Document Ogden_doc_3b97f73bc8

Comprehensive Annual Financial Report Year Ended June 30, 2012 ---PAGE BREAK--- ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT OF OGDEN CITY CORPORATION Year Ended June 30, 2012 Ogden, Utah Mayor Michael P. Caldwell City Council Caitlin K. Gochnour Susie Van Hooser Richard Hyer Doug Stephens Amy L. Wicks Neil K. Garner Bart E. Blair Prepared by: Department of Management Services Shawn Choate, Director Laurie Johnson, Comptroller Michael D. Goodwin, Treasurer Lisa Stout, CPA, Assistant Comptroller Camille Cook, Senior Accountant Korahle Jensen, Senior Accountant Cindi Hellewell, Accounting Technician 1 ---PAGE BREAK--- OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2012 Table of Contents Introductory Section Title Table of Letter of GFOA Certificate of Ogden City Organization Principal City Financial Section Independent Auditors’ Management's Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Statement of Net Statement of Governmental Fund Financial Statements Balance Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets………….. Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Proprietary Fund Financial Statements Statement of Net Statement of Revenues, Expenditures and Changes in Net Statement of Cash Notes to the Financial Required Supplementary Information Budgetary Comparison Schedule – General Budgetary Comparison Schedule – Ogden Redevelopment Agency (Special Revenue Fund)…………… Budgetary Comparison Schedule - Debt Notes to Required Supplementary Information Information About Infrastructure Assets Reported using the Modified Approach…………………….…. Supplementary Information - Combining Statements Governmental Funds Nonmajor Governmental Funds Combining Balance Combining Statement of Revenues, Expenditures and Changes in Fund Balance…………………. Budgetary Comparison Schedule - Capital Improvement Budgetary Comparison Schedule - Municipal Building Budgetary Comparison Schedule - Downtown Special Assessment……………………………………… Budgetary Comparison Schedule - Cemetery Perpetual Care Budgetary Comparison Schedule – Permanent Trust Gomer A. 1 2 4 10 11 12 15 17 27 28 32 35 36 38 40 44 46 50 80 82 83 84 86 92 93 94 95 96 97 98 2 ---PAGE BREAK--- OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2012 Table of Contents, Continued Proprietary Funds Nonmajor Enterprise Funds Combining Statement of Net Combining Statement of Revenues, Expenditures and Changes in Net Combining Statement of Cash Internal Service Funds Combining Statement of Net Combining Statement of Revenues, Expenditures and Changes in Net Assets……………………… Combining Statement of Cash State of Utah – Impact Statistical Section (Unaudited) Financial Net Assets by Changes in Net Changes in Fund Balances, Governmental Revenue Fund Balances, Governmental Assessed and Estimated Actual Value of Taxable Principal Taxpayers for the Calendar Year 2010, Property Tax Appropriations and Property Tax Rates, Direct and Overlapping Tax Revenues by Debt Ratios of Outstanding Debt by Ratios of General Bonded Debt Outstanding to Assessed Value and Per Computation of Direct and Overlapping Computation of Legal Debt Revenue Bond Coverage - Water Revenue Bond Coverage - Sewer Revenue Bond Coverage - Refuse Industrial Revenue Bonds Demographic and Economic Demographic and Economic Largest Operating Full-Time Authorized Employees Summary by Operating Indicators by Capital Assets Statistics by Miscellaneous Schedule of Insurance Staff per 1,000 Cost per Resident to Run City 100 101 104 107 108 109 110 114 115 116 118 121 120 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 146 147 3 ---PAGE BREAK--- C M C O D S d G c in th d c S C in re S M s fi in la re T 1 in n 8 fo M o a a a g p s m a s a a s te B F P Citizens, Honorab Members of the C City of Ogden Ogden, Utah 844 Dear Citizens, Ma We are furnis Section 10-6-150 developed by the Government-Wid capital assets (in nformation can b Responsibility he City managem designed to fairly comprehensive fr The Compreh Section includes Certificate of Ach ncludes the bas eport on the fin Statistical Section The City is req Management and single audit, inc indings and reco nternal control aws and regulati eport. THE REPORTING The City of Og 851 and is defin n Title 10 of th northern part of 82,000 residents orm of governm Mayor is elected over the administ as the legislative adopts the annua This report inclu a full range of se general governm protection, plann street maintenan maintenance, rec and general ad services, sewer ambulance and p adequate covera supported, in par elephones) and r The Tax Incre Building Authority Funds. The Cap Park Endowment ble Mayor and City Council 401 ayor and Membe hing you with th 0 of the Utah Co e Governmental e Financial Stat ncluding infrastru be found in Mana for both the acc ment. To the be y present the fina ramework of inte hensive Annual F the title page, t hievement for Ex ic financial state ancial statemen n includes select quired to underg d Budget Circula cluding the Sch ommendations, a structure and c ons are included G ENTITY AND den, Utah was i ned as a city of t e Utah Code. the state and s . The City funct ment. Under thi to a full-time pos tration of the Cit e arm of the gov al budget. udes all the City' rvices. Services mental functions ning and engine nce, traffic con creation services ministrative serv services, solid paramedic servi age of operating rt, by contribution risk managemen ement Districts o y, Cemetery Perp pital Projects fun t is reported as a ers of the City Co e Fiscal Year 20 ode Unannotated Accounting Sta ements include ucture) and the agement’s Discus curacy of the data est of our knowle ancial position a rnal control that Financial Report he table of cont cellence in Finan ements and the ts and schedule ted financial and go an annual sin ar A-133, Audits edule of Feder and auditors’ rep compliance with d in a separate S ITS SERVICES ncorporated on the second class The City is loc serves a populat tions under a str is form of gove sition as the Chie ty. The City Cou ernment and ap 's funds. The C s provided by the s include police eering, code en ntrol, parks ope s, community de vices. In addi waste collection ces are provide expenses and ns from the Gen nt are handled th f the Ogden Red petual Care and d is used to acc a permanent fund ouncil: 011-2012 Compr d 1993. This r ndards Board (G a statement of n statement of ac ssion and Analys a, and the comp edge, the enclos and results of op has been establ t is presented in tents, this transm ncial Reporting fo combining and i es. This section demographic inf gle audit in conf s of States, Loca ral Awards, ports on the applicable Single Audit February 6, s as defined ated in the tion of over rong mayor ernment the ef Executive uncil serves pproves and ity provides e City under e and fire nforcement, eration and evelopment, ition, water n and disposal d under an ente payments on o neral Fund. Flee rough internal se development Age the Downtown O count for projects d. The interest fr D rehensive Annua report has been GASB). This rep net assets that p ctivities that sho sis which begins leteness and fair sed data are acc perations of the C ished for this pur n three sections mittal letter, the or the 2011 Com ndividual fund fi n also includes formation presen ormity with the p al Governments services, the go erprise fund con outstanding debt et/facilities opera ervice funds. ency are reporte Ogden Special Im s approved in the rom this fund is u December 18, 20 al Financial Repo formatted to co port includes Go provide the total ows the cost of on page 17. rness of the pres curate in all mate City's various ac rpose. s: Introductory, City's organizati mprehensive Ann inancial stateme the managemen nted on a multiye provisions of the s, and Non-Profi olf courses, cer ncept, with user . The Municipa ations, informatio ed as a Special R mprovement Distr e City’s Capital used to improve o 012 ort of the City of omply with the f overnment-Wide net assets of th providing gover sentation, includi erial respects an ctivities. These a Financial and S on chart, a list o nual Financial Re ents and schedu nt’s discussion a ear basis where a e Single Audit Ac t Organizations. rtain recreationa charges set by al Airport is han on technology sy Revenue Fund i rict are also repo Improvement Pla our parks system f Ogden, in acco financial reportin Financial State he government, rnment services. ing all disclosure nd are reported assertions are ba Statistical. The of principal office eport. The Finan les, as well as t and analysis (M available. ct of 1996 and U Information re l programs, BD y the City Counc ndled as an ent ystems (data pro n this report. Th orted as Special an. The Gomer m. ordance with ng standards ments. The including all . Additional es, rests with in a manner ased upon a Introductory ers, and the ncial Section the auditors’ MD&A). The U.S. Office of lated to this O activities, cil to ensure erprise fund ocessing and he Municipal Revenue A. Nicholas 4 ---PAGE BREAK--- a fr a b o re th e a (t in E re li s b O e d o 1 lo a s K o d m In developing accounting contro rom unauthorize accountability for be derived; and ( occur within the easonable assur As a part of th hat portion relate In addition, the embodied in the appropriated bud that is, the leve ndividual fund. Encumbered amo eserves for such During fiscal y ngering effects sustainable level benefits and a wa Ogden residents. economic vitality. Ogden City is development resu on the Central Bu 20 room Hilton G ocated in the Jun and other develop slowed for the pa Kneaders Bakery of the River Bend does not end, dev multidimensional and evaluating t ols are designed ed use or disp assets. The con the evaluatio above framewo rance of proper r he City's single a ed to federal awa e City maintains annual appropria dget. Project-len l at which expe The City also ounts lapse at ye h are indicated as year (FY) 2012, of the recent rec of spending for atchful eye towar Ogden must tak in the eighth yea urgence. This re usiness District. Garden Inn open nction near the h pment in the Ogd ast few years star y, construction of d development. W velopment effort and ongoing. ACCOU the City's accoun d to provide reas osition; and ncept of reasona on of costs and b ork. We believ recording of finan audit, described ards, as well as to budgetary contr ated budget app ngth financial pla nditures cannot maintains an e ear-end. Howev s a portion of fun ECONOMI the City’s econ cession. Reven general City fun con du ma ret con for new tha eco the adj Cit are con Og Int com tha ed str act wit an rd current and fu ke a proactive ap ar of a communit ebirth has focuse In July of 2012 a ned its doors. Thi eart of downtown den River Projec rted again with th f Gear:30, and th With any resurge needs to be com UNTING SYSTE nting system, con sonable, but not ) the reliability able assurance re benefits requires ve that the City ncial transactions earlier, tests are o determine that rols. The objecti roved by the Cit ans are adopted legally exceed encumbrance ac ver, encumbranc nd balances. C CONDITION A nomy, along with ue projections fo nctions. Ogden C nservative budg ring FY 2012 an ajor revenues. urning economic nfidence is stron r the City. The r w and expanding There is concer at are scheduled onomy. Depend e City may need justments are de ty will continue to e not being met. ntinue to see a re Redevelopment gden City receiv ernational Econo Our awards hono mmunities. Ogde at they are at th ge, effective prac Economic deve ategies that have tivities are made th serious alysis of potentia ture prosperity fo pproach to ensur ty and economic ed, in a large part a new four- story is new hotel is n Ogden. Retai ct, that has been he completion of he start of Phase ence the work mprehensive, EM AND BUDGE nsideration is giv absolute, assur of financial rec ecognizes that: s estimates and y's internal acco s. e made to determ the City has com ive of these budg y Council. Activ for the Capital I the appropriated ccounting syste ces are generally AND LONG-TER h the national ec or FY 2012 were City is in a bette ets. The City nd a good year f Projections in c growth and the nger than it has ate of job growth g businesses. rn for the overall d to take place a ding on decisions d to make mid-y ependent on how o closely watch We are confide eturn to revenue t and revitalizati ved the “Gold omic Developme or organizations a en City’s Commu e forefront of th ctices that can b lopment has bee e led to promisin al or e t, , l I ETARY CONTRO ven to the adequ rance regarding: cords for prepa the cost of co judgments by m ounting controls mine the adequa mplied with appli getary controls i vities of all funds Improvement Pro d amount) is es m as one tech y re-appropriated RM FINANCIAL P conomy, continu e conservative, er financial positi also experience for building perm the FY 2013 b e continued recov been in the pas h for the City ha l outlook for 201 at the national le s made in the ne year adjustments w the economy revenue collectio ent that once nat e growth. on is an import Excellence in ent Council (IED and individuals f unity and Econo he economic dev be replicated in ot en challenging at ng results for Ogd O OL uacy of internal a the safegua aring financial s ontrol should not management. Al adequately saf acy of the interna cable laws and r s to ensure com s used by the Cit ojects Fund. Th stablished at the hnique of accom d as part of the PLAN ued to experienc contributing to a on at the end of ed a healthy reb mit revenue, help budget are sligh very of retail bus t few years, help as also been hea 3 and how tax i evel, after the firs ext few months s to the FY 201 reacts to chang on and take app tional issues hav tant focus for O Economic Deve DC) in October. for their efforts in mic Developmen velopment profes ther communities t times, and the C den. All develop Ogden City Co Letter of T accounting contro arding of assets statements and t exceed the ben l internal control eguard assets al control structu regulations. mpliance with lega ty are included in he level of budge department lev mplishing budget following year's ce a slow recove a realistic City b f FY 2012, partly bound in sales ping close any g htly more optimi siness in general ping drive sales althy, due to effo ncreases and sp st of the year, w by the Federal G 3 budget. Mid- es in Federal Po propriate action i ve been resolved Ogden City. This elopment Award Jay Moon, IEDC n creating positiv nt Department d ssion and are us City has underta pment and redeve orporation Transmittal ols. Internal against loss maintaining efits likely to evaluations and provide re, including al provisions n the annual etary control vel within an tary control. budget, and ery from the udget and a y because of tax revenue aps in other stic, due to . Consumer tax revenue orts to attract pending cuts will affect the Government, -year budget olicies. The f projections d, Ogden will s past year, d” from the C chair said, ve change in emonstrates sing cutting- ken many elopment 5 ---PAGE BREAK--- a s re th h P C g O tr fo a tw h is O D th s c O S ra 1 s s 5 S fe H A c c C in in Enhancement air service at the service between ecently complete Continued imp he Ogden River high-adventure th Parkway has bee County Recreatio grant, with additio Ogden River Park rail system in the orms the scenic Within a few m are ample outdoo wo scenic public hiking, rock climb s access to world Ogden. Snowbas Downhill, Super G he mountains ab snow falls annual curling clubs enjo Olympic curling, a State University C Once only kno anked Ogden as 0 most affordab Business Dep square feet of ind significant change 540,000 square f Southern Classic eet). This past y Home Depot ope August 2012. Th chosen over num customer service The 7,940,71 Currently, the tot nfrastructure and ndustrial park in to transportation Ogden-Hinckley Ogden and Phoe ed. provements to th more accessible hemed park alon en completed, wit on Arts Museums onal improvemen kway links the ci e towering Wasat backdrop for Og minutes from dow or recreational op golf courses, fis bing, kayaking, an d class skiing, on sin, home to the G, and Combined bove Ogden, whe lly. Figure skate oy the Ogden Ice and located near Campus. own as an old rai s one of the top 1 le cities in the U. ot Ogden is a 1, dustrial and office es since the tran eet Hershey Dist Food Group (13 year, facilities ope ned an 85,000 s is center will eve merous cities in th center. 8 square feet tal investment e d new construct Utah. n and tourism is y Airport. Teamin enix. The airport e River Parkway e and user friendl g the Ogden Riv th the help of a W s and Parks (RAM nts planned. The ty with the moun tch Range, which den. wntown Ogden, t pportunities inclu shing, biking, cam nd ice climbing. nly a short drive f 2002 Olympic d races is located ere over 400 inch rs, hockey teams e Sheet, home of r the beautiful We lroad town, Ogd 0 places to raise to buy a hom 118 acre master e space. BDO is nsfer to Ogden C tribution Facility, 35,000 square fe ened for Quality quare-foot custo entually employ a he U.S. as one of of space availa exceeds $94 mil tion define the B another area the ng with the Las V t also expanded y make ly. A ver Weber MP) e ntain h here uding mping, There from d in hes of s, and eber en continues to c e a family and, to e. The City has planned Busine a vibrant, growin ity in 1997. BDO Barnes Aerospa et), and Corners Bike Products d omer service and approximately 70 f only two locatio able at BDO is lion dollars. We Business Depot e City has focuse Vegas-based Alle its square footag cultivate a reputa o have a busines hosted a numbe X R In ou ha nu in T A be pa E fib th S an ci ss Park with ove ng park which ha O boasts tenants ace (165,000 squ stone RDI (152,00 istribution and C sales center at t 00 employees. O ons for the state-o s approximately believe these i as the premier ed on. Ogden wa egiant Travel Com ge. A $650,000 ation as a preferr ss and a career. er of big events fo XTERRA Mounta Road National Ch nternational Yout As Ogden’s re utdoor experienc ave chosen to lo umber of new hig ncluding SnowSp Technologies, Sco American Can Co ecome the new h arent company o ENVE Composite ber composite pr heir newest facilit State over the nex nd vigorous effo ity and help exist er 7.9 million as undergone s such as the uare feet), 00 square CSN stores. the BDO in Ogden was of-the-art 90% leased. nvestments in business and O as excited to see mpany, Ogden-H project to expand red outdoor dest CNN also ranke or the past sever in Championship hampionship, Og th Archery Cham putations of bein ce and quality of ocate here. Ogde gh adventure rec ports, Nidecker, I ott USA and Kah omplex has been headquarters of of Salomon, Atom es, Inc., who man roducts for the cy ty in Ogden, brin xt seven years. rts to continue to ting businesses, Ogden City Co Letter of T e the addition of p Hinckley began n d the airport's te tination. Recentl ed Ogden as one ral years, includi p, USA Cycling C den Marathon, a mpionships. ng the home to a life grows many en has become h creation compan Interactive, GOO huna Creations. n substantially rem Amer Sports Co mic and Suunto b nufactures high e ycling industry, w nging 324 new jo The City makes o recruit compan both large and s orporation Transmittal passenger nonstop jet rminal was ly, Forbes e of the top ng the Collegiate and great y companies home to a nies ODE Ski The modeled to rp., the brands. end carbon will open bs to the consistent ies to the small, thrive. 6 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal GOVERNMENT REVENUES Revenues for general governmental functions (General Fund) for the fiscal year ended June 30, 2012 totaled $56,411,437. The amounts of revenue from various sources are shown in the following tabulation: Taxes produced 63.6 percent of general revenues. The amount of taxes collected in fiscal year 2012 is the highest it has been. The second highest year was fiscal year 2008, when the City collected $35,629,287 in tax revenue. Taxable value of property in Ogden City was $3.18 billion. Included in this amount is $1.01 billion in the tax increment districts. Licenses and permits provided 4.1 percent of general revenues. The increase from the prior years is due to an increase in commercial permits issued mostly due to three or four very large developments projects during the year. Intergovernmental revenues represented 13.1 percent of total general revenue. This represents a decrease over the prior year mostly due to a decrease in grant revenue. Charges for services provided 11.6 percent of general revenues. This source of revenue tends to fluctuate because of the nature of most activities in this category. General participation in these activities changes with economic conditions. Fines and forfeitures provided 5.2 percent of general revenues. Justice court and civil citation activity has increased in recent years. Additionally the City received a surcharge from the State of Utah for halfway housing starting in FY 2011. These revenues are up over the prior year. Interest Income provided 0.3 percent of general revenues. Rates of return have remained lower than historical levels. Other revenue includes police auctions, insurance rebates, sales of assets and other administrative revenues. GENERAL FUND EXPENDITURES Expenditures for general governmental purposes (General Fund) for the fiscal year ended June 30, 2012 totaled $53,879,485. Levels of expenditures for major functions of the city are as follows: Expenditures for fiscal year 2012 decreased over the prior year, despite the City covering increased cost of health care insurance and retirement. Community and Economic Development decreased, in part due to the decrease in redevelopment activities in several RDA districts. This is due to the completion or near completion of larger projects. Debt service remained constant with the prior year. Bonds matured during the year and final year payments were made, which are generally greater than yearly payments. As indicated in the financial statements, bond issues and loans in the prior year added to the current year payment schedules. % of % of % of % of Revenue Source 2012 Total 2011 Total 2010 Total 2009 Total Taxes 35,865,785 $ 63.6% 34,557,757 $ 63.1% 33,871,436 $ 61.9% 34,702,441 $ 64.3% Licenses and permits 2,285,419 4.1% 1,817,655 3.3% 2,023,309 3.7% 1,893,276 3.5% Intergovernmental 7,385,017 13.1% 7,806,508 14.3% 6,985,697 12.8% 6,482,702 12.0% Charges for services 6,557,954 11.6% 6,225,463 11.4% 6,789,028 12.4% 6,708,057 12.4% Fines and Forfeitures 2,930,273 5.2% 2,906,270 5.3% 2,339,788 4.3% 2,708,901 5.0% Interest income 148,198 0.3% 66,802 0.1% 152,238 0.3% 410,800 0.8% Other revenue 1,238,791 2.2% 1,391,636 2.5% 2,600,904 4.7% 1,066,951 2.0% 56,411,437 $ 100% 54,772,091 $ 100% 54,762,400 $ 100% 53,973,128 $ 100% Change from prior year 3.0% 0.0% 1.5% -4.6% Expenditure by % of % of % of % of Function 2012 Total 2011 Total 2010 Total 2009 Total General Government 9,956,836 $ 18.5% 10,041,095 $ 17.7% 11,117,091 $ 20.0% 9,716,685 $ 18.2% Police and Fire 23,180,853 43.0% 24,279,450 42.7% 23,311,460 42.0% 22,386,549 41.9% Public Services 9,873,168 18.3% 10,897,470 19.2% 10,018,882 18.1% 10,116,733 18.9% Community and Economic Development 8,394,772 15.6% 9,214,520 16.2% 8,569,653 15.4% 8,675,865 16.2% Debt Service 2,473,856 4.6% 2,442,331 4.3% 2,477,737 4.5% 2,544,185 4.8% 53,879,485 $ 100% 56,874,866 $ 100% 55,494,823 $ 100% 53,440,017 $ 100% Change from prior year -5.3% 2.5% 3.8% -7.6% 7 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal FUND BALANCE GUIDELINES Utah State Code Section 10-6-116 establishes guidelines on the use of fund balance in the General Fund. As outlined, any fund balance in excess of five percent of estimated revenues may be utilized for budget purposes. The section further indicates the fund balance shall not exceed eighteen percent of estimated revenues. Under these guidelines the City's fund balance parameters are approximately $2,560,619 and $9,218,228 based on next fiscal year's budgeted receipts. The unassigned portion of the General Fund balance at June 30, 2012 is $3,560,619. ENTERPRISE FUNDS The income before transfers and capital contributions for the enterprise funds for the preceding four fiscal years are as follows: The above table shows the income (loss) generated by each fund rather than presenting the total change in net assets due to the effect of the inclusion of large capital contributions from outside donors and transfers of infrastructure assets from Business Depot Ogden to the Water and Sewer funds. The Unrestricted Net Assets for the enterprise funds for the preceding four fiscal years are as follows: DEBT ADMINISTRATION New Debt Issued in Fiscal Year 2012: During fiscal year 2012, the City issued $1,737,000 of sales tax revenue bonds and refunded a sales tax revenue bond issue for $1,680,000. The RDA also issued $5,378,000 of tax increment revenue bond and refunded two tax increment revenue bond issues with a total principal balance of $5,790,000 in the Business Depot Ogden District. For more information, please see Note 8 Long-term debt in the Notes to the Financial Statements. Outstanding bonds: General Obligation Refunding issued in 2009 have $7,825,000 principal outstanding. These bonds mature December 15, 2015. Sales Tax Revenue issued in 2011 have $1,650,000 principal outstanding. These bonds mature March 1, 2026 Tax Increment Revenue bonds have $45,220,000 principal outstanding. These bonds mature by June 2031. Water & Sewer Revenue bonds issued in 2009 have $4,730,000 principal outstanding. These bonds mature June 15, 2024. Water & Sewer Revenue bonds issued in 2008 have $45,825,000 principal outstanding. These bonds mature June 15, 2038. Income (loss) before transfers and % % % % capital contributions 2012 Change 2011 Change 2010 Change 2009 Change Water Utility 3,415,763 $ 278.2% 903,064 $ -30.3% 1,294,971 $ -6.5% 1,385,011 $ -20.5% Sew er Utility 3,789,038 24.3% 3,048,011 -5.2% 3,216,211 25.4% 2,564,342 46.7% Refuse Collection 397,913 -7.9% 431,949 -27.5% 595,497 -26.1% 805,527 56.3% Business Depot Ogden (1,108,348) -216.8% (349,891) -224.8% 280,356 131.0% (904,235) -34.3% Municipal Airport (1,670,682) -16.3% (1,436,198) -311.0% (349,410) -139.5% 885,553 94.6% Golf Courses (236,230) 21.9% (302,661) -27.5% (237,293) -25.7% (188,771) -8.2% Recreation (6,952) 77.4% (30,747) -8.0% (28,468) -5421.1% 535 -61.3% Dinosaur Park (4,285) 98.5% (279,224) -22.6% (227,704) -146.1% (92,539) 0.0% Medical Services 1,736,820 202.8% 573,540 552.8% (126,662) -111.2% 1,128,826 219.5% Unrestricted % % % % Net Assets 2012 Change 2011 Change 2010 Change 2009 Change Water Utility 8,779,378 $ 257.2% 2,458,174 $ -174.1% 3,318,654 $ 869.9% (342,176) $ -113.0% Sew er Utility 15,081,839 37.9% 10,938,700 22.3% 8,941,673 42.6% 6,272,222 350.2% Refuse Collection 2,220,522 191.5% 761,791 166.4% 285,908 180.8% (354,011) -150.0% Business Depot Ogden 7,943,621 4.4% 7,612,368 8.7% 7,002,485 80.3% 3,884,679 -11.0% Municipal Airport (1,678,284) 16.4% (2,006,473) -26.6% (1,585,143) 20.1% (1,984,700) 24.6% Golf Courses (794,514) 8.8% (871,210) 13.7% (1,009,477) 24.8% (1,341,704) 5.6% Recreation 117,755 -4.3% 123,075 -19.6% 153,062 -15.3% 180,770 -2.2% Dinosaur Park (27,878) -18.2% (23,593) -145.3% 52,030 -6.7% 55,746 0.0% Medical Services 3,808,334 84.5% 2,064,017 36.7% 1,509,541 -9.8% 1,673,237 200.3% 8 ---PAGE BREAK--- 9 ---PAGE BREAK--- 10 10 ---PAGE BREAK--- CITY COUNCIL MAYOR COUNCIL STAFF CHIEF ADMIN OFFICER LEGAL FIRE POLICE PUBLIC SERVICES COMMUNITY & ECONOMIC DEV MANAGEMENT SERVICES OGDEN CITY CORPORATION ORGANIZATIONAL STRUCTURE ADMINISTRATION COMPTROLLER FISCAL OPERATIONS HUMAN RESOURCES RECORDER FLEET & FACILITIES INFORMATION TECHNOLOGY RISK MANAGEMENT JUSTICE COURT ADMINISTRATION PARKS CEMETERY RECREATION ENGINEERING GOLF COURSES STREETS WATER UTILITY SEWER UTILITY SANITATION OPERATIONS ADMINISTRATION PREVENTION OPERATIONS MEDICAL SERVICES ADMINISTRATION SUPPORT SERVICES UNIFORM ADMINISTRATION PLANNING COMMUNITY DEVELOPMENT BUSINESS DEVELOPMENT ARTS, CUTLURE & EVENTS AIRPORT BDO (DDO REUSE) BUILDING SERVICES ANIMAL SERVICES CODE ENFORCEMENT 11 11 ---PAGE BREAK--- OGDEN CITY CORPORATION PRINCIPAL CITY OFFICIALS June 30, 2012 Title Name_____ Mayor Michael P. Caldwell City Council Member Caitlin Gochnour City Council Member Susie Van Hooser City Council Member Amy L. Wicks City Council Member Doug Stephens City Council Member Richard Hyer City Council Member Neil K. Garner City Council Member Bart E. Blair City Council Executive Director William Cook Chief Administrative Officer Mark L. Johnson City Recorder Tracy Hansen City Attorney Gary Williams Management Services Director Tony Reynolds Police Chief Michael R. Ashment Fire Chief Michael L. Mathieu Public Services Director Jay Lowder Community and Econ. Dev. Director Tom Christopulos 12 ---PAGE BREAK--- Financial Section 13 13 ---PAGE BREAK--- 14 14 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 INTRODUCTION The following is a discussion and analysis of Ogden City’s financial performance and activities for the year ended June 30, 2012. Please read it in conjunction with the transmittal letter in the Introductory Section of this report and with the financial statements that follow. HIGHLIGHTS Government-wide  The City’s total net assets increased $12,220,917 or 3.7 percent from the prior year. Net assets of governmental activities increased $8,316,542 or 7.3 percent, and net assets of business-type activities increased by $3,904,375 or 2.0 percent. Fund Level  Fund balances in the City’s governmental funds increased $988,971 or 5.1 percent from the prior year, mostly due to payoff of debt, a conservative budget in the general fund, and an improvement in sales tax revenue.  Property tax revenues were 2.1 percent lower than the prior year due to little change in the property tax base as of January 2012, when property taxes are assessed. The City’s total sales taxes increased $1,228,226 or 10.3 percent from the previous year. This is generally attributed to a stronger economy and some new retail development. This increase is a change over the past several years where there has been declining or very small increases in sales tax revenue. Long-term Debt  The City’s long-term debt decreased by the amount of scheduled payments. This included the final payments on the 2003 general obligation bonds and RDA bonds in the West 12th Street District.  The RDA issued a refunding bond of $5,375,000 to replace the BDO Tax Increment Series 2001D and 2002B debt. The new 2011 BDO Tax Increment bond will be paid off in FY2014 and has a lower rate of interest. The City issued debt refunding for the 2006 Sales Tax Revenue Bonds of $1,737,000 for a better rate of interest. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is an introduction to the City’s Basic Financial Statements. The Basic Financial Statements include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the Basic Financial Statements, this report also contains other supplementary information including combining statements for nonmajor funds and a statistical section. Government-wide Statements - Reporting the City as a Whole The Statement of Net Assets and the Statement of Activities beginning on page 27 comprise the government-wide financial statements. These statements provide a broad overview with a long-term focus of the City’s finances as a whole and are prepared using the full-accrual basis of accounting, similar to private-sector companies. This means all revenues and expenses are recognized regardless of when cash is received or spent, and all assets and liabilities, including capital assets and long-term debt, are reported at the entity level. The government-wide statements report the City’s net assets - the difference between total assets and total liabilities - and how they have changed from the prior year. Over time, increases and decreases in net assets measure whether the City’s overall financial condition is getting better or worse. In evaluating the government’s overall condition, however additional non-financial factors should be considered such as the City’s economic outlook, changes in its demographics, and the condition of its capital assets and infrastructure. The government-wide statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or most of their costs through user fees and charges (business-type activities). Ogden City’s governmental activities include general administration, public safety, transportation, environmental protection leisure opportunities, and community development. The City’s business-type activities include certain operations for utilities, medical services, airport, recreation and property management. Fund Financial Statements - Reporting the City’s Most Significant Funds The fund financial statements beginning on page 31 provide detailed information about individual major funds, and not the City as a whole. A fund is a group of related accounts that the City uses to keep track of specific resources that are segregated for a specific purpose. Some funds are required by law to exist, while others are established internally to maintain control over a particular activity. All of the City’s funds are divided into two types, each type uses a different accounting approach. 17 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Governmental Funds - Most of the City’s basic services are accounted for in governmental funds and are essentially the same functions reported as governmental activities in the government-wide statements. Governmental funds use the modified accrual basis of accounting, which measures the flow of current financial resources that can be converted to cash and the balances left at year-end that are available for future spending. This short-term view of the City’s financial position helps determine whether the City has sufficient resources to cover expenditures for its basic services in the near future. Proprietary Funds - Ogden City uses two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City has eight enterprise funds which include water, sewer, airport, golf courses, refuse, BDO (Business Depot Ogden), recreation, and medical services activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City maintains three internal service funds to account for its fleet and facilities, risk management, and management information systems activities. Because those services predominantly benefit governmental rather than business-type activities, they are included with governmental activities in the government-wide statements. Reconciliation between Government-wide and Fund Statements The financial statements include schedules on pages 35 and 38 that reconcile the amounts reported for governmental activities on the government-wide statements (full-accrual accounting, long-term focus) with amounts reported on the governmental fund statements (modified accrual accounting, short-term focus). Following are some of the major differences between the two statements:  Capital assets and long-term debt are included on the government-wide statements but are not reported on the governmental fund statements.  Capital outlays result in capital assets on the government-wide statements but are expenditures on the governmental fund statements.  Bond proceeds result in liabilities on the government-wide statements but are other financing sources on the governmental fund statements.  Certain tax revenues that are earned but not yet available are reported as revenue on the government-wide statements but are unearned revenue on the governmental fund statements. Notes to the Financial Statements The notes beginning on page 50 provide additional schedules and information that are essential to a complete understanding of the financial statements. The notes apply to both the government-wide financial statements and the fund financial statements. Required Supplementary Information Ogden City adopts an annual budget for all of its governmental and proprietary funds. Beginning on page 80 are budgetary comparison schedules for the City’s General and major Special Revenue funds. Supplementary Information Supplementary information includes combining statements for the City’s nonmajor governmental funds, internal service funds, and nonmajor enterprise funds. FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Assets The largest component of the City’s net assets, 87.1 percent, reflects investments in capital assets (land, buildings, equipment, roads, and other infrastructure) less all outstanding debt that was issued to buy or build those assets. As capital assets, these resources are not available for future spending, nor can they all be readily liquidated to pay off the related liabilities. Resources needed to repay capital-related debt must be provided from other sources. Restricted net assets comprise 5.1 percent of total net assets and are subject to external restrictions on how they may be used. Unrestricted net assets are 7.9 percent of total net assets. 18 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Ogden City Corporation Net Assets June 30 Governmental Business-type Activities Activities Total 2012 2011 2012 2011 2012 2011 Current and other assets $ 63,125,353 $ 65,446,640 $ 49,147,923 $ 50,714,643 $ 112,273,276 $ 116,161,283 Capital assets 171,824,168 167,513,434 210,435,818 206,713,903 382,259,986 374,227,337 Total Assets 234,949,520 232,960,074 259,583,741 257,428,546 494,533,262 490,388,620 Current and other liabilities 49,483,974 48,099,838 7,813,811 7,905,174 57,297,785 56,005,012 Long-term liabilities 63,306,103 71,017,334 53,143,231 54,801,048 116,449,334 125,818,382 Total Liabilities 112,790,077 119,117,172 60,957,042 62,706,222 173,747,119 181,823,394 Net assets: Invested in capital assets, Net of related debt (restated 106,921,454 95,321,152 162,826,097 173,316,247 269,747,551 268,637,399 Restricted 14,223,370 15,330,598 349,829 349,228 14,573,199 15,679,826 Unrestricted 1,014,620 3,191,152 35,450,773 21,056,849 36,465,393 24,248,001 Total Net Assets $ 122,159,444 $ 113,842,902 $ 198,626,699 $ 194,722,324 $ 320,786,143 $ 308,565,226 Change from prior year: 7.31% 2.81% 2.01% 1.76% 3.96% 2.15% Changes in Net Assets The following charts and schedules summarize the City’s revenues and expenses relative to each other and the prior year. Ogden City Ogden City Total Revenues - 2012 Total Expenses – 2012 19 19 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Governmental Activities Total tax revenues showed a moderate increase during 2012. Property taxes were lower from last year, however the increase is a result of an improvement in sales tax. Net assets for governmental activities increased this year due to increased sales tax revenue and net transfers to governm ental activities being greater than transfers out. The City anticipated a slight revenue shortfall during the fiscal year and budgeted accordingly. Ogden City Corporation Changes in Net Assets Years Ended June 30 Total Governmental Business-type Percent Activities Activities Total Change 2012 2011 2012 2011 2012 2011 2011-2012 Revenues General Revenues Taxes $ 43,045,005 $ 42,501,690 $ - $ - $ 43,045,005 $ 42,501,690 1.3% Other General Revenues 716,919 1,802,273 371,047 428,920 1,087,966 2,231,193 -105.1% Program Revenues Charges for Services 24,384,989 24,600,824 48,204,635 44,400,080 72,589,624 69,000,904 4.9% Operating Grants 3,662,162 5,150,014 - - 3,662,162 5,150,014 -40.6% Capital Grants 5,055,575 3,268,214 3,746,183 3,642,770 8,801,758 6,910,984 21.5% Total Revenues 76,864,650 77,323,015 52,321,865 48,471,770 129,186,515 125,794,785 2.6% Expenses General Administration 24,173,956 26,378,133 - - 24,173,956 26,378,133 -9.1% Public Safety 25,742,362 25,232,522 - - 25,742,362 25,232,522 2.0% Transportation 5,236,900 6,095,515 - - 5,236,900 6,095,515 -16.4% Environmental Protection 582,561 585,712 - - 582,561 585,712 -0.5% Leisure Opportunities 6,047,729 5,377,416 - - 6,047,729 5,377,416 11.1% Community Development 5,782,149 7,443,575 - - 5,782,149 7,443,575 -28.7% Interest on Long-term Debt 4,507,901 4,421,011 - - 4,507,901 4,421,011 1.9% Medical Services - - 5,136,183 4,939,844 5,136,183 4,939,844 3.8% Airport - - 1,991,983 1,754,491 1,991,983 1,754,491 11.9% Utilities - - 26,358,238 24,576,722 26,358,238 24,576,722 6.8% Refuse - - 4,563,104 4,489,157 4,563,104 4,489,157 1.6% Recreation - - 1,567,052 2,252,134 1,567,052 2,252,134 -43.7% Property Management - - 4,689,194 4,258,808 4,689,194 4,258,808 9.2% Total Expenses 72,073,559 75,533,884 44,305,754 42,271,156 116,379,313 117,805,040 -1.2% Change in Net Assets beforeTransfer 4,791,092 1,789,131 8,016,111 6,200,614 12,807,203 7,989,745 37.6% Donations - - (586,286) Transfers 3,525,450 1,970,747 (3,525,450) (1,970,747) - - 0.0% Change in Net Assets 8,316,542 3,759,878 3,904,375 4,229,867 12,220,917 7,989,745 34.6% Net Assets - Beginning (restated) 113,842,902 110,083,024 194,722,324 190,492,457 308,565,226 300,575,481 2.6% Net Assets - Ending $ 122,159,444 $ 113,842,902 $ 198,626,699 $ 194,722,324 $ 320,786,143 $ 308,565,226 3.8% The following table shows to what extent the City’s governmental activities relied on taxes and other general revenue to cover their costs. For 2012, these programs generated $33,102,726 or 45.9 percent of total expenses through charges for services and grants. Taxes, other general revenues and fund balance covered the remaining 54.1 percent. 20 20 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Ogden City Net Cost of Governmental Activities Years Ended June 30 Program Revenues Less Net as a Percentage Program Program Program of Program Expenses Revenues Costs Expenses 2012 2012 2012 2011 2012 2011 Activities General Administration $ 24,173,956 $ (14,717,254) $ 9,456,702 $ 11,445,158 60.9% 61.6% Public Safety 25,742,362 (4,540,428) 21,201,934 19,291,612 17.6% 17.6% Transportation 5,236,900 (2,864,428) 2,372,472 3,161,070 54.7% 54.7% Environmental Protection 582,561 (3,736,234) (3,153,673) (2,429,301) 641.3% 641.3% Leisure Opportunities 6,047,729 (837,020) 5,210,709 4,968,388 13.8% 12.8% Community Development 5,782,149 (6,407,362) (625,213) 2,984,694 110.8% 110.8% Interest on Long-term Debt 4,507,901 - 4,507,901 4,421,011 0.0% 0.0% Total Governmental Activities $ 72,073,559 $ (33,102,726) $ 38,970,833 $ 43,842,632 45.9% 46.2% Business-type Activities The business-type activities are generating sufficient revenue, before capital contributions and transfers, to cover costs in the water, sewer, refuse and medical funds. Reductions in net assets occurred in the BDO property management, airport, golf, dinosaur park and recreation funds. This combined with non-operating transfer and capital contribution activities resulted in an increase in net assets of $3,904,375 for the combined business activities. CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION Capital Assets Ogden City added $22,506,476 in new capital assets during 2012. New additions to buildings and improvements, equipment, construction in progress, and intangibles were $13,898,125, $5,394,567, $2,907,954 and $100,658, respectively. Overall, construction-in-progress decreased $15,622,871, due to the completion of water, sewer, and airport projects. The majority of completed project were reclassified as buildings and improvements in the amount of $18,433,568. The City sold or disposed of $1,510,920 in capital assets, which consisted of outdated equipment. The City also sold and donated land of $810,664 and $866,440 respectively. During the year, the BDO Property Management Fund transferred improvements totaling $1,703,508, $210,666 and $315,999 to the general fixed assets, water and sewer funds, respectively. Infrastructure The City has elected to use the modified-approach for reporting infrastructure. This election allows the City to forego reporting depreciation on infrastructure assets, provided that the City has made a commitment to maintain those particular assets at predetermined condition levels. Detailed information on the City’s modified approach for reporting infrastructure is presented in the Required Supplementary Information on page 86. During the year, there were no significant changes in condition levels of infrastructure assets. For the past five years, the City has been able to maintain infrastructure at a level above its committed level of maintenance of 50% for “Fair or better” condition on roads and bridges. Roads and bridges with a rating of “very poor” were below the 15% maximum allowable level for the past 5 years. The City spent less than estimated for maintenance of condition levels in the current year. During fiscal year 2012 the City spent $5,121,998 on infrastructure compared to a budget estimate of $6,794,376. More information about capital assets is included in Note 5 on page 61. 21 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Long-term Debt The RDA issued the 2011 BDO Tax Increment refunding bond. The City also issued a 2011 Sales Tax Revenue refunding bond. Note 8 on page 63 provides more information on the City’s long-term liability activity for the year. The following table presents changes in Ogden City’s long-term obligations in relation to the previous year. Ogden City Long-term Liabilities Years Ended June 30, Total Governmental Business-type Percent Activities Activities Total Change 2012 2011 2012 2011 2012 2011 2011-2012 General Obligation Bonds $ 9,475,000 $ 11,270,000 $ - $ - $ 9,475,000 $ 11,270,000 -15.93% Lease Revenue Bonds 4,752,000 5,047,000 - - 4,752,000 5,047,000 -5.85% Tax Increment Revenue Bonds 45,220,000 50,695,000 - - 45,220,000 50,695,000 -10.80% Enterprise Revenue Bonds - - 53,847,000 55,509,790 53,847,000 55,509,790 -3.00% Notes Payable 1,890,000 2,160,000 - - 1,890,000 2,160,000 -12.50% Capital Leases 3,390,174 2,718,070 - - 3,390,174 2,718,070 24.73% Claims payable 2,037,309 2,344,050 - - 2,037,309 2,344,050 -13.09% Compensated Absences 2,963,060 3,057,222 860,068 897,671 3,823,128 3,954,893 -3.33% Bond Premium 276,505 345,633 350,112 363,578 626,617 709,211 -11.65% Bond Discount (40,365) (43,420) (34,894) (37,902) (75,259) (81,322) -7.46% Total $ 69,963,683 $ 77,593,555 $ 55,022,286 $ 56,733,137 $ 124,985,969 $ 134,326,692 -6.95% FINANCIAL ANALYSIS OF THE CITY’S FUNDS Fund Balances At June 30, 2012, Ogden City’s governmental funds reported combined fund balances of $20,569,793. An amount of $4,418,876 is classified as nonspendable and includes prepaids, inventory, loans to other funds, land held-for- redevelopment and Gomer Nicholas fund principal. An amount of $1,177,899 is reported as spendable-restricted for debt service, unspent bond proceeds and revolving loan program capital. An amount of $11,412,399 is reported as spendable-assigned for various purposes as detailed on the face of the governmental funds balance sheet. An amount of, $3,560,619 is reported as spendable-unassigned. It is important to note that included in the unassigned amount is the State of Utah required reserve of $2,560,619. The following table presents the City’s fiscal year 2012 ending governmental fund balances. Ogden City Governmental Fund Balances June 30, 2012 General Debt Redevelopment Nonmajor Fund Service Agency Funds Total Nonspendable $ 1,117,537 $ - $ 2,800,394 $ 500,945 $ 4,418,876 Spendable - restricted 326,523 (18,827) 454,507 415,696 1,177,899 Spendable - assigned 3,970,766 - 571,649 6,869,984 11,412,399 Spendable - unassigned 3,560,619 - - - 3,560,619 Total $ 8,975,445 $ (18,827) $ 3,826,550 $ 7,786,625 $ 20,569,793 Percent Change from Prior Year: 21.03% 10.74% -19.10% 4.43% 5.05% General Fund During 2012, the fund balance in the General Fund increased $1,559,852 or 21.0 percent. Revenues exceeded expenditures, before considering other financing sources and uses, by $2,531,952. Revenue in most of the key revenue categories came in very close to the budgeted amounts. In addition, costs such as fuel, healthcare and retirement continue to increase at high rates. The City prepared a conservative budget to ensure revenues would be sufficient to cover expenditures. 22 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Debt Service Fund The fund balance in the Debt Service Fund increased due mostly to interest income. In FY2011a write-off of receivables due from property owners in the special assessment project areas of Mountain Road and 4th and Grant were recognized. These receivables were recorded in such a way as to make it very difficult to tell which homeowners have paid their assessment and which ones have not. The determination was made that liens will remain on the identified properties, but given the uncertainty of collection the receivables have been written-off for financial reporting purposes. Any payments received on these liens will be recognized as revenue in this fund in the year received. Redevelopment Agency Fund (RDA) During the fiscal year, the fund balance in the RDA fund decreased $903,493. Revenues exceeded expenditures, before considering other financing sources and uses, by $759,400. The Ogden River area had some property transactions during FY2012 that required the recognition of a loss on land held-for-redevelopment of $890,046. The main reason for the decrease in fund balance is a result of other financing sources and uses. Bond refunding activities and transfers out of the RDA exceeded new bond issuance and transfers into the RDA by $1,662,893. Water Fund In the current year, net assets increased $1,696,513, primarily as a result of the approved rate increases that went into effect during the fiscal year. The BDO property management fund, outside contractors and developers also donated and transferred infrastructure assets totaling $210,666. Results from operations were positive at $3,415,763. The City has encouraged several conservation measures be taken by its citizens causing a decrease in water consumption. This action plus the increase costs caused by the limited supply have been offset in the current year by rate increases. Rate increases were also necessary to fund a broad range of improvements, upgrades and expansion of the distribution system. A substantial amount of infrastructure was completed during the year with the use of bond funding. Sewer Fund Net assets increased $4,260,575 over the previous year. Results of operations were $3,789,038. Operations were able to produce net income in the current year due to approved rate increases. Rate increases in the sewer fund were necessary to maintain a viable operation and fund a broad range of sewer related infrastructure projects as well as to fund an anticipated increase from Central Weber Sewer. Additionally, the City received grants of $981,965 and transferred assets of $315,999. Extensive infrastructure assets were completed during the year, including both bond funded projects and storm water projects at the Ogden river and elsewhere. The sewer fund had a transaction classified as a special item resulting from the donation of land with a carrying value of $586,286. More information about special items is included in Note 19 on page 75. Refuse Fund Net assets increased overall by $385,226. Rate increases in prior years have allowed the fund revenue to keep pace with operating costs. For now, fuel costs are manageable for the most part due to the City’s purchase of CNG fueled refuse collection vehicles. The City made the decision to switch to CNG to try and hedge the risk of future rising fuel prices and also reduce the carbon footprint of the refuse collection system. BDO Property Management Fund Net assets decreased by $3,665,788. A major factor that limits the increase each year is the requirement to report non- cash depreciation expense, which in the current year was $4,100,830. Depreciation is directly associated with the City’s investment in capital assets at the facilities. The City’s objective at this site is maintenance and expansion. This emphasis encourages management to spend the accumulated balance. In addition, the project area transferred infrastructure assets to other funds in the City. The City’s share of leasing revenue as well as tax increment received by the City from the RDA increased in line with increased tenant occupancy and the addition of several new facilities. Medical Services Fund Net assets increased in the Medical Services Fund by $1,805,822. The increase was due to increases in collection rates. Call volume and standard rates increased over the prior year. Nonmajor Governmental Funds Ogden City’s nonmajor governmental funds show a combined increase in fund balance of $330,347. This increase is due to budgeted transfers to cover the cost of capital improvement costs in the capital projects fund. 23 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2012 Nonmajor Enterprise Funds The combined change in net assets of the nonmajor enterprise funds shows an decrease of $577,973 from the previous year. This was primarily due to the transfer of capital assets at the dinosaur park to the general fixed asset account group. The airport, golf courses and recreation also experienced operating losses. The City made transfers to cover most of the losses in the Airport and Golf Course Funds. The City also made a transfer in FY2012 to cover the cost of building a new terminal at the Airport to accommodate commercial airline flights that began in September of 2012 at the Airport. The Airport fund also received substantial grants for the expansion and improvement of a specified taxiway. Combined results of operations for the airport, golf courses, dinosaur park and recreation funds were negative $1,918,149. Depreciation expense accounts for $1,045,083 of the loss from operations for a net of $873,066. General Fund Budgetary Highlights Ogden City prepares its budget according to state statutes. The most significant budgeted fund is the General Fund. The City amended the General Fund budget several times during the year to meet the needs of the departments as issues arose and as additional funding sources became available. The most significant change to the original budget was an addition of $5,283,473 for various federal grants. Actual General Fund revenues were $434,662 or less than 1.0 percent below the original budget and $6,874,378 or 10.8 percent below the final budget. Actual expenditures were $1,106,989 or 2.0 percent below the original budget and $8,416,030 or 13.5 percent below the final budget. The original budgeted revenues in the general fund anticipated level sales tax and a decrease in building permit fee revenues. OTHER MATTERS Current and Future Projects The City and the Ogden Redevelopment Agency are involved in significant development projects downtown including the targeted creation of 4,000 new jobs and the addition of market rate housing units to support an additional 4,000 residents over the next four years. In addition, there are increased opportunities for jobs in the industrial, retail and service markets. These projects have been effected by the lagging economy, but have not dissolved. The City obtained a loan from the State of Utah, approved by the Drinking Water Board for $4,000,000 in July of 2012. The loan will be funded, in whole or in part, from the proceeds of a federal SRF Capitalization Grant to the State of Utah. The purpose of the loan is to replace approximately 4 miles of a 24 inch diameter steel pipeline with numerous leaks and risk of upstream contamination. The pipeline runs through Ogden Canyon and provides a major source of drinking water for the City. Other matters are addressed in the transmittal letter beginning on page 4 of this document. REQUESTS FOR INFORMATION This financial report is designed to provide our citizens, taxpayers, and creditors with a general overview of Ogden City’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning any of the information in this report or any other matters related to the City’s finances should be addressed to the Ogden City Comptroller, 2549 Washington Blvd., Ogden, Utah, 84401. 24 ---PAGE BREAK--- Basic Financial Section 25 25 ---PAGE BREAK--- 26 26 ---PAGE BREAK--- Governmental Business-type Activities Activities Total ASSETS Current assets Cash and investments $ 16,098,997 $ 31,921,371 $ 48,020,368 Receivables (net of allowance for uncollectibles): Accounts 3,822,126 9,094,419 12,916,545 Taxes 21,829,748 - 21,829,748 Special assesments 105,351 - 105,351 Prepaid items 42,346 409,839 452,185 Inventory, at cost 1,105,447 61,092 1,166,539 Internal balances 923,138 (923,138) - Total current assets 43,927,153 40,563,583 84,490,736 Noncurrent assets Notes receivable 750,000 552,842 1,302,842 Restricted assets: Cash 328,475 39,125 367,600 Accounts receivable 83,533 - 83,533 Interest receivable 38,808 - 38,808 Grant loans 11,750,381 - 11,750,381 Investments 1,272,173 6,530,240 7,802,413 Total restricted assets 14,223,370 7,122,207 21,345,577 Capital assets: Land 19,061,207 36,830,411 55,891,618 Construction-in-progress 3,226,693 2,799,995 6,026,688 Infrastructure 99,790,208 - 99,790,208 Buildings and improvements 115,138,714 254,712,222 369,850,936 Machinery and equipment 29,547,576 1,376,584 30,924,160 Intangibles 230,926 717,658 948,584 Less: accumulated depreciation (95,171,157) (86,001,052) (181,172,209) Net capital assets 171,824,168 210,435,818 382,259,986 Deferred charges 2,174,436 1,462,133 3,636,569 Land held-for-community development 2,800,394 - 2,800,394 Total noncurrent assets 191,022,368 219,020,158 410,042,526 Total assets 234,949,520 259,583,741 494,533,262 LIABILITIES Current liabilities Accounts payable 3,231,591 3,391,700 6,623,291 Accrued wages payable 378,035 104,986 483,021 Accrued compensated absences 891,193 253,055 1,144,248 Claims payable 981,850 270,862 1,252,712 Other payables and liabilities 1,601,267 1,110,309 2,711,576 Line-of-credit 422,104 - 422,104 Unearned revenue 33,296,117 500,556 33,796,673 Accrued bond interest 271,173 147,885 419,058 Customer deposits - 408,458 408,458 Other noncurrent liabilities, due within one year 8,410,644 1,626,000 10,036,644 Total current liabilities 49,483,974 7,813,811 57,297,785 Noncurrent liabilities Accrued investment derivative losses 3,618,518 - 3,618,518 Due in more than one year 59,687,585 53,143,231 112,830,816 Total liabilities 112,790,077 60,957,042 173,747,119 NET ASSETS Investment in capital assets, net of related debt 106,921,454 162,826,097 269,747,551 Restricted - expendable: Grants and other programs 1,200,816 - 1,200,816 Grant loans 11,750,381 - 11,750,381 Debt service 849,687 349,829 1,199,516 Restricted - nonexpendable 422,486 - 422,486 Unrestricted 1,014,620 35,450,773 36,465,393 Total net assets $ 122,159,444 $ 198,626,699 $ 320,786,143 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF NET ASSETS June 30, 2012 27 ---PAGE BREAK--- Page 1 of 2 Operating Capital Function/Programs Charges for Grants and Grants and Primary government: Expenses Services Contributions Contributions Governmental activities: General administration 24,173,956 $ 14,717,254 $ - $ - $ Public safety 25,742,362 3,354,242 1,123,877 62,309 Transportation 5,236,900 295,025 - 2,569,403 Environmental protection 582,561 3,372,530 363,704 - Leisure opportunities 6,047,729 420,549 - 416,471 Community development 5,782,149 2,225,389 2,174,581 2,007,392 Interest on long-term debt 4,507,901 - - - Total governmental activities 72,073,559 24,384,989 3,662,162 5,055,575 Business-type activities: Medical services 5,136,183 6,873,003 - - Airport 1,991,983 321,301 - 2,557,380 Utilities 26,358,238 31,168,887 - 1,188,803 Refuse 4,563,104 4,945,202 - - Recreation 1,567,052 1,315,396 - - Property management 4,689,194 3,580,846 - - Total business-type activities 44,305,754 48,204,635 - 3,746,183 Total primary government 116,379,313 $ 72,589,624 $ 3,662,162 $ 8,801,758 $ General revenues: Taxes: Property Sales Franchise City Utility Motor vehicle fee-in-lieu Unrestricted investment earnings Gain (loss) on sale of capital assets Total general revenues Donations Transfers Change in net assets Net assets - beginning - restated (See footnote 18) Net assets - ending The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF ACTIVITIES Year Ended June 30, 2012 Program Revenues 28 28 ---PAGE BREAK--- Page 2 of 2 Governmental Business-type Activities Activities Total (9,456,702) $ - $ (9,456,702) $ (21,201,934) - (21,201,934) (2,372,472) - (2,372,472) 3,153,673 - 3,153,673 (5,210,709) - (5,210,709) 625,213 - 625,213 (4,507,901) - (4,507,901) (38,970,833) - (38,970,833) - 1,736,820 1,736,820 - 886,698 886,698 - 5,999,452 5,999,452 - 382,098 382,098 - (251,656) (251,656) - (1,108,348) (1,108,348) - 7,645,064 7,645,064 (38,970,833) 7,645,064 (31,325,769) 22,073,187 - 22,073,187 13,114,018 - 13,114,018 7,578,906 - 7,578,906 278,894 - 278,894 752,549 - 752,549 330,980 331,707 662,687 (366,610) 39,340 (327,270) 43,761,924 371,047 44,132,971 - (586,286) (586,286) 3,525,450 (3,525,450) - 47,287,374 (3,740,689) 43,546,685 8,316,542 3,904,375 12,220,917 113,842,902 194,722,324 308,565,226 122,159,444 $ 198,626,699 $ 320,786,143 $ Primary Government Net (Expense) Revenue and Changes in Net Assets 29 29 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 30 30 ---PAGE BREAK--- Governmental Fund Financial Statements General Fund To account for resources traditionally associated with governments which are not required to be accounted for in another fund. Debt Service Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Redevelopment Agency A special revenue fund used to account for the specific revenues that are legally restricted to expenditures for the City's redevelopment activities, including payment of redevelopment agency debt. Nonmajor Governmental Funds Nonmajor governmental funds are presented beginning on page 91. 