Document Laramie_doc_c6dc41d0cc

CITY OF LARAMIE, WYOMING FINANCIAL REPORT June 30, 2008 ---PAGE BREAK--- ---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 11-29 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets 30 Statement of Activities 31-32 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet 33 Reconciliation of the Balance Sheet to the Statement of Net Assets- Governmental Funds 34 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds 35 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities- Governmental Funds 36 Proprietary Fund Financial Statements Statement of Net Assets- Proprietary Funds 37-38 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds 39 Statement of Cash Flows- Proprietary Funds 40-41 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets 42 Statement of Changes in Fiduciary Net Assets 43 Notes to Basic Financial Statements 44-72 ---PAGE BREAK--- C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A Index to Illustrative Required Supplementary Information 73 Police Officer and Firemen’s Pension Fund Funding Progress Schedule 74 Budgetary Comparison Schedule- Major Funds General Fund 75-76 Notes to Required Supplementary Information- Budgetary Comparisons 77 D. COMBINING FINANCIAL STATEMENTS Non-Major Governmental Funds Combining Balance Sheet Other Governmental Funds 78-79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds 80-81 E. SUPPLEMENTAL INFORMATION Budgetary Comparison Schedules Non-Major Governmental Funds Specific Purpose Tax Fund 82 Wyoming Territorial Prison Debt Service Fund 83 Economic Development Fund 84 Emergency 911 Fund 85 City Council Construction Fund 86 Parks and Recreation Construction Fund 87 West Laramie Capital Projects Fund 88 Recreation Center Fund 89 III. STATISTICAL SECTION 90 A. FINANCIAL TRENDS INFORMATION Net Assets by Component 91-92 Changes in Net Assets 93-96 Fund Balances, Governmental Funds 97-98 Statement of Revenues, Expenditures, and Changes in Fund Balance- Governmental Funds 99-100 General Government Expenditure by Function 101-102 B. REVENUE CAPACITY INFORMATION General Government Revenues by Function 103-104 Tax Revenue by Source 105-106 Assessed and Estimated Actual Value of Taxable Property 107-108 ---PAGE BREAK--- Property Tax Rates and Tax Levies-Direct and Overlapping Governments 109-110 Principal Taxpayers 111 Property Tax Levies and Collections 112-113 C. DEBT CAPACITY INFORMATION Computation of Legal Debt Margin – General Obligation 114 Computation of Direct and Overlapping Debt 115-116 Ratio of Outstanding Debt by Type 117-118 Ratio of General Bonded Debt Outstanding 119 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 120 D. DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 121-122 Major Employers in Albany County 123 E. OPERATING INFORMATION Full-Time Equivalent City of Laramie Employees and Other Operating Statistics 124-125 Capital Asset Statistics 126 Property Value, Construction and Bank Deposits 127-128 Insurance in Force 129-130 Salaries and Surety Bonds of Principal Officials 131 Annual Budget Process 132 ---PAGE BREAK--- 1 December 1, 2008 To the Honorable Mayor, City Council, City Manager, and Citizens of Laramie, Wyoming Introduction We hereby submit the Comprehensive Annual Financial Report (CAFR) of the City of Laramie for the fiscal year ended June 30, 2008 in compliance with state law. State law requires that a CAFR be published within six months of fiscal year end and be audited in accordance with generally accepted auditing standards by independent certified public accountants. There are exceptions to this requirement based on revenue received by the governmental entity. Responsibility for both the accuracy of the data and the reliability of the information contained in these reports, including all disclosures rests with the City’s management. The reports and materials in this report are presented in a manner that fairly sets forth the financial position and results of operations for the City of Laramie. The City’s financial statements were audited by Mader Tschacher Peterson & Co., LLC, and a firm of independent certified public accountants. The independent audit provides reasonable assurance that the financial statements of the City of Laramie, Wyoming for the fiscal year ended June 30, 2008 are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the disclosures and information in the financial statements and evaluating the overall financial statement presentation. The independent auditors have issued an unqualified opinion on the City of Laramie financial statements for year ended June 30, 2008 which is fairly presented in conformity with the Governmental Accounting Standards Board, located at the front of the financial section of this report. In order to meet the Government Financial Officers Association Certificate (GFOA) requirements, this annual report must provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to compliment the MD&A and should be read in conjunction with the MD&A. The City of Laramie’s MD&A is located in the financial section immediately following the independent auditor’s report and preceding the basic financial statements. Profile of Government The City of Laramie, Wyoming, has a population of 27,204 and is located in Albany County, the south-east corner of Wyoming. Laramie sits at an elevation of 7,200 feet and is home to the University of Wyoming. The City was named after the trapper, Jacques la Ramie, who built a cabin at the junction of the Laramie and Platte Rivers. In 1866 the route for a transcontinental railroad was selected and as it approached the Laramie area, railroad employees and tradesmen began arriving. In the spring of 1868, Union Pacific Railroad’s chief surveyor, General Grenville Dodge selected the Laramie town site and its name, ---PAGE BREAK--- 2 Laramie City. The Railroad began selling lots in April of that year. On May 9th, the line through Laramie was completed with the first train arriving the next 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. City Services 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, street maintenance, mosquito control, water, sewer, and garbage collection and disposal. The 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 fiscal year end and incomplete projects must be re-appropriated in the next fiscal year as part of the annual budget adoption process. The City did not exceed legally adopted budget appropriations during the 2007-2008 fiscal year. Accounting Systems and Internal Controls The City’s governmental and fiduciary fund types are maintained on the modified accrual basis of accounting. Revenues are recorded when measurable and available, expenditures are recorded when the goods or services are delivered and liabilities are incurred. The City’s enterprise and internal service funds are also maintained on the accrual basis of accounting. Management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived. Valuation of costs and benefits requires that estimates and judgments be made by management to protect city funds. All internal control evaluations have been made within the framework described above. We believe the City’s internal accounting controls meet the material standards for audit adequately and safeguard the City’s assets, providing reasonable assurance that financial transactions are properly reported. Cash The City strives to maximize interest income on cash assets for the benefit of the public. The City, through the office of the Director of Administrative Services, pursues a cash ---PAGE BREAK--- 3 management and investment program to achieve maximum financial return on available funds. Depending on cash needs, excess funds are invested on a short, intermediate, or long-term basis at best obtainable rate. Investments are limited generally to direct or indirect obligations of the U.S. government and fully collateralized repurchase agreements. The City utilizes the practice of recording investment income in the period in which it is earned. Cash in all City funds is pooled and invested in the state managed Local Government Investment Pool or short term instruments which are restricted to investments approved by the State Treasurer in accordance with Wyoming Statutes. Risk Management In fiscal year 2008, the City was insured for general liability through a risk pool comprised of cities and counties in Wyoming and managed through the Wyoming Association of Risk Management (WARM). WARM is a joint-powers liability pool that provides comprehensive general liability and automotive liability coverage to the City of Laramie, WY according to the Wyoming State Statues, W.S. 1-39-118. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Laramie, Wyoming operates. The State of Wyoming primarily relies on its natural resources, federal land management, and tourism as revenue for the state. Laramie benefits from these opportunities since it is located in the southeast region of Wyoming, nestled in the states 5th largest county, Albany. The City of Laramie is host to the University of Wyoming, Wyoming Technical Automotive School, and Albany County Community College. These educational resources provide the city with a temporary population of 16,000 annually. The top four primary employers for the Laramie region are the University of Wyoming, Albany County School District, Ivinson Memorial Hospital, and Albany County. Local Economy Nationally, the recent financial and credit turbulence has clearly diminished the economic growth in the U.S. As the national economy is weakened further, the Cowboy State’s job market growth continued a pace of deceleration for the second quarter of 2008. However, compared to the second quarter 2007, employment in Wyoming increased by 8,090 jobs or 2.8 percent, still the fastest in the nation. The state unemployment rate tipped up to 2.9% in the quarter, while nationally it climbed to 5.3 percent in the U.S. for the same period. Wyoming’s employment growth was spread out across many industries with construction leading with a growth of 2,130 jobs, or 8.1 percent. Albany County is nestled in rural southeast Wyoming and Laramie holds 85% of the population of the entire county. In June 2008 the Wyoming Department of Employment statistics state Albany County’s labor force had the average employment off by 0.9 percent from the 2007 average of 18,224. This decline amounted to 158 workers. The county’s unemployment rate averaged 2.4 percent over the current quarter. This was a fractional decline of 0.1 percent from second quarter 2007’s average rate of 2.5 percent. Although the state’s economy is currently dominated by strong gains in the energy and construction industries, Albany County lacks these resources. For the state nearly half of sales in 2008 occurred in mining (including oil and gas extraction) and retail trade industries. The City revenues are based largely on Wyoming economic factors and tax collection. The 1st quarter of 2008 the Use Tax and Sales tax collections declined in Albany County specifically in the Wholesale and Retail tax collection by These small declines ---PAGE BREAK--- 4 were from the first to second quarter, but they were not of significant magnitude to generate concern. Despite the slowdown in certain sectors, annual sales tax collections in Albany County increased by the 2nd quarter 2008 by 4.8%. This includes the 4% Sales and 4% Use Tax, the 1% Sales and 1% Use Tax, the Out of State Use Tax, and the Out of State Sales Tax. As of July 1, 1993, the state sales and use tax levy was changed from 3% to All fiscal measures posted solid annual increases from comparable 2007 figures, second quarter to second quarter. Most importantly, actual tax receipts to local governmental entities rose 6.1 percent from this time one year ago, but remained 12.3 percent behind second quarter 2006. Receipts from the 4% Lodging Tax were up by 20 percent from one year ago and 43 percent from two years ago. This series also posted a 31 percent increase from first to second quarter 2008. These gains can be attributed to the addition of 700 new hotel rooms over the past 18 months to the existing motel/hotel base of 1,800 rooms. Long Term Financial Planning City of Laramie council and management are working on several long-term plans that will ensure a positive and productive environment. Through a number of council supported programs, the City of Laramie intends to improve economic factors for the citizens and businesses of Laramie. Priorities include protecting City buildings and employee work environments through the general fund budget of $3.2 million in capital outlays, including almost $1.5 million in public works improvements. Renovation of the City Annex building is planned for the upcoming year to reconfigure workspaces for staff in community development and public works departments. Additionally, Chlorine generation facilities will be installed at two City well sites and at the treatment plant, eliminating the threat to life, health, and safety factors to employees and citizens posed by storage and use of chlorine gas. These upgrades to the physical working environment have direct impact upon the morale and productivity of the workforce. The largest single project within our Capital Fund is construction of the new Fire Station #3 to be located on Highway 130 Snowy Range Road. The city was awarded a grant from the State Lands and Investment Board of $3.1 million toward this $4.6 million project. Project costs include site improvements adjacent to the facility in the West Laramie area. Infrastructure enhancement and replacement of sewer and water lines remain a priority for the City of Laramie, committing improvements through 2012. Several storm drainage studies have been funded. The Public Works department is working with the Wyoming Water Development Commission (WWDC) to complete a number of studies assessing the integrity of the existing water provision system, and identifying potential future needs for expansion to accommodate development and outlying user groups. The city will conduct a water and sewer rate study that draws upon the recent system analyses to determine how best to structure rates. The goal of this study is to 1) Improve on capital plan to repair and upgrade existing infrastructure needs, 2) system expansion in tandem with community growth, and 3) look at a positive tier rate structure that would encourage conservation. Design for the long planned raw water pipeline will be completed with construction slated for FY 2010. This pipeline will eliminate evaporative ditch losses and increase the volume of water to the water treatment plant by roughly 1.85 million gallons per day. The City has ---PAGE BREAK--- 5 obtained grant and loan funding that has been secured through the Wyoming Water Development Commission (WWDC) to secure construction funding. The Solid Waste Department is developing a plan to comply with the legislation passed by the 2006 Wyoming Legislature requiring operators of Wyoming’s existing landfills to prepare a 20-year integrated solid waste management plan. The purpose of this plan is to identify and evaluate a combination of waste management options that complement each other, and provide a cost-effective and environmentally sound solution to waste management issues. This funded mandate has brought together the Cities of Laramie, Cheyenne and the Eastern-Laramie County Solid Waste Disposal District to hire an outside agency to investigate regional improvement opportunities and develop an integrated management plan for the entities. The investigation and planning phase is underway with completion and submission of the Integrated Solid Waste Management Plan (ISWMP) to the Wyoming Department of Environmental Quality expected by July 1, 2009. Business growth is a priority in preserving our City’s downtown history. The Laramie Main Street Program mission is to foster the economic and social vitality of downtown Laramie, while accentuating its unique heritage. The to downtown Laramie will be marked by attractive refurbished streets that will guide residents and visitors to the historic commercial district. 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, 2007. This was the 31st 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. 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, and the City Manager and Assistant City Manager for their leadership and support in developing this CAFR. Malea Brown Administrative Services Director ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- Mader Tschacher Peterson & Co., LLC Certified Public Accountants & Consultants 9 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, 2008, 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, 2008, 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 17, 2008, 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 The management’s discussion and analysis and budgetary comparison information on pages 11 through 29 and 82 through 89, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of 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 tables 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 have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken 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 1, 2008 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 11 The City’s discussion and analysis is based on the City’s financial activities for the fiscal year ended June 30, 2008. 