Document Ogden_doc_c76c2ad40e

Ogden, Utah Comprehensive Annual Financial Report Year Ended June 30, 2006 ---PAGE BREAK--- ---PAGE BREAK--- 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF OGDEN CITY CORPORATION For Year Ended June 30, 2006 Ogden, Utah Mayor Matthew R. Godfrey City Council Jesse M. Garcia William Glasmann III Dorrene Jeske Rick Safsten Doug Stephens Brandon S. Stephenson Amy L. Wicks Prepared by: Department of Management Services Mark L. Johnson, Director A. John Arrington, CPA, Comptroller Michael D. Goodwin, Treasurer Tracy R. Probert, CPA, Assistant Finance Manager Carolyn M. McGrath, Accountant Janine Sherwood, Grants Accountant Heidi Turbyfill, Accountant Cindi Hellewell, Accounting Technician ---PAGE BREAK--- 2 OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2006 Table of Contents Introductory Section Title Table of Letter of GFOA Certificate of Ogden City Organization Principal City Financial Section Independent Auditors’ Management's Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Statement of Net Statement of Governmental Fund Financial Statements Balance Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets………….. Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities……………………………………. Proprietary Fund Financial Statements Statement of Net Statement of Revenues, Expenditures and Changes in Net Statement of Cash Notes to the Financial Required Supplementary Information Budgetary Comparison Schedule – General Budgetary Comparison Schedule – Ogden Redevelopment Agency (Special Revenue Fund)…………… Information About Infrastructure Assets Reported using the Modified Approach…………………….…. Supplementary Information - Combining Statements Governmental Funds Nonmajor Governmental Funds Combining Balance Combining Statement of Revenues, Expenditures and Changes in Fund Balance………………… Budgetary Comparison Schedule - Debt Budgetary Comparison Schedule - Capital Improvement Budgetary Comparison Schedule - Municipal Building Budgetary Comparison Schedule - Downtown Special Assessment……………………………………… Budgetary Comparison Schedule - Union Budgetary Comparison Schedule - Cemetery Perpetual Care Expendable Budgetary Comparison Schedule – Permanent Trust Gomer A. 1 2 4 9 10 11 15 17 27 28 32 35 36 38 40 44 46 50 78 80 81 86 87 88 89 90 91 92 93 94 ---PAGE BREAK--- 3 OGDEN CITY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2006 Table of Contents, Continued Proprietary Funds Nonmajor Enterprise Funds Combining Statement of Net Combining Statement of Revenues, Expenditures and Changes in Net Assets……………… Combining Statement of Cash Internal Service Funds Combining Statement of Net Combining Statement of Revenues, Expenditures and Changes in Net Assets………………. Combining Statement of Cash State of Utah – Impact Statistical Section (Unaudited) Financial Net Assets by Changes in Net Changes in Fund Balances, Governmental Fund Balances, Governmental Assessed and Estimated Actual Value of Taxable Principal Taxpayers for the Calendar Year Property Tax Appropriations and Property Tax Rates, Direct and Overlapping Tax Revenues by Ratios of Outstanding Debt by Ratios of General Bonded Debt Outstanding to Assessed Value and Per Computation of Direct and Overlapping Computation of Legal Debt Revenue Bond Coverage - Water Revenue Bond Coverage - Sewer Revenue Bond Coverage - Refuse Industrial Revenue Bonds Demographic and Economic Demographic and Economic Largest Operating Full-Time Authorized Employees Summary by Operating Indicators by Capital Assets Statistics by Miscellaneous Schedule of Insurance Staff per 1,000 Cost per Resident to Run City Page 96 98 100 103 104 105 106 110 111 112 114 116 118 119 120 121 122 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 142 143 ---PAGE BREAK--- 4 November 27, 2006 Honorable Mayor and Members of the City Council City of Ogden Ogden, Utah 84401 Dear Mayor and Members of the City Council: We are furnishing you with the Fiscal Year 2005-2006 Comprehensive Annual Financial Report of the City of Ogden, in accordance with Section 10-6-150 of the Utah Code Unannotated 1993. This report has been formatted to comply with the financial reporting model developed by the Governmental Accounting Standards Board (GASB) Statement 34. The statistical section of this report has also been formatted to comply with the new Governmental Accounting Standards Board (GASB) Statement 44. It is intended that this format will provide further information not previously available in governmental financial statements. 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 17. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, the enclosed data are accurate in all material respects and are reported in a manner designed to fairly present the financial position and results of operations of the City's various funds and account groups. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. 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 2005 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. This section also includes the management’s discussion and analysis (MD&A) as required by GASB Statement 34. The Statistical Section includes selected financial and demographic information generally presented on a multiyear basis. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments 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 Federal Awards, findings and recommendations, and auditors’ reports on the internal control structure and compliance with applicable laws and regulations are included in the Single Audit Section of this report. THE REPORTING ENTITY AND ITS SERVICES This report includes all 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 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 (data processing and telephones) and risk management are handled through internal service funds. The Tax Increment Districts of the Ogden Redevelopment Agency and Union Station are reported as a Special Revenue Fund in this report. The Municipal Building Authority and the Downtown Ogden Special Improvement District are also reported as Special Revenue Funds. The Gomer A. Nicholas Park Endowment is reported as a permanent fund. The interest from this fund is used to improve our parks system. Major grants received by the City, several developments and operations throughout the City that are assisted by donations from business and individuals are handled in expendable trust funds. ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal 5 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 that 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. The results of the City's single audit for the fiscal year ending June 30, 2006 can be found in a supplemental report, prepared by our auditors, which accompanies this report. 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 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 OUTLOOK During fiscal year 2006, Ogden City experienced traditional increases in revenue while expense growth was well above average. High construction, fuel and heating costs are stimulating the expense concerns. Ogden is progressing in the rebirth of the greater downtown which will continue to stimulate revenue enhancement. The revitalization of the mall is progressing with the completion and grand opening of the Treehouse Children’s Museum. In the last six years the city has already redeveloped 45 acres in the downtown and still has at least 130 acres coming in varied phases of development. Currently underway is the construction of the High Adventure Recreation Center, the Larry Miller Theater Complex, two new office buildings and new residential units and condos. During the past year Ogden has become home to three new skiing-related companies. Already located in Ogden are Descente, SnowSports Interactive, GOODE Ski Technologies, Scott USA and Kahuna Creations. Newly announced additions include Amer Sports, Rossignol and Nidecker. When Amer Sports Corp. decided to consolidate its winter and outdoor sports operations into a single division, the sports-equipment company set up an internal task force to evaluate numerous potential cities for its U.S. headquarters. Ogden won out. Easily, said Mike Dowse, president and general manager of the division, citing the city's proximity to an international airport, the fabulous snow in the Wasatch Mountains and Mayor Matthew Godfrey's steadily expanding goal of making Ogden the "hub" of the ski industry. "We were driven by the cultural fit. . . . I loved the mayor's attitude," Dowse said in the formal announcement that Amer Sports, the world's largest sports equipment company, will make Ogden the home of the new combined U.S. headquarters for its Salomon, Atomic and Suunto brands. "We believe Ogden will be the next Boulder of the he added, referring to the Colorado city renowned since the 1960s for its appeal to outdoor recreationists. "We wanted to be at the front edge of that vision." The Kemp development at the Airport continues to grow with construction beginning on a new facility for Adam Aircraft Industries to begin full assembly of its A500 twin-engine piston airplane and A700 AdamJet. The 96,000 square foot ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal 6 facility will have about 400 employees producing 10 planes per month. Senator Orrin Hatch stated at the ground breaking ceremony “Ogden and Weber County are blossoming. I see Ogden becoming a very intense place, with people vying to come here and set up their business.” The Ogden River Project is progressing in phase one of the redevelopment, the most ambitious of the city’s redevelopment efforts. The $150 million, three-phase plan encompasses about 60 acres around the river and north of 20th Street and has been in the works since 2001. The first phase, a 12-acre parcel between Washington Boulevard and Grant Avenue, is awaiting City Council approval to rezone the area for commercial development. Demolition of homes in the area should happen by the spring of 2007. GOVERNMENT REVENUES Revenues for general governmental functions (General Fund) for the fiscal year ended June 30, 2006 totaled $52,724,524. The amounts of revenue from various sources are shown in the following tabulation: Percent Revenue Source Amount of Total Taxes $ 34,171,668 64.8% Licenses and permits 2,100,508 4.0 Intergovernmental revenue 7,707,958 14.6 Charges for services 6,028,844 11.4 Fines and forfeitures 960,148 1.8 Interest Income 617,056 1.2 Other revenue 1,138,342 2.2 Totals $ 52,724,524 100.0% Taxes produced 64.8 percent of general revenues. The amount of taxes collected was more than last year, which caused a slight increase in the percentage total. This is due to the increase in revenues received through grants and other intergovernmental funding. Taxable value of property in Ogden City was $2.87 billion. Included in this amount is $208 million in the tax increment districts. When the districts are formed, the taxable base value is determined and frozen. As the districts develop, the increase in property taxes received because of the increased taxable value above the frozen base is used to finance debt and or improvements in the increment districts. Licenses and permits provided 4.0 percent of general revenues. A decrease of $65,519 was due to less permits issued and the value of the construction. Intergovernmental revenues represented 14.6 percent of total general revenue. GASB Statement 34 requires the City’s trust funds to be combined in the General Fund. This source fluctuates year by year, depending on federal and state grants. Charges for services provided 11.4 percent of general revenues. This source of revenue tends to fluctuate because of the nature of most activities in this category. Fines and forfeitures provided 1.8 percent of general revenues. The revenue previously generated by property cleanup violations has been incorporated into another account tracking all associated cost and revenues. Interest Income totaled $617,056 for 1.2 percent. Other revenue includes police auctions, insurance rebates, and other administrative revenues. GENERAL FUND EXPENDITURES Expenditures for general governmental purposes (General Fund) for the fiscal year ended June 30, 2006 totaled $51,379,452. Levels of expenditures for major functions of the city are as follows: Percent Expenditure by Function Amount of Total General Government $ 7,080,910 12.8% Police and Fire 20,593,990 38.5 Public Services 9,999,399 19.1 Community & Economic Development 11,499,394 25.3 Debt Service 2,205,759 4.3 Totals $ 51,379,452 100.0% This year the employees were provided a 2% cost of living increase but no merit increases were budgeted ---PAGE BREAK--- Ogden City Corporation Letter of Transmittal 7 or provided. The City did however cover the 13% increased cost of health care insurance. Because of this compensation position, action was taken to hold employee costs for the City relatively neutral. In total, basic operating costs for the City remained, essentially, the same as last year. Community and Economic Development had an increase in spending due to the activities in promoting Ogden to new businesses and those looking to invest in the City’s economic structure. There are a couple of reasons for the debt service increase in cost. First, there were some bonds that matured during the year and final year payments were made, which were greater than yearly payments. Secondly, as indicated in the financial statements, there were some new bond issues and loans this year that added to the payment schedules. FUND BALANCE GUIDELINES Utah State Code Section 10-6-116 establishes guidelines on the use of fund balance in the General Fund. As outlined, any fund balance in excess of five percent of estimated revenues may be utilized for budget purposes. The section further indicates the fund balance shall not exceed eighteen percent of estimated revenues. Under these guidelines the City's fund balance parameters are approximately $2,327,294 and $8,378,258 based on next fiscal year's budgeted receipts. The unreserved portion of the General Fund balance at June 30, 2006 is $4,579,463. ENTERPRISE FUNDS The Change in Net Assets and the Unrestricted Net Assets for the enterprise funds for Fiscal Year 2006 are as follows: Change in Unrestricted Fund Net Assets Net Assets Water Utility $ 5,205,095 $ 2,489,435 Sewer Utility 9,063,166 (1,864,130) Refuse Collection 1,842,288 944,975 BDO (23,379,758) 17,617,415 Municipal Airport (821,152) (2,625,149) Golf Courses (341,839) (2,074,521) Recreation 13,046 151,817 Medical Services 231,329 1,095,840 DEBT ADMINISTRATION New Debt Issued in Fiscal Year 2006: During fiscal year 2006, Ogden City issued $45,152,005 in new debt. Debt was issued to finance construction of the Recreation Center and remodel the building which is now the Justice Court. Additional debt was used to purchase properties in the Ogden River Project District, finance affordable housing and purchase a new fire engine. For more information, please see Note 8 Long-term debt in the Notes to the Financial Statements. Outstanding bonds: General Obligation issued in 1996 have $1,520,000 principal outstanding. These bonds mature June 15, 2016. General Obligation issued in 1998 have $8,755,000 principal outstanding. These bonds mature December 15, 2015. General Obligation Refunding issued in 2003 have $7,750,000 principal outstanding. These bonds mature December 15, 2011. General Obligation Sales Tax Revenue issued in 2006 have $1,995,000 principal outstanding. These bonds mature March 1, 2026. Special Assessment bonds issued in 1999 for Paving District 190 have $83,000 in outstanding principal. These bonds mature July 1, 2009. Special Assessment bonds issued in 1999 for Paving District 191 have $174,000 in outstanding principal. These bonds mature July 1, 2009. Tax Increment Revenue bonds have $50,305,000 principal outstanding. These bonds mature by February 2026. Water & Sewer Revenue bonds issued in 1999 have $6,665,000 principal outstanding. These bonds mature June 15, 2024. Storm Water Revenue bonds issued in 2003 have $1,213,494 principal outstanding. These bonds mature March 2010. ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- 11 OGDEN CITY CORPORATION PRINCIPAL CITY OFFICIALS June 30, 2006 Title Name_____ Mayor Matthew Godfrey City Council Member Jesse M. Garcia City Council Member William Glasmann III City Council Member Dorrene Jeske City Council Member Rick Safsten City Council Member Doug Stephens City Council Member Brandon S. Stephenson City Council Member Amy L. Wicks City Council Executive Director William Cook Chief Administrative Officer John Patterson City Recorder Cindi Mansell City Attorney Norman L. Ashton Management Services Director Mark L. Johnson Police Chief Jon Greiner Fire Chief Michael L. Mathieu Public Services Director George Benford Community and Econ. Dev. Director David Harmer ---PAGE BREAK--- 12 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- Financial Section ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 17 INTRODUCTION The following is a discussion and analysis of Ogden City’s financial performance and activities for the year ended June 30, 2006. Please read it in conjunction with the transmittal letter in the Introductory Section of this report and with the financial statements that follow. HIGHLIGHTS Government-wide • The City’s total net assets increased $7,194,643 or 2.64 percent from the prior year. Net assets of governmental activities increased $15,382,457 or 17.59 percent, and net assets of business-type activities decreased by $8,187,825 or 4.43 percent. Fund Level • Fund balances in the City’s governmental funds increased $29,044,695 or 2497.01 percent from the prior year, mostly due to debt activities. • Property tax revenues were 1.96 percent higher than the prior year due to growth of the property tax base throughout the City. The City’s total sales taxes increased 8.64 percent indicating that the local economy is recovering from sluggish growth in previous periods. Long-term Debt • The City’s long-term debt increased due to borrowings in the Redevelopment Agency (RDA) and for the Justice Court. • The City issued the 2006 General Obligation Sales Tax Revenue Bonds and 2006 Lease Revenue Refunding Bonds, while the RDA issued the 2005A, 2005B, and 2005C Tax Increment Revenue Bonds. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is an introduction to the City’s Basic Financial Statements. The Basic Financial Statements include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the Basic Financial Statements, this report also contains other supplementary information including combining statements for nonmajor funds and a statistical section. Government-wide Statements - Reporting the City as a Whole The Statement of Net Assets and the Statement of Activities beginning on page 27 comprise the government-wide financial statements. These statements provide a broad overview with a long-term focus of the City’s finances as a whole and are prepared using the full-accrual basis of accounting, similar to private-sector companies. This means all revenues and expenses are recognized regardless of when cash is received or spent, and all assets and liabilities, including capital assets and long-term debt, are reported at the entity level. The government-wide statements report the City’s net assets - the difference between total assets and total liabilities - and how they have changed from the prior year. Over time, increases and decreases in net assets measure whether the City’s overall financial condition is getting better or worse. In evaluating the government’s overall condition, however additional non-financial factors should be considered such as the City’s economic outlook, changes in its demographics, and the condition of its capital assets and infrastructure. The government-wide statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or most of their costs through user fees and charges (business-type activities). Ogden City’s governmental activities include general administration, public safety, transportation, environmental protection leisure opportunities, and community development. The City’s business-type activities include certain operations for utilities, medical services, airport, recreation and property management. Fund Financial Statements - Reporting the City’s Most Significant Funds The fund financial statements beginning on page 31 provide detailed information about individual major funds, and not the City as a whole. A fund is a group of related accounts that the City uses to keep track of specific resources that are segregated for a specific purpose. Some funds are required by law to exist, while others are established internally to maintain control over a particular activity. All of the City’s funds are divided into two types, each of which uses a different accounting approach. Governmental Funds - Most of the City’s basic services are accounted for in governmental funds and are essentially the ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 18 same functions reported as governmental activities in the government-wide statements. Governmental funds use the modified accrual basis of accounting, which measures the flow of current financial resources that can be converted to cash and the balances left at year-end that are available for future spending. This short-term view of the City’s financial position helps determine whether the City has sufficient resources to cover expenditures for its basic services in the near future. Proprietary Funds - Ogden City uses two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City has ten enterprise funds which include water, sewer, airport, pioneer days, golf courses, refuse, BDO (Business Depot Ogden), recreation, Union Station, and medical services activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City maintains three internal service funds to account for its fleet and facilities, risk management, and management information systems activities. Because those services predominantly benefit governmental rather than business-type activities, they are included with governmental activities in the government-wide statements. Reconciliation between Government-wide and Fund Statements The financial statements include schedules on pages 35 and 38 that reconcile the amounts reported for governmental activities on the government-wide statements (full-accrual accounting, long-term focus) with amounts reported on the governmental fund statements (modified accrual accounting, short-term focus). Following are some of the major differences between the two statements: • Capital assets and long-term debt are included on the government-wide statements but are not reported on the governmental fund statements. • Capital outlays result in capital assets on the government-wide statements but are expenditures on the governmental fund statements. • Bond proceeds result in liabilities on the government-wide statements but are other financing sources on the governmental fund statements. • Certain tax revenues that are earned but not yet available are reported as revenue on the government-wide statements but are unearned revenue on the governmental fund statements. Notes to the Financial Statements The notes beginning on page 50 provide additional schedules and information that are essential to a complete understanding of the financial statements. The notes apply to both the government-wide financial statements and the fund financial statements. Required Supplementary Information Ogden City adopts an annual budget for all of its governmental and proprietary funds. Beginning on page 75 are budgetary comparison schedules for the City’s General and major Special Revenue funds. Supplementary Information Supplementary information includes combining statements for the City’s nonmajor governmental funds, internal service funds, and nonmajor enterprise funds. FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Net Assets The largest component of the City’s net assets, 83.3 percent, reflects investments in capital assets (land, buildings, equipment, roads, and other infrastructure) less all outstanding debt that was issued to buy or build those assets. As capital assets, these resources are not available for future spending, nor can they all be readily liquidated to pay off the related liabilities. Resources needed to repay capital-related debt must be provided from other sources. Restricted net assets comprise 9.6 percent of total net assets and are subject to external restrictions on how they may be used. Unrestricted net assets is $19,026,138. ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 19 Changes in Net Assets The following charts and schedules summarize the City’s revenues and expenses relative to each other and the prior year. Ogden City Ogden City Total Revenues - 2006 Total Expenses - 2006 Motor Vehicle 1% Other Revenues 0% Property Taxes 17% Sales Tax 20% Charges for Services 51% Capital Grants 3% Operating Grants 8% Property Management 9% Recreation 1% Airport 1% Medical Services 4% Environmental Protection 0% Leisure Opportunities 6% Transportation 7% Public Safety 22% Interest on Long Term Debt 3% Community Development 8% General Administration 20% Utilities 19% 2006 2005 2006 2005 2006 2005 Current and OtherAssets $ 65,013,382 $ 32,098,664 $ 19,889,741 $ 17,055,735 $ 84,903,123 $ 49,154,399 Capital Assets 151,322,543 135,612,359 175,023,347 188,116,115 326,345,890 323,728,474 To tal As s e ts 216,335,925 167,711,023 194,913,088 205,171,850 411,249,013 372,882,873 Current and Other Liabilities 33,785,118 33,317,788 2,618,172 4,648,515 36,403,290 37,966,303 Long-term Liabilities 79,703,499 42,706,772 15,800,447 15,841,041 95,503,946 58,547,813 To tal Liabilitie s 113,488,617 76,024,560 18,418,619 20,489,556 131,907,236 96,514,116 Net Assets: Invested in Capital Assets, Net of Related Debt 87,853,981 88,862,111 159,802,111 172,829,482 247,656,092 261,691,593 Restricted 11,702,871 11,419,430 956,676 1,971,539 12,659,547 13,390,969 Unrestricted (restated) 3,290,456 (12,816,700) 15,735,682 9,881,273 19,026,138 (2,935,427) To tal Ne t As s e ts $ 102,847,308 $ 87,464,841 $ 176,494,469 $ 184,682,294 $ 279,341,777 $ 272,147,135 17.59% 3.70% -4.43% -0.04% 2.64% 1.48% Change from prior year: To tal Ogde n City Ne t As s e ts June 30, Go ve rnme ntal Ac tivitie s B us ine s s -type Ac tivitie s ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 20 Governmental Activities Total tax revenues showed a moderate increase during 2006. Property taxes edged downward due to a decrease in taxes collected from redevelopment tax districts. Net assets for governmental activities increased this year due to moderate increases in charges for services and sales taxes without any tax rate increase. The change was also the result of a one- time transfer of infrastructure assets from BDO to the City’s general fixed asset infrastructure. Originally, the City was anticipating budget shortfall during the fiscal year causing implementation of cost cutting measures. To tal P e rc e nt Change 2006 2005 2006 2005 2006 2005 2005-2006 Re ve nue s General Revenues Taxes $ 38,373,228 $ 38,328,343 $ - $ - $ 38,373,228 $ 38,328,343 0.1% Other General Revenues 2,043,186 2,488,495 4,664,474 862,142 6,707,660 3,350,637 50.0% P rogram Revenues Charges for Services 21,190,908 17,711,336 27,093,866 27,339,430 48,284,774 45,050,766 6.7% Operating Grants 5,469,986 7,264,383 2,974,921 2,042,822 8,444,907 9,307,205 -10.2% Capital Grants 2,552,825 2,650,734 265,319 716,645 2,818,144 3,367,379 -19.5% To tal Re ve nue s 69,630,133 68,443,291 34,998,580 30,961,039 104,628,713 99,404,330 5.0% Expe ns e s General Administration 20,092,363 14,507,052 - - 20,092,363 14,507,052 27.8% P ublic Safety 21,241,719 20,360,855 - - 21,241,719 20,360,855 4.1% Transportation 7,526,427 6,728,128 - - 7,526,427 6,728,128 10.6% Environmental P rotection 398,019 425,139 - - 398,019 425,139 -6.8% Leisure Opportunities 6,162,480 5,688,692 - - 6,162,480 5,688,692 7.7% Community Development 8,422,124 9,908,295 - - 8,422,124 9,908,295 -17.6% Interest on Long-term Debt 3,138,558 3,745,000 - - 3,138,558 3,745,000 -19.3% Medical Services - - 3,946,947 3,528,822 3,946,947 3,528,822 10.6% Airport - - 1,499,326 1,408,112 1,499,326 1,408,112 6.1% Utilities - - 18,937,363 18,871,487 18,937,363 18,871,487 0.3% Recreation - - 1,347,419 1,585,168 1,347,419 1,585,168 -17.6% P roperty Management - - 4,721,336 7,966,783 4,721,336 7,966,783 -68.7% To tal Expe ns e s 66,981,690 61,363,161 30,452,391 33,360,372 97,434,081 94,723,533 2.8% 2,648,443 7,080,130 4,546,189 (2,399,333) 7,194,632 4,680,797 34.9% Transfers 12,734,014 (2,960,213) (12,734,014) 2,960,213 - - 0.0% Change in Ne t As s e ts 15,382,457 4,119,917 (8,187,825) 560,880 7,194,632 4,680,797 34.9% 87,464,851 83,344,934 184,682,294 184,121,414 272,147,145 267,466,348 1.7% Ne t As s e ts - Ending $ 102,847,308 $ 87,464,851 $ 176,494,469 $ 184,682,294 $ 279,341,777 $ 272,147,145 2.6% Change in Net Assets beforeTransfers Net Assets - Beginning (restated) To tal Ac tivitie s Ac tivitie s Go ve rnme ntal B us ine s s -type Ogde n City Change s in Ne t As s e ts Ye ars Ende d June 30, ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 21 The table below shows to what extent the City’s governmental activities relied on taxes and other general revenue to cover all of their costs. For 2006, these programs generated $29,213,719 million or 43.6 percent of their total expenses through charges for services and grants. Taxes and other general revenues covered the remaining 56.4 percent of expenses. Less Program Program Expenses Revenues 2006 2006 2006 2005 2006 2005 Activities General Administration $ 20,092,363 $ (12,903,129) $ 7,189,234 $ 2,248,350 64.2% 96.2% Public Safety 21,241,719 (3,388,320) 17,853,399 12,843,364 16.0% 38.1% Transportation 7,526,427 (2,552,825) 4,973,602 4,497,617 33.9% 52.0% Environmental Protection 398,019 (3,080,519) (2,682,500) (419,714) 774.0% 21.6% Leisure Opportunities 6,162,480 (1,106,687) 5,055,793 16,790 18.0% 1.6% Community Development 8,422,124 (6,182,239) 2,239,885 10,805,298 73.4% 28.3% Interest on Long-term Debt 3,138,558 - 3,138,558 3,745,001 0.0% 0.0% Total Governmental Activities $ 66,981,690 $ (29,213,719) $ 37,767,971 $ 33,736,706 43.6% 45.0% as a Percentage of Program Expenses Ogden City Net Cost of Governmental Activities Years Ended June 30 Net Program Costs Program Revenues Business-type Activities The business-type activities are generating sufficient revenue to cover costs in the Sewer, Refuse, BDO Property Management, Recreation, and Medical Services Funds. Reduction in net assets occurred in the Water, Airport, and Golf Funds. This combined with non-operating transfer activities resulted in a decrease in net assets of $8,187,825 for the combined business activities. CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION Capital Assets Ogden City added $16,347,750 in new capital assets during 2006. Buildings and improvements increased $8,509,059, equipment increased $1,751,674, and construction in progress of $6,087,017. The City sold or disposed of $4,194,652 in capital assets. Also, $676,568 in Construction in Progress is now completed at the BDO project and was considered in buildings and improvements. During the year, the BDO Property Management Fund transferred improvements totaling $6,071,454, $8,521,842 and 15,204,502 to the Water, Sewer and General fixed assets, respectively, for a total transfer of $29,797,798. Infrastructure The City has elected to use the modified-approach for reporting infrastructure. This election allows the City to forego reporting depreciation on infrastructure assets, provided that the City has made a commitment to maintain those particular assets at predetermined condition levels. Detailed information on the City’s modified approach for reporting infrastructure is presented in the Required Supplementary Information on page 86. During the year, there were no significant changes in condition levels of infrastructure assets. The City has been able to maintain infrastructure at a level of approximately 5% above its committed level of maintenance of 50% for Fair or better condition on Roads and Bridges for the past 4 years. In addition, the City has maintained a very low level of roads and bridges with a rating of very poor. Condition levels for the past four years have remained approximately 10% lower than the committed ceiling level for roads and 15% lower than the committed ceiling level for bridges. ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 22 The City spent less than estimated for maintenance of condition levels in the current year. Nevertheless, the City spent more in the current year than any of the previous 4 years showing commitment to maintain quality infrastructure. During fiscal year 2006 the City spent $4,712,018 on infrastructure compared to a budget estimate of $5,232,744. More information about capital assets is included in Note 5 on page 61 and more Long-term Debt During 2006, The City issued the 2006 General Obligation Sales Tax Revenue Bonds for the remodel and establishment of the Justice Court Building. The 2006 Lease Revenue Refunding Bonds which were used to refinance debt of the Municipal Building Authority. The RDA issued the 2005A, 2005B, and 2005C Tax Increment Revenue Bonds to finance the construction of the new City recreation center. The City entered into a line-of-credit arrangement with a financial institution to help finance other activities of the RDA. Ogden City also entered into a capital lease arrangement totaling $355,000 for equipment in the Fleet and Facilities Fund. Note 8 on page 63 provides more information on the City’s long-term debt activity for the year. The following table presents changes in Ogden City’s long-term obligations in relation to the previous year. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Fund Balances At June 30, 2006, Ogden City’s governmental funds reported combined fund balances of $28,766,478. An amount of, $31,918,513 is reserved for various purposes such as debt service, encumbrances, and interfund loans and is therefore unavailable for future spending. Another $84,109 has been designated for specific programs and projects. The following chart presents the City’s 2006 ending fund balances. To ta l P e rc e nt C hang e 20 0 6 2 0 0 5 2 0 0 6 2 0 0 5 2 0 0 6 2 0 0 5 2 0 0 5 -2 0 06 General Obligatio n Bo nds $ 20,020,000 $ 19,475,000 $ - $ - $ 20,020,000 $ 19,475,000 2.80% Leas e Revenue Bo nds 3,340,000 3,475,000 - - 3,340,000 3,475,000 -3.88% Tax Increment Revenue Bo nds 50,305,000 12,875,000 - - 50,305,000 12,875,000 290.72% Enterpris e Revenue Bo nds - - 15,221,236 16,013,163 15,221,236 16,013,163 -4.95% No tes P ayable 3,110,305 3,704,000 - - 3,110,305 3,704,000 -16.03% Capital Leas es 1,033,025 820,186 - - 1,033,025 820,186 25.95% Co mpens ated Abs ences 2,169,495 2,198,151 579,211 554,408 2,748,706 2,752,559 -0.14% Bo nd P remium 45,159 54,191 - - 45,159 54,191 -16.67% Bo nd Dis co unt (319,485) - - - (319,485) - 100.00% 79,703,499 42,601,528 15,800,447 16,567,571 95,503,946 59,169,099 61.41% Co mpens ated Abs ences , Current 928,725 942,065 248,234 237,603 1,176,959 1,179,668 -0.23% To ta l $ 80,632,224 $ 43,543,593 $ 16,048,681 $ 16,805,174 $ 96,680,905 $ 60,348,767 61.18% Og de n C ity Lo ng -te rm Lia bilitie s Ye ars Ende d J une 3 0, B us ine s s -type A c tiv itie s Go v e rnm e nta l A c tiv itie s To ta l ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 23 General Fund During 2006, the fund balance in the General Fund decreased $1,106,893 or 6.4 percent due primarily to transfers to other governmental funds to support operations. Total General Fund expenditures increased $1,242,383 or 2 percent due mainly to the following factors: • Cost of living increases in all departments • Increased costs related to Police and Public Services 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. The most significant change to the original adopted budget was a $3,936,773 increase to property development for various economic development projects in the City. Actual General Fund revenues were $2,710,112 or 6 percent above the original budget and $609,260 or 2 percent below the final budget. Actual expenditures were $2,045,738 or 4 percent above the original budget. Actual expenditures were $4,785,023 or 9 percent below the final budget. The City decreased the existing fund balance in the General Fund this year. Debt Service Fund The fund balance in the Debt Service Fund decreased $61,563 primarily due to a shortage of income compared to debt service requirements. In addition, the determination was made during 2006 to reclassify the funds associated with the individual tax increment districts from presentation in the debt service fund to the special revenue fund. The result was a net decrease in the fund balance of the fund of 2,466,732 compared to the prior year presentation. Redevelopment Agency Fund During the fiscal year, the fund balance in the Redevelopment Agency Fund increased $30,183,849 mostly due to bond proceeds used to fulfill the obligations of the Central Business District Mall that were being carried by the Redevelopment Agency Fund. Revenues increased $56,112. Expenditures were $4,324,168 greater than the prior year primarily as a result of increased property development costs, which were covered by the mentioned bonding activities. In addition, the determination was made during 2006 to reclassify the funds associated with the individual tax increment districts from presentation in the debt service fund to the special revenue fund. The result was a net increase in the fund balance of the fund of 2,466,732 compared to the prior year presentation. Water Fund In the current year, net assets increased $5,205,095 primarily as a result of the transfer in of infrastructure assets from Business Depot Ogden. Results from operations were in a deficit position of $401,234, due to flat water charges and higher costs of operations and contracted agreements. The City has encouraged several conservation measures be taken by its citizens causing a decrease in water consumption. This action plus the increase costs caused by the limited supply are the primary cause for the deficit in operating net income. Ge ne ra l D e bt R e de v e lo pm e nt N o nm a jo r F und S e rv ic e A g e nc y F unds To ta l Res erved $ 12,431,274 $ 366,563 $ 17,538,299 $ 1,582,377 $ 31,918,513 Unres erved/Des ignated 84,109 - - - 84,109 Unres erved/Undes ignated 4,579,463 - (8,971,457) 1,155,850 (3,236,144) To ta l $ 17,094,846 $ 366,563 $ 8,566,842 $ 2,738,227 $ 28,766,478 P ercent Change fro m P rio r Year: -6.08% -14.38% 139.63% 1.08% 10439.58% Og de n C ity Go v e rnm e nta l F und B a la nc e s J une 3 0 , 2 0 0 6 ---PAGE BREAK--- OGDEN CITY, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) Year Ended June 30, 2006 24 Sewer Fund Net assets increased $9,063,166 over the previous year, of which $543,224 was the result of operations. Refuse Fund Net assets increased overall in the fund due to a one time recovery insurance payment of $2,071,591. Increased operating expenses and debt costs resulted in a net operating loss (including cost of debt) of $294,272. BDO Property Management Fund The Business Depot Ogden Property Management Fund decreased fund balance $23,379,758 due to the transfer of infrastructure asset to the Water and Sewer funds and the General fixed assets of the City. Leasing revenue decreased $990,587 from the previous year due to transition in tenants. Nonmajor Governmental Funds Ogden City’s nonmajor governmental funds remained relatively constant with a combined increase in fund balance of $29,302. Nonmajor Enterprise Funds The combined change in net assets of the nonmajor enterprise funds shows a decrease of $918,616 or 9 percent from the previous year. This was primarily due to substantial losses in the Airport and Golf Funds. 