Document Ogden_doc_53dcab3c64

Comprehensive Annual Financial Report Year Ended June 30, 2013 ---PAGE BREAK--- ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT OF OGDEN CITY CORPORATION Year Ended June 30, 2013 Ogden, Utah Mayor Michael P. Caldwell City Council Bart E. Blair Neil K. Garner Caitlin K. Gochnour Richard Hyer Doug Stephens Susie Van Hooser Amy L. Wicks Prepared by: Department of Management Services David G. Buxton, 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 Marci Grover, Accountant 1 ---PAGE BREAK--- OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2013 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 Position………….. 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)…………… 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 - Debt 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 14 17 29 30 34 35 36 37 40 44 45 50 78 80 81 83 88 89 90 91 92 93 94 95 2 ---PAGE BREAK--- OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2013 Table of Contents, Continued Proprietary Funds Nonmajor Enterprise Funds Combining Statement of Net Combining Statement of Revenues, Expenditures and Changes in Net Position…………………………… Combining Statement of Cash Internal Service Funds Combining Statement of Net Combining Statement of Revenues, Expenditures and Changes in Net Position…………………………. Combining Statement of Cash State of Utah – Impact Statistical Section (Unaudited) Financial Net Position by Changes in Net Changes in Fund Balances, Governmental Fund Balances, Governmental Revenue Assessed and Estimated Actual Value of Taxable Principal Taxpayers for the Calendar Year 2012, 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 Proposed Additional Schedule of revenues, expenses, and changes in net position, sanitary and storm 98 100 102 106 107 108 109 114 115 116 118 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 146 147 148 3 ---PAGE BREAK--- C M C O D C s S g s C d c S C in re S M s a is U s u g E a a ra g a c c a d B u C p a G B F P Citizens, Honorab Members of the C City of Ogden Ogden, Utah 844 Dear Citizens, Ma In accordance Comprehensive A standards develo Statements. Th government, inclu services. Additio Responsibility City managemen 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, inclu and compliance w REP The City of Ogd s defined as a c Utah Code. The serves a popula under a strong government the Executive over th as the legislative annual budget. This report incl ange of service governmental fun and engineering control, parks o community deve addition, water s disposal services BDO activities, under an enterpr Council to ensu payments on out an enterprise fu General Fund. F The Tax Incre Building Authority Funds. The Cap Park Endowment ble Mayor and City Council 401 ayor and Membe e with Section Annual Financia oped by the G he Government-W uding all capital nal information c for both the acc nt. To the best 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 uding the Schedu with applicable la PORTING ENTIT den, Utah was in city of the secon e City is located ation of over 82 mayor form of Mayor is elected he administration arm of the gove udes all the Cit es. Services p nctions include g, code enforce operation and elopment, and g services, sewer s, the golf cour ambulance and rise fund concep re adequate co tstanding debt. und supported, leet/facilities ope ement Districts o y, Cemetery Perp pital Projects fun t is reported as a ers of the City Co 10-6-150 of th al Report of the Governmental Ac Wide Financial assets (including can be found in M curacy of the data of our knowledg 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 ule of Federal Aw aws and regulatio Y AND ITS SER ncorporated on F d class as defin in the northern p 2,000 residents. government. d to a full-time p of the City. The rnment and appr ty's funds. The rovided by the police and fire ement, street maintenance, general administ services, solid w rses, certain rec d paramedic se pt, with user cha verage of opera The Municipal A in part, by con erations, informa f the Ogden Red petual Care and d is used to acc a permanent fund ouncil: he Utah Code City of Ogden. ccounting Stand Statements incl g infrastructure) Management’s D a, and the comp ge, the enclosed 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 wards, findings a ons are included RVICES February 6, 1851 ned in Title 10 o part of the state The City funct Under this form position as the C e City Council se roves and adopts City provides a City under gen protection, plan maintenance, tr recreation serv trative services. waste collection creational progra rvices are prov arges set by the ating expenses Airport is handle ntributions from tion technology s development Age the Downtown O count for projects d. The interest fr Unannotated 19 . This report dards Board (G lude a statemen and the stateme iscussion and An leteness and fair d data are accu perations of the C ished for this pur n three sections mittal letter, the or the 2012 Com ndividual fund fi n also includes formation presen ormity with the p al Governments and recommend in a separate Si and f the and tions m of Chief erves s the a full neral nning raffic ices, In and ams, vided City and d as the systems and risk ency are reporte Ogden Special Im s approved in the rom this fund is u Decem 993 you are be has been forma GASB). This re nt of net assets ent of activities t nalysis which be rness of the pres urate 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 ations, and audi ngle Audit report k management a ed as a Special R mprovement Distr e City’s Capital used to improve o mber 17, 2013 eing provided t atted to comply eport includes G s that provide that shows the c egins on page 17 sentation, includi rial respects and 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. itors’ reports on t. re handled throu Revenue Fund i rict are also repo Improvement Pla our parks system the Fiscal Year with the financ Government-Wid the total net as cost of providing 7. ing all disclosure d are reported i 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 the internal cont ugh internal servi n this report. Th orted as Special an. The Gomer m. r 2012-2013 cial reporting de Financial ssets of the government 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 trol structure ce funds. he Municipal Revenue A. Nicholas 4 ---PAGE BREAK--- a fr a b o a th e a (t in E re fi F b s h th 2 T th la la th m o M s c w la o in q In developing accounting contro rom unauthorize accountability for be derived; and ( occur within the assurance of prop 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 inancial position FY 2013 along w budget are slightl stronger than it h healthy, due to ef There is reaso he Federal Gove 2014 budget, if d The City will cont Redevelopme his region has re Forbes ranked argest metro are abor force. Forbe hat we know as t Ogden made t metropolitan area one of two newco March. "Making t spotlight," said M construction throu welcoming of new Ogden ranked argest metro are of living, housing ncome), commut quality (mainly te and evaluating t ols are designed ed use or disp assets. The con the evaluatio above framewor per recording of 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) 2013, at the end of FY with increased Mu ly more optimisti as been in the p fforts to attract ne on for concern fo ernment level. D eemed necessa inue to closely w nt and revitalizat eceived accolade d Ogden 16th in t as on a dozen fa es highlighted Og the Business De the top 10 On Nu as in the United S omers to the list, his list for the firs ayor Mike Caldw ughout the city, w w businesses, bo d No. 8 in the nat as in the US ran affordability (wh ting delays, perc st scores). ACCOU the City's accoun d to provide reas osition; and ncept of reasona on of costs and b rk. We believe t financial transac 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 econo Y 2013, due in pa unicipal Energy s c, due to econom past few years, h ew and expandin or the overall fin Depending on dec ry. Mid-year bud watch revenue co tion continue to b es and kudos on the US for busin actors related to j gden’s transform pot Ogden which umbers Economi States and is a m rounded out the st time validates well. "The vitality whether it's the e oth creating new tion for best city t king each in sev at pct. of the ma entage of familie UNTING SYSTE nting system, con sonable, but not ) the reliability able assurance re benefits requires the City's interna ctions. 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 omy, along with art to conservativ sales tax, which mic growth and t elping drive sale ng businesses. ancial outlook fo cisions made by dget adjustments ollection and take be an important f a global scale. ess and careers jobs, costs of bu mation of the form h is attracting an ic Index, which ra measure top ten, at No. 8 our efforts to dra of our town is ev expansion of curr jobs that bolster to raise a family. ven categories: m rket is affordable es owning homes EM AND BUDGE nsideration is giv absolute, assur of financial rec ecognizes that: s estimates and al accounting co 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 the national eco ve spending. Th helped close an he continued rec es tax revenue fo or 2014 due to th the Federal Gov s are dependent e appropriate act focus for Ogden . To gauge the b siness, cost of liv mer US Army defe d recruiting com anks the top-rate of economic vita 8 in April, rising fr aw Ogden into th vident as we hea rent businesses o our growing eco Forbes looked a median income, o e to a family at th s, crime rate, and ETARY CONTRO ven to the adequ rance regarding: cords for prepa the cost of co judgments by m ontrols adequatel 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 onomy grew at a he City experienc ny gaps in other covery of retail b or the City. The he uncertainty of vernment, the Ci t on how the eco tion if projections City, and the ha best places for bu ving, income gro ense depot into a panies to move o ed ality. Ogden, rom No.12 in he national ar the buzz of or the onomy." at the 100 overall cost he median d education O OL uacy of internal a the safegua aring financial s ontrol should not management. Al ly safeguard ass 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 a moderate pace ced a 4% growth major revenues. business in gener rate of job growt f future debt ceil ity can make mid onomy reacts to s are not being m rd work is getting usiness in the US owth, quality of lif a 1,128-acre sta operations to the Ogden City Co Letter of T accounting contro arding of assets statements and t exceed the ben l internal control sets and provide al control structu regulations. mpliance with lega ty are included in he level of budge department lev mplishing budget following year's e. Ogden City is h in sales tax rev Projections in t ral. Consumer c th for the City ha ling and budget d-year adjustmen changes in Fede met. g noticed. In the S, Forbes ranked fe, and education te-of-the-art indu e area. orporation Transmittal ols. Internal against loss maintaining efits likely to evaluations e reasonable re, including al provisions n the annual etary control vel within an tary control. budget, and s in a better venue during the FY 2014 confidence is as also been decisions at nts to the FY eral Policies. past year d 200 of the n of the ustrial park 5 ---PAGE BREAK--- e s p m 2 in p c c p m re r c g h 7 th O a re a In B CNN ranked O employers, such systems company policies also exte makes Ogden on The state of U 2013—for the six nnovation by the Economic dev promising results current and future Re-Ogden: W contaminated site promotes to neigh made in preparin einforces that do Scenic Tour o ide through Utah Summit Outsid create a platform global leaders an have in past year 7000 acres of it. M he world met her Esurance: Thi Ogden bringing 7 awards and adds America First edevelopment ar able, workable co Boeing/Peters nc. received Boe Boeing's overall s Ogden No. 7 of m as Flying J Mana y, all of which ar end to real estate e of the most aff Utah overall saw g th year in a row— US Chamber of velopment is prog for Ogden, and e prosperity for re Working with the E es in the Ogden a hboring commun g land for prospe oing business in O f Utah: City and h highlighting bea de: The Summit and a communit d innovators. Th rs, Summit outdid More than 900 e re to foster busin s direct-to-consu 700 new jobs to t s clout to Ogden’s Credit Union: Th rea adds a critica ommunity. son: Proving that eing’s ‘Supplier o success. most affordable c agement, an oil s e based in Ogde e developers so h fordable of all we great praises las —by the America Commerce. gressing due to d all redevelopme esidents. Ogden Environmental P area, the City lau nities the positive erous business v Ogden is a good State officials ho autiful state and Series is an ann ty that fosters co his year instead o d themselves by ntrepreneurs, ph ness connections umer insurance c he area. Esuranc s portfolio of suc his full service ba al component to Ogden is compe of the Year Award cities in the US to services compan en. And there's a home building ca estern markets.” st year too that he an Legislative Ex diligent efforts in nt activities are m must be proacti In its of Ogden and mixe located i efforts ar Ogde Universit reinforcin universit Downtow store and tank that anticipat rotection Agency unched the re-Og e efforts and prog ventures. The re d investment. osted a several h national parks, u unique cha Ogden as bike comp industry. A success fro City has be economic XTERR features ra regional ch huge econ receives g marketing showcasin hard to bui vibrant life nual event put on ollaboration and a of renting a cruise buying a mounta hilanthropists, art s and partnership company opened ce has won num ccessful business anking facility in t the overall vision eting as a world- d’ for the compan o buy a home citi ny, Convergys, a lso the IRS, whic an be done much elped Ogden. Ut xchange Council. prior years. The made with seriou ve to ensure eco ninth year of com n has focused in ed-use spaces co n the heart of do re comprehensiv en City has forma ty which is welco ng on-campus op y to establish a m wn, a renovation d student classro t will help launch ed to bring high- y to clean up som gden campaign w gress Ogden City -Ogden campaig hundred-mile bik urban areas, and arm of Ogden to a relocation city anies and the cy Already seeing om that event, O een touted as “do development cor RA Trail Run Nati aces all over the hampionship tota nomic impact to t reat exposure an with this high-pro ng the very image ild which is that o style. n by a team whos amplifies the pos e ship for their gu ain—Powder Mo tists, and investo ps. d a customer serv erous “best plac s recruits to the a he heart of Ogde n to make this a w class city, Ogden ny's exceptional ng that “pro-bus business consu ch runs a big fac h more economic tah ranked top of . Utah also ranke e City has underta us analysis of pot onomic vitality. mmunity and eco large part on the ontinue to be dev owntown Ogden. ve, multidimensio ally established a oming students a pportunities for r major presence d of a multi-level b ooms as well as businesses, and -tech industry an me 62 which y has gn ke the pitch for ycling Ogden oing rrectly.” ionals: This high nation and the w als. Ogden hosts he area that’s ha nd indirect ofile event e we are working of an active, se goal is to sitive impact of uests as they ountain that is—a ors from around vice office in ces to work” area. en’s river walk-able, live- n-based Peterse contributions to O iness policies ha ltancy, and Auto ility with 5,000 w cally. This couple f the list for Best ed 4th best state aken many strate tential benefits a onomic developm e central busines veloped along th As with any res onal, and ongoing a college town in and faculty to the esidents. The ini downtown with th building circa 185 Startup Ogden, a d a mobile applic d high paying job hly competitive o world as competit s the national cha ard to quantify w g all en Ogden City Co Letter of T ave attracted ma oliv, an automotiv workers. Utah's p ed with high inco Economic Outlo for entrepreneu egies that have l and a watchful ey ment resurgence ss district. Housi he Ogden River P surgence, develo g. itiative with Web e downtown area itiative prompted he opening of W 50s that houses an entrepreneuri cations software bs to the area. off-road running s tors earn points ampionship even ith numbers alon orporation Transmittal ny private ve safety ro-business mes here ook in rship and ed to ye toward , the rebirth ng, retail, Project opment ber State while d the eber State a campus ial think lab series toward nt bringing a ne. Ogden 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, 2013 totaled $56,892,725. The amounts of revenue from various sources are shown in the following tabulation: Taxes produced 65.8 percent of general revenues. The amount of taxes collected in fiscal year 2013 increased mostly from sales tax and franchise tax revenue. All areas of tax collection increased during 2013, with the exception of telecommunication taxes. Taxable value of property in Ogden City for calendar year 2012 was $3.644 billion. Included in this amount is $713 million in the tax increment districts. Licenses and permits provided 3.1 percent of general revenues. The decrease from the prior year is due to less commercial permits being issued in 2013. During 2012 the City experienced a jump in this revenue source, mostly due to three or four very large development projects. Intergovernmental revenues represented 13.6 percent of total general revenue. This represents a slight increase over the prior year, due primarily to changes in the level of grant revenue received by the City. Charges for services provided 11.6 percent of general revenues. This source is very stable compared to the prior year. General participation in these activities changes with economic conditions. Fines and forfeitures provided 3.9 percent of general revenues. Justice court and civil citation activity has decreased over the past year. The 2013 revenue for fines and forfeitures has dropped back below the 2010 levels. Interest Income provided 0.0 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, 2013 totaled $54,696,021. Levels of expenditures for major functions of the city are as follows: Expenditures for fiscal year 2013 increased over the prior year. The majority of this increase is attributed to the City covering increased cost of health care insurance and retirement. Additionally the City awarded a 1 percent bonus to employees during 2013. % of % of % of Revenue Source 2013 Total 2012 Total 2011 Total 2010 Taxes 37,445,113 $ 65.8% 35,865,785 $ 63.6% 34,557,757 $ 63.1% 33,871,436 $ Licenses and permits 1,789,847 3.1% 2,285,419 4.1% 1,817,655 3.3% 2,023,309 Intergovernmental 7,712,677 13.6% 7,385,017 13.1% 7,806,508 14.3% 6,985,697 Charges for services 6,577,440 11.6% 6,557,954 11.6% 6,225,463 11.4% 6,789,028 Fines and Forfeitures 2,193,546 3.9% 2,930,273 5.2% 2,906,270 5.3% 2,339,788 Interest income 8,319 0.0% 148,198 0.3% 66,802 0.1% 152,238 Other revenue 1,165,783 2.0% 1,238,791 2.2% 1,391,636 2.5% 2,600,904 56,892,725 $ 100% 56,411,437 $ 100% 54,772,091 $ 100% 54,762,400 $ Change from prior year 3.9% 3.0% 0.0% 1.5% Expenditure by % of % of % of % of Function 2013 Total 2012 Total 2011 Total 2010 Total General Government 9,520,746 $ 17.4% 9,956,836 $ 18.5% 10,041,095 $ 17.7% 11,117,091 $ 20.0% Police and Fire 24,124,524 44.1% 23,180,853 43.0% 24,279,450 42.7% 23,311,460 42.0% Public Services 9,919,398 18.1% 9,873,168 18.3% 10,897,470 19.2% 10,018,882 18.1% Community and Economic Development 8,571,079 15.7% 8,394,772 15.6% 9,214,520 16.2% 8,569,653 15.4% Debt Service 2,560,274 4.7% 2,473,856 4.6% 2,442,331 4.3% 2,477,737 4.5% 54,696,021 $ 100% 53,879,485 $ 100% 56,874,866 $ 100% 55,494,823 $ 100% Change from prior year 3.8% -5.3% 2.5% 3.8% 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 twenty-five percent of estimated revenues. Under these guidelines the City's fund balance parameters are approximately $2,641,285 and $9,508,626 based on next fiscal year's budgeted receipts. The unassigned portion of the General Fund balance at June 30, 2013 is $4,254,714. 