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 $147.3 million. There is $39.1 million in unrestricted net assets ($21.3 in Governmental Activities and $17.8 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 FY08, the City’s governmental activities net assets increased ($8.6 million while the business-type activities net assets increase $7.9 million compared to FY07. The City’s total net assets increased by $16.5 million for the current fiscal year. • At fiscal year-end the City’s total governmental funds, combined, ending fund balances reported were $46.1 million. There was $11.8 million for capital projects within the Specific Purpose tax fund and $9.0 million for Non-Major funds such as E911 and Recreation Center. The Debt Service fund has a restricted balance of $7.9 million which is monies to be used to pay for Wyoming Territorial Park debt. There is $19.5 million of unrestricted fund balance in the General and Special Revenue funds which can be spent at City discretion or used to maintain operating reserve levels. • While the State Legislature once again provided a two-year commitment, 2008 and 2009, for one-time over the cap severance tax monies, it did not give additional local governments a raise in tax portions above the caps set for state shared revenue to cities. In 2008, the City received funding of $5,990,118 which was used to address key capital projects, purchase equipment and supplement operations. The State did change the law to allow local entities to have their electors vote for an additional 7 cent sales tax penny to raise more tax dollars at the local level. This cent can either be a general option or specific purpose tax penny which is tied to capital projects. • The City’s debt decreased in total by $3.3 million. In the governmental funds, debt decreased by $2.2 million. Two small leases were added this year totaling $268,861. The majority of debt reduction was from Specific Purpose tax debt payments totaling $1.9 million which is funded by additional sales tax penny collections. The Business-Type funds decreased in total by $1.1 million. There was one additional loan from the Wyoming Water Development Commission for $524,682. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 12 City Highlights • FY08, the Recreation Center sold 4,297 recreation memberships in all, which includes 2,577 individual and household-annual memberships, 186 six-month memberships, and 1,534 multiple-passes. A total of 169,716 individuals used the recreation facility, over a 6% increase in the past year, which is an average of 471 visits per day. The Recreation Center is supported by a $2.2 million dollar recreation endowment where interest earned is used to support operations. • Council adopted the Comprehensive plan for the community on August of 2007. Laramie’s comprehensive plan is an official document adopted by city council as a broad statement of public policies to guide decisions about the physical, social and economic development of a community. Laramie's Plan covers all areas within the City limits, and includes a vision for the City's One Mile jurisdiction. In the summer of 2007, the city started on a complete rewrite and consolidation of its subdivision and zoning ordinances into a single “unified development code”. The existing subdivision and zoning regulations are codified in Titles 15, 16, and 17 of Laramie Municipal Code, which were originally adopted in 1964. • In May 2008 the City Council adopted the 2007 update of the Casper Aquifer Protection Plan (CAPP). CAPP is an aquifer protection program for the City of Laramie and Albany County. Collaboratively, both agencies developed a MOU to hire consultants, Wittman Hydro Planning Associates. The plan assesses our current ideology and ordinances and their ability to sufficiently protect the aquifer. The purpose of the CAPP is to protect the recharge area of the Casper Aquifer which supplies all of the water to approximately 400 rural residences in Albany County and on an annual basis approximately 60% of Laramie's water supply. The CAPP is being implemented through the Aquifer Protection Plan Overlay (APO) zoning district, which was adopted by an ordinance. The APO establishes additional development standards and criteria for new projects located within the aquifer protection area to minimize risks and potential impacts from new development. • The Fire department hired a temporary in-house project manager, to lead a team in the design and construction of a new fire station. The Project Manager is tasked with a $4.5 million dollar multi-year project on managing site location, street and drainage, architectural design, development zoning, multi-agency planning, conceptual design, facilitating community meetings and final construction on Fire House station 3. A SLIB (State Land & Investment Board) grant has been obtained for $3,175,000 for the design & construction of the project. • The Public Works department created a new project manager position to streamline and assist in long-term project development. The Public Works department has a substantial amount of projects based on the deteriorating and aging infrastructure combined with a previous lack of available funding ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 13 and resources. By creating one centralized source, the Project Manager, for all projects from all divisions under Public Works, the cumulating projects will be addressed. The project manager will need to prioritize projects with a realistic completion time period, due to Laramie’s short construction season, and monitor compliance with source of funding through grants and loans. 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 30-32) 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 Management Discussion & Analysis (Required Supplementary information) Pages 11-29 Governmental –wide financials Pages 30-32 Fund financial statements Pages 33-43 Notes to the financial statements Pages 44-72 Required supplementary information (other than MD&A) Pages 73-77 MD&A Basic Financial Statements Other Required Supplementary Information ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 14 Net Assets and the Statement of Activities, the City services are reported into two kinds of activities: • Governmental activities – This includes most of the City Services including police, fire, streets, parks & recreation, public works, and administrative 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 the customer 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 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 15 only apply to the Governmental and Enterprise funds. All other non-major funds are aggregated into one column. 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 presented a summary reconciliation to the government-wide financial statements (see pages 34 and 36). 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 also should 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, 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 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 16 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. Fiduciary Funds Fiduciary funds should be used to report assets that are held in a trustee or agency capacity for others and that 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 theses 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 are 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 ANALYSIS JUNE 30, 2008 17 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 FY08 FY07 FY08 FY07 FY08 FY07 Current and other assets $ 52,275 $ 44,029 $ 19,379 $ 16,053 $ 71,654 $ 60,082 Capital assets 54,619 55,340 66,660 62,587 121,279 117,927 Total assets 106,894 99,369 86,039 78,640 192,933 178,009 Long-term liabilities 22,227 24,367 18,384 19,422 40,611 43,789 Other liabilities 3,578 3,956 1,408 865 4,986 4,821 Total liabilities 25,805 28,323 19,792 20,287 45,597 48,610 Net assets: Investment in capital assets 33,152 41,791 48,455 44,717 81,607 86,508 (net of related debt) Restricted 26,639 13,596 - - 26,639 13,596 Unrestricted 21,298 17,132 17,792 13,636 39,090 30,768 Total net assets $ 81,089 $ 72,519 $ 66,247 $ 58,353 $ 147,336 $ 130,872 The City’s combined net assets totaled $147.3 million as of June 30, 2008. The governmental activities net assets were $81.1 million and business-type activities net assets were $66.2 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 18% of the City’s net assets represent resources that are restricted and may not be used. Another $81.6 million or 55% is used for investment in capital assets. A balance of $39.0 million is unrestricted and may be used to meet obligations to creditors or citizens. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 18 Table 2 Changes in Net Assets (In Thousands) Governmental Activities Business -Type Activities Total Primary Government FY08 FY07 FY08 FY07 FY08 FY07 REVENUES Program revenues: Charges for Services $ 4,966 $ 4,728 $ 12,687 $ 12,076 $ 17,653 $ 16,804 Operating grants and contributions 1,248 1,120 - - 1,248 1,120 Capital grants and contributions 2,199 2,429 3,875 679 6,074 3,108 General revenues: Property Tax 2,037 1,648 - - 2,037 1,648 Sales, Use and Gas Tax 14,630 15,560 - - 14,630 15,560 Other Taxes 9,265 7,162 - - 9,265 7,162 Investments Income 2,184 2,075 604 767 2,788 2,842 Miscellaneous 2,769 3,675 - - 2,769 3,675 Total revenues 39,298 $ 38,397 $ 17,166 $ 13,522 $ 56,464 $ 51,919 EXPENSES Program Activities Primary Government: Governmental Activities: General Administration $ 349 $ 449 $ - $ - $ 349 $ 449 Administrative Services 1,614 1,602 - - 1,614 1,602 Judicial and Legal 553 643 - - 553 643 General Government 5,639 5,063 - - 5,639 5,063 Police 6,686 6,248 - - 6,686 6,248 Fire 4,478 4,232 - - 4,478 4,232 Engineering 1,125 892 - - 1,125 892 Highways & Streets 4,759 3,361 - - 4,759 3,361 Animal Control 369 341 - - 369 341 Mosquito Control 267 256 - - 267 256 Parks & Recreation 4,041 3,290 - - 4,041 3,290 Cemetery 232 187 - - 232 187 Interest Costs 533 483 - - 533 483 Business-type Activities: Water - - 5,134 4,267 5,134 4,267 Waste Water - - 2,420 2,417 2,420 2,417 Solid Waste - - 1,802 2,160 1,802 2,160 Total expenses $ 30,645 $ 27,047 $ 9,356 $ 8,844 $ 40,001 $ 35,891 Increase in net assets before transfers 8,653 11,350 7,810 4,678 16,463 16,028 Transfers (83) (9,967) 83 9,967 - - Change in net assets 8,570 1,383 7,893 14,645 16,463 16,028 Net asset beginning – (Restated) 72,519 71,136 58,354 43,709 130,873 114,845 Net asset ending $ 81,089 $ 72,519 $ 66,247 $ 58,354 $ 147,336 $ 130,873 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 19 Governmental activities increased the City’s net assets by approximately $8.6 million. This was primarily the result of increased revenues such sales and use taxes, one-time supplemental funding from over the severance cap, and sales tax revenue from the additional penny supporting Specific Purpose Tax projects (SPT) (See disclosure note 4D). In addition, several projects were delayed waiting on study results including downtown lighting, Fox Theater abatement, street and drainage project for the West Laramie Fire Station totaling over $4.8 million. Business-type activities increased the City’s net assets by $7.9 million. Rate increases in the wastewater and solid waste funds have been implemented to increase program revenue to fund operating and maintenance costs as well as to build capacity fore either cash or debt funded infrastructure projects. In addition, the City received an increase in grant funding for water and wastewater projects. The monies received were from the State Land and Investment Board and Business Council for the mainlift station and A-line and sewer outfall projects. Several projects were delayed including on site Chlorine Generation and City Springs sand and seal trap totaling approximately $1.3 million. 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. 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. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 20 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. The City’s governmental funds (presented on the balance sheets, see page 33) reported a combined fund balance of $46.1 million, approximately 21% increase in comparison with the prior year. Approximately 43% or $19.5 million constitutes unreserved fund balance which is available for spending at the City’s discretion. The remainder of the fund balance $26.6 million is reserved to indicate that it is not available for new spending because it has already been committed to pay for capital construction projects, recreation center endowment, and 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 Governmental fund also includes non-major funds which are detailed on pages (78-81). At fiscal year end, the unreserved fund balance for the general fund was $17.3 million, while the total governmental fund balance was $19.5 million. This additional unreserved fund balance contributes to the special revenue funds which includes E911 and economic development. The City continues to benefit from revenues received for projects funded through the specific purpose tax. In 2008, the expenditures were spent for the waterline and reconstruction of Adams Street. Other non-bonded projects which are continuing include Downtown Streetscape phase 2 and an additional street construction project. Downtown streetscape was delayed because of downtown street lighting electrical issues. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 21 In Fiscal year 07-08, The City gave a 3.5% cost of living raise to general employees and negotiated with the fire union 4.0% raises. The CIP index for the southeast Wyoming economy in fourth quarter 2007 was 3.4%. The second quarter in 2008, rose to 6.9% for the southeast region. After the adoption this year of the 2007 Laramie Comprehensive plan, a complete rewrite and consolidation of a single “unified development code” is overdue. The intent of a new unified development code is to create a single document that is easy to read, follow, understand and address incompatible land uses within the City. The new unified development code will also codify and implement several concepts identified in the 2007 Laramie Comprehensive Plan, such as enhanced development standards. The Unified development code is projected to be adopted in the summer of 2009. The City decided to add two project managers; one for Public Works to oversee major infrastructure projects and a Fire division project manager to lead in the design and construction of a new fire station. In addition, part time support was added in Human Resources, Park and Recreation and Information Technology. The General fund balance increased by $8.0 million from Fiscal Year 2007 to Fiscal year 2008. Key factors in this increase are: • There was additional cash & cash equivalents for Specific Purpose Tax for trust accounts in receipt of the one cent tax totaling approximately $2.8 million. • A restricted investment (zero coupon bond) increased amortization totaling $982,000 for the Wyoming Territorial Park service date payment due in 2014. • The Recreation Center had additional donations for the Recreation Center Endowment ($214,903) and Recreation Scholarship Fund ($59,243). • The Emergency E911 fund had an additional $283,304 in fund balance as a capital project to replace dispatch consoles was delayed. • Many capital projects were delayed including West Laramie Drainage plan, downtown electrical code compliance, West Laramie Fire station street and drainage project to name a few totaling approximately 1.5 million. • Sales and use tax revenues collections and one-time supplemental severance taxes received were over projections for approximately $560,000. • There were numerous operating dollars for goods and services delayed which monies we most likely be re-budgeted into next year. This included delays such as energy audit, street reconstruction, streets storage building, fire station bay floor remediation, etc., totaling approximately 1.2 million. • The City policy in fund balance is to have at least three month reserves to assist in the operation and meet cash flow demands. As costs rise, the reserve balance will have to meet the obligation. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 22 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: FY08 FY07 FY08 FY07 Police Department $ 6,686 $ 6,248 $ 5,068 $ 4,355 Fire 4,478 4,232 3,059 3,115 Highways and Street 4,759 3,361 4,759 3,361 Parks & Recreation 4,040 3,290 2,358 1,722 Administrative Services 1,614 1,602 1,614 1,602 General Government 5,639 5,063 3,625 2,465 Engineering 1,126 892 (145) 98 Other 2,303 2,359 1,894 2,053 Totals $ 30,645 $ 27,047 $ 22,232 $ 18,771 Business-Type Funds Operating revenues for the Business-Type activities were $11.6 million and expenses for the City’s Business-Type activities were $8.4 million. There was an increase in net assets of $7.9 million after non-operating and transfer adjustments. This was due to rate increases and additional grants received for capital projects, such as, Mainlift station and replacement lines. The City’s business funds (presented on the statement of net assets pages 37-38) reported a combined net asset balance of $66.2 million. The net assets by fund were: water $44.6 million, waste water $18.9 million and solid waste $2.7 million. Unrestricted net assets for the propriety funds were $16.3 million. The unrestricted-by-fund amounts were water $7.6 million, waste water $6.9 million and solid waste $1.8 million. As with the governmental funds, the propriety funds received a cost of living increase of 3.5% in Fiscal year 2008. 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 waterline replacement fee was not increased for this year. The base fee remained $4.08 per month. The revenue generated from the line replacement fee is specifically used for water line replacement. This year, there was over $1.4 million dollars allocated for line replacements of which only part (approximately $413,000) was funded from revenue generated from waterline replacement fees. A major rehabilitation project, Thornburgh Street, was one of several replacements done this year. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 23 The Water related projects were very active. Projects included the sand seal trap construction at City Springs to remove solids for the water supply and improve hydraulic performance of the water supply at that site. Other projects included the design of the on- site chlorine generation facilities at Spur Well and the Wye (which also disinfects the water supply without need to store chlorine) and the repair of the Dowlin Ditch headwall takeout at the Laramie River. Two projects received level 11 Wyoming Water Development Commission (WWDC) assistance where WWDC provides grant and loan monies towards projects. This included beginning design of a raw water pipeline to provide piped flows from the Laramie River to the Water Treatment plant. Also funded was a multi-faceted project to provide for water modeling of the potable water system, to study aquifer storage and recharge at Spur Well and to review locations to provide enhanced water supply to the area south of town. Rates were not increased for the Water Fund. Meter charges for base fees are assessed by meter size varying from $13.14 to $699.94 per month. The average residential meter for a three-quarter inch meter is $13.14 per month. Flow rates per thousand units remained the same as the previous year. The flow rate (inside city limits) for water consumption is $2.21 per 1,000 gallons per month. The flow rate (outside city limits) remains the same at $2.76 per 1,000 gallons per month. The Wastewater fund remains stable and had a rate increase effective August 2007. The rate increase was to keep up with inflationary factors. The Wastewater fund increased base and flow charges for residential and commercial customers by 3.5%. The base rate was increased $0.34 per month, from $9.49 per month to $9.83 per month. The residential flow rate increase from $2.14 per 1,000 gallons to $2.22 per 1,000 gallons. The commercial flow rate was also increased approximately 3.3% from $0.063/25 mg/1 (milligrams per liter) BOD (Biological Oxygen Demand) in excess of 200/mg/1 to $0.063/25mg/1 BOD in excess of 200/mg/1. The structure of commercial rates is based on the business type and the type of waste above residential strength that enters the wastewater system. Commercial accounts have a unique class code based on business type such as restaurants, office buildings, and schools to name a few classifications. Several sanitary sewer projects occurred this year. Several pipeline projects begun including Spring Creek Outfall, Adams Street and the A-Line Outfall. The Spring Creek project replaced approximately 2,200 feet of 18” sanitary sewer line from existing undersized line. Additionally, work occurred at the Main Lift station to replace all vital components of that station. There was approximately $4.2 million approved for sewer line and reconstruction projects. Wyoming Department of Environmental Quality did a ground water study based on EPA regulations that determined some Wyoming landfills are leaking. To properly monitor potential leaking and groundwater contamination, ground water monitoring wells were installed at the Laramie landfill. At the landfill, a new program began to collect and accept e-waste. The State of Wyoming is continuing to review the cost effectiveness of regionalizing landfills. Landfills still may be facing EPA federal regulations to reline with leachate collection and treatment. While the Solid Waste fund remains steady rate increases were imposed on both the collection and landfill charges. The fund increased collection rates by 3.5% with a base ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 24 increase of $0.35 per household. This increased the residential fee to $10.17 per month. The landfill fees were increased from $3.00 per month to $3.11. 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 75 to 77). The differences between the original budget and the final amended budget fund balance were $563,995 for the General Fund. This included a General Fund transfer to the Capital Funds totaling $88,500. Several police grants were awarded after the budget totaling $181,633 in a budget amendment included both additional revenue and expenses. General Fund: • General: General fund appropriations transfer to the Council Construction Fund for construction projects funded with invested supplemental monies in the General Fund now require being transferred to the capital fund as projects are progressing ($88,500). This included Highway 287 beautification project ($68,500) and ($20,000) to reestablish a more natural winding route to the Laramie River at Baxter railroad tie plant. • Other Governmental: An amendment was authorized for ($5,900) to establish budget for utility and telephone expenses related to the transfer of ownership of the Laramie Technical Building. Two Outside agencies requested additional funding in fiscal year 2008. The Laramie Regional airport requested a total of ($49,744) to pay for various fees (plan review, tap, water and sewer plant investment fees) to assist with the new business manufacturing facility. In addition, the City of Laramie, University of Wyoming and Laramie Regional Airport board entered into a Memorandum of Understanding to share costs related to the acquisition of easement and construction of a new sewer line known as the Laramie Regional Sanitary Sewer Trunk line. The City’s cost share was ($187,000). The Downtown Clinic secured a community block grant to purchase and remodel a building so they can continue to provide primary care to low income residents of Albany County. They requested additional monies to fund the building and plan review fees ($3,450). • Legal & Judicial: The Municipal Court office changed their payment process to allow court fines to be paid on debit and credit cards which required an additional authorization to pay for credit card fees ($3,000). • Fire: Council approved December 24th 2007 as an additional holiday which impacts the fire contract holiday pay ($8,000). The fire contract changed from paying for travel transports to meal allowances for transports which was inadvertently left out of the budget process ($7,185). • Police: The police department applied and was awarded several police grants after the budget was adopted. These grants assisted in overtime costs, salaries, ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 25 operating supplies and training. Some of the grants awarded were HIDTA, BVP (Bullet proof vest), and Drug Recognition. The total expenditures were offset by grant revenues totaling ($181,633). The Police Dispatch has authorization to over hire due to the high attrition rates for dispatchers. This year a budget amendment was required for additional salary cost ($18,464). • Engineering & Code: A new vehicle was approved by Council for the Code Health inspector but was inadvertently left out of the budget ($11,119). Significant variances between budget and actual activity are summarized as follows: • The Fire department under expended its budget by $772,051. There was a command vehicle ($95,000) and a fire engine ($430,000) which were delayed due to the timing of grants that would be used to supplement the purchase. In addition, the bay floor remediation was delayed due to waiting on a engineer study. Other operation accounts were under including repair and maintenance for vehicles and equipment. • The Street division under Public Works has budget for capital projects and equipment purchases which were delayed including a storm water separator and a salt and sand storage building. There was also a delay in some of the overlay street work. Therefore, their budget was unexpended by $785,111. • The Engineering and Code divisions were under expended by $826,281. This was mainly caused by the shared concrete program in which the program was under spent by $354,000. This program was in the development stage and is to assist citizens in sharing the price (50/50) program in replacement for sidewalks. In addition, there was turnover within engineering which caused significant salary savings. The Code division had a delay in purchasing and implementing a new software permitting process. • The Other governmental funds consist of many divisions and were unexpended by $429,533. The main savings were caused by salary savings from turnover, projects being delayed and an outside agency expenditure for the Laramie Regional Airport board budgeted higher than actual authorization from Council which had a total savings of $68,350. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of the year, the City had $121.3 (net of accumulated depreciation) million invested in a variety of capital assets, as reflected in the following schedule. This represents a net increase (addition, deductions, and depreciation) of $3.4 million or 2.9% from the end of last year. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 26 Table 4 Capital Assets (Net of Depreciation, In Thousands) Governmental Business-Type Activities Activities Total FY08 FY07 FY08 FY07 FY08 FY07 Land $ 1,267 $ 1,036 $ 3,358 $ 3,358 $ 4,625 $ 4,394 Water Rights - - 88 88 88 88 Building 19,912 20,420 16,028 16,600 35,940 37,020 Improvements other than buildings 2,804 2,360 41,989 37,643 44,793 40,003 Furniture & Equipment 3,609 3,709 3,947 4,274 7,556 7,983 Infrastructure 26,581 27,680 - - 26,581 27,680 Construction in Progress 446 135 1,250 624 1,696 759 Total $ 54,619 $ 55,340 $ 66,660 $ 62,587 $ 121,279 $ 117,927 This year major additions include projects still under Construction in Progress (in thousands) • Sewer Outfall – Spring Creek $ 672 • Sewer Outfall - Cedar $ 515 • Sand & Seal Trap $ 226 • Waterline/Street Reconstruction- Adams $ 222 • Waterline Replacement $ 118 • Greenbelt Bike path – Grand Ave $ 97 • West Laramie Fire Station $ 96 • Chlorine Generator $ 94 More detailed information about the City’s capital assets is presented in Note 3.D. of the financial statements. Debt Outstanding At year-end the City had $41.5 million in bonds, notes, and lease obligations compared to $43.4 million last year. This is a 4.4% decrease – as shown in Table 5. In the Governmental funds $11.7 million in debt pertained to capital projects, which are funded with the additional penny specific purpose tax. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 27 Table 5 Outstanding Debt at Year End (In Millions) Governmental Business-Type Activities Activities Total FY08 FY07 FY08 FY07 FY08 FY07 Revenue bonds and notes (backed by Specific purpose tax, fee revenues and zero coupon) $ - $ - $ 2.9 $ 3.1 $ 2.9 $ 3.1 Capital lease Obligations 11.3 13.4 1.0 1.5 12.3 14.9 Contractual Obligations 10.1 10.2 12.9 13.3 23.0 23.5 Total $ 21.4 $ 23.6 $ 16.8 $ 17.9 $ 38.2 $ 41.5 In the Governmental funds the City incurred two additional equipment leases. This included leasing a road grader and street sweeper. Both leases were for three years, the road grader was for $149,346 with a 4.36% interest rate and the street sweeper was for $119,515 with a 4.47% interest rate. 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 $686,679. 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 $403,053. The semi-annual lease payment ranges from $56,683 to $56,079, including interest rate at 5.15% to June 2012. The debt from specific purpose tax lease purchases and issuance for capital projects was reduced by payments totaling $1.9 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 debt decreased by approximately $2.2 million. 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 $12.2 million. There was one addition this year within the business-type funds for additional monies totaling $524,682 which is a 2.5% secured WWDC loan for the Main Lift Station project. This project is still in progress and annual payments will be determined upon completion of the project and final loan amount. In addition, a lease purchase agreement balance of $1.0 million remains for the lease for radio-read meters used by City utilities. This lease purchase agreement is being paid off by registering low flow water consumption and is scheduled to be paid off in November 2009. The City has one revenue bond for refinancing of water projects with a balance of $2.9 million. The rating by Standard & Poor’s for this project was ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 28 More detailed information about the City’s long-term debt is presented in Note 3.F on pages 61 to 65 of the basic financial statements. ECONOMIC FACTORS The State of Wyoming, by constitution, does not have a state personal income tax and therefore the state 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. Wyoming Business council funded $1.3 million to the Laramie Wastewater Transmission System Expansion or A-Line project. This project assisted the city with expanding the wastewater collection system and was originally based on the study completed by the Turner Tract Development study in 2006. The City expansion accommodated the rapid growth of construction that came to a pinnacle in 2008. This development was both residential and commercial, with three new hotels, new restaurants, a convention center at the University of Wyoming hotel and retail center, and the residential Turner Tract housing developed. A Memorandum of Understanding (MOU) was agreed upon between the University of Wyoming, the City of Laramie, and Wyoming Department of Transportation (WDOT) to review transportation and parking locally and regionally. Upon completion of the study, a new transit system was put in place to lessen demands on parking with adjacent neighborhoods. The new transit system is free and open to the public. Over two-thirds of the students, faculty and staff (approximately 6,888) commute daily from parking lots and utilize the campus shuttle system. As a result of the development in construction, receipts from the 4% Lodging Tax were up by 20 percent from one year ago and 43 percent from two years ago. This series also posted a 31 percent increase from first to second quarter 2008. These gains can be attributed to the addition of 700 new hotel rooms over the past 18 months to the existing motel/hotel base of 1,800 rooms. In 4th quarter 2007, Wyoming’s total personal income increased 6.8% compared to a year earlier. Total personal income for the Rocky Mountain region increased 6.5% during the same period. The statewide average weekly wage for the 4th quarter 2007 was $815 ($42,830 annually), an increase of 7.1% over the 4th quarter in 2006. Unemployment in Wyoming increased 3.2% in June 2008 but remained below the Mountain region and nationally The southeast region of Wyoming (where Laramie is located) consumer price index for 2008 was 6.9 percent which was the lowest regional inflation rate in the state but was higher than the national CPI index rate of 5.0 percent. The Wyoming Comparative Cost of Living Index for 2008 put Laramie at a 97 percent indices. That places Laramie (within Albany County) below for a comparative cost of living within the state. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2008 29 In the 2008 fiscal year, the State legislature provided additional funding of $5.9 million to Laramie. These monies from the State continue to fund capital projects and maintain the level of services but do not assist with long-term funding issues. In FY08 the sales tax per capita for Laramie was $181 per person which is well below the average capital state per capita of $445. The legislature distribution method for supplemental funding does provide some aid to the lower per capita income cities within the state. 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, 2007. 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 31 consecutive years (fiscal years 1977-2007). 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--- 30 CITY OF LARAMIE, WYOMING STATEMENT OF NET ASSETS June 30, 2008 Governmental Business-Type Activities Activities Total ASSETS Cash 15,493,552 $ 12,571,554 $ 28,065,106 $ Investments 6,465,717 3,740,115 10,205,832 Receivables: Accounts, customers 65,013 815,080 880,093 Notes 702,399 - 702,399 Accrued interest 39,041 20,519 59,560 Operating 2,301,113 2,231,708 4,532,821 Prepaid expenses 79,280 - 79,280 Restricted assets Cash and cash equivalents 15,019,210 - 15,019,210 Investments 12,109,684 - 12,109,684 Capital assets Land 1,266,693 3,358,066 4,624,759 Water rights - 87,685 87,685 Construction in progress 446,295 1,250,083 1,696,378 Buildings 25,418,155 30,752,408 56,170,563 Improvements 3,624,183 61,274,133 64,898,316 Infrastructure 46,931,152 - 46,931,152 Furniture and equipment 10,039,194 9,010,097 19,049,291 Accumulated depreciation (33,106,465) (39,072,408) (72,178,873) Total Assets 106,894,216 $ 86,039,040 $ 192,933,256 $ LIABILITIES Accounts payable 1,114,457 $ 1,098,193 $ 2,212,650 $ Accrued interest payable 242,419 310,476 552,895 Unearned revenue 1,917,975 - 1,917,975 Benefit claims incurred but not reported 302,829 - 302,829 Noncurrent liabilities Due within one year 3,290,648 1,866,837 5,157,485 Due in more than one year 18,936,706 16,516,700 35,453,406 Total Liabilities 25,805,034 19,792,206 45,597,240 NET ASSETS Invested in capital assets (net of related debt) 33,151,731 48,455,389 81,607,120 Restricted for: Recreation center endowment 2,217,003 - 2,217,003 Capital projects 16,506,692 - 16,506,692 Debt service 7,916,000 - 7,916,000 Unrestricted 21,297,756 17,791,445 39,089,201 Total Net Assets 81,089,182 $ 66,246,834 $ 147,336,016 $ Primary Government See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 31 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Function/Program Activities Primary Government Governmental Activities: Executive- City Manager 349,741 $ - $ - $ - $ Administrative services 1,614,403 - - - Judicial 305,086 705 - - Legal 247,994 - - - General government 5,638,682 122,604 111,565 1,779,614 Police 6,686,404 973,372 645,176 - Fire 4,477,800 987,756 234,651 196,440 Engineering 1,125,564 1,270,589 - - Highways and streets 4,758,799 - - - Animal control 369,047 46,437 - - Mosquito control 267,558 201,875 95,700 - Parks 1,565,351 41,260 - 223,180 Recreation 2,475,019 1,257,093 160,532 - Cemetery 231,371 64,378 - - Interest on long-term debt 532,592 - - - Total governmental activities 30,645,411 4,966,069 1,247,624 2,199,234 Business-type activities: Water 5,133,752 6,428,443 - 334,853 Waste water 2,419,977 4,183,500 - 3,539,998 Solid waste 1,802,237 2,075,699 - - Total business-type activities 9,355,966 12,687,642 - 3,874,851 Total primary government 40,001,377 $ 17,653,711 $ 1,247,624 $ 6,074,085 $ 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 CITY OF LARAMIE, WYOMING STATEMENT OF ACTIVITIES For the Year Ended June 30, 2008 Program Revenues See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 32 Governmental Business-type Activities Activities Total (349,741) $ - $ (349,741) $ (1,614,403) - (1,614,403) (304,381) - (304,381) (247,994) - (247,994) (3,624,899) - (3,624,899) (5,067,856) - (5,067,856) (3,058,953) - (3,058,953) 145,025 - 145,025 (4,758,799) - (4,758,799) (322,610) - (322,610) 30,017 - 30,017 (1,300,911) - (1,300,911) (1,057,394) - (1,057,394) (166,993) - (166,993) (532,592) - (532,592) (22,232,484) - (22,232,484) - 1,629,544 1,629,544 - 5,303,521 5,303,521 - 273,462 273,462 - 7,206,527 7,206,527 (22,232,484) $ 7,206,527 $ (15,025,957) $ 2,036,893 - 2,036,893 14,016,540 - 14,016,540 613,859 - 613,859 7,952,882 - 7,952,882 1,311,916 - 1,311,916 2,184,370 603,926 2,788,296 2,768,552 - 2,768,552 (82,566) 82,566 - 30,802,446 686,492 31,488,938 8,569,962 7,893,019 16,462,981 72,519,220 58,353,814 130,873,034 81,089,182 $ 66,246,833 $ 147,336,015 $ Primary Government Net (Expense) Revenue and Changes in Net Assets ---PAGE BREAK--- 33 CITY OF LARAMIE, WYOMING BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2008 Specific Wyoming Non-Major Total Purpose Territorial Governmental Governmental General Tax Prison Funds Funds ASSETS Cash 12,651,233 $ - $ - $ 4,471,917 $ 17,123,150 $ Investments 4,176,181 - - 2,464,582 6,640,763 Perpaid expenses 79,280 - - - 79,280 Receivables: Accounts, customers 13,097 - - - 13,097 Notes - - - 640,000 640,000 Accrued interest 16,198 - - 40,040 56,238 Operating 2,261,125 - - 115,418 2,376,543 Restricted assets Cash and cash equivalents 334,949 11,821,918 - - 12,156,867 Investments - - 7,916,000 2,276,246 10,192,246 Total Assets 19,532,063 $ 11,821,918 $ 7,916,000 $ 10,008,203 $ 49,278,184 $ LIABILITIES Accounts payable 924,355 $ 36,376 $ - $ 104,698 $ 1,065,429 $ Unearned revenue 1,104,510 - - 813,465 1,917,975 Accrued vacation and - compensatory time 182,761 - - 7,453 190,214 Total Liabilities 2,211,626 36,376 - 925,616 3,173,618 FUND BALANCES Reserved for: Capital projects - 11,785,542 - 4,721,150 16,506,692 Recreation center endowment - - - 2,217,003 2,217,003 Debt service - - 7,916,000 - 7,916,000 Unreserved Special revenue funds - - - 2,144,434 2,144,434 General fund 17,320,437 - - - 17,320,437 Total Fund Balances 17,320,437 11,785,542 7,916,000 9,082,587 46,104,566 Total Liabilities and Fund Balances 19,532,063 $ 11,821,918 $ 7,916,000 $ 10,008,203 $ 49,278,184 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 34 CITY OF LARAMIE, WYOMING RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS – GOVERNMENTAL FUNDS June 30, 2008 Fund balances- total governmental funds 46,104,566 $ 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 87,725,672 $ Less accumulated depreciation (33,106,465) 54,619,207 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. Long-term liabilities are not due and payable on the current period and therefore are not reported in the governmental funds. Governmental notes payable (10,140,074) Governmental leases payable (11,327,402) Compensated absences (569,664) Accrued interest on long-term debt (242,419) (22,279,559) 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. 2,644,968 Net assets of governmental activities 81,089,182 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 35 CITY OF LARAMIE, WYOMING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS For the Year Ended June 30, 2008 Wyoming Specific Territorial Non-Major Total Purpose Prison Governmental Governmental General Tax Debt Service Funds Funds REVENUES: Taxes and special assessments 3,224,482 $ 3,703,218 $ - $ 128,000 $ 7,055,700 $ Licenses and permits 126,360 - - - 126,360 Intergovernmental 21,066,183 - - 2,218,488 23,284,671 Charges for services 1,986,657 - - - 1,986,657 Fines and forfeitures 621,184 - - 621,184 Investment income 569,365 325,381 981,600 243,870 2,120,216 Miscellaneous 211,372 933 - 1,222,672 1,434,977 Total Revenues 27,805,603 4,029,532 981,600 3,813,030 36,629,765 EXPENDITURES: Current operating: General government 5,269,187 261,367 - 2,654,132 8,184,686 Public safety 11,863,741 - - 51,234 11,914,975 Health and welfare 611,290 - - - 611,290 Highways and streets 3,445,097 - - - 3,445,097 Culture and recreation 1,728,251 - - 1,466,346 3,194,597 Debt service: Principal retirement 400,981 1,949,803 - - 2,350,784 Interest 107,175 443,019 - - 550,194 Total Expenditures 23,425,722 2,654,189 - 4,171,712 30,251,623 Excess (deficiency) of revenues over (under) expenditures 4,379,881 1,375,343 981,600 (358,682) 6,378,142 OTHER FINANCING SOURCES AND (USES): Proceeds from Capital lease 268,861 - - - 268,861 Transfers in 383,922 - - 2,575,064 2,958,986 Transfers out (2,964,722) - - - (2,964,722) Total Other Financing Sources and (uses) (2,311,939) - - 2,575,064 263,125 Net Change in Fund Balance 2,067,942 1,375,343 981,600 2,216,382 6,641,267 Fund Balances- Beginning 15,252,493 10,410,199 6,934,400 6,866,205 39,463,297 Fund Balances- Ending 17,320,435 $ 11,785,542 $ 7,916,000 $ 9,082,587 $ 46,104,564 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 36 CITY OF LARAMIE, WYOMING 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, 2008 Net change in fund balances- total governmental funds 6,641,267 $ 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 2,490,122 $ Less current year depreciation (3,055,906) (565,784) 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 3,108,170 Proceeds from capital lease (268,861) 2,839,309 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 17,602 Change in long-term compensated absences 72,035 89,637 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. (1,062,053) 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. 627,586 Change in net assets of governmental activities 8,569,962 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 37 CITY OF LARAMIE, WYOMING STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2008 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund ASSETS Current Assets Cash 6,369,268 $ 3,719,839 $ 2,482,447 $ 12,571,554 $ 1,232,744 $ Investments 393,782 2,491,664 854,669 3,740,115 1,713,588 Receivables: Accounts, customers 388,859 276,678 149,543 815,080 - Accrued interest 4,443 9,768 6,308 20,519 11,607 Operating 1,707,026 524,682 - 2,231,708 38,885 Total current assets 8,863,378 7,022,631 3,492,967 19,378,976 2,996,824 Noncurrent Assets Capital assets Land 3,026,954 119,142 211,970 3,358,066 - Water rights 87,685 - - 87,685 - Construction in progress 419,973 830,110 - 1,250,083 - Buildings 12,372,860 18,296,795 82,753 30,752,408 - Improvements 50,697,963 10,576,170 - 61,274,133 - Furniture and equipment 5,469,513 1,493,763 2,046,821 9,010,097 - Accumulated depreciation (26,738,376) (10,908,090) (1,425,942) (39,072,408) - Total noncurrent assets 45,336,572 20,407,890 915,602 66,660,064 - Total Assets 54,199,950 $ 27,430,521 $ 4,408,569 $ 86,039,040 $ 2,996,824 $ LIABILITIES Current liabilities Accounts payable 927,708 $ - $ 170,485 $ 1,098,193 $ 49,027 $ Accrued interest payable 180,321 130,155 - 310,476 - Compensated absences 96,728 31,965 50,169 178,862 - Benefit claims incurred but not reported - - - - 302,829 Revenue bonds- current 265,000 - - 265,000 - Notes payable- current 741,321 681,654 - 1,422,975 - Total current liabilities 2,211,078 843,774 220,654 3,275,506 351,856 Business-Type Activities- Enterprise Funds (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 38 CITY OF LARAMIE, WYOMING STATEMENT OF NET ASSETS PROPRIETARY FUNDS (Continued) June 30, 2008 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund Noncurrent liabilities Revenue bonds payable 2,585,000 - - 2,585,000 - Landfill closure costs - - 1,447,364 1,447,364 - Notes payable 4,788,380 7,695,956 - 12,484,336 - Total noncurrent liabilities 7,373,380 7,695,956 1,447,364 16,516,700 - Total Liabilities 9,584,458 8,539,730 1,668,018 19,792,206 351,856 NET ASSETS Invested in capital assets (net of related debt) 36,956,871 12,030,280 915,602 49,902,753 - Unrestricted 7,658,621 6,860,511 1,824,949 16,344,081 2,644,968 Total Net Assets 44,615,492 $ 18,890,791 $ 2,740,551 $ 66,246,834 $ 2,644,968 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 39 CITY OF LARAMIE, WYOMING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2008 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund OPERATING REVENUES: Charges for services 5,436,247 $ 3,538,917 $ 2,043,465 $ 11,018,629 $ 2,546,417 $ Other income 433,599 147,366 32,235 613,200 - Total operating revenues 5,869,846 3,686,283 2,075,700 11,631,829 2,546,417 OPERATING EXPENSES Personal services 1,278,820 738,720 1,082,272 3,099,812 - Contractual services 669,802 536,235 180,758 1,386,795 - Materials and supplies 886,237 72,678 303,124 1,262,039 - Landfill closure costs - - 66,727 66,727 - Depreciation 1,722,770 729,240 169,356 2,621,366 - Benefit payments - - - - 2,064,584 Total operating expenses 4,557,629 2,076,873 1,802,237 8,436,739 2,064,584 Operating income (loss) 1,312,217 1,609,410 273,463 3,195,090 481,833 NONOPERATING REVENUES (EXPENSES): Investment income 128,022 371,903 104,002 603,927 121,753 Plant investment fees 558,596 497,216 - 1,055,812 - Interest expense (576,123) (343,104) - (919,227) - Total nonoperating revenue (expenses) 110,495 526,015 104,002 740,512 121,753 Income (loss) before transfers and capital contributions 1,422,712 2,135,425 377,465 3,935,602 603,586 TRANSFERS AND CONTRIBUTIONS Capital Contributions: Capital grants 334,853 3,539,998 - 3,874,851 - Contributed capital assets 100,830 - - 100,830 - Operating Transfers: Transfers in 365,658 - - 365,658 24,000 Transfers (out) (187,108) (102,732) (94,082) (383,922) - 614,233 3,437,266 (94,082) 3,957,417 24,000 Change in net assets 2,036,945 5,572,691 283,383 7,893,019 627,586 Net assets at beginning of year 42,578,547 13,318,100 2,457,168 58,353,815 2,017,382 Net assets at end of year 44,615,492 $ 18,890,791 $ 2,740,551 $ 66,246,834 $ 2,644,968 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 40 CITY OF LARAMIE, WYOMING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2008 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 5,476,992 $ 3,541,138 $ 2,035,482 $ 11,053,612 $ 2,635,806 $ Other operating cash receipts 433,599 147,366 32,235 613,200 - Payments to suppliers (1,092,551) (608,913) (366,824) (2,068,288) (2,040,381) Payments to employees (1,280,027) (738,720) (1,075,824) (3,094,571) - Net cash from operating activities 3,538,013 2,340,871 625,069 6,503,953 595,425 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 365,658 - - 365,658 24,000 Transfers (out) (187,108) (102,732) (94,082) (383,922) - Net cash from noncapital financing activities 178,550 (102,732) (94,082) (18,264) 24,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (967,964) (6,101,844) (187,469) (7,257,277) - Interest paid on long-term debt (600,028) (332,382) - (932,410) - Principal payments on long-term debt (972,159) (665,028) - (1,637,187) - Plant investment fees 558,596 497,216 - 1,055,812 - Grant revenue 334,853 3,539,998 - 3,874,851 - Proceeds from long-term debt - 524,681 - 524,681 - Net cash from capital and related financing activities (1,646,702) (2,537,359) (187,469) (4,371,530) - CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (309,745) (1,137,118) (686,895) (2,133,758) (1,257,746) Proceeds from sale of investments 398,241 940,689 626,884 1,965,814 811,689 Interest earned on investments 127,327 362,135 134,463 623,925 110,490 Net cash from investing activities 215,823 165,706 74,452 455,981 (335,567) Business-Type Activities- Enterprise Funds (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 41 CITY OF LARAMIE, WYOMING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2008 (Continued) Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund Net change in cash and cash equivalents 2,285,684 (133,514) 417,970 2,570,140 283,858 Cash, beginning 4,083,584 3,853,353 2,064,477 10,001,414 948,886 Cash, ending 6,369,268 $ 3,719,839 $ 2,482,447 $ 12,571,554 $ 1,232,744 $ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES: Income (loss) from operations 1,312,217 $ 1,609,410 $ 273,463 $ 3,195,090 $ 481,833 $ Adjustments to reconcile income (loss) from operations to net cash from operating activities Depreciation 1,722,770 729,240 169,356 2,621,366 - (Increase) decrease in accounts receivable 40,745 2,221 (7,983) 34,983 89,389 Increase in accounts payable 461,078 - 117,058 578,136 (6,899) Increase in compensated absences payable 1,207 - 6,448 7,655 - Increase in landfill closure costs - - 66,727 66,727 - Increase in benefit claims incurred but not reported payable - - - - 31,102 Net cash from operating activities 3,538,017 $ 2,340,871 $ 625,069 $ 6,503,957 $ 595,425 $ SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING, CAPITAL AND FINANCIAL ACTIVITIES Capital assets contributed by capital projects fund 100,830 $ - $ - $ 100,830 $ - $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 42 CITY OF LARAMIE, WYOMING STATEMENT OF FIDUCIARY NET ASSETS June 30, 2008 Cemetery Trust Fund ASSETS Cash 45,347 $ Interest receivable 581 Investments 567,793 Total Assets 613,721 $ LIABILITIES Accounts payable 192 $ Total Liabilities 192 NET ASSETS Restricted for cemetery perpetual care 613,529 Total Net Assets 613,529 613,721 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 43 CITY OF LARAMIE, WYOMING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended June 30, 2008 Cemetery Trust Fund ADDITIONS: Revenue Cemetery lot sales 6,706 $ Investment income 18,458 Total Additions 25,164 DEDUCTIONS: Operating expended 49,461 Total Deductions 49,461 Net decrease (24,297) Net assets- Beginning of Year 637,826 Net assets- End of Year 613,529 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 44 CITY OF LARAMIE, WYOMING 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. Accounts Payable F. Long-term Debt G. Landfill Closure and Postclosure Costs H. Interfund Transactions and Balances I. Fund Equity NOTE 4. OTHER NOTES A. Employee Pension Plans B. Risk Management – Claims and Judgments C. Commitments and Contingencies D. Prior period adjustment E. Subsequent events ---PAGE BREAK--- 45 CITY OF LARAMIE, WYOMING NOTES TO BASIC FINANCIAL STATEMENTS 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’s financial reporting entity comprises the following: Primary Government: City of Laramie In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 14, The Financial Reporting Entity, and includes all component units of which the City appointed a voting majority of the units’ board; the City is either able to impose its will on the unit or a financial benefit or burden relationship exists. Discretely Presented Component Units Currently, the City has no discretely presented component units. Blended Component Units Currently, the City has no blended 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. 