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 been through the downsizing of defense related activities with the closure of Defense Depot Ogden. However, under the terms of the Base Realignment and Closure Act (BRAC), the former Defense Depot Ogden was transferred to City ownership. Significant improvements have been completed and are still underway at the now named Business Depot Ogden (BDO). Under a master lease agreement with a property management and development company, the City is working to redevelop this significant community asset into the premier new business and industrial park in Utah. Marketing efforts have been well received with several local and nationally affiliated businesses relocating to BDO. During fiscal year 2006, Ogden City issued $40,575,000 in new bonded debt. Debt was issued to finance the Recreation Center and cover previously existing obligations of the Central Business District. The City entered into a new capital lease for the purchase of a fire engine. The City also opened two new lines-of-credit for transactions related to the Ogden River Project and affordable housing program. 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. ---PAGE BREAK--- Basic Financial Section ---PAGE BREAK--- ---PAGE BREAK--- Governmental Business-type Activities Activities Total ASSETS Current assets Cash and investments $ 7,337,715 $ 17,595,985 $ 24,933,700 Receivables (net of allowance for uncollectibles): Accounts 4,504,363 6,390,315 10,894,678 Notes 140,000 - 140,000 Taxes 15,316,384 - 15,316,384 Special assesments 344,564 - 344,564 Prepaid items 19,904 363,086 382,990 Inventory, at cost 938,131 56,155 994,286 Internal balances 6,244,013 (6,244,013) - Total current assets 34,845,074 18,161,528 53,006,602 Noncurrent assets Restricted assets: Cash 2,039,029 35,197 2,074,226 Accounts receivable 69,163 - 69,163 Interest receivable 63,789 - 63,789 Grant loans 8,926,364 - 8,926,364 Investments 15,076,868 922,474 15,999,342 Total restricted assets 26,175,213 957,671 27,132,884 Capital assets: Land 19,474,551 36,802,240 56,276,791 Construction in progress 6,087,017 - 6,087,017 Infrastructure 70,980,602 - 70,980,602 Buildings and improvements 100,070,880 183,962,041 284,032,921 Machinery and equipment 22,791,585 320,265 23,111,850 Less: accumulated depreciation (68,082,092) (46,061,199) (114,143,291) Net capital assets 151,322,543 175,023,347 326,345,890 Deferred charge 1,330,924 90,811 1,421,735 Assets held-for-resale 2,662,171 - 2,662,171 Water rights - 4,633 4,633 Water stock - 675,098 675,098 Total noncurrent assets 181,490,851 176,751,560 358,242,411 Total assets 216,335,925 194,913,088 411,249,013 LIABILITIES Current liabilities Accounts payable 5,077,304 927,612 6,004,916 Accrued wages payable 1,211,791 327,682 1,539,473 Accrued compensated absences 928,725 248,234 1,176,959 Other payables and liabilities 1,882,423 104,556 1,986,979 Unearned revenue 24,277,975 572,484 24,850,459 Current liabilities (payable from restricted assets): Accrued bond interest 406,900 23,493 430,393 Customer deposits - 414,111 414,111 Total current liabilities (payable from restricted assets) 406,900 437,604 844,504 Total current liabilities 33,785,118 2,618,172 36,403,290 Noncurrent liabilities Due within one year 5,424,688 4,903,520 10,328,208 Due in more than one year 74,278,811 10,896,927 85,175,738 Total noncurrent liabilities 79,703,499 15,800,447 95,503,946 Total liabilities 113,488,617 18,418,619 131,907,236 NET ASSETS Investment in general capital assets net of related debt 87,853,981 159,802,111 247,656,092 Temporarily restricted net assets 11,292,226 956,676 12,248,902 Permanantly restricted net assets 410,645 - 410,645 Unrestricted net assets 3,290,456 15,735,682 19,026,138 Total net assets $ 102,847,308 $ 176,494,469 $ 279,341,777 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF NET ASSETS June 30, 2006 27 ---PAGE BREAK--- Page 1 of 2 Operating Capital Function/Programs Charges for Grants and Grants and Primary government: Expenses Services Contributions Contributions Governmental activities: General administration 20,092,363 $ 12,903,129 $ - $ - $ Public safety 21,241,719 2,206,926 1,181,394 - Transportation 7,526,427 - - 2,552,825 Environmental protection 398,019 3,080,519 - - Leisure opportunities 6,162,480 1,104,187 2,500 - Community development 8,422,124 1,896,147 4,286,092 - Interest on long-term debt 3,138,558 - - - Total governmental activities 66,981,690 21,190,908 5,469,986 2,552,825 Business-type activities: Medical services 3,946,947 2,599,408 1,575,590 - Airport 1,499,326 304,641 - 227,608 Utilities 18,937,363 20,703,204 - 37,711 Recreation 1,347,419 1,012,274 - - Property management 4,721,336 2,474,339 1,399,331 - Total business-type activities 30,452,391 27,093,866 2,974,921 265,319 Total primary government 97,434,081 $ 48,284,774 $ 8,444,907 $ 2,818,144 $ General revenues: Taxes: Property Sales Motor vehicle Unrestricted investment earnings Gain on sale of capital assets Transfers Total general revenues Change in net assets Net assets - beginning (restated) Net assets - ending The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF ACTIVITIES Year Ended June 30, 2006 Program Revenues 28 ---PAGE BREAK--- Page 2 of 2 Governmental Business-type Activities Activities Total (7,189,234) $ - $ (7,189,234) $ (17,853,399) - (17,853,399) (4,973,602) - (4,973,602) 2,682,500 - 2,682,500 (5,055,793) - (5,055,793) (2,239,885) - (2,239,885) (3,138,558) - (3,138,558) (37,767,971) - (37,767,971) - 228,051 228,051 - (967,077) (967,077) - 1,803,552 1,803,552 - (335,145) (335,145) - (847,666) (847,666) - (118,285) (118,285) (37,767,971) (118,285) (37,886,256) 16,717,390 - 16,717,390 20,593,363 - 20,593,363 1,062,475 - 1,062,475 1,346,319 691,612 2,037,931 696,867 3,972,862 4,669,729 12,734,014 (12,734,014) - 53,150,428 (8,069,540) 45,080,888 15,382,457 (8,187,825) 7,194,632 87,464,851 184,682,294 272,147,145 102,847,308 $ 176,494,469 $ 279,341,777 $ Primary Government Net (Expense) Revenue and Changes in Net Assets 29 ---PAGE BREAK--- 30 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- 31 Governmental Fund Financial Statements General Fund To account for resources traditionally associated with governments which are not required to be accounted for in another fund. Debt Service Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Redevelopment Agency A special revenue fund used to account for the specific revenues that are legally restricted to expenditures for the City's redevelopment activities, including payment of redevelopment agency debt. Nonmajor Governmental Funds Nonmajor governmental funds are presented beginning on page 86. ---PAGE BREAK--- Page 1 of 2 Special Revenue Debt Redevelopment General Service Agency ASSETS Cash and investments $ 424,576 $ 208,185 $ 2,380,612 Due from other funds 7,130,968 - 1,886,463 Receivables (net of allowance for uncollectibles): Accounts 3,999,877 - 177,333 Taxes 9,571,171 - 5,745,213 Special assessments - 158,378 - Note - - 140,000 Inventory, at cost 79,734 - - Restricted assets: Cash 483,990 - 1,544,585 Interest receivable - - - Prepaid expenses 19,904 - - Investments / grant loans 8,926,364 - 14,271,045 Loans to other funds 9,122,738 - 346,498 Other assets - - 2,662,171 Total assets $ 39,759,322 $ 366,563 $ 29,153,920 LIABILITIES Due to other funds $ - $ - $ - Accounts payable 930,288 - 2,757,903 Accrued wages payable 1,124,283 - - Other payables and liabilities 1,854,938 - - Loans from other funds 346,498 - 10,522,739 Short-term notes payable 304,676 - 1,388,630 Unearned revenue 18,103,793 - 5,917,806 Total liabilities 22,664,476 - 20,587,078 FUND BALANCE Reserved fund balance: Reserved - encumbrances 1,839,943 - - Reserved - prepaid expenses 19,904 - - Reserved - inventory 79,734 - - Reserved - loans to other funds 9,122,739 - - Reserved - haircut program - - 295,194 Reserved - debt service - 366,563 1,482,321 Reserved - accrued compensated absences 884,964 - - Reserved - restricted cash and investments 483,990 - 15,760,784 Unreserved, designated for: Tax districts 84,109 - - Unreserved, undesignated reported in: Capital projects fund - - - Special revenue funds - - (8,971,457) General fund 4,579,463 - - Total fund balances 17,094,846 366,563 8,566,842 Total liabilities and fund balances $ 39,759,322 $ 366,563 $ 29,153,920 The notes to the financial statements are an integral part of this statement. GOVERNMENTAL FUNDS OGDEN CITY CORPORATION BALANCE SHEET June 30, 2006 32 ---PAGE BREAK--- Page 2 of 2 Non-Major Total Governmental Governmental Funds Funds $ 1,544,660 $ 4,558,033 130,881 9,148,312 26,729 4,203,939 - 15,316,384 186,186 344,564 - 140,000 97,300 177,034 10,454 2,039,029 63,789 63,789 - 19,904 805,823 24,003,232 513,045 9,982,281 - 2,662,171 $ 3,378,867 $ 72,658,672 $ 130,881 $ 130,881 225,898 3,914,089 - 1,124,283 27,485 1,882,423 - 10,869,237 - 1,693,306 256,376 24,277,975 640,640 43,892,194 166,209 2,006,152 - 19,904 97,300 177,034 513,045 9,635,784 - 295,194 - 1,848,884 - 884,964 805,823 17,050,597 - 84,109 586,744 586,744 569,106 (8,402,351) - 4,579,463 2,738,227 28,766,478 $ 3,378,867 $ 72,658,672 33 ---PAGE BREAK--- 34 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- OGDEN CITY CORPORATION Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets June 30, 2006 Total Fund Balances - Governmental Funds $ 28,766,478 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets in governmental activities are not financial resourses and therefore are not reported in governmental funds. These assets consist of the following: Land $ 19,465,551 Infrastructure 70,980,602 Other capital assets 106,513,087 Accumulated depreciation (50,028,259) 146,930,981 Bond issuance costs are assets that are reported for governmental activities, but not in the govenmental funds as they are considered to be long-term and amortized over the life of the associated liabilities. 1,330,924 Management uses internal service funds to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are reported with governmental activities in the Statement of Net Assets. 3,578,949 Some liabilities are considered to be current in the governmental funds, because they are due on demand. However, they are reported as long-term liabilities, due with in a year in the Statement of Net Assets 1,693,306 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: Bonds and notes payable (76,500,977) Compensated absences (2,952,353) (79,453,330) Net Assets of Governmental Activities $ 102,847,308 The notes to the financial statements are an integral part of this statement. 35 ---PAGE BREAK--- Page 1 of 2 Special Revenue Debt Redevelopment General Service Agency REVENUES: Taxes and special assessments $ 34,171,668 $ 15,661 $ 6,344,648 Licenses and permits 2,100,508 - - Intergovernmental 7,707,958 - - Charges for services 6,028,844 - 1,200 Fines and forfeitures 960,148 - - Miscellaneous 1,053,214 - 705,491 Outside donations 80,806 - - Interest 617,056 18,605 542,992 Sale of property 4,322 - 564,981 Total revenues 52,724,524 34,266 8,159,312 EXPENDITURES: Current: Mayor 433,797 - - City council 625,647 - 8,630 Management services 2,293,113 - - Circuit court 34,020 - - Corporate counsel 896,177 - - Non-departmental 2,798,156 - - Police 14,267,656 - - Fire 6,326,334 - - Public services 9,999,399 - - Community and economic development 11,499,394 - 9,698,399 Debt service: Principal 1,450,000 77,000 3,250,000 Interest and fiscal charges 715,809 18,829 2,872,936 Fees and assessments 39,950 - Capital outlay - - - Total expenditures 51,379,452 95,829 15,829,965 Excess (deficiency) of revenues over expenditures 1,345,072 (61,563) (7,670,653) OTHER FINANCING SOURCES (USES): Issuance of debt 1,995,000 - 38,580,000 Bond discount - - (336,300) Payment to refunded bond escrow - - - Transfers in 250,000 - 19,948,649 Transfers out (4,696,965) - (20,337,847) Total other financing sources (uses) (2,451,965) - 37,854,502 Net change in fund balances (1,106,893) (61,563) 30,183,849 Fund balance at beginning of year (restated) 18,201,739 428,126 (21,617,007) Fund balance at end of year $ 17,094,846 $ 366,563 $ 8,566,842 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, 2006 36 ---PAGE BREAK--- Page 2 of 2 Non-Major Total Governmental Governmental Funds Funds $ 68,653 $ 40,600,630 - 2,100,508 - 7,707,958 501,952 6,531,996 - 960,148 34,903 1,793,608 - 80,806 109,019 1,287,672 - 569,303 714,527 61,632,629 - 433,797 - 634,277 - 2,293,113 - 34,020 - 896,177 1,822,210 4,620,366 - 14,267,656 - 6,326,334 655,634 10,655,033 - 21,197,793 225,000 5,002,000 257,056 3,864,630 - 39,950 91,000 91,000 3,050,900 70,356,146 (2,336,373) (8,723,517) 2,865,000 43,440,000 - (336,300) (2,865,000) (2,865,000) 2,382,175 22,580,824 (16,500) (25,051,312) 2,365,675 37,768,212 29,302 29,044,695 2,708,925 (278,217) $ 2,738,227 $ 28,766,478 37 ---PAGE BREAK--- OGDEN CITY CORPORATION Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Government Funds to the Statement of Activities Year Ended June 30, 2006 Net Change in Fund Balances-Total Governmental Funds 29,044,695 $ 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: Capital outlay 8,928,533 $ Depreciation expense (4,280,240) 4,648,293 Debt proceeds provide current financial resources to governmental funds; however, issuing debt increases long-term liabilities in the Statement of Net Assets. In the current year, proceeds were received from issuing bonds including bond discounts. (43,103,700) 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 7,867,000 Management uses internal service funds to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities 925,214 Management reassigned certain infrastructure assets of an enterprise fund to the general fixed assets of the City. Since capital contributions can not be negative, the transaction is treated as a transfer out in the enterprise fund without a corresponding recipent governmental fund. The transfer in is recognized in the government-wide statement of activities 15,204,502 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: Capitalization of bond issuance costs 938,965 Amortization of bond premiums, discounts and costs (142,512) 796,453 Change in Net Assets of Governmental Activities 15,382,457 $ The notes to the financial statements are an integral part of this statement. 38 ---PAGE BREAK--- 39 Proprietary Fund Financial Statements Water Utility Fund To account for the provision of water to City residents and some residents of Weber County. All activities necessary to provide such services are accounted for in this fund including, but not limited to: administration (utility director), operations, maintenance, financing, related debt service, billing and collection. Sewer Utility Fund To account for the provision of sewer services to City residents and some residents of Weber County. All activities necessary to provide such services are accounted for in this fund including, but not limited to: operations, maintenance, financing, related debt service, billing and collection. Refuse Utility Fund To account for the service of refuse collection and disposal for City residents and some residents of Weber County. All activities necessary to provide such services are accounted for in this fund including, but not limited to: administration, operation, maintenance, billing and collecting. Business Development Ogden (BDO) Property Management To account for revenues and expenditures related to the development of the Business Development Ogden business park formally known as the Defense Depot of Ogden. Nonmajor Enterprise Funds Nonmajor enterprise funds are presented beginning on page 95. 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 102. ---PAGE BREAK--- Page 1 of 4 Water Sewer Refuse ASSETS Current assets Cash $ 632,691 $ - $ - Due from other funds 493,227 - - Accounts receivable (net) 1,264,732 504,023 1,047,050 Notes receivable - - - Inventory, at cost - - - Prepaid expenses 363,086 - - Total current assets 2,753,736 504,023 1,047,050 Noncurrent assets Loans to other funds - 266,894 1,400,000 Deferred charge 60,571 30,240 - Total loans to other funds and deferred charges 60,571 297,134 1,400,000 Restricted assets: Cash 6,125 - 28,077 Employee PC loans receivable - - - Investments 402,654 201,025 318,795 Total restricted assets 408,779 201,025 346,872 Capital assets: Land 297,512 944,867 502,250 Buildings 2,139,395 - 1,110,983 Improvements 41,591,542 25,706,117 - Project under construction - - - Office furniture 40,442 - - Equipment 240,233 5,295 - Vehicles - - - Total capital assets 44,309,124 26,656,279 1,613,233 Less accumulated depreciation (14,069,233) (4,531,722) (254,610) Net capital assets 30,239,891 22,124,557 1,358,623 Water rights 4,633 - - Water stock 675,098 - - Total noncurrent assets 31,388,972 22,622,716 3,105,495 Total assets $ 34,142,708 $ 23,126,739 $ 4,152,545 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2006 40 ---PAGE BREAK--- Page 2 of 4 BDO Non-Major Property Enterprise Total Management Funds Total Internal Service $ 16,752,564 $ 210,730 $ 17,595,985 $ 2,779,682 - - 493,227 - 1,550,054 2,024,456 6,390,315 300,424 - - - - - 56,155 56,155 761,097 - - 363,086 - 18,302,618 2,291,341 24,898,768 3,841,203 - - 1,666,894 - - - 90,811 - - - 1,757,705 - - 995 35,197 - - - - 69,163 - - 922,474 - - 995 957,671 69,163 33,081,350 1,976,261 36,802,240 9,000 92,587,513 1,599,139 97,437,030 723,002 - 19,227,352 86,525,011 364,760 - - - - - 26,205 66,647 5,528 - 8,090 253,618 8,148,700 - - - 13,194,405 125,668,863 22,837,047 221,084,546 22,445,395 (17,252,858) (9,952,776) (46,061,199) (18,053,833) 108,416,005 12,884,271 175,023,347 4,391,562 - - 4,633 - - - 675,098 - 108,416,005 12,885,266 178,418,454 4,460,725 $ 126,718,623 $ 15,176,607 $ 203,317,222 $ 8,301,928 41 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2006 Page 3 of 4 Water Sewer Refuse LIABILITIES AND NET ASSETS LIABILITIES: Current liabilities Due to other funds $ - $ 2,527,168 $ 1,236,753 Accounts payable 87,899 12,057 117,196 Contracts payable - - - Property tax payable - - - Claims payable - - - Unearned revenue - - - Accrued wages payable 106,568 27,740 40,364 Accrued compensated absences 91,611 19,869 30,738 Other accrued payables 82,020 22,536 - Deposits payable 414,111 - - Total current liabilities (payable from current assets) 782,209 2,609,370 1,425,051 CURRENT LIABILITIES (payable from restricted assets): Revenue bonds/note payable 166,750 367,980 185,000 Accrued bond interest 8,635 9,554 5,304 Customer deposits - - - Total current liabilities (payable from restricted assets) 175,385 377,534 190,304 Total current liabilities 957,594 2,986,904 1,615,355 Noncurrent liabilities Revenue bonds/note payable 4,278,805 3,064,961 2,455,000 Compensated absences 213,759 46,363 71,720 Loans from other funds - - - Total noncurrent liabilities 4,492,564 3,111,324 2,526,720 Total liabilities 5,450,158 6,098,228 4,142,075 NET ASSETS: Investment in general capital assets (net of related debt) 25,794,336 18,691,616 (1,281,377) Restricted net assets 408,779 201,025 346,872 Unrestricted net assets 2,489,435 (1,864,130) 944,975 Total net assets $ 28,692,550 $ 17,028,511 $ 10,470 The notes to the financial statements are an integral part of this statement. 