Document Laramie_doc_cf68c6b37b

Comprehensive Annual Financial Report City of Laramie, Wyoming Fiscal Year 2012 July 1, 2011 to June 30, 2012 ---PAGE BREAK--- The City of Laramie The City of Laramie, Wyoming is located 49 miles from the state capital, Cheyenne, and 130 miles from the metropolitan city, Denver, Colorado. Laramie’s elevation is 7,165 feet above sea level and it is situated on the eastern edge of a large, nearly level plateau called the Laramie Plains. The City of Laramie is encircled by the Laramie Mountain Range to the east and north and by the Medicine Bow Range to the south and west. Laramie is one of Wyoming’s 17 “first-class” cities with a population over 4,000. The 2010 Census population of Laramie was 30,816. The City of Laramie is home to the University of Wyoming, the state’s only four-year educational institution. On March 4, 1886, Francis E. Warren, governor of the then Wyoming Territory, signed a bill that would establish the University of Wyoming. This bill authorized a sum of $50,000 to construct the first University building, later named Old Main in 1949. Old Main’s cornerstone was laid on September 27, 1886 with the inscription, “Domi Habuit Unde Discret” meaning “He has a home where he may learn.” On September 6, 1887, the doors of Old Main opened as the University’s only building, along with the University’s five professors, two tutors, and its first class which consisted of 42 men and women. These students studied Philosophy, Arts, Literature and Sciences. During the University of Wyoming’s first ten years in operation, Old Main simultaneously housed the school’s classrooms, Library and Administration Building. Old Main was designed by Denver architect, Frederick A. Hale, and constructed by Cook & Callahan of Laramie. Sandstone for the building was mined from a quarry east of Laramie and the sandstone trim was brought in from Rawlins. Now 125 years after its opening, the University of Wyoming provides over 13,000 students with 197 different programs of study at the undergraduate, graduate and professional levels. The University now serves as an integral part of the City of Laramie, imparting knowledge to students from all over the world right from Laramie, Wyoming. Old Main, University of Wyoming, 1908 Photo Courtesy of the Library of Congress Source: www.uwyo.edu ---PAGE BREAK--- TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Letter of Transmittal 1-5 Certificate of Achievement 6 City of Laramie Organization Chart 7 List of Officials 8 II. FINANCIAL SECTION Independent Auditors’ Report 9-10 A. MANAGEMENT’S DISCUSSION AND ANALYSIS 11-35 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets 36 Statement of Activities 37-38 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet 39 Reconciliation of the Balance Sheet to the Statement of Net Assets- Governmental Funds 40 Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds 41 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities- Governmental Funds 42-43 Proprietary Fund Financial Statements Statement of Net Assets- Proprietary Funds 44-45 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds 46 Statement of Cash Flows- Proprietary Funds 47-48 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets 49 Statement of Changes in Fiduciary Net Assets 50 Notes to Basic Financial Statements 51-85 ---PAGE BREAK--- C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A Index to Illustrative Required Supplementary Information 86 Public Employee, Police Officer and Firemen’s Pension Fund Funding Progress Schedule 87 Budgetary Comparison Schedule- General Fund General Fund 88-89 Notes to Required Supplementary Information- Budgetary Comparisons 90 D. COMBINING FINANCIAL STATEMENTS Non-Major Governmental Funds Combining Balance Sheet Other Governmental Funds 91-92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- Other Governmental Funds 93-94 E. SUPPLEMENTAL INFORMATION Budgetary Comparison Schedules Other Governmental Funds Specific Purpose Tax Fund 95 Wyoming Territorial Prison Debt Service Fund 96 Capital Construction Fund 97 Economic Development Fund 98 Recreation Center Fund 99 Emergency 911 Fund 100 Parks and Recreation Construction Fund 101 West Laramie Capital Projects Fund 102 III. STATISTICAL SECTION 103 A. FINANCIAL TRENDS INFORMATION Net Assets by Component 104-105 Changes in Net Assets 106-109 Fund Balances, Governmental Funds 110-111 Statement of Revenues, Expenditures, and Changes in Fund Balance- Governmental Funds 112-113 General Government Expenditure by Function 114-115 ---PAGE BREAK--- B. REVENUE CAPACITY INFORMATION General Government Revenues by Source 116-117 Tax Revenue by Source 118-119 Direct and Overlapping Sales Tax Rates 120 Principal Sales Tax Remitters 121 Assessed and Estimated Actual Value of Taxable Property 122-123 Property Tax Rates and Tax Levies-Direct and Overlapping Governments 124-125 Principal Taxpayers 126 Property Tax Levies and Collections 127-128 C. DEBT CAPACITY INFORMATION Computation of Legal Debt Margin – General Obligation 129 Computation of Legal Debt Margin – Sewer 130 Computation of Direct and Overlapping Debt 131-132 Ratio of Outstanding Debt by Type 133-134 Ratio of General Bonded Debt Outstanding 135 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 136 D. DEMOGRAPHIC AND ECONOMIC INFORMATION Demographic and Economic Statistics 137-138 Major Employers in Albany County 139 E. OPERATING INFORMATION Full-Time Equivalent City of Laramie Employees and Other Operating Statistics 140-141 Capital Asset Statistics 142 Property Value, Construction and Bank Deposits 143-144 Insurance in Force 145-146 Salaries and Surety Bonds of Principal Officials 147 Annual Budget Process 148 ---PAGE BREAK--- City of Laramie Administrative Services P.O. Box C Laramie, Wyoming 82073 (307) 721-5200 FAX (307) 721-5211 TDD (307) 721-5295 December 1, 2012 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, 2012 in compliance with all applicable state statutes. 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 statements and other 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, 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, 2012 are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and evaluating the overall financial statement presentation. The independent auditors have issued an unqualified opinion on the City of Laramie’s financial statements for the year ended June 30, 2012, which are fairly presented in conformity with accounting principles generally accepted in the United States of America, and 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 complement 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 the Government The City of Laramie, Wyoming, has a population of 31,312 and is located in Albany County, in the south- east corner of Wyoming. The City is a Wyoming municipality with a Council-Manager form of ---PAGE BREAK--- 2 government. The nine-member City Council is comprised of the Mayor (elected by council) and eight representatives from the ward system. Laramie sits at an elevation of 7,200 feet, in a high valley between two mountain ranges, and is home to the University of Wyoming. Laramie’s establishment and growth were initially fueled by the railroad. In 1866, the route for a transcontinental railroad was selected, and Laramie’s future was set in motion. As the railroad approached the Laramie area, Union Pacific (UP) employees and tradesmen began arriving. In the spring of 1868, the UP Railroad’s chief surveyor, General Grenville Dodge, selected the Laramie town site and its name, Laramie City. The railroad began selling lots in April of that year. On May 9, the line through Laramie was completed and the first train arrived the following day. The City was incorporated on December 12, 1873, seventeen years before Wyoming became a state. Today, Laramie is still a small town and sits on the high plains prairie of the Medicine Bow Mountain Range. The City of Laramie acts as a transportation corridor for the east/west connections of Interstate 80. The location provides connections for trucks, interstate traffic, and traditional rail freight cars traversing the Rocky Mountain region. The Union Pacific Railroad mainline operates over 55 freight trains on a daily basis through Laramie. Interstate 80’s highest point, 8,640 feet, is at the summit of the Laramie Range in the Pole Mountain Area. While it is a small town, Laramie boasts amenities that are characteristic of larger communities. The University of Wyoming (UW) is the only public four-year higher education institution in the state. Not only does UW provide outstanding opportunities for higher education, it enhances the community through award-winning cultural programs and Division 1-A Intercollegiate athletic events. Residents from across Wyoming travel to Laramie to take advantage of its university scene, and the local economy benefits from these consistent visitors. Laramie is also home to the Wyoming Technical Automotive School, and Laramie County Community College at Albany County Campus. Laramie’s educational resources provide the city with an additional temporary population of around 15,000 annually. The City of Laramie provides regular community services to its citizens. Among those are law enforcement; emergency services; animal control; code inspections and enforcement; building permits; local licensing; parking enforcement; planning and zoning regulation; parks and recreation; street maintenance; mosquito control; water; sewer; and garbage collection and disposal. Wyoming state statute requires that the budget must be balanced, adopted by the third Tuesday in June, and that the fiscal year for local governments be from July 1 through June 30. The budget is founded upon City Council’s goals and objectives, and identifies the resources necessary to accomplish related initiatives. The City Council adopts the budget through resolution, which is a binding formal action of the governing body. The legal level of budgetary control is generally at the department and fund level, depending on the type of fund. However, capital and one time expenditure appropriations are controlled as specific budgetary items and related changes are treated as amendments or transfers, regardless of whether departmental or fund resources are over expended. Appropriations lapse at the fiscal year end and incomplete projects must be re-appropriated in the next fiscal year as part of the annual budget adoption process. For fiscal years 2011 and 2012, the City adopted a biennial budget for the General Fund and Recreation Center special revenue fund and an annual budget for all other funds. The City did not exceed legally-adopted budget appropriations during the 2011-2012 fiscal years. ---PAGE BREAK--- 3 Local Economy The state of Wyoming is a large, sparsely populated state with a centralized economy based on natural resources, energy sources, and tourism. The heart of Albany County is the City of Laramie. The City of Laramie holds 85% of the population of the entire county. Albany County does not have natural resource base that is subject to economic boom-bust cycles; instead, it has a stable economy based on the University of Wyoming, small business development, and other academic sources. The top four employers in Albany County are the University of Wyoming, Albany County School District, Albany County Hospital District, and Wal-Mart. The principal sales tax remitters for the county are Wal-Mart Stores, Inc., PacifiCorp, University of Wyoming, and Verizon Wireless LLC. The most recent estimates show that Albany County per capita personal income lags behind both state and national averages, which contains a degree of bias due to the large student population. Albany County has a labor force of around 19,500, and a current unemployment rate of around 5.3 percent, which is below the state average of 5.4 percent. The Wyoming Comparative Cost of Living Index indicates a value of 102 for Albany County, with 100 representing the statewide average. The inflation rate in the past year has fluctuated between 2.0 and 4.1 percent in southeastern Wyoming. Wyoming’s economic recovery has continued, thanks to the ongoing rebound of the energy industry, in fiscal year 2012. According to a state economic report, the second quarter of 2012 showed only moderate economic growth as lower prices for coal and natural gas depressed the state’s energy extraction industry. The State’s unemployment rate dropped to 5.3 percent in the second quarter, while it dropped to 8.2 percent in the U.S. for the same period. Most industries in Wyoming showed job growth, with construction, the transportation and utility industry, and financial activities exhibiting the only declines. Retail trade showed the most accelerated increase, with a 4.5 percent growth rate between the second quarters of 2011 and 2012. At the state level, sales tax revenue has seen a 2.6% increase in quarter two of 2012 compared to the second quarter of 2011, which was the slowest growth rate since the first quarter of 2010. Albany County experienced a 2.9% increase in sales tax collections during the previous year. Revenues have been consistent relative to mineral-rich counties in other parts of the state that experience much greater swings. While the City does not see large fluctuations in revenue, it has one of the lowest per capital revenue collection rates in the state. The City has addressed the challenge of limited revenue sources during the past few years through proactive budgeting and currently has a stable financial position because of these measures. Major Initiatives and Long-Term Capital Planning The City of Laramie council and management continue working on long-term plans that will ensure the City can sustainably meet its obligations to provide a broad range of essential services to its residents. Through a number of council supported programs, the City of Laramie strives to improve services for the citizens and businesses of Laramie. The City follows conservatism in its budgeting and planning process in order to accommodate its level revenue base and low per capita rate. The City’s cash reserve policy, which states that a minimum of three to six months of operating reserve must be on hand at all times, reflects this philosophy. The City’s proactive approach to the 2010 revenue reductions, as well as the conservative amount bonded for specific purpose tax infrastructure improvements, also illustrate the importance of fiscal responsibility to the City council and management. Additionally, the city’s practice of biennial budgeting and six year capital planning emphasizes management’s commitment to long range planning. ---PAGE BREAK--- 4 The City adopted a biennial budget for the General Fund and Recreation Center Special Revenue Fund for fiscal years 2011 and 2012 and an annual budget for all other funds. In June 2012, it adopted a biennial budget for fiscal years 2013 and 2014 for the General Fund, Recreation Center Special Revenue Fund, Water Fund, and Waste Water Fund. The City Council adopted annual budgets for all other funds for 2013. The City Council and management have implemented a shift to a biennial budget process so that planning can more closely mirror the operating cycle of the state, on which the City relies for supplemental funding and sales tax distributions. Additionally, the budget has been enhanced with comprehensive capital plans for the General Fund, Recreation Center Special Revenue Fund, Major Capital Construction Fund, Water Fund, Waste Water Fund, and Solid Waste Fund. These plans were implemented to proactively manage and prioritize capital replacement needs on a city-wide level. The specific purpose tax that Albany County voters approved in May 2010 is funding infrastructure improvements in streets; water and wastewater utilities; and the landfill, addressing needs for long-term capital improvements. Project design began in the spring of 2011, and construction began fiscal year 2012. These projects will continue over the next two years. City management continues to update its long-term financial plan for water and sewer utilities. This plan includes debt, fleet, operations, and capital requirements to provide a comprehensive financial picture. The 10-year capital plan is an important component, as the City has significant infrastructure needs to address. Consultants provide rate analysis and propose rate increases that support financial requirements in the long-term. The financial plan allows City council and management to quickly see the effects of both rate increases and alternate sources of revenue on the financial health of utility operations. City council and management have begun a long-term financial plan for solid waste management, as well. This process began with an Integrated Solid Waste Management study in 2010. Diversion rates to support a newly implemented recycling effort were adopted during fiscal year 2011, but development of the complete financial plan development is ongoing. The plan, as contracted with Bell and Associates, will provide similar elements of financial analysis as the utilities plan – debt service, fleet, and operational requirements and capital planning. A priority for the City of Laramie is expanding and solidifying business growth and preserving the City’s downtown history. The City works with the Laramie Main Street Program to foster the economic and social vitality of downtown Laramie, while accentuating its unique heritage. Additionally, the City advances business development through cooperative partnerships with the Laramie Economic Development Corporation (LEDC) and through support of Wyoming Business Council initiatives. This past year, the City partnered with LEDC to review a development to attract the cloud computing industry to Laramie. 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, 2011. This was the 35th consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted principles and applicable legal requirements. ---PAGE BREAK--- 5 A Certificate of Achievement is valid for a period of one year only. We believe our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements The compilation of the Comprehensive Annual Financial Report is the responsibility of the Finance Department. This report is evidence of the dedication and many hours of hard work required to compile such a report. I would like to thank the entire Finance Staff for the excellent service they provide throughout the year which is reflected in this Comprehensive Annual Financial Report. The City is grateful to the State of Wyoming Division of Economic Analysis, the University of Wyoming, Wyoming Center for Business & Economic Analysis, Inc. and the Laramie Chamber of Commerce for their support in providing statistical data. I would also like to thank the City Council, the Finance Committee members, the City Manager and Assistant City Manager, and departments for their leadership and support in developing this CAFR. Malea Brown Administrative Services Director ---PAGE BREAK--- Certificate of Achievement for Excellence in Financial Reporting Presented to City of Laramie Wyoming For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President Executive Director ---PAGE BREAK--- City of Laramie City Attorney Administrative Services  Municipal Court  Treasury & Accounting  Utility Billing Police  Animal Control  Criminal Investigations  Patrol  Records & Communications Human Resources & Employee Benefits Community Development  Code Enforcement  Engineering  Planning  Zoning Boards and Commissions Municipal Judge Public Works  Solid Waste  Streets  Utilities Fire  EMS/Fire  Fire Prevention  Fire Supression Parks & Recreation  Cemetery  Facilities Maintenance  Mosquito Control  Parks & Recreation  Rec Center/ Ice Arena City Council City Manager  Grants Assistant City Manager  Water Resources  Information Technology  Risk Management Citizens of Laramie ---PAGE BREAK--- CITY OF LARAMIE, WYOMING OFFICIALS CITY COUNCIL Scott Mullner, Mayor, Ward 4 Karl McCraken, Vice Mayor, Ward 7 Klaus Hanson, Ward 1 Lee Kempert, Ward 2 Roger McKinley, Ward 3 Erik Molvar, Ward 5 Dave Paulekas, At Large Joe Shumway, Ward 6 Joe Vitale, At Large MUNICIPAL JUDGE Tony Lopez, Municipal Judge CITY ATTORNEY David Clark, City Attorney MANAGEMENT TEAM Janine Jordan, City Manager David Derragon, Assistant City Manager Malea Brown, Administrative Services Director Lori Curry, Human Resources Director Rich Elliott, Public Works Director Paul Harrison, Parks & Recreation Director Randy Hunt, Community Development Director Dan Johnson, Fire Chief Dale Stalder, Chief of Police ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- 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, 2012, 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, 2012, 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 1, 2012, on our consideration of the City of Laramie, Wyoming’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting and compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. ---PAGE BREAK--- 10 Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 11 through 35 and 95 through 102 be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with accounting standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements’’ responses to inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express and opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Laramie, Wyoming basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, the budgetary comparison schedules for nonmajor governmental funds and statistical 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 are the responsibility of management and were derived form and related directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedu4es, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Laramie, Wyoming December 1, 2012 ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 11 Management’s discussion and analysis is based on the City’s financial activities for the fiscal year ended June 30, 2012. 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 were $196.4 million. There is $45.3 million in unrestricted net assets ($21.2 in Governmental Activities and $24.1 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 FY12, the City’s governmental activities net assets increased $2.7 million while the business-type activities net assets increased $9.5 million compared to FY11. The City’s total net assets increased by $12.2 million for the current fiscal year.  At fiscal year-end the City’s total governmental funds, combined, ending fund balances reported were $57.8 million. The Recreation Center endowment of $2.6M makes up the majority of unspendable fund balance. Other unspendable fund balances include general fund prepaid inventory and economic development fund loans. The Debt Service fund has a restricted balance of $9.9 million which is monies to be used to pay for Wyoming Territorial Park debt. This year the trustee completed the final distribution of over collected sales tax from the 2001 Specific Purpose Tax. This distribution paid off the final debt services and fees and reallocated additional tax monies to the original projects to the City of Laramie. Also, 2010 specific purpose bonding still has remaining dollars in the trust for restricted infrastructure capital projects. The Specific Purpose tax funds total restricted dollars are $21.6M. The capital construction fund has many committed projects including Gateway Drainage and Wyoming Energy Improvement program. The assigned balance in the general fund mainly represents encumbrances from subsequent years’ budget and assigns monies to balance the current biennium budget. The General fund balance is $17.9 million. There is $8.6M in the General fund which is unassigned and can be spent at City discretion or used to maintain operating levels.  The State Legislature once again provided a two-year commitment, 2011 and 2012, for one-time over the cap severance monies. Because of the fall in natural gas prices and sagging sales tax collections, the State recommendation and budget reflected the current economy. The Governor recommended local government revenue sharing from past cycles exceeding $400M down to funding localities around $170M of which $50M would be direct distribution for over the cap severance. The final adopted 2011 – 2012 biennium for direct distribution was $61M which was an increase over his initial recommendation. The City of Laramie’s initial distribution for FY11 and FY12 was $3.8M each year. At the 2012 legislative budget session an additional $125 million in direct and capital funding was recommended, as described in the supplemental budget recommendation. The City of Laramie received an additional $818,986 in over the cap severance dollars. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 12  The City’s debt decreased in total by $5.3 million. In the governmental funds, debt decreased by $4.3 million. One equipment lease was added this year totaling $1.2M. The majority of the decrease was due to the 2001 general obligation debt being paid off totaling $3.4M. Additionally, the 2010 bonded debt had a pay down of general obligation debt of $1.5M which is being backed by the Specific Purpose one-penny tax. The Business-Type funds decreased in total by $1.0 million. A $1,857,220 loan for the Laramie transmission line is being financed by Wyoming Water Development Commission (WWDC) at a 4% interest rate. Payments are not due on this loan until the project is complete. The majority of debt reduction for business funds was for the waste water treatment plant Wyoming State Land and Investment Board loan totaling approximately $696,000 and revenue bond payments of $400,000. City Highlights  The City Council adopted a two year budget for the 2011-2012 Biennium (July 1, 2010 – June 30, 2012). The budget for both fiscal years is structurally balanced. The general economic activity was higher as evident in the City’s largest two revenue categories: General Fund sales tax has increased approximately 5% and the state funded cities a one-time supplemental of over the cap severance which was a 22% increase in state-shared revenue.  From June 13th through June 16th, 2012, the City of Laramie hosted the annual convention of the Wyoming Association of Municipalities. Approximately 250 municipal elected officials and staff from Wyoming’s 99 cities and towns gathered in Laramie for keynotes sessions, educational workshops, informational tours and networking receptions. Governor Matt Mead spoke at the reception to discuss future challenges for the State and local governments.  