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. ---PAGE BREAK--- 46 NOTES TO BASIC FINANCIAL STATEMENTS Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditure/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 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 to expenditures for certain purposes. Capital Project Funds The Capital Project Fund is 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. Council Construction Fund is used to account for the design and construction of various city projects. 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, 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. ---PAGE BREAK--- 47 NOTES TO BASIC FINANCIAL STATEMENTS Special Purpose Tax Fund is used to account for the construction and improvements for the City projects in the 2001 Special Purpose Tax. The City projects 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. 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 Fund Enterprise Funds Enterprise Funds are used to account for business-like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. 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 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 the cemetery lots and lot development. ---PAGE BREAK--- 48 NOTES TO BASIC FINANCIAL STATEMENTS Major and Nonmajor Funds The funds are further classified as major or nonmajor as follows: Fund Brief Description Major Funds: General See above description Capital Projects: Special Purpose Tax Fund See above description 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. Proprietary: Waterworks and Waste Water Accounts for revenue and expenditures of providing water and sewer services on a user charge basis to the general public. Solid Waste Fund Accounts for revenue and expenditures of providing refuse collection and disposal services on a user charge basis to the general public. Nonmajor Funds: Capital Projects Fund: Council Construction Fund See above description Parks and Recreation Development Fund See above description West Laramie Capital Projects See above description Proprietary Funds: Solid Waste Fund Accounts for revenue and expenditures of providing refuse collection and disposal services on a user charge basis to the general public Internal Service Fund See above description ---PAGE BREAK--- 49 NOTES TO BASIC FINANCIAL STATEMENTS 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 being reported using the economic resources measurement focus method. 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 of accounting, 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 general obligation bond principal and interest which are reported when due. ---PAGE BREAK--- 50 NOTES TO BASIC FINANCIAL STATEMENTS 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.H. for details of interfund transactions, including receivables and payables at year-end. 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 ---PAGE BREAK--- 51 NOTES TO BASIC FINANCIAL STATEMENTS 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 over property, plant, and equipment (fixed assets) 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, fixed assets are accounted for as capital 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 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 of the Special Purpose Tax Fund that are legally restricted as to their use. The restricted assets are related to proceeds from the issuance of long-term debt that are restricted for capital construction projects and capital facilities sales tax funds restricted for the purchase and/or repayment of debt associated with the construction. ---PAGE BREAK--- 52 NOTES TO BASIC FINANCIAL STATEMENTS 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 to be repaid from governmental and business-type resources is reported as liabilities in the government-wide statements. The long-term debt consists primarily of notes payable, accrued compensated absences, and a court-assessed judgment. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principle 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 trends. In the fund financial statements, governmental funds report only the compensated absence liability payable from expendable available financial resources as they are considered 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. 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. ---PAGE BREAK--- 53 NOTES TO BASIC FINANCIAL STATEMENTS 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. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Proprietary fund equity is classified the same as in the government-wide statements. See Note 3.H. for additional disclosures. 1.E. REVENUES, EXPENDITURES, AND EXPENSES Sales Tax The City presently levies a four-cent sales tax on taxable sales within the City. 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 City levies a four-cent use tax on personal property purchased outside the city limits but stored, used, or consumed within the city. 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. A joint powers board was formed to administer to funds and finance the projects. Upon collection of the $41,601,181 approved by the voters, the tax will lapse which is projected to be fulfilled during the fiscal year ended June 30, 2011. ---PAGE BREAK--- 54 NOTES TO BASIC FINANCIAL STATEMENTS 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 mil) 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 reallocation 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--- 55 NOTES TO BASIC FINANCIAL STATEMENTS 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. 1.F. BUDGETARY DATA Budgetary Policy The City annually adopts the Budget Resolution for the General Fund, Debt Service Fund and Capital Projects Funds. 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 and 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. 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 four material budget amendments for the year ended June 30, 2008 and is summarized as follows: Expenditures General Fund Increase in municipal court expenditures 3,000 $ Increase in other general government expenditures 246,094 Increase in judicial expenditures Increase in police expenditures 200,097 Increase in fire department expenditures 15,185 Increase in code adnministration expenditures 11,119 Increase in operating transfers out 88,500 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 include the following: ---PAGE BREAK--- 56 NOTES TO BASIC FINANCIAL STATEMENTS 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. NOTE 3. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS 3.A CASH AND INVESTMENTS In March, 2003, the Governmental Accounting Standards Board issued Statement No. 40 Deposit and Investment Risk Disclosures, effective for financial statement periods beginning after June 14, 2004. Deposit and investment risks were previously addressed in GASB Statement No. 3 Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements. Risk disclosures in GASB Statement No. 3 focused in credit risk, including custodial credit risk. GASB Statement No. 40 updates the custodial risk disclosure requirements of Statement 3 and establishes more comprehensive disclosure requirements addressing other common risks the deposits and investments of state and local governments. 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 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. ---PAGE BREAK--- 57 NOTES TO BASIC FINANCIAL STATEMENTS Deposits At June 30, 2008, the carrying amount of the City’s demand deposits in financial institutions was $43,084,316. 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, 2008, the City had $3,869,508 on deposit with the State Treasurer. Detailed information on the State Treasurer’s pooled cash and investments is available from that office. Investments As of June 30, 2008, the City had investments with weighted average maturities as shown in the following table: Weighted Average Carrying Maturity Investment Type Amount Fair Value in Years Federal Home Loan Mortgage Corporation 1,373,558 $ 1,369,618 $ 10.17 Federal National Mortgage Association 2,309,380 2,315,794 12.03 Government National Mortgage Association 528,637 492,859 25.77 U.S. Treasury Strips 7,916,600 7,916,600 6.38 Federal Home Loan Bank 2,870,306 2,879,411 2.18 Certificates of deposit 3,432,076 3,432,076 0.50 State of Wyoming Investment Pool 3,869,508 3,869,508 Money Market 454,662 454,662 Total 22,754,727 $ 22,730,528 $ 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 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 ongoing basis for changes in effective yields amounts. ---PAGE BREAK--- 58 NOTES TO BASIC FINANCIAL STATEMENTS 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: Investment Type Fair Value AAA Insured Unrated Federal Home Loan Mortgage Corporation 1,369,618 $ 1,369,618 $ - $ - $ Federal National Mortgage Association 2,315,794 2,315,794 - - Government National Mortgage Association 492,859 - 492,859 - U.S. Treasury Strips 7,916,600 7,916,600 - - Federal Home Loan Bank 2,879,411 2,879,411 - - Certificates of Deposit 3,432,076 - - 3,432,076 State of Wyoming Investment Pool 3,869,508 - - 3,869,508 Money Market 454,662 - - 454,662 Total 22,730,528 $ 14,481,423 $ 492,859 $ 7,756,246 $ 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, 2008, the City held securities from the following issuers in excess of 5% of the total portfolio: 1,369,618 $ 2,315,794 U.S. Treasury 7,916,600 Federal Home Loan Bank 2,879,411 First Interstate Bank- Certificates of Deposit 2,243,882 Total 16,725,305 $ Federal Home Loan Mortgage Corporation Federal National Mortgage Association ---PAGE BREAK--- 59 NOTES TO BASIC FINANCIAL STATEMENTS 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 current which mitigates their exposure to foreign currency risk. 3.B. RESTRICTED ASSETS The amounts reported as restricted assets or cash, investments and accrued interest are held by the trustee on behalf of the City. 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. There is an additional amount restricted as an “endowment” fund for the recreation center operations. The restricted net assets as of June 30, 2008 are as follows: Reserved for Capital Projects Specific Purpose Tax Fund 11,785,542 $ City Council Construction Fund 4,048,377 Parks and Recreation Construction Fund 168,968 West Laramie Development Fund 503,805 Total Restricted for Capital Projects 16,506,692 $ Reserved for Debt Service Wyoming Territorial Prison Debt Service Fund 7,916,000 $ Endowment Reserves Recreation Center Fund 2,217,003 $ 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 as of June 30, 2008. ---PAGE BREAK--- 60 NOTES TO BASIC FINANCIAL STATEMENTS 3.D. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2008 was as follows: Balance at Balance at June 30, 2007 Additions Disposals June 30, 2008 Governmental activities: Non-depreciable assets Land 1,035,870 $ 230,823 $ - $ 1,266,693 $ Construction in progress 134,792 464,826 153,323 446,295 Depreciable assets Buildings 25,359,654 58,501 - 25,418,155 Infrastructure 46,786,708 144,444 - 46,931,152 Improvements 3,020,632 603,551 3,624,183 Furniture and equipment 9,206,482 987,977 155,265 10,039,194 Total at historical cost 85,544,138 2,490,122 308,588 87,725,672 Less accumulated depreciation Buildings (4,939,499) (566,482) - (5,505,981) Infrastructure (19,106,350) (1,243,367) - (20,349,717) Furniture and equipment (6,157,976) (1,246,057) (153,266) (7,250,767) Total accumulated depreciation (30,203,825) (3,055,906) (153,266) (33,106,465) Governmental activities capital assets, net 55,340,313 $ (565,784) $ 155,322 $ 54,619,207 $ Business-type activities: Non-depreciable assets Land 3,358,066 $ - $ - $ 3,358,066 $ Water rights 87,685 - - 87,685 Construction in progress 623,905 1,156,412 530,234 1,250,083 Depreciable assets Buildings 30,700,671 51,737 - 30,752,408 Improvements 55,589,776 5,684,357 - 61,274,133 Furniture and equipment 8,678,344 331,753 - 9,010,097 Total at historical cost 99,038,447 7,224,259 530,234 105,732,472 Less accumulated depreciation Buildings (14,100,473) (623,738) - (14,724,211) Improvements (17,955,994) (1,328,834) - (19,284,828) Furniture and equipment (4,394,575) (668,794) - (5,063,369) Total accumulated depreciation (36,451,042) (2,621,366) - (39,072,408) Business-type activities capital assets, net 62,587,405 $ 4,602,893 $ 530,234 $ 66,660,064 $ ---PAGE BREAK--- 61 NOTES TO BASIC FINANCIAL STATEMENTS Depreciation expense was charged to governmental activities as follows: General government: Administrative services 60,071 $ Other general government 116,310 Public safety: Police 467,599 Fire 284,275 Engineering and code administration 7,609 Health and welfare: Animal control 17,238 Mosquito control 11,843 Culture and recreation: Parks 233,153 Recreation 420,556 Cemetery 12,096 Highways and streets 1,425,156 3.E. 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.F. 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, 2008: Long-term Long-term Obligations at Obligations at Due Within June 30, 2007 Additions Deletions June 30, 2008 One Year Loans Payable: WTP note payable 10,000,000 $ - $ - $ 10,000,000 $ - $ Pension buy out 169,810 - 29,736 140,074 31,707 Capital Leases: Animal shelter building 492,403 - 89,350 403,053 93,716 Road grader 118,717 - 45,753 72,964 48,046 Zamboni 42,903 - 20,959 21,944 21,944 Street sweeper 153,515 - 51,254 102,261 50,101 Police cars 841,858 - 155,179 686,679 161,512 Road grader II - 149,346 - 149,346 48,499 Governmental Activities: (Continued) ---PAGE BREAK--- 62 NOTES TO BASIC FINANCIAL STATEMENTS Long-term Long-term Obligations at Obligations at Due Within June 30, 2007 Additions Deletions June 30, 2008 One Year Governmental Activities: WAM Energy lease 42,500 - 8,750 33,750 5,000 Street sweeper II - 119,515 - 119,515 38,109 City Hall remodel 659,414 - 109,991 549,423 114,635 Recreation Center construction 6,548,237 - 1,092,421 5,455,816 1,138,550 Ice Rink construction 791,177 - 131,989 659,188 137,563 East Side tank construction 3,688,864 - 615,401 3,073,463 641,388 Other long-term debt - Compensated absences 830,343 686,922 757,387 759,878 759,878 24,379,741 $ 955,783 $ 3,108,170 $ 22,227,354 $ 3,290,648 $ Long-term Long-term Obligations at Obligations at Due Within June 30, 2007 Additions Deletions June 30, 2008 One Year Revenue Bonds: Water refunding bonds 3,110,000 $ - $ 260,000 $ 2,850,000 $ 265,000 $ Loans Payable: WWDC Spur Well loan 801,491 - 43,816 757,675 45,569 WWDC Water projects loan 1,517,024 - 78,277 1,438,747 80,235 WWDC Soldier Springs Well loan 568,050 - 34,164 533,886 35,531 WWDC Laramie North 1,818,451 - 57,655 1,760,796 61,835 WWDC Main Lift Station Project - 524,682 - 524,682 - WSLIB Wastewater Treatment Facility loan 7,806,719 - 625,365 7,181,354 640,999 WSLIB Wastewater Treatment Facility loan 711,237 - 39,663 671,574 40,655 Capital Leases: Water meter replacement 1,502,199 - 481,275 1,020,924 500,478 Tractor lease 34,644 - 16,970 17,674 17,674 Other long-term debt Landfill closure and post closure costs payable 1,380,637 66,727 - 1,447,364 - Compensated absences 171,207 163,257 155,603 178,861 178,861 19,421,659 $ 754,666 $ 1,792,788 $ 18,383,537 $ 1,866,837 $ Business-Type Activities: Governmental Activities: As of June 30, 2008, 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 $ ---PAGE BREAK--- 63 NOTES TO BASIC FINANCIAL STATEMENTS 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. 140,074 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 $745,199. 