Document Lafayette_doc_3fb33c9993

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2008 City of Lafayette, Colorado ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2008 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 2008 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended December 31, 2008 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 6 GFOA Certificate of Achievement 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 Activities 33 Statement of Net Assets – Proprietary Funds 34 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds 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 Note to Required Supplementary Information 82 Other Schedules: Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – Nonmajor Governmental Funds 86 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 87 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 – Lafayette City Center GID 91 Budgetary Comparison Schedule – Exempla 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 Eight Years (Schedule 1) 115 Changes in Net Assets, Last Eight Years (Schedule 2) 117 Fund Balances, Governmental Funds, Last Eight Years (Schedule 3) 121 Changes in Fund Balances, Governmental Funds, Last Eight 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 Eight Years (Schedule 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 Eight Years (Schedule 11) 136 Demographic and Economic Information: Demographic and Economic Statistics and Top Ten Employers for 1999 and 2008, Last Eight Years (Schedule 12) 139 Operating Information: Full-time Equivalent City Employees by Function/Program (Schedule 13) 140 Operating Indicators by Function/Program (Schedule 14) 141 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, 2008 INTRODUCTORY SECTION 2008 ---PAGE BREAK--- Finance Department 1290 S. Public Road • Lafayette, Colorado 80026 • (303) 665-5588 Fax (303) 665-2153 July 31, 2009 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, 2008, 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. Six Special Revenue Funds are also included in this report as blended component units. These are legally separate organizations for which the City of Lafayette is financially accountable. City Council acts as the governing board for each of the Special Revenue Funds. 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-25,945) 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, Lafayette Urban Renewal Authority, nonmajor governmental funds, and proprietary funds. Factors Affecting Financial Condition Local Economy The City has not escaped 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. The result was a precipitous drop in use taxes, construction-related services, and water and sewer tap fee revenues. On the other hand, consumer activity remained strong throughout the year providing a boost to sales tax revenues. In spite of the current economic uncertainty, 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. 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 8 ---PAGE BREAK--- 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. 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 public and private improvements along this one-mile stretch of road in the City’s old town area. The construction of a Festival Plaza along South Public Road in the urban renewal area commenced in November, 2008. Upon its completion in early 2009, the plaza will attract more activities to old town, benefitting the local businesses. 9 ---PAGE BREAK--- 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. 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, 2007. This was the 21st 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 2008 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 eighth 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 2008 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 Klaphake, CCM Robert E. Wright, CPA City Administrator Finance Director 10 ---PAGE BREAK--- 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 David Strungis, Mayor Pro-Tem Kerry Bensman Frank Phillips Jay Ruggeri Carolyn Cutler Alex Schatz ADMINISTRATION Gary Klaphake City Administrator Bonnie Star Community Development Director Michele Seipp 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 Planning and Building 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, 2008 FINANCIAL SECTION 2008 ---PAGE BREAK--- Certified Public Accountants 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, 2008, 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, 2008, 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 ofthe supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lafayette's basic financial statements. The combining and individual fund statements and 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. July 31, 2009 F UI @ 15 ---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, 2008, 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 2008 by $225 million (net assets). Of this amount, $44 million, or 19%, is unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. • In April, 2008, the City issued Sales and Use Tax Revenue Bonds in the amount of $6.9 million for street improvements and an expansion of the Recreation Center. • The City entered into a contract to construct and install energy improvements, and entered into a capital lease agreement in the amount of $1.1 million to finance the program. • General sales tax revenue increased by 8.4% over 2007 as a result of continued local retail strength resulting from the need for basic supplies. Use tax revenues, on the other hand, were significantly lower, indicating the weakness in the economy involving construction and auto purchases. • At the close of 2008, the City’s unreserved general fund balance was $7.4 million on a modified accrual basis, a 16% increase over 2007. 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). 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 16 ---PAGE BREAK--- 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. 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. 17 ---PAGE BREAK--- 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 progress in funding its obligation to provide pension benefits to its volunteer firefighters and a budgetary comparison schedule for the General Fund and the Lafayette Urban Renewal Authority. 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 2008 are compared with the results of 2007 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 $225 million at the close of 2008, an increase of 2% from 2007. The following table reflects amounts in thousands. Governmental Activities Business-type Activities Total 2008 2007 2008 2007 2008 2007 Current and Other Assets $ 41,726 $ 33,371 $ 33,479 $ 33,859 $ 75,205 $ 67,230 Capital Assets 125,297 122,114 95,789 95,023 221,086 217,137 Total Assets 167,023 155,485 129,268 128,882 296,291 284,367 Long-term Liabilities Outstanding 35,164 29,328 26,014 26,874 61,178 56,202 Other Liabilities 8,982 6,468 908 1,147 9,890 7,615 Total Liabilities 44,146 35,796 26,922 28,021 71,068 63,817 Net Assets: Invested in Capital Assets, net of related debt 91,484 94,030 74,995 75,357 166,479 169,387 Restricted 14,990 9,669 - - 14,990 9,669 Unrestricted 16,403 15,990 27,351 25,504 43,754 41,494 Total Net Assets $ 122,877 $ 119,689 $ 102,346 $ 100,861 $225,223 $ 220,550 By far the largest portion of the City’s net assets (74%) 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. Capital assets in governmental activities increased during 2008 primarily as a result of developer dedicated land and rights-of-way, which amounted to $1.5 million, and street improvements ($2.3 million). The street improvements were funded by a $6.9 million bond issue, thereby increasing long term liabilities. The remaining cash from the bond issue (approx. $4.6 million) increased current and 18 ---PAGE BREAK--- other assets, as well as restricted net assets. Current and other assets were also increased by additional property taxes receivable from the mill levy increase related to Ambulance and Fire services. 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, 2008, $4.6 million remained to be spent on these projects. During 2008, the City invested $1 million in land for a peaking plant site for a future water storage and distribution facility. Changes in Net Assets The City’s total revenues, including the special item, of $40.6 million exceeded expenses, including the special item, of $35.9 million resulting in an increase in net assets of $4.7 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: 2008 2007 2008 2007 2008 2007 Charges for services $5,144 $3,930 $10,477 $10,034 $15,621 $13,964 Operating grants 1,208 1,210 - - 1,208 1,210 Capital grants & contributions 3,289 6,870 1,086 8,065 4,375 14,935 General revenue: Property taxes 4,476 4,522 - - 4,476 4,522 Sales and use taxes 10,292 10,081 - - 10,292 10,081 Interest 1,456 1,300 2,045 2,071 3,501 3,371 Gain on sale of property 8 7 - - 8 7 Franchise Taxes 1,000 868 - - 1,000 868 Other general revenues 31 30 - - 31 30 Total revenues 26,904 28,818 13,608 20,170 40,512 48,988 Program expenses: General government 5,441 4,590 - - 5,441 4,590 Judicial 290 310 - - 290 310 Public safety 7,382 6,914 - - 7,382 6,914 Public works 4,916 3,633 - - 4,916 3,633 Culture and recreation 5,698 5,296 - - 5,698 5,296 Interest on long-term debt 1,515 1,492 - - 1,515 1,492 Water - - 5,486 5,139 5,486 5,139 Water reclamation - - 2,889 2,611 2,889 2,611 Golf course - - 1,837 1,795 1,837 1,795 Storm Water - - 25 - 25 - Total expenses 25,242 22,235 10,237 9,545 35,479 31,780 Excess before transfers and special items 1,662 6,583 3,371 10,625 5,033 17,208 Special Items: Gain on fire conversion 110 199 - - 110 199 Return of water rights to developer - - (469) - (469) - Transfers 1,416 1,415 (1,416) (1,415) - - Increase in net assets 3,188 8,197 1,486 9,210 4,674 17,407 19 ---PAGE BREAK--- Governmental activities During 2008, net assets in governmental activities increased by $3.1 million. Charges for services increased as a result of the city-wide trash and recycle program operating for a full year in 2008. Although sales tax revenue increased by 8.4% during 2008 reflecting the relative strength of retail outlets in the City, the substantial decrease in use taxes and increased incentive payments more than offset the sales tax impact. Capital grants decreased $3 million when developer dedicated land dropped as a result of the economy, and accepted infrastructure experienced a timing difference. Expenses increased during the year primarily due to overall personnel, fuel, and utility cost increases, as well as the trash and recycling program operation ($0.5 million). $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 General Government Judicial Public Safety Public Works Culture and Recreation Interest and Fiscal Charges 2008 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 only account for 36% of total revenues related to governmental activities. 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. Charges for services 19% Operating grants 5% Capital grants 12% Property taxes 17% Sales and use taxes 38% Interest 5% Other general revenues 4% 2008 Revenues by Source - Governmental Activities 20 ---PAGE BREAK--- Business-type activities Net assets in business-type activities increased by $1.5 million during 2008. Charges for services increased as a result of a new Storm Water utility. However, the most significant impact on the net assets was the near elimination of developer dedications, accounting for the $7 million decrease in capital grants and contributions in the Water Fund and Water Reclamation Fund as previously mentioned. Expense increases were in the same areas as with governmental activities – personnel, fuel, and utilities. 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 Water Water Reclamation Golf Course Storm Water 2008 Expenses and Program Revenues - Business-type Activities Expenses Program Revenues 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 2008, the city reported a combined fund balance of $26.3 million, a slight increase of $6 million. The Capital Projects Fund fund balance increased $4.5 million as a result of the bond proceeds received in April, 2008 for street improvements and construction of an addition to the Recreation Center facility. The General Fund fund balance increased $1 million, the Lafayette Urban Renewal Fund fund balance increased $0.2 million, and the Exempla GID fund balance increased $0.9 million mostly from a contribution from the North Reimbursement District. $8.5 million was unreserved 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: Reserved for Inventory, Prepaid Expenses, and Assets Held for Resale $ 2,064,891 Reserved for Administrator Severance Package 548,102 Reserved for GID Expenditures 3,963,083 Reserved for Ace Hardware Lease Guarantee 1,282,500 Reserved for Capital Projects 9,744,683 Reserved for Various Community Projects 169,875 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 2008, the City reported unrestricted net assets of $27.4 million, a slight increase of $1.9 million. Other factors concerning the finances of these funds have been discussed above in the business-type activities section. General Fund Budgetary Highlights The General Fund accounts for all of the general services provided by the City of Lafayette. At the end of 2008, the fund balance of the general fund had increased by $1 million to $12.3 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 2008 Budget & Actual Revenue by Source - General Fund Budget Actual As discussed previously, actual sales tax revenues were higher than in 2007, but the lack of growth in use taxes substantially reduced the end result. The 2008 budget was prepared by projecting sales in anticipation of continued growth in established retailers. However, the substantial decline in building use taxes and motor vehicle use taxes was not anticipated to the extent that it occurred. Therefore, total expenditures were reduced 3.5% in order to provide a reserve to absorb the revised revenue decreases. At the end of 2008, the actual decrease in revenues was approximately 1.5 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 8,000,000 General Government Judicial Public Safety Public Works Culture and Recreation Capital Outlay 2008 Budget & Actual Expenditures by Source - General Fund Budget Actual Operating expenditures were controlled and under budget in all functions except Public Safety and Public Works. Higher fuel and utility costs caused significant problems during 2008. 