,133 $ 10,463,567 $ 36,912,923 $ The notes to the financial statements are an integral part of this statement. CITY OF LAFAYETTE, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2009 29 ---PAGE BREAK--- Total Governmental Fund Balances 24,676,456 $ 347,997 2,350,000 130,356,635 400,938 968,070 1,118,703 (26,377,020) Net Assets of the Governmental Activities 133,841,779 $ The notes to the financial statements are an integral part of this statement. Amounts reported for governmental activities in the Statement of Net Assets are different because: Some receivables recorded on the Statement of Net Assets include deferred building permit fees and interest accrued on special assessments. These items are not available, and are not recognized in governmental funds. Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Some receivables are recorded as deferred revenue in governmental funds since they are not available for current period expenses. Internal service funds are used by management to charge the costs of insurance and compensated absences to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. Notes Receivable includes a note for reimbursement from a redeveloper reported as deferred revenue in the funds. This transaction is not recognized as deferred revenue in the government-wide Statement of Net Assets. December 31, 2009 CITY OF LAFAYETTE, COLORADO RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT WIDE STATEMENT OF NET ASSETS Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. This amount is net of accumulated depreciation of $42,445,083. Other long-term assets (bond issue costs) are reported as current period expenditures during the period incurred in the funds. The costs are deferred, net of amortization, in the government-wide Statement of Net Assets. 30 ---PAGE BREAK--- Lafayette Exempla Urban General Other Renewal Improvement Governmental General Authority District Funds Total Revenues Taxes 10,783,396 $ 154,797 $ 74,200 $ 5,610,894 $ 16,623,287 $ Licenses and Permits 299,752 - - - 299,752 Intergovernmental 1,239,696 174,339 - 234,176 1,648,211 Fines and Forfeitures 1,034,448 - - - 1,034,448 Franchise Taxes 913,075 - - - 913,075 Special Assessments Principal 107,150 - 6,795,345 - 6,902,495 Special Assessments Interest 5,198 - (23,539) - (18,341) Interest 122,298 9,427 33,234 151,420 316,379 Sidewalk Maintenance/Repair 92,980 - - - 92,980 Contributions and Misc Grants 145,933 - - 19,250 165,183 Charges for Services 3,973,302 - - - 3,973,302 Administrative Fees 74,859 - 15,000 - 89,859 Miscellaneous 644 195 33,859 20,951 55,649 Total Revenues 18,792,731 338,758 6,928,099 6,036,691 32,096,279 Expenditures Current General Government 4,408,885 123,652 795,744 90,831 5,419,112 Judicial 284,250 - - - 284,250 Public Safety 6,403,797 - - 166,524 6,570,321 Public Works 2,026,172 - - 65,631 2,091,803 Culture and Recreation 4,823,792 - - 25,732 4,849,524 Capital Outlay 1,027,098 534,740 - 4,324,737 5,886,575 Debt Service Capital Lease and Loan Payments - - - 344,462 344,462 Principal - - 6,510,000 1,615,000 8,125,000 Interest and Fiscal Charges - - 137,579 1,080,590 1,218,169 Total Expenditures 18,973,994 658,392 7,443,323 7,713,507 34,789,216 Excess (Deficiency) of Revenues Over Expenditures (181,263) (319,634) (515,224) (1,676,816) (2,692,937) Other Financing Sources (Uses) Transfers In 2,628,430 - - 461,826 3,090,256 Transfers (Out) (461,826) (2,381) - (1,077,528) (1,541,735) Total Other Financing Sources (Uses) 2,166,604 (2,381) - (615,702) 1,548,521 Special Items Adjustment of Asset Held for Resale (631,968) - - - (631,968) Gain on Fire Conversion 105,458 - - - 105,458 Total Special Items (526,510) - - - (526,510) CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 2009 GOVERNMENTAL FUNDS 31 ---PAGE BREAK--- Lafayette Exempla Urban General Other Renewal Improvement Governmental General Authority District Funds Total Net Change in Fund Balance 1,458,831 (322,015) (515,224) (2,292,518) (1,670,926) Fund Balance, January 1 12,345,261 936,855 3,581,232 9,484,034 26,347,382 Fund Balance, December 31 13,804,092 $ 614,840 $ 3,066,008 $ 7,191,516 $ 24,676,456 $ The notes to the financial statements are an integral part of this statement. STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES CITY OF LAFAYETTE, COLORADO GOVERNMENTAL FUNDS For the fiscal year ended December 31, 2009 32 ---PAGE BREAK--- Amounts reported for governmental activities in the Statement of Activities are different because: (1,670,926) $ 5,059,811 8,469,463 (208,649) (658,362) (82,526) 55,710 10,964,521 $ The notes to the financial statements are an integral part of this statement. TO THE STATEMENT OF ACTIVITIES Change in net assets of governmental activities Net change in fund balances - total government funds Governmental Funds report deferred revenues as income when received. However, in the Statement of Activities, the income was reported when earned. Some income reported in the Statement of Activities, although measurable, is not available, and is not reported as revenue in governmental funds. Internal service funds are used by management to charge the costs of insurance and employee benefits to individual funds. The net revenue (expenditures) of the internal service funds is reported with governmental activities. Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Assets. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays of $5,886,575, and developer dedications of $3,521,673 (net of vacated land and value adjustment of $108,465), exceeded depreciation ($4,305,294), retirements net of accumulated depreciation ($37,897), and write off of work in process ($5,246) in the current period. CITY OF LAFAYETTE, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For the fiscal year ended December 31, 2009 33 ---PAGE BREAK--- Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Assets Current Assets Cash and Investments 23,121,900 $ 3,607,924 $ 219,991 $ 1,651,247 $ 28,601,062 $ 1,315,893 $ Accrued Interest Receivable 153,274 20,002 3,129 9,945 186,350 7,487 Accounts Receivable 252,804 161,674 - 55,349 469,827 745 Prepaid Items - 17,405 - - 17,405 160,196 Inventory - - 69,137 - 69,137 - Restricted Cash and Investments 2,877,691 - - - 2,877,691 - Total Current Assets 26,405,669 3,807,005 292,257 1,716,541 32,221,472 1,484,321 Noncurrent Assets Assessments Receivable - 214,657 - - 214,657 - Bond Issue Costs, Net of Amortization 300,363 39,057 - - 339,420 - Capital Assets Water and Sewer system 49,753,761 30,861,932 - - 80,615,693 - Buildings and Improvements 102,010 205,208 1,320,916 - 1,628,134 - Improvements Other than Buildings - - 410,720 - 410,720 - Equipment 5,928,691 2,608,986 1,236,024 134,906 9,908,607 - Accumulated Depreciation (18,749,475) (10,484,568) (1,786,394) (2,024) (31,022,461) - Total Plant and Equipment, Net of Accumulated Depreciation 37,034,987 23,191,558 1,181,266 132,882 61,540,693 - Land 6,946,244 716,556 - - 7,662,800 - Water Rights 25,848,033 - - - 25,848,033 - Construction in Progress 1,601,158 382,466 - - 1,983,624 - Total Capital Assets, Net of Accumulated Depreciation 71,430,422 24,290,580 1,181,266 132,882 97,035,150 - Total Noncurrent Assets 71,730,785 24,544,294 1,181,266 132,882 97,589,227 - Total Assets 98,136,454 $ 28,351,299 $ 1,473,523 $ 1,849,423 $ 129,810,699 $ 1,484,321 $ The notes to the financial statements are an integral part of this statement. CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2009 34 ---PAGE BREAK--- Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Current Liabilities Accounts Payable 127,780 $ 43,836 $ 12,783 $ 7,811 $ 192,210 $ 8,970 $ Accounts Payable from Restricted Assets 299,792 - - - 299,792 - Deposits Payable - - 38,312 - 38,312 - Claims Payable - - - - - 22,503 Accrued Liabilities Accrued Interest Payable 70,994 88,629 - - 159,623 - Accrued Payroll 21,530 10,748 7,463 1,510 41,251 - Water and Sewer Tap Fees Received in Advance 830,006 484,514 - - 1,314,520 - Current Portion of Long-Term Debt 765,772 466,251 115,713 6,779 1,354,515 484,778 Total Current Liabilities 2,115,874 1,093,978 174,271 16,100 3,400,223 516,251 Noncurrent Liabilities Long-Term Obligations 17,402,741 5,871,230 253,886 2,475 23,530,332 - Total Noncurrent Liabilities 17,402,741 5,871,230 253,886 2,475 23,530,332 - Total Liabilities 19,518,615 $ 6,965,208 $ 428,157 $ 18,575 $ 26,930,555 $ 516,251 $ Net Assets Invested in Capital Assets, Net of Related Debt 55,955,928 18,025,765 872,715 132,882 74,987,290 - Unrestricted 22,661,911 3,360,326 172,651 1,697,966 27,892,854 968,070 Total Net Assets 78,617,839 $ 21,386,091 $ 1,045,366 $ 1,830,848 $ 102,880,144 $ 968,070 $ The notes to the financial statements are an integral part of this statement. CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2009 35 ---PAGE BREAK--- Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Operating Revenues Charges for Services Metered Water Sales 4,727,087 $ - $ - $ - $ 4,727,087 $ - $ Waste Water Collection Fees - 1,647,423 - - 1,647,423 - Storm Water Collection Fees - - - 662,255 662,255 - Golf Sales and Services - - 2,113,607 - 2,113,607 - Miscellaneous Services - - - - - 2,406,166 Other 101,909 5,986 23,946 3,003 134,844 - Total Operating Revenues 4,828,996 1,653,409 2,137,553 665,258 9,285,216 2,406,166 Operating Expenses Administration 356,869 181,978 144,226 53,321 736,394 - Source of Water Supply 357,154 - - - 357,154 - Water Treatment 1,404,257 - - - 1,404,257 - Water Transmission and Distribution 665,851 - - - 665,851 - Waste Water Treatment - 918,574 - - 918,574 - Waste Water Collection - 512,084 - - 512,084 - Golf Maintenance Operations - - 643,970 - 643,970 - Golf Club House Operations - - 491,893 - 491,893 - Golf Food Service Operations - - 211,372 - 211,372 - Storm Water Collection - - - 162,924 162,924 - Premiums Paid - - - - - 2,286,782 Miscellaneous - - - - - 79,180 Depreciation 1,646,108 869,617 172,503 2,024 2,690,252 - Amortization 29,013 3,255 - - 32,268 - Total Operating Expenses 4,459,252 2,485,508 1,663,964 218,269 8,826,993 2,365,962 Operating Income (Loss) 369,744 (832,099) 473,589 446,989 458,223 40,204 Non-operating Revenues (Expenses) Interest Revenue 323,094 62,616 2,514 19,980 408,204 15,506 Interest Expense (890,948) (221,627) (21,131) - (1,133,706) - Bond Fees (250) - - - (250) - Net Loss on Disposal of Capital Assets (6,171) (2,271) (1,893) - (10,335) - Total Non-operating Revenues (Expenses) (574,275) (161,282) (20,510) 19,980 (736,087) 15,506 Net Income (Loss) Before Contributions, Transfers, and Special Items (204,531) (993,381) 453,079 466,969 (277,864) 55,710 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2009 36 ---PAGE BREAK--- Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Capital Contributions Tap Fees 283,190 $ 100,306 $ - $ - $ 383,496 $ - $ Payments in Lieu of Water 401,987 - - - 401,987 - Developer Dedications 1,296,541 278,423 - - 1,574,964 Transfers Transfers Out (704,009) (207,318) (572,195) (64,999) (1,548,521) - Total Contributions, Transfers, and Special Items 1,277,709 171,411 (572,195) (64,999) 811,926 - Changes in Net Assets 1,073,178 (821,970) (119,116) 401,970 534,062 55,710 Total Net Assets, January 1 77,544,661 22,208,061 1,164,482 1,428,878 102,346,082 912,360 Total Net Assets, December 31 78,617,839 $ 21,386,091 $ 1,045,366 $ 1,830,848 $ 102,880,144 $ 968,070 $ The notes to the financial statements are an integral part of this statement. PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2009 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS 37 ---PAGE BREAK--- Non-Major Governmental Water Proprietary Activities - Reclamation Golf Storm Internal Water Utility Course Water Total Service Funds Cash Flows From Operating Activities Receipts From Customers and Users 4,736,156 $ 1,611,993 $ 2,149,330 $ 633,416 $ 9,130,895 $ 118,241 $ Receipts from Interfund Services Provided - - - - - 2,303,655 Payments to Suppliers (1,182,820) (643,974) (598,930) (62,975) (2,488,699) (2,306,846) Payments to Employees (1,227,255) (787,205) (795,317) (107,102) (2,916,879) (71,205) Payment for Interfund Services Used (348,658) (206,886) (108,141) (27,593) (691,278) - Net Cash Provided (Used) by Operating Activities 1,977,423 (26,072) 646,942 435,746 3,034,039 43,845 Cash Flows from Noncapital Financing Activities Transfers to Other Funds (704,009) (207,318) (572,195) (64,999) (1,548,521) - Net Cash Used by Noncapital Transfers (704,009) (207,318) (572,195) (64,999) (1,548,521) - Cash Flows from Capital and Related Financing Activities Payment in Lieu of Water 401,987 - - - 401,987 - Tap Fees 833,744 431,431 - - 1,265,175 - Collections of Special Assessments - 944 - - 944 - Acquisition & Construction of Capital Assets (1,271,150) (658,266) (7,079) (134,906) (2,071,401) - Bond Fees (250) - - - (250) - Principal Paid on Capital Debt (657,615) (403,570) (96,885) - (1,158,070) - Interest Paid on Capital Debt (877,869) (51,570) (21,131) - (950,570) - Net Cash (Used) by Capital and Related Financing Activities (1,571,153) (681,031) (125,095) (134,906) (2,512,185) - Cash Flows from Investing Activities Interest Received 386,368 76,750 4,158 21,011 488,287 17,704 Net Cash Provided by Investing Activities 386,368 76,750 4,158 21,011 488,287 17,704 Net Increase (Decrease) in Cash and Investments 88,629 (837,671) (46,190) 256,852 (538,380) 61,549 Cash and Investments, January 1 25,910,962 4,445,595 266,181 1,394,395 32,017,133 1,254,344 Cash and Investments, December 31, Including $2,877,691 Reported in Restricted Accounts for the Water Fund 25,999,591 $ 3,607,924 $ 219,991 $ 1,651,247 $ 31,478,753 $ 1,315,893 $ CITY OF LAFAYETTE, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the fiscal year Ended December 31, 2009 38 ---PAGE BREAK--- Non-Major Governmental Water Proprietary Activities - Reclamation Golf Storm Internal Water Utility Course Water Total Service Funds CITY OF LAFAYETTE, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the fiscal year Ended December 31, 2009 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 369,744 $ (832,099) $ 473,589 $ 446,989 $ 458,223 $ 40,204 $ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation Expense 1,646,108 869,617 172,503 2,024 2,690,252 - Amortization Expense 29,013 3,255 - - 32,268 - (Increase) Decrease in Accounts Receivable (92,840) (41,416) 7,610 (31,842) (158,488) 14,990 (Increase) Decrease in Prepaid Items - - - - - (1,892) Decrease in Inventories - - 11,726 - 11,726 - Increase (Decrease) in Accounts Payable 58,184 (9,750) (4,619) 7,811 51,626 (11,696) Increase (Decrease) in Accrued Payroll (40,568) (21,103) (15,495) 1,510 (75,656) - Increase in Compensated Absences 7,782 5,424 1,628 9,254 24,088 2,209 Total Adjustments 1,607,679 806,027 173,353 (11,243) 2,575,816 3,611 Net Cash Provided by Operating Activities 1,977,423 $ (26,072) $ 646,942 $ 435,746 $ 3,034,039 $ 43,815 $ Non-Cash Capital Financing Activities: Capital Assets Acquired Through Developer Dedications 1,296,541 278,423 - - 1,574,964 - 1,296,541 $ 278,423 $ - $ - $ 1,574,964 $ - $ The notes to the financial statements are an integral part of this statement. 39 ---PAGE BREAK--- NOTES TO FINANCIAL STATEMENTS FINANCIAL SECTION 2009 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT INDEX FOR NOTES TO FINANCIAL STATEMENTS For the Fiscal Year Ended December 31, 2009 NOTE 1: Summary of significant accounting policies A. Reporting entity 43 B. Government-wide and fund financial statements 44 C. Measurement focus, basis of accounting, and financial statement presentation 44 D. Cash equivalents 47 E. Investments 47 F. Interfund receivables/payables 47 G. Property taxes receivable 47 H. Inventories 48 I. Long-term obligations 48 J. Capital 49 K. Accrual for compensated absences 49 L. Fund balance/Net assets 50 M. Special assessments. 50 NOTE 2: Reconciliation of government-wide and fund financial statements A. Explanation of certain differences between the government fund balance sheet and the government-wide statement of net assets 50 B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities 51 NOTE 3: Cash deposits and investments A. Deposits 53 B. Investments 53 NOTE 4: Restricted cash and investments 55 NOTE 5: Capital assets 57 NOTE 6: Long-term debt A. Bonded Debt 58 B. Notes Payable 62 C. Pledged Revenues 63 D. Capital Leases 65 E. Changes in Long-term Liabilities 67 NOTE 7: Amendment one 67 NOTE 8: Interfund Transfers 68 41 ---PAGE BREAK--- NOTE 9: Employee retirement plans A. General Employees 68 B. Commissioned Police Officers, Firefighters, and Ambulance Personnel 69 C. Volunteer Firefighters 71 NOTE 10: Risk management 72 NOTE 11: Assets Held For Resale 73 NOTE 12: Special Items 74 NOTE 13: Conduit Debt 74 NOTE 14: Commitments and Contingencies 74 NOTE 15: Pending Litigation 74 42 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City was founded in 1888 and incorporated in 1889. On April 1, 1958 citizens voted to become a Home Rule City, as authorized by Article 20 of the Colorado State Constitution. The City operates under a Strong Council /Administrator form of government and provides the following services as authorized by its charter: administration, finance, planning, library, building maintenance, municipal court, city attorney, police, career and volunteer fire, ambulance, highway and street maintenance, parks and recreation, debt service, water, sanitary sewer, storm water and golf course services. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles applicable to governments. A summary of the City’s significant accounting policies applied in the preparation of these financial statements follows: A. Reporting Entity The City applies the criteria set forth in GASB Statement No. 14, The Financial Reporting Entity, to determine which governmental organizations should be included in the reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The City is financially accountable for legally separate organizations if City officials appoint a voting majority of the organization’s governing board and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on the City. The City may also be financially accountable for organizations that are fiscally dependent on it. Based upon the application of these criteria, the City has identified six blended component units presented as special revenue funds. They are the Lafayette Urban Renewal Authority, Lafayette City Center GID, Exempla GID, Lafayette Corporate Campus GID, Lafayette Tech Center GID, and St. James GID (inactive). The Lafayette City Council acts as the governing board for each of the component units. Separate financial statements are not issued for these component units. 43 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. Government-wide and Fund Financial Statements The government-wide financial statements the statement of net assets and the statement of activities) report information on all activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. 44 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Lafayette Urban Renewal Authority accounts for sales and property tax revenues and related expenses specifically identified for urban renewal. The Exempla General Improvement District accounts for special assessments levied on the property owners within the District. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Fund, Water Reclamation Fund, Storm Water Fund, and Golf Course Fund are charges to customers for sales and services. The Water Fund and Water Reclamation Fund also recognize as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City reports the following major proprietary funds: The Water Fund The accounts for the treatment and distribution of the City’s water supply. Water Reclamation Fund The accounts for the operation of the City’s sewer system. Golf Course Fund accounts for the operations of the municipal golf course. 