686,679 Capital lease payable to WAM, due in semi-annual installments of $2,500, at zero interest to June 2016, unsecured. 33,750 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. 549,423 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 $12,318,611. 5,455,816 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 $1,114,174. 659,188 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 construction project in progress. 3,073,463 Capital lease payable, due in annual installments of $54,304, including interest at 4.11% to August, 2009, collateralized by equipment with an aggregate carrying $138,164. 102,261 Capital lease payable, due in annual installments of $22,976 $22,975, including interest at 4.70% to May, 2009, collateralized by equipment with an aggregate carrying $58,655. 21,944 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 $494,773. 403,053 Capital lease payable, due in semi-annual installments of $53,745, including interest at 4.36% to July, 2010, collateralized by equipment with an aggregate carrying $149,346. 149,346 ---PAGE BREAK--- 64 NOTES TO BASIC FINANCIAL STATEMENTS Capital lease payable, due in annual installments of $43,452, including interest at 4.13% to September, 2010, collateralized by equipment with an aggregate carrying $119,515. 119,515 Capital lease payable, due in semi-annual installments of $25,535, including interest at 4.95% to July, 2009, collateralized by equipment with an aggregate carrying $140,617. 72,964 Total Governmental Activity Debt 21,467,476 $ Business-type Activities: As of June 30, 2008, 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. 2,850,000 $ LOANS: Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments from $150,256 to $116,203 including interest at 2.5% secured by revenues generated by the Municipal Water System. 1,438,747 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. 757,675 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments of $153,008 including interest at 7.25% secured by revenues generated by the Municipal Water System. 1,760,796 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. 533,886 Note payable to Sun Trust Leasing Corporation, due in annual installments of $541,213, including interest at 3.99% secured by equipment with a carrying value of $2,025,661. 1,020,924 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $913,741, including interest at 4.0%, secured by revenues generated by the Wastewater Treatment Facility. 7,181,354 ---PAGE BREAK--- 65 NOTES TO BASIC FINANCIAL STATEMENTS Note payable to the Wyoming State Land and Investment Board, due in annual installments to be determined upon completion of project and final loan amount, including interest at 2.50%, secured by revenues generated by the Wastewater Treatment Facility. 524,682 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $66,224, including interest at 4.0%, secured by revenues generated by the Wastewater Treatment Facility. 671,574 Capital lease payable to bank, due in annual installments of $18,408, including interest at 4.15% to October 2008, collateralized by equipment with an aggregate carrying value of $42,257. 17,674 Total Business-Type Activity Debt 16,757,312 $ Annual Debt Service Requirements The annual requirements to amortize all debt outstanding as of June 30, 2008, excluding obligations associated with compensated absences and Landfill Closure and Post- closure costs are as follows: Principal Interest Principal Interest Principal Interest 2009 2,530,769 $ 588,123 $ 1,687,975 $ 586,726 $ 4,218,744 $ 1,174,849 $ 2010 2,582,133 488,234 1,747,584 527,934 4,329,717 1,016,168 2011 2,605,194 383,373 1,265,355 467,382 3,870,549 850,755 2012 2,560,508 276,678 1,309,560 425,731 3,870,068 702,409 2013 1,180,122 173,503 1,339,790 382,361 2,519,912 555,864 2014-2018 10,008,750 225,000 7,116,715 1,171,659 17,125,465 1,396,659 2019-2023 - - 1,929,264 335,138 1,929,264 335,138 2023-2025 - - 361,069 27,063 361,069 27,063 21,467,476 $ 2,134,911 $ 16,757,312 $ 3,923,994 $ 38,224,788 $ 6,058,905 $ Governmental Activities Business-Type Activities Government-Wide 3.G. 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 $1,447,364 reported as landfill closure and postclosure care liability at June 30, 2008 represents the cumulative amount reported to date based on 50.32 percent of the estimated usage of the landfill. The City will recognize the remaining estimated costs of closure and postclosure care of $1,466,031 as the remaining capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2008. 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--- 66 NOTES TO BASIC FINANCIAL STATEMENTS 3.H. 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, 2008 were as follows: Transfers In Transfers Out General Fund: Capital Projects Funds Recreation Center Fund - $ 600,633 $ Council Counstruction Fund - 1,544,431 West Laramie Construction Fund 430,000 Internal Service Funds Health Insurance Trust - 24,000 Enterprise Funds Water 187,108 365,658 Waste Water 102,732 - Solid Waste 94,082 - Total General Fund 383,922 2,964,722 Recreation Center Fund General Fund 600,633 - West Laramie Construction Fund General Fund 430,000 - Council Counstruction Fund General Fund 1,544,431 - Health Insurance Trust General Fund 24,000 - Water Fund General Fund 365,658 187,108 Waste Water Fund General Fund - 102,732 Solid Waste Fund General Fund - 94,082 Grand Totals 3,348,644 $ 3,348,644 $ ---PAGE BREAK--- 67 NOTES TO BASIC FINANCIAL STATEMENTS Interfund loan amounts are temporary in nature and are repaid by the respective funds on a current basis. As of June 30, 2008 there were not interfund loan balances. 3.I. FUND EQUITY The summary of fund balance designations and reserves at June 30, 2008 are as follows: Reserved for Capital Projects Specific Purpose Tax Fund 11,785,542 $ City Council Construction Fund 4,048,377 Parks and Recreation Construction Fund 168,968 West Laramie Development Fund 503,805 Total Restricted for Capital Projects 16,506,692 $ Reserved for Debt Service Wyoming Territorial Prison Debt Service Fund 7,916,000 $ Endowment Reserves Recreation Center Fund 2,217,003 $ 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 (“System”), a cost sharing multiple- employer defined benefits pension plan. The payroll for employees covered by the System for the year ended June 30, 2008 was $6,951,483; the City’s total payroll was $14,026,224. All City full-time or regular part-time employees, other than policemen and firemen, are eligible to participate in the System. 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. The System also provides death and disability benefits. Benefits are established by State statutes. ---PAGE BREAK--- 68 NOTES TO BASIC FINANCIAL STATEMENTS The System statutorily requires 11.25% of the covered employees’ salary to be contributed to the plan, of which 2.50% is paid by the employee and the remaining 8.75% is paid by the City. The contribution requirement for the year ended June 30, 2008 was $768,236 which consisted of $182,230 from employees and $586,006 from the City. 100% of the required amount was contributed for the year ended June 30, 2008. The required contribution amount of $727,459 for June 30, 2007 and $648,368 for June 30, 2006 were also 100% contributed for the two prior years, respectively. Historical trend information showing the System’s progress in accumulating sufficient assets to pay benefits when due is presented in the System’s December 31, 2007 annual financial report for the periods for which the information is available. 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. The payroll for employees covered by Plan A was $214,857 and Plan B was $2,451,503 for the year ended June 30, 2008; the City’s total payroll was $14,026,224. 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 18% of the covered employees’ salary to be contributed to the Plan, of which 1% is paid by the employee and the remaining 17% is paid by the City. The contribution requirement for the year ended June 30, 2008 was $451,379, which consisted of $24,515 from employees and $426,864 from the City. 100% of the required amount was contributed for the year ended June 30, 2008. The required contribution amounts of $422,354 for June 30, 2007 and $370,789 for June 30, 2006 were also contributed for the two prior years, respectively. ---PAGE BREAK--- 69 NOTES TO BASIC FINANCIAL STATEMENTS Actuarial valuations are performed annually with the most recent valuation date of January 1, 2008. The Entry Age Normal Actuarial Cost Method is used by the plan for determining the plan obligation. For valuing the Plan Assets, the Plan uses adjusted market value that immediately recognizes interest and dividends. The procedure recognizes 20% of each plan year’s total appreciation (depreciation) in excess of the expected return on market value. After five years, the appreciation (depreciation) is fully recognized. 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 December 31, 2007 annual financial report for the periods for which the information is available. State of Wyoming Police Pension Fund 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. The City’s payroll for employees covered by the fund for the year ended June 30, 2008 was $3,431,101. The City’s payroll for the year ended June 30, 2008 was $14,026,224. 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. Actuarial valuations are performed annually with the most recent valuation date of January 1, 2008. The Entry Age Normal Actuarial Cost Method is used by the plan for determining the plan obligation. For valuing the Plan Assets, the Plan uses adjusted market value that immediately recognizes interest and dividends. The procedure recognizes 20% of each plan year’s total appreciation (depreciation) in excess of the expected return on market value. After five years, the appreciation (depreciation) is fully recognized. The Fund statutorily requires 17.36% of the covered employees’ salary to be contributed to the fund, of which 6.00% is paid by the employee and the remaining 11.36% is paid by the City. The contribution requirement for the year ended June 30, 2008 was $578,846, which consisted of $189,416 from employees and $389,430 from the City. The required contribution amounts of $555,328 for June 30, 2007 and $504,712 for June 30, 2006, were also contributed for the two prior years. The state of Wyoming Retirement System audit report is available by contacting the Wyoming Retirement System at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or at the website at http://retirement.state.wy.us. The report includes ---PAGE BREAK--- 70 NOTES TO BASIC FINANCIAL STATEMENTS 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 $40,000 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. 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, 2004 to June 30, 2008: Liability balance, June 30, 2005 270,000 $ Claims and changes in estimates 2,863,048 Claims payments (2,854,734) Liability balance, June 30, 2006 278,314 Claims and changes in estimates 2,112,050 Claims payments (2,080,948) Liability balance, June 30, 2007 309,416 Claims and changes in estimates 2,064,584 Claims payments (2,022,144) Liability balance, June 30, 2008 351,856 $ Assets available to pay claims at June 30, 2008 2,996,824 $ ---PAGE BREAK--- 71 NOTES TO BASIC FINANCIAL STATEMENTS 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 claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years. 4.C COMMITMENTS AND CONTINGENCIES After year end, the City has been named as defendant in a lawsuit from a former employee for wrongful termination. Although the outcome of the lawsuit is not presently determinable, the City is vigorously contesting the claim ad in the opinion of the City’s legal council the resolution of these matters will not have a material adverse effect on the financial condition of the City. The City has several construction projects in progress at year end and has remaining commitments as follows: Remaining Commitment Street projects 200,000 Water storage and transmission projects 2,514,000 4.D PRIOR PERIOD ADJUSTMENT The beginning fund balance for the Specific Purpose Tax fund has been corrected to properly reflect the City’s portion of assets held in the debt service escrow. This amount is restricted for the financing portion of the capital projects and was previously omitted from the City’s books. As a result of the restatement, the beginning restricted cash and cash equivalents and the fund balance were increased by $1,481,545. Additionally, the general fund beginning fund balance has been restated to decrease the balance by $121,791 to properly reflect prior year accounts receivable and accounts payable balances. ---PAGE BREAK--- 72 NOTES TO BASIC FINANCIAL STATEMENTS 4.E SUBSEQUENT EVENT The City of Laramie issued Water Revenue Refunding bonds on November 10, 2008 in the amount of $2,040,000. The proceeds of the Bonds were used to retire a note payable to the State of Wyoming Water which was issued at 7.25% interest. The interest rate on the new bonds ranges from 2.90% to 4.30%. The resulting cost savings from the issuance of the new bonds after paying all costs associated with the bond issue is approximately $415,000 through the term of the bonds. ---PAGE BREAK--- 73 INDEX TO ILLUSTRATIVE REQUIRED SUPPLEMENTARY INFORMATION 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--- 74 CITY OF LARAMIE, WYOMING REQUIRED SUPPLEMENTAL INFORMATION POLICE OFFICER AND 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 192,097 $ 185,647 $ (6,450) $ 103.47% 1,472 $ -438.18% January 1, 2006 188,318 187,452 (866) 100.46% 1,271 -68.14% January 1, 2007 191,124 187,953 (3,171) 101.69% 1,076 -294.70% January 1, 2008 200,588 188,368 (12,220) 106.49% 938 -1302.77% 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% 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% The following is a schedule of funding progress for the Police Officer Pension Plans (in thousands): The following is a schedule of funding progress for the Firemen's Pension Plans (in thousands): Paid Firemen's Pension Plan A Paid Firemen's Pension Plan B ---PAGE BREAK--- 75 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Taxes and special assessments 2,893,800 $ 2,893,800 $ 3,224,470 $ 330,670 $ Licenses and permits 100,600 100,600 126,360 25,760 Intergovernmental 20,742,208 20,923,841 21,066,183 142,342 Charges for services 1,374,850 1,374,850 1,986,657 611,807 Fines and forfeitures 860,000 860,000 621,184 (238,816) Investment income 450,000 450,000 569,365 119,365 Miscellaneous 197,400 197,400 211,376 13,976 Total revenues 26,618,858 26,800,491 27,805,595 1,005,104 EXPENDITURES: General government Executive- City Manager 550,207 550,207 349,741 200,466 Administrative services (Finance, Utility Billing, Human Resources) 1,764,242 1,764,242 1,576,361 187,881 Judicial 349,955 352,955 305,088 47,867 Legal 317,064 317,064 246,682 70,382 Other general government 3,041,078 3,287,172 2,857,639 429,533 Public safety Police 6,431,078 6,631,175 6,408,999 222,176 Fire 4,816,017 4,831,202 4,543,821 287,381 Engineering and code administration 1,944,236 1,955,355 1,129,074 826,281 Health and welfare Animal control 552,973 552,973 466,234 86,739 Mosquito control 286,505 286,505 257,090 29,415 Highways and streets 4,067,164 4,067,164 3,282,053 785,111 Culture and recreation Parks 909,659 909,659 860,442 49,217 Recreation 780,063 780,063 670,678 109,385 Cemetery 385,539 385,539 219,275 166,264 Total expenditures 26,195,780 26,671,275 23,173,177 3,498,098 Excess (deficiency) of revenues over (under) expenditures 423,078 129,216 4,632,418 4,503,202 OTHER FINANCING SOURCES (USES): Operating transfers (out) (2,876,222) (2,964,722) (2,964,722) - Operating transfers in 383,922 383,922 383,922 - Total other financing sources (uses) (2,492,300) (2,580,800) (2,580,800) - Budgeted Amounts (Continued) ---PAGE BREAK--- 76 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the Year Ended June 30, 2008 (Continued) Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) Excess (deficiency) of revenues over expenditures and other financing sources (uses) (2,069,222) (2,451,584) 2,051,618 4,503,202 Fund balance at beginning of year 15,252,493 15,252,493 15,252,493 - Fund balance at end of year 13,183,271 $ 12,800,909 $ 17,304,111 $ 4,503,202 $ Explanation of differences between budgetary revenue and expenditures and GAAP revenue and expenditures. Revenue: Actual total revenue budgetary basis 27,805,595 $ Differences- Budget to GAAP Other receivables difference 9 Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance- governmental funds 27,805,604 $ Expenditures: Actual total expenditures budgetary basis 23,173,177 $ Differences- Budget to GAAP Accruals difference (16,316) Capital expenditures from lease proceeds 268,861 Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance- governmental funds 23,425,722 $ Budgeted Amounts ---PAGE BREAK--- 77 CITY OF LARAMIE, WYOMING NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY COMPARISONS June 30, 2008 A. Budgetary Basis Annual 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. 