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, 2008 amounts to $221 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 2008 (with prior year Work-in-Progress (WIP)) include (in thousands): Developer Dedications- Land & Rights-of-Way $1,523 Street Improvements & Signalization 2,509 Energy Program Additions 518 Acquisition of Open Space Land 1,058 Acquisition of Peaking Plant Site 980 West 2 Sewer Line Trunk Rehab 999 23 ---PAGE BREAK--- Capital Assets at Year-End (Net of Depreciation, in thousands) Governmental Business-type Activities Activities Total 2008 2007 2008 2007 2008 2007 Land $ 58,421 $ 55,988 $ 7,515 $ 4,999 $ 65,936 $ 60,987 Water Rights - - 24,952 25,407 24,952 25,407 Buildings and Systems 15,473 15,846 58,799 59,240 74,272 75,086 Improvements other than Buildings 367 417 108 130 475 547 Infrastructure 46,167 45,926 - - 46,167 45,926 Equipment 3,903 3,721 3,725 3,458 7,628 7,179 Construction in Process 966 216 691 1,789 1,657 2,005 Total $125,297 $122,114 $95,790 $95,023 $221,087 $217,137 Additional information on the City’s capital assets can be found in Note 5 to the Financial Statements. Bonded Debt: At December 31, 2008, the City had total bonded debt outstanding of $50.7 million. Of this amount, $9.9 million consisted of debt backed by the full faith and credit of the City, and the balance of $40.8 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 2008 2007 2008 2007 2008 2007 General obligation bonds $ 7.2 $ 7.9 $ 2.7 $ 3.3 $ 9.9 $ 11.2 Revenue bonds 14.4 8.2 16.0 16.0 30.4 24.2 Demand bonds 10.4 11.0 - - 10.4 11.0 Total bonded debt $ 32.0 $ 27.1 $ 18.7 $ 19.3 $ 50.7 $ 46.4 Economic Factors and Next Year’s Budgets and Rates The City of Lafayette is in a strong financial position. At December 31, 2008, fund balance in the general fund was at $12.3 million. Council’s policy in this area is to maintain the General Fund balance at 25% of budgeted expenditures. This policy is revised annually. Revenues for 2009 were estimated based on the following assumptions: • Water usage will be similar to 2008 • Golf Course revenues will increase • No increase in recreation fees to remain competitive with neighboring facilities. • Revenue from sales and use tax returns will decrease 10%. • 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 3% interest, as a result of previously purchased investments. Based on early 2009 results, General Fund revenues are 3% lower than at the same time in 2008, but sales tax revenues are almost flat which is indicative of the strength of the local economy. General Fund expenditures have decreased approximately $700,000 over the same period in 2008 as a result of the restructuring in November, 2008, and related 1% across-the-board cut. Water Fund metered water sales are similar to 2008 for the same period and water tap fees to date in 2009 have dropped considerably from 2008. 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 2008 ---PAGE BREAK--- Governmental Business-type Activites Activities Total ASSETS Cash and Investments 19,848,591 $ 27,406,493 $ 47,255,084 $ Accrued Interest Receivable 338,890 266,433 605,323 Accounts Receivable (Net of Allowance for Uncollectibles) 2,790,175 311,339 3,101,514 Property Taxes Receivable 6,075,768 - 6,075,768 Prepaid Expenses 172,798 215,530 388,328 Inventory 18,459 80,863 99,322 Notes Receivable 2,377,975 - 2,377,975 Restricted Cash and Investments 6,487,533 4,610,640 11,098,173 Special Assessments Receivable 1,135,273 215,601 1,350,874 Assets Held for Resale 2,031,968 - 2,031,968 Capital Assets (Net of Accumulated Depreciation) Land 58,420,982 7,515,180 65,936,162 Water Rights - 24,951,789 24,951,789 Buildings and Systems 15,472,674 58,799,107 74,271,781 Improvements Other than Buildings 367,011 107,745 474,756 Infrastructure 46,166,717 - 46,166,717 Equipment 3,903,123 3,724,877 7,628,000 Construction in Progress 966,317 690,881 1,657,198 Bond Issue Costs, Net of Amortization 449,629 371,688 821,317 Total Assets 167,023,883 129,268,166 296,292,049 LIABILITIES Accounts Payable 690,259 144,751 835,010 Accounts Payable from Restricted Assets 570,191 - 570,191 Accrued Liabilities 616,176 296,510 912,686 Deposits Payable 891,574 34,145 925,719 Water and Sewer Tap Fees Received in Advance - 432,841 432,841 Deferred Revenues 6,214,240 - 6,214,240 Noncurrent Liabilities Due Within One Year 3,205,333 1,291,414 4,496,747 Due in More than One Year 31,958,852 24,722,423 56,681,275 Total Liabilities 44,146,625 26,922,084 71,068,709 NET ASSETS Invested in Capital Assets, Net of Related Debt 91,484,033 74,995,070 166,479,103 Restricted for: Capital Projects 9,744,683 - 9,744,683 Ace Hardware Lease Guarantee 1,282,500 - 1,282,500 GID Obligations 3,963,083 - 3,963,083 Unrestricted 16,402,959 27,351,012 43,753,971 Total Net Assets 122,877,258 $ 102,346,082 $ 225,223,340 $ The notes to the financial statements are an integral part of this statement. CITY OF LAFAYETTE, COLORADO STATEMENT OF NET ASSETS December 31, 2008 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 5,440,531 $ 1,311,750 $ 20,139 $ 148,796 $ (3,959,846) $ - $ (3,959,846) $ Judicial 290,116 915,158 - - 625,042 - 625,042 Public Safety 7,382,185 572,876 305,680 40,001 (6,463,628) - (6,463,628) Public Works 4,916,059 964,251 796,116 2,659,424 (496,268) - (496,268) Culture and Recreation 5,698,114 1,380,001 86,395 440,904 (3,790,814) - (3,790,814) Interest and Fiscal Charges 1,514,513 - - - (1,514,513) - (1,514,513) Total Governmental Activities 25,241,518 5,144,036 1,208,330 3,289,125 (15,600,027) - (15,600,027) Business-type Activities Water 5,486,174 5,574,085 - 847,994 - 935,905 935,905 Water Reclamation 2,889,586 1,553,045 - 238,077 - (1,098,464) (1,098,464) Golf Course 1,836,742 2,424,316 - - - 587,574 587,574 Storm Water 25,141 925,466 - - - 900,325 900,325 Total Business-type Activities 10,237,643 10,476,912 - 1,086,071 - 1,325,340 1,325,340 Total All Activities 35,479,161 $ 15,620,948 $ 1,208,330 $ 4,375,196 $ (15,600,027) 1,325,340 (14,274,687) General Revenues: Property Taxes 4,475,327 - 4,475,327 General Sales & Use Taxes 10,291,910 - 10,291,910 Unrestricted Intergovernmental Revenues 31,075 - 31,075 Franchise Taxes 1,000,028 - 1,000,028 Interest 1,455,686 2,045,405 3,501,091 Gain on Sale of Property 7,946 - 7,946 Transfers 1,415,946 (1,415,946) - Special Items: Gain on Fire Conversion 110,036 - 110,036 Return of Water Rights to Developer - (469,263) (469,263) Total General Revenues and Transfers 18,787,954 160,196 18,948,150 Change in Net Assets 3,187,927 1,485,536 4,673,463 Net Assets - Beginning January 1 119,689,331 100,860,546 220,549,877 Net Assets - Ending December 31 122,877,258 $ 102,346,082 $ 225,223,340 $ 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, 2008 28 ---PAGE BREAK--- Lafayette Other Urban Renewal Governmental General Authority Funds Total ASSETS Cash and Investments 10,180,944 $ 912,030 $ 7,501,273 $ 18,594,247 $ Accrued Interest Receivable 86,934 6,610 108,792 202,336 Accounts Receivable Net of Allowance for Uncollectables 1,879,682 17,402 10,366 1,907,450 Property Taxes Receivable 2,871,423 116,169 3,088,176 6,075,768 Prepaid Expenses 14,464 - - 14,464 Due from Other Funds 8,081 - - 8,081 Inventory 18,459 - - 18,459 Notes Receivable 1,895 2,376,080 - 2,377,975 Restricted Cash and Investments 668,358 - 5,819,175 6,487,533 Special Assessments Receivable 695,873 - 439,400 1,135,273 Assets Held for Resale 2,031,968 - - 2,031,968 Total Assets 18,458,081 $ 3,428,291 $ 16,967,182 $ 38,853,554 $ LIABILITIES Accounts Payable 600,290 $ 23,267 $ 23,533 $ 647,090 $ Accounts Payable from Restricted Assets 368,742 - 201,449 570,191 Accrued Liabilities 478,551 - - 478,551 Deposits Payable 723,274 2,000 141,277 866,551 Due to Other Funds - - 8,081 8,081 Deferred Revenues 3,941,963 2,466,169 3,527,576 9,935,708 Total Liabilities 6,112,820 2,491,436 3,901,916 12,506,172 FUND BALANCE Reserved for Inventory, Prepaid Expenses, and Assets Held for Resale 2,064,891 - - 2,064,891 Reserved for Administrator Severance Package 548,102 - - 548,102 Reserved for GID Expenditures - - 3,963,083 3,963,083 Reserved for Ace Hardware Lease Guarantee 1,282,500 - - 1,282,500 Reserved for Capital Projects 829,761 - 8,914,922 9,744,683 Reserved for Various Community Projects 169,875 - - 169,875 Unreserved reported in: General Fund 7,450,132 - - 7,450,132 Special Revenue Funds - 936,855 - 936,855 Debt Service Fund - - 187,261 187,261 Total Fund Balance 12,345,261 936,855 13,065,266 26,347,382 Total Liabilities and Fund Balance 18,458,081 $ 3,428,291 $ 16,967,182 $ 38,853,554 $ The notes to the financial statements are an integral part of this statement. CITY OF LAFAYETTE, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2008 29 ---PAGE BREAK--- Total Governmental Fund Balances 26,347,382 $ 993,858 2,350,000 125,296,824 449,629 912,360 1,346,447 (34,819,242) Net Assets of the Governmental Activities 122,877,258 $ 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, 2008 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 $38,249,583. 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 Other Urban Renewal Governmental General Authority Funds Total Revenues Taxes 10,848,591 $ 200,744 $ 3,722,200 $ 14,771,535 $ Licenses and Permits 253,390 - - 253,390 Intergovernmental 1,209,123 53,554 247,708 1,510,385 Fines and Forfeitures 915,158 - - 915,158 Franchise Taxes 1,000,028 - - 1,000,028 Special Assessments Principal 44,848 - 1,120,361 1,165,209 Special Assessments Interest 8,065 - 589,084 597,149 Interest 579,339 45,684 767,558 1,392,581 Sidewalk Maintenance/Repair 88,598 - - 88,598 Contributions and Misc Grants 222,094 - 1,000 223,094 Charges for Services 3,256,023 - - 3,256,023 Administrative Fees 42,627 - 15,000 57,627 Miscellaneous 7,946 85,481 5,758 99,185 Total Revenues 18,475,830 385,463 6,468,669 25,329,962 Expenditures Current General Government 5,039,654 98,665 99,659 5,237,978 Judicial 290,028 - - 290,028 Public Safety 6,705,783 - 1,228 6,707,011 Public Works 2,439,611 - 204,066 2,643,677 Culture and Recreation 4,672,058 - 53,744 4,725,802 Capital Outlay 1,441,747 119,098 4,090,360 5,651,205 Debt Service Capital Lease and Loan Payments - - 243,990 243,990 Principal - - 2,100,000 2,100,000 Interest and Fiscal Charges - - 1,428,637 1,428,637 Bond Issuance Costs - - 49,500 49,500 Total Expenditures 20,588,881 217,763 8,271,184 29,077,828 Excess (Deficiency) of Revenues Over Expenditures (2,113,051) 167,700 (1,802,515) (3,747,866) Other Financing Sources (Uses) Debt Issued 1,113,279 - 6,910,000 8,023,279 Transfers In 1,978,758 - 447,348 2,426,106 Transfers (Out) (366,739) - (643,421) (1,010,160) Total Other Financing Sources (Uses) 2,725,298 - 6,713,927 9,439,225 Special Item Insurance Proceeds-Boat House 410,709 - - 410,709 Total Special Item 410,709 - - 410,709 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the fiscal year ended December 31, 2008 GOVERNMENTAL FUNDS 31 ---PAGE BREAK--- Lafayette Other Urban Renewal Governmental General Authority Funds Total Net Change in Fund Balance 1,022,956 167,700 4,911,412 6,102,068 Fund Balance, January 1 11,322,305 769,155 8,153,854 20,245,314 Fund Balance, December 31 12,345,261 $ 936,855 $ 13,065,266 $ 26,347,382 $ 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, 2008 32 ---PAGE BREAK--- Amounts reported for governmental activities in the Statement of Activities are different because: 6,102,068 $ 3,261,459 (5,629,789) (524,377) 215,945 (263,000) 25,621 3,187,927 $ The notes to the financial statements are an integral part of this statement. 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 $5,651,205, and developer dedications of $1,523,641, exceeded depreciation ($3,913,387) in the current period. CITY OF LAFAYETTE, COLORADO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the fiscal year ended December 31, 2008 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 21,300,322 $ 4,445,595 $ 266,181 $ 1,394,395 $ 27,406,493 $ 1,254,344 $ Accrued Interest Receivable 216,548 34,136 4,773 10,976 266,433 9,685 Accounts Receivable 159,964 120,258 7,610 23,507 311,339 15,735 Prepaid Expenses - 215,530 - - 215,530 158,334 Inventory - - 80,863 - 80,863 - Restricted Cash and Investments 4,610,640 - - - 4,610,640 - Total Current Assets 26,287,474 4,815,519 359,427 1,428,878 32,891,298 1,438,098 Noncurrent Assets Assessments Receivable - 215,601 - - 215,601 - Bond Issue Costs, Net of Amortization 329,376 42,312 - - 371,688 - Capital Assets Water and Sewer system 49,256,854 30,328,391 - - 79,585,245 - Buildings and Improvements 102,010 200,255 1,320,917 - 1,623,182 - Improvements Other than Buildings - - 410,720 - 410,720 - Equipment 5,928,191 2,462,625 1,301,425 - 9,692,241 - Accumulated Depreciation (17,337,818) (9,657,364) (1,684,477) - (28,679,659) - Total Plant and Equipment, Net of Accumulated Depreciation 37,949,237 23,333,907 1,348,585 - 62,631,729 - Land 6,798,624 716,556 - - 7,515,180 - Water Rights 24,951,790 - - - 24,951,790 - Construction in Progress 515,565 175,315 - - 690,880 - Total Capital Assets, Net of Accumulated Depreciation 70,215,216 24,225,778 1,348,585 - 95,789,579 - Total Noncurrent Assets 70,544,592 24,483,691 1,348,585 - 96,376,868 - Total Assets 96,832,066 $ 29,299,210 $ 1,708,012 $ 1,428,878 $ 129,268,166 $ 1,438,098 $ 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, 2008 34 ---PAGE BREAK--- Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Current Liabilities Accounts Payable 69,596 $ 53,586 $ 21,569 $ - $ 144,751 $ 18,893 $ Deposits Payable - - 34,145 - 34,145 - Claims Payable - - - - - 24,276 Accrued Liabilities Accrued Interest Payable 73,104 106,499 - - 179,603 - Accrued Payroll 62,098 31,851 22,958 - 116,907 - Water and Sewer Tap Fees Received in Advance 279,452 153,389 - - 432,841 - Current Portion of Long-Term Debt 723,341 438,484 129,589 - 1,291,414 482,569 Total Current Liabilities 1,207,591 783,809 208,261 - 2,199,661 525,738 Noncurrent Liabilities Long-Term Obligations 18,079,814 6,307,340 335,269 - 24,722,423 - Total Noncurrent Liabilities 18,079,814 6,307,340 335,269 - 24,722,423 - Total Liabilities 19,287,405 $ 7,091,149 $ 543,530 $ - $ 26,922,084 $ 525,738 $ Net Assets Invested in Capital Assets, Net of Related Debt 56,460,414 17,591,507 943,149 - 74,995,070 - Unrestricted 21,084,247 4,616,554 221,333 1,428,878 27,351,012 912,360 Total Net Assets 77,544,661 $ 22,208,061 $ 1,164,482 $ 1,428,878 $ 102,346,082 $ 912,360 $ 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, 2008 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 5,510,226 $ - $ - $ - $ 5,510,226 $ - $ Waste Water Collection Fees - 1,551,183 - - 1,551,183 - Storm Water Collection Fees - - - 924,296 924,296 - Golf Sales and Services - - 2,401,924 - 2,401,924 - Miscellaneous Services - - - - - 2,127,570 Other 63,859 1,862 22,392 1,170 89,283 - Total Operating Revenues 5,574,085 1,553,045 2,424,316 925,466 10,476,912 2,127,570 Operating Expenses Administration 359,378 176,793 161,877 983 699,031 - Source of Water Supply 411,693 - - - 411,693 - Water Treatment 1,480,547 - - - 1,480,547 - Water Transmission and Distribution 657,920 - - - 657,920 - Waste Water Treatment - 973,534 - - 973,534 - Waste Water Collection - 596,310 - - 596,310 - Golf Maintenance Operations - - 664,816 - 664,816 - Golf Club House Operations - - 587,049 - 587,049 - Golf Food Service Operations - - 230,923 - 230,923 - Storm Water Collection - - - 24,158 24,158 - Premiums Paid - - - - - 2,098,830 Miscellaneous - - - - - 66,328 Depreciation 1,610,465 884,164 164,602 - 2,659,231 - Amortization 29,013 3,255 - - 32,268 - Total Operating Expenses 4,549,016 2,634,056 1,809,267 25,141 9,017,480 2,165,158 Operating Income (Loss) 1,025,069 (1,081,011) 615,049 900,325 1,459,432 (37,588) Non-operating Revenues (Expenses) Interest Revenue 1,373,781 583,796 23,833 63,995 2,045,405 63,209 Interest Expense (913,970) (255,531) (27,475) - (1,196,976) - Bond Fees (5,300) - - - (5,300) - Net Loss on Disposal of Capital Assets (17,887) - - - (17,887) - Total Non-operating Revenues (Expenses) 436,624 328,265 (3,642) 63,995 825,242 63,209 Net Income (Loss) Before Contributions, Transfers, and Special Items 1,461,693 (752,746) 611,407 964,320 2,284,674 25,621 CITY OF LAFAYETTE, COLORADO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2008 36 ---PAGE BREAK--- Nonmajor Governmental Water Proprietary Activities - Water Reclamation Golf Storm Internal Utility Utility Course Water Total Service Funds Capital Contributions Tap Fees 367,912 $ 238,077 $ - $ - $ 605,989 $ - $ Payments in Lieu