Document Ogden_doc_9721600c6b

Comprehensive Annual Financial Report Year Ended June 30, 2014 ---PAGE BREAK--- ---PAGE BREAK--- COMPREHENSIVE ANNUAL FINANCIAL REPORT OF OGDEN CITY CORPORATION Year Ended June 30, 2014 Ogden, Utah Mayor Michael P. Caldwell City Council Bart E. Blair Neil K. Garner Caitlin K. Gochnour Richard Hyer Doug Stephens Marcia White Amy L. Wicks Prepared by: Department of Management Services David G. Buxton, Director Laurie Johnson, Comptroller/Treasurer Lisa Stout, CPA, Assistant Comptroller Camille Cook, Senior Analyst Korahle Jensen, Senior Accountant Gabe Johns, Senior Accountant Cindi Hellewell, Accounting Technician Marci Grover, Accountant 1 ---PAGE BREAK--- OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2014 Table of Contents Introductory Section Title Page 1 Table of Contents 2 Letter of Transmittal 4 GFOA Certificate of Achievement 11 Ogden City Organization Chart 12 Principal City Officials 13 Financial Section Independent Auditors’ Report 17 Management's Discussion and Analysis (Unaudited) 21 Basic Financial Statements Government‐wide Financial Statements Statement of Net Position 35 Statement of Activities 38 Governmental Fund Financial Statements Balance Sheet 42 Reconciliation of the Balance Sheet ‐ Governmental Funds to the Statement of Net Position 43 Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Fund 44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances ‐ Governmental Funds to the Statement of Activities 45 Proprietary Fund Financial Statements Statement of Net Position 48 Statement of Revenues, Expenditures and Changes in Net Position 52 Statement of Cash Flows 54 Notes to the Financial Statements 58 Required Supplementary Information Budgetary Comparison Schedule – General Fund 92 Budgetary Comparison Schedule – Ogden Redevelopment Agency (Special Revenue Fund) 94 Notes to Required Supplementary Information 95 Information About Infrastructure Assets Reported using the Modified Approach 97 Supplementary Information ‐ Combining Statements Governmental Funds Nonmajor Governmental Funds Combining Balance Sheet 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 103 Budgetary Comparison Schedule ‐ Capital Improvement Projects 104 Budgetary Comparison Schedule ‐ Debt Service 105 Budgetary Comparison Schedule – Municipal Building Authority 106 Budgetary Comparison Schedule – Downtown Special Assessment 107 Budgetary Comparison Schedule – Cemetery Perpetual Care 108 Budgetary Comparison Schedule – Permanent Trust Gomer A. Nicholas 109 2 ---PAGE BREAK--- OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2014 Table of Contents, Continued Proprietary Funds Nonmajor Enterprise Funds Combining Statement of Net Position 112 Combining Statement of Revenues, Expenditures and Changes in Net Position 114 Combining Statement of Cash Flows 116 Internal Service Funds Combining Statement of Net Position 120 Combining Statement of Revenues, Expenditures and Changes in Net Position 121 Combining Statement of Cash Flows 122 State of Utah – Impact Fees 123 Statistical Section (Unaudited) Financial Trends 129 Net Position by Component 131 Changes in Net Position Changes in Fund Balances, Governmental Funds 134 Fund Balances, Governmental Funds 136 Revenue Capacity 137 Assessed and Estimated Actual Value of Taxable Property Principal Taxpayers for the Calendar Year 2013, 2003 139 Property Tax Appropriations and Collections Property Tax Rates, Direct and Overlapping Governments 141 Tax Revenues by Source 142 Debt Capacity 143 Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding to Assessed Value and Per Capital 145 Computation of Direct and Overlapping Debt Computation of Legal Debt Margin 147 Revenue Bond Coverage ‐ Water Utility Revenue Bond Coverage ‐ Sewer Utility 149 Revenue Bond Coverage ‐ Refuse Utility 150 Industrial Revenue Bonds Outstanding 151 Demographic and Economic Information 153 Demographic and Economic Statistics 154 Largest Employers Operating Information 157 Full‐Time Authorized Employees Summary by Program Operating Indicators by Function/Program Capital Assets Statistics by Function/Program 160 Miscellaneous Statistics 161 Schedule of Insurance Coverage 162 Staff per 1,000 Residents Proposed Additional Information 165 Schedule of net position, sanitary and storm sewer Schedule of revenues, expenses, and changes in net position, sanitary and storm sewer 3 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal December 16, 2014 Citizens, Honorable Mayor and Members of the City Council City of Ogden Ogden, Utah 84401 Dear Citizens, Mayor and Members of the City Council: In accordance with Section 10‐6‐150 of the Utah Code Unannotated 1993 you are being provided the Fiscal Year 2013‐2014 Comprehensive Annual Financial Report of the City of Ogden. This report has been formatted to comply with the financial reporting standards developed by the Governmental Accounting Standards Board (GASB). This report includes Government‐Wide Financial Statements. The Government‐Wide Financial Statements include a statement of net assets that provide the total net assets of the government, including all capital assets (including infrastructure) and the statement of activities that shows the cost of providing government services. Additional information can be found in Management’s Discussion and Analysis which begins on page 21. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with City management. To the best of our knowledge, the enclosed data is accurate in all material respects and is reported in a manner designed to fairly present the financial position and results of operations of the City's various activities. These assertions are based upon a comprehensive framework of internal control that has been established for this purpose. The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial and Statistical. The Introductory Section includes the title page, the table of contents, this transmittal letter, the City's organization chart, a list of principal officers, and the Certificate of Achievement for Excellence in Financial Reporting for the 2013 Comprehensive Annual Financial Report. The Financial Section includes the basic financial statements and the combining and individual fund financial statements and schedules, as well as the auditors’ report on the financial statements and schedules which begins on page 17. This section also includes the management’s discussion and analysis (MD&A). The Statistical Section includes selected financial and demographic information presented on a multiyear basis where available. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1996 and U.S. Office of Management and Budget Circular A‐133, Audits of States, Local Governments, and Non‐Profit Organizations. Information related to this single audit, including the Schedule of Expenditures of Federal Awards, findings and recommendations, and auditors’ reports on the internal control structure and compliance with applicable laws and regulations are included in a separate Single Audit report. REPORTING ENTITY AND ITS SERVICES The City of Ogden, Utah was incorporated on February 6, 1851 and is defined as a city of the second class as defined in Title 10 of the Utah Code. The City is located in the northern part of the state and serves a population of over 82,000 residents and is the largest city in Weber County. The City functions under a strong mayor form of government. Under this form of government the Mayor is elected to a full‐time position as the Chief Executive over the administration of the City. The City Council serves as the legislative arm of the government and approves and adopts the annual budget. This report includes all of the City's funds. The City provides a full range of services. Services provided by the City under general governmental functions include police and fire protection, planning and engineering, code enforcement, street maintenance, traffic control, parks operation and maintenance, recreation services, community development, and general administrative services. In addition, water services, sewer services, solid waste collection and disposal services, the golf courses, certain recreational programs, BDO activities, ambulance and paramedic services are provided under an enterprise fund concept, with user charges set by the City Council to ensure adequate coverage of operating expenses and payments on 4 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal outstanding debt. The Municipal Airport is handled as an enterprise fund supported, in part, by contributions from the General Fund. Fleet/facilities operations, information technology systems and risk management are handled through internal service funds. The Tax Increment Districts of the Ogden Redevelopment Agency are reported as a Special Revenue Fund in this report. The Municipal Building Authority, Cemetery Perpetual Care and the Downtown Ogden Special Improvement District are also reported as Special Revenue Funds. The Capital Projects fund is used to account for projects approved in the City’s Capital Improvement Plan. The Gomer A. Nicholas Park Endowment is reported as a permanent fund. The interest from this fund is used to improve the City’s parks system. ACCOUNTING SYSTEM AND BUDGETARY CONTROL In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: the safeguarding of assets against loss from unauthorized use or disposition; and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: the cost of control should not exceed the benefits likely to be derived; and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. As a part of the City's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal awards, as well as to determine that the City has complied with applicable laws and regulations. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of all funds used by the City are included in the annual appropriated budget. Project‐length financial plans are adopted for the Capital Improvement Projects Fund. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within an individual fund. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year‐end. However, encumbrances are generally re‐appropriated as part of the following year's budget, and reserves for such are indicated as a portion of fund balances. ECONOMIC CONDITION AND FINANCIAL PLAN The national gross domestic product (GDP) posted a growth rate of 2.4% in August of 2014. Ogden City’s sales tax growth during FY 2014 was 3.64%. Ogden City is in a better financial position at the end of FY 2014, due in part to conservative spending and increased revenues. Projections in the FY 2015 budget are conservative yet optimistic, due to steady economic growth. There is optimism nationally as well, whereas Goldman Sachs is predicting the United States economy will grow at a rate of 3.1% as compared to 2.2% in 2014. While the City is expecting moderate economic growth, it will monitor actual revenues received on a basis to ensure that expenditures do not exceed generated revenues. The City monitors revenues and expenses through a committee that meets to review the results of operations, as well as discusses economic concerns, development, legislative actions that may affect the City and future economic conditions and trends. The City budgets ongoing revenues, such as sales tax, property tax and other taxes and fees for operating uses. One time revenue sources, such as grants are considered separately and only budgeted for the period and use available. The City also uses a financial planner to help determine the sufficiency of the Utility rates that are in place to ensure future operation and replacement needs can be met. ECONOMIC DEVELOPMENT 5 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal Ogden consistently attracts global business and world‐class events to the area with our unique mix of outdoor recreation, burgeoning business, and vibrant, active lifestyle; and our continued commitment to revitalize Ogden has positioned the City once again in the national and world spotlights. Forbes ranks Ogden No. 11 in its “Best Places for Business and Careers.” The report says “Ogden business costs are fourth lowest in the U.S. and high school attainment is off the charts.” Ogden ranks third in Forbes’ 2014 list of “America’s Best Places to Raise a Family” and also makes Forbes’ list of “The Best 25 Places to Retire.” The American Planning Association names Ogden’s 25th Street in its “Great Places in America: Streets” report for its “most complete contiguous collection of turn‐of‐the‐century commercial architecture in Utah,” adding “but it’s the stories behind the buildings that make the street unique.” During the summer of 2014, the City engaged in a revitalization and beautification project of the downtown corridors that focused on using volunteers to complete much of this work. NerdWallet, a consumer advocacy website based in San Francisco, ranks Ogden second best medium‐sized metropolitan area in the country for homeownership. Ogden is named in the “Top 20 U.S. Cities for Tech Startups” (Associated Press, Oct. 23, 2014) and comes in at number three in the “Top 5 U.S. Cities for Young Computer Professionals” (changetheequation.org, Oct. 16, 2014). Still Ogden’s “low‐key vibe” at local ski resorts and its “greatest snow on earth” continue to get attention from well‐known media such as USA Today (Jan. 17, 2014), US Airways Magazine (Feb. 2014), Dallas Morning News (March 7, 2014), DCSki.com (May, 24, 2014), Backcountry Magazine (Sept. and Oct. 2014), and Outside Online (Oct. 7, 2014) among others. Economic development efforts in Ogden are diligent and progressing with great momentum. The City has undertaken many strategies that have led to promising results for Ogden, and all redevelopment activities are made with serious analysis of potential benefits and a watchful eye toward current and future prosperity for residents. Calculated efforts to attract, develop, and retain business in the area has resulted in more than 1,085 new jobs in this fiscal year. Additional jobs have been retained and still more companies have committed to expansions in the coming years. Businesses recruited to or expanding in the area include: Northrup Grumman, Purch, Osprey Packs, Esurance, Answer Financial, WebNX, Rhema Health Products, Wells Fargo Financial Advisors, Volagi, Mercury Wheels, Lincoln Title, America First Credit Union, Warren’s CraftBurger/Century Club, Corner Bakery Café, Walgreens, Crossroads Skatepark and Shop, Zaxby’s, and Burlington Coat Factory. Ongoing development projects target specific areas to remove blight, clean up and beautify the environment, stimulate entrepreneurial activity, and attract investment and developers. Ogden Riverbend is a master planned redevelopment community along the Ogden River will offer multiple housing types in a walkable neighborhood setting. Restaurants and retail will enhance this mixed‐use community. The river experience is being enhanced with parks, open spaces, and trail systems providing recreational opportunities, including the High Adventure Park with unique playground amenities and features. Oak Den Bungalows is planned to be exclusive housing development located in the heart of Ogden's Central Bench Historic District. Green building practices have been incorporated into the plan with historic architectural features to create homes that offer a high quality of life and low cost of living. 6 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal The City held a ground breaking for the Ogden Business Exchange in Fiscal Year 2015. The Ogden Business Exchange is a planned business park located on 51 acres at the historic Ogden Union Stockyards. Designed to be more than a collection of buildings and roads for technology companies and industry, its proximity to walking and biking paths along the Weber River encourages a connection to the active outdoor recreation lifestyle that abounds in Ogden. A unique layout is planned to embody the history of the site through open space development and preservation of important elements. The Ogden Business Exchange will take several years to complete. As different business clusters are being established in the area, business development strategies are helping to foster their success. While cluster recruiting of bicycle manufacturers continues with a recruiting trip to Taiwan and hosting world‐class events in Ogden like Scenic Tour of Utah and QBP Fat Bike Summit and Dealer Camp, new business clusters are emerging and gaining traction. Mobile Apps Lab (Startup Ogden) is located within the new Weber State Downtown campus building offering entrepreneurs the opportunity to network with other technology minds while building, testing, and taking to market software applications for mobile devices. The State of Utah’s STEM Action Center awarded Ogden School District and its partners a grant in connection with the STEM initiative. The STEM initiative is a coordination of workforce, education, and industry partners to establish a spark of interest in young students in science, technology, engineering, and math disciplines to augment the anticipated new jobs expected to come to Ogden that will require STEM graduates. Formal training programs are being established with Ogden‐Weber Applied Tech College to help train for non‐destructive inspection and advanced composites jobs. Developing the community and fostering the sense of community helps to retain the eclectic culture of Ogden’s people. Work began on the Lantern House homeless shelter during fiscal year 2014. The City has supported this project by building a new detention basin on site, adding curb, butter, and sidewalks and paving Pacific Boulevard. The City undertook two new bonds during fiscal year 2014 in order to begin construction on a new water filter plant and to eliminate flooding on a main corridor through the City and to expand the storm water system and capacity. The new water filter plant will use state of the art technology to provide improved filtering and protection of the City’s water resources. GOVERNMENT REVENUES Revenues for general governmental functions (General Fund) for the fiscal year ended June 30, 2014 totaled $57,906,915. The amounts of revenue from various sources are shown in the following tabulation: % of % of % of Revenue Source 2014 Total 2013 Total 2012 Total 2011 Taxes 38,091,714 $ 65.8% 37,445,113 $ 65.8% 35,865,785 $ 63.6% 34,557,757 $ Licenses and permits 2,301,809 4.0% 1,789,847 3.1% 2,285,419 4.1% 1,817,655 Intergovernmental 6,822,806 11.8% 7,712,677 13.6% 7,385,017 13.1% 7,806,508 Charges for services 7,228,630 12.5% 6,577,440 11.6% 6,557,954 11.6% 6,225,463 Fines and Forfeitures 2,168,991 3.7% 2,193,546 3.9% 2,930,273 5.2% 2,906,270 Interest income 55,606 0.1% 8,319 0.0% 148,198 0.3% 66,802 Other revenue 1,237,359 2.1% 1,165,783 2.0% 1,238,791 2.2% 1,391,636 57,906,915 $ 100% 56,892,725 $ 100% 56,411,437 $ 100% 54,772,091 $ Change from prior year 1.8% 0.9% 3.0% 0.0% 7 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal Taxes produced 65.8 percent of general revenues. The amount of taxes collected in fiscal year 2014 increased mostly from sales tax and municipal energy sales tax revenue. All areas of tax collection increased during 2014, with the exception of telecommunication taxes. Taxable value of property in Ogden City for calendar year 2013 was $3.77 billion. Included in this amount is $713 million in the tax increment districts. Licenses and permits provided 4 percent of general revenues. The increase from the prior year is due to an adjustment in the fee schedule. Intergovernmental revenues represented 11.8 percent of total general revenue. This represents a 1.8% decrease from the prior year, due to changes in the level of grant revenue received. Charges for services provided 12.5 percent of general revenues which equates to less than one percent increase from the previous year. General participation in these activities changes with economic conditions. Fines and forfeitures provided 3.7 percent of general revenues. Justice court and civil citation activity has decreased over the past year. Interest Income provided 0.1 percent of general revenues. This amount represents a small increase over the previous year. 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, 2014 totaled $56,143,439. Levels of expenditures for major functions of the city are as follows: Expenditures for fiscal year 2014 increased over the prior year. The majority of this increase is attributed to the City covering the increased cost of health care insurance and retirement. Additionally the City awarded a 1 percent bonus and a 2 percent average pay for performance wage increase to employees during 2014. 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 $2,696,349 and $13,481,744 based on next fiscal year's budgeted receipts. The unassigned portion of the General Fund balance at June 30, 2014 is $6,513,407. Expenditure by % of % of % of Function 2014 Total 2013 Total 2012 Total 2011 General Government 9,862,318 $ 17.6% (34,314,996) $ ‐62.7% 9,956,836 $ 18.5% 10,041,095 $ Police and Fire 24,728,817 44.0% 24,124,524 44.1% 23,180,853 43.0% 24,279,450 Public Services 9,928,317 17.7% 9,919,398 18.1% 9,873,168 18.3% 10,897,470 Community and 0.0% Economic Development 9,343,143 16.6% 8,571,079 15.7% 8,394,772 15.6% 9,214,520 Debt Service 2,280,844 4.1% 2,560,274 4.7% 2,473,856 4.6% 2,442,331 56,143,439 $ 100% 54,696,021 $ 20% 53,879,485 $ 100% 56,874,866 $ Change from prior year 2.6% 1.5% ‐5.3% 2.5% 8 ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal ENTERPRISE FUNDS The income before transfers and capital contributions for the enterprise funds for the current and preceding three 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 current and preceding three fiscal years are as follows: DEBT ADMINISTRATION New Debt Issued in Fiscal Year 2014: During fiscal year 2014, the City issued a Series 2013 Storm Drain Revenue Bonds totaling $4,490,000 secured by storm sewer revenue. The City also issued Series 2013 Water and Sewer Bonds totaling $13,225,000 secured by water revenue. 