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 2013: During fiscal year 2013, the City issued two State revolving loan fund bonds totaling $9,339,000 secured by water revenue. The City refunded a Storm Sewer revenue bond issue for $2,043,000. For more information, please see Note 7 Long-term debt in the Notes to the Financial Statements. Outstanding bonds: General Obligation Refunding issued in 2009 have $5,975,000 principal outstanding. These bonds mature December 15, 2015. Sales Tax Revenue issued in 2011 have $1,554,000 principal outstanding. These bonds mature March 1, 2026 Tax Increment Revenue bonds have $40,110,000 principal outstanding. These bonds mature by June 2031. Water & Sewer Revenue bonds issued in 2009 have $4,415,000 principal outstanding. These bonds mature June 15, 2024. Water & Sewer Revenue bonds issued in 2008 have $44,900,000 principal outstanding. These bonds mature June 15, 2038. Income (loss) before transfers and % % % % capital contributions 2013 Change 2012 Change 2011 Change 2010 Change Water Utility 3,793,285 $ 11.1% 3,415,763 $ 278.2% 903,064 $ -30.3% 1,294,971 $ -6.5% Sew er Utility 2,390,258 -36.9% 3,789,038 24.3% 3,048,011 -5.2% 3,216,211 25.4% Refuse Collection 722,673 81.6% 397,913 -7.9% 431,949 -27.5% 595,497 -26.1% Business Depot Ogden (760,153) 31.4% (1,108,348) -216.8% (349,891) -224.8% 280,356 131.0% Municipal Airport 1,492,138 189.3% (1,670,682) -16.3% (1,436,198) -311.0% (349,410) -139.5% Golf Courses (273,635) -15.8% (236,230) 21.9% (302,661) -27.5% (237,293) -25.7% Recreation 47,470 782.8% (6,952) 77.4% (30,747) -8.0% (28,468) -5421.1% Dinosaur Park 83 101.9% (4,285) 98.5% (279,224) -22.6% (227,704) -146.1% Medical Services 797,025 -54.1% 1,736,820 202.8% 573,540 552.8% (126,662) -111.2% Unrestricted % % % % Net Position 2013 Change 2012 Change 2011 Change 2010 Change Water Utility 8,089,476 $ -7.9% 8,779,378 $ -457.2% 2,458,174 $ -174.1% 3,318,654 $ 869.9% Sew er Utility 18,011,400 19.4% 15,081,839 37.9% 10,938,700 22.3% 8,941,673 42.6% Refuse Collection 2,799,724 26.1% 2,220,522 191.5% 761,791 166.4% 285,908 180.8% Business Depot Ogden 9,409,399 18.5% 7,943,621 4.4% 7,612,368 8.7% 7,002,485 80.3% Municipal Airport (2,122,551) -26.5% (1,678,284) 16.4% (2,006,473) -26.6% (1,585,143) 20.1% Golf Courses (423,539) 46.7% (794,518) 8.8% (871,210) 13.7% (1,009,477) 24.8% Recreation 45,485 -61.4% 117,775 -4.3% 123,075 -19.6% 153,062 -15.3% Dinosaur Park (27,795) 0.3% (27,878) 18.2% (23,593) -145.3% 52,030 -6.7% Medical Services 3,208,148 -15.8% 3,808,334 84.5% 2,064,017 36.7% 1,509,541 -9.8% 8 ---PAGE BREAK--- 9 ---PAGE BREAK--- 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 ---PAGE BREAK--- OGDEN CITY CORPORATION PRINCIPAL CITY OFFICIALS June 30, 2013 Michael P. Caldwell, Mayor Bart E. Blair, Chair City Council Member Neil K. Garner, Vice Chair Caitlin Gochnour Richard Hyer City Council Member City Council Member City Council Member Doug Stephens Susie Van Hooser Amy L. Wicks City Council Member City Council Member City Council Member Title Name City Council Executive Director William B. Cook Chief Administrative Officer Mark L. Johnson City Recorder Tracy Hansen City Attorney Gary Williams Management Services Director David G. Buxton 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 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- To the Ma Ogden Ci Ogden, U Report on We have a activities, City) as o collective Managem Managem accordanc the design presentati error. Auditor’s Our respo our audit the standa Comptrol obtain rea An audit i the financ assessmen In making and fair p the circum internal co appropria made by m We believ our audit 5 Triad C ayor and Mem ty Corporatio UT n the Financ audited the ac each major f of and for the ely comprise t ment’s Respo ment is respon ce with accou n, implementa ion of financia s Responsibil onsibility is to in accordance ards applicabl ler General o asonable assur involves perfo cial statement nt of the risks g those risk as resentation of mstances, but ontrol. Accor teness of acco management, ve that the aud opinions. Center, Ste. 750 I mbers of the C on ial Statemen ccompanying fund, and the year ended Ju the City’s bas onsibility for sible for the p unting princip ation, and ma al statements lity o express opin e with auditin le to financial f the United S rance about w orming proce s. The proced s of material m ssessments, th f the financia not for the pu rdingly, we ex ounting polic as well as ev dit evidence w w ww .e Salt Lake City, UT Independen City Council nts financial stat aggregate rem une 30, 2013, sic financial st the Financia preparation an les generally aintenance of that are free nions on these ng standards g l audits conta States. Those whether the fin edures to obta dures selected misstatement he auditor con l statements i urpose of exp xpress no such ies used and t valuating the o we have obtai idebailly.c 84180-1128 I T 8 nt Auditor’s tements of the maining fund and the relat tatements as l al Statements nd fair presen accepted in th internal contr from materia e financial sta generally acce ined in Gover standards req nancial statem ain audit evide d depend on th of the financi nsiders intern in order to des pressing an op h opinion. An the reasonabl overall presen ined is suffici c o m [PHONE REDACTED] I F 8 Report e government information o ted notes to th listed in the t s ntation of thes he United Sta rol relevant to al misstatemen atements base epted in the U rnment Audit quire that we ments are free ence about th he auditor’s ju ial statements nal control rel sign audit pro pinion on the n audit also in leness of sign ntation of the ient and appro [PHONE REDACTED] I E tal activities, of Ogden City he financial st able of conten se financial st ates of Ameri o the preparat nt, whether du ed on our audi United States t Standards, is plan and perf e from materi he amounts an udgment, inc s, whether du evant to the e ocedures that effectiveness ncludes evalu nificant accoun financial stat opriate to pro OE the business- y Corporation tatements, wh nts. tatements in ica; this inclu tion and fair ue to fraud or it. We conduc of America a ssued by the form the audi ial misstateme nd disclosures luding the e to fraud or entity’s prepar are appropria of the entity ating the nting estimat tements. ovide a basis f -type n (the hich des r cted and it to ent. s in error. ration ate in ’s es for 14 ---PAGE BREAK--- Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Ogden City Corporation, as of June 30, 2013, and the respective changes in financial position and, where, applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Correction of Error As discussed in Note 17 to the financial statements, certain errors resulting in understatement of amounts previously reported for fund balance and net position as of June 30, 2012, were discovered during the current year. Accordingly, amounts reported as fund balance and net position have been restated in the 2013 financial statements now presented to correct the effects of the error. Our opinion is not modified with respect to that matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and information about infrastructure assets on pages 17 through 25 and 78 through 83 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of American, which consisted of inquires of management about the methods or preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Ogden City Corporation’s financial statements. The introductory section, combining and individual nonmajor fund financial statements, other supplemental budgetary schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements and the other supplemental budgetary schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and other supplemental budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 15 ---PAGE BREAK--- The introd audit of th assurance Other Re In accorda 2013 on o our tests o other matt financial r internal co Salt Lake December ductory and s he basic finan e on them. eporting Req ance with Go our considerat of its complia ters. The pur reporting and ontrol over fin City, Utah r 16, 2013 tatistical sect ncial statemen quired by Gov vernment Aud tion of Ogden ance with cert rpose of that r d compliance a nancial repor tions have not nts and, accor vernment Au diting Standa n City Corpor tain provision report is to de and the result rting or on com t been subject dingly, we do diting Standa ards, we have ration’s intern ns of laws, reg escribe the sco ts of that testi mpliance. ted to the aud o not express ards also issued a nal control ov gulations, con ope of our tes ing, and not to diting procedu an opinion or a report dated ver financial r ntracts, grant a sting of intern o provide an ures applied in r provide any December 16 eporting and agreements, a nal control ov opinion on th n the y 6, on and ver he 16 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 INTRODUCTION The following is a discussion and analysis of Ogden City’s financial performance and activities for the year ended June 30, 2013. 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 position increased $16,970,356 or 5.11 percent from the prior year. Net position of governmental activities increased $9,173,473 or 6.86 percent, and net position of business-type activities increased by $7,796,883 or 3.93 percent. Fund Level  Fund balances in the City’s governmental funds increased $167,219 or .82 percent from the prior year. Revenue in most governmental funds met budgeted expectations with the exception of the Redevelopment Agency. Additionally the RDA recognized a loss on land transferred to a developer recorded as a special item in the financials. This special item is also discussed in note 18 on page 75.  Property tax revenues increased by 7.43 percent over the prior year due to increased values in the Redevelopment areas as of January 2013, when property taxes are assessed. The City’s total sales taxes increased $597,914 or 4.56 percent from the previous year. This is generally attributed to a stable economy and some new retail development. Long-term Debt  The City’s long-term debt decreased by the amount of scheduled payments, less the issuance of the 2012 State Water Bonds and the 2013 State Water Bonds.  The Sewer Fund issued a 2012 Storm Sewer Revenue refunding bond of $2,043,000 to replace the Storm Sewer 2008 debt. The new 2012 Storm Sewer Bond has a lower rate of interest and will be paid off in June of 2023. 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 Position and the Statement of Activities beginning on page 29 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 position - the difference between total assets and total liabilities - and how they have changed from the prior year. Over time, increases and decreases in net position 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. 17 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 Fund Financial Statements - Reporting the City’s Most Significant Funds The fund financial statements beginning on page 34 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. 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 37 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. 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 78 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. 18 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position The largest component of the City’s net position, 83.28 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 position comprises 4.05 percent of total net position and is subject to external restrictions on how it may be used. Unrestricted net position is 12.67 percent of total net position. Ogden City Corporation Net Position June 30 Governmental Business-type Activities Activities Total 2013 2012 Restated 2013 2012 2013 2012 Current and other assets $ 61,718,493 $ 62,870,129 $ 55,950,618 $ 49,147,923 $ 117,669,111 $ 112,018,052 Capital assets 181,790,329 183,587,803 220,547,150 210,435,818 402,337,479 394,023,621 Total Assets 243,508,822 246,457,932 276,497,768 259,583,741 520,006,590 506,041,673 Current and other liabilities 47,812,765 49,483,974 9,586,011 7,813,811 57,398,776 57,297,785 Long-term liabilities 52,854,729 63,306,103 60,488,175 53,143,231 113,342,904 116,449,334 Total Liabilities 100,667,494 112,790,077 70,074,186 60,957,042 170,741,680 173,747,119 Net position Invested in capital assets, Net of related debt (restated) 125,648,296 118,685,109 165,392,832 162,826,097 291,041,128 281,511,206 Restricted 12,047,845 13,968,126 2,041,003 349,829 14,088,848 14,317,955 Unrestricted 5,145,187 1,014,620 38,989,747 35,450,773 44,134,934 36,465,393 Total Net Position $ 142,841,328 $ 133,667,855 $ 206,423,582 $ 198,626,699 $ 349,264,910 $ 332,294,554 Change from prior year: 6.86% 5.97% 3.93% 2.01% 5.11% 3.82% 19 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 Changes in Net Position The following charts and schedules summarize the City’s revenues and expenses relative to each other and the prior year. Ogden City Total Revenues - 2013 Ogden City Total Expenses – 2013 20 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 Governmental Activities Tax revenues increased during 2013 by $2,764,933. Property, sales, and franchise taxes made up the majority of this increase. Net position for governmental activities increased this year by $9,173,473. Expenditures decreased due to a bond refunding in the prior year which increased long term debt costs for the prior year. Ogden City Corporation Changes in Net Position Years Ended June 30 Total Governmental Business-type Percent Activities Activities Total Change 2013 2012 2013 2012 2013 2012 2012-2013 Revenues General Revenues Taxes $ 45,809,938 $ 43,045,005 $ - $ - $ 45,809,938 $ 43,045,005 6.0% Other General Revenues 1,219,768 716,919 451,878 371,047 1,671,646 1,087,966 34.9% Program Revenues Charges for Services 23,910,195 24,384,989 48,566,280 48,204,635 72,476,475 72,589,624 -0.2% Operating Grants 4,895,549 3,662,162 4,937 - 4,900,486 3,662,162 25.3% Capital Grants 4,618,131 5,055,575 3,427,745 3,746,183 8,045,876 8,801,758 -9.4% Total Revenues 80,453,581 76,864,650 52,450,840 52,321,865 132,904,421 129,186,515 2.8% Expenses General Administration 20,278,677 24,173,956 - - 20,278,677 24,173,956 -19.2% Public Safety 25,562,249 25,742,362 - - 25,562,249 25,742,362 -0.7% Transportation 5,578,078 5,236,900 - - 5,578,078 5,236,900 6.1% Environmental Protection 531,471 582,561 - - 531,471 582,561 -9.6% Leisure Opportunities 5,970,011 6,047,729 - - 5,970,011 6,047,729 -1.3% Community Development 9,216,870 5,782,149 - - 9,216,870 5,782,149 37.3% Interest on Long-term Debt 1,754,652 4,507,901 - - 1,754,652 4,507,901 -156.9% Medical Services - - 5,100,067 5,136,183 5,100,067 5,136,183 -0.7% Airport - - 2,306,211 1,991,983 2,306,211 1,991,983 13.6% Utilities - - 26,616,342 26,358,238 26,616,342 26,358,238 1.0% Refuse - - 4,418,293 4,563,104 4,418,293 4,563,104 -3.3% Recreation - - 1,498,458 1,567,052 1,498,458 1,567,052 -4.6% Property Management - - 4,302,325 4,689,194 4,302,325 4,689,194 -9.0% Total Expenses 68,892,008 72,073,558 44,241,696 44,305,754 113,133,704 116,379,312 -2.9% Change in Net Position beforeTransfers 11,561,573 4,791,092 8,209,144 8,016,111 19,770,717 12,807,203 35.2% Special item (2,800,394) - - (586,286) (2,800,394) (586,286) 0.0% Transfers 412,294 3,525,450 (412,294) (3,525,450) - - 0.0% Change in Net Position 9,173,473 8,316,542 7,796,850 3,904,375 16,970,323 12,220,917 28.0% Net Position - Beginning (restated) 133,667,855 126,132,616 198,626,732 194,722,324 332,294,587 320,854,940 3.4% Net Position - Ending $ 142,841,328 $ 133,667,855 $ 206,423,582 $ 198,626,699 $ 349,264,910 $ 333,075,857 4.6% The following table shows to what extent the City’s governmental activities relied on taxes and other general revenue to cover their costs. For 2013, these programs generated $33,423,875 or 48.5 percent of total expenses through charges for services and grants. Taxes, other general revenues and fund balance covered the remaining 51.5 percent. 21 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 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 2013 2013 2013 2012 2013 2012 Activities General Administration $ 20,278,677 $ (15,335,519) $ 4,943,158 $ 9,456,702 75.6% 60.9% Public Safety 25,562,249 (4,550,537) 21,011,712 21,201,934 17.8% 17.6% Transportation 5,578,078 (2,939,689) 2,638,389 2,372,472 52.7% 54.7% Environmental Protection 531,471 (2,890,946) (2,359,475) (3,153,673) 544.0% 641.3% Leisure Opportunities 5,970,011 (1,659,429) 4,310,582 5,210,709 27.8% 13.8% Community Development 9,216,870 (6,047,755) 3,169,114 (625,213) 65.6% 110.8% Interest on Long-term Debt 1,754,652 - 1,754,652 4,507,901 0.0% 0.0% Total Governmental Activities $ 68,892,008 $ (33,423,875) $ 35,468,132 $ 38,970,832 48.5% 45.9% Business-type Activities The business-type activities are generating sufficient revenue, before capital contributions and transfers, to cover costs in the water, sewer, refuse, medical funds, and recreation funds. Reductions in net position occurred in the BDO property management, airport and golf funds. This combined with non-operating transfer and capital contribution activities resulted in an increase in net position of $7,796,850 for the combined business activities. CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION Capital Assets Ogden City added $22,838,089 in new capital assets during 2013. New additions to buildings and improvements, equipment, land, construction in progress, intangibles, and infrastructure were $15,884,346, $3,150,837, $637,559, $2,414,677, $108,520, and $642,151, respectively. Overall, construction-in-progress decreased $338,345. Several projects were completed and reclassified during the year, in the amount of $2,699,643 the majority of these were reclassified as infrastructure. New projects were also started increasing construction-in-process by $2,414,677, the majority of these projects relate to the airport fund. The City sold or disposed of $3,822,880 in capital assets, which mostly consisted of outdated equipment. During the year, the BDO Property Management Fund transferred improvements totaling $1,535,780, $562,020 and $271,333 to the sewer funds, general fixed assets and water 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 83. 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 2013 the City spent $4,750,867 on infrastructure compared to a budget estimate of $6,385,969. More information about capital assets is included in Note 5 on page 62. 22 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 Long-term Debt The City issued the 2012 State Water Bond for $4,000,000 and the 2013 State Water Bond for $5,339,000 during the year. The City also issued a 2012 Storm Sewer Revenue refunding bond. Note 7 on page 64 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 2013 2012 2013 2012 2013 2012 2012-2013 General Obligation Bonds $ 7,529,000 $ 9,475,000 $ - $ - $ 7,529,000 $ 9,475,000 -20.54% Lease Revenue Bonds 4,442,000 4,752,000 - - 4,442,000 4,752,000 -6.52% Tax Increment Revenue Bonds 40,110,000 45,220,000 - - 40,110,000 45,220,000 -11.30% Enterprise Revenue Bonds - - 61,644,000 53,847,000 61,644,000 53,847,000 14.48% Notes Payable 1,500,000 1,890,000 - - 1,500,000 1,890,000 -20.63% Capital Leases 2,735,530 3,390,174 - - 2,735,530 3,390,174 -19.31% Claims payable 1,401,897 2,037,309 - - 1,401,897 2,037,309 -31.19% Compensated Absences 3,067,407 2,963,060 884,169 860,068 3,951,576 3,823,128 3.36% Bond Premium 207,379 276,505 336,646 350,112 544,025 626,617 -13.18% Bond Discount (37,310) (40,365) (19,886) (34,894) (57,196) (75,259) -24.00% Total $ 60,955,903 $ 69,963,683 $ 62,844,929 $ 55,022,286 $ 123,800,832 $ 124,985,969 -0.95% FINANCIAL ANALYSIS OF THE CITY’S FUNDS Fund Balances At June 30, 2013, Ogden City’s governmental funds reported combined fund balances of $20,481,788. An amount of $3,401,042 is classified as nonspendable and includes prepaids, inventory, loans to other funds, and Gomer Nicholas fund principal. An amount of $1,051,458 is reported as spendable-restricted for debt service, unspent bond proceeds and revolving loan program capital. An amount of $11,779,599 is reported as spendable-assigned for various purposes as detailed on the face of the governmental funds balance sheet. An amount of, $4,254,714 is reported as spendable- unassigned. It is important to note that included in the unassigned amount is the State of Utah required reserve of $2,552,106. The following table presents the City’s fiscal year 2013 ending governmental fund balances. Ogden City Governmental Fund Balances June 30, 2013 General Redevelopment Nonmajor Fund Agency Funds Total Nonspendable $ 2,810,610 $ - $ 585,407 $ 3,396,017 Spendable - restricted 373,793 256,930 420,735 1,051,458 Spendable - assigned 3,929,332 474,638 7,375,629 11,779,599 Spendable - unassigned 4,254,714 - - 4,254,714 Total $ 11,368,449 $ 731,568 $ 8,381,771 $ 20,481,788 Percent Change from Prior Year: 26.66% -79.52% 7.90% 0.82% 23 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 General Fund During 2013, the fund balance in the General Fund increased $2,393,004 or 26.6 percent. Revenues exceeded expenditures, before considering other financing sources and uses, by $2,196,704. Revenue in most of the key revenue categories came in very close or exceeded budgeted amounts. As costs such as fuel, healthcare and retirement continue to increase the City is proactive to prepare a conservative budget to ensure revenues will be sufficient to cover expenditures. Redevelopment Agency Fund (RDA) During the fiscal year, the fund balance in the RDA fund decreased $2,839,758. Revenues exceeded expenditures, before considering other financing sources and uses, by $2,002,913. The main reason for the decrease in fund balance is a result of other financing sources and uses. The Ogden River area had a property transfer and development agreement that required the recognition of a loss on land held-for-redevelopment of $2,800,394. Transfers out of the RDA exceeded transfers into the RDA by $2,042,277. Water Fund In the current year, net position increased $3,989,466, primarily as a result of the approved rate increases that went into effect during the fiscal year. The BDO Property Management Fund also transferred infrastructure assets totaling $271,333. Results from operations were positive at $5,766,076. Rate increases were 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 including the replacement of a main water line into the City through Ogden Canyon from Pine View Reservoir. Sewer Fund Net position increased $3,898,692 over the previous year. Part of the increase in net position is a result of infrastructure transfers from the BDO Property Management Fund for storm sewer and sanitary sewer improvements of $1,535,781. Results of operations were $2,753,105. 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 of $910,569. Additionally, the City received grants of $52,955. Refuse Fund Net position in the Refuse Fund increased overall by $722,673. 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 position decreased by $2,589,877. A major factor that limits an increase to net position in this fund is the requirement to report non-cash depreciation expense, which in the current year was $4,055,655. 