of Water 480,082 - - - 480,082 - Transfers Transfers Out (600,399) (171,969) (564,971) (78,607) (1,415,946) - Special Items Return of Water Rights to Developer (469,263) - - - (469,263) - Total Contributions, Transfers, and Special Items (221,668) 66,108 (564,971) (78,607) (799,138) - Changes in Net Assets 1,240,025 (686,638) 46,436 885,713 1,485,536 25,621 Total Net Assets, January 1 76,304,636 22,894,699 1,118,046 543,165 100,860,546 886,739 Total Net Assets, December 31 77,544,661 $ 22,208,061 $ 1,164,482 $ 1,428,878 $ 102,346,082 $ 912,360 $ The notes to the financial statements are an integral part of this statement. PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2008 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 5,597,224 $ 1,534,831 $ 2,416,706 $ 929,430 $ 10,478,191 $ 63,769 $ Receipts from Interfund Services Provided - - - - - 2,063,801 Payments to Suppliers (1,433,820) (1,124,007) (770,715) (25,148) (3,353,690) (2,146,748) Payments to Employees (1,133,688) (723,548) (775,518) - (2,632,754) (47,485) Payment for Interfund Services Used (336,226) (158,424) (94,163) - (588,813) - Net Cash Provided (Used) by Operating Activities 2,693,490 (471,148) 776,310 904,282 3,902,934 (66,663) Cash Flows from Noncapital Financing Activities Transfers to Other Funds (600,399) (171,969) (564,971) (78,607) (1,415,946) - Net Cash Used by Noncapital Transfers (600,399) (171,969) (564,971) (78,607) (1,415,946) - Cash Flows from Capital and Related Financing Activities Payment in Lieu of Water 480,082 - - - 480,082 - Tap Fees 383,727 243,033 - - 626,760 - Acquisition and Construction of Capital Assets (2,433,705) (1,419,728) (183,967) - (4,037,400) - Proceeds from Disposal of Capital Assets 48,555 60,932 4,449 - 113,936 - Bond Fees (5,300) - - - (5,300) - Principal Paid on Capital Debt (624,366) (385,689) (92,173) - (1,102,228) - Interest Paid on Capital Debt (900,696) (257,518) (27,476) - (1,185,690) - Net Cash (Used) by Capital and Related Financing Activities (3,051,703) (1,758,970) (299,167) - (5,109,840) - Cash Flows from Investing Activities Interest Received 1,397,281 608,104 26,579 57,239 2,089,203 64,654 Net Cash Provided by Investing Activities 1,397,281 608,104 26,579 57,239 2,089,203 64,654 Net Increase (Decrease) in Cash and Investments 438,669 (1,793,983) (61,249) 882,914 (533,649) (2,009) Cash and Investments, January 1 25,472,293 6,239,578 327,430 511,481 32,550,782 1,256,353 Cash and Investments, December 31, Including $4,610,640 Reported in Restricted Accounts for the Water Fund 25,910,962 $ 4,445,595 $ 266,181 $ 1,394,395 $ 32,017,133 $ 1,254,344 $ CITY OF LAFAYETTE, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the fiscal year Ended December 31, 2008 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, 2008 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 1,025,069 $ (1,081,011) $ 615,049 $ 900,325 $ 1,459,432 $ (37,588) $ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation Expense 1,610,465 884,164 164,602 - 2,659,231 - Amortization Expense 29,013 3,255 - - 32,268 - (Increase) Decrease in Accounts Receivable 23,139 (18,214) (7,610) 3,963 1,278 (15,406) (Increase) Decrease in Prepaid Expense - (215,530) - - (215,530) (73,733) (Increase) in Inventories - - (14,985) - (14,985) - Increase (Decrease) in Accounts Payable (24,328) (55,673) 8,000 (72,007) 5,360 Increase (Decrease) in Accrued Payroll 20,651 6,806 5,568 - 33,025 - Increase in Compensated Absences 9,481 5,055 5,686 - 20,222 54,704 Total Adjustments 1,668,421 609,863 161,261 3,957 2,443,502 (29,075) Net Cash Provided by Operating Activities 2,693,490 $ (471,148) $ 776,310 $ 904,282 $ 3,902,934 $ (66,663) $ The notes to the financial statements are an integral part of this statement. 39 ---PAGE BREAK--- NOTES TO FINANCIAL STATEMENTS FINANCIAL SECTION 2008 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT INDEX FOR NOTES TO FINANCIAL STATEMENTS For the Fiscal Year Ended December 31, 2008 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 56 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, 2008 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, 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, 2008 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, 2008 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. 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 also recognizes 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 accounts for the treatment and distribution of the City’s water supply. The Water Reclamation Fund accounts for the operation of the City’s sewer system. The 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, 2008 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, Exempla 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, 2008 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 levied 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, 2008 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) G. Property Tax Receivable (continued) City certifies mill levies to County December 15 Lien 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, 2008 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, 2008 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, 2008, 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 government fund balance sheet includes reconciliation between fund balance-total governmental funds and net assets-governmental activities as reported in the governmental- 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 $1,346,447 difference are as follows: Special Assessments $ 1,136,156 Cemetery Endowment Care Earnings 1,643 WOW Note Receivable 1,895 Ambulance Accounts Receivable 206,753 Net adjustment to reduce fund balance – total governmental funds to arrive at net assets – governmental activities $ 1,346,447 50 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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 $(34,819,242) difference are as follows: Bonds Payable $ (31,990,000) Unamortized Debt Premium (25,028) Unamortized Charges - Refunding Bonds 560,463 Note Payable to Heritage Bank (728,805) Accrued Interest Payable (137,625) Capital Leases (2,079,051) Compensated Absences (901,765) Less amount included in Assets and Liabilities of Internal Service Funds 482,569 Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities $ (34,819,242) 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 $(5,629,789) difference are as follows: Debt issued or incurred: Bond Proceeds $ (6,910,000) Issue Costs 49,500 Capital Lease Proceeds (1,113,279) Principal Payments: Bond 2,100,000 Capital lease 206,853 Note Payable 37,137 Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net assets of governmental activities $ (5,629,789) 51 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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 $215,945 difference are as follows: Increase in Deferred Building Permit Fees $ 628,595 Decrease in Special Assessments (626,577) Accrued Interest Receivable (104) Amortization of Bond Premium 6,593 Ambulance Services 206,753 Increase in Cemetery Trust Earnings 685 Net adjustment to increase net changes in fund balances-total governmental funds to arrive at changes in net assets of governmental activities $ 215,945 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 $(263,000) difference are as follows: Retirements of Capital Assets Net of Accum Depr $ (79,234) Increase in Compensated Absences not Reported Through Internal Service Funds (50,643) Increase in Accrued Interest Payable (27,745) Amortization of - Issuance Costs (47,247) Deferred Amount on Refundings (58,131) Net adjustment to decrease net changes in fund balances total governmental funds to arrive at changes in net assets of governmental activities $ (263,000) 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, 2008 NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued) Deposits and investments at December 31, 2008, are summarized below: Cash and Cash Deposits $ 1,430,744 Investments 56,922,513 $ 58,353,257 Deposits and investments are presented in the financial statements as follows: Unrestricted $ 47,255,084 Restricted 11,098,173 $ 58,353,257 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, 2008 the City had bank deposits of $578,119 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, 2008 NOTE 3 CASH DEPOSITS AND INVESTMENTS (continued) B. Investments (continued): On December 31, 2008, 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 $ 3,065,157 $ 3,108,672 $ - $ - $ 6,173,829 Money Market Mutual Funds AAA 2,512,800 - - - 2,512,800 U.S. Agency Securities (Callable in 2009) * - 7,133,972 3,040,696 - 10,174,668 U.S. Agency Securities (FNMA & 6,028,055 2,088,511 2,170,212 - 10,286,778 U.S. Agency Securities (Other) AAA 7,625,742 14,325,245 2,182,930 - 24,133,917 Local Government Investment Pools AAA 3,309,121 - - - 3,309,121 Municipal Golf Course Revenue Bonds AAA 48,100 160,800 122,500 - 331,400 Totals $22,588,975 $26,817,200 $7,516,338 $ - $56,922,513 * All callable securities are either FNMA or 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, 2008, the City had investments held by Wells Fargo Brokerage Service in a custodial safekeeping account in the amount of $50,769,192. 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, 2008 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, 2008, the City’s investment in Federal Home Loan Bank was 21%, Federal Farm Credit Bureau was 21%, Federal Home Loan Mortgage Corporation was 18%, and Federal National Mortgage Association was 18%. The City’s investments in U.S. Government Agency Securities are at 78%. Due to the current economic climate, the City is temporarily seeking the best available rate of return regardless of type of investment. Local Government Investment Pool - The City had invested $3,309,121 in the Colorado Government Liquid Asset Trust (Colotrust) on December 31, 2008. 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 investments consist of U.S. Treasury and U.S. Agency Securities and repurchase agreements collateralized by U.S. Treasury and U.S. Agency Securities. 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. 55 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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, 2008, 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, 2008, the balances in the trust accounts amounted to $66,917. 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, 2008 is $4,610,640. 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 $228,761 at December 31, 2008, represents the contractor retainage and final installments due when the project is completed in 2009. 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, 2008, $4,728,675 remained for the above projects. In summary, restricted cash and investments at December 31, 2008 was as follows: Northwest Parkway Related Projects $ 372,680 Pre-need and endowment care trusts 66,917 Exempla GID 1,090,500 2003A Water Revenue Bonds 4,610,640 Colorado State Bank Escrow 228,761 2008 Sales and Use Tax Revenue Bonds 4,728,675 Total Restricted Cash and Investments $ 11,098,173 56 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2008, was as follows: Beginning Balance * Increases Decreases Ending Balance Governmental Activities: Capital Assets not being Depreciated Land $ 55,987,972 $2,581,281 $ (148,271) $58,420,982 Construction in Progress 216,438 757,521 (7,642) 966,317 Total 56,204,410 3,338,802 (155,913) 59,387,299 Capital Assets - Depreciated Buildings 20,553,510 110,234 (66,783) 20,596,961 Improvements Other Than Buildings 2,249,705 30,583 (9,467) 2,270,821 Infrastructure 67,362,359 2,674,654 (13,100) 70,023,913 Equipment 11,551,153 1,161,215 (1,444,955) 11,267,413 Total 101,716,727 3,976,686 (1,534,305) 104,159,108 Less Accumulated Depreciation For: Buildings (4,706,879) (479,988) 62,580 (5,124,287) Improvements Other than Buildings (1,832,247) (81,030) 9,467 (1,903,810) Infrastructure (21,436,668) (2,423,752) 3,224 (23,857,196) Equipment (7,830,743) (928,617) 1,395,070 (7,364,290) Total Accumulated Depreciation (35,806,537) (3,913,387) 1,470,341 (38,249,583) Total Capital Assets - Depreciated, Net 65,910,190 63,299 (63,964) 65,909,525 Governmental Capital Assets, Net $ 122,114,600 $3,402,101 $ (219,877) $125,296,824 Business-Type Activities: Capital assets, not being depreciated Land $ 4,998,833 $2,516,347 $ - $ 7,515,180 Water Rights 25,406,605 63,000 (517,816) 24,951,789 Construction in Progress 1,789,065 308,292 (1,406,476) 690,881 Total 32,194,503 2,887,639 (1,924,292) 33,157,850 Capital assets - Depreciated Buildings 1,624,006 - (825) 1,623,181 Systems 78,225,622 1,367,014 (7,390) 79,585,246 Improvements other than Buildings 423,209 - (12,488) 410,721 Equipment 8,720,370 1,105,326 (133,456) 9,692,240 Total Capital Assets - Depreciated 88,993,207 2,472,340 (154,159) 91,311,388 Less accumulated depreciation for: Buildings (550,263) (60,857) 825 (610,295) Systems (20,059,215) (1,742,080) 2,270 (21,799,025) Improvements other than buildings (292,682) (18,336) 8,042 (302,976) Equipment (5,262,861) (837,958) 133,456 (5,967,363) Total accumulated depreciation (26,165,021) (2,659,231) 144,593 (28,679,659) Total Capital Assets - Depreciated 62,828,186 (186,891) (9,566) 62,631,729 Business-type Capital Assets, Net $ 95,022,689 $2,700,748 $ (1,933,858) $95,789,579 *-Certain beginning balances were reclassified to conform to current year presentation. 57 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 5 CAPITAL ASSETS (continued) Depreciation expense was charged to function/program of the City as follows: Governmental Activities General Government $ 173,224 Judicial 117 Public Safety 613,703 Public Works 2,221,145 Culture and Recreation 905,198 Total depreciation expense governmental activities $ 3,913,387 Business-type Activities Water $ 1,610,465 Water Reclamation 884,164 Golf Course 164,602 Total depreciation expense business-type activities $ 2,659,231 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 $ 1,810,000 2005 General Obligation Bonds mature annually through December 15, 2025, interest at 3.00% to 4.40% is paid semi-annually 5,350,000 7,160,000 58 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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 $ 1,510,000 2003B General Obligation Water Refunding Bonds mature annually through December 1, 2012, interest at 2.00% to 3.90% is paid semi-annually 1,225,000 2,735,000 Total General Obligation Bonded Debt $ 9,895,000 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) $ 610,000 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) 2,550,000 2003C Sales and Use Tax Revenue Bonds mature annually through November 15, 2011, interest at 2.00% to 3.50% is paid semi-annually 2,255,000 2008 Sales and Use Tax Revenue Bonds mature annually through November 15, 2019, interest of 3.31% is paid semi-annually 6,910,000 14,365,000 59 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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 331,400 15,976,400 Total Revenue Bond Debt $ 30,341,400 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 2009 $ 1,615,000 $ 963,227 $ 693,100 $ 888,052 $ 4,159,379 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 2014-2018 7,370,000 2,890,802 4,287,900 3,298,890 17,847,592 2019-2023 3,615,000 1,613,491 5,335,000 2,188,606 12,752,097 2024-2028 2,015,000 866,897 5,340,000 683,750 8,905,647 2029-2033 1,180,000 329,100 - - 1,509,100 2034-2036 410,000 50,100 - - 460,100 Total $ 21,525,000 $ 10,002,540 $18,711,400 $10,312,674 60,551,614 60 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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, 2008, are as follows: Exempla General Improvement District Special Assessment Revenue Refunding and Improvement Bonds mature annually through December 1, 2022 $ 10,465,000 Total Demand Bond Debt $ 10,465,000 These bonds bear interest at flexible or variable rates and are subject to mandatory redemption upon conversion of the interest rate to a different rate type or rate period. 