42 ---PAGE BREAK--- Page 4 of 4 BDO Non-Major Property Enterprise Total Management Funds Total Internal Service $ - $ 3,860,274 $ 7,624,195 $ 1,886,463 676,425 34,035 927,612 657,677 - - - 1,033,024 - - - - - - - 912,438 - 572,484 572,484 - 3,143 149,867 327,682 87,508 1,691 104,325 248,234 43,761 - - 104,556 - - - 414,111 - 681,259 4,720,985 10,218,874 4,620,871 4,183,790 - 4,903,520 - - - 23,493 - - - - - 4,183,790 - 4,927,013 - 4,865,049 4,720,985 15,145,887 4,620,871 518,950 - 10,317,716 - 3,944 243,425 579,211 102,108 - 779,939 779,939 - 522,894 1,023,364 11,676,866 102,108 5,387,943 5,744,349 26,822,753 4,722,979 103,713,265 12,884,271 159,802,111 4,391,562 - - 956,676 - 17,617,415 (3,452,013) 15,735,682 (812,613) $ 121,330,680 $ 9,432,258 $ 176,494,469 $ 3,578,949 43 ---PAGE BREAK--- Page 1 of 2 Water Sewer Refuse OPERATING REVENUES: Charges for services $ 7,775,694 $ 5,801,639 $ 3,828,593 OPERATING EXPENSES: Cost of materials and parts - - - Personal services: Salaries and wages 1,986,535 517,224 753,307 Benefits 809,941 203,185 277,245 Supplies: Office supplies 155,053 1,402 618 Operating supplies 387,454 35,627 26,151 Repair and maintenance supplies 40,614 3,538 884 Charges for services: Sewer district charges - 1,219,690 - Disposal charges - - 934,904 Public utility services 407,557 34,758 24,693 Travel and education 9,194 2,326 447 Contracted agreements 1,285,973 781,038 62,971 Other operating expenses: Depreciation 717,502 338,304 44,439 Data processing and computer equipment 446,800 110,250 13,975 Maintenance and repair 363,360 639,803 47,853 Vehicle operating expenses 315,915 286,860 773,300 Water purchase 847,398 - - Claims payments - - - Miscellaneous 41,225 7,694 106,474 Total operating expenses 7,814,521 4,181,699 3,067,261 Operating income (loss) (38,827) 1,619,940 761,332 NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income 99,626 20,404 1,714 Gain on sale of assets 58,982 - - Accounting charges 404,938 - - Special district taxes 726,172 - - Grants and donations - - - Miscellaneous income 3,027 26,581 2,136,560 Expenses: Interest expense (217,539) (274,882) (177,200) Rental charges (116,144) (109,965) (74,399) Fiscal charges (1,359,180) (738,854) (805,719) Total non-operating revenues (expenses) (400,118) (1,076,716) 1,080,956 Contributed capital 37,711 - - Income before operating transfers (401,234) 543,224 1,842,288 Transfers in 6,071,454 8,521,842 - Transfers out (465,125) (1,900) - Change in net assets 5,205,095 9,063,166 1,842,288 Net assets, July 1 (restated) 23,487,455 7,965,345 (1,831,818) Net assets, June 30 $ 28,692,550 $ 17,028,511 $ 10,470 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2006 44 ---PAGE BREAK--- Page 2 of 2 BDO Non-Major Internal Property Enterprise Service Management Funds Total Funds $ 2,474,339 $ 3,894,734 $ 23,774,999 $ 12,102,053 - 149,345 149,345 2,649,133 73,748 2,706,293 6,037,107 1,623,941 15,411 949,875 2,255,657 606,078 5,039 8,630 170,742 47,553 - 178,967 628,199 39,843 - 2,580 47,616 7,137 - - 1,219,690 - - - 934,904 - 6,584 222,255 695,847 1,172,200 316 16,896 29,179 34,524 556,988 527,687 3,214,657 2,661,871 3,701,673 856,768 5,658,686 1,874,587 33,000 55,975 660,000 562,997 8,554 83,127 1,142,697 76,636 7,156 523,065 1,906,296 96,296 - - 847,398 - - - - 1,530,413 1,702 90,307 247,402 2,724 4,410,171 6,371,770 25,845,422 12,985,933 (1,935,832) (2,477,036) (2,070,423) (883,880) 560,238 9,630 691,612 58,647 3,913,880 - 3,972,862 127,563 - - 404,938 - - - 726,172 - 1,399,331 1,575,590 2,974,921 - - 21,589 2,187,757 1,658,368 (311,165) (161,646) (1,142,432) (30,428) - (8,670) (309,178) (5,056) - (251,606) (3,155,359) - 5,562,284 1,412,495 6,351,293 1,809,094 - 227,608 265,319 - 3,626,452 (836,933) 4,546,189 925,214 2,791,588 146,425 17,531,309 - (29,797,798) (500) (30,265,323) - (23,379,758) (918,616) (8,187,825) 925,214 144,710,438 10,350,874 184,682,294 2,653,735 $ 121,330,680 $ 9,432,258 $ 176,494,469 $ 3,578,949 45 ---PAGE BREAK--- Page 1 of 4 Water Sewer Refuse CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 7,471,578 $ 5,709,097 $ 3,785,207 Cash received (paid) from (to) other funds 330,004 (379,229) 413,432 Cash payments to suppliers for goods and services (4,385,281) (3,167,391) (1,995,579) Cash payments to employees for services (2,783,926) (716,814) (1,024,411) Miscellaneous income - - - Net cash from operating activities 632,375 1,445,663 1,178,649 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Fiscal charges paid to other funds (1,486,106) (864,468) (1,198,823) Fiscal charges received - other funds 404,938 - - Payments paid - interfund loans - - - Payments received - interfund loans - - - Special district taxes 726,172 - - Deposits collected for other govts - - - Change in long-term compensated absences (8,257) 2,395 3,035 Grants/donations - - - Transfers in - - - Transfers out (465,125) (1,900) - PC loans paid - - - Net cash from noncapital financing activities (828,378) (863,973) (1,195,788) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (10,415) - - Proceeds from capital debt - - - Capital grants 37,711 - - Principal paid on revenue bonds (160,080) (353,057) (175,000) Interest paid on revenue bonds (217,810) (275,618) (177,551) Payments on contracts payable - - - Interest expense on loans - - - Proceeds from sale of assets 58,982 - - Net cash from capital and related financing activities (291,612) (628,675) (352,551) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 99,626 20,404 1,714 Miscellaneous non-operating income 3,027 26,581 1,450,894 Interest expense on cash deficit - - (1,400,000) Net cash from investing activities 102,653 46,985 52,608 Net increase (decrease) in cash equivalents (384,962) - (317,082) Cash/equivalents at beginning of year 1,023,778 - 345,159 Cash/equivalents at end of year 638,816 - 28,077 Cash/equivalents, end of year (unrestricted) 632,691 - - Cash/equivalents, end of year (restricted) 6,125 - 28,077 Total cash/equivalents, end of year $ 638,816 $ - $ 28,077 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2006 46 ---PAGE BREAK--- Page 2 of 4 BDO Non-Major Internal Property Enterprise Service Management Funds Totals Funds $ 1,702,776 $ 3,652,298 $ 22,320,956 $ 12,153,542 - 722,263 1,086,470 (18,993) (822,854) (1,877,161) (12,248,266) (8,803,007) (97,758) (3,630,733) (8,253,642) (2,222,626) - - - 1,658,368 782,164 (1,133,333) 2,905,518 2,767,284 - (260,276) (3,809,673) (5,056) - - 404,938 - - - - - 11,703,808 - 11,703,808 - - - 726,172 - - - - - - - (2,827) (2,860) 1,399,331 1,575,590 2,974,921 - 2,791,588 145,925 2,937,513 - - - (467,025) - - - - 764 15,894,727 1,493,445 14,467,827 (7,152) (8,150,390) (424,883) (8,585,688) (1,827,303) - - - - - 227,608 265,319 - - - (688,137) 355,000 - - (670,979) - (103,790) - - (110,829) (311,165) - - (2,503) 4,113,850 - 4,172,832 127,563 (4,451,495) (167,276) (5,506,653) (1,458,072) 560,238 28,055 710,037 58,648 - - - (1,400,000) (27,925) 560,238 (133,591) (689,963) 30,723 12,785,634 59,245 12,142,835 1,332,783 3,966,930 152,480 5,488,347 1,446,899 16,752,564 211,725 17,631,182 2,779,682 16,752,564 210,730 17,595,985 2,779,682 - 995 35,197 - $ 16,752,564 $ 211,725 $ 17,631,182 $ 2,779,682 47 ---PAGE BREAK--- OGDEN CITY CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2006 Page 3 of 4 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Water Sewer Refuse Operating income (loss) $ (38,827) $ 1,619,940 $ 761,332 Reconciliation adjustments: Depreciation 717,502 338,304 44,439 Miscellaneous non-operating revenues (expenses) - - - Changes in assets and liabilities: Change in due from other funds 330,004 - - Change in accounts receivable (304,116) (92,542) (43,386) Change in inventory - - - Change in prepaid expenses 25,143 - - Change in due from other funds - - - Change in due to other funds - (379,229) 413,432 Change in accounts payable (123,874) (19,166) (3,309) Change in deposits payable 9,177 - - Change in unearned revenue - - - Change in other accrued liabilities 4,816 (25,239) - Change in wages payable and compensated absences 12,550 3,595 6,141 Total adjustments 671,202 (174,277) 417,317 Net cash provided by operating activities $ 632,375 $ 1,445,663 $ 1,178,649 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: The City entered into a capital lease to buy equipment in the Fleet and Facilities fund. The lease amount totaled $355,000. 48 ---PAGE BREAK--- Page 4 of 4 BDO Non-Major Internal Property Enterprise Service Management Funds Totals Funds $ (1,935,832) $ (2,477,036) $ (2,070,423) $ (883,880) 3,701,673 856,768 5,658,686 1,874,587 - - - 1,658,368 - - 330,004 (771,563) (242,436) (1,454,043) 51,489 - 6,873 6,873 (85,784) - - 25,143 - - - - - - 722,263 756,466 (18,993) (203,515) (10,660) (360,524) (25,622) - - 9,177 - - (14,540) (14,540) - - - (20,423) 189,726 (8,599) 25,435 39,122 7,393 2,717,996 1,343,703 4,975,941 3,651,164 $ 782,164 $ (1,133,333) $ 2,905,518 $ 2,767,284 49 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 50 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Ogden conform in all material respects to generally accepted accounting principles (GAAP) as applicable to governments. The City has adopted the provisions of the Governmental Accounting Standards Board (GASB). Preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. The following is a summary of the more significant policies and is presented to assist the reader in interpreting the financial statements and other data in this report. These policies, as presented, should be viewed as an integral part of the accompanying financial statements. A. Reporting Entity Ogden City Corporation was incorporated February 6, 1851 by the General Assembly of the State of Deseret. Ogden became a home rule charter city on June 29, 1851. The City operates under a Mayor-Council form of government and provides the following services as authorized by its charter: police and fire protection, planning and engineering, code enforcement, street maintenance, traffic control, parks operation and maintenance, recreation services, community development, general administrative services, water, sewer and solid waste services and airport services. The criteria set forth by generally accepted accounting principles (GAAP) was used to determine which entities to include in this report. GASB Concepts Statement-1 (Objectives of Financial Reporting) concludes that the basic foundation for governmental financial reporting is accountability. The Concepts Statement asserts that accountability requires governments to answer to the citizenry - to justify the raising of public resources and the purposes for which they are used. In turn, the concept of accountability becomes the basis for defining the financial reporting entity. Under GASB-14 (The Financial Reporting Entity) the financial reporting entity consists of the following: A. The primary government B. Organizations for which the primary government is financially accountable C. Other organizations that, because of the nature and significance of their relationship with the primary government, exclusion from the reporting entity would render the financial statements misleading or incomplete Blended component units, although legally separate entities, are in substance part of the government’s operations. They are reported as part of the primary government and blended with the appropriate funds. The accompanying financial statements include all activities of the City and Ogden Redevelopment Agency (RDA). The RDA was included because the separate governing bodies of both entities are comprised of the same individuals and the City is financially accountable for the RDA. The financial statements also include activities of the Ogden Municipal Building Authority. The Building Authority governing body is comprised of the same individuals as the City Council and was created to purchase condominium space in the office building that houses most city administrative departments as well as the City Council. Revenue comes from a lease with the City. Both the Ogden Redevelopment Agency and the Ogden Municipal Building Authority are included in the accompanying financial statements as blended component units. B. Government-wide And Fund Financial Statements The City’s basic financial statements consist of both government-wide statements and fund statements. The government-wide statements focus on the City as a whole, while the fund statements focus on individual funds. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 51 Government-wide Financial Statements The government-wide statements present information on all non-fiduciary activities of the primary government. Primary government activities are distinguished between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The effects of interfund activity have been eliminated from the government-wide statements except for the residual amounts due between governmental and business-type activities. The Statement of Net Assets presents the City’s non-fiduciary assets and liabilities, with the difference reported as net assets. Net assets are restricted when constraints placed upon them are either externally imposed or are imposed by constitutional provisions or enabling legislation. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable within a specific function. The City does not allocate general government (indirect) expenses to other functions. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other revenues not meeting the definition of program revenues are reported as general revenues. Fund Financial Statements The financial transactions of the City are recorded in individual funds. A fund is a separate accounting entity with a self-balancing set of accounts. Fund accounting is used to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. Separate statements are provided for governmental and proprietary funds. For governmental and proprietary funds, the emphasis is on major funds, with each displayed in a separate column. The City reports the following major governmental funds: • General Fund - This fund is the principal operating fund of the City. It is used to account for all financial resources not required to be accounted for in another fund. • Debt Service Fund - This fund accounts for the accumulation of resources for payment of principal, interest, and related costs on the City’s general long-term debt. • Ogden Redevelopment Agency Fund - This special revenue fund accounts for the agency’s redevelopment activities. The Ogden Redevelopment Agency debt is included in this fund. Ogden City’s remaining nonmajor governmental funds account for specific revenue sources that are legally restricted to expenditures for specific purposes. Funds included are the Municipal Building Authority, Union Station, Downtown Special Assessment, and Cemetery Perpetual Care (Special Revenue Funds), the Gomer A. Nicholas Fund, a Permanent Fund, and the Capital Improvement Projects Fund. The nonmajor funds are grouped together in a single column in the basic financial statements and they are displayed individually in the combining statements. The City reports the following major proprietary funds: • Water Utility Fund - This enterprise fund accounts for activities necessary to provide water services to residents. • Sewer Utility Fund - This enterprise fund accounts for activities necessary to provide sewer services to residents. • BDO Property Management Fund – This enterprise fund is used to account for operations of the Business Development Ogden project. • Refuse Fund - This enterprise fund accounts for the services of refuse collection and disposal for residents. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 52 • 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 and Facilities, Information Systems, and Risk Management services. Internal service funds are reported in a single column on the proprietary fund statements and are combined with governmental activities on the government-wide statements. They are also displayed individually in the combining statements. The City’s remaining proprietary funds include Golf Courses, Airport, Recreation, and Medical Services. These enterprise funds account for their respective business-type activities. C. Measurement Focus and Basis of Accounting The government-wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the related liability is incurred, regardless of the timing of the cash flows. Taxes and fees are recognized in the year in which the related sales or other activity has occurred. Grants and similar items are recognized as revenue when all eligibility requirements have been met. The proprietary fund statements are also prepared using the economic resources measurement focus and the accrual basis of accounting. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues generally result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating items, such as interest expense and investment earnings, result from nonexchange transactions or ancillary activities. For business-type activities and enterprise funds, the City follows all GASB pronouncements and all Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989 unless those standards conflict with a GASB pronouncement. The governmental fund financial statements are prepared and reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. Expenditures are generally recorded when the related liability is incurred. D. Assets, Liabilities, and Fund Balances/Net Assets The following are the City’s significant policies regarding recognition and reporting of certain assets, liabilities, and equity. Pooled Cash and Temporary Investments Unrestricted and restricted cash balances of all funds are combined to form a pool of cash and investments which is managed by the City Treasurer. Utah State Statutes allow for investments in the Utah Public Treasurer’s Investment Fund and Utah Money Management Act (UMMA) approved financial institutions. The UMMA provides for a committee to evaluate financial institutions and provide a list of those qualified as depositories for public funds, including the amount they are authorized to maintain over and above insured amounts. The City Treasurer invests unrestricted cash with the Utah Public Treasurer’s Investment Fund and with financial institutions on the approved list. Investments in the pooled cash fund consist primarily of certificates of deposit, repurchase agreements, time deposits, commercial paper and government agency securities and are carried at cost which approximates market value. Interest income earned as a result of pooling is distributed to the appropriate funds based on month end balances of cash and investments. Short term investments that are readily convertible to known amounts of cash and have an original maturity date of three months less are defined as cash equivalents for purposes of the Cash Flow statements. Long-term Investments Investments are reported in accordance with GASB Statement 31. Investments are reported at fair market value or amortized cost. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 53 Interest Rate Swap The Ogden City Redevelopment Agency (RDA) entered into two Libor-indexed interest rate swaps with 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. The Series 2005B Bonds will be paid from lease revenues derived from a commercial lease agreement. The Series 2005C-1 and 2005C-2 bonds will be paid with tax increment revenues from the American Can Redevelopment District and lease revenues. The Series 2005B and Series 2005C-1 and 2005C-2 bonds are further secured by a letter of credit issued by Bank of New York. The Bank of New York letter of credit terminates on November 28, 2008. 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. Terms: The Series2005 Bonds were issued November 29, 2005, which is the same day the Swap became effective. The Series 2005B bonds amortize over a 25 year period ending January 1, 2031 and the Series 2005C bonds amortize over a 20 year period ending January 1, 2026. The swap terminates on December 1, 2015. Under terms of the Bear Stearns swap, the RDA pays the counterparty (Bank of New York) a fixed rate of 4.95% on the Series 2005B Bonds and 5.507% on the Series 2005C 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. Fair Value: As of 06/30/2006 the following mid-market values based upon the market close rate data provided by Bloomberg Financial were: $ 8.9M 100% Libor Swap $548,406 $22.4M 100% Libor Swap $494,170 Basis risk: The floating rate paid to the RDA under the Bear Stearns Swap is the actual 1 month Libor plus .20% on the Series 2005 Bonds. There is no mismatch between the amortization schedule for the Series 2005 Bonds and the Notional Amount Reduction schedule for the Bear Stearns Swap, either in the amount or timing of payments. Early Termination Risk: The RDA has the option to terminate the Bear Stearns Swap upon 30 days notice. The amount due with respect to an early termination shall be determined as though the counterparty is the sole affected party and “Market Quotation and Second Method” shall apply. Either party may terminate only upon an “Event of Default” caused by a “Failure to Pay or Deliver” as specified in Section 5 of the International Swaps and Derivatives Association (ISDA) Master Agreement. Any amounts due to the counterparty upon termination are payable from lease payments and tax increment revenue. Short-term Interfund Receivables and Payables During the course of 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. Inventories Inventory is valued at cost using the first-in, first-out (FIFO) method, which approximates market. Inventory in the General Fund consists of cemetery lots for sale. The cost of governmental fund type inventories are recorded as expenditures when consumed rather than when purchased. Reported inventories are equally offset by a reserve to fund balance which indicates that they do not constitute available spendable resources even though they are a component of current assets. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 54 Prepaid Items Payments made to vendors for services that will benefit periods beyond June 30, 2006 are recorded as prepaid items. Restricted Assets Certain proceeds of fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets because their use is limited by applicable bond covenants and legal requirements. Capital Assets General capital assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds. Capital assets, with an initial, individual cost of more than $5,000 are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. All purchased capital assets are valued at cost or estimated historical cost. Donated capital assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. 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. Capital assets, with the exception of infrastructure, are depreciated. Depreciation of buildings, equipment and vehicles is computed using the straight-line method. Depreciation of all exhaustible capital assets is charged as an expense in the related program. Accumulated depreciation is reported on the Statement of Net Assets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: years Improvements...............10-25 years years years Compensated Absences - Accumulated Unpaid Vacation, Sick Pay, and Compensation Time Accumulated unpaid vacation, sick pay, and other employee benefit amounts are accrued when incurred in proprietary funds (using the accrual basis of accounting). In the governmental funds only the current portion of the liability is reported in the fund as a reservation of fund balance. A liability for unused compensated absences is recorded in the government-wide Statement of Net Assets. Long-term Obligations In the government-wide statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums, discounts, and issuance costs are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the governmental fund financial statements, bond premiums, discounts, and issuance costs are recognized as expenditures in the current period. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. The face amount of debt issued is reported as other financing sources. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 55 Net Assets/Fund Balances The difference between assets and liabilities is reported as net assets on the government-wide and proprietary fund statements, and fund balance on the governmental fund statements. In the governmental fund statements, fund balances are classified as reserved or unreserved. Reserves represent those portions of fund balance that are not available for expenditures or are legally segregated for a specific future use. Unreserved fund balances are available for future appropriation, though some portions may be designated to represent management’s tentative plans for specific future uses. Temporarily restricted net assets are those assets on which the City or an outside party has imposed a restriction use, however the funds are considered to be expendable. Permanently restricted net assets are those assets on which an outside party has imposed a restriction of use, and the funds are not expendable. E. Revenues and Expenditures The following are the City’s significant policies related to recognition and reporting of certain revenues, expenditures, and interfund activity. 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 on a basis. With the July 1, 2000 adoption of GASB Statement No. 33, more fully described below, the City changed its accounting for property taxes. 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 revenue for the assessed amount of those property taxes as of January 1, 2006. Revenue Availability Under the modified accrual basis of accounting, revenues are considered to be “available” when they are collected within the current period or expected to be collected soon enough thereafter to pay liabilities of the current period. Ogden City considers property tax revenues to be available if they are collected within 60 days after the end of the current year. Grants and similar items are recognized as revenue when all eligibility requirements have been met. All other revenues, including sales taxes, are considered to be available if they are collected within 60 days after year-end. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 56 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. F. Interfund Activity and Balances Government-wide Statements In general, eliminations have been made to minimize the double counting of internal activity, including internal service fund type activity. However, interfund services provided and used between different functional categories have not been eliminated in order to avoid distorting the direct costs and program revenues of the applicable functions. Interfund receivables and payables have been eliminated from the Statement of Net Assets, except for the residual amounts due between governmental and business-type activities, which are shown as “internal balances”. Governmental Fund Statements Interfund transactions for goods and services provided and used are reported as revenues and expenditures/expenses in the funds involved. Cash transfers between funds of the City are reported as other financing sources and uses in the governmental fund statements. G. Budgets and Budgetary Accounting Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all the funds. All annual appropriations lapse at the fiscal year end. Project-length financial plans are adopted for all capital projects funds. Summary of City Budget Procedures and Calendar: 1. The City Council can amend the budget to any extent, provided the budgeted expenditures do not exceed budgeted revenues and appropriated fund balance. 2. Budgets are required by the State of Utah for the General, Special Revenue, Debt Service, and Capital Improvement Project Funds. The city also prepares budgets for Enterprise and Internal Service Funds 3. The City’s organizational structure is divided into major administrative areas of management responsibility for an operation or group of related operations within a functional area referred to as “departments.” Within a department may be several related operations. Each of which is referred to as a “division.” The legal level of control (defined as the level at which the governing body must approve any expenditures in excess of appropriations or transfers of appropriated amounts) required by the State of Utah is at the departmental level. Each year the City publishes a separate budget document prepared according to this legal level of control. 4. The City’s budget is a Financial Plan of all estimated revenues and all appropriations for expenditures. Revenues and Expenditures must balance for the funds required by the State Code as indicated in item 2 above. 5. A tentative budget is presented by the Mayor to the City Council by the first regularly scheduled council meeting in May. The tentative budget is reviewed and tentatively adopted by the Council no later than June 22. 6. The tentative budget is a public record and is available for inspection at the County library, City finance department, 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 seven days prior to the public hearing. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 57 8. The public hearing on the tentatively adopted budget is held no later than June 22. Final adjustments are made to the tentative budget by the council after the public hearing. 9. Occasionally the City Council will exercise their option to open the budget to indicate additional financing sources that become available. One each year, as the financial report for the prior year is completed, there is a substantial budget opening. At that time carryover funds in the form of encumbrance reserves, capital projects funding and unallocated federal funds are included in the next year’s budget. 10. The final budget is adopted by ordinance before June 22 and a copy of the budget certified by the Budget Officer is filed with the State Auditor within thirty days of adoption. 11. In connection with budget adoption: a. An annual tax ordinance establishing the property tax rate is adopted before June 22. b. The City Recorder is to certify the property tax rate to the County Auditor before June 22. 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). 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, 2006 were $26,333,124 of which $25,833,124 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 $16,674,619 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. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 58 B. Credit Risk Credit risk is the risk that the counterparty to an investment transaction will not fulfill its obligations. The City’s policy for limiting the credit risk of investments is to comply with the Act. The Act requires investment transactions to be conducted only through qualified depositories, certified dealers, or directly with issuers of the investment securities. Permitted investments include deposits of qualified depositories; repurchase agreements; commercial paper that is classified as “first-tier” by two nationally recognized statistical rating organizations, one of which must be Moody’s Investor Services or Standard & Poors; bankers acceptances; obligations of the U.S. Treasury and U.S. government sponsored enterprises; bonds and notes of political subdivisions of the State of Utah; fixed rate corporate obligations and variable rate securities rate 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 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 operated 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, 2006: C. 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 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 previous table. Cash deposit and Fair Quality Investment Type Value Maturity Ratings Cash on deposit $ 2,448,093 n/a not rated PTIF Investments 3,119,833 n/a not rated Certicates of deposit 5,088,599 n/a not rated Trust accounts 15,676,124 n/a not rated Government agency 992,685 150 days* Aaa Corporate bond 493,785 105 days Aaa Commercial paper 10,527,781 15 days* P-1 Government agency floater 1,946,299 147 days* Aaa Corporate floating note 1,701,197 40 days* Aaa Corporate demand note 134,057 5 days P-1 Money Market Funds 878,815 n/a not rated Total $ 43,007,268 Cash on deposit is equivalent to cash deposited with an insured financial institution. Cash and investments $ 24,933,700 Restricted cash 2,074,226 Restricted investments 15,999,342 Total $ 43,007,268 * Weight-average maturity ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 59 D. 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. 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, 2006. These investments are reported within the General Fund, and Gomer A. Nicholas Park Fund NOTE 3. RECEIVABLES AND PAYABLES A. Interfund Payables and Receivables: Due To/From other funds - Cash overdrafts: Funds which have overdrawn their share of pooled cash show a due to other funds on the balance sheet for the amount of the overdraft. Funds which management selected because of their strong cash position show an offsetting due from other funds on the balance sheet. Funds which had overdrawn their share of pooled cash and the offsetting funds as of June 30, 2006 were as follows: The terms of repayment of the cash overdraft amounts are discussed in footnote 17 – Contingencies. B. Loans To/From Other Funds: Funds which have received loans from other funds as of June 30, 2006 were: Payable Fund Amount General Sewer $ 2,527,168 General Refuse 1,236,753 General Airport 2,095,013 General Golf 1,272,034 Special revenue Internal service (facilities) 1,886,463 Water Medical services 493,227 Capital projects (non-major gov't) Union Station (non-major gov't) 123,292 Capital projects (non-major gov't) Gomer Nicolas (non-major gov't) 7,589 Total $ 9,641,539 Receivable Fund Payable Fund Amount Redevelopment Agency General $ 346,498 General Redevelopment Agency 9,122,738 Sewer Golf Course 266,894 Cemetery Golf Course 513,045 Refuse Redevelopment Agency 1,400,000 Total $ 11,649,175 Receivable Fund ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 60 Repayment terms – Interfund Lending Activity : Redevelopment Agency loan to the General fund : The terms specify that this loan is for affordable housing projects and will be repaid as the associated homes are sold to qualifying homeowners. General fund to the Redevelopment Agency : These loans have been reserved for in the general fund. Terms of the note specify that tax increment revenue from the individual project areas is to be used to repay these loans. Sewer fund loan to Golf Courses fund : Terms of the note indicate that principal and interest payments are to be made from Golf Courses fund excess each year. Cemetery perpetual care fund loan to Golf Courses fund : Terms of the note indicate that principal and interest payments are to be made from Golf Courses fund excess each year. Refuse fund loan to the Redevelopment Agency fund : Terms of the note indicate that principal and interest are to be paid in full on or before June 30, 2011. C. Management Information Services: Upon Recommendation of the Administration, the City Council approved an interest free computer purchase loan program for City employees. $100,000 was set aside in the MIS (Date Processing) 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. $4,000 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. The Management information Systems Internal Service Fund showed a receivable of $69,163 at June 30, 2006 for these PC loans to employees. D. Special Assessments Receivable: 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 below: Redevel- Water and Gov't Wide Total General opment Sewer BDO Nonmajor Statement Transfers Fund Agency Funds Fund Funds of Activities In Transfers out reported in: General Fund $ 100,000 $ 787,452 $ - $ 1,308,813 $ 2,500,700 $ - $ 4,696,965 Debt Service Fund - - - - - - - Redevelopment Agency 150,000 19,161,197 - 1,026,650 - - 20,337,847 Water Fund - - - 456,125 9,000 - 465,125 Sewer Fund - - - - 1,900 - 1,900 BDO Property Management - - 14,593,296 - - 15,204,502 29,797,798 Nonmajor Funds - - - - 17,000 - 17,000 Total Transfers Out $ 250,000 $ 19,948,649 $ 14,593,296 $ 2,791,588 $ 2,528,600 $ 15,204,502 $ 55,316,635 Transfers in reported in: $ 22,264 Delinquent………………………………. 322,300 $ 344,564 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 61 NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2006 was as follows: Depreciation expense of governmental activities was charged to functions as follows: Beginning Ending Balance Additions Deletions Balance Governmental Activities: Capital assets being depreciated: Buildings and Improvements (restated) $ 97,277,101 $ 2,793,779 $ - $ 100,070,880 Equipment (restated) 22,353,332 1,741,259 (1,303,006) 22,791,585 Total 117,984,891 4,535,038 (1,303,006) 122,862,465 Less Accumulated Depreciation for: Building and Improvements (restated) (45,404,828) (4,253,872) - (49,658,700) Equipment (restated) (17,552,184) (1,900,954) 1,029,746 (18,423,392) Total (62,623,183) (6,154,826) 1,029,746 (68,082,092) Capital assets being depreciated, net 55,361,708 (1,619,788) (273,260) 54,780,373 Land (restated) 19,474,551 - - 19,474,551 Construction in Progress - 6,087,017 - 6,087,017 Infrastructure 55,776,100 15,204,502 - 70,980,602 Governmental Activity Capital Assets, Net $ 130,612,359 $ 19,671,731 $ (273,260) $ 151,322,543 Business-type Activities: Capital assets being depreciated: Building and Improvements $ 196,342,909 $ 20,308,576 $ (32,689,444) $ 183,962,041 Equipment 309,850 10,415 - 320,265 Total 196,652,759 20,318,991 (32,689,444) 184,282,306 Less Accumulated Depreciation for: Buildings and Improvements (45,447,623) (5,948,338) 5,520,566 (45,875,395) Equipment (164,012) (21,792) - (185,804) Total (45,611,635) (5,970,130) 5,520,566 (46,061,199) Capital assets being depreciated, net 151,041,124 14,348,861 (27,168,878) 138,221,107 Land (restated) 37,361,390 - (559,150) 36,802,240 Construction in Progress 676,568 - (676,568) - Business-type Activities Capital Assets, Net $ 189,550,041 $ 14,348,861 $ (28,404,596) $ 175,023,347 Capital Assets General Administration………………………………… $ 1,019,594 Public 537,700 Transportation……………………………………………….. 773,925 Environmental Protection…………………………… 19,771 Leisure Opportunities……………………………………. 963,508 Community Development……………………………. 965,742 Depreciation on capital assets of the City's internal service funds is charged to the various functions based on their usage of assets 1,874,586 $ 6,154,826 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 62 The City has an active construction projects as of June 30, 2006. At year-end the City’s commitments with contractors are as follows: At the end of 2006, the determination was made that infrastructure assets should no longer be carried in the Business Depot Ogden enterprise fund. The determination resulted in a transfer of infrastructure assets to the Water and Sewer funds and to the General infrastructure of the City. A total of $29,797,798 in infrastructure was transferred out of BDO. Transfers to Water, Sewer and General Infrastructure were $6,071,454, $8,521,842 and $15,204,502, respectively. During the year, the City recognized a net insurance recovery on the fire loss of the Shupe-Williams building of $2,071,591. The recovery was recorded as miscellaneous non-operating income in the City refuse enterprise fund. The refuse fund holds title to the property and held the title at the time of the loss of the structure. NOTE 6. ASSETS HELD-FOR-RESALE As part of the redevelopment of the Central Business District and the Ogden River District, the City has purchased a number of real properties. As of June 30, 2006, the City held $2,662,171 in property for resale to purchasers meeting the criteria for the redevelopment district. NOTE 7. LEASE COMMITMENTS The City has entered into non-cancelable leases for equipment. Leases that in substance are purchases are reported as capital lease obligations. In the government-wide and proprietary fund statements, assets and liabilities resulting from capital leases are recorded at the inception of the lease at either the lower of fair value or the present value of the future minimum lease payments. The principal portion of lease payments reduces the liability, and the interest portion is expensed. In governmental fund statements, both the principal and interest portions of capital lease payments are recorded as expenditures of the applicable governmental function. The City entered into a new lease obligation in the amount of $355,000 during the year. These lease obligations are shown in the Fleet and Facilities and Management Information Systems funds which are both internal service funds Lease Commitment Table: Expended Remaining Project Commitment @ 6/30/06 Commitment Recreation Center (Mall) $ 15,000,000 $ 6,087,017 $ 8,912,983 Governmental Business-type Activities Activities Total $ 310,615 $ - $ 310,615 301,555 - 301,555 228,553 - 228,553 228,553 - 228,553 65,344 - 65,344 - - - Total 1,134,621 - 1,134,621 Less amounts representing interest 101,596 - 101,596 Present value of future minimum lease payments $ 1,033,025 $ - $ 1,033,025 2009 2010 2011 thereafter Year 2007 2008 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 63 NOTE 8. LONG-TERM LIABILITIES A. Changes in Long-term Liabilities Changes in long-term liabilities for the year ended June 30, 2006 were as follows: The compensated absence liability of governmental activities is liquidated in the General Fund, Enterprise Funds, or Internal Service Funds where the related employing department operates. Additional information related to these long-term liabilities is found in the following tables including debt service requirements to maturity and information related to the City’s defeased bonds. B. General Obligation Bonds During 2006, the City issued the 2006 Series Sales Tax Revenue Bonds. General Obligation Bonds Payable at June 30, 2006 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2006 1996 Series Bonds 12/15/96 06/15/16 3.00% to 4.85% $ 23,000,000 $ 1,520,000 1998 Refunding Bonds 