Document Laramie_doc_a75582f349

Comprehensive Annual Financial Report City of Laramie, Wyoming Fiscal Year 2011 July 1, 2010 to June 30, 2011 ---PAGE BREAK--- The City of Laramie The City of Laramie, Wyoming is located 49 miles from the state capital, Cheyenne, and 130 miles from the metropolitan city, Denver, Colorado. Laramie’s elevation is 7,165 feet above sea level and is situated on the eastern edge of a large, nearly level plateau called the Laramie Plains. The City of Laramie is encircled by the Laramie Mountain Range to the east and north and by the Medicine Bow Range to the south and west. Laramie is one of Wyoming’s seventeen “first- class” cities with a population over 4,000. The 2010 Census population of Laramie was 30,816. The site and name for the City of Laramie were selected by Union Pacific Chief Engineer, General Grenville M. Dodge. The first train arrived in Laramie in May of 1868 when Laramie’s population was approximately 2,000. The Laramie Union Pacific Depot opened in September of 1924, replacing an earlier railroad station destroyed by fire in 1917. The Union Pacific Depot served as Laramie’s passenger depot until 1971 and now houses a museum of local railroad history. Arrival of Union Pacific officials, Laramie City, June, 1868 Original Union Pacific Depot & Hotel Sources: www.wyomingtalesandtrails.com www.laramiedepot.org www.visitlaramie.org ---PAGE BREAK--- TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Letter of Transmittal 1-5 Certificate of Achievement 6 City of Laramie Organization Chart 7 List of Officials 8 II. FINANCIAL SECTION Independent Auditors’ Report 9-10 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 11-35 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets 36 Statement of Activities 37-38 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet 39 Reconciliation of the Balance Sheet to the Statement of Net Assets- Governmental Funds 40 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds 41 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities- Governmental Funds 42-43 Proprietary Fund Financial Statements Statement of Net Assets- Proprietary Funds 44-45 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds 46 Statement of Cash Flows- Proprietary Funds 47-48 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets 49 Statement of Changes in Fiduciary Net Assets 50 Notes to Basic Financial Statements 51-84 ---PAGE BREAK--- C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A Index to Illustrative Required Supplementary Information 85 Public Employee, Police Officer and Firemen’s Pension Fund Funding Progress Schedule 86 Budgetary Comparison Schedule- General Fund General Fund 87-88 Notes to Required Supplementary Information- Budgetary Comparisons 89 D. COMBINING FINANCIAL STATEMENTS Non-Major Governmental Funds Combining Balance Sheet Other Governmental Funds 90-91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds 92-93 E. SUPPLEMENTAL INFORMATION Budgetary Comparison Schedules Other Governmental Funds Specific Purpose Tax Fund 94 Wyoming Territorial Prison Debt Service Fund 95 City Council Construction Fund 96 Economic Development Fund 97 Emergency 911 Fund 98 Parks and Recreation Construction Fund 99 West Laramie Capital Projects Fund 100 Recreation Center Fund 101 III. STATISTICAL SECTION 102 A. FINANCIAL TRENDS INFORMATION Net Assets by Component 103-104 Changes in Net Assets 105-108 Fund Balances, Governmental Funds 109-110 Statement of Revenues, Expenditures, and Changes in Fund Balance- Governmental Funds 111-112 General Government Expenditure by Function 113-114 ---PAGE BREAK--- B. REVENUE CAPACITY INFORMATION General Government Revenues by Source 115-116 Tax Revenue by Source 117-118 Direct and Overlapping Sales Tax Rates 119 Principal Sales tax Remitters 120 Assessed and Estimated Actual Value of Taxable Property 121-122 Property Tax Rates and Tax Levies-Direct and Overlapping Governments 123-124 Principal Taxpayers 125 Property Tax Levies and Collections 126-127 C. DEBT CAPACITY INFORMATION Computation of Legal Debt Margin – General Obligation 128 Computation of Legal Debt Margin – Sewer 129 Computation of Direct and Overlapping Debt 130-131 Ratio of Outstanding Debt by Type 132-133 Ratio of General Bonded Debt Outstanding 134 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 135 D. DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 136-137 Major Employers in Albany County 138 E. OPERATING INFORMATION Full-Time Equivalent City of Laramie Employees and Other Operating Statistics 139-140 Capital Asset Statistics 141 Property Value, Construction and Bank Deposits 142-143 Insurance in Force 144-145 Salaries and Surety Bonds of Principal Officials 146 Annual Budget Process 147 ---PAGE BREAK--- ---PAGE BREAK--- 2 Profile of the Government The City of Laramie, Wyoming, has a population of 30,816 and is located in Albany County, in the south-east corner of Wyoming. The City is a Wyoming municipality with a Council-Manager form of government. The nine-member City Council is comprised of the Mayor (elected at large) and eight representatives from the ward system. Laramie sits at an elevation of 7,200 feet, in a high valley between two mountain ranges, and is home to the University of Wyoming. Laramie’s establishment and growth were initially fueled by the railroad. In 1866, the route for a transcontinental railroad was selected, and Laramie’s future was set in motion. As the railroad approached the Laramie area, Union Pacific (UP) employees and tradesmen began arriving. In the spring of 1868, the UP Railroad’s chief surveyor, General Grenville Dodge, selected the Laramie town site and its name, Laramie City. The railroad began selling lots in April of that year. On May 9, the line through Laramie was completed and the first train arrived the following day. The City was incorporated on December 12, 1873, seventeen years before Wyoming became a state. Today, Laramie is still a small town and sits on the high plains prairie of the Medicine Bow Mountain Range. The City of Laramie acts as a transportation corridor for the east/west connections of Interstate 80. The location provides connections for trucks, interstate traffic, and traditional rail freight cars traversing the Rocky Mountain region. Union Pacific Railroad mainline operates over 55 freight trains on a daily basis through Laramie. Interstate 80’s highest point, 8,640 feet, is at the summit of the Laramie Range in the Pole Mountain Area. While it is a small town, Laramie boasts amenities that are characteristic of larger communities. The University of Wyoming (UW) is the only public four-year higher education institution in the state. Not only does UW provide outstanding opportunities for higher education, it enhances the community through award-winning cultural programs and Division 1-A Intercollegiate athletic events. Residents from across Wyoming travel to Laramie to take advantage of its university scene, and the local economy benefits from these consistent visitors. Laramie is also home to the Wyoming Technical Automotive School, and Laramie County Community College at Albany County Campus. Laramie’s educational resources provide the city with an additional temporary population of 15,726 annually. The City of Laramie provides regular community services to its citizens. Among those are law enforcement; emergency services; animal control; code inspections and enforcement; building permits; local licensing; parking enforcement; planning and zoning regulation; parks and recreation; street maintenance; mosquito control; water; sewer; and garbage collection and disposal. Wyoming state statute requires that the budget must be balanced, adopted by the third Tuesday in June, and that the fiscal year for local governments is from July 1 through June 30. The budget sets forth City Council’s goals and objectives, and identifies the resources necessary to accomplish these goals and objectives. The legal level of budgetary control is adopted by Council and identified by department and fund. Appropriations lapse at the fiscal year end and incomplete projects must be re-appropriated in the next fiscal year as part of the annual budget adoption process. For fiscal years 2011 and 2012, the City adopted a biennial budget for the General Fund and Recreation Center special revenue fund and an annual budget for all other funds. The City did not exceed legally-adopted budget appropriations during the 2010-2011 fiscal year. ---PAGE BREAK--- 3 Local Economy The state of Wyoming is a large state with a centralized economy based on natural resources, energy sources, and tourism. The heart of Albany County is the City of Laramie. The City of Laramie holds 85% of the population of the entire county. Albany County does not have natural resources that are subject to economic boom-bust cycles; instead, it has a stable economy based on the University of Wyoming, small business development, and other academic sources. The top four employers in Albany County are the University of Wyoming, Albany County School District, Albany County Hospital District, and Wal-Mart. The principal sales tax remitters for the county are Wal-Mart Stores, Inc., PacifiCorp Financial Services Inc., University of Wyoming, and Source Gas Distribution LLC. The most recent estimates show that Albany County per capita personal income lags behind both state and national averages, which contains a degree of bias due to the large student population. Albany County has a labor force of around 19,000, and a current unemployment rate of around which mirrors the state average. The Wyoming Comparative Cost of Living Index indicates a value of 100 for Albany County, which represents the statewide average. The inflation rate in the past year has fluctuated between 3.2 and 5.0 percent in southeastern Wyoming. After a significant recession, the state of Wyoming’s recovery continues to be faster than the U.S. average, thanks to the ongoing rebound of the energy industry in fiscal year 2011. According to a state economic report, the second quarter of 2011 showed continued economic growth. The State’s unemployment rate dropped to 6.0 percent in the second quarter, while it climbed to 9.1 percent in the U.S. for the same period. Most industries in Wyoming showed job growth. Wyoming’s mining industry showed the most accelerated increase, with an 11.4% growth rate between the second quarters of 2010 and 2011. Sales tax for the state declined dramatically in fiscal year 2010, but appears to be on the rebound. Sales tax revenue has seen an 8.6% increase in quarter two of 2011 compared to the second quarter of 2010, which was a slower growth rate than the previous quarter. Albany County experienced a 1.5% decrease in sales tax collections during the previous year, but revenues have been consistent relative to mineral- rich counties in other parts of the state that experience much greater swings. While the City does not see large fluctuations in revenue, it has one of the lowest per capital revenue collection rates in the state. The City prepared for decreased revenue during the past few years through proactive budgeting and currently has a stable financial position because of these measures. Major Initiatives and Long-term Capital Planning The City of Laramie council and management continue working on long-term plans that will ensure the City can sustainably meet its obligations to provide a broad range of essential services to its residents. Through a number of council supported programs, the City of Laramie strives to improve services for the citizens and businesses of Laramie. The City follows conservatism in its budgeting and planning process in order to accommodate its level revenue base and low per capita rate. The City’s cash reserve policy, which states that a minimum of three to six months of operating reserve must be on hand at all times, reflects this philosophy. The City’s proactive approach to the 2010 revenue reductions, as well as the conservative amount bonded for ---PAGE BREAK--- 4 specific purpose tax infrastructure improvements, also illustrate the importance of fiscal responsibility to the City council and management. The City adopted a biennial budget for the General Fund and Recreation Center Special Revenue Fund for fiscal years 2011 and 2012 and an annual budget for all other funds. The City council and management are examining a permanent shift to a biennial budget process so that planning can more closely mirror the operating cycle of the state, on which the City relies for supplemental funding and sales tax distributions. Additionally, the budget has been enhanced with a five year comprehensive capital plan for the General Fund. This plan was implemented to proactively manage and prioritize capital replacement needs on a city-wide level. The specific purpose tax that Albany County voters approved in May 2010 is funding infrastructure improvements in streets; water and wastewater utilities; and the landfill, addressing needs for long-term capital improvements. Project design began in the spring of 2011 to prepare for summer construction season. These projects will continue over the next three years. City management continues to update its long-term financial plan for water and sewer utilities. This plan includes debt, fleet, operations, and capital requirements to provide a comprehensive financial picture. The 10-year capital plan is an important component, as the City has significant infrastructure needs to address. Consultants provide rate analysis and propose rate increases that support financial requirements in the long-term. The financial plan allows City council and management to quickly see the effects of both rate increases and alternate sources of revenue on the financial health of utility operations. City council and management have begun a long-term financial plan for solid waste management, as well. This process began with an Integrated Solid Waste Management study in 2010 and culminated this past year with the adoption of diversion rates to support a newly implemented recycling effort. The plan, as contracted with Bell and Associates, will provide similar elements of financial analysis as the utilities plan – debt service, fleet, and operational requirements and capital planning. The City’s new Unified Development Code (UDC) was adopted on March 2 after more than two years of meetings and public input and was effective July 1, 2010. The UDC is a timely new step into the 21st Century of Planning and Code Administration. The updated “UDC” focuses on development of the City, including zoning ordinances, subdivision and development standards, special corridor plans and the Comprehensive plan. A committee will continue throughout the year to monitor stakeholders’ use of the UDC and recommend amendments as necessary. A priority for the City of Laramie is expanding and solidifying business growth and preserving the City’s downtown history. The City works with the Laramie Main Street Program to foster the economic and social vitality of downtown Laramie, while accentuating its unique heritage. Additionally, the City advances business development through cooperative partnerships with the Laramie Economic Development Corporation and through support of Wyoming Business Council initiatives. ---PAGE BREAK--- 5 Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the City of Laramie for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2010. This was the 34th consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report 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. Acknowledgements The compilation of the Comprehensive Annual Financial Report is the responsibility of the Finance Department. This report is evidence of the dedication and many hours of hard work required to compile such a report. I would like to thank the entire Finance Staff for the excellent service they provide throughout the year which is reflected in this Comprehensive Annual Financial Report. The City is grateful to the State of Wyoming Division of Economic Analysis, the University of Wyoming, Wyoming Center for Business & Economic Analysis, Inc. and the Laramie Chamber of Commerce for their support in providing statistical data. I would also like to thank the City Council, the Finance Committee members, the City Manager and Assistant City Manager, and departments for their leadership and support in developing this CAFR. Malea Brown Administrative Services Director ---PAGE BREAK--- Certificate of Achievement for Excellence in Financial Reporting Presented to City of Laramie Wyoming For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2010 A Certificate of Achievement for Excellence in Financial Reporting is presented by tbe Government Finance Officers Association oftbe United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve tbe highest standards in government accounting and financial reporting. President Executive Director ---PAGE BREAK--- City of Laramie City Attorney Administrative Services • Municipal Court • Treasury & Accounting • Utility Billing Police • Animal Control • Criminal Investigations • Patrol • Records & Communications Human Resources & Employee Benefits Community Development • Code Enforcement • Engineering • Planning • Zoning Boards and Commissions Municipal Judge Public Works • Solid Waste • Streets • Utilities Fire • EMS/Fire • Fire Prevention • Fire Supression Parks & Recreation • Cemetery • Facilities Maintenance • Mosquito Control • Parks & Recreation • Rec Center/ Ice Arena City Council City Manager Assistant City Manager • Grants • Information Technology • Risk Management Citizens of Laramie ---PAGE BREAK--- City of Laramie, Wyoming Officials City Council Scott Mullner, Mayor, Ward 4 Karl McCraken, Vice Mayor, Ward 7 Klaus Hanson, Ward 1 Lee Kempert, Ward 2 Roger McKinley, Ward 3 Erik Molvar, Ward 5 Dave Paulekas, At Large Joe Shumway, Ward 6 Joe Vitale, At Large Municipal Judge Tony Lopez, Municipal Judge City Attorney David Clark, City Attorney Management Team Janine Jordan, City Manager David Derragon, Assistant City Manager Malea Brown, Administrative Services Director Lori Curry, Human Resources Director Rich Elliott, Public Works Director Paul Harrison, Parks & Recreation Director Randy Hunt, Community Development Director Dan Johnson, Fire Chief Dale Stalder, Chief of Police ---PAGE BREAK--- www.10‐40.com 307‐755‐1040 I fax 307‐742‐4944 505 South 3rd Street, Suite 100 I Laramie, WY 82070 INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the City Council and City Manager City of Laramie, Wyoming We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Laramie, Wyoming, as of and for the year ended June 30, 2011, which collectively comprise the City’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of City of Laramie, Wyoming, management. Our responsibility is to express an opinion 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 opinion. 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, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Laramie, Wyoming, as of June 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2011, on our consideration of the City of Laramie, Wyoming’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting and compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. ---PAGE BREAK--- 10 Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 11 through 35 and 87 through 89 be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with accounting standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements’ responses to inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express and opinion or provide ant assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Laramie, Wyoming basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, the budgetary comparison schedules for nonmajor governmental funds and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the budgetary comparison schedules for nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects as a whole. The introductory section and statistical tables 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. Laramie, Wyoming December 20, 2011 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 11 Management’s discussion and analysis is based on the City’s financial activities for the fiscal year ended June 30, 2011. The narrative is designed to assist the reader in focusing on significant financial issues provide an overview of the City’s financial activity identify any changes in financial position identify any material changes and deviations from the adopted budget and identify any major fund concerns. Financial Highlights  The City’s net assets exceed liabilities by $185.6 million. There is $70.0 million in unrestricted net assets ($47.7 in Governmental Activities and $22.3 in Business- Type Activities) which can be used to meet government’s on-going obligations and commitments to citizens and creditors in accordance with the City’s fiscal policies.  In FY11, the City’s governmental activities net assets increased $4.3 million while the business-type activities net assets increased $7.4 million compared to FY10. The City’s total net assets increased by $11.7 million for the current fiscal year.  At fiscal year-end the City’s total governmental funds, combined, ending fund balances reported were $66.4 million. The Recreation Center endowment of $2.2M makes up the majority of unspendable fund balance. Other unspendable fund balances include general fund prepaid inventory and economic development fund loans. The Debt Service fund has a restricted balance of $9.6 million which is monies to be used to pay for Wyoming Territorial Park debt. There remains $2.4 million in debt bond issuance for the 2002 Specific Purpose Tax and in 2010 the City renewed the tax and bonded an additional $22.5M for restricted infrastructure capital projects. The capital construction fund has many committed projects including West Laramie Drainage, streets, and greenbelt pathways. The assigned balance in the general fund mainly represents encumbrances from subsequent years’ budget and assigns monies to balance the current biennium budget. The General fund balance is $18.1 million. There is $7.1M in the General fund which is unassigned and can be spent at City discretion or used to maintain operating levels.  The State Legislature once again provided a two-year commitment, 2011 and 2012, for one-time over the cap severance monies. Because of the fall in natural gas prices and sagging sales tax collections, the State recommendation and budget reflected the current economy. The Governor recommended local government revenue sharing from past cycles exceeding $400M down to funding localities around $170M of which $50M would be direct distribution for over the cap severance. The final adopted 2011 – 2012 biennium for direct distribution was $61M which was an increase over his initial recommendation. The City of Laramie’s distribution for FY11 was $3.8M which is $1.6M less than in FY10. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 12  The City’s debt increased in total by $18.8 million. In the governmental funds, debt increased by $19.8 million. Two equipment leases were added this year totaling $360,875. The majority of the increase is the general obligation debt of $22.5M being backed by the 2010 Specific Purpose tax one-penny tax renewal. This replaced the 2001 Specific Purpose tax because all taxes are collected and held in trustee to complete repaying debt. The majority of debt reduction on capital leases was from the 2001 Specific Purpose tax debt payments totaling $2.4 million which was paid by sales tax penny collections. The Business-Type funds decreased in total by $1.0 million. A $1,814,049 loan for the Laramie transmission line is being financed by Wyoming Water Development Commission (WWDC) at a 4% interest rate. Payments are not due on this loan until the project is complete. The majority of debt reduction for business funds was for the waste water treatment plant Wyoming State Land and Investment Board loan totaling approximately $690,000 and revenue bond payments of $400,000. City Highlights  The City Council adopted a two year budget for the 2011-2012 Biennium (July 1, 2010 – June 30, 2012). The budget for both fiscal years is structurally balanced. The decline in general economic activity is evident in the City’s largest two revenue categories: Sales tax has declined approximately 9% and there was a 30% decline in state-shared revenue and food tax backfill which has been discontinued.  The City was cautious in this Biennium funding as the renewal of the “5th Cent” general purpose tax was up for renewal by the voters in November, 2010 or it would have expired. The 5th Cent contributed approximately $8.0 M to the general fund over the biennium in support of core services, including street repairs, fire and ambulance, police and storm services. The City had to prepare if citizens did not renew the tax. The citizens voted 76% in favor the renewal of the tax which continues to fund the core services.  Besides personnel cuts including no cost of living or merit based raises, the City had staff take unpaid furloughs in several divisions including the City Manager’s office, Police and Public Works. In addition, the general fund took a reduction- in-force of 6 full-time equivalents from four departments  The City created a Long-Term capital plan to assist in funding future capital projects. Like general revenues, capital construction funding has declined as well with only $33M appropriated statewide, as compared to $230M in the last biennium. The City had on-going projects funded in Capital Construction but reduced the transfer from the General fund down to $470,000. A number of projects were delayed, or project scope reduced, including initial redevelopment of Amoco property, painting of Garfield street footbridge, reconstruction of Turner Tract detention pond and Gateway park improvements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 13  West Laramie projects incorporated street and storm water drainage infrastructure improvements. A significant effort was placed in the outfall at McCue Wetlands for the majority of storm water runoff for West Laramie. A large detention facility was developed to mitigate groundwater from Fire Station #3 and adjacent streets. There were over 16 streets adjacent to main roadway (Snowy Range) that have been paved and include curb/gutter and sidewalk improvements. A total of $2.13M in MGR grants was obtained to support this capital effort.  In fiscal year 2011 the Recreation Center had 2,995 active recreation center memberships at the end of the fiscal year which includes annual, six month and multiple pass memberships (1,388 individual and household annual memberships, 218 six month memberships, and 1,389 multiple passes). A total of 169,261 individuals used the recreation center facility over the past year, which is an average of 470 visits per day. The annual and six month memberships have increased by 190 from the previous fiscal year and the daily multi-passes have decreased by 225 over the same time period. The Recreation Center is supported by a $2.2 million dollar recreation endowment where interest earned is used to support operations. In FY11, the Recreation Center has a cost recovery from program revenues of 81%.  The City’s new Unified Development Code (UDC) was adopted on March 2, 2010, and became effective on July 1, 2010. The UDC was a complete replacement of the City’s earlier Zoning and Subdivision regulations. A number of minor amendments were adopted in early 2011. Although one year’s time is not long enough to allow a full evaluation of the UDC’s effects, the Community Development Department, Planning Commission, City Council, and stakeholders will continue to monitor the UDC and recommend any necessary amendments.  