45 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) Additionally, the City reports the following fund types: Other special revenue funds used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. This category includes the Ambulance and Fire Fund, Lafayette City Center GID, Lafayette Corporate Campus GID, Lafayette Tech Center GID, and St. James GID (inactive). Capital project funds used for specific acquisition or construction activities such as: Storm Drainage Fund, Legacy Open Space Fund, POST Open Space Fund, Conservation Trust Fund and the Capital Projects Fund. The Debt Service Fund is used to account for the accumulation of resources for and the payment of long-term obligation principal, interest and related costs (other than proprietary fund debt). Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. These funds are used to account for the operations of the Employee Benefit Fund and the Insurance Fund, which are administered by the City. The Storm Water Enterprise Fund imposes fees on improved properties and developments to fund storm water quality issues and improvements; and the operation, maintenance, construction, improvement and replacement of storm water utility facilities. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule, the effect of inter-fund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are charges between the City’s water, sewer, storm water, and golf course functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 46 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. Cash Equivalents The City considers cash deposits and highly liquid investments (including restricted assets) with a maturity of three months or less when purchased, to be cash equivalents. All of the City’s proprietary fund investments are considered cash equivalents for purposes of the statement of cash flows. When both restricted and unrestricted resources are available for use, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. E. Investments Cash and investments, except for proceeds of bond issues accounted for in the appropriate funds, are pooled throughout the year into an Agency Fund (central cash) for cash management purposes. Investment income is allocated to the individual funds based on the average balance for the month. Should any of these funds have an average deficit in the pool, they are charged interest accordingly. All investments are stated at fair value. For financial statement purposes, the cash and investment amounts are reported as “cash and investments” of the respective individual funds at year-end. F. Inter-fund Receivables/Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “inter-fund receivables/payables” (i.e. the current portion of inter-fund loans) or “advances to/from other funds (i.e. the non-current portion of inter-fund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” G. Property Tax Receivable Property taxes are not due and payable until after the assessment year has ended. Property taxes are initially recorded as deferred revenue in the year they are earned and measurable. The deferred property tax is recorded as revenue in the year it is available or collected. Property taxes are collected and remitted to the City by Boulder County, Colorado. The property tax calendar is detailed below: 47 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G. Property Tax Receivable (continued) Lien date January 1 City certifies mill levies to County December 15 Levy date January 1 Collection/due dates: Total April 30 First half February 28 Second half June 15 Delinquent notices August 15 Tax Sale Mid-November H. Inventories Inventories of a material amount are only maintained in the General Fund for fuel and the Golf Course Fund for clubhouse merchandise. These inventories are valued at cost, using the first-in/first-out (FIFO) method. The costs of these inventories are recorded as expenditures or expenses when consumed rather than when purchased. All other inventories in the City are considered immaterial and are expensed when purchased. I. Long-term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight- line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, as expenditures in the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Certain revenue is allocated each year to the Debt Service Fund to provide for the full amount estimated to be required for debt service on all general obligation debt. Debt service for the Water and Water Reclamation Utility Funds and the Golf Course Fund is paid from monies provided by those funds. 48 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) J. Capital Assets All capital assets, including “Public Domain” capital assets such as streets and sidewalks are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an individual cost of more than $5,000 and an estimated useful life in excess of two years. Capital assets are reported at original cost. Donated assets are valued at the fair market value on the date donated. Costs incurred for the purchase or construction of capital assets for governmental activities are recorded as capital outlay expenditures in the General and Capital Projects Funds. Infrastructure assets include streets, sidewalks, trails, traffic signals and similar items. Costs incurred for the purchase or construction of capital assets for business-type activities are reported as assets in the proprietary funds. Interest is capitalized on proprietary fund assets acquired with tax exempt debt. Depreciation of all exhaustible capital assets is charged as an expense against operations. Accumulated depreciation is reported on the government-wide financial statements and the proprietary fund types in the fund financials. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: Buildings 50 years Improvements Other Than Buildings 10 - 25 years Equipment 5 - 10 years Water and Water Reclamation Systems 50 years Infrastructure 30 - 50 years K. Accrual for Compensated Absences The City has a policy that allows employees to accumulate unused vacation and sick benefits up to certain maximum hours. Compensated absences are recognized when earned in proprietary fund types and when paid in governmental fund types. A liability for these amounts is reported in the government-wide financial statements. In the past, payments to liquidate the liability have been made through the General, Water, Water Reclamation, and Golf Course Funds. 49 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) L. Fund Balance/Net Assets In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. In the Statement of Net Assets, net assets are identified as restricted or unrestricted. Restricted net assets include net assets that are subject to restrictions beyond the City’s control. The definition of reserved includes more than resources that are restricted. Therefore, amounts reported as reserved fund balances in governmental funds will generally be different from amounts reported as restricted net assets in the Statement of Net Assets. M. Special Assessments Special assessments are recorded in governmental funds as revenue in the year that the assessments become available. This results in recognizing revenue only in the amount of assessment installments, as they are collected. The remaining assessed but uncollected installments are recorded as deferred revenue. The City has not reflected the special assessment interest as revenue or as a receivable at December 31, 2009, as such amounts are not considered currently available. Collection of delinquent interest is recorded as revenue when received. NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the government fund balance sheet and the government-wide statement of net assets The governmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net assets-governmental activities as reported in the government- wide statement of net assets. One element of that reconciliation explains that “some receivables are recorded as deferred revenue in governmental funds since they are not available for current period expenses.” The details of this $1,118,703 difference are as follows: Special Assessments $ 1,023,118 Cemetery Endowment Care Earnings 2,522 Ambulance Accounts Receivable 93,063 Net adjustment to reduce fund balance – total governmental funds to arrive at net assets – governmental activities $ 1,118,703 50 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (continued) A. Explanation of certain differences between the government fund balance sheet and the government-wide statement of net assets (continued) A second element of that reconciliation states that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.” The details of this $(26,377,020) difference are as follows: Bonds Payable $ (23,865,000) Unamortized Debt Premium (18,435) Unamortized Charges - Refunding Bonds 502,332 Note Payable to Heritage Bank (689,008) Accrued Interest Payable (122,394) Capital Leases (1,774,385) Preneed Cemetery Claims (22,189) Compensated Absences (872,719) Less amount included in Assets and Liabilities of Internal Service Funds 484,778 Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $ (26,377,020) B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances-total governmental funds and changes in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation states that “debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets.” The details of this $8,469,463 difference are as follows: Principal Payments: Bond 8,125,000 Capital lease 304,666 Note Payable 39,797 Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net assets of governmental activities $ 8,469,463 51 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (continued) B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities (continued) A second element of that reconciliation states that “Some income reported in the Statement of Activities, although measurable, is not available, and is not reported as revenue in governmental funds.” The details of this $(658,362) difference are as follows: Decrease in Deferred Building Permit Fees $ (668,513) Decrease in Special Assessments (113,035) Accrued Interest Receivable 22,651 Amortization of Bond Premium 6,593 Ambulance Services 93,063 Increase in Cemetery Trust Earnings 879 Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net assets of governmental activities $ (658,362) Another element of that reconciliation states that “Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.” The details of this $(82,526) difference are as follows: Decrease in Compensated Absences not Reported Through Internal Service Funds $ 31,255 Increase in Cemetery Claims (22,189) Decrease in Accrued Interest Payable 15,231 Amortization of - Issuance Costs (48,691) Deferred Amount on Refundings (58,132) Net adjustment to decrease net changes in fund balances total governmental funds to arrive at changes in net assets of governmental activities $ (82,526) NOTE 3 CASH DEPOSITS AND INVESTMENTS The City, through its Charter and Investment Policy, has adopted the State Statutes dealing with deposits and investments. 52 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued) Deposits and investments at December 31, 2009, are summarized below: Cash and Cash Deposits $ 4,779,955 Investments 52,156,341 $ 56,936,296 Deposits and investments are presented in the financial statements as follows: Unrestricted $ 48,715,465 Restricted 8,220,831 $ 56,936,296 A. Deposits: The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. State regulators determine eligibility. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool for all the uninsured public deposits as a group is to be maintained by another institution or held in trust. The market value of the collateral must be at least equal to 102% of the aggregate uninsured deposits. On December 31, 2009 the City had bank deposits of $4,517,002 held by the financial institutions’ agents but not in the City’s name. B. Investments: Colorado statutes specify investment instruments meeting defined rating and risk criteria in which local governments may invest which include: • Obligations of the United States and certain US government agency securities • Certain international agency securities • General obligation and revenue bonds of US local government entities • Bankers’ acceptances of certain banks • Commercial paper • Written repurchase agreements collateralized by certain authorized securities • Certain money market funds • Guaranteed investment contracts • Local government investment pools 53 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued) B. Investments (continued): On December 31, 2009, the City had the following investments: Investment Maturities (in Years) Standard & Poors Less Fair Investment Type Rating Than 1 1-3 4-5 Over 5 Value U.S. Treasury * $ 2,008,477 $ 9,499,355 $ - $ - $ 11,507,832 Money Market Funds AAA 1,397,438 - - - 1,397,438 U.S. Agency Securities (Callable in 2010) AAA - 9,322,422 - - 9,322,422 U.S. Agency Securities AAA 9,185,271 17,099,526 - - 26,284,797 Local Government Investment Pools AAA 3,360,552 - - - 3,360,552 Municipal Golf Course Revenue Bonds AAA 50,800 169,600 62,900 - 283,300 Totals $16,002,538 $36,090,903 $62,900 $ - $52,156,341 * - The ratings for U.S. Treasury are not listed because these investments are fully guaranteed by the federal government. Interest Rate Risk – The City’s investment policy follows State statutes. State statutes limit investments in U.S. Agency securities to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. Credit Risk – State statutes limit investments in U.S. Agency securities to the highest rating issued by two or more nationally recognized statistical rating organizations (NRSROs). State statutes also limit investments in money market funds to those that maintain a constant share price, with a maximum remaining maturity in accordance with Rule 2a-7, and either have assets of one billion dollars or the highest rating issued by a NRSRO. Custodial Credit Risk – On December 31, 2009, the City had investments held by Wells Fargo Brokerage Service in a custodial safekeeping account in the amount of $47,115,050. All investments are specifically separate from the investments of the custodian and are identified as being investments of the City of Lafayette. 54 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued) B. Investments (continued) Concentration of Credit Risk – Although State statutes do not limit the amount the City may invest in one issuer, the City’s investment policy does set limits. The limits are as follows: U.S. Government Treasury Securities 100%, U.S. Government Agency Securities 70%, Certificates of Deposit 40%, Repurchase Agreements 40%, Liquidity Funds 30%, and Domestic Bankers’ Acceptances 30%. On December 31, 2009, the City’s investment in Federal Home Loan Bank was 23%, Federal Farm Credit Bureau was 19%, Federal Home Loan Mortgage Corporation was 12%, and Federal National Mortgage Association was 16%. The City’s investments in U.S. Government Agency Securities are at 70%. Local Government Investment Pool - The City had invested $3,360,552 in the Colorado Government Liquid Asset Trust (Colotrust) on December 31, 2009. The trust is an investment vehicle established by state statute for local government entities in Colorado to pool surplus funds for investment purposes. It operates similarly to money market funds, and each share is equal in value to $1.00. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions of each pooled investment. The majority of securities owned by the Trust are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian’s internal records identify investments owned by the Trust. The Trust invests in securities as allowed by State Statute. The Trust is registered with the Securities Commissioner of the State of Colorado as required by the Local Government Investment Pool Trust Fund Administration and Enforcement Act. NOTE 4 RESTRICTED CASH AND INVESTMENTS During July 2001, the City received $1,000,000 from the Northwest Parkway Public Highway Authority for capital projects and conservation easement acquisitions related to the Northwest Parkway Project. In 2003 utility lines and sleeves were installed during construction of the Parkway at a cost of $177,196. During 2004, $650,000 was committed for construction of White Tail Park in South Pointe, although only $450,124 was spent on the park. At December 31, 2009, the balance is $372,680. When the City acquired the cemetery property in February 2002, trust accounts were included as part of the transactions. The trust accounts were established in prior years for pre- paid services and endowment care of the cemetery. At December 31, 2009, the balances in the trust accounts amounted to $73,991. 55 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 4 RESTRICTED CASH AND INVESTMENTS (continued) In December 2002, the Exempla General Improvement District was formed to continue the development of the 287/42 project, and refunding bonds were issued. The bond ordinance requires a debt service reserve in the amount of $1,090,500. In April 2003, the City issued Water Revenue Bonds for the purpose of financing improvements to the water transmission and/or storage facilities and costs associated with joining and purchasing shares in water supply districts. These costs will be paid from available funds when they are incurred. The balance at December 31, 2009 is $2,877,691. On February 5, 2008 the City entered into a lease purchase agreement to fund a contract for the acquisition and installation of specific energy saving equipment. The funds, in the amount of $1,113,279 escrowed at Colorado State Bank and paid out as the project advanced. The balance remaining in the escrow account of $118,213 at December 31, 2009, represents the contractor retainage when the project is completed in 2010. In April 2008, the City sold Sales and Use Tax Revenue Bonds in the amount of $6,910,000 for the repair and improvement of City streets, installation of traffic and safety control devices, and construction and remodel of the Recreation Center. At December 31, 2009, $3,687,756 remained for the above projects. In summary, restricted cash and investments at December 31, 2009 was as follows: Northwest Parkway Related Projects $ 372,680 Pre-need and endowment care trusts 73,991 Exempla GID 1,090,500 2003A Water Revenue Bonds 2,877,691 Colorado State Bank Escrow 118,213 2008 Sales and Use Tax Revenue Bonds 3,687,756 Total Restricted Cash and Investments $ 8,220,831 56 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2009, was as follows: Beginning Balance Increases Decreases Ending Balance Governmental Activities: Capital Assets not being Depreciated Land $ 58,420,982 $4,004,784 $ (108,465) $ 62,317,301 Construction in Progress 966,317 864,346 (489,171) 1,341,492 Total 59,387,299 4,869,130 (597,636) 63,658,793 Capital Assets - Depreciated Buildings 20,596,961 1,301,792 (38,927) 21,859,826 Improvements Other Than Buildings 2,270,821 32,487 (14,970) 2,288,338 Infrastructure 70,023,913 3,091,569 (6,951) 73,108,531 Equipment 11,267,413 705,660 (86,843) 11,886,230 Total 104,159,108 5,131,508 (147,691) 109,142,925 Less Accumulated Depreciation For: Buildings (5,124,287) (502,654) 14,453 (5,612,488) Improvements Other than Buildings (1,903,810) (61,262) 12,740 (1,952,332) Infrastructure (23,857,196) (2,742,539) 4,386 (26,595,349) Equipment (7,364,290) (998,839) 78,215 (8,284,914) Total Accumulated Depreciation (38,249,583) (4,305,294) 109,794 (42,445,083) Total Capital Assets - Depreciated, Net 65,909,525 826,214 (37,897) 66,697,842 Governmental Capital Assets, Net $125,296,824 $5,695,344 $ (635,533) $130,356,635 Business-Type Activities: Capital assets, not being depreciated Land $ 7,515,180 $ 147,620 $ - $ 7,662,800 Water Rights 24,951,790 896,243 - 25,848,033 Construction in Progress 690,880 1,292,744 - 1,983,624 Total 33,157,850 2,336,607 - 35,494,457 Capital assets - Depreciated Buildings 1,623,182 9,455 (4,503) 1,628,134 Systems 79,585,245 1,039,872 (9,424) 80,615,693 Improvements other than Buildings 410,720 - - 410,720 Equipment 9,692,241 560,224 (343,858) 9,908,607 Total Capital Assets - Depreciated 91,311,388 1,609,551 (357,785) 92,563,154 Less accumulated