11/03/98 12/15/15 3.35% to 4.35% 9,375,000 8,755,000 2003 Refunding Bonds 12/15/03 12/15/11 2.50% to 3.15% 8,000,000 7,750,000 2006 Sales Tax Revenue Bonds 03/01/06 03/01/26 5.10% to 6.00% 1,995,000 1,995,000 $ 20,020,000 General Obligation Bonds Payable Total General Obligation Bonds Outstanding Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General Obligation Bonds $ 19,475,000 $ 1,995,000 $ 1,450,000 $ 20,020,000 $ 1,565,000 Lease Revenue Bonds 3,475,000 2,865,000 3,000,000 3,340,000 335,000 Tax Increment Revenue Bonds 12,875,000 38,580,000 1,150,000 50,305,000 1,335,000 Special Assessment 334,000 - 77,000 257,000 81,000 RDA Notes Payable 2,100,000 - 2,100,000 - - Section 108 1,270,000 - 110,000 1,160,000 120,000 Lines-of-credit - 1,693,305 - 1,693,305 1,693,305 Capital Leases 820,186 355,000 142,161 1,033,025 269,536 Compensated Absences 2,198,151 - 28,656 2,169,495 - Add: Bond Premium 54,191 - 9,032 45,159 9,032 less: Bond Discounts - (336,300) 16,815 (319,485) 16,815 42,601,528 45,152,005 8,083,664 79,703,499 5,424,688 Compensated Absences, current portion 942,065 - 13,340 928,725 928,725 Total Governmental Long-term Liabilities $ 43,543,593 $ 45,152,005 $ 8,097,004 $ 80,632,224 $ 6,353,413 Business-type Activities: Revenue Bonds and Note $ 16,013,163 $ - $ 791,927 $ 15,221,236 $ 4,903,520 Compensated Absences 554,408 24,803 - 579,211 - 16,567,571 24,803 791,927 15,800,447 4,903,520 Compensated Absences, current portion 237,603 10,631 - 248,234 248,234 Total Business-type Long-term Liabilities $ 16,805,174 $ 35,434 $ 791,927 $ 16,048,681 $ 5,151,754 Long-term Liabilities ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 64 B. General Obligation Bonds, Continued C. Lease Revenue Bonds During the fiscal year ending June 30, 2006, the Municipal Building Authority issued the Series 2006 Refunding bonds to partially refund the Series 2000A Bonds. Lease Revenue Bonds Payable at June 30, 2006 consists of the following: Year Principal Interest Principal Interest Principal Interest 2007 $ 1,290,000 $ 516,590 $ 100,000 $ 373,180 $ 130,000 $ 220,363 2008 230,000 76,503 105,000 369,130 1,250,000 203,113 2009 105,000 364,904 1,525,000 166,519 2010 - - 105,000 360,650 1,565,000 124,031 2011 - - 110,000 356,242 1,615,000 77,479 2012-2016 - - 8,230,000 1,070,880 1,665,000 26,223 2017 - - - - - - Total $ 1,520,000 $ 593,093 $ 8,755,000 $ 2,894,986 $ 7,750,000 $ 817,728 Year Principal Interest Principal Interest 2007 $ 45,000 $ 121,348 $ 1,565,000 $ 1,231,481 2008 60,000 100,575 1,645,000 749,321 2009 65,000 96,975 1,695,000 628,398 2010 70,000 93,075 1,740,000 577,756 2011 75,000 89,505 1,800,000 523,226 2012-2016 525,000 381,605 10,420,000 1,478,708 2017-2026 1,155,000 384,160 1,155,000 384,160 Total $ 1,995,000 $ 1,267,243 $ 20,020,000 $ 5,573,050 General Obligation Bonds-Debt Service Requirements to Maturity 2006 Sales Tax 1996 Series 1998 Refunding 2003 Refunding Total Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2006 Series 1997 (Stadium) Bonds 03/01/97 01/01/07 3.75% to 7.00% $ 900,000 $ 195,000 Series 2000A Bonds (refunded) 03/01/00 06/15/21 4.90% to 6.00% 3,680,000 280,000 Series 2006 refunding 04/04/06 06/15/21 4.35% 2,865,000 2,865,000 $ 3,340,000 Lease Revenue Bonds Payable Total Lease Revenue Bonds Payable ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 65 C. Lease Revenue Bonds, Continued Year Principal Interest Principal Interest Principal Interest 2007 $ 195,000 $ 10,140 $ 135,000 $ 163,442 $ 5,000 $ 288,873 2008 - - 145,000 157,680 15,000 278,873 2009 - - - - 170,000 123,873 2010 - - - - 175,000 118,873 2011 - - - - 185,000 108,873 2012-2016 - - 1,035,000 434,365 2017-2021 - - - - 1,280,000 175,492 Total $ 195,000 $ 10,140 $ 280,000 $ 321,122 $ 2,865,000 $ 1,529,222 Year Principal Interest 2007 $ 335,000 $ 462,455 2008 160,000 436,553 2009 170,000 123,873 2010 175,000 118,873 2011 185,000 108,873 2012-2016 1,035,000 434,365 2017-2021 1,280,000 175,492 Total $ 2,060,000 $ 1,684,992 Total Lease Revenue Bonds-Debt Service Requirements to Maturity Series 1997 Series 2000A Series 2006 refunding D. Tax Increment Revenue Bonds During 2006, the Redevelopment Agency issued tax increment revenue bonds for work in the Mall District related to the Recreation Center development. Tax Increment Revenue Bonds Payable at June 30, 2006 consists of the following: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2006 Washington Blvd Series 2001 C 11/30/01 12/30/06 3.75% $ 1,425,000 $ 320,000 25th Street (Crown Plaza) 09/18/01 02/01/18 variable 1,610,000 1,380,000 BDO Tax Increment Series 2001D 12/28/01 12/30/16 4.58% 6,670,000 6,340,000 BDO Tax Increment Series 2002A 01/10/02 12/30/05 3.78% 2,000,000 - BDO Tax Increment Series 2002B 01/10/02 12/30/16 4.58% 3,330,000 3,225,000 Wall Ave Tax Increment 08/29/02 02/01/19 variable 675,000 675,000 2005 Series A - Recreation Center 11/01/05 04/01/25 variable 7,280,000 7,065,000 2005 Series B - Recreation Center 11/01/05 04/01/25 variable / swap 8,900,000 8,900,000 2005 Series C - Recreation Center 11/29/05 01/01/26 variable / swap 22,400,000 22,400,000 $ 50,305,000 Tax Increment Bonds Payable Total Tax Increment Revenue Bonds Payable ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 66 D. Tax Increment Revenue Bonds, Continued Swap payments and associated debt Using rates as of June 30, 2006, debt service requirements of the Adjustable Rate 2005 Series B, 2005 Series C-1 and 2005 Series C-2 contain provisions for net swap payments. These payments assume current interest rates remain the same. As rates vary, variable-rate bond interest payments and net swap payments will vary. For the year ended June 30, 2006, the net swap payments on the 2005 Series B and 2005 Series C Bonds were $8,513 and $64,748.44, respectively. These payments represent the total paid for the first and second quarters of 2006 and are in addition to the interest expense represented in the chart above. Year Principal Interest Principal Interest Principal Interest 2007 $ 320,000 $ 6,000 $ 70,000 $ 41,400 $ 460,000 $ 290,372 2008 - - 80,000 39,300 480,000 269,304 2009 - - 85,000 36,900 500,000 247,320 2010 - - 90,000 34,350 520,000 224,420 2011 - - 100,000 31,650 550,000 200,604 2012-2016 - - 625,000 108,750 3,120,000 603,644 2017-2021 330,000 15,000 710,000 32,518 thereafter - - - - - - Total $ 320,000 $ 6,000 $ 1,380,000 $ 307,350 $ 6,340,000 $ 1,868,182 Year Principal Interest Principal Interest Principal Interest 2007 $ 230,000 $ 147,705 $ 30,000 $ 9,788 $ 225,000 $ 297,975 2008 240,000 137,171 35,000 9,353 245,000 288,187 2009 255,000 126,179 35,000 8,845 275,000 277,530 2010 265,000 114,500 40,000 7,758 455,000 272,581 2011 275,000 102,363 40,000 7,757 475,000 255,127 2012-2016 1,595,000 309,837 275,000 28,636 2,720,000 947,646 2017-2021 365,000 16,717 220,000 6,597 1,360,000 479,586 thereafter - - - - 1,310,000 139,634 Total $ 3,225,000 $ 954,472 $ 675,000 $ 78,734 $ 7,065,000 $ 2,958,266 Year Principal Interest Principal Interest Principal Interest 2007 $ - $ 387,148 $ - $ 1,233,568 $ 1,335,000 $ 2,413,956 2008 180,000 383,235 640,000 1,216,083 1,900,000 2,342,633 2009 190,000 375,187 685,000 1,179,668 2,025,000 2,251,629 2010 200,000 366,705 730,000 1,140,637 2,300,000 2,160,951 2011 215,000 357,733 775,000 1,099,266 2,430,000 2,054,500 2012-2016 1,270,000 1,633,424 4,665,000 4,778,216 14,270,000 8,410,153 2017-2021 1,675,000 1,315,601 6,325,000 3,277,282 10,985,000 5,143,301 thereafter 5,170,000 1,327,082 8,580,000 1,240,725 15,060,000 2,707,441 Total $ 8,900,000 $ 6,146,115 $ 22,400,000 $ 15,165,445 $ 50,305,000 $ 27,484,564 Recreation Center 2005 Series B 2005 Series A Total 2005 Series C Recreation Center Recreation Center Wall Ave Tax Increment BDO Tax Increment Series 2002B Tax Increment Revenue Bonds-Debt Service Requirements to Maturity Series 2001C (Crown Plaza) Series 2001D Washington Blvd 25th Street BDO Tax Increment ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 67 E. Special Assessment Bonds The City did not issue additional Special Assessment Bonds during the fiscal year ending June 30, 2006. Special Assessment Bonds payable at year end consists of the following: F. Section 108 The Section 108 loan was created to refurbish the Eccles Building located in the heart of the City’s downtown district. The loan is scheduled to be retired in August of 2012. G. Enterprise Fund Revenue Bonds The individual balances of Enterprise Fund Revenue Bonds and notes are listed as follows: Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2006 Series 1999 Refunding Bond (water and sewer) 04/01/99 06/15/24 5.00% to 6.20% $ 8,160,000 $ 6,665,000 Series 2001 Bonds (solid waste) 08/29/01 06/15/16 4.90% 3,300,000 2,640,000 Series 2003 Refunding Bonds 02/24/03 03/03/10 4.20% 2,000,000 1,213,494 Note Payable (BDO) 11/09/04 05/01/07 Prime or 4.00% 4,080,000 4,080,000 Note Payable (BDO) 04/22/05 04/22/11 None Contracted 726,530 622,742 $ 15,221,236 Enterprise Fund Revenue and Note Total Bonds and Note Outstanding Issue Maturity Interest Original Balance Date Date Rate Amount June 30, 2006 District 190 06/30/99 07/01/09 4.80% to 5.40% $ 233,000 $ 83,000 District 191 06/30/99 07/01/09 4.80% to 5.40% 491,000 174,000 $ 257,000 Special Assessment Bonds Payable Total Special Assessment Bonds Payable Year Principal Interest Principal Interest Principal Interest 2007 $ 26,000 $ 4,455 $ 55,000 $ 14,720 $ 81,000 $ 19,175 2008 28,000 3,064 58,000 12,095 86,000 15,159 2009 29,000 1,566 61,000 9,339 90,000 10,905 Total $ 83,000 $ 9,085 $ 174,000 $ 36,154 $ 257,000 $ 45,239 Special Assessment Bonds-Debt Service Requirements to Maturity District 190 District 191 Total ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 68 G. Enterprise Fund Revenue Bonds, Continued Year Principal Interest Principal Interest Principal Interest 2007 $ 250,000 $ 314,358 $ 185,000 $ 129,360 $ 284,729 $ 48,008 2008 260,000 303,858 195,000 120,295 296,814 35,924 2009 270,000 292,808 205,000 110,740 309,411 23,327 2010 280,000 281,333 215,000 100,695 322,542 10,195 2011 295,000 269,152 225,000 90,160 2012-2016 1,675,000 1,134,530 1,615,000 274,155 - - 2017-2021 2,105,000 701,012 - - - - 2022-2026 1,530,000 155,500 - - - - Total $ 6,665,000 $ 3,452,551 $ 2,640,000 $ 825,405 $ 1,213,496 $ 117,454 Year Principal Interest Principal Interest 2006 $ 4,183,790 $ 136,000 $ 4,903,519 $ 627,726 2007 103,790 - 855,604 460,077 2008 103,790 - 888,201 426,875 2009 103,790 - 921,332 392,223 2010 103,790 - 623,790 359,312 2011-2015 103,790 - 3,393,790 1,408,685 2016-2020 - - 2,105,000 701,012 2021-2024 - - 1,530,000 155,500 Total $ 4,702,740 $ 136,000 $ 15,221,236 $ 4,531,410 Total Series 1999 Series 2001 Series 2003 Notes Payable (BDO) H. Defeased Bonds In prior years and in the current year, the City defeased certain general obligation and lease revenue bonds by placing the proceeds of new bonds and other monies into irrevocable trusts to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Statement of Net Assets. At June 30, 2006, defeased outstanding bonds totaled $15,770,000. NOTE 9. LINES-OF-CREDIT During the year the City entered into a line-of-credit agreement with a financial institution to help fund the activities of the Ogden River Project Tax Increment District. The line is for $3,000,000 and carried a balance of $1,388,930 as of June 30, 2006. The line-of-credit has a maturity date of June 8, 2011. During the year the City entered into a line-of-credit agreement with Fannie Mae to help fund activities of the Community Development department and specifically the Housing and Urban Development program known as Asset Control Area. The line-of-credit is for $1,000,000 and carried a balance of $304,375. The line-of-credit has a maturity date of June 24, 2008. NOTE 10. FUND BALANCES A. Reserved Ogden City’s reserved fund balances represent amounts that are legally restricted for specific purposes by external contracts, bond agreements, or city ordinances. Fund balances are also reserved for encumbrances, inventories, and interfund loans as these amounts are not available for future appropriation or expenditure. The purposes for the reservations are noted on the face of the statements. ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 69 B. Designated The City has designated $84,109 of unreserved fund balance in certain funds for specific programs or projects. C. Deficits At June 30, 2006, Union Station and Golf Courses had deficit fund balances/net assets of $123,292 and $639,664 respectively. The City expects these deficits to be eliminated through increased revenue or transfers in future years. NOTE 11. UNEARNED REVENUE Unearned revenues are resource inflows that do not yet meet the criteria for revenue recognition. Deferred amounts are always reported as unearned revenue. In governmental funds, earned amounts also are reported as unearned revenue until they are available to liquidate liabilities of the current period. Ogden City has unearned revenues as of June 30, 2006 as follows: NOTE 12. RETIREMENT PLANS A. Pension Plans Ogden City contributes to the Local Government Contributory Retirement System, the Local Government Noncontributory Retirement Systems (collectively, the Systems), all of which are cost-sharing multiple-employer defined benefit pension plans. The 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-[PHONE REDACTED]; 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. General Fund $ 18,103,793 Special Revenue Fund (Redevelopment Agency) 5,917,806 Nonmajor Governmental Funds 256,376 Nonmajor Enterprise Funds 572,484 Total $ 24,850,459 Taxes receivable $ 14,406,216 Grant loans receivable 9,098,957 Prepaid airport lease 572,484 Deferred by State of Utah Legistlation 404,045 Special assessments receivable 256,376 Unspent grant advances 61,429 Prepaid interments 44,650 Miscellaneous 6,302 Total $ 24,850,459 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 70 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. 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. NOTE 13. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City purchases commercial insurance through the Utah Risk Management Mutual Association to mitigate the costs of these risks. The City’s responsibility extends only to payment of premiums, and deductibles are $15,000 for general liability and property claims and $2,500 for auto physical damage. The amount of settlements has not exceeded insurance coverage for the past three years. Public Safety/ Contributory Noncontributory Fire Fighter System System System Highest Average Highest 5 years Highest 3 years Highest 3 years Years of Service and Age of Eligibility……………… 30 years any age 30 years any age 20 years any age 20 years any age 25 years any age 10 years age 60 10 years any age 20 years age 60 4 years age 65 4 years any age 10 years age 62 4 years age 65 Benefit Percent per Year of Service………………… 1.10% to June 1967 2.00% per year 2.50% per year up to 20 years 1.25% to June 1975 2.00% 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 4.00% up to 2.50% 2006 Rates as Percent of Covered Payroll: 7.08% 11.09% 24.30% 6.00% - 7.083% Actual City Contributions Made, by year: 193,136 $ 1,211,046 $ 1,608,275 $ 186,190 1,096,567 1,524,131 185,009 1,024,102 1,438,456 Requires full actuarial reductions Local Government All or part may be paid by the City for the Employee ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 71 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 2004, 2005 and 2006 were as follows: NOTE 14. LITIGATION AND CONTINGENCIES The City records liabilities resulting from claims and legal actions when they become fixed or determinable in amount. The City is currently the defendant in several pending lawsuits. Legal counsel is of the opinion that potential claims against the City resulting from such litigation not covered by insurance do not pose a threat of significant liability to the City. The City has received several federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to grantor agencies for expenditures disallowed under the terms of the grant. Based upon prior experience, the City believes such disallowances, if any, will be immaterial. NOTE 15. REDEVELOPMENT AGENCY The Ogden Redevelopment Agency had the following project areas which collected tax increment monies in the Fiscal Year ended June 30, 2006: Beginning of Changes Claim End of Year Year Liability in Estimates Payments Liability 2004 $ 361,804 $ 1,397,557 $ 998,618 $ 760,743 2005 760,743 788,861 990,193 559,411 2006 559,411 1,490,108 681,321 1,368,198 Risk Management Fund - Uninsured Claims Liability Fairmont $ 713,710 Central Business District Mall……………. 59,487 South Central Business District…………. 21,908 Lincoln Redevelopment……………………….. 249,564 Washington 312,203 Lester 53,201 Golden 702 Park 43,325 25th 541,326 St. Benedicts 182,611 Union 7,327 12th 138,616 2,240,413 American Can 309,064 Wall Ave 150,252 West 12th 854,178 Hinckley 379,162 Hinckley 87,594 ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 72 Outstanding principal amounts on bonded debt and other debt for the project areas at June 30, 2006: NOTE 16. LEASE AGREEMENTS The City, as landlord, has entered into a master lease agreement with a property management and development company (the Company). Under the terms of the agreement, the Company has leased substantially all of the property known as Business Depot Ogden. 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. 