31 ---PAGE BREAK--- Page 1 of 2 Special Revenue Debt Redevelopment General Service Agency ASSETS Cash and investments $ 4,378,668 $ - $ 3,755,516 Due from other funds 674,628 - - Receivables (net of allowance for uncollectibles): Accounts 3,174,244 - 134,631 Taxes 11,245,054 - 10,584,694 Special assessments - - - Loans to other funds 2,399,557 - - Notes receivable - - 750,000 Inventory, at cost 55,190 - - Restricted assets: Cash 326,523 - 1,952 Interest receivable - - 25,644 Prepaid items 42,346 - - Investments / grant loans 11,750,381 - 452,555 Loans to other funds, net of allowance 1,020,001 - 1,588,230 Other assets - land held for redevelopment - - 2,800,394 Total assets $ 35,066,592 $ - $ 20,093,616 LIABILITIES Due to other funds $ - $ 18,827 $ - Accounts payable 1,527,607 - 281,951 Accrued wages payable 337,674 - - Other payables and liabilities 1,458,339 - - Loans from other funds - - 4,650,421 Short-term notes payable 422,104 - - Deferred revenue 22,345,423 - 11,334,694 Total liabilities 26,091,147 18,827 16,267,066 FUND BALANCE Nonspendable: Permanent fund principal - - - Inventory 55,190 - - Prepaid expenses 42,346 - - Long-term loans to other funds 1,020,001 - - Land held for redevelopment - - 2,800,394 Spendable: Restricted: Debt service reserve 76,523 (18,827) 454,507 Unspent bond proceeds - - Revolving loan program capital 250,000 - - Assigned: Accrued compensated absences 845,754 - - Downtown business promotion 202,781 - - Major and misc. grant activity 1,930,018 - - City Council 46,626 - - Management services 70,319 Non-departmental 85,000 - - Community and economic development 112,259 - Police 46,500 - - Public services 631,509 - - Debt service - - - Capital projects - - - Special revenue - - 571,649 Unassigned 3,560,619 - - 8,975,445 (18,827) 3,826,550 Total liabilities and fund balances $ 35,066,592 $ - $ 20,093,616 The notes to the financial statements are an integral part of this statement. GOVERNMENTAL FUNDS OGDEN CITY CORPORATION BALANCE SHEET June 30, 2012 32 ---PAGE BREAK--- Page 2 of 2 Non-Major Total Governmental Governmental Funds Funds $ 7,022,454 $ 15,156,638 - 674,628 124,276 3,433,151 - 21,829,748 105,351 105,351 - 2,399,557 - 750,000 81,150 136,340 - 328,475 13,164 38,808 - 42,346 819,618 13,022,554 15,873 2,624,104 - 2,800,394 $ 8,181,886 $ 63,342,094 $ - $ 18,827 245,588 2,055,146 3,673 341,347 - 1,458,339 - 4,650,421 - 422,104 146,000 33,826,117 395,261 42,772,301 403,922 403,922 81,150 136,340 - 42,346 15,873 1,035,874 2,800,394 - 512,203 415,696 415,696 - 250,000 - 845,754 237,608 440,389 - 1,930,018 - 46,626 - 70,319 5,500 90,500 - 112,259 - 46,500 388,945 1,020,454 215,000 215,000 3,605,873 3,605,873 2,417,058 2,988,707 - 3,560,619 7,786,625 20,569,793 $ 8,181,886 $ 63,342,094 33 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 34 34 ---PAGE BREAK--- OGDEN CITY CORPORATION Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets June 30, 2012 Total Fund Balances - Governmental Funds $ 20,569,793 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets in governmental activities are not financial resources and therefore are not reported in governmental funds. These assets consist of the following (excluding internal service fund activity): Land $ 19,052,207 Infrastructure 99,790,208 Other capital assets 119,221,312 Accumulated depreciation (75,245,291) 162,818,437 Bond issuance costs are assets that are reported for governmental activities, but not in the governmental funds as they are considered to be long-term and amortized over the life of the associated liabilities. 2,174,436 Certain liabilities, including those related to investment derivatives and accrued interest, are not liquidated with current financial resources and thus are not recorded in the fund statements. (3,889,691) Management uses internal service funds to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are reported with governmental activities in the Statement of Net Assets. 4,348,795 Property taxes levied for the current or prior periods that are estimated to be collectible after year end, but are not available by definition to pay for the current period's expenditures are reported as unearned revenue in the funds. 530,000 Some liabilities are not due and payable in the current year and therefore are not reported in the governmental funds. These liabilities and related costs consist of the following (excluding internal service fund activity): Long-term debt, governmental activities (footnote 8) (69,971,274) Compensated absences, governmental activities (footnote 8) 2,963,060 Capital leases, internal service funds 3,390,174 Claims payable, internal service funds 2,037,309 (61,580,731) Compensated absences, governmental activities (footnote 8) (2,963,060) Compensated absences, internal service funds 151,465 (2,811,595) (64,392,326) Net Assets of Governmental Activities $ 122,159,444 The notes to the financial statements are an integral part of this statement. 35 35 ---PAGE BREAK--- Page 1 of 2 Special Revenue Debt Redevelopment General Service Agency REVENUES: Taxes and special assessments $ 35,865,785 $ 523 $ 11,839,283 Licenses and permits 2,285,419 - - Intergovernmental 7,385,017 - - Charges for services 6,557,954 - 695,814 Fines and forfeitures 2,930,273 - - Miscellaneous 1,185,708 - - Outside donations 36,250 - - Interest 148,198 1,742 101,633 Sale of property 16,833 - 262,729 Total revenues 56,411,437 2,265 12,899,459 EXPENDITURES: Current: Mayor 477,079 - - City council 790,373 - - Management services 4,594,890 - - Corporate counsel 1,065,323 - - Non-departmental 3,029,171 - - Police 16,453,708 - - Fire 6,727,145 - - Public services 9,873,168 - - Community and economic development 8,394,772 - 4,447,911 Debt service: Principal 2,022,000 - 5,160,000 Interest and fiscal charges 417,356 - 2,461,398 Bond Issuance Costs 34,500 - 70,750 Total expenditures 53,879,485 - 12,140,059 Excess (deficiency) of revenues over expenditures 2,531,952 2,265 759,400 OTHER FINANCING SOURCES (USES): Issuance of refunding bonds 1,737,000 - 5,375,000 Refunded bonds redeemed (1,680,000) - (5,790,000) Transfers in 20,000 - 4,741,204 Transfers out (1,049,100) - (5,989,097) Total other financing sources (uses) (972,100) - (1,662,893) Net change in fund balances 1,559,852 2,265 (903,493) Fund balance at beginning of year, restated 7,415,593 (21,092) 4,730,043 Fund balance at end of year $ 8,975,445 $ (18,827) $ 3,826,550 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUND Year Ended June 30, 2012 36 ---PAGE BREAK--- Page 2 of 2 Non-Major Total Governmental Governmental Funds Funds $ 229,966 $ 47,935,557 - 2,285,419 207,650 7,592,667 544,757 7,798,525 - 2,930,273 258,000 1,443,708 - 36,250 56,334 307,907 - 279,562 1,296,707 70,609,868 - 477,079 - 790,373 - 4,594,890 - 1,065,323 354,161 3,383,332 - 16,453,708 - 6,727,145 1,027,072 10,900,240 151,348 12,994,031 295,000 7,477,000 244,204 3,122,958 - 105,250 2,071,785 68,091,329 (775,078) 2,518,539 - 7,112,000 - (7,470,000) 1,181,775 5,942,979 (76,350) (7,114,547) 1,105,425 (1,529,568) 330,347 988,971 7,456,278 19,580,822 $ 7,786,625 $ 20,569,793 37 ---PAGE BREAK--- OGDEN CITY CORPORATION Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities Year Ended June 30, 2012 Net Change in Fund Balances-Total Governmental Funds 988,971 $ Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported as expenditures in the governmental funds. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. In the current year, these amounts were as follows (excluding internal service fund activity): Capital outlay 2,647,689 $ Depreciation expense (5,130,277) (2,482,588) Debt proceeds provide current financial resources to governmental funds; however, issuing debt increases long-term liabilities in the Statement of Net Assets. In the current year, proceeds were received from issuing bonds including bond discounts. (7,112,000) Changes in long-term compensated absences are expensed in the governmental funds. However, in the Statement of Activities, changes in long- term compensated absences are applied to long-term debt balances 55,453 Repayment of long-term debt is reported as an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Activities 14,947,000 Revenues recognized in prior periods in the Statement of Activities that first became available as revenue in the governmental funds during the current period must be removed from fund revenue and reflected as an adjustment to government-wide net assets. (575,000) Property taxes levied for the current or prior periods that are estimated to be collectible after year end, but are not available by definition to pay for the current period's expenditures are reported as unearned revenue in the funds 530,000 Management uses internal service funds to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities (704,854) Management reassigned certain assets of an enterprise fund to the general fixed assets of the City. The transaction is treated as a capital contribution in the enterprise fund. The transfer-in is recognized in the government-wide statement of activities 4,478,616 Capital contribution of assets are made to the City throughout the year by various outside donors which are not recorded in the governmental funds. 73,821 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. These activities consist of the following: Change in accrued bond interest 109,664 Change in loss on investment derivatives (GASB 53) (1,093,739) Gain (loss) on disposal of general capital assets (903,264) Capitalization of bond issuance costs 105,378 Amortization of bond premiums, discounts and costs (100,916) (1,882,877) Change in Net Assets of Governmental Activities 8,316,542 $ The notes to the financial statements are an integral part of this statement. 38 38 ---PAGE BREAK--- Proprietary Fund Financial Statements Water Utility Fund To account for the provision of water to City residents and some residents of Weber County. All activities necessary to provide such services are accounted for in this fund including, but not limited to: administration (utility director), operations, maintenance, financing, related debt service, billing and collection. Sewer Utility Fund To account for the provision of sewer services to City residents and some residents of Weber County. All activities necessary to provide such services are accounted for in this fund including, but not limited to: operations, maintenance, financing, related debt service, billing and collection. Refuse Utility Fund To account for the service of refuse collection and disposal for City residents and some residents of Weber County. All activities necessary to provide such services are accounted for in this fund including, but not limited to: administration, operation, maintenance, billing and collecting. Medical Services Fund To account for ambulance and paramedic services provided by the City. Business Development Ogden (BDO) Property Management To account for revenues and expenditures related to the development of the Business Development Ogden business park formally known as the Defense Depot of Ogden. Nonmajor Enterprise Funds Nonmajor enterprise funds are presented beginning on page 99. Governmental Activities - Internal Service Funds These funds account for certain activities that are charged to the other departments on a cost-reimbursement basis. These funds are presented beginning on page 106. 39 ---PAGE BREAK--- Page 1 of 4 Water Sewer Refuse ASSETS Current assets Cash $ 7,527,754 $ 14,100,005 $ - Accounts receivable (net) 2,420,661 1,856,953 554,091 Inventory, at cost - - - Prepaid expenses 409,839 - - Loans to other funds - - 2,042,191 Total current assets 10,358,254 15,956,958 2,596,282 Noncurrent assets Deferred charge 1,198,799 263,334 - Notes receivable - - 552,843 Total deferred charges 1,198,799 263,334 552,843 Restricted assets: Cash 5,921 - 32,209 Employee PC loans receivable - - - Investments 5,403,850 808,770 317,620 Total restricted assets 5,409,771 808,770 349,829 Capital assets: Land 483,544 1,276,606 502,250 Buildings 2,139,395 - 1,110,983 Improvements 82,869,738 39,612,576 - Construction-in-process - - - Office furniture 319,515 - - Equipment 824,089 84,295 - Vehicles - - - Intangibles 717,658 - - Total capital assets 87,353,939 40,973,477 1,613,233 Less accumulated depreciation / amortization (20,801,104) (8,568,373) (521,341) Net capital assets 66,552,835 32,405,104 1,091,892 Total noncurrent assets 73,161,405 33,477,208 1,994,564 Total assets $ 83,519,659 $ 49,434,166 $ 4,590,846 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2012 40 40 ---PAGE BREAK--- Page 2 of 4 BDO Non-Major Medical Property Enterprise Total Services Management Funds Total Internal Service $ 2,244,003 $ 7,599,930 $ 449,679 $ 31,921,371 $ 942,359 1,898,623 855,529 1,508,562 9,094,419 388,975 - - 61,092 61,092 969,107 - - - 409,839 - - - - 2,042,191 - 4,142,626 8,455,459 2,019,333 43,528,912 2,300,441 - - - 1,462,133 - - - - 552,843 - - - - 2,014,976 - - - 995 39,125 - - - - - 83,533 - - - 6,530,240 - - - 995 6,569,365 83,533 - 32,591,750 1,976,261 36,830,411 9,000 - 101,382,023 1,599,144 106,231,545 1,603,918 - 5,461 25,992,902 148,480,677 293,877 - - 2,799,995 2,799,995 32,615 - - 12,841 332,356 13,586 127,754 - 8,090 1,044,228 11,813,751 - - - - 14,933,924 - - - 717,658 230,926 127,754 133,979,234 32,389,233 296,436,870 28,931,597 (39,488) (40,608,826) (15,461,920) (86,001,052) (19,925,866) 88,266 93,370,408 16,927,313 210,435,818 9,005,731 88,266 93,370,408 16,928,308 219,020,159 9,089,264 $ 4,230,892 $ 101,825,867 $ 18,947,641 $ 262,549,071 $ 11,389,705 41 41 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2012 Page 3 of 4 Water Sewer Refuse LIABILITIES AND NET ASSETS LIABILITIES: Current liabilities Due to other funds $ - $ - $ 386,838 Accounts payable 1,214,366 495,527 100,711 Contracts payable - - - Retainage payable 46,992 7,524 - Claims payable - - - Unearned revenue - 9,518 - Accrued wages payable 31,126 16,535 7,773 Accrued compensated absences 102,338 26,862 24,200 Other accrued payables 623,398 486,911 - Deposits payable 408,458 - - Revenue bonds/note payable 1,014,900 361,100 250,000 Accrued bond interest 112,208 32,898 2,779 Total current liabilities 3,553,786 1,436,875 772,301 Noncurrent liabilities Revenue bonds/note payable 42,312,229 9,093,989 1,130,000 Claims payable - - - Contracts payable - - - Compensated absences 238,789 62,678 56,473 Loans from other funds - - - Total noncurrent liabilities 42,551,018 9,156,667 1,186,473 Total liabilities 46,104,804 10,593,542 1,958,774 NET ASSETS: Investment in capital assets (net of related debt) 28,635,477 23,758,785 61,721 Restricted for debt service - - 349,829 Unrestricted 8,779,378 15,081,839 2,220,522 Total net assets $ 37,414,855 $ 38,840,624 $ 2,632,072 The notes to the financial statements are an integral part of this statement. 42 42 ---PAGE BREAK--- Page 4 of 4 BDO Non-Major Medical Property Enterprise Total Services Management Funds Total Internal Service $ - $ - $ 163,062 $ 549,900 $ 105,901 39,003 510,842 1,031,251 3,391,700 1,176,445 - - - - 654,644 - - 216,346 270,862 - - - - - 981,850 - - 491,038 500,556 - 32,299 996 16,257 104,986 36,688 78,897 - 20,758 253,055 45,439 - - - 1,110,309 142,928 - - - 408,458 - - 0 - 1,626,000 - - - - 147,885 - 150,199 511,838 1,938,712 8,363,711 3,143,895 - - - 52,536,218 - - - - - 1,055,459 - - - - 2,735,530 184,093 - 64,980 607,013 106,026 - - 2,415,430 2,415,430 - 184,093 - 2,480,410 55,558,661 3,897,015 334,292 511,838 4,419,122 63,922,372 7,040,910 88,266 93,370,408 16,911,440 162,826,097 5,615,557 - - - 349,829 34,449 3,808,334 7,943,621 (2,382,921) 35,450,773 (1,301,211) $ 3,896,600 $ 101,314,029 $ 14,528,519 $ 198,626,699 $ 4,348,795 43 43 ---PAGE BREAK--- Page 1 of 2 Water Sewer Refuse OPERATING REVENUES: Charges for services $ 14,849,728 $ 14,693,601 $ 4,944,051 Special district fees 819,678 - - Accounting charges 800,029 - - Intergovernmental - - - Miscellaneous income 2,753 3,098 1,151 Total revenue 16,472,188 14,696,699 4,945,202 OPERATING EXPENSES: Cost of materials and parts - - - Personal services: Salaries and wages 2,258,601 859,957 574,841 Benefits 1,130,508 400,062 247,866 Supplies: Office supplies 174,775 256 965 Operating supplies 331,423 120,379 13,487 Repair and maintenance supplies 76,900 1,999 - Charges for services: Sewer district charges - 4,005,156 - Disposal charges - - 916,988 Public utility services 477,333 4,150 3,075 Travel and education 19,298 5,685 1,872 Contracted agreements 1,498,206 1,229,458 82,428 Other operating expenses: Rental charges 104,508 61,874 63,220 Fiscal charges 2,524,412 2,723,662 1,012,686 Depreciation / amortization 1,970,354 717,151 43,934 Data processing and computer equipment 519,032 60,950 28,000 Maintenance and repair 444,985 326,228 113,382 Vehicle operating expenses 545,457 389,805 1,298,830 Water purchase 936,365 - - Claims payments - - - Miscellaneous 44,268 889 145,715 Total operating expenses 13,056,425 10,907,661 4,547,289 Operating income (loss) 3,415,763 3,789,038 397,913 NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income 112,930 95,175 3,128 Gain on sale of assets 39,340 - - Expenses: Donation - (586,286) - Interest expense (2,079,986) (314,166) (15,815) Total non-operating revenues (expenses) (1,927,716) (805,277) (12,687) Capital contributions 210,666 1,297,964 - Income before operating transfers 1,698,713 4,281,725 385,226 Transfers in - - - Transfers out (2,200) (21,150) - Change in net assets 1,696,513 4,260,575 385,226 Net assets, beginning 35,718,342 34,580,049 2,246,846 Net assets, ending $ 37,414,855 $ 38,840,624 $ 2,632,072 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS Year Ended June 30, 2012 44 44 ---PAGE BREAK--- Page 2 of 2 BDO Non-Major Internal Medical Property Enterprise Service Services Management Funds Total Funds $ 5,172,912 $ 3,580,846 $ 1,543,778 $ 44,784,916 $ 13,516,153 - - - 819,678 - - - - 800,029 - 1,700,091 - - 1,700,091 - - - 92,919 99,921 239,612 6,873,003 3,580,846 1,636,697 48,204,635 13,755,765 - - 143,556 143,556 2,652,615 2,313,638 39,876 868,680 6,915,593 2,054,975 1,142,040 16,479 266,154 3,203,109 877,208 2,779 - 6,387 185,162 63,182 282,977 - 94,556 842,822 76,151 4,713 - 5,097 88,709 3,550 - - - 4,005,156 - - - - 916,988 - 75,692 - 171,733 731,983 1,235,154 10,918 - 11,053 48,826 33,795 474,351 532,009 139,149 3,955,601 2,907,033 8,189 - 974 238,765 100,026 303,545 - 7,437 6,571,742 - 11,425 4,100,830 1,045,083 7,888,777 2,128,248 75,000 - 26,075 709,057 632,927 51,247 - 431,422 1,367,264 87,620 370,122 - 255,220 2,859,434 126,554 - - - 936,365 - - - - - 1,313,298 9,547 - 82,270 282,689 272,502 5,136,183 4,689,194 3,554,846 41,891,598 14,564,838 1,736,820 (1,108,348) (1,918,149) 6,313,037 (809,073) 69,002 50,508 964 331,707 16,953 - - - 39,340 280,837 - - - (586,286) - - - (4,189) (2,414,156) (334,796) 69,002 50,508 (3,225) (2,629,395) (37,006) - - 2,557,380 4,066,010 272,912 1,805,822 (1,057,840) 636,006 7,749,652 (573,167) - 2,600,000 1,499,300 4,099,300 - - (5,207,948) (2,713,279) (7,944,577) (131,687) 1,805,822 (3,665,788) (577,973) 3,904,375 (704,854) 2,090,778 104,979,817 15,106,492 194,722,324 5,053,649 $ 3,896,600 $ 101,314,029 $ 14,528,519 $ 198,626,699 $ 4,348,795 45 45 ---PAGE BREAK--- Year Ended June 30, 2012 Page 1 of 4 Water Sewer Refuse CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 15,739,450 $ 14,185,404 $ 4,884,922 Cash received (paid) from (to) other funds - - 386,838 Cash payments to suppliers for goods and services (8,236,034) (9,086,263) (3,685,243) Cash payments to employees for services (3,434,134) (1,286,982) (835,516) Net cash from operating activities 4,069,282 3,812,159 751,001 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in - - - Transfers out (2,200) (21,150) - PC loans paid - - - Net cash from noncapital financing activities (2,200) (21,150) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (8,955,509) (2,655,747) - Capital grants and contributions - 981,965 - Principal paid on revenue bonds (975,083) (359,376) (235,000) Interest paid on revenue bonds (2,346,339) (380,160) (50,151) Change in deferred charges - - (550,000) Change in interfund loans - - - Payments on contracts payable - - - Interest expense on loans - - - Proceeds from sale of assets 39,340 - - Net cash from capital and related financing activities (12,237,591) (2,413,318) (835,151) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 112,930 95,175 285 Change in restricted investments 12,793,798 1,910,694 - Interest expense on cash deficit - - - Net cash from investing activities 12,906,728 2,005,869 285 Net increase (decrease) in cash equivalents 4,736,219 3,383,560 (83,865) Cash/equivalents at beginning of year 2,797,456 10,716,445 116,074 Cash/equivalents at end of year $ 7,533,675 $ 14,100,005 $ 32,209 Cash/equivalents, end of year (unrestricted) 7,527,754 14,100,005 - Cash/equivalents, end of year (restricted) 5,921 - 32,209 Total cash/equivalents, end of year $ 7,533,675 $ 14,100,005 $ 32,209 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS 46 ---PAGE BREAK--- Page 2 of 4 BDO Non-Major Internal Medical Property Enterprise Service Services Management Funds Totals Funds $ 5,952,715 $ 3,660,579 $ 2,089,957 $ 46,513,027 $ 13,503,915 - - 66,023 452,861 105,901 (1,645,288) (305,415) (562,242) (23,520,485) (7,976,680) (3,533,247) (56,830) (1,187,058) (10,333,767) (2,983,006) 774,180 3,298,334 406,680 13,111,636 2,650,130 - 2,600,000 1,499,300 4,099,300 - - (2,977,775) (500) (3,001,625) (69,378) - - - - (8,547) - (377,775) 1,498,800 1,097,675 (77,925) (72,930) - (2,698,464) (14,382,650) (3,888,513) - (2,230,173) 1,096,486 (151,722) 210,603 - - - (1,569,459) - - - - (2,776,650) - - - - (550,000) - - - (339,300) (339,300) - - (103,790) 216,346 112,556 (565,581) - - - - (333,646) - - - 39,340 109,723 (72,930) (2,333,963) (1,724,932) (19,617,885) (4,467,414) 69,002 50,508 964 328,864 16,954 - - - 14,704,492 - - - (108) (108) - 69,002 50,508 856 15,033,248 16,954 770,252 637,104 181,404 9,624,674 (1,878,255) 1,473,751 6,962,826 269,270 22,335,822 2,820,614 $ 2,244,003 $ 7,599,930 $ 450,674 $ 31,960,496 $ 942,359 2,244,003 7,599,930 449,679 31,921,371 942,359 - - 995 39,125 - $ 2,244,003 $ 7,599,930 $ 450,674 $ 31,960,496 $ 942,359 47 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2011 Page 3 of 4 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Water Sewer Refuse Operating income (loss) $ 3,415,763 $ 3,789,038 $ 397,913 Reconciliation adjustments: Depreciation 1,970,354 717,151 43,934 Changes in assets and liabilities: Change in accounts receivable (732,738) (511,295) (60,280) Change in inventory - - - Change in prepaid expenses (5,546) - - Change in due to other funds - - 386,838 Change in accounts payable (569,208) (216,413) (4,595) Change in deposits payable 11,483 - - Change in unearned revenue - 8,573 - Change in other accrued liabilities 24,199 52,077 - Change in wages payable and compensated absences (45,025) (26,972) (12,809) Total adjustments 653,519 23,121 353,088 Net cash provided by (used in) operating activities $ 4,069,282 $ 3,812,159 $ 751,001 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: The Water and Sewer funds recorded capital contributions from Business Depot Ogden in the amount of $210,666 and $315,999, respectively. The Water and Sewer funds recorded amortization expense of bond issuance costs in the amount of $53,311 and $15,176, respectively. The Sewer fund donated property with a carrying value of $586,286. The Refuse fund recorded an accrual of interest revenue from a note receivable in the amount of $2,843. The Dino Park fund transferred capital assets to the general fund that had a carrying value of $2,712,799. The Fleet, Facilities, Electronics and Stores internal service fund recorded a capital lease in the amount of $3,443,959, which financed the purchase of capital assets and the payoff an existing lease. The notes to the financial statements are an integral part of this statement. 48 ---PAGE BREAK--- Page 4 of 4 BDO Non-Major Internal Medical Property Enterprise Service Services Management Funds Totals Funds $ 1,736,820 $ (1,108,348) $ (1,918,149) $ 6,313,037 $ (809,073) 11,425 4,100,830 1,045,083 7,888,777 2,128,248 (920,288) 79,733 453,260 (1,691,608) (251,850) - - 11,663 11,663 4,191 - - - (5,546) 950,086 - - 66,023 452,861 105,901 23,792 226,594 846,050 306,220 830,092 - - - 11,483 - - - (12,491) (3,918) - - - - 76,276 (256,642) (77,569) (475) (84,759) (247,609) (50,823) (962,640) 4,406,682 2,324,829 6,798,599 3,459,203 $ 774,180 $ 3,298,334 $ 406,680 $ 13,111,636 $ 2,650,130 49 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Ogden conform in all material respects to generally accepted accounting principles (GAAP) as applicable to governments. The City has adopted the provisions of the Governmental Accounting Standards Board (GASB). Preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. The following is a summary of the more significant policies and is presented to assist the reader in interpreting the financial statements and other data in this report. These policies, as presented, should be viewed as an integral part of the accompanying financial statements. A. Reporting Entity Ogden City Corporation was incorporated February 6, 1851 by the General Assembly of the State of Deseret. Ogden became a home rule charter city on June 29, 1851. The City operates under a Mayor-Council form of government and provides the following services as authorized by its charter: police and fire protection, planning and engineering, code enforcement, street maintenance, traffic control, parks operation and maintenance, recreation services, community development, general administrative services, water, sewer and solid waste services and airport services. The criteria set forth by generally accepted accounting principles (GAAP) was used to determine which entities to include in this report. GASB Concepts Statement-1 (Objectives of Financial Reporting) concludes that the basic foundation for governmental financial reporting is accountability. The Concepts Statement asserts that accountability requires governments to answer to the citizenry - to justify the raising of public resources and the purposes for which they are used. In turn, the concept of accountability becomes the basis for defining the financial reporting entity. Under GASB-14 (The Financial Reporting Entity) the financial reporting entity consists of the following: A. The primary government B. Organizations for which the primary government is financially accountable C. Other organizations that, because of the nature and significance of their relationship with the primary government, exclusion from the reporting entity would render the financial statements misleading or incomplete Blended component units, although legally separate entities, are in substance part of the government’s operations. They are reported as part of the primary government and blended with the appropriate funds. The accompanying financial statements include all activities of the City and Ogden Redevelopment Agency (RDA). The RDA was included because the separate governing bodies of both entities are comprised of the same individuals and the City is financially accountable for the RDA. The financial statements also include activities of the Ogden Municipal Building Authority. The Building Authority governing body is comprised of the same individuals as the City Council and was created to purchase condominium space in the office building that houses most city administrative departments as well as the City Council. Revenue comes from a lease with the City. Both the Ogden Redevelopment Agency and the Ogden Municipal Building Authority are included in the accompanying financial statements as blended component units. B. Government-wide and Fund Financial Statements The City’s basic financial statements consist of both government-wide statements and fund statements. The government-wide statements focus on the City as a whole, while the fund statements focus on individual funds. 50 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 Government-wide Financial Statements The government-wide statements present information on all activities of the primary government. Primary government activities are distinguished between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The effects of interfund activity have been eliminated from the government-wide statements except for the residual amounts due between governmental and business-type activities. The Statement of Net Assets presents the City’s assets and liabilities, with the difference reported as net assets. Net assets are restricted when constraints placed upon them are either externally imposed or are imposed by constitutional provisions or enabling legislation. 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 within a specific function. The City does not allocate general government (indirect) expenses to other functions. 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; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other revenues not meeting the definition of program revenues are reported as general revenues. Fund Financial Statements The financial transactions of the City are recorded in individual funds. A fund is a separate accounting entity with a self-balancing set of accounts. Fund accounting is used to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Separate statements are provided for governmental and proprietary funds. For governmental and proprietary funds, the emphasis is on major funds, with each displayed in a separate column. The City reports the following major governmental funds:  General Fund - This fund is the principal operating fund of the City. It is used to account for and report all financial resources not required to be accounted for in another fund.  Debt Service Fund - This fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds.  Ogden Redevelopment Agency Fund - This special revenue fund accounts for the agency’s redevelopment activities which are supported by property tax increment revenue. The Ogden Redevelopment Agency debt is included in this fund. The City’s remaining governmental funds are considered and reported as nonmajor funds. These funds account for specific revenue sources that are legally restricted to expenditures for specific purposes. Funds included are the Municipal Building Authority, Downtown Special Assessment, and Cemetery Perpetual Care (Special Revenue Funds), the Gomer A. Nicholas Fund, a Permanent Fund, and the Capital Improvement Projects Fund. The nonmajor funds are grouped together in a single column in the basic financial statements and they are displayed individually in the combining statements. Net appreciation in the City’s permanent fund amounted to The original grantor of the funds specified that any annual increase above the original principal endowment is to be invested in the recreational facilities of the City. Based on the original agreement, City policy allows the appropriation of annual interest earnings as reimbursement to departments that have invested in recreational facilities. The City reports the following major proprietary funds:  Water Utility Fund - This enterprise fund accounts for activities necessary to provide water services to residents. 51 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012  Sewer Utility Fund - This enterprise fund accounts for activities necessary to provide sewer services to residents.  Medical Services Fund – This enterprise fund accounts for activities necessary to provide ambulance and paramedic services.  BDO Property Management Fund – This enterprise fund is used to account for operations of the Business Development Ogden project.  