The City updated the Utilities financial plan for Water and Sewer. This includes debt, fleet, operations and capital to provide a complete financial purview. The 10 year capital plan was updated with current funding sources, such as, grant awards and additional funding paid by the penny tax which is funding over $22.5M of infrastructure projects over the next three years. These new funding streams cut the estimated revenue requirement for FY10 (effective FY11) down from 12% (both water and sewer) to 10.0% Water and 9% sewer. Originally revenue requirements in these funds were planned at a 19% increase. Red Oak rate consultants provided the City with updated “cost of services” rates which were implemented in January 2011. In FY11, the Council is reviewing rates and the updated financial plan for FY12 (January, 2012 implementation date) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 14  The Council hired Bell and Associates to issue a Solid Waste Study. The study is to comply with the state initiative by the Department of Environmental Quality (DEQ) diverting waste stream out of the City landfill and to other sources of Solid Waste. The City’s landfill capacity for Stage 11 and Stage 111 are only approved for use with lined-cells. The study proposed recyclable materials be collected by the City through a new curbside collection program; material handling will occur through a cooperative agreement with Waste Management to transport the recyclables. In preparation of construction of new lined cells, engineers must review the following: o Improve Environmental Protection through Engineered Containment Systems o Improve Assessment of Income Waste Quantities (Scales) o Improved Waste Diversion o Full-scale Composting Facility o Separate Handling of Construction/Demolition Waste o Improved Litter control  The Citizens of Albany County voted in on May 4, 2010 the renewal of the 1% Specific Purpose tax for $46,000,000 of capital projects within the City of Laramie, Albany County and the Town of Rock River. The City portions of projects totaled $22,550,000 with the majority of dollars being allocated to water, sewer, and street infrastructure. These projects will be paid for by the six penny or one percent sales and use tax collected within Albany County. The renewal went into effect in October 2010 as the previous tax did not stop until September 2010. In FY 2011, The City received $1.8M in sales tax collections for 8 months with the average collection of $225,000 which will be used to pay down the government obligation bonds. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 15 Overview of Financial Statements The City’s financial statements are comprised of three components: 1) government-wide financial statements 2) fund financial statements and 3) notes to the financial statements. The new focus of financial statements is based on the City as a whole (government wide financials) and the major individual funds. This allows for a broader comparison and enhanced accountability for the City’s financials. Government-wide financials The government-wide financial statements (see pages 36–38) are designed similar to business or private sector statements in that the reporting of governmental and business-type activities is consolidated into columns which total for the Primary Government. Government-wide statements consist of a statement of net changes and a statement of activities which are prepared to present the financial position and changes in balances for the entire government (except fiduciary funds) on a single measurement and modified accrual basis of accounting. This method measures cash and other financial assets that can be converted to cash. In the Statement of Net Assets and the Statement of Activities, the City services are reported into three kinds of activities: Management Discussion & Analysis (Required Supplementary information) Pages 11-35 Governmental–wide financials Pages 36-38 Fund financial statements Pages 39-43 Notes to the financial statements Pages 51-84 Required supplementary information (other than MD&A) MD&A Basic Financial Statements Other Required Supplementary Information ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 16  Governmental activities – This includes most of the City Services including police, fire, streets, parks & recreation, public works, administrative services and general administration. Most of these services are funded by sales and use taxes, property tax, franchise fees, and state and federal grants.  Business-type services – The City charges a fee to customers to help cover all or most of the cost of services it provides. City services such as water, sewer, and solid waste are reported here. The Statement of Net Assets reports all assets, including capital assets (land, buildings, and equipment) and infrastructure (roads, bridges, etc.) and all liabilities. The statement encourages reporting assets and liabilities in order of liquidity. The difference between assets and liabilities is reported as net assets subdivided into three categories:  Investment in capital assets, net of related debt  Restricted  Unrestricted The Statement of Activities is presented using a net cost format designed to highlight a portion of each functional activity (general government, public safety, etc.) that must be financed from general revenues of the government. The Statement of Activities reports all expenses (including depreciation) associated with a functional activity. Program revenues (charges for services, grants and contributions) are deducted to arrive at the program’s net cost to the government. All changes in net assets are reported when 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 the future fiscal periods (e.g. uncollected taxes or franchise fees and earned but unused compensated absences). The government-wide statements improve the financial reporting by aiding the users of financial statements by assessing the finances of the government as a whole. The reports determine whether the government’s overall financial position has improved or deteriorated. Fund Financial Statements The readers of governmental financial statements will find the fund financial statements are more familiar except the focus is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific purposes or objectives. The City, like other governmental agencies, uses fund accounting to demonstrate compliance with finance-related legal requirements. All of the funds for the City are categorized by either governmental funds, proprietary funds, or fiduciary funds. Major fund types only apply to the Governmental and Enterprise funds. All other non-major funds are aggregated into one column. This year GASB 54 requires a change in fund balance reporting (see disclosure note page 60). ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 17 Governmental Funds Governmental funds are used to account for the same activities reported in the Governmental- wide financial statements. However, unlike the Governmental statements, the government funds focus on current sources, uses of spendable resources, and balances of spendable resources available at year-end. This information is useful in evaluating the City’s short-term financing requirements. Required governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances. Required proprietary fund statements are a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows. To allow users to assess the relationship between fund and government- wide financial statements, financials have been presented in a summary reconciliation to the government-wide financial statements (see pages 40 and 42-43). Each of the fund statements should report separate columns for the general fund and for other major governmental and enterprise funds. Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that fund is particularly important to financial statement users. Non-major funds should be reported in the aggregate in a separate column. Internal service funds should also be reported in the aggregate in a separate column on the proprietary fund statements. The City of Laramie maintains nine governmental funds. These are presented in Major Categories: General, Specific Purpose Tax, Debt Service, Capital Construction and All Non- Major Funds. Individual fund data for each of the non-major funds is provided on a separate financial statement. Proprietary Funds Proprietary funds are used when the City charges for the services it provides either to an outside customer or to other units within the City. The proprietary funds are reported similarly in that all activities are reported in the Statement of Net Assets and Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities reported in the government-wide statements, but provide additional information including cash flows for propriety funds. The City uses enterprise funds for water, sewer, and solid waste. These are all considered major funds. Proprietary fund statements of revenues, expenses, and changes in fund net assets should distinguish between operating and non-operating revenues and expenses. These statements should also report capital contributions, contributions to permanent and term endowments, special and extraordinary items, and transfers separately at the bottom of the statement to arrive at the all-inclusive change in fund net assets. Cash flow statements should be prepared using the direct method. Internal service funds (the other component of proprietary funds) are used to accumulate costs and services for other City programs and services – such as the City’s Health Insurance Fund. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 18 Fiduciary Funds Fiduciary funds should be used to report assets that are held in a trustee or agency capacity for others and cannot be used to support the government’s own programs. Required fiduciary fund statements are a statement of fiduciary net assets and a statement of changes in fiduciary net assets. Since the resources of these funds are not available to support the City’s own programs, they are not reflected in the government-wide financial statements. The accounting used for fiduciary funds is similar to that used for proprietary funds. The City has one fiduciary fund which is the Cemetery Trust Fund. Note Disclosures The notes to the basic financial statements are to provide a statement of significant accounting policies and a full understanding of the data within the financial statements. The notes also provide disclosures for such items as capital assets and long term liabilities. Supplementary Information Besides the financial statements and accompanying notes, the annual report requires supplementary information on pension benefits and budgetary comparisons. In addition, management must now prepare the Management’s Discussion and Analysis (MD&A). Infrastructure Assets The City of Laramie was required to implement the major model of GASB Statement #34. Historically, the City’s largest group of assets (infrastructure – roads, bridges, and traffic signals) have not been reported nor depreciated in governmental financial statements. The new statement requires that these assets be valued and reported within the Governmental column of the Government-Wide Statements. These assets must be depreciated over the estimated useful life unless the government chooses the “modified approach”. The City of Laramie chooses to depreciate over useful life. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 19 GOVERNMENT-WIDE FINANCIAL STATEMENTS Statement of Net Assets The following table reflects the condensed Statement of Net Assets compared to the prior year. Table 1 Statement of Net Assets (In Thousands) Governmental Activities Business -Type Activities Total Primary Government FY11 FY10 FY11 FY10 FY11 FY10 Current and other assets $ 75,519 $ 52,733 $27,590 $ 22,837 $ 103.109 $ 75,890 Capital assets 69,773 67,139 74,648 73,313 144,421 140,132 Total assets 145,292 119,872 102,238 96,150 247,530 216,022 Long-term liabilities 37,900 17,900 15,322 17,544 53,222 35,444 Other liabilities 5,146 4,042 3,585 2,718 8,731 6,760 Total liabilities 43,046 21,942 18,907 20,262 61,953 42,204 Net assets: Investment in capital assets 32,997 50,125 60,172 57,522 93,169 107,647 (net of related debt) Restricted 21,674 26,075 780 780 22,454 26,855 Unrestricted 47,575 21,729 22,379 17,586 69,954 39,316 Total net assets $ 102,246 $ 97,930 $ 83,331 $ 75,888 $ 185,577 $ 173,818 The City’s combined net assets totaled $185.5 million as of June 30, 2011. The governmental activities net assets were $102.2 million and business-type activities net assets were $83.3 million. The two tables present net assets (Table 1) and changes in general revenues (Table 2) which include significant expenses by function of the City’s governmental and business-type activities. A large portion of the City’s net assets are capital assets (e.g. land, building, and equipment) less any debt used to acquire the assets. These assets are used to sustain current services and are not available for future spending. Approximately 12% of the City’s net assets represent resources that are restricted and may not be used. Another $93.1 million or 50% is used for investment in capital assets. A balance of $70.0 million is unrestricted and may be used to meet obligations to creditors or citizens. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 20 Table 2 Changes in Net Assets (In Thousands) Governmental Activities Business-Type Activities Total Primary Government FY11 FY10 FY11 FY10 FY11 FY10 REVENUES Program revenues: Charges for Services $ 4,975 $ 4,853 $ 14,542 $ 12,387 $ 19,517 $ 17,240 Operating grants and contributions 1,221 1,279 - - 1,221 1,279 Capital grants and contributions 3,139 3,804 4,149 5,466 7,288 9,270 General revenues: Property Tax 2,221 2,125 - - 2,221 2,125 Sales, Use and Gas Tax 11,067 13,070 - - 11,067 13,070 Other Taxes 7,105 8,705 - - 7,105 8,705 Investments Income 605 1,173 122 119 727 1,292 Miscellaneous 2,878 2,622 - - 2,878 2,622 Total revenues $ 33,211 $ 37,631 $ 18,813 $ 17,972 $ 52,024 $ 55,603 (Continued) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 21 Table 2 Changes in Net Assets (Continued) Governmental Activities Business - Type Activities Total Primary Government FY11 FY10 FY11 FY10 FY11 FY10 EXPENSES Program Activities Primary Government: Governmental Activities: General Administration $ 474 $ 443 $ - - $ 474 $ 443 Administrative Services 1,657 1,684 - - 1,657 1,684 Judicial and Legal 590 588 - - 590 588 General Government 5,462 6,802 - - 5,462 6,802 Police 6,439 6,885 - - 6,439 6,885 Fire 4,970 5,005 - - 4,970 5,005 Engineering 1,013 1,043 - - 1,013 1,043 Highways & Streets 3,989 3,879 - - 3,989 3,879 Animal Control 382 379 - - 382 379 Mosquito Control 254 288 - - 254 288 Parks & Recreation 3,678 3,631 - - 3,678 3,631 Cemetery 314 278 - - 314 278 Interest Costs 561 331 - - 561 331 Unallocated Depreciation - - - - - - Business-type Activities: Water - - 5,490 5,135 5,490 5,135 Waste Water - - 2,586 2,733 2,586 2,733 Solid Waste - - 2,405 1,835 2,405 1,835 Total expenses $ 29,783 $ 31,236 $ 10,481 $ 9,703 $ 40,264 $ 40,949 Increase in net assets before transfers 3,427 6,395 8,332 8,269 11,759 14,664 Transfers 889 574 (889) (574) - - Change in net assets 4,316 6,969 7,443 7,695 11,759 14,664 Net asset beginning – (Restated) 97,930 90,961 75,888 68,193 173,818 159,152 Net asset ending $ 102,246 $ 97,930 $ 83,331 $ 75,888 $ 185,577 $ 173,816 Governmental activities increased the City’s net assets by approximately $4.3 million. This was primarily the result of continuing to use grant monies and looking at increasing fees within the City Control such as franchise fees on gas. In addition, the City continued cutting spending by 4.7% or $1.5 million. This included not providing cost of living adjustments, merit based increases and some frozen or eliminated program costs. The City renewed the Specific Purpose tax effective October 2010 and bonded $22.5M to spend on restricted infrastructure capital projects. The 2002 Specific Purpose tax is fully collected, and the monies received have been restricted to pay off bond holders according to the bond terms since the bonds were not callable. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 22 The City increased capital assets by $2.6 million. One major project was for improved storm sewer drainage totaling $1.2 million which was partially funded by grant monies. Due to the decline in the economy, sales and use tax in total were down $834,134. Besides state shared revenues, this includes local optional The 2002 Specific Purpose tax was down $1.2M as projects ended and the City is just paying off debt as the new tax was not renewed until October 2010. Another major cut was in severance and over the cap monies which were down by $1.6M. This downturn was offset by drastic cuts in the operating budgets and maintaining grant monies for both program and operating grants. The City received grant monies for capital, such as blocking paving and storm drainage and operating, Safer Grant for Fire personnel and many police grants. The City offset lower revenues by reviewing program budgets, holding personnel costs and changing levels of services. Due to the increased debt from SPT tax currently at $22.3M, the investment in capital assets net of related debt decreased $17.2M which caused an increase in unrestricted fund balance. Business-type activities increased the City’s net assets by $7.4 million. Tiered rates began in January 2010 for water and sewer. The tiers of residential water rates increase based on level of consumption. This transition was used to provide increased program revenue to fund operating and maintenance costs as well as to build capacity for either cash or debt funded infrastructure projects. The long-term financial plan seeks to level operating and capital dollars by using available cash to alleviate peaks in rate adjustments. In addition, the City received $4.1 million in grant funding for water and wastewater projects. The monies received were from the State Land and Investment Board (ARRA funding) and Wyoming Water Development Commission for the Mainlift station, Water line rehab projects and completion of the Raw Water transmission line. Normal Impacts The factors described below can impact the City’s revenues and expenses. Revenues: Economic Condition – A City’s declining, stable, or increasing economic growth and development can have a substantial impact on the collection of sales, property, gas or other tax revenue as well as public spending habits on charges for services including consumption and elective user fees. Changes in Enterprise Rates & Fees – The City Council has authority to increase, decrease or maintain rates. This includes enterprise funds such as water, waste water and solid waste. They can also change user fees such as permits, recreation costs, or police security. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 23 Changes in Grant Funding & Intergovernmental Revenues – Certain intergovernmental revenues may be more predictable and recurring, (e.g. county sharing programs and block grants) whereas many one-time funding sources can significantly change and are less predictable which can distort yearly comparisons. State Impact on Distribution Methods – The State of Wyoming has significant impact based on yearly legislation regarding distribution methods and capping of certain taxes including severance and mineral royalties. Market Rate Impact of Investment Income – The City’s investment portfolio uses treasuries, bonds, Certificates of Deposits and Wyoming pools. These instruments are subject to market condition and fluctuations and can cause income to rise or fall. Expenses: Program Management – Within each functional area of expense, categories within the City’s (e.g. Police, Fire, Public Works, etc.) individual programs may be added or deleted. In addition, the level of program service may rise or fall to meet the changing needs of the community. Personnel Changes – Changes in level of services, community needs or financial condition may cause Council to increase/decrease authorized staffing. Salary Increases – The City may choose to give cost of living, merit, or market adjustment salary increases. This is to attract and retain the City’s best asset, its employees. The City strives to match similar competitive salary ranges in the marketplace. Inflation – Overall inflation appears reasonably modest but the City is a major consumer and some functions may experience unusual commodity-specific increases. Health insurance and worker’s compensation continue to rise within the City and impact overall expenses. THE CITY FUNDS Governmental Funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This year GASB 54 provided new classifications of fund balance. The focus is now on the City’s constraints based primarily to what extent the government is bound and provides specific purposes for which amount can be spent by fund (see disclosure note page 60). The City’s governmental funds (presented on the balance sheets, see page 39) reported a combined fund balance of $66.4 million, which is approximately 46.9% increase in comparison with the prior year. This was mainly due to the $22.5M in fund balance for the 2010 Specific Purpose Tax that was bonded for infrastructure projects, current 2010 penny sales tax collections and 2002 Specific Tax sales tax collected in escrow totaling $7.2M. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 24 Approximately 10.7% or $7.1 million constitutes unassigned fund balance which is available for spending at the City’s discretion. The remaining fund balance of $59.3 million has different levels of restrictions including unspendable $2.4M, restricted $43.2M, committed $3.3M and assigned of $10.4M. Some of the items which are in the remaining fund balance in general government include capital construction projects; recreation center endowment and scholarship programs; and the debt service payment for the Wyoming Territorial Prison. The general fund serves as the main operating fund for the City. Included in the general fund statement is the specific purpose tax fund, the source of which is the additional penny that taxpayers approved to pay for construction of several capital projects that benefit the community. The General fund statement also has the Capital Projects fund with multi-year capital projects that usually have grant or other funding sources. The Debt service fund has a zero coupon bond that is restricted to pay off the Wyoming Territorial prison. The Governmental funds also include non-major funds which are detailed on pages 90 through 93. At fiscal year end, the unassigned fund balance for the general fund was $7.1 million, while the total governmental fund balance for general fund was $18.1 million. The City continues to benefit from revenues received for projects funded through the specific purpose tax. With renewal of the tax, design began for Streets, Water line, Sewer lines and landfill liner projects. Construction of the water, sewer and street projects will begin in the summer months and includes three phases with the worst breakage lines being replaced first. The City had one non-bonded project for Aquifer protection totaling $1,000,000. In fiscal year 2011, The City gave no cost of living raises to general employees, and merit-based step increases were temporarily frozen. The CIP index for the southeast Wyoming economy in 4th quarter 2010 was 3.2% and increased in the second quarter of 2011 to 5.0%. As previously stated, many City departments took 40 hour furloughs or eliminated positions. Six equivalent heads were eliminated in Recreation, Administrative Services, Community Development, City Attorney’s office and Parking Enforcement The Governmental fund balance increased approximately $21.2 million from Fiscal Year 2010 to Fiscal Year 2011. The key factors for the changes are as follows:  Cash & Cash equivalents for Specific Purpose Tax for trust accounts in receipt of the one cent tax totaled at year end $30.4M. The 2002 SPT tax ended collection and new tax 2010 SPT tax began. The City bonded over $22.5M for infrastructure projects. The 2002 SPT tax fully collected all the sales tax and can pay for the bonded debt but is restricted to keep additional collections with the trustee because the bonds are not callable. The funds must be held with trustee until debt service schedule is completed. However, payments were made to reduce the 2002 debt service for a total of $3.4M. This reduced the fund balance by $2.2M. SPT fund balance is restricted for capital projects and debt payments to pay off bonding. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 25  A restricted investment (zero coupon bond) increased amortization totaling $341,400 for the Wyoming Territorial Park service date payment due in 2014.  The Emergency E911 fund had a decrease in fund balance of $34,652 and has restrictions for debt payment of capital leases on dispatch consoles. The remaining fund balance is used to fund capital and equipment for E911 operations.  Many capital projects move forward. The West Laramie road paving and initial drainage improvements were completed. However, many projects are still in initial stages or completed design phase including West Laramie Drainage second phase, greenbelt path, spring creek channel and Basic Beginning Daycare which will begin construction to name a few. The General fund transferred approximately $470,000 to capital construction fund to provide match dollars with grants or other funding sources. The fund balance in capital construction fund increased due to slower progress of projects totaling $157,282.  The Park and Recreation fund uses Recreation Mill dollars collected from 1% mill levy. This fund had a decrease in fund balance by $111,681. This is due to completion of Recreation Mill projects such as Recreation Center playground equipment, Aragon baseball fencing and Undine Park splash pad. The remaining fund balance is restricted for Recreation Mill projects in progress with contributed funding.  The Recreation Center had a slight increase of $60,732 in fund balance. Of the $2.9M in fund balance $2.3M is an nonspendable recreation endowment. Assigned fund balance totals $652,075. This balance has a reserve to assist in meeting minimal operations. The balance has remained steady because the fund had an increase in actual admissions fees of $55,000 over FY10 and keep expenditures under target. The City will continue to lessen transfers to this fund based on good performance cost recovery.  The Economic Development Fund had a decrease in fund balance of $341,766. The City provided economic loans for Basic Beginning daycare center $300,000 and another $100,000 for the Laramie Economic Development Center, LLC for a rail spur project. The remaining balance of $116,518 is nonspendable and is only available for economic or recapture loan agreements.  The General fund had a slight increase in fund balance totaling $400,416. The City policy in fund balance is to have a minimum of three months cash reserves to assist in operation and debt and meet cash flow demands. At the end of the fiscal year, the City received approximately $2.3M less revenue than in FY10. This was mainly due to the state funded cap and decrease in sales tax revenue (approx. $834,000). The City took a proactive approach and planned for revenue reductions in FY10 and took cuts in FY11 budget to offset any decreases in revenue. These steps allowed maintenance of the fund balance necessary to have a stable environment. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 26 Table 3 represents the cost of the City’s largest programs as well as the net cost (total cost less revenues generated by the activities). The net cost represents the financial burden placed on the City’s taxpayers by each of these functions. Table 3 Governmental Activities (In Thousands) Total Cost of Services Net Cost of Services Programs: FY11 FY10 FY11 FY10 Police Department $ 6,439 $ 6,855 $ 4,700 $ 4,892 Fire 4,970 5,006 3,559 3,438 Highways and Streets 3,989 3,879 3,937 3,864 Parks & Recreation 3,678 3,631 1,687 1,837 Administrative Services 1,657 1,684 1,657 1,684 General Government 5,462 6,801 2,600 3,332 Engineering 1,013 1,043 265 352 Other 2,575 2,337 2,021 1,901 Totals $ 29,783 $ 31,236 $ 20,426 $ 21,300 Business-Type Funds Operating revenues for the Business-Type activities were $14.5 million and expenses for the City’s Business-Type activities were $10.5 million. There was an increase in net assets of $7.4 million after non-operating and transfer adjustments. This was due to rate increases and additional grants received for capital projects, such as, Laramie Transmission Line and ARRA (American Recovery and Reinvestment Act) priority water line. Major multi-year capital projects just in design will be paid for out of cash reserves and the financial plan as indicated will use cash to level high peak expenditures in out years. The City’s business funds (presented on the statement of net assets (pages 44-45) reported a combined net asset balance of $83.3 million. The net assets by fund were: water $56.7 million, waste water $24.0 million and solid waste $2.6 million. Unrestricted net assets for the propriety funds were $22.4 million. The unrestricted-by-fund amounts were water $11.5 million, waste water $9.5 million and solid waste $1.4 million. As with the governmental funds, the propriety funds received no cost of living increases or merit based steps. Many challenges continue to face the propriety funds including deteriorating infrastructure, water and sewer line replacements, and landfill reclamation. This year there continues to be a heavy emphasis on capital projects. The City updated the 10-year financial plan, and the Council instituted the rate increases for water and sewer necessary to keep up with heavy capital requirements. These rates were applied to the existing rate billing structure. To offset rate increases, Council recommended many infrastructure projects be funded though the Specific Purpose Tax. This included $8.3M in water line replacement and $6.0M in sewer line ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 27 replacements. Also, the tax will fund $3.4M to assist with Landfill relining required by the Wyoming Department of Environmental Quality. In FY10, Council adopted rate increases affected in January 2011. The breakdown is as follows: 0-3 units $3.10 per unit (increase of $0.32 per unit), next 3 units $3.74 per unit (increase of $0.62 per unit), next 9 units $4.53 per unit (increase of $0.96 per unit), over 15 units $5.57 per unit (increase of $1.41 per unit). The new rates instituted for other classes are $3.10 per unit for multi-family residential (increase of $0.32 per unit), $3.20 per unit for commercial customers (increase of $0.36 per unit), $3.40 per unit for the University of Wyoming locations (increase of $0.48 per unit) and $4.80 per unit for irrigation customers (increase of $1.04 per unit). Other changes in the rate were changes included in the base fee meter charges which are based on meter size. The fees for meters ranged from $19.10 (¾ inch) meter to $826.60 meter) to new fees of $19.40 (¾ inch meter) to $827.80 meter). Once again the Council is reviewing rates in FY11 to be implemented in January 2012.The total revenue requirement based on the financial plan to achieve the financial goals and capital program was originally 19% for water but was drastically reduced to 7.5% because of SPT tax bonding paying for required replacement capital and continuation of grant dollars. This increase was spread across different classes of users based on cost of service allocated to each user class. The total impact of the rate increase impacted each citizen by class and each citizen’s individual water consumption. Efforts toward renewal and enhanced investment of the water systems included capital projects that total $12M. The majority of these projects were paid for through multiple funding sources including Wyoming Water Development Grants, ARRA principal forgiveness, MRG grants in combination with user rates. Projects include the replacement of existing chlorine gas feed systems with onsite chlorine generation systems at City Spring and the Water Treatment Plant. Valves were placed on large transmission pipelines to improve manageability of source water from wells. There were significant water line replacement efforts using ARRA funds and MGR grants in Laramie East side and West Laramie. The funding provided in total for these projects were MGR funding amounted to $1.38M, ARRA $1.98M, and $5M from WWDC grant. The SPT initiative has begun and will provide an additional $8M in waterline improvements over the next three years. Once again Council adopted fee increases in Sewer in FY10 effective January, 2011. The waste water base rates increased from $11.80 per month to $12.60 per month. The residential flow rate increased from $2.22 per unit to $2.87 per unit which is a $0.65 per unit increase. The residential flow rate is $2.87 per 1,000 gallons as determined by a winter sewer low averaging method that varies from user to user based on winter water flow (water consumption) at each location. The water flow from the months of January, February and March are averaged for most residential users and factor into the formula for the winter sewer low at each customer’s location. Commercial sewer flow is directly linked to the customer’s water consumption from month to month. If a commercial user uses ten units (1,000 gallons per unit) of water, the customer is charged for ten units of sewer (1,000 gallons per unit) for that particular billing period. The structure of commercial rates is based on the business type and the type of waste produced by ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 28 business type above residential strength. Commercial accounts have a unique class code based on business type such as restaurants, office buildings and schools to name a few classifications. Waste water projects include replacement of the undersized West Laramie Banner Road outfall project and continued replacement of sewer lines. The SPT initiative will provide $6M for future replacement of sewer lines over the next three years. Solid Waste completed the final phase of rolling out the automation collection system and carts to the citizens of Laramie. The City hired Bell and Associates to complete an operational analysis and financial plan to review complex issues with the Solid Waste department. The Council requested a detailed review of recycling to help with a diversion plan to extend the landfill and implement EPA federal regulations to reline with leachate collection and treatment. As this process was under review, the Council did not recommend any changes in Solid Waste rates. The base fee for collection services held steady at $10.48 per month and Disposal charges were unchanged at $3.20 per month. The rate is assessed per kitchen unit in a residential location. Any location with two kitchen units or less must be assessed a collection and disposal fee in accordance with the Laramie Municipal Code. A gate fee at the Landfill minimum load is $5.00 per load for City residents and $6.00 per load for County residents. After a preliminary review with Bell and Associates, the Council passed and approved in May 2011 a curbside-recycling program that will go into effect in FY 2012. The established fee per unit is $1.93. Commercial locations can choose to have the City of Laramie collect their waste or a private hauler. Commercial dumpster services are charged according to the size of the dumpster and the number of collections requested per week. The City of Laramie provides dumpsters in three varieties of sizes. Commercial dumpster services remain strong in the City of Laramie. Budgetary Highlights The following is a brief review of the budgeting changes from the original budget to the final budget for the general fund (please see budget to actual comparison on pages 87 to 89 and 94 to 101). The difference between the original budget and the final amended budget fund balance was $90,807 for the General Fund. An increase in the budget of $262,542 was offset by line item reductions not taken in Police for (-$78,095) and additional cuts in Animal Control (-$7,760) and a decrease in franchise fees for (-$85,880) in which Council adopted a lower fee increase than planned. Safety, Human Resources, and Parks were awarded grants or given contributions after the FY 2011 budget was adopted. The total awards in the general fund totaled $63,357. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 29 General Fund:  Administrative Services: The Human Resources department hired part time staff and budget was increased (+$2,315) to cover part time wages which was fully reimbursed by the State of Wyoming Program through Department of Work Services.  Other Governmental: A budget decrease of (-$54,876) occurred in general accounts to offset the decreased revenue from lowering the proposed increase with the City’s gas franchise agreement. An additional amount was taken out of Street and Highways for $31,004) The Safety division received a grant from WARM (Wyoming Association of Risk Management for (+$10,000) to purchase safety training supplies (+$1,500) and other employee services provided hearing tests (+$8,500). The Council adopted a resolution to allocate the City’s donation to the Lincoln Community Center Rehabilitation Project pledging (+$50,050) to assist with road materials, water line materials, and permit and review fees.  Fire: The Fire department allocated (+$14,200) to reflect the annual increase of gas and electric costs of utilities for building operations in the new station. These modifications came as a result of further analysis upon completion of the budget. An additional (+$3,000) was increased to reflect a vehicle allowance contracted for the fire department in lieu of replacing a command vehicle.  Police: Line item reductions for the Police and Animal Control were inadvertently left out of the adopted budget. The Police took additional cuts in line items for (-$78,095)  Engineering: The engineering department had an increase of $21,335 to expand the scope of the North Laramie Drainage study to include all of LaBonte Park and the outfall from LaBonte Lake that discharges south and west to Harney street.  Health and Welfare: Line item reductions for the Police and Animal Control were inadvertently left out of adopted budget. Animal Control took additional cuts in line items for (-$7,760)  Highways and Streets: As mentioned above under section “Other Governmental”, an additional amount was taken out of Street and Highways for (-$31,004) to offset franchise fee reductions.  Culture and Recreation: Parks requested additional budget (+$12,600) to cover the costs of installation of the Central Irrigation System project. The Albany County School District funded (+$3,500) for the replacement of the LaBonte park basketball court goals. An additional (+$36,600) is required for completing the relocation of the 1903 steam engine for the Depot Park train project in Railroad Heritage Park. This project is offset by grant, contribution and scrap metal reimbursements. The Albany County School District funded the ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 30 Ice Event Center (+$5,000) for storage racks for equipment and racks for coin operated lockers. The Dale Wade family memorial and Laramie Garden Club donated (+$5,942) to the Ice Event Center for a lighted building sign, landscape items and a memorial bench. The Cemetery requires additional funding for the construction of a fence and landscaping around the new city communications tower located at the Cemetery (+$98,000). Some of the significant variances were caused by delays in projects by departments and employee turnover. Significant variances between budget and actual activity are summarized as follows:  The Highways and Streets division under Public Works delayed overlay street work. Therefore, their budget was unexpended by over $1.2M. Part of this budget will be used to match Specific Purpose tax waterline dollars for street repair and upgrades.  The Police department was under expended by $477,639. The majority of accounts were under budget including salary and benefit savings from turnover and new hires and contracted services and supplies.  The Other General Government budget was under expended by $489,118. There were two projects uncompleted in this budget including continuing program “safe routes to school” for $94,000 and a study for a bike trail and open space plan for $100,000. The City delayed a Wyoming Association of Municipality available lease totally for $100,000 which can be used for energy efficiencies. The lease payment savings were approximately $24,000. Fuel payment equipment for fleet was under budget by $20,000. The rest of the under expenditures were due to several other governmental departments experiencing turnover including community services, planning and fleet with approximate savings of $251,000.  Culture and Recreation - the Parks and Cemetery Divisions were under expended due to project delays or under runs by $480,885. The Parks division had delays on Gateway park detention pond $65,000, Garfield footbridge landing rehab $15,000, Playground upgrades and shelter repairs $110,000, Tree spade and mower equipment $58,000, LaBonte Shade Structure $16,000, Washington Park lighting $50,000 and Fort Sanders children’s museum $29,300. The Cemetery division had delayed projects for 15th street landscaping around the Cemetery $40,000 and upgrades for Cemetery house $75,000. The remainder of the savings is miscellaneous expenses in supplies and contractual less than planned at $23,721.  The Engineering division was under expended by $176,765. This was mainly caused by the shared concrete program in which the program was under spent. This program is still being reviewed and is to assist citizens in sharing the price (50/50) in replacement for sidewalks. There were savings in this program because concrete was being paid for with street reconstruction using Specific Purpose Tax dollars.  The other remaining governmental funds (Administrative Services, Executive, Health & Welfare, etc) consist of many divisions and were unexpended by $427,622. The main ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 31 savings were caused by salary savings from turnover and not hiring in a timely manner based on frozen positions. Also, projects and other operations costs were delayed or not spent. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of the year, the City had $144.4 (net of accumulated depreciation) million invested in a variety of capital assets, as reflected in the following schedule. This represents a net increase (additions, deductions, and depreciation) of $4.3 million or 3.1% from the end of last year. Table 4 Capital Assets (Net of Depreciation, In Thousands) Governmental Business-Type Activities Activities Total FY11 FY10 FY11 FY10 FY11 FY10 Land $ 1,773 $ 1,773 $ 3,494 $ 3,493 $ 5,267 $ 5,266 Water Rights - - 88 88 88 88 Building 26,645 27,435 15,671 16,328 42,316 43,763 Improvements other than buildings 3,650 3,371 49,011 41,718 52,661 45,089 Furniture & Equipment 4,036 4,423 4,529 3,896 8,565 8,319 Infrastructure 30,830 28,840 1,384 1,421 32,214 30,261 Construction in Progress 2,839 1,297 471 6,049 3,310 7,346 Total $ 69,773 $ 67,139 $ 74,648 $ 72,993 $ 144,421 $ 140,132 This year major additions include projects still under (CIP) Construction in Progress (in thousands) Basic Beginning Daycare Center $1,513 Specific Purpose Tax infrastructure projects $ 938 Chlorine Generation – Water Treatment Plant $ 301 Banner Road Sewer Outfall $ 115 Greenbelt Path – Wister Drive $ 112 City Hall Drainage $ 98 More detailed information about the City’s capital assets is presented in Note 3.D. of the financial statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 32 Debt Outstanding At year-end the City had $51.3 million in bonds, notes, and lease obligations compared to $32.5 million last year. This is a 58% increase – as shown in Table 5. In the Governmental funds $3.4 million in debt pertained to capital projects, which were funded with the additional penny specific purpose tax in 2001 and collections ended. An additional $22.3 million was added this year for infrastructure projects funded with general obligation bonds backed by the continuing Specific Purpose tax penny. Outstanding Debt at Year End (In Millions) Governmental Business-Type Activities Activities Total FY11 FY10 FY11 FY10 FY11 FY10 Revenue bonds and G.O. bonds (backed by Specific purpose tax, fee revenues and zero coupon) $ 22.3 $ - $ 3.9 $ 4.2 $ 26.2 $ 4.2 Capital lease Obligations 4.5 6.9 .1 .2 4.6 7.1 Contractual Obligations 10.0 10.1 10.5 11.1 20.5 21.2 Total $ 36.8 $ 17.0 $ 14.5 $ 15.5 $ 51.3 $ 32.5 In the Governmental funds the City incurred two additional equipment leases. The first lease was for a central irrigation control system for $260,875. The lease for this equipment is five years with a 3.5% interest rate. The City received an additional ten year lease for $100,000 zero percent interest from the Wyoming Association of Municipalities to use for energy efficient projects. Other major leases include 27 leased police patrol cars and the Laramie Animal Shelter. The police cars lease has a current year-end lease obligation of $182,102. The semi-annual lease payment is $93,819, including interest rate at 4.04%, to March 2012. The Laramie Animal Shelter has a current year-end lease obligation of $108,054. The semi-annual lease payment ranges from $56,079 to $56,854, including an interest rate at 5.15% to June 2012. The debt from 2001 specific purpose tax lease purchases and issuance for capital projects was reduced by payments totaling $2.2 million in governmental funds by the one cent collections. These leases included bonded projects for City Hall, Recreation Center, Ice Rink and East Side Tank. Total governmental activities capital lease debt decreased by approximately $2.5 million. The City renewed the specific purpose tax effective October 2010. The Citizens voted to fund infrastructure projects with general obligation bonds for $22,550,000. The City received a AA+ rating from Standards and Poor. The Solid Waste department is relining the landfill and building scales for $3,450,000. The Street projects total $4,750,000. The City bonded sewer line replacement totals $6,000,000 and water line replacement $8,350,000. Water line replacement is not subject to general obligation debt limits. Sewer line replacement is subject to double your limit. Therefore, the general obligation debt limits for Solid Waste and Street were below project general obligation debt ceiling (see page 129). The bonds were put out to public bid and ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 33 the winning bid was from Robert W. Baird & Co., Inc. which net interest rate came to 2.32% which included a premium of $405,157. The debt is both backed by a one percent sales tax penny and general obligation debt within the governmental funds with payback in ten years. The first payment was made on June 1, 2011 for $305,839 of which $250,000 was principal reducing the debt down to $22,300,000. The business-type funds include several water and waste water treatment plant loans from Wyoming Water Development Commission (WWDC) or Wyoming State Land and Investment Board which totals at year-end an obligation of $10.5 million. The City of Laramie refinanced using Water refunding bonds, the Laramie North project, to reduce the interest rate from 7.25% down to 2.90% to 4.65%. The 2008 revenue bond has a remaining balance of $1.8 million. The current rating by Standard and Poor’s for water refunding bonds is The City has another 2001 revenue bond with a balance of $2.0 million. State Land Investment Board provided grant/loan funding for the drinking water project. The loan is now established with a 2.5% interest rate with annual installments of $116,203 to $150,256 and the remaining balance is $1,189,655 WWDC is currently funding by grant/loan a Laramie Transmission pipeline. The current loan balance for this project is $1,814,049 with a 4.0% interest rate over 30 years. This additional money was needed to complete the project. Until the project is complete, payments do not have to be made to WWDC. This loan is within the business-type funds and will be secured against Municipal water revenues. State Land and Investment Board financed several sewer loans including the main lift financed in 2008 which is a 20 year term at 2.5% rate, with a remaining balance of $697,526. The other two loans are also 15 and 19 year terms at 2.5% rate for Lagoon (the remaining balance is $545,920) and Clean water (remaining balance is $5,206,768). The Solid Waste department has a landfill dozer and ripper with a balance of $133,082. This lease is a three year term ending in December 2012 with an interest rate of 4.15%. More detailed information about the City’s long-term debt is presented in Note 3.G beginning on page 70 of the notes to basic financial statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 34 ECONOMIC FACTORS The State of Wyoming, by constitution, does not have a state personal income tax; therefore, it operates primarily using sales, gasoline, severance and mineral royalty taxes. The City primarily relies on sales tax and a limited array of permitted other taxes (property, gasoline, severance, and cigarette) and fees (franchise, business licenses) for other governmental services. There are a limited number of recurring and non-recurring grants from both the state and federal governments. For Business-Type services and certain governmental activities (permits, utilities, mosquito control, recreation programs, etc.) the user (of services) pays a related fee (or charge) associated with the activity. After a significant recession, the State of Wyoming’s recovery continues to be faster than the U.S. average, thanks to the ongoing rebound of the energy industry in fiscal year 2011. According to a state economic report, the second quarter of 2011 showed continued economic growth. The State’s unemployment rate dropped to 6.0 percent in the second quarter, while it climbed to 9.1 percent in the U.S. for the same period. Most industries in Wyoming showed job growth. Wyoming’s mining industry showed the most accelerated increase, with an 11.4% growth rate between the second quarters of 2010 and 2011. Wyoming’s total personal income grew 6.3 percent in the second quarter of 2011 from the previous year. U.S. personal income increased 5.4 percent from the second quarter of 2010. While the U.S. housing market continued to deteriorate, the housing market in Wyoming improved. The annual home price decline of 1.3% was the smallest the state has seen in over two years. Wyoming’s housing market continues to be one of the best in the nation, both in terms of sales and prices. The southeast region of Wyoming’s (where Laramie is located) consumer price index for 2011 was 5.0 percent which, targeting areas were transportation and food, was above state inflation rate of 4.5 percent and above the national CPI index rate of 3.6 percent. The Wyoming Comparative Cost of Living Index for 2011 put Laramie at a 100 percent indices. This places Laramie (within Albany County) at average for comparative cost of living within the state. In the 2011 fiscal year, the State legislature provided additional funding of $3.8 million to Laramie, which was a decrease of $1.5 million from the 2010 level. These monies from the State continue to fund capital projects and maintain level of services but do not assist with long-term funding issues. Sales tax for the state declined dramatically in fiscal year 2010, but appears to be on the rebound. Sales tax revenue has seen an 8.6% increase in quarter two of 2011 compared to the second quarter of 2010, which was a slower growth rate than the previous quarter. Albany County experienced a 1.5% decrease in sales tax collections during the previous year, but revenues have been near consistent relative to mineral-rich counties in other parts of the state that experience much greater swings. While the City does not see large fluctuations in revenue, it has one of the lowest per capital revenue collection rates in the state. The City prepared for decreased revenue ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANAYLSIS JUNE 30, 2011 35 during the past few years through proactive budgeting and currently has a stable financial position because of these measures. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 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 of Laramie for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2010. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Statement whose contents conform to program standards. Such Comprehensive Annual Financial Reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Laramie has received the Certificate of Achievement for the last 34 consecutive years (fiscal years 1977-2010). FINANCIAL CONTACT The City’s financial reports are designed to provide citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability. If you have questions about the financial reports or statements and need additional financial information, contact the City’s Chief Financial Officer at City Hall, PO Box C, Laramie, Wyoming 82073. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 36 STATEMENT OF NET ASSETS June 30, 2011 Governmental Business-Type Activities Activities Total ASSETS Cash 17,259,793 $ 21,095,249 $ 38,355,042 $ Investments 9,413,751 3,561,211 12,974,962 Prepaid - - - Receivables: Accounts, customers 348,719 1,126,536 1,475,255 Notes 800,000 - 800,000 Accrued interest 35,193 11,584 46,777 Operating 2,663,326 1,472,105 4,135,431 Restricted assets Cash and cash equivalents 20,904,365 20,904,365 Investments 24,093,797 323,459 24,417,256 Capital assets Land 1,773,352 3,493,428 5,266,780 Water rights - 87,685 87,685 Construction in progress 2,838,525 471,374 3,309,899 Buildings 34,280,917 31,120,605 65,401,522 Improvements 5,052,997 72,901,565 77,954,562 Infrastructure 55,511,891 1,476,603 56,988,494 Furniture and equipment 11,610,986 11,133,469 22,744,455 Accumulated depreciation (41,295,517) (46,037,217) (87,332,734) Total Assets 145,292,095 $ 102,237,656 $ 247,529,751 $ LIABILITIES Accounts payable 2,188,301 $ 983,984 $ 3,172,285 $ Accrued interest payable 159,827 300,925 460,752 Unearned revenue 2,123,280 643,688 2,766,968 Benefit claims incurred but not reported 310,196 - 310,196 Noncurrent liabilities Due within one year 4,679,772 1,632,636 6,312,408 Due in more than one year 33,584,667 15,345,404 48,930,071 Total Liabilities 43,046,043 18,906,637 61,952,680 NET ASSETS Invested in capital assets (net of related debt) 32,997,484 60,172,117 93,169,601 Restricted for: Recreation center endowment 2,235,174 - 2,235,174 Recreation center scholarships 45,402 - 45,402 Capital projects 35,944,093 779,744 36,723,837 Debt service 9,646,500 - 9,646,500 Unrestricted 21,377,399 22,379,158 43,756,557 Total Net Assets 102,246,052 $ 83,331,019 $ 185,577,071 $ Primary Government See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 37 STATEMENT OF ACTIVITIES For the Year Ended June 30, 2011 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Function/Program Activities Primary Government Governmental activities: Executive- City Manager 474,161 $ - $ - $ - $ Administrative services 1,656,587 - - - Judicial 297,656 3,795 - - Legal 292,007 - - - General government 5,462,306 125,682 8,424 2,728,074 Police 6,438,464 1,157,125 623,043 - Fire 4,969,733 1,071,644 364,732 73,432 Engineering 1,013,440 748,689 - - Highways and streets 3,988,560 - - 51,992 Animal control 382,283 43,863 - - Mosquito control 254,118 298,795 545 - Parks 1,138,147 49,463 1,840 35,600 Recreation 2,539,949 1,432,498 222,188 250,000 Cemetery 314,339 43,540 - - Interest on long-term debt 561,621 - - - Total governmental activities 29,783,371 4,975,094 1,220,772 3,139,098 Business-type activities: Water 5,489,684 7,558,798 - 4,112,303 Waste water 2,586,630 4,769,968 - 37,103 Solid waste 2,405,080 2,213,178 - - Total business-type activities 10,481,394 14,541,944 - 4,149,406 Total Primary Government 40,264,765 $ 19,517,038 $ 1,220,772 $ 7,288,504 $ Component units: Downtown Development Authority - $ - $ - $ - $ Total component units - $ - $ - $ - $ General revenues: Taxes: Property taxes levied for general purposes Sales and use taxes Gas and fuel taxes Mineral and severance taxes Franchise taxes Investment earnings Miscellaneous income Transfers: Subsidy transfers Total general revenues and transfers Change in Net Assets Net assets- Beginning Net assets- Ending Program Revenues See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 38 Governmental Business-type Activities Activities Total (474,161) $ - $ (474,161) $ (1,656,587) - (1,656,587) (293,861) - (293,861) (292,007) - (292,007) (2,600,126) - (2,600,126) (4,658,296) - (4,658,296) (3,459,925) - (3,459,925) (264,751) - (264,751) (3,936,568) - (3,936,568) (338,420) - (338,420) 45,222 - 45,222 (1,051,244) - (1,051,244) (635,263) - (635,263) (270,799) - (270,799) (561,621) - (561,621) (20,448,407) - (20,448,407) - 6,181,417 6,181,417 - 2,220,441 2,220,441 - (191,902) (191,902) - 8,209,956 8,209,956 (20,448,407) $ 8,209,956 $ (12,238,451) $ - $ - $ - $ - - - 2,220,558 - 2,220,558 10,498,815 - 10,498,815 568,385 - 568,385 5,641,783 - 5,641,783 1,462,641 - 1,462,641 604,881 121,694 726,575 2,878,225 - 2,878,225 889,073 (889,073) - 24,764,361 (767,379) 23,996,982 4,315,954 7,442,577 11,758,531 97,930,098 75,888,442 173,818,540 102,246,052 $ 83,331,019 $ 185,577,071 $ Primary Government Net (Expense) Revenue and Changes in Net Assets ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 39 BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2011 Wyoming Specific Territorial Non-Major Total Purpose Prison Capital Governmental Governmental General Tax Debt Service Construction Funds Funds ASSETS Cash 13,529,595 $ - $ - $ 2,681,695 $ 1,780,417 $ 17,991,707 $ Investments 4,743,832 - - 1,844,024 422,416 7,010,272 Prepaid items - - - - - Receivables: Accounts, customers 22,888 - - - - 22,888 Notes - - - - 400,000 400,000 Accrued interest 16,507 2,407 - - 2,547 21,461 Operating 2,579,014 274,830 - 23,319 53,043 2,930,206 Restricted assets Cash and cash equivalents 174,228 17,976,800 - - 18,151,028 Investments - 12,459,874 9,646,500 - 2,280,576 24,386,950 Total Assets 21,066,064 $ 30,713,911 $ 9,646,500 $ 4,549,038 $ 4,938,999 $ 70,914,512 $ LIABILITIES Accounts payable 1,250,965 $ 424,531 $ - $ 406,259 $ 47,083 $ 2,128,838 $ Unearned revenue 1,378,733 - - 161,950 582,597 2,123,280 Accrued vacation and - compensatory time 286,940 - - - 9,905 296,845 Total Liabilities 2,916,638 424,531 - 568,209 639,585 4,548,963 FUND BALANCES Nonspendable - $ - $ - $ - $ 2,351,692 $ 2,351,692 $ Restricted 1,566,366 30,289,380 9,646,500 1,356,225 383,233 43,241,704 Committed 762,344 - - 2,624,604 - 3,386,948 Assigned 8,738,752 - - - 1,564,489 10,303,241 Unassigned 7,081,964 - - - - 7,081,964 Total Fund Balances 18,149,426 30,289,380 9,646,500 3,980,829 4,299,414 66,365,549 Total Liabilities and Fund Balances 21,066,064 $ 30,713,911 $ 9,646,500 $ 4,549,038 $ 4,938,999 $ 70,914,512 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 40 RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS – GOVERNMENTAL FUNDS June 30, 2011 Fund balances- total governmental funds 66,365,549 $ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Governmental capital assets 111,068,668 $ Less accumulated depreciation (41,295,517) 69,773,151 Long-term receivables applicable to governmental activities and not due and collectible in the current period and therefore are not reported in fund balance in the governmental funds. 400,000 Long-term liabilities are not due and payable on the current period and therefore are not reported in the governmental funds. Governmental notes payable (10,038,508) Governmental leases payable (27,141,304) Compensated absences (787,780) Accrued interest on long-term debt (159,827) (38,127,419) The internal service fund is used by management to charge the cost of certain activities to individual funds. The assets and liabilities of internal service fund are included in governmental activities in the statement of net assets. 3,834,771 Net assets of governmental activities 102,246,052 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 41 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS For the Year Ended June 30, 2011 Wyoming Specific Territorial Non-Major Total Purpose Prison Capital Governmental Governmental General Tax Debt Service Construction Funds Funds REVENUES: Taxes and special assessments 3,560,439 $ 1,839,988 $ - $ - $ 53,760 $ 5,454,187 $ Licenses and permits 123,415 - - - - 123,415 Intergovernmental 17,021,229 - - 2,577,566 760,696 20,359,491 Charges for services 1,632,541 - - - 1,107,747 2,740,288 Fines and forfeitures 809,983 - - - - 809,983 Investment income 115,541 26,688 341,400 12,644 26,944 523,217 Miscellaneous 448,810 - - 238,101 66,914 753,825 Total Revenues 23,711,958 1,866,676 341,400 2,828,311 2,016,061 30,764,406 EXPENDITURES: Current operating: General government 5,969,255 - - 100,000 6,069,255 Public safety 11,915,939 - - - 152,377 12,068,316 Health and welfare 654,926 - - - - 654,926 Highways and streets 2,969,791 - - - - 2,969,791 Culture and recreation 1,905,123 - - - 1,458,936 3,364,059 Capital outlay - 1,002,219 - 3,441,029 406,560 4,849,808 Debt service: Principal retirement 456,208 2,443,061 - - 155,026 3,054,295 Interest 32,248 689,468 - - 20,146 741,862 Total Expenditures 23,903,490 4,134,748 - 3,441,029 2,293,045 33,772,312 Excess (deficiency) of revenues over (under) expenditures (191,532) (2,268,072) 341,400 (612,718) (276,984) (3,007,906) OTHER FINANCING SOURCES AND (USES): Proceeds from debt 360,875 22,955,157 - - 23,316,032 Transfers in 889,073 - - 770,000 150,000 1,809,073 Transfers out (658,000) - - - (300,000) (958,000) Total Other Financing Sources and (uses) 591,948 22,955,157 - 770,000 (150,000) 24,167,105 Net Change in Fund Balance 400,416 20,687,085 341,400 157,282 (426,984) 21,159,199 Fund Balances- Beginning 17,749,010 9,602,295 9,305,100 3,823,547 4,726,398 45,206,350 Fund Balances- Ending 18,149,426 $ 30,289,380 $ 9,646,500 $ 3,980,829 $ 4,299,414 $ 66,365,549 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 42 RECONCILIATION OF THE STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES – GOVERNMENTAL FUNDS For the Year Ended June 30, 2011 Net change in fund balances- total governmental funds 21,159,199 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives. Expenditures for capital assets 6,629,482 $ Less current year depreciation (3,944,072) 2,685,410 Capital lease proceeds provide current resources to governmental funds, but issuing debt increases long-term debt liabilities in the statement of net assets. Repayment of loan principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This is the amount by which proceeds exceed repayments. The construction period interest expense for construction projects in progress is an expenditure in the governmental funds but the interest is capitalized as construction in progress in the statement of net assets. Long-term debt principal payments 3,109,931 Premium amortization on long term debt 40,516 Proceeds from debt (23,316,032) (20,165,585) Some expenses reported in the statement of activities do not require current financial resources and therefore are not reported as expenditures in governmental funds. Change in accrued interest payable (1,908) Change in long-term compensated absences (205,443) (207,351) Transfer of asset constructed in the governmental fund then transferred to the busines-type activity fund. The construction costs are expenditures in the fund basis financial statements and capitalized in the government-wide financial statements. (36,121) (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 43 Long term notes receivable were established in the current period. In the fund basis statements, the disbursements that create the notes receivable are recognized as expenditures. The issuance of notes receivable increases assets in the Statement of Net Assets. Only the current portion of notes receivable is recognized on the Governmental Funds Balance Sheet and the revenue portion is deferred. 400,000 Gains and losses on fixed asset disposals are not recorded in fund basis statements. They are reported in the Government wide statements on the accrual basis, with the recognition of gain or loss and the related decrease to the asset account. 8,754 Internal service fund is used by management to charge the cost of certain activities to individual funds. The net revenue of the internal service fund is included in governmental activities in the statement of net assets. 471,648 Change in net assets of governmental activities 4,315,954 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 44 STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2011 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund ASSETS Current Assets Cash 10,737,006 $ 7,299,943 $ 3,058,300 $ 21,095,249 $ 2,021,423 $ Investments 412,093 2,358,490 790,628 3,561,211 2,110,323 Receivables: Accounts, customers 533,097 386,370 207,069 1,126,536 - Accrued interest 1,204 7,691 2,689 11,584 13,733 Operating 1,472,105 - - 1,472,105 58,950 Total current assets 13,155,505 10,052,494 4,058,686 27,266,685 4,204,429 Noncurrent Assets Restricted investments 323,460 - - 323,460 - Capital assets Land 3,121,646 159,812 211,970 3,493,428 - Water rights 87,685 - - 87,685 - Construction in progress 316,290 155,084 - 471,374 - Buildings 13,615,186 17,447,019 58,400 31,120,605 - Improvements 61,057,713 11,843,852 - 72,901,565 - Furniture and equipment 6,447,456 1,787,065 2,915,121 11,149,642 - Infrastructure - 1,476,603 - 1,476,603 - Accumulated depreciation (32,122,916) (12,146,372) (1,767,929) (46,037,217) - Total noncurrent assets 52,846,520 20,723,063 1,417,562 74,987,145 - Total Assets 66,002,025 $ 30,775,557 $ 5,476,248 $ 102,253,830 $ 4,204,429 $ LIABILITIES Current Liabilities Accounts payable 534,582 $ 95,633 $ 353,769 $ 983,984 $ 59,462 $ Accrued interest payable 166,245 134,226 455 300,926 - Compensated absences 108,935 42,518 58,415 209,868 - Unearned income 643,688 - - 643,688 - Benefit claims incurred but not reported - - - - 310,196 Revenue bonds- current 400,000 - - 400,000 - Notes payable- current 193,444 765,395 87,807 1,046,646 - Total current liabilities 2,046,894 1,037,772 500,446 3,585,112 369,658 Business-Type Activities- Enterprise Funds (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 45 STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2011 (Continued) Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund Noncurrent Liabilities Revenue bonds payable 4,225,000 - - 4,225,000 - Landfill closure costs - - 2,292,777 2,292,777 - Notes payable 3,073,656 5,684,818 45,274 8,803,748 - Total noncurrent liabilities 7,298,656 5,684,818 2,338,051 15,321,525 - Total Liabilities 9,345,550 6,722,590 2,838,497 18,906,637 369,658 NET ASSETS Invested in capital assets (net of related debt) 44,630,960 14,272,850 1,284,481 60,188,291 - Restricted for capital projects 469,420 310,324 - 779,744 - Unrestricted 11,556,095 9,469,793 1,353,270 22,379,158 3,834,771 Total Net Assets 56,656,475 $ 24,052,967 $ 2,637,751 $ 83,347,193 $ 3,834,771 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 46 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2011 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund OPERATING REVENUES: Charges for services 7,109,650 $ 4,433,461 $ 2,207,095 $ 13,750,206 $ 2,460,037 $ Other income 96,146 4,288 6,083 106,517 - Total operating revenues 7,205,796 4,437,749 2,213,178 13,856,723 2,460,037 OPERATING EXPENSES Personal services 1,246,394 809,153 1,034,961 3,090,508 - Contractual services 1,089,229 527,861 341,449 1,958,539 - Materials and supplies 889,991 188,089 252,106 1,330,186 - Landfill closure costs - - 382,130 382,130 - Depreciation 1,991,881 868,205 386,567 3,246,653 - Benefit payments - - - - 2,067,536 Total operating expenses 5,217,495 2,393,308 2,397,213 10,008,016 2,067,536 Operating income (loss) 1,988,301 2,044,441 (184,035) 3,848,707 392,501 NONOPERATING REVENUES (EXPENSES): Investment income (loss) 39,639 64,642 17,413 121,694 41,147 Plant investment fees 353,002 332,219 - 685,221 - Interest expense (272,189) (177,149) (7,867) (457,205) - Total nonoperating revenue (expenses) 120,452 219,712 9,546 349,710 41,147 Income (loss) before transfers and capital contributions 2,108,753 2,264,153 (174,489) 4,198,417 433,648 TRANSFERS AND CONTRIBUTIONS Capital Contributions: Capital grants 4,112,303 37,103 - 4,149,406 - Transfers: Transfers in - - - - 38,000 Transfers (out) (369,285) (404,137) (115,651) (889,073) - 3,743,018 (367,034) (115,651) 3,260,333 38,000 Change in net assets 5,851,771 1,897,119 (290,140) 7,458,750 471,648 Net assets at beginning of year 50,804,704 22,155,848 2,927,891 75,888,443 3,363,123 Net assets at end of year 56,656,475 $ 24,052,967 $ 2,637,751 $ 83,347,193 $ 3,834,771 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 47 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2011 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: CASH FLOWS FROM OPERATIONS: Receipts from customers 7,273,047 $ 4,396,997 $ 2,216,075 $ 13,886,119 $ 2,420,913 $ Other operating cash receipts 96,146 4,288 6,083 106,517 - Payments to suppliers (2,128,696) (915,847) (427,183) (3,471,726) (2,048,599) Payments to employees (1,225,594) (809,153) (1,019,690) (3,054,437) - Net cash from operating activities 4,014,903 2,676,285 775,285 7,466,473 372,314 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in - - - - 38,000 Transfers (out) (369,285) (404,137) (115,651) (889,073) - Net cash from noncapital financing activities (369,285) (404,137) (115,651) (889,073) 38,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (5,327,877) (51,993) (355,981) (5,735,851) - Interest paid on long-term debt (583,613) (446,936) (9,063) (1,039,612) - Principal payments on long-term debt (558,690) (748,060) (84,273) (1,391,023) - Plant investment fees 353,002 332,219 - 685,221 - Grant revenue 4,112,303 37,103 - 4,149,406 - Proceeds from long-term debt 758,925 131,000 - 889,925 - Net cash from capital and related financing activities (1,245,950) (746,667) (449,317) (2,441,934) - CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (13,000) (1,468,426) (344,938) (1,826,364) (1,463,790) Proceeds from sale of investments 323,000 1,518,153 462,377 2,303,530 1,393,871 Interest earned on investments 32,662 38,083 8,459 79,204 21,971 Net cash from investing activities 342,662 87,810 125,898 556,370 (47,948) Business-Type Activities- Enterprise Funds (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 48 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2011 (Continued) Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund Net change in cash and cash equivalents 2,742,330 1,613,291 336,215 4,691,836 362,366 Cash, beginning 7,994,676 5,686,652 2,722,084 16,403,412 1,659,057 Cash, ending 10,737,006 $ 7,299,943 $ 3,058,299 $ 21,095,248 $ 2,021,423 $ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES: Income (loss) from operations 1,988,301 $ 2,044,441 $ (184,035) $ 3,848,707 $ 392,501 $ Adjustments to reconcile income (loss) from operations to net cash from operating activities Depreciation 1,991,881 868,205 386,567 3,246,653 - (Increase) decrease in accounts receivable 161,307 (47,127) 8,980 123,160 (39,124) Increase (decrease) in accounts payable (793,164) (183,724) 166,373 (810,515) 67,786 (Decrease) in compensated absences payable 20,800 10,553 15,271 46,624 - Increase in unearned income 2,090 - - 2,090 - Increase in landfill closure costs - - 382,130 382,130 - Increase in benefit claims incurred but not reported payable - - - - (48,849) Net cash from operating activities 3,371,215 $ 2,692,348 $ 775,286 $ 6,838,849 $ 372,314 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 49 STATEMENT OF FIDUCIARY NET ASSETS June 30, 2011 Cemetery Trust Fund ASSETS Cash 25,805 $ Interest receivable 5,307 Investments 590,486 Total Assets 621,598 $ LIABILITIES Accounts payable - $ Total Liabilities - NET ASSETS Restricted for cemetery perpetual care 621,598 Total Net Assets 621,598 621,598 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 50 STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended June 30, 2011 Cemetery Trust Fund ADDITIONS: Revenue Cemetery lot sales 10,490 $ Investment income 9,721 Total Additions 20,211 DEDUCTIONS: Operating expended 19,310 Total Deductions 19,310 Net increase 901 Net assets- Beginning of Year 620,697 Net assets- End of Year 621,598 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 51 NOTES TO BASIC FINANCIAL STATEMENTS INDEX NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Financial Reporting Entity B. Basis of Presentation C. Measurement Focus and Basis of Accounting D. Assets, Liabilities, and Equity E. Revenues, Expenditures, and Expenses F. Budgetary Data NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Fund Accounting Requirements B. Compliance with Finance Related and Legal Contractual Provisions C. Excess of Expenditures over Appropriation in Individual Funds NOTE 3. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS A. Cash and Investments B. Restricted Assets C. Accounts Receivable D. Capital Assets E. Easements F. Accounts Payable G. Long-term Debt H. Landfill Closure and Postclosure Costs I. Interfund Transactions and Balances J. Fund Equity NOTE 4. OTHER NOTES A. Employee Pension Plans B. Risk Management – Claims and Judgments C. Commitments and Contingencies ---PAGE BREAK--- CITY OF LARAMIE, WYOMING NOTES TO BASIC FINANCIAL STATEMENTS 52 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City complies with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. In the government- wide financial statements and the fund financial statements for the proprietary funds, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. For enterprise funds, GASB Statement Nos. 20 and 34 provide the City the option of electing to apply FASB pronouncements issued after November 30, 1989. The City has elected not to apply those pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. The City has implemented the financial reporting requirements of GASB Statement Nos. 33 and 34. 1.A. FINANCIAL REPORTING ENTITY The City of Laramie is a Wyoming municipality governed by a nine-member City Council comprised of the Mayor (elected at large) and eight representatives from the ward system. The City’s financial reporting entity is comprised of the primary government only; there are no component units to report. In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 14, The Financial Reporting Entity. Management evaluates potential component units and includes all organizations for which the City is financially accountable and, in the case of legally separate organizations, for which it appoints a majority of the units’ board and 1) either it is able to impose its will on the unit or 2) there is a financial benefit or burden relationship. The City also includes other organizations for which the nature and significance of their relationship would cause the City’s financial statements to be misleading or incomplete if omitted. Discretely Presented Component Units Currently, the City has no discretely presented component units. Blended Component Units Currently, the City has no blended presented component units. 1.B. BASIS OF PRESENTATION Government-wide Financial Statements The Statement of Net Assets and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 53 Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: 1. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and 2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The funds of the financial reporting entity are described below: Governmental Funds General Fund The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted for expenditures of certain purposes. The City has three special revenue funds – the Recreation Center Fund, the E911 Fund, and the Economic Development Fund – which are described in the next section of this note. Capital Project Funds Capital Project Funds are used to account for resources restricted for the acquisition or construction of specific capital projects or items. The reporting entity includes the following four Capital Project Funds: The Capital Construction Fund is used to account for the design and construction of various city projects. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 54 Parks and Recreation Development Fund is used to account for costs of acquiring land for and developing new parks and recreation facilities and the improvements to existing parks. Specific Purpose Tax Fund is used to account for capital construction, improvements, and financing related to the 2002 and 2010 specific purpose taxes. The City projects related to the 2002 tax are as follows: City Hall remodeling and boiler replacement, Community Recreation Center construction, furnishing and equipment, acquisition and construction enhancements of an indoor ice rink, acquisition and/or construction of an outdoor swimming pool, street and water line reconstruction, Historic Downtown Laramie streetscape and construction of the East Side water tank project. Projects financed by the 2010 tax include infrastructure improvements for streets, water lines, sewer lines, and the landfill. Construction and improvement activity related to the 2010 tax is currently taking place, and debt payments are being made for both the 2002 and 2010 financing. West Laramie Capital Projects Fund is used to account for the remaining funds from a Special Assessments District and is to be used for capital improvements within the district. Debt Service Fund The Debt Service Fund accounts for the accumulation of financial resources for the payment of interest and principle on the general long-term debt of the City, other than debt service payments made by enterprise funds. Proprietary Funds Enterprise Funds Enterprise Funds are used to account for business-like activities provided to the general public, and these activities are financed primarily by user charges. The measurement of financial activity focuses on determination of net income and changes in fund net assets, financial position, and cash flows, which is similar to the private sector approach. The reporting entity includes the Waterworks and Waste Water Utilities Fund and the Solid Waste Fund. Internal Service Fund The Internal Service Fund is used to account for the financing of employee health insurance. Fiduciary Funds Fiduciary Funds are used to report assets held in a trust or agency capacity for others and therefore are not available to support City programs. The reporting focus is on net assets and changes in net assets and is reported using accounting principles similar to proprietary funds. The City’s fiduciary fund is presented in the fiduciary fund financial statements. Since, by definition, these assets are being held for the benefit of third parties and cannot be used to ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 55 address activities or obligations of the government, these funds are not incorporated in the government-wide financial statements. The City’s fiduciary fund is the Cemetery Perpetual Care Fund, which is a private purpose trust fund for the benefit of the cemetery users. The fund is used to report cemetery lot sales and related expenses associated with cemetery lots and lot development. Major and Nonmajor Funds The funds are further classified as major or non-major as follows: Fund Brief Description Major Governmental Funds: General Fund Accounts for the city’s primary operating activities, as described in the previous section. Capital Project Funds: Capital Construction Fund Accounts for the design and construction of various city projects. Specific Purpose Tax Fund Accounts for activity related to the 2001 and the 2010 specific purpose taxes, as described in the previous section. Debt Service Fund: Wyoming Territorial Prison Debt Service Fund Accounts for the accumulation of resources for, and the payment of, general long-term debt, interest and related costs. Major Proprietary Funds: Waterworks and Waste Water Fund Accounts for revenue and expenditures related to providing water and sewer services on a user charge basis to the general public. Solid Waste Fund Accounts for revenue and expenditures related to providing refuse collection and disposal services on a user charge basis to the general public. Non-major Governmental Funds: Capital Project Funds: Parks and Recreation Development Fund Accounts for improvements and capital projects that enhance parks and recreation facilities, as described the previous section. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 56 West Laramie Capital Projects Fund Accounts for capital improvements within a former Special Assessments District, as described in the previous section. Special Revenue Funds: E911 Fund Accounts for revenues and expenditures related to the Laramie and Albany County Records and Communications Center. Recreation Center Fund Accounts for revenues and expenditures related to the operation of the Laramie Community Recreation Center. Economic Development Fund Accounts for activity related to economic development initiatives and programs. Non-major Proprietary Funds None Internal Service Fund Accounts for financing of employee health insurance 1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Assets and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus as defined in item 2 below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate: 1. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. 2. The proprietary fund utilizes an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net assets. 3. Fiduciary funds are reported using the economic resources measurement focus method. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 57 Basis of Accounting In the government-wide Statement of Net Assets and Statement of Activities, both governmental and business-like activities are presented using the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Major revenue sources accrued generally consist of property taxes, sales and use taxes and grants. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for principal and interest which are reported when due. All proprietary funds and fiduciary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. 1.D. ASSETS, LIABILITIES, AND EQUITY Cash and Investments For the purpose of the Statement of Net Assets, “cash, including time deposits” includes all demand, savings accounts, and certificates of deposits of the City. For the purpose of the proprietary fund Statement of Cash Flows, “cash and cash equivalents” include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. Investments of the promissory note trustee accounts are not considered cash equivalents. Investments are carried at fair value except for short-term U.S. Treasury obligations with a remaining maturity at the time of purchase of one year or less. Those investments are reported at amortized cost. Fair value is based on quoted market price. Additional cash and investment disclosures are presented in Note 3.A. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Short-term interfund loans are reported as “interfund receivables and payables.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between funds within governmental activities are eliminated in the Statement of Net Assets. See Note 3.I. for details of interfund transactions, including receivables and payables at year-end. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 58 Receivables In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines, and ambulance fees. Business-type activities report utilities and interest earnings as their major receivables. In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are deferred in the fund financial statements in accordance with modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Capital Assets The accounting treatment for property, plant, and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of three years. Government-wide Statements In the government-wide financial statements, capital assets are included on the Statement of Net Assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated fixed assets which are recorded at their estimated fair value at the date of donation. Estimated historical cost was used to value the majority of the assets acquired prior to June 30, 2003. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: – Buildings 25–40 years – Improvements 10–40 years – Machinery and Equipment 5–20 years – Utility System 25–40 years – Infrastructure 20–40 years ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 59 Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements. Restricted Assets Restricted assets include cash and investments that are legally restricted as to their use. The restricted assets presented in the government-wide and fund financial statements are related to proceeds from the issuance of long-term debt that are restricted in use; capital facilities sales tax funds restricted for the purchase and/or repayment of debt; and other capital project obligations, debt service requirements, and externally imposed spending restrictions. For additional disclosures regarding Restricted Assets, refer to Note 3.B. Long-term Debt The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. All long-term debt obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. Long-term debt consists primarily of capital leases, bonds, and notes payable; accrued compensated absences; and a court-assessed judgment. Long-term debt obligations for governmental funds are not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest reported as expenditures. The accounting for proprietary fund is the same in the fund statements as it is in the government-wide statements. Compensated Absences The City’s policies regarding vacation time permit employees to accumulate earned but unused vacation leave. The liability for these compensated absences is recorded as long-term debt in the government-wide statements. The current portion of this debt is estimated based on historical vacation usage trends. In the fund financial statements, governmental funds report the compensated absence liability payable from expendable available financial resources only if they have matured, while the proprietary funds report the liability as it is incurred. Deferred Revenue Deferred revenues arise when potential revenue does not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, the liability for deferred revenue is removed and the revenue is recognized. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 60 During FY2011, the City issued general obligation bonds totaling $22,550,000 that were sold at a premium of $405,157. This premium was recorded in deferred revenue and will be amortized over the life of the debt, which is a ten year issue if the bonds are called at maturity. Equity Classifications Government-wide Statements Equity is classified as net assets and displayed in three components: 1. Invested in capital assets, net of related debt—Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. 2. Restricted net assets—Consists of net assets with constraints placed on the use either by external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or law through constitutional provisions or enabling legislation. 3. Unrestricted net assets—All other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.” Fund Statements Governmental fund equity is classified as fund balance. In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balance is classified into five components: nonspendable, restricted, committed, assigned, and unassigned. Definitions are presented below: Nonspendable fund balance – This classification reflects the portion of net resources that is inherently nonspendable because of its form or because it must be maintained intact. Restricted fund balance – The portion of fund balance for which there are legally enforceable restrictions on use, either by limitations imposed 1) by creditors, grantors, contributors, or laws and regulations of other governments or 2) by laws through constitutional provisions or enabling legislation. Committed fund balance – The portion of net resources for which there are self-imposed limitations enacted by the City Council that 1) required formal action at the same level to remove and 2) are set in place prior to the end of the period. Assigned fund balance – This classification reflects the portion of fund balance for which there are limitations that result from intended use established by the City Council or the City Manager. Unassigned fund balance – The portion of net resources that is residual after nonspendable, restricted, committed, and assigned amounts have been determined. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 61 When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources – committed, assigned, and unassigned – in order as needed. See Note 3.J. for additional disclosures regarding the components of fund balance in the City’s governmental funds. Proprietary fund equity is classified the same as in the government-wide statements: invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. 1.E. REVENUES, EXPENDITURES, AND EXPENSES Sales Tax The State presently levies a four-cent sales tax which the City receives approximately 31% of taxable collections. In November 2010, Albany County residents voted to continue the one cent optional tax. The majority of the optional penny tax goes directly to the City and Albany County. The sales tax is collected by the Wyoming Department of Revenue and remitted to the City in the month following receipt by the Department of Revenue. The Department of Revenue receives the sales tax approximately one month after collection by vendors. The sales tax is recorded entirely in the General Fund. Sales taxes collected by the State in June and July (which represent sales for May and June) and received by the City in July and August have been accrued and are included under the caption “Due from other governments.” Use Tax The State presently levies a four-cent use tax which the City receives approximately 31% of taxable collections. In November 2010, Albany County residents voted to continue the one cent optional tax. The majority of the optional penny tax goes directly to the City and Albany County. The use tax is collected by the Wyoming Department of Revenue and remitted to the City in the month following receipt by the Department of Revenue, which is one month after the tax is received from the vendors. The use taxes are allocated entirely to the General Fund. Use taxes collected by the State in June and July and received by the City in July and August are included under the caption “Due from other governments.” Specific Purpose Tax On August 1, 2002, the residents of Albany County approved a 1% specific purpose tax to fund several capital projects for Albany County, the City of Laramie and the Town of Rock River. The tax is in the form of sales and use tax and is collected by the Wyoming Department of Revenue and remitted to the Albany County Treasurer who in turn distributes the funds to the participating organizations in proportion to their participation in the projects. The sales tax collections have ended this year and remaining funds are to pay off bonded debt. On May 4, 2010, the residents of Albany County approved the renewal of the 1% Specific Purpose Tax for $46,000,000 of capital projects within the City of Laramie, Albany County, and the Town of Rock River. The City’s portion of the projects totals $22,550,000, with the majority of dollars being allocated to water, sewer, and street infrastructure. The renewal went into effect in October 2010, and capital construction began in spring 2011. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 62 Property Tax Property taxes are levied in the first week of August of each year and are collectible in two installments. Installments are due on September 1 and March 1 and are collectible on November 10 and May 10. If the first installment is made after November 10, the entire amount is due by December 31. Property taxes attach an enforceable lien on the property if the payment is not made by November 10 and May 10. The City can request a tax not in excess of eight mills plus an additional amount (currently 0.75 mill) for the extinguishment of general obligation debt in any one year for the purpose of paying the costs incurred in performing the governmental functions essential to the convenience, safety and happiness of the citizens. The Office of the Albany County Treasurer bills and collects the property taxes and remits to the City its portion. In the fund financial statements, property taxes are recorded as revenue in the period levied to the extent they are collected within 60 days of year-end. For the amount of any additional property taxes receivable after the 60-day period, an additional accrual is made in the government-wide financial statements. Operating Revenues and Expenses Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities. Expenditures/Expenses In the government-wide financial statements, expenses are classified by function for both governmental and business-type activities. In the fund financial statements, expenditures are classified as follows: Governmental Funds—By Character: Current (further classified by function) Debt Service Capital Outlay Proprietary Fund—By Operating and Nonoperating In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources. Interfund Transfers Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 63 Use of Estimates Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. Subsequent Events Subsequent events have been evaluated through December 20, 2011. 1.F. BUDGETARY DATA Budgetary Policy This year, the City adopted a biennial Budget Resolution for the General Fund and Recreation Center Special Revenue Fund, and an annual budget resolution for all other funds. The City is examining a permanent shift to a biennial budget so that it can better match its operating cycle with the State of Wyoming, on which it relies for supplemental funding. The budget and related appropriations are prepared on the encumbrance basis, whereas the City’s governmental financial statements are prepared on the modified accrual basis of accounting. The City’s government-wide financial statements are prepared on the accrual basis of accounting. Budgetary Control Each fund’s appropriated budget is prepared on a detailed line item basis. This detail is published and distributed for the recommended budget, but some funds are adopted in total in the final budget resolution. Revenues are budgeted by source. Expenditures are budgeted by department and character (personal services, materials and supplies, contractual services, capital outlay, and debt service). The legal level of spending control is at the department level. Budgets may be amended by the City Council through a public hearing process required by state statute. All budget amendments are handled in this manner. City management may not transfer appropriations without council approval. All budget appropriations lapse following the close of the budget year to the extent that they are not expended or encumbered. There were two material budget amendments for the year ended June 30, 2011, summarized as follows: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 64 Expenditures General Fund Increase in administrative service expenditures 2,315 $ Increase in other general government expenditures 5,174 Increase in fire department expenditures 17,200 Line item reductions from Police excluded from final budget (78,095) Increase in engineering expenditures 21,335 Line item reductions for Animal Control exluded from adopted budget (7,760) Increase in parks, recreation, and cemetary expenditures 161,642 Line items reductions in Streets due to lower than budgeted franchise fees (31,004) Net difference between original and final amended budget 90,807 $ NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY By its nature as a local government unit, the City and its component units are subject to various federal, state and local laws and contractual regulations. An analysis of the City’s compliance with significant laws and regulations and demonstration of its stewardship over the City includes the following: 2.A. FUND ACCOUNTING REQUIREMENTS The City complies with all state and local laws and regulations requiring the use of separate funds. The legally required funds used by the City include the following: Fund Required By Cemetery Trust Fund State Law Wyoming Territorial Prison Debt Service Fund Loan Agreement Specific Purpose Tax Fund Trust Indenture 2.B. COMPLIANCE WITH FINANCE RELATED AND LEGAL CONTRACTUAL PROVISIONS The City has no material violations of finance related legal contractual provisions. 2.C EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS The City has no material excess of expenditures over appropriations in individual funds. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 65 NOTE 3. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS 3.A CASH AND INVESTMENTS Effective July 1, 2004 the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures. This statement establishes financial reporting standards for all state and local governments pertaining to the presentation and disclosure requirement of deposits and investment risks related to credit risk, inherent rate risk and foreign currency risk. Adoption of this accounting standard had no impact on total net assets. Wyoming Statute 9-4-817 authorizes agencies of the State to deposit public funds in financial institutions authorized to do business in the state of Wyoming. These deposits must be fully insured by the Federal Deposit Insurance Corporation (FDIC) or secured by a pledge of assets that totals 102% including bonds, debentures and other securities in which the State Treasurer may by law invest in. Alternatively, a depository may pledge to deposits with conventional real estate mortgages and loans connected with mortgages at a ratio of one and one half (1 ½ of the value of public funds secured by the securities. The City investment policy specifies that internally invested funds may be invested in a combination of fixed-income, minimal risk instruments and money market funds. Investment goals for internally invested funds are designed to achieve a return to provide income, protect assets from risk and maintain liquidity to meet spending requirements. Investments are limited to collateralized bank certificates of deposits, money market funds or federally guaranteed or insured securities. Custodial services are utilized to safeguard the assets and provide reports. Deposits At June 30, 2011, the carrying amount of the City’s demand deposits in financial institutions was $43,932,668. The demand deposits were fully insured with a combination of FDIC insurance and pledged collateral held in the name of the City. All deposits qualified were held by a qualified depository as outlined in the state statutes. At June 30, 2011, the carrying amount of the City’s deposits with the Wyoming State Treasurer’s Asset Reserve (Wyo-STAR) totaled $5,410,303. Detailed information on Wyo- STAR’s pooled cash and investments is available from the Wyoming State Treasurer’s Office located at 200 W 24th Street, Cheyenne, WY, 82002. Investments As of June 30, 2011, the City had investments with weighted average maturities as shown in the following table: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 66 Weighted Carrying Average Maturity Investment Type Amount Fair Value in Years Federal Home Loan Mortgage Corporation 3,963,001 $ 3,927,694 $ 8.41 CMO Series 511,751 554,652 23.07 Federal National Mortgage Association 2,785,000 2,778,979 6.61 Government National Mortgage Association 7,193 8,130 13.63 U.S. Treasury Strips 9,646,500 9,646,500 3.38 Federal Home Loan Bank 955,000 938,297 7.16 Certificates of Deposit 2,235,174 2,235,174 0.65 U.S. Treasury Bills - - - Total 20,103,619 $ 20,089,426 $ Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City does not have a formal policy for interest rate risk. However, the City does manage its exposure to fair value loss arising from interest rate changes on internally invested funds by reviewing the portfolio on an ongoing basis for changes in effective yields amounts. Within the U.S. Government Agency Securities Discount Notes category are Federal Home Loan, Fannie Mae securities and GNMA securities that are highly sensitive to changes in interest rates. The City does not have a formal policy for interest rate risk. However, the risk is mitigated by the review the portfolio on an ongoing basis for changes in effective yields amounts. Credit Risk Credit risk is the risk that an insurer or other counterparty to an investment will not fulfill its obligations. The table below shows quality ratings and insured status of investments that are not rated: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 67 Investment Type Fair Value AAA Insured Unrated Federal Home Loan Mortgage Corporation 3,927,694 $ 3,927,694 $ - $ - $ Federal National Mortgage Association 2,778,979 2,778,979 - - Government National Mortgage Association 8,130 - 8,130 - CMO Series 554,652 - 554,652 - U.S. Treasury Strips 9,646,500 9,646,500 - - Federal Home Loan Bank 938,297 938,297 - - Certificates of Deposit 2,235,174 - - 2,235,174 U.S. Treasury Bills - - - - State of Wyoming Investment Pool 5,410,303 - - 5,410,303 Money Market 71,677 - - 71,677 Total 25,571,406 $ 17,291,470 $ 562,782 $ 7,717,154 $ Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the City will not be able to recover the value of the investments or collateral securities that are in possession of an outside party. The City does not have a formal policy for custodial credit risk. Investments are held in safekeeping by external custodians in the City’s name. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer. Concentration of risk is not addressed in the internal investment policy. At June 30, 2011, the City held securities from the following issuers in excess of 5% of the total portfolio: 3,927,693 $ Federal National Mortgage Association 2,778,979 U.S. Treasury Strips 9,646,500 Certificates of Deposit 2,235,174 Total 18,588,346 $ Federal Home Loan Mortgage Corporation ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 68 Foreign Currency Risk Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect the fair value of an investment or a deposit. The City’s policy is not to invest in foreign currency which mitigates their exposure to foreign currency risk. 3.B. RESTRICTED ASSETS The amounts reported as restricted assets include cash and investments legally restricted as to their use. Some of these amounts are restricted for use in the construction and financing of projects approved by the voters of the City of Laramie and Albany County. Other restrictions include additional capital projects, debt service requirements, and donor or other externally imposed spending restrictions. The balances of restricted assets as of June 30, 2011 are as follows: Fund Amount Recreation Center Fund 2,280,576 $ General fund 1,566,366 City Council Construction Fund 3,980,829 Parks and Recreation Construction Fund 55,141 Waste Water Fund 310,324 West Laramie Construction Fund 107,518 Specific Purpose Tax Fund 30,289,380 Water Fund 469,420 Wyoming Territorial Prison Debt Service Fund 9,646,500 Total restricted net assets 48,650,913 $ 3.C. ACCOUNTS RECEIVABLE Accounts receivable of the business-type activities consists of utilities receivable. Accounts receivable of the governmental activities consists of franchise taxes, property taxes, sales taxes, use taxes, state grants, federal grants and other miscellaneous receivables. The allowance for doubtful accounts for the business-type activities and governmental activities is $40,000 as of June 30, 2011. 3.D. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2011 was as follows: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 69 Balance at Balance at June 30, 2010 Additions Disposals June 30, 2011 Governmental activities: Non-depreciable assets Land 1,773,352 $ - $ - $ 1,773,352 $ Construction in progress 1,297,205 2,682,373 (1,141,053) 2,838,525 Depreciable assets Buildings 34,292,199 - (11,282) 34,280,917 Infrastructure 51,957,766 3,554,125 - 55,511,891 Improvements 4,578,794 509,202 (35,000) 5,052,996 Furniture and equipment 12,338,548 1,024,834 (1,752,396) 11,610,986 Total at historical cost 106,237,864 7,770,534 (2,939,731) 111,068,667 Less accumulated depreciation Buildings (6,857,798) (789,070) 11,282 (7,635,586) Infrastructure (21,880,768) (1,564,068) - (23,444,836) Improvements (2,444,544) (230,352) 35,000 (2,639,896) Furniture and equipment (7,915,494) (1,360,581) 1,700,876 (7,575,199) Total accumulated depreciation (39,098,604) (3,944,071) 1,747,158 (41,295,517) Governmental activities capital assets, net 67,139,260 $ 3,826,463 $ (1,192,573) $ 69,773,150 $ Business-type activities: Non-depreciable assets Land 3,493,428 $ - $ - $ 3,493,428 $ Water rights 87,685 - - 87,685 Construction in progress 6,048,842 364,998 (5,942,466) 471,374 Depreciable assets Buildings 31,133,605 - (13,000) 31,120,605 Infrastructure 1,476,603 - - 1,476,603 Improvements 63,952,208 8,971,357 (22,000) 72,901,565 Furniture and equipment 10,156,520 1,515,583 (538,634) 11,133,469 Total at historical cost 116,348,891 10,851,938 (6,516,100) 120,684,729 Less accumulated depreciation Buildings (14,805,716) (648,834) 4,387 (15,450,163) Infrastructure (55,372) (36,915) (92,287) Improvements (22,234,369) (1,677,833) 22,000 (23,890,202) Furniture and equipment (6,260,627) (883,071) 539,133 (6,604,565) Total accumulated depreciation (43,356,084) (3,246,653) 565,520 (46,037,217) Business-type activities capital assets, net 72,992,807 $ 7,605,285 $ (5,950,580) $ 74,647,512 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 70 Depreciation expense was charged to governmental activities as follows: General government: Administrative services 72,569 $ Other general government 246,764 Public safety: Police 482,751 Fire 419,587 Engineering and code administration 14,673 Health and welfare: Animal control 17,086 Mosquito control 18,509 Culture and recreation: Parks 349,781 Recreation 439,456 Cemetery 32,573 Highways and streets 1,850,323 Total depreciation expense 3,944,072 $ 3.E. EASEMENTS The City of Laramie purchased no easements during the past fiscal year. 3.F. ACCOUNTS PAYABLE Payables in the general fund and nonmajor governmental funds are composed of payables to vendors and accrued salaries and benefits. Payables of the Enterprise Funds are composed of payables to vendors and accrued salaries and benefits. 3.G. LONG-TERM DEBT The reporting entity’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. The liability for compensated absences has historically been paid for by the fund which incurred the liability for the compensated absences. The following is a summary of changes in long-term debt obligations of the City at June 30, 2011: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 71 Long-term Long-term Obligations at Obligations at Due Within June 30, 2010 Additions Deletions June 30, 2011 One Year Loans Payable: WTP note payable 10,000,000 $ - $ - $ 10,000,000 $ - $ Pension buy out 74,558 - 36,049 38,509 38,509 Capital Leases: VOIP Telephone System 74,753 - 25,562 49,191 24,279 Police cars 357,065 - 174,963 182,102 182,102 Central Irrigation System - 260,875 55,637 205,238 99,157 WAM energy lease 22,500 - 5,000 17,500 5,000 Animal shelter building 211,084 - 103,030 108,054 108,054 Street sewwper II 41,593 - 41,593 - - E911 consoles 567,641 - 155,025 412,616 160,440 Two dump trucks 70,012 - 70,012 - - WAM energy lease II - 100,000 - 100,000 10,000 City Hall remodel 315,718 - 123,713 192,005 125,681 Recreation Center construction 3,134,683 - 1,228,711 1,905,972 1,247,603 Ice Rink construction 378,742 - 148,457 230,285 150,739 East Side tank construction 1,765,882 - 692,179 1,073,703 702,820 General Obligation Bonds: SPT 2010 GO Bonds - 22,550,000 250,000 22,300,000 1,500,000 Other Long-term Debt: Compensated absences 885,709 1,204,020 1,005,106 1,084,623 325,387 17,899,940 $ 24,114,895 $ 4,115,037 $ 37,899,798 $ 4,679,771 $ Long-term Long-term Obligations at Obligations at Due Within June 30, 2010 Additions Deletions June 30, 2011 One Year Revenue Bonds: Water refunding bonds 2,310,000 $ - $ 285,000 $ 2,025,000 $ 300,000 $ Water refunding bonds 1,925,000 - 100,000 1,825,000 100,000 Loans Payable: WWDC Spur Well loan 664,713 - 49,288 615,425 51,259 WWDC Water projects loan 1,275,627 - 85,972 1,189,655 86,403 WWDC Soldier Springs Well loan 461,402 - 38,431 422,971 39,968 WWDC Laramie Transmission 1,055,123 758,926 - 1,814,049 - WSLIB Main Lift Station Project 729,333 - 31,807 697,526 31,328 WSLIB Wastewater Treatment Facility loan 5,880,688 - 673,920 5,206,768 690,286 WSLIB Wastewater Treatment Facility loan 588,254 - 42,334 545,920 43,780 Capital Leases: Landfill dozer and ripper 217,355 - 84,273 133,082 87,807 Recyling program equipment - - - - 75,885 Other long-term debt Landfill closure and post closure costs payable 1,910,647 382,130 - 2,292,777 - Compensated absences 163,245 215,633 169,011 209,867 62,960 17,181,386 $ 1,356,688 $ 1,560,036 $ 16,978,040 $ 1,569,676 $ Governmental Activities: Business-Type Activities: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 72 The City Council approved a lease purchase agreement for recycling program equipment in July 2011. While the liability for this lease purchase was not incurred during FY2011, the portion of the debt that will be payable in FY2012 is included on the above schedule is current. Governmental Activities: As of June 30, 2011, the governmental long-term debt of the financial reporting entity consisted of the following: LOANS: A note payable to the Investment Fund Committee of the State of Wyoming, interest only payable at 1.5% interest through December 1, 2014 when total principal and remaining accrued interest are due. U.S. securities and a portion of 1% sales tax are collateral for this loan. 10,000,000 $ A note payable to the State of Wyoming Retirement System, due in annual installments of $40,991, including interest at 6.6275% though July 1, 2011, unsecured. 38,509 CAPITAL LEASES: Capital lease payable , due in semi-annual installments of $93,819, including interest at 4.04% to March 2012, collateralized by equipment with an aggregate carrying value of $619,375 182,102 Capital lease payable to WAM, due in semi-annual installments of $2,500, at zero interest to June 2016, unsecured. 17,500 Note payable due in semi-annual installments of $87,586, including interest at 3.10% to 4.25% through December 2013 and secured by radios and equipment with a carrying value of $635,500 412,616 Capital lease payable to the Albany County Improvements Statutory Trust, due in semi-annual variable installments ranging from $64,420 to $68,584, including variable interest ranging from 3.00% to 4.00%, to July 2012, secured by real estate with an aggregate carrying value of $2,160,557. 