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. Infrastructure transfers to the City are recorded as a non- operating expense. The City’s share of leasing revenue remained relatively flat compared to the prior year. Tax increment transferred to the City, in the BDO Property Management Fund from the RDA increased by $698,000, in line with increased value of property though development in the BDO. All RDA tax increment monies transferred to the BDO Property Management Fund are spent on infrastructure maintenance and expansion needs for the BDO. 24 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2013 Nonmajor Governmental Funds Ogden City’s nonmajor governmental funds show a combined increase in fund balance of $613,973. This increase is due to budgeted transfers to cover the cost of capital improvement costs in the capital projects fund of $3,497,148. The increase from these transfers in were offset by expenditures in the CIP fund over revenue of $1,316,110 and a transfer approved by the City Council from the Municipal Building Authority to the General Fund of $1,181,088. Nonmajor Enterprise Funds The combined change in net position of the nonmajor enterprise funds shows an increase of $1,775,896 from the previous year. The airport and golf courses experienced operating losses of $1,956,617 and $273,086, respectively. The City made transfers to the Airport and Golf Course Funds of $482,675 and $472,200, respectively to help fund the operations in these funds. The City also transferred $123,000 to fund the repair of El Monte’s golf cart paths. The Airport fund received substantial grants for the expansion and improvement of a specified taxiway of $3,374,790. Combined results of operations for the airport, golf courses, dinosaur park and recreation funds were negative $2,182,274. Depreciation expense accounts for $1,024,460 of the loss from operations for a net of $1,157,814. Additionally the Medical Services fund had an increase in fund balance of $547,535. 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 original budget increased $6,963,964 during the year. The most significant budget increase was an addition of $3,571,706 for various grants. Actual General Fund revenues were $340,575 or less than 1.0 percent below the original budget and $6,033,245 or 9.3 percent below the final budget. Actual expenditures were $2,733,579 or 4.65 percent below the original budget and $9,697,543 or 14.74 percent below the final budget. 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 Water Bond for $13,225,000 in September of 2013. The water bond will be used to replace the existing water treatment facility at the base of Pine View Reservoir in Ogden Canyon. The City also obtained a Storm Sewer bond for $4,490,000 in September of 2013. The storm sewer bond will be used for various storm sewer projects recommended by the storm sewer sustainability plan. 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. 25 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 26 ---PAGE BREAK--- Basic Financial Section 27 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 28 ---PAGE BREAK--- Governmental Business-type Activities Activities Total ASSETS Current assets Cash and investments $ 19,618,632 $ 38,894,610 $ 58,513,242 Receivables (net of allowance for uncollectibles): Accounts 3,915,367 7,773,730 11,689,097 Taxes 22,604,908 - 22,604,908 Special assesments 324,299 - 324,299 Prepaid items 18,666 418,540 437,206 Inventory, at cost 1,071,134 58,946 1,130,080 Internal balances 136,086 (136,086) - Total current assets 47,689,092 47,009,740 94,698,832 Noncurrent assets Restricted assets: Cash 375,745 5,188 380,933 Accounts receivable 88,425 - 88,425 Interest receivable 72,031 - 72,031 Grant loans and other notes 10,485,503 - 10,485,503 Investments 1,026,141 6,801,254 7,827,395 Total restricted assets 12,047,845 6,806,442 18,854,287 Capital assets: Land 19,661,522 36,867,635 56,529,157 Construction-in-progress 231,170 4,921,020 5,152,190 Infrastructure 101,183,148 - 101,183,148 Buildings and improvements 115,823,012 269,486,467 385,309,479 Machinery and equipment 28,058,478 2,247,886 30,306,364 Intangibles 339,446 717,658 1,057,104 Less: accumulated depreciation (83,506,447) (93,693,516) (177,199,963) Net capital assets 181,790,329 220,547,150 402,337,479 Deferred charges 1,981,556 1,559,600 3,541,156 Notes receivable - 574,836 574,836 Total noncurrent assets 195,819,731 229,488,028 425,307,759 Total assets 243,508,822 276,497,768 520,006,590 LIABILITIES Current liabilities Accounts payable 2,236,917 4,396,044 6,632,961 Accrued wages payable 538,297 149,137 687,434 Accrued compensated absences 920,220 260,288 1,180,508 Contracts payable 615,329 - 615,329 Claims payable 718,441 645,961 1,364,402 Other payables and liabilities 2,199,274 1,090,446 3,289,720 Line-of-credit 884,025 - 884,025 Unearned revenue 31,840,492 492,408 32,332,900 Accrued bond interest 163,770 58,722 222,492 Customer deposits payable - 396,539 396,539 Other noncurrent liabilities, due within one year 7,696,000 2,096,466 9,792,466 Total current liabilities 47,812,765 9,586,011 57,398,776 Noncurrent liabilities Accrued investment derivative losses 2,193,382 - 2,193,382 Due in more than one year 50,661,347 60,488,175 111,149,522 Total liabilities 100,667,494 70,074,186 170,741,680 NET POSITION Net investment in capital assets 125,648,296 165,392,832 291,041,128 Restricted - expendable: Grants and other programs 536,201 - 536,201 Grant loans 10,485,503 - 10,485,503 Debt service/replacement fund 616,072 2,041,003 2,657,075 Restricted - nonexpendable 410,069 - 410,069 Unrestricted 5,145,187 38,989,747 44,134,934 Total net position $ 142,841,328 $ 206,423,582 $ 349,264,910 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF NET POSITION June 30, 2013 29 ---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 20,278,677 $ 15,335,519 $ - $ - $ Public safety 25,562,249 2,919,022 1,631,515 - Transportation 5,578,078 295,025 - 2,644,664 Environmental protection 531,471 2,890,946 - - Leisure opportunities 5,970,011 401,455 15,367 1,242,607 Community development 9,216,870 2,068,228 3,248,667 730,860 Interest on long-term debt 1,754,652 - - - Total governmental activities 68,892,008 23,910,195 4,895,549 4,618,131 Business-type activities: Medical services 5,100,067 5,805,348 - - Airport 2,306,211 349,594 - 3,374,790 Utilities 26,616,342 32,526,185 - 52,955 Refuse 4,418,293 5,119,494 - - Recreation 1,498,458 1,267,229 4,937 - Property management 4,302,325 3,498,430 - - Total business-type activities 44,241,696 48,566,280 4,937 3,427,745 Total primary government 113,133,704 $ 72,476,475 $ 4,900,486 $ 8,045,876 $ 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 Special item (see footnote 18) Transfers Change in net position Net position - beginning - restated (See footnote 17) Net position - ending The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF ACTIVITIES Year Ended June 30, 2013 Program Revenues 30 ---PAGE BREAK--- Page 2 of 2 Governmental Business-type Activities Activities Total (4,943,158) $ - $ (4,943,158) $ (21,011,712) - (21,011,712) (2,638,389) - (2,638,389) 2,359,475 - 2,359,475 (4,310,582) - (4,310,582) (3,169,114) - (3,169,114) (1,754,652) - (1,754,652) (35,468,132) - (35,468,132) - 705,281 705,281 - 1,418,173 1,418,173 - 5,962,798 5,962,798 - 701,201 701,201 - (226,292) (226,292) - (803,895) (803,895) - 7,757,266 7,757,266 (35,468,132) 7,757,266 (27,710,866) 23,712,265 - 23,712,265 13,711,932 - 13,711,932 8,057,296 - 8,057,296 328,445 - 328,445 816,723 - 816,723 201,598 364,035 565,633 201,447 87,843 289,290 47,029,706 451,878 47,481,584 (2,800,394) - (2,800,394) 412,294 (412,294) - 44,641,606 39,584 44,681,190 9,173,473 7,796,850 16,970,323 133,667,855 198,626,732 332,294,587 142,841,328 $ 206,423,582 $ 349,264,910 $ Primary Government Net (Expense) Revenue and Changes in Net Position 31 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 32 ---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. 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 88. 33 ---PAGE BREAK--- Special Revenue Non-Major Total Redevelopment Governmental Governmental General Agency Funds Funds ASSETS Cash and investments $ 7,325,046 $ 3,966,510 $ 7,626,144 $ 18,917,700 Due from other funds 378,767 - - 378,767 Receivables (net of allowance for uncollectibles): Accounts 2,708,988 868,379 35,067 3,612,434 Taxes 11,456,453 11,148,455 - 22,604,908 Special assessments - - 324,299 324,299 Loans to other funds, net of allowance 3,330,482 1,626,294 - 4,956,776 Inventory, at cost 48,633 - 77,925 126,558 Restricted assets: Cash 373,793 1,952 - 375,745 Interest receivable - 55,644 16,387 72,031 Prepaid items 18,666 - - 18,666 Investments / grant loans 10,485,503 199,334 826,807 11,511,644 Total assets $ 36,126,331 $ 17,866,568 $ 8,906,629 $ 62,899,528 LIABILITIES Accounts payable $ 1,155,353 $ 332,417 $ 151,093 $ 1,638,863 Accrued wages payable 499,863 - - 499,863 Other payables and liabilities 2,025,417 - 5,595 2,031,012 Loans from other funds - 4,848,485 - 4,848,485 Short-term notes payable 884,025 - - 884,025 Unearned revenue 20,193,224 11,954,098 368,170 32,515,492 Total liabilities 24,757,882 17,135,000 524,858 42,417,740 FUND BALANCE Nonspendable: Permanent fund principal - - 405,465 405,465 Inventory 48,633 - 77,925 126,558 Prepaid expenses 19,920 - - 19,920 Long-term loans to other funds 2,742,057 - 102,017 2,844,074 Spendable: Restricted: Debt service reserve 123,793 256,930 3,951 384,674 Unspent bond proceeds - - 416,784 416,784 Revolving loan program capital 250,000 - - 250,000 Assigned: Accrued compensated absences 876,005 - - 876,005 Downtown business promotion 54,740 - 232,550 287,290 Major and miscellaneous grant activity 2,163,559 - - 2,163,559 City Council 31,000 - - 31,000 Management services 22,320 - - 22,320 Legal 29,267 - - 29,267 Non-departmental 92,750 - 5,500 98,250 Community and economic development 18,670 - - 18,670 Police 116,226 - - 116,226 Public services 524,795 - 388,945 913,740 Debt service - - 261,536 261,536 Capital projects - - 5,371,911 5,371,911 Special revenue - 474,638 1,115,187 1,589,825 Unassigned 4,254,714 - - 4,254,714 Total fund balance 11,368,449 731,568 8,381,771 20,481,788 Total liabilities and fund balances $ 36,126,331 $ 17,866,568 $ 8,906,629 $ 62,899,528 The notes to the financial statements are an integral part of this statement. GOVERNMENTAL FUNDS OGDEN CITY CORPORATION BALANCE SHEET June 30, 2013 34 ---PAGE BREAK--- OGDEN CITY CORPORATION Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position June 30, 2013 Total Fund Balances - Governmental Funds $ 20,481,788 Amounts reported for governmental activities in the Statement of Net Position 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 $ 19,652,522 Infrastructure 101,183,148 Other capital assets 117,032,319 Accumulated depreciation (64,994,722) 172,873,267 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. 1,981,556 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. (2,357,152) 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 Position. 5,513,393 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. 675,000 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 7) (60,611,338) Compensated absences, governmental activities (footnote 7) 3,067,407 Capital leases, internal service funds 2,735,530 Claims payable, internal service funds 1,401,897 (53,406,504) Compensated absences, governmental activities (footnote 7) (3,067,407) Compensated absences, internal service funds 147,386 (2,920,021) (56,326,525) Net Position of Governmental Activities $ 142,841,328 The notes to the financial statements are an integral part of this statement. 35 ---PAGE BREAK--- Special Revenue Non-Major Total Redevelopment Governmental Governmental General Agency Funds Funds REVENUES: Taxes and special assessments $ 37,445,113 $ 12,874,173 $ 258,488 $ 50,577,774 Licenses and permits 1,789,847 - - 1,789,847 Intergovernmental 7,712,677 - 1,202,607 8,915,284 Charges for services 6,577,440 695,740 548,316 7,821,496 Fines and forfeitures 2,193,546 - - 2,193,546 Miscellaneous 82,428 17,714 40,000 140,142 Outside donations 1,080,848 - - 1,080,848 Interest 8,319 68,246 54,214 130,779 Sale of property 2,507 111,401 - 113,908 Total revenues 56,892,725 13,767,274 2,103,625 72,763,624 EXPENDITURES: Mayor 518,787 - - 518,787 City council 850,486 - - 850,486 Management services 4,163,454 - 10,478 4,173,932 Corporate counsel 1,078,100 - - 1,078,100 Non-departmental 2,909,919 - 801,648 3,711,567 Police 17,446,800 - - 17,446,800 Fire 6,677,724 - - 6,677,724 Public services 9,919,398 - 1,856,452 11,775,850 Community and economic development 8,571,079 3,224,918 214,334 12,010,331 Debt service: Principal 2,236,000 5,521,674 310,000 8,067,674 Interest and fiscal charges 324,274 2,212,046 231,389 2,767,709 Total expenditures 54,696,021 10,958,638 3,424,301 69,078,960 Excess (deficiency) of revenues over expenditures 2,196,704 2,808,636 (1,320,676) 3,684,664 OTHER FINANCING SOURCES (USES): Special item - (2,800,394) - (2,800,394) Transfers in 1,578,275 4,428,654 3,541,248 9,548,177 Transfers out (1,381,975) (7,276,654) (1,606,599) (10,265,228) Total other financing sources (uses) 196,300 (5,648,394) 1,934,649 (3,517,445) Net change in fund balances 2,393,004 (2,839,758) 613,973 167,219 Fund balance at beginning of year, restated 8,975,445 3,571,326 7,767,798 20,314,569 Fund balance at end of year $ 11,368,449 $ 731,568 $ 8,381,771 $ 20,481,788 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, 2013 36 ---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, 2013 Net Change in Fund Balances-Total Governmental Funds 167,219 $ 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 2,629,601 $ Depreciation expense (4,895,627) (2,266,027) 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. 30,251 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 8,067,674 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. (530,000) 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. 675,000 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 1,164,598 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 562,021 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 107,403 Change in loss on investment derivatives (GASB 53) 1,425,136 Gain (loss) on disposal of general capital assets (102,993) Amortization of bond premiums, discounts and costs (126,808) 1,302,738 Change in Net Position of Governmental Activities 9,173,473 $ The notes to the financial statements are an integral part of this statement. 37 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 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. 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 98. 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--- OGDEN CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2013 Page 1 of 4 Water Sewer Refuse ASSETS Current assets Cash $ 10,671,436 $ 16,817,946 $ 117,631 Accounts receivable (net) 2,455,364 1,614,480 572,716 Inventory, at cost - - - Prepaid expenses 418,540 - - Loans to other funds - - 2,042,191 Total current assets 13,545,340 18,432,426 2,732,538 Noncurrent assets Deferred charge 1,299,147 260,453 - Notes receivable - - 574,836 Employee PC loans receivable - - - Subtotal 1,299,147 260,453 574,836 Restricted assets: Cash 5,185 - 3 Investments 6,408,022 75,612 317,620 Subtotal 6,413,207 75,612 317,623 Capital assets: Land 503,044 1,294,330 502,250 Buildings 2,139,395 - 1,110,983 Improvements 94,602,432 41,795,993 - Construction-in-process 262,206 - - Office furniture 319,515 - - Equipment 864,789 84,295 - Vehicles - - - Intangibles 717,658 - - Total capital assets 99,409,039 43,174,618 1,613,233 Less accumulated depreciation / amortization (22,590,941) (9,331,361) (563,458) Net capital assets 76,818,098 33,843,257 1,049,775 Total noncurrent assets 84,530,452 34,179,322 1,942,234 Total assets $ 98,075,792 $ 52,611,748 $ 4,674,772 The notes to the financial statements are an integral part of this statement. 40 ---PAGE BREAK--- Page 2 of 4 BDO Non-Major Property Enterprise Total Management Funds Total Internal Service $ 9,040,121 $ 2,247,476 $ 38,894,610 $ 700,932 850,984 2,280,186 7,773,730 302,933 - 58,946 58,946 944,576 - - 418,540 - - - 2,042,191 - 9,891,105 4,586,608 49,188,017 1,948,441 - - 1,559,600 - - - 574,836 - - - - 88,425 - - 2,134,436 88,425 - - 5,188 - - - 6,801,254 - - - 6,806,442 - 32,591,750 1,976,261 36,867,635 9,000 101,382,023 1,599,144 106,231,545 1,603,918 5,461 26,851,036 163,254,922 293,877 - 4,658,814 4,921,020 - - 12,841 332,356 13,586 - 966,446 1,915,530 11,019,392 - - - 14,149,568 - - 717,658 339,446 133,979,234 36,064,542 314,240,666 27,428,787 (44,664,481) (16,543,275) (93,693,516) (18,511,725) 89,314,753 19,521,267 220,547,150 8,917,062 89,314,753 19,521,267 229,488,028 9,005,487 $ 99,205,858 $ 24,107,875 $ 278,676,045 $ 10,953,928 41 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2013 Page 3 of 4 Water Sewer Refuse LIABILITIES AND NET POSITION LIABILITIES: Current liabilities Due to other funds $ - $ - $ - Accounts payable 3,205,453 95,090 93,434 Contracts payable - - - Retainage payable 373,009 - - Claims payable - - - Deposits - 13,864 - Accrued wages payable 50,099 16,080 11,913 Accrued compensated absences 97,919 26,565 25,063 Other accrued payables 630,319 460,127 - Customer deposits payable 396,539 - - Revenue bonds/note payable 1,435,665 400,801 260,000 Accrued bond interest 49,816 7,768 1,138 Total current liabilities 6,238,819 1,020,295 391,548 Noncurrent liabilities Revenue bonds/note payable 50,204,142 8,790,152 870,000 Claims payable - - - Contracts payable - - - Compensated absences 228,477 61,985 58,479 Loans from other funds - - - Total noncurrent liabilities 50,432,619 8,852,137 928,479 Total liabilities 56,671,438 9,872,432 1,320,027 NET POSITION: Net investment in capital assets 31,591,498 24,727,916 237,398 Restricted for debt service/replacement fund 1,723,380 - 317,623 Unrestricted 8,089,476 18,011,400 2,799,724 Total net position $ 41,404,354 $ 42,739,316 $ 3,354,745 The notes to the financial statements are an integral part of this statement. 42 ---PAGE BREAK--- Page 4 of 4 BDO Non-Major Property Enterprise Total Management Funds Total Internal Service $ - $ 27,795 $ 27,795 $ 350,972 480,794 521,273 4,396,044 598,054 - - - 615,329 - 272,952 645,961 - - - - 718,441 - 478,544 492,408 - 912 70,133 149,137 38,434 - 110,741 260,288 44,215 - - 1,090,446 168,262 - - 396,539 - - - 2,096,466 - - - 58,722 - 481,706 1,481,438 9,613,806 2,533,707 - - 59,864,294 - - - - 683,456 - - - 2,120,201 - 274,940 623,881 103,171 - 2,150,482 2,150,482 - - 2,425,422 62,638,657 2,906,828 481,706 3,906,860 72,252,463 5,440,535 89,314,753 19,521,267 165,392,832 6,181,532 - - 2,041,003 100,953 9,409,399 679,748 38,989,747 (769,092) $ 98,724,152 $ 20,201,015 $ 206,423,582 $ 5,513,393 43 ---PAGE BREAK--- Page 1 of 2 Water Sewer Refuse OPERATING REVENUES: Charges for services $ 16,462,661 $ 14,395,445 $ 5,118,143 Special district fees 837,279 - - Accounting charges 780,995 - - Intergovernmental - - - Miscellaneous income 4,682 45,123 1,351 Total revenue 18,085,617 14,440,568 5,119,494 OPERATING EXPENSES: Cost of materials and parts - - - Personal services: Salaries and wages 2,297,496 754,732 577,646 Benefits 1,193,551 382,384 256,548 Supplies: Office supplies 198,631 924 1,248 Operating supplies 338,073 23,398 19,806 Repair and maintenance supplies 56,634 16,334 33,206 Charges for services: Sewer district charges - 4,915,725 - Disposal charges - - 826,746 Public utility services 546,968 5,156 3,127 Travel and education 9,587 5,130 2,645 Contracted agreements 925,910 1,286,955 103,593 Other operating expenses: Rental charges 104,586 61,294 63,157 Fiscal charges 2,709,675 2,503,800 1,053,900 Depreciation / amortization 1,789,837 762,988 42,117 Data processing and computer equipment 427,494 60,950 28,000 Maintenance and repair 347,585 562,492 96,535 Vehicle operating expenses 370,430 344,043 1,153,482 Water purchase 951,883 - - Claims payments - - - Miscellaneous 51,201 1,158 113,594 Total operating expenses 12,319,541 11,687,463 4,375,350 Operating income (loss) 5,766,076 2,753,105 744,144 NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income 96,264 109,284 21,472 Grants and donations - 52,955 - Gain on sale of assets 15,197 - - Expenses: Interest expense (2,084,252) (525,086) (42,943) Total non-operating revenues (expenses) (1,972,791) (362,847) (21,471) Capital contributions 271,333 1,535,781 - Income before transfers 4,064,618 3,926,039 722,673 Transfers in - - - Transfers out (75,152) (27,347) - Change in net assets 3,989,466 3,898,692 722,673 Net position, beginning 37,414,888 38,840,624 2,632,072 Net position, ending $ 41,404,354 $ 42,739,316 $ 3,354,745 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS Year Ended June 30, 2013 44 ---PAGE BREAK--- Page 2 of 2 BDO Non-Major Internal Property Enterprise Service Management Funds Total Funds $ 3,498,430 $ 5,709,441 $ 45,184,120 $ 14,328,209 - - 837,279 - - - 780,995 - - 1,690,673 1,690,673 - - 26,994 78,150 326,577 3,498,430 7,427,108 48,571,217 14,654,786 - 136,539 136,539 3,039,184 - 40,692 3,128,077 6,798,643 1,904,616 11,260 1,386,038 3,229,781 844,271 - 10,036 210,839 55,532 - 220,801 602,078 125,291 - 9,660 115,834 3,638 - - 4,915,725 - - - 826,746 - - 224,198 779,449 1,659,547 - 26,084 43,446 22,931 194,718 578,913 3,090,089 2,981,593 - 18,243 247,280 75,256 - 303,400 6,570,775 - 4,055,655 1,041,868 7,692,465 2,348,203 - 101,075 617,519 386,001 - 870,452 1,877,064 154,519 - 654,651 2,522,606 199,647 - - 951,883 - - - - 270,867 - 194,066 360,019 26,646 4,302,325 8,904,101 41,588,780 14,097,742 (803,895) (1,476,993) 6,982,437 557,044 43,742 93,273 364,035 (3,290) - 3,374,790 3,427,745 3,986 - 72,646 87,843 190,532 - (635) (2,652,916) (80,999) 43,742 3,540,074 1,226,707 110,229 - - 1,807,114 - (760,153) 2,063,081 10,016,258 667,273 3,298,000 1,177,875 4,475,875 497,325 (5,127,724) (1,465,060) (6,695,283) - (2,589,877) 1,775,896 7,796,850 1,164,598 101,314,029 18,425,119 198,626,732 4,348,795 $ 98,724,152 $ 20,201,015 $ 206,423,582 $ 5,513,393 45 ---PAGE BREAK--- Year Ended June 30, 2013 Page 1 of 4 Water