In fiscal year 2012, the Recreation Center had 2,734 active recreation center memberships which includes annual, six month and multiple pass memberships (1,348 individual and household annual memberships, 188 six month memberships, and 1,198 multiple passes). A total of 162,701 individuals used the recreation center facility over the past year, which is an average of 452 visits per day. The annual, multi-passes, and six month memberships have decreased from the previous fiscal year with more participants choosing to pay the daily admission fee. The Recreation Center is supported by a $2.6 million dollar recreation endowment where interest earned is used to support operations. In FY12, the Recreation Center had a cost recovery from program revenues, memberships and grants of 87%.  The City’s Unified Development Code (UDC) was adopted on March 2, 2010, and became effective on July 1, 2010. Staff has continued to evaluate the UDC since its adoption based on feedback from citizens and businesses, and taking into account issues identified during staff’s daily work with the code. In 2012 the City Council adopted a new sign code (Enrolled Ordinance 1622), the second annual update (Enrolled Ordinance 1625) and adopted the current International Fire Code (Enrolled Ordinance 1626). The Community Development Department, Planning Commission, City Council, and ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 13 stakeholders will continue to monitor the UDC and recommend any necessary amendments.  The Council hired Bell and Associates to issue a Solid Waste Study. The study is to comply with the state initiative by the Department of Environmental Quality (DEQ) diverting waste stream out of the City landfill and to other sources of Solid Waste. The City’s landfill capacity for Stage II and Stage III are only approved for use with lined-cells. The study proposed recyclable materials be collected by the City through a new curbside collection program; material handling now occurs through a cooperative agreement with Waste Management to transport and sort the recyclables. In preparation for construction of new lined cells, engineers are reviewing and designing the following: o Improved Environmental Protection through Engineered Containment Systems o Improved Assessment of Income Waste Quantities (Scales) o Improved Waste Diversion o Full-Scale Composting Facility o Separate Handling of Construction/Demolition Waste o Bale Building and Equipment Design o Improved Litter Control  The Citizens of Albany County voted on May 4, 2010 to renew the 1% Specific Purpose tax for $46,000,000 of capital projects within the City of Laramie, Albany County and the Town of Rock River. The City’s proportion of projects totaled $22,550,000 with the majority of dollars being allocated to water, sewer, and street infrastructure. These projects will be paid for by the sixth penny or one percent sales and use tax collected within Albany County. In FY 2012, The City received approximately $3.3M in sales tax collections with the average collection of around $271,000 which will be used to pay down the government obligation bonds. At the end of the fiscal year, public works spent $2.5M in water line projects replacing an estimated 13,067 linear feet of pipeline in various sizes. For Waste Water projects, the department spent $1.6M and replaced 2,317 linear feet of pipe.  The Specific Purpose tax paid for $4.75M in street projects. Street reconstruction occurred on Reynolds Street, Thomes Street, Bill Nye Avenue, 9th Street and 17th street. Six blocks of Harney Street west of 9th Street were reconstructed with a new concrete surface; this area will adjoin the future extension of a concrete surface and bridge deck that replaces the old Clark Street viaduct through a WYDOT project in 2015.  The City continued work to provide improved storm drainage to the West Laramie area, installing 60-inch pipes to transport drainage from Monroe street and Harrison street to the existing outfall pipeline near I-80 and Snowy Range Road. An additional 5 blocks of street reconstruction occurred on Lincoln, Buchanan, Adams and Johnson streets. Along with the surface improvements, new sidewalks, curb and gutter were installed that improve the conveyance of storm water and provide wider and level sidewalks for pedestrians. A 50-block length of degraded streets in other areas of the community received a slurry-seal application that will extend the life of existing asphalt by sealing cracks on the surface and providing additional aggregate material. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 14  In March 2012, the City and Albany County School District 1 executed a Memorandum of Understanding for the sale of a 53-acre tract of land in the City-owned Turner Tract to the School District. This site will become the new Laramie High School, scheduled to open its doors Fall Semester of 2014. The land will be sold to ACSD No. 1 at appraised fair-market value of approximately $1.3 million. The purchase has been approved and will be funded by the Wyoming School Facilities Department. The City and ACSD No. 1 will be jointly responsible for completion of necessary infrastructure for the school site. The City’s share (including funds from the $1.3 million sale) is a Capital Budget item for the current fiscal biennium. The site and infrastructure are currently in engineering design. 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 focus of the 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. Management Discussion & Analysis (Required Supplementary information) Pages 11-35 Governmental–wide financials Pages 36-38 Fund financial statements Pages 39-50 Notes to the financial statements Pages 51-85 Required supplementary information (other than MD&A) Pages 86-90 MD&A Basic Financial Statements Other Required Supplementary Information ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 15 Government-wide financials The government-wide financial statements (see pages 36–38) are designed similar to business or private sector statements in that the reporting of governmental and business-type activities is consolidated into columns which total for the Primary Government. Government-wide statements consist of a statement of net assets and a statement of activities which are prepared to present the financial position and changes in balances for the entire government (except fiduciary funds) using an economic resources measurement focus and the accrual basis of accounting. This method measures cash and other financial assets that can be converted to cash. In the Statement of Net Assets and the Statement of Activities, the City services are reported into three kinds of activities:  Governmental activities – This includes most of the City Services including police, fire, streets, parks & recreation, public works, administrative services and general administration. Most of these services are funded by sales and use taxes, property tax, franchise fees, and state and federal grants.  Business-type services – The City charges a fee to customers to help cover all or most of the cost of services it provides. City services such as water, sewer, and solid waste are reported here.  Component Units – Although legally separated, a component unit is important because the City is financially accountable to them. 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 in assessing the finances of the government as a whole. The reports determine whether the government’s overall financial position has improved or deteriorated. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 16 Fund Financial Statements The readers of governmental financial statements will find the fund financial statements are more familiar except the focus is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific purposes or objectives. The City, like other governmental agencies, uses fund accounting to demonstrate compliance with finance-related legal requirements. All of the funds for the City are categorized by either governmental funds, proprietary funds, or fiduciary funds. Major fund types only apply to the Governmental and Enterprise funds. All other non-major funds are aggregated into one column. During last year, GASB 54 was implemented, which required a change in fund balance reporting (see disclosure note pages 61 through 63). Governmental Funds Governmental funds are used to account for the same activities reported in the Governmental- wide financial statements. However, unlike the Governmental statements, the government funds focus on current sources, uses of spendable resources, and balances of spendable resources available at year-end. This information is useful in evaluating the City’s short-term financing requirements. Required governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances. Required proprietary fund statements are a statement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows. To allow users to assess the relationship between fund and government- wide financial statements, financials have been presented in a summary reconciliation to the government-wide financial statements (see pages 39 through 43). Each of the fund statements should report separate columns for the general fund and for other major governmental and enterprise funds. Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that fund is particularly important to financial statement users. Non-major funds should be reported in the aggregate in a separate column. Internal service funds should also be reported in the aggregate in a separate column on the proprietary fund statements. The City of Laramie maintains nine governmental funds. These are presented in major categories: General, Specific Purpose Tax, Debt Service, Capital Construction and All Non- Major Funds. Individual fund data for each of the non-major funds is provided on a separate financial statement. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 17 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 using an economic resources measurement focus and the accrual basis of accounting, which is the same measurement focus and basis of accounting used in the government wide financial statements. 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 the proprietary fund statements provide additional information including cash flows. 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 distinguish between operating and non-operating revenues and expenses. These statements report capital contributions, contributions to permanent and term endowments, special and extraordinary items, and transfers separately at the bottom of the statement to arrive at the all-inclusive change in fund net assets. Cash flow statements are 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 are used to report assets that are held in a trustee or agency capacity for others and cannot be used to support the government’s own programs. Required fiduciary fund statements are a statement of fiduciary net assets and a statement of changes in fiduciary net assets. Since the resources of these funds are not available to support the City’s own programs, they are not reflected in the government-wide financial statements. The accounting basis and measurement focus used for fiduciary funds is the same as that used for proprietary funds and government wide statements. The City has one fiduciary fund which is the Cemetery Trust Fund. Note Disclosures The notes to the basic financial statements 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, long term liabilities, investments, and equity classifications. 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). ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 18 Infrastructure Assets The City of Laramie was required to implement the major model of GASB Statement No. 34. Historically, the City’s largest group of assets (infrastructure – roads, bridges, and traffic signals) was not reported nor depreciated in governmental financial statements. The implementation of GASB 34 required 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. 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 FY12 FY11 FY12 FY11 FY12 FY11 Current and other assets (Restated) $ 68,375 $ 75,519 $ 31,897 $ 26,172 $ 100,272 $ 101,691 Capital assets 76,068 69,773 77,035 74,648 153,103 144,421 Total assets 144,443 145,292 108,932 100,820 253,375 246,112 Long-term liabilities 33,527 37,900 16,079 15,322 49,606 53,222 Other liabilities 5,955 5,146 1,392 3,585 7,347 8,731 Total liabilities 39,482 43,046 17,471 18,907 56,953 61,953 Net assets: Investment in capital assets (net of related debt) 43,608 32,997 63,574 60,172 107,182 93,169 Restricted 40,143 47,871 3,739 780 43,882 48,651 Unrestricted (Restated) 21,210 21,378 24,148 20,961 45,358 42,339 Total net assets $104,961 $ 102,246 $ 91,461 $ 81,913 $ 196,422 $ 184,159 (See note disclosure on Restated Business Type Activities FY11 - page 84) The City’s combined net assets totaled $196.4 million as of June 30, 2012. The governmental activities net assets were $104.9 million and business-type activities net assets were $91.5 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 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 19 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 22% of the City’s net assets represent resources that are restricted and may not be used. Another $107.2 million or 55% is used for investment in capital assets. A balance of $45.3 million is unrestricted and may be used to meet obligations to creditors or citizens. Table 2 Changes in Net Assets (In Thousands) Governmental Activities Business -Type Activities Total Primary Government FY12 FY11 FY12 FY11 FY12 FY11 REVENUES Program revenues: Charges for Services $ 5,190 $ 4,975 $ 16,828 $ 14,542 $ 22,018 $ 19,517 Operating grants and contributions 1,332 1,221 - - 1,332 1,221 Capital grants and contributions 2,635 3,139 382 4,149 3,017 7,288 General revenues: Property Tax 2,301 2,221 - - 2,301 2,221 Sales, Use and Gas Tax 17,988 11,067 - - 17,988 11,067 Other Taxes 7,971 7,105 - - 7,971 7,105 Investments Income 658 605 181 122 839 727 Miscellaneous 3,476 2,878 175 - 3,651 2,878 Total revenues $ 41,551 $33,211 $ 17,566 $18,813 $ 59,117 $ 52,024 (Continued) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 20 Table 2 Changes in Net Assets (Continued) (In Thousands) Governmental Activities Business - Type Activities Total Primary Government FY12 FY11 FY12 FY11 FY12 FY11 EXPENSES Program Activities Primary Government: Governmental Activities: General Administration $ 540 $ 474 $ - $ - $ 540 $ 474 Administrative Services 1,658 1,657 - - 1,658 1,657 Judicial and Legal 590 590 - - 590 590 General Government 9,841 5,462 - - 9,841 5,462 Police 6,874 6,439 - - 6,874 6,439 Fire 5,409 4,970 - - 5,409 4,970 Engineering 1,092 1,013 - - 1,092 1,013 Highways & Streets 4,542 3,989 - - 4,542 3,989 Animal Control 395 382 - - 395 382 Mosquito Control 371 254 - - 371 254 Parks & Recreation 3,943 3,678 - - 3,943 3,678 Cemetery 284 314 - - 284 314 Interest Costs 544 561 - - 544 561 Unallocated Depreciation - - - - - - Business-type Activities: Water - - 5,594 5,490 5,594 5,490 Waste Water - - 3,093 2,586 3,093 2,586 Solid Waste - - 2,085 2,405 2,085 2,405 Total expenses $ 36,083 $ 29,783 $10,772 $10,481 $ 46,855 $ 40,264 Increase in net assets before transfers 5,468 3,428 6,794 8,332 12,262 11,760 Subsidy Transfers 889 889 (889) (889) - - Capital Asset Transfers (3,643) - 3,643 - - - Change in net assets 2,714 4,317 9,548 7,443 12,262 11,760 Net asset beginning – (Restated) 102,246 97,930 81,913 74,470 184,159 172,400 Net asset ending $104,960 $102,246 $ 91,461 $81,913 $ 196,421 $ 184,160 (See note disclosure on restated Business Activities – FY11 page 84) Governmental activities increased the City’s net assets by approximately $2.7 million. This was primarily due to the activities in the Specific purpose tax funds for both 2001 and 2010. The 2001 Specific Purpose tax trust had additional tax dollars from both transferred monies to debt service fund from over collection of completed non-bonded projects and the penny tax had over ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 21 collections from original projections. As the bonds were not callable, tax dollars have been in the trust accumulating over several years. The redistribution method of sales taxes is based on an agreed upon trustee allocation agreement between Albany County Governmental Agencies (Albany County, Town of Rock River, and the City of Laramie). The distribution eliminated the debt service escrow fund by paying off the debt, provided extra monies to all entities to be used on 2001 projects and impacted general government expenditures and distribution of six penny sales tax collections which affected fund balance by approximately $1.3M. There was $3.4M remaining balance paid off for the 2001 specific purpose tax debt. Total debt reduced by $4.3M Restricted investments were down $5.8M. These investments were for 2010 specific purpose tax bonded dollars in which temporary investments were made for the construction timeline to offset trustee fees and extend project dollars. These investments came due as infrastructure dollars were needed for construction. The City increased capital assets by $6.2 million. Several street and drainage improvements were completed from grants and specific purpose tax which increased infrastructure assets by $3.9M. Buildings increased by $1.4M which was the completion of Basic Beginning Building and amortized over a lease purchase recapture plan with a match from Economic Development Fund. The legislature added one-time funding in severance and over the cap monies which were increased by $0.8M. This increase was offset by putting monies into capital projects, such as, street and drainage projects and a match for the data economic park. The City maintained operating budgets at stable levels. The City received grant monies for capital projects, such as storm drainage, Trans Modal site development, and the Energy improvement project, as well as grants for operating, such as the Safer Grant for Fire personnel and many police grants. There was a subsidiary inter-governmental capital transfer between the Governmental Activities and Business-Type activities for $3.6M. This transfer was for completed water and sewer projects within the specific purpose tax capital fund that were propriety fund assets. Business- type activities increased the City’s net assets by $9.5 million. Tiered rates began in January 2010 for water and sewer. A rate adjustment on the Utility funds was implemented in January 2011. The tiers of residential water rates increase based on level of consumption. This transition was used to provide increased program revenue to fund operating and maintenance costs as well as to build capacity for either cash or debt funded infrastructure projects. The long-term financial plan seeks to level operating and capital dollars by using available cash to alleviate peaks in rate adjustments. In addition, the City was awarded or seeking over $10.0 million in grant funding for water and wastewater projects, however, many projects were delayed and encumbered into the next fiscal year. Therefore, only $0.4M was received from grants in fiscal year 2012. The monies received were from the State Land and Investment Board (ARRA funding) and Wyoming Water Development Commission for the Mainlift station, Water line rehab projects, and completion of the Raw Water Transmission line. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 22 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. 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. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 23 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. GASB 54 provided new classifications of fund balance. The focus is now on the City’s constraints based primarily to what extent the government is bound and provides specific purposes for which amount can be spent by fund (see disclosure note beginning on page 62). The City’s governmental funds (presented on the balance sheets, see page 39) reported a combined fund balance of $57.8 million, which is an approximately 13% decrease in comparison with the prior year. This was mainly due to the activity in the 2010 Specific Purpose Tax fund bonded projects. The fund began with a $22.5M fund balance for bonded infrastructure projects, the City completed $7.8M in infrastructure projects reducing the bonded monies in the Trust. In addition $1.5M was paid in debt towards the bond payment. The payment was made with collections from the 6th penny sales tax. Other factors affecting fund balance include the 2001 collections of Specific Purpose Tax and the redistribution of tax. This redistribution paid off the debt $3.4M. Based on trustee agreements, over collections of sales tax were distributed for project monies. The affect of all trustee outlays brought in additional fund balance of $1.3M. Approximately 14.9% or $8.6 million constitutes unassigned fund balance which is available for spending at the City’s discretion. The remaining fund balance of $49.1 million has different levels of restrictions including unspendable $2.8M, restricted $34.8M, committed $3.2M and assigned of $8.3M. Some of the items which are in the remaining fund balance in general government include capital construction projects; recreation center endowment and scholarship programs; and the debt service payment for the Wyoming Territorial Prison. The general fund serves as the main operating fund for the City. Included in the general fund statement is the specific purpose tax fund, the source of which is the additional penny that taxpayers approved to pay for construction of several capital projects that benefit the community. The General fund statement also has the Capital Projects fund with multi-year capital projects that usually have grant or other funding sources. The Debt service fund has a zero coupon bond that is restricted to pay off the Wyoming Territorial prison. The governmental fund statements also include non-major funds which are detailed on pages 91 through 94. At fiscal year end, the unassigned fund balance for the general fund was $8.6 million, while the total governmental fund balance for the general fund was $17.9 million. The City continues to benefit from bonded monies used for projects funded through the specific purpose tax. With renewal of the tax, design began for Streets, Water line, Sewer lines and landfill liner projects. Construction of the water, sewer and street projects has begun and includes four phases with the worst breakage lines being replaced first. The City had one non- bonded project for Aquifer protection totaling $1,000,000. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 24 In fiscal year 2012, The City gave one time stipends to employees in lieu of ongoing cost of living raises, and merit-based step increases were reinstated. The CIP index for the southeast Wyoming economy in 4th quarter 2011 was 4.1% and decreased in the second quarter of 2012 to 2.0%. The Governmental fund balance decreased approximately $8.6 million from Fiscal Year 2011 to Fiscal Year 2012. The key factors for the changes are as follows:  Cash & Cash equivalents for 2010 Specific Purpose Tax were reduced from payments made to infrastructure projects by $7.8M. The 2001 SPT tax redistribution eliminated the trust over collections and funded the final debt payment of $3.4M and reallocated remaining funds to the City for voted projects, such as, Recreation Center and East Side Tank Expansion. The City also made a debt payment for the 2010 bonded infrastructure projects for $1.5M using the 6th penny sales tax. These changes reduced fund balance by approximately $8.7M. SPT fund balance is restricted for capital projects and debt payments to pay off bonding.  A restricted investment (zero coupon bond) increased amortization totaling $264,100 for the Wyoming Territorial Park service date payment due in 2014.  The Emergency E911 fund increased in fund balance of $9,302 and has restrictions for debt payment of capital leases on dispatch consoles. The remaining fund balance is used to fund capital and equipment for E911 operations.  Many capital projects move forward. The Basic Beginning Daycare, East Campus Drainage as was the EOC Center at Fire Station 3 were completed. However, many projects are still in initial stages or completed design phase including West Laramie Drainage second phase, Energy Conservation Improvement Project and Trans Modal Site which will began construction to name a few. The General fund transferred $800,000 to the capital construction fund to provide match dollars with grants or other funding sources. The fund balance in the capital construction fund increased due to slower progress of projects totaling $97,923.  The Park and Recreation fund uses Recreation Mill dollars collected from the 1% mill levy. This fund had an increase in fund balance of $152,861. The General Fund transferred $60,000 to this fund to match Recreation Mill dollars for the Optimist Park Redevelopment project. The remaining fund balance is restricted for projects that were in design or initial stages but still have not been completed. This includes Recreation Mill projects such as Optimist Park Development, Aragon baseball fencing and Undine Park splash pad phase 2.  The Recreation Center had a decrease of $210,101 in fund balance. Of the $2.7M in fund balance $2.6M is an unspendable recreation endowment. Assigned fund balance totals $119,972. This balance has a reserve to assist in meeting minimal operations. The balance has remained steady because the fund had an increase in actual admissions fees of $40,377 over FY11 and kept expenditures under target. The City will continue to lessen transfers to this fund based on good performance cost recovery.  The Economic Development Fund had an increase in fund balance of $80,589. The City provided economic loans for Basic Beginning daycare center of $300,000 and another $100,000 for the Laramie Economic Development Corporation, LLC for a rail spur project. Basic Beginnings ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 25 made a payment to the City totaling $20,000. The Fund receives recapture dollars for rent payments made on an initial loan with Trihydro Corporation. The remaining balance of $197,107 is unspendable and is only available for economic or recapture loan agreements.  In the West Laramie fund, $107,518 in project monies were used for the West Laramie Drainage project and the fund was closed in 2012.  The General fund had a slight decrease in fund balance totaling $220,228. The City policy in fund balance is to have a minimum of three months cash reserves to assist in operation and debt and meet cash flow demands. At the end of the fiscal year, the City received approximately $1.3M more revenue than in FY11. This was mainly due to additional one-time monies in 2012 over the original state funded cap (approximately $800,000) and an increase also in sales tax revenue (approx. $500,000). The City planned for additional projects for this revenue which was $450,000 in research for a data center match and $500,000 for Drainage and Street projects. These steps allowed maintenance of the fund balance necessary to have a stable environment. 