depreciation for: Buildings (610,295) (59,917) 4,128 (666,084) Systems (21,799,025) (1,772,090) 5,027 (23,566,088) Improvements other than buildings (302,976) (14,858) - (317,834) Equipment (5,967,363) (843,387) 338,295 (6,472,455) Total accumulated depreciation (28,679,659) (2,690,252) 347,450 (31,022,461) Total Capital Assets - Depreciated 62,631,729 (1,080,701) (10,335) 61,405,786 Business-type Capital Assets, Net $ 95,789,579 $1,255,906 $ (10,335) $ 97,035,150 57 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 5 CAPITAL ASSETS (continued) Depreciation expense was charged to function/program of the City as follows: Governmental Activities General Government $ 168,353 Judicial 10 Public Safety 627,851 Public Works 2,532,191 Culture and Recreation 976,889 Total depreciation expense governmental activities $ 4,305,294 Business-type Activities Water $ 1,646,108 Water Reclamation 869,617 Golf Course 172,503 Storm Water 2,024 Total depreciation expense business-type activities $ 2,690,252 NOTE 6 LONG-TERM DEBT A. Bonded Debt The City of Lafayette and its component units have three types of bonded debt: • General obligation (serial) bonds • Revenue (term) bonds • Demand bonds General obligation bonds are direct obligations and pledge the full faith and credit of the City. The bonds have been issued for both governmental and business-type activities. General obligation bonds currently outstanding are as follows: Governmental Activities 1998 Refunding and Improvement General Obligation Bonds mature annually through December 15, 2017, interest at 3.6% to 5.1% is paid semi-annually $ 1,235,000 2005 General Obligation Bonds mature annually through December 15, 2025, interest at 3.00% to 4.40% is paid semi-annually 5,120,000 6,355,000 58 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) A. Bonded Debt (continued) Business – type Activities 1999 General Obligation Water Refunding Bonds mature annually through December 1, 2012, interest at 3.25% to 4.55% is paid semi-annually $ 1,155,000 2003B General Obligation Water Refunding Bonds mature annually through December 1, 2012, interest at 2.00% to 3.90% is paid semi-annually 935,000 2,090,000 Total General Obligation Bonded Debt $ 8,445,000 The City has also issued bonds for both governmental and business-type activities where revenues are pledged to pay the debt service. Revenue bonds outstanding at year-end are: Governmental Activities 1999 Limited Tax General Obligation Bonds mature annually through December 1, 2018, interest of 5.75% is paid semi-annually (Lafayette City Center GID) $ 570,000 2006 General Obligation Refunding Bonds mature annually through December 1, 2036, interest of 6% is paid semi-annually (Lafayette Tech Center GID) 2,040,000 2002 Limited Tax General Obligation Refunding Bonds mature annually through December 1, 2031, interest at 8% is paid semi-annually (Lafayette Corp Campus GID) 2,510,000 2003C Sales and Use Tax Revenue Bonds mature annually through November 15, 2011, interest at 2.00% to 3.50% is paid semi-annually 1,525,000 2008 Sales and Use Tax Revenue Bonds mature annually through November 15, 2019, interest of 3.31% is paid semi-annually 6,910,000 13,555,000 59 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) A. Bonded Debt (continued) Business-type Activities 2003A Water Revenue Bonds mature annually through December 1, 2027, interest at 4.00% to 5.25% is paid semi-annually 15,645,000 1992 Golf Revenue Bonds matured on October 15, 2002, final maturity extended to December 31, 2014, interest of 5.5% is paid annually 283,300 15,928,300 Total Revenue Bond Debt $ 29,483,300 The obligations of the Lafayette City Center GID, Lafayette Corporate Campus, and Lafayette Tech Center GID are not obligations of the City of Lafayette. The 1992 Golf Revenue Bonds are carried as an investment by the Water Reclamation Fund. Adverse business conditions, made worse by the drought, have caused an extension of the final maturity date of these bonds. Annual graduated principal payments are scheduled through December 31, 2014. Future annual debt service requirements to maturity for the general obligations and revenue bond issues are as follows: Debt Governmental Activities Business-type Activities Requirement Year Principal Interest Principal Interest to Maturity 2010 $ 1,445,000 $ 901,757 $ 720,800 $ 860,716 $ 3,928,273 2011 1,265,000 845,683 748,500 830,769 3,689,952 2012 1,280,000 795,673 781,500 798,099 3,655,272 2013 1,330,000 745,810 804,600 763,792 3,644,202 2014 1,385,000 693,805 837,900 730,714 3,647,419 2015-2019 7,435,000 2,596,278 4,420,000 3,104,232 17,555,510 2020-2024 2,780,000 1,445,327 5,605,000 1,919,550 11,749,877 2025-2029 1,690,000 743,880 4,100,000 416,750 6,950,630 2030-2034 1,020,000 245,600 - - 1,265,600 2035-2037 280,000 25,500 - - 305,500 Total $ 19,910,000 $ 9,039,313 $18,018,300 $9,424,622 $ 56,392,235 60 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) A. Bonded Debt (continued) Demand bonds comprise the third type of bonded debt issued by the City of Lafayette. These bonds have been issued for governmental activities, but are not obligations of the City of Lafayette. Demand bonds outstanding at December 31, 2009, are as follows: Exempla General Improvement District Special Assessment Revenue Refunding and Improvement Bonds mature annually through December 1, 2022 $ 3,955,000 Total Demand Bond Debt $ 3,955,000 These bonds bear interest at floating rates and are subject to mandatory redemption upon conversion of the interest rate to a different rate type or rate period. On July 1, 2009, the GID redeemed $6,510,000 face amount of the bonds as requested by Exempla Healthcare. The redemption reduced the outstanding principal to $ 3,955,000 and assured that there would not be any additional principal payments required until the year 2018. An initial irrevocable letter of credit was issued as collateral for the Exempla bonds for a maximum amount equal to the principal amount of the bonds, plus 35 days interest at a maximum annual rate of 10%. The initial letter of credit was replaced by an alternate letter of credit, reduced by the redemption, with an expiration date of January 29, 2011. The issuer and the bank have entered into a reimbursement agreement as an integral part of the issued letters of credit. Among other things, the reimbursement agreement provides for repayment to the bank of all drawings made under the letters of credit, together with interest, fees, and other costs, certain affirmative and negative covenants to be observed on the part of the issuer, and certain indemnification obligations on the part of the issuer. These bonds are not obligations of the City of Lafayette. The debt service requirements must be met by the resources generated by the District. As described above, these bonds currently bear interest at floating rates. The final interest rate on December 31, 2009 was 0.25%. At some time in the future, the rates will be converted to a fixed rate. Although interest rates in future periods may vary considerably, an interest factor of 0.25% has been used in projected annual debt service requirements. 61 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) A. Bonded Debt (continued) Year Principal Interest Total 2010 $ - $ 9,888 $ 9,888 2011 - 9,888 9,888 2012 - 9,888 9,888 2013 - 9,888 9,888 2014 - 9,888 9,888 2015-2019 1,175,000 48,627 1,223,627 2020-2022 2,780,000 14,088 2,794,088 Total $ 3,955,000 $ 112,155 $ 4,067,155 B. Notes Payable During 2001, the City entered into two long-term loans for construction projects, one involving a governmental activity, and the other, a business-type activity. A loan of $950,000 was obtained from Great Western Bank, (previously Heritage Bank), to construct a building, which was completed in 2002, for the Sister Carmen Community Center in a lease-purchase arrangement. The loan balance of $689,008 is payable in semi-annual installments of $39,945, including interest at 5.65%. Annual debt service requirements to maturity are: Year Principal Interest Total 2010 $ 41,516 $ 38,374 $ 79,890 2011 43,894 35,995 79,889 2012 46,409 33,480 79,889 2013 49,069 30,821 79,890 2014 51,880 28,009 79,889 2015-2019 307,547 91,901 399,448 2020-2021 148,693 10,677 159,370 Total $ 689,008 $ 269,257 $ 958,265 In May 2001, the Water Reclamation Fund obtained an $8,000,000 loan from the Colorado Water Resources and Power Development Authority to construct an addition to the waste water treatment plant. The City evidenced its obligation to repay the loan by issuing a bond to at an effective interest rate of 4.2%, in an amount equal to the principal of the clean water bonds loaned to the City. Net revenues of the Water Reclamation Fund are pledged for repayment of the loan. In 2005 the bonds were refinanced at an effective interest rate of 3.8%. The loan balance of $6,140,441 is payable in semi-annual installments. Annual debt service requirements to maturity have been calculated at the refinanced rate of 3.8% as follows: 62 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) B. Notes Payable (continued) Year Principal Interest Total 2010 $ 416,582 $ 233,935 $ 650,517 2011 435,155 217,619 652,774 2012 438,819 201,258 640,077 2013 460,391 183,519 643,910 2014 481,405 165,482 646,887 2015-2019 2,680,001 532,100 3,212,101 2020-2021 1,228,088 60,355 1,288,443 Total $ 6,140,441 $ 1,594,268 $ 7,734,709 On February 15, 2006 the Water Fund acquired one unit of Windy Gap water and assumed a pro-rata portion of the related debt incurred by the Municipal Subdistrict of the Northern Colorado Water Conservancy District for the construction of the Windy Gap project. The total debt assumed was $174,417. The balance due on December 31, 2009 is $131,876. Annual debt service payments are billed by the Municipal Subdistrict with the annual water assessments. The rate of interest is approximately Annual debt service requirements to maturity are: Year Principal Interest Total 2010 $ 13,229 $ 6,795 $ 20,024 2011 13,885 6,134 20,019 2012 15,021 5,440 20,461 2013 15,958 4,693 20,651 2014 16,782 3,862 20,643 2015-2017 57,001 6,110 44,512 Total $ 131,876 $ 33,034 $ 164,909 C. Pledged Revenues The 2003C Sales and Use Tax Revenue Bonds were issued to refinance the 1993 Sales and Use Tax Revenue Bonds. The bonds mature annually through November 15, 2011, with interest paid semi-annually at 2.00% to 3.50%. Total outstanding obligation for these bonds as of December 31, 2009, is $1,603,625; $1,525,000 in principal and $78,625 in interest. In April of 2008, the City issued 2008 Sales and Use Tax Revenue Bonds to finance street improvements and an addition to the Recreation Center. The bonds mature annually on November 15 from 2012 to 2019, with interest paid semi-annually at 3.31%. Total outstanding obligation for these bonds as of December 31, 2009, is $8,438,395; $6,910,000 in principal and $1,528,395 in interest. Both issues are payable from a 3.00% municipal sales and use tax. During the year ended December 31, 2009, revenues of $8,257,862 were available to pay the annual debt service of $1,032,121. 63 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) C. Pledged Revenues (continued) The 2003A Water Revenue Bonds were issued for the purpose of financing any or all of the following: the construction of a raw water transmission system, the purchase of real property and construction of a raw water storage facility, the payment of costs associated with fees for joining and purchasing shares in water supply districts, or the development of a reclaimed water transmission system for irrigation purposes. The bonds mature annually on December 1 from 2013 through 2027, with interest paid semi-annually at 4.00% to 5.25%. Total outstanding obligation for these bonds as of December 31, 2009, is $24,841,012; $15,645,000 in principal and $9,196,012 in interest. Debt service is payable from net revenues of the City’s municipal water system. During the year ended December 31, 2009, net revenues of $2,349,127 were available to pay annual debt service of $757,056. The City received a loan, at 4.2% interest, in 2001 from the Colorado Water Resources and Power Development Authority in order to finance the expansion of the City’s Water Reclamation facility. The loan was refinanced in 2005. Debt service on the loan is payable semi-annually through 2021 with an interest rate of 3.8%. Total outstanding obligation for this loan as of December 31, 2009, is $7,734,708; $6,140,441 in principal and $1,594,267 in interest. The loan is payable from net revenues of the City’s water reclamation system. During the year ended December 31, 2009, net revenues of $(3,623), after reduction for transfers out of $207,318, were not sufficient to pay annual debt service of $455,140. The annual debt service amount is the amount per the debt service schedule. Because revenues were not sufficient to pay annual debt service, the City is not in compliance with the loan covenant. Sewer rates were increased 9% in 2010 with scheduled increases proposed through 2014 in order to restore net revenues and compliance. The 1992 Golf Course Revenue Bonds were issued to finance the construction of a municipal golf course. The bonds mature annually through December 31, 2014, with interest paid annually at 5.50%. Total outstanding obligation for these bonds as of December 31, 2009, is $331,705; $283,300 in principal and $48,405 in interest. The debt is payable from net revenues of the City’s golf course. During the year ended December 31, 2009, net revenues of $76,411 were available to pay annual debt service of $66,326. The bonds for the Exempla General Improvement District were issued in December of 2002 to finance the costs of improvements on 79 acres of land being developed primarily for non- profit commercial use by the Exempla Northwest Medical Center. The bonds have a floating interest rate which is currently 0.25%. Revenues are generated from special assessments on a semi-annual basis in order to service the debt. Assessments are billed using an interest rate of 10% as required by bond documents. Excess revenues have been accumulating the past two years as a result of the large gap between actual interest being paid and the 10% rate. 64 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) C. Pledged Revenues (continued) Therefore, the billings to the property owners on July 1 2009, for the bond redemption of $6,510,000 were partially offset by the accumulated excess credits. The 2009 gross revenues of $6,928,099 were added to excess credits of $553,470 for payment of the redemption and annual debt service of $6,647,579. Total outstanding obligation for these bonds as of December 31, 2009, is $4,067,155; $3,955,000 in principal and $112,155 in interest. The Lafayette City Center General Improvement District bonds, issued in December of 1999, were issued to finance improvements within a specific area of the City of Lafayette at an interest rate of 5.75%. The bonds mature annually through December 1, 2018. Total outstanding obligation for these bonds as of December 31, 2009, is $747,677; $570,000 in principal and $177,677 in interest. The debt is payable from gross revenues of the General Improvement District. For the year ending December 31, 2009, gross revenues of $80,512 were available to pay annual debt service of $75,075. In December, 2002, the Lafayette Corporate Campus General Improvement District bonds were issued to finance public improvements in the District. The bonds mature annually through December 1, 2031, at an interest rate of 8.00%. Total outstanding obligation for these bonds as of December 31, 2009, is $5,414,400; $2,510,000 in principal and $2,904,480 in interest. During the year ended December 31, 2009, gross revenues of $262,680 were available to pay debt service of $244,000. The Lafayette Tech Center General Improvement District bonds were issued in December 2000 to be used to finance the acquisition, construction, installation and completion of public improvements within the District. In 2006, the bonds were refinanced and mature annually through December 1, 2036 at an interest rate of 6.00%. Total outstanding obligation for these bonds as of December 31, 2009, is $4,164,300; $2,040,000 in principal and $2,124,300 in interest. For the year ending December 31, 2009, gross revenues of $135,822 were available to pay debt service of $122,400. D. Capital Leases In April 2006, the Golf Course Fund replaced the golf cart fleet at a cost of $186,330 by using a lease purchase arrangement. The future minimum lease obligation as of December 31, 2009 is as follows: 2010 $ 25,843 Less amount representing interest (592) Present value of remaining base payments $ 25,251 65 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) D. Capital Leases (continued) Due to the establishment by the city of a single stream recycling program, in September of 2007, five thousand five hundred recycling carts were leased from Boulder County, at a cost of $56.99 per cart, for a total of $313,445. The future minimum lease obligations as of December 31, 2009 are as follows: 2010 $ 60,000 2011 60,000 2012 60,000 2013 59,063 $ 239,063 Less amount representing interest (22,716) Present value of remaining base payments $ 216,347 In December of 2007 the fire department purchased a fire truck at a cost of $727,544 by using a lease purchase agreement. The future minimum lease obligations as of December 31, 2009 are as follows: 2010 $ 119,391 2011 119,391 2012 119,391 2013 119,391 2014 119,391 $ 596,955 Less amount representing interest (58,060) Present value of remaining lease payments $ 538,895 On February 5, 2008, the city entered into a lease purchase arrangement for energy saving improvements at various city facilities at a cost of $1,113,279. The future minimum lease obligations as of December 31, 2009 are as follows: 2010 $ 115,793 2011 122,554 2012 133,087 2013 138,677 2014 144,500 2015-2018 559,830 $1,214,441 Less amount representing interest (195,297) Present value of remaining payments $1,019,144 66 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 6 LONG-TERM DEBT (continued) E. Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2009, was as follows: Beginning Balance Additions Reductions Ending Balance Due Within One Year Governmental Activities: Bonds Payable General Obligation Bonds $ 7,160,000 $ - $ 805,000 $ 6,355,000 $ 575,000 Revenue Bonds 14,365,000 - 810,000 13,555,000 870,000 Demand Bonds 10,465,000 - 6,510,000 3,955,000 - Total Bonds Payable 31,990,000 - 8,125,000 23,865,000 1,445,000 Deferred Amounts For Issuance Premiums 25,028 - 6,593 18,435 - On Refunding (560,464) - (58,132) (502,332) - Total Bonds Payable, Including deferred amounts 31,454,564 - 8,073,461 23,381,103 1,445,000 Notes Payable 728,805 - 39,797 689,008 41,516 Capital Leases 2,079,051 - 304,666 1,774,385 227,878 Compensated Absences 901,765 958,883 987,929 872,719 656,193 Governmental Activity long- term activities $ 35,164,185 $ 958,883 $ 9,405,853 $ 26,717,215 $ 2,370,587 Business-type Activities Bonds Payable General Obligation Bonds $ 2,735,000 $ - $ 645,000 $ 2,090,000 $ 670,000 Revenue Bonds 15,976,400 - 48,100 15,928,300 50,800 Total Bonds Payable 18,711,400 - 693,100 18,018,300 720,800 Deferred Amounts For Issuance Premiums 451,622 - 29,016 422,606 - On Refunding (148,722) - (34,009) (114,713) - Total Bonds Payable, Including deferred amounts 19,014,300 - 688,107 18,326,193 720,800 Notes Payable 6,688,501 - 416,184 6,272,317 429,811 Capital Leases 74,036 - 48,785 25,251 25,251 Compensated Absences 237,000 262,744 238,658 261,086 178,653 Business-type activity long- term activities $ 26,013,837 $ 262,744 $ 1,391,734 $ 24,884,847 $ 1,354,515 NOTE 7 AMENDMENT ONE Colorado voters passed an amendment to the State Constitution, Article X, Section 20 (Amendment One), which has several limitations, including revenue raising limitations, spending limits, and other specific requirements of state and local governments. The Amendment is complex and subject to judicial interpretation. Over the course of several municipal elections and in accordance with state law, the citizens of Lafayette have exempted the City from the certain provisions of Article X, Section 20. The ballot issues allow the City to retain the current mill levy and all surplus tax revenues, and exempt the City from the spending limits noted in the State Constitution. 