Sewer Refuse CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 18,050,914 $ 14,683,041 $ 5,100,869 Cash received (paid) from (to) other funds - - (386,838) Cash payments to suppliers for goods and services (5,061,269) (10,210,234) (3,506,316) Cash payments to employees for services (3,486,805) (1,138,561) (827,185) Net cash from operating activities 9,502,840 3,334,246 380,530 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Payments paid on interfund loans - - - Grants/Donations - 52,955 - Transfers in - - - Transfers out (75,152) (27,347) - PC loans paid - - - Interest expense on cash deficit - - (528) Net cash from noncapital financing activities (75,152) 25,608 (528) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (11,701,381) (709,461) - Proceeds from capital debt 4,589,000 131,000 - Capital grants and contributions - - - Principal paid on revenue bonds (1,026,313) (395,136) (250,000) Interest paid on revenue bonds (1,902,990) (513,639) (44,577) Change in deferred charges (100,348) 2,881 - Change in interfund loans - - - Payments on contracts payable - - - Interest expense on loans - - - Proceeds from sale of assets 15,197 - - Net cash from capital and related financing activities (10,126,835) (1,484,355) (294,577) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 96,264 109,284 - Change in restricted investments 3,745,828 733,158 - Net cash from investing activities 3,842,092 842,442 - Net increase (decrease) in cash equivalents 3,142,946 2,717,941 85,425 Cash/equivalents at beginning of year 7,533,675 14,100,005 32,209 Cash/equivalents at end of year $ 10,676,621 $ 16,817,946 $ 117,634 Cash/equivalents, end of year (unrestricted) 10,671,436 16,817,946 117,631 Cash/equivalents, end of year (restricted) 5,185 - 3 Total cash/equivalents, end of year $ 10,676,621 $ 16,817,946 $ 117,634 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 Property Enterprise Service Management Funds Totals Funds $ 3,502,975 $ 7,652,760 $ 48,990,559 $ 14,740,828 - (135,267) (522,105) 245,071 (224,766) (3,907,446) (22,910,031) (10,164,590) (52,036) (4,455,585) (9,960,172) (2,751,220) 3,226,173 (845,538) 15,598,251 2,070,089 - (264,948) (264,948) - - - - 3,986 3,298,000 1,177,875 4,475,875 497,325 (2,758,590) (1,465,060) (4,326,149) - - - - (4,892) - - (528) (5,784) 539,410 (552,133) (115,750) 490,635 (2,369,134) (3,547,555) (18,327,532) (2,259,534) - - 4,720,000 - - 4,276,137 4,276,137 - - - (1,671,449) - - - (2,461,205) - - - (97,467) - - (635) (635) - - 56,606 56,606 (654,644) - - - (80,999) - 72,646 87,843 190,532 (2,369,134) 857,199 (13,417,702) (2,804,645) 43,742 93,273 342,563 2,494 - - 4,478,986 - 43,742 93,273 4,821,549 2,494 1,440,191 (447,199) 6,939,303 (241,427) 7,599,930 2,694,676 31,960,495 942,360 $ 9,040,121 $ 2,247,476 $ 38,899,798 $ 700,932 9,040,121 2,247,476 38,894,610 700,932 - - 5,188 - $ 9,040,121 $ 2,247,476 $ 38,899,798 $ 700,932 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) $ 5,766,076 $ 2,753,105 $ 744,144 Reconciliation adjustments: Depreciation 1,789,837 762,988 42,117 Changes in assets and liabilities: Change in accounts receivable (34,703) 242,473 (18,625) Change in inventory - - - Change in prepaid expenses (8,701) - - Change in due to other funds - - (386,838) Change in accounts payable 1,991,087 (400,437) (7,277) Change in deposits payable (11,919) - - Change in unearned revenue - 4,346 - Change in other accrued liabilities 6,921 (26,784) - Change in wages payable and compensated absences 4,242 (1,445) 7,009 Total adjustments 3,736,764 581,141 (363,614) Net cash provided by (used in) operating activities $ 9,502,840 $ 3,334,246 $ 380,530 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: The Water and Sewer funds recorded capital contributions from Business Depot Ogden in the amount of $271,333 and $1,535,781, respectively. The Water and Sewer funds recorded amortization expense of bond issuance costs in the amount of $50,876 and $54,347, respectively. The Water fund recorded a deferred charge of bond issuance costs of $161,746. The Refuse fund recorded an accrual of interest revenue from a note receivable in the amount of $22,000. The notes to the financial statements are an integral part of this statement. 48 ---PAGE BREAK--- Page 4 of 4 BDO Non-Major Internal Property Enterprise Service Management Funds Totals Funds $ (803,895) $ (1,476,993) $ 6,982,437 $ 557,044 4,055,655 1,041,868 7,692,465 2,348,203 4,545 225,652 419,342 86,042 - 2,146 2,146 24,531 - - (8,701) - - (135,267) (522,105) 245,071 (30,048) (548,980) 1,004,345 (578,391) - - (11,919) - - (12,494) (8,148) - - - (19,863) (610,078) (84) 58,530 68,252 (2,333) 4,030,068 631,455 8,615,814 1,513,045 $ 3,226,173 $ (845,538) $ 15,598,251 $ 2,070,089 49 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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, 2013 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 Position presents the City’s assets and liabilities, with the difference reported as net position. Net position is 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.  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.  Sewer Utility Fund - This enterprise fund accounts for activities necessary to provide sewer services to residents.  BDO Property Management Fund – This enterprise fund is used to account for operations of the Business Development Ogden project. 51 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013  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, Medical Services, 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. 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 position 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 notices to property owners. Then a taxpayer may petition the County Board of Equalization between August 1st and August 15th for a revision 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 date of November 30th, and delinquent taxes are subject to penalty. Unless delinquent taxes and penalties are paid before January 15th, a lien is attached to the property, and the amount of taxes and penalties bear interest from January 1st until paid. After five years 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, Accounting and Financial Reporting for Nonexchange Transactions, defines a nonexchange transaction as one in which, “a government 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, 2013. 52 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 Revenue Availability Under the modified accrual basis of accounting, 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 similar 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 collected within 60 days after year-end. Expenditure Recognition In governmental funds, expenditures are generally recorded when the related liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, 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. When an expenditure is incurred for purposes for which both restricted and unrestricted resources are available, the City generally uses restricted resources first, then unrestricted resources. Program Revenues Amounts reported as program revenues include 1) charges to 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 rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and internal service funds are the result of charges to customers for sales and services. Operating 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 Position The following are the City’s significant policies regarding recognition and reporting of certain assets, liabilities and fund balance/net position. 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 Management Act (UMMA) approved financial institutions. 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 insured amounts. The City Treasurer invests unrestricted cash with the Utah Public Treasurer’s Investment Fund and with financial institutions on the approved list. Investments in the pooled cash fund consist 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 result 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 original maturity date of three months less are defined as cash equivalents 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. 53 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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 November 10, 2005 in 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 September 30, 2009, the Series 2005B, 2005C-1 and 2005C-2 bonds were refunded through 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 Morgan Chase Bank, NA. The Series 2009A Bonds are paid from lease revenues derived 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, 2013 are $7,608,791 and $17,718,352 for the 2009A and 2009B-1 and 2009B-2, respectively. Fair Value: As of June 30, 2013 the following mid-market values based upon the market close rate data provided by Bloomberg Financial were: $8.9M - 100% Libor Swap ($594,915) and $22.4M - 100% Libor Swap ($1,598,467). A requirement of the implementation process was to test for hedge effectiveness of the swap agreements. The swap agreements held by the City were determined to be ineffective hedges. Given 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 noncurrent liability on the Statement of Net Position in the amount of ($2,193,382). Interest Rate risk: The Series 2005 Bonds were issued November 29, 2005, which is the same day the Swap became effective and remains in effect with the Series 2009 bonds. The Series 2009A bonds amortize over a 22 year period ending June 1, 2031 and the Series 2009B bonds amortize over an 18 year period ending December 1, 2027. The swap terminates on December 1, 2015. Under terms of the swap agreement, the RDA pays the counterparty (Wells Fargo Bank, NA) a fixed rate of 4.95% on the Series 2009A Bonds and 5.507% on the 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 same dates equal to 1 month Libor plus .20% applicable for the same calculation period. At June 30, 2013, the swaps had a negative fair value of $2,193,382. 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 t he 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 operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as due from other funds, or due to other funds on the balance sheet. Short-term interfund loans are classified as interfund receivables and payables. 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. Accounts Receivable The City records water, sewer, refuse, and medical services unbilled services as an account receivable, net of allowance for doubtful accounts, through June 30, 2013. This amount has likewise been recorded revenue in the appropriate fund. The City calculates an allowance for doubtful accounts on receivables base on the average of bad debt expense to revenue over 5 years. 54 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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. Inventories in the internal services funds primarily consist of supplies for the fleet, facilities and electronics operations. Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2013 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 83 and 84 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 Position. 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 Position. 55 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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 financial statements, bond premiums, discounts, and issuance costs are recognized as expenditures in the current period. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The face amount of debt issued is reported as other financing sources. Net Position/Fund Balances The difference between assets and liabilities is reported as net position on the government-wide and proprietary fund statements, and fund balance on the governmental fund statements. Fund financial statements GASB Statement No. 54 on Fund Balance Reporting and Governmental Fund Type Definitions applies only to governmental fund financial statements and not to government-wide statements or proprietary fund statements. Proprietary fund equity is classified the same as in the government-wide statements. The governmental 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 restrictions set by creditors, grantors, or contributors. Committed fund balance – Fund balances are reported as committed when the City Council formally designates the use of resources by ordinance for a specific purpose and 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. Normally funds are assigned by the appropriation process 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. Commitments for contracts, goods or services, made before the end of the fiscal year, are encumbered and show as an assignment of fund balances in the governmental fund types. Unencumbered appropriations lapse at year end, except for capital projects that extend for the term of the project. Subsequent years’ appropriations provide the authority to complete encumbered transactions. The general fund had $889,768 in assigned fund balance at June 30, 2013 for encumbered transactions. Unassigned fund balance – Fund balances 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 which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, 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 funds, as needed, unless the City Council has provided otherwise in its commitment or assignment actions. Government-wide Statements Equity is classified as net position and displayed in three components: Net investment in capital assets – Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. 56 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 Restricted net position – Consists of net position 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 position – Net position that does not meet the definition of “restricted” or “net investment in capital assets”. It is City policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is 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 Position, 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. F. New Pronouncements The Government Accounting Standards Board issued Statement No. 63, “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.” The implementation of this statement has resulted in changes to the financial statement previously referred to as the Statement of Net Assets, now the Statement of Net Position. For the fiscal year ending June 30, 2014, the City will adopt Government Accounting Standards Board Statement No. 65, “Items Previously Reported as Assets and Liabilities.” That statement will require that the City consider which asset and liability balances may need to be presented as deferred outflows and deferred inflows on the Statement of Net Position. In addition, this new guidance will require that the City re-evaluate the accounting and reporting for bond issuance costs and may require adjustments relating to those costs. 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, 2013 were $61,586,666 of which $60,028,525 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 $9,046,547 of the City’s 57 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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. Additionally, the City had $4,589,000 in unspent water revenue bond proceeds, held by the State of Utah at June 30, 2013. 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. 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, 2013: Cash deposit and Fair Quality Investment Type Value Maturity Ratings Cash on deposit $ 4,821,590 n/a not rated PTIF Investments 32,678,626 n/a not rated Investments, held by State of Utah 4,589,000 n/a not rated Certicates of deposit 9,299,005 n/a not rated Corporate notes 9,046,547 270 days* AA Money Market Funds 6,286,802 n/a not rated Total $ 66,721,570 58 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 D. Credit Risk, Continued Cash on deposit is equivalent to cash deposited with an insured financial institution. Cash and investments $ 58,513,242 Restricted cash 380,933 Restricted investments 7,827,395 Total $ 66,721,570 * 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, 2013. These investments are reported within the General Fund and Gomer A. Nicholas Permanent Fund. 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, 2013 were as follows: Payable Fund Amount General Management Information Services $ 236,837 General Fleet, Facilities, Electronics, and Stores 114,135 General Dinosaur park 27,795 Total $ 378,767 Receivable Fund The terms of repayment of the cash overdraft amounts are discussed in footnote 16 – Contingencies. B. Loans To/From Other Funds: Funds which have received loans from other funds as of June 30, 2013 were: Payable Fund (Due From) Amount General Redevelopment Agency 6,440,160 $ Allowance for uncollectible advances (see note 3) (5,760,160) 680,000 General Golf Course 534,519 General Airport 1,615,963 Business Depot Ogden Redevelopment Agency 1,626,294 Refuse Redevelopment Agency 2,042,191 General Redevelopment Agency 500,000 Total $ 6,998,967 Receivable Fund (Due To 59 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 B. Loans To/From Other Funds, Continued 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. 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. General Fund to the Redevelopment Agency: This is a no interest, unsecured note to provide the Redevelopment Agency funds for land purchases. The terms of the note indicate that the pricipal is to be paid in full on or before May 27, 2018. 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 1,671,606 General RDA - Washington Blvd. District 3,016,953 6,440,160 Allowance for uncollectible advances (5,760,160) $ 680,000 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 $88,425 at June 30, 2013 for these loans to employees. 60 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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 current balance due to the City is from that assessment. $ 128,040 Delinquent………………………………… 40,287 155,972 $ 324,299 E. Allowance for Doubtful Accounts Receivable: The City calculates an allowance for doubtful accounts on receivables base on the average bad debt expense as a percent of revenue, averaged over 5 years. Account receivable and associated allowances at June 30, 2013 are detailed as follows: Receivable Less Allowance Net Receivable Water $ 2,488,728 $ (33,363) $ 2,455,364 Sewer 1,617,464 (2,983) 1,614,480 Refuse 575,543 (3,025) 572,518 Medical Services 2,365,389 (760,636) 1,604,753 $ 7,047,123 $ (800,008) $ 6,247,115 Accounts Receivable Fund 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 $ - $ - $ - $ - $ 1,054,875 $ 327,100 $ 1,381,975 Redevelopment Agency - 3,978,654 3,298,000 - - - 7,276,654 BDO Property Management 732,020 450,000 - 497,325 1,807,114 1,641,265 5,127,724 Enterprise Funds - - - - - 1,567,559 1,567,559 Nonmajor Funds 1,578,275 - - - 123,000 5,324 1,706,599 Total Transfers In $ 2,310,295 $ 4,428,654 $ 3,298,000 $ 497,325 $ 2,984,989 $ 3,541,248 $ 17,060,511 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. 61 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2013 was as follows: Beginning Ending Balance (Restated) Additions Deletions Balance Governmental Activities: Capital assets, being depreciated: Buildings and Improvements $ 114,533,238 $ 1,289,774 $ - $ 115,823,012 Equipment 29,543,268 2,284,711 (3,769,501) 28,058,478 Intangibles 230,926 108,520 - 339,446 Total 144,307,432 3,683,005 (3,769,501) 144,220,936 Less Accumulated Depreciation for: Building and Improvements (45,842,378) (4,660,818) - (50,503,196) Equipment (34,144,450) (2,536,827) 3,762,343 (32,918,934) Intangibles (38,132) (46,185) - (84,317) Total (80,024,960) (7,243,830) 3,762,343 (83,506,447) Capital assets being depreciated, net 64,282,472 (3,560,826) (7,158) 60,714,489 Capital assets , not being depreciated: Land 19,061,187 600,335 - 19,661,522 Construction in Progress 2,690,540 214,439 (2,673,809) 231,170 Infrastructure 98,605,662 2,577,486 - 101,183,148 Governmental Activity Capital Assets, Net $ 184,639,861 $ (168,566) $ (2,680,967) $ 181,790,329 Capital Assets Beginning Ending Balance Additions Deletions Balance Business-type Activities: Capital assets, being depreciated: Building and Improvements $ 254,712,222 $ 14,774,245 $ - $ 269,486,467 Equipment 1,376,584 871,302 - 2,247,886 Total 256,088,806 15,645,547 - 271,734,353 Less Accumulated Depreciation for: Buildings and Improvements (85,404,623) - (7,470,223) (92,874,846) Equipment (596,428) - (222,242) (818,670) Total (86,001,051) - (7,692,465) (93,693,516) Capital assets, being depreciated, net 170,087,755 15,645,547 (7,692,465) 178,040,837 Capital assets, not being depreciated Land 36,830,411 37,224 36,867,635 Construction-in-process 2,799,995 2,200,238 (79,213) 4,921,020 Intangibles 717,658 - - 717,658 Business-type Activities Capital Assets, Net $ 210,435,819 $ 17,883,009 $ (7,771,678) $ 220,547,150 Capital Assets 62 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 5. CAPITAL ASSETS, CONTINUED Depreciation expense of governmental activities was charged to functions as follows: General Administration………………………………… $ 1,312,441 Public 644,504 Transportation……………………………………………….. 748,747 Environmental Protection…………………………… 15,280 Leisure Opportunities……………………………………. 543,436 Community Development……………………………. 1,631,219 Depreciation on capital assets of the City's internal service funds is charged to the various functions based on their usage of assets 2,348,203 $ 7,243,830 The City has active construction projects as of June 30, 2013. At year-end the City’s commitments with contractors are as follows: Expended Remaining Project thru 6/30/13 Commitment Water system projects 6,741,755 $ 5,474,852 $ Sewer system projects 519,219 85,424 BDO infrastructure projects 2,146,831 1,595,518 Airport 4,206,614 400,918 IT system development projects 64,856 15,144 Totals 13,679,275 $ 7,571,856 $ NOTE 6. 