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 76. 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, 2008, there were no instances of excess of expenditures over appropriations. ---PAGE BREAK--- COMBINING FINANCIAL STATEMENTS ---PAGE BREAK--- 78 CITY OF LARAMIE, WYOMING COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS June 30, 2008 Economic Recreation Emergency Development Center 911 fund ASSETS Cash 831 $ 856,382 $ 752,361 $ Investments 303,573 - 272,375 Receivables: Notes 640,000 - - Accrued interest 5,372 28,804 4,531 Operating 62,399 51,916 1,103 Restricted assets: Investments - 2,276,246 - Total Assets 1,012,175 $ 3,213,348 $ 1,030,370 $ LIABILITIES Accounts payable - $ 71,290 $ 2,248 $ Unearned revenue 640,000 173,465 - Accrued vacation and compensatory time - 7,453 - Total Liabilities 640,000 252,208 2,248 FUND BALANCES Reserved for: Capital projects - - - Recreation center endowment - 2,217,003 - Debt service - - - Unreserved 372,175 744,137 1,028,122 Total Fund Balances 372,175 2,961,140 1,028,122 Total Liabilities and Fund Balances 1,012,175 $ 3,213,348 $ 1,030,370 $ Special Revenue Funds ---PAGE BREAK--- 79 Total Non-Major City Council Parks and West Governmental Construction Recreation Laramie Funds 2,298,687 $ 154,148 $ 409,508 $ 4,471,917 $ 1,779,517 14,820 94,297 2,464,582 - - - 640,000 1,333 - - 40,040 - - - 115,418 - - - 2,276,246 4,079,537 $ 168,968 $ 503,805 $ 10,008,203 $ 31,160 $ - $ - $ 104,698 $ - - - 813,465 - - - 7,453 31,160 - - 925,616 4,048,377 168,968 503,805 4,721,150 - - - 2,217,003 - - - - - - - 2,144,434 4,048,377 168,968 503,805 9,082,587 4,079,537 $ 168,968 $ 503,805 $ 10,008,203 $ Capital Projects Fund ---PAGE BREAK--- 80 CITY OF LARAMIE, WYOMING COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended June 30, 2008 Economic Recreation Emergency Development Center 911 fund REVENUES: Taxes and special assessments - $ - $ - $ Intergovernmental - 70,753 290,773 Investment income 34,237 57,602 43,765 Miscellaneous - 1,044,723 - Total Revenues 34,237 1,173,078 334,538 EXPENDITURES: Current operating: General government - - - Public safety - - 51,234 Culture and recreation - 1,409,310 - Capital outlay - - - Total Expenditures - 1,409,310 51,234 Excess (deficiency) of revenues over (under) expenditures 34,237 (236,232) 283,304 OTHER FINANCING SOURCES AND (USES): Transfers in - 600,633 - Transfers (out) - - - Total Other Financing Sources and (Uses) - 600,633 - Net Change in Fund Balance 34,237 364,401 283,304 Fund Balances- Beginning 337,938 2,596,739 744,818 Fund Balances- Ending 372,175 $ 2,961,140 $ 1,028,122 $ Special Revenue Funds ---PAGE BREAK--- 81 Total Non-Major City Council Parks and West Governmental Construction Recreation Laramie Funds - $ 128,000 $ - $ 128,000 $ 1,856,962 - - 2,218,488 100,704 3,762 3,800 243,870 145,772 32,177 - 1,222,672 2,103,438 163,939 3,800 3,813,030 2,654,132 - - 2,654,132 - - - 51,234 - 57,036 - 1,466,346 - - - - 2,654,132 57,036 - 4,171,712 (550,694) 106,903 3,800 (358,682) 1,544,431 - 430,000 2,575,064 - - - - 1,544,431 - 430,000 2,575,064 993,737 106,903 433,800 2,216,382 3,054,640 62,065 70,005 6,866,205 4,048,377 $ 168,968 $ 503,805 $ 9,082,587 $ Capital Projects Fund ---PAGE BREAK--- SUPPLEMENTAL INFORMATION ---PAGE BREAK--- 82 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE SPECIFIC PURPOSE TAX FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 5,592,446 $ 5,592,446 $ 3,703,218 $ (1,889,228) $ Miscellaneous - - 933 933 Investment income - - 325,381 325,381 Total revenues 5,592,446 5,592,446 4,029,532 (1,562,914) EXPENDITURES: Capital outlay 5,592,446 5,592,446 261,367 5,331,079 Debt service Principal - - 1,949,803 (1,949,803) Interest - - 443,019 (443,019) Total expenditures 5,592,446 5,592,446 2,654,189 2,938,257 Excess (deficiency) of revenues over (under) expenditures - - 1,375,343 1,375,343 Fund balance at beginning of year 10,410,199 10,410,199 10,410,199 - Fund balance at end of year 10,410,199 $ 10,410,199 $ 11,785,542 $ 1,375,343 $ Budgeted Amounts ---PAGE BREAK--- 83 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE WYOMING TERRITORIAL PRISON DEBT SERVICE FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income - $ - $ 981,600 $ 981,600 $ Total revenues - - 981,600 981,600 EXPENDITURES: General government - - - - Total expenditures - - - - (Deficiency) of revenues (under) expenditures - - 981,600 981,600 Fund balance at beginning of year 6,934,400 6,934,400 6,934,400 - Fund balance at end of year 6,934,400 $ 6,934,400 $ 7,916,000 $ 981,600 $ Budgeted Amounts ---PAGE BREAK--- 84 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE ECONOMIC DEVELOPMENT FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income 7,500 $ 7,500 $ 34,239 $ 26,739 $ Total revenues 7,500 7,500 34,239 26,739 EXPENDITURES: General government - - - - Total expenditures - - - - Excess (deficiency) of revenues over (under) expenditures 7,500 7,500 34,239 26,739 Fund balance at beginning of year 337,938 337,938 337,938 - Fund balance at end of year 345,438 $ 345,438 $ 372,177 $ 26,739 $ Budgeted Amounts ---PAGE BREAK--- 85 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE EMERGENCY 911 FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 719,814 $ 719,814 $ 290,773 $ (429,041) $ Investment income 20,000 20,000 43,765 23,765 Total revenues 739,814 739,814 334,538 (405,276) EXPENDITURES: Public safety 650,000 650,000 51,234 598,766 Total expenditures 650,000 650,000 51,234 598,766 Excess (deficiency) of revenues over (under) expenditures 89,814 89,814 283,304 193,490 Fund balance at beginning of year 744,818 744,818 744,818 - Fund balance at end of year 834,632 $ 834,632 $ 1,028,122 $ 193,490 $ Budgeted Amounts ---PAGE BREAK--- 86 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE CITY COUNCIL CONSTRUCTION FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 3,332,477 $ 3,332,477 $ 1,856,962 $ (1,475,515) $ Investment income - - 100,704 100,704 Miscellaneous 160,000 160,000 145,772 (14,228) Total revenues 3,492,477 3,492,477 2,103,438 (1,389,039) EXPENDITURES: General government 300,000 300,000 - 300,000 Capital outlay 7,402,232 7,402,232 2,654,133 4,748,099 Total expenditures 7,702,232 7,702,232 2,654,133 5,048,099 Excess (deficiency) of revenues over (under) expenditures (4,209,755) (4,209,755) (550,695) 3,659,060 OTHER FINANCING SOURCES (USES): Transfers in 1,544,431 1,544,431 1,544,431 - Transfers (out) - - - - Total other financing sources (uses) 1,544,431 1,544,431 1,544,431 - Excess (deficiency) of revenues over expenditures and other financing sources (uses) (2,665,324) (2,665,324) 993,736 3,659,060 Fund balance at beginning of year 3,054,640 3,054,640 3,054,640 - Fund balance at end of year 389,316 $ 389,316 $ 4,048,376 $ 3,659,060 $ Budgeted Amounts ---PAGE BREAK--- 87 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION CONSTRUCTION FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Taxes and special assessments 140,000 $ 140,000 $ 128,000 $ (12,000) $ Investment income - - 3,762 3,762 Miscellaneous - - 32,177 32,177 Total revenues 140,000 140,000 163,939 23,939 EXPENDITURES: Culture and recreation 34,756 34,756 20,075 14,681 Capital outlay 199,000 199,000 36,961 162,039 Total expenditures 233,756 233,756 57,036 176,720 Excess (deficiency) of revenues over (under) expenditures (93,756) (93,756) 106,903 200,659 Fund balance at beginning of year 62,064 62,064 62,064 - Fund balance at end of year (31,692) $ (31,692) $ 168,967 $ 200,659 $ Budgeted Amounts ---PAGE BREAK--- 88 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE WEST LARAMIE CAPITAL PROJECTS FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income 4,200 $ 4,200 $ 3,800 $ (400) $ Total revenues 4,200 4,200 3,800 (400) EXPENDITURES: General government 443,718 443,718 - 443,718 Total expenditures 443,718 443,718 - 443,718 Excess (deficiency) of revenues over (under) expenditures (439,518) (439,518) 3,800 443,318 OTHER FINANCING SOURCES (USES): Transfers in 430,000 430,000 430,000 - Transfers (out) - - - - Total other financing sources (uses) 430,000 430,000 430,000 - Excess (deficiency) of revenues over expenditures and other financing sources (uses) (9,518) (9,518) 433,800 443,318 Fund balance at beginning of year 70,005 70,005 70,005 - Fund balance at end of year 60,487 $ 60,487 $ 503,805 $ 443,318 $ Budgeted Amounts ---PAGE BREAK--- 89 CITY OF LARAMIE, WYOMING BUDGETARY COMPARISON SCHEDULE RECREATION CENTER FUND For the Year Ended June 30, 2008 Actual Variance with Amounts Final Budget ` (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 50,000 $ 50,000 $ 50,000 $ - $ Investment income 100,000 100,000 57,602 (42,398) Charges for services 712,000 712,000 1,044,723 332,723 Miscellaneous 1,500 1,500 20,753 19,253 Total revenues 863,500 863,500 1,173,078 309,578 EXPENDITURES: Culture and recreation 1,464,163 1,464,163 1,406,075 58,088 Capital outlay - - 772 (772) Total expenditures 1,464,163 1,464,163 1,406,847 57,316 Excess (deficiency) of revenues over (under) expenditures (600,663) (600,663) (233,769) 366,894 OTHER FINANCING SOURCES (USES): Transfers in 600,633 600,633 600,633 - Total other financing sources (uses) 600,633 600,633 600,633 - Excess (deficiency) of revenues over expenditures and other financing sources (uses) (30) (30) 366,864 366,894 Fund balance at beginning of year 2,594,276 2,594,276 2,594,276 - Fund balance at end of year 2,594,246 $ 2,594,246 $ 2,961,140 $ 366,894 $ Budgeted Amounts ---PAGE BREAK--- 90 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 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--- FINANCIAL TRENDS INFORMATION ---PAGE BREAK--- 91 CITY OF LARAMIE, WYOMING NET ASSETS BY COMPONENT Last Six 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 governmenal 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 $ 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--- 92 2007 2008 41,790,914 $ 33,151,731 $ 12,123,210 26,639,695 17,141,553 21,297,756 71,055,677 $ 81,089,182 $ 44,717,590 $ 48,455,389 $ 13,636,224 17,791,445 58,353,814 $ 66,246,834 $ 86,508,504 $ 81,607,120 $ 12,123,210 26,639,695 30,777,777 39,089,201 129,409,491 $ 147,336,016 $ ---PAGE BREAK--- 93 CITY OF LARAMIE, WYOMING CHANGES IN NET ASSETS Last Six 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--- 94 2007 2008 449,172 $ 349,741 $ 1,602,031 1,614,403 406,871 305,086 235,608 247,994 5,063,200 5,638,682 6,248,176 6,686,404 4,231,843 4,477,800 891,698 1,125,564 3,360,767 4,758,799 340,783 369,047 256,408 267,558 926,471 1,565,351 2,363,886 2,475,019 187,409 231,371 482,963 532,592 - - 27,047,286 30,645,411 4,267,022 5,133,752 2,417,312 2,419,977 2,159,998 1,802,237 8,844,332 9,355,966 35,891,618 $ 40,001,377 $ 1,245,216 $ 973,372 $ 987,114 987,756 793,637 1,270,589 1,018,092 1,257,093 683,902 477,259 1,120,026 1,247,624 2,428,705 2,199,234 8,276,692 8,412,927 5,866,751 6,428,443 4,284,394 4,183,500 1,924,591 2,075,699 679,048 3,874,851 12,754,784 16,562,493 21,031,476 $ 24,975,420 $ ---PAGE BREAK--- 95 CITY OF LARAMIE, WYOMING CHANGES IN NET ASSETS Last Six 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--- 96 2007 2008 (18,770,594) $ (22,232,484) $ 3,910,452 7,206,527 (14,860,142) $ (15,025,957) $ 1,648,015 $ 2,036,893 $ 14,927,076 14,016,540 632,511 613,859 5,870,731 7,952,882 1,291,776 1,311,916 2,074,789 2,184,370 3,675,489 2,768,552 (9,966,996) (82,566) 20,153,391 30,802,446 769,147 603,926 9,966,996 82,566 10,736,143 686,492 30,889,534 $ 31,488,938 $ 1,382,797 $ 8,569,962 $ 14,646,595 7,893,019 16,029,392 $ 16,462,981 $ ---PAGE BREAK--- 97 CITY OF LARAMIE, WYOMING FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years 1999 2000 2001 2002 2003 General fund Reserved 282,320 $ 442,094 $ 270,771 $ 396,667 $ - $ Unreserved 399,253 283,910 1,606,273 6,313,113 7,185,959 Total general fund 681,573 $ 726,004 $ 1,877,044 $ 6,709,780 $ 7,185,959 $ All other governmental funds Reserved 339,778 $ 670,321 $ 635,615 $ 15,856 $ - $ Unreserved Special revenue funds 1,189,946 1,814,066 2,847,324 - 662,750 Capital project funds 647,006 539,597 572,974 1,140,276 22,641,524 Debt service funds 3,804,967 4,090,600 4,548,500 5,025,100 6,268,100 Total 5,981,697 $ 7,114,584 $ 8,604,413 $ 6,181,232 $ 29,572,374 $ ---PAGE BREAK--- 98 2004 2005 2006 2007 2008 - $ 2,000,000 $ - $ - $ - $ 7,924,319 9,040,699 12,980,963 15,374,284 17,320,437 7,924,319 $ 11,040,699 $ 12,980,963 $ 15,374,284 $ 17,320,437 $ 2,000,000 $ - $ 2,002,100 $ 2,002,100 $ 2,217,003 $ 696,883 728,133 1,439,905 1,671,269 2,144,434 13,820,590 11,775,620 7,888,749 12,115,364 16,506,692 5,967,300 6,849,000 6,503,000 6,934,400 7,916,000 22,484,773 $ 19,352,753 $ 17,833,754 $ 22,723,133 $ 28,784,129 $ ---PAGE BREAK--- 99 CITY OF LARAMIE, WYOMING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE- GOVERNMENTAL FUNDS Last Ten Fiscal Years 1999 2000 2001 2002 2003 Revenues Taxes and special assessments 4,590,135 $ 4,820,338 $ 5,512,352 $ 1,911,211 $ 2,680,180 $ Licenses and permits 334,398 335,243 379,020 375,011 95,220 Intergovernmental 7,746,707 8,363,650 9,617,179 14,199,814 17,042,650 Charges for services 665,823 493,042 503,764 530,853 1,279,033 Fines and forfeitures 369,158 426,974 345,482 448,319 626,390 Investment income 181,544 459,409 732,896 678,131 1,967,901 Miscellaneous 589,537 495,384 337,424 134,052 354,315 Total revenues 14,477,302 15,394,040 17,428,117 18,277,391 24,045,689 Expenditures General government 4,099,088 3,900,265 3,998,608 2,037,302 3,221,142 Public safety 5,656,435 5,754,118 6,386,451 7,748,430 8,212,728 Health and welfare 256,642 182,694 317,145 401,177 413,595 Highways and streets 2,514,646 2,350,806 2,345,769 1,362,312 1,117,240 Culture and recreation 1,446,613 1,364,482 1,505,074 1,360,074 1,547,779 Capital outlay 1,416,293 818,560 515,915 2,756,178 3,741,222 Debt service funds Interest 40,000 39,005 85,487 470,242 1,722,298 Principal 4,167 26,197 30,743 35,269 378,598 Total expenditures 15,433,884 14,436,127 15,185,192 16,170,984 20,354,602 Excess of revenues over (under) expenditures (956,582) 957,913 2,242,925 2,106,407 3,691,087 Other financing sources (uses) Proceeds from borrowing - - 180,000 741,000 20,162,133 Transfers to component unit (28,917) Transfers in 217,531 291,005 398,011 697,713 303,690 Transfers out (358,300) (71,600) (180,167) (417,591) - Total other financing sources (uses) (169,686) 219,405 397,844 1,021,122 20,465,823 Net change in fund balance (1,126,268) $ 1,177,318 $ 2,640,769 $ 3,127,529 $ 24,156,910 $ Debt service as a percentage of noncapital expenditures 0.32% 0.48% 0.79% 3.77% 12.65% *For years after 2006, the capital outlay is included in the respective department ---PAGE BREAK--- 100 2004 2005 2006 2007 2008 3,281,865 $ 2,818,761 $ 9,853,869 $ 8,024,372 $ 7,055,700 $ 99,187 99,791 102,389 104,249 126,360 16,895,276 19,464,215 17,885,383 21,808,588 23,284,671 1,252,027 2,188,326 1,541,310 1,653,256 1,986,657 665,178 791,903 769,563 850,506 621,184 (55,854) 1,345,084 1,031,573 2,109,599 2,120,216 1,519,264 2,275,938 1,220,635 1,029,642 1,434,977 23,656,943 28,984,018 32,404,722 35,580,212 36,629,765 3,222,399 3,422,278 14,683,043 8,863,131 8,184,686 8,225,138 9,107,839 10,184,880 12,077,557 11,914,975 434,485 520,424 523,565 1,153,186 611,290 981,869 1,156,094 1,741,642 3,563,194 3,445,097 1,466,266 2,589,132 3,011,694 2,017,109 3,194,597 12,702,924 9,590,549 - - - 2,009,188 2,107,776 1,973,994 2,295,794 2,350,784 726,497 646,525 599,651 557,395 550,194 29,768,766 29,140,617 32,718,469 30,527,366 30,251,623 (6,111,823) (156,599) (313,747) 5,052,846 6,378,142 - - - 1,881,764 268,861 4,130,760 2,254,474 1,590,939 3,180,792 2,958,986 (4,368,179) (2,246,884) (1,242,849) (2,832,702) (2,964,722) (237,419) 7,590 348,090 2,229,854 263,125 (6,349,242) $ (149,009) $ 34,343 $ 7,282,700 $ 6,641,267 $ 16.03% 14.09% 11.69% 11.53% 10.39% ---PAGE BREAK--- 101 CITY OF LARAMIE, WYOMING GENERAL GOVERNMENT EXPENDITURE BY FUNCTION Last Ten Fiscal Years Streets and Fiscal Year City Manager Legal Finance Engineering Alleys 1999 158,675 $ 135,744 $ 223,350 $ 226,096 $ 2,288,550 $ 2000 184,221 133,985 239,533 243,811 1,778,564 2001 243,534 135,611 320,942 322,837 2,022,932 2002 174,071 152,341 823,571 223,444 1,699,254 2003 283,699 158,290 503,000 262,283 1,534,511 2004 339,253 156,537 510,704 257,224 1,421,900 2005 303,027 170,164 536,984 349,813 1,212,319 2006 423,091 208,313 586,829 385,659 2,892,695 2007 449,172 241,512 684,987 460,403 2,366,952 2008 349,602 244,835 745,443 667,827 3,445,097 Other General Mosquito Fiscal Year Municipal Court Accounts Control Cemetery 1999 115,059 $ 3,667,171 $ 201,727 $ 182,175 $ 2000 125,944 3,475,794 182,694 183,442 2001 132,934 3,431,545 202,627 204,076 2002 134,638 1,924,751 171,191 200,786 2003 166,750 2,439,628 156,411 182,763 2004 178,048 2,228,227 171,377 196,554 2005 226,819 6,695,892 253,999 164,063 2006 252,871 2,591,991 236,620 142,233 