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 $4,075,000 principal outstanding. These bonds mature December 15, 2015. Sales Tax Revenue issued in 2011 have $1,454,000 principal outstanding. These bonds mature March 1, 2026 Tax Increment Revenue bonds have $34,835,000 principal outstanding. These bonds mature by June 2031. Water & Sewer Revenue bonds issued in 2009 have $4,090,000 principal outstanding. These bonds mature June 15, 2024. Water & Sewer Revenue bonds issued in 2008 have $43,940,000 principal outstanding. These bonds mature June 15, 2038. Water & Sewer Revenue bonds issued in 2013 have $12,755,000 principal outstanding. These bonds mature June 15, 2033. Water Revenue bonds issued in 2012 have $3,840,000 principal outstanding. These bonds mature June 15, 2033 Income (loss) before transfers and % % % capital contributions 2014 Change 2013 Change 2012 Change 2011 Water Utility 2,613,451 $ ‐31.1% 3,793,285 $ 11.1% 3,415,763 $ 278.2% 903,064 $ Sewer Utility 2,182,927 ‐8.7% 2,390,258 ‐36.9% 3,789,038 24.3% 3,048,011 Refuse Collection 996,044 37.8% 722,673 81.6% 397,913 ‐7.9% 431,949 Business Depot Ogden (3,047,884) ‐301.0% (760,153) ‐31.4% (1,108,348) ‐216.8% (349,891) Municipal Airport (566,885) ‐138.0% 1,492,138 189.3% (1,670,682) ‐16.3% (1,436,198) Golf Courses (60,208) 78.0% (273,635) ‐15.8% (236,230) 21.9% (302,661) Recreation (19,553) ‐141.2% 47,470 782.8% (6,952) 77.4% (30,747) Dinosaur Park ‐ ‐100.0% 83 101.9% (4,285) 98.5% (279,224) Medical Services 763,335 ‐4.2% 797,025 ‐54.1% 1,736,820 202.8% 573,540 Unrestricted % % % Net Position 2014 Change 2013 Change 2012 Change 2011 Water Utility 8,920,663 $ 10.3% 8,089,476 $ ‐7.9% 8,779,378 $ 257.2% 2,458,174 $ Sewer Utility 18,514,015 22.8% 18,011,400 19.4% 15,081,839 37.9% 10,938,700 Refuse Collection 3,025,512 8.1% 2,799,724 26.1% 2,220,522 191.5% 761,791 Business Depot Ogden 9,744,785 3.6% 9,409,399 18.5% 7,943,621 4.4% 7,612,368 Municipal Airport (2,138,051) 0.7% (2,122,551) ‐26.5% (1,678,284) 16.4% (2,006,473) Golf Courses 105,506 124.9% (423,539) 46.7% (794,518) 8.8% (871,210) Recreation 28,970 ‐36.3% 45,485 ‐61.4% 117,775 ‐4.3% 123,075 Dinosaur Park (27,795) 0.0% (27,795) 0.3% (27,878) 18.2% (23,593) Medical Services 3,812,435 18.8% 3,208,148 ‐15.8% 3,808,334 84.5% 2,064,017 9 ---PAGE BREAK--- 10 ---PAGE BREAK--- 11 ---PAGE BREAK--- CITY COUNCIL (Elected Officials) MAYOR (Elected Official) COUNCIL EXECUTIVE DIRECTOR (Appointed Position) CHIEF ADMIN OFFICER (Appointed Position) CITY ATTORNEY (Appointed Position) FIRE CHIEF (Appointed Position) POLICE CHIEF (Appointed Position) PUBLIC SERVICES DIRECTOR (Appointed Position) COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR (Appointed Position) MANAGEMENT SERVICES DIRECTOR (Appointed Position) OGDEN CITY CORPORATION ORGANIZATIONAL STRUCTURE ADMINISTRATION COMPTROLLER FISCAL OPERATIONS HUMAN RESOURCES RECORDER FLEET & FACILITIES INFORMATION TECHNOLOGY RISK MANAGEMENT JUSTICE COURT ADMINISTRATION CEMETERY RECREATION ENGINEERING GOLF COURSES WATER UTILITY SEWER UTILITY SANITATION OPERATIONS ADMINISTRATION PREVENTION OPERATIONS MEDICAL SERVICES ADMINISTRATION SUPPORT SERVICES UNIFORM ADMINISTRATION PLANNING COMMUNITY DEVELOPMENT BUSINESS SERVICES ARTS, CUTLURE & EVENTS AIRPORT BDO BUILDING SERVICES ANIMAL SERVICES CODE SERVICES CITIZENS of OGDEN CITY INVESTIGATIONS PUBLIC WAYS & PARKS BUSINESS DEVELOPMENT COUNCIL STAFF ATTORNEY STAFF 12 ---PAGE BREAK--- OGDEN CITY CORPORATION PRINCIPAL CITY OFFICIALS June 30, 2014 Michael P. Caldwell Richard Hyer Mayor Council Member, Chair Caitlin Gouchnour Bart E. Blair Neil K. Garner Council Member, Vice Chair Council Member Council Member Doug Stephens Marcia White Amy L. Wicks Council Member Council Member Council Member Ogden City Department Heads Name Chief Administrative Officer Mark L. Johnson City Council Executive Director William B. Cook City Attorney Gary Williams Management Services Director/Budget Officer 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 Additional Administrative Officials City Recorder Tracy Hansen Finance Manager/City Treasurer Laurie Johnson City Engineer Justin Anderson Building Official Steven Patrick Court Administrator Paula Carr 13 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 14 ---PAGE BREAK--- Financial Section 15 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 16 ---PAGE BREAK--- www.eidebailly.com 5 Triad Center, Ste. 600 I Salt Lake City, UT 84180-1106 I T [PHONE REDACTED] I F [PHONE REDACTED] I EOE Independent Auditor’s Report To the Mayor and Members of the City Council Ogden City Corporation Ogden, UT Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Ogden City Corporation (the City) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2014, 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. 17 ---PAGE BREAK--- Effect of Adopting New Accounting Standard As described in Note 17 to the financial statements, during the year ended June 30, 2014, the City retrospectively adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. In connection with the adoption of this new standard, the accompanying financial statements present a retroactive restatement of the previously reported net position. Also, the City reclassified unavailable property tax revenue from liabilities to deferred inflow of resources (see Note 1 to the financial statements). Our opinions are not modified with respect to these matters. 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 21 through 31 and 92 through 98 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 schedules, 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 schedules 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 schedules and other supplemental budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 18 ---PAGE BREAK--- Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 16, 2014 on our consideration of Ogden City Corporation’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. Salt Lake City, Utah December 16, 2014 19 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 20 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 INTRODUCTION The following is a discussion and analysis of Ogden City’s financial performance and activities for the year ended June 30, 2014. 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 $20,107,563 or 5.82 percent from the prior year. Net position of governmental activities increased $15,411,549 or 10.97 percent, and net position of business‐ type activities increased by $4,696,014 or 2.29 percent. Fund Level  Fund balances in the City’s governmental funds increased $2,732,328 or 13.34 percent from the prior year. Revenue in most governmental funds met budgeted expectations with the exception of the Redevelopment Agency.  Property tax revenues increased $317,591 or 1.36 percent over the prior year due to increased values, however did not increase enough to meet expectation in the Redevelopment areas as of January 2014, when property taxes are assessed. The City’s total sales taxes increased $541,012 or 3.85 percent from the previous year. The City’s license and permit revenue increased $511,962 or 11.54 percent. 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 Series 2013 Storm Drain Revenue Bonds, the Series 2013 Water Sewer Revenue Bonds and capital lease financing for the purchase of vehicles and equipment.  The Sewer Fund issued new storm drain revenue bonds during fiscal year 2014 of $4,490,000 to finance improvements the existing storm drain system. The Series 2013 Storm Drain Bonds are state interest bonds with fixed interest rates ranging from 2.0 to 5.25 percent. These bonds will be paid off in June of 2033.  The Water Fund issued new water revenue bonds during fiscal year 2014 of $13,225,000 to finance improvement to the existing culinary water system. The City is using the bond proceeds to constructing a new water treatment plant in Ogden Canyon to serve the City. The Series 2013 Water Sewer Bonds are stated interest bonds with fixed interest rates ranging from 2.0 to 5.25 percent. These bonds will be paid off in June of 2038.  The City refinanced an existing capital lease during fiscal year 2014 of $2,463,030 accounted for in the Fleet, Facilities, Electronics and Stores Internal Service Fund. The purpose of the refinance was to obtain a lower rate of interest and pay off the existing lease, using multiple leases totaling $2,463,030 all of which will be paid in May of 2017. The use of multiple leases for the refinance allowed the City to dispose of part of the equipment used as lease security under the original lease. The City was in the process of trading in and refinancing two of these capital leases at June 30, 2014. Additionally the City purchased new police vehicles during fiscal year 2014 through a capital lease of $921,906 that will be paid off in April of 2016. 21 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 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 35 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 deferred inflow of resources ‐ 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, refuse, recreation and property management. Fund Financial Statements ‐ Reporting the City’s Most Significant Funds The fund financial statements beginning on page 42 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. 22 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 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 43 and 45 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.  Depreciation expense on capital assets is included on the government‐wide statements, but is not reported on the governmental fund statements.  Contributions of capital assets made to the government are reported on the government‐wide statements, but are not reported 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 58 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 92 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. 23 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Position The largest component of the City’s net position is net investment in capital assets. This accounts for 83.13 percent of net position and 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 1.25 percent of total net position and is subject to external restrictions on how it may be used. The largest part of restricted net position for the City as a whole relates to grant requirements and how the grant resources may be used. Unrestricted net position is 15.63 percent of total net position. Unrestricted net position for the City increased $12,989,534 or 29.43 percent from the prior year. Ogden City Corporation Net Position June 30 Governmental Business‐type Activities Activities Total 2014 2013 Restated 2014 2013 Restated 2014 2013 Current and other assets $ 62,177,647 $ 59,313,713 $ 66,252,436 $ 54,553,128 $ 128,430,083 $ 113,866,841 Capital assets 186,970,154 181,790,329 226,524,948 220,547,150 413,495,102 402,337,479 Total Assets 249,147,801 241,104,042 292,777,384 275,100,278 541,925,185 516,204,320 Current and other liabilities 27,138,020 27,001,944 7,679,662 9,586,011 34,817,682 36,587,955 Long‐term liabilities 44,468,100 52,854,729 75,375,616 60,488,175 119,843,716 113,342,904 Total Liabilities 71,606,120 79,856,673 83,055,278 70,074,186 154,661,398 149,930,859 Deferred inflows of resources 21,693,584 20,810,821 ‐ ‐ 21,693,584 20,810,821 Net position Invested in capital assets, Net of related debt (restated) 137,742,706 123,243,516 166,139,531 163,995,343 303,882,237 287,238,859 Restricted 2,966,964 12,047,845 1,596,535 2,041,003 4,563,499 14,088,848 Unrestricted 15,138,427 5,145,187 41,986,040 38,989,746 57,124,467 44,134,933 Total Net Position $ 155,848,097 $ 140,436,548 $ 209,722,106 $ 205,026,092 $ 365,570,203 $ 345,462,640 Change from prior year: 10.97% 6.99% 2.29% 3.95% 5.82% 5.17% 24 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 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 – 2014 Ogden City Total Expenses – 2014 25 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 Governmental Activities Tax revenues increased during 2014 by $708,259. Property, sales, and franchise taxes made up the majority of this increase. Net position for governmental activities increased this year by $15,411,549. Expenses before transfers increased over the prior year by $4,392,185. The majority of the expense increase related to general administration and public safety. Ogden City Corporation Changes in Net Position Years Ended June 30 Total Governmental Business‐type Percent Activities Activities Total Change 2014 2013 2014 2013 2014 2013 2013‐2014 Revenues General Revenues Taxes $ 46,518,197 $ 45,809,938 $ ‐ $ ‐ $ 46,518,197 $ 45,809,938 1.5% Other General Revenues 3,131,238 1,219,768 326,267 451,878 3,457,505 1,671,646 51.7% Program Revenues Charges for Services 28,008,865 23,910,195 50,164,446 48,566,280 78,173,311 72,476,475 7.3% Operating Grants 4,064,906 4,895,549 82,825 4,937 4,147,731 4,900,486 ‐18.1% Capital Grants 6,317,596 4,618,131 658,913 3,427,745 6,976,509 8,045,876 ‐15.3% Total Revenues 88,040,802 80,453,581 51,232,451 52,450,840 139,273,253 132,904,421 4.6% Expenses General Administration 25,434,444 20,278,677 ‐ ‐ 25,434,444 20,278,677 20.3% Public Safety 26,854,122 25,562,249 ‐ ‐ 26,854,122 25,562,249 4.8% Transportation 5,500,657 5,578,078 ‐ ‐ 5,500,657 5,578,078 ‐1.4% Environmental Protection 667,371 531,471 ‐ ‐ 667,371 531,471 20.4% Leisure Opportunities 6,140,594 5,970,011 ‐ ‐ 6,140,594 5,970,011 2.8% Community Development 6,854,489 9,216,870 ‐ ‐ 6,854,489 9,216,870 ‐34.5% Interest on Long‐term Debt 1,832,516 1,754,652 ‐ ‐ 1,832,516 1,754,652 4.2% Medical Services ‐ ‐ 5,335,476 5,100,067 5,335,476 5,100,067 4.4% Airport ‐ ‐ 1,616,676 2,306,211 1,616,676 2,306,211 ‐42.7% Utilities ‐ ‐ 28,595,847 26,616,342 28,595,847 26,616,342 6.9% Refuse ‐ ‐ 4,255,556 4,418,293 4,255,556 4,418,293 ‐3.8% Recreation ‐ ‐ 1,409,421 1,498,458 1,409,421 1,498,458 ‐6.3% Property Management ‐ ‐ 4,668,521 4,302,325 4,668,521 4,302,325 7.8% Total Expenses 73,284,193 68,892,008 45,881,497 44,241,696 119,165,689 113,133,704 5.1% Change in Net Position beforeTransfers 14,756,609 11,561,573 5,350,954 8,209,144 20,107,564 19,770,717 1.7% Special item ‐ (2,800,394) ‐ ‐ ‐ (2,800,394) 0.0% Transfers 654,940 412,294 (654,940) (412,294) ‐ ‐ 0.0% Change in Net Position 15,411,549 9,173,473 4,696,014 7,796,850 20,107,563 16,970,323 15.6% Net Position ‐ Beginning (restated) 140,436,548 131,263,075 205,026,092 197,229,242 345,462,640 328,492,317 4.9% Net Position ‐ Ending $ 155,848,097 $ 140,436,548 $ 209,722,106 $ 205,026,092 $ 365,570,203 $ 345,462,640 5.5% The following table shows to what extent the City’s governmental activities relied on taxes and other general revenue to cover their costs. For 2014, these programs generated $38,391,367 or 52.39 percent of total expenses through charges for services and grants. Taxes, other general revenues and fund balance covered the remaining 47.61 percent. 26 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 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 2014 2014 2014 2013 2014 2013 Activities General Administration $ 25,434,444 $ (17,997,423) $ 7,437,021 $ 4,943,158 70.8% 75.6% Public Safety 26,854,122 (5,916,537) 20,937,585 21,011,712 22.0% 17.8% Transportation 5,500,657 (6,193,660) (693,003) 2,638,389 112.6% 52.7% Environmental Protection 667,371 (3,452,737) (2,785,366) (2,359,478) 517.4% 544.0% Leisure Opportunities 6,140,594 (685,878) 5,454,716 4,310,582 11.2% 27.8% Community Development 6,854,489 (4,145,132) 2,709,357 3,169,114 60.5% 65.6% Interest on Long‐term Debt 1,832,516 ‐ 1,832,516 1,754,652 0.0% 0.0% Total Governmental Activities $ 73,284,193 $ (38,391,367) $ 34,892,826 $ 35,468,129 52.4% 48.5% Business‐type Activities The business‐type activities are generating sufficient revenue, before capital contributions and transfers, to cover costs in the water, sewer, refuse and medical funds. Reductions in net position occurred in the BDO property management and airport funds. This combined with non‐operating transfer and capital contribution activities resulted in an increase in net position of $4,696,014 for the combined business activities. CAPITAL ASSETS AND LONG‐TERM DEBT ADMINISTRATION Capital Assets Ogden City added $33,030,653 in new capital assets during 2014. New additions to buildings and improvements, equipment, land, construction in progress, intangibles, and infrastructure were $14,394,682, $8,108,726, $139,039, $8,064,593, $95,651, and $2,227,962, respectively. Overall, construction‐in‐progress increased by $2,912,402. Several projects, mostly related to airport runway improvements, were completed and reclassified during the year, in the amount of $5,152,191. The majority were reclassified from construction‐in‐progress to improvements. New projects were also started during the year increasing construction‐in‐process in the amount of $8,108,726. The majority of the projects were started in the water fund, sewer fund, and governmental activities by $4,513,569, $1,135,352 and $1,876,647, respectively. The City sold, disposed of or traded in $10,044,930 in capital assets, the majority of which were related to vehicles that were traded in on new vehicles and equipment in the amount of $5,320,478. During the year, the BDO Property Management Fund transferred improvements and infrastructure totaling $644,256, $728,553 and $1,116,918 to the water funds, sewer funds and general fixed assets, respectively. During the year outside donations of capital assets were made to the City as improvements and infrastructure. These donated assets were capitalized in the water funds, sewer funds and as general fixed assets in the amounts of $113,814, 170,721 and $284,535, 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 27 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 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 97. 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 2014 the City spent $6,002,118 on infrastructure compared to a budget estimate of $11,390,878. More information about capital assets is included in Note 5 on page 73. Long‐term Debt The City issued the Series 2013 Storm Drain Revenue Bonds for $4,490,000, the Series 2013 Water Sewer Revenue Bonds for $13,225,000 and capital lease financing for $921,906. Note 7 on page 75 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. 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 2014 2013 2014 2013 2014 2013 2013‐2014 General Obligation Bonds $ 5,529,000 $ 7,529,000 $ ‐ $ ‐ $ 5,529,000 $ 7,529,000 ‐26.56% Lease Revenue Bonds 4,121,000 4,442,000 ‐ ‐ 4,121,000 4,442,000 ‐7.23% Tax Increment Revenue Bonds 34,835,000 40,110,000 ‐ ‐ 34,835,000 40,110,000 ‐13.15% Enterprise Revenue Bonds ‐ ‐ 76,601,000 61,644,000 76,601,000 61,644,000 24.26% Notes Payable 1,400,000 1,500,000 ‐ ‐ 1,400,000 1,500,000 ‐6.67% Capital Leases 2,955,172 2,735,530 ‐ ‐ 2,955,172 2,735,530 8.03% Claims payable 1,154,023 1,401,897 ‐ ‐ 1,154,023 1,401,897 ‐17.68% Compensated Absences 3,064,921 3,067,407 916,309 884,169 3,981,230 3,951,576 0.75% Deferred Bond Insurance ‐ ‐ 210,914 162,143 210,914 162,143 30.08% Bond Premium ‐ ‐ 827,967 336,646 827,967 336,646 145.95% Bond Discount (206,330) (223,470) (18,079) (19,886) (224,409) (243,356) ‐7.79% Total $ 52,852,786 $ 60,562,364 $ 78,538,111 $ 63,007,072 $ 131,390,897 $ 123,569,436 6.33% FINANCIAL ANALYSIS OF THE CITY’S FUNDS Fund Balances At June 30, 2014, Ogden City’s governmental funds reported combined fund balances of $23,214,116. An amount of $3,119,846 is classified as nonspendable and includes prepaids, inventory, loans to other funds, and Gomer Nicholas fund principal. An amount of $1,133,343 is reported as spendable‐restricted for debt service, unspent bond proceeds and revolving loan program capital. An amount of $14,405,375 is reported as spendable‐assigned for various purposes as detailed on the face of the governmental funds balance sheet. An amount of $4,555,552 is reported as spendable‐unassigned. It is important to note that included in the 28 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 unassigned amount is the State of Utah required reserve of $2,653,045. The following table presents the City’s fiscal year 2014 ending governmental fund balances. Ogden City Governmental Fund Balances June 30, 2014 General Redevelopment Nonmajor Fund Agency Funds Total Nonspendable $ 2,634,321 $ ‐ $ 485,525 $ 3,119,846 Spendable ‐ restricted 539,484 177,468 416,391 1,133,343 Spendable ‐ assigned 3,284,849 1,763,489 9,357,037 14,405,375 Spendable ‐ unassigned 4,555,552 ‐ ‐ 4,555,552 Total $ 11,014,206 $ 1,940,957 $ 10,258,953 $ 23,214,116 Percent Change from Prior Year: ‐3.12% 165.31% 22.40% 13.34% General Fund During 2014, the fund balance in the General Fund decreased $354,243 or 3.12 percent. Revenues exceeded expenditures, before considering other financing sources and uses, by $1,763,476. Transfers out of the General Fund exceeded transfers into the General Fund by $2,117,719. Revenue in most of the key revenue categories came 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 increased by $1,209,389. Revenues exceeded expenditures, before considering other financing sources and uses, by $3,738,548. The main reason for the increase in fund balance is a result of additional property tax revenue received in redevelopment areas. Transfers out of the RDA exceeded transfers into the RDA by $2,529,159. A large portion of RDA transfers out went directly to the BDO Property Management proprietary fund to pay for infrastructure at the Business Development Ogden business park. Water Fund In the current year, net position increased $3,181,964, primarily as a result of the approved rate increases that went into effect during the fiscal year. The BDO Property Management Fund transferred infrastructure assets totaling $644,256. The water fund also received outside donations in the form of water system improvements of $113,814 as a result of development in the City. Results from operations were positive at $5,259,848. 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. Bond funding was used for the construction of a new water treatment plant was started in Ogden Canyon at the base of Pine View Reservoir. Sewer Fund Net position increased $3,082,201 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 29 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 improvements of $728,553. The sewer fund also received outside donations in the form of sewer system improvements of $170,721 as a result of development in the City. Results of operations were $2,691,265. 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. The Sewer Fund has several large storm drain projects underway, funded with bond proceeds. BDO Property Management Fund Net position decreased by $3,100,884. 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 increased by $607,253 over the prior year. Tax increment transferred to the City, in the BDO Property Management Fund from the RDA increased by $89,590, 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. Nonmajor Governmental Funds Ogden City’s nonmajor governmental funds show a combined increase in fund balance of $1,877,182. This increase is due to budgeted transfers to cover the cost of capital improvement costs in the capital projects fund of $4,829,648. The increase from these transfers in were offset by expenditures in the CIP fund over revenue of $2,896,006. Nonmajor Enterprise Funds The combined change in net position of the nonmajor enterprise funds shows an increase of $2,234,234 from the previous year. The majority of this increase came from the refuse and medical services funds. These funds had an increase in fund balance of $996,044 and $763,335, respectively. The airport, golf courses and recreation funds experienced operating losses of $1,221,290, $62,050 and $19,815, respectively. The City made transfers to the Airport and Golf Course Funds of $232,675 and $545,000, respectively to help fund their operations. The Airport fund received grants of $658,913. Nonmajor enterprise funds had $416,554 of operating income in fiscal year 2014. Depreciation expense accounts for $1,219,830 of operating expense. 