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 2014 $ 735,643 $ - $ 735,643 2015 735,643 - 735,643 2016 735,643 - 735,643 2017 735,643 - 735,643 2018 - - - Thereafter - - - Total 2,942,572 - 2,942,572 Less amounts representing interest (207,042) - (207,042) Present value of future minumum lease payments $ 2,735,530 $ - $ 2,735,530 Equipment $ 5,457,756 Less accumulated depreciation (3,595,695) Net book value $ 1,862,061 63 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 7. LONG-TERM LIABILITIES A. Changes in Long-term Liabilities Changes in long-term liabilities for the year ended June 30, 2013 were as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General Obligation Bonds $ 9,475,000 $ - $ 1,946,000 $ 7,529,000 $ 2,000,000 Lease Revenue Bonds 4,752,000 - 310,000 4,442,000 321,000 Tax Increment Revenue Bonds 45,220,000 - 5,110,000 40,110,000 5,275,000 Section 108 Notes 1,890,000 - 390,000 1,500,000 100,000 Capital leases 3,390,174 - 654,644 2,735,530 615,329 Compensated absences 2,963,060 104,347 - 3,067,407 920,220 Claims payable 2,037,309 - 635,412 1,401,897 718,441 Unamortized bond premium 276,505 - 69,126 207,379 - Unamortized bond discounts (40,365) - (3,055) (37,310) - Total Governmental Long-term Liabilities $ 69,963,683 $ 104,347 $ 9,112,127 $ 60,955,903 $ 9,949,990 Long-term Liabilities Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-type Activities: Revenue Bonds and Notes $ 53,847,000 $ 11,382,000 $ 3,585,000 $ 61,644,000 $ 2,083,000 Unamortized discounts (34,894) - (15,008) (19,886) - Unamortized premium 350,112 - 13,466 336,646 - Compensated Absences 860,068 24,101 - 884,169 260,288 Total Business-type Long-term Liabilities $ 55,022,286 $ 11,406,101 $ 3,583,458 $ 62,844,929 $ 2,343,288 Long-term Liabilities 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 $2,043,000 in storm sewer revenue refunding bonds for a current refunding of 2008 storm sewer 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 $39,402. 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 $201,465 and a reduction of $226,724 in future debt service payments. 64 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 B. General Obligation Bonds General Obligation Bonds payable at June 30, 2013 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2013 2009 Refunding Bonds 04/21/09 12/15/15 2.50% to 5.00% $ 8,125,000 $ 5,975,000 2011 Refunding Bonds 12/05/11 03/01/26 2.88% 1,737,000 1,554,000 $ 7,529,000 General Obligation Bonds Payable Total General Obligation Bonds Outstanding Year Principal Interest Principal Interest Principal Interest 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 - - 113,000 31,574 113,000 31,574 2019-2023 - - 610,000 107,011 610,000 107,011 2024-2026 - - 411,000 19,958 411,000 19,958 Total $ 5,975,000 $ 370,050 $ 1,554,000 $ 315,877 $ 7,529,000 $ 685,927 General Obligation Bonds-Debt Service Requirements to Maturity Total 2009 Refunding 2011 Refunding C. Lease Revenue Bonds Lease Revenue Bonds Payable at June 30, 2013 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2013 Series 2006 refunding 04/04/06 06/15/21 4.35% $ 2,865,000 $ 2,517,000 Series 2007 Stadium 12/11/07 01/15/28 5.08% 3,000,000 1,925,000 $ 4,442,000 Lease Revenue Bonds Payable Total Lease Revenue Bonds Payable Year Principal Interest Principal Interest Principal Interest 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 245,000 48,873 141,000 98,831 386,000 147,704 2019-2023 800,000 67,746 822,000 375,919 1,622,000 443,665 2024-2028 - - 1,053,000 139,064 1,053,000 139,064 Total $ 1,925,000 $ 412,111 $ 2,517,000 $ 1,075,966 $ 4,442,000 $ 1,488,077 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, 2013 D. Tax Increment Revenue Bonds Tax Increment Revenue Bonds Payable at June 30, 2013 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2013 Wall Ave Tax Increment 08/29/02 02/01/19 variable $ 675,000 $ 400,000 25th Street (Crown Plaza) 09/18/01 02/01/18 variable 1,610,000 735,000 2005 Series A - Recreation Center 11/01/05 04/01/25 variable 7,280,000 4,395,000 2009 Series A - Rec Center 09/30/09 06/01/31 variable / swap 8,780,000 7,625,000 2009 Series B-1 and B-2 - Rec Center 09/30/09 12/01/27 variable / swap 21,565,000 18,155,000 2006 Series A - West 12th (tax-exempt) 12/20/06 04/01/17 4.43% 3,500,000 2,585,000 2007 Fairmount District 06/05/07 03/01/18 6.75% 3,300,000 1,310,000 2008 Series A - West 12th 07/08/08 04/01/17 4.75% to 5.25% 3,000,000 1,645,000 2011 Series CBD 02/15/11 02/15/26 5.10% 1,600,000 1,450,000 2011 Series BDO 08/24/11 12/30/13 2.46% 5,375,000 1,810,000 $ 40,110,000 Tax Increment Bonds Payable Total Tax Increment Revenue Bonds Payable Year Principal Interest Principal Interest Principal Interest 2014 $ 55,000 5,800 $ 125,000 22,050 $ 550,000 191,183 2015 60,000 5,002 135,000 18,300 575,000 167,258 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 75,000 2,248 170,000 5,100 195,000 108,098 2019-2023 80,000 1,160 - - 1,675,000 351,526 2024-2028 - - - - 615,000 40,456 2029-2033 - - - - - - Total $ 400,000 $ 21,532 $ 735,000 $ 69,600 $ 4,395,000 $ 1,116,911 Year Principal Interest Principal Interest Principal Interest 2014 $ 345,000 374,591 $ 1,045,000 989,195 $ 650,000 114,516 2015 370,000 437,951 1,090,000 1,025,982 630,000 85,721 2016 385,000 415,188 1,150,000 958,757 640,000 57,812 2017 250,000 393,791 845,000 893,201 665,000 29,460 2018 265,000 378,313 915,000 840,695 - - 2019-2023 1,675,000 1,616,897 5,745,000 3,259,136 - - 2024-2028 2,410,000 1,011,262 7,365,000 1,176,974 - - 2029-2031 1,925,000 211,237 - - - - Total $ 7,625,000 $ 4,839,230 $ 18,155,000 $ 9,143,940 $ 2,585,000 $ 287,509 Tax Increment Revenue Bonds-Debt Service Requirements to Maturity (Crown Plaza) 2005 Series A Wall Ave Tax Increment 25th Street Recreation Center 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, 2013 D. Tax Increment Revenue Bonds, Continued Year Principal Interest Principal Interest Principal Interest 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 - - - - 100,000 56,100 2019-2023 - - - - 575,000 198,900 2024-2028 - - - - 425,000 44,115 2029-2031 - - - - - - Total $ 1,310,000 $ 443,136 $ 1,645,000 $ 221,548 $ 1,450,000 $ 569,415 Year Principal Interest Principal Interest 2014 $ 1,810,000 22,263 $ 5,275,000 2,002,084 2015 - - 3,595,000 1,982,807 2016 - - 3,755,000 1,792,768 2017 - - 3,275,000 1,655,206 2018 - - 1,720,000 1,390,553 2019-2023 - - 9,750,000 5,427,619 2024-2028 - - 10,815,000 2,272,807 2029-2031 - - 1,925,000 211,237 Total $ 1,810,000 $ 22,263 $ 40,110,000 $ 16,735,081 2011 Series 2007 Series Central Business District 2011 Series BDO Total West 12th 2008 Series A Fairmount District Pledged revenues The City and RDA have pledged certain revenues to repay 2005 Series A, 2009A and 2009B bonds in the amounts of $4,395,000, $7,625,000, and $18,155,000, 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 $5,511,910, 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 $27,298,940, payable through December 2027. For the current year, principal and interest paid on 2005 Series A and 2009B bonds in the amounts of $502,943 and $2,034,678, 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 $1,294,441 and $1,552,208, respectively. Lease revenues from Solomon recreation center are pledged for debt service for the 2009 Series A bonds. Total principal and interest remaining on the 2009 Series A bonds is $12,464,230, payable through June 2031. For the current year, principal and interest paid on 2009 Series A bonds and total lease revenues were $330,000 and $435,191, respectively. Swap payments and associated debt Using rates as of June 30, 2013, 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, 2013, the net swap payments on the 2009 Series A and 2009 Series B Bonds were $330,187 and $878,477, 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. 67 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 E. Section 108 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. The balance as of June 30, 2013 is $1,500,000. 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, 2013 Series 2001 Bonds (refuse) 08/29/01 06/15/16 4.90% $ 3,300,000 $ 1,130,000 Series 2009 Water and Sewer Bond 04/22/09 06/15/24 3.0% to 5.0% 5,585,000 4,415,000 Series 2008 Water and Sewer Bond 06/04/08 06/15/38 2.8% to 5.0% 49,175,000 44,900,000 Series 2012 Storm Sewer Bond 11/10/12 06/15/23 2.09% 2,043,000 1,860,000 Series 2012 State Water Bonds 10/17/12 06/15/33 2.26% 4,000,000 4,000,000 Series 2013 State Water Bonds 03/06/13 06/15/33 2.39% 5,339,000 5,339,000 $ 61,644,000 Enterprise Fund Revenue and Note Total Bonds and Note Outstanding Year Principal Interest Principal Interest Principal Interest 2014 $ 260,000 $ 55,370 $ 325,000 $ 192,650 $ 960,000 $ 2,134,106 2015 270,000 42,630 335,000 181,275 1,010,000 2,086,906 2016 600,000 29,400 350,000 167,875 1,055,000 2,041,456 2017 - - 365,000 153,875 1,075,000 1,988,706 2018 - - 375,000 514,275 1,155,000 1,940,331 2019-2023 - - 2,165,000 412,287 6,710,000 8,774,405 2024-2028 - - 500,000 23,125 8,530,000 6,957,255 2029-2033 - - - - 10,840,000 4,644,555 2034-2038 - - - - 13,565,000 1,918,794 Total $ 1,130,000 $ 127,400 $ 4,415,000 $ 1,645,362 $ 44,900,000 $ 32,486,514 Refuse 2001 Water/Sewer 2009 Water/Sewer 2008 Enterprise Revenue Bonds-Debt Service Requirements to Maturity Year Principal Interest Principal Interest Principal Interest 2014 $ 167,000 $ 38,874 $ 160,000 $ 90,400 $ 211,000 $ 127,602 2015 171,000 35,384 164,000 86,784 216,000 122,559 2016 175,000 31,810 168,000 83,078 222,000 117,397 2017 179,000 28,152 172,000 79,281 227,000 112,091 2018 184,000 24,411 175,000 75,394 232,000 106,666 2019-2023 984,000 62,637 938,000 315,767 1,247,000 447,361 2024-2028 - 1,049,000 204,801 1,404,000 291,031 2029-2033 - 1,174,000 80,772 1,580,000 115,055 Total $ 1,860,000 $ 221,268 $ 4,000,000 $ 1,016,277 $ 5,339,000 $ 1,439,762 State Water 2012 Storm Sewer 2012 State Water 2013 68 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 F. Enterprise Fund Revenue Bonds, Continued Year Principal Interest 2014 $ 2,083,000 $ 2,639,002 2015 2,166,000 2,555,538 2016 2,570,000 2,471,016 2017 2,018,000 2,362,105 2018 2,121,000 2,661,077 2019-2023 12,044,000 10,012,457 2024-2028 11,483,000 7,476,212 2029-2033 13,594,000 4,840,382 2034-2038 13,565,000 1,918,794 Total $ 61,644,000 $ 36,936,583 Total Pledged revenues The Water and Sewer Utilities have each pledged to repay certain portion of the 2008 Water/Sewer bonds in the amounts of $39,063,000 and $5,837,000 respectively. Additionally, the Water and Sewer Utilities have each pledged to repay a portion of the 2009 Water/Sewer bonds in the amounts of $2,944,805 and $1,470,195, respectively. NOTE 8. LINE-OF-CREDIT The City has 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% (1.77% at June 30, 2013), adjusted quarterly, and carried a balance of $884,025. The line-of-credit has a maturity date of June 2, 2016. Lines-of-Credit Beginning Ending Balance Additions Reductions Balance Governmental Activities: Community development $ 422,104 $ 1,120,559 $ 658,638 $ 884,025 NOTE 9. FUND BALANCES / NET POSITION DEFICITS At June 30, 2013, the airport, golf courses, dinosaur park and risk management funds had deficit unrestricted net position or unassigned fund balances of $2,122,551, $407,666, $27,795, and $756,215 respectively. The City manages airport finances so that the fund maintains a positive cash balance. The Airport fund may never achieve positive unrestricted net position 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 position over time. The agreement between the dinosaur park foundation and the City calls for the City to receive annual payments that will cover the current deficit in cash and net position. The City has increased for insurance costs, it is expected with the increase in revenues to the risk management fund, the deficit will be reverse and a reserve will start to build in this fund in the next few years. 69 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 10. UNEARNED REVENUE Unearned inflows of resources do not yet meet the criteria for revenue recognition. In governmental funds, amounts that are unavailable are reported as deferred amounts until they are available to liquidate liabilities of the current period. Ogden City has deferred inflows of resources and deposits as of June 30, 2013 as follows: Unearned revenue, governmental funds, balance sheet General Fund $ 20,193,224 Special Revenue Fund (Redevelopment Agency) 11,954,098 Nonmajor Governmental Funds 368,170 Unearned revenue, governmental funds, balance sheet 32,515,492 Property taxes levied for current and prior periods (delinquent) (675,000) Unearned revenue, governmental funds, statement of net position $ 31,840,492 Unearned revenue Governmental Funds Property tax, general $ 8,700,751 Property tax, RDA 11,954,098 Special assessments 340,685 Grant loans receivable 9,623,503 Notes receivable 805,644 Prepaid interments 50,351 Grant program income 1,012,975 Miscellaneous deposits, non-major funds 27,485 Total $ 32,515,492 Proprietary Funds Miscellaneous donations $ 16,408 Nonmajor enterprise fund, airport prepaid lease 476,000 Total $ 492,408 NOTE 11. 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 Systems are administered by Utah Retirement Systems (URS) under the direction of the URS Board, which consists of the State Treasurer and six 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 Retirement 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 substantially all employees of the State, public education, and other political subdivisions of the State. Only the State Legislature 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. 70 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 11. RETIREMENT PLANS, CONTINUED Expenditures or expenses for retirement costs are recorded in the City’s funds as contributions are made to the Systems. Contributions made each year were equal to the contributions required by the City’s contract with URS. Therefore, the City has no liability for pension obligations. 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% 2013 Rates as Percent of Covered Payroll: Employer… 12.03% 12.74% 16.04% 42.21% / 2.08% 30.78% / 11.1% Member…… 6.00% - - NA / 2.08% - Actual City Contributions Made, by year: 249,670 $ 1,839,130 $ 3,446,850 $ 206,987 1,632,806 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 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 71 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 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. 401(k) Plan Contributions Employee Employer 295,546 $ 171,775 $ 368,509 258,569 410,897 300,964 418,818 437,549 467,074 363,739 457 Plan Contributions Employee Employer 280,775 $ 85,206 $ 305,714 141,088 346,695 131,282 307,563 249,483 352,417 324,837 NOTE 12. 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 2009 to 2013 were as follows: Beginning of Changes Claim End of Year Year Liability in Estimates Payments Liability 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 1,741,814 2,048,555 2,037,309 2013 2,037,309 868,438 1,503,850 1,401,897 Risk Management Fund - Uninsured Claims Liability 72 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 13. 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. NOTE 14. REDEVELOPMENT AGENCY The Ogden Redevelopment Agency had the following project areas which collected tax increment monies in the fiscal year ended June 30, 2013: Fairmont $ 1,104,606 Central Business District 1,290,852 South Central Business District………………………. 32,349 Lincoln Redevelopment……………………………..... 474,321 Washington 375,258 Lester 86,255 Golden 747 Park 28,840 25th 721,272 St. Benedicts 220,058 Union 23,676 12th 159,525 4,931,404 American Can 493,295 Wall Ave 144,286 West 12th 1,683,384 Hinckley 395,387 Hinckley 163,311 Ogden River 55,841 Outstanding principal amounts on bonded debt and other debt for the project areas at June 30, 2013: Bonded Debt Other Loans Central Business District……………………………. $ 31,625,000 $ 1,500,000 1,310,000 - 25th 735,000 - 1,810,000 - Wall 400,000 - West 12th 4,230,000 - 73 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 15. 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 $57,334,771 as of June 30, 2013. 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. 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 $13,201,200 over the remaining term. The original cost of the assets was $23,000,000, with a carrying amount of $17,815,402 as of June 30, 2013. NOTE 16. CONTINGENCIES As of June 30, 2013, it was determined that negative cash balances being carried by management information services, fleet, facilities, electronics, and stores and dinosaur park funds in the amounts of $236,837, $114,135 and $27,795, respectively, are recoverable under the current operating arrangements. NOTE 17. RESTATEMENT OF NET POSITION AND FUND BALANCE The Redevelopment Agency purchased property in the Lincoln Redevelopment Area for future redevelopment needs. At the time of the purchase the Agency determined the property would be treated as a restricted investment. The restricted investment was recorded in the governmental fund statements and the government wide statements. The Agency inadvertently capitalized the property as a fixed asset in addition to a restricted investment. Fixed assets are not recorded in the governmental fund statements, but are included in the government wide statements. The Agency sold this property during the year ended June 30, 2012 and disposed of the fixed asset in the government wide statements. The restricted investment was improperly left as an asset in both the governmental fund statements and the government wide statements. Accordingly, the net position and fund balance at the beginning of the year have been restated. During the period ended June 30, 2009, the City converted to a new fixed asset system. During the conversion, it went unnoticed that the City had previously been depreciating infrastructure assets. The City uses the modified approach to infrastructure asset reporting. The City does not depreciate infrastructure assets, but is maintains and documents road maintenance at levels established by the City. During conversion the accumulated depreciation was eliminated from the infrastructure assets and the financials were never corrected to report the correct accumulated depreciation in the government wide statements. Additionally the asset values had errors and were never properly reconciled. In order to properly reconcile the asset values and accumulated depreciation, the net position has been restated. 74 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2013 NOTE 17. RESTATEMENT OF NET POSITION AND FUND BALANCE, CONTINUED These corrections had the following effects on net position/fund balance and the change in net position/fund balance: Government-wide Governmental Fund Financial Statements Financial Statements Governmental-Type Redevelopment Activities Agency Corrections to net position/fund balance: Net position/fund balance as previously stated - June 30, 2012 122,159,444 $ 3,826,550 $ Correction of error in prior year - reduce Redevelopment Agency restricted investment assets as of June 30, 2012 (255,224) (255,224) Correction of error in prior year - correct asset value as of June 30, 2009 (3,382,562) - Correction of error in prior year - reduce accumulated depreciation on infrastructure assets as of June 30, 2009 15,146,197 - Restated net position/fund balance - June 30, 2012 133,667,855 $ 3,571,326 $ Related corrections to change in net position/fund balance: Previously stated change in net position/fund balance - June 30, 2012 8,316,542 $ (903,493) $ Correction of error in prior year - reduce Redevelopment Agency restricted investment assets as of June 30, 2012 (255,224) (255,224) Corrected change in net position/fund balance - June 30, 2012 8,061,318 $ (1,158,717) $ NOTE 18. SPECIAL ITEM The Redevelopment Agency started a major redevelopment project in the Ogden River Redevelopment Area during the period ended June 30, 2006. Many properties were purchased and demolished by the Agency. It was determined at that time the costs of these redevelopment activities would be capitalized as an investment. The Agency entered into a land transfer and development agreement where the land would be transferred to a developer who would build several properties on the land. As payment the Agency would have increase tax increment revenue in the Ogden River Redevelopment Area from the future development. The investment of $2,800,394 is being disposed of. Any future tax increment received by the Agency will be recognized in the years received in accordance with policy the City follows for property tax revenue recognition. NOTE 19. SUBSEQUENT EVENTS The City closed on two new bond issues in September of 2013. A Water Bond and a Storm Sewer bond in the amount of $13,225,000 and $4,490,000, respectively. The proceeds of the water bond will be used to replace the existing water treatment facility at the base of Pine View Reservoir in Ogden Canyon. The current water treatment facility was built in 1954 and is the main source of treated water for Ogden City. The bond will be paid back with user fee revenue in the Water Utility over 25 years at an initial interest rate of The proceeds of the storm sewer bond will be used for various storm sewer projects recommended by the storm sewer sustainability plan. The bond will be paid back with user fee revenue in the Storm Sewer Utility over 20 years at an initial interest rate of 75 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 76 ---PAGE BREAK--- Required Supplementary Information 77 ---PAGE BREAK--- Page 1 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes Property $ 10,284,875 $ 9,906,950 $ 10,434,603 $ 527,653 Sales 13,652,375 13,652,375 14,040,376 388,001 Franchise 8,025,000 8,025,000 8,057,296 32,296 Other 5,010,800 5,010,800 4,912,838 (97,962) Total Taxes 36,973,050 36,595,125 37,445,113 849,988 Licenses and permits 1,870,475 