67 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 8 INTERFUND TRANSFERS, RECEIVABLES, AND PAYABLES The following interfund transfers occurred during 2009 for the purposes stated below. Transfers Out Transfers In Fund Description Amount General Fund Debt Service Fund General Fund Capital Lease Payments $ 461,826 $ - $ 461,826 Ambulance & Fire Fund Reimburse for Services 427,214 427,214 - Lafayette Urban Renewal Authority Maintenance 2,381 2,381 - POST Open Space Fund Open Space Maintenance 650,314 650,314 - Water Fund Administrative Charges 704,009 704,009 - Water Reclamation Fund Administrative Charges 207,318 207,318 - Golf Course Fund Administrative Charges 138,359 138,359 - Reimburse for Golf Course Construction 433,836 433,836 - Storm Water Fund Administrative Charges 64,999 64,999 - $ 3,090,256 $ 2,628,430 $ 461,826 NOTE 9 EMPLOYEE RETIREMENT PLANS The City’s employees and volunteer fire fighters are covered under three separate retirement plans. A. General Employees The City offers its full-time employees and key management officials a retirement plan created in accordance with Internal Revenue Code (IRC) Section 401(a). Employees are eligible to participate in the plan on the first day of employment as a full-time employee. A full-time employee is any employee who is regularly scheduled to work at least 40 hours per week for the City and whose position is approved by City Council. This plan is a defined contribution plan administered by International City/County Management Association – Retirement Corporation (ICMA-RC). Under the terms of the plan, the City is the only non-employee contributor and contributes 10.2% of the participant’s salary (salary, pay or earned income less salary reductions made under IRC Section 125), and the participant is required to contribute 8% of salary. Contribution requirements of the City and the participants are established and may be amended by the City Council. During the year ended December 31, 2009, the City and employees made all required contributions to the plan, of $683,274 and $536,838, respectively. 68 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 9 EMPLOYEE RETIREMENT PLANS (continued) A. General Employees (continued) An employee shall have a non-forfeitable interest in the percentage of the employer contribution account determined pursuant to the following vesting schedule. Forfeitures from the non-vested portion of terminated employees’ accounts are used to reduce the contribution required by the City. Years of Percentage Service Vested 1 20% 2 40% 3 60% 4 80% 5 100% An employee shall have a non-forfeitable interest in their entire employer account if they are employed by the city when they become disabled or die. Voluntary after-tax contributions are allowed up to an additional 25% of the employee’s compensation. Since a third party trustee holds the assets in trust, they are not reflected on the City’s financial statements. The annual financial report of ICMA-RC may be obtained by writing to ICMA-RC, 777 North Capitol Street, NE, Washington, DC 20002 or by calling them at 202- 962-4601. B. Commissioned Police Officers, Firefighters, and Ambulance Personnel In May 2005, the City, after approval by police officers and City Council, transferred the assets to a cost-sharing multiple-employer defined benefit system administered by the Fire and Police Pension Association of Colorado (FPPA). Subsequently, the firefighters transferred their assets from the general employees’ retirement plan to the FPPA plan and the ambulance employees adopted this plan when they were hired in 2007 and thereafter. During this process, every effort was made to retain continuity between the old and new plan provisions. Vesting applies at 20% per year with full vesting after 5 years. There are three different plan structures within the FPPA Defined Benefit System. 1. Statewide Money Purchase Plan and Money Purchase component of the Statewide Hybrid Plan, 2. Defined Benefit component of the Statewide Hybrid Plan, and 3. Statewide Defined Benefit Plan. 69 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 9 EMPLOYEE RETIREMENT PLANS (continued) B. Commissioned Police Officers, Firefighters, and Ambulance Personnel (continued) Police officers employed on May 1, 2005 could elect the Statewide Hybrid Plan option with contributions the same as with the old plan employee & 10.2% City), or the Statewide Defined Benefit Plan - Additional Contribution option with contributions of 9.8% from the employees and 10.2% from the City, or the Statewide Defined Benefit Plan option with contributions of 8% employee & 8% employer. The assets for the accounts transferred from the old plan were placed in the Money Purchase component of the Statewide Hybrid Plan. Police officers and firefighters hired after May 1, 2005 and ambulance employees must be covered under the FPPA Statewide Defined Benefit Plan with contributions of 8% from the employee and 8% from the City. The remaining 2.2% contributed by the City for the commissioned police officers, firefighters, and ambulance personnel is paid to the ICMA-RC money purchase plan. Statewide Hybrid Plan – The City and the employees have made contributions to this plan for the past three years equal to 10.2% and 8.0% of regular pay. The City and employees made the required contributions to the plan in 2009 of $63,524 and $49,823, in 2008 of $70,741 and $55,483, and in 2007 of $67,424 and $52,882, respectively. Defined Benefit Plan-Additional Contribution – The City and the employees have made contributions to this plan for the past three years equal to 10.2% and 9.8% of regular pay. The City and employees made the required contributions to the plan in 2009 of $163,034 and $156,641, in 2008 of $161,034 and $154,719, and in 2007 of $168,808 and $162,188, respectively. Statewide Defined Benefit Plan – The City and the employees have made contributions to this plan for the past three years equal to 8.0% and 8.0% of regular pay. The City and employees made the required contributions to the plan in 2009 of $105,848 and $105,848, in 2008 of $89,477 and $89,477, and in 2007 of $68,530 and $68,530, respectively. An employee shall have a non-forfeitable interest in their entire employer account if they are employed by the City when they become disabled or die. Since a third party trustee holds the assets in trust, they are not reflected on the City’s financial statements. The annual financial report of FPPA may be obtained by writing to FPPA, 5290 DTC Parkway, Suite 100, Greenwood Village, CO 80111-2721 or by calling them at 1-[PHONE REDACTED]. In addition, retirement contributions on overtime or non-regular pay are not allowed by FPPA. Contributions on overtime and non-regular pay made by the Police, Fire and Ambulance employees are 8% and the City contributes 10.2% to ICMA-RC. In 2009 the City paid $10,971 and the employees paid $8,605. The City paid $29,108 to ICMA-RC in 2009 for the 2.2% match on the FPPA Statewide Defined Benefit Plan. 70 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 9 EMPLOYEE RETIREMENT PLANS (continued) C. Volunteer Fire Fighters Plan Description - The City provides a defined benefit pension plan for volunteer firefighters as established by Title 31, Article 30, Section 401 of the Colorado Revised Statutes. The Colorado Fire & Police Pension Association (FPPA) administers this agent multiple employer plan. Any firefighter who has both attained the age of fifty and completed twenty years of active service shall be eligible for a pension. A firefighter who is disabled in the line of duty and whose disability is considered permanent shall be compensated in an amount determined by the Board of Trustees to be reasonable and proper considering the financial condition of the fund. The Plan also provides for a lump-sum burial benefit upon the death of an active or retired firefighter. Spouses of deceased firefighters may receive benefits as authorized by State Statute. The annual financial report of FPPA may be obtained by writing to FPPA, 5290 DTC Parkway, Suite 100, Greenwood Village, CO 80111-2721 or by calling them at 1-[PHONE REDACTED]. Funding Policy - The Volunteer Firefighters’ Pension Plan receives contributions from the City in an amount not to exceed one-half mill of property tax revenue. As established by the legislature, the State of Colorado contributes ninety percent of the City’s contribution up to the $300 per month normal retirement benefit level. For benefits beyond $300, the State contribution is limited to the City’s contribution before the increase in benefits. The on- behalf payments received from the State of Colorado are recorded as both revenues and expenditures during the year. The contributions are actuarially determined. The actuarial study as of January 1, 2009, presented the required contribution level for three different plan options available through the Fire & Police Pension Association. Effective January 1, 2007, the City is funding normal retirement benefits of $525 per month. As a result, the accumulated contributions in excess of the required contributions under the previous benefit level have been applied to the unfunded liability balance of the increased benefit level. The actuarial study as of January 1, 2009, indicated that the current contributions to the fund are not adequate to support the prospective benefits for the present plan on an actuarially sound basis. The required contributions for 2010 and 2011 will be increased $13,174 each year based on the actuarial report to a required funding level of $145,382. Annual Pension Cost - For the year ended December 31, 2009, The City and State actual contributions of $89,986 and $42,222, respectively, did equal the required contribution. Due to information obtained later during the year, the City paid an additional $13,174 in 2009 on the recommendation of FPPA to place the plan on an actuarially sound basis. The required contribution was determined as part of the January 1, 2009 actuarial valuation using the entry age normal cost method. Actuarial assumptions which have changed since the prior valuation included the following: 71 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 9 EMPLOYEE RETIREMENT PLANS (continued) C. Volunteer Fire Fighters (continued) 1. Interest rate - 8.0% per annum, compounded annually, net of operating expenses 2. Retirement age - Age 50 and 20 years of service 3. Disability - Graduated rates for all disabilities 4. Mortality - 1994 Group Annuity Mortality Table 5. Separation - Graduated rates for all withdrawals 6. Marital Status - 90% married, with males being three years older 7. Asset Valuation - Three-year smoothed method 8. Inflation - 3.5% Based on an amortization period of twenty years using the level dollar method on an open basis, the Plan’s expected contributions equal the amount recommended to eliminate the unfunded actuarial accrued liability. Trend Information of the Plan follows: Percentage Net Pension Fiscal Year Annual Pension of APC Obligation Funding Cost (APC) Contributed (Excess) 12/31/2007 132,208 100% - 12/31/2008 132,208 100% - 12/31/2009 132,208 100% - Funded Status and Funding Progress – As of January 1, 2009, the most recent actuarial valuation date, the plan was 49 percent funded. The actuarial accrued liability for benefits was $2.2 million and the actuarial value of assets was $1.1 million, resulting in an unfunded actuarial accrued liability (UAAL) of $1.1 million. The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. NOTE 10 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees; or acts of God. For these risks of loss, the City acquires insurance for property liability, police professional liability, errors and omissions, excess liability, and crime coverage through the Colorado 72 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 10 RISK MANAGEMENT (continued) Intergovernmental Risk Sharing Agency (CIRSA). The City does not exercise oversight responsibility nor does it exercise significant influence over CIRSA’s operations. Premiums and coverage obtained from CIRSA are comparable to those provided by commercial carriers. CIRSA is an organization created by an intergovernmental agreement to provide property, general and automobile liability, and public official coverage to its members. Coverage is provided through CIRSA self-funding and various excess insurance contracts that limit maximum losses and minimize exposure on large risks. CIRSA does not have a legal obligation to pay losses or loss adjustment expenses in excess of its annually established loss fund and amounts recoverable under excess specific aggregate insurance contracts. Losses and loss adjustment expenses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members. The City continues to carry commercial insurance coverage for other risks of loss including workers compensation and employee health and accident insurance. The amount of settlements has not exceeded insurance coverage in any of the past three fiscal years. The Insurance Fund, an internal service fund, was established to account for claims and insurance premiums related to property and liability risks. The City is responsible for the first $25,000 of each claim. Changes in the balances of claims liabilities during the past two years are as follows: The City established the Employee Benefit Fund, an internal service fund to manage and account for the rising costs of all employee insurance benefits. Under the provisions of the current employee health insurance plan, the City pays a fixed premium, per participant, and is fully insured. NOTE 11 ASSET HELD FOR RESALE In March 2002, the City of Lafayette acquired property occupied by the Albertson’s store in Village Shopping Center as part of an overall plan of urban renewal. The City leased the property back to Albertson’s until the business was moved to the new store location in June 2003. The City of Lafayette was actively marketing the acquired property until Wal-Mart (adjacent property) presented a proposal for moving to a new location within the City. The properties are both located in the Urban Renewal District. Since the properties Dec. 31, 2007 Claims Incurred Claims Paid Dec. 31, 2008 Claims Incurred Claims Paid Dec. 31, 2009 Property & Liability $0 $47,000 $24,076 $22,924 $58,318 $71,642 $9,600 73 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2009 NOTE 11 ASSET HELD FOR RESALE (continued) are adjacent and in a prime location, the City now plans to either sell the Albertson’s lot or redevelop both properties together since Wal-Mart has vacated its current location. The City is currently leasing large portions of the old Albertson’s building pending sale or redevelopment. The cost of the property was $2,372,182. At December 31, 2009, it was determined that the approximate fair market value of the property is $1,400,000. The carrying value was adjusted by $72,182 in 2003. It was adjusted another $268,032 in 2004 and $631,968 in 2009. NOTE 12 SPECIAL ITEMS As mentioned in Note 11 above, the adjustment to the asset held for resale is recorded as a special item in the General Fund. In late 2007, the City suffered a fire that destroyed the Waneka Boathouse. The insurance proceeds from this loss are recorded as a special item in the General Fund also. The proceeds represent the final settlement on the replacement cost of the Boathouse. NOTE 13 CONDUIT DEBT In 1998 and 1999, the City issued $8,470,000 of Industrial Development Revenue Bonds for the purpose of providing capital financing for Rocky Mountain Instruments Co. The balance outstanding at December 31, 2009 was $5,875,000. The bonds are payable solely from the revenues and receipts pledged under this indenture. The bonds do not constitute a debt of the City of Lafayette and are not a pledge of the full faith and credit or taxing power of the City. On October 1, 2008, Rocky Mountain Instrument Co. failed to make their required debt service payment on the Bonds. The City of Lafayette was notified on April 13, 2009 that the Bonds had been accelerated and a foreclosure sale had been scheduled. Due to the current economic climate, all further collection procedures have been postponed. NOTE 14 COMMITMENTS AND CONTINGENCIES The City has received federal grants to assist with the construction of facilities and other projects. Under the terms of the grant agreements, such grants are subject to review and audit by the Grantor. Such audits could lead to a request for reimbursements to the Grantor for expenditures disallowed. City management believes any disallowance would be immaterial. NOTE 15 PENDING LITIGATION The City of Lafayette is involved in pending and threatened litigation for which the outcome is unknown. 