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 $10,702,812 during the year. The most significant budget increase was an addition of $4,262,200 for various grants. Actual General Fund revenues were $343,935 or less than 1.0 percent below the original budget and $9,015,808 or 13.45 percent below the final budget. Actual expenditures were $163,942 or .28 percent 30 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2014 below the original budget and $10,866,754 or 15.69 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. The City has started construction on a new water treatment facility to replace the City’s outdated facility. The new facility is expected to be operational in the spring of 2015 to help supply Ogden City’s culinary water need. The new treatment facility will allow the City to better meet EPA requirements and will use micro/membrane filtration technology that will allow for year‐round production. Additionally the water utility is in the process of completing several major upgrades to the water system which are also expected to be completed in spring of 2015. The City was given preliminary approval in August 2014 for a Department of Housing and Urban Development Section 108, Loan Guarantee in the amount of $3,340,000. The proceeds of this loan will be used by the Ogden City RDA in the Trackline Redevelopment Area for the acquisition and development of property. 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. 31 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 32 ---PAGE BREAK--- Basic Financial Section 33 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 34 ---PAGE BREAK--- Governmental Business‐type Activities Activities Total ASSETS Current assets Cash and investments $ 21,869,402 $ 41,022,576 $ 62,891,978 Receivables (net of allowance for uncollectibles): Accounts 4,260,182 7,662,791 11,922,973 Taxes 22,852,403 ‐ 22,852,403 Special assesments 184,683 ‐ 184,683 Interest receivable 90,966 ‐ 90,966 Inventory, at cost 1,134,226 59,352 1,193,578 Prepaid items 45,000 425,462 470,462 Internal balances 198,586 (198,586) ‐ Total current assets 50,635,448 48,971,595 99,607,043 Noncurrent assets Restricted assets: Cash 1,461,400 6,657 1,468,057 Investments 1,003,859 16,466,434 17,470,293 Accounts receivable 96,955 ‐ 96,955 Investments in properties held for sale 404,750 ‐ 404,750 Grant loans and other notes (less allowance for doubtful accounts of $7,825,235) 750,000 750,000 Total restricted assets 3,716,964 16,473,091 20,190,055 Capital assets: Land 19,661,522 37,006,674 56,668,196 Construction‐in‐progress 2,258,438 5,806,154 8,064,592 Infrastructure 103,411,110 ‐ 103,411,110 Buildings and improvements 117,745,783 278,491,621 396,237,404 Machinery and equipment 28,896,869 2,940,048 31,836,917 Intangibles 435,097 717,658 1,152,755 Less: accumulated depreciation (85,438,665) (98,437,207) (183,875,872) Net capital assets 186,970,154 226,524,948 413,495,102 Prepaid bond insurance ‐ 210,914 210,914 Notes receivable ‐ 596,836 596,836 Total noncurrent assets 190,687,118 243,805,789 434,492,907 Total assets $ 241,322,566 $ 292,777,384 $ 534,099,950 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF NET POSITION June 30, 2014 35 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 36 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF NET POSITION (Continued) June 30, 2014 Governmental Business‐type Activities Activities Total LIABILITIES Current liabilities Accounts payable $ 4,216,309 $ 2,149,222 $ 6,365,531 Accrued wages payable 516,645 132,980 649,625 Accrued compensated absences 919,476 274,893 1,194,369 Other payables and liabilities 2,278,756 1,455,041 3,733,797 Customer deposits payable ‐ 376,089 376,089 Capital leases 1,173,560 ‐ 1,173,560 Claims payable 639,576 41,000 680,576 Line‐of‐credit 195,575 ‐ 195,575 Deposits 3,006,785 499,981 3,506,766 Accrued bond interest 231,103 73,768 304,871 Other noncurrent liabilities, due within one year 6,135,000 2,676,688 8,811,688 Total current liabilities 19,312,785 7,679,662 26,992,447 Noncurrent liabilities Due in more than one year 44,468,100 75,375,616 119,843,716 Total liabilities 63,780,885 83,055,278 146,836,163 DEFERRED INFLOW OF RESOURES Property tax revenue 20,308,643 ‐ 20,308,643 Accrued investment derivative losses 1,384,941 ‐ 1,384,941 Total deferred inflow of resources 21,693,584 ‐ 21,693,584 NET POSITION Net investment in capital assets 137,742,706 166,139,531 303,882,237 Restricted ‐ expendable: Grants and other programs 501,705 ‐ 501,705 Debt service/replacement fund 2,055,259 1,596,535 3,651,794 Restricted ‐ nonexpendable 410,000 ‐ 410,000 Unrestricted 15,138,427 41,986,040 57,124,467 Total net position $ 155,848,097 $ 209,722,106 $ 365,570,203 The notes to the financial statements are an integral part of this statement. 37 ---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 25,434,444 $ 17,997,423 $ ‐ $ ‐ $ Public safety 26,854,122 3,121,855 2,794,682 ‐ Transportation 5,500,657 257,318 ‐ 5,936,342 Environmental protection 667,371 3,452,737 ‐ ‐ Leisure opportunities 6,140,594 372,520 21,140 292,218 Community development 6,854,489 2,807,012 1,249,084 89,036 Interest on long‐term debt 1,832,516 ‐ ‐ ‐ Total governmental activities 73,284,193 28,008,865 4,064,906 6,317,596 Business‐type activities: Medical services 5,335,476 6,047,634 ‐ ‐ Airport 1,616,676 395,386 ‐ 658,913 Utilities 28,595,847 33,182,470 ‐ ‐ Refuse 4,255,556 5,225,584 ‐ ‐ Recreation 1,409,421 1,244,731 82,825 ‐ Property management 4,668,521 4,068,641 ‐ ‐ Total business‐type activities 45,881,497 50,164,446 82,825 658,913 Total primary government 119,165,690 $ 78,173,311 $ 4,147,731 $ 6,976,509 $ 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 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, 2014 Program Revenues 38 ---PAGE BREAK--- Page 2 of 2 Governmental Business‐type Activities Activities Total (7,437,021) $ ‐ $ (7,437,021) $ (20,937,585) ‐ (20,937,585) 693,003 ‐ 693,003 2,785,366 ‐ 2,785,366 (5,454,716) ‐ (5,454,716) (2,709,357) ‐ (2,709,357) (1,832,516) ‐ (1,832,516) (34,892,826) ‐ (34,892,826) ‐ 712,158 712,158 ‐ (562,377) (562,377) ‐ 4,586,623 4,586,623 ‐ 970,028 970,028 ‐ (81,865) (81,865) ‐ (599,880) (599,880) ‐ 5,024,687 5,024,687 (34,892,826) 5,024,687 (29,868,139) 23,664,497 ‐ 23,664,497 14,212,669 ‐ 14,212,669 8,272,312 ‐ 8,272,312 368,719 ‐ 368,719 674,015 ‐ 674,015 240,926 358,956 599,882 2,216,297 (32,689) 2,183,608 49,649,435 326,267 49,975,702 654,940 (654,940) ‐ 50,304,375 (328,673) 49,975,702 15,411,549 4,696,014 20,107,563 140,436,548 205,026,092 345,462,640 155,848,097 $ 209,722,106 $ 365,570,203 $ Primary Government Net (Expense) Revenue and Changes in Net Position 39 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 40 ---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 101. 41 ---PAGE BREAK--- Special Revenue Non‐Major Total Redevelopment Governmental Governmental General Agency Funds Funds ASSETS Cash and investments $ 3,901,891 $ 5,103,646 $ 11,303,002 $ 20,308,539 Due from other funds 3,043,180 ‐ ‐ 3,043,180 Receivables (net of allowance for uncollectibles): Accounts 3,957,400 106,569 64,110 4,128,079 Taxes 10,796,465 12,055,938 ‐ 22,852,403 Special assessments ‐ ‐ 184,683 184,683 Loans to other funds, net of allowance 2,741,407 1,664,359 ‐ 4,405,766 Interest receivable ‐ 85,644 5,322 90,966 Inventory, at cost 37,339 ‐ 75,525 112,864 Prepaid Items 45,000 ‐ ‐ 45,000 Restricted assets: Cash 539,484 ‐ ‐ 539,484 Investments ‐ 177,468 826,391 1,003,859 Investments in properties held for sale 404,750 404,750 Grant loans and other notes 7,825,235 750,000 ‐ 8,575,235 Total assets $ 33,292,151 $ 19,943,624 $ 12,459,033 $ 65,694,808 LIABILITIES Due to other funds $ ‐ $ ‐ $ 1,607 $ 1,607 Accounts payable 1,113,273 564,535 1,901,933 3,579,741 Accrued wages payable 481,845 ‐ ‐ 481,845 Other payables and liabilities 1,961,082 ‐ 85,979 2,047,061 Loans from other funds ‐ 4,546,550 ‐ 4,546,550 Short‐term notes payable 195,575 ‐ ‐ 195,575 Deposits 9,785,815 835,644 210,561 10,832,020 Total liabilities 13,537,590 5,946,729 2,200,080 21,684,399 DEFERRED INFLOW OF RESOURCES: Unavailable Property tax revenue 8,740,355 12,055,938 ‐ 20,796,293 Total deferred inflow of resources 8,740,355 12,055,938 ‐ 20,796,293 FUND BALANCE Nonspendable: Permanent fund principal ‐ ‐ 410,000 410,000 Inventory 37,339 ‐ 75,525 112,864 Prepaid items 45,000 ‐ ‐ 45,000 Long‐term loans to other funds 2,152,232 ‐ ‐ 2,152,232 Properties held for sale 404,750 ‐ ‐ 404,750 Spendable: Restricted: Debt service reserve 108,259 177,468 ‐ 285,727 Unspent bond proceeds ‐ ‐ 416,391 416,391 Revolving loan program capital 431,225 ‐ ‐ 431,225 Assigned: Accrued compensated absences 872,042 ‐ ‐ 872,042 Community development grants 1,407,730 ‐ ‐ 1,407,730 Downtown business promotion 32,431 ‐ 213,403 245,834 General fund ‐ for encumbrances Mayor 9,500 ‐ ‐ 9,500 City Council 71,925 ‐ ‐ 71,925 Non‐departmental 219,915 ‐ ‐ 219,915 Community and economic development 14,500 ‐ ‐ 14,500 Fire 100 100 Police 124,706 ‐ ‐ 124,706 Public services 527,000 ‐ ‐ 527,000 Debt service ‐ ‐ 260,069 260,069 Capital projects ‐ ‐ 7,639,998 7,639,998 Special revenue ‐ 1,763,489 1,243,567 3,007,056 Unassigned 4,555,552 ‐ ‐ 4,555,552 Total fund balance 11,014,206 1,940,957 10,258,953 23,214,116 Total liabilities, deferred inflow of resources and fund balance $ 33,292,151 $ 19,943,624 $ 12,459,033 $ 65,694,808 The notes to the financial statements are an integral part of this statement. GOVERNMENTAL FUNDS OGDEN CITY CORPORATION BALANCE SHEET June 30, 2014 42 ---PAGE BREAK--- OGDEN CITY CORPORATION Reconciliation of the Balance Sheet ‐ Governmental Funds to the Statement of Net Position June 30, 2014 Total Fund Balances ‐ Governmental Funds $ 23,214,116 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 103,411,110 Other capital assets 121,234,871 Accumulated depreciation (69,446,656) 174,851,847 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. (1,616,044) 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. 7,978,931 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. 487,650 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): Bonds and long term debt, governmental funds (46,161,596) Long term compensated absences, governmental funds (2,906,807) (49,068,403) Net Position of Governmental Activities $ 155,848,097 The notes to the financial statements are an integral part of this statement. 43 ---PAGE BREAK--- Special Revenue Non‐Major Total Redevelopment Governmental Governmental General Agency Funds Funds REVENUES: Taxes and special assessments $ 38,091,714 $ 13,453,876 $ 225,478 $ 51,771,068 Licenses and permits 2,301,809 ‐ ‐ 2,301,809 Intergovernmental 6,822,806 ‐ 2,254,718 9,077,524 Charges for services 7,228,630 826,346 552,735 8,607,711 Fines and forfeitures 2,168,991 ‐ ‐ 2,168,991 Miscellaneous 94,658 32,714 44,430 171,802 Outside donations 1,142,701 ‐ ‐ 1,142,701 Interest 55,606 81,576 60,796 197,978 Sale of property ‐ 204,315 ‐ 204,315 Total revenues 57,906,915 14,598,827 3,138,157 75,643,899 EXPENDITURES: Mayor 504,700 ‐ ‐ 504,700 City council 916,226 ‐ ‐ 916,226 Management services 4,156,688 ‐ 24,500 4,181,188 Corporate counsel 1,102,462 ‐ ‐ 1,102,462 Non‐departmental 3,182,242 ‐ 175,934 3,358,176 Police 17,887,987 ‐ ‐ 17,887,987 Fire 6,840,830 ‐ 995,180 7,836,010 Public services 9,928,317 ‐ 4,021,574 13,949,891 Community and economic development 9,343,143 3,487,667 321,620 13,152,430 Debt service: Principal 2,000,000 5,375,000 321,000 7,696,000 Interest and fiscal charges 280,844 1,997,612 223,815 2,502,271 Total expenditures 56,143,439 10,860,279 6,083,623 73,087,341 Excess (deficiency) of revenues over expenditures 1,763,476 3,738,548 (2,945,466) 2,556,558 OTHER FINANCING SOURCES (USES): Transfers in 125,000 4,632,506 4,882,648 9,640,154 Transfers out (2,242,719) (7,161,665) (60,000) (9,464,384) Total other financing sources (uses) (2,117,719) (2,529,159) 4,822,648 175,770 Net change in fund balances (354,243) 1,209,389 1,877,182 2,732,328 Fund balance at beginning of year, restated 11,368,449 731,568 8,381,771 20,481,788 Fund balance at end of year $ 11,014,206 $ 1,940,957 $ 10,258,953 $ 23,214,116 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, 2014 44 ---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, 2014 Net Change in Fund Balances‐Total Governmental Funds 2,732,328 $ 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 5,164,117 $ Depreciation expense (4,586,990) 577,127 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. 2,486 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 7,696,000 Revenues recognized in prior periods in the Statement of Activities that first became available as revenue in the governmental funds during the current period must be removed from fund revenue and reflected as an adjustment to government‐wide net assets. (675,000) 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. 487,650 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 2,465,538 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 1,116,918 Capital contribution of assets are made to the City throughout the year by various outside donors which are not recorded in the governmental funds. 284,535 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 (67,334) Change in loss on investment derivatives (GASB 53) 808,441 Amortization of bond premiums and discounts (17,140) 723,967 Change in Net Position of Governmental Activities 15,411,549 $ The notes to the financial statements are an integral part of this statement. 45 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 46 ---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. 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 111. 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 119. 47 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2014 Page 1 of 4 BDO Property Water Sewer Management ASSETS Current assets Cash $ 10,125,441 $ 18,426,716 $ 8,470,293 Accounts receivable (net) 2,123,654 1,469,841 1,462,236 Inventory, at cost ‐ ‐ ‐ Prepaid expenses 425,462 ‐ ‐ Loans to other funds ‐ ‐ ‐ Total current assets 12,674,557 19,896,557 9,932,529 Noncurrent assets Prepaid items 144,772 66,142 ‐ Notes receivable ‐ ‐ ‐ Employee PC loans receivable ‐ ‐ ‐ Subtotal 144,772 66,142 ‐ Restricted assets: Cash 6,657 ‐ ‐ Investments 11,537,972 4,610,842 ‐ Subtotal 11,544,629 4,610,842 ‐ Capital assets: Land 642,083 1,294,330 32,591,750 Buildings 2,139,395 ‐ 101,382,023 Improvements 99,892,102 43,316,367 5,461 Construction‐in‐process 4,600,332 1,135,352 ‐ Office furniture 319,515 ‐ ‐ Equipment 859,236 79,001 ‐ Vehicles ‐ ‐ ‐ Intangibles 717,658 ‐ ‐ Total capital assets 109,170,321 45,825,050 133,979,234 Less accumulated depreciation / amortization (24,180,096) (10,215,222) (48,720,136) Net capital assets 84,990,225 35,609,828 85,259,098 Total noncurrent assets 96,679,626 40,286,812 85,259,098 Total assets $ 109,354,183 $ 60,183,369 $ 95,191,627 The notes to the financial statements are an integral part of this statement. 48 ---PAGE BREAK--- Page 2 of 4 Non‐Major Enterprise Total Funds Total Internal Service $ 4,000,126 $ 41,022,576 $ 1,560,863 2,607,060 7,662,791 132,103 59,352 59,352 1,021,362 ‐ 425,462 ‐ 2,042,191 2,042,191 ‐ 8,708,729 51,212,372 2,714,328 ‐ 210,914 ‐ 596,836 596,836 ‐ ‐ ‐ 96,955 596,836 807,750 96,955 ‐ 6,657 921,916 317,620 16,466,434 ‐ 317,620 16,473,091 921,916 2,478,511 37,006,674 9,000 2,714,437 106,235,855 1,603,918 29,041,836 172,255,766 293,877 70,470 5,806,154 5,000 ‐ 319,515 ‐ 1,682,296 2,620,533 11,381,156 ‐ ‐ 14,382,268 ‐ 717,658 435,097 35,987,550 324,962,155 28,110,316 (15,321,753) (98,437,207) (15,992,009) 20,665,797 226,524,948 12,118,307 21,580,253 243,805,789 13,137,178 $ 30,288,982 $ 295,018,161 $ 15,851,506 49 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2014 Page 3 of 4 BDO Property Water Sewer Management LIABILITIES AND NET POSITION LIABILITIES: Current liabilities Due to other funds $ ‐ $ ‐ $ ‐ Accounts payable 1,106,827 497,311 187,045 Accrued wages payable 47,081 12,166 699 Accrued compensated absences 101,221 29,719 ‐ Other accrued payables 653,926 801,115 ‐ Customer deposits payable 376,089 ‐ ‐ Retainage payable 41,000 ‐ ‐ Capital leases ‐ ‐ ‐ Claims payable ‐ ‐ ‐ Deposits ‐ 24,437 ‐ Accrued bond interest 57,425 14,591 ‐ Revenue bonds/note payable 1,826,379 580,309 ‐ Total current liabilities 4,209,948 1,959,648 187,744 Noncurrent liabilities Revenue bonds/note payable 61,514,297 12,619,903 ‐ Claims payable ‐ ‐ ‐ Capital leases ‐ ‐ ‐ Compensated absences 236,182 69,345 ‐ Loans from other funds ‐ ‐ ‐ Total noncurrent liabilities 61,750,479 12,689,248 ‐ Total liabilities 65,960,427 14,648,896 187,744 NET POSITION: Net investment in capital assets 33,194,178 27,020,458 85,259,098 Restricted for debt service/replacement fund 1,278,915 ‐ ‐ Unrestricted 8,920,663 18,514,015 9,744,785 Total net position $ 43,393,756 $ 45,534,473 $ 95,003,883 The notes to the financial statements are an integral part of this statement. 50 ---PAGE BREAK--- Page 4 of 4 Non‐Major Enterprise Total Funds Total Internal Service $ 339,370 $ 339,370 $ 2,702,203 358,039 2,149,222 636,568 73,034 132,980 34,800 143,953 274,893 47,434 ‐ 1,455,041 231,695 ‐ 376,089 ‐ ‐ 41,000 ‐ ‐ ‐ 1,173,560 ‐ ‐ 639,576 475,544 499,981 ‐ 1,752 73,768 ‐ 270,000 2,676,688 ‐ 1,661,692 8,019,032 5,465,836 600,000 74,734,200 ‐ ‐ ‐ 514,447 ‐ ‐ 1,781,612 335,889 641,416 110,680 1,901,407 1,901,407 ‐ 2,837,296 77,277,023 2,406,739 4,498,988 85,296,055 7,872,575 20,665,797 166,139,531 9,163,135 317,620 1,596,535 921,916 4,806,577 41,986,040 (2,106,120) $ 25,789,994 $ 209,722,106 $ 7,978,931 51 ---PAGE BREAK--- Page 1 of 2 BDO Property Water Sewer Management OPERATING REVENUES: Charges for services $ 16,915,178 $ 14,601,820 $ 4,068,641 Special district fees 850,923 ‐ ‐ Accounting charges 781,050 ‐ ‐ Intergovernmental ‐ ‐ ‐ Miscellaneous income 15,967 17,532 ‐ Total revenue 18,563,118 14,619,352 4,068,641 OPERATING EXPENSES: Cost of materials and parts ‐ ‐ ‐ Personal services: Salaries and wages 2,281,896 773,692 37,576 Benefits 1,238,411 388,489 10,925 Supplies: Office supplies 181,614 831 ‐ Operating supplies 390,265 33,736 ‐ Repair and maintenance supplies 118,405 9,874 ‐ Charges for services: Sewer district charges ‐ 4,918,818 ‐ Disposal charges ‐ ‐ ‐ Public utility services 483,854 10,818 ‐ Travel and education 12,633 5,006 ‐ Contracted agreements 1,362,092 1,276,915 564,365 Other operating expenses: Rental charges 103,639 61,459 ‐ Fiscal charges 2,899,852 2,516,127 ‐ Depreciation / amortization 2,001,025 889,156 4,055,655 Data processing and computer equipment 442,077 60,950 ‐ Maintenance and repair 327,636 583,520 ‐ Vehicle operating expenses 411,244 398,568 ‐ Water purchase 964,309 ‐ ‐ Claims payments ‐ ‐ ‐ Miscellaneous 84,318 128 ‐ Total operating expenses 13,303,270 11,928,087 4,668,521 Operating income (loss) 5,259,848 2,691,265 (599,880) NON‐OPERATING REVENUES (EXPENSES): Revenues: Interest income 118,103 124,341 41,723 Grants and donations ‐ ‐ ‐ Gain on sale of assets 44,530 ‐ ‐ Expenses: Capital contributed to general government ‐ ‐ (2,489,727) Interest expense (2,731,811) (632,679) ‐ Loss on sale of assets (77,219) ‐ ‐ Total non‐operating revenues (expenses) (2,646,397) (508,338) (2,448,004) Capital contributions 758,070 899,274 ‐ Income before transfers 3,371,521 3,082,201 (3,047,884) Transfers in ‐ ‐ 3,385,590 Transfers out (189,964) (81,709) (4,057,975) Change in net position 3,181,557 3,000,492 (3,720,269) Net position restated, beginning 40,212,199 42,533,981 98,724,152 Net position, ending $ 43,393,756 $ 45,534,473 $ 95,003,883 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, 2014 52 ---PAGE BREAK--- Page 2 of 2 Non‐Major Internal Enterprise Service Funds Total Funds $ 10,989,790 $ 46,575,429 $ 13,953,193 ‐ 850,923 ‐ ‐ 781,050 ‐ 1,956,835 1,956,835 ‐ 49,535 83,034 238,813 12,996,160 50,247,271 14,192,006 128,869 128,869 2,832,055 3,711,445 6,804,609 1,881,620 1,702,386 3,340,211 844,073 13,744 196,189 18,713 258,411 682,412 101,799 14,599 142,878 3,638 ‐ 4,918,818 ‐ 847,573 847,573 ‐ 249,521 744,193 1,324,004 22,251 39,890 17,835 828,928 4,032,300 2,661,071 78,703 243,801 40,381 1,622,580 7,038,559 ‐ 1,219,830 8,165,666 3,048,860 129,075 632,102 632,965 (322,924) 588,232 95,781 1,702,856 2,512,668 226,120 ‐ 964,309 ‐ ‐ ‐ 545,035 371,759 456,205 14,183 12,579,606 42,479,484 14,288,133 416,554 7,767,787 (96,127) 74,789 358,956 3,896 658,913 658,913 ‐ ‐ 44,530 2,011,982 ‐ (2,489,727) ‐ (37,523) (3,402,013) (54,213) ‐ (77,219) 696,179 (4,906,560) 1,961,665 343,826 2,001,170 ‐ 1,456,559 4,862,397 1,865,538 777,675 4,163,265 600,000 ‐ (4,329,648) ‐ 2,234,234 4,696,014 2,465,538 23,555,760 205,026,092 5,513,393 $ 25,789,994 $ 209,722,106 $ 7,978,931 53 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2014 Page 1 of 4 BDO Property Water Sewer Management CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 18,874,378 $ 14,763,991 $ 3,457,389 Cash received (paid) from (to) other funds ‐ ‐ ‐ Cash payments to suppliers for goods and services (9,863,879) (9,122,968) (858,114) Cash payments to employees for services (3,512,318) (1,155,581) (48,714) Net cash from operating activities 5,498,181 4,485,442 2,550,561 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Payments paid on interfund loans ‐ ‐ ‐ Grants/Donations ‐ ‐ ‐ Transfers in ‐ ‐ 3,385,590 Transfers out (189,964) (81,709) (6,547,702) PC loans paid ‐ ‐ ‐ Interest expense on cash deficit ‐ ‐ ‐ Net cash from noncapital financing activities (189,964) (81,709) (3,162,112) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (9,492,302) (1,756,452) ‐ Proceeds from capital debt 13,637,845 4,604,164 ‐ Principal paid on revenue bonds (1,936,976) (594,906) ‐ Interest paid on revenue bonds (3,056,211) (625,856) ‐ Change in deferred charges (37,779) (11,024) ‐ Payments on contracts payable ‐ ‐ ‐ Interest expense on loans ‐ ‐ ‐ Proceeds from sale of assets 44,530 ‐ ‐ Net cash from capital and related financing activities (840,893) 1,615,926 ‐ CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 118,103 124,341 41,723 Change in restricted investments (5,129,950) (4,535,230) ‐ Net cash from investing activities (5,011,847) (4,410,889) 41,723 Net increase (decrease) in cash equivalents (544,523) 1,608,770 (569,828) Cash/equivalents at beginning of year 10,676,621 16,817,946 9,040,121 Cash/equivalents at end of year $ 10,132,098 $ 18,426,716 $ 8,470,293 Cash/equivalents, end of year (unrestricted) 10,125,441 18,426,716 8,470,293 Cash/equivalents, end of year (restricted) 6,657 ‐ ‐ Total cash/equivalents, end of year $ 10,132,098 $ 18,426,716 $ 8,470,293 The notes to the financial statements are an integral part of this statement. 