1,870,475 1,789,847 (80,628) Intergovernmental 7,976,100 11,561,303 7,712,677 (3,848,626) Charges for services 7,521,125 8,692,454 6,577,440 (2,115,014) Fines and forfeitures 2,835,250 2,835,250 2,193,546 (641,704) Interest 50,000 50,000 82,428 32,428 Miscellaneous 1,154,575 1,161,025 1,080,848 (80,177) Donations - (4,662) 8,319 12,981 Sale of property 15,000 15,000 2,507 (12,493) Total revenues 58,395,575 62,775,970 56,892,725 (5,883,245) EXPENDITURES: Mayor 519,300 519,300 518,787 513 City council 846,875 893,501 850,486 43,015 Management services Administration 380,250 410,250 375,298 34,952 Human resources 523,425 523,425 535,578 (12,153) Comptroller 590,925 615,790 517,584 98,206 Fiscal operations 534,050 534,050 509,091 24,959 Purchasing 146,825 149,279 151,728 (2,449) Recorder 446,600 449,600 401,164 48,436 Business license 234,150 234,150 235,999 (1,849) Fleet and facilities 50,000 94,462 37,625 56,837 Justice Court 1,509,825 1,527,221 1,399,387 127,834 Total Management services 4,416,050 4,538,227 4,163,454 374,773 Corporate counsel 1,080,575 1,080,575 1,078,100 2,475 Non departmental 4,061,825 5,760,857 2,909,919 2,850,938 Police Administration 442,250 1,467,723 1,417,144 50,579 Uniform 7,027,300 8,680,977 8,106,290 574,687 Investigations 5,419,250 5,626,254 5,530,302 95,952 Support services 4,570,175 2,460,309 2,312,992 147,317 Animal services 610,775 53,263 80,072 (26,809) Total Police 18,069,750 18,288,526 17,446,800 841,726 Fire Administration 492,500 517,759 408,685 109,074 Prevention 402,100 402,100 368,717 33,383 Operations 5,939,375 5,926,616 5,900,322 26,294 Medical - 4,680 - 4,680 Total Fire 6,833,975 6,851,155 6,677,724 173,431 Public services Administration 289,750 294,244 296,974 (2,730) Streets 3,167,050 3,400,448 3,219,080 181,368 Engineering 1,509,350 1,871,282 1,493,950 377,332 OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year Ended June 30, 2013 78 ---PAGE BREAK--- Page 2 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget Public services (cont.) Arts, culture and events $ 378,300 $ 421,043 $ 310,012 $ 111,031 Parks and cemetery 2,919,100 3,421,251 2,977,196 444,055 Recreation 1,423,725 1,414,820 1,622,186 (207,366) Total Public services 9,687,275 10,823,088 9,919,398 903,690 Community and economic development Administration 1,051,075 2,378,279 752,907 1,625,372 Planning 2,983,925 908,845 682,768 226,077 Property Development 383,050 2,981,075 3,591,496 (610,421) Building Services 1,070,725 1,070,725 1,028,917 41,808 Community development 4,094,200 5,251,061 2,514,991 2,736,070 Total Community and economic development 9,582,975 12,589,985 8,571,079 4,018,906 Debt service Principal 2,120,650 2,220,000 2,236,000 (16,000) Interest 387,450 372,450 324,274 48,176 Total expenditures 57,606,700 63,937,664 54,696,021 9,241,643 Excess (deficiency) of revenues over expenditures 788,875 (1,161,694) 2,196,704 3,358,398 OTHER FINANCING SOURCES (USES): Transfers in 416,000 1,728,275 1,578,275 (150,000) Transfers out (1,204,875) (1,837,875) (1,381,975) 455,900 Total other financing sources/(uses) (788,875) (109,600) 196,300 305,900 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (1,271,294) 2,393,004 3,664,298 Fund balances at beginning of year 8,975,445 8,975,445 8,975,445 - Fund balances at end of year $ 8,975,445 $ 7,704,151 $ 11,368,449 $ 3,664,298 79 ---PAGE BREAK--- Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ 16,396,100 $ 16,396,100 $ 12,874,173 $ (3,521,927) Charges for services 694,800 694,800 695,740 940 Miscellaneous income 1,000 1,000 17,714 16,714 Interest income 41,000 41,000 68,246 27,246 Sale of property - 222,752 111,401 (111,351) Total revenues 17,132,900 17,355,652 13,767,274 (3,588,378) EXPENDITURES: Current: City Council 10,000 10,000 - 10,000 Community and Economic Development 8,741,650 9,014,402 3,224,918 5,789,484 Debt service: Debt service principal 4,719,350 5,169,350 5,521,674 (352,324) Debt service interest 2,192,000 2,192,000 2,212,046 (20,046) Total expenditures 15,663,000 16,385,752 10,958,638 5,427,114 Excess (deficiency) of revenues over expenditures 1,469,900 969,900 2,808,636 1,838,736 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Refunded bonds redeemed - - (2,800,394) (2,800,394) Operating transfers in 4,337,325 4,837,325 4,428,654 (408,671) Operating transfers out (5,807,225) (5,807,225) (7,276,654) (1,469,429) Total other financing sources (uses) (1,469,900) (969,900) (5,648,394) (4,678,494) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - - (2,839,758) (2,839,758) Fund balance at beginning of year 3,571,326 3,571,326 3,571,326 - Fund balance at end of year $ 3,571,326 $ 3,571,326 $ 731,568 $ (408,671) Budgeted Amounts OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE OGDEN REDEVELOPMENT AGENCY - SPECIAL REVENUE FUND Year Ended June 30, 2013 80 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2013 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). 81 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2013 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 / 12/31/2012 $45,734 $69,020 $23,286 66% $5,776 403% 1/1/2012 $46,088 $66,535 $20,447 69% $5,877 348% 1/1/2011 $46,853 $64,076 $17,223 73% $5,537 311% 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% 82 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2013 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 2013 2012 2011 2010 2009 Fair or Better 88.5% 88.5% 79.7% 79.7% 54% Very Poor 0% 0% 0.3% 0.3% 2.5% 83 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2013 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 2013 2012 2011 2010 2009 Good 75% 75% 75% 84% 84% Poor 12.5% 12.5% 12.5% 0% 0% 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 2013 $6,385,969 $4,750,867 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 84 ---PAGE BREAK--- Supplementary Information 85 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 86 ---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). 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. 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. 87 ---PAGE BREAK--- OGDEN CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Special Revenue Permanent Capital Municipal Downtown Cemetery Gomer Improvement Debt Building Special Perpetual A. Projects Service Authority Assessment Care Nicholas Totals ASSETS Cash $ 5,940,962 $ 3,951 $ 261,536 $ 234,338 $ 1,185,311 $ 46 $ 7,626,144 Accounts receivable (net) - - - 7,448 27,619 - 35,067 Inventory, at cost - - - - 77,925 - 77,925 Special assess. receivable - - - 324,299 - - 324,299 Interest receivable - - - 16,387 - - 16,387 Total current assets 5,940,962 3,951 261,536 582,472 1,290,855 46 8,079,822 Restricted assets: Investments - - 416,784 - - 410,023 826,807 Total restricted assets - - 416,784 - - 410,023 826,807 Total assets $ 5,940,962 $ 3,951 $ 678,320 $ 582,472 $ 1,290,855 $ 410,069 $ 8,906,629 LIABILITIES Accounts payable $ 141,526 $ - $ - $ 9,237 $ 330 $ - $ 151,093 Retainage payable 5,595 - - - - - 5,595 Unearned revenue 27,485 - - 340,685 - - 368,170 Total current liabilities 174,606 - - 349,922 330 - 524,858 Total liabilities 174,606 - - 349,922 330 - 524,858 FUND BALANCE Nonspendable Permanent fund principal - - - - 1,543 403,922 405,465 Inventory - - - - 77,925 - 77,925 Long-term loans to other funds - - - - 102,017 - 102,017 Spendable Restricted Debt Service - 3,951 - - - - 3,951 Unspent bond proceeds - - 416,784 - - - 416,784 Assigned Downtown business promotion - - - 232,550 - - 232,550 Non-departmental 5,500 - - - - - 5,500 Public services 388,945 - - - - - 388,945 Debt service - - 261,536 - - - 261,536 Capital projects 5,371,911 - - - - - 5,371,911 Special revenue - - - - 1,109,040 6,147 1,115,187 Total fund balance 5,766,356 3,951 678,320 232,550 1,290,525 410,069 8,381,771 Total liabilities and fund balances $ 5,940,962 $ 3,951 $ 678,320 $ 582,472 $ 1,290,855 $ 410,069 $ 8,906,629 June 30, 2013 88 ---PAGE BREAK--- Permanent Capital Municipal Downtown Cemetery Gomer Improvement Debt Building Special Perpetual A. Projects Service Authority Assessment Care Nicholas Totals REVENUES: Charges for services $ - $ - $ 534,550 $ - $ 13,766 $ - $ 548,316 Special assessments - - - 258,488 - - 258,488 Interest 28,890 1,678 13,189 1,929 8,314 214 54,214 Intergovernmental 1,202,607 - - - - - 1,202,607 Miscellaneous 40,000 - - - - - 40,000 Total revenue 1,271,497 1,678 547,739 260,417 22,080 214 2,103,625 EXPENDITURES: Management Services 10,478 - - - - - 10,478 Public services 1,858,092 - - - (1,640) - 1,856,452 Non-departmental 653,905 - 1,163 139,273 - 7,307 801,648 Community and economic development 65,132 - - 149,202 - - 214,334 Bond principal - - 310,000 - - - 310,000 Interest - - 231,389 - - - 231,389 Total expenditures 2,587,607 - 542,552 288,475 (1,640) 7,307 3,424,301 Excess (deficiency) of revenues over expenditures before operating transfers (1,316,110) 1,678 5,187 (28,058) 23,720 (7,093) (1,320,676) OTHER FINANCING SOURCES (USES): Transfers in 3,497,148 21,100 - 23,000 - - 3,541,248 Transfers out (415,000) (1,186,275) - - (5,324) (1,606,599) Total financing sources/uses: 3,082,148 21,100 (1,186,275) 23,000 - (5,324) 1,934,649 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 1,766,038 22,778 (1,181,088) (5,058) 23,720 (12,417) 613,973 Fund balance at the beginning of year 4,000,318 (18,827) 1,859,408 237,608 1,266,805 422,486 7,767,798 Fund balance at the end of year $ 5,766,356 $ 3,951 $ 678,320 $ 232,550 $ 1,290,525 $ 410,069 $ 8,381,771 Special Revenue OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENT FUNDS Year Ended June 30, 2013 89 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT PROJECTS Year Ended June 30, 2013 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Intergovernmental $ 598,700 $ 598,700 $ 1,202,607 $ 603,907 Miscellaneous - 3,761,184 40,000 (3,721,184) Interest 10,000 10,000 28,890 18,890 Total revenues 608,700 4,369,884 1,271,497 (3,098,387) EXPENDITURES: Current: City Council (77,500) 62,784 - 62,784 Non-departmental 128,500 796,881 653,905 142,976 Management Services - 249,069 10,478 238,591 Public services 1,827,225 4,405,355 1,858,092 2,547,263 Fire 404,000 1,609,654 - 1,609,654 Community and economic development 34,600 187,466 65,132 122,334 Total expenditures 2,316,825 7,311,209 2,587,607 4,723,602 Excess (deficiency) of revenues over expenditures (1,708,125) (2,941,325) (1,316,110) 1,625,215 OTHER FINANCING SOURCES (USES): Transfers in 2,097,125 3,389,325 3,497,148 107,823 Transfers out (389,000) (448,000) (415,000) 33,000 Total other financing sources (uses) 1,708,125 2,941,325 3,082,148 140,823 Excess (deficiency) of revenues/sources over (under) expenditures/uses - - 1,766,038 1,766,038 Fund balance at beginning of year 4,000,318 4,000,318 4,000,318 - Fund balance at end of year $ 4,000,318 $ 4,000,318 $ 5,766,356 $ 1,766,038 90 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DEBT SERVICE Year Ended June 30, 2013 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ - $ - $ - $ - Interest - - 1,678 1,678 Total revenues - - 1,678 1,678 EXPENDITURES: Debt service: Capital outlay 21,100 21,100 - 21,100 Total expenditures 21,100 21,100 - 21,100 Excess (deficiency) of revenues over expenditures (21,100) (21,100) 1,678 (19,422) OTHER FINANCING SOURCES (USES): Transfers in 21,100 21,100 21,100 - Total other financing sources (uses) 21,100 21,100 21,100 - Excess (deficiency) of revenues/sources over (under) expenditures/uses - - 22,778 (19,422) Fund balance at beginning of year (18,827) (18,827) (18,827) - Fund balance at end of year $ (18,827) $ (18,827) $ 3,951 $ (19,422) 91 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE MUNICIPAL BUILDING AUTHORITY Year Ended June 30, 2013 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 534,550 $ 534,550 $ 534,550 $ - Interest 10,000 10,000 13,189 3,189 Total revenues 544,550 544,550 547,739 3,189 EXPENDITURES: Debt service: Non-departmental - 1,165 1,163 2 Principal 310,000 310,000 310,000 - Interest and fiscal charges 229,525 228,360 231,389 (3,029) Total expenditures 539,525 539,525 542,552 (3,027) Excess (deficiency) of revenues over expenditures 5,025 5,025 5,187 162 OTHER FINANCING SOURCES (USES): Transfers out - (1,186,275) (1,186,275) - Total other financing sources (uses) - (1,186,275) (1,186,275) - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 5,025 (1,181,250) (1,181,088) 162 Fund balance at beginning of year 1,859,408 1,859,408 1,859,408 - Fund balance at end of year $ 1,859,408 $ 678,158 $ 678,320 $ 162 92 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DOWNTOWN SPECIAL ASSESSMENT Year Ended June 30, 2013 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ 155,000 $ 175,000 $ 258,488 $ 83,488 Miscellaneous - - - - Interest 1,000 1,000 1,929 929 Total revenues 156,000 176,000 260,417 84,417 EXPENDITURES: Current: Non-departmental 100,000 155,000 139,273 15,727 Community and Economic Development 103,000 103,000 149,202 (46,202) Total expenditures 203,000 258,000 288,475 (30,475) Excess (deficiency) of revenues over expenditures (47,000) (82,000) (28,058) 53,942 OTHER FINANCING SOURCES (USES): Transfers in 23,000 23,000 23,000 - Transfers out - - - - Total other financing sources (uses) 23,000 23,000 23,000 - Excess (deficiency) of revenues/sources over expenditures/uses (23,000) (23,000) (5,058) 53,942 Fund balance at beginning of year 237,608 237,608 237,608 - Fund balance at end of year 237,608 $ $ 178,608 $ 232,550 $ 53,942 93 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CEMETERY PERPETUAL CARE Year Ended June 30, 2013 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 21,275 $ 21,275 $ 13,766 $ (7,509) Interest 20,000 20,000 8,314 (11,686) Total revenues 41,275 41,275 22,080 (19,195) EXPENDITURES: Current: Public services 41,275 41,275 (1,640) 42,915 Total expenditures 41,275 41,275 (1,640) 42,915 Excess (deficiency) of revenues over expenditures - - 23,720 23,720 Fund balance at beginning of year 1,266,805 1,266,805 1,266,805 - Fund balance at end of year $ 1,266,805 $ 1,266,805 $ 1,290,525 $ 23,720 94 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE Permanent Trust Fund GOMER A. NICHOLAS Year Ended June 30, 2013 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Interest $ 150 $ 150 $ 214 $ 64 Total revenues 150 150 214 64 EXPENDITURES: Current: Management services - - 7,307 (7,307) Total expenditures - - 7,307 (7,307) Excess (deficiency) of revenues over expenditures 150 150 (7,093) 7,371 OTHER FINANCING SOURCES (USES): Transfers out (150) (150) (5,324) (5,174) Total other financing sources (uses) (150) (150) (5,324) (5,174) Excess (deficiency) of revenues/sources over (under) expenditures/uses - - (12,417) (12,417) Fund balance at beginning of year 422,486 422,486 422,486 - Fund balance at end of year $ 422,486 $ 422,486 $ 410,069 $ (12,417) 95 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 96 ---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. Medical Services Fund To account for ambulance and paramedic services provided by the City. 97 ---PAGE BREAK--- Page 1 of 2 Golf Dinosaur ASSETS Airport Courses Park Current assets Cash $ 135,968 $ 109,780 $ - Accounts receivable (net) 586,171 25,003 - Inventory, at cost - 58,946 - Total current assets 722,139 193,729 - Capital Assets: Land 1,941,461 34,800 - Buildings 884,658 714,486 - Construction in process 4,658,814 - - Improvements 24,419,723 2,199,687 - Office furniture 12,841 - - Equipment 760,543 - - 32,678,040 2,948,973 - Less accumulated depreciation (14,263,292) (1,984,891) - Net capital assets 18,414,748 964,082 - Total noncurrent assets 18,414,748 964,082 - Total assets 19,136,887 1,157,811 - LIABILITIES AND FUND EQUITY LIABILITIES: Current liabilities Due to other funds - - 27,795 Accounts payable 426,080 33,289 - Accrued wages payable 5,381 9,521 - Accrued compensated absences 14,494 6,494 - Retainage payable 272,952 - - Deposits 476,000 1,748 - Total current liabilities 1,194,907 51,052 27,795 Noncurrent liabilities Compensated absences 33,820 31,697 - Loans from other funds 1,615,963 534,519 - Total noncurrent liabilities 1,649,783 566,216 - Total liabilities 2,844,690 617,268 27,795 NET POSITION: RETAINED EARNINGS: Net investment in capital assets 18,414,748 964,082 - Unrestricted (2,122,551) (423,539) (27,795) Total net position $ 16,292,197 $ 540,543 $ (27,795) OGDEN CITY CORPORATION COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS June 30, 2013 98 ---PAGE BREAK--- Page 2 of 2 Medical Recreation Services Total $ 66,721 $ 1,935,007 $ 2,247,476 6,060 1,662,952 2,280,186 - - 58,946 72,781 3,597,959 4,586,608 - - 1,976,261 - - 1,599,144 - - 4,658,814 231,626 - 26,851,036 - - 12,841 8,090 197,813 966,446 239,716 197,813 36,064,542 (238,196) (56,896) (16,543,275) 1,520 140,917 19,521,267 1,520 140,917 19,521,267 74,301 3,738,876 24,107,875 - - 27,795 24,175 37,729 521,273 2,325 52,906 70,133 - 89,753 110,741 - - 272,952 796 - 478,544 27,296 180,388 1,481,438 - 209,423 274,940 - - 2,150,482 - 209,423 2,425,422 27,296 389,811 3,906,860 1,520 140,917 19,521,267 45,485 3,208,148 679,748 $ 47,005 $ 3,349,065 $ 20,201,015 99 ---PAGE BREAK--- OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2013 Page 1 of 2 Golf Dinosaur Airport Courses Park OPERATING REVENUES Charges for services $ 327,204 $ 995,895 $ 83 Intergovernmental charges - 1,984 - Miscellaneous income 22,390 174 - 349,594 998,053 83 OPERATING EXPENSES Cost of materials and parts - 136,539 - Personal services: Salaries and wages 302,402 436,548 - Benefits 138,249 114,935 - Supplies Office supplies 2,583 2,384 - Operating supplies 7,687 27,395 - Repair and maintenance supplies 6,391 695 - Charges for services: Public utility services 79,723 71,722 - Travel and education 12,328 1,046 - Contracted agreements 31,153 39,401 - Other operating expenses: Rental charges 2,545 - - Fiscal charges - - - Depreciation 958,416 65,284 - Data processing 16,075 10,000 - Maintenance and repair 550,971 148,153 - Vehicle operating expenses 62,207 196,829 - Advertising 128,764 - - Miscellaneous 6,717 20,208 - Total operating expenses 2,306,211 1,271,139 - Operating income (loss) (1,956,617) (273,086) 83 NON-OPERATING REVENUES (EXPENSES) Revenues Interest income 1,319 86 - Grants and donations 3,374,790 - - Gain on sale of assets 72,646 - - Expenses: Interest expense - (635) - Total non-operating revenues (expenses) 3,448,755 (549) - Income before operating transfers 1,492,138 (273,635) 83 Transfers in 582,675 595,200 - Transfers out - - - Change in net position 2,074,813 321,565 83 Net position, beginning 14,217,384 218,978 (27,878) Net position, ending $ 16,292,197 $ 540,543 $ (27,795) 100 ---PAGE BREAK--- Page 2 of 2 Medical Recreation Services Totals $ 271,077 $ 4,115,182 $ 5,709,441 2,953 1,685,736 1,690,673 - 4,430 26,994 274,030 5,805,348 7,427,108 - - 136,539 92,242 2,296,885 3,128,077 9,243 1,123,611 1,386,038 1,325 3,744 10,036 39,137 146,582 220,801 - 2,574 9,660 7,045 65,708 224,198 - 12,710 26,084 28,941 479,418 578,913 7,554 8,144 18,243 6,900 296,500 303,400 760 17,408 1,041,868 - 75,000 101,075 2,177 169,151 870,452 - 395,615 654,651 - - 128,764 31,360 7,017 65,302 226,684 5,100,067 8,904,101 47,346 705,281 (1,476,993) 124 91,744 93,273 - - 3,374,790 - - 72,646 - - (635) 124 91,744 3,540,074 47,470 797,025 2,063,081 - - 1,177,875 (120,500) (1,344,560) (1,465,060) (73,030) (547,535) 1,775,896 120,035 3,896,600 18,425,119 $ 47,005 $ 3,349,065 $ 20,201,015 101 ---PAGE BREAK--- OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2013 Page 1 of 2 Golf Dinosaur Airport Courses Park OPERATING REVENUES Charges for services $ 327,204 $ 995,895 $ 83 Intergovernmental charges - 1,984 - Miscellaneous income 22,390 174 - 349,594 998,053 83 OPERATING EXPENSES Cost of materials and parts - 136,539 - Personal services: Salaries and wages 302,402 436,548 - Benefits 138,249 114,935 - Supplies Office supplies 2,583 2,384 - Operating supplies 7,687 27,395 - Repair and maintenance supplies 6,391 695 - Charges for services: Public utility services 79,723 71,722 - Travel and education 12,328 1,046 - Contracted agreements 31,153 39,401 - Other operating expenses: Rental charges 2,545 - - Fiscal charges - - - Depreciation 958,416 65,284 - Data processing 16,075 10,000 - Maintenance and repair 550,971 148,153 - Vehicle operating expenses 62,207 196,829 - Advertising 128,764 - - Miscellaneous 6,717 20,208 - Total operating expenses 2,306,211 1,271,139 - Operating income (loss) (1,956,617) (273,086) 83 NON-OPERATING REVENUES (EXPENSES) Revenues Interest income 1,319 86 - Grants and donations 3,374,790 - - Gain on sale of assets 72,646 - - Expenses: Interest expense - (635) - Total non-operating revenues (expenses) 3,448,755 (549) - Income before operating transfers 1,492,138 (273,635) 83 Transfers in 582,675 595,200 - Transfers out - - - Change in net position 2,074,813 321,565 83 Net position, beginning 14,217,384 218,978 (27,878) Net position, ending $ 16,292,197 $ 540,543 $ (27,795) 102 ---PAGE BREAK--- Page 2 of 2 Medical Recreation Services Totals $ 271,077 $ 4,115,182 $ 5,709,441 2,953 1,685,736 1,690,673 - 4,430 26,994 274,030 5,805,348 7,427,108 - - 136,539 92,242 2,296,885 3,128,077 9,243 1,123,611 1,386,038 1,325 3,744 10,036 39,137 146,582 220,801 - 2,574 9,660 7,045 65,708 224,198 - 12,710 26,084 28,941 479,418 578,913 7,554 8,144 18,243 6,900 296,500 303,400 760 17,408 1,041,868 - 75,000 101,075 2,177 169,151 870,452 - 395,615 654,651 - - 128,764 31,360 7,017 65,302 226,684 5,100,067 8,904,101 47,346 705,281 (1,476,993) 124 91,744 93,273 - - 3,374,790 - - 72,646 - - (635) 124 91,744 3,540,074 47,470 797,025 2,063,081 - - 1,177,875 (120,500) (1,344,560) (1,465,060) (73,030) (547,535) 1,775,896 120,035 3,896,600 18,425,119 $ 47,005 $ 3,349,065 $ 20,201,015 103 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 104 ---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. 