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 with an expiration date of January 29, 2009. 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 or the issuer. The debt service requirements must be met by the resources generated by the District. As described above, these bonds currently bear interest at flexible or variable rates. The final interest rate on December 31, 2008 was 1.10%. 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 1.10% has been used in projected annual debt service requirements. Year Principal Interest Total 2009 $ 565,000 $ 115,115 $ 680,115 2010 585,000 108,900 693,900 2011 610,000 102,465 712,465 2012 640,000 95,755 735,755 2013 665,000 88,715 753,715 2014-2018 3,770,000 327,415 4,097,415 2019-2022 3,630,000 101,915 3,731,915 Total $ 10,465,000 $ 940,280 $ 11,405,280 61 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 6 LONG-TERM DEBT (continued) 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 First Community 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 $728,682 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 2009 $ 39,266 $ 40,624 $ 79,890 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 2014-2018 290,880 108,568 399,448 2019-2021 217,771 22,019 239,790 Total $ 728,805 $ 309,881 $ 1,038,686 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 $6,544,010 is payable in semi-annual installments. Annual debt service requirements to maturity have been calculated at the refinanced rate of 3.8% as follows: Year Principal Interest Total 2009 $ 403,570 $ 249,695 $ 653,265 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 2014-2018 2,583,792 633,119 3,216,911 2019-2021 1,805,701 124,818 1,930,519 Total $ 6,544,010 $ 1,843,963 $ 8,387,973 62 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 6 LONG-TERM DEBT (continued) B. Notes Payable (continued) 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. 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 2009 $ 12,615 $ 7,426 $ 20,041 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 2014-2017 73,783 9,972 83,755 Total $ 144,491 $ 40,460 $ 184,951 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%. 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%. Both issues are payable from a 3.00% municipal sales and use tax. During the year ended December 31, 2008, revenues of $8,317,710 were available to pay the annual debt service of $932,590. 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%. Debt service is payable from net revenues of the City’s municipal water system. During the year ended December 31, 2008, net revenues of $4,285,923 were available to pay annual debt service of $757,056. 63 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 6 LONG-TERM DEBT (continued) C. Pledged Revenues (continued) 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%. The loan is payable from net revenues of the City’s water reclamation system. During the year ended December 31, 2008, revenues of $456,312, after reduction for transfers out of $171,969, were available to pay annual debt service of $547,799. The annual debt service amount is the amount per the debt service schedule. 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%. The debt is payable from net revenues of the City’s golf course. During the year ended December 31, 2008, revenues of $238,513 were available to pay annual debt service of $66,334. 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 variable interest rate which is currently 1.10%. During the year ended December 31, 2008, revenues of $1,805,700 were available to pay annual debt service of $925,205. 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. The debt is payable from net revenues of the General Improvement District. For the year ending December 31, 2008, revenues of $72,664 were available to pay annual debt service of $72,088. 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%. During the year ended December 31, 2008, revenues of $414,563 were available to pay debt service of $247,200. 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%. For the year ending December 31, 2008, revenues of $74,770 were available to pay debt service of $122,400. The City was required to spend cash on hand before spending additional property tax revenues in 2008. 64 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 6 LONG-TERM DEBT (continued) 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 obligations as of December 31, 2008 are as follows: 2009 $ 51,690 2010 25,845 $ 77,535 Less amount representing interest (3,499) Present value of remaining base payments $ 74,036 In May 2007, the city entered into a lease purchase arrangement for ambulance service equipment at a cost of $202,190. The future minimum lease obligations as of December 31, 2008 are as follows: 2009 $ 72,800 Less amount representing interest (3,479) Present value of remaining base payments $ 69,321 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, 2008 are as follows: 2009 $ 60,000 2010 60,000 2011 60,000 2012 60,000 2013 59,063 $ 299,063 Less amount representing interest (34,839) Present value of remaining base payments $ 264,224 65 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 6 LONG-TERM DEBT (continued) D. Capital Leases (continued) 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, 2008 are as follows: 2009 $ 119,391 2010 119,391 2011 119,391 2012 119,391 2013 119,391 2014 119,391 $ 716,346 Less amount representing interest (81,347) Present value of remaining lease payments $ 634,999 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, 2008 are as follows: 2009 $ 132,616 2010 115,793 2011 122,554 2012 133,087 2013 138,677 2014-2018 704,290 $1,347,017 Less amount representing interest (81,347) Present value of remaining payments $1,110,507 66 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 6 LONG-TERM DEBT (continued) E. Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2008, was as follows: Beginning Balance Additions Reductions Ending Balance Due Within One Year Governmental Activities: Bonds Payable General Obligation Bonds $ 7,935,000 $ - $ 775,000 $ 7,160,000 $ 805,000 Revenue Bonds 8,240,000 6,910,000 785,000 14,365,000 810,000 Demand Bonds 11,005,000 - 540,000 10,465,000 565,000 Total Bonds Payable 27,180,000 6,910,000 2,100,000 31,990,000 2,180,000 Deferred Amounts For Issuance Premiums 31,621 - 6,593 25,028 - On Refunding (618,594) - (58,130) (560,464) - Total Bonds Payable, Including deferred amounts 26,593,027 6,910,000 2,048,463 31,454,564 2,180,000 Notes Payable 765,942 - 37,137 728,805 39,266 Capital Leases 1,172,625 1,113,279 206,853 2,079,051 306,906 Compensated Absences 796,418 774,853 669,506 901,765 679,161 Governmental Activity long- term activities $ 29,328,012 $ 8,798,132 $ 2,961,959 $ 35,164,185 $3,205,333 Business-type Activities Bonds Payable General Obligation Bonds $ 3,350,000 $ - $ 615,000 2,735,000 $ 645,000 Revenue Bonds 16,022,000 - 45,600 15,976,400 48,100 Total Bonds Payable 19,372,000 - 660,600 18,711,400 693,100 Deferred Amounts For Issuance Premiums 480,638 - 29,016 451,622 - On Refunding (182,731) - (34,009) (148,722) - Total Bonds Payable, Including deferred amounts 19,669,907 - 655,607 19,014,300 693,100 Notes Payable 7,083,555 - 395,054 6,688,501 416,185 Capital Leases 120,610 - 46,574 74,036 48,783 Compensated Absences 216,777 164,225 144,002 237,000 133,346 Business-type activity long- term activities $ 27,090,849 $ 164,225 $ 1,241,237 $ 26,013,837 $1,291,414 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, 2008 NOTE 8 INTERFUND TRANSFERS, RECEIVABLES, AND PAYABLES The following interfund transfers occurred during 2008 for the purposes stated below. Transfers Out Transfers In Fund Description Amount General Fund Debt Service Fund General Fund Capital Lease Payments $ 366,739 $ - $ 366,739 POST Open Space Fund Open Space Maintenance 545,559 545,559 - Capital Projects Art Reserve 5,000 5,000 - Liquidate Fund 12,253 12,253 - Excess Bond Interest - Moved to Pay Off Debt 80,609 - 80,609 Water Fund Administrative Charges 600,399 600,399 - Water Reclamation Fund Administrative Charges 171,969 171,969 - Storm Water Fund Administrative Charges 78,607 78,607 - Golf Course Fund Administrative Charges 132,733 132,733 - Reimburse for Golf Course Construction 432,238 432,238 - $ 2,426,106 $ 1,978,758 $ 447,348 An interfund balance in the amount of $8,081 due to the General Fund from the Lafayette Tech Center Fund is for a borrowing to cover a deficit cash balance caused by expense payments made on December 31, 2008. 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 a third party trustee. 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, 2008, the City and employees made all required contributions to the plan, of $689,530 and $541,715, respectively. 68 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 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. 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. 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 69 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 9 EMPLOYEE RETIREMENT PLANS (continued) B. Commissioned Police Officers, Firefighters, and Ambulance Personnel (continued) 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 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 2008 of $70,741 and $55,483, in 2007 of $67,424 and $52,882, and in 2006 of $64,050 and $50,235, 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 2008 of $161,034 and $154,719, in 2007 of $168,808 and $162,188, and in 2006 of $167,899 and $161,310, 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 2008 of $89,477 and $89,477, in 2007 of $68,530 and $68,530, and in 2006 of $32,204 and $32,204, 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 are not allowed by FPPA. Contributions on overtime made by the Police, Fire and Ambulance employees are 8% and the City contributes 10.2% to ICMA. In 2008 the City paid $23,137 and the employees paid $18,215. The City paid $24,606 to ICMA in 2008 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, 2008 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 contributions are actuarially determined. The actuarial study as of January 1, 2007, presented the required contribution level for four 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, 2007, indicated that the current contributions to the fund are adequate to support the prospective benefits for the present plan on an actuarially sound basis. Annual Pension Cost - For the year ended December 31, 2008, The City and State actual contributions of $89,986 and $42,222, respectively, did equal the required contribution. The required contribution was determined as part of the January 1, 2007 actuarial valuation using the entry age normal cost method. Actuarial assumptions included the following: 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 - 4.0% 71 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 9 EMPLOYEE RETIREMENT PLANS (continued) C. Volunteer Fire Fighters (continued) 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) 12/31/2005 132,208 100% - 12/31/2006 132,208 100% - 12/31/2007 132,208 100% - Funded Status and Funding Progress – As of January 1, 2007, the most recent actuarial valuation date, the plan was 57 percent funded. The actuarial accrued liability for benefits was $2.1 million and the actuarial value of assets was $1.2 million, resulting in an unfunded actuarial accrued liability (UAAL) of $0.9 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 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. 72 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 10 RISK MANAGEMENT (continued) 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 ASSETS 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 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, 2008, it was determined that the approximate fair market value of the property is $2,031,968. The carrying value was adjusted by $72,182 in 2003. It was adjusted another $268,032 in 2004. Dec. 31, 2006 Claims Incurred Claims Paid Dec. 31, 2007 Claims Incurred Claims Paid Dec. 31, 2008 Property & Liability $1,190 $206,598 $207,788 $0 $47,000 $24,076 $22,924 73 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NOTES TO THE FINANCIAL STATEMENTS December 31, 2008 NOTE 12 SPECIAL ITEMS 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. During 2008, the City saw a downturn in residential development. One developer decided to forego the building of units for which water right had already been paid. Because of this forfeiture of building permits, the City returned the water rights to the developer and this reduction in assets is recorded as a special item in the Water Utility Fund. 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, 2008 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 have been accelerated and a foreclosure sale has been scheduled. 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 litigation for which the outcome is unknown. 