Refuse Fund - This enterprise fund accounts for the services of refuse collection and disposal for residents.  Internal Service Fund - These funds account for the financing of services provided by one department or agency to other departments or agencies of the city on a cost reimbursement basis. The City maintains internal service funds for Fleet, Facilities, Electronics and Stores; Information Systems; and Risk Management services. Internal service funds are reported in a single column on the proprietary fund statements and are combined with governmental activities on the government-wide statements. They are also displayed individually in the combining statements. The City’s remaining proprietary funds include Golf Courses, Airport, Dinosaur park and Recreation. These enterprise funds account for their respective business-type activities. C. Measurement Focus and Basis of Accounting The government-wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the related liability is incurred, regardless of the timing of the cash flows. Taxes and fees are recognized in the year in which the related sales or other activity has occurred. Grants and similar items are recognized as revenue when all eligibility requirements have been met. The proprietary fund statements are also prepared using the economic resources measurement focus and the accrual basis of accounting. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues generally result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating items, such as interest expense and investment earnings, result from nonexchange transactions or ancillary activities. For business-type activities and enterprise funds, the City follows all GASB pronouncements and all Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989 unless those standards conflict with a GASB pronouncement. The governmental fund financial statements are prepared and reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. Expenditures are generally recorded when the related liability is incurred. Reconciliations between the government-wide method of reporting governmental net assets and activities and the governmental fund method of reporting are prepared to disclose the items that make up the differences in the two reporting methods. The following are the City’s significant policies related to recognition and reporting of certain revenues and expenditures. Property Tax Revenue Ad valorem (based on value) property taxes constitute a major source of General Fund revenue. Taxes are levied through the passage of an ordinance in June of each year. The levy is applicable to only one fiscal year. All taxable property is required to be assessed and taxed at a uniform and equal rate on the basis of fair market value. The State Tax Commission is required to assess certain statutorily specified types of property including public utilities and mining property. The County Assessor is required to assess all other types of taxable property, and both entities are required to assess the respective types of property as of January 1, the assessment (lien) date. The County is then required to complete the tax rolls by May 15th. By July 21st, the County Treasurer is to mail assessed value and tax 52 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 notices to property owners. Then a taxpayer may petition the County Board of Equalization between August 1st and August 15th for a revi sion of the assessed value. Approved changes in assessed value are made by the County Auditor by November 1st and on this same date the Auditor is to deliver the completed assessment rolls to the County Treasurer. Tax notices are mailed with a due dat e of November 30th, and delinquent taxes are subject to penalty. Unless delinquent taxes and penalties are paid before January 15 th, a lien is attached to the property, and the amount of taxes and penalties bear interest from January 1st until paid. After five y ears delinquent taxes have not been paid, the County sells the property at a tax sale. Tax collections are remitted to the City from the County Statement No. 33, Account ing and Financial Reporting for Nonexchange Transactions, defines a nonexchange transaction as one i n which, “a governm ent either gives value to another party without directly receiving equal value in exchange or receives value from another party without giving equal value in exchange.” For property taxes, at January 1 of each year (the assessment date), the City has the legal right to collect the taxes, and in accordance with the provisions of the statement, has now recorded a receivable and a corresponding deferred revenue for the assessed amount of those property taxes as of January 1, 2012. Revenue Availability Under the modified accrual basis of acc ounting, revenues are considered to be “available” when they are collected within the current period or expected to be collected soon enough thereafter to pay liabilities of the current period. Ogden City considers property tax revenues to be available if they are collected within 60 days after the end of the current year. Grants and sim ilar items are recognized as revenue when all eligibility requirements have been met. All other revenues, including sales taxes, are considered to be available if they are co llected within 60 days after year-end. Expenditure Recognition In governmental funds, expenditures are ge nerally recorded when the related lia bility is incurred. However, debt service expenditures, as wel l as expendi tures related to compensated absences and claims and judgm ents, are recorded only when payment is due. Capital asset acquisitions are reported as expenditures, and proceeds of long- term debt and acquisitions under capital leases are reported as other financing sources. W hen an expenditure is incurred for purposes for whi ch both restricted and unrest ricted resources are available, the City generally uses restricted resources first, then unrestricted resources. Program Revenues Amounts reported as program revenues include 1) charges t o customers or applicants for goods and services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rat her than as program revenues. Likewise, general revenues include all taxes. Proprietary funds Proprietary funds distinguish operating revenues and e xpenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods i n connection with a proprietary fund’s pri ncipal ongoing operations. The pri ncipal operating revenues of the enterprise funds and internal service funds are the result of charges t o customers for sal es and servi ces. Operat ing expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. Assets, Liabilities, and Fund Balances/Net Assets The following are the City’s significant policies regarding recognition and reporting of certain assets, liabilities, and equity. Cash and Cash Equivalents Unrestricted and restricted cash balances of all funds are combined to form a pool of cash and investments which is managed by the City Treasurer. Utah State Statutes allow for investments in the Utah Public Treasurer’s Investment Fund and Utah Money Managem ent Act (UMMA) approved financial institu tions. The UMMA provides for a committee to evaluate financial institutions and provide a list of those qualified as depositories for public funds, including the amount they are authorized to maintain over and above i nsured amounts. The City Treasurer invests unrestricted cash with the Utah Public Treasurer’s Invest ment Fund and with financial institutions on the approved 53 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 list. Investments in the pooled cash fund consi st primarily of certificates of deposit, repurchase agreements, time deposits, commercial paper and government agency securities and are carried at cost which approximates market value. Interest income earned as a resul t of pooling is distributed to the appropriate funds based on month end balances of cash and investments. Short-term investments that are readily convertible to known amounts of cash and have an ori ginal maturity date of three months less are defined as cash equi valents for purposes of the Cash Flow statements. Long-term Investments Investments are reported in accordance with GASB Statements 31 and 40. Investments are reported at fair value or amortized cost. Investment Derivatives (Interest Rate Swaps) The Ogden City Redevelopment Agency (RDA) entered into two Libor-indexed interest rate swaps with JP Morgan Chase Bank, NA (formerly Bear Stearns Capital Markets Inc.) on Novem ber 10, 2005 i n conjunction with the issuance of its $8,900,000 RDA Taxable Variable Rate Revenue Bonds Series 2005B and its $22,400,000 RDA Taxable Variable Rate Bonds Series 2005C-1 and 2005C-2. On Sept ember 30, 2009, t he Series 2005B, 2005C-1 and 2005C-2 bonds were refunded t hrough a current refunding by issuance of the RDA Taxable Variable Rate Revenue Bonds Series 2009A, 2009B-1 and 2009B-2 bonds. The purpose of the refunding was to establish a new credit facility with Wells Fargo Bank given that the original credit facility and extension thereof had expired. This refunding had no effect on the interest rate swap agreements between the RDA and JP M organ Chase Bank, NA. The Series 2009A B onds are pai d from lease revenues deri ved from a commercial lease agreement. The Series 2009B-1 and 2009B-2 bonds are paid with tax increment and lease revenues. Objective: The RDA entered into the Swap Agreements to hedge its exposure to interest rate volatility on the Bonds and to create a fixed rate for the bonds during the first 10 years of the 2005 Bond financing. Notional Amount: The notional amounts of the swaps as of June 30, 2012 are $7,849,121 and $18,598,516 for the 2009A and 2009B-1 and 2009B-2, respectively. Fair Value: As of June 30, 2012 t he following mid-market values based upon the market close rate data provided by Bloomberg Financial were: $8.9M - 100% Libor Swap ($992,879) and $22.4M - 100% Libor Swap ($2,625,639). A requirement of the implementation process was to test for hedge effectiveness of the swap agreements. The swap agreements held by the City were d etermined to be ineffective hedges. Giv en this determination, the standard requires that the swaps be reported as investment derivatives. The fair value and the changes in the fair value of the investment derivatives are reported as a reduction in unrestricted investment earnings on the statement of activities and as a reduction in cash and investments on the Statement of Net Assets in the amount of ($3,618,518). Interest Rate risk: The Series 2005 B onds were i ssued November 29, 2005, whi ch is the same day the Swap became effective and rem ains in effect with the Series 2009 bonds. The Series 2009A bonds am ortize over a 22 year period ending June 1, 2031 and the Series 2009B bonds am ortize over an 18 year period ending Decem ber 1, 2027. The swap term inates on Decem ber 1, 2015. Under terms of the swap agr eement, the RDA pays the counterparty (Wells Fargo Bank, NA) a fixed rate of 4.95% on the Series 2009A Bonds and 5.507% on t he Series 2009B Bonds on the first business day of January, April, July, and October during the term of the Transaction. The RDA receives a floating rate on the sam e dates equal to 1 m onth Libor plus .20% applicable for the sam e calculation period. At June 30, 2012, the swaps had a negative fair value of $3,618,518. Early Termination Risk: The RDA has the option to terminate the JP Morgan Chase Swap upon 30 days notice. The amount due with respect to an early termination shall be determined as though the counterparty is the sole affected party and “Market Quotation and Second Method” shall apply. Either party may terminate only upon an “Event of Default” caused by a “Failure to Pay or Deliver” as specified in Section 5 of the International Swaps and Derivatives Association (ISDA) Master Agreement. Any amounts due to the counterparty upon termination are payable from lease payments and tax increment revenue. Short-term Interfund Receivables and Payables During the course of operat ions, numerous transactions occur bet ween individual funds for goods provi ded or services rendered. These receivables and payables are classified as due fro m other funds, or due to other funds on the balance sheet. Short-term interfund loans are classified as interfund receivables and payables. 54 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 Loans to Other Funds Non-current portions of long-term interfund loan receivables are reported as loans and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation. Inventories Inventory is valued at cost using the average-cost method, which approximates market. Inventory in the General Fund consists of cemetery lots for sale. The cost of governmental fund type inventories are recorded as expenditures when consumed rather than when purchased. Reported inventories are equally offset by a reserve to fund balance which indicates that they do not constitute available spendable resources even though they are a component of current assets. Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2012 are recorded as prepaid items. Restricted Assets Certain proceeds of fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets because their use is limited by applicable bond covenants and legal requirements. Capital Assets General capital assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds. Capital assets, with an initial, individual cost of more than $5,000 are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. All purchased capital assets are valued at cost or estimated historical cost. Donated capital assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Intangible capital assets consist mainly of computer software, right-of-ways, water rights and water stock. However, they may include any items meeting the definition of intangible capital assets under GASB 51 – Accounting and Financial Reporting for Intangible Assets. Infrastructure capital assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are capitalized. The City has elected to use the modified-approach for reporting infrastructure. This election allows the City to forego depreciation of networks or of infrastructure assets, provided that the City has made a commitment to maintain those particular assets at predetermined condition levels. The City has established an asset management system and policy that is adequate for that purpose. Refer to pages 81 and 82 of the required supplementary information regarding the modified-approach. Capital assets, with the exception of infrastructure, are depreciated. Depreciation of buildings, equipment and vehicles is computed using the straight-line method. Depreciation of all exhaustible capital assets is charged as an expense in the related program. Accumulated depreciation is reported on the Statement of Net Assets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: years Improvements...............10-25 years years years Compensated Absences - Accumulated Unpaid Vacation, Sick Pay, and Compensation Time Accumulated unpaid vacation, sick pay, and other employee benefit amounts are accrued when incurred in proprietary funds (using the accrual basis of accounting). In the governmental funds, only the amount of the benefits that have matured is reported as an expenditure and corresponding liability. The estimated current portion of the accumulated benefits is reported in the fund as a reservation of fund balance. A liability for unused compensated absences is reported in the government-wide Statement of Net Assets. 55 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 Long-term Obligations In the government-wide statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums, discounts, and issuance costs are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the governmental fund fi nancial statements, bond prem iums, discounts, and i ssuance costs are recogni zed as expenditures in the current period. Prem iums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance cost s, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The face amount of debt issued is reported as other financing sources. Net Assets/Fund Balances The difference between assets and liabilities is reported as net assets on the government-wide and proprietary fund statements, and fund balance on the governmental fund statements. Fund financial statements In February 2009, GASB issued Statement No. 54 on Fund B alance Reporting and Governm ental Fund Ty pe Definitions. The st atement is effective for years beginning after June 15, 2010. The statement applies only to governmental fund fi nancial statements and not to government-wide statements or propri etary fund statements. Proprietary fund equi ty is classified the same as i n the government-wide statements. The governm ental fund balances may be classified as follows: Non-spendable – Fund balances that cannot be spent either because they are in non-spendable form or because they are legally or contractually required to be maintained intact. Restricted fund balance – Fund balances are reported as restricted when they are constrained by externally imposed legal restrictions, by law through constitutional provisions or enabling legislation, or re strictions set by creditors, grantors, or contributors. Committed fund balance – Fund balances are reported as co mmitted when the City Council formally designates the use of resources by ordinance for a speci fic purpose a nd cannot be used for any other purpose unless the City Council likewise formally changes the use. Assigned fund balance – Fund balances are reported as assigned when the City Council or management intends to use funds for a specific purpose. Norm ally funds are a ssigned by the appropriation pr ocess of setting the budget. Additionally, funds in special revenue, debt service, and capital project funds are by their nature assigned to the purpose of those respective funds. Unassigned fund balance – Fund bal ances in the general fund are reported as unassigned when they are neither restricted, committed, nor assigned. They may be used for any governmental purpose. When an expenditure is incurred for purposes for whi ch both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. W hen an expenditure is incurred for which com mitted, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned f unds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions. Government-wide Statements Equity is classified as net assets and displayed in three components: Invested in capital assets, net of related debt – Consis ts of capital assets, net of accum ulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. 56 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 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. Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.” It is the City’s policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. E. Interfund Activity and Balances Government-wide Statements In general, eliminations have been made to minimize the double counting of internal activity, including internal service fund type activity. However, interfund services provided and used between different functional categories have not been eliminated in order to avoid distorting the direct costs and program revenues of the applicable functions. Interfund receivables and payables have been eliminated from the Statement of Net Assets, except for the residual amounts due between governmental and business-type activities, which are shown as “internal balances”. Governmental Fund Statements Interfund transactions for goods and services provided and used are reported as revenues and expenditures/expenses in the funds involved. Cash transfers between funds of the City are reported as other financing sources and uses in the governmental fund statements. NOTE 2. DEPOSITS AND INVESTMENTS Deposits and investments for Ogden City are governed by the Utah Money Management Act (Utah Code Annotated, Title 51, Chapter 7, “the Act”) and by rules of the Utah Money Management Council (“the Council”). Following are discussions of the City’s exposure to various risks related to its cash management activities. A. Custodial Credit Risk Deposits. Custodial credit risk for deposits is the risk that in the event of a bank failure, the City’s deposits may not be recovered. The City’s policy for managing custodial credit risk is to adhere to the Act. The Act requires all deposits of City funds to be in a qualified depository, defined as any financial institution whose deposits are insured by an agency of the federal government and which has been certified by the Commissioner of Financial Institutions as meeting the requirements of the Act and adhering to the rules of the Utah Money Management Council. The City’s deposits in the bank in excess of the insured amount are uninsured and are not collateralized, nor do state statutes require them to be. The City’s deposits at June 30, 2012 were $44,217,398 of which $39,335,156 were uninsured and uncollateralized. Investments. Custodial credit risk for investments is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments that are in the possession of an outside party. The City does not have a formal policy for custodial credit risk of investments. The entire $5,975,407 of the City’s investments in government agency securities, corporate bonds, commercial paper, corporate notes and money market funds are uninsured, unregistered, and held by the counterparty’s trust department. However, the investments are held in the City’s name and therefore are not exposed to custodial credit risk. B. Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments that will adversely affect the fair value of an investment. The City’s policy for limiting interest rate risk is to comply with the Act. The City manages its exposure to declines in fair value by investing mainly in the PTIF and by adhering to the Money Management Act. The Act requires that the remaining term to maturity of investments may not exceed the period of availability of the funds to be invested. The Act further limits the remaining term to maturity of commercial paper to 270 days or less and fixed rate negotiable deposits and corporate obligations to 365 days or less. Maturities of the City’s investments are noted in the subsequent table. 57 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 C. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The City’s policy to limit this risk is to adhere to the rules of the Money Management Council. The Council rules do not limit the amount of investments a government may make in any one issuer except for Rule 2 regarding certain endowments and funds with a long-term perspective, and Rule 17 which limits investments in a single issuer of commercial paper and corporate obligations to between 5 and 10 percent depending upon the total dollar amount held in the government’s portfolio at the time of purchase. D. Credit Risk Credit risk is the risk that the counterparty to an investment transaction will not fulfill its obligations. The City’s policy for limiting the credit risk of investments is to comply with the Act. The Act requires investment transactions to be conducted only through qualified depositories, certified dealers, or directly with issuers of the investment securities. Permitted investments include deposits of qualified depositories; repurchase agreements; commercial paper that is classified as “first-tier” by two nationally recognized statistical rating organizations, one of which must be Moody’s Investor Services or Standard & Poors; bankers acceptances; obligations of the U.S. Treasury and U.S. government sponsored enterprises; bonds and notes of political subdivisions of the State of Utah; fixed rate corporate obligations and variable rate securities rated or higher by two nationally recognized statistical rating organizations; and shares in a money market fund as defined in the Act. The City is also authorized to invest in the Utah Public Treasurer’s Investment Fund (PTIF), an unrated external pooled investment fund managed by the Utah State Treasurer and subject to the Act and Council requirements. The PTIF is not registered with the SEC as an investment company, and deposits in the PTIF are not insured or otherwise guaranteed by the State of Utah. The PTIF operates and reports to participants on an amortized cost basis. The income, gains, and losses, net of administration fees, of the PTIF are allocated based upon the participants’ average daily balances. The fair value of the PTIF investment pool is approximately equal to the value of the pool shares. Following are the City’s cash and investments at June 30, 2012: Cash deposit and Fair Quality Investment Type Value Maturity Ratings Cash on deposit $ 4,642,050 n/a not rated PTIF Investments 25,093,820 n/a not rated Certicates of deposit 8,229,643 n/a not rated Trust accounts 7,159,007 n/a not rated Corporate notes 5,975,407 270 days* AA Money Market Funds 5,090,455 n/a not rated Total $ 56,190,381 Cash on deposit is equivalent to cash deposited with an insured financial institution. Cash and investments $ 48,020,368 Restricted cash 367,600 Restricted investments 7,802,413 Total $ 56,190,381 * Weighted-average maturity The City’s investments are diversified in such a manner that no individual investment represents more than 5% of the City’s total investments at June 30, 2012. These investments are reported within the General Fund and Gomer A. Nicholas Permanent Fund. 58 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 3. RECEIVABLES AND PAYABLES A. Interfund Payables and Receivables: Due To/From other funds - Cash overdrafts: Funds which have overdrawn their share of pooled cash show a due to other funds on the balance sheet for the amount of the overdraft. Funds which management selected because of their strong cash position show an offsetting due from other funds on the balance sheet. Funds which had overdrawn their share of pooled cash and the offsetting funds as of June 30, 2012 were as follows: Payable Fund Amount General Refuse $ 386,838 General Golf courses 135,184 General Dinosaur park 27,878 General Management Information Services 89,090 General Risk Management 16,811 General Debt Service 18,827 Total $ 674,628 Receivable Fund The terms of repayment of the cash overdraft amounts are discussed in footnote 17 – Contingencies. B. Loans To/From Other Funds: Funds which have received loans from other funds as of June 30, 2012 were: Payable Fund (Due From) Amount General Redevelopment Agency 6,780,160 $ Allowance for uncollectible advances (see note 3) (5,760,160) 1,020,000 General Golf Course 668,169 General Airport 1,731,388 Business Depot Ogden Redevelopment Agency 1,588,230 Cemetery Golf Course 15,873 Refuse Redevelopment Agency 2,042,191 Total $ 7,065,851 Receivable Fund (Due To Repayment terms – Interfund Lending Activity : General fund to the Redevelopment Agency: These loans have been reserved for in the general fund to the extent that they are considered collectible. Terms of the loans specify that tax increment revenue from the individually identified project areas is to be used to repay these loans. General fund to the Golf Courses Fund: The terms and City Council resolution indicate that principal and interest payments are to be budgeted for payment annually. General fund to the Airport fund : The terms and City Council resolution indicate that principal and interest payments are to be budgeted for payment annually. Business Depot Ogden to the Redevelopment Agency: This note was established to refinance the outside line-of- credit previously maintained by the RDA for the river project area. The note is due in full on July 1, 2014. 59 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 3. RECEIVABLES AND PAYABLES, CONTINUED Cemetery perpetual care fund loan to Golf Courses fund: Terms of the note indicate that principal and interest payments are to be made from Golf Courses fund excess or by general fund operating transfer to the golf fund. Refuse fund loan to the Redevelopment Agency fund : The note was extended and the terms of the note indicate that principal and interest are to be paid in full on or before June 30, 2016. This note is associated with the river project area. Allowance for uncollectible advances In a prior year, it was determined that a valuation allowance was necessary regarding the above mentioned General fund to Redevelopment Agency interfund advances. This determination was made based on the anticipated revenues from the payment funding sources. The advances and associated valuation allowance are detailed as follows : Payable Fund Amount General RDA - Central Business District $ 1,751,601 General RDA - 25th Street District 2,011,606 General RDA - Washington Blvd. District 3,016,953 6,780,160 Allowance for uncollectible advances (5,760,160) $ 1,020,000 Receivable Fund C. Employee loan program: Upon recommendation of the administration, the City Council approved an interest free loan program for employees to use to purchase a computer or bicycle. $100,000 was set aside in the MIS Internal Service Fund as the funding mechanism. The program has strict controls to ensure that quality equipment is purchased and payment is handled automatically through payroll deduction with additional protection for early termination. $2,000 is the maximum allowed for each employee and as payments are received to replenish the funding for additional purchases, employees on a waiting list are given the opportunity to participate. In addition to the increased morale of City employees, this program benefits the City through increased employee computer literacy and wellness. The MIS Internal Service Fund showed a receivable of $83,533 at June 30, 2012 for these loans to employees. D. Special Assessments Receivable: The City created the downtown special assessment district in the 1990s to fund the promotion of the central business district. Assessments on commercial properties in the district were originally on a three year cycle until recent years when the assessments have been annual. The most recent assessment was in fiscal year 2012. The balance remaining due to the City is from that assessment. $ 22,981 Delinquent………………………………… 82,370 - $ 105,351 60 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 4. INTERFUND TRANSFERS Transfers between funds occur primarily to finance programs accounted for in one fund with resources collected in other funds in accordance with budgetary authorizations. For Ogden City, the following transfers are as shown: Redevel- Internal Total General opment BDO Service Enterprise Nonmajor Transfers Fund Agency Fund Funds Funds Funds Out Transfers out reported in: General Fund $ - $ - $ - $ - $ 849,100 $ 200,000 $ 1,049,100 Redevelopment Agency 150,000 4,066,204 2,600,000 - - 244,000 7,060,204 BDO Property Management 1,000,000 690,000 - - 573,850 713,925 2,977,775 Enterprise Funds - - - - - 23,850 23,850 Nonmajor Funds - - - - 76,350 76,350 Total Transfers In $ 1,150,000 $ 4,756,204 $ 2,600,000 $ - $ 1,499,300 $ 1,181,775 $ 11,187,279 Transfers in reported in: Transfers are used to move revenues between funds to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grants. NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2012 was as follows: Beginning Ending Balance Additions Deletions Balance Governmental Activities: Capital assets, being depreciated: Buildings and Improvements $ 109,661,336 $ 5,477,378 $ - $ 115,138,714 Equipment 26,082,169 5,190,424 (1,725,017) 29,547,576 Intangibles 70,751 160,175 - 230,926 Total 135,814,256 10,827,977 (1,725,017) 144,917,216 Less Accumulated Depreciation for: Building and Improvements (69,222,828) (4,857,033) (74,079,861) Equipment (20,157,321) (2,374,728) 1,467,517 (21,064,532) Intangibles - (26,764) - (26,764) Total (89,380,149) (7,258,525) 1,467,517 (95,171,157) Capital assets being depreciated, net 46,434,107 3,569,452 (257,500) 49,746,059 Capital assets , not being depreciated: Land 19,988,216 (927,009) 19,061,207 Construction in Progress 3,243,323 537,959 (554,589) 3,226,693 Infrastructure 97,847,788 1,942,420 - 99,790,208 Governmental Activity Capital Assets, Net $ 167,513,434 $ 6,049,831 $ (1,739,098) $ 171,824,167 Capital Assets 61 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 5. CAPITAL ASSETS, CONTINUED Business-type Activities: Capital assets, being depreciated: Building and Improvements $ 231,178,961 $ 29,562,342 $ (6,029,081) $ 254,712,222 Equipment 1,064,036 422,548 (110,000) 1,376,584 Total 232,242,997 29,984,890 (6,139,081) 256,088,806 Less Accumulated Depreciation for: Buildings and Improvements (80,893,195) (7,950,017) 3,438,588 (85,404,624) Equipment (586,203) (120,225) 110,000 (596,428) Total (81,479,398) (8,070,242) 3,548,588 (86,001,052) Capital assets, being depreciated, net 150,763,599 21,914,648 (2,590,493) 170,087,754 Capital assets, not being depreciated Land 36,826,410 4,001 36,830,411 Construction-in-process 18,406,236 2,369,994 (17,976,235) 2,799,995 Intangibles 717,658 - - 717,658 Business-type Activities Capital Assets, Net $ 206,713,903 $ 24,288,643 $ (20,566,728) $ 210,435,818 Depreciation expense of governmental activities was charged to functions as follows: General Administration………………………………… $ 1,375,347 Public 675,395 Transportation……………………………………………….. 