74 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION 2009 ---PAGE BREAK--- 01/01/09 01/01/07 01/01/05 01/01/03 01/01/01 $525 Level $500 Level $500 Level $475 Level $450 Level Actuarial Value of Assets 1,105,412 $ 1,206,349 $ 1,025,695 $ 1,001,398 $ 1,110,995 $ Actuarial Accrued Liability-entry age 2,250,777 2,123,394 2,153,723 1,905,576 1,833,842 Unfunded Actuarial Accrued Liability (b-a) 1,145,365 $ 917,045 $ 1,128,028 $ 904,178 $ 722,847 $ Funded ratio (a/b) 49% 57% 48% 53% 61% Covered payroll N/A N/A N/A N/A N/A Actuarial Valuation Date CITY OF LAFAYETTE, COLORADO SCHEDULE OF FUNDING PROGRESS VOLUNTEER FIRE FIGHTER'S PENSION PLAN December 31, 2009 76 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Property Taxes 2,871,798 $ 2,871,798 $ 2,856,432 $ (15,366) $ Fire District Tax 5,300 5,300 5,300 - Specific Ownership Tax 227,431 212,792 203,249 (9,543) General Sales & Use Tax 6,878,685 6,226,822 6,808,615 581,793 Motor Vehicle Use Tax 502,251 502,251 422,737 (79,514) Building Use Tax 298,555 285,268 487,063 201,795 Total Taxes 10,784,020 10,104,231 10,783,396 679,165 License and Permits Business Licenses 13,175 13,175 1,045 (12,130) Contractor Licenses 48,125 48,125 51,150 3,025 Liquor Licenses 10,000 10,000 14,125 4,125 Construction Permits 197,612 147,994 222,264 74,270 Mobile Home Permits 7,000 7,000 9,270 2,270 Miscellaneous Licenses 3,500 3,500 1,898 (1,602) Total Licenses and Permits 279,412 229,794 299,752 69,958 Intergovernmental State and Federal Grants 245,522 245,522 423,165 177,643 Cultural Arts Grant 5,000 5,000 10,410 5,410 Cigarette Tax 28,000 28,000 30,927 2,927 Motor Vehicle Registration 75,000 75,000 100,746 25,746 County Road and Bridge Tax 48,000 48,000 13,419 (34,581) Highway Users Tax 569,655 569,655 631,198 61,543 Nutrition Grant 20,000 20,000 29,831 9,831 Total Intergovernmental 991,177 991,177 1,239,696 248,519 Fines and Forfeitures Fines 895,300 895,300 986,117 90,817 Court Costs 48,000 48,000 48,331 331 Total Fines and Forfeitures 943,300 943,300 1,034,448 91,148 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2009 77 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2009 Revenues (continued) Interest and Other Franchise Taxes 1,020,803 1,020,803 913,075 (107,728) Special Assessments Principal 18,071 18,071 107,150 89,079 Special Assessments Interest 7,393 7,393 5,198 (2,195) Interest 270,000 180,000 122,298 (57,702) Sidewalk Maintenance/Repair 88,555 88,555 92,980 4,425 PEG Fees 30,000 30,000 31,422 1,422 Public Art Fees 1,600 1,600 12,411 10,811 Contributions and Misc Grants 4,000 4,000 101,170 97,170 Property Sales 10,000 10,000 644 (9,356) Community Fundraiser 18,000 18,000 930 (17,070) Total Interest and Other 1,468,422 1,378,422 1,387,278 8,856 Charges for Services Building Fees 198,578 159,185 172,634 13,449 Culture and Recreation Fees 1,511,196 1,435,419 2,042,154 606,735 Cemetery Fees 43,000 43,000 60,890 17,890 Administrative Fees 47,000 47,000 74,859 27,859 Misc Rentals 107,000 107,000 190,102 83,102 Pawn Shop Fees 15,200 15,200 10,490 (4,710) Police Service Fees 26,785 26,785 21,266 (5,519) Ambulance Fees 591,241 591,241 491,735 (99,506) Solid Waste and Recycling Fees 844,112 844,112 863,965 19,853 Miscellaneous Services 80,502 83,266 120,066 36,800 Total Charges for Services 3,464,614 3,352,208 4,048,161 695,953 Total Revenues 17,930,945 16,999,132 18,792,731 1,793,599 Expenditures General Government City Council 124,706 $ 149,496 $ 85,406 $ 64,090 $ Non-Departmental 1,348,011 1,317,011 1,051,331 265,680 City Administrator City Administrator 214,771 542,934 393,553 149,381 Human Resources 310,079 289,743 286,891 2,852 City Clerk 191,910 189,991 170,215 19,776 Community Development 370,469 - - - Finance Administrative Services 116,257 115,094 116,563 (1,469) Financial Services 470,696 421,747 403,167 18,580 Information Technologies 586,328 592,545 555,570 36,975 78 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2009 Expenditures (continued) Planning & Building 712,482 751,161 705,952 45,209 General Building Maintenance 755,012 743,452 640,237 103,215 Total General Government 5,200,721 5,113,174 4,408,885 704,289 Judicial City Attorney 210,717 210,717 162,530 48,187 Municipal Court 120,535 119,330 121,720 (2,390) Total Judicial 331,252 330,047 284,250 45,797 Public Safety Police 5,145,498 4,994,988 4,823,178 171,810 Fire 870,575 870,575 797,906 72,669 Ambulance 700,092 686,671 782,713 (96,042) Total Public Safety 6,716,165 6,552,234 6,403,797 148,437 Public Works Administration - Public Works 1,158,127 1,177,884 1,236,851 (58,967) Solid Waste & Recycling 769,000 769,000 789,321 (20,321) Total Public Works 1,927,127 1,946,884 2,026,172 (79,288) Culture and Recreation Administration - Parks, OS, & Golf 130,047 130,047 128,406 1,641 Cemeteries 105,419 105,419 80,560 24,859 Parks 755,984 742,554 730,535 12,019 Open Space Maintenance 299,389 299,389 209,839 89,550 Admin - Recreation & Facility Management 271,939 271,939 318,398 (46,459) Leisure Services 479,797 476,047 507,288 (31,241) Recreation Center 1,337,534 1,326,284 1,243,163 83,121 Public Library 1,116,657 1,084,051 1,124,103 (40,052) Community Life 97,156 123,611 122,749 862 Senior Citizens 318,921 322,849 358,751 (35,902) Total Culture and Recreation 4,912,843 4,882,190 4,823,792 58,398 Capital Outlay 858,454 1,446,381 1,027,098 419,283 Capital Budget Carryover - 333,973 - 333,973 Total Expenditures 19,946,562 20,604,883 18,973,994 1,630,889 Excess (Deficiency) of Revenues Over Expenditures (2,015,617) (3,605,751) (181,263) 3,424,488 79 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2009 Other Financing Sources (Uses) Issuance of Debt 180,000 - - - Transfers In 2,284,058 2,862,514 2,628,430 (234,084) Transfers Out (489,441) (464,696) (461,826) 2,870 Total Other Financing Sources (Uses) 1,974,617 2,397,818 2,166,604 (231,214) Special Items Adjustment of Asset Held for Resale - - (631,968) (631,968) Insurance Proceeds-Boat House - - 105,458 105,458 Total Special Items - - (526,510) (526,510) Net Changes in Fund Balance (41,000) (1,207,933) 1,458,831 2,666,764 Fund Balance, January 1 10,135,265 10,469,238 12,345,261 1,876,023 Fund Balance, December 31, Budgetary Basis 10,094,265 $ 9,261,305 $ 13,804,092 $ 4,542,787 $ See the accompanying independent auditors' report. 80 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Tax 106,280 106,280 121,375 15,095 Sales and Use Tax 52,901 52,901 33,422 (19,479) State Grants - 156,038 174,339 18,301 Rents - Albertson's 49,785 - - - Interest 25,382 17,382 9,427 (7,955) Miscellaneous Revenue 149,893 2,400 195 (2,205) Total Revenues 384,241 335,001 338,758 3,757 Expenditures General Government 102,150 122,981 123,652 (671) Capital Outlay - 170,542 534,740 (364,198) Capital Budget Carryover - 364,198 - 364,198 Total Expenditures 102,150 657,721 658,392 (671) Excess (Deficiency) of Revenue over Expenditures 282,091 (322,720) (319,634) 3,086 Other Financing Sources (Uses) Transfers (Out) - (9,839) (2,381) 7,458 Total Other Financing Sources (Uses) - (9,839) (2,381) 7,458 Net Changes in Fund Balance 282,091 (332,559) (322,015) 10,544 Fund Balance, January 1 546,513 910,711 936,855 26,144 Fund Balance, December 31 828,604 $ 578,152 $ 614,840 $ 36,688 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE URBAN RENEWAL AUTHORITY For the Fiscal Year Ended December 31, 2009 81 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 70,237 $ 70,237 $ 70,200 $ (37) $ Specific Ownership Taxes 4,000 4,000 4,000 - Assessment Principal 565,000 6,795,345 6,795,345 - Assessment Interest 418,600 418,600 (23,539) (442,139) Interest 57,000 57,000 33,234 (23,766) Administrative Fee Revenue 15,000 15,000 15,000 - Miscellanous Revenue 6,500 33,859 33,859 - Total Revenue 1,136,337 7,394,041 6,928,099 (465,942) Expenditures Current General Government 22,554 831,773 795,744 36,029 Debt Service Principal 565,000 6,510,000 6,510,000 - Interest and Fiscal Charges 428,600 210,000 137,579 72,421 Total Expenditures 1,016,154 7,551,773 7,443,323 108,450 Net Change in Fund Balance 120,183 (157,732) (515,224) (357,492) Fund Balance, January 1 2,970,173 2,970,173 3,581,232 611,059 Fund Balance, December 31 3,090,356 $ 2,812,441 $ 3,066,008 $ 253,567 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE EXEMPLA GENERAL IMPROVEMENT DISTRICT For the fiscal year ended December 31, 2009 82 ---PAGE BREAK--- CITY OF LAFAYETTE NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2009 NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the financial statements. On or before September 20, the City Administrator submits to the City Council a proposed budget for the subsequent fiscal year commencing January 1. This budget includes proposed expenditures and the means of financing them. The budget is presented at the fund level, but includes supporting schedules presented at the sub-object (or account) level. The City uses generally accepted accounting principals (GAAP) as the basis for budgeting revenues and expenditures for all funds except for proprietary funds. In the proprietary funds, certain capitalized receipts and disbursements are budgeted along with related revenues and expenses. A Public Hearing on the proposed budget is held before its final adoption to obtain any comments from citizens. On or before the last Thursday in October for the ensuing year, the budget is legally enacted through the adoption of an appropriation ordinance at the fund level. Budget revisions occur at the fund level and may only be made through Council Ordinance. The City Administrator may re-allocate the budget between Departments. Department Heads, with the approval of the City Administrator and Finance Director, may re-allocate the total budget within a Department. The City Council may make additional appropriations during the fiscal year for unanticipated revenues received by the City. Such appropriations are approved on a consensus basis by the City Council throughout the year. After October 1 of the fiscal year, all previous appropriations amendments are formally adopted at the fund level by ordinance. All appropriations, except for capital projects, lapse at year-end. Any unspent appropriations may be carried forward to the subsequent budget year with the approval of a budget amendment by City Council. Capital projects appropriations are automatically carried forward until completion of the projects. As of December 31, 2009, amended budgeted expenditures exceeded beginning budgeted revenues and the original projected fund balance in the Conservation Trust Fund Budget Comparison Schedule. However, the actual expenditures did not exceed the resources available. 83 ---PAGE BREAK--- OTHER SCHEDULES FINANCIAL SECTION This section consists of the following:  Nonmajor Governmental Funds  Internal Service Funds 2009 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Special Revenue Funds Special Revenue Funds are used to account for specific revenue sources that are legally restricted to expenditures for specific purposes. Following are the special revenue funds included in this section:  Ambulance and Fire Fund  Lafayette City Center General Improvement District  Lafayette Corporate Campus General Improvement District  Lafayette Tech Center General Improvement District Capital Projects Funds The Capital Projects Funds are used to account for the acquisition of construction of major capital facilities other than those financed by proprietary fund types. The City’s Capital Projects Funds account for the following capital projects included in this section.  Storm Drainage Fund To account for fees collected on new residential construction and commercial development through the building permit process and expenditures related to the expansion of the City’s storm drainage system due to the development of property within the City.  Legacy Open Space Fund To account for sales and use taxes collected for the acquisition of open space.  Parks, Open Space, & Trails (POST) Open Space Fund To account for sales and use taxes collected for the acquisition, development, and maintenance of parks and open space.  Conservation Trust Fund To account for the accumulation of monies received annually from the proceeds of the Colorado State Lottery. Expenditures related to the maintenance of existing parks and recreation infrastructure are recorded in this fund.  Capital Projects Fund To account for bond proceeds received in April 2008, for street improvements and the construction of an addition to the Recreation Center. 85 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources and payment of bond principal and interest from governmental resources. The City’s Debt Service Fund accounts for the following issues:  Revenue Bonds: Sales and Use Tax Refunding Bonds, Series 2003 ($6,360,000) – to accumulate monies for the payment of these bonds, financed solely by sales and use tax revenues. These bonds are due in annual installments plus interest, until maturity in 2011.  Fire/Library Bonds: General Obligation Fire/Library Bonds, Series 1998 ($4,695,000) – to accumulate monies for the payment of these bonds, financed by general ad valorem taxes levied against all taxable property within the City. These bonds are due in annual installments plus interest, until maturity in 2017.  Police Bonds: General Obligation Bonds, Series 2005 ($6,000,000) – financed by general ad valorem taxes levied against all taxable property within the City. The bond principal is due annually, including interest (paid semi-annually) until maturity in 2025.  Revenue Bonds: Sales and Use Tax Revenue Bonds, Series 2008 ($6,910,000) – financed by sales and use tax revenues for the replacement of streets and roads and an addition to the recreation center. The bond principal is due annually, including interest (paid semi- annually) until maturity in 2019.  Capital Leases: The Debt Service Fund also accounts for Capital Leases on the Sister Carmen building, ambulance service equipment, recycling carts, a fire truck, and energy improvements. 86 ---PAGE BREAK--- Special Capital Debt Revenue Projects Service Funds Funds Fund Total Assets Cash and Investments 1,269,368 $ 2,274,927 $ 81,933 $ 3,626,228 $ Accrued Interest Receivable 7,858 33,761 3,258 44,877 Accounts Receivable 7,620 - 118 7,738 Property Taxes Receivable 2,135,432 - 851,686 2,987,118 Restricted Cash and Investments - 3,687,756 - 3,687,756 Special Assessments Receivable 109,850 - - 109,850 Total Assets 3,530,128 $ 5,996,444 $ 936,995 $ 10,463,567 $ Liabilities and Fund Balance Liabilities Accounts Payable 550 $ 23,347 $ 5,000 $ 28,897 $ Accounts Payable from Restrictd Assets - 778 - 778 Deposits Payable 75,000 67,294 - 142,294 Accrued Liabilities 3,114 - - 3,114 Deferred Revenues 2,245,282 - 851,686 3,096,968 Total Liabilities 2,323,946 91,419 856,686 3,272,051 Fund Balance Reserved for GID Expenditures 385,986 - - 385,986 Reserved for Capital Projects - 5,905,025 - 5,905,025 Unreserved, reported by Special Revenue Funds 820,196 - - 820,196 Debt Service Fund - - 80,309 80,309 Total Fund Balance 1,206,182 5,905,025 80,309 7,191,516 Total Liabilities and Fund Balance 3,530,128 $ 5,996,444 $ 936,995 $ 10,463,567 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 87 ---PAGE BREAK--- Special Capital Debt Revenue Projects Service Funds Funds Fund Total Revenues Taxes Property Tax 2,017,689 $ - $ 988,162 $ 3,005,851 $ Specific Ownership Tax 106,060 - - 106,060 Building Use Tax - 88,894 46,299 135,193 Vehicle Use Tax - 147,158 460,431 607,589 General Sales Tax - 1,223,544 532,657 1,756,201 Total Taxes 2,123,749 1,459,596 2,027,549 5,610,894 Intergovernmental - State Grants - 234,176 - 234,176 Interest 17,066 118,695 15,659 151,420 Contributions and Misc Grants - 19,250 - 19,250 Miscellaneous Revenue - - 20,951 20,951 Total Revenues 2,140,815 1,831,717 2,064,159 6,036,691 Expenditures Current General Government 49,111 7,360 34,360 90,831 Public Safety 166,524 - - 166,524 Public Works - 65,631 - 65,631 Cultural and Recreation - 25,732 - 25,732 Capital Outlay 232,160 4,092,577 - 4,324,737 Debt Service Capital Lease and Loan Payments - - 344,462 344,462 Principal 80,000 - 1,535,000 1,615,000 Interest and Fiscal Charges 361,475 - 719,115 1,080,590 Total Expenditures 889,270 4,191,300 2,632,937 7,713,507 Excess (Deficiency) of Revenues over Expenditures 1,251,545 (2,359,583) (568,778) (1,676,816) Other Financing Sources (Uses) Transfers In - - 461,826 461,826 Transfers (Out) (427,214) (650,314) - (1,077,528) Total Other Financing Sources (Uses) (427,214) (650,314) 461,826 (615,702) Net Change in Fund Balance 824,331 (3,009,897) (106,952) (2,292,518) Fund Balance, January 1 381,851 8,914,922 187,261 9,484,034 Fund Balance, December 31 1,206,182 $ 5,905,025 $ 80,309 $ 7,191,516 See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2009 88 ---PAGE BREAK--- Lafayette Lafayette Lafayette Ambulance City Center Corp Campus Tech Center and Fire GID GID GID Total Assets Cash and Investments 812,864 $ 90,631 $ 361,912 $ 3,961 $ 1,269,368 $ Accrued Interest Receivable 5,015 581 2,193 69 7,858 Accounts Receivable 5,981 283 890 466 7,620 Property Taxes Receivable 1,648,424 80,989 246,221 159,798 2,135,432 Special Assessments Receivable - - 109,850 - 109,850 Total Assets 2,472,284 $ 172,484 $ 721,066 $ 164,294 $ 3,530,128 $ Liabilities and Fund Balance Liabilities Accounts Payable 550 $ - $ - $ - $ 550 $ Deposits Payable - 75,000 - - 75,000 Accrued Liabilities 3,114 - - - 3,114 Deferred Revenues 1,648,424 80,989 356,071 159,798 2,245,282 Total Liabilities 1,652,088 155,989 356,071 159,798 2,323,946 Fund Balance Reserved for GID Expenditures - 16,495 364,995 4,496 385,986 Unreserved 820,196 - - - 820,196 Total Fund Balance 820,196 16,495 364,995 4,496 1,206,182 Total Liabilities and Fund Balance 2,472,284 $ 172,484 $ 721,066 $ 164,294 $ 3,530,128 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2009 89 ---PAGE BREAK--- Lafayette Lafayette Lafayette Ambulance City Center Corp Campus Tech Center and Fire GID GID GID Total Revenues Property Taxes 1,570,750 $ 74,886 $ 242,921 $ 129,132 $ 2,017,689 $ Specific Ownership Taxes 83,034 3,708 12,677 6,641 106,060 Total Taxes 1,653,784 78,594 255,598 135,773 2,123,749 Interest 8,017 1,918 7,082 49 17,066 Total Revenues 1,661,801 80,512 262,680 135,822 2,140,815 Expenditures Current General Government 15,707 9,523 13,944 9,937 49,111 Public Safety 166,524 - - - 166,524 Capital Outlay 232,160 - - - 232,160 Debt Service Principal - 40,000 40,000 - 80,000 Interest and Fiscal Charges - 35,075 204,000 122,400 361,475 Total Expenditures 414,391 84,598 257,944 132,337 889,270 Excess (Deficiency) of Revenues over Expenditures 1,247,410 (4,086) 4,736 3,485 1,251,545 Other Financing Sources (Uses) Transfers (Out) (427,214) - - - (427,214) Total Other Financeing Sources (Uses) (427,214) - - - (427,214) Net Change in Fund Balance 820,196 (4,086) 4,736 3,485 824,331 Fund Balance, January 1 - 20,581 360,259 1,011 381,851 Fund Balance, December 31 820,196 $ 16,495 $ 364,995 $ 4,496 $ 1,206,182 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For the fiscal year ended December 31, 2009 90 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes - $ 1,578,863 $ 1,570,750 $ (8,113) $ Specific Ownership Taxes - - 83,034 83,034 Interest - - 8,017 8,017 Total Revenue - 1,578,863 1,661,801 82,938 Expenditures Current General Government - - 15,707 (15,707) Public Safety - 329,429 166,524 162,905 Capital Outlay - 213,000 232,160 (19,160) Total Expenditures - 542,429 414,391 128,038 Excess (Deficiency) of Revenues over Expenditures - 1,036,434 1,247,410 210,976 Other Financing Sources (Uses) Transfers (Out) - (414,040) (427,214) (13,174) Total Other Financeing Sources (Uses) - (414,040) (427,214) (13,174) Net Change in Fund Balance - 622,394 820,196 197,802 Fund Balance, January 1 - - - - Fund Balance, December 31 - $ 622,394 $ 820,196 $ 197,802 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE AMBULANCE AND FIRE SPECIAL REVENUE FUND For the fiscal year ended December 31, 2009 91 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 76,929 $ 76,929 $ 74,886 $ (2,043) $ Specific Ownership Taxes 5,100 5,100 3,708 (1,392) Interest 3,300 3,300 1,918 (1,382) Total Revenue 85,329 85,329 80,512 (4,817) Expenditures Current General Government 10,254 10,254 9,523 731 Debt Service Principal 40,000 40,000 40,000 - Interest and Fiscal Charges 35,075 35,075 35,075 - Total Expenditures 85,329 85,329 84,598 731 Net Change in Fund Balance - - (4,086) (4,086) Fund Balance, January 1 20,005 20,005 20,581 576 Fund Balance, December 31 20,005 $ 20,005 $ 16,495 $ (3,510) $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE CITY CENTER GID SPECIAL REVENUE FUND For the fiscal year ended December 31, 2009 92 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 242,067 $ 242,067 $ 242,921 $ 854 $ Specific Ownership Taxes 10,314 10,314 12,677 2,363 Interest 6,750 6,750 7,082 332 Total Revenue 259,131 259,131 262,680 3,549 Expenditures Current General Government 15,131 15,131 13,944 1,187 Debt Service Principal 40,000 40,000 40,000 - Interest and Fiscal Charges 204,000 204,000 204,000 - Total Expenditures 259,131 259,131 257,944 1,187 Net Change in Fund Balance - - 4,736 4,736 Fund Balance, January 1 200,946 200,946 360,259 159,313 Fund Balance, December 31 200,946 $ 200,946 $ 364,995 $ 164,049 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE CORPORATE CAMPUS GID SPECIAL REVENUE FUND For the fiscal year ended December 31, 2009 93 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 126,802 $ 126,802 $ 129,132 $ 2,330 $ Specific Ownership Taxes 6,000 6,000 6,641 641 Interest 1,500 1,500 49 (1,451) Total Revenue 134,302 134,302 135,822 1,520 Expenditures Current General Government 11,902 11,902 9,937 1,965 Debt Service Interest and Fiscal Charges 122,400 122,400 122,400 - Total Expenditures 134,302 134,302 132,337 1,965 Net Change in Fund Balance - - 3,485 3,485 Fund Balance, January 1 115 115 1,011 896 Fund Balance, December 31 115 $ 115 $ 4,496 $ 4,381 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE TECH CENTER GID SPECIAL REVENUE FUND For the fiscal year ended December 31, 2009 94 ---PAGE BREAK--- Storm Legacy POST Conservation Capital Drainage Open Space Open Space Trust Projects Total Assets Cash and Investments 132,907 $ 64,470 $ 1,796,959 $ 213,297 $ 67,294 $ 2,274,927 $ Accrued Interest Receivable 700 - 10,335 1,054 21,672 33,761 Restricted Cash and Investments - - - - 3,687,756 3,687,756 Total Assets 133,607 $ 64,470 $ 1,807,294 $ 214,351 $ 3,776,722 $ 5,996,444 $ Liabilities and Fund Balance Liabilities Accounts Payable 140 $ - $ 23,207 $ - $ - $ 23,347 $ Accounts Payable from Restricted Assets - - - - 778 778 Deposits Payable - - - - 67,294 67,294 Total Liabilities 140 - 23,207 - 68,072 91,419 Fund Balance Reserved for Capital Projects 133,467 64,470 1,784,087 214,351 3,708,650 5,905,025 Total Fund Balance 133,467 64,470 1,784,087 214,351 3,708,650 