74 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION FINANCIAL SECTION 2008 ---PAGE BREAK--- 1/1/2007 1/1/2005 1/1/2003 1/1/2001 1/1/1999 $500 Level $500 Level $475 Level $450 Level $450 Level $300 Level Actuarial Value of Assets 1,206,349 $ 1,025,695 $ 1,001,398 $ 1,110,995 $ 953,745 $ 953,745 $ Actuarial Accrued Liability-entry age 2,123,394 2,153,723 1,905,576 1,833,842 1,711,392 1,065,766 Unfunded Actuarial Accrued Liability (b-a) 917,045 $ 1,128,028 $ 904,178 $ 722,847 $ 757,647 $ 112,021 $ Funded ratio (a/b) 57% 48% 53% 61% 56% 89% Covered payroll N/A 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, 2008 76 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Property Taxes 2,814,126 $ 2,814,126 $ 2,807,545 $ (6,581) $ Fire District Tax 5,300 5,300 5,300 - Specific Ownership Tax 247,351 247,351 221,654 (25,697) General Sales & Use Tax 6,253,757 6,253,757 6,857,265 603,508 Motor Vehicle Use Tax 543,892 543,892 692,333 148,441 Building Use Tax 405,288 405,288 264,494 (140,794) Total Taxes 10,269,714 10,269,714 10,848,591 578,877 License and Permits Business Licenses 10,080 10,080 10,525 445 Contractor Licenses 37,000 37,000 35,050 (1,950) Liquor Licenses 8,970 8,970 9,805 835 Construction Permits 250,000 250,000 186,804 (63,196) Mobile Home Permits 10,370 10,370 8,294 (2,076) Miscellaneous Licenses 3,500 3,500 2,912 (588) Total Licenses and Permits 319,920 319,920 253,390 (66,530) Intergovernmental State and Federal Grants 358,302 358,302 437,097 78,795 Cultural Arts Grant 7,700 10,000 10,000 - Cigarette Tax 28,000 28,000 31,075 3,075 Motor Vehicle Registration 75,000 75,000 86,487 11,487 County Road and Bridge Tax 52,000 52,000 31,687 (20,313) Highway Users Tax 589,134 589,134 589,344 210 Nutrition Grant 25,000 25,000 23,433 (1,567) Total Intergovernmental 1,135,136 1,137,436 1,209,123 71,687 Fines and Forfeitures Fines 833,436 833,436 869,289 35,853 Court Costs 42,466 42,466 45,869 3,403 Total Fines and Forfeitures 875,902 875,902 915,158 39,256 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Fiscal Year Ended December 31, 2008 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, 2008 Revenues (continued) Interest and Other Franchise Taxes 812,607 812,607 1,000,028 187,421 Interest 350,000 350,000 579,339 229,339 PEG Fees 30,000 30,000 31,451 1,451 Public Art Fees 7,170 7,170 4,078 (3,092) Contributions and Misc Grants 416,679 435,918 296,297 (139,621) Property Sales 10,000 10,000 7,946 (2,054) Community Fundraiser 18,000 18,000 31,779 13,779 Total Interest and Other 1,644,456 1,663,695 1,950,918 287,223 Charges for Services Building Fees 250,590 250,590 199,247 (51,343) Culture and Recreation Fees 1,264,080 1,264,080 1,347,026 82,946 Cemetery Fees 15,525 15,525 32,975 17,450 Administrative Fees 48,615 48,615 42,627 (5,988) Misc Rentals 105,472 105,472 105,016 (456) Pawn Shop Fees 6,000 6,000 9,554 3,554 Police Service Fees 23,700 52,713 77,464 24,751 Ambulance Fees 576,241 576,241 486,093 (90,148) Solid Waste and Recycling Fees - 860,000 819,669 (40,331) Miscellaneous Services 82,611 593,595 178,979 (414,616) Total Charges for Services 2,372,834 3,772,831 3,298,650 (474,181) Total Revenues 16,617,962 18,039,498 18,475,830 436,332 Expenditures General Government City Council 138,968 $ 147,788 $ 88,848 $ 58,940 $ Non-Departmental 520,733 1,143,591 1,452,499 (308,908) City Administrator City Administrator 212,516 210,570 218,672 (8,102) Human Resources 308,719 298,007 282,535 15,472 City Clerk 177,547 201,864 189,628 12,236 Community Development 397,457 385,107 355,689 29,418 Finance Administrative Services 117,863 114,305 114,056 249 Financial Services 469,599 444,682 444,000 682 Information Systems 571,550 559,699 547,982 11,717 Planning & Building 728,181 722,913 702,497 20,416 General Building Maintenance 752,979 737,529 643,248 94,281 Total General Government 4,396,112 4,966,055 5,039,654 (73,599) 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, 2008 Expenditures (continued) Judicial City Attorney 197,454 195,479 173,022 22,457 Municipal Court 121,381 117,133 117,006 127 Total Judicial 318,835 312,612 290,028 22,584 Public Safety Police 5,182,310 5,073,833 5,013,365 60,468 Fire 868,910 850,410 938,761 (88,351) Ambulance 691,461 687,029 753,657 (66,628) Total Public Safety 6,742,681 6,611,272 6,705,783 (94,511) Public Works Administration - Public Works 1,365,734 1,385,757 1,689,717 (303,960) Solid Waste & Recycling - 823,000 749,894 73,106 Total Public Works 1,365,734 2,208,757 2,439,611 (230,854) Culture and Recreation Administration - Parks, OS, & Golf 128,714 128,714 129,467 (753) Cemeteries 106,785 106,563 81,912 24,651 Parks 724,322 718,865 743,364 (24,499) Open Space Maintenance 303,554 327,068 231,736 95,332 Admin - Recreation & Facility Management 261,619 261,619 291,661 (30,042) Leisure Services 486,083 452,687 399,920 52,767 Recreation Center 1,354,514 1,314,846 1,172,817 142,029 Public Library 1,227,111 1,205,350 1,240,366 (35,016) Cultural Arts 23,300 51,299 43,186 8,113 Senior Citizens 315,245 305,289 337,629 (32,340) Total Culture and Recreation 4,931,247 4,872,300 4,672,058 200,242 Capital Outlay 735,300 3,169,741 1,441,747 1,727,994 Total Expenditures 18,489,909 22,140,737 20,588,881 1,551,856 Excess (Deficiency) of Revenues Over Expenditures (1,871,947) (4,101,239) (2,113,051) 1,988,188 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, 2008 Other Financing Sources (Uses) Issuance of Debt - 1,189,915 1,113,279 (76,636) Transfers In 2,060,878 2,067,116 1,978,758 (88,358) Transfers Out (277,740) (366,739) (366,739) - Total Other Financing Sources (Uses) 1,783,138 2,890,292 2,725,298 (164,994) Special Item Insurance Proceeds-Boat House - - 410,709 410,709 Total Special Item - - 410,709 410,709 Net Changes in Fund Balance (88,809) (1,210,947) 1,022,956 2,233,903 Fund Balance, January 1 9,785,497 9,785,497 11,322,305 1,536,808 Fund Balance, December 31, Budgetary Basis 9,696,688 $ 8,574,550 $ 12,345,261 $ 3,770,711 $ See the accompanying independent auditors' report. 80 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Tax 76,661 76,661 102,044 25,383 Specific Ownership Tax - - 10,675 10,675 Sales and Use Tax 63,418 63,418 88,025 24,607 State Grants - 224,893 53,554 (171,339) Rents - Albertson's 49,785 49,785 51,550 1,765 Interest 41,517 41,517 45,684 4,167 Miscellaneous Revenue - - 33,931 33,931 Total Revenues 231,381 456,274 385,463 (70,811) Expenditures General Government 71,150 71,150 98,665 (27,515) Capital Outlay - 490,074 119,098 370,976 Total Expenditures 71,150 561,224 217,763 343,461 Excess (Deficiency) of Revenue over Expenditures 160,231 (104,950) 167,700 272,650 Net Changes in Fund Balance 160,231 (104,950) 167,700 272,650 Fund Balance, January 1 920,544 920,544 769,155 (151,389) Fund Balance, December 31 1,080,775 $ 815,594 $ 936,855 $ 121,261 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE LAFAYETTE URBAN RENEWAL AUTHORITY For the Fiscal Year Ended December 31, 2008 81 ---PAGE BREAK--- CITY OF LAFAYETTE NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2008 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, 2008, amended budgeted expenditures exceeded beginning budgeted revenues and fund balance in the Conservation Trust Fund. This may be a violation of state statute. 82 ---PAGE BREAK--- OTHER SCHEDULES FINANCIAL SECTION This section consists of the following: • Nonmajor Governmental Funds • Internal Service Funds 2008 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NONMAJOR GOVERNMENTAL FUNDS December 31, 2008 Special Revenue Funds Special Revenue Funds are used to account for specific revenue sources that are legally restricted to expenditures for specific purposes. The City’s Special Revenue Funds account for the following blended component units of the city set up to account for acquisition, improvements, and facilities within the Districts. 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 • Exempla 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. 84 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO NONMAJOR GOVERNMENTAL FUNDS December 31, 2008 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. 85 ---PAGE BREAK--- Special Capital Debt Revenue Projects Service Funds Funds Fund Total Assets Cash and Investments 2,921,498 $ 4,397,297 $ 182,478 $ 7,501,273 $ Accrued Interest Receivable 30,921 73,088 4,783 108,792 Accounts Receivable 10,366 - - 10,366 Property Taxes Receivable 2,094,896 - 993,280 3,088,176 Restricted Cash and Investments 1,090,500 4,728,675 - 5,819,175 Special Assessments Receivable 439,400 - - 439,400 Total Assets 6,587,581 $ 9,199,060 $ 1,180,541 $ 16,967,182 $ Liabilities and Fund Balance Liabilities Accounts Payable 7,121 $ 16,412 $ - $ 23,533 $ Accounts Payable from Restrictd Assets - 201,449 201,449 Deposits Payable 75,000 66,277 - 141,277 Due to Other Funds 8,081 - - 8,081 Deferred Revenues 2,534,296 - 993,280 3,527,576 Total Liabilities 2,624,498 284,138 993,280 3,901,916 Fund Balance Reserved for GID Expenditures 3,963,083 - - 3,963,083 Reserved for Capital Projects - 8,914,922 - 8,914,922 Unreserved, reported by Debt Service Fund - - 187,261 187,261 Total Fund Balance 3,963,083 8,914,922 187,261 13,065,266 Total Liabilities and Fund Balance 6,587,581 $ 9,199,060 $ 1,180,541 $ 16,967,182 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2008 86 ---PAGE BREAK--- Special Capital Debt Revenue Projects Service Funds Funds Fund Total Revenues Taxes Property Tax 449,349 $ - $ 843,926 $ 1,293,275 $ Specific Ownership Tax 40,135 - - 40,135 Building Use Tax - 58,284 85,213 143,497 Vehicle Use Tax - 165,078 466,549 631,627 General Sales Tax - 1,234,188 379,478 1,613,666 Total Taxes 489,484 1,457,550 1,775,166 3,722,200 Intergovernmental - State Grants - 247,708 - 247,708 Assessment Principal 1,120,361 - - 1,120,361 Assessment Interest 589,084 - - 589,084 Interest 201,887 519,919 45,752 767,558 Contributions and Misc Grants - 1,000 - 1,000 Administrative Fees 15,000 - - 15,000 Miscellaneous Revenue 5,758 - - 5,758 Total Revenues 2,421,574 2,226,177 1,820,918 6,468,669 Expenditures Current General Government 53,877 15,477 30,305 99,659 Public Safety - 1,228 - 1,228 Public Works - 204,066 - 204,066 Cultural and Recreation - 53,744 - 53,744 Capital Outlay - 4,090,360 - 4,090,360 Debt Service Capital Lease and Loan Payments - - 243,990 243,990 Principal 615,000 - 1,485,000 2,100,000 Interest and Fiscal Charges 751,893 - 676,744 1,428,637 Bond Issuance Costs - 49,500 - 49,500 Total Expenditures 1,420,770 4,414,375 2,436,039 8,271,184 Excess (Deficiency) of Revenues over Expenditures 1,000,804 (2,188,198) (615,121) (1,802,515) CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2008 87 ---PAGE BREAK--- Special Capital Debt Revenue Projects Service Funds Funds Fund Total CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2008 Other Financing Sources (Uses) Issuance of Debt - 6,910,000 - 6,910,000 Transfers In - - 447,348 447,348 Transfers (Out) - (643,421) - (643,421) Total Other Financing Sources (Uses) - 6,266,579 447,348 6,713,927 Net Change in Fund Balance 1,000,804 4,078,381 (167,773) 4,911,412 Fund Balance, January 1 2,962,279 4,836,541 355,034 8,153,854 Fund Balance, December 31 3,963,083 $ 8,914,922 $ 187,261 $ 13,065,266 See the accompanying independent auditors' report. 88 ---PAGE BREAK--- Lafayette Lafayette Lafayette Ambulance City Center Exempla Corp Campus Tech Center and Fire GID GID GID GID Total Assets Cash and Investments - $ 94,507 $ 2,469,891 $ 357,100 $ - $ 2,921,498 $ Accrued Interest Receivable - 808 27,690 2,236 187 30,921 Accounts Receivable - 266 272 923 8,905 10,366 Property Taxes Receivable 1,578,863 76,930 70,237 242,065 126,801 2,094,896 Restricted Cash and Investments - - 1,090,500 - - 1,090,500 Special Assessments Receivable - - 329,550 109,850 - 439,400 Total Assets 1,578,863 $ 172,511 $ 3,988,140 $ 712,174 $ 135,893 $ 6,587,581 $ Liabilities and Fund Balance Liabilities Accounts Payable - $ - $ 7,121 $ - $ - $ 7,121 $ Deposits Payable - 75,000 - - - 75,000 Due to Other Funds - - - - 8,081 8,081 Deferred Revenues 1,578,863 76,930 399,787 351,915 126,801 2,534,296 Total Liabilities 1,578,863 151,930 406,908 351,915 134,882 2,624,498 Fund Balance Reserved for GID Expenditures - 20,581 3,581,232 360,259 1,011 3,963,083 Total Fund Balance - 20,581 3,581,232 360,259 1,011 3,963,083 Total Liabilities and Fund Balance 1,578,863 $ 172,511 $ 3,988,140 $ 712,174 $ 135,893 $ 6,587,581 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2008 89 ---PAGE BREAK--- Lafayette Lafayette Lafayette Ambulance City Center Exempla Corp Campus Tech Center and Fire GID GID GID GID Total Revenues Property Taxes - $ 71,658 $ 77,193 $ 225,001 $ 75,497 $ 449,349 $ Specific Ownership Taxes - 4,380 4,442 26,835 4,478 40,135 Total Taxes - 76,038 81,635 251,836 79,975 489,484 Assessment - Principal - - 975,271 145,090 - 1,120,361 Assessment - Interest - - 572,885 16,199 - 589,084 Interest - 6,101 179,137 15,113 1,536 201,887 Administrative Fee - - 15,000 - - 15,000 Miscellaneous Revenue - - 5,127 - 631 5,758 Total Revenues - 82,139 1,829,055 428,238 82,142 2,421,574 Expenditures Current General Government - 9,475 23,355 13,675 7,372 53,877 Debt Service Principal - 35,000 540,000 40,000 - 615,000 Interest and Fiscal Charges - 37,088 385,205 207,200 122,400 751,893 Total Expenditures - 81,563 948,560 260,875 129,772 1,420,770 Excess (Deficiency) of Revenues over Expenditures - 576 880,495 167,363 (47,630) 1,000,804 Net Change in Fund Balance - 576 880,495 167,363 (47,630) 1,000,804 Fund Balance, January 1 - 20,005 2,700,737 192,896 48,641 2,962,279 Fund Balance, December 31 - $ 20,581 $ 3,581,232 $ 360,259 $ 1,011 $ 3,963,083 $ 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, 2008 90 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 71,659 $ 71,659 $ 71,658 $ $ Specific Ownership Taxes 5,104 5,104 4,380 (724) Interest 5,500 5,500 6,101 601 Total Revenue 82,263 82,263 82,139 (124) Expenditures Current General Government 10,175 10,175 9,475 700 Debt Service Principal 35,000 35,000 35,000 - Interest and Fiscal Charges 37,088 37,088 37,088 - Total Expenditures 82,263 82,263 81,563 700 Net Change in Fund Balance - - 576 576 Fund Balance, January 1 13,730 13,730 20,005 6,275 Fund Balance, December 31 13,730 $ 13,730 $ 20,581 $ 6,851 $ 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, 2008 91 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 74,416 $ 74,416 $ 77,193 $ 2,777 $ Specific Ownership Taxes 2,500 2,500 4,442 1,942 Assessment Principal 540,000 540,000 975,271 435,271 Assessment Interest 495,225 495,225 572,885 77,660 Interest 95,000 95,000 179,137 84,137 Administrative Fee Revenue 15,000 15,000 15,000 - Miscellanous Revenue 6,500 6,500 5,127 (1,373) Total Revenue 1,228,641 1,228,641 1,829,055 600,414 Expenditures Current General Government 32,413 32,413 23,355 9,058 Debt Service Principal 540,000 540,000 540,000 - Interest and Fiscal Charges 495,225 495,225 385,205 110,020 Total Expenditures 1,067,638 1,067,638 948,560 119,078 Net Change in Fund Balance 161,003 161,003 880,495 719,492 Fund Balance, January 1 2,598,885 2,598,885 2,700,737 101,852 Fund Balance, December 31 2,759,888 $ 2,759,888 $ 3,581,232 $ 821,344 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE EXEMPLA GENERAL IMPROVEMENT DISTRICT For the fiscal year ended December 31, 2008 92 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 248,869 $ 248,869 $ 225,001 $ (23,868) $ Specific Ownership Taxes 10,314 10,314 26,835 16,521 Assessment Principal - - 145,090 145,090 Assessment Interest - - 16,199 16,199 Interest 11,250 11,250 15,113 3,863 Total Revenue 270,433 270,433 428,238 157,805 Expenditures Current General Government 23,233 23,233 13,675 9,558 Debt Service Principal 40,000 40,000 40,000 - Interest and Fiscal Charges 207,200 207,200 207,200 - Total Expenditures 270,433 270,433 260,875 9,558 Net Change in Fund Balance - - 167,363 167,363 Fund Balance, January 1 169,608 169,608 192,896 23,288 Fund Balance, December 31 169,608 $ 169,608 $ 360,259 $ 190,651 $ 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, 2008 93 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Taxes 73,933 $ 73,933 $ 75,497 $ 1,564 $ Specific Ownership Taxes 10,000 10,000 4,478 (5,522) Interest 1,500 1,500 1,536 36 Miscellaneous Revenue - - 631 631 Total Revenue 85,433 85,433 82,142 (3,291) Expenditures Current General Government 11,409 11,409 7,372 4,037 Debt Service Interest and Fiscal Charges 122,400 122,400 122,400 - Total Expenditures 133,809 133,809 129,772 4,037 Net Change in Fund Balance (48,376) (48,376) (47,630) 746 Fund Balance, January 1 67,518 67,518 48,641 (18,877) Fund Balance, December 31 19,142 $ 19,142 $ 1,011 $ (18,131) $ 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, 2008 94 ---PAGE BREAK--- Storm Legacy POST Conservation Capital Drainage Open Space Open Space Trust Projects Total Assets Cash and Investments 612,798 $ 1,078,656 $ 2,265,668 $ 373,453 $ 66,722 $ 4,397,297 $ Accrued Interest Receivable 5,055 8,592 17,569 2,770 39,102 73,088 Restricted Cash and Investments - - - - 4,728,675 4,728,675 Total Assets 617,853 $ 1,087,248 $ 2,283,237 $ 376,223 $ 4,834,499 $ 9,199,060 $ Liabilities and Fund Balance Liabilities Accounts Payable 5,430 $ - $ 8,362 $ 2,620 $ - $ 16,412 $ Accounts Payable from Restricted Assets - - - - 201,449 201,449 Deposits Payable 66,277 66,277 Total Liabilities 5,430 - 8,362 2,620 267,726 284,138 Fund Balance Reserved for Capital Projects 612,423 1,087,248 2,274,875 373,603 4,566,773 8,914,922 Total Fund Balance 612,423 1,087,248 2,274,875 373,603 4,566,773 8,914,922 Total Liabilities and Fund Balance 617,853 $ 1,087,248 $ 2,283,237 $ 376,223 $ 4,834,499 $ 9,199,060 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2008 95 ---PAGE BREAK--- Storm Legacy POST Conservation Capital Drainage Open Space Open Space Trust Projects Total Revenues Taxes Building Use Tax - $ 29,142 $ 29,142 $ - $ - $ 58,284 $ Vehicle Use Tax - 82,539 82,539 - - 165,078 General Sales & Use Tax - 617,094 617,094 - - 1,234,188 Total Taxes - 728,775 728,775 - - 1,457,550 Intergovernmental - State Grants - - - 247,708 - 247,708 Interest 40,937 50,615 122,769 17,303 288,295 519,919 Contributions and Misc Grants - - 1,000 - - 1,000 Total Revenues 40,937 779,390 852,544 265,011 288,295 2,226,177 Expenditures Current General Government - 4,127 4,127 - 7,223 15,477 Public Safety - - - - 1,228 1,228 Public Works 204,066 - - - - 204,066 Cultural & Recreation - 22,525 18,971 12,248 - 53,744 Capital Outlay 259,840 96,146 1,069,843 81,524 2,583,007 4,090,360 Debt Service Bond Issuance Costs - - - - 49,500 49,500 Total Expenditures 463,906 122,798 1,092,941 93,772 2,640,958 4,414,375 Excess (Deficiency) of Revenues over Expenditures (422,969) 656,592 (240,397) 171,239 (2,352,663) (2,188,198) Other Financing Sources (Uses) Issuance of Debt - - - - 6,910,000 6,910,000 Transfers (Out) - - (545,559) - (97,862) (643,421) Total Other Financeing Sources (Uses) - - (545,559) - 6,812,138 6,266,579 Net Changes in Fund Balance (422,969) 656,592 (785,956) 171,239 4,459,475 4,078,381 Fund Balance, January 1 1,035,392 430,656 3,060,831 202,364 107,298 4,836,541 Fund Balance, December 31 612,423 $ 1,087,248 $ 2,274,875 $ 373,603 $ 4,566,773 $ 8,914,922 $ 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, 2008 96 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Interest 30,000 $ 30,000 $ 40,937 $ 10,937 $ Total Revenues 30,000 30,000 40,937 10,937 Expenditures Current Public Works 80,000 80,000 204,066 (124,066) Capital Outlay 910,000 910,000 259,840 650,160 Total Expenditures 990,000 990,000 463,906 526,094 Excess (Deficiency) of Revenues over Expenditures (960,000) (960,000) (422,969) 537,031 Net Change in Fund Balance (960,000) (960,000) (422,969) 537,031 Fund Balance, January 1 973,487 973,487 1,035,392 61,905 Fund Balance, December 31 13,487 $ 13,487 $ 612,423 $ 598,936 $ 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, 2008 97 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax 40,055 $ 40,055 $ 29,142 $ (10,913) $ Vehicle Use Tax 96,989 96,989 82,539 (14,450) General Sales & Use Tax 594,048 594,048 617,094 23,046 Total Taxes 731,092 731,092 728,775 (2,317) Interest 32,500 32,500 50,615 18,115 Total Revenues 763,592 763,592 779,390 15,798 Expenditures Current General Government 4,200 4,200 4,127 73 Culture & Recreation - - 22,525 (22,525) Capital Outlay 257,025 316,591 96,146 220,445 Total Expenditures 261,225 320,791 122,798 197,993 Net Change in Fund Balance 502,367 442,801 656,592 213,791 Fund Balance, January 1 1,186,301 1,186,301 430,656 (755,645) Fund Balance, December 31 1,688,668 $ 1,629,102 $ 1,087,248 $ (541,854) $ 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, 2008 98 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Taxes Building Use Tax 40,055 $ 40,055 $ 29,142 $ (10,913) $ Vehicle Use Tax 96,989 96,989 82,539 (14,450) General Sales & Use Tax 594,048 594,048 617,094 23,046 Total Taxes 731,092 731,092 728,775 (2,317) Interest 62,500 62,500 122,769 60,269 Contributions and Misc Grants - - 1,000 1,000 Total Revenues 793,592 793,592 852,544 58,952 Expenditures Current General Government 4,200 4,200 4,127 73 Cultural & Recreation - - 18,971 (18,971) Capital Outlay 169,643 1,171,643 1,069,843 101,800 Total Expenditures 173,843 1,175,843 1,092,941 82,902 Excess (Deficiency) of Revenues over Expenditures 619,749 (382,251) (240,397) 141,854 Other Financing Sources (Uses) Transfers Out (619,749) (619,749) (545,559) 74,190 Total Other Financing Sources (Uses) (619,749) (619,749) (545,559) 74,190 Net Change in Fund Balance - (1,002,000) (785,956) 216,044 Fund Balance, January 1 1,750,240 1,750,240 3,060,831 1,310,591 Fund Balance, December 31 1,750,240 $ 748,240 $ 2,274,875 $ 1,526,635 $ 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, 2008 99 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Intergovernmental - State Grants 211,000 $ 211,000 $ 247,708 $ 36,708 $ Interest 5,000 5,000 17,303 12,303 Total Revenues 216,000 216,000 265,011 49,011 Expenditures Current Cultural and Recreation - - 12,248 (12,248) Capital Outlay 210,000 297,696 81,524 216,172 Total Expenditures 210,000 297,696 93,772 203,924 Excess (Deficiency) of Revenues over Expenditures 6,000 (81,696) 171,239 252,935 Net Change in Fund Balance 6,000 (81,696) 171,239 252,935 Fund Balance, January 1 57,680 57,680 202,364 144,684 Fund Balance, December 31 63,680 $ (24,016) $ 373,603 $ 397,619 $ 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, 2008 100 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Interest 5,000 $ 10,000 $ 288,295 $ 278,295 $ Total Revenues 5,000 10,000 288,295 278,295 Expenditures Current General Government - - 7,223 (7,223) Public Safety - - 1,228 (1,228) Public Works - 49,500 - 49,500 Culture & Recreation - 5,500 - 5,500 Bond Issuance Costs - - 49,500 (49,500) Capital Outlay 82,826 6,937,826 2,583,007 4,354,819 Total Expenditures 82,826 6,992,826 2,640,958 4,351,868 Excess (Deficiency) of Revenues over Expenditures (77,826) (6,982,826) (2,352,663) 4,630,163 Other Financing Sources (Uses) Debt Proceeds - 6,910,000 6,910,000 - Transfers In 77,826 77,826 - (77,826) Transfers Out - (85,000) (97,862) (12,862) Total Other Financing Sources (Uses) 77,826 6,902,826 6,812,138 (90,688) Net Change in Fund Balance - (80,000) 4,459,475 4,539,475 Fund Balance, January 1 136,242 136,242 107,298 (28,944) Fund Balance, December 31 136,242 $ 56,242 $ 4,566,773 $ 4,510,531 $ 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, 2008 101 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Property Tax 835,967 $ 840,967 $ 843,926 $ 2,959 $ Building Use Tax 85,213 85,213 85,213 - Vehicle Use Tax 619,563 619,563 466,549 (153,014) General Sales & Use Tax 379,478 379,478 379,478 - Interest 5,000 5,000 45,752 40,752 Total Revenues 1,925,221 1,930,221 1,820,918 (109,303) Expenditures Current General Government 14,569 14,569 30,305 (15,736) Debt Service Capital Lease Payments 277,740 366,739 243,990 122,749 Principal 1,485,000 1,485,000 1,485,000 - Interest and Fiscal Charges 707,009 707,009 676,744 30,265 Total Expenditures 2,484,318 2,573,317 2,436,039 137,278 Excess (Deficiency) of Revenue over Expenditures (559,097) (643,096) (615,121) 27,975 Other Financing Sources (Uses) Transfers In 277,740 366,739 447,348 80,609 Total Other Financing Sources (Uses) 277,740 366,739 447,348 80,609 Net Changes in Fund Balance (281,357) (276,357) (167,773) 108,584 Fund Balance, January 1 545,644 545,644 355,034 (190,610) Fund Balance, December 31 264,287 $ 269,287 $ 187,261 $ (82,026) $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE DEBT SERVICE FUND For the Fiscal Year Ended December 31, 2008 102 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO INTERNAL SERVICE FUNDS December 31, 2008 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 615,546 $ 638,798 $ 1,254,344 $ Accounts receivable - 15,735 15,735 Accrued Interest Receivable 4,658 5,027 9,685 Prepaid Expense 158,334 - 158,334 Total Current Assets 778,538 659,560 1,438,098 Liabilities Current Liabilities Accounts Payable - 18,893 18,893 Claims Payable 1,352 22,924 24,276 Compensated Absences Due in One Year 482,569 - 482,569 Total Current Liabilities 483,921 41,817 525,738 Net Assets - Unrestricted 294,617 $ 617,743 $ 912,360 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2008 104 ---PAGE BREAK--- Employee Benefit Insurance Fund Fund Total Operating Revenues City Contributions 1,552,495 $ 511,306 $ 2,063,801 $ Employee Contributions 14,274 - 14,274 Miscellaneous 23,691 25,804 49,495 Total Operating Revenue 1,590,460 537,110 2,127,570 Operating Expenses Premiums and Claims Paid 1,593,785 505,045 2,098,830 Wellness Program 13,800 5,043 18,843 Miscellaneous 47,485 - 47,485 Total Operating Expenses 1,655,070 510,088 2,165,158 Operating Income (Loss) (64,610) 27,022 (37,588) Nonoperating Interest Revenue 31,721 31,488 63,209 Change in Net Assets (32,889) 58,510 25,621 Total Net Assets, January 1 327,506 559,233 886,739 Total Net Assets, December 31 294,617 $ 617,743 $ 912,360 $ 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, 2008 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 1,552,495 $ 511,306 $ 2,063,801 $ Receipts from Employees 14,274 - 14,274 Miscellaneous Receipts - COBRA and Other 23,691 25,804 49,495 Payments to Insurance Companies (1,618,226) (509,679) (2,127,905) Payments for Wellness Program (13,800) (5,043) (18,843) Payments to Employees (47,485) - (47,485) Net Cash (Used) Provided by Operating Activities (89,051) 22,388 (66,663) Cash flows From Investing Activities Interest Received 33,050 31,604 64,654 Net Cash Provided By Investing Activities 33,050 31,604 64,654 Net Increase (Decrease) in Cash and Investments (56,001) 53,992 (2,009) Cash and Investments - January 1 671,547 584,806 1,256,353 Cash and Investments - December 31 615,546 $ 638,798 $ 1,254,344 $ Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income(Loss) (64,610) $ 27,022 $ (37,588) $ Adjustments to Reconcile Income (Loss) From Operating Activities (Increase) Decrease in Accounts Receivable 329 (15,735) (15,406) (Increase) Decrease in Prepaid Expense (73,733) - (73,733) Increase (Decrease) in Accounts Payable (5,741) 11,101 5,360 Increase (Decrease) in Compensated Absences 54,704 - 54,704 Total Adjustments (24,441) (4,634) (29,075) Net Cash Provided (Used) by Operating Activities (89,051) $ 22,388 $ (66,663) $ 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, 2008 COMBINING STATEMENT OF CASH FLOWS 106 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues City Contributions 1,664,337 $ 1,664,337 $ 1,552,495 $ (111,842) $ Employee Contributions 28,342 28,342 14,274 (14,068) Interest Income 25,000 25,000 31,721 6,721 Miscellaneous Income 1,000 1,000 23,691 22,691 Total Revenues 1,718,679 1,718,679 1,622,181 (96,498) Expenditures Premiums Paid 1,703,070 1,703,070 1,593,785 109,285 Wellness Program 20,434 20,434 13,800 6,634 Miscellaneous 31,500 31,500 47,485 (15,985) Total Expenditures 1,755,004 1,755,004 1,655,070 99,934 Excess (Deficiency) of Revenue over Expenditures (36,325) (36,325) (32,889) 3,436 Total Net Assets, January 1 337,710 337,710 327,506 (10,204) Total Net Assets, December 31 301,385 $ 301,385 $ 294,617 $ (6,768) $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE EMPLOYEE BENEFIT FUND For the Fiscal Year Ended December 31, 2008 107 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues City Contributions 511,306 $ 511,306 $ 511,306 $ - $ Interest Income 25,000 25,000 31,488 6,488 Miscellaneous Income 26,000 26,000 25,804 (196) Total Revenues 562,306 562,306 568,598 6,292 Expenditures Premiums Paid 591,285 591,285 505,045 86,240 Wellness Program 6,000 6,000 5,043 957 Total Expenditures 597,285 597,285 510,088 87,197 Excess (Deficiency) of Revenue over Expenditures (34,979) (34,979) 58,510 93,489 Total Net Assets, January 1 451,226 451,226 559,233 108,007 Total Net Assets, December 31 416,247 $ 416,247 $ 617,743 $ 201,496 $ See the accompanying independent auditors' report. For the Fiscal Year Ended December 31, 2008 CITY OF LAFAYETTE, COLORADO BUDGETARY COMPARISON SCHEDULE INSURANCE FUND 108 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Metered Water Sales 4,510,358 $ 4,510,358 $ 5,510,226 $ 999,868 $ Interest Revenue 1,206,940 1,206,940 1,373,781 166,841 Issuance of Debt - 26,572 - (26,572) Other 112,000 112,000 63,859 (48,141) Payment in Lieu of Water 440,000 440,000 480,082 40,082 Tap Fees 1,100,000 1,100,000 367,912 (732,088) Total Revenues 7,369,298 7,395,870 7,795,860 399,990 Expenditures Administration 378,140 378,140 377,265 875 Source of Water Supply 456,158 456,158 411,693 44,465 Water Treatment 1,593,452 1,606,900 1,480,547 126,353 Water Transmission and Distribution 1,063,993 1,109,424 657,920 451,504 Construction and Capital Improvements 3,216,000 3,216,000 2,433,705 782,295 Debt Service Principal Retirement 615,000 615,000 624,365 (9,365) Interest Expense 892,356 892,356 913,524 (21,168) Lease Payments - - 446 (446) Bond Fee 1,900 1,900 5,300 (3,400) Amortization 44,204 44,204 29,013 15,191 Transfers to Other Funds 589,544 590,237 600,399 (10,162) Total Expenditures 8,850,747 8,910,319 7,534,177 1,376,142 Excess (Deficiency) of Revenue over Expenditures (1,481,449) $ (1,514,449) $ 261,683 1,776,132 $ Total Net Assets, January 1 76,304,636 Total Net Assets, December 31 76,566,319 GAAP Adjustments Depreciation (1,610,465) Principal Retirement 624,365 Construction and Capital Improvements 2,433,705 Special Item - Return of Water Rights (469,263) Adjusted Total Net Assets, December 31 77,544,661 $ 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, 2008 109 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Waste Water Collection Fees 1,630,401 $ 1,630,401 $ 1,551,183 $ (79,218) $ Interest Revenue 299,127 299,127 582,486 283,359 Issuance of Debt - 147,664 - (147,664) Other 4,200 4,200 1,862 (2,338) Tap Fees 690,000 690,000 238,077 (451,923) Assessment - Interest - - 1,310 1,310 Total Revenues 2,623,728 2,771,392 2,374,918 (396,474) Expenditures Administration 191,065 191,065 176,793 14,272 Waste Water Treatment 1,021,042 1,152,116 973,534 178,582 Waste Water Collection 543,850 589,281 596,310 (7,029) Construction and Capital Improvements 1,070,000 1,570,000 1,419,728 150,272 Debt Service Principal Retirement 385,689 385,689 385,689 - Interest Expense 265,516 265,516 253,331 12,185 Lease Payments - - 2,200 (2,200) Bond Fee 1,400 1,400 - 1,400 Amortization 1,166 1,166 3,255 (2,089) Transfers to Other Funds 209,898 214,057 171,969 42,088 Total Expenditures 3,689,626 4,370,290 3,982,809 387,481 Excess (Deficiency) of Revenue over Expenditures (1,065,898) $ (1,598,898) $ (1,607,891) (8,993) $ Total Net Assets, January 1 22,894,699 Total Net Assets, December 31 21,286,808 GAAP Adjustments Depreciation (884,164) Principal Retirement 385,689 Construction and Capital Improvements 1,419,728 Adjusted Total Net Assets, December 31 22,208,061 $ 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, 2008 110 ---PAGE BREAK--- Variance Original Final Favorable Budget Budget Actual (Unfavorable) Revenues Golf Sales and Services 2,436,374 $ 2,436,374 $ 2,401,924 $ (34,450) $ Interest Revenue 16,040 16,040 23,833 7,793 Issuance of Debt - 53,410 - (53,410) Other 15,000 15,000 22,392 7,392 Total Revenues 2,467,414 2,520,824 2,448,149 (72,675) Expenditures Administration 159,066 159,066 161,877 (2,811) Golf Maintenance Operations 840,402 843,164 664,816 178,348 Golf Club House Operations 538,232 587,494 587,049 445 Golf Food Service Operations 220,726 220,726 230,923 (10,197) Construction and Capital Improvements - - 183,967 (183,967) Debt Service Principal 45,600 45,600 45,600 - Interest Expense 20,734 20,734 20,732 2 Lease Payments 51,690 51,690 53,316 (1,626) Bond Fees - - - - Transfers to Other Funds 583,849 585,235 564,971 20,264 Total Expenditures 2,460,299 2,513,709 2,513,251 458 Excess (Deficiency) of Revenue over Expenditures 7,115 $ 7,115 $ (65,102) (72,217) $ Total Net Assets, January 1 1,118,046 Total Net Assets, December 31 1,052,944 GAAP Adjustments Depreciation (164,602) Principal Retirement 92,173 Construction and Capital Improvements 183,967 Adjusted Total Net Assets, December 31 1,164,482 $ See the accompanying independent auditors' report. CITY OF LAFAYETTE, COLORADO GOLF COURSE For the Fiscal Year Ended December 31, 2008 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 $ 607,306 $ (22,694) $ Interest Revenue 10,000 10,000 63,995 53,995 Other - - 1,170 1,170 Storm Water Development Fees 150,000 150,000 316,990 166,990 Total Revenues 790,000 790,000 989,461 199,461 Expenditures Administration 112,300 112,300 983 111,317 Storm Water Collection 18,250 18,250 24,158 (5,908) Construction and Capital Improvements 555,000 555,000 - 555,000 Transfers to Other Funds 63,200 63,200 78,607 (15,407) Total Expenditures 748,750 748,750 103,748 645,002 Excess (Deficiency) of Revenue over Expenditures 41,250 $ 41,250 $ 885,713 844,463 $ Total Net Assets, January 1 543,165 Total Net Assets, December 31 1,428,878 $ 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, 2008 112 ---PAGE BREAK--- STATISTICAL SECTION For the year ended December 31, 2008, the Statistical Tables Section provides trends, statistical and demographic information, and continuing disclosure information. 