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. NOTE 17. CONTINGENCIES As shown in the accompanying financial statements, the City incurred a deficiency of expenditures over revenues of $1,163,181 for the year in the Governmental Funds. These deficits are the results of past and present activity related to the redevelopment of the City. Management considers these deficits as an investment in the City’s needed revitalization development. Management also feels the increased property values generated by the revitalization will increase future tax increment payments. Management also believes these tax increment payments and the related tax increment financing should eliminate this deficit over the next few years. The City will likewise benefit from additional taxes and other revenue sources from this investment. As of June 30, 2006, it was determined that negative cash balances being carried by the Airport and Golf Courses funds may not be recoverable under the current operating arrangement. Negative cash balances in these funds totaled $2,095,013 and $1,272,034, respectively. At the time of issuance of the CAFR, the City was in the process of drafting an ordinance in which these amounts would be converted to notes with defined interest and payment terms. NOTE 18. COMPLIANCE WITH PURCHASE CONTRACT In a letter dated, July 19, 2006, the Acting United States Attorney, District of Utah, U.S. Department of Justice, confirmed that the matter involving the alleged misappropriation of funds from Business Depot Ogden to the City is resolved and the investigation is closed. The parties were able to arrive at a settlement agreement once the loan was repaid by the City in December, 2005. NOTE 19. RECLASSIFICATION Certain amounts in the prior year Comprehensive Annual Financial Report were reclassified to be comparable with the 2006 presentation. Bonded Debt Other Loans Central Business District………………………. $ 38,365,000 $ - Washington 545,000 - 25th 1,445,000 - 10,210,000 - Wall 675,000 - ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 73 NOTE 20. RESTATEMENT OF NET ASSETS AND FUND BALANCES Certain amounts reported in the prior period (June 30, 2005) were improperly reported causing a restatement of beginning fund balances and net assets in the current period. These errors occurred in the following areas: The follow details identify the specific causes for the restatement of beginning fund balances and net assets: General fund: In addition to the amounts above, there was a reclassification of amounts accrued in the general fund for the current portion of compensated absences from accrued liabilities to reserved fund balance in the amount of $884,964. The amount remains classified as an accrued liability on the government-wide basis. Capital projects: A proposed audit adjustment was included in the general ledger, however it was not reported in the 2005 CAFR. Internal Service – Fleet: It was determined during the year that the assets schedule maintained by the Fleet department did not coincide with the schedule maintained by the accounting department resulting in adjustments. Internal Service – MIS: It was determined that a lease of computer equipment was not reported in the prior year. Governmental Net Assets: It was determined that an amount capitalized as land in the prior year was recorded incorrectly. In addition, adjustments to the Governmental net assets in connection with the reconciliation of the Internal Service – fleet fund caused an adjustment. Business Depot Ogden: Accumulated depreciation reported in the fund in the prior year did not tie to the depreciation schedule. Sewer Fund: Land as reported in the prior year CAFR did not tie to the detail land records. NOTE 21. RECLASSIFICATION OF FUNDS FOR REPORTING During 2006, the determination was made that to reclassify certain funds associated with the individual tax increment districts from presentation in the debt service fund to the special revenue fund. The determination was made based on a review of the activities that occurred in the funds during 2006. In prior years, the activities in the funds were primarily debt service in nature. During 2006, debt service continued to be a significant portion of the expenditures in the funds. However, material expenditures for activities other than debt service would not allow the presentation to continue as in prior years. The net effect of the reclassification on fund balance was a net decrease in the debt service fund and a net increase in the special revenue fund of $2,466,732. Capital projects (119,661) $ Business Depot Ogden (962,967) $ Internal Service - Fleet 476,939 Sewer (470,959) Internal Service - MIS (8,733) Governmental Net Assets (4,570,152) (4,221,607) $ (1,433,926) $ Governmental Funds / Governmental-Type Activities Enterprise Funds / Business-Type Activities ---PAGE BREAK--- OGDEN CITY, UTAH NOTES TO THE FINANCIAL STATEMENTS Year Ended June 30, 2006 74 NOTE 22. SUBSEQUENT EVENTS In August and September 2006, the City transferred $675,000 to a title company escrow account with the intent of purchasing additional properties in the Ogden River Project Tax Increment District. This transaction added the stated amount to the line-of-credit and assets held-for-sale balances in the statement of net assets. Under the contract between the City and the United States Army, regarding the reconveyance of the property known as Business Depot Ogden, the seven-year reinvestment period, as defined in the United States Army reconveyance contract ended September 30, 2006. ---PAGE BREAK--- Required Supplementary Information ---PAGE BREAK--- ---PAGE BREAK--- 77 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- Page 1 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes Property $ 10,337,750 $ 10,137,750 $ 10,288,430 $ 150,680 Sales 12,392,000 12,392,000 13,452,590 1,060,590 Franchise 6,100,000 6,100,000 7,140,773 1,040,773 Other 3,227,400 3,227,400 3,289,875 62,475 Total Taxes 32,057,150 31,857,150 34,171,668 2,314,518 Licenses and permits 2,075,000 2,075,000 2,100,508 25,508 Intergovernmental 7,184,425 10,687,205 7,707,958 (2,979,247) Charges for services 6,010,825 5,946,617 6,028,844 82,227 Fines and forfeitures 1,015,000 1,015,000 960,148 (54,852) Interest 500,000 500,000 617,056 117,056 Miscellaneous 935,750 935,750 1,053,214 117,464 Donations 5,000 85,800 80,806 (4,994) Sale of property 15,000 15,000 4,322 (10,678) Total revenues 49,798,150 53,117,522 52,724,524 (392,998) EXPENDITURES: Mayor 434,375 445,866 433,797 12,069 City council 618,550 657,496 625,647 31,849 Management services Administration 213,500 237,075 237,195 (120) Human resources 367,100 353,474 346,131 7,343 Comptroller 549,350 576,248 541,096 35,152 Fiscal operations 458,725 471,621 467,943 3,678 Purchasing 143,600 149,410 148,063 1,347 Recorder 454,800 484,248 475,513 8,735 Justice Court - 190,725 77,172 113,553 Total Management services 2,187,075 2,462,801 2,293,113 169,688 Circuit court 35,800 35,800 34,020 1,780 Corporate counsel 924,500 924,500 896,177 28,323 Non departmental 2,876,450 2,950,325 2,798,156 152,169 Police Administration 220,550 1,253,300 1,228,410 24,890 Uniform 7,558,675 7,291,775 7,061,180 230,595 Support services 5,602,275 5,877,694 5,978,066 (100,372) Total Police 13,381,500 14,422,769 14,267,656 155,113 Fire Administration 397,700 614,600 429,318 185,282 Prevention 349,475 363,886 409,862 (45,976) Operations 5,883,575 5,886,156 5,487,154 399,002 Dispatch - - - - Total Fire 6,630,750 6,864,642 6,326,334 538,308 Public services Administration 227,675 217,425 215,052 2,373 Streets 2,899,675 3,775,759 3,623,796 151,963 OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED JUNE 30, 2006 78 ---PAGE BREAK--- Page 2 of 2 Budgetary Amounts Variance with Original Final Actual Final Budget Public services (cont.) Arts, culture & events $ 535,050 $ 425,395 $ 363,571 $ 61,824 Animal services 680,650 688,620 702,826 (14,206) Parks and cemetery 3,092,800 3,657,378 3,491,606 165,772 Recreation 1,554,300 1,574,067 1,602,548 (28,481) Total Public services 8,990,150 10,338,644 9,999,399 339,245 Community & economic development Administration 967,150 1,022,690 1,007,902 14,788 Property development 9,325,275 13,262,048 9,988,265 3,273,783 Planning 329,550 329,550 282,625 46,925 Inspections 8,625 241,596 220,602 20,994 Total Community and economic development 10,630,600 14,855,884 11,499,394 3,356,490 Debt service Principal 1,450,000 1,450,000 1,450,000 - Interest 1,173,975 1,173,975 715,809 458,166 Fees and assessments - - 39,950 (39,950) Capital outlay - - - - Total expenditures 49,333,725 56,582,702 51,379,452 4,785,034 Excess (deficiency) of revenues over expenditures 464,425 (3,465,180) 1,345,072 (2,120,108) OTHER FINANCING SOURCES (USES): Bond proceeds - 3,995,000 1,995,000 (2,000,000) Transfers in 232,000 332,000 250,000 82,000 Transfers out (696,425) (2,600,700) (4,696,965) 2,096,265 Total other financing sources/(uses) (464,425) 1,726,300 (2,451,965) 178,265 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - (1,738,880) (1,106,893) 631,987 Fund balances at beginning of year 18,201,739 18,201,739 18,201,739 - Fund balances at end of year $ 18,201,739 $ 16,462,859 $ 17,094,846 $ 631,987 79 ---PAGE BREAK--- Variance with Final Budget Favorable Original Final Actual (Unfavorable) REVENUES: Taxes and special assessments $ 7,920,475 $ 8,230,175 $ 6,344,648 $ (1,885,527) Charges for services 5,000 5,000 1,200 (3,800) Miscellaneous income 666,175 1,090,875 705,491 (385,384) Interest income 67,700 67,700 542,992 475,292 Sale of property - 548,737 564,981 16,244 Total revenues 8,659,350 9,942,487 8,159,312 (1,783,175) EXPENDITURES: Current: City Council 10,000 30,000 8,630 21,370 Community & Economic Development 4,002,175 39,431,003 9,698,399 29,732,604 Debt service: Debt service principal 2,420,625 16,797,960 3,250,000 13,547,960 Debt service interest 815,500 2,417,006 2,872,936 (455,930) Total expenditures 7,248,300 58,675,969 15,829,965 42,846,004 Excess (deficiency) of revenues over expenditures 1,411,050 (48,733,482) (7,670,653) 41,062,829 OTHER FINANCING SOURCES (USES): Bond proceeds - 49,080,000 38,580,000 (10,500,000) Bond discount - - (336,300) (336,300) Operating transfers in 961,425 13,238,760 19,948,649 6,709,889 Operating transfers out (2,372,475) (14,944,810) (20,337,847) (5,393,037) Total other financing sources (uses) (1,411,050) 47,373,950 37,854,502 (9,519,448) Excess (deficiency) of revenues amd other financing sources over (under) expenditures and other financing uses - (1,359,532) 30,183,849 31,543,381 Fund balance at beginning of year (21,617,007) (21,617,007) (21,617,007) Fund balance at end of year $ (21,617,007) $ (22,976,539) $ 8,566,842 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION Budgets are adopted on a basis consistent with Generally Accepted Accounting Principals. Annual appropriated budgets are for all the funds. All annual appropriations lapse at the fiscal year end. Project-length financial plans are adopted for all capital projects funds. Budgeted Amounts OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE OGDEN REDEVELOPMENT AGENCY - SPECIAL REVENUE FUND Year Ended June 30, 2006 80 ---PAGE BREAK--- 81 OGDEN CITY, UTAH Year Ended June 30, 2006 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 303 centerline miles of City roads. The assessment is based on the Remaining Service Life (RSL). Our goal is to keep the overall RSL at or above ten years. This is the point at which pavement maintenance is able to keep up with deterioration of pavement and much more expensive street reconstruction projects are not needed. The cost to maintain a pavement with preventative maintenance treatments is about one-third the cost of rehabilitation, or one-sixth the cost of reconstruction. Category RSL Description Very Good 19+ New or nearly new pavements that are mainly free of distress. Good 13-18 Pavements exhibit few, if any, visible signs of distress. Fair 10-12 Surface defects in this category such as cracking, rutting, and raveling. Poor 4-9 These roadways have deteriorated to such an extent that they are in need of resurfacing. Very Poor 0-3 Pavements in this category are severely deteriorated. Condition Level The City's established condition level is to maintain 50 percent of its roads with a rating of “fair” or better and no more than 15 percent of roads with a rating of “very poor”. All streets are surveyed annually to determine their condition. This data is used to determine changes in pavement condition and to prioritize the type and quantity of pavement maintenance work that is to be accomplished during the coming summer. The City performs complete assessments on a calendar year basis. The following table reports the result of pavements with ratings of “fair” or better or “very poor for the last five years: Rating 2006 2005 2004 2003 2002 Fair or Better 55.2% 54.9% 55.0% 55.1% 52.3% Very Poor 2.3% 2.4% 2.0% 1.1% 5.2% ---PAGE BREAK--- 82 OGDEN CITY, UTAH Year Ended June 30, 2006 Required Supplementary Information Bridges Utah Department of Transportation (UDOT), Bridge Operations Section, maintains the inventory of all bridge structures in Ogden City. Each spring, UDOT staff members inspect the bridges in Ogden City. A report is submitted to Ogden City indicating what maintenance and repair actions are required. Three categories of condition are established as follows: Category Description Good Preventive maintenance requirements include repair leaking deck joints, apply deck overlays and seals, place concrete sealers to splash zones, paint steel surfaces, and minor beam repairs. Fair Corrective repairs include deck, beam, and substructure repairs, fixing settled approaches, and repairing collision damage. Poor Major rehabilitation and replace includes deck, beam, or substructure replacements or replacement of the entire bridge. Condition Level In response to the annual UDOT bridge inspection report, the recommended actions are either accomplished by Ogden City Public Works Operations Division Staff or by contract. Based on the cost of the resultant contract estimates, projects will be funded using road fund money already in our budget for contract work or materials purchased for in-house staff to accomplish the work. If necessary, a CIP project will be created to accomplish any major repair or alteration work. The City's established condition level is to maintain 50 percent of its bridges with a rating of “good” and no more than 25 percent of bridges with a rating of “poor”. Rating 2006 2005 2004 2003 2002 Good 56% 56% 51 % 57% 50% Poor 7% 7% 7 % 7% 7% 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 2006 $5,232,744 $4,712,018 2005 3,978,556 3,522,452 2004 4,204,103 3,672,784 2003 9,993,688 3,750,530 2002 5,623,411 4,389,253 ---PAGE BREAK--- Supplementary Information ---PAGE BREAK--- ---PAGE BREAK--- 85 Nonmajor Governmental Funds Capital Improvement Projects Fund The Capital Improvement Projects Fund is used to account for financial resources to be used for the construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). Municipal Building Authority Fund A special revenue fund used to account for the lease revenues that are legally restricted to expenditures for the City's development associated with Municipal Building Authority. Downtown Special Assessment Fund A special revenue fund used to account for the special assessment revenues that are legally restricted to expenditures for the City's promotion of downtown business activities. Union Station Fund A special revenue fund used to account for the specific revenues that are legally restricted to expenditures for Union Station. Union Station was established as a museum in 1976. It is listed on the National Register of Historical Places and the Utah Bicentennial Project. The Grand Opening was in October 1978. Activities include: guided tours, dances, live theater productions, exhibits, research and acquisition programs and a scale model railroad depicting the nation's first transcontinental railroad. Museums include: railroad, John M. Browning firearms and the Browning-Kimball Car Museum. Special facilities include: M. S. Browning Theater, Myra Powell Gallery, convention and meeting rooms, restaurant and a gift shop. 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. ---PAGE BREAK--- OGDEN CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Permanent Capital Municipal Downtown Cemetery Gomer Improvement Building Special Union Perpetual A. Projects Authority Assessment Station Care Nicholas Totals ASSETS Cash $ 865,001 $ 77,575 $ 149,091 $ - $ 452,993 $ - $ 1,544,660 Due from other funds 130,881 - - - - - 130,881 Accounts receivable (net) - - - - 19,140 7,589 26,729 Inventory, at cost - - - - 97,300 - 97,300 Special assess. receivable - - 186,186 - - - 186,186 Interest receivable - - 63,789 - - - 63,789 Restricted assets: Cash 10,454 - - - - - 10,454 Loans due from other funds - - - - 513,045 - 513,045 Investments - 395,178 - - - 410,645 805,823 Interest receivable (net) - - - - - - - Total restricted assets 10,454 395,178 - - 513,045 410,645 1,329,322 Total assets $ 1,006,336 $ 472,753 $ 399,066 $ - $ 1,082,478 $ 418,234 $ 3,378,867 86 LIABILITIES AND FUND BALANCE LIABILITIES Due to other funds $ - $ - $ - $ 123,292 $ - $ 7,589 $ 130,881 Accounts payable 225,898 - - - - - 225,898 Deposits payable - - - - - - - Other payables 27,485 - - - - - 27,485 Unearned revenue - - 249,975 - 6,401 - 256,376 Total current liabilities 253,383 - 249,975 123,292 6,401 7,589 640,640 LONG-TERM LIABILITIES: Compensated absences - - - - - - - Total long-term liabilities - - - - - - - Total liabilities 253,383 - 249,975 123,292 6,401 7,589 640,640 FUND BALANCE Reserved for restricted investments - 395,178 - - - 410,645 805,823 Reserved for loans to other funds - - - - 513,045 - 513,045 Reserved for inventory - - - - 97,300 - 97,300 Reserved for encumbrances 166,209 - - - - - 166,209 Reserved for debt service - - 149,091 - - - 149,091 Unreserved/undesignated 586,744 77,575 - (123,292) 465,732 - 1,006,759 Total fund equity 752,953 472,753 149,091 (123,292) 1,076,077 410,645 2,738,227 Total liabilities and fund balances $ 1,006,336 $ 472,753 $ 399,066 $ - $ 1,082,478 $ 418,234 $ 3,378,867 JUNE 30, 2006 Special Revenue ---PAGE BREAK--- Permanent Capital Municipal Downtown Cemetery Gomer Improvement Building Special Union Perpetual A. Projects Authority Assessment Station Care Nicholas Totals REVENUES: Charges for services $ - $ 495,225 $ - $ - $ 6,727 $ - $ 501,952 Special assessments - - 68,653 - - - 68,653 Interest 23,005 23,040 8,757 - 37,714 16,503 109,019 Intergovernmental - - - - - - - Sale of property - - - - - - - Miscellaneous 11,903 - 23,000 - - - 34,903 Total revenue 34,908 518,265 100,410 - 44,441 16,503 714,527 87 EXPENDITURES: Public services 650,987 - - - 4,647 - 655,634 Non-departmental 1,822,210 - - - - - 1,822,210 Community and economic dev. - - 91,000 - - - 91,000 Bond principal - 225,000 - - - - 225,000 Interest - 257,056 - - - - 257,056 Total expenditures 2,473,197 482,056 91,000 - 4,647 - 3,050,900 Excess (deficiency) of revenues over expenditures before operating transfers (2,438,289) 36,209 9,410 - 39,794 16,503 (2,336,373) OTHER FINANCING SOURCES (USES): Transfers in (out). 2,382,175 - - - - (16,500) 2,365,675 Total financing sources/uses: 2,382,175 - - - - (16,500) 2,365,675 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (56,114) 36,209 9,410 - 39,794 3 29,302 Fund balance at the beginning of year 809,067 436,544 139,681 (123,292) 1,036,283 410,642 2,708,925 Fund balance at the end of year $ 752,953 $ 472,753 $ 149,091 $ (123,292) $ 1,076,077 $ 410,645 $ 2,738,227 Special Revenue OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENT FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DEBT SERVICE YEAR ENDED JUNE 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments 145,000 $ 145,000 $ 15,661 $ (129,339) Charges for services - - - - Miscellaneous - - - - Interest 17,500 17,500 18,605 1,105 Sale of property - - - - Total revenues 162,500 162,500 34,266 (128,234) EXPENDITURES: Current: Non-departmental - - - - Debt service: Principal 74,000 74,000 77,000 (3,000) Interest and fiscal charges 21,775 21,775 18,829 2,946 Capital outlay 66,725 66,725 - 66,725 Total expenditures 162,500 162,500 95,829 66,671 Excess (deficiency) of revenues over expenditures - - (61,563) (194,905) OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Excess (deficiency) of revenues/sources over (under) expenditures/uses - - (61,563) (194,905) Fund balance at beginning of year 428,126 428,126 428,126 - Fund balance at end of year 428,126 $ $ 428,126 $ 366,563 $ (194,905) 88 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT PROJECTS Year Ended June 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Intergovernmental - $ - $ - $ - Miscellaneous - 536,491 11,903 (524,588) Interest 25,000 25,000 23,005 (1,995) Total revenues 25,000 561,491 34,908 (526,583) EXPENDITURES: Current: Non-departmental 5,000 1,892,125 1,822,210 69,915 Public services 580,000 1,448,278 650,987 797,291 Debt service: Principal - - - - Interest and fiscal charges - - - - Capital outlay - - - - Total expenditures 585,000 3,340,403 2,473,197 867,206 Excess (deficiency) of revenues over expenditures (560,000) (2,778,912) (2,438,289) 340,623 OTHER FINANCING SOURCES (USES): Transfers in 560,000 2,375,675 2,382,175 6,500 Transfers out - - - - Total other financing sources (uses) 560,000 2,375,675 2,382,175 6,500 Excess (deficiency) of revenues/sources over (under) expenditures/uses - (403,237) (56,114) 347,123 Fund balance at beginning of year 809,067 809,067 809,067 - Fund balance at end of year 809,067 $ 405,830 $ 752,953 $ 347,123 89 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE MUNICIPAL BUILDING AUTHORITY Year Ended June 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 407,200 $ 407,200 $ 495,225 $ 88,025 Miscellaneous - - - - Interest 10,500 10,500 23,040 12,540 Total revenues 417,700 417,700 518,265 100,565 EXPENDITURES: Debt service: Principal 225,000 225,000 225,000 - Interest and fiscal charges 192,700 192,700 257,056 (64,356) Total expenditures 417,700 417,700 482,056 (64,356) Excess (deficiency) of revenues over expenditures - - 36,209 36,209 Fund balance at beginning of year 436,544 436,544 436,544 - Fund balance at end of year $ 436,544 $ 436,544 $ 472,753 $ 36,209 90 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE DOWNTOWN SPECIAL ASSESSMENT Year Ended June 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Taxes and special assessments 76,500 $ 76,500 $ 68,653 $ (7,847) Miscellaneous 23,000 23,000 23,000 - Interest 500 500 8,757 8,257 Total revenues 100,000 100,000 100,410 410 EXPENDITURES: Current: Community and Economic Development 100,000 100,000 91,000 9,000 Total expenditures 100,000 100,000 91,000 9,000 Excess (deficiency) of revenues over expenditures - - 9,410 9,410 Fund balance at beginning of year 139,681 139,681 139,681 - Fund balance at end of year 139,681 $ $ 139,681 $ 149,091 $ 9,410 91 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE UNION STATION Year Ended June 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Intergovernmental $ - $ - $ - $ - Charges for services - - - - Miscellaneous - - - - Total revenues - - - - EXPENDITURES: Current: Public services - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Excess (deficiency) of revenues/sources over (under) expenditures/uses - - - - Fund balance at beginning of year (123,292) (123,292) (123,292) - Fund balance at end of year $ (123,292) $ (123,292) $ (123,292) $ - 92 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE CEMETERY PERPETUAL CARE EXPENDABLE TRUST Year Ended June 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Charges for services $ 9,000 $ 9,000 $ 6,727 $ (2,273) Interest 25,000 25,000 37,714 12,714 Total revenues 34,000 34,000 44,441 10,441 EXPENDITURES: Current: Public services 34,000 34,000 4,647 29,353 Total expenditures 34,000 34,000 4,647 29,353 Excess (deficiency) of revenues over expenditures - - 39,794 39,794 Fund balance at beginning of year 1,036,283 1,036,283 1,036,283 - Fund balance at end of year $ 1,036,283 $ 1,036,283 $ 1,076,077 $ 39,794 93 ---PAGE BREAK--- OGDEN CITY CORPORATION BUDGETARY COMPARISON SCHEDULE Permanent Trust Fund GOMER A. NICHOLAS Year Ended June 30, 2006 Budgeted Amounts Variance with Original Final Actual Final Budget REVENUES: Interest $ 10,000 $ 10,000 $ 16,503 $ 6,503 Total revenues 10,000 10,000 16,503 6,503 EXPENDITURES: Current: Management services - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 10,000 10,000 16,503 6,503 OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out (10,000) (10,000) (16,500) (6,500) Total other financing sources (uses) (10,000) (10,000) (16,500) (6,500) Excess (deficiency) of revenues/sources over (under) expenditures/uses - - 3 3 Fund balance at beginning of year 410,642 410,642 410,642 - Fund balance at end of year $ 410,642 $ 410,642 $ 410,645 $ 3 94 ---PAGE BREAK--- 95 Nonmajor Enterprise Funds Airport Fund To account for administration, operation and maintenance of the Ogden Hinckley Airport. Golf Courses Fund To account for the provision of two recreational golf facilities to Ogden City residents and residents of the surrounding area. 