230,285 Capital lease payable to the Albany County Improvements Statutory Trust, due in semi-annual variable installments ranging from $639,911 to $682,382, including variable interest ranging from 3.00% to 4.00%, to July 2012, secured by real estate recreation center with an aggregate carrying value of $11,981,239. 1,905,972 Capital lease payable to the Albany County Improvements Statutory Trust, due in semi-annual variable installments ranging from $81,139 to $164,746, including variable interest ranging from 3.00% to 4.00%, to July 2012, secured by real estate with an aggregate carrying value of $1,099,795. 192,005 ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 73 Capital lease payable to the Albany County Improvements Statutory Trust, due in semi-annual variable installments ranging from $360,429 to $384,400, including variable interest ranging from 3.00% to 4.00%, to July 2012, secured by real estate and water tank project with a carrying value of $10,408,663. 1,073,703 Capital lease payable, due in semi-annual installments of $54,452 with interest at 3.5% through February 2013 and secured by equipment with an aggregate carrying value of $260,875 205,238 Capital lease payable, due in semi-annual variable installments ranging from $56,079 to $56,854, including interest at 5.15% to June, 2012 collateralized by a building with an aggregate carrying value of $535,376. 108,054 Capital lease payable to WAM, due in quarterly installments 100,000 of $2500 at zero interest through 2022 and unsecured. Capital lease payable, due in annual installments of $25,562 including interest at 2.561% to September, 2012, collateralized by equipment with an aggregate carrying value of $126,686. 49,191 BONDS: General obligation bonds, due in semi-annual variable installments ranging from $1,011,187 to $1,396,500 at a net interest rate of 2.32% including a premium on the debt issue of $405,157 and secured by the one cent specific purpose tax 22,300,000 Total Governmental Activity Debt 36,815,175 $ Business-type Activities: As of June 30, 2011, the governmental long-term debt of the financial reporting entity consisted of the following: BONDS: A series of refunding water bonds, due in annual installments through December 1, 2015 with semi-annual interest payments at 2.70% to 4.65%. These bonds are callable after December 1, 2009. Secured by revenues generated by the Municipal Water System. 2,025,000 $ A series of refunding water bonds, due in annual installments through December 1, 2017 with semi-annual interest payments at 2.90% to 4.50%. These bonds are callable after December 1, 2009. Secured by revenues generated by the Municipal Water System. See Note 1.D. for Deferred Revenue for additional information about the premium amortization. 1,825,000 (Continued) ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 74 LOANS: Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments from estimated at $103,000 including interest at 4.0% secured by revenues generated by the Municipal Water System. Payments begin in approximately December 2012 through December 2042. 1,814,049 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments from $116,203 to $150,256 including interest at 2.5% secured by revenues generated by the Municipal Water System. 1,189,655 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments of $75,873 including interest at 4.0% secured by revenues generated by the Municipal Water System. 615,425 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments of $56,887 including interest at 4.0% secured by revenues generated by the Municipal Water System. 422,971 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $820,532, including interest at 2.5%, secured by revenues generated by the Wastewater Treatment Facility. 5,206,768 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $48,569, including interest at 2.50%, secured by revenues generated by the Wastewater Treatment Facility. 697,526 Note payable due in semi-annual installments of $46,214 including interest at 4.15% to December 2012, secured by equipment with a carrying value of $304,979 133,082 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $57,444, including interest at 2.5%, secured by revenues generated by the Wastewater Treatment Facility. 545,920 Total Business-Type Activity Debt 14,475,396 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 75 Annual Debt Service Requirements The annual requirements to amortize all debt outstanding as of June 30, 2011, excluding obligations associated with compensated absences and Landfill Closure and Post-closure costs are as follows: Principal Interest Principal Interest Principal Interest 2012 4,354,357 $ 831,316 1,461,408 $ 578,725 $ 5,815,765 $ 1,410,041 $ 2013 3,137,555 685,081 1,445,032 423,469 4,582,587 1,108,550 2014 1,925,763 617,197 1,451,640 377,927 3,377,403 995,124 2015 11,962,500 503,375 1,529,271 330,477 13,491,771 833,852 2016 2,010,000 388,875 1,957,672 271,464 3,967,672 660,339 2017-2020 9,015,000 1,097,125 3,541,190 678,409 12,556,190 1,775,534 2021-2025 4,410,000 138,750 1,653,229 410,065 6,063,229 548,815 2026-2030 - - 467,991 240,316 467,991 240,316 2031-2035 - - 348,920 166,773 348,920 166,773 2036-2040 - - 424,514 91,179 424,514 91,179 2041-2045 - - 194,529 11,748 194,529 11,748 36,815,175 $ 4,261,719 $ 14,475,396 $ 3,580,552 $ 51,290,571 $ 7,842,271 $ Governmental Activities Business-Type Activities Government-Wide Legal Debt Margin The City is subject to debt margin limits related to general obligation (GO) bonds, which are based on the City’s current assessed value of $210,113,229. For GO bonds related to general projects, the debt limit is 4% of the City’s assessed value. For wastewater projects financed by GO bonds, the debt limit is 8% of the City’s assessed value. Per Wyoming Statute, there is no debt limit for water projects financed by GO bonds. Additional information about the City’s debt limit, including the current calculation, is included in the statistical section. 3.H. LANDFILL CLOSURE AND POSTCLOSURE COSTS State and federal laws require the City of Laramie to place a final cover on its municipal landfill site when it stops accepting waste and to perform certain monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $2,292,777 reported as landfill closure and postclosure care liability at June 30, 2011 represents the cumulative amount reported to date based on 55.35 percent of the estimated usage of the landfill. The City will recognize the remaining estimated costs of closure and postclosure care of $1,849,565 as the remaining capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2009. The City expects to close the landfill in the year 2034. Actual costs may be higher due to inflation, changes in technology or changes in regulations. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 76 3.I. INTERFUND TRANSACTIONS AND BALANCES The City transfers amounts between funds to pay for operating expenses. The transfers are budgeted for by the City Council to supplement the operating costs for the respective funds for matching funds required by capital grants. The transfers for the year ended June 30, 2011 were as follows: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 77 Transfers In Transfers Out General Fund: Capital Projects Funds Recreation Center Fund - $ 150,000 $ Capital Construction Fund - 470,000 Economic Development Fund - 300,000 Internal Service Funds Health Insurance Trust - 38,000 Enterprise Funds Water 369,285 - Waste Water 404,137 - Solid Waste 115,651 - Total General Fund 889,073 958,000 Recreation Center Fund General Fund 150,000 - Total Recreation Center Fund 150,000 - Capital Construction Fund Economic Development Fund 300,000 - General Fund 470,000 - Total Capital Construction Fund 770,000 - Health Insurance Trust General Fund 38,000 - Total Health Insurance Trust 38,000 - Water Works Fund General Fund - 369,285 Total Water Works Fund - 369,285 Waste Water Fund General Fund - 404,137 Total Waste Water Fund - 404,137 Solid Waste Fund General Fund - 115,651 Total Solid Waste Fund - 115,651 Grand Totals 1,847,073 $ 1,847,073 $ Interfund loan amounts are temporary in nature and are repaid by the respective funds on a current basis. As of June 30, 2011 there were no interfund loan balances. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 78 3.J. FUND EQUITY Amounts for specific purposes by fund and fund balance classifications for the year ended June 30, 2011 are as follows: Classification/Fund Purpose Amount Nonspendable Economic Development Fund Economic Loans 116,518 $ Recreation Center Fund Recreation Endowment 2,235,174 Total Unspendable 2,351,692 $ Restricted General Fund Dare program 30,614 Animal Shelter program 30,086 Fire program: Clown/car seats 10,841 Victim & Court services 88,695 Debt payments 435,788 Drug Asset program 12,744 (Urban Systems Advisory Committee) USAC Developers contributions 161,484 Grant Funded: Safe Routes to School 83,798 (Wyoming Energy Conservation Improvement Program) WYECIP 30,000 . Capital Streets Funded 682,316 Emergency E911 Fund Debt payments 175,172 Recreation Center Fund Schlorships 45,402 Debt Service Fund Wyoming Terriorial Prison Debt 9,646,500 Specific Purpose Tax Capital projects 30,289,380 West Laramie Projects Fund WL Capital drainage project 107,518 Park & Recreation Mill Fund Recreation capital projects 55,141 Capital Projects Fund Various Capital improvements 1,356,225 Total Restricted 43,241,704 $ Committed General Fund Encumbered contracts 762,344 $ Capital Projects Fund Encumbered contracts/grants 2,624,604 3,386,948 $ Assigned General Fund Encumbered projects 1,141,237 $ Vacation/Comp Acc. Over 60 day 759,515 Subsequent years budget (biennum) 5,229,449 Contingency budget dept policy 608,551 Major Economic Development projects 1,000,000 Recreation Center Fund 652,076 Emergency E911 Fund 912,413 10,303,241 $ Unassigned General Fund 7,081,964 $ Total Fund Balance 66,365,549 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 79 NOTE 4. OTHER NOTES 4.A. EMPLOYEE PENSION PLANS Wyoming Retirement System All City full-time or regular part-time employees, other than policemen and firemen, participate in the Wyoming Retirement System’s (WRS) Public Employee Pension Plan, a cost sharing multiple-employer defined benefits pension plan. The payroll for employees covered by WRS for the year ended June 30, 2011 was $7,494,987; the City’s total payroll was $14,940,728. All City full-time or regular part-time employees, other than policemen and firemen, are eligible to participate in the WRS. Employees who retire at or after age 60 with four years of credited service are entitled to a retirement benefit according to predetermined formulas and allowed to select one of five optional methods for receiving benefits. Early retirement is allowed provided the employee has completed four years of service and attained age 50, but will result in a reduction of benefits based on the length of time remaining to normal retirement age. WRS also provides death and disability benefits. Benefits are established by State statutes. Prior to September 1, 2010, the WRS statutorily required 11.25% of the covered employees’ salary to be contributed to the plan, of which 2.50% was paid by the employee and the remaining 8.75% was paid by the City. After this date, the required contribution increased to 14.12%, of which 3.25% is paid by the employee and 10.87% is paid by the City. The contribution requirement for the year ended June 30, 2011 was $1,023,797 which consisted of $300,446 from employees and $723,352 from the City. 100% of the required amount was contributed for the year ended June 30, 2011. The required contribution amounts of $880,930 for June 30, 2010 and $854,039 for June 30, 2009 were also 100% contributed. Actuarial valuations are performed annually with the most recent valuation date of January 1, 2011. According to the Wyoming Retirement System’s Comprehensive Annual Financial Report (CAFR) for the period ending December 31, 2010, the Entry Age Normal Actuarial Cost Method is used to determine the plan obligation. Under this method, the employer contribution rate is determined using a level funding approach and the required contributions represent the sum of the employer normal cost rate, and (ii) the rate that will amortize the unfunded actuarial accrued liability (UAAL) over 30 years from the valuation date. Actuarial assumptions include the following: 1) 8.0% investment rate of return, compounded annually, composed of an assumed 3.5% inflation rate and a 4.5% net real rate of return 2) Projected salary increases ranging from 5.0 - 9.5% per year 3) Payroll growth rate of 4.5% per year The actuarial value of assets is based on the market value of assets with a five-year phase in of actual investment returns in excess of or (less than) expected investment income. Interest, dividends, and other income are recognized immediately. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 80 A schedule of funding progress for the Public Employee’s Pension Plan is presented as part of Required Supplemental Information. Historical trend information showing the fund’s progress in accumulating sufficient assets to pay benefits when due, including actuarial valuation information is presented in the Wyoming Retirement System’s CAFR for the period ending December 31, 2010. This report, as well as historical reports, can be obtained by contacting the Wyoming Retirement System (WRS) at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or by accessing WRS’s website at http://retirement.state.wy.us. Paid Fireman’s Pension Fund All full-time paid employees of the Fire Department participate in the Paid Fireman’s Pension Fund (“Fund”), a cost sharing multiple-employer defined benefit pension plan which is part of the Wyoming Retirement System. Within the Paid Fireman’s Pension Fund, there are two funds, Plan A and Plan B. Plan A is for those employees employed prior to July 1, 1981 and Plan B is for those employees employed after June 30, 1981. There are currently no employees covered under the Plan A fund. The payroll for employees covered by Plan B was $3,135,557 for the year ended June 30, 2011; the City’s total payroll was $14,940,728. All City full-time employees of the Fire Department are eligible to participate in the Fund. Under Plan A, to qualify for normal retirement benefits at any age, at 50 percent of the maximum salary of a Fireman First Class, a paid fireman must have 20 years of credited service in a regularly constituted fire department. After July 1, 1981, a fireman who works beyond 20 years will receive additional benefits at the rate of 1 percent per year to a maximum of 60 percent of a fireman first class salary. The retirement benefit will be increased or decreased proportionally as the active firemen’s first class salary is increased or decreased. Under Plan B, to qualify for a service pension, a fireman must have 10 years of service credit and must be at least 55 years old. A fireman may take an early retirement, with 10 years of service credit, at age 50 but the allowance will be actuarially reduced. To qualify for full retirement at age 55, at 60 percent of the final average salary, a fireman must work 32 ½ years. A maximum of 4% non-compounded, annual increase, not to exceed the consumer price index, may be granted to all retirees that have been retired for at least 12 months and are 55 years old. The Fund also provides death and disability benefits. Benefits are established by State statute. Plan A was actuarially determined to be fully funded in April 1997. No further contributions to this fund are required. Plan B statutorily requires 20.5% of the covered employees’ salary to be contributed to the Plan, of which 7.5% is paid by the employee and the remaining 13% is paid by the City. The contribution requirement for the year ended June 30, 2011 was $642,789, which consisted of $266,522 from employees and $376,267 from the City. 100% of the required amount was contributed for the year ended June 30, 2011. The required contribution amounts of $621,685 for June 30, 2010 and $587,498 for June 30, 2009 were also 100% contributed. Actuarial valuations are performed annually with the most recent valuation date of January 1, 2011. According to the Wyoming Retirement System’s Comprehensive Annual Financial ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 81 Report (CAFR) for the period ending December 31, 2010, the Entry Age Normal Actuarial Cost Method is used to determine the plan obligation. Under this method, the employer contribution rate is determined using a level funding approach and the required contributions represent the sum of the employer normal cost rate, and (ii) the rate that will amortize the unfunded actuarial accrued liability (UAAL) over 30 years from the valuation date. Actuarial assumptions include the following: 1) 8.0% investment rate of return, compounded annually, composed of an assumed 3.5% inflation rate and a 4.5% net real rate of return 2) Projected salary increases ranging from 5.0 - 9.5% per year 3) Payroll growth rate of 4.5% per year The actuarial value of assets is based on the market value of assets with a five-year phase in of actual investment returns in excess of or (less than) expected investment income. Interest, dividends, and other income are recognized immediately. A schedule of funding progress for the Paid Fireman’s Pension Fund is presented as part of Required Supplemental Information. Historical trend information showing the fund’s progress in accumulating sufficient assets to pay benefits when due, including actuarial valuation information is presented in the Wyoming Retirement System’s CAFR for the period ending December 31, 2010. This report, as well as historical reports, can be obtained by contacting the Wyoming Retirement System (WRS) at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or by accessing WRS’s website at http://retirement.state.wy.us. State of Wyoming Police Pension Fund Plan Description: The City of Laramie contributes to the State of Wyoming Police Pension Fund (“Fund”), an agent multiple-employer public employee retirement fund that acts as a common investment and administrative agent for several cities in the State. All City policemen are eligible to participate in the Fund. Benefits vest after 10 years of service. Any police officer who retires at age 60 or with 20 years of credited service is entitled to an annual retirement benefit, payable for life, in an amount equal to 2.5 percent of their average salary during their highest paid five year period multiplied by the number of years of service (up to a maximum of 62.5 percent). The Fund also provides death and disability benefits to participating employees. Benefit provisions and all other requirements are established by state statute. The Fund statutorily requires 17.2% of the covered employees’ salary to be contributed to the fund, of which 4.85% is paid by the employee and the remaining 12.35% is paid by the City. The contribution requirement for the year ended June 30, 2011 was $571,991, which consisted of $194,522 from employees and $377,469 from the City. 100% of the required contribution was made for the year ended June 30, 2011. The required contributions of $612,584 for June 30, 2010 and $591,654 for June 30, 2009 were also 100% contributed. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 82 Actuarial valuations are performed annually with the most recent valuation date of January 1, 2011. According to the Wyoming Retirement System’s Comprehensive Annual Financial Report (CAFR) for the period ending December 31, 2010, the Entry Age Normal Actuarial Cost Method is used to determine the plan obligation. Under this method, the employer contribution rate is determined using a level funding approach and the required contributions represent the sum of the employer normal cost rate, and (ii) the rate that will amortize the unfunded actuarial accrued liability (UAAL) over 30 years from the valuation date. Actuarial assumptions include the following: 1) 8.0% investment rate of return, compounded annually, composed of an assumed 3.5% inflation rate and a 4.5% net real rate of return 2) Projected salary increases ranging from 5.0 - 9.5% per year 3) Payroll growth rate of 4.5% per year The actuarial value of assets is based on the market value of assets with a five-year phase in of actual investment returns in excess of or (less than) expected investment income. Interest, dividends, and other income are recognized immediately. A schedule of funding progress for the State of Wyoming Police Pension Fund is presented as part of Required Supplemental Information. Historical trend information showing the fund’s progress in accumulating sufficient assets to pay benefits when due, including actuarial valuation information is presented in the Wyoming Retirement System’s CAFR for the period ending December 31, 2010. This report, as well as historical reports, can be obtained by contacting the Wyoming Retirement System (WRS) at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or by accessing WRS’s website at http://retirement.state.wy.us. 4.B RISK MANAGEMENT- CLAIMS AND JUDGEMENTS Self-Insured Health Plan Description The City’s risk management activities are recorded in the Employers Plan Services (EPS) fund. The purpose of this fund is to administer employee health insurance. This fund accounts for the financing activities of the City but does not constitute a transfer of risk from the City. An excess coverage insurance policy covers individual claims in excess of $85,000 for each insured during the policy year. The City is exposed to various risk of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government covers commercial insurance. For insured programs, there have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or the three prior years. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 83 Claims Liabilities The City records an estimated liability for health care claims against the City. Claims liabilities are based on estimates of the ultimate cost of reported claims (including future claim adjustment expenses) and an estimate for claims incurred but not reported based on historical experience. Unpaid Claims Liabilities The fund establishes a liability for both reported and unreported events, which includes estimates of both future payments of losses and related claim adjustment expenses. The following represents the changes in approximate aggregate liabilities for the City from July 1, 2006 to June 30, 2011: Liability balance, June 30, 2008 351,856 Claims and changes in estimates 1,918,563 Claims payments (1,865,300) Liability balance, June 30, 2009 405,119 Claims and changes in estimates 2,528,117 Claims payments (2,446,943) Liability balance, June 30, 2010 486,293 Claims and changes in estimates 1,950,901 Claims payments (2,067,536) Liability balance, June 30, 2011 369,658 $ Assets available to pay claims at June 30, 2011 4,204,429 $ Premiums are paid into the internal service fund by all other funds and are available to pay claims, claim reserves and administrative costs of the program. These interfund premiums are reported as premium income of the internal service fund. Other Liabilities The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has joined together with other cities in the state to form Wyoming Association of Risk Management (WARM), a public entity risk pool currently operating as a common risk management and insurance program. The City pays an annual premium to WARM for its general insurance coverage. The agreement for formation of the WARM provides that WARM will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of $250,000 for each insured event. Settled ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 84 claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years. 