2008 ---PAGE BREAK--- CITY OF LAFAYETTE, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT INDEX FOR THE STATISTICAL SECTION For the Fiscal Year Ended December 31, 2008 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 Governmental Activities Invested in capital assets, net of related debt 20,624,081 $ 11,299,168 $ 14,374,939 $ 22,570,911 $ Restricted 4,917,165 3,547,614 10,033,284 10,776,990 Unrestricted 4,511,760 18,659,528 15,398,318 12,482,944 Total governmental activities net assets 30,053,006 $ 33,506,310 $ 39,806,541 $ 45,830,845 $ Business-type Activities Invested in capital assets, net of related debt 46,434,767 $ 52,484,343 $ 49,370,593 $ 57,862,898 $ Restricted 6,451,664 2,551,168 9,493,472 - Unrestricted 15,988,406 15,499,527 11,666,525 17,516,627 Total business-type activities net assets 68,896,687 $ 70,535,038 $ 70,530,590 $ 75,379,525 $ Invested in capital assets, net of related debt 67,058,848 $ 63,783,511 $ 63,745,532 $ 80,433,809 $ Restricted 11,368,829 6,098,782 19,526,756 10,776,990 Unrestricted 20,500,166 34,159,055 27,064,843 29,999,571 Total primary governmental net assets 98,927,843 $ 104,041,348 $ 110,337,131 $ 121,210,370 $ 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 EIGHT YEARS SCHEDULE 1 For the Fiscal Year Ended December 31, 2008 115 ---PAGE BREAK--- 2005 2006 2007 2008 Governmental Activities Invested in capital assets, net of related debt 30,764,183 $ 33,229,175 $ 94,030,382 $ 91,484,033 $ Restricted 6,720,920 8,449,975 9,669,215 14,609,426 Unrestricted 12,048,717 13,686,208 15,989,734 16,783,799 Total governmental activities net assets 49,533,820 $ 55,365,358 $ 119,689,331 $ 122,877,258 $ Business-type Activities Invested in capital assets, net of related debt 60,662,135 $ 61,257,444 $ 75,356,639 $ 74,995,070 $ Restricted - - - - Unrestricted 19,009,607 21,681,488 25,503,907 27,351,012 Total business-type activities net assets 79,671,607 $ 82,938,932 $ 100,860,546 $ 102,346,082 $ Invested in capital assets, net of related debt 91,426,318 $ 94,486,619 $ 169,387,021 $ 166,479,103 $ Restricted 6,720,920 8,449,975 9,669,215 14,609,426 Unrestricted 31,058,324 35,367,696 41,493,641 44,134,811 Total primary governmental net assets 129,205,427 $ 138,304,290 $ 220,549,877 $ 225,223,340 $ 116 ---PAGE BREAK--- 2001 2002 2003 2004 Expenses Governmental Activities: General Government 4,115,737 $ 3,551,255 $ 3,943,450 $ 4,090,732 $ Judicial 338,231 351,190 298,156 279,656 Public Safety 4,028,317 4,447,521 4,544,974 5,092,445 Public Works 1,368,523 1,435,266 1,570,915 1,526,742 Culture and Recreation 2,932,467 4,276,140 4,509,569 4,601,780 Interest on Long-Term Debt 1,208,780 1,191,417 1,262,835 1,214,491 Adjustment of Asset Held for Resale - - 72,182 268,032 Total governmental activities expenses 13,992,055 $ 15,252,789 $ 16,202,081 $ 17,073,878 $ Business-type Activities: Water 2,862,587 $ 3,475,347 $ 4,108,398 $ 4,512,239 $ Water Reclamation 1,247,345 1,315,171 1,742,104 2,178,177 Golf Course 1,732,443 1,721,011 1,782,439 1,523,687 Storm Water - - - - Total business-type activities expenses 5,842,375 6,511,529 7,632,941 8,214,103 Total primary governmental expenses 19,834,430 $ 21,764,318 $ 23,835,022 $ 25,287,981 $ Program Revenues Governmental activities: Program Revenues Charges for Services General Government 1,010,477 $ 1,822,817 $ 1,541,682 $ 1,051,805 $ Judicial 160,335 248,467 388,147 438,660 Public Safety 16,310 10,555 33,520 29,908 Public Works 117,000 117,000 265,904 302,098 Culture and Recreation 1,216,941 1,172,749 1,234,250 1,312,464 Total Charges for Services 2,521,063 3,371,588 3,463,503 3,134,935 Operating grants and contributions 922,497 949,277 1,158,588 984,653 Capital grants and contributions 1,453,120 2,015,516 2,456,336 4,784,311 Total governmental activities program revenues 4,896,680 $ 6,336,381 $ 7,078,427 $ 8,903,899 $ Business-type Activities: Program Revenues Charges for Services Water 3,823,050 $ 2,779,487 $ 3,755,408 $ 3,793,791 $ Water Reclamation 1,219,227 1,326,667 1,386,525 1,518,004 Storm Water - - - - Golf Course 2,227,210 2,183,541 2,082,080 1,979,585 Total Charges for Services 7,269,487 6,289,695 7,224,013 7,291,380 Operating grants and contributions 12,150 - - - Capital grants and contributions 6,091,211 2,328,562 2,272,411 6,636,596 Total business-type activities program revenues 13,372,848 8,618,257 9,496,424 13,927,976 Total primary government program revenues 18,269,528 $ 14,954,638 $ 16,574,851 $ 22,831,875 $ CITY OF LAFAYETTE, COLORADO CHANGES IN NET ASSETS, LAST EIGHT YEARS SCHEDULE 2 For the Fiscal Year Ended December 31, 2008 117 ---PAGE BREAK--- 2005 2006 2007 2008 Expenses Governmental Activities: General Government 4,137,230 $ 4,502,008 $ 4,590,325 $ 5,440,531 $ Judicial 299,968 302,712 310,187 290,116 Public Safety 5,589,417 5,985,716 6,913,573 7,382,185 Public Works 1,730,313 2,035,038 3,633,406 4,916,059 Culture and Recreation 4,915,325 4,895,446 5,295,757 5,698,114 Interest on Long-Term Debt 1,304,370 1,530,509 1,492,229 1,514,513 Adjustment of Asset Held for Resale - - - - Total governmental activities expenses 17,976,623 $ 19,251,429 $ 22,235,477 $ 25,241,518 $ Business-type Activities: Water 4,509,549 $ 5,026,708 $ 5,138,896 $ 5,486,174 $ Water Reclamation 2,248,884 2,470,857 2,611,185 2,889,586 Golf Course 1,644,464 1,625,813 1,795,403 1,836,742 Storm Water - - 321 25,141 Total business-type activities expenses 8,402,897 9,123,378 9,545,805 10,237,643 Total primary governmental expenses 26,379,520 $ 28,374,807 $ 31,781,282 $ 35,479,161 $ Program Revenues Governmental activities: Program Revenues Charges for Services General Government 1,149,601 $ 724,774 $ 962,093 $ 1,311,750 $ Judicial 447,101 717,508 851,855 915,158 Public Safety 47,381 44,101 298,106 572,876 Public Works 281,256 309,304 180,322 964,251 Culture and Recreation 1,411,720 1,664,673 1,637,956 1,380,001 Total Charges for Services 3,337,059 3,460,360 3,930,332 5,144,036 Operating grants and contributions 913,437 965,959 1,209,991 1,208,330 Capital grants and contributions 2,253,872 3,147,419 6,869,830 3,289,125 Total governmental activities program revenues 6,504,368 $ 7,573,738 $ 12,010,153 $ 9,641,491 $ Business-type Activities: Program Revenues Charges for Services Water 4,923,757 $ 5,943,428 $ 5,485,274 $ 5,574,085 $ Water Reclamation 1,524,581 1,543,980 1,553,806 1,553,045 Storm Water - - 563,292 925,466 Golf Course 2,206,578 2,337,037 2,432,189 2,424,316 Total Charges for Services 8,654,916 9,824,445 10,034,561 10,476,912 Capital grants and contributions 5,048,166 2,613,794 8,065,898 1,086,071 Total business-type activities program revenues 13,703,082 12,438,239 18,100,459 11,562,983 Total primary government program revenues 20,207,450 $ 20,011,977 $ 30,110,612 $ 21,204,474 $ 118 ---PAGE BREAK--- 2001 2002 2003 2004 Net (Expense)/Revenue Governmental activities (9,095,375) $ (8,916,408) $ (9,123,654) $ (8,169,979) $ Business-type activities 7,530,473 2,106,728 1,863,483 5,713,873 Total primary government net expenses (1,564,902) $ (6,809,680) $ (7,260,171) $ (2,456,106) $ General Revenues and Changes in Net Assets Governmental activities: Taxes Property taxes 2,431,160 $ 3,034,093 $ 3,466,370 $ 3,637,650 $ Sales and use taxes 7,728,825 7,813,578 7,892,329 8,304,870 Other taxes - - 32,319 40,760 Unrestricted grants and contributions - - - - Interest 1,247,609 696,317 295,299 255,735 Franchise Taxes 560,884 559,043 630,347 708,253 Other general revenues 33,501 35,375 Gain (Loss) on sale of capital assets - - 498,819 7,245 Transfers 1,921,849 1,204,194 2,608,402 1,239,670 Special Item - Gain on Fire Conversion - - - - Total governmental activities 13,923,828 13,342,600 15,423,885 14,194,183 Business-type activities: Interest 1,243,534 $ 735,817 $ 378,439 $ 366,292 $ Gain (Loss) on sale of capital assets - - - 8,440 Transfers (1,921,849) (1,204,194) (2,608,402) (1,239,670) 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) Total primary government 13,294,983 $ 12,874,223 $ 13,193,922 $ 13,329,245 $ Changes in Net Assets Governmental activities 4,828,453 $ 4,426,192 $ 6,300,231 $ 6,024,204 $ Business-type activities 6,901,628 1,638,351 (366,480) 4,848,935 Total primary government net assets 11,730,081 $ 6,064,543 $ 5,933,751 $ 10,873,139 $ 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 EIGHT YEARS SCHEDULE 2 (CONTINUED) For the Fiscal Year Ended December 31, 2008 119 ---PAGE BREAK--- 2005 2006 2007 2008 Net (Expense)/Revenue Governmental activities (11,472,255) (11,677,691) (10,225,324) (15,600,027) Business-type activities 5,300,185 3,314,861 8,554,654 1,325,340 Total primary government net expenses (6,172,070) $ (8,362,830) $ (1,670,670) $ (14,274,687) $ General Revenues and Changes in Net Assets Governmental activities: Taxes Property taxes 3,734,122 4,636,466 4,517,103 4,475,327 Sales and use taxes 8,578,845 9,411,455 10,080,824 10,291,910 Other taxes 33,322 40,940 34,806 - Unrestricted grants and contributions - - - - Interest 563,709 1,043,848 1,299,871 1,455,686 Franchise Taxes 813,636 863,349 868,106 1,000,028 Other general revenues - - - 31,075 Gain (Loss) on sale of capital assets 15,480 47,733 7,180 7,946 Transfers 1,436,116 1,465,438 1,415,425 1,415,946 Special Item - Gain on Fire Conversion - - 199,677 110,036 Total governmental activities 15,175,230 17,509,229 18,422,992 18,787,954 Business-type activities: Interest 728,013 $ 1,417,902 $ 2,070,994 $ 2,045,405 $ Gain (Loss) on sale of capital assets - - - - Transfers (1,436,116) (1,465,438) (1,415,425) (1,415,946) Other general revenues - - - - Special Item - Return Water Rights to Developer - - - (469,263) Total business-type activities (708,103) (47,536) 655,569 160,196 Total primary government 14,467,127 $ 17,461,693 $ 19,078,561 $ 18,948,150 $ Changes in Net Assets Governmental activities 3,702,975 $ 5,831,538 $ 8,197,668 $ 3,187,927 $ Business-type activities 4,592,082 3,267,325 9,210,223 1,485,536 Total primary government net assets 8,295,057 $ 9,098,863 $ 17,407,891 $ 4,673,463 $ 120 ---PAGE BREAK--- 2001 2002 2003 2004 General Fund Reserved 12,048 $ 966,172 $ 2,306,175 $ 3,698,609 $ Unreserved 11,192,912 9,747,503 9,138,312 4,966,419 Total general fund 11,204,960 $ 10,713,675 $ 11,444,487 $ 8,665,028 $ All other Governmental Funds Reserved 11,335,232 $ 20,264,238 $ 5,124,545 $ 4,209,126 $ Unreserved, reported in: Special revenue funds 102,490 192,888 277,783 601,577 Capital project funds - 4,859,425 6,466,668 6,817,919 Debt service fund - - - - Total other governmental funds 11,437,722 $ 25,316,551 $ 11,868,996 $ 11,628,622 $ 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 EIGHT YEARS SCHEDULE 3 For the Fiscal Year Ended December 31, 2008 121 ---PAGE BREAK--- 2005 2006 2007 2008 General Fund Reserved 3,676,917 $ 3,861,134 $ 4,903,315 $ 4,895,129 $ Unreserved 4,320,066 4,956,337 6,418,992 7,450,132 Total general fund 7,996,983 $ 8,817,471 $ 11,322,307 $ 12,345,261 $ All other Governmental Funds Reserved 8,160,580 $ 5,416,688 $ 3,749,378 $ 12,878,005 $ Unreserved, reported in: Special revenue funds 748,504 943,701 982,056 936,855 Capital project funds 3,689,182 4,619,021 3,836,539 - Debt service fund 3,751 38,342 355,034 187,261 Total other governmental funds 12,602,017 $ 11,017,752 $ 8,923,007 $ 14,002,121 $ 122 ---PAGE BREAK--- 2001 2002 2003 2004 Revenues Taxes 10,159,985 $ 10,847,671 $ 11,358,699 $ 11,947,820 $ Licenses and Permits 786,006 1,031,737 911,379 913,460 Intergovernmental 1,167,262 1,190,177 1,326,863 1,600,202 Urban Drainage District - - 200,809 - Fines and Forfeitures 160,335 283,692 420,456 465,286 Franchise Taxes 560,884 559,043 630,347 708,253 Interest 1,206,695 634,104 320,793 246,267 Sidewalk Maintenance/Repair - 80,424 95,597 82,259 Contributions 1,000,100 65,779 74,842 69,660 Charges for Services 1,478,627 1,956,809 1,759,327 1,539,653 Special Assessments Principal 74,303 81,717 488,453 239,353 Special Assessments Interest - 70,163 1,363,755 1,004,650 Administrative Fees - - 22,615 88,374 Miscellaneous 263,548 99,350 593,552 172,101 Total revenues 16,857,745 16,900,666 19,567,487 19,077,338 Expenditures General Government 3,717,684 3,425,548 3,706,811 6,191,131 Judicial 338,231 351,441 297,246 279,630 Public Safety 3,711,685 4,015,889 4,142,895 4,637,191 Public Works 1,224,329 1,223,634 1,380,334 1,241,332 Culture and Recreation 2,484,745 3,688,467 3,923,821 4,056,279 Capital Outlay 7,601,060 4,795,190 6,579,285 4,391,912 Debt Service Capital Lease Payments - 255,400 254,506 256,721 Principal 906,931 963,287 19,294,637 1,215,978 Interest and Fiscal Charges 1,162,547 998,916 1,465,817 1,095,552 Bond Issuance Costs 198,802 244,544 183,488 - Total expenditures 21,346,014 19,962,316 41,228,840 23,365,726 Excess of Revenues Over (Under) Expenditures (4,488,269) (3,061,650) (21,661,353) (4,288,388) CITY OF LAFAYETTE, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST EIGHT YEARS SCHEDULE 4 For the Fiscal Year Ended December 31, 2008 123 ---PAGE BREAK--- 2005 2006 2007 2008 Revenues Taxes 12,318,267 $ 14,053,221 $ 14,603,227 $ 14,771,535 $ Licenses and Permits 780,630 1,015,589 421,730 253,390 Intergovernmental 1,096,289 1,275,115 1,547,140 1,510,385 Urban Drainage District - - - - Fines and Forfeitures 478,208 752,055 851,855 915,158 Franchise Taxes 813,636 863,349 868,106 1,000,028 Interest 517,356 971,545 1,143,086 1,392,581 Sidewalk Maintenance/Repair 84,496 86,799 58,681 88,598 Contributions 153,190 40,318 1,884,478 223,094 Charges for Services 1,645,548 1,716,339 2,255,825 3,256,023 Special Assessments Principal 8,735 635,569 736,983 1,165,209 Special Assessments Interest 62,273 827,804 548,322 597,149 Administrative Fees 95,969 62,683 62,683 57,627 Miscellaneous 105,821 292,658 82,034 99,185 Total revenues 18,160,418 22,593,044 25,064,150 25,329,962 Expenditures General Government 3,797,408 4,201,131 4,415,363 5,237,978 Judicial 299,383 301,862 310,518 290,028 Public Safety 5,215,916 5,587,442 6,332,944 6,707,011 Public Works 1,318,180 1,437,309 1,755,484 2,643,677 Culture and Recreation 4,282,927 4,197,522 4,367,085 4,725,802 Capital Outlay 7,096,025 5,596,574 6,542,656 5,651,205 Debt Service Capital Lease Payments 244,445 94,914 172,735 243,990 Principal 1,765,000 1,955,000 2,025,000 2,100,000 Interest and Fiscal Charges 1,173,982 1,429,713 1,390,828 1,428,637 Bond Issuance Costs 108,799 20,792 - 49,500 Total expenditures 25,302,065 24,822,259 27,312,613 29,077,828 Excess of Revenues Over (Under) Expenditures (7,141,647) (2,229,215) (2,248,463) (3,747,866) 124 ---PAGE