54 ---PAGE BREAK--- Page 2 of 4 Non‐Major Internal Enterprise Service Funds Totals Funds $ 7,948,626 $ 45,044,384 $ 14,362,836 311,575 311,575 2,351,231 (2,880,982) (22,725,943) (8,736,293) (4,578,069) (9,294,682) (2,718,599) 801,150 13,335,334 5,259,175 (249,075) (249,075) ‐ 658,913 658,913 ‐ 777,675 4,163,265 600,000 343,826 (6,475,549) ‐ ‐ ‐ (8,530) ‐ ‐ (1,591) 1,531,339 (1,902,446) 589,879 (970,760) (12,219,513) (3,538,272) ‐ 18,242,008 ‐ ‐ (2,531,882) ‐ ‐ (3,682,067) ‐ ‐ (48,803) ‐ (272,952) (272,952) 219,642 ‐ ‐ (54,213) ‐ 44,530 (699,851) (1,587,538) (812,505) (4,072,694) 48,773 332,940 5,487 ‐ (9,665,180) ‐ 48,773 (9,332,240) 5,487 793,724 1,288,143 1,780,256 2,247,476 38,782,164 700,932 $ 3,041,200 $ 40,070,307 $ 2,481,188 3,041,200 40,063,650 1,560,863 ‐ 6,657 921,916 $ 3,041,200 $ 40,070,307 $ 2,482,779 55 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2014 Page 3 of 4 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: BDO Property Water Sewer Management Operating income (loss) $ 5,259,848 $ 2,691,265 $ (599,880) Reconciliation adjustments: Depreciation 2,001,025 889,156 4,055,655 Changes in assets and liabilities: Change in accounts receivable 311,260 144,639 (611,252) Change in inventory ‐ ‐ ‐ Change in prepaid expenses (6,922) ‐ ‐ Change in due to other funds ‐ ‐ ‐ Change in accounts payable (2,098,626) 402,221 (293,749) Change in deposits payable ‐ 10,573 ‐ Change in other accrued liabilities 23,607 340,988 ‐ Change in wages payable and compensated absences 7,989 6,600 (213) Total adjustments 238,333 1,794,177 3,150,441 Net cash provided by (used in) operating activities $ 5,498,181 $ 4,485,442 $ 2,550,561 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: The Water and Sewer funds recorded capital contributions from Business Depot Ogden in the amount of $644,256 and $728,553, respectively. The Water and Sewer funds recorded capital contributions from outside donors in the amount of $113,814 and $170,721, respectively. The Water and Sewer fund recorded a deferred charge of bond insurance costs of $49,486 and $16,879, respectively. The Water and Sewer fund recorded an amortization expense of deferred bond insurance costs of $1,979 and $844, respectively. The Water and Sewer fund recorded an adjustment to beginning net position as a result of the implementation of GASB Statement No. 65. The adjustment was necessary to remove unamortized bond issuance costs. The prior period adjustments were $1,192,154 and $205,335, respectively. The notes to the financial statements are an integral part of this statement. 56 ---PAGE BREAK--- Page 4 of 4 Non‐Major Internal Enterprise Service Funds Totals Funds $ (590,997) $ 6,760,236 $ (96,127) 1,177,713 8,123,549 3,048,860 178,050 22,697 170,830 (406) (406) (76,786) ‐ (6,922) ‐ 311,575 311,575 2,351,231 (266,341) (2,256,495) 38,514 (3,000) 7,573 ‐ ‐ 364,595 (184,441) (5,444) 8,932 7,094 1,392,147 6,575,098 5,355,302 $ 801,150 $ 13,335,334 $ 5,259,175 57 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 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 is governed by an elected mayor and seven member council 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, burial, 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. 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. 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. 58 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 B. Government‐wide and Fund Financial Statements 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, the Capital Improvement Projects Fund and the Debt Service 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 $2,074. 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. 59 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 B. Government‐wide and Fund Financial Statements (Continued)  Sewer Utility Fund ‐ This enterprise fund accounts for activities necessary to provide storm and sanitary sewer services to residents.  BDO Property Management Fund – This enterprise fund is used to account for operations of the Business Development Ogden project.  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; Management 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 are considered and reported as nonmajor enterprise funds. These funds account for their respective business‐type activities and include Refuse, Airport, Golf Courses, Recreation, Medical Services and Dinosaur Park. The nonmajor enterprise funds are grouped together in a single column in the basic financial statements and they are displayed individually in the combining statements. 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. 60 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 C. Measurement Focus and Basis of Accounting (Continued) 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 GASB 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 inflow of resources for the assessed amount of those property taxes as of January 1, 2014. 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 and franchise 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. 61 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Assets, Liabilities, Deferred Outflows/Inflows and Fund Balances/Net Position 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. 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 or 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. 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, 2014 are $7,352,143 and $16,780,110 for the 2009A and 2009B‐1 and 2009B‐2, respectively. 62 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Assets, Liabilities, Deferred Outflows/Inflows and Fund Balances/Net Position (Continued) Fair Value: As of June 30, 2014 the following mid‐market values based upon the market close rate data provided by Bloomberg Financial were: $8.9M ‐ 100% Libor Swap ($380,976) and $22.4M ‐ 100% Libor Swap ($1,003,965). 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. Based on the determination, the standard requires the swaps to be reported as investment derivatives. The fair value and the changes in 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 ($1,384,941). 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. 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, 2014, the swaps had a negative fair value of $1,384,941. Early Termination Risk: The RDA has the option to terminate the JP Morgan Chase Swap upon 30 days notice. The amount due with respect to an early termination shall be determined as though the counterparty is the sole affected party and “Market Quotation and Second Method” shall apply. Either party may terminate only upon an “Event of Default” caused by a “Failure to Pay or Deliver” as specified in Section 5 of the International Swaps and Derivatives Association (ISDA) Master Agreement. Any amounts due to the counterparty upon termination are payable from lease payments and tax increment revenue. Rollover Risk: 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, at which time the City will be exposed to potentially higher interest expense on these bonds, due to fluctuations in the Libor rate. 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, 2014. This amount has likewise been recorded as revenue in the appropriate fund. The City calculates an allowance for doubtful accounts on receivables based on the average of bad debt expense to revenue over 5 years. 63 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Assets, Liabilities, Deferred Outflows/Inflows and Fund Balances/Net Position (Continued) Inventories Inventory is valued at cost using the average‐cost method, which approximates market. Inventory in the General Fund consists of supplies for streets maintenance. Inventory in nonmajor governmental funds 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 fund balance which classification indicates that they do not constitute available spendable resources even though they are a component of current assets. Inventory in nonmajor enterprise funds represent available for sale merchandise at the golf course proshops. 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, 2014 are recorded as prepaid items in both government‐wide and fund financial statements. The cost of governmental fund type prepaid items are recorded as expenditures when consumed rather than when purchased. 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. Grant Loans Primarily consisting of loans to residents for the benefit of housing purchases and improvements in designated project areas. Some loans are payable in installments, other are due on sale or transfer of ownership of the related property and other loan payments are deferred. Reported grant loans are equally offset by a deposit liability. Properties Held for Resale Property acquired by the City, primarily in designated revitalization areas within the City. The cost of the property held for resale is capitalized until the property is sold. 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 97 and 98 of the required supplementary information regarding the modified‐approach. 64 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Assets, Liabilities, Deferred Outflows/Inflows and Fund Balances/Net Position (Continued) 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. 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 insurance 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. Issuance costs are expensed in the period in which the obligation is incurred. 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. Deferred Inflows and Outflows of Resources In addition to assets, the statements of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, represents a consumption of fund balance/net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure/expense) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflow of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance/net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has items which qualify for reporting in this category. The governmental funds report unavailable revenue from property taxes. The government wide statement of financial position report unavailable revenue from property taxes and investment derivatives. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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. 65 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Assets, Liabilities, Deferred Outflows/Inflows and Fund Balances/Net Position (Continued) 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. Committed fund balance at June 30, 2014 was Assigned fund balance – Fund balances are reported as assigned when the City Council intends to use the funds for a specific purpose. Normally funds are assigned by the appropriation process of setting the budget. 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 funds. Unencumbered appropriations lapse at year end, except for capital projects that extend for the term of the project. Subsequent years’ appropriations provide authority for the Budget Officer to complete encumbered transactions. The encumbrance balance at June 30, 2014 was $967,646. 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. The City has no formal policy on minimum fund balances. Utah Code 10‐6‐116(4) requires the City to maintain a minimum fund balance in the general fund equal to 5% of general fund revenue. 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. 66 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Assets, Liabilities, Deferred Outflows/Inflows and Fund Balances/Net Position (Continued) 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. 65, “Items Previously Reported as Assets and Liabilities.” The implementation of this statement has resulted in changes to the Statement of Net Position and the reclassification of certain asset and liability balances as deferred outflows and deferred inflows. Additionally, as a result of the implementation of GASB Statement No. 65, an adjustment to beginning net position was necessary to remove unamortized bond issuance costs from the balance sheet. The adjustment totaled $2,404,780 for governmental activities and $1,397,489 for business type activities. The Government Accounting Standards Board issued Statement No. 70, “Accounting and Financial Reporting for Nonexchange Financial Guarantees.” The implementation of this statement requires the government to evaluate if financial guarantees that are nonexchange transactions have been extended or received by the City. No nonexchange financial guarantees were noted. For the fiscal year ending June 30, 2015, the City will adopt Government Accounting Standards Board Statement No. 68, “Accounting and Financial Reporting for Pensions.” This statement requires the City to recognize a liability for the City’s proportionate share of the collective net pension liability, collective pension expense, and collective deferred outflows of resources and deferred inflows of resources. The City contributes to the Local Government Contributory Retirement System, the Local Government Noncontributory Retirement Systems as described in Note 11, and administered by Utah Retirement Systems (URS). The City will rely on URS to provide City’s proportionate share of the collective net pension liability, collective pension expense, and collective deferred outflows of resources and deferred inflows of resources. 67 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 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, 2014 were $83,222,406 of which $81,391,181, 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 $40,285,446 of the City’s investments in government agency securities, corporate bonds, commercial paper, corporate notes and money market funds are uninsured, unregistered, and held by the counterparty’s trust department. However, the investments are held in the City’s name and therefore are not exposed to custodial credit risk. Additionally, the City had $921,906 in capital lease proceeds, held in an escrow account by US Bankcorp Government Leasing and Finance, Inc. at June 30, 2014. 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 D. 68 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Credit Risk (Continued) 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, 2014: Cash deposit and Fair Quality Investment Type Value Maturity Ratings Cash on deposit $ 22,015,054 n/a not rated PTIF Investments 28,680,846 n/a not rated Amounts held in Escrow 921,906 n/a not rated Certicates of deposit 12,561,190 n/a not rated Corporate notes 12,730,491 270 days* AA Money Market Funds 6,312,919 n/a not rated Total $ 83,222,406 Cash on deposit is equivalent to cash deposited with an insured financial institution. Cash and investments $ 64,284,056 Restricted cash 1,468,057 Restricted investments 17,470,293 Total $ 83,222,406 * Weighted‐average maturity As of June 30, 2014 the carrying amount of the City’s cash deposits and investments was $81,819,448, respective bank balances totaled $83,222,406. 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, 2014. 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. 69 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 A. Interfund Payables and Receivables (Continued) Funds which had overdrawn their share of pooled cash and the offsetting funds as of June 30, 2014 were as follows: Payable Fund Amount General Debt Service $ 1,607 General Fleet, Facilities, Electronics, and Stores 2,702,203 General Airport 311,575 General Dinosaur park 27,795 Total $ 3,043,180 Receivable Fund The terms of repayment of the cash overdraft amounts are discussed in footnote 16 – Commitments and Contingencies. B. Loans To/From Other Funds: Funds which have received loans from other funds as of June 30, 2014 were: Payable Fund (Due From) Amount General Redevelopment Agency 6,100,160 $ Allowance for uncollectible advances (see note 3) (5,760,160) 340,000 General Golf Course 400,869 General Airport 1,500,538 Business Depot Ogden Redevelopment Agency 1,664,395 Refuse Redevelopment Agency 2,042,191 General Redevelopment Agency 500,000 Total $ 6,447,993 Receivable Fund (Due To) Repayment terms – Interfund Lending Activity : General fund to the Redevelopment Agency: These loans have been reserved for in the general fund to the extent that they are considered collectible. Terms of the loans specify that tax increment revenue from the individually identified project areas is to be used to repay these loans. General fund to the Golf Courses Fund: The terms and City Council resolution indicate that principal and interest payments are to be budgeted for payment annually. General fund to the Airport fund : The terms and City Council resolution indicate that principal and interest payments are to be budgeted for payment annually. Business Depot Ogden to the Redevelopment Agency: This note was established to refinance the outside line‐of‐ credit previously maintained by the RDA for the river project area. The note is due in full on July 1, 2014. 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. 70 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 B. Loans To/From Other Funds (Continued) 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 1,331,606 General RDA ‐ Washington Blvd. District 3,016,953 6,100,160 Allowance for uncollectible advances (5,760,160) $ 340,000 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 $96,955 at June 30, 2014 for these loans to employees. D. Special Assessments Receivable: The City created the downtown special assessment district in the 1990s to fund the promotion of the central business district. Assessments are approved by the City Council and are made against commercial properties in the district. Assessment are on a three year cycle. The most recent assessment was in fiscal year 2012. The current balance due to the City is from the final year of the fiscal year 2012 assessment. $ 116,506 Delinquent………………………………… 68,178 $ 184,683 71 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 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. Accounts receivable and associated allowances at June 30, 2014 are detailed as follows: Receivable Less Allowance Net Receivable Water $ 2,161,195 $ (37,541) $ 2,123,654 Sewer 1,472,442 (7,278) 1,465,164 Refuse 509,251 (5,537) 503,714 Medical Services 2,285,670 (757,566) 1,528,104 $ 6,428,558 $ (807,922) $ 5,620,636 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 $ ‐ $ 247,044 $ ‐ $ ‐ $ 777,675 $ 1,218,000 $ 2,242,719 Redevelopment Agency ‐ 3,776,075 3,385,590 ‐ ‐ ‐ 7,161,665 BDO Property Management 65,000 ‐ ‐ 600,000 ‐ 3,339,975 4,004,975 Enterprise Funds ‐ ‐ ‐ ‐ ‐ 271,673 271,673 Nonmajor Funds 60,000 ‐ ‐ ‐ ‐ ‐ 60,000 Total Transfers In $ 125,000 $ 4,023,119 $ 3,385,590 $ 600,000 $ 777,675 $ 4,829,648 $ 13,741,032 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. 72 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2014 was as follows: Beginning Ending Balance Additions Deletions Balance Governmental Activities: Capital assets, being depreciated: Buildings and Improvements $ 115,823,012 $ 1,922,771 $ ‐ $ 117,745,783 Equipment 28,058,478 7,384,126 (6,545,735) 28,896,869 Intangibles 339,446 95,651 ‐ 435,097 Total 144,220,936 9,402,548 (6,545,735) 147,077,749 z Less Accumulated Depreciation for: Building and Improvements (50,503,196) (48,287) ‐ (50,551,483) Equipment (32,918,934) (7,509,581) 5,703,632 (34,724,883) Intangibles (84,317) (77,982) ‐ (162,299) Total (83,506,447) (7,635,850) 5,703,632 (85,438,665) Capital assets being depreciated, net 60,714,489 1,766,698 (842,103) 61,639,084 Capital assets , not being depreciated: Land 19,661,522 ‐ ‐ 19,661,522 Construction in Progress 231,170 2,258,438 (231,170) 2,258,438 Infrastructure 101,183,148 2,227,962 ‐ 103,411,110 Governmental Activity Capital Assets, Net $ 181,790,329 $ 6,253,098 $ (1,073,273) $ 186,970,154 Capital Assets Beginning Ending Balance Additions Deletions Balance Business‐type Activities: Capital assets, being depreciated: Building and Improvements $ 269,486,467 $ 12,471,911 $ (3,466,757) $ 278,491,621 Equipment 2,247,886 724,600 (32,438) 2,940,048 Total 271,734,353 13,196,511 (3,499,195) 281,431,669 Less Accumulated Depreciation for: Buildings and Improvements (92,819,834) (8,027,862) 3,389,539 (97,458,157) Equipment (873,683) (137,805) 32,438 (979,050) Total (93,693,517) (8,165,667) 3,421,977 (98,437,207) Capital assets, being depreciated, net 178,040,836 5,030,844 (77,218) 182,994,462 Capital assets, not being depreciated Land 36,867,635 139,039 37,006,674 Construction‐in‐process 4,921,020 6,025,540 (5,140,406) 5,806,154 Intangibles 717,658 ‐ ‐ 717,658 Business‐type Activities Capital Assets, Net $ 220,547,149 $ 11,195,423 $ (5,217,624) $ 226,524,948 Capital Assets 73 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 NOTE 5. CAPITAL ASSETS (Continued) Depreciation expense of governmental activities was charged to functions as follows: General Administration………………………………………………. $ 1,367,382 Public 615,574 743,551 Environmental 12,844 Leisure Opportunities………………………………………………. 540,806 Community 1,306,833 Depreciation on capital assets of the City's internal service funds is charged to the various functions based on their usage of assets 3,048,860 $ 7,635,850 NOTE 6. LEASE COMMITMENTS A. Capital Leases 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 2015 $ 1,203,468 $ ‐ $ 1,203,468 2016 1,125,770 ‐ 1,125,770 2017 675,840 ‐ 675,840 2018 ‐ ‐ ‐ 2019 ‐ ‐ ‐ Thereafter ‐ ‐ ‐ Total 3,005,078 ‐ 3,005,078 Less amounts representing interest 49,906 ‐ 49,906 Present value of future minumum lease payments $ 2,955,172 $ ‐ $ 2,955,172 Equipment $ 2,520,254 Less accumulated depreciation (498,734) Net book value $ 2,021,520 74 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 B. Operating Leases The City has entered into operating leases for equipment. Rent expense during the fiscal year ended June 30, 2014 approximated $35,278. These rent expenses are accounted for in the fleet and facilities internal service fund. NOTE 7. LONG‐TERM LIABILITIES A. Changes in Long‐term Liabilities Changes in long‐term liabilities for the year ended June 30, 2014 were as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General Obligation Bonds $ 7,529,000 $ ‐ $ 2,000,000 $ 5,529,000 $ 2,103,000 Lease Revenue Bonds 4,442,000 ‐ 321,000 4,121,000 337,000 Tax Increment Revenue Bonds 40,110,000 ‐ 5,275,000 34,835,000 3,595,000 Section 108 Notes 1,500,000 ‐ 100,000 1,400,000 100,000 Capital leases 2,735,530 3,384,936 3,165,294 2,955,172 1,173,560 Compensated absences 3,067,407 ‐ 2,486 3,064,921 919,476 Claims payable 1,401,897 ‐ 247,874 1,154,023 639,576 Unamortized bond discounts (223,470) ‐ (17,140) (206,330) ‐ Total Governmental Long‐term Liabilities $ 60,562,364 $ 3,384,936 $ 11,094,514 $ 52,852,786 $ 8,867,612 Long‐term Liabilities Beginning Ending Due Within Balance Additions Reductions Balance One Year Business‐type Activities: Revenue Bonds and Notes $ 61,644,000 $ 17,715,000 $ 2,758,000 $ 76,601,000 $ 2,641,000 Unamortized bond discounts (19,886) ‐ (1,807) (18,079) ‐ Unamortized bond premium 336,646 527,009 35,688 827,967 35,688 Deferred insurance 162,143 66,365 17,594 210,914 17,560 Compensated Absences 884,169 32,140 ‐ 916,309 274,893 Total Business‐type Long‐term Liabilities $ 63,007,072 $ 18,340,514 $ 2,809,475 $ 78,538,111 $ 2,969,141 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. 