2007 406,871 4,926,142 263,278 175,313 2008 297,660 6,897,669 257,823 219,708 Notes: Includes General, Special Revenue and Debt Service funds. Other general accounts include expenditures for audits, Chamber of Commerce, City Council, insurance, printing, professional and consulting, social services and street lighting. Includes retirement of Special Assessment debt reclassified per GASB Includes Police and Fire Departments, Emergency management and Animal Control. ---PAGE BREAK--- 102 Parks and Recreation Public Safety Health 1,122,475 $ $ 5,423,576(4) 54,915 $ 909,109 6,036,845(4) - 1,006,924 6,566,451(4) 114,518 1,029,013 7,851,056(4) - 1,297,917 8,900,271(4) - 1,374,752 9,264,227(4) - 2,342,368 9,345,293(4) - 1,692,506 10,600,057(4) - 1,718,585 12,258,659(4) - 2,079,672 11,914,975(4) - Planning Debt Service Total 176,150 $ $ 41,928(3) 14,017,591 $ 123,625 - 13,617,567 144,346 - 14,849,277 579,442 - 14,963,558 176,059 - 16,061,582 138,469 - 16,237,272 190,990 - 21,791,731 351,939 - 20,364,804 266,485 - 24,217,359 420,144 - 27,540,455 ---PAGE BREAK--- REVENUE CAPACITY INFORMATION ---PAGE BREAK--- 103 CITY OF LARAMIE, WYOMING GENERAL GOVERNMENT REVENUES BY FUNCTION Last Ten Fiscal Years Special Licenses and Intergovernmental Charges for Fiscal Year Taxes Assessment Permits Revenue Services 1999 4,566,107 $ 19,666 $ 334,398 $ 7,041,681 $ 665,823 $ 2000 4,805,893 7,924 335,243 7,986,985 665,853 2001 5,508,129 4,531 379,020 9,451,424 503,764 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 Notes: Includes General, Special Revenue and Debt Service fund type. ---PAGE BREAK--- 104 Fines and Interest and Forfeits Miscellaneous Total 369,158 $ 332,127 $ 13,328,960 $ 426,974 499,740 14,728,612 345,482 803,457 16,995,807 448,319 683,416 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 1,961,065 29,347,457 ---PAGE BREAK--- 105 CITY OF LARAMIE, WYOMING TAX REVENUE BY SOURCE Last Ten Fiscal Years General Automobile Franchise Fiscal Year Total Taxes Property Taxes Taxes Taxes Sales Tax 1999 8,726,752 $ 757,686 $ 319,466 $ 433,376 $ 6,098,999 $ 2000 9,133,269 775,837 323,571 449,982 6,342,954 2001 9,920,114 892,417 342,999 734,770 6,738,210 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 14,195,145 1,480,345 432,209 1,311,916 9,341,454 Note: Includes one percent optional sales tax. ---PAGE BREAK--- 106 Use Tax Cigarette Tax Gasoline Tax 466,959 $ 167,390 $ 482,876 $ 547,614 173,480 519,831 647,795 157,554 406,369 503,041 153,227 454,854 499,348 149,831 452,880 618,249 148,747 543,734 825,991 131,578 565,704 889,635 137,136 531,793 2,043,588 112,317 632,511 900,205 115,157 613,859 ---PAGE BREAK--- 107 CITY OF LARAMIE, WYOMING ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Assessed Estimated Assessed Estimated Fiscal Year Value Actual Value Value Actual Value 1999 89,887,814 $ 946,187,516 $ 4,509,184 $ 47,465,095 $ 2000 92,751,749 976,334,196 4,681,457 49,278,498 2001 102,081,098 1,074,537,873 5,837,634 61,448,776 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 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--- 108 Ratio of Total Assessed Value Assessed Estimated to Estimated Value Actual Value Actual Value 94,396,998 $ 993,652,611 $ 9.50 97,433,206 1,025,612,694 9.50 107,918,732 1,135,986,649 9.50 115,470,159 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 1,498,248,790 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 Total ---PAGE BREAK--- 109 CITY OF LARAMIE, WYOMING 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 1999 8.00 - 8.00 35.00 13.44 2000 8.00 - 8.00 35.00 13.50 2001 8.00 - 8.00 35.00 13.94 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 13.75 2006 8.00 - 8.00 35.00 14.00 2007 8.00 - 8.00 34.00 14.00 2008 8.00 - 8.00 34.00 14.00 1999 755,176 $ - $ 755,176 $ 3,303,895 $ 1,268,696 $ 2000 779,466 - 779,466 3,410,162 1,315,348 2001 863,350 - 863,350 3,777,156 1,504,279 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 1,138,669 - 1,138,669 4,981,677 1,957,087 2006 1,265,832 - 1,265,832 5,538,014 2,215,205 2007 1,367,457 - 1,367,457 5,811,694 2,393,050 2008 1,500,364 - 1,500,364 6,376,547 2,625,637 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 TAX RATES (IN MILS) ---PAGE BREAK--- 110 Downtown Hospital Development State District District Total 12.00 3.00 30.00 101.44 12.00 3.00 30.00 101.50 12.00 3.00 - 71.94 12.00 3.00 - 71.94 12.00 3.00 - 71.94 12.00 3.00 - 71.94 12.00 3.00 - 71.75 12.00 3.00 - 72.00 12.00 3.00 - 71.00 12.00 3.00 - 71.00 1,132,764 $ 283,191 $ 89,117 $ 6,832,839 $ 1,169,198 292,300 85,143 7,051,617 1,295,025 323,756 - 7,763,566 1,385,642 346,410 - 8,306,923 1,385,666 346,416 - 8,307,067 1,604,031 401,008 - 9,560,569 1,708,004 427,001 - 10,212,438 1,898,748 474,687 - 11,392,486 2,051,186 512,797 - 12,136,184 2,250,546 562,637 - 13,315,731 Notes: Source - Albany County Assessor Mil levy only applied to property in a specified business district. ---PAGE BREAK--- 111 CITY OF LARAMIE, WYOMING PRINCIPAL TAXPAYERS CURRENT YEAR AND TEN YEARS AGO(1) June 30, 2008 Percentage of 2007 Total Assessed Assessed Taxpayer Type of Business Value Valuation 1 Wal Mart Stores, Inc. Retail 1,328,072 $ 0.84% 2 Binford Street Associates, LLC Apartment Buildings 1,025,009 0.65% 3 MJB Acquisition Corp., a Wyoming Company Technical School 957,642 0.61% 4 Mountain West Farm Bureau Mutual Insurance Co. Insurance Company 782,810 0.49% 5 RMFP Corporation Commercial Rental 564,035 0.36% 6 B Hive, Inc Real Estate Rental 469,519 0.30% 7 Laramie Plains Properties Rental 429,780 0.27% 8 WY Plaza, LC Commercial Rental 392,743 0.25% 9 Gem City Properties Commercial Rental 357,722 0.23% 10 Foster's Inc. Commercial Property 328,880 0.21% 6,636,212 $ 4.19% Percentage of 1998 Total Assessed Assessed Taxpayer Type of Business Value Valuation 1 U.S. West Communications, Inc Communications 686,985 $ 0.73% 2 KN Retail Natural Gas Utility 603,448 0.64% 3 Pacificorp Electric Utility 496,736 0.53% 4 HEE Investments Real Estate Rental 468,750 0.50% 5 Wal-Mart Stores Retail 425,536 0.45% 6 Petro PSC Properties Retail 384,755 0.41% 7 Fosters, Inc. Retail/Motel 351,637 0.37% 8 TMP Gateway Commercial Rental 331,412 0.35% 9 Lazy A Cattle Co., LLC Commercial Rental 313,021 0.33% 10 Gem City Properties Commercial Rental 287,147 0.30% 4,349,427 $ 4.61% Source - Albany County Assessor ---PAGE BREAK--- 112 CITY OF LARAMIE, WYOMING PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Current Tax Percent of Levy Delinquent Tax Fiscal Year Total Tax Levy Collections Collected Collections 1999 749,692 $ 707,890 $ 94.4 43,647 $ 2000 779,467 702,919 90.2 55,860 2001 787,629 742,681 94.3 69,250 2002 842,599 803,324 95.3 56,781 2003 923,777 862,918 93.4 112,205 2004 1,013,757 970,150 95.7 28,843 2005 1,139,669 936,426 82.2 52,457 2006 1,265,832 1,210,503 95.6 98,715 2007 1,367,457 1,314,926 96.2 45,109 2008 1,500,364 1,445,066 96.3 39,245 Notes: Source - Albany County Treasurer ---PAGE BREAK--- 113 Percent of Percent of Total Tax Outstanding Delinquent Total Tax Collections to Delinquent Taxes to Tax Collections Tax Levy Taxes Levy 751,537 $ 100.2 40,289 $ 5.4 758,779 97.3 62,653 8.0 811,931 103.1 62,144 7.9 860,105 102.1 35,671 4.2 975,123 105.6 71,890 7.8 998,993 98.5 57,945 5.7 988,883 86.8 149,786 13.1 1,309,218 103.4 30,187 2.4 1,360,035 99.5 52,531 3.8 1,484,311 98.9 68,584 4.6 ---PAGE BREAK--- DEBT CAPACITY INFORMATION ---PAGE BREAK--- 114 CITY OF LARAMIE, WYOMING COMPUTATION OF LEGAL DEBT MARGIN – GENERAL OBLIGATION End of Fiscal Year 2007-2008 Assessed value 187,545,559 $ Debt limit 4% of assessed value 7,501,822 Total amount of debt applicable to debt limit - Legal debt margin 7,501,822 $ 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 1999 3,778,550 $ - $ 3,778,550 $ 0.00% 2000 3,897,328 - 3,897,328 0.00% 2001 4,316,749 - 4,316,749 0.00% 2002 4,618,806 - 4,618,806 0.00% 2003 5,068,785 - 5,068,785 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 7,501,822 - 7,501,822 0.00% ---PAGE BREAK--- 115 CITY OF LARAMIE, WYOMING COMPUTATION OF DIRECT AND OVERLAPPING DEBT End of Fiscal Year 1999 2000 2001 2002 Overlapping Net Debt Outstanding Albany County School District One 8,450,000 $ 7,580,000 $ 6,670,000 $ 5,725,000 $ Percentage applicable to City 59.44% 59.44% 59.44% 59.44% City's Estimated Share of Overlapping Debt 5,022,680 4,505,552 3,964,648 3,402,940 Overlapping Net Debt Outstanding Albany County Jail/Communications Center 1,300,000 1,000,000 700,000 375,000 Percentage applicable to City 59.44% 59.44% 59.44% 59.44% City's Estimated Share of Overlapping Debt 772,720 594,400 416,080 222,900 City Direct Debt - - - - Total Direct and Overlapping Debt 5,795,400 $ 5,099,952 $ 4,380,728 $ 3,625,840 $ Note: Source - Albany County Treasurer ---PAGE BREAK--- 116 2003 2004 2005 2006 2007 2008 4,910,000 $ 3,755,000 $ 2,840,000 $ 1,910,000 $ 965,000 $ - $ 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% 2,918,504 2,231,972 1,688,096 1,135,304 573,596 - - - - - - - 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% - - - - - - - - - - - - 2,918,504 $ 2,231,972 $ 1,688,096 $ 1,135,304 $ 573,596 $ - $ ---PAGE BREAK--- 117 CITY OF LARAMIE, WYOMING RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years General Total Obligation Notes Capital Governmental Fiscal Year Bonds Payable Leases Activities 1999 - $ 10,345,000 $ 83,929 $ 10,428,929 $ 2000 - 10,555,739 95,459 10,651,198 2001 - 10,779,384 229,087 11,008,471 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 Governmental Activities ---PAGE BREAK--- 118 Total Total Percentage Revenue Notes Capital Business-Type Primary of Personal Bonds Payable Leases Activities Government Income Per Capita 825,000 $ 16,492,552 $ 796,293 $ 18,113,845 $ 28,542,774 $ 4.22% 1,053.39 $ 525,000 18,745,169 114,826 19,384,995 30,036,193 4.20% 1,101.84 - 20,441,354 137,457 20,578,811 31,587,282 4.25% 1,161.13 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% 1,445.66 Business-Type Activities ---PAGE BREAK--- 119 CITY OF LARAMIE, WYOMING RATIO OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years Percentage of General Actual Taxable Bonded Debt Value of Fiscal Year Outstanding Property Per Capita 1999 - $ 0.00% - $ 2000 - 0.00% - 2001 - 0.00% - 2002 - 0.00% - 2003 - 0.00% - 2004 - 0.00% - 2005 - 0.00% - 2006 - 0.00% - 2007 - 0.00% - 2008 - 0.00% - ---PAGE BREAK--- 120 CITY OF LARAMIE, WYOMING 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 1999 - $ - $ - $ 14,039,563 $ 0.00% 2000 - - - 13,617,567 0.00% 2001 - - - 15,550,063 0.00% 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 - - - 27,540,455 0.00% Notes: Includes General and Debt Service Funds Includes General, Special Revenue and Debt Service Funds Tax Supported Debt ---PAGE BREAK--- DEMOGRAPHIC AND ECONOMIC INFORMATION ---PAGE BREAK--- 121 CITY OF LARAMIE, WYOMING 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 1999 27,096(6) 20,588 675,938,000 25.6 1.8 3,868 2000 27,260(6) 21,863 715,337,000 25.6 2.1 3,885 2001 27,204(7) 23,335 742,831,000 25.3 1.9 3,791 2002 27,204(7) 24,989 795,661,000 26.7 2.2 3,790 2003 27,204(7) 36,639 841,571,000 26.7 1.8 3,659 2004 26,956(6) 27,998 882,802,000 26.7 1.7 3,639 2005 26,441(6) 29,810 935,936,000 28.6 3.0 3,559 2006 26,441(6) 30,524 961,022,000 30.3 2.9 3,485 2007 26,441(6) 30,810 991,318,000 26.8 3.0 3,491 2008 27,204(6) 28,077 1,055,684,000 26.7 2.4 3,507 Sources: Wyoming Department of Education 2003 Census. U.S. Commerce Department- Bureau of Economic Analysis 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. ---PAGE BREAK--- 122 Education Number of Centers Teachers Area 15 302 11 Sq. Miles 15 302 11 Sq. Miles 15 327 11 Sq. Miles 15 329 11 Sq. Miles 15 331 11 Sq. Miles 15 330 11 Sq. Miles 15 332 11 Sq. Miles 18 331 11 Sq. Miles 18 316 11.1 Sq. Miles 19 414 11.1 Sq. Miles ---PAGE BREAK--- 123 CITY OF LARAMIE, WYOMING 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 5,225 24.35% 2 Albany County School District Educational 896 4.18% 3 Ivinson Memorial Hospital Healthcare 473 2.20% 4 Albany County County Government 380 1.77% 5 Wal-Mart Retail 380 1.77% 6 Wyoming Technical Institute Educational 360 1.68% 7 City of Laramie City Government 295 1.37% 8 ARK Regional Services Non-Profit 200 0.93% 9 Howard Johnson's Hotel 185 0.86% 10 Trihydro Environmental consulting 162 0.76% Total 8,556 39.88% 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 Educational 901 5.09% 3 Ivinson Memorial Hospital Healthcare 470 2.65% 4 Albany County County Government 366 2.07% 5 Wyoming Technical Institute Educational 355 2.00% 6 City of Laramie City Government 277 1.56% 7 Wal-Mart Retail 275 1.55% 8 Foster's, Inc Hotel 205 1.16% 9 ARK Regional Services Non-Profit 159 0.90% 10 Rocky Mountain Forest Products Manufacturing 132 0.75% Total 8,115 45.82% Fiscal Year 1999 Fiscal Year 2008 ---PAGE BREAK--- OPERATING INFORMATION ---PAGE BREAK--- 124 CITY OF LARAMIE, WYOMING FULL-TIME EQUIVALENT CITY OF LARAMIE EMPLOYEES AND OTHER OPERATING STATISTICS Last Ten Fiscal Years Fiscal Total City Admiistrative General Year Employees Manager Services Judicial Legal Government Fire Police 1999 191.7 3.0 7.0 2.5 2.0 61.9 39.5 75.8 2000 191.6 3.0 7.0 2.5 2.0 61.9 39.5 75.7 2001 197.9 3.0 8.0 3.0 2.0 61.4 43.5 77.0 2002 200.0 3.0 8.0 2.0 - 62.0 45.0 80.0 2003 203.6 3.5 9.0 2.0 - 66.1 43.0 80.0 2004 203.6 3.5 8.0 3.0 - 66.1 43.0 80.0 2005 198.6 4.0 10.0 3.0 - 60.1 43.0 78.5 2006 205.1 5.0 12.5 3.0 - 64.1 42.0 78.5 2007 216.0 5.0 13.5 4.0 3.0 67.5 42.0 81.0 2008 218.8 4.7 14.0 4.0 3.5 69.8 43.0 79.8 Budgeted Full-Time Equivalent City Government Employees by Function Per City of Laramie Administrative Services Department ---PAGE BREAK--- 125 Building Number Number Highways Parks & Miles of Number of Permits of Fire of Police Engineering & Streets Recreation Streets Street Lights Issued Stations Stations 8.0 15.4 12.8 135 975 353 2 1 8.0 15.4 12.8 137 990 1,419 2 1 8.0 15.4 12.8 138 1,002 1,419 2 1 8.0 15.0 13.5 138 1,002 1,468 2 1 8.0 11.4 13.5 140 1,010 389 2 1 8.0 10.9 16.5 142 1,012 426 2 1 10.0 10.9 21.5 142 1,012 443 2 1 11.0 10.9 22.5 143 1,013 369 2 1 12.0 12.0 24.5 180 1,040 1,556 2 1 12.0 12.0 24.5 185 1,060 1,787 2 2 ---PAGE BREAK--- 126 CITY OF LARAMIE, WYOMING CAPITAL ASSET STATISTICS Last Ten Fiscal Years Acres of Estimated Feet of Feet of Landfill Fiscal Number of Daily Water Water Sewer Capacity Number Number Year Customers Consumption Lines Lines Used Parks Libraries 1999 7,440 5,700,000 739,200 448,800 2.9 13 1 2000 7,513 6,400,000 955,680 712,800 2.7 15 1 2001 7,612 7,200,000 955,680 712,800 2.9 15 1 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 Municipal Water Department Per City of Laramie Public Works Department ---PAGE BREAK--- 127 CITY OF LARAMIE, WYOMING PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years Number of Number of Fiscal Year Units Value Units Value 1999 14 2,215,988 $ 104 9,176,953 $ 2000 16 12,613,938 48 7,481,448 2001 13 5,477,376 62 13,568,581 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 23,391,155 Notes: City of Laramie Engineers Office Wyoming State Bank Examiner Albany County Assessor estimated actual values The 2008 amount was not available at report date Commercial Construction Residential Construction ---PAGE BREAK--- 128 Bank Deposits (Thousands) Property Value 272,174 $ 993,651,611 $ 296,951 1,025,612,694 310,719 1,135,986,649 311,247 1,215,475,358 327,518 1,296,123,158 336,100 1,407,044,768 347,799 1,498,248,790 351,488 1,665,567,979 377,405 1,799,286,032 377,405(4) 2,067,935,916 ---PAGE BREAK--- 129 CITY OF LARAMIE, WYOMING INSURANCE IN FORCE End of Fiscal Year 2007-2008 Policy Number From To Casualty Insurance: Wyoming Association for Risk Management- an intergovernmental Risk Sharing Pool None 7/1/2007 6/30/2008 Property: Driver Alliant Insurance Services All risk of direct physical loss or damage 7/1/2007 6/30/2008 Earthquake 7/1/2007 6/30/2008 Flood 7/1/2007 6/30/2008 Police Professional Liability Policy: Compass Insurance Company Type of Coverage and Name of Company ---PAGE BREAK--- 130 Liability Limits Annual Premiums Scheduled exposure, general liability, automobile liability, $250,000 per claimant 198,498 $ 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 $ 63,466 $ 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--- 131 CITY OF LARAMIE, WYOMING SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS For Fiscal Year Ended June 30, 2008 Name and Title of Official Annual Salary Amount of Surety Bond Janine Jordon City Manager $107,120 $10,000 blanket coverage Malea Brown Administrative Services Director $99,674 50,000 Klaus Hanson Mayor and President $50 per meeting attended None of City Council David C. Clark City Attorney $91,666 10,000 All other employees $10,000 blanket coverage ---PAGE BREAK--- 132 CITY OF LARAMIE, WYOMING 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 First 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 The day following public hearing Adoption of the final budget by City Council. 12 End of August Final budget is printed and distributed.