784,635 Environmental Protection…………………………… 16,013 Leisure Opportunities……………………………………. 569,483 Community Development……………………………. 1,709,404 Depreciation on capital assets of the City's internal service funds is charged to the various functions based on their usage of assets 2,128,248 $ 7,258,525 The City has active construction projects as of June 30, 2012. At year-end the City’s commitments with contractors are as follows: Expended Remaining Project thru 6/30/12 Commitment Water system projects 17,017,321 $ 1,179,540 $ Sewer system projects 2,482,507 236,565 BDO infrastructure projects 2,449,692 3,675,308 IT system development projects 20,003 70,645 Totals 21,969,523 $ 5,162,058 $ NOTE 6. LAND HELD FOR COMMUNITY DEVELOPMENT As part of the redevelopment of the Ogden River District, the Redevelopment Agency and the City have purchased a number of real properties and made substantial improvements. As of June 30, 2012, the City held $2,800,394 in property for community development that meets the criteria for the redevelopment district. The RDA currently has a development agreement that will, over the next several years, fully develop the land held for development. 62 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 7. LEASE COMMITMENTS The City has entered into non-cancelable leases for equipment. Leases that in substance are purchases are reported as capital lease obligations. In the government-wide and proprietary fund statements, assets and liabilities resulting from capital leases are recorded at the inception of the lease at either the lower of fair value or the present value of the future minimum lease payments. The principal portion of lease payments reduces the liability, and the interest portion is expensed. In governmental fund statements, both the principal and interest portions of capital lease payments are recorded as expenditures of the applicable governmental function. These lease obligations are shown in the fleet and facilities internal service fund. Governmental Business-type Year Activities Activities Total 2012 $ 735,642 $ - $ 735,642 2013 735,643 - 735,643 2014 735,643 - 735,643 2015 735,643 - 735,643 2016 674,339 - 674,339 Thereafter - - - Total 3,616,910 - 3,616,910 Less amounts representing interest (226,736) - (226,736) Present value of future minumum lease payments $ 3,390,174 $ - $ 3,390,174 Equipment $ 5,457,756 Less accumulated depreciation (2,513,668) Net book value $ 2,944,088 NOTE 8. LONG-TERM LIABILITIES A. Changes in Long-term Liabilities Changes in long-term liabilities for the year ended June 30, 2012 were as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General Obligation Bonds $ 11,270,000 $ 1,737,000 $ 3,532,000 $ 9,475,000 $ 1,946,000 Lease Revenue Bonds 5,047,000 - 295,000 4,752,000 310,000 Tax Increment Revenue Bonds 50,695,000 5,375,000 10,850,000 45,220,000 5,110,000 Section 108 Notes 2,160,000 - 270,000 1,890,000 390,000 Capital leases 2,718,070 3,443,951 2,771,846 3,390,174 654,644 Compensated absences 3,057,222 - 94,162 2,963,060 891,193 Claims payable 2,344,050 - 306,741 2,037,309 981,850 Unamortized bond premium 345,633 - 69,128 276,505 - Unamortized bond discounts (43,420) - (3,055) (40,365) - Total Governmental Long-term Liabilities $ 77,593,555 $ 10,555,951 $ 18,185,822 $ 69,963,683 $ 10,283,687 Long-term Liabilities 63 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 A. Changes in Long-term Liabilities, Continued Business-type Activities: Revenue Bonds and Notes $ 55,509,790 $ - $ 1,662,790 $ 53,847,000 $ 1,626,000 Unamortized discounts (37,902) - (3,008) (34,894) - Unamortized premium 363,578 - 13,466 350,112 - Compensated Absences 897,671 - 37,603 860,068 253,055 Total Business-type Long-term Liabilities $ 56,733,137 $ - $ 1,710,851 $ 55,022,286 $ 1,879,055 The compensated absence liability of governmental activities is liquidated in the General Fund, Enterprise Funds, or Internal Service Funds of the employing department. Governmental funds report only the amount that has matured but has not yet been paid. Additional information related to these long-term liabilities is found in the following tables including debt service requirements to maturity. Current refundings The City issued $1,737,000 in sales tax revenue refunding bonds for a current refunding of 2006 sales tax revenue bonds. The refunding was undertaken due to favorable interest rates and to lessen the City’s future obligations. The reacquisition price exceeded the net carrying amount by $34,268. This amount is being netted against the new debt and amortized over the life of the new debt, which was the same as the remaining life of the old debt. The transaction resulted in an economic gain of $224,008 and a reduction of $276,335 in future debt service payments. The RDA issued $5,375,000 in BDO tax increment revenue refunding bonds for a current refunding of 2001D and 2002B BDO tax increment revenue bonds. The refunding was undertaken due to favorable interest rates, to lessen the City’s future obligations, and to shorten the life of the debt. The reacquisition price exceeded the net carrying amount by $70,750. This amount is being netted against the new debt and amortized over the life of the new debt. The transaction resulted in an economic gain of $185,107 and a reduction of $846,989 in future debt service payments. B. General Obligation Bonds General Obligation Bonds payable at June 30, 2012 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2012 2009 Refunding Bonds 04/21/09 12/15/15 2.50% to 5.00% $ 8,125,000 $ 7,825,000 2011 Refunding Bonds 12/05/11 03/01/26 2.88% 1,737,000 1,650,000 $ 9,475,000 General Obligation Bonds Payable Total General Obligation Bonds Outstanding 64 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 B. General Obligation Bonds, Continued Year Principal Interest Principal Interest Principal Interest 2013 $ 1,850,000 264,375 $ 96,000 46,598 $ 1,946,000 310,973 2014 1,900,000 206,750 100,000 43,795 2,000,000 250,545 2015 2,000,000 125,550 103,000 40,886 2,103,000 166,436 2016 2,075,000 37,750 107,000 37,882 2,182,000 75,632 2017 - - 110,000 34,771 110,000 34,771 2018-2022 - - 592,000 124,234 592,000 124,234 2023-2026 - - 542,000 34,310 542,000 34,310 Total $ 7,825,000 $ 634,425 $ 1,650,000 $ 362,477 $ 9,475,000 $ 996,902 General Obligation Bonds-Debt Service Requirements to Maturity Total 2009 Refunding 2011 Refunding C. Lease Revenue Bonds Lease Revenue Bonds Payable at June 30, 2012 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2012 Series 2006 refunding 04/04/06 06/15/21 4.35% $ 2,865,000 $ 2,125,000 Series 2007 Stadium 12/11/07 01/15/28 5.08% 3,000,000 2,627,000 $ 4,752,000 Lease Revenue Bonds Payable Total Lease Revenue Bonds Payable Year Principal Interest Principal Interest Principal Interest 2013 $ 200,000 93,873 $ 110,000 130,656 $ 310,000 224,529 2014 205,000 88,873 116,000 124,917 321,000 213,790 2015 215,000 78,873 122,000 118,872 337,000 197,745 2016 225,000 68,873 128,000 112,522 353,000 181,395 2017 235,000 58,873 135,000 105,841 370,000 164,714 2018-2022 1,045,000 116,619 782,000 416,660 1,827,000 533,279 2023-2027 - - 1,002,000 191,261 1,002,000 191,261 2028 - - 232,000 5,893 232,000 5,893 Total $ 2,125,000 $ 505,984 $ 2,627,000 $ 1,206,622 $ 4,752,000 $ 1,712,606 Lease Revenue Bonds-Debt Service Requirements to Maturity Series 2006 Refunding Series 2007 Stadium Total 65 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 D. Tax Increment Revenue Bonds Tax Increment Revenue Bonds Payable at June 30, 2012 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2012 Wall Ave Tax Increment 08/29/02 02/01/19 variable $ 675,000 $ 450,000 25th Street (Crown Plaza) 09/18/01 02/01/18 variable 1,610,000 850,000 2005 Series A - Recreation Center 11/01/05 04/01/25 variable 7,280,000 4,885,000 2009 Series A - Rec Center 09/30/09 06/01/31 variable / swap 8,780,000 7,955,000 2009 Series B-1 and B-2 - Rec Center 09/30/09 12/01/27 variable / swap 21,565,000 19,145,000 2006 Series A - West 12th (tax-exempt) 12/20/06 04/01/17 4.43% 3,500,000 3,250,000 2007 Fairmount District 06/05/07 03/01/18 6.75% 3,300,000 1,580,000 2008 Series A - West 12th 07/08/08 04/01/17 4.75% to 5.25% 3,000,000 2,010,000 2011 Series CBD 02/15/11 02/15/26 5.10% 1,600,000 1,525,000 2011 Series BDO 08/24/11 12/30/13 2.46% 5,375,000 3,570,000 $ 45,220,000 Tax Increment Bonds Payable Total Tax Increment Revenue Bonds Payable Year Principal Interest Principal Interest Principal Interest 2013 $ 50,000 6,525 $ 115,000 25,500 $ 490,000 $ 212,497 2014 55,000 5,800 125,000 22,050 550,000 191,182 2015 60,000 5,002 135,000 18,300 575,000 167,257 2016 65,000 4,132 145,000 14,250 600,000 142,245 2017 65,000 3,190 160,000 9,900 185,000 116,145 2018-2022 155,000 3,408 170,000 5,100 1,515,000 420,428 2023-2027 - - - - 970,000 82,650 2028-3032 - - - - - - Total $ 450,000 $ 28,057 $ 850,000 $ 95,100 $ 4,885,000 $ 1,332,404 Tax Increment Revenue Bonds-Debt Service Requirements to Maturity (Crown Plaza) 2005 Series A Wall Ave Tax Increment 25th Street Recreation Center Year Principal Interest Principal Interest Principal Interest 2013 $ 330,000 $ 243,163 $ 990,000 $ 999,386 $ 665,000 $ 143,975 2014 345,000 232,995 1,045,000 950,266 2,585,000 287,507 2015 370,000 212,283 1,090,000 898,569 - - 2016 385,000 195,973 1,150,000 838,569 - - 2017 250,000 339,010 845,000 1,149,991 - - 2018-2022 1,555,000 1,435,601 5,335,000 4,754,599 - - 2023-2027 2,245,000 877,281 7,035,000 3,233,248 - - 2028-3032 2,475,000 166,867 1,655,000 3,555,090 - - Total $ 7,955,000 $ 3,703,173 $ 19,145,000 $ 16,379,718 $ 3,250,000 $ 431,482 2009 Series A West 12th (Tax-exempt) 2006 Series A Recreation Center Recreation Center 2009 B-1 and B-2 66 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 D. Tax Increment Revenue Bonds, Continued Year Principal Interest Principal Interest Principal Interest 2013 $ 270,000 $ 140,400 $ 365,000 103,699 $ 75,000 77,775 2014 235,000 122,175 380,000 86,362 80,000 73,950 2015 250,000 106,312 400,000 66,412 85,000 69,870 2016 260,000 89,437 420,000 45,412 90,000 65,535 2017 565,000 125,212 445,000 23,362 95,000 60,945 2018-2022 - - - - 550,000 226,950 2023-2027 - - - - 550,000 72,165 2028-3032 - - - - - - Total $ 1,580,000 $ 583,536 $ 2,010,000 $ 325,247 $ 1,525,000 $ 647,190 2011 Series 2007 Series Central Business District West 12th 2008 Series A Fairmount District Year Principal Interest Principal Interest 2013 $ 1,760,000 66,174 $ 5,110,000 $ 2,019,094 2014 1,810,000 22,263 7,210,000 1,994,550 2015 - - 2,965,000 1,544,005 2016 - - 3,115,000 1,395,553 2017 - - 2,610,000 1,827,755 2018-2022 - - 9,280,000 6,846,086 2023-2027 - - 10,800,000 4,265,344 2028-3032 4,130,000 3,721,957 Total $ 3,570,000 $ 88,437 $ 45,220,000 $ 23,614,344 2011 Series Central Business District Total Pledged revenues The City and RDA have pledged certain revenues to repay 2005 Series A, 2009A and 2009B bonds in the amounts of $4,885,000, $7,955,000, and $19,145,000, respectively. Tax increment revenues from 10 identified RDA districts are pledged for debt service of the 2005 Series A bonds. Total principal and interest remaining on the 2005 Series A bonds is $6,217,404, payable through April 2025. The 2009 Series B bonds have three revenue sources pledged, which include, tax increment revenue from the CBD RDA district, tax increment from the American can RDA district and City franchise tax. Total principal and interest remaining on the 2009 Series B bonds is $35,524,718, payable through December 2027. For the current year, principal and interest paid on 2005 Series A and 2009B bonds in the amounts of $739,465 and $1,981,785, respectively. For the current year total tax increment revenue from the CBD RDA and all other RDA districts used to supplement debt services payments were $1,175,350 and $1,505,990, respectively. Lease revenues from Solomon recreation center are pledged for debt service for the 2009 Series A bonds. Tot al principal and interest remaining on the 2009 Series A bonds is $11,658,173, payable through June 2031. For t he current year, principal and i nterest paid on 2005 Se ries A bonds and t otal lease revenues were $572,733 and $695,814, respectively. 67 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 D. Tax Increment Revenue Bonds, Continued Swap payments and associated debt Using rates as of June 30, 2012, debt service requirements of the Adjustable Rate 2009 Series A, 2009 Series B-1 and 2009 Series B-2 contain provisions for net swap payments. As rates vary, variable-rate bond interest payments and net swap payments will vary. For the year ended June 30, 2012, the net swap payments on the 2009 Series A and 2009 Series B Bonds were $375,088 and $1,002,599, respectively. These payments, when included with the variable rate of interest, maintain the effective rate of interest being paid by the city at the stated rate. E. Section 108 HUD Section 108 loan for $1,370,000 was created in fiscal year 1998 to refurbish the Eccles Building located in the heart of the City’s downtown district. The balance as of June 30, 2012 is $290,000. The loan is scheduled to be retired in August of 2012. HUD Section 108 loan for $2,000,000 was created in fiscal year 2007 to purchase equipment for the City’s new high adventure recreation center. The loan was originally applied for in fiscal year 2005 and the purchase of the loan specified equipment took place in fiscal year 2006 using an advance from the City to the Redevelopment District of the Ogden Redevelopment Agency. As of June 30, 2007, the loan had received final approval by HUD, but had not received final approval by the Mayor nor had the proceeds been received by the City. The City recorded the loan and a receivable and other financing source of revenue in fiscal year 2007 after making the determination that the expenditures should be reported on the fiscal year 2007 schedule of federal awards. Proceeds from the loan were received subsequent to year end. The balance as of June 30, 2012 is $1,600,000. The loan is scheduled to be retired in August of 2027. F. Enterprise Fund Revenue Bonds The individual balances of Enterprise Fund Revenue Bonds and notes are listed as follows: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2011 Series 2001 Bonds (refuse) 08/29/01 06/15/16 4.90% $ 3,300,000 $ 1,380,000 Series 2008 Storm Sewer Bond 08/08/08 06/15/23 4.88% 2,393,000 1,912,000 Series 2009 Water and Sewer Bond 04/22/09 06/15/24 3.0% to 5.0% 5,585,000 4,730,000 Series 2008 Water and Sewer Bond 06/04/08 06/15/38 2.8% to 5.0% 49,175,000 45,825,000 $ 53,847,000 Enterprise Fund Revenue and Note Total Bonds and Note Outstanding Year Principal Interest Principal Interest Principal Interest 2013 $ 250,000 $ 67,620 $ 136,000 $ 92,668 $ 315,000 $ 202,887 2014 260,000 55,370 142,000 86,739 325,000 192,650 2015 270,000 42,630 149,000 79,739 335,000 181,275 2016 600,000 29,400 156,000 72,468 350,000 167,875 2017 - - 164,000 64,855 365,000 153,875 2018-2022 - - 947,000 196,223 2,070,000 507,287 2023-2027 - - 218,000 10,638 970,000 67,400 Total $ 1,380,000 $ 195,020 $ 1,912,000 $ 603,330 $ 4,730,000 $ 1,473,249 Refuse 2001 Storm Sewer 2008 Water/Sewer 2009 Tax Increment Revenue Bonds-Debt Service Requirements to Maturity 68 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 F. Enterprise Fund Revenue Bonds, Continued Year Principal Interest Principal Interest 2013 $ 925,000 $ 2,171,906 $ 1,626,000 $ 2,535,081 2014 960,000 2,134,106 1,687,000 2,468,865 2015 1,010,000 2,086,906 1,764,000 2,390,550 2016 1,055,000 2,041,456 2,161,000 2,311,199 2017 1,075,000 1,988,706 1,604,000 2,207,436 2018-2022 6,390,000 9,093,905 9,407,000 9,797,415 2023-2027 8,130,000 7,355,230 9,318,000 7,433,268 2028-2032 10,345,000 5,139,630 10,345,000 5,139,630 2033-2037 12,975,000 2,511,037 12,975,000 2,511,037 2038 2,960,000 135,538 2,960,000 135,538 Total $ 45,825,000 $ 34,658,420 $ 53,847,000 $ 36,794,481 Total Water/Sewer 2008 NOTE 9. LINE-OF-CREDIT During the year the City entered into a line-of-credit agreement with GE Money Bank. The purpose of the line is to help fund activities of the Community Development department and specifically the Housing and Urban Development program known as Asset Control Area. The line-of-credit is for $1,000,000, at a rate equal to 3- month Libor plus 1.5% (1.97% at June 30, 2012), adjusted quarterly, and carried a balance of $422,170. The line- of-credit has a maturity date of April 1, 2014. Lines-of-Credit Beginning Ending Balance Additions Reductions Balance Governmental Activities: Community development $ 560,422 $ 905,472 $ 1,043,789 $ 422,104 NOTE 10. FUND BALANCES / NET ASSET DEFICITS At June 30, 2012, the airport, golf courses, debt service and dinosaur park funds had deficit unrestricted net assets or unassigned fund balances of $1,678,284, $794,514, $18,827 and $27,878, respectively. The City manages airport finances so that the fund maintains a positive cash balance. The Airport fund may never achieve positive unrestricted net assets because of the flow of capital resources from the Federal government. The City makes annual budgeted transfers to the golf courses fund in order to maintain a positive cash position. These transfers are also expected to eliminate the deficit in unrestricted net assets over time. The debt service fund is expected to continue to collect small amounts annually from liens on property, however the uncertainty of the collection caused receivable to be written-off, leading to a deficit fund balance. Liens on properties related to the written off amounts were not released. The new agreement between the dinosaur park foundation and the City calls for the City to receive payments annually that will cover the current deficit in cash and fund balance. 69 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 11. UNEARNED REVENUE Unearned revenues are resource inflows that do not yet meet the criteria for revenue recognition. Deferred amounts are reported as unearned revenue, when asset s are recognized prior to the completion of the earnings process for a given transaction. In governmental funds, amounts that are unavailable are reported as unearned revenue until they are available to liquidate liabilities of the current period. Ogden City has un earned revenues as of June 30, 2012 as follows: General Fund $ 22,345,423 Special Revenue Fund (Redevelopment Agency) 11,334,694 Nonmajor Governmental Funds 146,000 Unearned revenue, governmental funds, balance sheet 33,826,117 Property taxes levied for current and prior periods (delinquent) (530,000) Unearned revenue, governmental activities, statement of net assets $ 33,296,117 Taxes receivable $ 19,393,615 Grant loans receivable 11,685,381 Special assessments receivable 118,515 Prepaid interments 50,351 Grant program income 1,553,877 In-lieu fee deferral - water and storm sewer 834,834 Miscellaneous donations 189,544 Total 33,826,117 Nonmajor enterprise fund, airport prepaid lease $ 489,600 NOTE 12. RETIREMENT PLANS A. Pension Plans Ogden City contributes to the Local Government Contributory Retirement System, the Local Government Noncontributory Retirement Systems (collectively, the Systems), all of which are cost-sharing multiple-employer defined benefit pension plans. The Sy stems are adm inistered by Utah Retirement Systems (URS) under t he direction of the URS Board, which consists of the State Treasurer and si x members appointed by the governor. URS is established under and governed by Title 49 of Utah Code Annotated, 1953, as amended (UCA). URS publishes an annual financial report that includes financial statements and required supplementary information for all retirement systems and deferred compensation plans administered by it. Copies of the report may be obtained by writing to Utah Retirem ent Systems, 560 East 200 South, Salt Lake City, Utah 84102; by calling 1-800-365- 8772; or by visiting www.urs.org. Retirement benefits, as specified by UCA Title 49, cover s ubstantially all employees of the State, public education, and other political subdivisions of the State. Only the State Legislat ure can modify benefits. The Systems provide pension, death, and disability benefits for employees who meet all eligibility requirements. Employees are eligible for retirement benefits upon attainment of the age specified for their employment classification or a combination of age plus years of service. A brief summary of eligibility, benefits, and contribution rates of the Systems is provided in the table below. Expenditures or expenses for ret irement costs are recorded in the City’s funds as cont ributions are made to the Systems. Contributions made each year were equal to the contributions re quired by the City’s c ontract with URS. Therefore, the City has no liability for pension obligations. 70 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 12. RETIREMENT PLANS, CONTINUED Noncontributory System Tier 1 Tier 2 Tier 1 Tier 2 Highest Average Salary………… Highest 5 years Highest 5 years Highest 3 years Highest 3 years Highest 5 years Years of Service and Age of Eligibility… 30 years any age 35 years any age 30 years any age 20 years any age 25 years any age 20 years any age 20 years at age 60 25 years any age 10 years age 60 20 years at age 60 10 years any age 10 years at age 62 20 years age 60 4 years age 65 10 years at age 62 4 years any age 4 years at age 65 10 years age 62 4 years at age 65 4 years age 65 Benefit Percent per Year of Service……1.10% to June 1967 1.50% per year 2.00% per year 2.5% per year up to 20 years 1.50% per year 1.25% to June 1975 2.0% per year over 20 years 2.00% thereafter Benefit cannot exceed 70% of final average salary Annual Cost of Living Adjustment…… up to 4.00% up to 2.50% up to 4.00% up to 2.50% up to 2.50% 2012 Rates as Percent of Covered Payroll: Employer… 9.76% 10.33% 13.77% 36.13% 25.21% / 10.64% Member…… 6.00% - - 16.18% - Actual City Contributions Made, by year: $206,987 $1,632,509 $2,996,328 197,340 1,647,379 2,884,286 180,827 1,391,849 2,300,164 198,436 1,387,278 2,265,404 205,441 1,288,761 1,962,455 Requires full actuarial reductions Employees qualify for membership in Tier 1 if initially hired before July 1, 2011. Employees qualify for membership in Tier 2 if initially hired on or after July 1, 2011. Tier 1 and Tier 2 contributions. Contributory System Retirment under age 65 with less than 35 years of services, the benefit will be reduced by approximately 7% for each year between the ages of 60 and 63 and approximately 9% for each year between ages 64 and 65. Retirment under age 65 with less than 25 years of services, the benefit will be reduced by approximately 7% for each year between the ages of 60 and 63 and approximately 9% for each year between ages 64 and 65. Local Government Public Safety/Fire Fighter System All or part may be paid by the City for the Employee B. Deferred Compensation Plans The City participates in a 401(k) Plan and a 457 Plan (collectively, the Plans), both of which are defined contribution plans administered by URS. The Plans are in addition to the retirement benefits outlined above. Voluntary contributions may be made to the Plans subject to URS and Internal Revenue Service limitations. Employees may contribute to both Plans up to maximum percentages allowed by IRS regulations. Account balances of the Plans are fully vested to the participants at the time of deposit. All assets and income of the Plans are held by URS for the exclusive benefit of the participants and their beneficiaries. 71 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 B. Deferred Compensation Plans, Continued 401(k) Plan Contributions Employee Employer $368,509 $258,569 410,897 300,964 418,818 437,549 467,074 363,739 476,817 312,519 457 Plan Contributions Employee Employer $305,714 $141,088 346,695 131,282 307,563 249,483 352,417 324,837 363,220 366,117 NOTE 13. RISK MANAGEMENT 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 purchases commercial insurance through the Utah Risk Management Mutual Association to mitigate the costs of these risks. The City’s responsibility extends only to payment of premiums, and deductibles are $15,000 for general liability and property claims and $2,500 for auto physical damage. The amount of settlements has not exceeded insurance coverage for the past three years. The City maintains the Risk Management Fund (an internal service fund) to account for the cost of commercial insurance and to finance its risk of losses not covered by insurance. All departments of the City make payments to the Risk Management Fund based on estimates of each department’s insurable risks of loss and on amounts needed to pay prior and current-year uninsured claims. Changes in fiscal years 2008 to 2012 were as follows: Beginning of Changes Claim End of Year Year Liability in Estimates Payments Liability 2008 975,445 $ 1,156,958 $ 303,692 $ 1,828,711 $ 2009 1,828,711 1,103,581 944,915 1,987,377 2010 1,987,377 1,875,222 1,086,070 2,776,529 2011 2,776,529 1,367,128 1,799,607 2,344,050 2012 2,344,050 1,561,814 1,868,555 2,037,309 Risk Management Fund - Uninsured Claims Liability NOTE 14. LITIGATION AND CONTINGENCIES The City records liabilities resulting from claims and legal actions when they become fixed or determinable in amount. The City is currently the defendant in several pending lawsuits. Legal counsel is of the opinion that potential claims against the City resulting from such litigation not covered by insurance do not pose a threat of significant liability to the City. The City has received several federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to grantor agencies for expenditures disallowed under the terms of the grant. Based upon prior experience, the City believes such disallowances, if any, will be immaterial. 72 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 15. REDEVELOPMENT AGENCY The Ogden Redevelopment Agency had the following project areas which collected tax increment monies in the fiscal year ended June 30, 2012: Fairmont $ 1,090,065 Central Business District 1,181,842 South Central Business District………………………. 28,160 Lincoln Redevelopment……………………………..... 203,640 Washington 477,355 Lester 81,881 Golden 733 Park 42,579 25th 661,594 St. Benedicts 216,396 Union 15,496 12th 130,924 4,670,087 American Can 483,626 Wall Ave 157,847 West 12th 1,545,489 Hinckley 527,828 Hinckley 194,194 Ogden River 47,428 Outstanding principal amounts on bonded debt and other debt for the project areas at June 30, 2012: Bonded Debt Other Loans Central Business District……………………………. $ 33,510,000 $ 1,600,000 1,580,000 - 25th 850,000 - 3,570,000 - Wall 450,000 - West 12th 5,260,000 - NOTE 16. LEASE AGREEMENTS The City, as landlord, has entered into a master lease agreement with a property management and development company (the Company). Under the terms of the agreement, the Company has leased substantially all of the property known as Business Depot Ogden (BDO). Parcels not subject to the lease have been identified therein. The initial term for such lease is 50 years with rents based on calculations and other stipulations as detailed in the lease agreement. The activities of this lease arrangement are recorded in the BDO Property Management Enterprise fund of the City along with other City activities at the BDO facility. The original estimated value of the leased facilities was $99,387,500, with a carrying value of $60,583,447. In addition, the City, as landlord, has entered into various tract leases with the Company at the Business Depot Ogden Project. The initial term for such leases is 40 years with rents based on a percentage of net operating revenue. The income generated from these lease arrangements is recorded in the BDO Property Management Enterprise fund of the City along with other City activities at the BDO facility. An estimate of the value of the tract lease parcels and their carrying value has not been determined. The value of the tracts is not a factor in the lease payment calculation. 