75 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 B. General Obligation Bonds General Obligation Bonds Payable at June 30, 2014 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2014 2009 GO Bonds Refunding 04/21/09 12/15/15 2.50% to 5.00% $ 8,125,000 $ 4,075,000 2011 Sales Tax Refunding Bonds 12/05/11 03/01/26 2.88% 1,737,000 1,454,000 $ 5,529,000 General Obligation Bonds Payable Total General Obligation Bonds Outstanding Year Principal Interest Principal Interest Principal Interest 2015 $ 2,000,000 125,550 $ 103,000 43,240 $ 2,103,000 168,790 2016 2,075,000 37,750 107,000 40,322 2,182,000 78,072 2017 ‐ ‐ 110,000 37,303 110,000 37,303 2018 ‐ ‐ 113,000 34,184 113,000 34,184 2019 ‐ ‐ 116,000 30,978 116,000 30,978 2020‐2024 ‐ ‐ 626,000 103,902 626,000 103,902 2025‐2029 ‐ ‐ 279,000 15,942 279,000 15,942 Total $ 4,075,000 $ 163,300 $ 1,454,000 $ 305,870 $ 5,529,000 $ 469,170 General Obligation Bonds‐Debt Service Requirements to Maturity Total 2009 GO Bonds Refunding 2011 Sales Tax Refunding Pledged revenues The City pledged property tax revenue to repay Series 2009 General Obligation Refunding Bonds in the amount of $4,075,000. The City’s general obligation bonds are a voter approved debt used for the acquisition and construction of major capital facilities. The City pledged sales tax revenue to repay Series 2011 Sales Tax Refunding Bonds in the amount of $1,454,000. The City issued sales tax revenue bonds for the acquisition and construction of major capital facilities. C. Lease Revenue Bonds Lease Revenue Bonds Payable at June 30, 2014 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2014 Series 2006 refunding 04/04/06 06/15/21 4.35% $ 2,865,000 $ 2,401,000 Series 2007 Stadium 12/11/07 01/15/28 5.08% 3,000,000 1,720,000 $ 4,121,000 Lease Revenue Bonds Payable Total Lease Revenue Bonds Payable 76 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 C. Lease Revenue Bonds (Continued) Year Principal Interest Principal Interest Principal Interest 2015 $ 215,000 74,820 $ 122,000 118,872 $ 337,000 193,692 2016 225,000 65,408 128,000 112,522 353,000 177,930 2017 235,000 55,680 135,000 105,842 370,000 161,522 2018 245,000 45,458 141,000 98,831 386,000 144,289 2019 255,000 34,800 149,000 91,465 404,000 126,265 2020‐2024 545,000 35,888 863,000 333,121 1,408,000 369,009 2025‐2029 ‐ ‐ 863,000 90,399 863,000 90,399 Total $ 1,720,000 $ 312,054 $ 2,401,000 $ 951,052 $ 4,121,000 $ 1,263,106 Lease Revenue Bonds‐Debt Service Requirements to Maturity Series 2006 Refunding Series 2007 Stadium Total Pledged revenues The City and the MBA pledged lease revenue to repay Series 2006 Lease Revenue Refunding Bonds and Series 2007 Stadium Bonds in the amounts of $1,720,000 and $2,401,000 respectively. The City and the MBA issued bonds for the acquisition and construction of major capital assets. The lease revenue earned by the MBA is related to lease agreements within the primary government. D. Tax Increment Revenue Bonds Tax Increment Revenue Bonds Payable at June 30, 2014 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2014 Wall Ave Tax Increment 08/29/02 02/01/19 variable $ 675,000 $ 345,000 25th Street (Crown Plaza) 09/18/01 02/01/18 variable 1,610,000 610,000 2005 Series A ‐ Recreation Center 11/01/05 04/01/25 variable 7,280,000 3,845,000 2009 Series A ‐ Rec Center 09/30/09 06/01/31 variable / swap 8,780,000 7,280,000 2009 Series B‐1 and B‐2 ‐ Rec Center 09/30/09 12/01/27 variable / swap 21,565,000 17,110,000 2006 Series A ‐ West 12th (tax‐exempt) 12/20/06 04/01/17 4.43% 3,500,000 1,935,000 2007 Fairmount District 06/05/07 03/01/18 6.75% 3,300,000 1,075,000 2008 Series A ‐ West 12th 07/08/08 04/01/17 4.75% to 5.25% 3,000,000 1,265,000 2011 Series CBD 02/15/11 02/15/26 5.10% 1,600,000 1,370,000 $ 34,835,000 Tax Increment Bonds Payable Total Tax Increment Revenue Bonds Payable 77 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Tax Increment Revenue Bonds (Continued) Year Principal Interest Principal Interest Principal Interest 2015 $ 60,000 5,003 $ 135,000 18,300 $ 575,000 167,258 2016 65,000 4,133 145,000 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 80,000 1,160 ‐ ‐ 345,000 99,615 2020‐2024 ‐ ‐ ‐ ‐ 1,630,000 281,664 2025‐2029 ‐ ‐ ‐ ‐ 315,000 13,703 2030‐2034 ‐ ‐ ‐ ‐ ‐ ‐ Total $ 345,000 $ 15,734 $ 610,000 $ 47,550 $ 3,845,000 $ 928,729 Tax Increment Revenue Bonds‐Debt Service Requirements to Maturity (Crown Plaza) 2005 Series A Wall Ave Tax Increment 25th Street Recreation Center Year Principal Interest Principal Interest Principal Interest 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 285,000 361,924 985,000 783,941 ‐ ‐ 2020‐2024 1,805,000 1,512,796 6,190,000 2,902,523 ‐ ‐ 2025‐2029 2,590,000 861,789 5,935,000 749,646 ‐ ‐ 2030‐2034 1,330,000 102,887 ‐ ‐ ‐ ‐ Total $ 7,280,000 $ 4,464,639 $ 17,110,000 $ 8,154,745 $ 1,935,000 $ 172,995 Recreation Center Recreation Center 2009 B‐1 and B‐2 2009 Series A West 12th (Tax‐exempt) 2006 Series A Year Principal Interest Principal Interest Principal Interest 2015 $ 250,000 106,313 $ 400,000 66,413 $ 85,000 69,870 2016 260,000 89,438 420,000 45,413 90,000 65,535 2017 275,000 71,888 445,000 23,363 95,000 60,945 2018 290,000 53,325 ‐ ‐ 100,000 56,100 2019 ‐ ‐ ‐ ‐ 105,000 51,000 2020‐2024 ‐ ‐ ‐ ‐ 605,000 169,575 2025‐2029 ‐ ‐ ‐ ‐ 290,000 22,440 2030‐2034 ‐ ‐ ‐ ‐ ‐ ‐ Total $ 1,075,000 $ 320,964 $ 1,265,000 $ 135,189 $ 1,370,000 $ 495,465 West 12th 2008 Series A Fairmount District 2011 Series 2007 Series Central Business District 78 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Tax Increment Revenue Bonds (Continued) Year Principal Interest 2015 $ 3,595,000 1,982,811 2016 3,755,000 1,792,771 2017 2,985,000 1,601,883 2018 2,010,000 1,443,879 2019 1,800,000 1,297,640 2020‐2024 10,230,000 4,866,558 2025‐2029 9,130,000 1,647,578 2030‐2034 1,330,000 102,887 Total $ 34,835,000 $ 14,736,008 Total Pledged revenues The City and RDA have pledged tax increment revenue to repay Wall Avenue Bonds in the amount of $345,000. These bonds were issued for redevelopment purposes in the Wall Avenue Redevelopment Project Area. The City and RDA have pledged tax increment revenue to repay 25th Street Bonds in the amount of $610,000. These bonds were issued for redevelopment purposes in the 25th Street Redevelopment Project Area. The City and RDA have pledged tax increment revenue to repay the West 12th Street 2006 Series A Bonds and the West 12th 2008 Series A Bonds in the amounts of $1,935,000 and $1,265,000, respectively. These bonds were issued for development purposes in the West 12th Street Economic Development Area. The City and RDA have pledged tax increment revenue to repay Fairmount District 2007 Bonds in the amount of $1,075,000. These bonds were issued for redevelopment purposes in the Fairmount Redevelopment Project Area. The City and the RDA have pledged tax increment revenue to repay CBD Mall 2011 Series Bonds in the amount of $1,370,000. These bonds were issued for redevelopment purposes in the CBD Mall Redevelopment area. Additionally, in the CBD Mall Redevelopment Area, the City and RDA have pledged certain revenues to repay 2005 Series A, 2009A and 2009B bonds in the amounts of $3,845,000, $7,280,000, and $17,110,000, 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 $4,773,729, 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 $25,264,745, payable through December 2027. For the current year, principal and interest paid on 2005 Series A and 2009B bonds in the amounts of $557,876 and $1,000,065, 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 $1,379,553 and $1,856,733, respectively. 79 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 D. Tax Increment Revenue Bonds (Continued) Lease revenues from the 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 $11,744,639, payable through June 2031. For the current year, principal and interest paid on 2009 Series A bonds and total lease revenues were $345,000 and $13,707, respectively. Swap payments and associated debt Using rates as of June 30, 2014, 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, 2014, the net swap payments on the 2009 Series A and 2009 Series B Bonds were $281,159 and $745,985, respectively. These payments, when included with the variable rate of interest, maintain the effective rate of interest being paid by the city at the stated rate. E. Section 108 HUD Section 108 loan for $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, 2014 is $1,400,000. The loan is scheduled to be retired in August of 2027. F. Enterprise Fund Revenue Bonds The City issued two new bonds during 2014, Series 2013 Storm Drain Revenue Bonds and Series 2013 Water and Sewer Bonds during 2014. The individual balances of Enterprise Fund Revenue Bonds payable at June 30, 2014 are listed as follows: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2014 Series 2001 Bonds (refuse) 08/29/01 06/15/16 4.90% $ 3,300,000 $ 870,000 Series 2009 Water and Sewer Bond 04/22/09 06/15/24 3.0% to 5.0% 5,585,000 4,090,000 Series 2008 Water and Sewer Bond 06/04/08 06/15/38 2.8% to 5.0% 49,175,000 43,940,000 Series 2012 Storm Sewer Bond 11/10/12 06/15/23 2.09% 2,043,000 1,693,000 Series 2012 State Water Bonds 10/17/12 06/15/33 2.26% 4,000,000 3,840,000 Series 2013 State Water Bonds 03/06/13 06/15/33 2.39% 5,339,000 5,128,000 Series 2013 Storm Drain Revenue Bonds 09/24/13 06/15/33 2.0% to 5.25% 4,490,000 4,285,000 Series 2013 Water and Sewer Bonds 09/24/13 06/15/38 2.0% to 5.25% 13,225,000 12,755,000 $ 76,601,000 Enterprise Fund Revenue and Note Total Bonds and Note Outstanding 80 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 F. Enterprise Fund Revenue Bonds (Continued) Year Principal Interest Principal Interest Principal Interest 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 ‐ ‐ 375,000 139,275 1,155,000 1,940,331 2019 ‐ ‐ 400,000 120,525 1,215,000 1,882,581 2020‐2024 ‐ ‐ 2,265,000 314,888 7,045,000 8,438,905 2025‐2029 ‐ ‐ ‐ ‐ 8,950,000 6,539,280 2030‐2034 ‐ ‐ ‐ ‐ 11,345,000 4,136,580 2035‐2039 ‐ ‐ ‐ ‐ 11,090,000 1,297,663 Total $ 870,000 $ 72,030 $ 4,090,000 $ 1,077,713 $ 43,940,000 $ 30,352,408 Enterprise Revenue Bonds‐Debt Service Requirements to Maturity Refuse 2001 Water/Sewer 2009 Water/Sewer 2008 Year Principal Interest Principal Interest Principal Interest 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 188,000 20,566 179,000 71,439 238,000 101,121 2020‐2024 796,000 42,072 960,000 294,568 1,277,000 417,558 2025‐2029 ‐ 1,072,000 181,093 1,437,000 257,475 2030‐2034 ‐ 950,000 54,240 1,279,000 77,293 2035‐2039 ‐ ‐ ‐ ‐ ‐ ‐ Total $ 1,693,000 $ 182,395 $ 3,840,000 $ 925,877 $ 5,128,000 $ 1,312,160 State Water 2013 State Water 2012 Storm Sewer 2012 Year Principal Interest Principal Interest Principal Interest 2015 $ 160,000 $ 128,550 $ 315,000 $ 382,650 $ 2,641,000 $ 3,066,738 2016 165,000 123,750 325,000 373,200 3,060,000 2,967,966 2017 170,000 194,040 335,000 363,450 2,523,000 2,919,595 2018 170,000 185,710 345,000 471,200 2,636,000 2,942,987 2019 180,000 177,380 360,000 457,400 2,760,000 2,831,012 2020‐2024 1,010,000 655,605 2,035,000 2,256,700 15,388,000 12,420,296 2025‐2029 1,230,000 409,351 2,560,000 2,016,500 15,249,000 9,403,699 2030‐2034 1,200,000 158,513 3,265,000 1,320,289 18,039,000 5,746,915 2035‐2039 ‐ ‐ 3,215,000 381,250 14,305,000 1,678,913 Total $ 4,285,000 $ 2,032,899 $ 12,755,000 $ 8,022,639 $ 76,601,000 $ 43,978,121 Series 2013 Water & Sewer Bonds Total Series 2013 Storm Drain Rev Bonds Pledged revenues The Refuse Utility has pledged to repay Series 2001 Refuse Bonds in the amount of $870,000. The Sewer Utility has pledged storm sewer revenue to repay the 2012 Series Storm Sewer Bonds and the Series 2013 Storm Drain Bonds in the amounts of $1,693,000 and $4,285,000, respectively. 81 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 F. Enterprise Fund Revenue Bonds (Continued) The Water and Sewer Utilities have each pledged to repay certain portions of the 2008 Water/Sewer bonds in the amounts of $38,227,800 and $5,712,200 respectively. Additionally, the Water and Sewer Utilities have each pledged to repay a portion of the 2009 Water/Sewer bonds in the amounts of $2,740,300 and $1,349,700, respectively. The Sewer Utility has pledged sanitary sewer revenue for debt service for the Sewer Utility portion of the 2008 and 2009 Water/Sewer bonds. Additionally, the Water Utility has pledged water utility revenue to repay the 2012 and 2013 State Water bonds and the Series 2013 Water/Sewer bonds in the amounts of $3,840,000, $5,128,000 and $12,755,000, 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 $1,400,000, at a rate equal to 3‐month Libor plus 1.5% (1.73% at June 30, 2014), adjusted quarterly, and carried a balance of $195,575. 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 $ 884,025 $ 602,628 $ 1,291,078 $ 195,575 NOTE 9. FUND BALANCES / NET POSITION DEFICITS At June 30, 2014, the airport, dinosaur park, fleet facilities electronics and stores fund and management information systems funds had deficit unrestricted net position of $2,425,958, $27,795, $2,504,042 and $43,501 respectively. The Airport fund may never achieve positive unrestricted net position because of the flow of capital resources from the Federal government. The City manages airport finances so that if the cash balance becomes negative, the City appropriates a transfer of cash, to bring the cash balance to a positive position. The agreement between the dinosaur park foundation and the City calls for the City to receive annual payments. Generally these payments are appropriated for trail maintenance, however the City can appropriate money from this revenue source to transfer to the dinosaur park fund to pay off the deficit in cash and net position. The fleet facilities electronics and stores fund capitalized $6,991,559 in new equipment during 2014. It has been determined that the unrestricted net position of this fund will improve under current operating arrangement over the next few years. The management information systems fund had an unrestricted net position deficit of $437,671 at June 30, 2013. During 2014 management has reviewed the services and contracts paid for in the management information systems fund and as a result has realized a reduction to expenses. It has been determined that the unrestricted net position of this fund will improve under the current operating arrangement. 82 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 NOTE 10. DEPOSITS Deposits include resources received by the City before they are earned. Deposits held by the City include grant monies or donations received prior to the incurrence of qualifying expenditures and receivables that are not considered available to pay liabilities of the current period. Grant and other loans have agreements where payments may be payable in installments, due on sale or transfer of ownership of the underlying property, have deferred payment arrangements or may eventually be forgiven under the terms of the grant. The deposits liability reported by the City at June 30, 2014 consist of the following items: Deposits, governmental funds, balance sheet General Fund $ 9,785,815 Special Revenue Fund (Redevelopment Agency) 835,644 Nonmajor Governmental Funds 210,561 Deposits, governmental funds, balance sheet $ 10,832,020 Deposits Governmental Funds Grant loans receivable $ 7,825,235 Notes receivable 835,643 Prepaid interments 49,326 Grant program income 1,350,863 Miscellaneous deposits, general fund 560,392 Miscellaneous deposits, non‐major funds 210,561 Total $ 10,832,020 ` Proprietary Funds Miscellaneous donations $ 37,581 Nonmajor enterprise fund, airport prepaid lease 462,400 Total $ 499,981 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. 83 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 A. Pension 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% 2014 Rates as Percent of Covered Payroll: Employer…… 13.28% 13.99% 17.29% 44.98% / 4.46% 33.47% / 11.02% Member…… 6.00% ‐ ‐ NA / 16.71% ‐ Contributory System Local Government Public Safety/Fire Fighter System Noncontributory System Tier 1 Tier 2 Tier 1 Tier 2 Actual City Contributions Made, by year: 294,764 $ 2,014,206 $ 3,759,208 $ 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. Local Government Contributory Public Safety/Fire Fighter System System Retirement under age 65 with less than 35 years of services, the benefit will be reduced by approximately 7% for each Retirement under age 65 with less than 25 years of services, the benefit will be reduced by approximately 7% for each All or part may be paid by the City for the Employee 84 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 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 340,822 $ 205,235 $ 295,546 171,775 368,509 258,569 410,897 300,964 418,818 437,549 457 Plan Contributions Employee Employer 325,134 $ 44,387 $ 280,775 85,206 305,714 141,088 346,695 131,282 307,563 249,483 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 five 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 2010 to 2014 were as follows: Beginning of Changes Claim End of Year Year Liability in Estimates Payments Liability 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 2014 1,401,897 1,246,713 1,494,587 1,154,023 Risk Management Fund ‐ Uninsured Claims Liability 85 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 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 fiscal year ended June 30, 2014: Fairmont $ 1,195,528 Central Business District 1,380,539 South Central Business District………………………. 60,521 Lincoln Redevelopment……………………………..... 467,396 Washington 346,713 Lester 90,059 Golden 728 Park 59,827 25th 641,330 St. Benedicts 221,121 Union 23,779 12th 160,779 5,296,961 American Can 467,299 Wall Ave 114,306 West 12th 2,242,927 Hinckley 344,014 Hinckley 157,359 Ogden River 96,497 Outstanding principal amounts on bonded debt and other debt for the project areas at June 30, 2014: Bonded Debt Other Loans Central Business District……………………………. $ 29,605,000 $ 1,400,000 1,075,000 ‐ 25th 610,000 ‐ Wall 345,000 ‐ West 12th 3,200,000 ‐ 86 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 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 $50,995,638 as of June 30, 2014. 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 $9,032,400 over the remaining term. The original cost of the assets was $23,000,000, with a carrying amount of $16,891,586 as of June 30, 2014. NOTE 16. COMMITMENTS AND CONTINGENCIES A. Construction Commitments The City has active construction projects as of June 30, 2014. At year‐end the City’s commitments with contractors are as follows: Expended Remaining Project thru 6/30/14 Commitment Water system projects 1,466,116 $ 6,701,874 $ Sewer system projects 894,805 499,260 BDO infrastructure projects 1,237,303 1,233,197 General city projects 1,122,631 1,849,317 Totals 4,720,855 $ 10,283,648 $ B. Contingencies As of June 30, 2014, it was determined that negative cash balances being carried by debt service, fleet, facilities, electronics and stores, airport and dinosaur park funds in the amounts of $1,607, $2,702,203, 311,575 and $27,795, respectively, are recoverable under the current operating arrangements. NOTE 17. RESTATEMENT OF NET POSITION AND FUND BALANCE In fiscal year 2014, the City implemented GASB Statement No. 65, “Items Previously Reported as Assets and Liabilities.” As a result of the implementation a restatement to beginning net position was necessary to remove unamortized bond issuance costs from the balance sheet. The adjustment totaled $2,404,780 for governmental activities and $1,397,489 for business type activities. 87 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2014 NOTE 17. RESTATEMENT OF NET POSITION AND FUND BALANCE (Continued) These corrections had the following effects on beginning net position: Governmental‐Type Business‐Type Activities Activities Restatement to assets/net position: Net position as previously stated ‐ June 30,2013 142,841,328 $ 206,423,582 $ Restatement to remove unamortized bond issuance costs GASB Statement No. 65 implementation (2,404,780) (1,397,489) Restated net position ‐ June 30, 2013 140,436,548 $ 205,026,093 $ Government Wide Finacial Statements These corrections had the following effects on beginning net position/fund balance in the fund financials: Governmental Fund Proprietary Fund Financial Statements Financial Statements Restatements to net position/fund balance: Net position/Fund Balance as previously stated ‐ June 30, 2013 20,481,788 $ 206,423,582 $ Restatement to remove unamortized bond issuance costs GASB Statement No. 65 implementation ‐ (1,397,489) Restated net position/fund balance ‐ June 30, 2013 20,481,788 $ 205,026,093 $ The proprietary fund financial restatement of beginning net position were made in the Water Utility and Sewer Utility in the amounts of $1,192,154 and $205,335, respectively. NOTE 18. SUBSEQUENT EVENTS The fleet, facilities, electronics and stores fund capitalized $6,991,559 in new equipment during fiscal year 2014. The City was in the process of obtaining lease financing on part of this equipment. The leases had not been finalized by June 30, 2014. The City closed on two new capital leases soon after fiscal year 2014 ended. The City closed on the first new capital lease in July 2014 in the amount of $710,141. The lease is secured by vehicles purchased during fiscal year 2014. Lease proceeds were used to pay off an outstanding capital lease in the amount of $574,970 and to reimburse the fleet, facilities, electronic and stores fund for capital outlay expense in the amount of $185,171. The City closed on the second new capital lease in August 2014 in the amount of $2,394,921. The lease is secured by equipment purchased during fiscal year 2014. Lease proceeds were used to pay off an outstanding capital lease in the amount of $988,529 and to reimburse the fleet, facilities, electronic and stores fund for capital outlay expense in the amount of $1,406,392 The City was approved in August 2014 for a Department of Housing and Urban Development Section 108, Loan Guarantee in the amount of $3,340,000. The proceeds of this loan will be used by the Ogden City RDA in the Trackline Redevelopment Area for the acquisition and development of property. 