105 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk ASSETS Stores Systems Management Totals Current assets Cash $ 250 $ - $ 700,682 $ 700,932 Accounts receivable 289,416 13,517 - 302,933 Inventory, at cost 944,576 - - 944,576 Total current assets 1,234,242 13,517 700,682 1,948,441 Noncurrent assets Employee PC loans receivable - 88,425 - 88,425 Total noncurrent assets - 88,425 - 88,425 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 8,592,411 2,426,981 - 11,019,392 Vehicles 14,149,568 - - 14,149,568 Intangible - 339,446 - 339,446 Total capital assets 24,662,360 2,766,427 - 27,428,787 Less accumulated depreciation/amortization (16,313,688) (2,198,037) - (18,511,725) Net capital assets 8,348,672 568,390 - 8,917,062 Total noncurrent assets 8,348,672 656,815 - 9,005,487 Total assets $ 9,582,914 $ 670,332 $ 700,682 $ 10,953,928 LIABILITIES AND FUND EQUITY Current liabilities Due to other funds $ 114,135 $ 236,837 $ - $ 350,972 Accounts payable 440,485 105,979 51,590 598,054 Contracts payable 615,329 - - 615,329 Other payable 168,262 - - 168,262 Claims payable - - 718,441 718,441 Accrued wages payable 17,282 20,233 919 38,434 Accrued compensated absences 20,785 22,683 747 44,215 Total current liabilities 1,376,278 385,732 771,697 2,533,707 Noncurrent liabilities Claims payable - - 683,456 683,456 Contracts payable 2,120,201 - - 2,120,201 Compensated absences 48,499 52,928 1,744 103,171 Total noncurrent liabilities 2,168,700 52,928 685,200 2,906,828 Total liabilities 3,544,978 438,660 1,456,897 5,440,535 NET POSITION RETAINED EARNINGS: Net investment in capital assets 5,613,142 568,390 - 6,181,532 Restricted for system development - 100,953 - 100,953 Unrestricted 424,794 (437,671) (756,215) (769,092) Total net position 6,037,936 231,672 (756,215) 5,513,393 Total liabilities/fund equity $ 9,582,914 $ 670,332 $ 700,682 $ 10,953,928 OGDEN CITY CORPORATION COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2013 106 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk Stores Systems Management Totals OPERATING REVENUES: Charges to departments $ 8,839,095 $ 3,436,587 $ 2,052,527 $ 14,328,209 Miscellaneous income 217,961 108,616 - 326,577 Total operating income 9,057,056 3,545,203 2,052,527 14,654,786 OPERATING EXPENSES: Cost of materials and parts 3,039,184 - - 3,039,184 Personal services: Salaries and wages 895,661 955,680 53,275 1,904,616 Benefits 438,648 389,568 16,055 844,271 Supplies: Office supplies 43,273 7,536 4,723 55,532 Operating supplies 121,799 2,837 655 125,291 Repair and maintenance Supplies 3,638 - - 3,638 Charges for services: Public utility services 929,515 726,326 3,706 1,659,547 Travel and education 3,643 17,092 2,196 22,931 Contracted agreements 1,538,945 1,124,007 318,641 2,981,593 Other operating expenses: Computer equipment - 244,139 - 244,139 Depreciation/amortization 2,147,935 200,268 - 2,348,203 Data processing 114,850 2,262 24,750 141,862 Maintenance and repair 139,968 14,551 - 154,519 Vehicle operating expenses 190,472 3,660 5,515 199,647 Claims payments - - 270,867 270,867 Rental expense 75,256 - - 75,256 Miscellaneous 21,555 523 4,568 26,646 Total operating expenses 9,704,342 3,688,449 704,951 14,097,742 Operating income (loss) (647,286) (143,246) 1,347,576 557,044 NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income (4,198) (1,586) 2,494 (3,290) Grants and donations 3,986 - - 3,986 Gain on sale of assets 190,532 - - 190,532 Expenses: Interest expense (80,999) - - (80,999) Total non-operating revenue (expense) 109,321 (1,586) 2,494 110,229 Income before operating transfers (537,965) (144,832) 1,350,070 667,273 Transfers in 497,325 - - 497,325 Change in net assets (40,640) (144,832) 1,350,070 1,164,598 Net Position, beginning 6,078,576 376,504 (2,106,285) 4,348,795 Net Position, ending $ 6,037,936 $ 231,672 $ (756,215) $ 5,513,393 OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS Year Ended June 30, 2013 107 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk Stores Systems Management Totals CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 9,155,927 $ 3,532,374 $ 2,052,527 $ 14,740,828 Cash received (paid) from (to) other funds 114,135 147,747 (16,811) 245,071 Cash payments to suppliers for goods and services (6,766,823) (2,128,016) (1,269,751) (10,164,590) Cash payments to employees for services (1,325,703) (1,357,740) (67,777) (2,751,220) Net cash from operating activities 1,177,536 194,365 698,188 2,070,089 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Grants/Donations 3,986 - - 3,986 Operating transfers in 497,325 - - 497,325 PC loans paid - (4,892) - (4,892) Interest expense on cash deficit (4,198) (1,586) - (5,784) Net cash from noncapital financing activities 497,113 (6,478) - 490,635 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (2,071,648) (187,886) - (2,259,534) Payments on contracts payable (654,644) - - (654,644) Interest expense on loans (80,999) - - (80,999) Proceeds from sale of assets 190,532 - - 190,532 Net cash from capital financing activities (2,616,759) (187,886) - (2,804,645) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments - - 2,494 2,494 Net cash from investing activities - - 2,494 2,494 Net increase (decrease) in cash equivalents (942,110) - 700,682 (241,427) Cash/equivalents, beginning 942,360 - - 942,360 Cash/equivalents, ending $ 250 $ - $ 700,682 $ 700,932 Cash and cash equivalents at end of year: Unrestricted cash 250 - 700,682 700,932 Total cash at end of year $ 250 $ - $ 700,682 $ 700,932 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ (647,286) $ (143,246) $ 1,347,576 $ 557,044 Reconciliation adjustments: Depreciation 2,147,935 200,268 - 2,348,203 Changes in assets and liabilities: Change in accounts receivable 98,871 (12,829) - 86,042 Change in inventory 24,531 - - 24,531 Change in due to other funds 114,135 147,747 (16,811) 245,071 Change in accounts payable (594,590) 14,917 1,282 (578,391) Change in claims payable - - (635,412) (635,412) Change in wages payable 8,606 (12,492) 1,553 (2,333) Change in other accrued liabilities 25,334 - - 25,334 Total adjustments 1,824,822 337,611 (649,388) 1,513,045 Net cash provided by (used in) operating activities $ 1,177,536 $ 194,365 $ 698,188 $ 2,070,089 OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year Ended June 30, 2013 108 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2013 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 2013 2012 Land 19,652,522 $ 19,052,187 $ Buildings and improvements 113,925,217 112,635,443 Machinery and equipment 2,875,932 2,782,007 Infrastructure 101,183,148 98,605,662 Construction in progress 231,170 2,131,846 Accumulated depreciation (64,994,722) (60,099,094) Net Governmental Funds, capital assets 172,873,267 $ 175,108,051 $ 109 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 110 ---PAGE BREAK--- Statistical Section 111 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 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 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Governmental activities Invested in capital assets, net of related debt $ 125,648,296 $ 118,429,865 $ 107,084,787 $ 104,512,977 $ 107,653,088 $ 92,141,925 $ 84,313,339 $ 87,589,530 $ 88,862,111 $ 90,026,228 Restricted 12,047,845 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 Unrestricted 5,145,187 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) Total governmental activities net position $ 142,841,328 $ 133,667,855 $ 125,606,537 $ 121,846,660 $ 129,381,732 $ 118,580,890 $ 111,251,954 $ 102,582,857 $ 87,464,841 $ 87,566,551 Business-type activities Invested in capital assets, net of related debt $ 165,392,832 $ 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 Restricted 2,041,003 349,829 349,228 349,228 349,228 49,280,783 992,091 956,676 1,971,539 2,045,380 Unrestricted 38,989,747 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 Total business-type activities net position $ 206,423,582 $ 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 Primary government Invested in capital assets, net of related debt $ 291,041,128 $ 281,255,962 $ 280,401,034 $ 276,845,087 $ 283,955,790 $ 260,740,175 $ 250,533,096 $ 247,391,641 $ 261,691,593 $ 263,677,466 Restricted 14,088,848 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 Unrestricted 44,134,934 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) Total primary government net position $ 349,264,910 $ 332,294,554 $ 320,328,861 $ 313,196,731 $ 314,077,725 $ 293,480,331 $ 287,362,068 $ 279,077,326 $ 272,147,135 $ 273,950,200 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. Ogden City Net Position 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 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Value by Dollars Year Net Position by Component Governmental activities Business-type activities Primary government 115 ---PAGE BREAK--- Ogden City Changes in Net Position 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 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Revenues Governmental Activities: General Revenues: Taxes $ 46,626,661 $ 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 Other General Revenues 403,045 (35,630) 880,693 (8,614,254) 1,585,578 3,077,324 971,051 2,043,186 2,488,483 882,611 Charges for Services: General Administration 15,335,519 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 Public Safety 2,919,022 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 Transportation 295,025 295,025 110,025 110,025 - - - - - - Environmental Protection 2,890,946 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 Leisure Opportunities 401,455 420,549 409,028 340,475 314,290 1,039,951 1,147,366 1,104,187 - 1,326,588 Community Development 2,068,228 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 Operating Grants and Contributions 4,895,549 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 Capital Grants and Contributions 4,618,131 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 Total Governmental Activities Revenues 80,453,581 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 Business-Type Activities: General Revenues: Other General Revenues 451,878 (215,239) 428,920 1,452,281 1,359,677 1,085,558 869,725 4,664,474 862,142 828,125 Charges for Services: Medical Services 5,805,348 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 Airport 349,594 321,301 318,584 295,622 275,495 323,346 273,730 304,641 274,992 208,732 Utilities 32,526,185 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 Refuse 5,119,494 4,945,202 4,878,913 4,678,149 4,925,650 4,859,881 4,019,859 - - - Recreation 1,267,229 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 Property Management 3,498,430 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 4,937 - - - - - 1,630,527 2,974,921 2,042,822 4,694,006 Capital Grants and Contributions 3,427,745 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 52,450,840 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 Total Primary Government Revenues 132,904,421 128,600,229 125,794,785 110,861,623 119,684,178 118,124,638 102,056,889 $ 101,128,713 $ 101,052,723 $ 100,641,255 Expenses Governmental Activities: General Administration $ 20,278,677 $ 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 Public Safety 25,562,249 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 Transportation 5,578,078 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 Environmental Protection 531,471 582,561 585,712 557,528 510,501 520,604 422,424 398,019 25,072 13,848 Leisure Opportunities 5,970,011 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 Community Development 9,216,870 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 Interest on Long-Term Debt 1,754,652 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 Total Governmental Activities Program Expenses 68,892,008 72,073,559 75,533,884 72,760,279 76,804,886 78,558,391 62,024,187 63,481,690 61,363,161 63,978,795 116 ---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 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Business-Type Activities: Medical Services 5,100,067 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 Airport 2,306,211 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 Utilities 26,616,342 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 Refuse 4,418,293 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 Recreation 1,498,458 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 Property Management 4,302,325 4,689,194 4,258,808 4,215,409 4,213,562 4,351,300 4,563,629 - - - Total Business-Type Activities Program Expenses 44,241,696 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 Total Primary Government Program Expenses $ 113,133,704 $ 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 Change in Net Position Before Transfers: Net (Expense)/Revenue Governmental activities $ 11,561,573 $ 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 Business-type activities 8,209,144 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 Total primary government net (expense)/revenue $ 19,770,717 $ 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 General Revenues and Other Changes in Net Position Governmental Activities: Special item $ (2,800,394) (255,224) $ - $ - $ 12,289,714 $ - $ - $ - $ - $ - Transfers 412,294 $ 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) Total Governmental Activities (2,388,100) 3,525,450 1,970,747 (2,095,672) 13,137,054 4,070,296 622,796 12,734,014 (2,960,213) (7,817,707) Business-Type Activities: Transfers (412,294) (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 Total Business-Type Activities (412,294) (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 Total Primary Government $ (2,800,394) $ - $ - $ - $ 12,289,714 $ - $ - $ - $ - $ - Change in Net Position Governmental Activities $ 9,173,473 $ 8,316,542 $ 3,759,878 $ (7,535,073) $ 12,379,740 $ 6,882,671 $ 8,669,097 $ 15,382,457 $ 4,119,905 $ (7,777,784) Business-Type Activities 7,796,850 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 Total primary government $ 16,970,323 $ 12,220,917 $ 7,989,745 $ (880,995) $ 17,090,757 $ 5,807,058 $ 8,284,742 $ 7,194,632 $ 4,038,469 $ 3,762,871 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 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Revenues Taxes and special assessments $ 50,577,774 $ 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 Licenses and permits 1,789,847 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 Intergovernmental 8,915,284 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 Charges for services 7,821,496 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 Fines and forfeitures 2,193,546 2,930,273 2,906,270 2,339,788 2,708,901 2,313,651 1,822,689 960,148 832,712 847,954 Miscellaneous 140,142 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 Outside donations 1,080,848 36,250 482,149 27,602 3,000 1,651 128,464 80,806 63,431 114,306 Interest 130,779 307,907 171,455 252,352 1,198,243 1,348,315 1,863,408 1,287,672 896,004 802,363 Sale of property 113,908 279,562 32,901 1,446,331 134,042 2,920,324 802,272 569,303 1,434,827 29,352 Total revenues 72,763,624 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 Expenditures General government: Mayor 518,787 477,079 441,968 431,006 462,660 494,642 496,415 433,797 415,256 419,481 City Council 850,486 790,373 841,362 735,459 781,376 793,726 752,183 634,277 537,695 606,812 Management Services 4,173,932 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 Circuit Court - - 70,116 66,709 63,600 61,200 34,020 34,020 34,020 34,020 Corporate Counsel 1,078,100 1,065,323 1,045,253 1,007,730 973,207 955,813 922,204 896,177 814,485 803,345 Non Departmental 3,711,567 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 Police 17,446,800 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 Fire 6,677,724 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 Public Works1 - - - - - - - - - 4,708,270 Community Services1 - - - - - - - - - 7,265,426 Community & Economic Development 12,010,331 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 Public Services1 9,146,249 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 8,067,674 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 Interest and Fiscal Charges 2,767,709 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 Fees and Assessments - 34,500 - - - - - 39,950 - 657,362 Capital Outlay 2,629,601 2,647,689 - - - - - 91,000 9,064,289 935,738 Total expenditures 69,078,960 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 Excess of revenues over (under) expenditures 3,684,664 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) 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 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 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 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 - - - - - Special item (2,800,394) 255,224 - - 12,289,714 - - - - - Operating Transfers In 9,548,177 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 Operating Transfers Out (10,265,228) (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) Total other financing sources (uses) (3,517,445) (1,274,344) 2,179,475 (1,741,294) 14,744,902 3,652,600 10,141,781 37,768,212 (1,023,513) (7,715,899) Net change in fund balances $ 167,219 $ 1,244,195 $ (2,419,270) $ (2,818,871) $ 10,432,688 $ (2,037,717) $ (1,015,173) $ 29,044,695 $ (3,809,544) (8,021,019) Debt service as a percentage of noncapital expenditures 16.3% 16.4% 13.2% 16.2% 14.4% 13.6% 12.8% 14.5% 10.7% 11.5% 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. 70% 2% 12% 11% 3% 0% 2% 0% 0% 2013 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% 2% 6% 26% 10% 18% 14% 16% 2013 Government Fund Expenditures Mayor City Council Management Services Corporate Counsel Non Departmental Police Fire Community & Economic Development Public Services Debt Service 119 ---PAGE BREAK--- Ogden City Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (UNAUDITED) Fiscal Year Fiscal Year Fiscal Year 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 General Fund Reserved $ $ $ $ 4,746,524 $ 6,716,162 $ 7,576,817 $ 8,926,257 $ 12,431,274 $ 10,596,273 $ 10,875,511 Unreserved/Designated 1,684,623 1,445,969 1,160,253 983,584 84,109 276,897 321,722 Unreserved/Undesignated 3,036,171 2,994,167 3,201,230 3,983,421 4,579,463 6,443,606 4,059,669 1 Non-Spendable 2,810,610 1,117,537 1,477,571 1 Spendable - Restricted 373,793 326,523 313,831 1 Spendable - Assigned 3,929,332 3,970,766 3,047,170 1 Unassigned 4,254,714 3,560,619 2,577,021 Total General Fund $ 11,368,449 $ 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 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 Unreserved/Designated 611,570 592,019 763,460 282,684 2,754,423 2,894,858 (8,897,891) Unreserved/Undesignated 1,681,422 2,971,672 3,594,814 1,045,132 (7,815,607) (22,545,895) (4,465,555) 1 Non-Spendable 585,407 3,301,339 4,279,330 1 Spendable - Restricted 677,665 851,376 1,207,630 1 Spendable - Assigned 7,850,267 7,186,409 6,678,269 Total all Other Governmental Funds $ 9,113,339 $ 11,339,124 $ 12,165,229 $ 11,868,874 $ 12,998,765 $ 14,025,280 $ 13,858,043 $ 11,671,632 $ (18,360,293) $ (12,490,875) Total Primary Government $ 20,481,788 $ 20,314,569 $ 19,580,822 $ 21,336,192 $ 24,155,063 $ 25,963,580 $ 27,751,305 $ 28,766,478 $ (1,043,517) $ 2,766,027 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. (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 120 ---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 3 2 2 2 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 2013 3,076,866,704 4,784,312,785 567,587,191 556,195,006 3,644,453,895 5,340,507,791 3.498 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 2013 is the 2012 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 2013 is the 2012 calendar year tax rate) 0 1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 2012 June 30, 2013 TEN LARGEST PROPERTY TAXPAYERS (UNAUDITED) 2012 Percentage of 2002 Taxable Total Taxable Taxable Taxpayer Type of Business Value Value Value Ranking Boyer Company Construction/space leasing $ 223,789,612 6.14% $ 28,864,882 4 Fresenius USA (Delmed Medical) Health care products 210,543,875 5.78% 64,077,703 2 IHC Health Services Health services 76,879,335 2.11% 25,353,713 7 Autoliv ASP, Inc - Auto Pro Automotive safety products 56,239,277 1.54% 83,479,676 1 (Morton International) GGP/Homart (Newgate Mall) Space leasing for retail sales 50,531,355 1.39% 27,697,330 5 Williams International Corp Manufacturer of jet 49,212,435 1.35% 25,786,244 6 airplane engines McDonnell Douglas Air force subcontractor 45,856,337 1.26% 18,172,525 10 (The Boeing Company) Qwest Communication Telephone/communications 44,251,138 1.21% 51,063,440 3 Pacificorp (Utah Power) Electric utility 42,994,906 1.18% 22,750,909 8 Nutraceutical Corporation Nutritional supplements 37,944,231 1.04% Mark Novis/ Hershey Chocolate manufacturer 34,454,618 0.95% Bremner, Inc Cracker, Cereal Producer 25,388,699 0.70% Total taxable value of 10 largest taxpayers……………………… 898,085,818 24.6% 347,246,422 Total taxable value of all other taxpayers……………………….. 2,746,368,077 75.4% 2,280,672,930 Total taxable value of all taxpayers………………………………. $ 3,644,453,895 100.0% 2,627,919,352 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 1 Collections to Tax Approp. 