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: FY12 FY11 FY12 FY11 Police Department $ 6,874 $ 6,439 $ 4,966 $ 4,658 Fire 5,409 4,970 4,109 3,460 Highways and Streets 4,542 3,989 3,912 3,937 Parks & Recreation 3,943 3,678 2,182 1,687 Administrative Services 1,658 1,657 1,658 1,657 General Government 9,841 5,462 7,579 2,600 Engineering 1,092 1,013 360 265 Other 2,724 2,575 2,160 2,184 Totals $ 36,083 $ 29,783 $ 26,926 $ 20,448 Business-Type Funds Operating revenues for the Business-Type activities were $16.0 million and expenses for the City’s Business-Type activities were $10.5 million. There was an increase in net assets of $9.5 million after non-operating and transfer adjustments. This was due to rate increases and additional grants received for capital projects, such as, Laramie Transmission Line and ARRA (American Recovery and Reinvestment Act) priority water line. Major multi-year capital projects just in design will be paid for out of cash reserves and the financial plan as indicated will use cash to level high peak expenditures in out years. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 26 The City’s business funds (presented on the statement of net assets (pages 44-45) reported a combined net asset balance of $91.5 million. The net assets by fund were: water $60.8 million, waste water $27.4 million and solid waste $3.3 million. Unrestricted net assets for the proprietary funds were $24.1 million. The unrestricted-by-fund amounts were water $12.8 million, waste water $10.0 million and solid waste $1.4 million. As with the governmental funds, the propriety funds received no cost of living increases but merit based steps were reinstated. The employees also received a one-time stipend in lieu of a cost of living increase. Many challenges continue to face the propriety funds. This year there continues to be a heavy emphasis on capital projects. The City updated the 10-year financial plan, and the Council instituted the rate increases for water and sewer necessary to keep up with heavy capital requirements. These rates were applied to the existing rate billing structure. To offset rate increases, Council recommended many infrastructure projects be funded though the Specific Purpose Tax. This included $8.3M in water line replacement and $6.0M in sewer line replacements. Also, the tax will fund $3.4M to assist with Landfill relining required by the Wyoming Department of Environmental Quality. Due to the increased funding with awarded grants and offset of specific purpose tax, infrastructure needs are being met. However, the funds will continue to provide for more capital water and sewer line replacements and landfill reclamation and upgrades of the landfill. Council adopted rate increases based on the recommendation of Red Oak rate consultants. Red Oak reviewed the City’s updated financial plan for FY 2012. In combination of Special Purpose Tax funding and additional grant revenues, the revenue requirement for the Water Fund was reduced to 7.5 percent rather than the projected 19 percent that was previously forecasted. The 7.5 percent was distributed among the rate classes to achieve the overall revenue needed for the fund. City Council requested Red Oak to modify the rate impact in certain rate classes to minimize the impact on residential users, expand the tier in 7 unit to 15 unit water consumption ranges and adjust the University of Wyoming rates higher to support the revenue-neutral modification to achieve the overall target of 7.5 percent revenue increase needed. Council adopted these rates for continued support of the significant capital projects needs in the ten year capital improvement plan. The rate increase was implemented to phase in January and February of 2012. Water consumption increases were as follows: Residential Users 0-3 units $3.37 per unit (increase of $0.27 per unit), next 3 units $4.21 per unit (increase of $0.47 per unit), next 18 units combined two previous steps in tiers and increased to $5.26 per unit (increase in 7-15 units of $0.73 per units, decrease in tier 16-24 of $0.31 per unit). The final tier saw an increase of $2.32 per unit which was to promote water conservation of residential usage over 24 units per month. The multifamily rate class saw an increase of $0.30 per unit, commercial class $0.30 per unit, wholesale class $0.70 per unit, irrigation class $0.80 per unit and the University of Wyoming rate class increased by $0.30 per unit. Meter based fees were also increased to match revenue needs. Base meter fees are based on respective meter size. The fees for meters ranged from $19.40 (¾ inch) meter to $827.80 meter) to new FY 2012 fees of $19.90 (¾ inch meter) to $843.70 meter). ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 27 Efforts toward renewal and enhanced investment of the water systems included capital projects that total $9.7M. The majority of these projects were paid for through multiple funding sources including Wyoming Water Development Commission Grants (WWDC), USDA grant/loan, State Land and Investment MRG (mineral royalty) grants in combination with user rates. There are significant water line replacement efforts using grant funding which include South Laramie Transmission Line $3.4M, Grand Ave line $1.5M and a 36” transmission line for $3.9M. These initiatives have just begun and will provide additional waterline improvements over the next few years. In FY 2012, Sewer base charges were redesigned to reflect charges relating to meter size. Previously, sewer base charges for all customers were a flat rate of $12.60. The structure was changed to reduce ¾” meter charges from $12.60 per month to $10.90 per month, a decrease of $1.70 per month. Meter fee based sewer increases range from a $2.70 increase for 1” meter users to an increase of $382.40 for 8” meter users. Sewer volume flow was also increased by class code or type of user. Residential user fees were increased from $3.23 per unit to $3.52 per unit (increase of $0.29 per unit). Residential users fees are figured by using the average January, February and March water consumption period or winter flow rate. The residential flow rate of $3.52 per unit (1,000 gallons) uses the winter flow rate method that varies from user to user. Commercial sewer flow is directly linked to the customer’s water consumption from month to month. If a commercial user used ten units of water they are charged for ten units of sewer at their respective rate. The structure of commercial rates is based on the business type and type of waste produced by business type above residential strength. Commercial accounts have a unique class code based on type such as restaurants, office buildings and schools. Commercial business sewer charges range from $3.07 per unit (1,000 gallons) to $6.17 per unit. Waste water projects include replacement of the undersized West Laramie Banner Road outfall project and continued replacement of sewer lines. The SPT initiative will provide $6M for future replacement of sewer lines over the next three years. Solid Waste rates were also designed differently in FY 2012 with the implementation of a diversion and recycling program. The automated collection program was completed in FY 2011. In FY 2012 an automated curb stop residential recycling program was implemented. In September 2012, Solid Waste Collection and Disposal rates were changed and a diversion/recycling fee was added to residential locations. The residential collection fee was reduced from $10.48 per month to $8.22 per month or a decrease of $2.37 per month, per kitchen unit. A new fee diversion/recycling was added to residential bills of $4.30 which nets an overall increase in the customer’s bill of $1.93 adding a curb stop automated recycling collection on a bi-weekly basis. The rate of residential collection is assessed per kitchen unit in a residential location. Any location with two kitchen units or less is mandated by Laramie Municipal Code to pay for the service of collection, disposal and recycling. Resident disposal charges were increased from $3.20 per month per kitchen unit to $4.35 per month per kitchen unit, increasing $1.15 per month per kitchen unit. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 28 The minimum entrance fee was also increased in September at the Laramie Landfill. The in town minimum fee was increased from $5.00 per load for City residents to $6.75 per load, an increase of $1.75 per load. The out of town minimum fee was increased from $6.00 per load to $8.25 per load for out of town city haulers, an increase of $2.25 per load. Commercial locations can choose to have the City of Laramie collect their waste or a private hauler. Commercial dumpster services are charged according to the size of the dumpster and the number of collections requested per week. The charges for these services were also increased in September 2012. The City of Laramie provides dumpsters in three varieties of sizes and offer collections schedules up to six days per week. Budgetary Highlights The following is a brief review of the changes from the original budget to the final budget for the general fund (please see budget to actual comparison on pages 88 to 94). City policy dictates that budget amendments come to Council for specific items not represented in the budget even if the department managed their bottom line operating dollars to provide public transparency. The difference between the original budget and the final amended budget fund balance was $760,065 for the General Fund. Some of these increases were offset by miscellaneous funding sources, such as, grants and donations totaling $377,327. This year, a recommendation was brought to Council and approved on December 13, 2011 to provide a one-time benefitted stipend in the amount of $400 per non-contract employee and $100 per provisional employee. The increased budget amendment impacted all the departments in the General Fund which totaled $78,607. The majority of revisions in the comparative statements were contributed to the stipend amounts. All additional amendments will be outline below that are above this total. General Fund: Several departments were above their payroll budget for accrued vacation leave paid out from resignations of employees totaling $19,113. These payout dollars are assigned in accrued vacation liability accounts and fully funded to meet the City’s employer obligation. The budget was amended to reflect the significant budgetary changes including Executive – City Manager $4,804, Administrative Services (Finance/HR) $14,309.  Executive – City Manger: The City Manager department had vacation payout which increased the budget $4,804.  Administrative Services: Vacation payouts for resignations had budgetary increases in Human Resources of $5,346 and Finance of $8,963.  Other Governmental: A budget transfer by ($15,000) occurred in planning due to the decision to finish the Parks, Trails, and Recreation master plan in house without hiring a consulting firm. his project was re-assigned to the Parks, Trails, and Recreation Ad Hoc Committee. The City Clerk’s office received donations from the public to contribute to the Wyoming Association of Municipalities’ conference held in Laramie. The conference budget was amended in total by the amount of donations $34,564. The Safety department sent an officer to ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 29 Law enforcement safety training. This training will be fully reimbursed by the Wyoming Association of Risk Management $2,950.  Fire: The Fire department was allocated $176,972 to reflect required improvements to the LFD Station #1 apparatus floor. An additional $13,910 was increased for reinstatement of operating supplies inadvertently omitted from the adopted budget. The Council approved a $100,000 grant award from Homeland Security in support of Wyoming Regional Response. This grant supports homeland security strategies to address planning, organization, equipment, training to prevent, protect, respond to, and recover from acts of terrorism and other catastrophic events.  Police: Council accepted a Cops grant for two additional Patrol officer positions for $148,028. Council approved a US Department of Homeland Security grant in the amount of $37,672 to be used toward Law Enforcement Terrorism Prevention Programs (LETPP) activities.  Engineering: The Engineering department had an increase of $21,335 to expand the scope of the North Laramie Drainage study to include all of LaBonte Park and the outfall from LaBonte Lake that discharges south and west to Harney Street.  Health and Welfare: Staff requested monies for hand held Global Positioning system (GPS) units to log pesticide applications in compliance with Wyoming Department of Environmental Quality System for $35,000. Mosquito Control staff applied for grant funding from the State of Wyoming to offset a portion of the expense.  Highways and Streets: A truck accident destroyed two traffic light poles at the intersection of 30th Street and Harney. The replacement cost will be covered by liability insurance. However, there was additional cost for traffic signal upgrades for $20,320.  Culture and Recreation: Cemetery requested additional budget of $30,000 to cover the unanticipated equipment replacement of a 1998 Toro Turf Sweeper. The Recreation Department requested a transfer from a planning feasibility study for $15,000 to cover the expenditures for the Parks, Trails, and Recreation Ad Hoc Committee that was assigned to assist in the development of the new Parks and Recreation Master plan. The City decided to do the master plan in house without hiring a consulting firm. When completing the wading pool improvements for the Wyoming Energy Conservation Improvement project, the project required electrical bonding as required by code which was not in the scope of the original project of $7,189. An ADA audit requested many upgrades in the park and recreation facilities which were not initially planned. Additional budget was required to meet all the obligations of $18,755. Council approved an award to remodel Fort Sanders to correct life and health safety issues within the building and make slight improvements of $15,650 that will enable a possible City lease on the building. Fort Sanders was originally an officer’s barracks on the Fort Sanders Historic Site. Now is it located in LaBonte Park. Some of the significant variances were caused by delays in projects by departments and employee turnover. Significant variances between budget and actual activity are summarized as follows: ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 30  The Highways and Streets division under Public Works delayed overlay street work. Therefore, their budget was unexpended by over $1.4M. Part of this budget will be used to match Specific Purpose tax waterline dollars for street repair and upgrades.  The Police department was under expended by $521,974. The Police department had spent less on patrol vehicles by approximately $127,000. The majority of accounts were under budget including salary and benefit savings from turnover and new hires and contracted services and supplies.  The Fire department has unexpended in the Grant cost center by approximately $336,000 due to the role of Emergency Management being transferred back to the County from the City. The majority of grant dollars associated with this now revert back to the County. In addition, an Ambulance purchase, dorm remodel at Station 1 and commander vehicle were delayed for approximately $226,300. The rest of the under expenditures were due to savings in material and supplies accounts totaling approximately $78,000.  The Other General Government budget was under expended by $548,506. There are four incomplete projects in this budget including the continuing program “safe routes to school” for $84,000 and a study for a bike trail and open space plan for $100,000, North Laramie Land Use $70,000 and Turner Tract development $90,000. The City Council voted for a contingency reserve which was unexpended totaling $94,438. The rest of the under expenditures were due to planning department turnover and savings in supplies and contractual services among many governmental departments with approximate savings of $110,000.  Culture and Recreation - the Parks and Cemetery Divisions were under expended due to project delays or under runs by $475,079. The Parks division had delays on Gateway park detention pond $129,500, Garfield footbridge landing rehab $15,000, playground upgrades and shelter repairs $40,000 and tree spade equipment $35,000. The Cemetery division delayed the 15th street landscape $40,000. Also, actuals were under expended for upgrades for the Cemetery house by $49,000 and fencing around the communication Tower $166,579. The remainder of the savings is miscellaneous expenses in supplies and contractual less than planned.  The Engineering & Code divisions were under expended by $130,264. The shared concrete program was under spent by $36,261. This program is still being reviewed and is to assist citizens in sharing the price (50/50) of replacing sidewalks. There were savings in this program because concrete was being paid for with street reconstruction using Specific Purpose Tax dollars. In addition, Engineering had savings from the Concrete study which was delayed $63,451.  The other remaining governmental funds (Administrative Services, Executive, Health & Welfare, etc.) consist of many divisions and were unexpended by $232,847. The main savings were caused by salary savings from turnover and not hiring in a timely manner based on frozen positions. Also, projects and other operations costs were delayed or not spent. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 31 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of the year, the City had $153.1 (net of accumulated depreciation) million invested in a variety of capital assets, as reflected in the following schedule. This represents a net increase (additions, deductions, and depreciation) of $8.7 million or 6.0% from the end of last year. Table 4 Capital Assets (Net of Depreciation, In Thousands) Governmental Business-Type Activities Activities Total FY12 FY11 FY12 FY11 FY12 FY11 Land $ 1,786 $ 1,773 $ 3,494 $ 3,494 $ 5,280 $ 5,267 Water Rights - - 88 88 88 88 Building 28,018 26,645 15,025 15,671 43,043 42,316 Improvements other than buildings 3,690 3,650 49,452 49,011 53,142 52,661 Furniture & Equipment 3,939 4,036 5,467 4,529 9,406 8,565 Infrastructure 34,742 30,830 2,933 1,384 37,675 32,214 Construction in Progress 3,893 2,839 576 471 4,469 3,310 Total $ 76,068 $ 69,773 $ 77,035 $ 74,648 $ 153,103 $ 144,421 This year major additions include projects still under (CIP) Construction in Progress (in thousands)  Wyoming Energy Conservation Imp. Program $1,542  Specific Purpose Tax Infrastructure Projects $ 961  Trans Modal Site Development $ 795  Downtown Lighting Project $ 228  South Laramie Water Transmission $ 156  Banner Road Sewer Outfall $ 115 More detailed information about the City’s capital assets is presented in Note 3.D. of the financial statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 32 Debt Outstanding At year-end the City had $46.0 million in bonds, notes, and lease obligations compared to $51.3 million last year. This is a 10.3% decrease – as shown in Table 5. In the Governmental funds, the remaining $3.4 million in debt pertaining to the 2001 specific purpose tax capital projects was paid off. There is $20.8 million in debt remaining this year for infrastructure projects funded with general obligation bonds (in 2010) backed by the continuing Specific Purpose tax penny. Table 5 Outstanding Debt at Year End (In Millions) Governmental Business-Type Activities Activities Total FY12 FY11 FY12 FY11 FY12 FY11 Revenue bonds and G.O. bonds (backed by Specific purpose tax, fee revenues and zero coupon) $ 20.8 $ 22.3 $ 3.5 $ 3.9 $ 24.3 $ 26.2 Capital lease obligations 1.7 4.5 .4 .1 2.1 4.6 Contractual obligations 10.0 10.0 9.6 10.5 19.6 20.5 Total $ 32.5 $ 36.8 $ 13.5 $ 14.5 $ 46.0 $ 51.3 In the Governmental funds the City incurred one additional lease. The lease was for the Wyoming Energy improvement project for leased improvements totaling $1,178,035 over fifteen years with a 4.2% interest rate. The City funded this project with this lease in combination with other grants including ARRA and a Department of Energy Grant. Other major leases include E911 Emergency consoles for the Albany County Dispatch Center and the Central Irrigation Control System for Parks. The E911 Emergency Console lease has a current year-end lease obligation of $252,121. The semi-annual lease payment is $87,586, including interest rates ranging from 3.10% to 4.25%, through December 2013. The Central Irrigation Control System has a current year-end lease obligation of $102,628. The semi-annual lease payment is $54,452, including an interest rate at 3.5% to February 2013. The debt from 2001 specific purpose tax lease purchases and issuance for capital projects was sales tax dollars were disbursed and debt paid off in this year (see disclosure note 3.G). The City renewed the specific purpose tax effective October 2010. The Citizens voted to fund infrastructure projects with general obligation bonds for $22,550,000. The City received a AA+ rating from Standards and Poor. The Solid Waste department is relining the landfill and building scales for $3,450,000. The Street department projects total $4,750,000. The City bonded sewer line replacement totals $6,000,000 and water line replacement $8,350,000. Water line replacement is not subject to general obligation debt limits. Sewer line replacement is subject to double your limit. Therefore, the general obligation debt limits for Solid Waste and Street were below project general obligation debt ceiling (see page 130). The bonds were put out to public bid and the winning bid was from Robert W. Baird & Co., Inc. which net interest rate came to 2.32% which included a premium of $405,157. The debt is both backed by a one percent sales ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 33 tax penny and general obligation debt within the governmental funds with payback in ten years. The current obligation remaining is $20.8 million. The semi-variable installments range from $1.0M to 1.4M at a net rate of 2.32%. The penny tax collections remain at or above projections and easily have paid down the bonded debt. 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 $9.6 million. The City of Laramie has two revenue Water bond refinances. The 2008 revenue bond has a remaining balance of $1.7M with semi-annual interest payments between 2.70% and 4.65%. The current rating by Standard and Poor for water refunding bonds is The City has another 2001 revenue bond with a balance of $1.7 million with semi-annual interest payments at 2.90% to 4.50%. The State Land Investment Board provided grant and loan funding for the drinking water project. The loan is now established with a 2.5% interest rate with annual installments of $116,203 to $150,256 and the remaining balance is $1,104,009. WWDC is currently funding by grant and loan a Laramie Transmission pipeline. The current loan balance for this project is $1,857,220 with a 4.0% interest rate over 30 years. Until the project is complete, payments do not have to be made to WWDC. This loan is within the business-type funds and will be secured against Municipal water revenues. State Land and Investment Board financed several sewer loans including the main lift financed in 2008 which is a 20 year term at a 2.5% rate, with a remaining balance of $667,396. The other two loans are also 15 and 19 year terms at a 2.5% rate for Lagoon (the remaining balance is $501,675) and Clean water (remaining balance is $4,511,056). In 2012, the Solid Waste department leased containers for the City-wide recycling program. The term is for 5 years with annual installments of $82,166, including interest at 2.975% to January 2017 (with the remaining balance of $376,629). More detailed information about the City’s long-term debt is presented in Note 3.G beginning on page 72 of the basic financial statements. ECONOMIC FACTORS The State of Wyoming, by constitution, does not have a state personal income tax; therefore, it operates primarily using sales, gasoline, severance and mineral royalty taxes. The City primarily relies on sales tax and a limited array of permitted other taxes (property, gasoline, severance, and cigarette) and fees (franchise, business licenses) for other governmental services. There are a limited number of recurring and non-recurring grants from both the state and federal governments. For Business-Type services and certain governmental activities (permits, utilities, mosquito control, recreation programs, etc.) the user (of services) pays a related fee (or charge) associated with the activity. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 34 Wyoming’s economic recovery has continued, thanks to the ongoing rebound of the energy industry, in fiscal year 2012. According to a state economic report, the second quarter of 2012 showed only moderate economic growth as lower prices for coal and natural gas affected the state’s energy extraction industry. The State’s unemployment rate dropped to 5.3 percent in the second quarter, while it dropped to 8.2 percent in the U.S. for the same period. Most industries in Wyoming showed job growth, with construction, the transportation and utility industry, and financial activities exhibiting the only declines. Retail trade showed the most accelerated increase, with a 4.5% growth rate between the second quarters of 2011 and 2012. Wyoming’s total personal income grew 2.7 percent in the second quarter of 2012 from the previous year. U.S. personal income increased 3.3 percent during the same period. The U.S. housing market has finally turned around, and the housing market in Wyoming saw its first upward trends during the third quarter of 2011. In Wyoming, the annual home price has actually increased 2.0 percent as of the second quarter in 2012. Wyoming’s housing market continues to be one of the best in the nation, both in terms of sales and prices. The southeast region of Wyoming’s (where Laramie is located) consumer price index for the second quarter of 2012 was 2.0 percent which, targeting areas were transportation and food, was below the state inflation rate of 2.4 percent and above the national CPI index rate of 1.7 percent. The Wyoming Comparative Cost of Living Index for 2012 put Laramie at a 102 percent indices. This places Laramie (within Albany County) at above average for comparative cost of living within the state. In the 2012 fiscal year, the State legislature provided additional funding of $4.6 million to Laramie, which was an increase of $800,000 from the 2011 level. These monies from the State continue to fund capital projects and maintain level of services but do not assist with long-term funding issues. At the state level, sales tax revenue has seen a 2.6% increase in quarter two of 2012 compared to the second quarter of 2011, which was the slowest growth rate since the first quarter of 2010. Albany County experienced a 2.9% increase in sales tax collections during the previous year. Revenues have been consistent relative to mineral-rich counties in other parts of the state that experience much greater swings. While the City does not see large fluctuations in revenue, it has one of the lowest per capital revenue collection rates in the state. The City prepared for decreased revenue during the past few years through proactive budgeting and currently has a stable financial position because of these measures. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING MANAGEMENT’S DISCUSSION AND ANALYSIS June 30, 2012 35 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, 2011. 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 35 consecutive years (fiscal years 1977-2011). FINANCIAL CONTACT The City’s financial reports are designed to provide citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability. If you have questions about the financial reports or statements and need additional financial information, contact the City’s Chief Financial Officer at City Hall, PO Box C, Laramie, Wyoming 82073. ---PAGE BREAK--- ---PAGE BREAK--- Basic Financial Statements ---PAGE BREAK--- Government-Wide Financial Statements ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 36 STATEMENT OF NET ASSETS June 30, 2012 Governmental Business-Type Activities Activities Total ASSETS Cash 17,564,373 $ 25,444,813 $ 43,009,186 $ Investments 7,413,601 3,664,966 11,078,567 Prepaid expenses 24,793 1,047 25,840 Receivables: Accounts, customers 34,976 1,667,854 1,702,830 Notes 700,000 - 700,000 Accrued interest 17,890 1,852 19,742 Operating 3,368,782 149,827 3,518,609 Restricted assets Cash and cash equivalents 21,024,987 - 21,024,987 Investments 18,225,646 966,764 19,192,410 Capital assets Land 1,786,600 3,493,428 5,280,028 Water rights - 87,685 87,685 Construction in progress 3,893,123 576,038 4,469,161 Buildings 36,469,565 31,120,605 67,590,170 Improvements 5,341,129 75,143,784 80,484,913 Infrastructure 61,216,355 3,082,280 64,298,635 Furniture and equipment 12,433,417 12,742,004 25,175,421 Accumulated depreciation (45,072,203) (49,211,312) (94,283,515) Total Assets 144,443,034 $ 108,931,635 $ 253,374,669 $ LIABILITIES Accounts payable 3,250,645 $ 553,361 $ 3,804,006 $ Accrued interest payable 71,143 196,218 267,361 Unearned revenue 2,245,169 642,498 2,887,667 Benefit claims incurred but not reported 387,625 - 387,625 Noncurrent liabilities Due within one year 2,317,141 1,536,438 3,853,579 Due in more than one year 31,210,759 14,541,974 45,752,733 Total Liabilities 39,482,482 17,470,489 56,952,971 NET ASSETS Invested in capital assets (net of related debt) 43,607,791 63,574,084 107,181,875 Restricted for: Recreation center endowment 2,589,536 - 2,589,536 Recreation center scholarships 35,485 - 35,485 Capital projects 27,607,277 3,738,630 31,345,907 Debt service 9,910,600 - 9,910,600 Unrestricted 21,209,863 24,148,432 45,358,295 Total Net Assets 104,960,552 $ 91,461,146 $ 196,421,698 $ Primary Government See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 37 STATEMENT OF ACTIVITIES June 30, 2012 Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Function/Program Activities Primary Government Governmental activities: Executive- City Manager 540,309 $ - $ - $ - $ Administrative services 1,658,157 - - - Judicial 295,681 165,935 - - Legal 295,158 - - - General government 9,841,199 123,598 164,720 1,973,413 Police 6,873,667 1,195,029 712,776 - Fire 5,408,803 1,061,075 206,414 32,385 Engineering 1,092,003 732,249 - - Highways and streets 4,541,738 - - 629,265 Animal control 394,505 45,808 - - Mosquito control 371,254 307,994 453 - Parks 1,253,047 43,299 29,300 - Recreation 2,690,250 1,470,399 218,789 - Cemetery 283,812 44,638 - - Interest on long-term debt 543,731 - - - Total governmental activities 36,083,314 5,190,024 1,332,452 2,635,063 Business-type activities: Water 5,593,830 8,882,688 - 303,398 Waste water 3,093,020 5,246,558 - 78,523 Solid waste 2,085,724 2,698,185 - - Total business-type activities 10,772,574 16,827,431 - 381,921 Total Primary Government 46,855,888 $ 22,017,455 $ 1,332,452 $ 3,016,984 $ 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 Capital asset transfers Total general revenues and transfers Change in Net Assets Net assets- Beginning, as restated Net assets- Ending Program Revenues See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- 38 Governmental Business-type Activities Activities Total (540,309) $ - $ (540,309) $ (1,658,157) - (1,658,157) (129,746) - (129,746) (295,158) - (295,158) (7,579,468) - (7,579,468) (4,965,862) - (4,965,862) (4,108,929) - (4,108,929) (359,754) - (359,754) (3,912,473) - (3,912,473) (348,697) - (348,697) (62,807) - (62,807) (1,180,448) - (1,180,448) (1,001,062) - (1,001,062) (239,174) - (239,174) (543,731) - (543,731) (26,925,775) - (26,925,775) - 3,592,256 3,592,256 - 2,232,061 2,232,061 - 612,461 612,461 - 6,436,778 6,436,778 (26,925,775) $ 6,436,778 $ (20,488,997) $ 2,301,308 - 2,301,308 17,406,537 - 17,406,537 581,749 - 581,749 6,442,759 - 6,442,759 1,528,697 - 1,528,697 657,893 180,860 838,753 3,476,093 175,377 3,651,470 889,072 (889,072) - (3,643,833) 3,643,833 - 29,640,275 3,110,998 32,751,273 2,714,500 9,547,776 12,262,276 102,246,052 81,913,370 184,159,422 104,960,552 $ 91,461,146 $ 196,421,698 $ Primary Government Net (Expense) Revenue and Changes in Net Assets ---PAGE BREAK--- ---PAGE BREAK--- Fund Financial Statements ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 39 BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2012 Wyoming Specific Territorial Non-Major Total Purpose Prison Capital Governmental Governmental General Tax Debt Service Construction Funds Funds ASSETS Cash 13,649,878 $ - $ - $ 2,262,267 $ 1,552,780 $ 17,464,925 $ Investments 4,828,430 - - 1,848,628 334,806 7,011,864 Prepaid items 23,685 - - - 1,108 24,793 Receivables: Accounts, customers 23,137 - - - - 23,137 Notes - - - - 347,951 347,951 Accrued interest 2,696 7,650 - - 1,769 12,115 Operating 2,338,610 945,257 - 8,215 46,863 3,338,945 Restricted assets Cash and cash equivalents 119,099 17,175,057 - 1,178,936 - 18,473,092 Investments - 3,841,356 9,910,600 - 2,625,021 16,376,977 Total Assets 20,985,535 $ 21,969,320 $ 9,910,600 $ 5,298,046 $ 4,910,298 $ 63,073,799 $ LIABILITIES Accounts payable 1,409,455 $ 346,091 - $ 1,208,294 $ 102,584 $ 3,066,424 $ Unearned revenue 1,360,685 - - 11,000 577,309 1,948,994 Accrued vacation and - compensatory time 286,197 - - - 5,858 292,055 Total Liabilities 3,056,337 346,091 - 1,219,294 685,751 5,307,473 FUND BALANCES Nonspendable 23,685 $ - $ - $ - $ 2,786,643 $ 2,810,328 $ Restricted 259,023 21,623,229 9,910,600 2,652,452 383,174 34,828,478 Committed 1,739,932 - - 1,426,300 13,043 3,179,275 Assigned 7,271,857 - - - 1,041,687 8,313,544 Unassigned 8,634,701 - - - - 8,634,701 Total Fund Balances 17,929,198 21,623,229 9,910,600 4,078,752 4,224,547 57,766,326 Total Liabilities and Fund Balances 20,985,535 $ 21,969,320 $ 9,910,600 $ 5,298,046 $ 4,910,298 $ 63,073,799 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 40 RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET ASSETS – GOVERNMENTAL FUNDS June 30, 2012 Fund balances- total governmental funds 57,766,326 $ 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 121,140,189 Accumulated depreciation (45,072,203) 76,067,986 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. 380,000 Long-term liabilities are not due and payable on the current period and therefore are not reported in the governmental funds. Governmental notes payable (30,800,000) Governmental leases payable (1,660,196) Premium on notes payable (324,126) Compensated absences (775,650) Accrued interest on long-term debt (71,143) (33,631,115) 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. 4,377,355 Net assets of governmental activities 104,960,552 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 41 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS For the Year Ended June 30, 2012 Wyoming Specific Territorial Non-Major Total Purpose Prison Capital Governmental Governmental General Tax Debt Service Construction Funds Funds REVENUES: Taxes and special assessments 3,639,286 $ 8,298,306 $ - $ - $ 170,719 $ 12,108,311 $ Licenses and permits 125,519 - - - - 125,519 Intergovernmental 18,108,308 - - 2,590,770 502,825 21,201,903 Charges for services 1,744,218 - - - 1,157,572 2,901,790 Fines and forfeitures 926,727 - - - - 926,727 Investment income 121,454 48,414 264,100 12,116 30,754 476,838 Miscellaneous 386,960 - - 129,412 76,259 592,631 Total Revenues 25,052,472 8,346,720 264,100 2,732,298 1,938,129 38,333,719 EXPENDITURES: Current operating: General government 5,964,545 - - - 5,964,545 Public safety 12,953,233 - - - 111,525 13,064,758 Health and welfare 727,893 - - - - 727,893 Highways and streets 3,030,649 - - - - 3,030,649 Culture and recreation 2,098,346 - - - 1,606,492 3,704,838 Capital outlay - 11,511,721 - 4,720,983 72,136 16,304,840 Debt service: Principal retirement 470,554 4,901,964 - - 160,495 5,533,013 Interest 18,553 599,186 - - 14,676 632,415 Total Expenditures 25,263,773 17,012,871 - 4,720,983 1,965,324 48,962,951 Excess (deficiency) of revenues over (under) expenditures (211,301) (8,666,151) 264,100 (1,988,685) (27,195) (10,629,232) OTHER FINANCING SOURCES AND (USES): Issuance of debt - capital leases - - - 1,178,936 - 1,178,936 Transfers in 889,073 - - 907,672 60,000 1,856,745 Transfers out (898,000) - - - (107,672) (1,005,672) Total Other Financing Sources and (uses) (8,927) - - 2,086,608 (47,672) 2,030,009 Net Change in Fund Balance (220,228) (8,666,151) 264,100 97,923 (74,867) (8,599,223) Fund Balances- Beginning 18,149,426 30,289,380 9,646,500 3,980,829 4,299,414 66,365,549 Fund Balances- Ending 17,929,198 $ 21,623,229 $ 9,910,600 $ 4,078,752 $ 4,224,547 $ 57,766,326 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 42 RECONCILIATION OF THE STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES – GOVERNMENTAL FUNDS For the Year Ended June 30, 2012 Net change in fund balances- total governmental funds (8,599,223) $ 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 14,154,878 Current year depreciation (4,144,950) 10,009,928 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 5,533,003 Premium amortization on long term debt 40,516 Proceeds from debt (1,178,035) 4,395,484 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 88,685 Change in long-term compensated absences 11,992 100,677 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. (3,643,833) (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 43 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, 2012 (Continued) Long term notes receivable were established in the current period. In the fund basis statements, the disbursements that create the notes receivable are recognized as expenditures. The issuance of notes receivable increases assets in the Statement of Net Assets. Only the current portion of notes receivable is recognized on the Governmental Funds Balance Sheet and the revenue portion is deferred. (20,000) Gains and losses on capital asset disposals are not recorded in fund basis statements. They are reported in the Government wide statements on the accrual basis, with the recognition of gain or loss and the related decrease to the asset account. (71,117) 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. 542,584 Change in net assets of governmental activities 2,714,500 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 44 STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2012 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund ASSETS Current Assets Cash 14,014,541 $ 8,614,497 $ 3,458,272 $ 26,087,310 $ 2,651,345 $ Investments 425,384 2,425,719 813,863 3,664,966 2,250,405 Prepaid expenses 371 224 452 1,047 - Receivables: Accounts, customers 961,859 492,883 270,822 1,725,564 - Accrued interest 375 1,081 396 1,852 5,775 Operating 17,309 25,308 49,500 92,117 41,675 Total current assets 15,419,839 11,559,712 4,593,305 31,572,856 4,949,200 Noncurrent Assets Restricted investments 324,267 - - 324,267 - Capital assets Land 3,121,646 159,812 211,970 3,493,428 - Water rights 87,685 - - 87,685 - Construction in progress 308,719 267,319 - 576,038 - Buildings 13,615,186 17,447,019 58,400 31,120,605 - Improvements 63,299,932 11,843,852 - 75,143,784 - Infrastructure - 3,082,280 - 3,082,280 - Furniture and equipment 7,286,207 1,991,186 3,464,611 12,742,004 - Accumulated depreciation (34,265,462) (12,907,403) (2,038,447) (49,211,312) - Total noncurrent assets 53,778,180 21,884,065 1,696,534 77,358,779 - Total Assets 69,198,019 $ 33,443,777 $ 6,289,839 $ 108,931,635 $ 4,949,200 $ LIABILITIES Current Liabilities Accounts payable 250,878 $ 202,256 $ 100,227 $ 553,361 $ 184,220 $ Accrued interest payable 81,650 108,023 6,545 196,218 - Compensated absences 27,308 11,831 13,101 52,240 - Unearned income 642,498 - - 642,498 - Benefit claims incurred but not reported - - - - 387,625 Revenue bonds- current 400,000 - - 400,000 - Notes payable- current 183,440 784,520 116,238 1,084,198 - Total current liabilities 1,585,774 1,106,630 236,111 2,928,515 571,845 Business-Type Activities- Enterprise Funds (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 45 STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2012 (Continued) Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund Noncurrent Liabilities Compensated Absences 81,922 35,493 39,305 156,720 - Revenue bonds payable 3,050,000 - - 3,050,000 - Landfill closure costs - - 2,409,023 2,409,023 - Notes payable 3,724,958 4,895,607 305,666 8,926,231 - Total noncurrent liabilities 6,856,880 4,931,100 2,753,994 14,541,974 - Total Liabilities 8,442,654 6,037,730 2,990,105 17,470,489 571,845 NET ASSETS Invested in capital assets (net of related debt) 46,095,515 16,203,938 1,274,630 63,574,083 - Restricted for capital projects 1,877,080 1,191,550 670,000 3,738,630 - Unrestricted 12,782,770 10,010,559 1,355,104 24,148,433 4,377,355 Total Net Assets 60,755,365 $ 27,406,047 $ 3,299,734 $ 91,461,146 $ 4,377,355 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 46 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS For the Year Ended June 30, 2012 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund OPERATING REVENUES: Charges for services 8,235,293 $ 4,758,710 $ 2,674,175 $ 15,668,178 $ 3,113,581 $ Other income 116,995 16,340 157,940 291,275 - Total operating revenues 8,352,288 4,775,050 2,832,115 15,959,453 3,113,581 OPERATING EXPENSES Personal services 1,285,746 887,234 981,979 3,154,959 - Contractual services 903,115 587,801 364,038 1,854,954 - Materials and supplies 1,085,051 583,701 191,176 1,859,928 - Landfill closure costs - - 116,246 116,246 - Depreciation 2,174,421 904,024 415,225 3,493,670 - Benefit payments - - - - 2,748,452 Total operating expenses 5,448,333 2,962,760 2,068,664 10,479,757 2,748,452 Operating income 2,903,955 1,812,290 763,451 5,479,696 365,129 NONOPERATING REVENUES (EXPENSES): Investment income 38,462 111,158 31,240 180,860 139,455 Plant investment fees 555,504 487,847 - 1,043,351 - Interest expense (145,499) (130,256) (17,057) (292,812) - Total nonoperating revenue (expenses) 448,467 468,749 14,183 931,399 139,455 Income before transfers and capital contributions 3,352,422 2,281,039 777,634 6,411,095 504,584 TRANSFERS AND CONTRIBUTIONS Capital Contributions: Capital grants 303,398 78,523 - 381,921 - Capital asset transfers 2,230,005 1,413,828 - 3,643,833 - Transfers: Transfers in - - - - 38,000 Transfers (out) (369,285) (404,137) (115,651) (889,073) - 2,164,118 1,088,214 (115,651) 3,136,681 38,000 Change in net assets 5,516,540 3,369,253 661,983 9,547,776 542,584 Net assets at beginning of year, as restated 55,238,825 24,036,794 2,637,751 81,913,370 3,834,771 Net assets at end of year 60,755,365 $ 27,406,047 $ 3,299,734 $ 91,461,146 $ 4,377,355 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 47 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2012 Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: CASH FLOWS FROM OPERATIONS: Receipts from customers 7,806,531 $ 4,684,599 $ 2,610,421 $ 15,101,551 $ 3,130,856 $ Other operating cash receipts 152,951 16,340 108,440 277,731 - Payments to suppliers (2,272,241) (1,065,103) (809,208) (4,146,552) (2,546,265) Payments to employees (1,285,450) (882,428) (987,988) (3,155,866) - Net cash from operating activities 4,401,791 2,753,408 921,665 8,076,864 584,591 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in - - - - 38,000 Transfers (out) (369,285) (404,137) (115,651) (889,073) - Net cash from noncapital financing activities (369,285) (404,137) (115,651) (889,073) 38,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (875,268) (667,464) (694,198) (2,236,930) - Interest paid on long-term debt (230,094) (156,459) (10,967) (397,520) - Principal payments on long-term debt (576,872) (770,087) (163,631) (1,510,590) - Plant investment fees 555,504 487,847 - 1,043,351 - Grant revenue 303,398 20,813 - 324,211 - Proceeds from long-term debt 43,171 - 452,452 495,623 - Net cash from capital and related financing activities (780,161) (1,085,350) (416,344) (2,281,855) - CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (424,000) (2,037,000) (1,031,000) (3,492,000) (2,576,562) Proceeds from sale of investments 410,000 1,975,000 1,013,000 3,398,000 2,508,000 Interest earned on investments 39,190 112,633 28,302 180,125 75,893 Net cash from investing activities 25,190 50,633 10,302 86,125 7,331 Business-Type Activities- Enterprise Funds (Continued) See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 48 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2012 (Continued) Governmental Activity- Waste Solid Internal Water Water Waste Total Service Fund Net change in cash and cash equivalents 3,277,535 1,314,554 399,972 4,992,061 629,922 Cash, beginning 10,737,006 7,299,943 3,058,300 21,095,249 2,021,423 Cash, ending 14,014,541 $ 8,614,497 $ 3,458,272 $ 26,087,310 $ 2,651,345 $ RECONCILIATION OF OPERATING INCOME TO NET CASH FROM OPERATING ACTIVITIES: Income from operations 2,903,955 $ 1,812,290 $ 763,451 $ 5,479,696 $ 365,129 $ Adjustments to reconcile income from operations to net cash from operating activities Depreciation 2,174,421 904,024 415,225 3,493,670 - (Increase) decrease in: Accounts receivable (391,617) (74,111) (113,254) (578,982) 17,275 Prepaid expenses (371) (224) (452) (1,047) Increase (decrease) in: Accounts payable (283,704) 106,623 (253,542) (430,623) 124,758 Compensated absenses payable 296 4,806 (6,009) (907) - Unearned income (1,189) - - (1,189) - Landfill closure costs - - 116,246 116,246 - Benefit claims incurred but not reported payable - - - - 77,429 Net cash from operating activities 4,401,791 $ 2,753,408 $ 921,665 $ 8,076,864 $ 584,591 $ Business-Type Activities- Enterprise Funds See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 49 STATEMENT OF FIDUCIARY NET ASSETS June 30, 2012 Cemetery Trust Fund ASSETS Cash 17,386 $ Interest receivable 3,776 Investments 614,316 Total Assets 635,478 $ NET ASSETS Restricted for cemetery perpetual care 635,478 $ Total Net Assets 635,478 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 50 STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended June 30, 2012 Cemetery Trust Fund ADDITIONS: Revenue Cemetery lot sales 7,310 $ Investment income 22,410 Total Additions 29,720 DEDUCTIONS: Operating expended 15,840 Total Deductions 15,840 Net increase 13,880 Net assets- Beginning of Year 621,598 Net assets- End of Year 635,478 $ See Accompanying Notes to the Basic Financial Statements. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING NOTES TO BASIC FINANCIAL STATEMENTS 51 INDEX NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Financial Reporting Entity B. Basis of Presentation C. Measurement Focus and Basis of Accounting D. Assets, Liabilities, and Equity E. Revenues, Expenditures, and Expenses F. Budgetary Data NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Fund Accounting Requirements B. Compliance with Finance Related and Legal Contractual Provisions C. Excess of Expenditures over Appropriation in Individual Funds NOTE 3. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS A. Cash and Investments B. Restricted Assets C. Accounts Receivable D. Capital Assets E. Easements F. Accounts Payable G. Long-Term Debt H. Landfill Closure and Postclosure Costs I. Interfund Transactions and Balances J. Fund Equity NOTE 4. OTHER NOTES A. Employee Pension Plans B. Risk Management – Claims and Judgments C. Subsequent Events D. Prior Period Adjustments E. Commitments and Contingencies ---PAGE BREAK--- CITY OF LARAMIE, WYOMING NOTES TO BASIC FINANCIAL STATEMENTS 52 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City complies with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. In the government-wide financial statements and the fund financial statements for the proprietary funds, Financial Accounting Standards Board (FASB)pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied unless those pronouncements conflict with or contradict GASB pronouncements, in which case, GASB prevails. For enterprise funds, GASB Statements No. 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 Statements No. 33 and 34. 1.A. FINANCIAL REPORTING ENTITY The City of Laramie is a municipal corporation operated under the City Manager-Council form of government and governed by an elected City Council comprised of nine representatives from the ward system, of which one is appointed as Major and serves a two year term. The City provides the following services as authorized by statute: public safety; street maintenance and operation; health and social services; culture-recreation; public improvements; planning and zoning; and general administrative services. The City’s financial reporting entity is comprised of 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. Management has considered all potential component units and includes organizations for which the City is financially accountable and, in the case of legally separate organizations, for which it appoints a majority of the units’ board and 1) either it is able to impose its will on the unit or 2) there is a financial benefit or burden relationship. Management has also included other organizations for which the nature and significance of their relationship would cause the City’s financial statements to be misleading or incomplete if omitted. Discretely Presented Component Units Each discretely presented component unit is reported in a separate column in the basic financial statements to emphasize that it does not function as an integral part of the City’s operations. Currently, the City has no discretely presented component units. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 53 Blended Component Units Blended component units, although legally separate entities, are, in substance, an integral part of the City’s operations; therefore, financial information is combined with that of the primary government. Currently, the City has no blended presented component units. 1.B. BASIS OF PRESENTATION Government-wide Financial Statements The Statement of Net Assets and Statement of Activities display information about the reporting government as a whole. Information is reported for all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities are generally supported through taxes, intergovernmental revenues, and other non-exchange transactions. On the other hand, business-type activities are financed primarily by fees charged to external parties for goods or services. The primary government is reported separately from legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operations or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: 1. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and 2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 54 The funds of the financial reporting entity are described below: Governmental Funds General Fund The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted for expenditures of certain purposes. The City has three special revenue funds – the Recreation Center Fund, the E911 Fund, and the Economic Development Fund – which are described in the next section of this note. Capital Project Funds Capital Project Funds are used to account for resources restricted for the acquisition or construction of specific capital projects or items. The reporting entity includes the following four Capital Project Funds: The Capital Construction Fund is used to account for the design and construction of various city projects. The Parks and Recreation Development Fund is used to account for the costs of developing new parks and recreation facilities, adding improvements to existing parks, and acquiring land for new parks and recreation opportunities. The Specific Purpose Tax Fund is used to account for capital construction, improvements, and financing related to the 2001 and 2010 specific purpose taxes. The City projects related to the 2001 tax are as follows: City Hall remodeling and boiler replacement, Community Recreation Center construction, furnishings and equipment, acquisition and construction enhancements of an indoor ice rink, acquisition and/or construction of an outdoor swimming pool, street and water line reconstruction, Historic Downtown Laramie streetscape and construction of the East Side water tank project. Projects financed by the 2010 tax include infrastructure improvements for streets, water lines, sewer lines, Casper Aquifer protection, and the landfill. Construction and improvement activity related to the 2010 tax is currently taking place, and debt payments are being made for the 2010 financing. The 2001 debt issue was extinguished during the reporting period. The 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--- NOTES TO BASIC FINANCIAL STATEMENTS 55 Debt Service Fund The Debt Service Fund accounts for the accumulation of financial resources for the payment of interest and principal on the general long-term debt of the City, other than debt service payments made by enterprise funds. Proprietary Funds Enterprise Funds Enterprise Funds are used to account for business-like activities provided to the general public, and these activities are financed primarily by user charges. The measurement of financial activity focuses on determination of net income and changes in fund net assets, financial position, and cash flows, which is similar to the private sector approach. The reporting entity includes the Water and Waste Water Utilities Fund and the Solid Waste Fund. These funds account for user charges and expenses for operating, financing, and maintaining the City’s water, sewer, and solid waste collection, disposal, and recycling systems, respectively. 