73 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 16. LEASE AGREEMENTS, CONTINUED The Redevelopment Agency, as landlord, has entered into a commercial lease agreement with a health and fitness company (the Company). Under the terms of the agreement, the Company has leased substantially all of the property known as the Solomon Center. The initial term of the lease is for 20 years with two five year renewal options. According to the agreement the future minimum lease payments are $694,800 annually for a total of $13,896,000 over the initial term. The original cost of the assets was $23,000,000, with a carrying amount of $18,759,218. NOTE 17. CONTINGENCIES As shown in the accompanying financial statements, the City incurred a deficiency of expenditures over revenues of $704,854 for the year in the Internal Service Funds. These deficits are the results of past and present activity related to the general and debt service funds and redevelopment of the City. Management has made increases in the FY2013 budget to address some of the internal service fund shortages. Management increased the amount of revenue budgeted for Risk Management by an additional $400,000 in FY2013. Additionally Management is working to determine appropriate reductions in the Management Information System expenditures so the fund can recover under the current revenue budget. As of June 30, 2012, it was determined that negative cash balances being carried by the Refuse, Golf, Dinosaur park and Debt Service funds are recoverable under the current operating arrangements. NOTE 18. RESTATEMENT OF NET ASSETS Certain amounts reported in the prior period, June 30, 2011, were improperly reported causing a restatement of beginning net assets in the current period. These reclassifications and errors occurred in the following areas: Governmental-Type Activities General Fund Previously stated assets 62,713,871 $ Correction of error in prior year 663,900 Restated assets 63,377,771 $ Previously stated change in fund balance (2,419,270) $ Correction of error in prior year 663,900 Restated change in fund balance (1,755,370) $ The following details identify the specific causes for the restatement of beginning net assets: The City participates in a HUD program known as Asset Control Area (ACA) program where HUD homes are purchased by the City for 50 percent of the appraised value. The City then rehabilitates the homes and sells them for near the appraised value, to recapture the amount the City invested in the home. The ACA program agreement states the City will record the discount amount as Federal Revenue and report that revenue on the Schedule of Federal Expenditures. During a review of the ACA program, it was determined that $663,900 of discounts received on HUD home purchases had not been recorded as an asset on the Balance Sheet – Governmental Fund and as revenue on the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund, along with the Schedule of Federal Expenditures. Accordingly, the 2011 Balance Sheet – Governmental Fund and Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund and Schedule of Federal Expenditures as of and for the year ended June 30, 2011, have been restated to correct this error. 74 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2012 NOTE 19. SPECIAL ITEMS During the year the City donated approximately 5 acres of surplus property owned in the Sewer Utility for the construction of a new homeless facility in Ogden City. The donation of property is classified as special since it is significant to the Sewer Utility, under the control of management, and unusual in nature. The carry value of the property in the Sewer Utility was $586,266 and is listed as a donation expense on the Statement of Revenue, Expenses, and Changes in Net Assets for proprietary funds. NOTE 20. SUBSEQUENT EVENTS The City received a loan through the State of Utah Department of Environmental Quality in the amount of $4,000,000. The proceeds will be used to replace approximately 4 miles of a 24 inch diameter steel pipeline with numerous leaks and risk of upstream contamination. The pipeline runs through Ogden Canyon from Pine View Reservoir to Ogden City. The loan will be paid back with user fee revenue in the Water Utility over 20 years at an interest rate of 2.26%. 75 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 76 76 ---PAGE BREAK--- Required Supplementary Information 77 77 ---PAGE BREAK--- 78 78 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 79 79 ---PAGE BREAK--- Page 1 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes Property $ 9,823,925 $ 9,823,925 $ 10,048,415 $ 224,490 Sales 13,585,000 13,585,000 13,392,913 (192,087) Franchise 7,800,000 7,800,000 7,578,905 (221,095) Other 4,767,075 4,767,075 4,845,552 78,477 Total Taxes 35,976,000 35,976,000 35,865,785 (110,215) Licenses and permits 1,880,275 1,880,275 2,285,419 405,144 Intergovernmental 6,105,850 11,571,421 7,385,017 (4,186,404) Charges for services 7,380,825 8,288,380 6,557,954 (1,730,426) Fines and forfeitures 3,115,500 3,115,500 2,930,273 (185,227) Interest 70,000 70,000 148,198 78,198 Miscellaneous 1,433,325 2,369,239 1,185,708 (1,183,531) Donations - - 36,250 36,250 Sale of property 15,000 15,000 16,833 1,833 Total revenues 55,976,775 63,285,815 56,411,437 (6,874,378) EXPENDITURES: Mayor 482,450 482,450 477,079 5,371 City council 814,225 859,275 790,373 68,902 Management services Administration 366,200 511,300 510,546 754 Human resources 456,700 444,550 425,765 18,785 Comptroller 585,950 582,150 527,941 54,209 Fiscal operations 499,275 482,850 479,856 2,994 Purchasing 148,700 149,234 148,194 1,040 Recorder 435,350 442,650 442,359 291 Business license 235,075 235,375 229,834 5,541 Fleet and facilities - 435,963 430,892 5,071 Justice Court 1,490,450 1,432,150 1,399,503 32,647 Total Management services 4,217,700 4,716,222 4,594,890 121,332 Circuit court - - - - Corporate counsel 1,049,975 1,076,488 1,065,323 11,165 Non departmental 3,238,550 5,195,383 3,029,171 2,166,212 Police Administration 264,250 684,375 371,898 312,477 Uniform 9,405,800 9,031,925 6,708,113 2,323,812 Support services 7,086,800 7,329,875 9,373,697 (2,043,822) Total Police 16,756,850 17,046,175 16,453,708 592,467 Fire Administration 418,450 907,094 558,432 348,662 Prevention 395,600 433,600 369,078 64,522 Operations 5,811,050 5,754,258 5,799,635 (45,377) Total Fire 6,625,100 7,094,952 6,727,145 367,807 Public services Administration 257,375 442,689 263,502 179,187 Streets 3,106,850 3,083,723 3,187,084 (103,361) Engineering 1,540,025 1,820,607 1,504,093 316,514 OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year Ended June 30, 2012 80 80 ---PAGE BREAK--- Page 2 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget Public services (cont.) Arts, culture and events $ 378,200 $ 391,589 $ 351,977 $ 39,612 Animal services - - - - Parks and cemetery 2,896,825 2,853,886 2,989,997 (136,111) Recreation 1,428,950 1,410,829 1,576,515 (165,686) Total Public services 9,608,225 10,003,323 9,873,168 130,155 Community and economic development Administration 1,757,850 2,217,249 1,312,899 904,350 Property development 2,375,500 4,816,157 2,644,862 2,171,295 Planning 437,900 721,911 828,439 (106,528) Community development 5,141,950 5,585,730 3,608,572 1,977,158 Total Community and economic development 9,713,200 13,341,047 8,394,772 4,946,275 Debt service Principal 2,010,000 2,010,000 2,022,000 (12,000) Interest 470,200 470,200 417,356 52,844 Fees and assessments - - 34,500 (34,500) Total expenditures 54,986,475 62,295,515 53,879,486 8,416,030 Excess (deficiency) of revenues over expenditures 990,300 990,300 2,531,951 1,541,651 OTHER FINANCING SOURCES (USES): Issuance of debt - - 1,737,000 1,737,000 Refunded bonds redeemed - - (1,680,000) (1,680,000) Transfers in 58,800 58,800 20,000 (38,800) Transfers out (1,049,100) (1,049,100) (1,049,100) - Total other financing sources/(uses) (990,300) (990,300) (972,100) 18,200 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - - 1,559,851 1,559,851 Fund balances at beginning of year 7,415,595 7,415,595 7,415,595 - Fund balances at end of year $ 7,415,595 $ 7,415,595 $ 8,975,445 $ 1,559,851 81 81 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DEBT SERVICE Year Ended June 30, 2012 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments 26,000 $ $ 26,000 $ 523 $ (25,477) Interest 8,000 8,000 1,742 (6,258) Total revenues 34,000 34,000 2,265 (31,735) EXPENDITURES: Debt service: Principal - - - - Interest and fiscal charges - - - Capital outlay 34,000 34,000 - 34,000 Total expenditures 34,000 34,000 - 34,000 Excess (deficiency) of revenues over expenditures - - 2,265 (65,735) OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Excess (deficiency) of revenues/sources over (under) expenditures/uses - - 2,265 (65,735) Fund balance at beginning of year (21,092) (21,092) (21,092) - Fund balance at end of year (21,092) $ $ (21,092) $ (18,827) $ (65,735) 82 82 ---PAGE BREAK--- Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ 15,886,100 $ 15,886,100 $ 11,839,283 $ (4,046,817) Charges for services 694,800 694,800 695,814 1,014 Miscellaneous income 435,450 679,450 - (679,450) Interest income 53,800 53,800 101,633 47,833 Sale of property - 267,684 262,729 (4,955) Total revenues 17,070,150 17,581,834 12,899,459 (4,682,375) EXPENDITURES: Current: City Council 10,000 10,000 - 10,000 Community and Economic Development 8,587,775 8,702,585 4,447,911 4,254,674 Debt service: Debt service principal 4,558,350 4,711,224 5,160,000 (448,776) Debt service interest 2,315,375 2,315,375 2,532,148 (216,773) Total expenditures 15,471,500 15,739,184 12,140,059 3,599,125 Excess (deficiency) of revenues over expenditures 1,598,650 1,842,650 759,400 (1,083,250) OTHER FINANCING SOURCES (USES): Issuance of debt - - 5,375,000 5,375,000 Refunded bonds redeemed - - (5,790,000) (5,790,000) Operating transfers in 3,787,200 3,787,200 4,741,204 954,004 Operating transfers out (5,385,850) (5,629,850) (5,989,097) (359,247) Total other financing sources (uses) (1,598,650) (1,842,650) (1,662,893) 179,757 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - - (903,493) (903,493) Fund balance at beginning of year 4,730,043 4,730,043 4,730,043 5,375,000 Fund balance at end of year $ 4,730,043 $ 4,730,043 $ 3,826,550 $ 954,004 Budgeted Amounts OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE OGDEN REDEVELOPMENT AGENCY - SPECIAL REVENUE FUND Year Ended June 30, 2012 83 83 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2012 Budgets and Budgetary Accounting Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all the funds. All annual appropriations lapse at the fiscal year end. Project-length financial plans are adopted for all capital projects funds. Summary of City Budget Procedures and Calendar: 1. The City Council can amend the budget to any extent, provided the budgeted expenditures do not exceed budgeted revenues and appropriated fund balance. 2. Budgets are required by the State of Utah for the General, Special Revenue, Debt Service, and Capital Improvement Project Funds. The city also prepares budgets for Enterprise and Internal Service Funds 3. The City’s organizational structure is divided into major administrative areas of management responsibility for an operation or group of related operations within a functional area referred to as “departments.” Within a department may be several related operations. Each of which is referred to as a “division.” The legal level of control (defined as the level at which the governing body must approve any expenditures in excess of appropriations or transfers of appropriated amounts) required by the State of Utah is at the departmental level. Each year the City publishes a separate budget document prepared according to this legal level of control. 4. The City’s budget is a Financial Plan of all estimated revenues and all appropriations for expenditures. Revenues and Expenditures must balance for the funds required by the State Code as indicated in item 2 above. 5. A tentative budget is presented by the Mayor to the City Council by the first regularly scheduled council meeting in May. The tentative budget is reviewed and tentatively adopted by the Council no later than June 22. 6. The tentative budget is a public record and is available for inspection at the County library, City finance department, City web site and City Recorder’s office for at least ten days prior to adoption of the final budget. 7. Notice of public hearing on adoption of the final budget is published at least seven days prior to the public hearing. 8. The public hearing on the tentatively adopted budget is held no later than June 22. Final adjustments are made to the tentative budget by the council after the public hearing. 9. Occasionally the City Council will exercise their option to open the budget to indicate additional financing sources that become available. Once each year, as the financial report for the prior year is completed, there is a substantial budget opening. At that time carryover funds in the form of encumbrance reserves, capital projects funding and unallocated federal funds are included in the next year’s budget. 10. The final budget is adopted by ordinance before June 22 and a copy of the budget certified by the Budget Officer is filed with the State Auditor within thirty days of adoption. 11. In connection with budget adoption: a. An annual tax ordinance establishing the property tax rate is adopted. b. The City Recorder is to certify the property tax rate to the County Auditor. 12. Budgets for the General, Special Revenue, Debt Service and Capital Improvement Projects Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). 84 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2012 Summary of Action Required for Budget Changes: Transfers of unexpended appropriations from one division to another and from one expenditure account to another in the same department within a fund can be made with the consent of the Budget Officer and CAO. The Council may, by resolution, transfer unexpended appropriations from one department to another department within the same fund. The budget appropriation for any department may be reduced by resolution. Fund budgets may be increased by ordinance after a public hearing. Final amendments to budgets in the current year shall be adopted by the Council by the last day of the fiscal year. Budgets of Enterprise Funds may be increased by ordinance of the governing body (public hearing not required). Schedule of Funding Progress for Ogden City Public Safety (Dollars in Thousands) Actuarial Actuarial Accrued Unfunded Funding Annual UAAL as a Value of Liability (AAL) AAL (UAAL) Ratios Covered % Covered Date Assets Entry Age - / Payroll Payroll / 12/31/2011 $46,088 $73,920 $27,832 62% $5,877 474% 1/1/2011 $46,853 $66,055 $19,202 71% $5,537 346% 1/1/2010 $47,334 $60,463 $13,129 78% $5,407 243% 1/1/2009 $46,009 $58,480 $12,471 78% $5,602 223% 1/1/2008 $32,601 $38,373 $5,772 85% $4,864 119% 85 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2012 Required Supplementary Information INFORMATION ABOUT INFRASTRUCTURE ASSETS REPORTED USING THE MODIFIED APPROACH As allowed by GASB Statement No. 34, Basic Financial Statements – and Management's Discussion and Analysis - for State and Local Governments, the City has adopted an alternative to reporting depreciation on roads and bridges (infrastructure assets) maintained by Ogden City. Under this alternative method, referred to as the “modified approach”, infrastructure assets are not depreciated, and maintenance and preservation costs are expensed. In order to utilize the modified approach, the City is required to:  Maintain an asset management system that includes an up-to-date inventory of eligible infrastructure assets.  Perform and document replicable condition assessments of the eligible infrastructure assets and summarize the results using a measurement scale.  Estimate each year the annual amount to maintain and preserve the eligible infrastructure assets at the condition level established and disclosed by the City.  Document that the infrastructure assets are being preserved approximately at, or above the condition level established by the City. Roads Ogden City uses the Utah State Local Technology Assistance Program (LTAP) to determine the condition of 305 centerline miles of City roads. The assessment is based on the Remaining Service Life (RSL). Our goal is to keep the overall RSL at or above ten years. This is the point at which pavement maintenance is able to keep up with deterioration of pavement and much more expensive street reconstruction projects are not needed. The cost to maintain a pavement with preventative maintenance treatments is about one-third the cost of rehabilitation, or one-sixth the cost of reconstruction. Category RSL Description Very Good 19+ New or nearly new pavements that are mainly free of distress. Good 13-18 Pavements exhibit few, if any, visible signs of distress. Fair 10-12 Surface defects in this category such as cracking, rutting, and raveling. Poor 4-9 These roadways have deteriorated to such an extent that they are in need of resurfacing. Very Poor 0-3 Pavements in this category are severely deteriorated. Condition Level The City's established condition level is to maintain 50 percent of its roads with a rating of “fair” or better and no more than 15 percent of roads with a rating of “very poor”. All streets are surveyed annually to determine their condition. This data is used to determine changes in pavement condition and to prioritize the type and quantity of pavement maintenance work that is to be accomplished during the coming summer. The City performs complete assessments on a calendar year basis. The following table reports the result of pavements with ratings of “fair” or better or “very poor for the last five years: Rating 2012 2011 2010 2009 2008 Fair or Better 88.5% 79.7% 79.7% 54% 56% Very Poor 0% 0.3% 0.3% 2.5% 2% 86 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2011 Required Supplementary Information Bridges Utah Department of Transportation (UDOT), Bridge Operations Section, maintains the inventory of all bridge structures in Ogden City. UDOT requires that bridges spanning over 20 feet require an annual inspection. All bridges in Ogden City are required to be inspected every 2 years by UDOT staff members. A report is submitted to Ogden City indicating what maintenance and repair actions are required. Three categories of condition are established as follows: Category Description Good Preventive maintenance requirements include repair leaking deck joints, apply deck overlays and seals, place concrete sealers to splash zones, paint steel surfaces, and minor beam repairs. Fair Corrective repairs include deck, beam, and substructure repairs, fixing settled approaches, and repairing collision damage. Poor Major rehabilitation and replace includes deck, beam, or substructure replacements or replacement of the entire bridge. Condition Level In response to the annual UDOT bridge inspection report, the recommended actions are either accomplished by Ogden City Public Works Operations Division Staff or by contract. Based on the cost of the resultant contract estimates, projects will be funded using road fund money already in our budget for contract work or materials purchased for in-house staff to accomplish the work. If necessary, a CIP project will be created to accomplish any major repair or alteration work. The City's established condition level is to maintain 50 percent of its bridges with a rating of “good” and no more than 25 percent of bridges with a rating of “poor”. Rating 2011 2010 2009 2008 2007 Good 75% 84% 84% 62% 62% Poor 12.5% 0% 0% 11% 11% The following table presents the City’s estimated amounts needed to maintain and preserve the roads and bridges at or above the established condition levels addressed above, and the amounts actually spent for each of the past five reporting periods: FISCAL YEAR ESTIMATED SPENDING ACTUAL SPENDING 2012 $6,794,376 $5,121,998 2011 $6,850,572 $4,227,680 2010 $6,782,959 $4,468,620 2009 $6,307,162 $3,880,320 2008 $6,176,323 $4,482,806 87 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 88 88 ---PAGE BREAK--- Supplementary Information 89 89 ---PAGE BREAK--- 90 90 ---PAGE BREAK--- Nonmajor Governmental Funds Capital Improvement Projects Fund The Capital Improvement Projects Fund is used to account for financial resources to be used for the construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). Municipal Building Authority Fund A special revenue fund used to account for the lease revenues that are legally restricted to expenditures for the City's development associated with Municipal Building Authority. Downtown Special Assessment Fund A special revenue fund used to account for the special assessment revenues that are legally restricted to expenditures for the City's promotion of downtown business activities. Cemetery Perpetual Care Fund To account for monies received on sale of grave plots which will provide for perpetual upkeep of the graves. Gomer A. Nicholas Park Endowment Fund A permanent Fund to account for the interest earnings of this fund and the transfer of these earnings to the Capital Improvement Projects Fund for use in parks development. 91 ---PAGE BREAK--- OGDEN CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Permanent Capital Municipal Downtown Cemetery Gomer Improvement Building Special Perpetual A. Projects Authority Assessment Care Nicholas Totals ASSETS Cash $ 4,175,420 $ 1,443,712 $ 237,218 $ 1,147,540 $ 18,564 $ 7,022,454 Accounts receivable (net) 92,500 - 9,534 22,242 - 124,276 Inventory, at cost - - - 81,150 - 81,150 Special assess. receivable - - 105,351 - - 105,351 Interest receivable - - 13,164 - - 13,164 Restricted assets: Loans due from other funds - - - 15,873 - 15,873 Investments - 415,696 - - 403,922 819,618 Interest receivable (net) - - - - - - Total restricted assets - 415,696 - 15,873 403,922 835,491 Total assets $ 4,267,920 $ 1,859,408 $ 365,267 $ 1,266,805 $ 422,486 $ 8,181,886 92 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 236,444 $ - $ 9,144 $ - $ - $ 245,588 Retainage payable 3,673 - - - - 3,673 Deferred revenue 27,485 - 118,515 - - 146,000 Total current liabilities 267,602 - 127,659 - - 395,261 Total liabilities 267,602 - 127,659 - - 395,261 FUND BALANCE Nonspendable Permanent fund principal - - - - 403,922 403,922 Inventory - - - 81,150 - 81,150 Long-term loans to other funds - - - 15,873 - 15,873 Spendable Restricted Unspent bond proceeds - 415,696 - - - 415,696 Assigned Downtown business promotion - - 237,608 - - 237,608 Non-departmental 5,500 - - - - 5,500 Public services 388,945 - - - - 388,945 Debt service - 215,000 - - - 215,000 Capital projects 3,605,873 - - - - 3,605,873 Special revenue - 1,228,712 - 1,169,782 18,564 2,417,058 Total fund balance 4,000,318 1,859,408 237,608 1,266,805 422,486 7,786,625 Total liabilities and fund balances $ 4,267,920 $ 1,859,408 $ 365,267 $ 1,266,805 $ 422,486 $ 8,181,886 June 30, 2012 Special Revenue ---PAGE BREAK--- Permanent Capital Municipal Downtown Cemetery Gomer Improvement Building Special Perpetual A. Projects Authority Assessment Care Nicholas Totals REVENUES: Charges for services $ - $ 535,000 $ - $ 9,757 $ - $ 544,757 Special assessments - - 229,966 - - 229,966 Interest 25,867 13,342 1,756 11,516 3,853 56,334 Intergovernmental 207,650 - - - - 207,650 Miscellaneous 135,000 100,000 23,000 - - 258,000 Total revenue 368,517 648,342 254,722 21,273 3,853 1,296,707 93 EXPENDITURES: Public services 1,027,355 - - (283) - 1,027,072 Non-departmental 267,720 - 86,441 - - 354,161 Community and economic development - - 151,348 - - 151,348 Bond principal - 295,000 - - - 295,000 Interest 216 243,988 - - - 244,204 Total expenditures 1,295,291 538,988 237,789 (283) - 2,071,785 Excess (deficiency) of revenues over expenditures before operating transfers (926,774) 109,354 16,933 21,556 3,853 (775,078) OTHER FINANCING SOURCES (USES): Transfers in 1,181,775 - - - - 1,181,775 Transfers out (76,350) - - - - (76,350) Total financing sources/uses: 1,105,425 - - - - 1,105,425 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 178,651 109,354 16,933 21,556 3,853 330,347 Fund balance at the beginning of year 3,821,667 1,750,054 220,675 1,245,249 418,633 7,456,278 Fund balance at the end of year $ 4,000,318 $ 1,859,408 $ 237,608 $ 1,266,805 $ 422,486 $ 7,786,625 Special Revenue OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENT FUNDS Year Ended June 30, 2012 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT PROJECTS Year Ended June 30, 2012 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Intergovernmental $ - $ 117,650 $ 207,650 $ 90,000 Miscellaneous - 7,386,388 135,000 (7,251,388) Interest 10,000 10,000 25,867 15,867 Total revenues 10,000 7,514,038 368,517 (7,145,521) EXPENDITURES: Current: Non-departmental 574,300 2,377,090 267,720 2,109,370 Public services 827,525 3,919,097 1,027,139 2,891,958 Debt service: Interest and fiscal charges - - 216 (216) Total expenditures 1,401,825 6,296,187 1,295,075 5,001,112 Excess (deficiency) of revenues over expenditures (1,391,825) 1,217,851 (926,558) (2,144,409) OTHER FINANCING SOURCES (USES): Transfers in 1,161,925 1,161,925 1,181,775 19,850 Transfers out - (76,350) (76,350) - Total other financing sources (uses) 1,161,925 1,085,575 1,105,425 19,850 Excess (deficiency) of revenues/sources over (under) expenditures/uses (229,900) 2,303,426 178,867 (2,124,559) Fund balance at beginning of year 3,821,667 3,821,667 3,821,667 - Fund balance at end of year $ 3,591,767 $ 6,125,093 $ 4,000,534 $ (2,124,559) 94 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE MUNICIPAL BUILDING AUTHORITY Year Ended June 30, 2012 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 535,000 $ 535,000 $ 535,000 $ - Miscellaneous 100,000 100,000 100,000 - Interest 10,000 10,000 13,343 3,343 Total revenues 645,000 645,000 648,343 3,343 EXPENDITURES: Debt service: Principal 295,000 295,000 295,000 - Interest and fiscal charges 250,000 250,000 243,988 6,012 Total expenditures 545,000 545,000 538,988 6,012 Excess (deficiency) of revenues over expenditures 100,000 100,000 109,355 9,355 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 100,000 100,000 109,355 9,355 Fund balance at beginning of year 1,750,054 1,750,054 1,750,054 - Fund balance at end of year $ 1,750,054 $ 1,850,054 $ 1,859,409 $ 9,355 95 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DOWNTOWN SPECIAL ASSESSMENT Year Ended June 30, 2012 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ 175,000 $ 175,000 $ 229,966 $ 54,966 Miscellaneous 23,000 23,000 23,000 - Interest 5,000 5,000 1,756 (3,244) Total revenues 203,000 203,000 254,722 51,722 EXPENDITURES: Current: Non-departmental 100,000 100,000 86,441 13,559 Community and Economic Development 103,000 103,000 151,348 (48,348) Total expenditures 203,000 203,000 237,789 (34,789) Excess (deficiency) of revenues over expenditures - - 16,933 16,933 Fund balance at beginning of year 220,675 220,675 220,675 - Fund balance at end of year 220,675 $ $ 220,675 $ 237,608 $ 16,933 96 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CEMETERY PERPETUAL CARE Year Ended June 30, 2012 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 99,250 $ 99,250 $ 9,757 $ (89,493) Interest 20,000 20,000 11,516 (8,484) Total revenues 119,250 119,250 21,273 (97,977) EXPENDITURES: Current: Public services 119,250 119,250 (283) 119,533 Total expenditures 119,250 119,250 (283) 119,533 Excess (deficiency) of revenues over expenditures - - 21,556 21,556 Fund balance at beginning of year 1,245,249 1,245,249 1,245,249 - Fund balance at end of year $ 1,245,249 $ 1,245,249 $ 1,266,805 $ 21,556 97 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE Permanent Trust Fund GOMER A. NICHOLAS Year Ended June 30, 2012 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Interest $ 4,000 $ 4,000 $ 3,853 $ (147) Total revenues 4,000 4,000 3,853 (147) EXPENDITURES: Current: Management services - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 4,000 4,000 3,853 (147) OTHER FINANCING SOURCES (USES): Transfers out (4,000) (4,000) - 4,000 Total other financing sources (uses) (4,000) (4,000) - 4,000 Excess (deficiency) of revenues/sources over (under) expenditures/uses - - 3,853 3,853 Fund balance at beginning of year 418,633 418,633 418,633 - Fund balance at end of year $ 418,633 $ 418,633 $ 422,486 $ 3,853 98 ---PAGE BREAK--- Nonmajor Enterprise Funds Airport Fund To account for administration, operation and maintenance of the Ogden Hinckley Airport. Golf Courses Fund To account for the provision of two recreational golf facilities to Ogden City residents and residents of the surrounding area. Dinosaur Park Fund To account for the administration, operation and maintenance of the dinosaur park. Recreation Fund To account for adult and youth recreational programs administered by Ogden City. 99 ---PAGE BREAK--- Page 1 of 2 Golf ASSETS Airport Courses Current assets Cash $ 313,693 $ - Accounts receivable (net) 1,491,644 13,429 Inventory, at cost - 61,092 Total current assets 1,805,337 74,521 Noncurrent assets Restricted: Cash 50 775 Total restricted assets 50 775 Capital Assets: Land 1,941,461 34,800 Buildings 884,658 714,486 Construction in process 2,799,995 - Improvements 23,561,589 2,199,687 Office furniture 12,841 - Equipment - - 29,200,544 2,948,973 Less accumulated depreciation (13,304,876) (1,919,608) Net capital assets 15,895,668 1,029,365 Total noncurrent assets 15,895,718 1,030,140 Total assets 17,701,055 1,104,661 LIABILITIES AND FUND EQUITY LIABILITIES: Current liabilities Due to other funds - 135,184 Accounts payable 1,001,618 10,505 Accrued wages payable 4,173 9,631 Accrued compensated absences 12,164 8,594 Retainage payable 216,346 - Unearned revenue 489,600 1,129 Total current liabilities 1,723,901 165,043 Noncurrent liabilities Compensated absences 28,382 36,598 Loans from other funds 1,731,388 684,042 Total noncurrent liabilities 1,759,770 720,640 Total liabilities 3,483,671 885,683 NET ASSETS: Investment in capital assets (net of related debt) 15,895,668 1,013,492 Unrestricted (1,678,284) (794,514) Total net assets $ 14,217,384 $ 218,978 OGDEN CITY CORPORATION COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS June 30, 2012 100 ---PAGE BREAK--- Page 2 of 2 Dinosaur Park Recreation Total $ - $ 135,986 $ 449,679 - 3,489 1,508,562 - - 61,092 - 139,475 2,019,333 - 170 995 - 170 995 - - 1,976,261 - - 1,599,144 - - 2,799,995 - 231,626 25,992,902 - - 12,841 - 8,090 8,090 - 239,716 32,389,233 - (237,436) (15,461,920) - 2,280 16,927,313 - 2,450 16,928,308 - 141,925 18,947,641 27,878 - 163,062 - 19,128 1,031,251 - 2,453 16,257 - - 20,758 - - 216,346 - 309 491,038 27,878 21,890 1,938,712 - - 64,980 - - 2,415,430 - - 2,480,410 27,878 21,890 4,419,122 - 2,280 16,911,440 (27,878) 117,755 (2,382,921) $ (27,878) $ 120,035 $ 14,528,519 101 ---PAGE BREAK--- COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS Page 1 of 2 Golf Airport Courses OPERATING REVENUES Charges for services $ 311,442 $ 1,015,309 g g Miscellaneous income 9,859 83,060 321,301 1,098,369 OPERATING EXPENSES Cost of materials and parts - 139,271 Personal services: Salaries and wages 322,138 471,138 Benefits 130,638 126,623 Supplies Office supplies 3,115 1,942 Operating supplies 17,021 32,708 Repair and maintenance supplies 5,097 - Charges for services: Public utility services 66,806 97,273 Travel and education 10,531 522 Contracted agreements 60,267 40,905 Other operating expenses: Rental charges 2,504 - Fiscal charges - - Depreciation 979,039 65,284 Data processing 16,075 10,000 Maintenance and repair 301,646 127,136 Vehicle operating expenses 54,420 200,800 Miscellaneous 22,686 20,997 Total operating expenses 1,991,983 1,334,599 Operating income (loss) (1,670,682) (236,230) NON-OPERATING REVENUES (EXPENSES) Revenues Interest income 92 - Expenses: Interest expense - (4,189) Total non-operating revenues (expenses) 92 (4,189) Capital Contributions 2,557,380 - Income before operating transfers 886,790 (240,419) Transfers in 1,161,325 337,975 Transfers out (500) - Change in net assets 2,047,615 97,556 Net assets, beginning 12,169,769 121,422 Net assets, ending $ 14,217,384 $ 218,978 OGDEN CITY CORPORATION NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2012 102 ---PAGE BREAK--- Page 2 of 2 Dinosaur Park Recreation Totals $ - $ 217,027 $ 1,543,778 - - 92,919 - 217,027 1,636,697 4,285 - 143,556 - 75,404 868,680 - 8,893 266,154 - 1,330 6,387 - 44,827 94,556 - - 5,097 - 7,654 171,733 - - 11,053 - 37,977 139,149 - (1,530) 974 - 7,437 7,437 - 760 1,045,083 - - 26,075 - 2,640 431,422 - - 255,220 - 38,587 82,270 4,285 223,979 3,554,846 (4,285) (6,952) (1,918,149) - 872 964 - - (4,189) - 872 (3,225) - - 2,557,380 (4,285) (6,080) (1,921,374) - - 1,499,300 (2,712,779) - (2,713,279) (2,717,064) (6,080) (577,973) 2,689,186 126,115 15,106,492 $ (27,878) $ 120,035 $ 14,528,519 103 ---PAGE BREAK--- Airport Golf CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 714,599 $ 1,093,627 Cash received (paid) from (to) other funds - 67,868 Cash payments to suppliers for goods and services 300,495 (692,481) Cash payments to employees for services (479,894) (583,006) Net cash provided by (used in) operating activities 535,200 (113,992) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 1,161,325 337,975 Transfers (out) (500) - Net cash provided by noncapital financing activities 1,160,825 337,975 CASH FLOWS FROM CAPTIAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (2,698,464) - Capital grants and contributions 1,096,486 - Change in retainage payable 216,346 - Change in loans from other funds (115,425) (223,874) Net cash provided by (used in) capital and related financing activities (1,501,057) (223,875) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 92 - Interest expense on deficit balances - (108) Net cash from investing activities 92 (108) Net increase (decrease) in cash equivalents 195,060 - Cash/equivalents at beginning of year 118,683 775 Cash/equivalents at end of year $ 313,743 $ 775 Cash/equivalents, end of year (unrest.) 