88 ---PAGE BREAK--- Required Supplementary Information 89 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 90 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 91 ---PAGE BREAK--- Page 1 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes Property $ 10,596,750 $ 10,196,750 $ 10,172,491 $ (24,259) Sales 14,755,300 14,756,300 14,581,388 (174,912) Franchise 7,971,375 7,971,375 8,272,313 300,938 Other 5,128,700 5,128,700 5,065,522 (63,178) Total Taxes 38,452,125 38,053,125 38,091,714 38,589 Licenses and permits 1,975,775 1,975,775 2,301,809 326,034 Intergovernmental 5,782,300 10,908,324 6,822,806 (4,085,518) Charges for services 8,150,375 12,155,697 7,228,630 (4,927,067) Fines and forfeitures 2,735,250 2,735,250 2,168,991 (566,259) Interest 50,000 50,000 94,658 44,658 Miscellaneous 1,160,025 1,169,330 1,142,701 (26,629) Donations ‐ 50,700 55,606 4,906 Sale of property 5,000 5,000 ‐ (5,000) Total revenues 58,310,850 67,103,201 57,906,915 (9,196,286) EXPENDITURES: Mayor 534,825 510,695 504,700 5,995 City council 924,025 1,047,650 916,226 131,424 Management services Administration 518,450 509,130 506,069 3,061 Human resources 528,925 540,227 544,508 (4,281) Comptroller 595,100 619,680 537,383 82,297 Fiscal operations 559,425 589,575 596,745 (7,170) Purchasing 148,600 151,548 141,917 9,631 Recorder 432,400 448,770 411,837 36,933 Business license ‐ ‐ ‐ ‐ Fleet and facilities ‐ ‐ ‐ ‐ Justice Court 1,527,200 1,534,080 1,418,229 115,851 Total Management services 4,310,100 4,393,010 4,156,688 236,322 Corporate counsel 1,110,625 1,110,780 1,102,462 8,318 Non departmental 3,499,075 5,202,328 3,182,242 2,020,086 Police Administration 1,889,075 2,014,362 1,813,693 200,669 Uniform 9,069,575 8,889,251 8,585,685 303,566 Investigations 5,635,425 6,233,736 5,932,339 301,397 Support services 1,815,375 1,768,623 1,556,270 212,353 Animal services ‐ ‐ ‐ ‐ Total Police 18,409,450 18,905,972 17,887,987 1,017,985 Fire Administration 510,725 442,903 423,179 19,724 Prevention 400,650 485,575 371,814 113,761 Operations 6,046,100 6,040,092 6,045,837 (5,745) Medical ‐ ‐ ‐ ‐ Total Fire 6,957,475 6,968,570 6,840,830 127,740 Public services Administration 364,650 316,800 330,154 (13,354) Streets 3,179,700 3,280,850 3,314,951 (34,101) Engineering 1,514,175 1,570,675 1,274,567 296,108 OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year Ended June 30, 2014 92 ---PAGE BREAK--- Page 2 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget Public services (cont.) Arts, culture and events $ 371,525 $ 399,425 $ 321,252 $ 78,173 Parks and cemetery 2,987,150 3,073,110 3,069,726 3,384 Recreation 1,436,125 1,500,330 1,617,667 (117,337) Total Public services 9,853,325 10,141,190 9,928,317 212,873 Community and economic development Administration 1,299,475 1,454,820 1,358,557 96,263 Planning 641,450 644,700 649,931 (5,231) Neighborhood Development 2,724,800 6,307,562 1,558,793 4,748,769 Building Services 1,087,850 1,090,825 1,093,093 (2,268) Business Services 197,279 Community development 3,916,400 6,981,541 4,485,490 2,496,051 Total Community and economic development 9,669,975 16,479,448 9,343,143 7,333,584 Debt service Principal 2,000,000 2,000,000 2,000,000 ‐ Interest 250,550 250,550 280,844 (30,294) Total expenditures 57,519,425 67,010,193 56,143,439 11,064,033 Excess (deficiency) of revenues over expenditures 791,425 93,008 1,763,476 1,670,468 OTHER FINANCING SOURCES (USES): Transfers in 65,000 213,648 125,000 (88,648) Transfers out (1,030,675) (2,242,719) (2,242,719) ‐ Total other financing sources/(uses) (965,675) (2,029,071) (2,117,719) (88,648) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (174,250) (1,936,063) (354,243) 1,581,820 Fund balances at beginning of year 11,368,449 11,368,449 11,368,449 ‐ Fund balances at end of year $ 11,194,199 $ 9,432,386 $ 11,014,206 $ 1,581,820 93 ---PAGE BREAK--- Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ 17,271,400 $ 17,271,400 $ 13,453,876 $ (3,817,524) Charges for services 694,800 826,346 826,346 0 Miscellaneous income 15,000 15,000 32,714 17,714 Interest income 46,250 46,250 81,576 35,326 Sale of property ‐ 204,315 204,315 ‐ Total revenues 18,027,450 18,363,311 14,598,827 (3,764,484) EXPENDITURES: Current: City Council ‐ ‐ ‐ ‐ Community and Economic Development 9,232,400 10,045,275 3,487,667 6,557,608 Debt service: Debt service principal 4,676,500 4,676,500 5,375,000 (698,500) Debt service interest 2,394,650 2,394,650 1,997,612 397,038 Total expenditures 16,303,550 17,116,425 10,860,279 6,256,146 Excess (deficiency) of revenues over expenditures 1,723,900 1,246,886 3,738,548 2,491,662 OTHER FINANCING SOURCES (USES): Issuance of debt ‐ ‐ ‐ ‐ Refunded bonds redeemed ‐ ‐ ‐ ‐ Operating transfers in 4,509,900 4,509,900 4,632,506 122,606 Operating transfers out (6,233,800) (6,233,800) (7,161,665) (927,865) Total other financing sources (uses) (1,723,900) (1,723,900) (2,529,159) (805,259) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses ‐ (477,014) 1,209,389 1,686,403 Fund balance at beginning of year 731,568 731,568 731,568 ‐ Fund balance at end of year $ 731,568 $ 254,554 $ 1,940,957 $ 1,686,403 Budgeted Amounts OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE OGDEN REDEVELOPMENT AGENCY ‐ SPECIAL REVENUE FUND Year Ended June 30, 2014 94 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2014 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 at regular or special meeting, but 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 appropriate 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 on or 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. 95 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION Year Ended June 30, 2014 Summary of City Budget Procedures and Calendar (Continued) 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). 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 / 12/31/2013 $49,962 $70,786 $20,824 71% $5,831 357% 1/1/2013 $45,734 $68,315 $22,581 67% $5,678 398% 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% 96 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2014 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 312 centerline miles of City roads. The assessment is based on the Remaining Service Life (RSL). The City’s 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 2014 2013 2012 2011 2010 Fair or Better 88.5% 88.5% 88.5% 79.7% 79.7% Very Poor 0.0% 0.0% 0.0% 0.3% 0.3% 97 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2014 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 Services 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 the 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 2014 2013 2012 2011 2010 Good 54.5% 75.0% 75.0% 75.0% 84.0% Poor 0.0% 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 2014 $11,390,878 $ 6,002,118 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 98 ---PAGE BREAK--- Supplementary Information 99 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 100 ---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. 101 ---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 $ 9,589,100 $ ‐ $ 261,676 $ 238,783 $ 1,211,300 $ 2,143 $ 11,303,002 Accounts receivable (net) 26,579 ‐ ‐ 7,407 30,124 ‐ 64,110 Inventory, at cost ‐ ‐ ‐ ‐ 75,525 ‐ 75,525 Special assess. receivable ‐ ‐ ‐ 184,683 ‐ ‐ 184,683 Interest receivable ‐ ‐ ‐ 5,322 ‐ ‐ 5,322 Total current assets 9,615,679 ‐ 261,676 436,195 1,316,949 2,143 11,632,642 Restricted assets: Investments ‐ ‐ 416,391 ‐ ‐ 410,000 826,391 Total restricted assets ‐ ‐ 416,391 ‐ ‐ 410,000 826,391 Total assets $ 9,615,679 $ ‐ $ 678,067 $ 436,195 $ 1,316,949 $ 412,143 $ 12,459,033 LIABILITIES Due to other funds $ ‐ $ 1,607 $ ‐ $ ‐ $ ‐ $ ‐ $ 1,607 Accounts payable 1,869,147 ‐ ‐ 32,786 ‐ ‐ 1,901,933 Retainage payable 85,979 ‐ ‐ ‐ ‐ ‐ 85,979 Deposits 20,555 ‐ ‐ 190,006 ‐ ‐ 210,561 Total liabilities 1,975,681 1,607 ‐ 222,792 ‐ ‐ 2,200,080 FUND BALANCE Nonspendable Permanent fund principal ‐ ‐ ‐ ‐ ‐ 410,000 410,000 Inventory ‐ ‐ ‐ ‐ 75,525 ‐ 75,525 Spendable Restricted Unspent bond proceeds ‐ ‐ 416,391 ‐ ‐ ‐ 416,391 Assigned Downtown business promotion ‐ ‐ ‐ 213,403 ‐ ‐ 213,403 Debt service ‐ (1,607) 261,676 ‐ ‐ ‐ 260,069 Capital projects 7,639,998 ‐ ‐ ‐ ‐ ‐ 7,639,998 Special revenue ‐ ‐ ‐ ‐ 1,241,424 2,143 1,243,567 Total fund balance 7,639,998 (1,607) 678,067 213,403 1,316,949 412,143 10,258,953 Total liabilities and fund balances $ 9,615,679 $ ‐ $ 678,067 $ 436,195 $ 1,316,949 $ 412,143 $ 12,459,033 June 30, 2014 102 ---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 $ ‐ $ ‐ $ 534,800 $ ‐ $ 17,935 $ ‐ $ 552,735 Special assessments ‐ ‐ ‐ 225,478 ‐ ‐ 225,478 Interest 44,867 1,504 3,854 1,494 7,003 2,074 60,796 Intergovernmental 2,254,718 ‐ ‐ ‐ ‐ ‐ 2,254,718 Miscellaneous 44,430 ‐ ‐ ‐ ‐ ‐ 44,430 Total revenue 2,344,015 1,504 538,654 226,972 24,938 2,074 3,138,157 EXPENDITURES: Management Services 24,500 ‐ ‐ ‐ ‐ ‐ 24,500 Public services 4,023,060 ‐ ‐ ‐ (1,486) ‐ 4,021,574 Non‐departmental 35,788 ‐ 1,165 138,981 ‐ ‐ 175,934 Fire 995,180 995,180 Community and economic development 161,482 ‐ ‐ 160,138 ‐ ‐ 321,620 Bond principal ‐ ‐ 321,000 ‐ ‐ ‐ 321,000 Interest 11 7,062 216,742 ‐ ‐ ‐ 223,815 Total expenditures 5,240,021 7,062 538,907 299,119 (1,486) ‐ 6,083,623 Excess (deficiency) of revenues over expenditures before operating transfers (2,896,006) (5,558) (253) (72,147) 26,424 2,074 (2,945,466) OTHER FINANCING SOURCES (USES): Transfers in 4,829,648 ‐ ‐ 53,000 ‐ ‐ 4,882,648 Transfers out (60,000) ‐ ‐ ‐ ‐ (60,000) Total financing sources/uses: 4,769,648 ‐ ‐ 53,000 ‐ ‐ 4,822,648 Excess (deficiency) of revenues and other financing uses 1,873,642 (5,558) (253) (19,147) 26,424 2,074 1,877,182 Fund balance at the beginning of year 5,766,356 3,951 678,320 232,550 1,290,525 410,069 8,381,771 Fund balance at the end of year $ 7,639,998 $ (1,607) $ 678,067 $ 213,403 $ 1,316,949 $ 412,143 $ 10,258,953 Special Revenue OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENT FUNDS Year Ended June 30, 2014 103 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT PROJECTS Year Ended June 30, 2014 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Intergovernmental $ 760,775 $ 5,185,775 $ 2,254,718 $ (2,931,057) Miscellaneous ‐ 4,798,707 44,430 (4,754,277) Interest 10,000 10,000 44,867 34,867 Total revenues 770,775 9,994,482 2,344,015 (7,650,467) EXPENDITURES: Current: City Council ‐ ‐ ‐ ‐ Non‐departmental ‐ 543,753 35,788 507,965 Management Services ‐ 337,884 24,500 313,384 Public services 2,389,000 11,906,532 4,023,060 7,883,472 Fire ‐ 1,128,926 995,180 133,746 Community and economic developmen 124,025 255,989 161,482 94,507 Total expenditures 2,513,025 14,173,084 5,240,021 8,933,063 Excess (deficiency) of revenues over expenditures (1,742,250) (4,178,602) (2,896,006) 1,282,596 OTHER FINANCING SOURCES (USES): Transfers in 1,973,000 4,558,000 4,829,648 271,648 Transfers out (230,750) (379,398) (60,000) 319,398 Total other financing sources (uses) 1,742,250 4,178,602 4,769,648 591,046 Excess (deficiency) of revenues/sources over (under) expenditures/uses ‐ ‐ 1,873,642 1,873,642 Fund balance at beginning of year 5,766,356 5,766,356 5,766,356 ‐ Fund balance at end of year $ 5,766,356 $ 5,766,356 $ 7,639,998 $ 1,873,642 104 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DEBT SERVICE Year Ended June 30, 2014 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Interest $ ‐ $ ‐ $ 1,504 $ 1,504 Total revenues ‐ ‐ 1,504 1,504 EXPENDITURES: Current: Interest and fiscal charges ‐ ‐ 7,062 (7,062) Total expenditures ‐ ‐ 7,062 (7,062) Excess (deficiency) of revenues over expenditures ‐ ‐ (5,558) (5,558) Excess (deficiency) of revenues/sources over (under) expenditures/uses ‐ ‐ (5,558) (5,558) Fund balance at beginning of year 3,951 3,951 3,951 ‐ Fund balance at end of year $ 3,951 $ 3,951 $ (1,607) $ (5,558) 105 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE MUNICIPAL BUILDING AUTHORITY Year Ended June 30, 2014 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 534,800 $ 534,800 $ 534,800 $ ‐ Interest 10,000 10,000 3,854 (6,146) Total revenues 544,800 544,800 538,654 (6,146) EXPENDITURES: Debt service: Non‐departmental 1,200 1,200 1,165 35 Principal 321,000 321,000 321,000 ‐ Interest and fiscal charges 217,600 217,600 216,742 858 Total expenditures 539,800 539,800 538,907 893 Excess (deficiency) of revenues over expenditures 5,000 5,000 (253) (5,253) OTHER FINANCING SOURCES (USES): Transfers out ‐ ‐ ‐ ‐ Total other financing sources (uses) ‐ ‐ ‐ ‐ Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 5,000 5,000 (253) (5,253) Fund balance at beginning of year 678,320 678,320 678,320 ‐ Fund balance at end of year $ 678,320 $ 683,320 $ 678,067 $ (5,253) 106 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DOWNTOWN SPECIAL ASSESSMENT Year Ended June 30, 2014 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments $ 216,250 $ 216,250 $ 225,478 $ 9,228 Interest 750 750 1,494 744 Total revenues 217,000 217,000 226,972 9,972 EXPENDITURES: Current: Non‐departmental 143,000 143,000 138,981 4,019 Community and Economic Developmen 160,000 160,000 160,138 (138) Total expenditures 303,000 303,000 299,119 3,881 Excess (deficiency) of revenues over expenditures (86,000) (86,000) (72,147) 13,853 OTHER FINANCING SOURCES (USES): Transfers in 53,000 53,000 53,000 ‐ Total other financing sources (uses) 53,000 53,000 53,000 ‐ Excess (deficiency) of revenues/sources over expenditures/uses (53,000) (53,000) (19,147) 13,853 Fund balance at beginning of year 232,550 232,550 232,550 ‐ Fund balance at end of year 232,550 $ $ 199,550 $ 213,403 $ 13,853 107 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CEMETERY PERPETUAL CARE Year Ended June 30, 2014 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 9,250 $ 9,250 $ 17,935 $ 8,685 Interest 12,000 12,000 7,003 (4,997) Total revenues 21,250 21,250 24,938 3,688 EXPENDITURES: Current: Public services 21,250 21,250 (1,486) 22,736 Total expenditures 21,250 21,250 (1,486) 22,736 Excess (deficiency) of revenues over expenditures ‐ ‐ 26,424 26,424 Fund balance at beginning of year 1,290,525 1,290,525 1,290,525 ‐ Fund balance at end of year $ 1,290,525 $ 1,290,525 $ 1,316,949 $ 26,424 108 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE Permanent Trust Fund GOMER A. NICHOLAS Year Ended June 30, 2014 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Interest $ 150 $ 150 $ 2,074 $ 1,924 Total revenues 150 150 2,074 1,924 EXPENDITURES: Current: Management services ‐ ‐ ‐ ‐ Total expenditures ‐ ‐ ‐ ‐ Excess (deficiency) of revenues over expenditures 150 150 2,074 1,924 OTHER FINANCING SOURCES (USES): Transfers out (150) (150) ‐ 150 Total other financing sources (uses) (150) (150) ‐ 150 Excess (deficiency) of revenues/sources over (under) expenditures/uses ‐ ‐ 2,074 2,074 Fund balance at beginning of year 410,069 410,069 410,069 ‐ Fund balance at end of year $ 410,069 $ 410,069 $ 412,143 $ 2,074 109 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 110 ---PAGE BREAK--- Nonmajor Enterprise Funds 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. 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. 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. Dinosaur Park Fund To account for the administration, operation and maintenance of the dinosaur park. 111 ---PAGE BREAK--- Page 1 of 2 Golf ASSETS Refuse Airport Courses Current assets Cash $ 958,926 $ ‐ $ 525,897 Accounts receivable (net) 504,924 201,467 18,978 Inventory, at cost ‐ ‐ 59,352 Loans to other funds 2,042,191 ‐ ‐ Total current assets 3,506,041 201,467 604,227 Noncurrent assets Notes receivable 596,836 ‐ ‐ Subtotal 596,836 ‐ ‐ Restricted assets Investments 317,620 ‐ ‐ Subtotal 317,620 ‐ ‐ Capital Assets: Land 502,250 1,941,461 34,800 Buildings 1,110,983 888,968 714,486 Construction in process ‐ ‐ ‐ Improvements ‐ 26,723,619 2,199,687 Equipment ‐ 1,008,525 ‐ 1,613,233 30,562,573 2,948,973 Less accumulated depreciation (605,576) (12,466,535) (2,029,144) Net capital assets 1,007,657 18,096,038 919,829 Total noncurrent assets 1,922,113 18,096,038 919,829 Total assets 5,428,154 18,297,505 1,524,056 LIABILITIES AND NET POSITION LIABILITIES: Current liabilities Due to other funds ‐ 311,575 ‐ Accounts payable 103,107 14,448 28,441 Accrued wages payable 14,936 5,067 10,007 Accrued compensated absences 26,271 13,647 14,291 Deposits ‐ 462,400 11,768 Accrued bond interest 1,752 ‐ ‐ Revenu bonds/note payable 270,000 ‐ ‐ Total current liabilities 416,066 807,137 64,507 Noncurrent liabilities Revenue bonds 600,000 ‐ ‐ Compensated absences 61,299 31,843 33,345 Loans from other funds ‐ 1,500,538 400,869 Total noncurrent liabilities 661,299 1,532,381 434,214 Total liabilities 1,077,365 2,339,518 498,721 NET POSITION: Net investment in capital assets 1,007,657 18,096,038 919,829 Restricted net assets 317,620 ‐ ‐ Unrestricted 3,025,512 (2,138,051) 105,506 Total net position $ 4,350,789 $ 15,957,987 $ 1,025,335 COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS June 30, 2014 112 ---PAGE BREAK--- Page 2 of 2 Medical Dinosaur Recreation Services Park Total $ 51,060 $ 2,464,243 $ ‐ $ 4,000,126 6,634 1,875,057 ‐ 2,607,060 ‐ ‐ ‐ 59,352 ‐ ‐ ‐ 2,042,191 57,694 4,339,300 ‐ 8,708,729 ‐ ‐ ‐ 596,836 ‐ ‐ ‐ 596,836 ‐ ‐ ‐ 317,620 ‐ ‐ ‐ 317,620 ‐ ‐ ‐ 2,478,511 ‐ ‐ ‐ 2,714,437 70,470 ‐ ‐ 70,470 118,530 ‐ ‐ 29,041,836 281,446 392,325 ‐ 1,682,296 470,446 392,325 ‐ 35,987,550 (128,138) (92,360) ‐ (15,321,753) 342,308 299,965 ‐ 20,665,797 342,308 299,965 ‐ 21,580,253 400,002 4,639,265 ‐ 30,288,982 ‐ ‐ 27,795 339,370 25,328 186,715 ‐ 358,039 2,020 41,004 ‐ 73,034 ‐ 89,744 ‐ 143,953 1,376 ‐ ‐ 475,544 ‐ ‐ ‐ 1,752 ‐ ‐ ‐ 270,000 28,724 317,463 27,795 1,661,692 ‐ ‐ 600,000 ‐ 209,402 ‐ 335,889 ‐ ‐ ‐ 1,901,407 ‐ 209,402 ‐ 2,837,296 28,724 526,865 27,795 4,498,988 342,308 299,965 ‐ 20,665,797 ‐ ‐ 317,620 28,970 3,812,435 (27,795) 4,806,577 $ 371,278 $ 4,112,400 $ (27,795) $ 25,789,994 113 ---PAGE BREAK--- OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2014 Page 1 of 2 Golf Refuse Airport Courses OPERATING REVENUES Charges for services $ 5,224,433 $ 366,913 $ 983,935 Intergovernmental charges ‐ ‐ 82,825 Miscellaneous income 1,151 28,473 19,911 5,225,584 395,386 1,086,671 OPERATING EXPENSES Cost of materials and parts ‐ ‐ 128,869 Personal services: Salaries and wages 580,632 302,900 434,593 Benefits 260,574 127,330 126,976 Supplies Office supplies 1,691 2,474 2,824 Operating supplies 11,077 10,483 52,441 Repair and maintenance supplies 375 3,412 1,024 Charges for services: Disposal charges 847,573 Public utility services 6,682 76,322 77,018 Travel and education 105 14,747 1,700 Contracted agreements 82,227 124,225 40,012 Other operating expenses: Rental charges 64,230 2,642 213 Fiscal charges 1,077,398 ‐ ‐ Depreciation 42,117 1,094,958 44,253 Data processing 28,000 16,075 10,000 Maintenance and repair 224,192 (260,105) 31,566 Vehicle operating expenses 897,584 68,339 168,775 Miscellaneous 93,576 32,874 28,457 Total operating expenses 4,218,033 1,616,676 1,148,721 Operating income (loss) 1,007,551 (1,221,290) (62,050) NON‐OPERATING REVENUES (EXPENSES) Revenues Interest income 26,016 (4,508) 1,842 Grants and donations ‐ 658,913 ‐ Expenses: Interest expense (37,523) ‐ ‐ Total non‐operating revenues (expenses) (11,507) 654,405 1,842 Capital contributions ‐ ‐ ‐ Income before operating transfers 996,044 (566,885) (60,208) Transfers in ‐ 232,675 545,000 Change in net position 996,044 (334,210) 484,792 Net position, beginning 3,354,745 16,292,197 540,543 Net position, ending $ 4,350,789 $ 15,957,987 $ 1,025,335 114 ---PAGE BREAK--- Page 2 of 2 Medical Dinosaur Recreation Services Park Totals $ 240,885 $ 4,173,624 $ ‐ $ 10,989,790 ‐ 1,874,010 ‐ 1,956,835 ‐ ‐ ‐ 49,535 240,885 6,047,634 ‐ 12,996,160 ‐ ‐ ‐ 128,869 61,055 2,332,265 ‐ 3,711,445 7,149 1,180,357 ‐ 1,702,386 2,536 4,219 ‐ 13,744 51,016 133,394 ‐ 258,411 ‐ 9,788 ‐ 14,599 847,573 10,488 79,011 ‐ 249,521 ‐ 5,699 ‐ 22,251 89,337 493,127 ‐ 828,928 3,043 8,575 ‐ 78,703 6,544 538,638 ‐ 1,622,580 3,038 35,464 ‐ 1,219,830 ‐ 75,000 ‐ 129,075 (341,133) 22,556 ‐ (322,924) 343,826 224,332 ‐ 1,702,856 23,801 193,051 ‐ 371,759 260,700 5,335,476 ‐ 12,579,606 (19,815) 712,158 ‐ 416,554 262 51,177 ‐ 74,789 ‐ ‐ ‐ 658,913 ‐ ‐ ‐ (37,523) 262 51,177 ‐ 696,179 343,826 ‐ ‐ 343,826 324,273 763,335 ‐ 1,456,559 ‐ ‐ ‐ 777,675 324,273 763,335 ‐ 2,234,234 47,005 3,349,065 (27,795) 23,555,760 $ 371,278 $ 4,112,400 $ (27,795) $ 25,789,994 115 ---PAGE BREAK--- Page 1 of 2 Refuse Airport Golf CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 5,293,376 $ 780,090 $ 1,092,696 Cash received (paid) from (to) other funds ‐ 311,575 ‐ Cash payments to suppliers for goods and services (3,325,037) (516,720) (538,133) Cash payments to employees for services (834,155) (433,368) (551,638) Net cash provided by (used in) operating activities 1,134,184 141,577 2,925 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Payments paid on interfund loans ‐ (115,425) (133,650) Grants/donations ‐ 658,913 ‐ Transfers in ‐ 232,675 545,000 Transfers (out) ‐ ‐ ‐ Net cash provided by noncapital financing activities ‐ 776,163 411,350 CASH FLOWS FROM CAPTIAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets ‐ (776,248) ‐ Capital grants and contributions ‐ ‐ ‐ Change in retainage payable (1,138) (272,952) ‐ Net cash provided by (used in) capital and related financing activities (1,138) (1,049,200) ‐ CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 4,017 (4,508) 1,842 Net cash from investing activities 4,017 (4,508) 1,842 Net increase (decrease) in cash equivalents 1,137,063 (135,968) 416,117 Cash/equivalents at beginning of year 117,634 135,968 109,780 Cash/equivalents at end of year $ 1,254,697 $ ‐ $ 525,897 Cash/equivalents, end of year (unrest.) 958,926 ‐ 525,897 Cash/equivalents, end of year (restricted) ‐ ‐ ‐ Total cash/equivalents, end of year $ 958,926 $ ‐ $ 525,897 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ 1,007,551 $ (1,221,290) $ (62,050) Reconciliation adjustments: Depreciation 42,117 1,094,958 44,253 Changes in assets and liabilities: Change in accounts receivable 67,792 384,704 6,025 Change in inventory ‐ ‐ (406) Change in due to other funds ‐ 311,575 ‐ Change in accounts payable 9,673 (411,632) (4,848) Change in wages payable and compensated absences 7,051 (3,138) 9,931 Total adjustments 126,633 1,362,867 64,975 Net cash provided by (used in) operating activities $ 1,134,184 $ 141,577 $ 2,925 OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS Year Ended June 30, 2014 116 ---PAGE BREAK--- Page 2 of 2 Medical Dinosaur Recreation Services Park Total $ 240,311 5,835,529 $ ‐ $ 7,948,626 ‐ ‐ ‐ 311,575 (187,725) (1,638,404) ‐ (2,880,982) (68,509) (3,524,554) ‐ (4,578,069) (15,923) 672,571 ‐ 801,150 ‐ ‐ ‐ (249,075) ‐ ‐ ‐ 658,913 ‐ ‐ ‐ 777,675 343,826 ‐ ‐ 343,826 343,826 ‐ ‐ 1,531,339 ‐ (194,512) ‐ (970,760) (343,826) ‐ ‐ (343,826) ‐ ‐ ‐ (272,952) (343,826) (194,512) ‐ (1,587,538) 262 51,177 ‐ 48,773 262 51,177 ‐ 48,773 (15,661) 529,236 ‐ 793,724 66,721 1,935,007 ‐ 2,247,476 $ 51,060 2,464,243 $ ‐ $ 3,041,200 51,060 2,464,243 ‐ 3,041,200 ‐ ‐ ‐ ‐ $ 51,060 2,464,243 $ ‐ $ 3,041,200 $ (19,815) 712,158 $ ‐ $ (590,997) 3,038 35,464 ‐ 1,177,713 (574) (212,105) ‐ 178,050 ‐ ‐ ‐ (406) ‐ ‐ ‐ 311,575 1,153 148,986 ‐ (266,341) (305) (11,932) ‐ (5,444) 3,892 (39,587) ‐ 1,392,147 $ (15,923) 672,571 $ ‐ $ 801,150 117 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 118 ---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. 