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 cemetery lots and lot development. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 56 Major and Non-major Funds The funds are further classified as major or non-major as follows: Fund Brief Description Major Governmental Funds: General Fund Accounts for the city’s primary operating activities, as described in the previous section. Capital Project Funds: Capital Construction Fund Specific Purpose Tax Fund Debt Service Fund: Accounts for the design and construction of various city projects. Accounts for activity related to the 2001 and the 2010 specific purpose taxes, as described in the previous section. Wyoming Territorial Prison Debt Service Fund Accounts for the accumulation of resources for, and the payment of, general long-term debt, interest and related costs. Major Proprietary Funds: Waterworks and Waste Water Fund Accounts for revenue and expenditures related to providing water and sewer services on a user charge basis to the general public. Solid Waste Fund Accounts for revenue and expenditures related to providing refuse collection, disposal services, recycling, and diversion on a user charge basis to the public. Non-major Governmental Funds: Capital Project Funds: Parks and Recreation Development Fund Accounts for improvements and capital projects that enhance parks and recreation facilities, as described in the previous section. West Laramie Capital Projects Fund Accounts for capital improvements within a former Special Assessments District, as described in the previous section. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 57 Special Revenue Funds: E911 Fund Recreation Center Fund Economic Development Fund Non-major Proprietary Funds: Internal Service Fund Accounts for revenues and expenditures related to the Laramie and Albany County Records and Communications Center. Accounts for revenues and expenditures related to the operation of the Laramie Community Recreation Center. Accounts for activity related to economic development initiatives and programs. Accounts for financing of employee health insurance. 1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded, regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Assets and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus as defined in item 2 below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate: 1. All governmental funds utilize a “current financial resources” measurement focus. Generally, only current financial assets and liabilities are 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. Proprietary funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net assets. 3. Fiduciary funds are reported using the economic resources measurement focus. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 58 Basis of Accounting In the government-wide Statement of Net Assets and Statement of Activities, both governmental and business-like activities are presented using the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used, regardless of the timing of related cash flows. 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 they are both “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Major revenue sources accrued generally consist of property taxes, sales and use taxes, and grants. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for principal and interest which are reported when due. All proprietary funds and fiduciary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. 1.D. ASSETS, LIABILITIES, AND EQUITY Cash and Investments For the purpose of the Statement of Net Assets, “cash, including time deposits” includes all demand, savings accounts, and certificates of deposits of the City. For the purpose of the proprietary fund Statement of Cash Flows, “cash and cash equivalents” include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. Investments of the promissory note trustee accounts are not considered cash equivalents. Investments are carried at fair value except for short-term U.S. Treasury obligations with a remaining maturity at the time of purchase of one year or less. Those investments are reported at amortized cost. Fair value is based on quoted market price at the reporting date. 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. Transactions related to goods and services provided/used 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 ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 59 the Statement of Net Assets. Note 3.I. details interfund transactions, including receivables and payables, at year-end. Inventories and Prepaid Items Inventories are valued at cost using the average cost method. Inventory of the General Fund consists of fleet fuel and parts and is used for the fuel and maintenance needs of City of Laramie fleet vehicles. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 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 utility user fee revenue and grants 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. Non-exchange transactions collectible but not available are deferred in the fund financial statements in accordance with the modified accrual basis of accounting. They are not deferred in the government-wide financial statements reported using the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days, since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility user fee revenue and grants compose the majority of proprietary fund receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Capital Assets The accounting treatment for property, plant, equipment, and infrastructure (e.g. streets, bridges, storm water drainage, traffic signals, water lines, etc.) 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. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 60 Government-wide Statements In the government-wide financial statements, capital assets are included on the Statement of Net Assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital 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 exhaustible capital assets is recorded as an expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is recognized 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 that are legally restricted as to their use. The restricted assets presented in the government-wide and fund financial statements are related to proceeds from the issuance of long-term debt that are restricted in use; capital facilities sales tax funds restricted for the purchase and/or repayment of debt; and other capital project obligations, debt service requirements, and externally imposed spending restrictions. For additional disclosures regarding Restricted Assets, refer to Note 3.B. Long-term Debt The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. All long-term debt obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. Long-term debt consists primarily of capital leases, bonds, and notes payable; accrued compensated absences; and a court-assessed judgment. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 61 Long-term debt obligations for governmental funds are not reported as liabilities in the fund financial statements. Debt proceeds are reported as other financing sources, and payments of principal and interest are reported as expenditures. Premiums received on debt issued are reported as other financing sources while discounts are reported as other financing uses. Accounting for the 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. Overtime pay can be deferred by accumulating compensatory leave up to a maximum limit of 80 hours. In the event of termination or retirement, an employee is paid for all accumulated compensatory leave and accumulated vacation hours up to a maximum of 240 hours for less than 15 years of service or up to a maximum of 320 hours for 15 or more years of service. The City does not pay employees for accumulated sick leave upon termination or retirement, except for Fire Department personnel, the terms of which are in accordance with the existing contract. The liability for these compensated absences is recorded as long-term debt in the government-wide statements. The current portion of this debt is estimated based on historical vacation usage trends. In the fund financial statements, governmental funds report the compensated absence liability payable from expendable available financial resources only if they 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. During FY 2011, the City issued general obligation bond totaling $22,550,000 that were sold at a premium of $405,157. This premium was recorded in deferred revenue and is being amortized over the life of the debt, which is a ten year issue if the bonds are called at maturity. Equity Classifications Government-wide Statements Equity is classified as net assets and displayed in three components: 1. Invested in capital assets, net of related debt—Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 62 borrowings that are attributable to the acquisition, construction, or improvement of those assets. 2. Restricted net assets—Consists of net assets with constraints placed on the use either by external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or law through constitutional provisions or enabling legislation. 3. Unrestricted net assets—All other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.” When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources as needed. Fund Statements Governmental fund equity is classified as fund balance. In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balance is classified into five components: nonspendable, restricted, committed, assigned, and unassigned. Definitions are presented below: 1. Nonspendable Fund Balance – This classification reflects the portion of net resources that is inherently nonspendable because of its form or because it must be maintained intact. 2. Restricted Fund Balance – The portion of fund balance for which there are legally enforceable restrictions on use, either by limitations imposed 1) by creditors, grantors, contributors, or laws and regulations of other governments or 2) by laws through constitutional provisions or enabling legislation. 3. Committed Fund Balance – The portion of net resources for which there are self-imposed limitations enacted by the City Council that 1) required formal action at the same level to remove and 2) are set in place prior to the end of the period. Commitments may be established, modified, or rescinded through motion action enacted by City Council. 4. Assigned Fund Balance – This classification reflects the portion of fund balance for which there are limitations that result from intended use established by the City Council or the City Manager. Based on the City Manager-Council form of government, the City Manager or the City Manager’s designee has the authority to designate fund balance in order to accomplish organizational objectives. 5. Unassigned Fund Balance – The portion of net resources that is residual after nonspendable, restricted, committed, and assigned amounts have been determined. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 63 When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources – committed, assigned, and unassigned – in order as needed. See Note 3.J. for additional disclosures regarding the components of fund balance in the City’s governmental funds. Proprietary fund equity is classified the same as in the government-wide statements: invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. When both restricted and unrestricted resources are available for use, it is the City’s policy to use externally restricted resources first, then unrestricted resources as needed. 1.E. REVENUES, EXPENDITURES, AND EXPENSES Sales Tax The State presently levies a four-cent sales tax which the City receives approximately 31% of taxable collections. In November 2010, Albany County residents voted to continue the one cent optional tax. The majority of the optional penny tax goes directly to the City and Albany County. The sales tax is collected by the Wyoming Department of Revenue and remitted to the City in the month following receipt by the Department of Revenue. The Department of Revenue receives the sales tax approximately one month after collection by vendors. The sales tax is recorded entirely in the General Fund. Sales taxes received from the State in July have been accrued. Use Tax The State presently levies a four-cent use tax which the City receives approximately 31% of taxable collections. In November 2010, Albany County residents voted to continue the one cent optional tax. The majority of the optional penny tax goes directly to the City and Albany County. The use tax is collected by the Wyoming Department of Revenue and remitted to the City in the month following receipt by the Department of Revenue, which is one month after the tax is received from the vendors. The use taxes are allocated entirely to the General Fund. Use taxes received from the State in July have been accrued. Specific Purpose Tax On August 1, 2002, the residents of Albany County approved a 1% specific purpose tax to fund several capital projects for Albany County, the City of Laramie and the Town of Rock River. The tax is in the form of sales and use tax and is collected by the Wyoming Department of Revenue and remitted to the Albany County Treasurer who in turn distributes the funds to the participating organizations in proportion to their participation in the projects. The sales tax collections ended during fiscal year 2011, and the bonded debt was extinguished with the remaining funds during the current reporting period. On May 4, 2010, the residents of Albany County approved the renewal of the 1% Specific Purpose Tax for $46,000,000 of capital projects within the City of Laramie, Albany County, and the Town of Rock River. The City’s portion of the projects totals $22,550,000, with the majority of dollars being allocated to water, sewer, and street ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 64 infrastructure. The renewal went into effect in October 2010, and capital construction began in spring 2011. Property Tax Property taxes are levied in the first week of August of each year and are collectible in two installments. Installments are due on September 1 and March 1 and are collectible on November 10 and May 10. If the first installment is made after November 10, the entire amount is due by December 31. Property taxes attach an enforceable lien on the property if the payment is not made by November 10 and May 10. The City can request a tax not in excess of eight mills plus an additional amount (currently 0.75 mill) for the extinguishment of general obligation debt in any one year for the purpose of paying the costs incurred in performing the governmental functions essential to the convenience, safety and happiness of the citizens. The Office of the Albany County Treasurer bills and collects the property taxes and remits to the City its portion. In the fund financial statements, property taxes are recorded as revenue in the period levied to the extent they are collected within 60 days of year-end. For the amount of any additional property taxes receivable after the 60-day period, an additional accrual is made in the government-wide financial statements. Operating Revenues and Expenses Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities. Expenditures/Expenses In the government-wide financial statements, expenses are classified by function for both governmental and business-type activities. In the fund financial statements, expenditures are classified as follows: Governmental Funds—By Character: Current (further classified by function) Debt Service Capital Outlay Proprietary Fund—By Operating and Nonoperating In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 65 Interfund Transfers Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. 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 For fiscal year 2012, the City adopted revisions to the Biennial Budget Resolution for the General Fund and Recreation Center Special Revenue Fund, and an annual budget resolution for all other funds. The City prepares a biennial budget so that it can better match its operating cycle with the State of Wyoming, on which it relies for supplemental funding. The budget and related appropriations are prepared on the encumbrance basis, whereas the City’s governmental financial statements are prepared on the modified accrual basis of accounting. The City’s government-wide financial statements are prepared on the accrual basis of accounting. Budgetary Control Each fund’s appropriated budget is prepared on a detailed line item basis. This detail is published and distributed for the recommended budget, but some funds are adopted in total in the final budget resolution. Revenues are budgeted by source. Expenditures are budgeted by department and character (personal services, materials and supplies, contractual services, capital outlay, and debt service). The legal level of spending control is at the department level; however, the City enforces budgetary control more strictly for certain items. In accordance with Wyoming state statute, capital items and one time expenditures are viewed as allocated for a specific purpose. Changes to capital or one time budget allocations, regardless of whether departmental expenditures exceed appropriations for a year, are presented to the City Council as budget amendments. 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. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 66 There were two material budget amendments in the General Fund for the year ended June 30, 2012, which are summarized below. General Fund Increase in executive expenditures 6,798 $ Increase in administrative service expenditures 23,557 Increase in judicial expenditures 1,538 Increase in legal expenditures 475 Increase in other general government expenditures 30,555 Increase in police department expenditures 217,606 Increase in fire department expenditures 292,307 Increase in engineering expenditures 23,462 Increase in code administration expenditures 2,848 Increase in animal control expenditures 2,962 Increase in mosquito control expenditures 35,589 Increase in highways and streets expenditures 25,732 Increase in parks, recreation, and cemetery expenditures 96,636 Net difference between original and final amended budget 760,065 $ In total, General Fund expenditures did not exceed appropriations. NOTE 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY By its nature as a local government unit, the City and its component units are subject to various federal, state and local laws and contractual regulations. An analysis of the City’s compliance with significant laws and regulations and demonstration of its stewardship over the City includes the following: 2.A. FUND ACCOUNTING REQUIREMENTS The City complies with all state and local laws and regulations requiring the use of separate funds. The legally required funds used by the City include the following: Fund Required By Cemetery Trust Fund State Law Wyoming Territorial Prison Debt Service Fund Loan Agreement Specific Purpose Tax Fund Trust Indenture 2.B. COMPLIANCE WITH FINANCE RELATED AND LEGAL CONTRACTUAL PROVISIONS The City has no material violations of finance related legal contractual provisions. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 67 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. DETAILED NOTES ON TRANSACTION CLASSES/ACCOUNTS 3.A CASH AND INVESTMENTS Effective July 1, 2004 the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures. This statement establishes financial reporting standards for all state and local governments pertaining to the presentation and disclosure requirement of deposits and investment risks related to credit risk, inherent rate risk, and foreign currency risk. Adoption of this accounting standard had no impact on total net assets. Wyoming Statute 9-4-817 authorizes agencies of the State to deposit public funds in financial institutions authorized to do business in the state of Wyoming. These deposits must be fully insured by the Federal Deposit Insurance Corporation (FDIC) or secured by a pledge of assets that totals 102% including bonds, debentures and other securities in which the State Treasurer may by law invest in. Alternatively, a depository may pledge to deposit with conventional real estate mortgages and loans connected with mortgages at a ratio of one and one half (1 ½ of the value of public funds secured by the securities. The City investment policy specifies that internally invested funds may be invested in a combination of fixed-income, minimal risk instruments and money market funds. Investment goals for internally invested funds are designed to achieve a return to provide income, protect assets from risk, and maintain liquidity to meet spending requirements. Investments are limited to collateralized bank certificates of deposits, money market funds or federally guaranteed or insured securities. Custodial services are utilized to safeguard the assets and provide reports. Deposits At June 30, 2012, the carrying amount of the City’s demand deposits in financial institutions was $43,009,186. 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, 2012, the carrying amount of the City’s deposits with the Wyoming State Treasurer’s Asset Reserve (Wyo-STAR) totaled $5,297,429. Detailed information on Wyo-STAR’s pooled cash and investments is available from the Wyoming State Treasurer’s Office located at 200 W 24th Street, Cheyenne, WY, 82002. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 68 Investments As of June 30, 2012, the City had investments with weighted average maturities as shown in the following table: Weighted Carrying Average Maturity Investment Type Amount Fair Value in Years Federal Home Loan Mortgage Corporation 7,991,000 $ 7,997,432 $ 3.09 CMO Series 443,348 538,528 22.07 Federal National Mortgage Association 3,254,487 3,265,261 6.21 Government National Mortgage Association 6,462 7,328 12.46 U.S. Treasury Strips 9,910,600 9,910,600 2.38 Certificates of Deposit 2,589,536 2,589,536 0.68 Total 24,195,433 $ 24,308,685 $ Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City does not have a formal policy for interest rate risk. However, the City does manage its exposure to fair value loss arising from interest rate changes on internally invested funds by reviewing the portfolio on an ongoing basis for changes in effective yields amounts. Within the U.S. Government Agency Securities Discount Notes category are Federal Home Loan, Fannie Mae securities and GNMA securities that are highly sensitive to changes in interest rates. The City does not have a formal policy for interest rate risk. However, the risk is mitigated by review of the portfolio on an ongoing basis for changes in effective yields amounts. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 69 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 Moody’s quality ratings and insured status of investments that are not rated: Investment Type Fair Value AAA Insured Unrated Federal Home Loan Mortgage Corporation 7,997,432 $ 7,997,432 $ - $ - $ Federal National Mortgage Association 3,265,261 3,265,261 - - Government National Mortgage Association 7,328 - 7,328 - CMO Series 538,528 - 538,528 - U.S. Treasury Strips 9,910,600 9,910,600 - - Certificates of Deposit 2,589,536 - - 2,589,536 State of Wyoming Investment Pool 5,297,429 - - 5,297,429 Money Market Refunding Bond Reserve 642,497 - - 642,497 Money Market 22,366 - - 22,366 Total 30,270,977 $ 21,173,293 $ 545,856 $ 8,551,828 $ 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, 2012, the City held securities from the following issuers in excess of 5% of the total portfolio: Federal Home Loan Mortgage Corporation 7,997,432 $ Federal National Mortgage Association 3,265,261 U.S. Treasury Strips 9,910,600 Certifications of Deposit 2,589,536 Total 23,762,829 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 70 Foreign Currency Risk Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect the fair value of an investment or a deposit. The City’s policy is not to invest in foreign currency which mitigates their exposure to foreign currency risk. 3.B. RESTRICTED ASSETS The amounts reported as restricted assets include cash and investments legally restricted as to their use. Some of these amounts are restricted for use in the construction and financing of projects approved by the voters of the City of Laramie and Albany County. Other restrictions include additional capital projects, debt service requirements, and donor or other externally imposed spending restrictions. The balances of government wide restricted assets as of June 30, 2012 are as follows: Fund Amount Recreation Center Fund 2,625,021 $ General fund 119,099 Capital Construction Fund 5,289,832 Parks and Recreation Construction Fund 289,628 West Laramie Construction Fund 40 Specific Purpose Tax Fund 21,016,413 Water Fund 966,764 Wyoming Territorial Prison Debt Service Fund 9,910,600 Total Restricted Net Assets 40,217,397 $ 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 $6,320 as of June 30, 2012. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 71 3.D. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2012 was as follows: Balance at Balance at June 30, 2011 Additions Disposals June 30, 2012 Governmental activities: Non-depreciable assets Land 1,773,352 $ 13,248 $ - $ 1,786,600 $ Construction in progress 2,838,525 2,783,977 (1,729,379) 3,893,123 Depreciable assets Buildings 34,280,917 2,188,648 - 36,469,565 Improvements 5,052,997 288,132 - 5,341,129 Infrastructure 55,511,891 5,704,464 - 61,216,355 Furniture and equipment 11,610,986 1,322,105 (499,674) 12,433,417 Total at historical cost 111,068,668 12,300,574 (2,229,053) 121,140,189 Accumulated depreciation Buildings (7,635,586) (816,428) - (8,452,014) Improvements (1,403,241) (247,802) - (1,651,043) Infrastructure (24,681,491) (1,793,101) - (26,474,592) Furniture and equipment (7,575,200) (1,287,619) 368,265 (8,494,554) Total accumulated depreciation (41,295,518) (4,144,950) 368,265 (45,072,203) Governmental activities capital assets, net 69,773,150 $ 8,155,624 $ (1,860,788) $ 76,067,986 $ Balance at Balance at June 30, 2011 Additions Disposals June 30, 2012 Business-type activities: Non-depreciable assets Land 3,493,428 $ - $ - $ 3,493,428 $ Water rights 87,685 - - 87,685 Construction in progress 471,374 421,177 (316,513) 576,038 Depreciable assets Buildings 31,120,605 - - 31,120,605 Improvements 72,901,565 2,242,219 - 75,143,784 Infrastructure 1,476,603 1,605,677 - 3,082,280 Furniture and equipment 11,133,469 1,928,113 (319,578) 12,742,004 Total at historical cost 120,684,729 6,197,186 (636,091) 126,245,824 Accumulated depreciation Buildings (15,450,163) (645,914) - (16,096,077) Improvements (23,890,202) (1,801,249) - (25,691,451) Infrastructure (92,287) (56,986) - (149,273) Furniture and equipment (6,604,565) (989,521) 319,575 (7,274,511) Total accumulated depreciation (46,037,217) (3,493,670) 319,575 (49,211,312) Business-type activities capital assets, net 74,647,512 $ 2,703,516 $ (316,516) $ 77,034,512 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 72 Depreciation expense was charged to governmental activities as follows: Administrative services 63,368 $ Legal 656 Other general government 278,150 Public safety: Police 464,738 Fire 373,214 Engineering and code administration 9,158 Health and welfare: Animal control 17,086 Mosquito control 24,750 Culture and recreation: Parks 343,879 Recreation 460,476 Cemetery 33,461 Highways and streets 2,076,014 Total depreciation expense 4,144,950 $ 3.E. EASEMENTS The City of Laramie purchased no easements during the past fiscal year. 3.F. ACCOUNTS PAYABLE Payables in the general fund and nonmajor governmental funds are composed of payables to vendors and accrued salaries and benefits. Payables of the Enterprise Funds are composed of payables to vendors and accrued salaries and benefits. 3.G. LONG-TERM DEBT The reporting entity’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. The liability for compensated absences has historically been paid for by the fund which incurred the liability for the compensated absences. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 73 The following is a summary of changes in long-term debt obligations of the City at June 30, 2012: Long-term Long-term Obligations at Obligations at Due Within June 30, 2011 Additions Deletions June 30, 2012 One Year Loans Payable: WTP note payable 10,000,000 $ - $ - $ 10,000,000 $ - $ Pension buy out 38,509 - 38,509 - - Capital Leases: VOIP Telephone System 49,191 - 24,279 24,912 24,912 Police cars 182,102 - 182,102 - - Central Irrigation System 205,238 - 102,610 102,628 102,628 WAM energy lease 17,500 - 5,000 12,500 5,000 Animal shelter Building 108,054 - 108,054 - - E911 consoles 412,616 - 160,495 252,121 166,412 Energy improvements lease - 1,178,035 - 1,178,035 91,263 WAM energy lease II 100,000 - 10,000 90,000 10,000 City Hall remodel 192,005 - 192,005 - - Recreation Center construction 1,905,972 - 1,905,972 - - Ice Rink construction 230,285 - 230,285 - - East Side tank construction 1,073,703 - 1,073,703 - - General Obligation Bonds: SPT 2010 GO Bonds 22,300,000 - 1,500,000 20,800,000 1,650,000 Other Long-term Debt: Compensated absences 1,084,622 1,234,120 1,251,038 1,067,704 266,926 37,899,797 $ 2,412,155 $ 6,784,052 $ 33,527,900 $ 2,317,141 $ Long-term Long-term Obligations at Obligations at Due Within June 30, 2011 Additions Deletions June 30, 2012 One Year Revenue Bonds: Water refunding bonds 2,025,000 $ - $ 300,000 $ 1,725,000 $ 300,000 $ Water refunding bonds 1,825,000 100,000 1,725,000 100,000 Loans Payable: WWDC Spur Well loan 615,425 - 51,259 564,166 53,310 WWDC Water projects loan 1,189,655 - 85,646 1,104,009 88,563 WWDC Soldier Springs Well loan 422,971 - 39,968 383,003 41,567 WWDC Laramie Transmission 1,814,049 43,171 - 1,857,220 - WSLIB Main Lift Station Project 697,526 30,130 667,396 32,101 WSLIB Wastewater Treatment Facility loan 5,206,768 - 695,712 4,511,056 707,543 WSLIB Wastewater Treatment Facility loan 545,920 - 44,245 501,675 44,875 Capital Leases: Landfill dozer and ripper 133,082 - 87,807 45,275 45,275 Recyling program equipment - 452,452 75,823 376,629 70,964 Other long-term debt Landfill closure and post closure costs payable 2,292,777 116,246 - 2,409,023 - Compensated absences 209,867 221,023 221,930 208,960 52,240 16,978,040 $ 832,892 $ 1,732,520 $ 16,078,412 $ 1,536,438 $ Governmental Activities: Business-Type Activities: ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 74 Governmental Activities: As of June 30, 2012, 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 $ CAPITAL LEASES: Capital lease payable, due in annual installments of $25,562 including interest at 2.561% to September, 2012, collateralized by equipment with an aggregate carrying value of $126,686 24,912 Capital lease payable, due in semi-annual installments of $54,452 with interest at 3.5% through February 2013 and secured by equipment with an aggregate carrying value of $260,875 102,628 Capital lease payable to WAM, due in semi-annual installments of $2,500, at zero interest to June 2016, unsecured 12,500 Note payable due in semi-annual installments of $87,586, including interest at 3.10% to 4.25% through December 2013 and secured by radios and equipment with an aggregate carrying value of $635,500 252,121 Capital lease payable, due in semi-annual installments of $54,670, including interest at 4.2% through June 2026, collaterialized by equipment with an aggregate carrying value of $1,178,035 1,178,035 Capital lease payable to WAM, due in quarterly installments 90,000 of $2,500 at zero interest through 2022, unsecured BONDS: General obligation bonds, due in semi-annual variable installments ranging from $1,011,187 to $1,396,500 at a net interest rate of 2.32% including a premium on the debt issue of $405,157 to November 2020 secured by the one cent specific purpose tax 20,800,000 Total Governmental Activity Debt 32,460,196 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 75 Business-type Activities: As of June 30, 2012, 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. 1,725,000 $ A series of refunding water bonds, due in annual installments through December 1, 2017 with semi-annual interest payments at 2.90% to 4.50%. These bonds are callable after December 1, 2009. Secured by revenues generated by the Municipal Water System. 1,725,000 LOANS: Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments of $75,873 including interest at 4.0% to December 2021, secured by revenues generated by the Municipal Water System. 564,166 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments from $116,203 to $150,256 including interest at 2.5% to September 2023, secured by revenues generated by the Municipal Water System. 1,104,009 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments of $56,887 including interest at 4.0% to December 2020, secured by revenues generated by the Municipal Water System. 383,003 Note payable to the State of Wyoming, Wyoming Water Development Commission due in annual installments estimated at $103,000 including interest at 4.0% secured by revenues generated by the Municipal Water System. Payments begin in December 2013 through December 2043. 1,857,220 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $48,569, including interest at 2.50% to April 2028 secured by revenues generated by the Wastewater Treatment Facility. 667,396 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $820,532, including interest at 2.5% to October 2018, secured by revenues generated by the Wastewater Treatment Facility. 4,511,056 (Continued) ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 76 Note payable to the Wyoming State Land and Investment Board, due in annual installments of $57,444, including interest at 2.5% to August 2018, secured by revenues generated by the Wastewater Treatment Facility. 501,675 Note payable due in semi-annual installments of $46,214 including interest at 4.15% to December 2012, secured by equipment with an aggregate carrying value of $304,979. 45,275 Note payable due in annual installments of $82,166 including interest at 2.975% to January 2017, secured by equipment with an aggregate carrying value of $452,452. 376,629 Total Business-Type Activity Debt 13,460,429 $ Annual Debt Service Requirements The annual requirements to amortize all debt outstanding as of June 30, 2012, excluding obligations associated with compensated absences and Landfill Closure and Post-closure costs are as follows: Principal Interest Principal Interest Principal Interest 2013 2,050,216 $ 584,325 1,514,773 $ 544,738 $ 3,564,989 $ 1,129,063 $ 2014 1,990,073 512,173 1,523,443 388,291 3,513,516 900,464 2015 12,029,596 470,619 1,603,197 338,718 13,632,793 809,337 2016 2,079,944 428,271 2,033,783 277,619 4,113,727 705,890 2017 2,082,912 385,303 1,315,288 223,614 3,398,200 608,917 2018-2020 7,242,835 838,435 2,308,644 445,245 9,551,479 1,283,680 2021-2025 4,878,630 216,821 1,658,846 419,131 6,537,476 635,952 2026-2030 105,990 3,350 472,550 251,346 578,540 254,696 2031-2035 - - 335,500 180,193 335,500 180,193 2036-2040 - - 408,186 107,506 408,186 107,506 2041-2045 - - 286,219 23,197 286,219 23,197 32,460,196 $ 3,439,297 $ 13,460,429 $ 3,199,598 $ 45,920,625 $ 6,638,895 $ Governmental Activities Business-Type Activities Government-Wide Legal Debt Margin The City is subject to debt margin limits related to general obligation (GO) bonds, which are based on the City’s current assessed value of $214,438,007. For GO bonds related to general projects, the debt limit is 4% of the City’s assessed value. For wastewater projects financed by GO bonds, the debt limit is 8% of the City’s assessed value. Per Wyoming Statute, there is no debt limit for water projects financed by GO bonds. Additional information about the City’s debt limit, including the current calculation, is included in the statistical section. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 77 3.H. LANDFILL CLOSURE AND POSTCLOSURE COSTS State and federal laws require the City of Laramie to place a final cover on its municipal landfill site when it stops accepting waste and to perform certain monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $2,409,023 reported as landfill closure and postclosure care liability at June 30, 2012 represents the cumulative amount reported to date based on 55.92 percent of the estimated usage of the landfill. The City will recognize the remaining estimated costs of closure and postclosure care of $1,899,013 as the remaining capacity is filled. The liability for post closure care is reviewed annually by landfill engineering specialists, who recommend adjustments based on inflation, changes in technology, and changes in regulations. The City expects to close the landfill in the year 2034. 3.I. INTERFUND TRANSACTIONS AND BALANCES The City transfers amounts between funds to pay for operating expenses. The transfers are budgeted for by the City Council to supplement the operating costs for the respective funds for matching funds required by capital grants. The transfers for the year ended June 30, 2012 were as follows: Transfers In Transfers Out Governmental Funds: Major Funds: General Fund 889,073 $ 898,000 $ Specific Purpose Tax Fund - - Capital Construction Fund 907,672 107,672 Nonmajor Funds 60,000 - Total Governmental Funds 1,856,745 1,005,672 Proprietary Funds: Major Funds: Water Fund - 369,285 Waste Water Fund - 404,137 Solid Waste Fund - 115,651 Total Proprietary Funds - 889,073 Internal Service Funds 38,000 - Total Transfers 1,894,745 $ 1,894,745 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 78 Interfund loan amounts are temporary in nature and are repaid by the respective funds on a current basis. As of June 30, 2012 there were no interfund loan balances. 3.J. FUND EQUITY Amounts for specific purposes by fund and fund balance classifications for the year ended June 30, 2012 are as follows: Classification/Fund Purpose Amount Nonspendable General Fund Prepaid Items and Inventory 23,685 $ Economic Development Fund Economic Loans 197,107 Recreation Center Fund Recreation Endowment 2,589,536 Total Nonspendable Fund Balance 2,810,328 $ Restricted General Fund Debt payments 259,023 $ Emergency E911 Fund Debt payments 175,172 Debt Service Fund Wyoming Terriorial Prison Debt 9,910,600 Specific Purpose Tax Capital projects 21,623,229 Park & Recreation Mill Fund Recreation capital projects 208,002 Capital Projects Fund Contracted capital improvements 1,473,517 Capital lease reserve 1,178,935 Total Restricted Fund Balance 34,828,478 $ Committed General Fund Encumbered contracts 1,739,932 $ Recreation Center Fund Encumbered contracts 13,043 Capital Projects Fund Encumbered contracts/grants 1,426,300 Total Committed Fund Balance 3,179,275 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 79 Assigned General Fund Encumbered projects 1,534,675 $ Vacation/Comp Acc. Over 60 day 716,932 Subsequent years budget (biennum) 3,510,000 Contingency budget dept policy 510,250 Economic contingency 1,000,000 Recreation Center Fund 119,972 Emergency E911 Fund 921,715 Total Assigned Fund Balance 8,313,544 $ Unassigned General Fund 8,634,701 $ Total Fund Balance 57,766,326 $ NOTE 4. OTHER NOTES 4.A. EMPLOYEE PENSION PLANS Wyoming Retirement System All City full-time or regular part-time employees, other than policemen and firemen, participate in the Wyoming Retirement System’s (WRS) Public Employee Pension Plan, a cost sharing multiple-employer defined benefits pension plan. The payroll for employees covered by WRS for the year ended June 30, 2012 was $7,552,285; the City’s total payroll was $15,438,249. All City full-time or regular part-time employees, other than policemen and firemen, are eligible to participate in the WRS. Employees who retire at or after age 60 with four years of credited service are entitled to a retirement benefit according to predetermined formulas and allowed to select one of five optional methods for receiving benefits. Early retirement is allowed provided the employee has completed four years of service and attained age 50, but will result in a reduction of benefits based on the length of time remaining to normal retirement age. WRS also provides death and disability benefits. Benefits are established by State statutes. Prior to September 1, 2010, the WRS statutorily required 11.25% of the covered employees’ salary to be contributed to the plan, of which 2.50% was paid by the employee and the remaining 8.75% was paid by the City. After this date, the required contribution increased to 14.12%, of which 3.25% is paid by the employee and 10.87% is paid by the City. The contribution requirement for the year ended June 30, 2012 was $1,066,248 which consisted of $245,315 from employees and $820,933 from the City. 100% of the required amount was contributed for the year ended June 30, 2012. The required contribution amounts of $1,023,797 for June 30, 2011 and $880,930 for June 30, 2010 were also 100% contributed. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 80 Actuarial valuations are performed annually with the most recent valuation date of January 1, 2012. According to the Wyoming Retirement System’s Comprehensive Annual Financial Report (CAFR) for the period ending December 31, 2011, the Entry Age Normal Actuarial Cost Method is used to determine the plan obligation. Under this method, the employer contribution rate is determined using a level funding approach and the required contributions represent the sum of the employer normal cost rate, and (ii) the rate that will amortize the unfunded actuarial accrued liability (UAAL) over 30 years from the valuation date. Actuarial assumptions include the following: 1) 8.0% investment rate of return, compounded annually, composed of an assumed 3.5% inflation rate and a 4.5% net real rate of return 2) Projected salary increases of 4.5% per year 3) Cost of living adjustments ranging at 3.0% per year The actuarial value of assets is based on the market value of assets with a five-year phase in of actual investment returns in excess of or (less than) expected investment income. Interest, dividends, and other income are recognized immediately. A schedule of funding progress for the Public Employee’s Pension Plan is presented as part of Required Supplemental Information. Historical trend information showing the fund’s progress in accumulating sufficient assets to pay benefits when due, including actuarial valuation information is presented in the Wyoming Retirement System’s CAFR for the period ending December 31, 2011. This report, as well as historical reports, can be obtained by contacting the Wyoming Retirement System (WRS) at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or by accessing WRS’s website at http://retirement.state.wy.us. Paid Fireman’s Pension Fund All full-time paid employees of the Fire Department participate in the Paid Fireman’s Pension Fund (“Fund”), a cost sharing multiple-employer defined benefit pension plan which is part of the Wyoming Retirement System. Within the Paid Fireman’s Pension Fund, there are two funds, Plan A and Plan B. Plan A is for those employees employed prior to July 1, 1981 and Plan B is for those employees employed after June 30, 1981. There are currently no employees covered under the Plan A fund. The payroll for employees covered by Plan B was $3,317,227 for the year ended June 30, 2012; the City’s total payroll was $15,438,249. 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 ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 81 ½ years. A maximum of 4% non-compounded, annual increase, not to exceed the consumer price index, may be granted to all retirees that have been retired for at least 12 months and are 55 years old. The Fund also provides death and disability benefits. Benefits are established by State statute. Plan A was actuarially determined to be fully funded in April 1997. No further contributions to this fund are required. Plan B statutorily requires 20.5% of the covered employees’ salary to be contributed to the Plan, of which 7.5% is paid by the employee and the remaining 13% is paid by the City. The contribution requirement for the year ended June 30, 2012 was $690,032, which consisted of $250,228 from employees and $439,804 from the City. 100% of the required amount was contributed for the year ended June 30, 2012. The required contribution amounts of $642,789 for June 30, 2011 and $621,685 for June 30, 2010 were also 100% contributed. Actuarial valuations are performed annually with the most recent valuation date of January 1, 2012. According to the Wyoming Retirement System’s Comprehensive Annual Financial Report (CAFR) for the period ending December 31, 2011, the Entry Age Normal Actuarial Cost Method is used to determine the plan obligation. Under this method, the employer contribution rate is determined using a level funding approach and the required contributions represent the sum of the employer normal cost rate, and (ii) the rate that will amortize the unfunded actuarial accrued liability (UAAL) over 30 years from the valuation date. Actuarial assumptions include the following: 1) 8.0% investment rate of return, compounded annually, composed of an assumed 3.5% inflation rate and a 4.5% net real rate of return 2) Projected salary increases at 4.5% per year 3) Cost of living adjustments at 3.0% per year The actuarial value of assets is based on the market value of assets with a five-year phase in of actual investment returns in excess of or (less than) expected investment income. Interest, dividends, and other income are recognized immediately. A schedule of funding progress for the Paid Fireman’s Pension Fund is presented as part of Required Supplemental Information. Historical trend information showing the fund’s progress in accumulating sufficient assets to pay benefits when due, including actuarial valuation information is presented in the Wyoming Retirement System’s CAFR for the period ending December 31, 2011. This report, as well as historical reports, can be obtained by contacting the Wyoming Retirement System (WRS) at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or by accessing WRS’s website at http://retirement.state.wy.us. State of Wyoming Police Pension Fund Plan Description: The City of Laramie contributes to the State of Wyoming Police Pension Fund (“Fund”), an agent multiple-employer public employee retirement fund that acts as a common investment and administrative agent for several cities in the State. All City policemen are eligible to participate in the Fund. Benefits vest after 10 years of service. Any police officer who retires at age 60 or with 20 years of credited service is entitled to an annual retirement benefit, payable for life, in an amount equal to 2.5 percent of ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 82 their average salary during their highest paid five year period multiplied by the number of years of service (up to a maximum of 62.5 percent). The Fund also provides death and disability benefits to participating employees. Benefit provisions and all other requirements are established by state statute. The payroll for employees covered by the Police Pension Fund was $3,503,984 for the year ended June 30, 2012; the City’s total payroll was $15,438,249. The Fund statutorily requires 17.2% of the covered employees’ salary to be contributed to the fund, of which 4.85% is paid by the employee and the remaining 12.35% is paid by the City. The contribution requirement for the year ended June 30, 2012 was $602,685, which consisted of $169,943 from employees and $432,742 from the City. 100% of the required contribution was made for the year ended June 30, 2012. The required contributions of $571,991 for June 30, 2011 and $612,584 for June 30, 2010 were also 100% contributed. Actuarial valuations are performed annually with the most recent valuation date of January 1, 2012. According to the Wyoming Retirement System’s Comprehensive Annual Financial Report (CAFR) for the period ending December 31, 2011, the Entry Age Normal Actuarial Cost Method is used to determine the plan obligation. Under this method, the employer contribution rate is determined using a level funding approach and the required contributions represent the sum of the employer normal cost rate, and (ii) the rate that will amortize the unfunded actuarial accrued liability (UAAL) over 30 years from the valuation date. Actuarial assumptions include the following: 1) 8.0% investment rate of return, compounded annually, composed of an assumed 3.5% inflation rate and a 4.5% net real rate of return 2) Projected salary increases at 4.5% per year 3) Cost of living adjustments at 2.0% per year The actuarial value of assets is based on the market value of assets with a five-year phase in of actual investment returns in excess of or (less than) expected investment income. Interest, dividends, and other income are recognized immediately. A schedule of funding progress for the State of Wyoming Police Pension Fund is presented as part of Required Supplemental Information. Historical trend information showing the fund’s progress in accumulating sufficient assets to pay benefits when due, including actuarial valuation information is presented in the Wyoming Retirement System’s CAFR for the period ending December 31, 2011. This report, as well as historical reports, can be obtained by contacting the Wyoming Retirement System (WRS) at 6101 Yellowstone Road, Suite 500, Cheyenne, WY 82002 or by accessing WRS’s website at http://retirement.state.wy.us. ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 83 4.B RISK MANAGEMENT- CLAIMS AND JUDGMENTS Self-Insured Health Plan Description The City’s risk management activities are recorded in the Employers Plan Services (EPS) fund. The purpose of this fund is to administer employee health insurance. This fund accounts for the financing activities of the City but does not constitute a transfer of risk from the City. An excess coverage insurance policy covers individual claims in excess of $85,000 for each insured during the policy year. The City is exposed to various risks 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, 2009 to June 30, 2012: Liability balance, June 30, 2009 405,119 $ Claims and changes in estimates 2,528,117 Claims payments (2,446,943) Liability balance, June 30, 2010 486,293 Claims and changes in estimates 1,950,901 Claims payments (2,067,536) Liability balance, June 30, 2011 369,658 Claims and changes in estimates 2,766,419 Claims payments (2,748,452) Liability balance, June 30, 2012 387,625 $ Assets available to pay claims at June 30, 2012 4,949,200 $ ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 84 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 SUBSEQUENT EVENTS In September 2012, the City refinanced Series 2001 Refunding Water Bonds (December 1, 2015) at .91825% resulting in a net savings of $97,000. 