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% 2013 27,390,775 23,447,857 85.6% 697,704 24,145,561 88.2% 1 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 26,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 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 2012 3.498 2.507 0.696 0.130 0.550 0.145 0.215 0.305 0.880 8.926 0.399 18.254 Source: Weber County Auditor's Office OGDEN CITY CORPORATION PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS PER $1,000 ASSESSED VALUATION LAST TEN CALENDAR YEARS (UNAUDITED) 125 ---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 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 2013 23,447,857 697,704 14,040,376 8,057,296 4,912,838 51,156,070 Source: Ogden City Comptroller Division - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 Bonds Bonds Bonds Assessment Payable 2004 81,416 $ 5,053,300,000 2 $ 20,850,000 $ 3,905,000 $ 13,770,000 $ 477,000 $ 1,619,056 2005 82,007 5,228,500,000 19,475,000 3,475,000 12,875,000 408,000 4,221,435 2006 82,007 1,399,029,100 3 20,020,000 3,340,000 50,305,000 257,000 3,886,330 2007 82,843 1,302,936,900 18,455,000 3,005,000 57,925,000 176,000 6,989,883 2008 82,843 1,457,006,800 16,810,000 5,845,000 55,400,000 90,000 6,579,676 2009 82,865 1,536,764,300 14,795,000 5,602,000 55,505,000 - 8,910,964 2010 83,296 1,561,055,900 13,060,000 5,332,000 52,945,000 - 7,718,876 2011 83,171 1,584,421,100 11,270,000 5,047,000 50,695,000 - 5,438,492 2012 83,949 1,644,690,100 9,475,000 4,752,000 45,220,000 - 5,702,344 2013 83,793 1,573,797,800 7,529,000 4,442,000 40,100,000 - 5,119,555 Total Percentage Fiscal Revenue Notes Primary of Personal Per Year Bonds Payable Government Income Capita 2004 $ 11,868,650 $ - $ 52,489,706 1.04% $ 644.71 2005 11,206,633 4,806,530 56,467,598 1.08% 688.57 2006 10,518,496 4,702,742 93,029,568 6.65% 1,134.41 2007 9,798,765 4,568,950 100,918,598 7.75% 1,218.19 2008 58,221,951 415,160 143,361,787 9.84% 1,730.52 2009 58,463,000 311,370 143,587,334 9.34% 1,732.79 2010 56,924,000 207,580 136,187,456 8.72% 1,634.98 2011 55,406,000 103,790 127,960,282 8.08% 1,538.52 2012 53,847,000 - 118,996,344 7.24% 1,417.48 2013 61,644,000 - 118,834,555 7.55% 1,418.19 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 U.S. Census Bureau , (i.e. fiscal year 2013 population is the July 1, 2012 estimate). Population from the 2000 census was 77,226. The population figures have been revised to bring them more in line with the census. Fiscal year 2011 population is from the 2010 census. 2 Personal income numbers are for Weber County. This data was not available for the Ogden City Metro Area until 2005. Calendar year numbers fiscal year 2005 is calendar year 2004 number). 3 Personal income numbers are for Ogden City Metro Area. In prior years Weber County totals were used. Calendar year numbers fiscal year 2013 is calendar year 2012 numbers); calendar 2013 numbers were not available. Business-Type Activities Ogden City Ratios of Outstanding Debt by Type Last Ten Fiscal Years (UNAUDITED) 128 ---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 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 83,297 5,859,951,360 14,795,000 0.25 177.62 2010 82,825 5,837,221,672 13,060,000 0.22 157.68 2011 83,171 5,562,878,836 11,270,000 0.20 135.50 2012 83,950 5,546,588,762 9,475,000 0.17 112.86 2013 83,793 5,340,507,791 7,529,000 0.14 89.85 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 U.S. Census Bureau (i.e. FY 2013 population is the July 1, 2012 estimate) Population from the 2000 census was 77,226. The population figures have been revised to bring them more in line with the census. Fiscal year 2011 population is from the 2010 census. 2 Calendar year valuations fiscal year 2013 is calendar year 2012 valuation) . Taxable and market values as provided by the Weber County Auditor's office. Includes State Assessed Utilities. 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 $ 47,639,000 100% $ 47,639,000 Total Direct Governmental Debt 47,639,000 Ogden City School District 93,481,000 100% 93,481,000 Weber County 8,410,000 32% 2,723,289 Weber Basin Water Conservancy Dist. 23,888,492 10% 2,334,827 Total Overlapping Governmental Debt 98,539,117 Total Direct and Overlapping Governmental Debt $ 146,178,117 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, 2013 130 ---PAGE BREAK--- Net assessed value for 2013: Real Property Taxable Value $ 3,076,866,704 Personal Property Taxable value $ 567,587,191 Total taxable $ General Debt Margin 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Debt limit: 4% of total taxable value 1 $ 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 $ 145,778,156 Total net debt applicable to limit 2 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 7,529,000 Legal debt margin $ 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 $ 138,249,156 Total net debt applicable to the limit as a percentage of debt limit 18.60% 17.28% 17.42% 15.59% 12.75% 9.87% 8.60% 7.49% 6.33% 5.16% Utilities Debt Margin 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Debt limit: 4% of total taxable value for utilities $ 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 $ 145,778,156 Total net debt applicable to limit 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 61,644,000 Legal debt margin $ 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 $ 84,134,156 Total net debt applicable to the limit as a percentage of debt limit 10.59% 9.94% 9.15% 8.28% 44.15% 39.01% 37.50% 36.84% 35.98% 42.29% 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 Fiscal Year Fiscal Year OGDEN CITY CORPORATION COMPUTATION OF LEGAL DEBT MARGIN Last Ten Fiscal Years June 30, 2013 (UNAUDITED) 3,644,453,895 131 ---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 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 2013 18,085,617 12,319,541 5,766,076 827,080 1,608,829 2,435,909 2.37 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 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 2013 14,440,568 11,687,463 2,753,105 595,920 852,905 1,448,825 1.90 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 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 2013 5,119,494 4,375,350 744,144 250,000 67,620 317,620 2.34 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, 2013 (UNAUDITED) Date Outstanding Issued Retired Outstanding Company Issued July 1, 2012 in 2013 in 2013 June 30, 2013 Albion Manufacturing 11-25-08 1,540,000 $ - $ 179,000 $ 1,361,000 $ Enable Industries 10-29-97 115,000 $ - 115,000 $ - Sources: Financial institutions, bond contracts, accounting firms 135 ---PAGE BREAK--- DEMOGRAPHIC & ECONOMIC INFORMATION (Unaudited) 136 ---PAGE BREAK--- OGDEN CITY CORPORATION DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) Public Fiscal Aggregate Per Capita School Unemployment Year Population 1 Income 2 Income 2 Enrollment 3 Rate 4 2004 81,416 Not Available 5 Not Available 5 12,877 8.1% 2005 82,007 Not Available 5 Not Available 5 12,604 6.8% 2006 82,007 1,399,029,100 17,671 12,059 4.6% 2007 82,843 1,302,936,900 16,100 12,564 4.4% 2008 82,843 1,457,006,800 18,269 12,781 6.8% 2009 82,865 1,536,764,300 19,011 12,623 10.2% 2010 83,296 1,561,055,900 18,922 12,568 11.8% 2011 83,171 1,584,421,100 19,548 12,606 8.2% 2012 83,949 1,644,690,100 20,028 12,529 7.1% 2013 83,793 1,573,797,800 18,876 12,486 Not Available Sources: U.S. Census Bureau Ogden City School District 1 Population estimates are from the U.S. Census Bureau (i.e. FY 2013 population is the July 1, 2012 estimate) Population from the 2000 census was 77,226. The population figures have been revised to bring them more in line with the census. Fiscal year 2011 population is from the 2010 census. 2 In past reports, this data has been reported for Weber County. The data is available for the Ogden City metro area; prior year data has been adjusted to reflect this change. The data is based on calendar year (i.e. fiscal year 2013 is calendar year 2012 data). 3 Calendar year data. 4 Rates are raw annual calendar year averages. The unemployment rate for calendar year 2013 is not yet available. 5 GASB 34 and 44 conversion; comparison data in prior years provided as available. 137 ---PAGE BREAK--- Employment Percent of Total Company Type of Business Range 1 City Employement 2 Internal Revenue Service Federal Government 5,000-6,999 14.6% McKay Dee Hospital Center Health Care 3,000-3,999 9.7% Autoliv Manufacturing 2,000-2,999 6.1% Weber State University Education 2,000-2,999 6.1% Fresenius USA Manufacturing, Inc. Manufacturing 1,000-2,999 4.9% America First Credit Union Finance 500-999 1.8% Associated Foods Stores Wholesale Trade 500-999 1.8% Ogden Medical Center Health Care 500-999 1.8% Covergys Telephone Call Center 500-999 1.8% Kimberly Clark Manufacturing 500-999 1.8% MarketStar Marketing Consulting Services 500-999 1.8% Utah Medical Assistance Public Assistance 500-999 1.8% 16,500-26,988 52.7% 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. Ranking data is not available. 2 Calculated using the midpoint of the employee range. Comparative data from 10 years ago is not available at this time. Source: Utah Department of Workforce Services OGDEN CITY CORPORATION LARGEST EMPLOYERS FOR 2013 (UNAUDITED) 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 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 2013 105 16 86 28 313 32 580 Source: Ogden City Adopted Budget 0 100 200 300 400 500 [PHONE REDACTED] 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3 Police (Calendar Year) Part I: Crimes of Violence 392 349 383 415 507 388 393 330 392 353 1 Homicides 2 4 5 2 3 4 4 1 2 2 1 Forcible Rape 49 34 40 37 37 43 33 25 20 25 1 Detail Robbery 93 107 121 123 137 128 107 111 96 96 1 not shown Aggravated Assault 248 204 217 253 330 213 249 193 274 230 1 on report Part I: Crimes of Non-Violence 4,788 5,149 4,931 5,029 4,954 4,229 4,052 4,674 4,429 4,001 1 Burglary 915 802 797 820 927 703 774 867 858 734 1 Theft 3,473 3,921 3,723 3,773 3,495 3,176 2,962 3,494 3,279 3,051 1 Motor Vehicle Theft 400 426 411 436 532 350 316 313 292 216 1 79,836 79,544 81,166 80,861 78,160 83,353 83,016 82,825 84,423 85,083 Total all UCR Offenses 5,180 5,498 5,314 5,444 5,461 4,617 4,445 5,004 4,821 4,354 1 Total Averages of UCR Crimes per 1,000 Population Violent Crimes per 1,000 4.9 4.4 4.7 5.1 6.5 4.7 4.7 4.0 4.6 4.1 1 Non-Violent Crimes per 1,000 60.0 64.7 60.8 62.2 63.4 50.7 48.8 56.4 52.5 47.0 1 All UCR Crime per 1,000 64.9 69.1 65.5 67.3 69.9 55.4 53.5 60.4 57.1 51.2 1 Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 4 Fire (Fiscal Year) Incident Reponses 12,113 12,152 12,979 13,428 14,387 14,450 14,147 14,558 15,700 24,960 Inspections/Preplanning Property Visits (excludes Public Nuisance inspections) 2,943 1,072 1,460 2,972 2,871 2,345 1,762 1,851 2,044 1,355 Fire Investigations 2 2 2 49 46 53 51 46 46 36 Fire Investigation Hours 395 226 386 670 245 416 389 224 292 234 Public Education Hours 793 635 990 382 255 190 257 132 187 167 1 2 Information not available for prior years. 3 Police information is presented for the calendar year. 4 Fire information is presented for the fiscal year. Notes: Information on this report presents available indicators of demand or level of service. Sources: Ogden City Police Department, Uniform Crime Report http://www.ucrdatatool.gov/ Ogden City Fire Department Data from previous years revised to reflect UCR totals as reported by FBI. Information reported in prior years may be iniatially reported as projected and later revised to actual. 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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 1 1 1 1 133 139 151 148 100 109 units 1 1 1 1 8 8 8 8 8 8 Animal control units 1 1 1 1 3 3 3 3 3 3 Fire Stations 5 5 5 5 5 5 5 5 5 5 Ladder trucks 1 1 1 1 2 2 2 2 2 2 Pumper trucks 1 1 1 1 5 5 7 9 7 7 Ambulances 1 1 1 1 7 7 7 9 9 8 Street Streets (miles) 292 273 273 305 305 311 311 311 311 312 Curb and gutter (miles) 1 1 1 1 481 485 512 512 519 520 Sidewalk (miles) 1 1 1 1 316 333 359 359 366 366 Streetlights 2,965 2,965 2,965 3,619 3,619 2,830 3,300 3,550 966 966 Traffic signals 1 1 1 1 75 86 88 90 90 91 Parks and recreation Community centers 1 1 1 1 2 2 1 1 1 1 Parks 39 39 40 39 41 41 43 43 44 44 Park acreage 238.52 238.52 238.67 238.52 242.87 242.87 250.22 250.22 253.22 253.22 Covered picnic areas 1 1 1 1 29 29 30 30 30 30 Baseball/Softball diamonds 1 1 1 1 23 23 23 23 23 23 Soccer fields 1 1 1 1 10 10 10 12 12 12 Tennis courts 1 1 1 1 14 14 14 14 14 14 Pickleball Courts 1 1 1 1 - - - - 8 8 Skate Park 1 1 1 1 1 1 1 1 1 1 Swimming pools 1 1 1 1 2 2 1 1 1 1 Gymnasiums 1 1 1 1 1 1 - - - - Sewer Sanitary sewers (miles) 335 335 335 335 335 247 247 232 232 283 Storm sewers (miles) 116 116 116 116 116 106 136 147 145 144 Water Water lines (miles) 350 350 350 350 350 280 324 327 359 347 Fire hydrants 1 1 1 1 2,372 2,372 2,680 2,684 2,766 2,920 Source: Various City Departmental Data 1 Information in prior years provided as available 142 ---PAGE BREAK--- OGDEN CITY CORPORATION MISCELLANEOUS STATISTICS June 30, 2013 (UNAUDITED) 2003 Comparative Data Date of Incorporation: February 6, 1851 Form of government: Council - Mayor Area (in square miles): 27 27 Miles of streets: 312 303 Number of street lights: 966 2,965 Fire protection: Number of stations 5 5 Number of firemen and officers 113 110 Police protection: Number of stations 1 1 Number of policemen and officers 132 124 (Does not include reserve police officers) Ogden School District: Elementary schools 14 15 Total number of schools 20 1 Number of elementary teachers 345 341 Total number of teachers 913 1 Number of elementary students 7,280 6,502 Total number of students 12,486 13,141 Municipal water department: Number of consumers 23,794 2 22,755 Average Daily Consumption (gallons) 12,497,226 12,197,192 Miles of water mains 347 350 Sewers: Sanitary sewers (in miles) 283 335 Storm sewers (in miles) 144 116 Building permits issued: 2,351 1,828 Recreation and culture: Number of parks 44 39 Total park acreage 253.22 238.52 Number of libraries 1 1 Number of event permits 125 1 Employees: Classified service 533 514 Exempt 191 289 1 Not available for 2003 2 Information not available for FY2013 year end; consumers as of 11/1/2013 Sources: Various Ogden City departments Ogden School District Weber County Library 143 ---PAGE BREAK--- Coverage Carrier Limits Deductible Expiration Date Description LIABILITY URMMA - Per Joint Protection Agreement General Liability $6,000,000 $15,000 July 1, 2013 Law Inforcement Liability Included $6,000,000 $15,000 July 1, 2013 Public Office Liability Included $6,000,000 $15,000 July 1, 2013 Planning & Zoning Incl. Auto Liability Included $6,000,000 $15,000 July 1, 2013 Bodily Injury & Property Damage Uninsured Motorist Underinsured Motorist Commerce & Industry Covers General Liability Industry occurrences at Airport Contractual $25,000,000 0 Premium $ 10,846.00 Ground Hangar Keepers $25,000,000 $1,000 Off-Duty Auto Liability Great American $1,000,000 0 July 1, 2013 Automobile Liability coverage for Off-Duty Vehicle Usage 33 Limited 135 Unlimited Positions Covered **Property Package $10,000 Covers buildings and contents listed on statement of values as a result of covered causes of loss. Blanket Real & Personal Property Other Deductibles On file with company. (Bldg & Contents) Including “Boiler” Equipment Breakdown **Earthquake Included Included 1% or Covers City properties $100,000 from an Earthquake or Flood Included Included Flood. $100,000 **Mobile Eq. & EDP Covers City Owned Scheduled & Unscheduled Mobile Eq. & EDP as a result of covered causes of loss. Included in above Included Covers cost to research Property Package and restore lost information from a covered cause of loss.** **Business Interruption Included in above Included Covers loss of income for (Municipal Building Property Package Baseball Stadium as required by City contract.** Authority) **Auto Physical Damage $1,000 Covers property damage Vehicles Under $50,000. 9 Scheduled to scheduled owned city vehicles including Strike Force Vehicles. Comp & Collision Perils Vehicles **TOTAL COMBINED GROUP PURCHASED PREMIUM $216,702.00 Vehicles Over $50,000. Comp & Collision Perils $1,737,400 $25,000 Parked Autos $5,853,500 $10,000 Schedule of Insurance as of June 30, 2013 July 1, 2013 Great American 24Hrs July 1, 2013 **Valuable Papers $10,000 July 1, 2013 Lexington Ins. $164,384,158 July 1, 2013 July 1,2013 Included Included $10,000 July 1, 2013 Covers bodily injury, property damage, personal injury, errors and omissions, and personal injury protection. This is a Claims Made policy. Excludes Airport. HANDLED DIRECTLY BY URMMA. Annual Premium Invoiced & Paid to URMMA Directly. Airport Liability $25,000,000 0 July 1, 2013 144 ---PAGE BREAK--- Expiration Date Commercial Crime Employee Theft, Faithful Performance of Duty Including Forgery, Alterations & Computer Fraud Coverage Travelers Insurance $1,000,000 $25,000 1-Jul-13 Covers loss caused through failure of any employee to perform duties faithfully or account properly for all monies and property received. Premium $7,907.00 Money & Securities In & Outside $50,000 Covers loss caused through failure of City Treasurer to perform duties faithfully or to account properly for all monies. Public Official Bond N/A July 1,2013 Premium $8,785. 00 Michael D. Goodwin, Treasurer Excess Workers Safety National Statutory $750,000 July 1, 2013 Coverage for employee Compensation Insurance Co. Work Comp; Self Insured accident or illness per workers compensation law above self insured retention limit. Premium $57,670.00 $1,000,000 Retention Employers Liability General Liability Great American $1,000,000 No July 1, 2013 Covers Liability For (2 )Parking Structures Insurance Each Deductible North & South Parking Occurrence Structures. Premium $8,161.00 Liquor Liability Mt. Vernon Fire No July 1, 2013 Covers City Liability Ins. Group Deductible for serving alcohol. Elmonte & Mt. Ogden Premium $2,157.00 Golf Courses Liquor Liability Scottsdale No Covers City Liability Insurance Deductible for serving alcohol. 4th Street Baseball Park Premium $1,148.00 Commercial General No Covers City Liability Liability - “Bike Park” Deductible for City Park Premium $5,243.00 Commercial Auto Scottsdale No Covers City Liability Liability – 1 Vehicle Indemnity Deductible while transporting people to adventure sites in Ogden Premium $1,211.00 Driven By – Weber State College Employees Commercial Auto Scottsdale No Covers Excess Liability Excess Liability Indemnity Deductible over primary policy transporting to 1 Vehicle Adventure sites in Ogden. Driven By – Weber State Premium $750.00 College Employees Commercial Auto Scottsdale No May 20, 2013 Covers City Liability Liability Indemnity Deductible while transporting 47 Leased buses from 1 Day Marathon Runners. Weber School District Coverage 1 Day Special Event (Ogden Marathon) Premium $6,541.00 Commercial Auto Scottsdale $1,000,000 No May 20, 2013 Excess over $1,000,000 Excess Liability Indeminity Excess Limit Deductible primary policy. Transporting Marathon Runners – 1 Day Evt. Premium $313.00 47 Leased buses from 1 Day Weber School District Coverage (Ogden Marathon) Professional Liability $2,500 Covers Contracted Deductible Employee for Professional Services Per Signed Contract Premium $1,438.00 SC Reid - Contracted City Consultant Coverage Carrier Limits Deductible Description $1,000,000 June 24, 2013 $1,000,000 June 24, 2013 $1,000,000 Travelers Insurance $2,700,000 $1,000,000 Markel Insurance $1,000,000 Oct 31, 2013 $1,000,000 July 1, 2013 Great American $1,000,000 July 1, 2013 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 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 2013 83,793 580 6.92 1 Population estimates are from the U.S. Census Bureau FY 2013 population is the July 1, 2012 estimate). Population from the 2000 census was 77,226. The population figures have been revised to bring them more in line with the census. FY 2011 population is from the 2010 census. 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--- PROPOSED ADDITIONAL INFORMATION (Unaudited) 147 ---PAGE BREAK--- OGDEN CITY CORPORATION SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION SANITARY AND STORM SEWER UTILITY Year Ended June 30, 2013 Sanitary Storm Total OPERATING REVENUES: Charges for services $ 10,097,700 4,297,745 $ 14,395,445 Miscellaneous income 45,123 - 45,123 Total revenue 10,142,823 4,297,745 14,440,568 OPERATING EXPENSES: Personal services: Salaries and wages 323,138 431,594 754,732 Benefits 167,513 214,871 382,384 Supplies: Office supplies 523 401 924 Operating supplies 15,128 8,270 23,398 Repair and maintenance supplies 13,436 2,898 16,334 Charges for services: Sewer district charges 4,915,725 - 4,915,725 Public utility services 3,305 1,851 5,156 Travel and education 3,528 1,602 5,130 Contracted agreements 770,430 516,525 1,286,955 Other operating expenses: Rental charges 45,938 15,356 61,294 Fiscal charges 1,684,450 819,350 2,503,800 Depreciation / amortization 519,553 243,435 762,988 Data processing and computer equipment 50,300 10,650 60,950 Maintenance and repair 178,386 384,106 562,492 Vehicle operating expenses 135,849 208,194 344,043 Miscellaneous 636 522 1,158 Total operating expenses 8,827,838 2,859,625 11,687,463 Operating income (loss) 1,314,985 1,438,120 2,753,105 NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income 76,499 32,785 109,284 Grants and donations - 52,955 52,955 Expenses: Interest expense (469,552) (55,534) (525,086) Total non-operating revenues (expenses) (393,053) 30,206 (362,847) Capital contributions 385,989 1,149,792 1,535,781 Income before transfers 1,307,921 2,618,118 3,926,039 Transfers out (6,535) (20,812) (27,347) Change in net assets 1,301,386 2,597,306 3,898,692 Net position, beginning 38,840,624 Net position, ending $ $ $ 42,739,316 Notes: Interest income is allocated between Sanitary Sewer and Storm Sewer operations based on percent of charges for services revenues attributable to each operation. The City financial system accounts for Sanitary and Storm Sewer revenue and expenses in the same fund, however the account structure within that fund tracks each functions operations separately. Amounts on the Balance Sheet for the Sewer Utility have not been distinguished as Sanitary or Storm Sewer assets, liabilities and net position. This makes it difficult to determine the portion of net position attributable to Sanitary Sewer and the portion attributable to Storm Sewer. Based on a 5 year history, the average income attributed to Sanitary Sewer is 64.3 percent and 35.7 precent to Storm Sewer operations. Sanitary Storm Total Net position, ending (based on allocation) $ 27,481,380 $ 15,257,936 $ 42,739,316 64.30% 35.70% 148