5,905,025 Total Liabilities and Fund Balance 133,607 $ 64,470 $ 1,807,294 $ 214,351 $ 3,776,722 $ 5,996,444 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2009 95 ---PAGE BREAK--- Storm Legacy POST Conservation Capital Drainage Open Space Open Space Trust Projects Total Revenues Taxes Building Use Tax - $ 44,447 $ 44,447 $ - $ - $ 88,894 $ Vehicle Use Tax - 73,579 73,579 - - 147,158 General Sales & Use Tax - 611,772 611,772 - - 1,223,544 Total Taxes - 729,798 729,798 - - 1,459,596 Intergovernmental - State Grants - - - 234,176 - 234,176 Interest 7,682 20,648 32,699 4,732 52,934 118,695 Contributions and Misc Grants - - 19,250 - - 19,250 Total Revenues 7,682 750,446 781,747 238,908 52,934 1,831,717 Expenditures Current General Government - 3,680 3,680 - - 7,360 Public Works 65,631 - - - - 65,631 Cultural & Recreation - 11,198 10,983 3,551 - 25,732 Capital Outlay 421,007 1,758,347 607,558 394,608 911,057 4,092,577 Total Expenditures 486,638 1,773,225 622,221 398,159 911,057 4,191,300 Excess (Deficiency) of Revenues over Expenditures (478,956) (1,022,779) 159,526 (159,251) (858,123) (2,359,583) Other Financing Sources (Uses) Transfers (Out) - - (650,314) - - (650,314) Total Other Financeing Sources (Uses) - - (650,314) - - (650,314) Net Changes in Fund Balance (478,956) (1,022,779) (490,788) (159,251) (858,123) (3,009,897) Fund Balance, January 1 612,423 1,087,248 2,274,875 373,603 4,566,773 8,914,922 Fund Balance, December 31 133,467 $ 64,469 $ 1,784,087 $ 214,352 $ 3,708,650 $ 5,905,025 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECTS FUNDS For the fiscal year ended December 31, 2009 96 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Interest 18,000 $ 18,000 $ 7,682 $ (10,318) $ Total Revenues 18,000 18,000 7,682 (10,318) Expenditures Current Public Works 80,000 80,000 65,631 14,369 Capital Outlay 550,000 550,000 421,007 128,993 Total Expenditures 630,000 630,000 486,638 143,362 Net Change in Fund Balance (612,000) (612,000) (478,956) (133,044) Fund Balance, January 1 950,962 950,962 612,423 (338,539) Fund Balance, December 31 338,962 $ 338,962 $ 133,467 $ (205,495) $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE STORM DRAINAGE CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2009 97 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax 48,667 $ 48,667 $ 44,447 $ (4,220) $ Vehicle Use Tax 75,075 75,075 73,579 (1,496) General Sales & Use Tax 607,163 607,163 611,772 4,609 Total Taxes 730,905 730,905 729,798 (1,107) Interest 19,500 19,500 20,648 1,148 Total Revenues 750,405 750,405 750,446 41 Expenditures Current General Government 4,200 4,200 3,680 520 Culture & Recreation - - 11,198 (11,198) Capital Outlay 8,500 1,808,500 1,758,347 50,153 Total Expenditures 12,700 1,812,700 1,773,225 39,475 Net Change in Fund Balance 737,705 (1,062,295) (1,022,779) 39,516 Fund Balance, January 1 885,729 1,087,248 1,087,248 - Fund Balance, December 31 1,623,434 $ 24,953 $ 64,469 $ 39,516 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LEGACY OPEN SPACE CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2009 98 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax 48,667 $ 48,667 $ 44,447 $ (4,220) $ Vehicle Use Tax 75,075 75,075 73,579 (1,496) General Sales & Use Tax 607,163 607,163 611,772 4,609 Total Taxes 730,905 730,905 729,798 (1,107) Interest 37,500 37,500 32,699 (4,801) Contributions and Misc Grants - - 19,250 19,250 Total Revenues 768,405 768,405 781,747 13,342 Expenditures Current General Government 4,200 4,200 3,680 520 Cultural & Recreation - - 10,983 (10,983) Capital Outlay 518,500 958,476 607,558 350,918 Total Expenditures 522,700 962,676 622,221 340,455 Excess (Deficiency) of Revenues over Expenditures 245,705 (194,271) 159,526 353,797 Other Financing Sources (Uses) Transfers Out (791,564) (791,564) (650,314) 141,250 Total Other Financing Sources (Uses) (791,564) (791,564) (650,314) 141,250 Net Change in Fund Balance (545,859) (985,835) (490,788) 495,047 Fund Balance, January 1 1,975,970 2,274,875 2,274,875 - Fund Balance, December 31 1,430,111 $ 1,289,040 $ 1,784,087 $ 495,047 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE POST OPEN SPACE AND PARK DEVELOPMENT CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2009 99 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Intergovernmental - State Grants 211,000 $ 211,000 $ 234,176 $ 23,176 $ Interest 3,000 3,000 4,732 1,732 Total Revenues 214,000 214,000 238,908 24,908 Expenditures Current Cultural and Recreation - 5,625 3,551 2,074 Capital Outlay 310,000 573,303 394,608 178,695 Total Expenditures 310,000 578,928 398,159 180,769 Excess (Deficiency) of Revenues over Expenditures (96,000) (364,928) (159,251) 205,677 Net Change in Fund Balance (96,000) (364,928) (159,251) 205,677 Fund Balance, January 1 215,364 215,364 373,603 158,239 Fund Balance, December 31 119,364 $ (149,564) $ 214,352 $ 363,916 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE CONSERVATION TRUST CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2009 100 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Interest 135,000 $ 135,000 $ 52,934 $ (82,066) $ Total Revenues 135,000 135,000 52,934 (82,066) Expenditures Capital Outlay - - 911,057 (911,057) Capital Budget Carryover - 5,600,000 - 5,600,000 Total Expenditures - 5,600,000 911,057 4,688,943 Excess (Deficiency) of Revenues over Expenditures 135,000 (5,465,000) (858,123) 4,606,877 Net Change in Fund Balance 135,000 (5,465,000) (858,123) 4,606,877 Fund Balance, January 1 179,747 5,779,747 4,566,773 (1,212,974) Fund Balance, December 31 314,747 $ 314,747 $ 3,708,650 $ 3,393,903 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS CAPITAL PROJECTS FUND For the fiscal year ended December 31, 2009 101 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Tax 993,356 $ 993,356 $ 988,162 $ (5,194) $ Building Use Tax 80,982 80,982 46,299 (34,683) Vehicle Use Tax 597,769 597,769 460,431 (137,338) General Sales & Use Tax 360,637 360,637 532,657 172,020 Interest 6,000 6,000 15,659 9,659 Miscellaneous Revenue - - 20,951 20,951 Total Revenues 2,038,744 2,038,744 2,064,159 25,415 Expenditures Current General Government 28,367 28,367 34,360 (5,993) Debt Service Capital Lease Payments 489,441 489,441 344,462 144,979 Principal 1,535,000 1,535,000 1,535,000 - Interest and Fiscal Charges 601,752 601,752 719,115 (117,363) Total Expenditures 2,654,560 2,654,560 2,632,937 21,623 Excess (Deficiency) of Revenue over Expenditures (615,816) (615,816) (568,778) 47,038 Other Financing Sources (Uses) Transfers In 489,441 489,441 461,826 (27,615) Total Other Financing Sources (Uses) 489,441 489,441 461,826 (27,615) Net Changes in Fund Balance (126,375) (126,375) (106,952) 19,423 Fund Balance, January 1 161,888 161,888 187,261 25,373 Fund Balance, December 31 35,513 $ 35,513 $ 80,309 $ 44,796 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE DEBT SERVICE FUND For the Fiscal Year Ended December 31, 2009 102 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO INTERNAL SERVICE FUNDS December 31, 2009 Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursement basis. The City’s Internal Service Funds account for the following services: Employee Benefit Fund To account for the allocation of costs associated with employee insurance plans. Insurance Fund To account for the allocation of costs associated with the City’s insurance plans. 103 ---PAGE BREAK--- Employee Benefit Insurance Fund Fund Total Assets Current Assets Cash and Investments 605,918 $ 709,975 $ 1,315,893 $ Accounts Receivable - 745 745 Accrued Interest Receivable 3,440 4,047 7,487 Prepaid Items 160,196 - 160,196 Total Current Assets 769,554 714,767 1,484,321 Liabilities Current Liabilities Accounts Payable 775 8,195 8,970 Claims Payable 12,903 9,600 22,503 Compensated Absences Due in One Year 484,778 - 484,778 Total Current Liabilities 498,456 17,795 516,251 Net Assets - Unrestricted 271,098 $ 696,972 $ 968,070 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2009 104 ---PAGE BREAK--- Employee Benefit Insurance Fund Fund Total Operating Revenues City Contributions 1,782,579 $ 521,076 $ 2,303,655 $ Miscellaneous 48,983 69,258 118,241 Total Operating Revenue 1,831,562 590,334 2,421,896 Operating Expenses Premiums and Claims Paid 1,777,201 509,581 2,286,782 Wellness Program 15,070 8,635 23,705 Miscellaneous 71,205 - 71,205 Total Operating Expenses 1,863,476 518,216 2,381,692 Operating Income (Loss) (31,914) 72,118 40,204 Nonoperating Interest Revenue 8,395 7,111 15,506 Change in Net Assets (23,519) 79,229 55,710 Total Net Assets, January 1 294,617 617,743 912,360 Total Net Assets, December 31 271,098 $ 696,972 $ 968,070 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS For the fiscal year ended December 31, 2009 COMBINING STATEMENT OF REVENUES, EXPENSES, AND 105 ---PAGE BREAK--- Employee Benefit Insurance Fund Fund Total Cash Flows From Operating Activities Receipts from General and Proprietary Funds 1,782,579 $ 521,076 $ 2,303,655 $ Miscellaneous Receipts - COBRA and Other 48,983 69,258 118,241 Payments to Insurance Companies (1,764,528) (518,613) (2,283,141) Payments for Wellness Program (15,070) (8,635) (23,705) Payments to Employees (71,205) - (71,205) Net Cash (Used) Provided by Operating Activities (19,241) 63,086 43,845 Cash flows From Investing Activities Interest Received 9,613 8,091 17,704 Net Cash Provided By Investing Activities 9,613 8,091 17,704 Net Increase (Decrease) in Cash and Investments (9,628) 71,177 61,549 Cash and Investments - January 1 615,546 638,798 1,254,344 Cash and Investments - December 31 605,918 $ 709,975 $ 1,315,893 $ Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income(Loss) (31,914) $ 72,118 $ 40,204 $ Adjustments to Reconcile Income (Loss) From Operating Activities (Increase) Decrease in Accounts Receivable - 14,990 14,990 (Increase) Decrease in Prepaid Expense (1,862) - (1,862) Increase (Decrease) in Accounts and Claims Payable 12,326 (24,022) (11,696) Increase (Decrease) in Compensated Absences 2,209 - 2,209 Total Adjustments 12,673 (9,032) 3,641 Net Cash Provided (Used) by Operating Activities (19,241) $ 63,086 $ 43,845 $ See the accompanying independent auditors' report. Operations to Net Cash Provided (Used) by CITY OF LAFAYETTE, COLORADO INTERNAL SERVICE FUNDS For the fiscal year ended December 31, 2009 COMBINING STATEMENT OF CASH FLOWS 106 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues City Contributions 1,692,999 $ 1,692,999 $ 1,782,579 $ 89,580 $ Employee Contributions 15,600 15,600 - (15,600) Interest Income 15,000 15,000 8,395 (6,605) Miscellaneous Income 5,000 5,000 48,983 43,983 Total Revenues 1,728,599 1,728,599 1,839,957 111,358 Expenditures Premiums Paid 1,761,537 1,789,737 1,777,201 12,536 Wellness Program 20,434 20,434 15,070 5,364 Miscellaneous 44,437 71,657 71,205 452 Total Expenditures 1,826,408 1,881,828 1,863,476 18,352 Excess (Deficiency) of Revenue over Expenditures (97,809) (153,229) (23,519) 129,710 Total Net Assets, January 1 430,185 430,185 294,617 (135,568) Total Net Assets, December 31 332,376 $ 276,956 $ 271,098 $ (5,858) $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFIT FUND For the Fiscal Year Ended December 31, 2009 107 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues City Contributions 521,076 $ 521,076 $ 521,076 $ - $ Interest Income 15,000 15,000 7,111 (7,889) Miscellaneous Income 26,000 26,000 69,258 43,258 Total Revenues 562,076 562,076 597,445 35,369 Expenditures Premiums Paid 556,076 592,576 509,581 82,995 Wellness Program 6,000 6,000 8,635 (2,635) Total Expenditures 562,076 598,576 518,216 80,360 Excess (Deficiency) of Revenue over Expenditures - (36,500) 79,229 115,729 Total Net Assets, January 1 577,182 577,182 617,743 40,561 Total Net Assets, December 31 577,182 $ 540,682 $ 696,972 $ 156,290 $ See the accompanying independent auditors' report. BUDGETARY COMPARISON SCHEDULE INSURANCE FUND For the Fiscal Year Ended December 31, 2009 CITY OF LAFAYETTE, COLORADO 108 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Metered Water Sales 4,599,565 $ 4,599,565 $ 4,727,087 $ 127,522 $ Interest Revenue 720,000 480,000 323,094 (156,906) Other 121,000 121,000 101,909 (19,091) Payment in Lieu of Water 321,344 321,344 401,987 80,643 Tap Fees 1,493,760 1,356,060 283,190 (1,072,870) Total Revenues 7,255,669 6,877,969 5,837,267 (1,040,702) Expenditures Administration 360,649 360,649 356,869 3,780 Source of Water Supply 449,913 449,913 357,154 92,759 Water Treatment 1,632,948 1,632,948 1,404,257 228,691 Water Transmission and Distribution 1,163,449 863,449 665,851 197,598 Construction and Capital Improvements 2,758,000 3,591,445 1,271,150 2,320,295 Loss on Disposal of Capital Assets - - 6,171 (6,171) Debt Service Principal Retirement 657,615 657,615 657,615 - Interest Expense 877,252 877,252 890,948 (13,696) Bond Fee 1,900 1,900 250 1,650 Amortization 44,204 44,204 29,013 15,191 Transfers to Other Funds 581,925 551,709 704,009 (152,300) Total Expenditures 8,527,855 9,031,084 6,343,287 2,687,797 Excess (Deficiency) of Revenue over Expenditures (1,272,186) $ (2,153,115) $ (506,020) 1,647,095 $ Total Net Assets, January 1 77,544,661 Total Net Assets, December 31 77,038,641 GAAP Adjustments Depreciation (1,646,108) Principal Retirement 657,615 Construction and Capital Improvements 1,271,150 Developer Dedications 1,296,541 Adjusted Total Net Assets, December 31 78,617,839 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) WATER UTILITY For the Fiscal Year Ended December 31, 2009 109 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Waste Water Collection Fees 1,630,401 $ 1,630,401 $ 1,647,423 $ 17,022 $ Interest Revenue 174,226 122,226 62,616 (59,610) Other 4,200 4,200 5,986 1,786 Tap Fees 996,180 906,080 100,306 (805,774) Total Revenues 2,805,007 2,662,907 1,816,331 (846,576) Expenditures Administration 198,374 198,374 181,978 16,396 Waste Water Treatment 963,302 963,262 918,574 44,688 Waste Water Collection 428,488 428,488 512,084 (83,596) Construction and Capital Improvements 1,169,000 1,250,156 658,266 591,890 Loss on Disposal of Capital Assets - - 2,271 (2,271) Debt Service Principal Retirement 403,590 403,590 403,570 20 Interest Expense 249,695 249,695 221,627 28,068 Bond Fee 1,400 1,400 - 1,400 Amortization 1,166 1,166 3,255 (2,089) Transfers to Other Funds 246,363 234,995 207,318 27,677 Total Expenditures 3,661,378 3,731,126 3,108,943 622,183 Excess (Deficiency) of Revenue over Expenditures (856,371) $ (1,068,219) $ (1,292,612) (224,393) $ Total Net Assets, January 1 22,208,061 Total Net Assets, December 31 20,915,449 GAAP Adjustments Depreciation (869,617) Principal Retirement 403,570 Construction and Capital Improvements 658,266 Developer Dedications 278,423 Adjusted Total Net Assets, December 31 21,386,091 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) WATER RECLAMATION For the Fiscal Year Ended December 31, 2009 110 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Golf Sales and Services 2,596,316 $ 2,596,316 $ 2,113,607 $ (482,709) $ Interest Revenue 9,623 9,623 2,514 (7,109) Other 15,000 15,000 23,946 8,946 Total Revenues 2,620,939 2,620,939 2,140,067 (480,872) Expenditures Administration 191,613 191,613 144,226 47,387 Golf Maintenance Operations 700,581 700,581 643,970 56,611 Golf Club House Operations 557,805 557,805 491,893 65,912 Golf Food Service Operations 240,955 240,955 211,372 29,583 Construction and Capital Improvements 196,000 196,000 7,079 188,921 Loss on Disposal of Capital Assets - - 1,893 (1,893) Debt Service Principal 48,100 48,100 48,100 - Lease Principal 51,690 51,690 48,785 2,905 Interest Expense 18,226 18,226 21,131 (2,905) Transfers to Other Funds 602,197 602,197 572,195 30,002 Total Expenditures 2,607,167 2,607,167 2,190,644 416,523 Excess (Deficiency) of Revenue over Expenditures 13,772 $ 13,772 $ (50,577) (64,349) $ Total Net Assets, January 1 1,164,482 Total Net Assets, December 31 1,113,905 GAAP Adjustments Depreciation (172,503) Principal Retirement 96,885 Construction and Capital Improvements 7,079 Adjusted Total Net Assets, December 31 1,045,366 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO GOLF COURSE For the Fiscal Year Ended December 31, 2009 BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) 111 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Storm Water Collection Fees 630,000 $ 630,000 $ 662,255 $ 32,255 $ Interest Revenue 27,000 27,000 19,980 (7,020) Other - - 3,003 3,003 Storm Water Development Fees 118,113 118,113 - (118,113) Total Revenues 775,113 775,113 685,238 (89,875) Expenditures Administration 93,910 120,910 53,321 67,589 Storm Water Collection 187,229 187,229 162,924 24,305 Construction and Capital Improvements 194,000 234,492 134,906 99,586 Transfers to Other Funds 62,009 62,009 64,999 (2,990) Total Expenditures 537,148 604,640 416,150 188,490 Excess (Deficiency) of Revenue over Expenditures 237,965 $ 170,473 $ 269,088 98,615 $ Total Net Assets, January 1 1,428,878 Toptal Net Assets, December 31 1,697,966 GAAP Adjustments Depreciation (2,024) Construction and Capital Improvements 134,906 Adjusted Total Net Assets, December 31 1,830,848 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE (NON-GAAP BUDGETARY BASIS) STORM WATER For the Fiscal Year Ended December 31, 2009 112 ---PAGE BREAK--- STATISTICAL SECTION For the year ended December 31, 2009, the Statistical Tables Section provides trends, statistical and demographic information, and continuing disclosure information. 2009 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT INDEX FOR THE STATISTICAL SECTION For the Fiscal Year Ended December 31, 2009 FINANCIAL TRENDS These schedules show the changes in the city’s financial position over time 115 REVENUE CAPACITY Schedules that assist in the assessment of the city’s local revenue sources. 127 DEBT CAPACITY These schedules aid in the analysis of the city’s current level of debt, and it’s ability to issue debt in the future. 131 DEMOGRAPHIC AND ECONOMIC INFORMATION Schedules containing indicators that depict the environment in which the city’s financial activities take place. 