4.C COMMITMENTS AND CONTINGENCIES Contingencies As of June 30, 2011 the City was involved in two pieces of litigation. The first case is Juel v. City, and it has a maximum potential settlement of $250,000. Any settlement would be paid by Wyoming Association of Risk Management insurance coverage. The second case is Lewellin v. City, which has a potential settlement that is unlimited. This claim is covered partially by the State, and partially by the Wyoming Association of Risk Management. This case was resolved after June 30 in a confidential settlement, with no expense to the City. Commitments The City has multiple capital projects in progress at year end and has remaining commitments as follows: Remaining Commitment Street projects 5,268,356 $ Water storage, transmission and chlorine generation projects 14,113,415 Sanitary Sewer transmission & lift station 8,438,427 Parks and lighting 169,772 Detention and Drainage 107,518 Buildings Improvements (City Hall/Rec. Center) 15,600 Energy Improvements and other general projects 113,798 Landfill Improvements 3,362,508 Total Capital Commitments 31,589,394 $ ---PAGE BREAK--- 85 INDEX TO ILLUSTRATIVE REQUIRED SUPPLEMENTARY INFORMATION PUBLIC EMPLOYEE, POLICE OFFICER, AND FIREMEN’S PENSION FUNDS Funding Progress Schedule BUDGETARY INFORMATION Budgetary Comparison Schedule - General Fund Notes to Required Supplementary Information – Budgetary Comparisons ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 86 REQUIRED SUPPLEMENTAL INFORMATION PUBLIC EMPLOYEE, POLICE & FIREMEN’S PENSION FUND Unfunded Actuarial Actuarial UAAL as a Actuarial Accrued Accrued Percentage Value of Liabilities Liabilities Funded Covered of Covered Valuation Date Assets Entry Age (UAAL) Ratio Payroll Payroll January 1, 2005 4,704,299 $ 5,536,192 $ 831,893 $ 84.97% 1,086,736 $ 76.55% January 1, 2006 4,843,861 5,091,763 247,902 95.13% 1,156,400 21.44% January 1, 2007 5,160,602 5,468,229 307,627 94.37% 1,285,096 23.94% January 1, 2008 5,654,023 6,015,985 361,962 93.98% 1,462,474 24.75% January 1, 2009 4,835,875 6,152,122 1,316,247 78.60% 1,585,728 83.01% January 1, 2010 5,742,542 6,565,677 823,135 87.46% 1,698,836 48.45% January 1, 2011 5,799,531 6,855,643 1,056,112 84.59% 1,728,444 61.10% Unfunded Actuarial Actuarial UAAL as a Actuarial Accrued Accrued Percentage Value of Liabilities Liabilities Funded Covered of Covered Valuation Date Assets Entry Age (UAAL) Ratio Payroll Payroll January 1, 2005 46,680 $ 40,769 $ (5,911) $ 114.50% 14,584 $ -40.53% January 1, 2006 51,900 47,153 (4,747) 110.07% 15,689 -30.26% January 1, 2007 59,057 54,667 (4,390) 108.03% 17,359 -25.29% January 1, 2008 68,227 64,475 (3,752) 105.82% 19,082 -19.66% January 1, 2009 62,332 64,589 2,257 96.51% 20,842 10.83% January 1, 2010 76,157 65,548 (10,609) 116.19% 22,111 -47.98% January 1, 2011 81,763 70,667 (11,096) 115.70% 22,517 -49.28% Unfunded Actuarial Actuarial UAAL as a Actuarial Accrued Accrued Percentage Value of Liabilities Liabilities Funded Covered of Covered Valuation Date Assets Entry Age (UAAL) Ratio Payroll Payroll January 1, 2005 230,699 $ 260,026 $ 29,327 $ 88.72% 89,352 $ 32.82% January 1, 2006 264,963 296,633 31,670 89.32% 98,071 32.29% January 1, 2007 322,970 331,483 8,513 97.43% 108,350 7.86% January 1, 2008 364,723 380,413 15,690 95.88% 119,165 13.17% January 1, 2009 325,946 390,846 65,000 83.39% 132,702 48.98% January 1, 2010 389,358 381,030 (8,328) 102.19% 149,481 -5.57% January 1, 2011 409,567 410,160 593 99.86% 154,652 0.38% Note: The information presented relates to the cost-sharing plan as a whole, of which the City of Laramie is one participating employer. The following is a schedule of funding progress for the Police Officer Pension Plan (in thousands): The following is a schedule of funding progress for the Public Employee Pension Plan (in thousands): Public Employee's Pension Plan Paid Firemen's Pension Plan B The following is a schedule of funding progress for the Paid Firemen's Pension Plan (in thousands): ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 87 BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Taxes and special assessments 3,459,250 $ 3,459,250 $ 3,560,439 $ 101,189 $ Licenses and permits 109,500 109,500 123,415 13,915 Intergovernmental 16,583,598 16,583,598 17,021,229 437,631 Charges for services 1,576,924 1,576,924 1,632,541 55,617 Fines and forfeitures 772,620 772,620 809,983 37,363 Investment income 90,000 90,000 120,864 30,864 Miscellaneous 97,200 97,200 370,791 273,591 Total Revenues 22,689,092 22,689,092 23,639,262 950,170 EXPENDITURES: General government Executive- City Manager 470,611 470,611 468,929 1,682 Administrative services (Finance, Utility Billing, Human Resources) 1,812,068 1,814,383 1,676,571 137,812 Judicial 296,250 296,250 295,856 394 Legal 302,512 302,512 285,933 16,579 Other general government 3,041,850 3,047,024 2,557,906 489,118 Public safety Police 6,661,447 6,583,352 6,105,713 477,639 Fire 5,414,551 5,431,751 5,376,909 54,842 Engineering and code administration 1,175,974 1,197,309 1,020,544 176,765 Health and welfare Animal control 495,468 487,708 473,908 13,800 Mosquito control 331,000 331,000 293,608 37,392 Highways and streets 4,311,662 4,280,658 3,085,615 1,195,043 Culture and recreation Parks 1,186,759 1,239,459 919,117 320,342 Recreation 642,907 653,849 641,625 12,224 Cemetery 394,700 492,700 344,381 148,319 Total Expenditures 26,537,759 26,628,566 23,546,615 3,081,951 Excess (deficiency) of revenues over (under) expenditures (3,848,667) (3,939,474) 92,647 4,032,121 OTHER FINANCING SOURCES (USES): Proceeds from debt - - 100,000 100,000 Operating transfers (out) (658,000) (658,000) (658,000) - Operating transfers in 889,073 889,073 889,073 - Total Other Financing Sources (Uses) 231,073 231,073 331,073 100,000 Budgeted Amounts (Continued) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 88 BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended June 30, 2011 (Continued) Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) Excess (deficiency) of revenues over expenditures and other financing sources (uses) (3,617,594) (3,708,401) 423,720 4,132,121 Fund balance at beginning of year 17,718,529 17,718,529 17,718,529 - Fund balance at end of year 14,100,935 $ 14,010,128 $ 18,142,249 $ 4,132,121 $ Explanation of differences between budgetary revenue and expenditures and GAAP revenue and expenditures. Revenue: Actual total revenue budgetary basis 23,639,262 $ Differences- Budget to GAAP Gains and losses on fixed asset disposals (21,988) Change in accrued interest receivable (5,323) Unrealized gains and losses on investments 100,007 Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance- governmental funds 23,711,958 $ Expenditures: Actual total expenditures budgetary basis 23,546,615 $ Differences- Budget to GAAP Vacation accruals (4,000) Expenses paid for with capitial lease proceeds 360,875 Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance- governmental funds 23,903,490 $ Other financing sources (uses) Actual total expenditures budgetary basis 331,073 Differences- Budget to GAAP Capital proceeds 260,875 Net other financilng sources (uses) as reported on the statement of revenues, expenditues, and changes in fund balance- governmental funds 591,948 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 89 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY COMPARISONS June 30, 2011 A. Budgetary Basis Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except the capital project funds, which are approved on a “life of the project basis”, and the permanent fund, which is not budgeted. A biennium budget was prepared for FY11 and FY12 for the General Fund and the Recreation Center special revenue fund, and annual budgets were adopted for all other funds. Since all accounting principles applied for purposes of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity with generally accepted accounting principles, a reconciliation of the resultant timing differences has been provided on page 88. All annual appropriations lapse at year end. B. Budgetary Information The appropriated budget is prepared by fund, function, and department. The government’s department heads, with the manager’s approval, may make transfers of appropriations within a department or division. Transfers of appropriations between departments and/or divisions require approval of the council. The legal level of budgetary control the level at which expenditures may not legally exceed appropriations) is the department level. The council made one supplementary budgetary appropriation during the year. C. Excess of Expenditures over Appropriations For the year ended June 30, 2011, there were no instances of excess of expenditures over appropriations. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 90 COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS June 30, 2011 Economic Recreation Emergency Development Center 911 fund ASSETS Cash 91,600 $ 832,581 $ 784,594 $ Investments 24,918 - 299,504 Receivables: Notes 400,000 - - Accrued interest - 1,102 1,445 Operating - 51,001 2,042 Restricted assets: Investments - 2,280,576 - Total Assets 516,518 $ 3,165,260 $ 1,087,585 $ LIABILITIES Accounts payable - $ 40,106 $ - $ Unearned revenue 400,000 182,597 - Accrued vacation and compensatory time - 9,905 - Total Liabilities 400,000 232,608 - FUND BALANCES Unspendable 116,518 2,235,174 - Restricted - 45,402 175,172 Committed Assigned - 652,076 912,413 Unassigned - - - Total Fund Balances 116,518 2,932,652 1,087,585 Total Liabilities and Fund Balances 516,518 $ 3,165,260 $ 1,087,585 $ Special Revenue Funds ---PAGE BREAK--- 91 Total Non-Major Parks and West Governmental Recreation Laramie Funds 62,118 $ 9,524 $ 1,780,417 $ - 97,994 422,416 - - 400,000 - - 2,547 - - 53,043 - - 2,280,576 62,118 $ 107,518 $ 4,938,999 $ 6,977 $ - $ 47,083 $ - - 582,597 - - 9,905 6,977 - 639,585 - - 2,351,692 55,141 107,518 383,233 - - - 1,564,489 - - - 55,141 107,518 4,299,414 62,118 $ 107,518 $ 4,938,999 $ Capital Projects Fund ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 92 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS For the Year Ended June 30, 2011 Economic Recreation Emergency Development Center 911 fund REVENUES: Taxes and special assessments - $ - $ - $ Intergovernmental - 473,210 287,486 Charges for services - 1,107,747 - Investment income 3,364 17,287 5,411 Miscellaneous 54,870 - - Total Revenues 58,234 1,598,244 292,897 EXPENDITURES: Current operating: General government 100,000 - - Public safety - - 152,377 Highways and streets - - - Culture and recreation - 1,458,936 - Capital outlay - 228,576 - Debt service: Principal retirement - - 155,026 Interest - - 20,146 Total Expenditures 100,000 1,687,512 327,549 Excess (deficiency) of revenues over (under) expenditures (41,766) (89,268) (34,652) OTHER FINANCING SOURCES AND (USES): Transfers in - 150,000 - Transfers (out) (300,000) - - Total Other Financing Sources and (Uses) (300,000) 150,000 - Net Change in Fund Balance (341,766) 60,732 (34,652) Fund Balances - Beginning 458,284 2,871,920 1,122,237 Fund Balances - Ending 116,518 $ 2,932,652 $ 1,087,585 $ Special Revenue Funds ---PAGE BREAK--- 93 Total Non-Major Parks and West Governmental Recreation Laramie Funds 53,760 $ - $ 53,760 $ - - 760,696 - - 1,107,747 499 383 26,944 12,044 - 66,914 66,303 383 2,016,061 - - 100,000 - - 152,377 - - - - - 1,458,936 177,984 - 406,560 - - 155,026 - - 20,146 177,984 - 2,293,045 (111,681) 383 (276,984) - - 150,000 - - (300,000) - - (150,000) (111,681) 383 (426,984) 166,822 107,135 4,726,398 55,141 $ 107,518 $ 4,299,414 $ Capital Projects Fund ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 94 BUDGETARY COMPARISON SCHEDULE SPECIFIC PURPOSE TAX FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 2,722,500 $ 2,722,500 $ 1,838,019 $ (884,481) $ Miscellaneous - - 1,969 1,969 Investment income - - 26,888 26,888 Total Revenues 2,722,500 2,722,500 1,866,876 (855,624) EXPENDITURES: Capital outlay 22,467,960 22,467,960 1,178,995 21,288,965 Debt service Principal 45,000 45,000 2,443,061 (2,398,061) Interest - - 512,692 (512,692) Total Expenditures 22,512,960 22,512,960 4,134,748 18,378,212 Excess (deficiency) of revenues over (under) expenditures (19,790,460) (19,790,460) (2,267,872) 17,522,588 OTHER FINANCING SOURCES (USES): Proceeds from debt - - 22,955,157 22,955,157 Total Other Financing Sources (Uses) - - 22,955,157 22,955,157 Excess (deficiency) of revenues over expenditures and other financing sources (uses) (19,790,460) (19,790,460) 20,687,285 40,477,745 Fund balance at beginning of year 9,582,197 9,582,197 9,582,197 - Fund balance at end of year (10,208,263) $ (10,208,263) $ 30,269,482 $ 40,477,745 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 95 BUDGETARY COMPARISON SCHEDULE WYOMING TERRITORIAL PRISON DEBT SERVICE FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income - $ - $ 341,400 $ 341,400 $ Total Revenues - - 341,400 341,400 EXPENDITURES: General government - - - - Total Expenditures - - - - Excess (Deficiency) of revenues over (under) expenditures - - 341,400 341,400 Fund balance at beginning of year 9,305,100 9,305,100 9,305,100 - Fund balance at end of year 9,305,100 $ 9,305,100 $ 9,646,500 $ 341,400 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 96 BUDGETARY COMPARISON SCHEDULE CITY COUNCIL CONSTRUCTION FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 5,353,713 $ 5,353,713 $ 2,577,566 $ (2,776,147) $ Investment income 15,000 15,000 12,644 (2,356) Miscellaneous 956,648 956,648 238,101 (718,547) Total Revenues 6,325,361 6,325,361 2,828,311 (3,497,050) EXPENDITURES: General government 560,000 560,000 32,128 527,872 Capital outlay 9,476,930 9,476,930 3,408,901 6,068,029 Total Expenditures 10,036,930 10,036,930 3,441,029 6,595,901 Excess (deficiency) of revenues over (under) expenditures (3,711,569) (3,711,569) (612,718) 3,098,851 OTHER FINANCING SOURCES (USES): Transfers in 770,000 770,000 770,000 - Transfers (out) - - - - Total Other Financing Sources (Uses) 770,000 770,000 770,000 - Excess (deficiency) of revenues over expenditures and other financing sources (uses) (2,941,569) (2,941,569) 157,282 3,098,851 Fund balance at beginning of year 3,823,547 3,823,547 3,823,547 - Fund balance at end of year 881,978 $ 881,978 $ 3,980,829 $ 3,098,851 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 97 BUDGETARY COMPARISON SCHEDULE ECONOMIC DEVELOPMENT FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income 10,000 $ 10,000 $ 3,364 $ (6,636) $ Miscellaneous income 55,500 55,500 55,500 - Total Revenues 65,500 65,500 58,864 (6,636) EXPENDITURES: General government - 400,000 400,000 - Total Expenditures - 400,000 400,000 - Excess (deficiency) of revenues over (under) expenditures 65,500 (334,500) (341,136) (6,636) Fund balance at beginning of year 458,284 458,284 458,284 - Fund balance at end of year 523,784 $ 123,784 $ 117,148 $ (6,636) $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 98 BUDGETARY COMPARISON SCHEDULE EMERGENCY 911 FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 325,000 $ 325,000 $ 287,486 $ (37,514) $ Investment income 10,000 10,000 5,411 (4,589) Total Revenues 335,000 335,000 292,897 (42,103) EXPENDITURES: Public safety 334,172 334,172 327,549 6,623 Total Expenditures 334,172 334,172 327,549 6,623 Excess (deficiency) of revenues over (under) expenditures 828 828 (34,652) (35,480) Fund balance at beginning of year 1,122,237 1,122,237 1,122,237 - Fund balance at end of year 1,123,065 $ 1,123,065 $ 1,087,585 $ (35,480) $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 99 BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION CONSTRUCTION FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Taxes and special assessments 53,670 $ 53,670 $ 53,760 $ 90 $ Investment income 800 800 499 (301) Miscellaneous - - 12,044 12,044 Total Revenues 54,470 54,470 66,303 11,833 EXPENDITURES: Culture and recreation 65,215 65,215 20,532 44,683 Capital outlay 351,366 351,366 157,452 193,914 Total Expenditures 416,581 416,581 177,984 238,597 Excess (deficiency) of revenues over (under) expenditures (362,111) (362,111) (111,681) 250,430 Fund balance at beginning of year 166,822 166,822 166,822 - Fund balance at end of year (195,289) $ (195,289) $ 55,141 $ 250,430 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 100 BUDGETARY COMPARISON SCHEDULE WEST LARAMIE CAPITAL PROJECTS FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income 1,000 $ 1,000 $ 383 $ (617) $ Total Revenues 1,000 1,000 383 (617) EXPENDITURES: General government 106,000 106,000 - 106,000 Total Expenditures 106,000 106,000 - 106,000 Excess (deficiency) of revenues over (under) expenditures (105,000) (105,000) 383 105,383 Fund balance at beginning of year 107,135 107,135 107,135 - Fund balance at end of year 2,135 $ 2,135 $ 107,518 $ 105,383 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 101 BUDGETARY COMPARISON SCHEDULE RECREATION CENTER FUND For the Year Ended June 30, 2011 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 471,500 $ 471,500 472,188 688 $ Investment income 17,848 17,848 17,287 (561) Charges for services 835,500 835,500 1,107,747 272,247 Miscellaneous 500 500 1,022 522 Total Revenues 1,325,348 1,325,348 1,598,244 272,896 EXPENDITURES: Culture and recreation 1,462,012 1,464,512 1,432,775 31,737 Capital outlay 294,000 294,000 248,803 45,197 Total Expenditures 1,756,012 1,758,512 1,681,578 76,934 Excess (deficiency) of revenues over (under) expenditures (430,664) (433,164) (83,334) 349,830 OTHER FINANCING SOURCES (USES): Transfers in 150,000 150,000 150,000 - Total Other Financing Sources (Uses) 150,000 150,000 150,000 - Excess (deficiency) of revenues over expenditures and other financing sources (uses) (280,664) (283,164) 66,666 349,830 Fund balance at beginning of year 2,871,920 2,871,920 2,871,920 - Fund balance at end of year 2,591,256 $ 2,588,756 $ 2,938,586 $ 349,830 $ Budgeted Amounts ---PAGE BREAK--- 102 STATISTICAL SECTION This part of the City of Laramie’s comprehensive annual financial report presents detailed information as a context for understanding what information in the financial statements, note disclosures, and required supplemental information says about the government’s overall financial health. Contents: Financial Trends: These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity: These schedules contain information to help the reader assess the government’s most significant local revenue sources and assessment valuations. Debt Capacity: These schedules present information to enable the reader to assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information: These schedules offer demographic and economic indicators to enable the reader to understand the environment within which the government’s financial activities take place and to help make comparisons over time and with other governments. Operating Information: These schedules contain information about the City’s operations and resources to enable the reader to understand how the City’s financial information relates to the services the City provides and the activities it performs. ---PAGE BREAK--- ---PAGE BREAK--- FINANCIAL TRENDS INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 103 NET ASSETS BY COMPONENT Last Nine Fiscal Years 2003 2004 2005 2006 Governmental activities Invested in capital assets, net of related debt 5,472,228 $ 18,074,103 $ 27,896,068 $ 38,884,805 $ Restricted 7,087,701 15,118,830 20,624,620 16,393,849 Unrestricted 29,951,832 15,956,310 10,676,405 12,941,985 Total governmental activities net assets 42,511,761 $ 49,149,243 $ 59,197,093 $ 68,220,639 $ Business-type activities Invested in capital assets, net of related debt 32,813,464 $ 32,163,926 $ 32,248,576 $ 33,540,229 $ Restricted - - - - Unrestricted 5,532,219 6,347,300 8,812,170 10,319,534 Total business-type activities 38,345,683 $ 38,511,226 $ 41,060,746 $ 43,859,763 $ Primary Government Invested in capital assets, net of related debt 38,285,692 $ 50,238,029 $ 60,144,644 $ 72,425,034 $ Restricted 7,087,701 15,118,830 20,624,620 16,393,849 Unrestricted 35,484,051 22,303,610 19,488,575 23,261,519 Total primary government 80,857,444 $ 87,660,469 $ 100,257,839 $ 112,080,402 $ * Information for years prior to 2003 is not available on accrual basis ---PAGE BREAK--- 104 2007 2008 2009 2010 2011 41,790,914 $ 33,151,731 $ 43,391,849 $ 50,125,029 $ 32,997,484 $ 12,123,210 26,639,695 27,050,432 26,075,342 47,871,169 17,141,553 21,297,756 20,516,509 21,727,591 21,377,399 71,055,677 $ 81,089,182 $ 90,958,790 $ 97,927,962 $ 102,246,052 $ 44,717,590 $ 48,455,389 $ 52,083,366 $ 57,522,786 $ 60,172,117 $ - - 317,287 779,744 779,744 13,636,224 17,791,445 15,792,004 17,585,909 22,379,158 58,353,814 $ 66,246,834 $ 68,192,657 $ 75,888,439 $ 83,331,019 $ 86,508,504 $ 81,607,120 $ 95,475,215 $ 107,647,815 $ 93,169,601 $ 12,123,210 26,639,695 27,367,719 26,855,086 48,650,913 30,777,777 39,089,201 36,308,513 39,313,500 43,756,557 129,409,491 $ 147,336,016 $ 159,151,447 $ 173,816,401 $ 185,577,071 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 105 CHANGES IN NET ASSETS Last Nine Fiscal Years 2003 2004 2005 2006 Expenses Governmental activities Executive-City Manager 272,746 $ 333,518 $ 294,968 $ 423,091 $ Administrative services 1,082,494 1,036,137 1,141,400 1,267,246 Judicial 166,637 181,413 228,351 252,871 Legal 158,289 156,539 170,165 208,313 General government 2,656,490 1,030,690 971,630 4,921,879 Police 5,245,604 5,282,636 5,603,923 6,011,027 Fire 3,141,223 4,168,394 3,898,195 4,044,488 Engineering 546,983 542,173 686,812 739,230 Highways and streets 2,622,930 3,086,582 2,851,919 3,224,586 Animal control 260,511 284,547 287,268 293,262 Mosquito control 174,234 189,281 267,391 236,620 Parks 669,115 1,990,123 1,531,303 826,351 Recreation 829,258 837,976 2,099,972 2,355,457 Cemetery 199,599 215,959 179,804 142,233 Interest on long-term debt 47,151 720,818 629,554 559,368 Unallocated depreciation 78,059 99,499 39,444 - Total general governmental activities expenses 18,151,323 20,156,285 20,882,099 25,506,022 Business-type activities Water 5,791,473 3,971,940 4,179,589 4,650,288 Waste water 2,040,308 2,451,824 2,144,033 2,485,331 Solid waste 988,950 1,611,589 1,263,774 1,513,198 Total business-type activities expenses 8,820,731 8,035,353 7,587,396 8,648,817 Total primary government expenses 26,972,054 $ 28,191,638 $ 28,469,495 $ 34,154,839 $ Program revenues Governmental activities Charges for services Police 398,661 $ 984,898 $ 1,142,112 $ 1,167,176 $ Fire 768,843 929,183 857,624 899,055 Engineering 394,766 562,974 803,746 760,946 Recreation 432,409 967,077 931,374 1,321,170 Other activities 420,284 379,712 529,752 524,960 Operating grants and contributions 706,607 1,166,295 2,034,968 1,798,893 Capital grants and contributions 530,728 753,079 470,128 390,477 Total governmental activities program revenues 3,652,298 5,743,218 6,769,704 6,862,677 Business-type activities Charges for services Water 3,430,699 5,290,909 4,126,010 5,290,909 Waste water 2,291,198 4,044,857 4,397,770 4,044,857 Solid waste 1,777,129 1,904,587 1,594,430 1,904,587 Capital grants and contributions 1,946,808 112,848 201,634 112,848 Total business-type activities program revenues 9,445,834 11,353,201 10,319,844 11,353,201 Total primary government program revenues 13,098,132 $ 17,096,419 $ 17,089,548 $ 18,215,878 $ (Continued) ---PAGE BREAK--- 106 2007 2008 2009 2010 2011 449,172 $ 349,741 $ 451,267 $ 443,020 $ 474,161 $ 1,602,031 1,614,403 1,706,795 1,683,960 1,656,587 406,871 305,086 318,626 302,052 297,656 235,608 247,994 284,098 285,520 292,007 5,063,200 5,638,682 1,393,602 6,801,990 5,462,306 6,248,176 6,686,404 7,165,048 6,885,221 6,438,464 4,231,843 4,477,800 4,901,561 5,005,985 4,969,733 891,698 1,125,564 1,020,006 1,042,825 1,013,440 3,360,767 4,758,799 5,561,309 3,878,835 3,988,560 340,783 369,047 377,798 378,571 382,283 256,408 267,558 284,303 287,767 254,118 926,471 1,565,351 1,362,942 1,003,754 1,138,147 2,363,886 2,475,019 2,737,026 2,627,080 2,539,949 187,409 231,371 272,797 278,295 314,339 482,963 532,592 388,593 330,786 561,621 - - - - - 27,047,286 30,645,411 28,225,771 31,235,661 29,783,371 4,267,022 5,133,752 5,392,790 5,135,172 5,489,684 2,417,312 2,419,977 3,349,373 2,733,250 2,586,630 2,159,998 1,802,237 2,307,135 1,835,066 2,405,080 8,844,332 9,355,966 11,049,298 9,703,488 10,481,394 35,891,618 $ 40,001,377 $ 39,275,069 $ 40,939,149 $ 40,264,765 $ 1,245,216 $ 973,372 $ 1,211,293 $ 1,244,280 $ 1,157,125 $ 987,114 987,756 1,288,042 1,046,826 1,071,644 793,637 1,270,589 937,365 690,400 748,689 1,018,092 1,257,093 1,332,157 1,345,059 1,432,498 683,902 477,259 575,108 526,555 565,138 1,120,026 1,247,624 1,234,991 1,278,612 1,220,772 2,428,705 2,199,234 2,590,527 3,803,835 3,139,098 8,276,692 8,412,927 9,169,483 9,935,567 9,334,964 5,866,751 6,428,443 5,985,899 6,166,621 7,558,798 4,284,394 4,183,500 3,797,171 4,001,808 4,769,968 1,924,591 2,075,699 2,213,056 2,218,972 2,213,178 679,048 3,874,851 1,562,303 5,466,197 4,149,406 12,754,784 16,562,493 13,558,429 17,853,598 18,691,350 21,031,476 $ 24,975,420 $ 22,727,912 $ 27,789,165 $ 28,026,314 $ ---PAGE BREAK--- 107 CITY OF LARAMIE, WYOMING CHANGES IN NET ASSETS Last Nine Fiscal Years (Continued) 2003 2004 2005 2006 Net (Expenses)/Revenue Governmental activities (14,499,025) $ (14,413,067) $ (14,112,395) $ (18,643,345) $ Business-type activities 625,103 3,317,848 2,732,448 2,704,384 Total primary government net expense (13,873,922) $ (11,095,219) $ (11,379,947) $ (15,938,961) $ General revenues and other changes in net assets Governmental activities: Taxes Property taxes 1,535,311 $ 1,677,224 $ 1,677,673 $ 1,677,224 $ Sales and use taxes 12,965,244 13,345,828 11,905,540 13,345,828 Gas and fuel taxes 452,880 531,782 565,704 531,782 Mineral and severance taxes 1,513,724 4,812,439 4,027,737 4,812,439 Franchise taxes 1,133,936 1,316,267 1,144,084 1,316,267 Investment earnings 2,022,688 918,449 1,310,429 918,449 Miscellaneous income 2,273,489 6,132,521 3,791,458 6,132,521 Transfers 303,690 365,640 303,690 365,640 Total governmental activities 22,200,962 29,100,150 24,726,315 29,100,150 Business-type activities Investment earnings 296,659 322,796 117,803 322,796 Transfers (303,690) (365,640) (303,690) (365,640) Total business-type activities (7,031) (42,844) (185,887) (42,844) Total primary government 22,193,931 $ 29,057,306 $ 24,540,428 $ 29,057,306 $ Change in net assets Governmental activities 7,701,937 $ 14,687,083 $ 10,613,920 $ 10,456,805 $ Business-type activities 618,072 3,275,004 2,546,561 2,661,540 Total primary government 8,320,009 $ 17,962,087 $ 13,160,481 $ 13,118,345 $ * Information for years prior to 2003 is not available on accrual basis ---PAGE BREAK--- 108 2007 2008 2009 2010 2011 (18,770,594) $ (22,232,484) $ (19,056,288) $ (21,300,094) $ (20,448,407) $ 3,910,452 7,206,527 2,509,131 8,150,110 8,209,956 (14,860,142) $ (15,025,957) $ (16,547,157) $ (13,149,984) $ (12,238,451) $ 1,648,015 $ 2,036,893 $ 2,091,672 $ 2,124,989 $ 2,220,558 $ 14,927,076 14,016,540 13,273,325 12,516,164 10,498,815 632,511 613,859 523,083 553,360 568,385 5,870,731 7,952,882 7,514,647 7,267,137 5,641,783 1,291,776 1,311,916 1,395,604 1,437,991 1,462,641 2,074,789 2,184,370 1,335,830 1,173,415 604,881 3,675,489 2,768,552 2,503,302 2,622,494 2,878,225 (9,966,996) (82,566) 351,625 573,716 889,073 20,153,391 30,802,446 28,989,088 28,269,266 24,764,361 769,147 603,926 (211,682) 119,385 121,694 9,966,996 82,566 (351,625) (573,716) (889,073) 10,736,143 686,492 (563,307) (454,331) (767,379) 30,889,534 $ 31,488,938 $ 28,425,781 $ 27,814,935 $ 23,996,982 $ 1,382,797 $ 8,569,962 $ 9,932,800 $ 6,969,172 $ 4,315,954 $ 14,646,595 7,893,019 1,945,824 7,695,779 7,442,577 16,029,392 $ 16,462,981 $ 11,878,624 $ 14,664,951 $ 11,758,531 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 109 FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years 2002 2003 2004 2005 General fund Reserved 396,667 $ - $ - $ 2,000,000 $ Unreserved 6,316,113 7,185,959 7,924,319 9,040,699 General fund Unspendable Restricted Committed Assigned Unassigned Total general fund 6,712,780 $ 7,185,959 $ 7,924,319 $ 11,040,699 $ All other governmental funds Unreserved - $ 662,750 $ 696,883 $ 728,133 $ Reserved Special revenue funds - - 2,000,000 - Capital project funds 1,156,132 22,641,524 13,820,590 11,775,620 Debt service funds 5,025,100 6,268,100 5,967,300 6,849,000 All other governmental funds Unspendable Restricted Committed Assigned Unassigned Total other governmental funds 6,181,232 $ 29,572,374 $ 22,484,773 $ 19,352,753 $ Notes: Amounts include the General Fund, Special Revenue Funds and Long-Term Debt Fund 2011 figures have been presented per GASB 54 ---PAGE BREAK--- 110 2006 2007 2008 2009 2010 2011 - $ - $ - $ 273,344 $ 216,861 $ 11,107,879 15,374,284 17,320,437 16,722,338 17,532,149 - 1,566,366 762,344 8,738,752 7,081,964 11,107,879 $ 15,374,284 $ 17,320,437 $ 16,995,682 $ 17,749,010 $ 18,149,426 $ 1,439,905 $ 1,671,269 $ 2,144,434 $ 1,354,294 $ 1,598,859 $ 2,002,100 2,002,100 2,217,003 11,985,111 2,285,941 7,888,749 12,115,364 16,506,692 6,237,277 8,104,774 6,503,000 6,934,400 7,916,000 8,554,700 15,467,766 2,351,692 41,675,338 2,624,604 1,564,489 - 17,833,754 $ 22,723,133 $ 28,784,129 $ 28,131,382 $ 27,457,340 $ 48,216,123 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 111 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2002 2003 2004 2005 Revenues Taxes and special assessments 1,911,211 $ 2,680,180 $ 3,281,865 $ 2,818,761 $ Licenses and permits 375,011 95,220 99,187 99,791 Intergovernmental 14,199,814 17,042,650 16,895,276 19,464,215 Charges for services 530,853 1,279,033 1,252,027 2,188,326 Fines and forfeitures 448,319 626,390 665,178 791,903 Investment income 678,131 1,967,901 (55,854) 1,345,084 Miscellaneous 134,052 354,315 1,519,264 2,275,938 Total revenues 18,277,391 24,045,689 23,656,943 28,984,018 Expenditures General government 2,037,302 3,221,142 3,222,399 3,422,278 Public safety 7,748,430 8,212,728 8,225,138 9,107,839 Health and welfare 401,177 413,595 434,485 520,424 Highways and streets 1,362,312 1,117,240 981,869 1,156,094 Culture and recreation 1,360,074 1,547,779 1,466,266 2,589,132 Capital outlay 2,756,178 3,741,222 12,702,924 9,590,549 Debt service funds Interest 470,242 1,722,298 2,009,188 2,107,776 Principal 35,269 378,598 726,497 646,525 Total expenditures 16,170,984 20,354,602 29,768,766 29,140,617 Excess of revenues over (under) expenditures 2,106,407 3,691,087 (6,111,823) (156,599) Other financing sources (uses) Proceeds from borrowing 741,000 20,162,133 - - Transfers to component unit Transfers in 697,713 303,690 4,130,760 2,254,474 Transfers out (417,591) - (4,368,179) (2,246,884) Total other financing sources (uses) 1,021,122 20,465,823 (237,419) 7,590 Net change in fund balance 3,127,529 $ 24,156,910 $ (6,349,242) $ (149,009) $ Debt service as a percentage of noncapital expenditures 3.77% 12.65% 16.03% 14.09% *For years after 2005, the capital outlay is included in the respective department ---PAGE BREAK--- 112 2006 2007 2008 2009 2010 2011 9,853,869 $ 8,024,372 $ 7,055,700 $ 7,141,166 $ 6,583,085 $ 5,454,187 $ 102,389 104,249 126,360 112,886 113,372 123,415 17,885,383 21,808,588 23,284,671 22,895,468 23,506,467 20,359,491 1,541,310 1,653,256 1,986,657 2,903,739 2,600,337 2,740,288 769,563 850,506 621,184 839,015 909,716 809,983 1,031,573 2,109,599 2,120,216 1,192,450 1,058,041 523,217 1,220,635 1,029,642 1,434,977 197,070 282,435 753,825 32,404,722 35,580,212 36,629,765 35,281,794 35,053,453 30,764,406 14,683,043 8,863,131 8,184,686 10,487,975 5,763,060 5,633,974 10,184,880 12,077,557 11,914,975 13,624,951 12,619,988 11,951,238 523,565 1,153,186 611,290 675,244 672,768 654,926 1,741,642 3,563,194 3,445,097 5,388,971 2,326,744 2,107,127 3,011,694 2,017,109 3,194,597 