4.D PRIOR PERIOD ADJUSTMENTS At June 30, 2010, the City accrued $1,417,650 in grants receivable for the Water Fund. When the revenue was received during the following year, the transaction was recognized as revenue rather than being booked as a reduction in the existing receivable. As a result, for the year ended June 30, 2011, net assets and grant revenue reported for the Water Fund on the Proprietary Fund statements and for business type activities on the Government Wide statements, were overstated by the amount noted above. To correct this error, a decrease in Water Fund Retained Earnings was recognized at June 30, 2012 and the beginning balance of Water Fund Net Assets was restated as follows: Net Assets at 6/30/2011 $56,656,475 Prior Period Adjustment ($1,417,650) Adjusted Net Assets at 6/30/2011 $55,238,825 ---PAGE BREAK--- NOTES TO BASIC FINANCIAL STATEMENTS 85 4.E COMMITMENTS AND CONTINGENCIES Contingencies As of June 30, 2012, there were no contingent claims that were pending or threatened against the City. Commitments The City has multiple commitments in progress at year end, some of which are encumbrances related to capital projects and others that result from contractual obligations with suppliers for future purchases. Capital and non-capital commitments (e.g. those that result from supplier contracts) are presented separately below: Capital Non Capital Total Commitments Commitments Commitments Governmental Funds: General Fund Streets 1,084,752 $ 74,390 $ 1,159,142 $ Parks and recreation 433,061 72,854 505,915 Administrative Services - 38,340 38,340 General Government 83,798 107,905 191,703 Engineering 20,000 - 20,000 Specific Purpose Tax Fund 14,950,623 - 14,950,623 Total Governmental Fund Commitments 16,572,234 293,489 16,865,723 Proprietary Funds: Water Fund 6,139,574 - 6,139,574 Waste Water Fund 5,934,923 - 5,934,923 Solid Waste Fund 635,773 - 635,773 Total Proprietary Fund Commitments 12,710,270 - 12,710,270 Total Commitments 29,282,504 $ 293,489 $ 29,575,993 $ ---PAGE BREAK--- ---PAGE BREAK--- Required Supplemental Information Other Than MD&A ---PAGE BREAK--- 86 INDEX TO ILLUSTRATIVE REQUIRED SUPPLEMENTARY INFORMATION PUBLIC EMPLOYEE, POLICE OFFICER, AND FIREMEN’S PENSION FUNDS Funding Progress Schedule BUDGETARY INFORMATION Budgetary Comparison Schedule - General Fund Notes to Required Supplementary Information – Budgetary Comparisons ---PAGE BREAK--- CITY OF LARAMIE, WYOMING REQUIRED SUPPLEMENTARY INFORMATION 87 PUBLIC EMPLOYEE, POLICE & FIREMEN’S PENSION FUND Unfunded Actuarial Actuarial UAAL as a Actuarial Accrued Accrued Percentage Value of Liabilities Liabilities Funded Covered of Covered Valuation Date Assets Entry Age (UAAL) Ratio Payroll Payroll January 1, 2006 4,843,861 5,091,763 247,902 95.13% 1,156,400 21.44% January 1, 2007 5,160,602 5,468,229 307,627 94.37% 1,285,096 23.94% January 1, 2008 5,654,023 6,015,985 361,962 93.98% 1,462,474 24.75% January 1, 2009 4,835,875 6,152,122 1,316,247 78.60% 1,585,728 83.01% January 1, 2010 5,742,542 6,565,677 823,135 87.46% 1,698,836 48.45% January 1, 2011 5,799,531 6,855,643 1,056,112 84.59% 1,728,444 61.10% January 1, 2012 5,761,222 7,037,187 1,275,965 81.87% 1,756,857 72.63% 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, 2006 51,900 47,153 (4,747) 110.07% 15,689 -30.26% January 1, 2007 59,057 54,667 (4,390) 108.03% 17,359 -25.29% January 1, 2008 68,227 64,475 (3,752) 105.82% 19,082 -19.66% January 1, 2009 62,332 64,589 2,257 96.51% 20,842 10.83% January 1, 2010 76,157 65,548 (10,609) 116.19% 22,111 -47.98% January 1, 2011 81,763 70,667 (11,096) 115.70% 22,517 -49.28% January 1, 2012 86,130 78,764 (7,366) 109.35% 22,678 -32.48% 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, 2006 264,963 296,633 31,670 89.32% 98,071 32.29% January 1, 2007 322,970 331,483 8,513 97.43% 108,350 7.86% January 1, 2008 364,723 380,413 15,690 95.88% 119,165 13.17% January 1, 2009 325,946 390,846 65,000 83.39% 132,702 48.98% January 1, 2010 389,358 381,030 (8,328) 102.19% 149,481 -5.57% January 1, 2011 409,567 410,160 593 99.86% 154,652 0.38% January 1, 2012 422,203 440,505 18,302 95.85% 155,482 11.77% Note: The information presented relates to the cost-sharing plan as a whole, of which the City of Laramie is one participating employer. The following is a schedule of funding progress for the Police Officer Pension Plan (in thousands): The following is a schedule of funding progress for the Public Employee Pension Plan (in thousands): Public Employee's Pension Plan Paid Firemen's Pension Plan B The following is a schedule of funding progress for the Paid Firemen's Pension Plan (in thousands): ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING REQUIRED SUPPLEMENTARY INFORMATION 88 BUDGETARY COMPARISON SCHEDULE GENERAL FUND Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Taxes and special assessments 3,446,250 $ 3,446,250 $ 3,639,286 $ 193,036 $ Licenses and permits 110,000 110,000 125,519 15,519 Intergovernmental 17,369,351 17,369,351 18,114,863 745,512 Charges for services 1,473,500 1,473,500 1,736,579 263,079 Fines and forfeitures 790,000 790,000 926,727 136,727 Investment income 90,000 90,000 110,553 20,553 Miscellaneous 96,200 96,200 359,703 263,503 Total Revenues 23,375,301 23,375,301 25,013,230 1,637,929 EXPENDITURES: General government Executive- City Manager 560,368 567,166 541,873 25,293 Administrative services (Finance, Utility Billing, Human Resources) 1,820,575 1,844,132 1,694,503 149,629 Judicial 320,710 322,248 295,681 26,567 Legal 297,500 297,975 294,502 3,473 Other general government 3,410,894 3,441,449 2,868,411 573,038 Public safety Police 7,282,675 7,500,281 6,978,307 521,974 Fire 5,756,678 6,048,985 5,408,450 640,535 Engineering and code administration 1,200,048 1,226,358 1,096,094 130,264 Health and welfare Animal control 500,012 502,974 489,663 13,311 Mosquito control 328,765 364,354 349,780 14,574 Highways and streets 4,440,139 4,465,871 3,031,037 1,434,834 Culture and recreation Parks 1,316,216 1,347,627 1,213,609 134,018 Recreation 684,558 718,396 684,518 33,878 Cemetery 587,616 619,003 306,457 312,546 Total Expenditures 28,506,754 29,266,819 25,252,885 4,013,934 Excess (deficiency) of revenues over (under) expenditures (5,131,453) (5,891,518) (239,655) 5,651,863 OTHER FINANCING SOURCES (USES): Operating transfers (out) (898,000) (898,000) (898,000) - Operating transfers in 889,073 889,073 889,073 - Total Other Financing Sources (Uses) (8,927) (8,927) (8,927) - Budgeted Amounts (Continued) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING REQUIRED SUPPLEMENTARY INFORMATION 89 BUDGETARY COMPARISON SCHEDULE GENERAL FUND (Continued) Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) Excess (deficiency) of revenues over expenditures and other financing sources (uses) (5,140,380) (5,900,445) (248,582) 5,651,863 Fund balance- Beginning 17,718,529 17,718,529 17,718,529 - Fund balance- Ending 12,578,149 $ 11,818,084 $ 17,469,947 $ 5,651,863 $ Explanation of differences between budgetary revenue and expenditures and GAAP revenue and expenditures. Revenue: Actual total revenue budgetary basis 25,013,230 $ Differences- Budget to GAAP Gains and losses on capital asset disposals 27,257 Change in accrued interest receivable (13,811) Unrealized gains and losses on investments 25,796 Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance- governmental funds 25,052,472 $ Expenditures: Actual total expenditures budgetary basis 25,252,885 $ Differences- Budget to GAAP Vacation accruals 10,888 Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance- governmental funds 25,263,773 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 90 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY COMPARISONS June 30, 2012 A. Budgetary Basis Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except the capital project funds, which are approved on a “life of the project basis,” and the permanent fund, which is not budgeted. A biennium budget was prepared for FY11 and FY12 for the General Fund and the Recreation Center special revenue fund, and annual budgets were adopted for all other funds. Since all accounting principles applied for purposes of developing data on a budgetary basis differ significantly from those used to present financial statements in conformity with generally accepted accounting principles, a reconciliation of the resultant timing differences has been provided on page 89. 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, 2012, there were no instances of excess of expenditures over appropriations. ---PAGE BREAK--- Combining Financial Statements ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 91 COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS June 30, 2012 Economic Recreation Emergency Development Center 911 fund ASSETS Cash 193,627 $ 299,061 $ 770,464 $ Investments 24,980 - 309,786 Prepaid Items - 1,108 - Receivables: Notes 347,951 - - Accrued interest - 1,461 308 Operating - 30,534 16,329 Restricted assets: Investments - 2,625,021 - Total Assets 566,558 $ 2,957,185 $ 1,096,887 $ LIABILITIES Accounts payable - $ 67,431 $ - $ Unearned revenue 369,451 161,345 - Accrued vacation and compensatory time - 5,858 - Total Liabilities 369,451 234,634 - FUND BALANCES Nonspendable 197,107 2,589,536 - Restricted - - 175,172 Committed - 13,043 - Assigned - 119,972 921,715 Total Fund Balances 197,107 2,722,551 1,096,887 Total Liabilities and Fund Balances 566,558 $ 2,957,185 $ 1,096,887 $ Special Revenue Funds ---PAGE BREAK--- 92 Total Non-Major Parks and West Governmental Recreation Laramie Funds 289,628 $ - $ 1,552,780 $ - 40 334,806 - - 1,108 - - 347,951 - - 1,769 - - 46,863 - - 2,625,021 289,628 $ 40 $ 4,910,298 $ 35,113 $ 40 $ 102,584 $ 46,513 - 577,309 - - 5,858 81,626 40 685,751 - - 2,786,643 208,002 - 383,174 - - 13,043 - - 1,041,687 208,002 - 4,224,547 289,628 $ 40 $ 4,910,298 $ Capital Project Funds ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 93 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – OTHER GOVERNMENTAL FUNDS For the Year Ended June 30, 2012 Economic Recreation Emergency Development Center 911 fund REVENUES: Taxes and special assessments - $ - $ - $ Intergovernmental - 218,789 284,036 Charges for services - 1,157,572 - Investment income 5,130 13,002 11,962 Miscellaneous 75,459 - - Total Revenues 80,589 1,389,363 295,998 EXPENDITURES: Current operating: Public safety - - 111,525 Culture and recreation - 1,564,348 - Capital outlay - 35,116 - Debt service: Principal retirement - - 160,495 Interest - - 14,676 Total Expenditures - 1,599,464 286,696 Excess (deficiency) of revenues over (under) expenditures 80,589 (210,101) 9,302 OTHER FINANCING SOURCES AND (USES): Transfers in - - - Transfers (out) - - - Total Other Financing Sources and (Uses) - - - Net Change in Fund Balance 80,589 (210,101) 9,302 Fund Balances - Beginning 116,518 2,932,652 1,087,585 Fund Balances - Ending 197,107 $ 2,722,551 $ 1,096,887 $ Special Revenue Funds ---PAGE BREAK--- 94 Total Parks and Non-Major Recreation West Governmental Construction Laramie Funds 170,719 $ - $ 170,719 $ - - 502,825 - - 1,157,572 506 154 30,754 800 - 76,259 172,025 154 1,938,129 - - 111,525 42,144 - 1,606,492 37,020 - 72,136 - - 160,495 - - 14,676 79,164 - 1,965,324 92,861 154 (27,195) 60,000 - 60,000 - (107,672) (107,672) 60,000 (107,672) (47,672) 152,861 (107,518) (74,867) 55,141 107,518 4,299,414 208,002 $ - $ 4,224,547 $ Capital Projects Fund ---PAGE BREAK--- ---PAGE BREAK--- Supplemental Information ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 95 BUDGETARY COMPARISON SCHEDULE SPECIFIC PURPOSE TAX FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 2,720,000 $ 2,720,000 $ 8,298,306 $ 5,578,306 $ Investment income 1,500 1,500 48,414 46,914 Total Revenues 2,721,500 2,721,500 8,346,720 5,625,220 EXPENDITURES: Capital outlay 22,540,750 22,540,750 11,511,721 11,029,029 Debt service Principal 1,500,000 4,901,964 4,901,964 - Interest 529,875 599,186 599,186 - Total Expenditures 24,570,625 28,041,900 17,012,871 11,029,029 Excess (deficiency) of revenues over (under) expenditures (21,849,125) (25,320,400) (8,666,151) 16,654,249 Fund balance- Beginning (10,208,263) (10,208,263) 30,269,482 - Fund balance- Ending (32,057,388) $ (35,528,663) $ 21,603,331 $ 16,654,249 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 96 BUDGETARY COMPARISON SCHEDULE WYOMING TERRITORIAL PRISON DEBT SERVICE FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income - $ - $ 264,100 $ 264,100 $ Total Revenues - - 264,100 264,100 EXPENDITURES: General government - - - - Total Expenditures - - - - Excess (Deficiency) of revenues over (under) expenditures - - 264,100 264,100 Fund balance- Beginning 9,646,500 9,646,500 9,646,500 - Fund balance- Ending 9,646,500 $ 9,646,500 $ 9,910,600 $ 264,100 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 97 BUDGETARY COMPARISON SCHEDULE CAPITAL CONSTRUCTION FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 7,223,680 $ 7,223,680 $ 2,590,770 $ (4,632,910) $ Investment income 15,000 15,000 12,116 (2,884) Miscellaneous 401,247 401,247 129,412 (271,835) Total Revenues 7,639,927 7,639,927 2,732,298 (4,907,629) EXPENDITURES: Capital outlay 13,857,953 13,907,953 4,720,983 9,186,970 Total Expenditures 13,857,953 13,907,953 4,720,983 9,186,970 Excess (deficiency) of revenues over (under) expenditures (6,218,026) (6,268,026) (1,988,685) 4,279,341 OTHER FINANCING SOURCES (USES): Issuance of debt 1,249,870 1,249,870 1,178,936 (70,934) Transfers in 807,134 807,134 907,672 100,538 Transfers (out) - - - - Total Other Financing Sources (Uses) 2,057,004 2,057,004 2,086,608 29,604 Excess (deficiency) of revenues over expenditures and other financing sources (uses) (4,161,022) (4,211,022) 97,923 4,308,945 Fund balance- Beginning 3,980,829 3,980,829 3,980,829 - Fund balance- Ending (180,193) $ (230,193) $ 4,078,752 $ 4,308,945 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 98 BUDGETARY COMPARISON SCHEDULE ECONOMIC DEVELOPMENT FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income 6,065 $ 6,065 $ 5,130 $ (935) $ Miscellaneous income 96,500 96,500 75,459 (21,041) Total Revenues 102,565 102,565 80,589 (21,976) EXPENDITURES: General government - - - - Total Expenditures - - - - Excess (deficiency) of revenues over (under) expenditures 102,565 102,565 80,589 (21,976) Fund balance- Beginning 117,148 117,148 117,148 - Fund balance- Ending 219,713 $ 219,713 $ 197,737 $ (21,976) $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 99 BUDGETARY COMPARISON SCHEDULE RECREATION CENTER FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 228,000 $ 228,000 $ 218,789 $ (9,211) $ Investment income 18,000 18,000 13,002 (4,998) Charges for services 947,500 947,500 1,157,072 209,572 Miscellaneous 500 500 500 - Total Revenues 1,194,000 1,194,000 1,389,363 195,363 EXPENDITURES: Culture and recreation 1,528,101 1,614,497 1,538,863 75,634 Capital outlay 49,500 49,500 61,843 (12,343) Total Expenditures 1,577,601 1,663,997 1,600,706 63,291 Excess (deficiency) of revenues over (under) expenditures (383,601) (469,997) (211,343) 258,654 OTHER FINANCING SOURCES (USES): Transfers in - - - - Total Other Financing Sources (Uses) - - - - Excess (deficiency) of revenues over expenditures and other financing sources (uses) (383,601) (469,997) (211,343) 258,654 Fund balance- Beginning 2,938,586 2,938,586 2,938,586 - Fund balance- Ending 2,554,985 $ 2,468,589 $ 2,727,243 $ 258,654 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 100 BUDGETARY COMPARISON SCHEDULE EMERGENCY 911 FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Intergovernmental 300,000 $ 300,000 $ 284,036 $ (15,964) $ Investment income 10,000 10,000 11,962 1,962 Total Revenues 310,000 310,000 295,998 (14,002) EXPENDITURES: Public safety 168,726 193,773 111,525 82,248 Debt service: Principal retirement 160,495 160,495 160,495 - Interest 14,700 14,700 14,676 24 Total Expenditures 343,921 368,968 286,696 82,272 Excess (deficiency) of revenues over (under) expenditures (33,921) (58,968) 9,302 68,270 Fund balance- Beginning 1,087,585 1,087,585 1,087,585 - Fund balance- Ending 1,053,664 $ 1,028,617 $ 1,096,887 $ 68,270 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 101 BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATION CONSTRUCTION FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Taxes and special assessments 151,021 $ 151,021 $ 170,719 $ 19,698 $ Investment income - - 506 506 Miscellaneous - - 800 800 Total Revenues 151,021 151,021 172,025 21,004 EXPENDITURES: Culture and recreation 43,758 43,758 42,144 1,614 Capital outlay 204,492 204,492 37,020 167,472 Total Expenditures 248,250 248,250 79,164 169,086 OTHER FINANCING SOURCES (USES): Operating transfers in 60,000 60,000 60,000 - Total Other Financine Sources (Uses) 60,000 60,000 60,000 - Excess (deficiency) of revenues over (under) expenditures (37,229) (37,229) 152,861 190,090 Fund balance- Beginning 55,141 55,141 55,141 - Fund balance- Ending 17,912 $ 17,912 $ 208,002 $ 190,090 $ Budgeted Amounts ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 102 BUDGETARY COMPARISON SCHEDULE WEST LARAMIE CAPITAL PROJECTS FUND For the Year Ended June 30, 2012 Actual Variance with Amounts Final Budget (Budgetary Positive Original Final Basis) (Negative) REVENUES: Investment income 500 $ 500 $ 154 $ (346) $ Total Revenues 500 500 154 (346) Excess (deficiency) of revenues over (under) expenditures 500 500 154 (346) OTHER FINANCING SOURCES (USES): Transfers (out) (108,420) (108,420) (107,672) 748 Total Other Financing Sources (Uses) (108,420) (108,420) (107,672) 748 Excess (deficiency) of revenues over expenditures and other financing sources (uses) (107,920) (107,920) (107,518) 402 Fund balance- Beginning 107,518 107,518 107,518 - Fund balance- Ending (402) $ (402) $ - $ 402 $ Budgeted Amounts ---PAGE BREAK--- STATISTICAL SECTION ---PAGE BREAK--- 103 STATISTICAL SECTION This part of the City of Laramie’s comprehensive annual financial report presents detailed information as a context for understanding what information in the financial statements, note disclosures, and required supplemental information says about the government’s overall financial health. Contents: Financial Trends: These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity: These schedules contain information to help the reader assess the government’s most significant local revenue sources and assessment valuations. Debt Capacity: These schedules present information to enable the reader to assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information: These schedules offer demographic and economic indicators to enable the reader to understand the environment within which the government’s financial activities take place and to help make comparisons over time and with other governments. Operating Information: These schedules contain information about the City’s operations and resources to enable the reader to understand how the City’s financial information relates to the services the City provides and the activities it performs. ---PAGE BREAK--- ---PAGE BREAK--- FINANCIAL TRENDS INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 104 NET ASSETS BY COMPONENT Last Ten Fiscal Years 2003 2004 2005 2006 Governmental activities Invested in capital assets, net of related debt 5,472,228 $ 18,074,103 $ 27,896,068 $ 38,884,805 $ Restricted 7,087,701 15,118,830 20,624,620 16,393,849 Unrestricted 29,951,832 15,956,310 10,676,405 12,941,985 Total governmental activities net assets 42,511,761 $ 49,149,243 $ 59,197,093 $ 68,220,639 $ Business-type activities Invested in capital assets, net of related debt 32,813,464 $ 32,163,926 $ 32,248,576 $ 33,540,229 $ Restricted - - - - Unrestricted 5,532,219 6,347,300 8,812,170 10,319,534 Total business-type activities 38,345,683 $ 38,511,226 $ 41,060,746 $ 43,859,763 $ Primary Government Invested in capital assets, net of related debt 38,285,692 $ 50,238,029 $ 60,144,644 $ 72,425,034 $ Restricted 7,087,701 15,118,830 20,624,620 16,393,849 Unrestricted 35,484,051 22,303,610 19,488,575 23,261,519 Total primary government 80,857,444 $ 87,660,469 $ 100,257,839 $ 112,080,402 $ ---PAGE BREAK--- 105 2007 2008 2009 2010 2011 2012 41,790,914 $ 33,151,731 $ 43,391,849 $ 50,125,029 $ 32,997,484 $ 43,607,791 $ 12,123,210 26,639,695 27,050,432 26,075,342 47,871,169 40,142,898 17,141,553 21,297,756 20,516,509 21,727,591 21,377,399 21,209,863 71,055,677 $ 81,089,182 $ 90,958,790 $ 97,927,962 $ 102,246,052 $ 104,960,552 $ 44,717,590 $ 48,455,389 $ 52,083,366 $ 57,522,786 $ 60,172,117 $ 63,574,084 $ - - 317,287 779,744 779,744 3,738,630 13,636,224 17,791,445 15,792,004 17,585,909 22,379,158 24,148,432 58,353,814 $ 66,246,834 $ 68,192,657 $ 75,888,439 $ 83,331,019 $ 91,461,146 $ 86,508,504 $ 81,607,120 $ 95,475,215 $ 107,647,815 $ 93,169,601 $ 107,181,875 $ 12,123,210 26,639,695 27,367,719 26,855,086 48,650,913 43,881,528 30,777,777 39,089,201 36,308,513 39,313,500 43,756,557 45,358,295 129,409,491 $ 147,336,016 $ 159,151,447 $ 173,816,401 $ 185,577,071 $ 196,421,698 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 106 CHANGES IN NET ASSETS Last Ten 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 $ ---PAGE BREAK--- 107 2007 2008 2009 2010 2011 2012 449,172 $ 349,741 $ 451,267 $ 443,020 $ 474,161 $ 540,309 $ 1,602,031 1,614,403 1,706,795 1,683,960 1,656,587 1,658,157 406,871 305,086 318,626 302,052 297,656 295,681 235,608 247,994 284,098 285,520 292,007 295,158 5,063,200 5,638,682 1,393,602 6,801,990 5,462,306 9,841,199 6,248,176 6,686,404 7,165,048 6,885,221 6,438,464 6,873,667 4,231,843 4,477,800 4,901,561 5,005,985 4,969,733 5,408,803 891,698 1,125,564 1,020,006 1,042,825 1,013,440 1,092,003 3,360,767 4,758,799 5,561,309 3,878,835 3,988,560 4,541,738 340,783 369,047 377,798 378,571 382,283 394,505 256,408 267,558 284,303 287,767 254,118 371,254 926,471 1,565,351 1,362,942 1,003,754 1,138,147 1,253,047 2,363,886 2,475,019 2,737,026 2,627,080 2,539,949 2,690,250 187,409 231,371 272,797 278,295 314,339 283,812 482,963 532,592 388,593 330,786 561,621 543,731 - - - - - - 27,047,286 30,645,411 28,225,771 31,235,661 29,783,371 36,083,314 4,267,022 5,133,752 5,392,790 5,135,172 5,489,684 5,593,830 2,417,312 2,419,977 3,349,373 2,733,250 2,586,630 3,093,020 2,159,998 1,802,237 2,307,135 1,835,066 2,405,080 2,085,724 8,844,332 9,355,966 11,049,298 9,703,488 10,481,394 10,772,574 35,891,618 $ 40,001,377 $ 39,275,069 $ 40,939,149 $ 40,264,765 $ 46,855,888 $ 1,245,216 $ 973,372 $ 1,211,293 $ 1,244,280 $ 1,157,125 $ 1,195,029 $ 987,114 987,756 1,288,042 1,046,826 1,071,644 1,061,075 793,637 1,270,589 937,365 690,400 748,689 732,249 1,018,092 1,257,093 1,332,157 1,345,059 1,432,498 1,470,399 683,902 477,259 575,108 526,555 565,138 731,272 1,120,026 1,247,624 1,234,991 1,278,612 1,220,772 1,332,452 2,428,705 2,199,234 2,590,527 3,803,835 3,139,098 2,635,063 8,276,692 8,412,927 9,169,483 9,935,567 9,334,964 9,157,539 5,866,751 6,428,443 5,985,899 6,166,621 7,558,798 8,882,688 4,284,394 4,183,500 3,797,171 4,001,808 4,769,968 5,246,558 1,924,591 2,075,699 2,213,056 2,218,972 2,213,178 2,698,185 679,048 3,874,851 1,562,303 5,466,197 4,149,406 381,921 12,754,784 16,562,493 13,558,429 17,853,598 18,691,350 17,209,352 21,031,476 $ 24,975,420 $ 22,727,912 $ 27,789,165 $ 28,026,314 $ 26,366,891 $ (Continued) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 108 CHANGES IN NET ASSETS Last Ten 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 $ ---PAGE BREAK--- 109 2007 2008 2009 2010 2011 2012 (18,770,594) $ (22,232,484) $ (19,056,288) $ (21,300,094) $ (20,448,407) $ (26,925,775) $ 3,910,452 7,206,527 2,509,131 8,150,110 8,209,956 6,436,778 (14,860,142) $ (15,025,957) $ (16,547,157) $ (13,149,984) $ (12,238,451) $ (20,488,997) $ 1,648,015 $ 2,036,893 $ 2,091,672 $ 2,124,989 $ 2,220,558 $ 2,301,308 $ 14,927,076 14,016,540 13,273,325 12,516,164 10,498,815 17,406,537 632,511 613,859 523,083 553,360 568,385 581,749 5,870,731 7,952,882 7,514,647 7,267,137 5,641,783 6,442,759 1,291,776 1,311,916 1,395,604 1,437,991 1,462,641 1,528,697 2,074,789 2,184,370 1,335,830 1,173,415 604,881 657,893 3,675,489 2,768,552 2,503,302 2,622,494 2,878,225 3,476,093 (9,966,996) (82,566) 351,625 573,716 889,073 (2,754,761) 20,153,391 30,802,446 28,989,088 28,269,266 24,764,361 29,640,275 769,147 603,926 (211,682) 119,385 121,694 356,237 9,966,996 82,566 (351,625) (573,716) (889,073) 2,754,761 10,736,143 686,492 (563,307) (454,331) (767,379) 3,110,998 30,889,534 $ 31,488,938 $ 28,425,781 $ 27,814,935 $ 23,996,982 $ 32,751,273 $ 1,382,797 $ 8,569,962 $ 9,932,800 $ 6,969,172 $ 4,315,954 $ 2,714,500 $ 14,646,595 7,893,019 1,945,824 7,695,779 7,442,577 9,547,776 16,029,392 $ 16,462,981 $ 11,878,624 $ 14,664,951 $ 11,758,531 $ 12,262,276 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 110 FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years 2003 2004 2005 2006 General fund Reserved - $ - $ 2,000,000 $ - $ Unreserved 7,185,959 7,924,319 9,040,699 11,107,879 General fund Nonspendable Restricted Committed Assigned Unassigned Total general fund 7,185,959 $ 7,924,319 $ 11,040,699 $ 11,107,879 $ All other governmental funds Unreserved 662,750 $ 696,883 $ 728,133 $ 1,439,905 $ Reserved Special revenue funds - 2,000,000 - 2,002,100 Capital project funds 22,641,524 13,820,590 11,775,620 7,888,749 Debt service funds 6,268,100 5,967,300 6,849,000 6,503,000 All other governmental funds Nonspendable Restricted Committed Assigned Unassigned Total other governmental funds 29,572,374 $ 22,484,773 $ 19,352,753 $ 17,833,754 $ Notes: Amounts include the General Fund, Special Revenue Funds and Long-Term Debt Fund. 2011 and 2012 figures are reported in accordance with GASB 54. ---PAGE BREAK--- 111 2007 2008 2009 2010 2011 2012 - $ - $ 273,344 $ 216,861 $ 15,374,284 17,320,437 16,722,338 17,532,149 - $ 23,685 $ 1,566,366 259,023 762,344 1,739,932 8,738,752 7,271,857 7,081,964 8,634,701 15,374,284 $ 17,320,437 $ 16,995,682 $ 17,749,010 $ 18,149,426 $ 17,929,198 $ 1,671,269 $ 2,144,434 $ 1,354,294 $ 1,598,859 $ 2,002,100 2,217,003 11,985,111 2,285,941 12,115,364 16,506,692 6,237,277 8,104,774 6,934,400 7,916,000 8,554,700 15,467,766 2,351,692 $ 2,786,643 $ 41,675,338 34,569,455 2,624,604 1,439,343 1,564,489 1,041,687 - - 22,723,133 $ 28,784,129 $ 28,131,382 $ 27,457,340 $ 48,216,123 $ 39,837,128 $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 112 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2003 2004 2005 2006 Revenues Taxes and special assessments 2,680,180 $ 3,281,865 $ 2,818,761 $ 9,853,869 $ Licenses and permits 95,220 99,187 99,791 102,389 Intergovernmental 17,042,650 16,895,276 19,464,215 17,885,383 Charges for services 1,279,033 1,252,027 2,188,326 1,541,310 Fines and forfeitures 626,390 665,178 791,903 769,563 Investment income 1,967,901 (55,854) 1,345,084 1,031,573 Miscellaneous 354,315 1,519,264 2,275,938 1,220,635 Total revenues 24,045,689 23,656,943 28,984,018 32,404,722 Expenditures General government 3,221,142 3,222,399 3,422,278 14,683,043 Public safety 8,212,728 8,225,138 9,107,839 10,184,880 Health and welfare 413,595 434,485 520,424 523,565 Highways and streets 1,117,240 981,869 1,156,094 1,741,642 Culture and recreation 1,547,779 1,466,266 2,589,132 3,011,694 Capital outlay 3,741,222 12,702,924 9,590,549 - Debt service funds Interest 1,722,298 2,009,188 2,107,776 1,973,994 Principal 378,598 726,497 646,525 599,651 Total expenditures 20,354,602 29,768,766 29,140,617 32,718,469 Excess of revenues over (under) expenditures 3,691,087 (6,111,823) (156,599) (313,747) Other financing sources (uses) Proceeds from borrowing 20,162,133 - - - Transfers to component unit Transfers in 303,690 4,130,760 2,254,474 1,590,939 Transfers (out) - (4,368,179) (2,246,884) (1,242,849) Total other financing sources (uses) 20,465,823 (237,419) 7,590 348,090 Net change in fund balance 24,156,910 $ (6,349,242) $ (149,009) $ 34,343 $ Debt service as a percentage of noncapital expenditures 12.65% 16.03% 14.09% 11.69% *For years after 2005, the capital outlay is included in the respective department. ---PAGE BREAK--- 113 2007 2008 2009 2010 2011 2012 8,024,372 $ 7,055,700 $ 7,141,166 $ 6,583,085 $ 5,454,187 $ 12,108,311 $ 104,249 126,360 112,886 113,372 123,415 125,519 21,808,588 23,284,671 22,895,468 23,506,467 20,359,491 21,201,903 1,653,256 1,986,657 2,903,739 2,600,337 2,740,288 2,901,790 850,506 621,184 839,015 909,716 809,983 926,727 2,109,599 2,120,216 1,192,450 1,058,041 523,217 476,838 1,029,642 1,434,977 197,070 282,435 753,825 592,631 35,580,212 36,629,765 35,281,794 35,053,453 30,764,406 38,333,719 8,863,131 8,184,686 10,487,975 5,763,060 5,633,974 5,964,545 12,077,557 11,914,975 13,624,951 12,619,988 11,951,238 13,064,758 1,153,186 611,290 675,244 672,768 654,926 727,893 3,563,194 3,445,097 5,388,971 3,048,415 2,107,127 3,030,649 2,017,109 3,194,597 4,198,920 3,357,077 