119 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk ASSETS Stores Systems Management Totals Current assets Cash $ ‐ $ 14,679 $ 1,546,184 $ 1,560,863 Accounts receivable 122,383 1,304 8,416 132,103 Prepaid expenses ‐ ‐ ‐ ‐ Due from other funds ‐ ‐ ‐ ‐ Loans to other funds ‐ ‐ ‐ ‐ Inventory, at cost 1,021,362 ‐ ‐ 1,021,362 Total current assets 1,143,745 15,983 1,554,600 2,714,328 Noncurrent assets Cash 921,916 ‐ ‐ 921,916 Employee PC loans receivable ‐ 96,955 ‐ 96,955 Total noncurrent assets 921,916 96,955 ‐ 1,018,871 Capital assets: Land 9,000 ‐ ‐ 9,000 System development in process ‐ 5,000 ‐ 5,000 Buildings 1,603,918 ‐ ‐ 1,603,918 Improvements other than buildings 293,877 ‐ ‐ 293,877 Equipment 9,104,566 2,276,590 ‐ 11,381,156 Vehicles 14,382,268 ‐ ‐ 14,382,268 Intangible ‐ 435,097 ‐ 435,097 Total capital assets 25,393,629 2,716,687 ‐ 28,110,316 Less accumulated depreciation/amortization (13,699,347) (2,292,662) ‐ (15,992,009) Net capital assets 11,694,282 424,025 ‐ 12,118,307 Total noncurrent assets 12,616,198 520,980 ‐ 13,137,178 Total assets $ 13,759,943 $ 536,963 $ 1,554,600 $ 15,851,506 LIABILITIES AND FUND EQUITY Current liabilities Due to other funds $ 2,702,203 $ ‐ $ ‐ $ 2,702,203 Accounts payable 540,988 59,992 35,588 636,568 Capital leases 1,173,560 ‐ ‐ 1,173,560 Other payable 231,695 ‐ ‐ 231,695 Claims payable ‐ ‐ 639,576 639,576 Accrued wages payable 17,146 17,001 653 34,800 Accrued compensated absences 23,301 23,834 299 47,434 Total current liabilities 4,688,893 100,827 676,116 5,465,836 Noncurrent liabilities Claims payable ‐ ‐ 514,447 514,447 Capital leases 1,781,612 ‐ ‐ 1,781,612 Compensated absences 54,370 55,612 698 110,680 Total noncurrent liabilities 1,835,982 55,612 515,145 2,406,739 Total liabilities 6,524,875 156,439 1,191,261 7,872,575 NET POSITION RETAINED EARNINGS: Net investment in capital assets 8,739,110 424,025 ‐ 9,163,135 Restricted for replacement 921,916 ‐ ‐ 921,916 Unrestricted (2,425,958) (43,501) 363,339 (2,106,120) Total net position 7,235,068 380,524 363,339 7,978,931 Total liabilities/fund equity $ 13,759,943 $ 536,963 $ 1,554,600 $ 15,851,506 OGDEN CITY CORPORATION COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2014 120 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk Stores Systems Management Totals OPERATING REVENUES: Charges to departments $ 8,499,357 $ 3,383,351 $ 2,070,485 $ 13,953,193 Miscellaneous income 87,407 108,864 42,542 238,813 Total operating income 8,586,764 3,492,215 2,113,027 14,192,006 OPERATING EXPENSES: Cost of materials and parts 2,832,055 ‐ ‐ 2,832,055 Personal services: Salaries and wages 913,341 926,480 41,799 1,881,620 Benefits 435,898 396,220 11,955 844,073 Supplies: Office supplies 3,601 9,893 5,219 18,713 Operating supplies 101,526 (79) 352 101,799 Repair and maintenance Supplies 3,638 ‐ ‐ 3,638 Charges for services: Public utility services 952,449 367,894 3,661 1,324,004 Travel and education 3,466 7,235 7,134 17,835 Contracted agreements 1,421,525 883,683 355,863 2,661,071 Other operating expenses: Computer equipment ‐ 491,219 ‐ 491,219 Depreciation/amortization 2,803,845 245,015 ‐ 3,048,860 Data processing 114,850 2,146 24,750 141,746 Maintenance and repair 95,515 266 ‐ 95,781 Vehicle operating expenses 219,693 3,684 2,743 226,120 Claims payments ‐ ‐ 545,035 545,035 Rental expense 40,262 ‐ 119 40,381 Miscellaneous 7,767 6,111 305 14,183 Total operating expenses 9,949,431 3,339,767 998,935 14,288,133 Operating income (loss) (1,362,667) 152,448 1,114,092 (96,127) NON‐OPERATING REVENUES (EXPENSES): Revenues: Interest income (1,591) 25 5,462 3,896 Gain on sale of assets 2,011,982 ‐ ‐ 2,011,982 Expenses: Interest expense (50,592) (3,621) ‐ (54,213) Total non‐operating revenue (expense) 1,959,799 (3,596) 5,462 1,961,665 Income before operating transfers 597,132 148,852 1,119,554 1,865,538 Transfers in 600,000 ‐ ‐ 600,000 Change in net assets 1,197,132 148,852 1,119,554 2,465,538 Net Position, beginning 6,037,936 231,672 (756,215) 5,513,393 Net Position, ending $ 7,235,068 $ 380,524 $ 363,339 $ 7,978,931 OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS Year Ended June 30, 2014 121 ---PAGE BREAK--- Fleet, Facilities, Management Electronics and Information Risk Stores Systems Management Totals CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 8,753,797 $ 3,504,428 $ 2,104,611 $ 14,362,836 Cash received (paid) from (to) other funds 2,588,068 (236,837) ‐ 2,351,231 Cash payments to suppliers for goods and services (5,709,197) (1,818,039) (1,209,057) (8,736,293) Cash payments to employees for services (1,340,988) (1,322,097) (55,514) (2,718,599) Net cash from operating activities 4,291,680 127,455 840,040 5,259,175 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Grants/Donations ‐ ‐ ‐ ‐ Operating transfers in 600,000 ‐ ‐ 600,000 PC loans paid ‐ (8,530) ‐ (8,530) Interest expense on cash deficit (1,591) ‐ ‐ (1,591) Net cash from noncapital financing activities 598,409 (8,530) ‐ 589,879 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (3,437,622) (100,650) ‐ (3,538,272) Payments on contracts payable 219,642 ‐ ‐ 219,642 Interest expense on loans (50,592) (3,621) ‐ (54,213) Proceeds from sale of assets (699,851) ‐ ‐ (699,851) Net cash from capital financing activities (3,968,423) (104,271) ‐ (4,072,694) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments ‐ 25 5,462 5,487 Interest expense on cash deficits (1,591) ‐ ‐ (1,591) Net cash from investing activities (1,591) 25 5,462 3,896 Net increase (decrease) in cash equivalents 920,075 14,679 845,502 1,780,256 Cash/equivalents, beginning 250 ‐ 700,682 700,932 Cash/equivalents, ending $ 920,325 $ 14,679 $ 1,546,184 $ 2,481,188 Cash and cash equivalents at end of year: Unrestricted cash ‐ 14,679 1,546,184 1,560,863 Restricted cash 921,916 ‐ ‐ 921,916 Total cash at end of year $ 921,916 $ 14,679 $ 1,546,184 $ 2,482,779 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ (1,362,667) $ 152,448 $ 1,114,092 $ (96,127) Reconciliation adjustments: Depreciation 2,803,845 245,015 ‐ 3,048,860 Changes in assets and liabilities: Change in accounts receivable 167,033 12,213 (8,416) 170,830 Change in inventory (76,786) ‐ ‐ (76,786) Change in due to other funds 2,588,068 (236,837) ‐ 2,351,231 Change in accounts payable 100,503 (45,987) (16,002) 38,514 Change in claims payable ‐ ‐ (247,874) (247,874) Change in wages payable 8,251 603 (1,760) 7,094 Change in other accrued liabilities 63,433 ‐ ‐ 63,433 Total adjustments 5,654,347 (24,993) (274,052) 5,355,302 Net cash provided by (used in) operating activities $ 4,291,680 $ 127,455 $ 840,040 $ 5,259,175 OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year Ended June 30, 2014 122 ---PAGE BREAK--- OGDEN CITY, UTAH Year Ended June 30, 2014 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 2014 2013 Land 19,652,522 $ 19,652,522 $ Buildings and improvements 115,847,988 113,925,217 Machinery and equipment 3,133,445 2,875,932 Infrastructure 103,411,110 101,183,148 Construction in progress 2,253,438 231,170 Accumulated depreciation (69,446,656) (64,994,722) Net Governmental Funds, capital assets 174,851,847 $ 172,873,267 $ 123 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 124 ---PAGE BREAK--- Statistical Section 125 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 126 ---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. 127 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 128 ---PAGE BREAK--- FINANCIAL TRENDS (Unaudited) 129 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 130 ---PAGE BREAK--- Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Governmental activities Invested in capital assets, net of related debt $ 137,742,706 $ 123,243,516 $ 118,429,865 $ 107,084,787 $ 104,512,977 $ 107,653,088 $ 92,141,925 $ 84,313,339 $ 87,589,530 $ 88,862,111 Restricted 2,966,964 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 Unrestricted 15,138,427 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) Total governmental activities net position $ 155,848,097 $ 140,436,548 $ 133,667,855 $ 125,606,537 $ 121,846,660 $ 129,381,732 $ 118,580,890 $ 111,251,954 $ 102,582,857 $ 87,464,841 Business‐type activities Invested in capital assets, net of related debt $ 166,139,531 $ 163,995,375 $ 162,826,097 $ 173,316,247 $ 172,332,110 $ 176,302,702 $ 168,598,250 $ 166,219,757 $ 159,802,111 $ 172,829,482 Restricted 1,596,535 2,041,003 349,829 349,228 349,228 349,228 49,280,783 992,091 956,676 1,971,539 Unrestricted 41,986,040 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 Total business‐type activities net position $ 209,722,106 $ 205,026,125 $ 198,626,699 $ 194,722,324 $ 191,350,071 $ 184,695,993 $ 174,899,441 $ 176,110,114 $ 176,494,469 $ 184,682,294 Primary government Invested in capital assets, net of related debt $ 303,882,237 $ 287,238,891 $ 281,255,962 $ 280,401,034 $ 276,845,087 $ 283,955,790 $ 260,740,175 $ 250,533,096 $ 247,391,641 $ 261,691,593 Restricted 4,563,499 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 Unrestricted 57,124,467 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) Total primary government net position $ 365,570,203 $ 345,462,673 $ 332,294,554 $ 320,328,861 $ 313,196,731 $ 314,077,725 $ 293,480,331 $ 287,362,068 $ 279,077,326 $ 272,147,135 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 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Value by Dollars Year Net Position by Component Governmental activities Business-type activities Primary government 131 ---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 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Revenues Governmental Activities: General Revenues: Taxes $ 46,518,197 $ 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 Other General Revenues 3,131,238 403,045 (35,630) 880,693 (8,614,254) 1,585,578 3,077,324 971,051 2,043,186 2,488,483 Charges for Services: General Administration 17,997,423 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 Public Safety 3,121,855 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 Transportation 257,318 295,025 295,025 110,025 110,025 ‐ ‐ ‐ ‐ ‐ Environmental Protection 3,452,737 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 Leisure Opportunities 372,520 401,455 420,549 409,028 340,475 314,290 1,039,951 1,147,366 1,104,187 ‐ Community Development 2,807,012 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 Operating Grants and Contributions 4,064,906 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 Capital Grants and Contributions 6,317,596 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 Total Governmental Activities Revenues 88,040,802 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 Business‐Type Activities: General Revenues: Other General Revenues 326,267 451,878 (215,239) 428,920 1,452,281 1,359,677 1,085,558 869,725 4,664,474 862,142 Charges for Services: Medical Services 6,047,634 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 Airport 395,386 349,594 321,301 318,584 295,622 275,495 323,346 273,730 304,641 274,992 Utilities 33,182,470 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 Refuse 5,225,584 5,119,494 4,945,202 4,878,913 4,678,149 4,925,650 4,859,881 4,019,859 ‐ ‐ Recreation 1,244,731 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 Property Management 4,068,641 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 Operating Grants and Contributions 82,825 4,937 ‐ ‐ ‐ ‐ ‐ 1,630,527 2,974,921 2,042,822 Capital Grants and Contributions 658,913 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 Total Business‐Type Activities Revenues 51,232,451 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 Total Primary Government Revenues 139,273,253 132,904,421 128,600,229 125,794,785 110,861,623 119,684,178 118,124,638 102,056,889 $ 101,128,713 $ 101,052,723 Expenses Governmental Activities: General Administration $ 25,434,444 $ 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 Public Safety 26,854,122 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 Transportation 5,500,657 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 Environmental Protection 667,371 531,471 582,561 585,712 557,528 510,501 520,604 422,424 398,019 25,072 Leisure Opportunities 6,140,594 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 Community Development 6,854,489 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 Interest on Long‐Term Debt 1,832,516 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 Total Governmental Activities Program Expenses 73,284,193 68,892,008 72,073,559 75,533,884 72,760,279 76,804,886 78,558,391 62,024,187 63,481,690 61,363,161 132 ---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 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Business‐Type Activities: Medical Services 5,335,476 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 Airport 1,616,676 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 Utilities 28,595,847 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 Refuse 4,255,556 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 Recreation 1,409,421 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 Property Management 4,668,521 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 45,881,497 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 Total Primary Government Program Expenses $ 119,165,690 $ 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 Change in Net Position Before Transfers: Net (Expense)/Revenue Governmental activities $ 14,756,609 $ 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 Business‐type activities 5,350,954 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) Total primary government net (expense)/revenue $ 20,107,563 $ 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 General Revenues and Other Changes in Net Position Governmental Activities: Special item $ ‐ (2,800,394) (255,224) $ ‐ $ ‐ $ 12,289,714 $ ‐ $ ‐ $ ‐ $ ‐ Transfers 654,940 $ 412,294 $ 3,525,450 1,970,747 (2,095,672) 847,340 4,070,296 622,796 12,734,014 (2,960,213) Total Governmental Activities 654,940 (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) Business‐Type Activities: Transfers (654,940) (412,294) (3,525,450) (1,970,747) 2,095,672 (847,340) (4,070,296) (622,796) (12,734,014) 2,960,213 Total Business‐Type Activities (654,940) (412,294) (3,525,450) (1,970,747) 2,095,672 (847,340) (4,070,296) (622,796) (12,734,014) 2,960,213 Total Primary Government $ ‐ $ (2,800,394) $ ‐ $ ‐ $ ‐ $ 12,289,714 $ ‐ $ ‐ $ ‐ $ ‐ Change in Net Position Governmental Activities $ 15,411,549 $ 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 Business‐Type Activities 4,696,014 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) Total primary government $ 20,107,563 $ 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 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. 133 ---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 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Revenues Taxes and special assessments $ 51,771,068 $ 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 Licenses and permits 2,301,809 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 Intergovernmental 9,077,524 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 Charges for services 8,607,711 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 Fines and forfeitures 2,168,991 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 Miscellaneous 171,802 140,142 1,443,708 1,226,922 1,814,732 2,667,732 4,793,505 1,893,025 1,793,608 1,419,727 Outside donations 1,142,701 1,080,848 36,250 482,149 27,602 3,000 1,651 128,464 80,806 63,431 Interest 197,978 130,779 307,907 171,455 252,352 1,198,243 1,348,315 1,863,408 1,287,672 896,004 Sale of property 204,315 113,908 279,562 32,901 1,446,331 134,042 2,920,324 802,272 569,303 1,434,827 Total revenues 75,643,899 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 Expenditures General government: Mayor 504,700 518,787 477,079 441,968 431,006 462,660 494,642 496,415 433,797 415,256 City Council 916,226 850,486 790,373 841,362 735,459 781,376 793,726 752,183 634,277 537,695 Management Services 4,181,188 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 Circuit Court ‐ ‐ ‐ 70,116 66,709 63,600 61,200 34,020 34,020 34,020 Corporate Counsel 1,102,462 1,078,100 1,065,323 1,045,253 1,007,730 973,207 955,813 922,204 896,177 814,485 Non Departmental 3,280,228 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 Police 17,887,987 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 Fire 6,935,033 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 Community & Economic Develop 12,346,227 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 Public Services 10,570,902 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 7,696,000 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 Interest and Fiscal Charges 2,502,271 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 Fees and Assessments ‐ ‐ 34,500 ‐ ‐ ‐ ‐ ‐ 39,950 ‐ Capital Outlay 5,164,117 2,629,601 2,647,689 ‐ ‐ ‐ ‐ ‐ 91,000 9,064,289 Total expenditures 73,087,341 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 Excess of revenues over (under) expenditures 2,556,558 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) 134 ---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 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 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 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) ‐ Issuance of Refunding Bond ‐ ‐ ‐ ‐ ‐ 8,125,000 ‐ ‐ ‐ ‐ Special item ‐ (2,800,394) 255,224 ‐ ‐ 12,289,714 ‐ ‐ ‐ ‐ Operating Transfers In 9,640,154 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 Operating Transfers Out (9,464,384) (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) Total other financing sources (uses) 175,770 (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) Net change in fund balances $ 2,732,328 $ 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) Debt service as a percentage of noncapital expenditures 15.0% 16.3% 16.4% 13.2% 16.2% 14.4% 13.6% 12.8% 14.5% 10.7% 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. 69% 3% 12% 11% 3% 0% 2% 0% 0% 2014 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% 5% 26% 10% 18% 16% 15% 2014 Government Fund Expenditures Mayor City Council Management Services Corporate Counsel Non Departmental Police Fire Community & Economic Development Public Services Debt Service 135 ---PAGE BREAK--- Ogden City Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (UNAUDITED) Fiscal Year Fiscal Year Fiscal Year Fiscal Year 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 General Fund Reserved $ $ $ $ $ 4,746,524 $ 6,716,162 $ 7,576,817 $ 8,926,257 $ 12,431,274 $ 10,596,273 Unreserved/Designated 1,684,623 1,445,969 1,160,253 983,584 84,109 276,897 Unreserved/Undesignated 3,036,171 2,994,167 3,201,230 3,983,421 4,579,463 6,443,606 1 Non‐Spendable 2,634,321 2,810,610 1,117,537 1,477,571 1 Spendable ‐ Restricted 539,484 373,793 326,523 313,831 1 Spendable ‐ Assigned 3,284,849 3,929,332 3,970,766 3,047,170 1 Unassigned 4,555,552 4,254,714 3,560,619 2,577,021 Total General Fund $ 11,014,206 $ 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 All Other Governmental Funds Reserved $ $ $ $ $ 9,575,882 $ 9,435,074 $ 9,667,006 $ 12,530,227 $ 16,732,816 $ 1,290,744 Unreserved/Designated 611,570 592,019 763,460 282,684 2,754,423 2,894,858 Unreserved/Undesignated 1,681,422 2,971,672 3,594,814 1,045,132 (7,815,607) (22,545,895) 1 Non‐Spendable 485,525 585,407 3,301,339 4,279,330 1 Spendable ‐ Restricted 593,859 677,665 851,376 1,207,630 1 Spendable ‐ Assigned 11,120,526 7,850,267 7,186,409 6,678,269 Total all Other Governmental Funds $ 12,199,910 $ 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) Total Primary Government $ 23,214,116 $ 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) 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 136 ---PAGE BREAK--- REVENUE CAPACITY (Unaudited) 137 ---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 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 2014 3,210,904,256 4,946,432,473 567,481,109 616,275,891 3,778,385,365 5,562,708,364 3.415 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 2014 is the 2013 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 2014 is the 2013 calendar year tax rate) 0 500,000,000 1,000,000,000 1,500,000,000 2,000,000,000 2,500,000,000 3,000,000,000 3,500,000,000 4,000,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Value in Dollars Year Value of Taxable Property Real Property Personal Property Total 138 ---PAGE BREAK--- OGDEN CITY CORPORATION PRINCIPAL TAXPAYERS FOR THE CALENDAR YEAR 2013 June 30, 2014 TEN LARGEST PROPERTY TAXPAYERS (UNAUDITED) 2013 Percentage of 2003 Taxable Total Taxable Taxable xpayer Type of Business Value Value Value Ranking Boyer Company Construction/space leasing $ 228,157,286 6.04% $ 107,654,173 1 Fresenius USA (Delmed Medical) Health care products 195,993,972 5.19% 75,995,308 2 IHC Health Services Health services 84,122,188 2.23% 28,982,442 7 Autoliv ASP, Inc ‐ Auto Pro Automotive safety products 58,619,708 1.55% 74,756,164 3 (Morton International) GGP/Homart (Newgate Mall) Space leasing for retail sales 52,316,732 1.38% 28,770,312 8 Williams International Corp Manufacturer of jet 47,187,622 1.25% 38,082,959 6 airplane engines McDonnell Douglas Air force subcontractor 43,814,025 1.16% 51,928,721 4 (The Boeing Company) Pacificorp (Utah Power) Electric utility 42,600,087 1.13% 27,169,990 9 Nutraceutical Corporation Nutritional supplements 39,478,980 1.04% Mark Novis/ Hershey Chocolate manufacturer 34,870,425 0.92% Qwest Corp Telephone/communications 49,934,003 5 Flying J Gasoline refining and sales 18,632,666 10 Total taxable value of 10 largest taxpayers……………………… 827,161,025 21.9% 501,906,738 Total taxable value of all other taxpayers……………………….. 2,951,224,340 78.1% 2,280,672,930 Total taxable value of all $ 3,778,385,365 100.0% 2,782,579,668 Sources: Weber County Treasurer's and Auditor's Offices 139 ---PAGE BREAK--- Percent of Percent Collected in Delinquent Total Tax Fiscal Total Tax Current Tax of Approp. Subsequent Percent Tax Total Tax Collections Year Appropriation Collections Collected Years 1 Amount of Levy Collections 1 Collections 2 to Tax Approp. 2005 $ 18,089,832 $ 16,377,964 90.5% $ $ 16,377,964 $ 90.5% $ 594,603 $ 16,972,567 93.8% 2006 19,306,325 16,820,852 87.1% 16,820,852 87.1% 556,156 17,377,008 90.0% 2007 18,257,350 16,892,631 92.5% 16,892,631 92.5% 550,557 17,443,188 95.5% 2008 20,222,150 17,795,330 88.0% 17,795,330 88.0% 509,009 18,304,339 90.5% 2009 22,931,825 19,863,615 86.6% 6,919 19,870,534 86.7% 373,517 20,244,051 88.3% 2010 24,412,425 21,285,399 87.2% 33,435 21,318,834 87.3% 420,595 21,739,428 89.1% 2011 24,757,350 21,892,279 88.4% 69,884 21,962,163 88.7% 562,503 22,524,666 91.0% 2012 26,789,125 22,173,829 82.8% 121,864 22,295,693 83.2% 533,547 22,829,240 85.2% 2013 27,390,775 23,447,857 85.6% 279,810 23,727,666 86.6% 697,704 24,425,371 89.2% 2014 28,555,875 24,013,444 84.1% 24,013,444 84.1% 24,013,444 84.1% Source: Weber County Auditor's Office Ogden City Comptroller Division 1 Subsequent collections by levy year were not reported prior to Fiscal Year 2014. Property taxes are collected by Weber County and then disbursed to the appropriate entities. Remittance of delinquent tax collections prior to Fiscal Year 2014 were not identified by tax year. 2 Delinquent taxes collected during the year were added to current collections. Total Tax Collections reflect the total of the current levy, delinquent taxes received during the year and beginning with Fiscal Year 2014 tax revenue collected in subsequent years, by tax year levied. Total Collected to Date OGDEN CITY CORPORATION PROPERTY TAX APPROPRIATIONS AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) Collected in Fiscal Year of Leavy - 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 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Volume in Dollars Year Property Tax Collections & Appropriations Current Tax Collections Delinquent Tax Collections Total Collected to Date 140 ---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 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 2013 3.415 2.469 0.686 0.129 0.540 0.146 0.210 0.298 0.866 8.359 0.385 17.503 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) 141 ---PAGE BREAK--- OGDEN CITY CORPORATION TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (UNAUDITED) City Fiscal Property Prior Year Sales Franchise Utility Fee in Lieu Year Taxes Taxes Taxes Taxes Taxes of Tax Total 2005 $ 16,377,964 $ 594,603 $ 12,383,198 $ 6,502,958 $ 3,078,524 $ 999,449 $ 39,936,696 2006 16,820,852 556,156 13,452,590 7,054,842 3,289,875 1,062,475 42,236,790 2007 16,892,631 550,557 15,100,532 6,687,005 3,212,744 920,361 43,363,830 2008 17,795,330 509,009 14,812,621 7,583,031 3,599,048 889,514 45,188,553 2009 19,863,615 373,517 13,348,067 7,611,391 4,180,423 865,686 46,242,700 2010 21,285,399 420,595 12,293,276 7,549,969 4,265,064 805,614 46,619,917 2011 22,051,816 562,503 12,288,206 7,676,010 4,639,685 744,510 47,962,730 2012 22,173,829 533,547 13,392,913 7,578,905 4,845,552 706,655 49,231,401 2013 23,447,857 697,704 14,040,376 8,057,296 4,912,838 699,113 51,855,183 2014 24,013,444 463,847 14,581,388 8,272,313 4,391,507 674,015 52,396,513 Source: Ogden City Comptroller Division - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dollars Year Tax Revenues by Source Fee in Lieu of Tax City Utility Taxes Franchise Taxes Sales Taxes Prior Year Taxes Property Taxes 142 ---PAGE BREAK--- DEBT CAPACITY (Unaudited) 143 ---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 2005 82,007 5,228,500,000 2 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 ‐ 5,670,892 2011 83,171 1,584,421,100 11,270,000 5,047,000 50,695,000 ‐ 4,878,070 2012 83,949 1,644,690,100 9,475,000 4,752,000 45,220,000 ‐ 5,280,174 2013 83,793 1,573,797,800 7,529,000 4,442,000 40,110,000 ‐ 4,235,530 2014 84,249 1,598,052,300 5,529,000 4,121,000 34,835,000 ‐ 4,355,172 Total Percentage Fiscal Revenue Notes Primary of Personal Per Year Bonds Payable Government Income Capita 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 57,027,790 207,580 134,243,262 8.60% 1,611.64 2011 55,406,000 103,790 127,399,860 8.04% 1,531.78 2012 53,847,000 ‐ 118,574,174 7.21% 1,412.45 2013 61,644,000 ‐ 117,960,530 7.50% 1,407.76 2014 76,601,000 ‐ 125,441,172 7.85% 1,488.93 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 2014 population is the July 1, 2013 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 number is for Weber County. This data was not available for the Ogden City Metro Area until 2005 (FY 2006). Calendar year number fiscal year 2006 is calendar year 2005 number). 