BREAK--- 2001 2002 2003 2004 Other Financing Sources (Uses) Proceeds From Debt 5,950,000 15,245,000 6,408,390 - Retirement of Bonds Refunded - - - - Lease Issuance 357,208 - - 56,622 Transfers In 2,016,302 3,886,251 15,657,178 4,918,211 Transfers Out (94,453) (2,682,057) (13,048,776) (3,438,246) Total other financing sources (uses) 8,229,057 16,449,194 9,016,792 1,536,587 Special Item Insurance Proceeds-Boat House - - - - Total special items - - - - Adjustment of Asset Held for Resale - - (72,182) (268,032) Net change in fund balances 3,740,788 $ 13,387,544 $ (12,716,743) $ (3,019,833) $ Debt service as a percentage of noncapital expenditures 15.1% 14.6% 60.7% 13.5% 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 EIGHT YEARS SCHEDULE 4 (CONTINUED) For the Fiscal Year Ended December 31, 2008 125 ---PAGE BREAK--- 2005 2006 2007 2008 Other Financing Sources (Uses) Proceeds From Debt 6,010,881 2,070,000 1,243,179 8,023,279 Retirement of Bonds Refunded - (2,040,000) - - Lease Issuance - - - - Transfers In 1,891,595 1,996,337 4,437,885 2,426,106 Transfers Out (455,479) (530,899) (3,022,460) (1,010,160) Total other financing sources (uses) 7,446,997 1,495,438 2,658,604 9,439,225 Special Item Insurance Proceeds-Boat House - - - 410,709 Total special items - - - 410,709 Adjustment of Asset Held for Resale - - - - Net change in fund balances 305,350 $ (763,777) $ 410,141 $ 6,102,068 $ Debt service as a percentage of noncapital expenditures 17.5% 18.1% 17.3% 16.7% 126 ---PAGE BREAK--- General Fire Specific Total Fiscal Property District Ownership Cigarette Sales Franchise Use General Tax Year Tax Tax Tax Tax Tax Tax Tax 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 4,648,750 529,572 2,539,708 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 4,965,407 559,043 2,848,171 11,440,057 2003 3,206,560 5,300 254,510 32,319 5,194,537 630,347 2,697,792 12,021,365 2004 3,380,859 5,300 256,791 35,560 5,631,759 708,253 2,673,111 12,691,633 2005 3,475,379 5,300 258,745 28,022 6,196,060 813,636 2,382,786 13,159,928 2006 4,339,992 5,300 296,474 35,640 7,037,401 863,349 2,374,054 14,952,210 2007 4,231,390 5,300 285,712 29,506 7,813,683 868,106 2,493,030 15,726,727 2008 4,202,863 5,300 272,464 31,075 8,471,790 1,000,028 1,820,120 15,803,640 Includes property taxes from general improvement districts Includes taxes on building materials and motor vehicles. Effective January 1, 2000, sales and use taxes increased from 3.25% to 3.50%. Amount is included in intergovernmental revenue on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds SCHEDULE 5 For the Fiscal Year Ended December 31, 2008 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% 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 Eight Fiscal Years 128 ---PAGE BREAK--- 2002 2003 2004 2005 Aggregate top ten filers 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% Data for 2001 unavailable. 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 Eight Fiscal Years 129 ---PAGE BREAK--- 2006 2007 2008 Aggregate top ten filers 3,713,861 $ 5,047,321 $ 4,842,212 $ Aggregate all other filers 3,642,042 3,221,810 3,815,397 Total sales and use tax 7,355,903 $ 8,015,494 $ 8,657,609 $ Top ten filers as a percentage of total sales tax 50.49% 62.97% 55.93% 130 ---PAGE BREAK--- Sales Tax Limited Tax General Fiscal Revenue Revenue Obligation Demand Capital Term Loan Year Bonds 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 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. 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. See Schedule 12 for Population and Personal Income figures. Governmental Activities CITY OF LAFAYETTE, COLORADO SCHEDULE 8 Last Eight 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 Bonds Bonds Bonds Leases Payable Government Capita 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 59,542,987 2,302 8.67% Business-Type Activities 132 ---PAGE BREAK--- 2001 2002 2003 2004 General bonded debt outstanding 35,078,903 $ 48,290,616 $ 50,400,979 $ 48,405,000 $ Total 35,078,903 48,290,616 50,400,979 48,405,000 Less: General obligation water bonds 6,485,000 $ 6,025,000 $ 5,645,000 $ 5,095,000 $ Water Revenue Bonds - - 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 Sales tax revenue bonds 6,635,000 6,100,000 5,670,000 5,010,000 Demand Bonds 12,000,000 24,500,000 12,500,000 12,500,000 Golf course revenue bonds 900,000 500,000 500,000 500,000 Total net debt applicable to debt limit 5,208,903 $ 4,790,616 $ 4,345,979 $ 3,885,000 $ Estimated Actual Property Values 1,995,992,500 2,025,956,955 2,494,049,689 2,589,204,957 Legal debt limit 59,879,775 60,778,709 74,821,491 77,676,149 Legal debt margin 54,670,872 $ 55,988,093 $ 70,475,512 $ 73,791,149 $ Outstanding debt as a percentage of debt limit 9% 8% 6% 5% Population 25,283 26,121 25,373 25,051 Net General Bonded Debt Per Capita 206 $ 183 $ 171 $ 155 $ Source: Boulder County Assessor's Office Debt limit is 3% of Estimated Actual Real Estate Value The legal debt margin is the city's available borrowing authority Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Last Eight Fiscal Years CITY OF LAFAYETTE, COLORADO Fiscal Year RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT LIMIT SCHEDULE 9 133 ---PAGE BREAK--- 2005 2006 2007 2008 General bonded debt outstanding 51,801,200 $ 49,389,658 $ 46,552,000 $ 50,701,400 $ Total 51,801,200 49,389,658 46,552,000 50,701,400 Less: General Obligation Water Bonds 4,535,000 $ 3,955,000 $ 3,350,000 $ 2,735,000 $ 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 Limited Tax Obligation Bonds 5,400,000 3,300,000 3,235,000 3,160,000 Sales Tax Revenue Bonds 4,340,000 3,660,000 2,965,000 9,165,000 Demand Bonds 12,025,000 11,525,000 11,005,000 10,465,000 Golf Course Revenue Bonds 461,200 420,200 377,000 331,400 Total net debt applicable to debt limit 9,395,000 $ 8,844,458 $ 7,935,000 $ 7,160,000 $ Estimated Actual Property Values 2,832,017,000 2,903,216,100 2,992,447,300 2,903,216,100 Legal debt limit 84,960,510 87,096,483 89,773,419 87,096,483 Legal debt margin 75,565,510 $ 78,252,025 $ 81,838,419 $ 79,936,483 $ Outstanding debt as a percentage of debt limit 11% 10% 9% 8% Population 25,798 25,864 26,453 25,945 Net General Bonded Debt Per Capita 364 $ 342 $ 300 $ 276 $ Fiscal Year 134 ---PAGE BREAK--- General Percentage Estimated Obligation Applicable Share of Bonded Debt To Overlapping Jurisdiction Outstanding Government Debt Direct: City of Lafayette 7,160,000 100.00% 7,160,000 Overlapping: Boulder Valley School District RE-2 220,600,000 5.66% 12,485,960 Total 227,760,000 19,645,960 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 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, 2008 SCHEDULE 10 135 ---PAGE BREAK--- Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 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 Sales & Use Debt Service Tax Increment Principal Interest Coverage 2001 6,634,402 510,000 344,505 7.76 2002 6,713,205 535,000 322,320 7.83 2003 6,774,074 690,000 314,520 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 8,317,710 710,000 222,590 8.92 Gross resources include all operating revenues plus interest and other non-operating revenues. Included are tap fees and cash received in lieu of water rights, both of which are classified as capital contributions. Includes all operating expenses less depreciation and amortization, plus transfers out. Net available revenue divided by total bond principle and interest. Sales & Use Tax Increment divided by total bond principle and interest. Refunded 1993 Sales & Use Tax bonds with 2003C Sales & Use Tax bonds in the amount of $6,360,000. Issued 2008 Series Sales & Use Tax Revenue Bonds in the amount of $6,910,000. Adverse business conditions caused an extension of the final maturity date of these bonds. Sales Tax Revenue Bonds Debt Service Water Revenue Bonds CITY OF LAFAYETTE, COLORADO PLEDGED REVENUE COVERAGE SCHEDULE 11 Last Eight Fiscal Years 136 ---PAGE BREAK--- Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 2001 2,430,487 1,445,719 984,768 - 84,577 11.64 2002 2,178,818 994,957 1,183,861 - 467,427 2.53 2003 1,927,172 1,162,668 764,504 45,267 367,414 1.85 2004 2,542,329 1,357,551 1,184,778 83,525 329,782 2.87 2005 2,729,239 1,393,503 1,335,736 91,024 309,526 3.33 2006 2,471,143 1,630,342 840,801 360,147 319,873 1.24 2007 2,627,771 1,661,653 966,118 374,109 305,161 1.42 2008 2,374,918 1,918,606 456,312 385,689 162,110 0.83 Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 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 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 Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 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 Golf Course Revenue Bonds Debt Service Lafayette City Center GID Revenue Bonds Debt Service CITY OF LAFAYETTE, COLORADO PLEDGED REVENUE COVERAGE SCHEDULE 11 Last Eight Fiscal Years Bonds Debt Service 137 ---PAGE BREAK--- Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 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 Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 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 Net Fiscal Gross Available Year Resources Expenses Revenue Principal Interest Coverage 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 Lafayette Corp Campus GID Debt Service Lafayette Tech Center GID Debt Service CITY OF LAFAYETTE, COLORADO PLEDGED REVENUE COVERAGE SCHEDULE 11 Last Eight 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% Estimated Estimated Number Number Firm Employees Firm Employees City of Lafayette 321 1500 Wal-Mart 225 370 Advanced Component Systems 200 City of Lafayette 330 Design Fabricators 130 Universal Forest Products 285 Albertsons 100 Imagine! 250 Coherent Technologies 48 Wal-Mart 189 McDonalds 60 Rocky Mountain Instruments 150 Wendy's 35 Dharmacon 130 Health Care Resources 35 Albertsons 112 Lafayette Florist 30 Northrup Grumman 110 Sources: Colorado Department of Labor and Employment Boulder County School District R-1 Lafayette Chamber of Commerce Exempla Good Samaritan Hospital Abacus CITY OF LAFAYETTE, COLORADO DEMOGRAPHIC AND ECONOMIC STATISTICS SCHEDULE 12 Last Eight Fiscal Years 1999 2008 AND TOP TEN EMPLOYERS FOR 1999 AND 2008 139 ---PAGE BREAK--- Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 Executive and Administration City Council 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 Community Development - - - - 2.00 2.00 2.00 2.00 City Clerk 1.00 1.50 1.50 1.00 1.00 2.00 2.00 2.00 Municipal Court 2.00 2.50 2.50 2.50 2.50 2.50 2.75 2.75 Finance Administrative Services 1.33 1.33 1.33 1.33 1.33 1.33 1.33 1.00 Human Resources 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 6.00 Information Technologies 2.00 2.00 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 Public Safety Police Department 46.00 46.00 48.00 48.00 50.00 50.00 50.00 49.00 Fire Department 2.63 2.50 2.50 2.50 5.50 5.50 5.50 4.98 Ambulance - - - - - - 10.89 9.00 Public Works & Utilities Public Works Administration 14.20 15.20 15.20 13.70 13.70 12.66 12.66 8.51 Water: Administration 0.40 1.20 1.20 1.20 1.20 2.29 1.54 1.54 Source of Supply 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 Transmission & Distribution 7.50 7.50 8.25 8.25 6.75 7.50 7.50 6.65 Water Reclamation: Administration 0.40 0.60 0.60 0.60 0.60 0.93 0.93 0.93 Treatment 5.75 5.75 6.75 6.37 6.75 6.19 6.19 6.00 Collection 1.75 1.75 1.75 3.50 5.00 5.76 5.76 5.68 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 Cemeteries - - - 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 10.69 Open Space Maintenance 1.00 1.00 1.00 1.00 1.00 1.50 2.50 2.00 Golf Course Administration 0.20 0.20 0.20 0.20 0.20 0.33 0.33 0.66 Golf Course Operations 12.50 12.50 14.27 10.17 11.63 10.63 10.63 9.00 Club House Operations 7.25 7.25 7.25 5.36 7.25 7.25 7.25 6.50 Snack Bar Operations 3.25 3.25 3.25 3.18 3.72 3.72 3.72 3.72 Sub totals 161.19 164.29 170.32 163.01 174.65 173.48 186.52 173.76 BY FUNCTION/PROGRAM FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES CITY OF LAFAYETTE, COLORADO SCHEDULE 13 Last Eight Fiscal Years 140 ---PAGE BREAK--- Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 Recreation & Facility Management Department Recreation & Facility Management: Administration - - - - - 2.75 3.25 3.50 Leisure Services 11.25 11.17 10.94 9.94 10.94 9.74 9.24 12.75 Recreation 36.03 35.94 34.94 35.94 34.94 28.73 32.41 30.91 Building Maintenance 5.50 4.25 4.25 4.25 4.25 9.46 10.96 10.75 Community Life Department Library 16.10 17.21 17.21 17.21 17.21 18.04 17.87 15.60 Senior Services 2.00 3.00 3.00 3.50 3.50 3.50 3.50 3.50 Subtotals 70.88 71.57 70.34 70.84 70.84 72.22 77.23 77.01 Grand totals 232.07 235.86 240.66 233.85 245.49 245.70 263.75 250.77 Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 CITY OF LAFAYETTE, COLORADO BY FUNCTION/PROGRAM SCHEDULE 13 (CONTINUED) Last Eight Fiscal Years FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES 141 ---PAGE BREAK--- Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 Police Physical arrests 1,711 1,553 1,486 1,630 1,605 1,492 1,149 1,318 Municipal Citations * 3,232 5,140 5,353 4,717 6,850 6,147 6,983 Fire Emergency responses 1,376 1,510 1,515 1,411 1,619 1,587 1,879 1,885 Inspections conducted 100 100 100 100 100 100 250 330 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 % Resident Play 23% 29% 29% 26% 21% 17% 20% 19% Cemetary plot opening/closings 30 24 27 30 33 29 25 30 Recreation and Facility Management Individual Annual Passes sold 90 132 168 237 302 315 403 421 Couple or Family Annual Passes 83 118 140 198 255 242 293 307 Punch Cards sold 2,469 3,356 3,489 2,881 2,598 2,384 2,524 2,243 Total Attendance 227,803 237,266 230,870 222,313 230,367 226,284 235,506 227,175 Facilities and services not included in the reporting entity: Number of public elementary schools 4 4 4 4 4 4 4 4 Number of elementary instructors 114.6 114.7 98.0 100.1 102.5 107.8 107.7 145.0 Number of public middle schools 1 1 1 1 1 1 1 1 Number of middle school instructors 46.9 * 42.2 44.5 43.2 38.3 38.1 40.0 Charter school (K through 12) 1 1 1 1 1 1 1 1 Number of public high schools 1 1 1 1 1 1 1 1 Number of high school instructors 61.3 * 58.3 63.3 62.7 61.8 65.5 90.0 * Information is unavailable Full-time equivalents Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Source: Boulder Valley School District CITY OF LAFAYETTE, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM SCHEDULE 14 Last Eight Fisal Years 142 ---PAGE BREAK--- Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 Police Stations 1 1 1 1 1 1 1 1 Commissioned officers 36 31 35 37 37 39 40 40 Fire Stations 1 1 1 1 1 1 1 1 Public Works Centerline miles of streets 82 92 94 97 97 97 97 98 Street lights 1,476 1,414 1,450 1,461 1,461 1,512 1,512 1,531 Recreation and Culture Parks 15 15 15 17 17 18 18 19 Developed acres 205 205 205 217 230 236 236 236 Undeveloped acres 74 151 151 151 151 216 216 216 Open Space acres 741 996 996 996 1,042 1,042 1,120 1,120 Libraries 1 1 1 1 1 1 1 1 Utilities Water mains (miles) 215 218 227 230 230 230 233 235 Sanitary sewer (miles) 179 181 184 186 186 186 191 192 Water connections 7,324 7,439 7,518 7,809 8,097 8,197 8,240 8,267 Wastewater connections 6,851 6,942 7,173 7,544 7,571 7,672 7,685 7,651 Note: The City of Lafayette implemented GASB 34 as of December 31, 2001 Last Eight Fiscal Years SCHEDULE 15 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM CITY OF LAFAYETTE, COLORADO 143 ---PAGE BREAK--- COMPLIANCE SECTION This section consists of the following: • Local highway finance report 2008 ---PAGE BREAK--- 145 ---PAGE BREAK--- 146