313,693 - Cash/equivalents, end of year (restricted) 50 775 Total cash/equivalents, end of year $ 313,743 $ 775 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ (1,670,682) $ (236,230) Reconciliation adjustments: Depreciation 979,039 65,284 Changes in assets and liabilities: Change in accounts receivable 393,298 (4,742) Change in inventory - 11,663 Change in due to other funds - 67,868 Change in accounts payable 874,263 (855) Change in other unearned revenue (13,600) 800 Change in wages payable and compensated absences (27,118) (17,780) Total adjustments 2,205,882 122,238 Net cash provided by (used in) operating activities $ 535,200 $ (113,992) OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2012 104 ---PAGE BREAK--- Page 2 of 2 Dinosaur Park Recreation Total $ 65,208 $ 216,523 $ 2,089,957 (1,845) - 66,023 (33,649) (136,607) (562,242) (29,714) (94,444) (1,187,058) - (14,528) 406,680 - - 1,499,300 - - (500) - - 1,498,800 - - (2,698,464) - - 1,096,486 - - 216,346 - - (339,000) - - (1,724,932) - 872 964 - - (108) - 872 856 - (13,656) 181,404 - 149,812 269,270 $ - $ 136,156 $ 450,674 - 135,986 449,679 - 170 995 $ - $ 136,156 $ 450,674 $ (4,285) $ (6,952) $ (1,918,149) - 760 1,045,083 65,208 (504) 453,260 - - 11,663 (1,845) - 66,023 (29,364) 2,006 846,050 - 309 (12,491) (29,714) (10,147) (84,759) 4,285 (7,576) 2,324,829 $ - $ (14,528) $ 406,680 105 ---PAGE BREAK--- Internal Service Funds Fleet & Facilities Fund To account for the costs of operating a maintenance facility for automotive, mechanical, and electrical equipment used by other departments. Such costs are billed to the other departments at actual cost, which includes depreciation on the garage building and improvements and the machinery and equipment used to provide the service. This fund also accounts for the City's physical facilities maintenance activities. Management Information Systems Fund Provides information system services to other departments, all of which are integrated into the City’s network and pc computers, and accounts for the costs of these services. Costs are charged to the departments on an estimated usage basis. Risk Management Fund Accounts for the risk management activities of the City which include monitoring and administering liability and workman's compensation claims against the City, determining the City's insurance needs and implementing safety programs. Costs are charged to departments on percentage basis according to type of employees and total payroll. 106 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk ASSETS Stores Systems Management Totals Current assets Cash $ 942,359 $ - $ - $ 942,359 Accounts receivable 388,287 688 - 388,975 Inventory, at cost 969,107 - - 969,107 Total current assets 2,299,753 688 - 2,300,441 Noncurrent assets Restricted assets: Employee PC loans receivable - 83,533 - 83,533 Total noncurrent restricted assets - 83,533 - 83,533 Capital assets: Land 9,000 - - 9,000 Buildings 1,603,918 - - 1,603,918 Improvements other than buildings 293,877 - - 293,877 Office furniture 13,586 - - 13,586 Equipment 7,352,576 4,461,175 - 11,813,751 Vehicles 14,933,924 - - 14,933,924 Intangible - 230,926 - 230,926 In-process 32,615 - - 32,615 Total capital assets 24,239,496 4,692,101 - 28,931,597 Less accumulated depreciation/amortization (15,814,536) (4,111,330) - (19,925,866) Net capital assets 8,424,960 580,771 - 9,005,731 Total noncurrent assets 8,424,960 664,304 - 9,089,264 Total assets $ 10,724,713 $ 664,992 $ - $ 11,389,705 LIABILITIES AND FUND EQUITY Current liabilities Due to other funds $ - $ 89,090 $ 16,811 $ 105,901 Accounts payable 1,035,075 91,062 50,308 1,176,445 Contracts payable 654,644 - - 654,644 Other payable 142,928 - - 142,928 Claims payable - - 981,850 981,850 Accrued wages payable 12,436 22,395 1,857 36,688 Accrued compensated absences 19,657 25,782 - 45,439 Total current liabilities 1,864,740 228,329 1,050,826 3,143,895 Noncurrent liabilities Claims payable - - 1,055,459 1,055,459 Contracts payable 2,735,530 - - 2,735,530 Compensated absences 45,867 60,159 - 106,026 Total noncurrent liabilities 2,781,397 60,159 1,055,459 3,897,015 Total liabilities 4,646,137 288,488 2,106,285 7,040,910 NET ASSETS RETAINED EARNINGS: Investment in capital assets (net of related debt) 5,034,786 580,771 - 5,615,557 Restricted for system development - 34,449 - 34,449 Unrestricted 1,043,790 (238,716) (2,106,285) (1,301,211) Total net assets 6,078,576 376,504 (2,106,285) 4,348,795 Total liabilities/fund equity $ 10,724,713 $ 664,992 $ - $ 11,389,705 OGDEN CITY CORPORATION COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2012 107 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk Stores Systems Management Totals OPERATING REVENUES: Charges to departments $ 8,352,933 $ 3,440,999 $ 1,722,221 $ 13,516,153 Miscellaneous income 128,177 111,435 - 239,612 Total operating income 8,481,110 3,552,434 1,722,221 13,755,765 OPERATING EXPENSES: Cost of materials and parts 2,652,615 - - 2,652,615 Personal services: Salaries and wages 890,953 1,005,879 158,143 2,054,975 Benefits 418,437 409,915 48,856 877,208 Supplies: Office supplies 49,738 7,025 6,419 63,182 Operating supplies 68,601 2,215 5,335 76,151 Repair and maintenance Supplies 3,550 - - 3,550 Charges for services: Public utility services 896,791 332,862 5,501 1,235,154 Travel and education 6,155 22,200 5,440 33,795 Contracted agreements 1,483,517 1,151,493 272,023 2,907,033 Other operating expenses: Computer equipment - 491,189 - 491,189 Depreciation/amortization 1,939,051 189,197 - 2,128,248 Data processing 114,850 2,138 24,750 141,738 Maintenance and repair 86,115 1,018 487 87,620 Vehicle operating expenses 117,510 4,367 4,677 126,554 Claims payments - - 1,313,298 1,313,298 Rental expense 99,798 - 228 100,026 Miscellaneous 13,810 256,704 1,988 272,502 Total operating expenses 8,841,491 3,876,202 1,847,145 14,564,838 Operating income (loss) (360,381) (323,768) (124,924) (809,073) NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income 15,752 753 448 16,953 Gain on sale of assets 280,837 - - 280,837 Expenses: Interest expense (334,796) - - (334,796) Total non-operating revenue (expense) (38,207) 753 448 (37,006) Capital contributions 272,912 - - 272,912 Income before operating transfers (125,676) (323,015) (124,476) (573,167) Transfers out (131,687) - - (131,687) Change in net assets (257,363) (323,015) (124,476) (704,854) Net Assets, beginning 6,335,939 699,519 (1,981,809) 5,053,649 Net Assets, ending $ 6,078,576 $ 376,504 $ (2,106,285) $ 4,348,795 OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS Year Ended June 30, 2012 108 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk Stores Systems Management Totals CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 8,226,946 $ 3,554,748 $ 1,722,221 $ 13,503,915 Cash received (paid) from (to) other funds - 89,090 16,811 105,901 Cash payments to suppliers for goods and services (3,769,375) (2,270,424) (1,936,881) (7,976,680) Cash payments to employees for services (1,331,651) (1,420,308) (231,047) (2,983,006) Net cash from operating activities 3,125,920 (46,894) (428,896) 2,650,130 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers out (69,378) - - (69,378) PC loans paid - (8,547) - (8,547) Net cash from noncapital financing activities (69,378) (8,547) - (77,925) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (3,765,854) (122,659) - (3,888,513) Capital grants 210,603 - - 210,603 Payments on contracts payable (565,581) - - (565,581) Interest expense on loans (333,646) - - (333,646) Proceeds from sale of assets 109,723 - - 109,723 Net cash from capital financing activities (4,344,755) (122,659) - (4,467,414) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 15,752 753 449 16,954 p Net cash from investing activities 15,752 753 449 16,954 Net increase (decrease) in cash equivalents (1,272,461) (177,347) (428,447) (1,878,255) Cash/equivalents, beginning 2,214,820 177,347 428,447 2,820,614 Cash/equivalents, ending $ 942,359 $ - $ - $ 942,359 Cash and cash equivalents at end of year: Unrestricted cash 942,359 - - 942,359 Total cash at end of year $ 942,359 $ - $ - $ 942,359 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ (360,381) $ (323,768) $ (124,924) $ (809,073) Reconciliation adjustments: Depreciation 1,939,051 189,197 - 2,128,248 Changes in assets and liabilities: Change in accounts receivable (254,164) 2,314 - (251,850) Change in inventory 4,191 - - 4,191 Change in prepaids 950,086 - - 950,086 Change in due to other funds - 89,090 16,811 105,901 Change in accounts payable 819,298 787 10,007 830,092 Change in claims payable - - (306,742) (306,742) Change in wages payable (22,261) (4,514) (24,048) (50,823) Change in other accrued liabilities 50,100 - - 50,100 Total adjustments 3,486,301 276,874 (303,972) 3,459,203 Net cash provided by (used in) operating activities $ 3,125,920 $ (46,894) $ (428,896) $ 2,650,130 The Fleet, Facilities, Electronics and Stores internal service fund recorded a capital lease in the amount of $3,443,959, which financed the purchase of capital assets and the payoff an existing lease. OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year Ended June 30, 2012 109 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2012 Supplementary Information INFORMATION ABOUT IMPACT FEES AS REQUIRED BY UTAH CODE The laws of the State of Utah require that within 180 days after the close of the fiscal year-end, each municipality prepare an annual financial report. “Each annual report shall identify impact fee funds by the year in which they were received, the project from which the funds were collected, the capital projects for which the funds are budgeted, and the projected schedule of expenditure.” CAPITAL ASSETS – GOVERNMENTAL ACTIVITIES EXCLUDING INTERNAL SERVICE FUNDS CAPITAL ASSETS The following schedule presents only the capital assets related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the amounts presented. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. Governmental funds, capital assets 2012 2011 Land 19,979,216 $ 19,969,604 $ Buildings and improvements 113,240,919 108,037,541 Machinery and equipment 2,786,315 2,732,007 Infrastructure 99,790,208 97,835,264 Construction in progress 3,194,078 3,077,106 Accumulated depreciation (89,380,149) (70,115,014) Net Governmental Funds, capital assets 149,610,587 $ 161,536,508 $ 110 ---PAGE BREAK--- Statistical Section 111 ---PAGE BREAK--- 112 ---PAGE BREAK--- Statistical Section (Unaudited) This part of the Ogden City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City'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 City's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. 113 ---PAGE BREAK--- FINANCIAL TRENDS (Unaudited) 114 ---PAGE BREAK--- Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Governmental activities Invested in capital assets, net of related debt $ 106,921,454 $ 95,321,152 $ 92,749,342 $ 95,889,453 $ 92,141,925 $ 84,313,339 $ 87,589,530 $ 88,862,111 $ 90,026,228 $ 90,469,850 Restricted 14,223,370 15,330,598 15,070,975 16,566,676 23,404,053 23,109,238 11,702,871 11,419,430 11,917,845 14,956,114 Unrestricted 1,014,620 3,191,152 2,262,708 5,161,968 3,034,912 3,829,377 3,290,456 (12,816,700) (14,377,522) 1,225,344 Total governmental activities net assets $ 122,159,444 $ 113,842,902 $ 110,083,025 $ 117,618,097 $ 118,580,890 $ 111,251,954 $ 102,582,857 $ 87,464,841 $ 87,566,551 $ 106,651,308 Business-type activities Invested in capital assets, net of related debt $ 162,826,097 $ 173,316,247 $ 172,332,110 $ 176,302,702 $ 168,598,250 $ 166,219,757 $ 159,802,111 $ 172,829,482 $ 173,651,238 137,083,566 Restricted 349,829 349,228 349,228 349,228 49,280,783 992,091 956,676 1,971,539 2,045,380 1,986,251 Unrestricted 35,450,773 21,056,849 18,668,733 8,044,063 (42,979,592) 8,898,266 15,735,682 9,881,273 10,687,031 34,547,615 Total business-type activities net assets $ 198,626,699 $ 194,722,324 $ 191,350,071 $ 184,695,993 $ 174,899,441 $ 176,110,114 $ 176,494,469 $ 184,682,294 $ 186,383,649 173,617,432 Primary government Invested in capital assets, net of related debt $ 269,747,551 $ 268,637,399 $ 265,081,452 $ 272,192,155 $ 260,740,175 $ 250,533,096 $ 247,391,641 $ 261,691,593 $ 263,677,466 227,553,416 Restricted 14,573,199 15,679,826 15,420,203 16,915,904 72,684,836 24,101,329 12,659,547 13,390,969 13,963,225 16,942,365 Unrestricted 36,465,393 24,248,001 20,931,441 13,206,031 (39,944,680) 12,727,643 19,026,138 (2,935,427) (3,690,491) 35,772,959 Total primary government net assets $ 320,786,143 $ 308,565,226 $ 301,433,096 $ 302,314,090 $ 293,480,331 $ 287,362,068 $ 279,077,326 $ 272,147,135 $ 273,950,200 280,268,740 Source: Ogden City Comptroller Division Further discussion of this data is available in the Management Discussion and Analysis, the transmittal letter and the notes found in the financial section. 115 Ogden City Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) (UNAUDITED) - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Value by Dollars Year Net Assets by Component Governmental activities Business-type activities Primary government ---PAGE BREAK--- Ogden City Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) (UNAUDITED) Page 1 of 2 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Revenues Governmental Activities: General Revenues: Taxes $ 43,797,554 $ 43,423,270 $ 42,240,214 $ 41,657,956 $ 42,270,568 $ 42,870,200 $ 38,373,228 $ 38,328,343 $ 36,017,959 33,971,622 Other General Revenues (35,630) 880,693 (8,614,254) 1,585,578 3,077,324 971,051 2,043,186 2,488,483 882,611 4,307,620 Charges for Services: General Administration 14,717,254 14,932,975 15,809,004 15,875,234 17,093,520 7,748,767 9,403,129 12,258,702 9,910,771 8,047,423 Public Safety 3,354,242 3,402,995 3,251,048 3,529,180 3,321,966 2,762,457 2,206,926 3,240,239 3,059,210 1,450,229 Transportation 295,025 110,025 110,025 - - - - - - 60,000 Environmental Protection 3,372,530 3,015,013 3,383,824 2,995,996 4,025,826 3,344,855 3,080,519 5,425 10,342 99,096 Leisure Opportunities 420,549 409,028 340,475 314,290 1,039,951 1,147,366 1,104,187 - 1,326,588 1,203,545 Community Development 2,225,389 2,146,888 3,024,362 2,617,546 2,799,860 2,655,432 1,896,147 2,206,970 1,909,324 3,665,677 Operating Grants and Contributions 3,662,162 5,733,914 4,680,386 4,637,076 4,472,445 3,237,918 5,469,986 7,264,383 7,743,220 4,561,636 Capital Grants and Contributions 5,055,575 3,268,214 3,095,794 2,834,716 3,269,306 5,332,442 2,552,825 2,650,734 3,158,693 2,310,903 Total Governmental Activities Revenues 76,864,650 77,323,015 67,320,878 76,047,572 81,370,766 70,070,488 66,130,133 68,443,279 64,018,718 59,677,751 Business-Type Activities: General Revenues: Other General Revenues (215,239) 428,920 1,452,281 1,359,677 1,085,558 869,725 4,664,474 862,142 828,125 1,057,772 Charges for Services: Medical Services 6,873,003 5,454,941 4,855,855 5,731,709 4,315,263 3,493,928 2,599,408 3,005,572 2,019,242 1,694,577 Airport 321,301 318,584 295,622 275,495 323,346 273,730 304,641 274,992 208,732 240,079 Utilities 31,168,887 28,267,206 25,012,682 24,161,797 19,593,131 15,947,745 20,703,204 17,354,190 16,459,367 16,246,793 Refuse 4,945,202 4,878,913 4,678,149 4,925,650 4,859,881 4,019,859 - - - 1,109,338 Recreation 1,315,396 1,629,958 1,724,684 1,774,510 1,058,545 1,066,098 1,012,274 1,177,656 1,238,980 7,338,021 Property Management 3,580,846 3,850,478 3,599,422 3,225,121 2,877,729 2,141,335 2,474,339 7,175,425 8,025,864 - Operating Grants and Contributions - - - - - 1,630,527 2,974,921 2,042,822 4,694,006 8,964,319 Capital Grants and Contributions 3,746,183 3,642,770 1,922,050 2,182,647 2,640,419 2,543,454 265,319 716,645 3,148,221 - Total Business-Type Activities Revenues 51,735,579 48,471,770 43,540,745 43,636,606 36,753,872 31,986,401 34,998,580 32,609,444 36,622,537 36,650,899 Total Primary Government Revenues 128,600,229 125,794,785 110,861,623 119,684,178 118,124,638 102,056,889 $ 101,128,713 $ 101,052,723 $ 100,641,255 96,328,650 Expenses Governmental Activities: General Administration $ 24,173,956 $ 26,378,133 $ 23,323,641 $ 24,976,880 $ 25,603,725 $ 15,515,738 $ 16,592,363 $ 12,743,125 $ 14,870,625 15,513,093 Public Safety 25,742,362 25,232,522 26,262,584 27,133,365 26,822,607 22,761,963 21,241,719 19,749,804 20,761,099 19,290,381 Transportation 5,236,900 6,095,515 5,187,967 5,462,687 5,641,984 5,763,544 7,526,427 4,288,029 4,511,192 5,206,523 Environmental Protection 582,561 585,712 557,528 510,501 520,604 422,424 398,019 25,072 13,848 1,650,660 Leisure Opportunities 6,047,729 5,377,416 5,264,019 5,357,892 5,799,222 5,783,791 6,162,480 1,004,428 1,878,428 1,378,373 Community Development 5,782,149 7,443,575 7,837,498 8,117,169 9,934,181 6,935,707 8,422,124 19,807,703 18,252,479 16,896,453 Interest on Long-Term Debt 4,507,901 4,421,011 4,327,042 5,246,392 4,236,068 4,841,020 3,138,558 3,745,000 3,691,124 1,440,965 Total Governmental Activities Program Expenses 72,073,559 75,533,884 72,760,279 76,804,886 78,558,391 62,024,187 63,481,690 61,363,161 63,978,795 61,376,448 116 ---PAGE BREAK--- Page 2 of 2 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Business-Type Activities: Medical Services 5,136,183 4,939,844 5,052,084 4,649,854 5,309,021 4,610,850 3,946,947 3,528,822 3,165,958 3,183,742 Airport 1,991,983 1,754,491 1,744,840 1,423,212 2,324,058 1,793,226 1,499,326 1,408,112 1,603,342 1,176,054 Utilities 26,358,238 24,576,722 21,666,957 21,585,626 16,145,793 15,293,929 18,937,363 18,871,487 17,474,990 15,662,746 Refuse 4,563,104 4,489,157 4,082,848 4,122,402 4,356,267 4,148,941 1,347,419 1,585,168 1,498,993 1,507,983 Recreation 1,567,052 2,252,134 2,220,201 2,083,593 1,272,750 1,337,385 4,721,336 10,257,504 9,156,306 6,279,954 Property Management 4,689,194 4,258,808 4,215,409 4,213,562 4,351,300 4,563,629 - - - - Total Business-Type Activities Program Expenses 44,305,754 42,271,156 38,982,339 38,078,249 33,759,189 31,747,960 30,452,391 35,651,093 32,899,589 27,810,479 Total Primary Government Program Expenses $ 116,379,313 $ 117,805,040 $ 111,742,618 $ 114,883,135 $ 112,317,580 $ 93,772,147 $ 93,934,081 $ 97,014,254 $ 96,878,384 89,186,927 Change in Net Assets Before Transfers: Net (Expense)/Revenue Governmental activities $ 4,791,091 $ 1,789,131 $ (5,439,401) $ (757,314) $ 2,812,375 $ 8,046,301 $ 2,648,443 $ 7,080,118 $ 39,923 (1,698,697) Business-type activities 7,429,825 6,200,614 4,558,406 5,558,357 2,994,683 238,441 4,546,189 (3,041,649) 3,722,948 8,840,420 Total primary government net (expense)/revenue $ 12,220,916 $ 7,989,745 $ (880,995) $ 4,801,043 $ 5,807,058 $ 8,284,742 $ 7,194,632 $ 4,038,469 $ 3,762,871 7,141,723 General Revenues and Other Changes in Net Assets Governmental Activities: Transfers $ 3,525,450 $ 1,970,747 $ (2,095,672) $ 847,340 $ 4,070,296 $ 622,796 $ 12,734,014 $ (2,960,213) $ (7,817,707) (4,545,300) Total Governmental Activities 3,525,450 1,970,747 (2,095,672) 847,340 4,070,296 622,796 12,734,014 (2,960,213) (7,817,707) (4,545,300) Business-Type Activities: Transfers (3,525,450) (1,970,747) 2,095,672 (847,340) (4,070,296) (622,796) (12,734,014) 2,960,213 7,817,707 4,545,300 Total Business-Type Activities (3,525,450) (1,970,747) 2,095,672 (847,340) (4,070,296) (622,796) (12,734,014) 2,960,213 7,817,707 4,545,300 Total Primary Government $ - $ - $ - $ - $ - $ - $ - $ - $ - - Change in Net Assets Governmental Activities $ 8,316,542 $ 3,759,878 $ (7,535,073) $ 90,026 $ 6,882,671 $ 8,669,097 $ 15,382,457 $ 4,119,905 $ (7,777,784) (6,243,997) Business-Type Activities 3,904,375 4,229,867 6,654,078 4,711,017 (1,075,613) (384,355) (8,187,825) (81,436) 11,540,655 13,385,720 Total primary government $ 12,220,917 $ 7,989,745 $ (880,995) $ 4,801,043 $ 5,807,058 $ 8,284,742 $ 7,194,632 $ 4,038,469 $ 3,762,871 7,141,723 Source: Ogden City Comptroller Division Further discussion of this data is available in the Management Discussion and Analysis, the transmittal letter and the notes found in the financial section. 117 ---PAGE BREAK--- Ogden City Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (UNAUDITED) Page 1 of 2 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Revenues Taxes and special assessments $ 47,935,557 $ 46,566,375 $ 45,249,486 $ 44,597,418 $ 43,611,330 $ 42,623,435 $ 40,600,630 $ 38,300,398 $ 36,017,959 33,674,649 Licenses and permits 2,285,419 1,817,655 2,023,309 1,893,276 2,878,949 2,363,717 2,100,508 2,165,027 1,760,100 1,761,584 Intergovernmental 7,592,667 7,222,608 7,283,399 6,738,715 7,039,957 5,849,188 7,707,958 9,827,317 9,873,197 6,118,536 Charges for services 7,798,525 7,477,912 8,088,203 7,906,072 8,801,731 7,618,203 6,531,996 6,117,999 5,993,359 7,016,822 Fines and forfeitures 2,930,273 2,906,270 2,339,788 2,708,901 2,313,651 1,822,689 960,148 832,712 847,954 561,075 Miscellaneous 1,443,708 1,226,922 1,814,732 2,667,732 4,793,505 1,893,025 1,793,608 1,419,727 1,948,517 2,172,698 Outside donations 36,250 482,149 27,602 3,000 1,651 128,464 80,806 63,431 114,306 718,694 Interest 307,907 171,455 252,352 1,198,243 1,348,315 1,863,408 1,287,672 896,004 802,363 999,930 Sale of property 279,562 32,901 1,446,331 134,042 2,920,324 802,272 569,303 1,434,827 29,352 1,703,047 Total revenues 70,609,868 67,904,247 68,525,202 67,847,399 73,709,413 64,964,401 61,632,629 61,057,442 57,387,107 54,727,035 Expenditures General government: Mayor 477,079 441,968 431,006 462,660 494,642 496,415 433,797 415,256 419,481 422,142 City Council 790,373 841,362 735,459 781,376 793,726 752,183 634,277 537,695 606,812 600,025 Management Services 4,188,210 4,679,143 4,115,384 3,982,475 3,597,970 3,366,890 2,293,113 2,027,169 2,089,066 2,042,904 Circuit Court 0 70,116 66,709 63,600 61,200 34,020 34,020 34,020 34,020 32,400 Corporate Counsel 1,065,323 1,045,253 1,007,730 973,207 955,813 922,204 896,177 814,485 803,345 765,768 Non Departmental 3,383,332 3,130,086 5,416,204 3,828,073 3,394,572 2,984,936 4,620,366 2,579,605 4,176,233 4,736,949 Police 16,329,974 16,665,401 16,448,740 15,574,326 16,148,734 14,187,387 14,267,656 12,799,940 13,017,997 11,769,534 Fire 6,727,145 7,597,049 6,862,720 6,812,223 7,321,580 6,109,653 6,326,334 6,488,091 6,458,664 6,290,897 Public Works1 - - - - - - - - 4,708,270 6,434,126 Community Services1 - - - - - - - - 7,265,426 7,576,512 Community & Economic Development 11,562,681 16,447,780 12,569,682 19,160,621 25,940,165 26,055,225 21,197,793 12,672,324 10,901,179 8,567,845 Public Services1 10,214,315 12,016,880 11,326,448 11,268,583 12,140,211 12,578,410 10,655,033 9,670,977 - - Debt Service: Principal 7,477,000 6,185,000 6,015,000 5,063,000 4,646,000 3,781,000 5,002,000 4,018,091 2,634,000 4,802,447 Interest and Fiscal Charges 3,193,708 3,382,954 4,607,697 4,189,469 3,905,117 4,853,032 3,864,630 2,721,531 2,984,634 2,011,960 Fees and Assessments 34,500 - - - - - 39,950 - 657,362 569,375 Capital Outlay 2,647,689 - - - - - 91,000 9,064,289 935,738 2,950,360 Total expenditures 68,091,329 72,502,992 69,602,779 72,159,613 79,399,730 76,121,355 70,356,146 63,843,473 57,692,227 59,573,244 Excess of revenues over (under) expenditures 2,518,539 (4,598,745) (1,077,577) (4,312,214) (5,690,317) (11,156,954) (8,723,517) (2,786,031) (305,120) (4,846,209) 118 ---PAGE BREAK--- Page 2 of 2 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Other Financing Sources (Uses) Loan/Bond Proceeds 7,112,000 1,600,000 30,345,000 3,000,000 3,000,000 11,300,000 43,440,000 2,100,000 8,072,255 1,426,359 Repayment of Bonds (7,470,000) - - - - - - - - - Bond Premium/(Discount) - - - 483,884 (6,500) - (336,300) - - - Payment to Refunded Bond Escrow - - (29,145,000) (8,572,980) - - (2,865,000) - (7,970,446) - Issuance of Refunding Bond - - - 8,125,000 - - - - - - Capital Assets - - - - - - - - - - Operating Transfers In 5,942,979 6,935,500 7,287,973 10,924,814 6,785,278 6,517,942 22,580,824 16,064,479 4,482,782 12,253,102 Operating Transfers Out (7,114,547) (6,356,025) (10,229,267) (11,505,530) (6,126,178) (7,676,161) (25,051,312) (19,187,992) (12,300,490) (17,183,552) Total other financing sources (uses) (1,529,568) 2,179,475 (1,741,294) 2,455,188 3,652,600 10,141,781 37,768,212 (1,023,513) (7,715,899) (3,504,091) Net change in fund balances $ 988,971 $ (2,419,270) $ (2,818,871) $ (1,857,026) $ (2,037,717) $ (1,015,173) $ 29,044,695 $ (3,809,544) $ (8,021,019) (8,350,300) Debt service as a percentage of noncapital expenditures 16.4% 13.2% 15.3% 13.6% 12.0% 14.5% 14.5% 12.3% 11.1% 13.0% Source: Ogden City Comptroller Division 1 The departments of Public Works and Community Services were combined into one department of Public Services in fiscal year 2005. Further discussion of this data is available in the Management Discussion and Analysis, the Transmittal Letter and the notes found in the financial section. 119 68% 3% 11% 11% 4% 2% 0% 1% 0% 2012 Governmental Funds Revenues Taxes and special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Outside donations Interest Sale of property 1% 1% 6% 0%2% 5% 25% 10% 18% 16% 16% 2012 Government Fund Expenditures Mayor City Council Management Services Circuit Court Corporate Counsel Non Departmental Police Fire ---PAGE BREAK--- Ogden City Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (UNAUDITED) Fiscal Year Fiscal Year 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 General Fund Reserved $ $ $ 4,746,524 $ 6,716,162 $ 7,576,817 $ 8,926,257 $ 12,431,274 $ 10,596,273 $ 10,875,511 $ 11,476,944 Unreserved/Designated 1,684,623 1,445,969 1,160,253 983,584 84,109 276,897 321,722 302,961 Unreserved/Undesignated 3,036,171 2,994,167 3,201,230 3,983,421 4,579,463 6,443,606 4,059,669 2,672,865 1 Non-Spendable 1,117,537 1,477,571 1 Spendable - Restricted 326,523 313,831 1 Spendable - Assigned 3,970,766 3,047,170 1 Unassigned 3,560,619 2,577,021 Total General Fund $ 8,975,445 $ 7,415,593 $ 9,467,318 $ 11,156,298 $ 11,938,300 $ 13,893,262 $ 17,094,846 $ 17,316,776 $ 15,256,902 $ 14,452,770 All Other Governmental Funds Reserved $ $ $ 9,575,882 $ 9,435,074 $ 9,667,006 $ 12,530,227 $ 16,732,816 $ 1,290,744 $ 872,571 $ 1,537,499 Unreserved/Designated 611,570 592,019 763,460 282,684 2,754,423 2,894,858 (8,897,891) (8,201,873) Unreserved/Undesignated 1,681,422 2,971,672 3,594,814 1,045,132 (7,815,607) (22,545,895) (4,465,555) 1,294,444 1 Non-Spendable 3,301,339 4,279,330 1 Spendable - Restricted 851,376 1,207,630 1 Spendable - Assigned 7,441,633 6,678,269 Total all Other Governmental Funds $ 11,594,348 $ 12,165,229 $ 11,868,874 $ 12,998,765 $ 14,025,280 $ 13,858,043 $ 11,671,632 $ (18,360,293) $ (12,490,875) $ (5,369,930) Total Primary Government $ 20,569,793 $ 19,580,822 $ 21,336,192 $ 24,155,063 $ 25,963,580 $ 27,751,305 $ 28,766,478 $ (1,043,517) $ 2,766,027 $ 9,082,840 Note: Fund balances are discussed in detail in Management's Discussion and Analysis Source: Ogden City Comptroller Division 1 GASB 54 conversion. Previous years' Fund Balance detail not available. 120 (20,000,000) (15,000,000) (10,000,000) (5,000,000) - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Value in Dollars Year Governmental Fund Balances General Fund Other Gov. Funds Primary Government ---PAGE BREAK--- REVENUE CAPACITY (Unaudited) 121 ---PAGE BREAK--- OGDEN CITY CORPORATION ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) Real Property Personal Property Total Total Est. Est. Est. Direct Fiscal Taxable Market Taxable Market Taxable Market Tax Year Value 1 Value 1 Value 1 Value 1 Value Value Rate 2 3 3 3 2003 $ 2,323,499,514 $ 3,423,332,047 $ 381,171,565 $ 385,751,543 $ 2,704,671,079 $ 3,809,083,590 4.082 2004 2,397,547,847 3,533,599,330 404,124,480 408,578,318 2,801,672,327 3,942,177,648 4.061 2005 2,420,191,163 3,574,141,695 398,027,860 402,294,494 2,818,219,023 3,976,436,189 4.161 2006 2,448,901,445 3,614,684,061 424,839,874 428,998,796 2,873,741,319 4,043,682,857 4.253 2007 2,534,955,309 4,045,823,892 424,233,158 424,233,158 2,959,188,467 4,470,057,050 3.905 2008 2,826,620,677 4,573,342,298 470,435,170 470,435,170 3,297,055,847 5,043,777,468 3.384 2009 3,177,442,909 5,291,016,777 568,934,583 568,934,583 3,746,377,492 5,859,951,360 3.109 2010 3,202,409,477 5,244,781,463 592,440,209 592,440,209 3,794,849,686 5,837,221,672 3.164 2011 3,152,188,693 4,955,639,894 607,238,942 607,238,942 3,759,427,635 5,562,878,836 3.321 2012 3,181,775,208 4,987,386,730 559,202,032 559,202,032 3,740,977,240 5,546,588,762 3.330 Source: Weber County Auditor's Office 1 Taxable and market values as provided by Weber County Auditor's office. Includes State Assessed Utilities. 2 Calendar year valuations fiscal year 2012 is the 2011 calendar year valuation) 3 Total direct tax rate is the Ogden City General Fund tax rate for the calendar year as provided by Weber County. fiscal year 2012 is the 2011 calendar year tax rate) 0 1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Value in Dollars Year Value of Taxable Property Real Property Personal Property Total 122 ---PAGE BREAK--- OGDEN CITY CORPORATION PRINCIPAL TAXPAYERS FOR THE CALENDAR YEAR 2011 June 30, 2012 TEN LARGEST PROPERTY TAXPAYERS (UNAUDITED) 2011 Percentage of 2001 Taxable Total Taxable Taxable Taxpayer Type of Business Value Value Value Ranking Boyer Company Construction/space leasing $ 199,179,031 5.3% 17,951,425 9 Fresenius USA (Delmed Medical) Health care products 174,923,763 4.7% 64,077,703 2 IHC Health Services Health services 60,664,365 1.6% 23,147,613 4 Williams International Corp Manufacturer of jet airplane engines 55,110,212 1.5% 21,690,944 5 GGP/Homart (Newgate Mall) Space leasing for retail sales 54,418,502 1.5% 18,473,838 7 Autoliv ASP, Inc - Auto Pro Automotive safety products 53,369,970 1.4% 65,084,908 1 (Morton International) McDonnell Douglas Air force subcontractor 47,200,602 1.3% 18,172,525 8 (The Boeing Company) Pacificorp (Utah Power) Electric utility 42,947,742 1.1% 20,143,876 6 Mark Novis/ Hershey Chocolate manufacturer 39,606,396 1.1% - - Nutraceutical Corporation Nutritional supplements 35,826,734 1.0% - - Qwest Communication Telephone/communications 45,343,884 3 Questar Gas Natural gas utility 15,872,583 10 Total taxable value of 10 largest taxpayers……………………… 763,247,317 20.4% 309,959,299 Total taxable value of all other taxpayers……………………….. 