2,999,408 3,704,838 - - - 7,063,523 6,629,482 16,304,840 2,295,794 2,350,784 2,750,447 2,714,668 3,054,295 5,533,013 557,395 550,194 438,169 365,572 741,862 632,415 30,527,366 30,251,623 37,564,677 35,605,071 33,772,312 48,962,951 5,052,846 6,378,142 (2,282,883) (551,618) (3,007,906) (10,629,232) 1,881,764 268,861 1,000,777 74,753 23,316,032 1,178,936 3,180,792 2,958,986 4,861,623 2,001,478 1,809,073 1,856,745 (2,832,702) (2,964,722) (4,509,702) (1,457,762) (958,000) (1,005,672) 2,229,854 263,125 1,352,698 618,469 24,167,105 2,030,009 7,282,700 $ 6,641,267 $ (930,185) $ 66,851 $ 21,159,199 $ (8,599,223) $ 11.53% 10.39% 12.31% 11.07% 13.99% 17.71% ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 114 GENERAL GOVERNMENT EXPENDITURE BY FUNCTION Last Ten Fiscal Years Highways Fiscal Year City Manager Legal Finance Engineering and Streets 2003 283,699 $ 158,290 $ 503,000 $ 262,283 $ 1,117,240 $ 2004 339,253 156,537 510,704 257,224 981,869 2005 303,027 170,164 536,984 349,813 1,156,094 2006 423,091 208,313 586,829 385,659 1,741,642 2007 449,172 241,512 684,987 460,403 2,286,273 2008 349,602 244,835 745,443 667,827 3,445,097 2009 449,821 284,103 801,595 574,918 3,212,981 2010 445,618 284,654 809,833 680,869 3,053,782 2011 468,929 285,933 722,096 522,674 2,971,960 2012 541,873 295,316 754,614 611,138 2,916,994 Other General Health and Fiscal Year Municipal Court Accounts Cemetery Welfare Planning 2003 166,750 $ 2,264,300 $ 182,763 $ 413,595 $ 176,059 $ 2004 178,048 3,103,582 196,554 434,485 138,469 2005 226,819 5,111,141 164,063 520,424 190,990 2006 252,871 2,398,642 142,233 523,565 351,939 2007 406,871 2,316,489 175,313 1,153,186 266,485 2008 297,660 2,323,968 219,708 611,290 420,144 2009 319,526 2,748,833 525,083 675,244 312,719 2010 301,450 2,927,526 310,159 780,132 259,539 2011 295,856 3,317,634 344,381 767,516 234,961 2012 295,063 3,628,139 307,653 839,443 277,816 Notes: Includes General, Special Revenue and Debt Service funds. Other general accounts include expenditures for Other general government, City Council, insurance, printing, professional and consulting and social services. Includes Police and Fire Departments, Emergency Management. Health and Welfare includes Animal Control and Mosquito control. Culture and Recreation includes park and recreation. ---PAGE BREAK--- 115 Culture and Recreation Public Safety 1,449,957 $ 8,218,791 $ 1,466,117 8,412,937 2,589,132 9,219,394 2,986,261 10,184,880 3,239,643 12,077,557 3,137,561 11,914,975 3,884,382 13,624,951 3,046,918 12,929,936 3,242,320 11,666,301 3,498,833 12,488,730 Debt Service Total 902,925 $ 16,099,652 $ 321,064 16,496,843 320,612 20,858,657 178,877 20,364,802 459,468 24,217,359 508,156 24,886,266 812,821 28,226,977 671,004 26,501,420 712,301 25,552,862 664,278 27,119,890 ---PAGE BREAK--- ---PAGE BREAK--- REVENUE CAPACITY INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 116 GENERAL GOVERNMENT REVENUES BY SOURCE Last Ten Fiscal Years Special Licenses and Intergovernmental Charges for Fiscal Year Taxes Assessment Permits Revenue Services 2003 2,638,932 $ 664 $ 95,220 $ 11,975,607 $ 1,274,096 $ 2004 2,671,112 4,433 99,187 12,965,286 1,252,027 2005 2,709,050 2,091 99,791 15,816,083 2,187,945 2006 2,972,126 2,674 102,389 17,656,794 1,541,310 2007 2,927,794 2,383 104,249 19,432,485 1,653,256 2008 3,220,809 3,673 126,360 21,427,709 1,986,657 2009 3,368,276 - 112,886 20,729,105 2,903,739 2010 3,502,980 - 113,372 20,049,209 2,600,337 2011 3,560,439 - 123,415 17,781,925 2,740,288 2012 3,639,286 - 125,519 18,611,133 2,901,790 Notes: Includes General, Special Revenue and Debt Service fund type. ---PAGE BREAK--- 117 Fines and Interest and Forfeits Miscellaneous Total 626,390 $ 1,646,737 $ 18,257,646 $ 665,178 582,918 18,240,141 791,903 430,286 22,037,149 769,563 2,172,789 25,217,645 850,506 2,011,510 26,982,183 621,184 2,942,664 30,329,056 839,015 1,169,031 29,122,052 909,716 1,164,342 28,339,956 809,983 986,683 26,002,733 926,727 878,067 27,082,522 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 118 TAX REVENUE BY SOURCE Last Ten Fiscal Years General Automobile Franchise Fiscal Year Total Taxes Property Taxes Taxes Taxes Sales Tax 2003 10,944,646 $ 975,123 $ 530,520 $ 1,133,936 $ 7,203,008 $ 2004 11,623,971 1,003,426 429,611 1,242,491 7,637,713 2005 11,830,507 1,141,507 423,460 1,144,083 7,598,184 2006 12,892,829 1,309,218 346,641 1,316,268 8,362,138 2007 14,271,824 1,244,938 393,463 1,291,776 8,553,231 2008 14,198,145 1,480,345 432,209 1,311,916 9,341,454 2009 13,510,787 1,563,275 409,388 1,395,605 8,717,960 2010 13,552,399 1,625,138 439,851 1,437,991 8,579,965 2011 12,789,620 1,671,868 425,930 1,462,641 7,688,215 2012 13,329,267 1,682,619 427,970 1,528,697 8,267,575 Note: Includes one percent optional sales tax. ---PAGE BREAK--- 119 Use Tax Cigarette Tax Gasoline Tax 499,348 $ 149,831 $ 452,880 $ 618,249 148,747 543,734 825,991 131,578 565,704 889,635 137,136 531,793 2,043,588 112,317 632,511 900,205 118,157 613,859 782,078 119,397 523,084 806,287 109,807 553,360 863,901 108,680 568,385 735,389 105,268 581,749 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 120 DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years Fiscal Year City of Laramie/Albany County State of Wyoming 2003 2.00% 4.00% 2004 2.00% 4.00% 2005 2.00% 4.00% 2006 2.00% 4.00% 2007 2.00% 4.00% 2008 2.00% 4.00% 2009 2.00% 4.00% 2010 2.00% 4.00% 2011 2.00% 4.00% 2012 2.00% 4.00% Note: For fiscal years 2003 through 2012, an optional specific purpose tax of 1% was imposed. The One Percent Optional General Purpose Tax and the One Percent Optional Specific Purpose Tax may be changed only with the approval of the voters in the County. Source: State of Wyoming, Department of Revenue ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 121 PRINCIPAL SALES TAX REMITTERS Current Year and Nine Years Ago Rank Remitter Type of Business 1 Wal-Mart Stores Inc. Retail 2 Pacificorp Utilities (Power) 3 University of Wyoming University 4 Verizon Wireless (VAW) LLC Communications 5 Source Gas Distribution LLC Utilities (Gas) 6 TA Operating Inc. Travel Plaza 7 Ranch and Home Supply LLC Retail 8 Laramie GM Auto Center Inc. Vehicle Sales 9 K Mart Corporation Retail 10 Safeway Stores 46 Inc. Grocery Rank Remitter Type of Business 1 Wal-Mart Stores Inc. Retail 2 Safeway Stores 46 Inc. Grocery 3 Albertson's Inc. Grocery 4 Pacificorp Financial Services Inc. Utilities (Power) 5 K Mart Corporation Retail 6 University of Wyoming University 7 Kinder Morgan Inc. Utilities (Gas) 8 Petro Stopping Center Travel Plaza 9 Qwest Corporation Communications 10 Verizon Wireless (VAW) LLC Communications Source: State of Wyoming, Department of Revenue Fiscal Year 2012 Fiscal Year 2003 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 122 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Assessed Estimated Assessed Estimated Fiscal Year Value Actual Value Value Actual Value 2003 116,503,018 $ 1,226,347,558 $ 6,628,682 $ 69,775,600 $ 2004 126,719,624 1,333,890,779 6,949,629 73,153,989 2005 134,634,400 1,417,204,211 7,699,235 81,044,579 2006 150,260,250 1,581,686,842 7,968,708 83,881,137 2007 162,723,707 1,712,881,126 8,208,466 86,404,905 2008 187,545,559 1,974,163,779 8,908,353 93,772,137 2009 196,444,119 2,035,617,794 7,256,055 75,787,278 2010 198,021,160 2,049,176,466 7,690,632 80,933,394 2011 203,440,680 2,102,123,168 6,672,549 69,909,531 2012 206,503,793 2,130,701,310 7,934,214 83,123,725 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--- 123 Ratio of Total Assessed Value Assessed Estimated to Estimated Value Actual Value Actual Value 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 1,799,286,031 9.50 196,453,912 2,067,935,916 9.50 203,700,174 2,111,405,072 9.64 205,711,792 2,130,109,860 9.66 210,113,229 2,172,032,699 9.67 214,438,007 2,213,825,035 9.69 Total ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 124 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 2003 8.00 - 8.00 35.00 13.94 2004 8.00 - 8.00 35.00 13.94 2005 8.00 - 8.00 35.00 14.00 2006 8.00 - 8.00 34.00 14.00 2007 8.00 - 8.00 33.00 14.00 2008 8.00 - 8.00 32.00 14.00 2009 8.00 - 8.00 32.00 14.00 2010 8.00 - 8.00 32.00 14.00 2011 8.00 - 8.00 32.00 14.00 2012 8.00 - 8.00 32.00 14.00 2003 923,777 $ - $ 923,777 $ 4,041,526 $ 1,609,682 $ 2004 1,013,757 - 1,013,757 4,678,424 1,863,349 2005 1,265,832 - 1,265,832 5,538,014 2,215,205 2006 1,367,457 - 1,367,457 5,811,694 2,393,050 2007 1,500,364 - 1,500,364 6,189,003 2,625,638 2008 1,626,656 - 1,626,656 6,506,624 2,846,648 2009 1,629,601 - 1,629,601 6,518,406 2,851,802 2010 1,645,741 - 1,645,741 6,582,963 2,880,046 2011 1,680,906 - 1,680,906 6,723,623 2,941,585 2012 1,715,504 - 1,715,504 6,862,016 3,002,132 Notes: The Wyoming Constitution limits the mil levy for the General Fund to eight mils, not including debt service requirements. There is no limit on the mil levy for current debt service requirements. First half taxes are due November 10th and second half taxes are due May 10th after which they become delinquent. No discounts are allowed on taxes and an 11% penalty is imposed on delinquent taxes. Property upon which taxes are delinquent is advertised and sold in the following year. Property is assessed by the County Assessor and taxes are collected by the County Treasurer. 100% of taxes levied by the City which are collected are remitted. A fee of ½% of taxes collected is paid annually by the City to the County for tax collection services. TAX LEVIES ---PAGE BREAK--- 125 Downtown Hospital Development State District District Total 12.00 3.00 - 71.94 12.00 3.00 - 71.94 12.00 3.00 - 72.00 12.00 3.00 - 71.00 12.00 3.00 - 70.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 12.00 3.00 - 69.00 1,385,666 $ 346,416 $ - $ 8,307,067 $ 1,604,031 401,008 - 9,560,569 1,898,747 474,687 - 11,392,485 2,051,186 512,797 - 12,136,184 2,250,547 562,637 - 13,128,189 2,439,984 609,996 - 14,029,908 2,444,402 611,101 - 14,055,312 2,468,611 617,153 - 14,194,514 2,521,359 630,340 - 14,497,813 2,573,256 643,314 - 14,796,222 Notes: Source - Albany County Assessor Mil levy only applied to property in a specified business district. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 126 PRINCIPAL TAXPAYERS CURRENT YEAR AND NINE YEARS AGO June 30, 2012 Percentage of 2011 Total Assessed Assessed Taxpayer Type of Business Value Valuation 1 COCO (WY) Inc. School $ 1,938,849 0.90% 2 Hilton Garden Inn Hotel 1,659,555 0.77% 3 Gladstone Investment Co. Apartments 1,641,531 0.77% 4 Wal-Mart Real Estate Business Retail 1,416,728 0.66% 5 University of Wyoming, Trustees Multiple 1,113,502 0.52% 6 Campus Habitat 15, LLC Apartments 902,806 0.42% 7 Timberline Hospitalities, LLC Hotel 853,403 0.40% 8 Mountain West Farm Bureau Office 791,513 0.37% 9 Bed Company of Wyoming, Inc. Hotel 623,922 0.29% 10 Laramie Hotel Associates, LLC Hotel 461,710 0.22% 11,403,519 $ 5.32% Percentage of 2002 Total Assessed Assessed Taxpayer Type of Business Value Valuation 1 Wal Mart Stores, Inc. Retail 1,253,191 $ 1.02% 2 SUH Wyoming, LLC Apartment Buildings 953,539 0.77% 3 MJB Acquisition Corp., a Wyoming Company Technical School 920,483 0.75% 4 Michael K. Schutte Commercial Rental 684,802 0.56% 5 Gem City Properties Commercial Rental 581,992 0.47% 6 Laramie Plains Properties Real Estate Rental 384,573 0.31% 7 Beneson Capital Retail 354,931 0.29% 8 WY Plaza, LC Commercial Rental 348,365 0.28% 9 Mountain West Farm Bureau Mutual Insurance Co. Insurance Company 334,524 0.27% 10 Foster's Inc. Commercial Property 328,024 0.27% 6,144,424 $ 4.99% Source - Albany County Assessor ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 127 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Current Tax Percent of Levy Delinquent Tax Fiscal Year Total Tax Levy Collections Collected Collections 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 2009 1,626,656 1,547,648 95.1 61,179 2010 1,629,601 1,553,918 95.4 72,320 2011 1,655,372 1,602,642 96.8 68,636 2012 1,675,064 1,615,489 96.4 89,411 2009 2010 2011 2012 Levy Year Collections Collections Collections Collections 1999 & Prior 8,293 $ - $ - $ - $ 2000 41 31 - - 2001 140 72 1 - 2002 142 121 1 - 2003 83 93 (20) - 2004 358 82 9 - 2005 1,165 538 128 1,107 2006 2,657 21,149 [PHONE REDACTED] 48,300 3,288 [PHONE REDACTED] - 45,946 2,[PHONE REDACTED] - 65,162 6,128 2010 - 46,351 2011 34,686 Total 61,179 $ 71,320 $ 68,636 $ 89,411 $ Notes: Source - Albany County Treasurer Delinquent Tax Collections ---PAGE BREAK--- 128 Percent of Percent of Total Tax Outstanding Delinquent Total Tax Collections to Delinquent Taxes to Tax Collections Tax Levy Taxes Levy 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 1,608,827 98.9 84,550 5.2 1,626,238 99.8 92,876 5.7 1,671,278 101.0 73,714 4.5 1,704,900 101.8 94,261 5.6 ---PAGE BREAK--- ---PAGE BREAK--- DEBT CAPACITY INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 129 COMPUTATION OF LEGAL DEBT MARGIN – GENERAL OBLIGATION End of Fiscal Year 2011-2012 Assessed value 214,438,007 $ Debt limit 4% of assessed value 8,577,520 Total amount of debt applicable to debt limit 7,563,636 Legal debt margin 1,013,884 $ 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 2003 4,925,268 $ - $ 4,925,268 $ 0.00% 2004 5,346,770 - 5,346,770 0.00% 2005 5,693,345 - 5,693,345 0.00% 2006 6,329,158 - 6,329,158 0.00% 2007 6,837,287 - 6,837,287 0.00% 2008 7,858,156 - 7,858,156 0.00% 2009 8,148,007 - 8,148,007 0.00% 2010 8,228,472 - 8,228,472 0.00% 2011 8,404,529 8,110,000 294,529 96.50% 2012 8,577,520 7,563,636 1,013,884 88.18% ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 130 COMPUTATION OF LEGAL DEBT MARGIN - SEWER End of Fiscal Year 2011-2012 Assessed value 214,438,007 $ Debt limit - Double 4% of assessed value 17,155,041 Total amount of debt applicable to debt limit 5,534,368 Legal debt margin 11,620,673 $ 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 2003 9,850,536 $ - $ 9,850,536 $ 0.00% 2004 10,693,540 - 10,693,540 0.00% 2005 11,386,690 - 11,386,690 0.00% 2006 12,658,316 - 12,658,316 0.00% 2007 13,674,574 - 13,674,574 0.00% 2008 15,716,312 - 15,716,312 0.00% 2009 16,296,014 - 16,296,014 0.00% 2010 16,456,944 - 16,456,944 0.00% 2011 16,809,058 5,933,500 10,875,558 35.30% 2012 17,155,041 5,534,368 11,620,673 32.26% ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 131 COMPUTATION OF DIRECT AND OVERLAPPING DEBT End of Fiscal Year 2003 2004 2005 2006 Overlapping Net Debt Outstanding Albany County School District One 4,910,000 $ 3,755,000 $ 2,840,000 $ 1,910,000 $ Percentage applicable to City 59.44% 59.44% 59.44% 59.44% City's Estimated Share of Overlapping Debt 2,918,504 2,231,972 1,688,096 1,135,304 City Direct Debt - - - - Total Direct and Overlapping Debt 2,918,504 $ 2,231,972 $ 1,688,096 $ 1,135,304 $ Note: Source - Albany County Treasurer ---PAGE BREAK--- 132 2007 2008 2009 2010 2011 2012 965,000 $ - $ - $ - $ - $ - $ 59.44% 59.44% 59.44% 59.44% 59.44% 59.44% 573,596 - - - - - - - - - - - 573,596 $ - $ - $ - $ - $ - $ ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 133 RATIO OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years General Total Obligation Notes Capital Governmental Fiscal Year Bonds Payable Leases Activities 2003 - $ 10,000,000 $ 19,785,153 $ 29,785,153 $ 2004 - 10,248,382 17,527,584 27,775,966 2005 - 10,223,853 15,685,862 25,909,715 2006 - 10,197,698 13,758,675 23,956,373 2007 - 10,169,810 13,379,589 23,549,399 2008 - 10,140,074 11,327,402 21,467,476 2009 - 10,108,367 9,609,312 19,717,679 2010 - 10,074,558 6,939,673 17,014,231 2011 22,300,000 10,038,509 4,476,666 36,815,175 2012 20,800,000 10,000,000 1,660,196 32,460,196 Governmental Activities ---PAGE BREAK--- 134 Total Total Percentage Revenue Notes Capital Business-Type Primary of Personal Bonds Payable Leases Activities Government Income Per Capita 4,040,000 $ 17,181,546 $ 3,376,777 $ 24,598,323 $ 54,383,476 $ 6.46% 1,999.10 3,815,000 15,398,424 2,923,501 22,136,925 49,912,891 5.65% 1,851.64 3,590,000 14,798,803 2,453,722 20,842,525 46,752,240 5.00% 1,768.17 3,360,000 13,974,888 2,016,008 19,350,896 43,307,269 4.51% 1,637.88 3,110,000 13,222,972 1,536,844 17,869,816 41,419,215 4.18% 1,566.48 2,850,000 12,868,715 1,038,598 16,757,313 38,224,789 3.62% 1,405.12 4,625,000 10,499,848 818,682 15,943,530 35,661,209 3.16% 1,310.88 4,235,000 11,017,669 217,355 15,470,024 32,484,255 2.73% 1,194.10 3,850,000 10,492,314 133,082 14,475,396 51,290,572 4.04% 1,885.41 3,450,000 9,588,526 421,904 13,460,429 45,920,626 3.61% 1,490.16 Business-Type Activities ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 135 RATIO OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years General Bonded Debt Fiscal Year Outstanding Per Capita 2003 - $ - $ 2004 - - 2005 - - 2006 - - 2007 - - 2008 - - 2009 - - 2010 - - 2011 14,043,[PHONE REDACTED] 12,543,500 407 1) Includes General and Debt Service Funds (GO debt includes Street, Solid Waste and Sewer principal only). 2) Taxable property includes real and personal. 3) Census population of City of Laramie 2010- 30,816. ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 136 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 2003 - $ - $ - $ 16,061,582 $ 0.00% 2004 - - - 16,237,272 0.00% 2005 - - - 21,791,731 0.00% 2006 - - - 20,364,802 0.00% 2007 - - - 24,217,359 0.00% 2008 - - - 24,886,266 0.00% 2009 - - - 28,226,977 0.00% 2010 - - - 27,356,987 0.00% 2011 157,438 28,794 186,232 25,552,862 0.73% 2012 1,012,752 356,178 1,368,930 27,119,890 5.05% Notes: Includes General and Debt Service Funds (GO debt includes Street, Solid Waste and Sewer). Includes General, Special Revenue and Debt Service Funds. Tax Supported Debt. ---PAGE BREAK--- ---PAGE BREAK--- DEMOGRAPHIC AND ECONOMIC INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 137 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 2003 27,204(7) $ 36,639(2) 841,571,000 $ 26.7 1.8 3,659 2004 26,956(6) 27,998(2) 882,802,000 26.7 1.7 3,639 2005 26,441(6) 29,810(2) 935,936,000 28.6 3.0 3,559 2006 26,441(6) 30,524(2) 961,022,000 30.3 2.9 3,485 2007 26,441(6) 30,810(2) 991,318,000 26.8 3.0 3,491 2008 27,204(6) 28,077(2) 1,055,684,000 26.7 2.4 3,507 2009 27,204(6) 24,339(3) 1,129,523,000 25.3 2.5 3,544 2010 28,138(3) 24,339(3) 1,191,322,000 25.3 4.1 3,579 2011 30,816(3) 22,238(3) 1,270,947,000 25.4 5.1 3,587 2012 31,312(3) 22,846(3) 1,270,490,000 25.7 5.3 3,673 Sources: Wyoming Department of Education. 2003 Census. Bureau of Labor Statistics, Albany County figures. (10) Wikipedia. (11) Albany County School District Population Wyoming Department of Administration and Fiscal Control, Wyoming Population & Employment Forecast Report. Wyoming Employment Security Commission, fourth quarter average wage for covered employment, Albany County figures. U.S. Bureau of Census. Population of Laramie includes University of Wyoming students. Wyoming Employment Security Commission, Research and Analysis, Albany County figures. State of Wyoming Department of Administration and Information Division of Economic Analysis. U.S. Commerce Department - Bureau of Economic Analysis, 2009 Albany County figures. ---PAGE BREAK--- 138 Education Number of Centers Teachers Area (10) 15 331 11 Sq. Miles 15 330 11 Sq. Miles 15 332 17.7 Sq. Miles 18 331 17.7 Sq. Miles 18 316 17.7 Sq. Miles 19 317 17.7 Sq. Miles 19 322 17.7 Sq. Miles 19 318 17.7 Sq. Miles 19 323 17.7 Sq. Miles(3) 19 324 (11) 17.7 Sq. Miles(3) ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 139 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 2,835 18.75% 2 Albany County School District #1 Education 576 3.81% 3 Albany County Hospital District Healthcare 440 2.91% 4 Wal-Mart Stores, Inc. Retail 407 2.69% 5 TA Operating LLC Filling Stations - Gas 300 1.98% 6 City of Laramie Municipal Government 262 1.73% 7 MJB Acquisition Corp, Inc. (WyoTech) Education 237 1.57% 8 ARK Regional Services Individual/Family Services 220 1.46% 9 Trihydro Environmental Consulting 157 1.04% 10 Albany County Local Government 140 0.93% Total 5,574 36.87% Percentage of Total City Rank Employer Type of Business Employees Employment 1 University of Wyoming University 4,975 28.09% 2 Albany County School District #1 Education 901 5.09% 3 Ivinson Memorial Hospital Healthcare 470 2.65% 4 Albany County Local Government 366 2.07% 5 Wyoming Technical Institute Education 355 2.00% 6 City of Laramie Municipal Government 277 1.56% 7 Wal-Mart Stores, Inc. Retail 275 1.55% 8 Foster's, Inc. Hotel 205 1.16% 9 ARK Regional Services Individual/Family Services 159 0.90% 10 Rocky Mountain Forest Products Manufacturing 132 0.75% Total 8,115 45.82% Source Laramie Economic Development Corporation / Per Wyoming Market Research. The following employers were contacted directly and updated accordingly: University of Wyoming, School District, Hospital, City of Laramie, Albany County. Fiscal Year 2003 Fiscal Year 2012 ---PAGE BREAK--- OPERATING INFORMATION ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 140 FULL-TIME EQUIVALENT CITY OF LARAMIE EMPLOYEES AND OTHER OPERATING STATISTICS Last Ten Fiscal Years Fiscal Total City Administrative General Year Employees Manager Services Judicial Legal Government Fire Police 2003 236.5 3.5 9.0 2.0 - 66.1 43.0 80.0 2004 239.0 3.5 8.0 3.0 - 66.1 43.0 80.0 2005 241.0 4.0 10.0 3.0 - 60.1 43.0 78.5 2006 249.5 5.0 12.5 3.0 - 64.1 42.0 78.5 2007 264.5 5.0 13.5 4.0 3.0 67.5 42.0 81.0 2008 267.3 4.7 14.0 4.0 3.5 69.8 43.0 79.8 2009 274.3 4.7 15.0 4.0 3.5 69.3 46.0 79.8 2010 279.3 4.7 15.0 4.0 3.5 72.3 48.0 78.8 2011 272.8 5.7 15.0 3.5 3.0 68.3 51.0 77.8 2012 275.8 5.7 15.0 3.5 3.0 70.3 50.0 79.8 Per City of Laramie Budget Book Budgeted Full-Time Equivalent City Government Employees by Function ---PAGE BREAK--- 141 Building Number Number Code & Highways Parks & Miles of Number of Permits of Fire of Police Engineering & Streets Recreation Streets Street Lights Issued Stations Stations 8.0 11.4 13.5 140 1,010 1,803 2 1 8.0 10.9 16.5 142 1,012 1,765 2 1 10.0 10.9 21.5 142 1,012 1,978 2 1 11.0 10.9 22.5 143 1,013 1,790 2 1 12.0 12.0 24.5 150 1,035 1,556 2 1 12.0 12.0 24.5 166 1,040 1,787 2 2 12.5 13.0 26.5 166 1,040 2,064 2 1 12.5 13.0 27.5 170 1,110 1,740 3 1 10.0 13.0 25.5 172 1,115 1,652 3 1 10.0 13.0 25.5 173 1,135 1,310 3 1 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 142 CAPITAL ASSET STATISTICS Last Ten Fiscal Years Acres of Estimated Feet of Feet of Landfill Fiscal Number of Daily Water Water Sewer Capacity Number of Number of Year Customers Production Lines Lines Used Parks Libraries 2003 7,789 7,200,000 1,017,979 748,089 2.9 15 1 2004 7,805 7,200,000 1,017,979 748,089 3.1 15 1 2005 7,815 7,200,000 1,017,979 748,089 2.8 15 1 2006 7,865 7,200,000 1,075,688 748,089 2.7 15 1 2007 8,165 4,020,607 1,154,436 860,640 2.5 15 1 2008 8,162 5,010,027 1,156,742 860,640 3.0 15 1 2009 8,600 5,500,000 1,161,600 897,600 4.8 16 1 2010 8,652 5,711,850 1,162,300 898,300 5.2 16 1 2011 8,929 5,253,000 1,165,349 900,300 3.9 16 1 2012 8,973 5,325,019 1,168,190 902,450 3.6 16 1 Municipal Water Department Per City of Laramie Public Works Department. ---PAGE BREAK--- ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 143 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years Number of Number of Fiscal Year Units Value Units Value 2003 13 12,375,751 $ 44 9,513,385 $ 2004 13 11,410,003 48 9,215,708 2005 14 10,558,698 52 9,852,369 2006 17 14,225,563 63 10,125,421 2007 18 47,176,236 89 13,304,588 2008 19 45,718,713 122 12,391,155 2009 16 45,985,059 105 13,450,080 2010 16 18,852,715 82 12,837,650 2011 6 26,601,606 122 16,167,744 2012 4 8,016,858 52 9,174,482 Notes: City of Laramie Community Development Department. www2.fdic.gov/sod - Albany County totals. Albany County Assessor estimated actual values. Commercial Construction Residential Construction ---PAGE BREAK--- 144 Bank Deposits (Thousands) Property Value 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 1,799,286,031 385,112 2,067,935,916 451,665 2,111,405,072 476,280 2,049,176,466 491,633 2,102,123,168 490,563 2,130,701,310 ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 145 INSURANCE IN FORCE End of Fiscal Year 2011-2012 Policy Number From To Casualty Insurance: Wyoming Association for Risk Management - an intergovernmental Risk Sharing Pool None 7/1/2011 6/30/2012 Property: Driver Alliant Insurance Services All risk of direct physical loss or damage 7/1/2011 6/30/2012 Earthquake 7/1/2011 6/30/2012 Flood 7/1/2011 6/30/2012 Police Professional Liability Policy: Compass Insurance Company Type of Coverage and Name of Company ---PAGE BREAK--- 146 Liability Limits Annual Premiums Scheduled exposure, general liability, automobile liability, $250,000 per claimant 165,286 $ 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 $ 81,550 $ Personal injury, bodily injury, property damage due to $250,000 each person Policy carried and paid negligent acts, errors and omissions of law enforcement $500,000 each accident for by Wyoming officers Department of Administration and Fiscal Control pursuant to W.S. 9-712-10, 1957 Details of Coverage ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 147 SALARIES AND SURETY BONDS OF PRINCIPAL OFFICIALS For Fiscal Year Ended June 30, 2012 Name and Title of Official Annual Salary Amount of Surety Bond Janine Jordan City Manager $114,158 $10,000 blanket coverage Malea Brown Administrative Services Director $107,182 $50,000 Scott A. Mullner Mayor and President $120 per meeting attended None of City Council David C. Clark City Attorney $100,100 $10,000 Tony Lopez Municipal Judge $52,270 $10,000 All other employees N/A $10,000 blanket coverage ---PAGE BREAK--- CITY OF LARAMIE, WYOMING 148 ANNUAL BUDGET PROCESS Step Date 1 Mid-December Six month budget worksheets, five year capital and equipment schedules distributed to Department Heads. 2 First week of Five year capital and equipment requests and schedules are due from Department February Heads. 3 Second week of City Manager, Assistant City Manager, and Director of Administrative Services meet February with Department Heads to review the capital requests. 4 Last week of Review five year General Fund, Major Capital, and Recreation Center Fund capital February and equipment requests and schedules with City Council. 5 First of March Operating budget worksheets and forms are due from Department Heads. 6 First of April City Manager, Assistant City Manager, and Director of Administrative Services meet with Department Heads to review the budget requests. 7 Third week of April Detailed working budget is distributed to City Council. 8 Last week of April Review of Enterprise Capital Plan with City Council. 9 First/Second week of May Budget work sessions with City Council, City Manager and Assistant City Manager. 10 First Sunday in June Publish budget summary. 11 Second Tuesday in June Conduct public hearing on proposed budget. 12 Second Tuesday in June Adoption of the final budget by City Council. 13 End of September Final budget is printed and distributed. ---PAGE BREAK---