139 OPERATING INFORMATION Service and infrastructure data to help relate the financial information to the services and activities provided by the city. 140 114 ---PAGE BREAK--- 2001 2002 2003 2004 2005 Governmental activities Invested in capital assets, net of related debt 20,624,081 $ 11,299,168 $ 14,374,939 $ 22,570,911 $ 30,764,183 $ Restricted 4,917,165 3,547,614 10,033,284 10,776,990 6,720,920 Unrestricted 4,511,760 18,659,528 15,398,318 12,482,944 12,048,717 Total governmental activities net assets 30,053,006 $ 33,506,310 $ 39,806,541 $ 45,830,845 $ 49,533,820 $ Business-type activities Invested in capital assets, net of related debt 46,434,767 $ 52,484,343 $ 49,370,593 $ 57,862,898 $ 60,662,135 $ Restricted 6,451,664 2,551,168 9,493,472 - - Unrestricted 15,988,406 15,499,527 11,666,525 17,516,627 19,009,607 Total business-type activities net assets 68,896,687 $ 70,535,038 $ 70,530,590 $ 75,379,525 $ 79,671,607 $ Invested in capital assets, net of related debt 67,058,848 $ 63,783,511 $ 63,745,532 $ 80,433,809 $ 91,426,318 $ Restricted 11,368,829 6,098,782 19,526,756 10,776,990 6,720,920 Unrestricted 20,500,166 34,159,055 27,064,843 29,999,571 31,058,324 Total primary governmental net assets 98,927,843 $ 104,041,348 $ 110,337,131 $ 121,210,370 $ 129,205,427 $ Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 CITY OF LAFAYETTE, COLORADO NET ASSETS, LAST NINE YEARS SCHEDULE 1 For the Fiscal Year Ended December 31, 2009 115 ---PAGE BREAK--- 2006 2007 2008 2009 Governmental activities Invested in capital assets, net of related debt 33,229,175 $ 94,030,382 $ 91,484,033 $ 107,348,070 $ Restricted 8,449,975 9,669,215 14,609,426 8,202,961 Unrestricted 13,686,208 15,989,734 16,783,799 18,290,748 Total governmental activities net assets 55,365,358 $ 119,689,331 $ 122,877,258 $ 133,841,779 $ Business-type activities Invested in capital assets, net of related debt 61,257,444 $ 75,356,639 $ 74,995,070 $ 74,987,290 $ Restricted - - - - Unrestricted 21,681,488 25,503,907 27,351,012 27,892,854 Total business-type activities net assets 82,938,932 $ 100,860,546 $ 102,346,082 $ 102,880,144 $ Invested in capital assets, net of related debt 94,486,619 $ 169,387,021 $ 166,479,103 $ 182,335,360 $ Restricted 8,449,975 9,669,215 14,609,426 8,202,961 Unrestricted 35,367,696 41,493,641 44,134,811 46,183,602 Total primary governmental net assets 138,304,290 $ 220,549,877 $ 225,223,340 $ 236,721,923 $ 116 ---PAGE BREAK--- 2001 2002 2003 2004 2005 Expenses Governmental activities: General government 4,115,737 $ 3,551,255 $ 3,943,450 $ 4,090,732 $ 4,137,230 $ Judicial 338,231 351,190 298,156 279,656 299,968 Public safety 4,028,317 4,447,521 4,544,974 5,092,445 5,589,417 Public works 1,368,523 1,435,266 1,570,915 1,526,742 1,730,313 Culture and recreation 2,932,467 4,276,140 4,509,569 4,601,780 4,915,325 Interest on long-term debt 1,208,780 1,191,417 1,262,835 1,214,491 1,304,370 Total governmental activities expenses 13,992,055 $ 15,252,789 $ 16,129,899 $ 16,805,846 $ 17,976,623 $ Business-type activities: Water 2,862,587 $ 3,475,347 $ 4,108,398 $ 4,512,239 $ 4,509,549 $ Water reclamation 1,247,345 1,315,171 1,742,104 2,178,177 2,248,884 Golf course 1,732,443 1,721,011 1,782,439 1,523,687 1,644,464 Storm water - - - - - Total business-type activities expenses 5,842,375 6,511,529 7,632,941 8,214,103 8,402,897 Total primary governmental expenses 19,834,430 $ 21,764,318 $ 23,762,840 $ 25,019,949 $ 26,379,520 $ Program Revenues Governmental activities: Program revenues Charges for services General government 1,010,477 $ 1,822,817 $ 1,541,682 $ 1,051,805 $ 1,149,601 $ Judicial 160,335 248,467 388,147 438,660 447,101 Public safety 16,310 10,555 33,520 29,908 47,381 Public works 117,000 117,000 265,904 302,098 281,256 Culture and recreation 1,216,941 1,172,749 1,234,250 1,312,464 1,411,720 Total charges for services 2,521,063 3,371,588 3,463,503 3,134,935 3,337,059 Operating grants and contributions 922,497 949,277 1,158,588 984,653 913,437 Capital grants and contributions 1,453,120 2,015,516 2,456,336 4,784,311 2,253,872 Total governmental activities program revenues 4,896,680 $ 6,336,381 $ 7,078,427 $ 8,903,899 $ 6,504,368 $ Business-type activities: Program revenues Charges for services Water 3,823,050 $ 2,779,487 $ 3,755,408 $ 3,793,791 $ 4,923,757 $ Water reclamation 1,219,227 1,326,667 1,386,525 1,518,004 1,524,581 Storm water - - - - - Golf course 2,227,210 2,183,541 2,082,080 1,979,585 2,206,578 Total charges for services 7,269,487 6,289,695 7,224,013 7,291,380 8,654,916 Operating grants and contributions 12,150 - - - - Capital grants and contributions 6,091,211 2,328,562 2,272,411 6,636,596 5,048,166 Total business-type activities program revenues 13,372,848 8,618,257 9,496,424 13,927,976 13,703,082 Total primary government program revenues 18,269,528 $ 14,954,638 $ 16,574,851 $ 22,831,875 $ 20,207,450 $ CITY OF LAFAYETTE, COLORADO CHANGES IN NET ASSETS, LAST NINE YEARS SCHEDULE 2 For the Fiscal Year Ended December 31, 2009 117 ---PAGE BREAK--- 2006 2007 2008 2009 Expenses Governmental activities: General government 4,502,008 $ 4,590,325 $ 5,440,531 $ 5,576,356 $ Judicial 302,712 310,187 290,116 284,210 Public safety 5,985,716 6,913,573 7,382,185 7,215,606 Public works 2,035,038 3,633,406 4,916,059 4,607,496 Culture and recreation 4,895,446 5,295,757 5,698,114 5,872,607 Interest on long-term debt 1,530,509 1,492,229 1,514,513 1,261,069 Total governmental activities expenses 19,251,429 $ 22,235,477 $ 25,241,518 $ 24,817,344 $ Business-type activities: Water 5,026,708 $ 5,138,896 $ 5,486,174 $ 5,356,621 $ Water reclamation 2,470,857 2,611,185 2,889,586 2,709,406 Golf course 1,625,813 1,795,403 1,836,742 1,686,988 Storm water - 321 25,141 218,269 Total business-type activities expenses 9,123,378 9,545,805 10,237,643 9,971,284 Total primary governmental expenses 28,374,807 $ 31,781,282 $ 35,479,161 $ 34,788,628 $ Program Revenues Governmental activities: Program revenues Charges for services General government 724,774 $ 962,093 $ 1,311,750 $ 148,017 $ Judicial 717,508 851,855 915,158 1,034,448 Public safety 44,101 298,106 572,876 523,819 Public works 309,304 180,322 964,251 863,965 Culture and recreation 1,664,673 1,637,956 1,380,001 1,539,268 Total charges for services 3,460,360 3,930,332 5,144,036 4,109,517 Operating grants and contributions 965,959 1,209,991 1,208,330 1,311,088 Capital grants and contributions 3,147,419 6,869,830 3,289,125 11,422,080 Total governmental activities program revenues 7,573,738 $ 12,010,153 $ 9,641,491 $ 16,842,685 $ Business-type activities: Program revenues Charges for services Water 5,943,428 $ 5,485,274 $ 5,574,085 $ 4,828,996 $ Water reclamation 1,543,980 1,553,806 1,553,045 1,653,409 Storm water - 563,292 925,466 2,137,553 Golf course 2,337,037 2,432,189 2,424,316 665,258 Total charges for services 9,824,445 10,034,561 10,476,912 9,285,216 Operating grants and contributions - - - - Capital grants and contributions 2,613,794 8,065,898 1,086,071 2,360,447 Total business-type activities program revenues 12,438,239 18,100,459 11,562,983 11,645,663 Total primary government program revenues 20,011,977 $ 30,110,612 $ 21,204,474 $ 28,488,348 $ 118 ---PAGE BREAK--- 2001 2002 2003 2004 2005 Net (Expense)/Revenue Governmental activities (9,095,375) $ (8,916,408) $ (9,051,472) $ (7,901,947) $ (11,472,255) $ Business-type activities 7,530,473 2,106,728 1,863,483 5,713,873 5,300,185 Total primary government net expenses (1,564,902) $ (6,809,680) $ (7,187,989) $ (2,188,074) $ (6,172,070) $ General Revenues and Changes in Net Assets Governmental activities: Taxes Property taxes 2,431,160 $ 3,034,093 $ 3,466,370 $ 3,637,650 $ 3,734,122 Sales and use taxes 7,728,825 7,813,578 7,892,329 8,304,870 8,578,845 Other taxes - - 32,319 40,760 33,322 Unrestricted grants and contributions - - - - - Interest 1,247,609 696,317 295,299 255,735 563,709 Franchise taxes 560,884 559,043 630,347 708,253 813,636 Other general revenues 33,501 35,375 - Gain (loss) on sale of capital assets - - 498,819 7,245 15,480 Transfers 1,921,849 1,204,194 2,608,402 1,239,670 1,436,116 Special items Adjustment of asset held for resale - - 72,182 268,032 - Gain on fire conversion - - - - - Total governmental activities 13,923,828 13,342,600 15,496,067 14,462,215 15,175,230 Business-type activities: Interest 1,243,534 $ 735,817 $ 378,439 $ 366,292 $ 728,013 $ Gain (loss) on sale of capital assets - - - 8,440 - Transfers (1,921,849) (1,204,194) (2,608,402) (1,239,670) (1,436,116) Other general revenues 49,470 - - - - Special item - return water rights to developer - - - - - Total business-type activities (628,845) (468,377) (2,229,963) (864,938) (708,103) Total primary government 13,294,983 $ 12,874,223 $ 13,266,104 $ 13,597,277 $ 14,467,127 $ Changes in Net Assets Governmental activities 4,828,453 $ 4,426,192 $ 6,444,595 $ 6,560,268 $ 3,702,975 $ Business-type activities 6,901,628 1,638,351 (366,480) 4,848,935 4,592,082 Total primary government net assets 11,730,081 $ 6,064,543 $ 6,078,115 $ 11,409,203 $ 8,295,057 $ Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 CITY OF LAFAYETTE, COLORADO CHANGES IN NET ASSETS, LAST NINE YEARS SCHEDULE 2 (CONTINUED) For the Fiscal Year Ended December 31, 2009 119 ---PAGE BREAK--- 2006 2007 2008 2009 Net (Expense)/Revenue Governmental activities (11,677,691) (10,225,324) (15,600,027) (7,974,659) Business-type activities 3,314,861 8,554,654 1,325,340 1,674,379 Total primary government net expenses (8,362,830) $ (1,670,670) $ (14,274,687) $ (6,300,280) $ General Revenues and Changes in Net Assets Governmental activities: Taxes Property taxes 4,636,466 4,517,103 4,475,327 6,367,167 Sales and use taxes 9,411,455 10,080,824 10,291,910 10,250,821 Other taxes 40,940 34,806 - - Unrestricted grants and contributions - - - 30,926 Interest 1,043,848 1,299,871 1,455,686 354,536 Franchise taxes 863,349 868,106 1,000,028 913,075 Other general revenues - - 31,075 644 Gain (loss) on sale of capital assets 47,733 7,180 7,946 Transfers 1,465,438 1,415,425 1,415,946 1,548,521 Special items Adjustment of asset held for resale - - - (631,968) Gain on fire conversion - 199,677 110,036 105,458 Total governmental activities 17,509,229 18,422,992 18,787,954 18,939,180 Business-type activities: Interest 1,417,902 $ 2,070,994 $ 2,045,405 $ 408,204 $ Gain (loss) on sale of capital assets - - - - Transfers (1,465,438) (1,415,425) (1,415,946) (1,548,521) Other general revenues - - - - Special item - return water rights to developer - - (469,263) Total business-type activities (47,536) 655,569 160,196 (1,140,317) Total primary government 17,461,693 $ 19,078,561 $ 18,948,150 $ 17,798,863 $ Changes in Net Assets Governmental activities 5,831,538 $ 8,197,668 $ 3,187,927 $ 10,964,521 $ Business-type activities 3,267,325 9,210,223 1,485,536 534,062 Total primary government net assets 9,098,863 $ 17,407,891 $ 4,673,463 $ 11,498,583 $ 120 ---PAGE BREAK--- 2001 2002 2003 2004 2005 General fund Reserved 12,048 $ 966,172 $ 2,306,175 $ 3,698,609 $ 3,676,917 $ Unreserved 11,192,912 9,747,503 9,138,312 4,966,419 4,320,066 Total general fund 11,204,960 $ 10,713,675 $ 11,444,487 $ 8,665,028 $ 7,996,983 $ All other governmental funds Reserved 11,335,232 $ 20,264,238 $ 5,124,545 $ 4,209,126 $ 8,160,580 $ Unreserved, reported in: Special revenue funds 102,490 192,888 277,783 601,577 748,504 Capital project funds - 4,859,425 6,466,668 6,817,919 3,689,182 Debt service fund - - - - 3,751 Total other governmental funds 11,437,722 $ 25,316,551 $ 11,868,996 $ 11,628,622 $ 12,602,017 $ Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 CITY OF LAFAYETTE, COLORADO FUND BALANCES, GOVERNMENTAL FUNDS, LAST NINE YEARS SCHEDULE 3 For the Fiscal Year Ended December 31, 2009 121 ---PAGE BREAK--- 2006 2007 2008 2009 General fund Reserved 3,861,134 $ 4,903,315 $ 4,895,129 $ 4,700,316 $ Unreserved 4,956,337 6,418,992 7,450,132 9,103,776 Total general fund 8,817,471 $ 11,322,307 $ 12,345,261 $ 13,804,092 $ All other governmental funds Reserved 5,416,688 $ 3,749,378 $ 12,878,005 $ 9,357,019 $ Unreserved, reported in: Special revenue funds 943,701 982,056 936,855 1,435,036 Capital project funds 4,619,021 3,836,539 - - Debt service fund 38,342 355,034 187,261 80,309 Total other governmental funds 11,017,752 $ 8,923,007 $ 14,002,121 $ 10,872,364 $ 122 ---PAGE BREAK--- 2001 2002 2003 2004 2005 Revenues Taxes 10,159,985 $ 10,847,671 $ 11,358,699 $ 11,947,820 $ 12,318,267 $ Licenses and permits 786,006 1,031,737 911,379 913,460 780,630 Intergovernmental 1,167,262 1,190,177 1,326,863 1,600,202 1,096,289 Urban drainage district - - 200,809 - - Fines and forfeitures 160,335 283,692 420,456 465,286 478,208 Franchise taxes 560,884 559,043 630,347 708,253 813,636 Interest 1,206,695 634,104 320,793 246,267 517,356 Sidewalk maintenance/repair - 80,424 95,597 82,259 84,496 Contributions 1,000,100 65,779 74,842 69,660 153,190 Charges for services 1,478,627 1,956,809 1,759,327 1,539,653 1,645,548 Special assessments principal 74,303 81,717 488,453 239,353 8,735 Special assessments interest - 70,163 1,363,755 1,004,650 62,273 Administrative fees - - 22,615 88,374 95,969 Miscellaneous 263,548 99,350 593,552 172,101 105,821 Total revenues 16,857,745 16,900,666 19,567,487 19,077,338 18,160,418 Expenditures General government 3,717,684 3,425,548 3,706,811 6,191,131 3,797,408 Judicial 338,231 351,441 297,246 279,630 299,383 Public safety 3,711,685 4,015,889 4,142,895 4,637,191 5,215,916 Public works 1,224,329 1,223,634 1,380,334 1,241,332 1,318,180 Culture and recreation 2,484,745 3,688,467 3,923,821 4,056,279 4,282,927 Capital outlay 7,601,060 4,795,190 6,579,285 4,391,912 7,096,025 Debt service Capital lease payments - 255,400 254,506 256,721 244,445 Principal 906,931 963,287 19,294,637 1,215,978 1,765,000 Interest and fiscal charges 1,162,547 998,916 1,465,817 1,095,552 1,173,982 Bond issuance costs 198,802 244,544 183,488 - 108,799 Total expenditures 21,346,014 19,962,316 41,228,840 23,365,726 25,302,065 Excess of revenues over (under) expenditures (4,488,269) (3,061,650) (21,661,353) (4,288,388) (7,141,647) CITY OF LAFAYETTE, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST NINE YEARS SCHEDULE 4 For the Fiscal Year Ended December 31, 2009 123 ---PAGE BREAK--- 2006 2007 2008 2009 Revenues Taxes 14,053,221 $ 14,603,227 $ 14,771,535 $ 16,623,287 $ Licenses and permits 1,015,589 421,730 253,390 299,752 Intergovernmental 1,275,115 1,547,140 1,510,385 1,648,211 Urban drainage district - - - - Fines and forfeitures 752,055 851,855 915,158 1,034,448 Franchise taxes 863,349 868,106 1,000,028 913,075 Interest 971,545 1,143,086 1,392,581 316,379 Sidewalk maintenance/repair 86,799 58,681 88,598 92,980 Contributions 40,318 1,884,478 223,094 165,183 Charges for services 1,716,339 2,255,825 3,256,023 3,973,302 Special assessments principal 635,569 736,983 1,165,209 6,902,495 Special assessments interest 827,804 548,322 597,149 (18,341) Administrative fees 62,683 62,683 57,627 89,859 Miscellaneous 292,658 82,034 99,185 55,649 Total revenues 22,593,044 25,064,150 25,329,962 32,096,279 Expenditures General government 4,201,131 4,415,363 5,237,978 5,419,112 Judicial 301,862 310,518 290,028 284,250 Public safety 5,587,442 6,332,944 6,707,011 6,570,321 Public works 1,437,309 1,755,484 2,643,677 2,091,803 Culture and recreation 4,197,522 4,367,085 4,725,802 4,849,524 Capital outlay 5,596,574 6,542,656 5,651,205 5,886,575 Debt service Capital lease payments 94,914 172,735 243,990 461,826 Principal 1,955,000 2,025,000 2,100,000 8,125,000 Interest and fiscal charges 1,429,713 1,390,828 1,428,637 1,100,805 Bond issuance costs 20,792 - 49,500 - Total expenditures 24,822,259 27,312,613 29,077,828 34,789,216 Excess of revenues over (under) expenditures (2,229,215) (2,248,463) (3,747,866) (2,692,937) 124 ---PAGE BREAK--- 2001 2002 2003 2004 2005 Other financing sources (uses) Proceeds from debt 5,950,000 15,245,000 6,408,390 - 6,010,881 Retirement of bonds refunded - - - - - Lease issuance 357,208 - - 56,622 - Transfers in 2,016,302 3,886,251 15,657,178 4,918,211 1,891,595 Transfers out (94,453) (2,682,057) (13,048,776) (3,438,246) (455,479) Total other financing sources (uses) 8,229,057 16,449,194 9,016,792 1,536,587 7,446,997 Special Item Adjustment of asset held for resale - - (72,182) (268,032) - Gain on fire conversion - - - - - Total special items - - (72,182) (268,032) - Net change in fund balances 3,740,788 $ 13,387,544 $ (12,716,743) $ (3,019,833) $ 305,350 $ Debt service as a percentage of noncapital expenditures 15.1% 14.6% 60.7% 13.5% 17.5% Notes: The City of Lafayette implemented GASB 34 as of December 31, 2001 The City of Lafayette financial statements include prior years' infrastructure as of December 31, 2007 CITY OF LAFAYETTE, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST NINE YEARS SCHEDULE 4 (CONTINUED) For the Fiscal Year Ended December 31, 2009 125 ---PAGE BREAK--- 2006 2007 2008 2009 Other financing sources (uses) Proceeds from debt 2,070,000 1,243,179 8,023,279 - Retirement of bonds refunded (2,040,000) - - - Lease issuance - - - - Transfers in 1,996,337 4,437,885 2,426,106 3,090,256 Transfers out (530,899) (3,022,460) (1,010,160) (1,541,735) Total other financing sources (uses) 1,495,438 2,658,604 9,439,225 1,548,521 Special Item Adjustment of asset held for resale - - - (631,968) Gain on fire conversion - - 410,709 105,458 Total special items - - 410,709 (526,510) Net change in fund balances (733,777) $ 410,141 $ 6,102,068 $ (1,670,926) $ Debt service as a percentage of noncapital expenditures 18.1% 17.3% 16.1% 33.5% 126 ---PAGE BREAK--- General Fire Specific Total Fiscal Property District Ownership Cigarette Sales Franchise Use General Tax Year Tax 1 Tax Tax Tax Tax Tax Tax 2 Revenues 1999 1,763,358 5,300 156,874 32,641 3,967,415 429,556 2,679,521 9,034,665 2000 1,934,810 5,300 176,292 38,550 4,648,750 3 529,572 2,539,708 3 9,872,982 2001 2,227,393 5,300 202,634 33,501 4,882,252 560,884 2,846,573 10,758,537 2002 2,780,105 5,300 248,688 33,343 4 4,965,407 559,043 2,848,171 11,440,057 2003 3,206,560 5,300 254,510 32,319 4 5,194,537 630,347 2,697,792 12,021,365 2004 3,380,859 5,300 256,791 35,560 4 5,631,759 708,253 2,673,111 12,691,633 2005 3,475,379 5,300 258,745 28,022 4 6,196,060 813,636 2,382,786 13,159,928 2006 4,339,992 5,300 296,474 35,640 4 7,037,401 863,349 2,374,054 14,952,210 2007 4,231,390 5,300 285,712 29,506 4 7,813,683 868,106 2,493,030 15,726,727 2008 4,202,863 5,300 272,464 31,075 4 8,471,790 1,000,028 1,820,120 15,803,640 2009 6,053,858 5 5,300 313,309 30,927 4 8,300,753 913,075 1,950,068 17,567,289 1 Includes property taxes from general improvement districts 2 Includes taxes on building materials and motor vehicles. 3 Effective January 1, 2000, sales and use taxes increased from 3.25% to 3.50%. 4 Amount is included in intergovernmental revenue on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 5 Includes property taxes from Ambulance and Fire Fund. SCHEDULE 5 For the Fiscal Year Ended December 31, 2009 CITY OF LAFAYETTE, COLORADO GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE 127 ---PAGE BREAK--- Total Regional Cultural Football Overlapping Fiscal City of State of Boulder Transportation Facilities Stadium Sales Tax Year Lafayette Colorado County District District District Rate 2001 3.50% 2.90% 0.55% 0.60% 0.10% 0.10% 7.75% 2002 3.50% 2.90% 0.55% 0.60% 0.10% 0.10% 7.75% 2003 3.50% 2.90% 0.55% 0.60% 0.10% 0.10% 7.75% 2004 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2005 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2006 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2007 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2008 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% 2009 3.50% 2.90% 0.65% 1.00% 0.10% 0.10% 8.25% Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Overlapping Rates CITY OF LAFAYETTE, COLORADO DIRECT AND OVERLAPPING SALES TAX RATES SCHEDULE 6 Last Nine Fiscal Years 128 ---PAGE BREAK--- 2002 1 2003 2004 2005 Aggregate top ten filers 2 2,642,451 $ 2,780,563 $ 3,144,410 $ 3,446,035 $ Aggregate all other filers 2,587,960 2,636,528 2,791,949 2,994,130 Total sales and use tax 5,230,411 $ 5,417,091 $ 5,936,359 $ 6,440,165 $ Top ten filers as a percentage of total sales tax 50.52% 51.33% 52.97% 53.51% 1 Data for 2001 unavailable. 2 Colorado State Statutes and City of Lafayette Ordinances prohibit disclosure of individual sales tax information. Therefore, the current year top ten filers are not individually listed. Notes: Excludes building use tax and motor vehicle use tax and audit revenue. The City of Lafayette implemented GASB 34 as of December 31, 2001 CITY OF LAFAYETTE, COLORADO PRINCIPAL SALES AND USE TAX PAYERS SCHEDULE 7 Last Nine Fiscal Years 129 ---PAGE BREAK--- 2006 2007 2008 2009 Aggregate top ten filers 3,713,861 $ 5,047,321 $ 4,842,212 $ 4,689,937 $ Aggregate all other filers 3,642,042 3,221,810 3,815,397 3,908,266 Total sales and use tax 7,355,903 $ 8,015,494 $ 8,657,609 $ 8,598,203 $ Top ten filers as a percentage of total sales tax 50.49% 62.97% 55.93% 54.55% 130 ---PAGE BREAK--- Sales Tax Limited Tax General Fiscal Revenue Revenue Obligation Demand Capital Term Loan Year Bonds 1 Bonds Bonds Bonds Leases Payable 2001 6,635,000 $ 2,950,000 $ 5,208,903 $ 12,000,000 $ 584,962 $ 950,000 $ 2002 6,100,000 2,940,000 7,535,616 24,500,000 442,107 923,416 2003 5,670,000 5,625,000 4,345,979 12,500,000 294,623 895,306 2004 5,010,000 5,530,000 3,885,000 12,500,000 184,916 865,702 2005 4,340,000 5,400,000 9,395,000 12,025,000 28,288 834,287 2006 3,660,000 5,340,000 8,680,000 11,525,000 14,308 801,067 2007 2,965,000 5,275,000 7,935,000 11,005,000 1,200,118 765,942 2008 9,165,000 5,200,000 7,160,000 10,465,000 2,079,051 728,805 2009 8,435,000 5,120,000 6,355,000 3,955,000 1,774,386 689,008 1 Total sales tax is 3.50%. After 0.50% is set aside for open space, sales tax revenue bonds are paid out of the 3.00% remaining. 