3 Personal income numbers are for Ogden City Metro Area. In prior years Weber County totals were used. Calendar year numbers fiscal year 2014 is calendar year 2013 numbers); calendar 2014 numbers were not available. Business‐Type Activities Ogden City Ratios of Outstanding Debt by Type Last Ten Fiscal Years (UNAUDITED) 144 ---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 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 2014 84,249 5,562,708,364 5,529,000 0.10 65.63 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 Calendar year (i.e. FY 2014 population is the July 1, 2013 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 2014 is calendar year 2013 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) 145 ---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 $ 48,840,172 100% $ 48,840,172 Total Direct Governmental Debt 48,840,172 Ogden City School District 95,774,027 100% 95,774,027 Weber County 39,480,000 33% 12,896,193 Weber Basin Water Conservancy Dist. 22,440,060 9% 2,096,058 Total Overlapping Governmental Debt 110,766,279 Total Direct and Overlapping Governmental Debt $ 159,606,451 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, 2014 146 ---PAGE BREAK--- Net assessed value for 2013: Real Property Taxable Value $ 4,946,432,473 Personal Property Taxable value $ 616,275,891 Total taxable $ General Debt Margin 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Debt limit: 4% of total taxable value 1 $ 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 $ 222,508,335 Total net debt applicable to limit 40,508,626 77,534,004 # 86,284,340 84,459,741 85,040,021 77,385,207 72,192,283 64,963,314 56,093,060 48,633,842 Legal debt margin $ 72,220,135 $ 37,415,649 $ 32,083,199 $ 47,422,493 $ 64,815,079 $ 74,408,780 $ 78,184,822 $ 84,675,776 $ 89,685,096 $ 173,874,493 Total net debt applicable to the limit as a percentage of debt limit 35.93% 67.45% 72.90% 64.04% 56.75% 50.98% 48.01% 43.41% 38.48% 21.86% Utilities Debt Margin 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Debt limit: 4% of total taxable value for utilities $ 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 $ 222,508,335 Total net debt applicable to limit 16,013,163 15,221,238 14,367,715 59,041,086 59,120,962 57,571,504 55,835,466 54,162,218 61,960,760 77,410,888 Legal debt margin $ 96,715,598 $ 99,728,415 $ 103,999,824 $ 72,841,148 $ 90,734,138 $ 94,222,483 $ 94,541,639 $ 95,476,872 $ 83,817,396 $ 145,097,447 Total net debt applicable to the limit as a percentage of debt limit 14.21% 13.24% 12.14% 44.77% 39.45% 37.93% 37.13% 36.20% 42.50% 34.79% 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. 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, 2014 (UNAUDITED) 5,562,708,364 147 ---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 2005 6,930,588 7,475,593 (545,005) 153,410 227,941 381,351 (1.43) 2006 7,775,694 7,814,521 (38,827) 160,080 217,540 377,620 (0.10) 2007 9,028,800 9,221,001 (192,201) 166,750 242,814 409,564 (0.47) 2008 11,400,743 9,508,672 1,892,071 173,420 321,101 494,521 3.83 2009 13,727,378 11,288,163 2,439,215 677,005 2,107,152 2,784,157 0.88 2010 13,529,048 10,621,197 2,907,851 901,650 1,993,350 2,895,000 1.00 2011 15,321,858 12,653,418 2,668,440 957,900 1,944,674 2,902,574 0.92 2012 16,472,188 13,056,425 3,415,763 979,650 2,077,463 3,057,113 1.12 2013 18,085,617 12,319,541 5,766,076 1,015,800 2,068,658 3,084,458 1.87 2014 18,563,118 13,303,270 5,259,848 1,893,950 2,555,476 4,449,426 1.18 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 148 ---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 2005 5,541,685 4,353,094 1,188,591 338,607 257,106 595,713 2.00 2006 5,801,639 4,181,699 1,619,940 353,057 274,882 627,939 2.58 2007 6,918,945 5,582,307 1,336,638 368,064 274,806 642,870 2.08 2008 8,192,388 9,508,672 (1,316,284) 383,394 166,306 549,700 (2.39) 2009 10,434,419 7,606,271 2,828,148 495,361 574,229 1,069,590 2.64 2010 11,483,634 8,410,533 3,073,101 193,350 641,137 834,487 3.68 2011 12,945,348 9,526,023 3,419,325 212,100 452,555 664,655 5.14 2012 14,696,699 10,907,661 3,789,038 215,350 313,931 529,281 7.16 2013 14,440,568 11,687,463 2,753,105 407,200 494,449 901,649 3.05 2014 14,619,352 11,928,087 2,691,265 604,050 565,650 1,169,700 2.30 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 149 ---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 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 2014 5,225,584 4,218,033 1,007,551 260,000 55,730 315,730 3.19 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 150 ---PAGE BREAK--- OGDEN CITY CORPORATION INDUSTRIAL REVENUE BONDS OUTSTANDING As of June 30, 2014 (UNAUDITED) Date Outstanding Issued Retired Outstanding Company Issued July 1, 2014 in 2014 in 2014 June 30, 2014 Albion Manufacturing 11‐25‐08 1,361,000 $ ‐ $ 186,000 $ 1,175,000 $ Sources: Financial institutions, bond contracts, accounting firms 151 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 152 ---PAGE BREAK--- DEMOGRAPHIC & ECONOMIC INFORMATION (Unaudited) 153 ---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 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 5.2% 2014 84,249 1,598,052,300 18,970 12,447 Not Available Sources: U.S. Census Bureau Ogden City School District 1 Population estimates are from the U.S. Census Bureau (i.e. FY 2014 population is the July 1, 2013 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 2011‐2014 populations are from the 2010 census. 2 The data is based on calendar year (i.e. fiscal year 2014 is calendar year 2013 data). 3 Calendar year data. 4 Rates are raw annual calendar year averages. The unemployment rate for calendar year 2014 is not yet available. 5 GASB 34 and 44 conversion; comparison data in prior years provided as available. 154 ---PAGE BREAK--- Employment Percent of Total Company Type of Business Range 1 City Employement 2 Department of Treasury Federal Government 5,000‐6,999 14.7% Weber County School District Public Education 3,000‐3,999 8.6% McKay‐Dee Hospital Center Health Care 3,000‐3,999 8.6% Weber State University Higher Education 2,000‐2,999 6.1% Autoliv Asp, Inc. Manufacturing 2,000‐2,999 6.1% State of Utah State Government 1,000‐1,999 3.7% Fresenius USA Manufacturing Manufacturing 1,000‐1,999 3.7% Ogden City School District Public Education 1,000‐1,999 3.7% Wal‐Mart Retail Sales 1,000‐1,999 3.7% America First Credit Union Credit Unions 1,000‐1,999 3.7% SOS Satffing Services Temporary Help Services 1,000‐1,999 3.7% Weber County Local Government 1,000‐1,999 3.7% 16,500‐26,988 66.8% Sources: Utah Department of Workforce Services 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. OGDEN CITY CORPORATION LARGEST EMPLOYERS FOR 2014 (UNAUDITED) 155 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 156 ---PAGE BREAK--- OPERATING INFORMATION (Unaudited) 157 ---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 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 2014 105 16 87 28 313 32 581 Source: Ogden City Adopted Budget 0 100 200 300 400 500 [PHONE REDACTED] 2006 2007 2008 2009 2010 2011 2012 2013 2014 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 158 ---PAGE BREAK--- Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3 Police (Calendar Year) Part I: Crimes of Violence 349 383 415 507 388 393 330 392 353 313 1 Homicides 4 5 2 3 4 4 1 2 2 3 1 Forcible Rape 34 40 37 37 43 33 25 20 25 31 1 Detail Robbery 107 121 123 137 128 107 111 96 96 107 1 not shown Aggravated Assault 204 217 253 330 213 249 193 274 230 172 1 on report Part I: Crimes of Non‐Violence 5,149 4,931 5,029 4,954 4,229 4,052 4,674 4,429 4,001 4,135 1 Burglary 802 797 820 927 703 774 867 858 734 564 1 Theft 3,921 3,723 3,773 3,495 3,176 2,962 3,494 3,279 3,051 3,295 1 Motor Vehicle Theft 426 411 436 532 350 316 313 292 216 276 1 79,544 81,166 80,861 78,160 83,353 83,016 82,825 84,423 85,083 84,249 Total all UCR Offenses 5,498 5,314 5,444 5,461 4,617 4,445 5,004 4,821 4,354 4,448 1 Total Averages of UCR Crimes per 1,000 Population Violent Crimes per 1,000 4.4 4.7 5.1 6.5 4.7 4.7 4.0 4.6 4.1 3.7 1 Non‐Violent Crimes per 1,000 64.7 60.8 62.2 63.4 50.7 48.8 56.4 52.5 47.0 49.1 1 All UCR Crime per 1,000 69.1 65.5 67.3 69.9 55.4 53.5 60.4 57.1 51.2 52.8 1 Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4 Fire (Fiscal Year) Incident Reponses 12,152 12,979 13,428 14,387 14,450 14,147 14,558 15,700 16,089 18,068 Inspections/Preplanning Property Visits (excludes Public Nuisance inspections) 1,072 1,460 2,972 2,871 2,345 1,762 1,851 2,044 1,355 726 Fire Investigations 2 2 49 46 53 51 46 46 36 31 Fire Investigation Hours 226 386 670 245 416 389 224 292 234 155 Public Education Hours 635 990 382 255 190 257 132 187 167 114 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) 159 ---PAGE BREAK--- Ogden City Capital Asset Statistics by Function/Program Last Ten Fiscal Years (UNAUDITED) Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 1 1 1 133 139 151 148 100 109 126 units 1 1 1 8 8 8 8 8 8 8 Animal control units 1 1 1 3 3 3 3 3 3 3 Fire Stations 5 5 5 5 5 5 5 5 5 5 Ladder trucks 1 1 1 2 2 2 2 2 2 2 Pumper trucks 1 1 1 5 5 7 9 7 7 5 Ambulances 1 1 1 7 7 7 9 9 8 8 Street Streets (miles) 273 273 305 305 311 311 311 311 312 312 Curb and gutter (miles) 1 1 1 481 485 512 512 519 520 521 Sidewalk (miles) 1 1 1 316 333 359 359 366 366 368 Streetlights 2,965 2,965 3,619 3,619 2,830 3,300 3,550 966 966 966 Traffic signals 1 1 1 75 86 88 90 90 91 91 Parks and recreation Community centers 1 1 1 2 2 1 1 1 1 1 Parks 39 40 39 41 41 43 43 44 44 45 Park acreage 238.52 238.67 238.52 242.87 242.87 250.22 250.22 253.22 253.22 254.15 Covered picnic areas 1 1 1 29 29 30 30 30 30 30 Baseball/Softball diamonds 1 1 1 23 23 23 23 23 23 8 Soccer fields 1 1 1 10 10 10 12 12 12 11 Tennis courts 1 1 1 14 14 14 14 14 14 14 Pickleball Courts 1 1 1 ‐ ‐ ‐ ‐ 8 8 8 Skate Park 1 1 1 1 1 1 1 1 1 1 Swimming pools 1 1 1 2 2 1 1 1 1 2 Gymnasiums 1 1 1 1 1 ‐ ‐ ‐ ‐ ‐ Sewer Sanitary sewers (miles) 335 335 335 335 247 247 232 232 283 283 Storm sewers (miles) 116 116 116 116 106 136 147 145 144 144 Water Water lines (miles) 350 350 350 350 280 324 327 359 347 352 Fire hydrants 1 1 1 2,372 2,372 2,680 2,684 2,766 2,920 3,002 Source: Various City Departmental Data 1 Information in prior years provided as available 160 ---PAGE BREAK--- OGDEN CITY CORPORATION MISCELLANEOUS STATISTICS June 30, 2014 (UNAUDITED) 2004 Comparative Data Date of Incorporation: February 6, 1851 Form of government: Council ‐ Mayor Area (in square miles): 27 27 Miles of streets: 312 292 Number of street lights: 966 2,965 Fire protection: Number of stations 5 5 Number of firemen and officers 110 104 Police protection: Number of stations 1 1 Number of policemen and officers 134 122 (Does not include reserve police officers) Ogden School District: Elementary schools 14 15 Total number of schools 20 1 Number of elementary teachers 342 330 Total number of teachers 696 1 Number of elementary students 7,280 6,234 Total number of students 12,447 12,877 Municipal water department: Number of consumers 23,868 26,407 Average Daily Consumption (gallons) 170,385 12,777,716 Miles of water mains 352 350 Sewers: Sanitary sewers (in miles) 283 335 Storm sewers (in miles) 144 116 Building permits issued: 2,306 2,097 Recreation and culture: Number of parks 45 39 Total park acreage 254.15 238.52 Number of libraries 1 1 Number of event permits 235 93 Employees: Classified service 532 485 Exempt 261 294 1 Not available for 2004 Sources: Various Ogden City departments Ogden School District 161 ---PAGE BREAK--- Coverage Carrier Limits Deductible Expiration Description LIABILITY URMMA – Per $6,000,000 $15,000 July 1, 2014 Covers bodily injury, General Liability Joint Protection property damage, Agreement personal injury, errors and Law Enforcement Included $6,000,000 $15,000 July 1, 2014 omissions, and personal Liability injury protection. This is Public Official Liability Included $6,000,000 $15,000 July 1, 2014 a Claims Made policy. Planning & Zoning Incl. Excludes Airport Auto Liability Included $15,000 HANDLED DIRECT Bodily Injury & BY URMMA Property Damage Annual Premium Uninsured Motorist & Invoiced & Paid to Underinsured Motorist URMMA Directly Airport Liability Commerce & Industry $25,000,000 0 July 1, 2014 Covers General Liability occurrences at Airport Premium $ 10,295.00 Contractual $25,000,000 0 Ground Hangar Keepers $25,000,000 $1,000 Off‐Duty Auto Liability 33 Limited 135 Unlimited Positions Covered Great American $1,000,000 0 July 1, 2014 Automobile Liability coverage for Off‐Duty Vehicle Usage **Property Package Blanket Real & Personal Property (Bldg & Contents) Including “Boiler” Equipment Breakdown Lexington Ins. $170,115,208 $10,000 Other Deductibles On file with company. July 1, 2014 Covers buildings and contents listed on statement of values as a result of covered causes of loss. **Earthquake Included Included 1% or $100,000 July 1,2014 Covers City properties from an Earthquake or Flood Included Included $100,000 Flood. **Mobile Eq. & EDP Scheduled & Unscheduled Included Included $10,000 July 1, 2014 Covers City Owned Mobile Eq. & EDP as a result of covered causes of loss. **Valuable Papers Included in above Property Package Included $10,000 July 1, 2014 Covers cost to research and restore lost information from a covered cause of loss.** **Business Interruption (Municipal Building Authority) Included in above Property Package Included 24Hrs July 1, 2014 Covers loss of income for Baseball Stadium as required by City contract.** **Auto Physical Damage Vehicles Over $50,000. Comp & Collision Perils Parked Autos Great American $1,737,400 $5,853,800 $25,000 $10,000 July 1, 2014 Covers property damage to scheduled owned city vehicles including Strike Force Vehicles. **TOTAL COMBINED GROUP PURCHASED PREMIUM $229,160.00 Schedule of Insurance as of June 30, 2014 162 ---PAGE BREAK--- Coverage Carrier Limits Deductible Expiration Description Commercial Crime Employee Theft, Faithful Performance of Duty Including Forgery, Alterations & Computer Fraud Coverage Travelers Insurance $1,000,000 Money & Securities In & Outside $50,000 $25,000 July 1, 2014 Covers loss caused through failure of any employee to perform duties faithfully or account properly for all monies and property received. Public Official Bond Michael D. Goodwin, Treasurer Travelers Insurance $2,700,000 N/A July 1,2014 Covers loss caused through failure of City Treasurer to perform duties faithfully or to account properly for all monies. Premium $9055. 00 Excess Workers Compensation Safety National Insurance Co. Statutory Work Comp; $1,000,000 Employers Liability $750,000 Self Insured Retention July 1, 2014 Coverage for employee accident or illness per workers compensation law above self insured retention limit. Premium $70,353.00 General Liability (2 )Parking Structures Great American Insurance $1,000,000 Each Occurrence No Deductible July 1, 2014 Covers Liability For North & South Parking Structures. Premium $8,404.00 Liquor Liability Elmonte & Mt. Ogden Golf Courses Mt. Vernon Fire Ins. Group $1,000,000 No Deductible July 1, 2014 Covers City Liability for serving alcohol. Premium $2,157.00 Liquor Liability 4th Street Baseball Park Scottsdale Insurance $1,000,000 No Deductible July 1, 2014 Covers City Liability for serving alcohol. Premium $1,253.00 Commercial General Liability ‐ “Bike Park” Great American $1,000,000 No Deductible July 16, 2014 Covers City Liability for City Park Premium $5,400.00 Commercial Auto Liability – 1 Vehicle Driven By – Weber State College Employees Scottsdale Indemnity $1,000,000 No Deductible June 24, 2014 Covers City Liability while transporting people to adventure sites in Ogden Premium $1,211.00 Commercial Auto Excess Liability 1 Vehicle Driven By – Weber State College Employees Scottsdale Indemnity $1,000,000 No Deductible June 24, 2014 Covers Excess Liability over primary policy transporting to Adventure sites in Ogden. Premium $750.00 Commercial Auto Liability 47 Leased buses from Weber School District (Ogden Marathon) Scottsdale Indemnity $1,000,000 No Deductible May 20, 2014 1 Day Coverage Covers City Liability while transporting Marathon Runners. 1 Day Special Event Premium $7,292.00 Commercial Auto Excess Liability 47 Leased buses from Weber School District (Ogden Marathon) Scottsdale Indeminity $1,000,000 Excess Limit No Deductible May 20, 2014 1 Day Coverage Excess over $1,500,000 primary policy. Transporting Marathon Runners – 1 Day Evt. Premium $1122.00 Professional Liability SC Reid ‐ Contracted City Consultant Market Insurance $1,000,000 $2,500 Deductible Oct 31, 2014 Covers Contracted Employee for Professional Services Per Signed Contract Premium $1,438.00 Commercial Auto Liability Great American Insurance $1,000,000 $2,500 Deductible Oct 31, 2014 Covers 2 Trolley’s Public Transportation Premium $1,438.00 Updated 9/2/2014 163 ---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 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 2014 84,249 581 6.90 1 Population estimates are from the U.S. Census Bureau FY 2014 population is the July 1, 2013 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. 164 ---PAGE BREAK--- ADDITIONAL INFORMATION (Unaudited) 165 ---PAGE BREAK--- OGDEN CITY CORPORATION SCHEDULE OF NET POSITION UNAUDITED SANITARY AND STORM SEWER UTILITY Year Ended June 30, 2014 Sanitary Storm Total ASSETS Current assets Cash 9,806,482 8,620,234 18,426,716 Accounts receivable (net) 1,019,127 450,714 1,469,841 Total current assets 10,825,609 9,070,948 19,896,557 Noncurrent assets Deferred charge 50,107 16,035 66,142 Subtotal 50,107 16,035 66,142 Restricted assets: Investments 71,149 4,539,693 4,610,842 Subtotal 71,149 4,539,693 4,610,842 Capital assets: Land ‐ 1,294,330 1,294,330 Improvements 31,917,560 11,398,807 43,316,367 Construction‐in‐process ‐ 1,135,352 1,135,352 Equipment 79,001 79,001 Total capital assets 31,996,561 13,828,489 45,825,050 Less accumulated depreciation / amortization (6,783,422) (3,431,800) (10,215,222) Net capital assets 25,213,140 10,396,688 35,609,828 Total noncurrent assets 25,334,395 14,952,417 40,286,812 Total assets 36,160,004 24,023,365 60,183,369 LIABILITIES: Current liabilities Accounts payable 303,040 194,271 497,311 Accrued wages payable 5,403 6,763 12,166 Accrued compensated absences 11,460 18,259 29,719 Other accrued payables 366,281 434,834 801,115 Deposits ‐ 24,437 24,437 Accrued bond interest 7,854 6,737 14,591 Revenue bonds/note payable 243,601 336,708 580,309 Total current liabilities 937,639 1,022,009 1,959,648 Noncurrent liabilities Revenue bonds/note payable 6,870,156 5,749,747 12,619,903 Compensated absences 26,741 42,604 69,345 Total noncurrent liabilities 6,896,896 5,792,352 12,689,248 Total liabilities 7,834,535 6,814,361 14,648,896 NET ASSETS: Reserved by donors Net investment in capital assets 18,170,532 8,849,926 27,020,458 Unrestricted 10,154,937 8,359,078 18,514,015 Total net position 28,325,469 17,209,004 45,534,473 166 ---PAGE BREAK--- OGDEN CITY CORPORATION SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION UNAUDITED SANITARY AND STORM SEWER UTILITY Year Ended June 30, 2014 Sanitary Storm Total OPERATING REVENUES: Charges for services $ 10,175,629 4,426,191 $ 14,601,820 Miscellaneous income 17,532 ‐ 17,532 Total revenue 10,193,161 4,426,191 14,619,352 OPERATING EXPENSES: Cost of materials and parts ‐ Personal services: Salaries and wages 327,519 446,175 773,694 Benefits 173,630 214,859 388,489 Supplies: Office supplies 434 397 831 Operating supplies 19,577 14,159 33,736 Repair and maintenance supplies 9,712 162 9,874 Charges for services: Sewer district charges 4,918,818 ‐ 4,918,818 Public utility services 5,867 4,951 10,818 Travel and education 2,558 2,448 5,006 Contracted agreements 783,263 493,650 1,276,913 Other operating expenses: Rental charges 44,877 16,582 61,459 Fiscal charges 1,755,813 760,314 2,516,127 Depreciation / amortization 553,507 335,649 889,156 Data processing and computer equipment 50,300 10,650 60,950 Maintenance and repair 584,603 (1,083) 583,520 Vehicle operating expenses 149,120 249,448 398,568 Miscellaneous ‐ 128 128 Total operating expenses 9,379,599 2,548,488 11,928,087 Operating income (loss) 813,562 1,877,703 2,691,265 NON‐OPERATING REVENUES (EXPENSES): Revenues: Interest income 66,173 58,168 124,341 Expenses: Interest expense (460,391) (172,288) (632,679) Total non‐operating revenues (expenses) (394,218) (114,120) (508,338) Capital contributions 899,274 ‐ 899,274 Income before transfers 1,318,618 1,763,583 3,082,201 Transfers out (13,085) (68,624) (81,709) Change in net assets 1,305,533 1,694,959 3,000,492 Net position, beginning 27,019,936 15,514,045 42,533,981 Net position, ending $ 28,325,469 $ 17,209,004 $ 45,534,473 Notes: Interest income is allocated between Sanitary Sewer and Storm Sewer operations based on cash on hand at 6/30/2014. Sanitary Storm Total Current assets Cash 9,806,482 8,620,234 18,426,716 53.22% 46.78% Beginning net position is determined by the calculation amount of ending net position, less current year change in net position. 167