2,977,729,923 79.6% 2,280,672,930 Total taxable value of all taxpayers………………………………. $ 3,740,977,240 100.0% 2,590,632,229 Sources: Weber County Treasurer's and Auditor's Offices 123 ---PAGE BREAK--- (UNAUDITED) Percent of Percent Delinquent Total Tax Fiscal Total Tax Current Tax of Approp. Tax Total Tax Collections Year Appropriation Collections Collected Collections 2 Collections to Tax Approp. 2003 1 15,834,825 $ 14,004,703 $ 88.4% 582,987 $ 14,587,690 $ 92.1% 2004 17,371,150 15,541,405 89.5% 426,611 15,968,016 91.9% 2005 18,089,832 16,377,964 90.5% 594,603 16,972,567 93.8% 2006 19,306,325 16,820,852 87.1% 556,156 17,377,008 90.0% 2007 18,257,350 16,892,631 92.5% 550,557 17,443,188 95.5% 2008 20,222,150 17,795,330 88.0% 509,009 18,304,339 90.5% 2009 22,931,825 19,863,615 86.6% 373,517 20,237,132 88.2% 2010 24,412,425 21,285,399 87.2% 420,595 21,705,993 88.9% 2011 24,757,350 21,892,279 88.4% 562,503 22,454,782 90.7% 2012 26,789,125 22,173,829 82.8% 533,547 22,707,376 84.8% 1 GASB 34 conversion; now includes Redevelopment Agency 2 Property taxes are collected by Weber County and then disbursed to the appropriate entities. Remittance of delinquent tax collections does not include information as to the amounts being collected for particular past years taxing levies. This information is not available at this time. The amounts listed are simply the collections of prior years' taxes that were remitted to the City by the County in that particular fiscal year. Source: Ogden City Comptroller Division PROPERTY TAX APPROPRIATIONS AND COLLECTIONS OGDEN CITY CORPORATION LAST TEN FISCAL YEARS $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 $22,000,000 $24,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Volume in Dollars Year Property Tax Collections & Appropriations Current Tax Collections Delinquent Tax Collections Total Tax Collections 124 ---PAGE BREAK--- Weber Weber Ogden Weber Weber Basin Basin Ogden State City County County Consolidated Weber Mosquito Water Water Central City Assess Calendar General General Library Health County Abatement General Ogden Weber School and Year Fund Fund Fund Fund Paramedic Dist. Levy Special Sewer District Collect Total 2002 4.082 1.868 1.004 0.187 0.234 0.111 0.193 0.159 0.575 7.458 0.336 16.207 2003 4.061 1.880 0.968 0.187 0.234 0.111 0.196 0.282 0.574 7.284 0.340 16.117 2004 4.161 1.893 1.006 0.188 0.236 0.112 0.198 0.358 0.552 7.342 0.340 16.386 2005 4.253 2.405 1.124 0.193 0.185 0.110 0.193 0.310 0.567 7.312 0.377 17.029 2006 3.905 2.309 1.056 0.185 0.480 0.106 0.178 0.306 0.573 8.380 0.335 17.813 2007 3.384 2.376 0.615 0.164 0.451 0.094 0.200 0.345 0.519 8.176 0.295 16.619 2008 3.109 2.235 0.585 0.156 0.428 0.089 0.181 0.323 0.800 7.453 0.321 15.680 2009 3.164 2.303 0.601 0.112 0.488 0.128 0.188 0.276 0.811 7.782 0.342 16.195 2010 3.321 2.472 0.646 0.120 0.526 0.138 0.207 0.290 0.833 8.175 0.377 17.105 2011 3.330 2.520 0.660 0.123 0.523 0.141 0.217 0.289 0.854 8.260 0.391 17.308 Source: Weber County Auditor's Office 125 OGDEN CITY CORPORATION PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS PER $1,000 ASSESSED VALUATION LAST TEN CALENDAR YEARS (UNAUDITED) ---PAGE BREAK--- OGDEN CITY CORPORATION TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (UNAUDITED) City Fiscal Property Prior Year Sales Franchise Utility Year Taxes Taxes Taxes Taxes Taxes Total 2003 1 14,004,702 $ 582,987 $ 11,573,480 $ 4,893,599 $ 2,857,528 $ 33,912,296 $ 2004 15,541,405 426,611 11,756,091 5,456,826 2,943,145 36,124,078 2005 16,377,964 594,603 12,383,198 6,502,958 3,078,524 38,937,247 2006 16,820,852 556,156 13,452,590 7,054,842 3,289,875 41,174,315 2007 16,892,631 550,557 15,100,532 6,687,005 3,212,744 42,443,469 2008 17,795,330 509,009 14,812,621 7,583,031 3,599,048 44,299,039 2009 19,863,615 373,517 13,348,067 7,611,391 4,180,423 45,377,014 2010 21,285,399 420,595 12,293,276 7,549,969 4,265,064 45,814,303 2011 22,051,816 562,503 12,288,206 7,676,010 4,639,685 47,218,220 2012 22,173,829 533,547 13,392,913 7,578,905 4,845,552 48,524,746 1 GASB 34 conversion; now includes Ogden City Redevelopment Agency Source: Ogden City Comptroller Division $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Dollars Year Tax Revenues by Source City Utility Taxes Franchise Taxes Sales Taxes Prior Year Taxes Property Taxes 126 ---PAGE BREAK--- DEBT CAPACITY (Unaudited) 127 ---PAGE BREAK--- Governmental Activities General Lease Tax Increment Notes and Fiscal Personal Obligation Revenue Revenue Special Leases Year Population 1 Income 2 Bonds Bonds Bonds Assessment Payable 2003 80,599 $ 5,053,300,000 $ 21,410,000 $ 4,315,000 $ 14,655,000 $ 543,000 $ 1,737,309 2004 81,416 5,228,500,000 20,850,000 3,905,000 13,770,000 477,000 1,619,056 2005 82,007 5,471,100,000 19,475,000 3,475,000 12,875,000 408,000 4,221,435 2006 82,007 5,780,700,000 20,020,000 3,340,000 50,305,000 257,000 3,886,330 2007 82,843 6,489,000,000 18,455,000 3,005,000 57,925,000 176,000 6,989,883 2008 82,843 7,085,100,000 16,810,000 5,845,000 55,400,000 90,000 6,579,676 2009 82,865 7,462,692,000 14,795,000 5,602,000 55,505,000 - 8,910,964 2010 83,296 7,482,044,000 13,060,000 5,332,000 52,945,000 - 7,718,876 2011 83,171 7,482,044,000 11,270,000 5,047,000 50,695,000 - 5,438,492 2012 83,949 7,647,900,000 9,475,000 4,752,000 45,220,000 - 5,702,344 Total Percentage Fiscal Revenue Notes Primary of Personal Per Year Bonds Payable Government Income Capita 2003 $ 12,500,000 $ - $ 55,160,309 1.09 % $ 684.38 2004 11,868,650 - 52,489,706 1.00 644.71 2005 11,206,633 4,806,530 56,467,598 1.03 688.57 2006 10,518,496 4,702,742 93,029,568 1.61 1,134.41 2007 9,798,765 4,568,950 100,918,598 1.56 1,218.19 2008 58,221,951 415,160 143,361,787 2.02 1,730.52 2009 58,463,000 311,370 143,587,334 1.92 1,732.79 2010 56,924,000 207,580 136,187,456 1.82 1,634.98 2011 55,406,000 103,790 127,960,282 1.71 1,538.52 2012 53,847,000 - 118,996,344 1.56 1,417.48 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. These ratios are calculated using personal income and population for the prior calendar year. Source: Ogden City Comptrollers Office Ogden City Planning Division Utah Department of Workforce Services 1 Population estimates are from the Utah Department of Workforce Services, fiscal year 2011 population is the July 1, 2010 estimate). For FY 2012, the population estimate is as of 06/30/2012 and is obtained from Ogden City's Planning Division. 2 Personal income numbers are for Weber County. This data is not available on a city level. Ogden City is the largest city in Weber County. Calendar year numbers fiscal year 2012 is calendar year 2011 numbers); calendar 2012 numbers were not available. 128 Business-Type Activities Ogden City Ratios of Outstanding Debt by Type Last Ten Fiscal Years (UNAUDITED) ---PAGE BREAK--- Ratio of Net Net General Bonded Bonded Bonded Debt to Debt Fiscal Taxable Value/ Debt Assessed per Year Population 1 Est. Market Value 2 Outstanding Value Capita 2003 80,599 3,809,083,590 $ 21,410,000 $ 0.56 265.64 $ 2004 81,416 3,942,177,648 20,850,000 0.53 256.09 2005 82,007 3,976,436,189 19,475,000 0.49 237.48 2006 82,007 4,043,682,857 20,020,000 0.50 244.13 2007 82,843 4,470,057,050 18,455,000 0.41 222.77 2008 82,843 5,043,777,468 16,810,000 0.33 202.91 2009 82,865 5,859,951,360 14,795,000 0.25 178.54 2010 83,296 5,837,221,672 13,060,000 0.22 156.79 2011 83,171 5,562,878,836 11,270,000 0.20 135.50 2012 83,949 5,546,588,762 9,475,000 0.17 112.87 Sources: Weber County Auditor's Office Ogden City Planning and U.S. Census Bureau Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1 Population estimates are from the Utah Department of Workforce Services fiscal year 2011 population is the July 1, 2010 estimate.) Population from the 1990 census was 63,909. The population figures have been revised to bring them in line with the census. For FY 2012, the population estimate is as of 06/30/2012 and is obtained from Ogden City's Planning Division. 2 Calendar year valuations fiscal year 2011 is calendar year 2010 valuation) . Taxable and market values as provided by the Weber County Auditor's office. Includes State Assessed Utilities. Estimated market value not available prior to fiscal year 2003; numbers provided in fiscal year 2002 and prior are taxable values. OGDEN CITY CORPORATION RATIOS OF GENERAL BONDED DEBT OUTSTANDING TO ASSESSED VALUE AND PER CAPITA LAST TEN FISCAL YEARS (UNAUDITED) 129 ---PAGE BREAK--- OGDEN CITY CORPORATION COMPUTATION OF DIRECT AND OVERLAPPING DEBT (UNAUDITED) Percentage Amount Applicable Applicable Net Debt to to Jurisdiction Outstanding Ogden City Ogden City Ogden City Corporation $ 42,660,309 100% $ 42,660,309 Total Direct Governmental Debt 42,660,309 Ogden City School District 98,056,000 100% 98,056,000 Weber County 9,875,000 32% 3,206,870 Weber Basin Water Conservancy Dist. 25,333,790 11% 2,672,021 Total Overlapping Governmental Debt 103,934,891 Total Direct and Overlapping Governmental Debt $ 146,595,200 Notes: Percentage applicable to Ogden City calculated using taxable value data as provided by the entities listed above or from the Weber County Auditor's Office. The State of Utah general obligation debt is not included in the calculation of Overlapping General Obligation Debt because the State currently levies no property tax for payment of general obligation bonds. Sources: Ogden City Comptrollers Office Ogden City School District Weber County Auditor/Clerk/Treasurer's Office Weber Basin Water Conservancy District June 30, 2012 130 ---PAGE BREAK--- Net assessed value for 2012: Real Property Taxable Value $ 3,181,775,208 Personal Property Taxable value $ 559,202,032 Total taxable $ General Debt Margin 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Debt limit: 4% of total taxable value 1 $ 108,186,843 $ 112,066,893 $ 112,728,761 $ 114,949,653 $ 118,367,539 $ 131,882,234 $ 149,855,100 $ 151,793,987 $ 150,377,105 $ 149,639,090 Total net debt applicable to limit 2 21,410,000 20,850,000 19,475,000 20,020,000 18,455,000 16,810,000 14,795,000 13,060,000 11,270,000 9,475,000 Legal debt margin $ 86,776,843 $ 91,216,893 $ 93,253,761 $ 94,929,653 $ 99,912,539 $ 115,072,234 $ 135,060,100 $ 138,733,987 $ 139,107,105 $ 140,164,090 Total net debt applicable to the limit as a percentage of debt limit 19.79% 18.60% 17.28% 17.42% 15.59% 12.75% 9.87% 8.60% 7.49% 6.33% Utilities Debt Margin 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Debt limit: 4% of total taxable value for utilities $ 108,186,843 $ 112,066,893 $ 112,728,761 $ 114,949,653 $ 118,367,539 $ 131,882,234 $ 149,855,100 $ 151,793,987 $ 150,377,105 $ 149,639,090 Total net debt applicable to limit 12,500,000 11,868,650 11,206,633 10,518,494 9,798,765 58,221,952 58,463,000 56,924,000 55,406,000 53,847,000 Legal debt margin $ 95,686,843 $ 100,198,243 $ 101,522,128 $ 104,431,159 $ 108,568,774 $ 73,660,282 $ 91,392,100 $ 94,869,987 $ 94,971,105 $ 95,792,090 Total net debt applicable to the limit as a percentage of debt limit 11.55% 10.59% 9.94% 9.15% 8.28% 44.15% 39.01% 37.50% 36.84% 35.98% 1 Article XIV. Section 4. Constitution of Utah: Establishes that no city, town, school district or other municipal corporation, shall become indebted to an amount, including existing indebtedness, exceeding four per cent of the value of the taxable property with with provisions that an additional four percent is allowed if the debt is incurred to provide the entity with water, light or sewer service. 2 Bonded debt applicable to debt limit does not include Enterprise Fund revenue bonds or RDA bonded debt. Sources Ogden City Comptrollers Office Weber County Auditor's Office 131 Fiscal Year Fiscal Year OGDEN CITY CORPORATION COMPUTATION OF LEGAL DEBT MARGIN Last Ten Fiscal Years June 30, 2012 (UNAUDITED) 3,740,977,240 ---PAGE BREAK--- OGDEN CITY CORPORATION REVENUE BOND COVERAGE WATER UTILITY LAST TEN FISCAL YEARS (UNAUDITED) Net Revenue Direct Available Debt Service Requirements3 Fiscal Gross Operating for Debt Year Revenues 1 Expense 2 Service Principal Interest Total Coverage 2003 6,704,260 $ 6,347,438 $ 356,822 $ 140,070 $ 233,422 $ 373,492 $ 0.96 2004 7,303,641 6,227,386 1,076,255 146,740 228,099 374,839 2.87 2005 6,930,588 7,475,593 (545,005) 153,410 222,376 375,786 (1.45) 2006 7,775,694 7,814,521 (38,827) 160,080 216,240 376,320 (0.10) 2007 9,028,800 9,221,001 (192,201) 166,665 209,552 376,217 (0.51) 2008 11,400,743 9,508,672 1,892,071 173,420 202,673 376,093 5.03 2009 13,727,378 11,288,163 2,439,215 677,005 1,761,870 2,438,875 1.00 2010 13,529,048 10,621,197 2,907,851 730,365 1,677,603 2,407,968 1.21 2011 15,321,858 12,653,418 2,668,440 780,390 1,630,449 2,410,839 1.11 2012 16,472,188 13,056,425 3,415,763 797,065 1,608,198 2,405,263 1.42 1 Total operating revenues. 2 Total operating expenses including depreciation. 3 Operating income is used to cover debt service requirements. Source: Ogden City Comptrollers Office 132 ---PAGE BREAK--- OGDEN CITY CORPORATION REVENUE BOND COVERAGE SEWER UTILITY LAST TEN FISCAL YEARS (UNAUDITED) Net Revenue Direct Available Debt Service Requirements3 Fiscal Gross Operating for Debt Year Revenues 1 Expense 2 Service Principal Interest Total Coverage 2003 4,794,832 $ 3,534,101 $ 1,260,731 $ 69,930 $ 116,536 $ 186,466 $ 6.76 2004 5,544,291 4,155,325 1,388,966 324,610 195,267 519,877 2.67 2005 5,541,685 4,353,094 1,188,591 338,607 181,743 520,350 2.28 2006 5,801,639 4,181,699 1,619,940 353,057 167,558 520,615 3.11 2007 6,918,945 5,582,307 1,336,638 368,064 152,814 520,878 2.57 2008 8,192,388 9,508,672 (1,316,284) 383,394 137,109 520,503 (2.53) 2009 10,434,419 7,606,271 2,828,148 647,407 902,941 1,550,348 1.82 2010 11,483,634 8,410,533 3,073,101 593,635 1,007,245 1,600,880 1.92 2011 12,945,348 9,526,023 3,419,325 512,610 919,605 1,432,215 2.39 2012 14,696,699 10,907,661 3,789,038 526,935 903,198 1,430,133 2.65 1 Total operating revenues. 2 Total operating expenses including depreciation. 3 Operating income is used to cover debt service requirements. Source: Ogden City Comptrollers Office 133 ---PAGE BREAK--- OGDEN CITY CORPORATION REVENUE BOND COVERAGE REFUSE UTILITY LAST TEN FISCAL YEARS (UNAUDITED) Net Revenue Direct Available Debt Service Requirements3 Fiscal Gross Operating for Debt Year Revenues 1 Expense 2 Service Principal Interest Total Coverage 2003 3,543,164 $ 2,898,915 $ 644,249 $ 155,000 $ 161,700 $ 316,700 $ 2.03 2004 3,611,435 2,950,847 660,588 160,000 154,105 314,105 2.10 2005 3,691,825 3,198,080 493,745 170,000 146,265 316,265 1.56 2006 3,828,593 3,067,261 761,332 175,000 137,935 312,935 2.43 2007 4,019,859 3,940,483 79,376 185,000 129,360 314,360 0.25 2008 4,859,881 4,175,403 684,478 195,000 120,295 315,295 2.17 2009 4,925,650 3,942,764 982,886 205,000 110,740 315,740 3.11 2010 4,678,149 4,028,787 649,362 215,000 100,695 315,695 2.06 2011 4,878,913 4,447,141 431,772 225,000 90,160 315,160 1.37 2012 4,945,202 4,547,289 397,913 235,000 79,135 314,135 1.27 1 Total operating revenues. 2 Total operating expenses including depreciation. 3 Operating income is used to cover debt service requirements. Source: Ogden City Comptrollers Office 134 ---PAGE BREAK--- OGDEN CITY CORPORATION INDUSTRIAL REVENUE BONDS OUTSTANDING As of June 30, 2012 (UNAUDITED) Date Outstanding Issued Retired Outstanding Company Issued July 1, 2011 in 2012 in 2012 June 30, 2012 Albion Manufacturing 11-25-08 1,708,000 $ - $ 168,000 $ 1,540,000 $ Enable Industries 10-29-97 225,000 - 110,000 115,000 Sources: Financial institutions, bond contracts, accounting firms 135 ---PAGE BREAK--- Demographic and Economic Information (Unaudited) 136 ---PAGE BREAK--- OGDEN CITY CORPORATION DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) Per Capita Fiscal Personal Personal School Unemployment Year Population 2 Income 3 Income 3 Enrollment 4 Rate 5 2003 1 80,599 5,053,300,000 $ 24,856 $ 13,141 9.6% 2004 81,416 5,228,500,000 25,414 12,877 8.1% 2005 82,007 5,471,100,000 25,920 12,604 6.8% 2006 82,007 5,780,700,000 27,021 12,059 4.6% 2007 82,843 6,489,000,000 30,019 12,564 4.4% 2008 82,843 7,085,100,000 32,053 12,781 6.8% 2009 82,865 7,462,692,000 32,847 12,623 10.2% 2010 83,296 7,482,044,000 32,273 12,568 11.8% 2011 83,171 7,482,044,000 32,273 12,606 8.2% 2012 83,949 7,647,900,000 32,934 12,529 Not Available 5 Sources: Utah Department of Workforce Services Ogden City School District U.S. Census Bureau 1 GASB 34 and 44 conversion; comparison data in prior years provided as available 2 Population estimates are from Ogden City's Planning Department. Population from the 1990 census was 63,909. The population figures have been revised to bring them more in line with the census. Fiscal year 2011 population is from the 2010 census. The population for 2012 is as of 06/30/2012. 3 Personal income and per capita personal income numbers are for Weber County. This data is not available on a city level. Ogden City is the largest city in Weber County. Calendar year numbers fiscal year 2012 is calendar year 2010 numbers); calendar 2011 is not available. Prior year data is adjusted as available. 4 Calendar year data. 5 Rates are raw annual calendar year averages. The unemployment rate for calendar year 2012 is not yet available. 137 ---PAGE BREAK--- OGDEN CITY CORPORATION LARGEST EMPLOYERS FOR 2012 (UNAUDITED) Employment Company Type of Business Range 1 Internal Revenue Service Federal government 5,000-6,999 Weber County School District Public education 3,000-3,999 McKay Dee Hospital Center Hospital 3,000-3,999 Weber State University Public education 2,000-2,999 State of Utah State government 2,000-2,999 Fresenius USA Manufacturing Inc. Medical instrument manufacturing 1,000-1,999 Autoliv Motor vehicle equipment manufacturing 1,000-1,999 Ogden City School District Public education 1,000-1,999 Weber County Local Government 1,000-1,999 Wal-Mart Discount department store 1,000-1,999 1 The Utah Department of Workforce Services provides employer data by county in the State. The largest employers listed above are within the boundaries of Weber County. Ogden City is the major city within Weber County. Comparative data from 10 years ago not available at this time. Source: Utah Department of Workforce Services Ranking Not available Not available Not available Not available Not available Not available Not available Not available Not available Not available 138 ---PAGE BREAK--- Operating Information (Unaudited) 139 ---PAGE BREAK--- Ogden City Full-Time Authorized Employees Summary by Program Last Ten Fiscal Years (UNAUDITED) Community and Fiscal General Economic Environmental Leisure Public Year Administration Development Protection Opportunities Safety Transportation Total 2003 83 37 98 49 301 33 601 2004 79 32 87 47 302 38 585 2005 83 32 86 39 281 50 571 2006 86 29 87 36 289 51 578 2007 103 29 87 33 288 51 591 2008 105 28 84 33 313 32 595 2009 109 28 84 33 312 33 599 2010 106 23 84 31 313 34 591 2011 106 23 84 30 313 34 590 2012 105 18 86 28 308 32 577 Source: Ogden City Adopted Budget 0 100 200 300 400 500 [PHONE REDACTED] 2004 2005 2006 2007 2008 2009 2010 2011 2012 Full‐Time Authorized Employees Fiscal Year Transportation Public Safety Leisure Opportunities Environmental Protection Community and Economic Development General Administration Full‐Time Authorized Employees by Program 140 ---PAGE BREAK--- Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2 Police (Calendar Year) Part I: Crimes of Violence 387 392 372 250 290 373 257 391 327 362 1 Detail Homicides 5 2 4 4 2 3 4 4 1 2 1 not shown Forcible Rape 42 49 36 36 30 41 45 31 24 32 1 on Robbery 110 93 107 35 55 71 47 107 110 118 1 report Aggravated Assault 230 248 225 175 203 258 161 249 192 210 1 Part I: Crimes of Non-Violence 4,900 4,790 5,177 4,853 4,723 5,140 4,416 4,063 4,671 4,672 1 Detail Burglary/Residential 914 915 849 520 544 667 517 771 867 854 1 not shown Theft 3,556 3,473 3,887 3,914 3,738 3,919 3,506 2,955 3,479 3,470 1 on Motor Vehicle Theft 413 400 424 401 422 531 373 314 309 335 1 report Arson 17 2 17 18 19 23 20 23 16 13 1 Total all UCR Offenses 5,287 5,182 5,549 5,103 5,013 5,513 4,673 4,454 4,998 5,034 1 Total Averages of UCR Crimes per 1,000 Population Violent Crimes per 1,000 4.8 5.0 4.3 4.4 3.5 4.5 3.1 4.7 3.9 4.3 1 Non-Violent Crimes per 1,000 61.3 61.0 64.0 68.0 57.0 62.0 53.3 48.8 56.1 55.7 1 All UCR Crime per 1,000 66.1 66.0 68.3 72.4 60.5 66.5 56.4 53.5 60.0 60.0 1 Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3 Fire (Fiscal Year) Incident Reponses 10,917 12,113 12,152 12,979 13,428 14,387 14,450 14,147 14,558 15,700 Inspections/Preplanning Property Visits (excludes Public Nuisance inspections) 3,372 2,943 1,072 1,460 2,972 2,871 2,345 1,762 1,851 2,044 Fire Investigations 4 4 4 4 49 46 53 51 46 46 Fire Investigation Hours 387 395 226 386 670 245 416 389 224 292 Public Education Hours 4 793 635 990 382 255 190 257 132 187 1 2010 Projected; 2009 revised to actual 2 Police information is presented for the calendar year. 3 Fire Information is presented for the fiscal year. 4 Information not available for prior years Notes: Information on this report presents available indicators of demand or level of service. Sources: Ogden City Police Department, Uniform Crime Report Ogden City Fire Department Ogden City Operating Indicators by Function/Program Last Ten Years (UNAUDITED) 141 ---PAGE BREAK--- Ogden City Capital Asset Statistics by Function/Program Last Ten Fiscal Years (UNAUDITED) Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 1 1 1 1 1 133 139 151 148 100 units 1 1 1 1 1 8 8 8 8 8 Animal control units 1 1 1 1 1 3 3 3 3 3 Fire Stations 5 5 5 5 5 5 5 5 5 5 Ladder trucks 1 1 1 1 1 2 2 2 2 2 Pumper trucks 1 1 1 1 1 5 5 7 9 7 Ambulances 1 1 1 1 1 7 7 7 9 9 Street Streets (miles) 303 292 273 273 305 305 311 311 311 311 Curb and gutter (miles) 1 1 1 1 1 481 485 512 512 519 Sidewalk (miles) 1 1 1 1 1 316 333 359 359 366 Streetlights 2,965 2,965 2,965 2,965 3,619 3,619 2,830 3,300 3,550 966 Traffic signals 1 1 1 1 1 75 86 88 90 90 Parks and recreation Community centers 1 1 1 1 1 2 2 1 1 1 Parks 39 39 39 40 39 41 41 43 43 44 Park acreage 238.52 238.52 238.52 238.67 238.52 242.87 242.87 250.22 250.22 253.22 Covered picnic areas 1 1 1 1 1 29 29 30 30 30 Baseball/Softball diamonds 1 1 1 1 1 23 23 23 23 23 Soccer fields 1 1 1 1 1 10 10 10 12 12 Tennis courts 1 1 1 1 1 14 14 14 14 14 Pickleball Courts 1 1 1 1 1 - - - - 8 Skate Park 1 1 1 1 1 1 1 1 1 1 Swimming pools 1 1 1 1 1 2 2 1 1 1 Gymnasiums 1 1 1 1 1 1 1 - - - Sewer Sanitary sewers (miles) 335 335 335 335 335 335 247 247 232 232 Storm sewers (miles) 116 116 116 116 116 116 106 136 147 145 Water Water lines (miles) 350 350 350 350 350 350 280 324 327 359 Fire hydrants 1 1 1 1 1 2,372 2,372 2,680 2,684 2,766 Source: Various City Departmental Data 1 Information in prior years provided as available 142 ---PAGE BREAK--- OGDEN CITY CORPORATION MISCELLANEOUS STATISTICS June 30, 2012 (UNAUDITED) 2002 Comparative Data Date of Incorporation: February 6, 1851 Form of government: Council - Mayor Area (in square miles): 27 27 Miles of streets: 311 292 Number of street lights: 966 2,965 Fire protection: Number of stations 5 5 Number of firemen and officers 111 111 Police protection: Number of stations 1 1 Number of policemen and officers 132 125 (Does not include reserve police officers) Education (elementary only): Attendance centers 14 15 Number of teachers 726 347 Number of students 7,316 6,384 Municipal water department: Number of consumers 22,881 22,593 Miles of water mains 359 344 Sewers: Sanitary sewers (in miles) 232 329 Storm sewers (in miles) 145 111 Building permits issued: 2,158 1,637 Recreation and culture: Number of parks 44 with 253.22 acres 39 with 238.52 acres Number of libraries 1 1 Number of volumes 561,603 1 395,283 Employees: Classified service 525 521 Exempt 247 288 1 The number of volumes from the Weber County Library, is as of 12/31/2010. Sources: Various Ogden City departments Ogden School District Weber County Library 143 ---PAGE BREAK--- General Liability $ 6,000,000 $ 15,000 July 1, 2012 Covers bodily injury, property Law Enforcement 6,000,000 15,000 July 1, 2012 damage, personal injury, Public Official URMMA 6,000,000 15,000 July 1, 2012 errors and omissions, and Auto Liability URMMA 6,000,000 15,000 Indefinite personal injury protection. Auto Comprehensive This is a Claims Made policy. Auto Collision Excludes Airport. Auto First Party Auto Uninsured Motorist Planning and Zoning URMMA 6,000,000 15,000 July 1, 2012 Airport Liability Ace Insurance 25,000,000 0 July 1, 2012 Covers general liability Contractual 25,000,000 0 occurrences at airport. Ground Hangar Keepers 25,000,000 1,000 Off-duty Auto Liability Great American 1,000,000 0 July 1, 2012 Automobile liability coverage for off-duty vehicle usage. Property Package Blanket Real & Personal Affiliated F.M. 160,942,945 10,000 July 1, 2012 Covers buildings and contents Property TS765 Other listed on statement of values deductibles as a result of covered causes (Including Equip Breakdown) on file of loss. with company. Earthquake & Flood Included Included 1% or 100,000 July 1, 2012 Covers City properties from in Property an Earthquake or Flood. Mobile Equip Included Included 10,000 July 1, 2012 Covers City Owned Mobile Scheduled & Unscheduled in Property Equipment as a result of covered causes of loss. Electronic Data Included Included 10,000 July 1, 2012 Covers EDP Equipment as a Processing in Property result of covered causes of loss. Valuable Papers Included Included 10,000 July 1, 2012 Covers costs to research and in Property restore lost information from a covered case of loss. Business Interruption Included Included 24 Hrs July 1, 2012 Covers loss of income for (Municipal Bldg Authority) in Property Baseball Stadium as required by City contract. Auto Physical Damage Great American Scheduled 1000 July 1, 2012 Covers property damage to Vehicles Under $50,000 Vehicles owned city vehicles including Comp & Collision Perils Strike Force Vehicles. Vehicles Over $50,000 1,658,400 25,000 Comp & Collision Perils Parked Autos 5,853,500 10,000 Ogden City Corporation Schedule of Insurance Coverage as of June 30, 2012 (UNAUDITED) Coverage Carrier Limits Deductible Expiration Date Description 144 ---PAGE BREAK--- Commercial Crime St. Paul 1,000,000 25,000 July 1, 2012 Covers loss caused through Employee theft, faithful Travelers failure of any employee to performance of duty incl. 104448569 Money & perform duties faithfully or forgery alterations & Security account properly for all computer fraud coverage In & Outside monies and property received. 50,000 Public Official Bond St. Paul 2,700,000 N/A July 1, 2014 Covers loss caused through (Michael D. Goodwin, Travelers failure of City Treasurer to Treasurer) 103929954 perform duties faithfully or to account properly for all monies. Excess Workers Safety Statutory 750,000 July 1, 2012 Coverage for employee accident Compensation National work comp; Self insured or illness as per workers Insurance Co. 1,000,000 Retention compensation law above self- Employers insured retention limit. Liability General Liability Travelers 1,000,000 N/A July 1, 2012 Covers Liability for North Parking Structures #I6603023M547 Each & South Parking Structures. Occurrence Liquor Liability Mt. Vernon Fire 1,000,000 N/A July 1, 2012 Covers City liability Elmonte & Mt.Ogden Golf Ins. Group for serving alcohol. Courses & Baseball Stadium #CL2277096E Liquor Liability Scottsdale 1,000,000 N/A July 1, 2012 Covers City liability 4th Street Baseball Park Insurance for serving alcohol. CPS1191031 Commercial General Liability Great American 1,000,000 N/A July 1, 2012 Covers City liability Bike Park GLP1708295 for City Park Commercial Auto Liability Scottsdale 1,000,000 N/A July 24, 2013 Covers City liability while 1 Vehicle driven by WSU Indemnity transporting people to Employees adventure sites in Ogden Commercial Auto-Excess Liability Scottsdale 1,000,000 N/A June 24, 2013 Covers City liability over 1 Vehicle driven by WSU Indemnity primary policy - Adventure Employees sites in Ogden Commercial Auto Liability Scottsdale 1,000,000 N/A May 20, 2012 Covers City liability while 47 Leased Buses from Weber Indemnity 1 Day transporting Marathong runners County School District Coverage 1 day special event (Ogden Marathon) Commercial Auto-Excess Liabil. Scottsdale 1,000,000 N/A May 20, 2012 Covers City liability over 47 Leased Buses from Weber Indemnity 1 Day primary policy. County School District Coverage Transporting Marathing runners (Ogden Marathon) 1 day event. Professional Liability Evanston 1,000,000 2,500 October 31, 2012 Covers contracted employee for SC Reid - City Consultant Insurance professional services per EO845016 signed contract Coverage Carrier Limits Deductible Expiration Date Description 145 ---PAGE BREAK--- Ogden City Staff per 1000 Residents Last Ten Fiscal Years (UNAUDITED) Total Full-Time Staff Fiscal Authorized per 1,000 Year Population 1 Employees 2 Residents 2003 80,599 601 7.46 2004 81,416 585 7.19 2005 82,007 571 6.96 2006 82,007 578 7.05 2007 82,843 591 7.13 2008 82,843 595 7.18 2009 82,865 599 7.23 2010 83,296 591 7.10 2011 83,171 590 7.09 2012 83,949 577 6.87 1 Population estimates are from the U.S. Census Bureau FY 2010 population is the July 1, 2009 estimate). Population from the 1990 census was 63,909. The population figures have been revised to bring them more in line with the census. FY 2011 population is from the 2010 census. The population for FY 2012 was obtained from Ogden City's Planning Division and is as of 06/30/2012 2 Total full-time authorized positions as approved by City Council when fiscal year budget is adopted. Authorized positions may be temporarily vacant. 146 ---PAGE BREAK--- Total General Government Cost per Expenditures Resident (Excluding to Run Fiscal Capital City Year Population 1 Outlay) Government 2003 80,599 59,573,244 $ 739.13 $ 2004 81,416 57,692,227 708.61 2005 82,007 63,843,473 778.51 2006 82,007 70,356,146 857.93 2007 82,843 76,121,355 918.86 2008 82,843 79,399,730 958.44 2009 82,865 72,159,613 870.81 2010 83,296 97,249,991 1167.52 2011 83,171 70,320,595 845.49 2012 83,949 65,443,640 779.56 1 Population estimates from the Department of Workforce Services FY 2010 population is the July 1, 2009 estimate). Population from the 1990 census was 63,909. The population figures have been revised to bring them more in line with the census. FY 2011 population is from the 2010 census. The population for FY 2012 was obtained from Ogden City's Planning Division and is as of 06/30/2012. Ogden City Cost per Resident to Run City Government Last Ten Fiscal Years (UNAUDITED) 147