2 General obligation bonds have been issued for business-type activities. While general obligation water bonds are direct obligations and pledge the full faith and credit of the City, the City is bound by bond covenant to establish water rates which will provide for operations and debt service. 3 See Schedule 12 for Population and Personal Income figures. Governmental Activities CITY OF LAFAYETTE, COLORADO SCHEDULE 8 Last Nine Fiscal Years RATIO OF OUTSTANDING DEBT, BY TYPE 131 ---PAGE BREAK--- General Water Sewer Golf Total Percent Oblig. Water Revenue Refunding Revenue Capital Term Loan Primary Debt Per Personal Bonds 2 Bonds Bonds Bonds Leases Payable Government Capita 3 Income 3 6,485,000 $ - $ 900,000 $ 900,000 $ 85,132 $ 7,861,139 $ 44,560,136 1,762 $ 6.71% 6,025,000 - 690,000 500,000 - 7,861,139 57,517,278 2,202 8.45% 5,645,000 15,645,000 470,000 500,000 - 7,838,505 59,429,413 2,342 8.51% 5,095,000 15,645,000 240,000 500,000 - 7,754,980 57,210,598 2,284 8.00% 4,535,000 15,645,000 - 461,200 - 7,663,956 60,327,731 2,338 8.24% 3,955,000 15,809,458 - 420,200 165,073 7,303,810 57,673,916 2,230 7.70% 3,350,000 15,645,000 - 377,000 120,609 7,083,555 55,722,224 2,106 7.79% 2,735,000 15,645,000 - 331,400 74,036 6,688,501 60,271,793 2,323 8.64% 2,090,000 15,645,000 - 283,300 25,251 6,272,317 50,644,262 1,915 7.27% Business-Type Activities 132 ---PAGE BREAK--- 2001 2002 2003 2004 2005 General bonded debt outstanding 35,078,903 $ 48,290,616 $ 50,400,979 $ 48,405,000 $ 51,801,200 $ Total 35,078,903 48,290,616 50,400,979 48,405,000 51,801,200 Less: General obligation water bonds 6,485,000 $ 6,025,000 $ 5,645,000 $ 5,095,000 $ 4,535,000 $ Water revenue bonds - - 15,645,000 15,645,000 15,645,000 Sewer revenue bonds 900,000 690,000 470,000 240,000 - Tech center GID revenue bonds - - - - - Limited tax obligation bonds 2,950,000 5,685,000 5,625,000 5,530,000 5,400,000 Sales tax revenue bonds 6,635,000 6,100,000 5,670,000 5,010,000 4,340,000 Demand bonds 12,000,000 24,500,000 12,500,000 12,500,000 12,025,000 Golf course revenue bonds 900,000 500,000 500,000 500,000 461,200 Total net debt applicable to debt limit 5,208,903 $ 4,790,616 $ 4,345,979 $ 3,885,000 $ 9,395,000 $ Estimated actual property values 1 1,518,282,500 1,955,990,500 2,025,956,955 2,494,049,689 2,589,204,957 Legal debt limit 2 45,548,475 58,679,715 60,778,709 74,821,491 77,676,149 Legal debt margin 3 40,339,572 $ 53,889,099 $ 56,432,730 $ 70,936,491 $ 68,281,149 $ Outstanding debt as a percentage of debt limit 11% 8% 7% 5% 12% Population 25,283 26,121 25,373 25,051 25,798 Net general bonded debt per capita 206 $ 183 $ 171 $ 155 $ 364 $ 1 Source: Boulder County Assessor's Office. The Estimated Actual Property Values are from the previous year, but are used to calculate current year tax revenues and debt limits. 2 Debt limit is 3% of Estimated Actual Real Estate Value 3 The legal debt margin is the city's available borrowing authority Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 CITY OF LAFAYETTE, COLORADO RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT LIMIT SCHEDULE 9 Last Nine Fiscal Years Fiscal Year 133 ---PAGE BREAK--- 2006 2007 2008 2009 General bonded debt outstanding 49,225,200 $ 46,552,000 $ 50,701,400 $ 41,883,300 $ Total 49,225,200 46,552,000 50,701,400 41,883,300 Less: General obligation water bonds 3,955,000 $ 3,350,000 $ 2,735,000 $ 2,090,000 $ Water revenue bonds 15,645,000 15,645,000 15,645,000 15,645,000 Sewer revenue bonds - - - Tech center GID revenue bonds 2,040,000 2,040,000 2,040,000 2,040,000 Limited tax obligation bonds 3,300,000 3,235,000 3,160,000 3,080,000 Sales tax revenue bonds 3,660,000 2,965,000 9,165,000 8,435,000 Demand bonds 11,525,000 11,005,000 10,465,000 3,955,000 Golf course revenue bonds 420,200 377,000 331,400 283,300 Total net debt applicable to debt limit 8,680,000 $ 7,935,000 $ 7,160,000 $ 6,355,000 $ Estimated actual property values 1 2,829,493,700 2,903,216,100 2,992,447,300 3,042,980,900 Legal debt limit 2 84,884,811 87,096,483 89,773,419 91,289,427 Legal debt margin 3 76,204,811 $ 79,161,483 $ 82,613,419 $ 84,934,427 $ Outstanding debt as a percentage of debt limit 10% 9% 8% 7% Population 25,864 26,453 25,945 26,448 Net general bonded debt per capita 336 $ 300 $ 276 $ 240 $ Fiscal Year 134 ---PAGE BREAK--- General Percentage Estimated Obligation Applicable Share of Bonded Debt To Overlapping Jurisdiction Outstanding Government Debt Direct: City of Lafayette 6,355,000 100.00% 6,355,000 Overlapping: Boulder Valley School District RE-2 1 387,215,000 5.66% 21,916,369 Total 393,570,000 28,271,369 Flood Control District and the Regional Transportation District. CITY OF LAFAYETTE, COLORADO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT For the Fiscal Year Ended December 31, 2009 SCHEDULE 10 1 The following entities overlap the City, but have no general obligation debt outstanding: Boulder County, Lafayette Rural Fire Protection District, Lefthand Water District, Louisville Fire Protection District, Urban Drainage and 135 ---PAGE BREAK--- Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 9,865,133 2,369,461 7,495,672 - - N/A 2002 4,966,753 2,642,397 2,324,356 - - N/A 2003 5,832,700 4,074,441 1,758,259 - 494,189 3.56 2004 6,603,085 3,052,834 3,550,251 - 757,056 4.69 2005 8,103,805 3,174,499 4,929,306 - 757,056 6.51 2006 8,475,028 3,370,235 5,104,793 - 757,056 6.74 2007 8,743,832 3,262,208 5,481,624 - 757,056 7.24 2008 7,795,860 3,509,937 4,285,923 - 757,056 5.66 2009 5,837,267 3,488,140 2,349,127 - 757,056 3.10 Sales & Use Debt Service Tax Increment Principal Interest Coverage 4 2001 6,634,402 510,000 344,505 7.76 2002 6,713,205 535,000 322,320 7.83 2003 6,774,074 5 690,000 314,520 6.74 2004 7,090,526 660,000 146,277 8.79 2005 7,326,359 670,000 133,077 9.12 2006 8,054,767 680,000 119,677 10.07 2007 8,619,750 695,000 106,078 10.76 2008 8,317,710 6 710,000 222,590 8.92 2009 8,257,862 730,000 302,121 8.00 1 Gross resources include all operating revenues plus interest and other non-operating revenues. Included are tap tees and cash received in lieu of water rights, both of which are classified as capital contributions. 2 Includes all operating expenses less depreciation and amortization, plus transfers out. 3 Net available revenue divided by total bond principle and interest. 4 Sales & Use Tax Increment divided by total bond principle and interest. 5 Refunded 1993 Sales & Use Tax bonds with 2003C Sales & Use Tax bonds in the amount of $6,360,000. 6 Issued 2008 Series Sales & Use Tax Revenue Bonds in the amount of $6,910,000. 7 Adverse business conditions caused an extension of the final maturity date of these bonds. 8 Expenses included an escrow payment of $745,760 accumulated from a prior year as partial payment on the redemption of the bonds. The amount was removed for this calculation. Sales Tax Revenue Bonds Debt Service Water Revenue Bonds CITY OF LAFAYETTE, COLORADO PLEDGED REVENUE COVERAGE SCHEDULE 11 Last Nine Fiscal Years 136 ---PAGE BREAK--- Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 2,430,487 1,445,719 984,768 - 21,809 45.15 2002 2,178,818 994,957 1,183,861 102,093 233,159 3.53 2003 1,927,172 1,162,668 764,504 102,093 308,272 1.86 2004 2,542,329 1,357,551 1,184,778 107,466 306,185 2.86 2005 2,729,239 1,393,503 1,335,736 107,466 296,142 3.31 2006 2,471,143 1,630,342 840,801 365,384 288,260 1.29 2007 2,627,771 1,661,653 966,118 376,131 277,390 1.48 2008 2,374,918 1,918,606 456,312 381,504 166,295 0.83 2009 1,816,331 1,819,954 (3,623) 392,250 62,890 - Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 2,288,650 2,114,467 174,183 - 49,500 3.52 2002 2,208,503 2,120,590 87,913 900,000 49,500 0.09 2003 2,082,080 2,180,448 (98,368) 200,000 11,000 -0.47 2004 1,982,242 1,907,957 74,285 200,000 22,000 0.33 2005 2,215,416 2,073,351 142,065 7 38,800 27,500 2.14 2006 2,357,877 2,077,498 280,379 41,000 25,364 4.22 2007 2,470,853 2,211,448 259,405 43,200 23,111 3.91 2008 2,448,149 2,209,636 238,513 45,600 20,734 3.60 2009 2,140,067 2,063,656 76,411 48,100 18,226 1.15 Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 40,088 - 40,088 - 43,125 0.93 2002 74,020 5,458 68,562 5,000 43,125 1.42 2003 72,973 26,678 46,295 10,000 43,638 0.86 2004 78,114 18,644 59,470 15,000 42,243 1.04 2005 75,214 10,600 64,614 20,000 41,400 1.05 2006 80,831 10,712 70,119 25,000 40,250 1.07 2007 84,573 9,486 75,087 30,000 38,813 1.09 2008 82,139 9,475 72,664 35,000 37,088 1.01 2009 80,512 9,523 70,989 40,000 35,075 0.95 Golf Course Revenue Bonds Debt Service Lafayette City Center GID Revenue Bonds Debt Service CITY OF LAFAYETTE, COLORADO PLEDGED REVENUE COVERAGE SCHEDULE 11 (CONTINUED) Last Nine Fiscal Years Loan Debt Service 137 ---PAGE BREAK--- Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 - - - - - N/A 2002 - - - - - N/A 2003 1,502,465 9,043,435 (7,540,970) - 325,998 -23.13 2004 1,309,597 28,212 1,281,385 - 321,809 3.98 2005 211,335 25,181 186,154 475,000 301,912 0.24 2006 1,544,227 33,201 1,511,026 500,000 522,100 1.48 2007 1,322,582 25,729 1,296,853 520,000 541,898 1.22 2008 1,829,055 23,355 1,805,700 540,000 385,205 1.95 2009 6,928,099 49,984 8 6,878,115 6,510,000 137,579 1.03 Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 - - - - - N/A 2002 - - - - - N/A 2003 288,198 7,022 281,176 25,000 214,053 1.18 2004 291,530 20,505 271,025 30,000 217,600 1.09 2005 277,061 34,520 242,541 30,000 215,200 0.99 2006 281,609 16,086 265,523 35,000 212,800 1.07 2007 282,353 14,065 268,288 35,000 210,000 1.10 2008 428,238 13,675 414,563 40,000 207,200 1.68 2009 262,680 13,944 248,736 40,000 204,000 1.02 Net Fiscal Gross Available Year Resources 1 Expenses 2 Revenue Principal Interest Coverage 3 2001 - - - - - N/A 2002 - - - - - N/A 2003 - - - - - N/A 2004 - - - - - N/A 2005 - - - - - N/A 2006 236,777 22,097 214,680 - 144,925 1.48 2007 78,887 16,004 62,883 - 132,600 0.47 2008 82,142 7,372 74,770 - 122,400 0.61 2009 135,822 9,937 125,885 - 122,400 1.03 Lafayette Corp Campus GID Debt Service Lafayette Tech Center GID Debt Service CITY OF LAFAYETTE, COLORADO PLEDGED REVENUE COVERAGE SCHEDULE 11 (CONTINUED) Last Nine Fiscal Years Exempla GID Debt Service 138 ---PAGE BREAK--- Personal Income Per Median Fiscal Estimated (thousands Capita Median Education School Unemp. Year Population of dollars) Income Age Level Enrollment Rate 2001 25,283 663,970 27,780 35.3 13 3,877 3.8% 2002 26,121 681,032 26,072 33.8 13 3,712 5.7% 2003 25,373 698,094 27,510 33.8 13 3,712 5.7% 2004 25,051 715,156 28,548 33.8 14 3,994 5.0% 2005 25,798 732,218 28,383 33.8 14 4,086 4.5% 2006 25,864 749,280 28,970 34.4 14 4,159 3.7% 2007 26,453 714,919 27,026 33.8 14 4,840 2.8% 2008 25,945 688,866 26,551 36.0 14 3,323 5.8% 2009 26,448 696,482 26,334 36.3 14 3,946 5.2% Estimated Estimated % Number Number Total Firm Employees Firm Employees Employees City of Lafayette 330 Exempla Good Samaritan 1310 11.8 Design Fabricators 290 City of Lafayette 330 3.0 Advanced Component Systems 250 Universal Forest Products 285 2.6 Wal-Mart 189 Imagine! 250 2.3 Rocky Mountain Instruments 150 Wal-Mart 189 1.7 Albertsons 112 Rocky Mountain Instruments 150 1.4 Coherent Technologies 100 Albertsons 112 1.0 Electric 60 Northrup Grumman 110 1.0 Data Trax 40 Dharmacon 102 0.9 Lafayette Florist 35 King Soopers 86 0.8 1 Information on total employees in 2000 was not available. Sources: Bureau of Labor Statistics Boulder County School District R-1 Lafayette Chamber of Commerce Lafayette Community Development Department Metro Denver GIS CITY OF LAFAYETTE, COLORADO DEMOGRAPHIC AND ECONOMIC STATISTICS SCHEDULE 12 Last Nine Fiscal Years 2000 1 2009 AND TOP TEN EMPLOYERS FOR 2000 AND 2009 139 ---PAGE BREAK--- 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program Executive and administration City council 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 City administrator City administration 3.05 3.05 3.05 3.05 3.05 1.05 1.05 1.00 1.00 Community development - - - - 2.00 2.00 2.00 2.05 2.05 City clerk 1.00 1.50 1.50 1.00 1.00 2.00 2.00 2.00 2.00 Municipal court 2.00 2.50 2.50 2.50 2.50 2.50 2.75 2.75 2.75 Finance Administrative services 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.00 1.00 Human resources 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Financial services (accounting) 7.00 6.00 6.00 6.00 6.00 6.00 7.00 7.33 7.33 Information technologies 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Planning department Planning 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Public safety Police department 46.00 46.00 48.00 48.00 50.00 50.00 50.00 52.00 52.00 Fire department 2.63 2.50 2.50 2.50 5.50 5.50 5.50 5.50 5.50 Ambulance - - - - - - 10.89 11.22 11.22 Public works & utilities Public works administration 14.20 15.20 15.20 13.70 13.70 12.66 12.66 13.66 10.17 Water: Administration 0.40 1.20 1.20 1.20 1.20 2.29 1.54 1.54 1.54 Source of supply 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 Treatment 11.50 11.75 11.75 11.13 11.50 10.00 10.75 10.75 10.75 Transmission & distribution 7.50 7.50 8.25 8.25 6.75 7.50 7.50 7.50 8.15 Water reclamation: Administration 0.40 0.60 0.60 0.60 0.60 0.93 0.93 0.93 0.93 Treatment 5.75 5.75 6.75 6.37 6.75 6.19 6.19 6.19 6.19 Collection 1.75 1.75 1.75 3.50 5.00 5.76 5.76 4.76 5.41 Storm water: Administration - - - - - - - - 0.20 Collection - - - - - - - - 1.99 Subtotals 124.26 126.38 131.13 129.88 137.63 136.46 148.60 150.93 150.93 CITY OF LAFAYETTE, COLORADO FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM SCHEDULE 13 Last Nine Fiscal Years 140 ---PAGE BREAK--- 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program Parks, open space & golf department Parks & open space: Administration 2.80 2.80 2.80 2.80 2.80 2.17 1.67 1.34 1.34 Cemeteries - - - 1.31 1.31 1.31 1.31 1.31 1.31 Parks 9.93 10.91 10.42 9.11 9.11 10.11 10.51 10.51 10.51 Open space maintenance 1.00 1.00 1.00 1.00 1.00 1.50 2.50 2.50 2.50 Golf course Administration 0.20 0.20 0.20 0.20 0.20 0.33 0.33 0.66 0.66 Golf course operations 12.50 12.50 14.27 10.17 11.63 10.63 10.63 10.63 10.63 Club house operations 7.25 7.25 7.25 5.36 7.25 7.25 7.25 7.25 7.25 Snack bar operations 3.25 3.25 3.25 3.18 3.72 3.72 3.72 3.72 3.72 Recreation & facility management department Recreation & facility management: Administration - - - - - 2.75 3.25 3.25 3.25 Leisure services 11.25 11.17 10.94 9.94 10.94 9.74 9.24 9.24 9.24 Recreation 36.03 35.94 34.94 35.94 34.94 28.73 32.41 32.41 32.41 Building maintenance 5.50 4.25 4.25 4.25 4.25 9.46 10.96 10.96 10.96 Community life department Library 16.10 17.21 17.21 17.21 17.21 18.04 17.87 17.87 17.22 Community life - - - - - - - - 0.65 Senior services 2.00 3.00 3.00 3.50 3.50 3.50 3.50 3.50 3.50 Subtotals 107.81 109.48 109.53 103.97 107.86 109.24 115.15 115.15 115.15 Grand totals 232.07 235.86 240.66 233.85 245.49 245.70 263.75 266.08 266.08 Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 CITY OF LAFAYETTE, COLORADO FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM SCHEDULE 13 (CONTINUED) Last Nine Fiscal Years 141 ---PAGE BREAK--- 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program Police Physical arrests 1,711 1,553 1,486 1,630 1,605 1,492 1,149 1,318 1,200 Municipal Citations * 3,232 5,140 5,353 4,717 6,850 6,147 6,983 7,152 Fire Emergency responses 1,376 1,510 1,515 1,411 1,619 1,587 1,879 1,885 1,736 Inspections conducted 100 100 100 100 100 100 250 330 300 Parks, Open Space, Golf Course Golf Course rounds played 42,845 39,710 38,379 37,313 41,778 44,203 43,008 43,022 39,292 % Resident Play 23% 29% 29% 26% 21% 17% 20% 19% 18% Cemetary plot opening/closings 30 24 27 30 33 29 25 30 35 Recreation and Facility Management Individual Annual Passes sold 90 132 168 237 302 315 403 421 381 Couple or Family Annual Passes 83 118 140 198 255 242 293 307 303 Punch Cards sold 2,469 3,356 3,489 2,881 2,598 2,384 2,524 2,243 2,369 Total Attendance 227,803 237,266 230,870 222,313 230,367 226,284 235,506 227,175 225,319 Facilities and services not included in the reporting entity 1: Number of public elementary schools 4 4 4 4 4 4 4 4 4 Number of elementary instructors 2 114.6 114.7 98.0 100.1 102.5 107.8 107.7 145.0 143.0 Number of public middle schools 1 1 1 1 1 1 1 1 1 Number of middle school instructors (2 46.9 * 42.2 44.5 43.2 38.3 38.1 40.0 38.0 Charter school (K through 12) 1 1 1 1 1 1 1 1 1 Number of public high schools 1 1 1 1 1 1 1 1 1 Number of high school instructors 2 61.3 * 58.3 63.3 62.7 61.8 65.5 90.0 82.0 * Information is unavailable 1 Source: Boulder Valley School District 2 Full-time equivalents Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 CITY OF LAFAYETTE, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM SCHEDULE 14 Last Nine Fisal Years 142 ---PAGE BREAK--- 2001 2002 2003 2004 2005 2006 2007 2008 2009 Function/Program Police Stations 1 1 1 1 1 1 1 1 1 Commissioned officers 36 31 35 37 37 39 40 40 39 Fire stations 1 1 1 1 1 1 1 1 1 Public works Centerline miles of streets 82 92 94 97 97 97 97 98 98 Street lights 1,476 1,414 1,450 1,461 1,461 1,512 1,512 1,531 1,559 Recreation and culture Parks 15 15 15 17 17 18 18 19 19 Developed acres 205 205 205 217 230 236 236 236 236 Undeveloped acres 74 151 151 151 151 216 216 216 216 Open space acres 741 996 996 996 1,042 1,042 1,120 1,120 1,265 Libraries 1 1 1 1 1 1 1 1 1 Utilities Water mains (miles) 215 218 227 230 230 230 233 235 235 Sanitary sewer (miles) 179 181 184 186 186 186 191 192 192 Water connections 7,324 7,439 7,518 7,809 8,097 8,197 8,240 8,267 8,302 Wastewater connections 6,851 6,942 7,173 7,544 7,571 7,672 7,685 7,651 7,631 Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 CITY OF LAFAYETTE, COLORADO CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM SCHEDULE 15 Last Nine Fiscal Years 143 ---PAGE BREAK--- COMPLIANCE SECTION This section consists of the following:  Local highway finance report 2009 ---PAGE BREAK--- Financial Planning 02/01 Form # 350-050-3 6 The public report burden for this information collection is estimated to averane 380 hours annually. II. RECEIPTS FOR ROAD AND STREET PURPOSES - - City or County: City of Lafayette LOCAL HIGHWAY FINANCE REPORT YEAR ENDING: December 2009 This Information From The Records Of (example - City of or County of Prepared By: Robert Wright City of Lafayette Phone: [PHONE REDACTED] I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE A. Local B. Local C. Receipts from D. Receipts from ITEM Motor-Fuel Motor-Vehicle State Highway- Federal Highway T, User - 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM — ITEM AMOUNT A. Receipts from local sources: Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 2,155,921 a. Motor Fuel (from Item lAS.) 2. Maintenance: b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total a. Traffic control operations 2. General fund appropriations 2,D /9,332 b. Snow and ice removal 3. Other local imposts (from page 2) 3,046,702 c. Other 4. Miscellaneous local receipts (from page 2) 527,160 d. Total through 5. Transfers from toll facilities 4. General administration & miscellaneou: 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total + b. + 0 a. Interest 7. Total (1 through 6) 6,153,194 b. Redemption B. Private Contributions 1,855,096 c. Total + C. Receipts from State government 2. Notes: (from page 2) 731,944 a. Interest D. Receipts from Federal Government b. Redemption c. Total + 0 3. Total (l.c÷2.c) 3,106,416 . Payments to State for highways Payments_to_toll_facilities . Total disbursements (A.6 + B.3 + C + 1) 9,304,021 A. Beginning Balance B. Total Receipts Z. Total Disbursement D. Ending Balance E. Reconciliation 5,403,852 8,740,234 I 9,304,021 I 4,840,065 0 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A Bonds (Total) 11,923,483 2,752,308 9,171,175 1. Bonds_(Refunding_Portion) B. Notes (Total) V. LOCAL ROAD AND STREET FUND BALANCE FORM FHWA-536 (Rev. 1-05) PREVIOUS liJJii1UNS OI3SULhIE (Next Fage) B1ank536-CYO9 145 ---PAGE BREAK--- C C CD CD 0 z CD CD F- H 0 0)0 0) C 0) 0) CD + + h 4LJ CJCM() CD CD 0) E Tj 0)0) C)<0 CDDZ< 0 CD 0)00) 0)0)0) — 0) CD-, 0) 0 0) H 0 0) 0 0) 1 C) C) 0 0) + + + CJD lD z C C Cl) C Cl) — Cz Cr) Dz c 0 Cr) z — t’J0O (MOO \000 0- (M1(MOO C ‘-CL.)C t’JJt’J\C -((r)OO CCC CM U) H0 C) H OO 00 ‘.000 0- \CUi(M0O 0- )Ct’J’.C (.)C(M00 COO 146