4,198,920 3,357,077 2,999,408 - - - - 7,785,194 6,629,482 1,973,994 2,295,794 2,350,784 2,750,447 2,714,668 3,054,295 599,651 557,395 550,194 438,169 365,572 741,862 32,718,469 30,527,366 30,251,623 37,564,677 35,605,071 33,772,312 (313,747) 5,052,846 6,378,142 (2,282,883) (551,618) (3,007,906) - 1,881,764 268,861 1,000,777 74,753 23,316,032 1,590,939 3,180,792 2,958,986 4,861,623 2,001,478 1,809,073 (1,242,849) (2,832,702) (2,964,722) (4,509,702) (1,457,762) (958,000) 348,090 2,229,854 263,125 1,352,698 618,469 24,167,105 34,343 $ 7,282,700 $ 6,641,267 $ (930,185) $ 66,851 $ 21,159,199 $ 11.69% 11.53% 10.39% 12.31% 11.07% 13.99% ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 113 GENERAL GOVERNMENT EXPENDITURE BY FUNCTION Last Ten Fiscal Years Highways Fiscal Year City Manager Legal Finance Engineering and Streets 2002 174,071 $ 152,341 $ 823,571 $ 223,444 $ 1,362,312 $ 2003 283,699 158,290 503,000 262,283 1,117,240 2004 339,253 156,537 510,704 257,224 981,869 2005 303,027 170,164 536,984 349,813 1,156,094 2006 423,091 208,313 586,829 385,659 1,741,642 2007 449,172 241,512 684,987 460,403 2,286,273 2008 349,602 244,835 745,443 667,827 3,445,097 2009 449,821 284,103 801,595 574,918 3,212,981 2010 445,618 284,654 809,833 680,869 3,053,782 2011 468,929 285,933 722,096 522,674 2,971,960 Other General Health and Fiscal Year Municipal Court Accounts Cemetery Welfare Planning 2002 134,638 $ 2,038,751 $ 200,786 $ 401,177 $ 579,442 $ 2003 166,750 2,264,300 182,763 413,595 176,059 2004 178,048 3,103,582 196,554 434,485 138,469 2005 226,819 5,111,141 164,063 520,424 190,990 2006 252,871 2,398,642 142,233 523,565 351,939 2007 406,871 2,316,489 175,313 1,153,186 266,485 2008 297,660 2,323,968 219,708 611,290 420,144 2009 319,526 2,748,833 525,083 675,244 312,719 2010 301,450 2,617,021 310,159 780,132 259,539 2011 295,856 3,317,634 344,381 767,516 234,961 Notes: Includes General, Special Revenue and Debt Service funds. Other general accounts include expenditures for Other general government, City Council, insurance, printing, professional and consulting and social services Includes Police and Fire Departments, Emergency Management Health and Welfare includes Animal Control and Mosquito control Culture and Recreation includes park and recreation ---PAGE BREAK--- 114 Culture and Recreation Public Safety 1,360,074 $ 7,748,430 $ 1,449,957 8,218,791 1,466,117 8,412,937 2,589,132 9,219,394 2,986,261 10,184,880 3,239,643 12,077,557 3,137,561 11,914,975 3,884,382 13,624,951 3,046,918 12,929,936 3,242,320 11,666,301 Debt Service Total 505,521 $ 15,704,558 $ 902,925 16,099,652 321,064 16,496,843 320,612 20,858,657 178,877 20,364,802 459,468 24,217,359 508,156 24,886,266 812,821 28,226,977 671,004 26,190,915 712,301 25,552,862 ---PAGE BREAK--- ---PAGE BREAK--- REVENUE CAPACITY INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 115 GENERAL GOVERNMENT REVENUES BY SOURCE Last Ten Fiscal Years Special Licenses and Intergovernmental Charges for Fiscal Year Taxes Assessment Permits Revenue Services 2002 1,840,464 $ 5,918 $ 375,011 $ 14,192,277 $ 523,520 $ 2003 2,638,932 664 95,220 11,975,607 1,274,096 2004 2,671,112 4,433 99,187 12,965,286 1,252,027 2005 2,709,050 2,091 99,791 15,816,083 2,187,945 2006 2,972,126 2,674 102,389 17,656,794 1,541,310 2007 2,927,794 2,383 104,249 19,432,485 1,653,256 2008 3,220,809 3,673 126,360 21,427,709 1,986,657 2009 3,368,276 - 112,886 20,729,105 2,903,739 2010 3,502,980 - 113,372 20,049,209 2,600,337 2011 3,560,439 - 123,415 17,781,925 2,740,288 Notes: Includes General, Special Revenue and Debt Service fund type. ---PAGE BREAK--- 116 Fines and Interest and Forfeits Miscellaneous Total 448,319 $ 683,416 $ 18,068,925 $ 626,390 1,646,737 18,257,646 665,178 582,918 18,240,141 791,903 430,286 22,037,149 769,563 2,172,789 25,217,645 850,506 2,011,510 26,982,183 621,184 2,942,664 30,329,056 839,015 1,169,031 29,122,052 909,716 1,164,342 28,339,956 809,983 986,683 26,002,733 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 117 TAX REVENUE BY SOURCE Last Ten Fiscal Years General Automobile Franchise Fiscal Year Total Taxes Property Taxes Taxes Taxes Sales Tax 2002 9,470,173 $ 842,537 $ 367,566 $ 630,361 $ 6,518,587 $ 2003 10,944,646 975,123 530,520 1,133,936 7,203,008 2004 11,623,971 1,003,426 429,611 1,242,491 7,637,713 2005 11,830,507 1,141,507 423,460 1,144,083 7,598,184 2006 12,892,829 1,309,218 346,641 1,316,268 8,362,138 2007 14,271,824 1,244,938 393,463 1,291,776 8,553,231 2008 14,198,145 1,480,345 432,209 1,311,916 9,341,454 2009 13,510,787 1,563,275 409,388 1,395,605 8,717,960 2010 13,552,399 1,625,138 439,851 1,437,991 8,579,965 2011 12,789,620 1,671,868 425,930 1,462,641 7,688,215 Note: Includes one percent optional sales tax. ---PAGE BREAK--- 118 Use Tax Cigarette Tax Gasoline Tax 503,041 $ 153,227 $ 454,854 $ 499,348 149,831 452,880 618,249 148,747 543,734 825,991 131,578 565,704 889,635 137,136 531,793 2,043,588 112,317 632,511 900,205 118,157 613,859 782,078 119,397 523,084 806,287 109,807 553,360 863,901 108,680 568,385 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 119 DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Fiscal Year City of Laramie/Albany County State of Wyoming 2002 2.00% 4.00% 2003 2.00% 4.00% 2004 2.00% 4.00% 2005 2.00% 4.00% 2006 2.00% 4.00% 2007 2.00% 4.00% 2008 2.00% 4.00% 2009 2.00% 4.00% 2010 2.00% 4.00% 2011 2.00% 4.00% Note: For fiscal years 2002 through 2011, an optional specific purpose tax of 1% was imposed. - The One Percent Optional General Purpose Tax and the One Percent Optional Specific Purpose Tax may be changed only with the approval of the voters in the County. Source: State of Wyoming, Department of Revenue ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 120 PRINCIPAL SALES TAX REMITTERS Current Year and Nine Years Ago Rank Remitter Type of Business 1 Wal-Mart Stores Inc. Retail 2 Pacificorp Financial Services Inc. Utilities (Power) 3 University of Wyoming University 4 Source Gas Distribution LLC Utilities (Gas) 5 Verizon Wireless LLC Communcations 6 K-Mart Corporation Retail 7 TA Operating Inc. Travel Plaza 8 Ranch and Home Supply LLC Retail 9 Laramie GM Auto Center Inc. Vehicle Sales 10 Safeway Stores 46 Inc. Grocery Rank Remitter Type of Business 1 Wal-Mart Stores Inc. Retail 2 Safeway Stores 46 Inc. Grocery 3 Albertson's Inc. Grocery 4 K-Mart Corporation Retail 5 Pacificorp Financial Services Inc. Utilities (Power) 6 University of Wyoming University 7 Kinder Morgan Inc. Utilities (Gas) 8 Qwest Corporation Communications 9 Petro Stopping Center Travel Plaza 10 North Ridge Discount Liquors Inc. Retail Source: State of Wyoming, Department of Revenue Fiscal Year 2011 Fiscal Year 2002 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 121 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Assessed Estimated Assessed Estimated Fiscal Year Value Actual Value Value Actual Value 2002 109,536,648 $ 1,153,017,347 $ 5,933,511 $ 62,458,011 $ 2003 116,503,018 1,226,347,558 6,628,682 69,775,600 2004 126,719,624 1,333,890,779 6,949,629 73,153,989 2005 134,634,400 1,417,204,211 7,699,235 81,044,579 2006 150,260,250 1,581,686,842 7,968,708 83,881,137 2007 162,723,707 1,712,881,126 8,208,466 86,404,905 2008 187,545,559 1,974,163,779 8,908,353 93,772,137 2009 196,444,119 2,035,617,794 7,256,055 75,787,278 2010 198,021,160 2,049,176,466 7,690,632 80,933,394 2011 203,440,680 2,102,123,168 6,672,549 69,909,531 Notes: In general, property is assessed in Wyoming by county assessors working under the supervision of the Wyoming tax commission. Source - Albany County Assessor Real Property Personal Property ---PAGE BREAK--- 122 Ratio of Total Assessed Value Assessed Estimated to Estimated Value Actual Value Actual Value 115,470,159 $ 1,215,475,358 $ 9.50 123,131,700 1,296,123,158 9.50 133,669,253 1,407,044,768 9.50 142,333,635 1,498,248,789 9.50 158,228,958 1,665,567,979 9.50 170,932,173 1,799,286,032 9.50 196,453,912 2,067,935,916 9.50 203,700,174 2,111,405,072 9.50 205,711,792 2,130,109,860 9.50 210,113,229 2,172,032,699 9.50 Total ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 123 PROPERTY TAX RATES AND TAX LEVIES – DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years Debt Service Fiscal Year General Fund Fund Total School District County 2002 8.00 - 8.00 35.00 13.94 2003 8.00 - 8.00 35.00 13.94 2004 8.00 - 8.00 35.00 13.94 2005 8.00 - 8.00 35.00 14.00 2006 8.00 - 8.00 34.00 14.00 2007 8.00 - 8.00 33.00 14.00 2008 8.00 - 8.00 32.00 14.00 2009 8.00 - 8.00 32.00 14.00 2010 8.00 - 8.00 32.00 14.00 2011 8.00 - 8.00 32.00 14.00 2002 923,761 $ - $ 923,761 $ 4,041,456 $ 1,609,654 $ 2003 923,777 - 923,777 4,041,526 1,609,682 2004 1,013,757 - 1,013,757 4,678,424 1,863,349 2005 1,265,832 - 1,265,832 5,538,014 2,215,205 2006 1,367,457 - 1,367,457 5,811,694 2,393,050 2007 1,500,364 - 1,500,364 6,189,003 2,625,638 2008 1,626,656 - 1,626,656 6,506,624 2,846,648 2009 1,629,601 - 1,629,601 6,518,406 2,851,802 2010 1,645,741 - 1,645,741 6,582,963 2,880,046 2011 1,680,906 - 1,680,906 6,723,623 2,941,585 Notes: The Wyoming Constitution limits the mil levy for the General Fund to eight mils, not including debt service requirements. There is no limit on the mil levy for current debt service requirements. First half taxes are due November 10th and second half taxes are due May 10th after which they become delinquent. No discounts are allowed on taxes and an 11% penalty is imposed on delinquent taxes. Property upon which taxes are delinquent is advertised and sold in the following year. Property is assessed by the County Assessor and taxes are collected by the County Treasurer. 100% of taxes levied by the City which are collected are remitted. A fee of ½% of taxes collected is paid annually by the City to the County for tax collection services. TAX LEVIES ---PAGE BREAK--- 124 Downtown Hospital Development State District District Total 12.00 3.00 - 71.94 12.00 3.00 - 71.94 12.00 3.00 - 71.94 12.00 3.00 - 72.00 12.00 3.00 - 71.00 12.00 3.00 - 70.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 1,385,642 $ 346,410 $ - $ 8,306,923 $ 1,385,666 346,416 - 8,307,067 1,604,031 401,008 - 9,560,569 1,898,747 474,687 - 11,392,485 2,051,186 512,797 - 12,136,184 2,250,547 562,637 - 13,128,189 2,439,984 609,996 - 14,029,908 2,444,402 611,101 - 14,055,312 2,468,611 617,153 - 14,194,514 2,521,359 630,340 - 14,497,813 Notes: Source - Albany County Assessor Mil levy only applied to property in a specified business district. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 125 PRINCIPAL TAXPAYERS CURRENT YEAR AND NINE YEARS AGO June 30, 2011 Percentage of 2010 Total Assessed Assessed Taxpayer Type of Business Value Valuation 1 COCO (WY) Inc. School 1,906,719 $ 0.91% 2 Hilton Garden Inn Hotel 1,570,366 0.75% 3 Gladstone Investment Co. Apartments 1,066,414 0.51% 4 Wal-Mart Real Estate Business Retail 1,182,328 0.56% 5 Campus Habitat 15 LLC Apartments 937,818 0.45% 6 Timberline Hospitalities, LLC Hotel 761,926 0.36% 7 Bed Company of Wyoming, Inc. Hotel 660,392 0.31% 8 Mountain West Farm Bureau Office 705,414 0.34% 9 Laramie Hotel Associates, LLC Hotel 461,710 0.22% 10 University of WY, Trustees Apartments 516,687 0.25% 9,769,774 $ 4.65% Percentage of 2001 Total Assessed Assessed Taxpayer Type of Business Value Valuation 1 Union Pacific Railroad Company Industrial 8,970,391 $ 7.77% 2 Mountain Cement Co. Manufacturing 4,918,003 4.26% 3 Wal-Mart Stores, Inc. Retail 1,367,293 1.18% 4 MJB Acquisition Corp., a Wyoming Company Technical School 608,135 0.53% 5 Michael K. Schutte Commercial Rental 543,040 0.47% 6 True Ranches Agriculture 421,761 0.37% 7 Laramie Plains Properties Rental 378,271 0.33% 8 Beneson Capital Retail 348,432 0.30% 9 WY Plaza, LC Commercial Rental 338,058 0.29% 10 Petro PSC Properties, L.P. Commercial Property 328,511 0.28% 18,221,895 $ 15.78% Source - Albany County Assessor ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 126 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Current Tax Percent of Levy Delinquent Tax Total Tax Fiscal Year Total Tax Levy Collections Collected Collections Collections 2002 842,599 $ 803,324 $ 95.3 56,781 $ 860,105 $ 2003 923,777 862,918 93.4 112,205 975,123 2004 1,013,757 970,150 95.7 28,843 998,993 2005 1,139,669 936,426 82.2 52,457 988,883 2006 1,265,832 1,210,503 95.6 98,715 1,309,218 2007 1,367,457 1,314,926 96.2 45,109 1,360,035 2008 1,500,364 1,445,066 96.3 39,245 1,484,311 2009 1,626,656 1,547,648 95.1 61,179 1,608,827 2010 1,629,601 1,553,918 95.4 72,320 1,626,238 2011 1,655,372 1,602,642 96.8 68,636 1,671,278 - 2009 2010 2011 Levy Year Collections Collections Collections 1999 & Prior 8,293 $ - $ - $ 2000 41 31 - 2001 140 72 1 2002 142 121 1 2003 83 93 (20) 2004 358 82 9 2005 1,165 [PHONE REDACTED] 2,657 21,[PHONE REDACTED] 48,300 3,[PHONE REDACTED] - 46,946 2,741 2009 - - 65,162 Total 61,179 $ 72,320 $ 68,636 $ Notes: Source - Albany County Treasurer Delinquent Tax Collections ---PAGE BREAK--- 127 Percent of Percent of Total Tax Outstanding Delinquent Collections to Delinquent Taxes to Tax Tax Levy Taxes Levy 102.1 35,671 $ 4.2 105.6 71,890 7.8 98.5 57,945 5.7 86.8 149,786 13.1 103.4 30,187 2.4 99.5 52,531 3.8 98.9 68,584 4.6 98.9 84,550 5.2 99.8 92,876 5.7 101.0 73,714 4.5 ---PAGE BREAK--- ---PAGE BREAK--- DEBT CAPACITY INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 128 COMPUTATION OF LEGAL DEBT MARGIN – GENERAL OBLIGATION End of Fiscal Year 2010-2011 Assessed value 210,113,229 $ Debt limit 4% of assessed value 8,404,529 Total amount of debt applicable to debt limit 8,110,000 Legal debt margin 294,529 $ Total Net Debt Applicable to Total Debt Amount Limit as a Applicable To Percentage of Fiscal Year Debt Limit Debt Limit Legal Debt Margin Debt Limit 2002 4,618,806 - 4,618,806 0.00% 2003 4,925,268 - 4,925,268 0.00% 2004 5,346,770 - 5,346,770 0.00% 2005 5,693,345 - 5,693,345 0.00% 2006 6,329,158 - 6,329,158 0.00% 2007 6,837,287 - 6,837,287 0.00% 2008 7,858,156 - 7,858,156 0.00% 2009 8,148,007 - 8,148,007 0.00% 2010 8,228,472 - 8,228,472 0.00% 2011 8,404,529 8,110,000 294,529 96.50% ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 129 COMPUTATION OF LEGAL DEBT MARGIN - SEWER End of Fiscal Year 2010-2011 Assessed value 210,113,229 $ Debt limit - Double 4% of assessed value 16,809,058 Total amount of debt applicable to debt limit 5,933,500 Legal debt margin 10,875,558 $ Total Net Debt Applicable to Total Debt Amount Limit as a Applicable To Percentage of Fiscal Year Debt Limit Debt Limit Legal Debt Margin Debt Limit 2002 9,237,612 - 9,237,612 0.00% 2003 9,850,536 - 9,850,536 0.00% 2004 10,693,540 - 10,693,540 0.00% 2005 11,386,690 - 11,386,690 0.00% 2006 12,658,316 - 12,658,316 0.00% 2007 13,674,574 - 13,674,574 0.00% 2008 15,716,312 - 15,716,312 0.00% 2009 16,296,014 - 16,296,014 0.00% 2010 16,456,944 - 16,456,944 0.00% 2011 16,809,058 5,933,500 10,875,558 35.30% ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 130 COMPUTATION OF DIRECT AND OVERLAPPING DEBT End of Fiscal Year 2002 2003 2004 Overlapping Net Debt Outstanding Albany County School District One 5,725,000 $ 4,910,000 $ 3,755,000 $ Percentage applicable to City 59.44% 59.44% 59.44% City's Estimated Share of Overlapping Debt 3,402,940 2,918,504 2,231,972 Overlapping Net Debt Outstanding Albany County Jail/Communications Center 375,000 - - Percentage applicable to City 59.44% 59.44% 59.44% City's Estimated Share of Overlapping Debt 222,900 - - City Direct Debt - - - Total Direct and Overlapping Debt 3,625,840 $ 2,918,504 $ 2,231,972 $ Note: Source - Albany County Treasurer ---PAGE BREAK--- 131 2005 2006 2007 2008 2009 2010 2011 2,840,000 $ 1,910,000 $ 965,000 $ - $ - $ - $ - $ 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% 1,688,096 1,135,304 573,596 - - - - - - - - - - - 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% - - - - - - - - - - - - - - 1,688,096 $ 1,135,304 $ 573,596 $ - $ - $ - $ - $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 132 RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years General Total Obligation Notes Capital Governmental Fiscal Year Bonds Payable Leases Activities 2002 - 10,296,269 861,851 11,158,120 2003 - 10,000,000 19,785,153 29,785,153 2004 - 10,248,382 17,527,584 27,775,966 2005 - 10,223,853 15,685,862 25,909,715 2006 - 10,197,698 13,758,675 23,956,373 2007 - 10,169,810 13,379,589 23,549,399 2008 - 10,140,074 11,327,402 21,467,476 2009 - 10,108,367 9,609,312 19,717,679 2010 - 10,074,558 6,939,673 17,014,230 2011 22,300,000 10,038,509 4,476,666 36,815,175 Governmental Activities ---PAGE BREAK--- 133 Total Total Percentage Revenue Notes Capital Business-Type Primary of Personal Bonds Payable Leases Activities Government Income Per Capita 4,240,000 17,841,757 64,602 22,146,359 33,304,479 4.19% 1,224.25 4,040,000 17,181,546 3,376,777 24,598,323 54,383,476 6.46% 1,999.10 3,815,000 15,398,424 2,923,501 22,136,925 49,912,891 5.65% 1,851.64 3,590,000 14,798,803 2,453,722 20,842,525 46,752,240 5.00% 1,768.17 3,360,000 13,974,888 2,016,008 19,350,896 43,307,269 4.51% 1,637.88 3,110,000 13,222,972 1,536,844 17,869,816 41,419,215 4.18% 1,566.48 2,850,000 12,868,715 1,038,598 16,757,313 38,224,789 3.62% 1,405.12 4,625,000 10,499,848 818,682 15,943,530 35,661,209 3.16% 1,310.88 4,235,000 11,017,669 217,355 15,470,024 32,484,254 2.73% 1,194.10 3,850,000 10,492,314 133,082 14,475,396 51,290,571 4.04% 1,885.41 Business-Type Activities ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 134 RATIO OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years General Bonded Debt Fiscal Year Outstanding Per Capita 2002 - $ - $ 2003 - - 2004 - - 2005 - - 2006 - - 2007 - - 2008 - - 2009 - - 2010 - - 2011 14,043,500 456 Includes General and Debt Service Funds (GO debt includes Street, Solid Waste and Sewer principal only) 2) Taxable property includes real and personal 3) Census population of City of Laramie 2010- 30,816 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 135 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Ratio of Debt Service to Total Debt Total General General Fiscal Year Principal Interest Service Expenditures Expenditures 2002 - $ - $ - $ 14,963,558 $ 0.00% 2003 - - - 16,061,582 0.00% 2004 - - - 16,237,272 0.00% 2005 - - - 21,791,731 0.00% 2006 - - - 20,364,802 0.00% 2007 - - - 24,217,359 0.00% 2008 - - - 24,886,266 0.00% 2009 - - - 28,226,977 0.00% 2010 - - - 27,356,987 0.00% 2011 157,438 28,794 186,233 25,552,862 0.73% Notes: Includes General and Debt Service Funds (GO debt includes Street, Solid Waste and Sewer) Includes General, Special Revenue and Debt Service Funds Tax Supported Debt ---PAGE BREAK--- ---PAGE BREAK--- DEMOGRAPHIC AND ECONOMIC INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 136 DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Date of Incorporation: December 12, 1873 Form of Government: Council-Manager Total Per Capita Personal Median Unemployment Fiscal Year Income Income Age Rate % Enrollment 2002 27,204(7) $ 24.989(2) $795,661,000 26.7 2.2 3,790 2003 27,204(7) 36,639(2) 841,571,000 26.7 1.8 3,659 2004 26,956(6) 27,998(2) 882,802,000 26.7 1.7 3,639 2005 26,441(6) 29,810(2) 935,936,000 28.6 3.0 3,559 2006 26,441(6) 30,524(2) 961,022,000 30.3 2.9 3,485 2007 26,441(6) 30,810(2) 991,318,000 26.8 3.0 3,491 2008 27,204(6) 28,077(2) 1,055,684,000 26.7 2.4 3,507 2009 27,204(6) 24,339(3) 1,129,523,000 25.3 2.5 3,544 2010 28,138(3) 24,339(3) 1,191,322,000 25.3 4.1 3,579 2011 30,816(3) 22,238(3) 1,270,947,000 25.4 5.1 3,587 Sources: Wyoming Department of Education 2003 Census. Bureau of Labor Statistics, Albany County figures (10) Wikipedia Population Wyoming Department of Administration and Fiscal Control, Wyoming Population & Employment Forecast Report Wyoming Employment Security Commission, fourth quarter average wage for covered employment, Albany County figures. U.S. Bureau of Census. Population of Laramie includes University of Wyoming students. Wyoming Employment Security Commission, Research and Analysis, Albany County figures. State of Wyoming Department of Administration and Information Division of Economic Analysis. U.S. Commerce Department - Bureau of Economic Analysis, 2009 Albany County figures ---PAGE BREAK--- 137 Education Number of Centers Teachers Area (10) 15 329 11 Sq. Miles 15 331 11 Sq. Miles 15 330 11 Sq. Miles 15 332 17.7 Sq. Miles 18 331 17.7 Sq. Miles 18 316 17.7 Sq. Miles 19 317 17.7 Sq. Miles 19 322 17.7 Sq. Miles 19 318 17.7 Sq. Miles 19 323 17.7 Sq. Miles(3) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 138 MAJOR EMPLOYERS IN ALBANY COUNTY Current Year and Nine Years Ago Percentage of Total City Rank Employer Type of Business Employees Employment 1 University of Wyoming University 5,341 30.17% 2 Albany County School District #1 Education 566 3.20% 3 Albany County Hospital District Healthcare 490 2.76% 4 Wal-Mart Stores, Inc. Retail 400 2.26% 5 City of Laramie Municipal Government 320 1.81% 6 TA Operating LLC Filling Stations - Gas 300 1.69% 7 MJB Acquisition Corp, Inc. (WyoTech) Education 250 1.41% 8 Albany County Local Government 237 1.34% 9 ARK Regional Services Individual/Family Services 200 1.13% 10 Mountain Cement Company Manufacturing 121 0.68% Total 8,225 46.45% Percentage of Total City Rank Employer Type of Business Employees Employment 1 University of Wyoming University 4,975 28.09% 2 Albany County School District #1 Education 901 5.09% 3 Ivinson Memorial Hospital Healthcare 470 2.65% 4 Albany County Local Government 366 2.07% 5 Wyoming Technical Institute Education 355 2.00% 6 City of Laramie Municipal Government 277 1.56% 7 Wal-Mart Stores, Inc. Retail 275 1.55% 8 Foster's, Inc. Hotel 205 1.16% 9 ARK Regional Services Individual/Family Services 159 0.90% 10 Rocky Mountain Forest Products Manufacturing 132 0.75% Total 8,115 45.82% Source Laramie Economic Development Corporation Fiscal Year 2002 Fiscal Year 2011 ---PAGE BREAK--- OPERATING INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 139 FULL-TIME EQUIVALENT CITY OF LARAMIE EMPLOYEES AND OTHER OPERATING STATISTICS Last Ten Fiscal Years Fiscal Total City Administrative General Year Employees Manager Services Judicial Legal Government Fire Police 2002 236.5 3.0 8.0 2.0 - 62.0 45.0 80.0 2003 236.5 3.5 9.0 2.0 - 66.1 43.0 80.0 2004 239.0 3.5 8.0 3.0 - 66.1 43.0 80.0 2005 241.0 4.0 10.0 3.0 - 60.1 43.0 78.5 2006 249.5 5.0 12.5 3.0 - 64.1 42.0 78.5 2007 264.5 5.0 13.5 4.0 3.0 67.5 42.0 81.0 2008 267.3 4.7 14.0 4.0 3.5 69.8 43.0 79.8 2009 274.3 4.7 15.0 4.0 3.5 69.3 46.0 79.8 2010 279.3 4.7 15.0 4.0 3.5 72.3 48.0 78.8 2011 273.3 4.7 14.5 3.5 3.0 76.3 51.0 77.8 Budgeted Full-Time Equivalent City Government Employees by Function Per City of Laramie Budget Book ---PAGE BREAK--- 140 Building Number Number Code & Highways Parks & Miles of Number of Permits of Fire of Police Engineering & Streets Recreation Streets Street Lights Issued Stations Stations 8.0 15.0 13.5 138 1,002 1,468 2 1 8.0 11.4 13.5 140 1,010 1,803 2 1 8.0 10.9 16.5 142 1,012 1,765 2 1 10.0 10.9 21.5 142 1,012 1,978 2 1 11.0 10.9 22.5 143 1,013 1,790 2 1 12.0 12.0 24.5 150 1,035 1,556 2 1 12.0 12.0 24.5 166 1,040 1,787 2 2 12.5 13.0 26.5 166 1,040 2,064 2 1 12.5 13.0 27.5 170 1,110 1,740 3 1 10.0 13.0 19.5 172 1,115 1,652 3 1 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 141 CAPITAL ASSET STATISTICS Last Ten Fiscal Years Acres of Estimated Feet of Feet of Landfill Fiscal Number of Daily Water Water Sewer Capacity Number of Number of Year Customers Consumption Lines Lines Used Parks Libraries 2002 7,633 7,200,000 955,680 712,800 2.7 15 1 2003 7,789 7,200,000 1,017,979 748,089 2.9 15 1 2004 7,805 7,200,000 1,017,979 748,089 3.1 15 1 2005 7,815 7,200,000 1,017,979 748,089 2.8 15 1 2006 7,865 7,200,000 1,075,688 748,089 2.7 15 1 2007 8,165 4,020,607 1,154,436 860,640 2.5 15 1 2008 8,162 5,010,027 1,156,742 860,640 3.0 15 1 2009 8,600 5,500,000 1,161,600 897,600 4.8 16 1 2010 8,652 5,711,850 1,162,300 898,300 5.2 16 1 2011 8,929 5,253,000 1,165,349 900,300 3.9 16 1 Municipal Water Department Per City of Laramie Public Works Department ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 142 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years Number of Number of Fiscal Year Units Value Units Value 2002 10 4,400,620 $ 75 8,927,034 $ 2003 13 12,375,751 44 9,513,385 2004 13 11,410,003 48 9,215,708 2005 14 10,558,698 52 9,852,369 2006 17 14,225,563 63 10,125,421 2007 18 47,176,236 89 13,304,588 2008 19 45,718,713 122 12,391,155 2009 16 45,985,059 105 13,450,080 2010 16 18,852,715 82 12,837,650 2011 6 26,601,606 122 16,167,744 Notes: City of Laramie Community Development Department www2.fdic.gov/sod - Albany County totals Albany County Assessor estimated actual values Commercial Construction Residential Construction ---PAGE BREAK--- 143 Bank Deposits (Thousands) Property Value 311,247 $ 1,215,475,358 $ 327,518 1,296,123,158 336,100 1,407,044,768 347,799 1,498,248,789 351,488 1,665,567,979 377,405 1,799,286,032 385,112 2,067,935,916 451,665 2,111,405,072 476,280 2,049,176,466 491,633 2,102,123,168 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 144 INSURANCE IN FORCE End of Fiscal Year 2010-2011 Policy Number From To Casualty Insurance: Wyoming Association for Risk Management - an intergovernmental Risk Sharing Pool None 7/1/2010 6/30/2011 Property: Driver Alliant Insurance Services All risk of direct physical loss or damage 7/1/2010 6/30/2011 Earthquake 7/1/2010 6/30/2011 Flood 7/1/2010 6/30/2011 Police Professional Liability Policy: Compass Insurance Company Type of Coverage and Name of Company ---PAGE BREAK--- 145 Liability Limits Annual Premiums Scheduled exposure, general liability, automobile liability, $250,000 per claimant 159,788 $ watercraft liability, public officials errors and omissions liability, personal injury liability, civil rights liability and sudden accidental pollution Per occurrence and annual aggregate 500,000,000 $ Per occurrence and annual aggregate 25,000,000 $ Per occurrence and annual aggregate 25,000,000 $ 68,101 $ Personal injury, bodily injury, property damage due to $250,000 each person Policy carried and paid negligent acts, errors and omissions of law enforcement $500,000 each accident for by Wyoming officers Department of Administration and Fiscal Control pursuant to W.S. 9-712-10, 1957 Details of Coverage ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 146 SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS For Fiscal Year Ended June 30, 2011 Name and Title of Official Annual Salary Amount of Surety Bond Janine Jordan City Manager $108,722 $10,000 blanket coverage Malea Brown Administrative Services Director $106,309 $50,000 Scott A. Mullner Mayor and President $120 per meeting attended None of City Council David C. Clark City Attorney $91,666 $10,000 Tony Lopez Municipal Judge $52,270 $10,000 All other employees N/A $10,000 blanket coverage ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 147 ANNUAL BUDGET PROCESS Step Date 1 Mid-December Six month budget worksheets, five year capital and equipment schedules distributed to Department Heads. 2 Last week of Five year capital and equipment requests and schedules are due from Department January Heads. 3 Mid-February Operating budget worksheets and forms are due from Department Heads. 4 First week of March Review five year capital and equipment requests and schedules with City Council. 5 March City Manager, Assistant City Manager, and Director of Administrative Services meet with Department Heads to review the budget requests. 6 Third week of April Tentative budget by departmental total presented to City Council. 7 First week of May Detailed working budget is distributed to City Council. 8 Second week of May Budget work sessions with City Council, City Manager and Assistant City Manager. 9 First Sunday in June Publish budget summary. 10 Third Tuesday in June Conduct public hearing on proposed budget. 11 Third Tuesday in June Adoption of the final budget by City Council. 12 End of September Final budget is printed and distributed. ---PAGE BREAK---