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. ---PAGE BREAK--- Page 1 of 2 Golf ASSETS Airport Courses Current assets Cash $ - $ - Accounts receivable (net) 115,401 - Inventory, at cost - 56,155 Total current assets 115,401 56,155 Noncurrent assets Restricted: Cash 50 775 Total restricted assets 50 775 Capital Assets: Land 1,941,461 34,800 Buildings 884,653 714,486 Improvements 16,796,039 2,199,687 Office furniture 12,841 - Equipment - - 19,634,994 2,948,973 Less accumulated depreciation (8,192,421) (1,514,116) Net capital assets 11,442,573 1,434,857 Total noncurrent assets 11,442,623 1,435,632 Total assets 11,558,024 1,491,787 LIABILITIES AND FUND EQUITY LIABILITIES: Current liabilities Due to other funds 2,095,013 1,272,034 Accounts payable 4,609 19,726 Accrued wages payable 13,637 28,769 Accrued compensated absences 16,661 9,091 Deferred revenue 571,804 680 Total current liabilities 2,701,724 1,330,300 CURRENT LIABILITIES (payable from restricted assets): Bonds payable - - Accrued bond interest - - Total current liabilities (payable from restricted assets) - - Total current liabilities 2,701,724 1,330,300 Noncurrent liabilities Revenue bonds - - Compensated absences 38,876 21,212 Loans from other funds - 779,939 Total noncurrent liabilities 38,876 801,151 Total liabilities 2,740,600 2,131,451 NET ASSETS: Investment in capital assets (net of related debt) 11,442,573 1,434,857 Restricted net assets - - Unrestricted net assets (2,625,149) (2,074,521) Total Net Assets $ 8,817,424 $ (639,664) OGDEN CITY CORPORATION COMBINING STATEMENT OF NET ASSETS NONMAJOR ENTERPRISE FUNDS JUNE 30, 2006 96 ---PAGE BREAK--- Page 2 of 2 Medical Recreation Services Total $ 155,480 $ 55,250 $ 210,730 - 1,909,055 2,024,456 - - 56,155 155,480 1,964,305 2,291,341 170 - 995 170 - 995 - - 1,976,261 - - 1,599,139 231,626 - 19,227,352 - 13,364 26,205 8,090 - 8,090 239,716 13,364 22,837,047 (232,875) (13,364) (9,952,776) 6,841 - 12,884,271 7,011 - 12,885,266 162,491 1,964,305 15,176,607 - 493,227 3,860,274 1,264 8,436 34,035 2,569 104,892 149,867 - 78,573 104,325 - - 572,484 3,833 685,128 4,720,985 - - - - - - - - - 3,833 685,128 4,720,985 - - - - 183,337 243,425 - - 779,939 - 183,337 1,023,364 3,833 868,465 5,744,349 6,841 - 12,884,271 - - - 151,817 1,095,840 (3,452,013) $ 158,658 $ 1,095,840 $ 9,432,258 97 ---PAGE BREAK--- COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS Page 1 of 2 Golf Airport Courses OPERATING REVENUES Charges for services $ 287,780 $ 879,590 OPERATING EXPENSES Cost of materials and parts - 149,345 Personal services: Salaries and wages 261,918 437,519 Benefits 84,472 95,754 Supplies Office supplies 1,877 3,034 Operating supplies 9,283 34,505 Repair and maintenance supplies 8,518 587 Charges for services: Disposal charges - - Public utility services 60,898 80,817 Travel and education 2,289 1,899 Contracted agreements 32,420 18,595 Other operating expenses: Depreciation 782,970 73,038 Data processing 17,350 11,000 Maintenance and repair 50,516 14,444 Vehicle operating expenses 105,119 163,951 Miscellaneous 2,711 15,922 Total operating expenses 1,420,341 1,100,410 Operating income (loss) (1,132,561) (220,820) NON-OPERATING REVENUES (EXPENSES) Revenues Interest income - - Gain on sale of assets - - Accounting charges - - Special district taxes - - Grants and donation 227,608 - Miscellaneous income 16,861 4,728 Expenses: Interest expense (77,038) (84,608) Rental charges (1,947) (795) Fiscal charges - (40,344) Total non-operating revenues (expenses) 165,484 (121,019) Income before operating transfers (967,077) (341,839) Transfers in 145,925 - Transfers out - - Change in net assets (821,152) (341,839) Net assets, July 1 9,638,576 (297,825) Net assets, June 30 $ 8,817,424 $ (639,664) OGDEN CITY CORPORATION NONMAJOR ENTERPRISE FUNDS YEAR ENDED JUNE 30, 2006 98 ---PAGE BREAK--- Page 2 of 2 Medical Recreation Services Totals $ 127,956 $ 2,599,408 $ 3,894,734 - - 149,345 20,930 1,985,926 2,706,293 2,193 767,456 949,875 1,225 2,494 8,630 31,411 103,768 178,967 - (6,525) 2,580 - - - 10,103 70,437 222,255 - 12,708 16,896 44,713 431,959 527,687 760 - 856,768 - 27,625 55,975 3,925 14,242 83,127 - 253,995 523,065 - 71,674 90,307 115,260 3,735,759 6,371,770 12,696 (1,136,351) (2,477,036) 6,352 3,278 9,630 - - - - - - - - - - 1,575,590 1,803,198 - - 21,589 - - (161,646) - (5,928) (8,670) (6,002) (205,260) (251,606) 350 1,367,680 1,412,495 13,046 231,329 (1,064,541) - - 145,925 - - - 13,046 231,329 (918,616) 145,612 864,511 10,350,874 $ 158,658 $ 1,095,840 $ 9,432,258 99 ---PAGE BREAK--- Page 1 of 2 Airport Golf CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 218,082 $ 879,590 Cash received (paid) from (to) other funds 540,208 232,358 Cash payments to suppliers for goods and services (303,292) (491,812) Cash payments to employees for services (345,962) (530,261) Miscellaneous non-operating expenses - - Refund/receipt of customer deposits - - Net cash provided by operating activities 109,036 89,875 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Fiscal charges paid to other funds (1,947) (41,139) Payments paid - interfund loans - - Payments received - interfund loans - - Grants/donations - - Change in long-term compensated absences - 1,146 Transfers in 145,925 - Transfers (out) - - Net cash provided by noncapital financing activities 143,978 (39,993) CASH FLOWS FROM CAPTIAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (417,283) - Capital grants 227,608 - Interest paid on revenue bonds - - Change in loans from other funds 29,999 Proceeds form sale of assets - - Net cash provided by capital and related financing activities (189,675) 29,999 CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 13,699 4,727 Interest expense on deficit balances (77,038) (84,608) Net cash for investing activities (63,339) (79,881) Net increase (decrease) in cash equivalents - - Cash/equivalents at beginning of year 50 775 Cash/equivalents at end of year 50 775 Cash/equivalents, end of year (unrest.) - - Cash/equivalents, end of year (restricted) 50 775 Total cash/equivalents, end of year $ 50 $ 775 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ (1,132,561) $ (220,820) Reconciliation adjustments: Depreciation 782,970 73,038 Miscellaneous non-operating revenues (expenses) - - Changes in assets and liabilities: Change in accounts receivable (69,698) - Change in inventory - 6,873 Change in due from other funds - - Change in due to other funds 540,208 232,358 Change in accounts payable 987 (3,344) Change in deposits payable - - Change in unearned revenue (13,298) (1,242) Change in wages payable and compensated absences 428 3,012 Total adjustments 1,241,597 310,695 Net cash provided by operating activities $ 109,036 $ 89,875 OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS YEAR ENDED JUNE 30, 2005 100 ---PAGE BREAK--- Page 2 of 2 Medical Recreation Services Total $ 127,956 $ 2,426,670 $ 3,652,298 - (50,303) 722,263 (95,033) (987,024) (1,877,161) (21,677) (2,732,833) (3,630,733) - - - - - - 11,246 (1,343,490) (1,133,333) (6,002) (211,188) (260,276) - - - - - - - 1,575,590 1,575,590 - 31,060 32,206 - - 145,925 - - - (6,002) 1,395,462 1,493,445 (7,600) - (424,883) - - 227,608 - - - 29,999 - - - (7,600) - (167,276) 6,351 3,278 28,055 - - (161,646) 6,351 3,278 (133,591) 3,995 55,250 59,245 151,655 - 152,480 155,650 55,250 211,725 155,480 55,250 210,730 170 - 995 $ 155,650 $ 55,250 $ 211,725 $ 12,696 $ (1,136,351) $ (2,477,036) 760 - 856,768 - - - - (172,738) (242,436) - - 6,873 - - - - (50,303) 722,263 (3,656) (4,647) (10,660) - - - - - (14,540) 1,446 20,549 25,435 (1,450) (207,139) 1,343,703 $ 11,246 $ (1,343,490) $ (1,133,333) 101 ---PAGE BREAK--- 102 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 services to other departments using a Hewlett Packard 9000 K series computer 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. ---PAGE BREAK--- Management Fleet and Information Risk ASSETS Facilities Systems Management Totals Current assets Cash $ 709,763 $ 1,621,785 $ 448,134 $ 2,779,682 Accounts receivable (net) 251,973 48,451 - 300,424 Due from other funds - - - - Loans to other funds - - - - Inventory, at cost 761,097 - - 761,097 Total current assets 1,722,833 1,670,236 448,134 3,841,203 Noncurrent assets Restricted assets: Cash - - - - Employee PC loans receivable - 69,163 - 69,163 Total noncurrent restricted assets - 69,163 - 69,163 Capital assets: Land 9,000 - - 9,000 Buildings 723,002 - - 723,002 Improvements other than buildings 364,760 - - 364,760 Office furniture 5,528 - - 5,528 Equipment 4,678,408 3,470,292 - 8,148,700 Vehicles 13,194,405 - - 13,194,405 Total capital assets 18,975,103 3,470,292 - 22,445,395 Less accumulated depreciation (15,541,591) (2,512,242) - (18,053,833) Net capital assets 3,433,512 958,050 - 4,391,562 Total noncurrent assets 3,433,512 1,027,213 - 4,460,725 Total assets $ 5,156,345 $ 2,697,449 $ 448,134 $ 8,301,928 LIABILITIES AND FUND EQUITY Current liabilities Due to other funds $ 1,886,463 $ - $ - $ 1,886,463 Accounts payable 390,883 176,720 90,074 657,677 Contracts payable 975,585 57,439 - 1,033,024 Interest payable - - - - Claims payable - 93,741 818,697 912,438 Accrued wages payable 45,301 35,551 6,656 87,508 Accrued compensated absences 23,587 14,577 5,597 43,761 Total current liabilities 3,321,819 378,028 921,024 4,620,871 Noncurrent liabilities Compensated absences 55,036 34,013 13,059 102,108 Total noncurrent liabilities 55,036 34,013 13,059 102,108 Total liabilities 3,376,855 412,041 934,083 4,722,979 NET ASSETS RETAINED EARNINGS: Investment in general capital assets (net of related debt) 3,433,512 958,050 - 4,391,562 Restricted net assets - - - - Unrestricted net assets (1,654,022) 1,327,358 (485,949) (812,613) Total net assets 1,779,490 2,285,408 (485,949) 3,578,949 Total liabilities/fund equity $ 5,156,345 $ 2,697,449 $ 448,134 $ 8,301,928 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2006 103 ---PAGE BREAK--- Management Fleet and Information Risk Facilities Systems Management Totals OPERATING REVENUES: Charges to departments $ 7,002,147 $ 3,796,176 $ 1,303,730 $ 12,102,053 OPERATING EXPENSES: Cost of materials and parts 2,649,133 - - 2,649,133 Personal services: Salaries and wages 822,332 690,868 110,741 1,623,941 Benefits 307,650 266,782 31,646 606,078 Supplies: Office supplies 50,076 (4,999) 2,476 47,553 Operating supplies 33,243 6,600 - 39,843 Repair and maint. Supplies 7,137 - - 7,137 Charges for services: Public utility services 562,655 603,419 6,126 1,172,200 Travel and education 5,007 27,078 2,439 34,524 Contracted agreements 1,199,045 1,258,202 204,624 2,661,871 Other operating expenses: Computer equipment - 427,650 - 427,650 Depreciation 1,566,224 308,363 - 1,874,587 Data processing 115,475 3,917 15,955 135,347 Maintenance and repair 57,319 19,317 - 76,636 Vehicle operating expenses 96,181 115 - 96,296 Claims payments - - 1,530,413 1,530,413 Miscellaneous 365 1,425 934 2,724 Total operating expenses 7,471,842 3,608,737 1,905,354 12,985,933 Operating income (loss) (469,695) 187,439 (601,624) (883,880) NON-OPERATING REVENUES (EXPENSES): Revenues: Interest income 3,080 47,426 8,141 58,647 Gain on sale of assets 127,563 - - 127,563 Miscellaneous income 511,702 1,144,352 2,314 1,658,368 Expenses: Rental expense (5,056) - - (5,056) Interest expense (27,925) (2,503) - (30,428) Total non-operating revenue (expense) 609,364 1,189,275 10,455 1,809,094 Income before operating transfers 139,669 1,376,714 (591,169) 925,214 Transfers in - - - - Change in net assets 139,669 1,376,714 (591,169) 925,214 Net Assets, July 1 (restated) 1,639,821 908,694 105,220 2,653,735 Net Assets, June 30 $ 1,779,490 $ 2,285,408 $ (485,949) $ 3,578,949 The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS Year Ended June 30, 2006 104 ---PAGE BREAK--- Management Fleet and Information Risk Facilities Systems Management Totals CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 7,058,694 $ 3,789,162 $ 1,305,686 $ 12,153,542 Cash received (paid) from (to) other funds (18,993) - - (18,993) Cash payments to suppliers for goods and services (5,111,487) (2,260,320) (1,431,200) (8,803,007) Cash payments to employees for services (1,132,643) (944,076) (145,907) (2,222,626) Miscellaneous income 511,702 1,144,352 2,314 1,658,368 Net cash from operating activities 1,307,273 1,729,118 (269,107) 2,767,284 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating transfers in - - - - Fiscal charges paid to other funds (5,056) - - (5,056) Grants/donations - - - - Change in long term comp. absences (2,710) 10,650 (10,800) (2,860) Proceeds from due to other funds - - - - Payments on due from other funds - - - - PC loans paid - 764 - 764 Net cash from noncapital financing activities (7,766) 11,414 (10,800) (7,152) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (1,099,330) (727,973) - (1,827,303) Loan proceeds 355,000 - - 355,000 Payments on contracts payable (110,829) - - (110,829) Interest expense on loans - (2,503) - (2,503) Proceeds from sale of assets - 127,563 - 127,563 Net cash from capital financing activities (855,159) (602,913) - (1,458,072) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on investments 3,080 47,426 8,142 58,648 Interest expense on cash deficit (27,925) - - (27,925) Net cash from investing activities (24,845) 47,426 8,142 30,723 Net increase in cash equivalents 419,503 1,185,045 (271,765) 1,332,783 Cash/equivalents, July 1 290,260 436,740 719,899 1,446,899 Cash/equivalents, June 30 709,763 1,621,785 448,134 2,779,682 Cash and cash equivalents at end of year: Unrestricted cash 709,763 1,621,785 448,134 2,779,682 Restricted cash - - - - Total cash at end of year $ 709,763 $ 1,621,785 $ 448,134 $ 2,779,682 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ (469,695) $ 187,439 $ (601,624) $ (883,880) Reconciliation adjustments: Depreciation 1,566,224 308,363 - 1,874,587 Miscellaneous non-operating revenues 511,702 1,144,352 2,314 1,658,368 Changes in assets and liabilities: Change in accounts receivable 56,547 (7,014) 1,956 51,489 Change in inventory (85,784) - - (85,784) Change in due to other funds (18,993) - - (18,993) Change in accounts payable (250,067) 151,963 72,482 (25,622) Change in claims payable - (69,559) 259,285 189,726 Change in wages payable and compensated absences (2,661) 13,574 (3,520) 7,393 Total adjustments 1,776,968 1,541,679 332,517 3,651,164 Net cash provided by operating activities $ 1,307,273 $ 1,729,118 $ (269,107) $ 2,767,284 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: The City entered into a capital lease to buy a fire truck in the Fleet and Facilities fund. The lease amount totaled $355,000. The notes to the financial statements are an integral part of this statement. OGDEN CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year Ended June 30, 2006 105 ---PAGE BREAK--- 106 OGDEN CITY, UTAH Year Ended June 30, 2006 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.” Ogden City Corporation does not collect impact fees as described in Utah Code Sections 10-5-129, 10-6-150, 17-36-37, and 17A-1-4. ---PAGE BREAK--- Statistical Section ---PAGE BREAK--- ---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. 109 ---PAGE BREAK--- FINANCIAL TRENDS (Unaudited) 110 ---PAGE BREAK--- Ogden City Net Assets by Component Last Four Fiscal Years (accrual basis of accounting) (UNAUDITED) Fiscal Fiscal Fiscal Fiscal Year Year Year Year 2006 2005 2004 2003 ¹ Governmental activities Invested in capital assets, net of related debt $ 87,853,981 $ 88,862,111 $ 90,026,228 $ 90,469,850 Restricted 11,702,871 11,419,430 11,917,845 14,956,114 Unrestricted 3,290,456 (12,816,700) (14,377,522) 1,225,344 Total governmental activities net assets $ 102,847,308 $ 87,464,841 $ 87,566,551 $ 106,651,308 Business-type activities Invested in capital assets, net of related debt $ 159,802,111 $ 172,829,482 $ 173,651,238 $ 137,083,566 Restricted 956,676 1,971,539 2,045,380 1,986,251 Unrestricted 15,735,682 9,881,273 10,687,031 34,547,615 Total business-type activities net assets $ 176,494,469 $ 184,682,294 $ 186,383,649 $ 173,617,432 Primary government Invested in capital assets, net of related debt $ 247,656,092 $ 261,691,593 $ 263,677,466 $ 227,553,416 Restricted 12,659,547 13,390,969 13,963,225 16,942,365 Unrestricted 19,026,138 (2,935,427) (3,690,491) 35,772,959 Total primary government net assets $ 279,341,777 $ 272,147,135 $ 273,950,200 $ 280,268,740 Source: Ogden City Comptroller Division 1 GASB 34 and 44 conversion. Ten years of comparative data is not yet available. Further discussion of this data is available in the Management Discussion and Analysis, the transmittal letter, and the notes found in the financial section. Net Assets by Component 0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 2006 2005 2004 2003 Year Value by Dollars Gov. Activities Bus. Activities Primary Gov. 111 ---PAGE BREAK--- Ogden City Changes in Net Assets Last Four Fiscal Years (accrual basis of accounting) (UNAUDITED) Page 1 of 2 Fiscal Fiscal Fiscal Fiscal Year Year Year Year 2006 2005 2004 2003 ¹ Revenues Governmental Activities: General Revenues: Taxes $ 38,373,228 $ 38,328,343 $ 36,017,959 $ 33,971,622 Other General Revenues 2,043,186 2,488,495 882,611 4,307,620 Program Revenues: Charges for Services 21,190,908 17,711,336 16,216,235 14,525,970 Operating Grants 5,469,986 7,264,383 7,743,220 6,265,843 Capital Grants 2,552,825 2,650,734 3,158,693 2,310,903 Total Governmental Activities Revenues 69,630,133 68,443,291 64,018,718 61,381,958 Business-Type Activities: General Revenues: Other General Revenues 4,664,474 862,142 828,125 1,057,772 Program Revenues: Charges for Services 27,093,866 27,339,430 27,952,185 27,854,371 Operating Grants 2,974,921 2,042,822 4,694,006 8,964,319 Capital Grants 265,319 716,645 3,148,221 - Total Business-Type Activities Revenues 34,998,580 30,961,039 36,622,537 37,876,462 Total Primary Government Revenues $ 104,628,713 $ 99,404,330 $ 100,641,255 $ 99,258,420 Expenses Governmental Activities: General Administration $ 20,092,363 $ 14,507,052 $ 14,870,625 $ 15,513,093 Public Safety 21,241,719 20,360,855 20,761,099 19,290,381 Transportation 7,526,427 6,728,128 4,511,192 5,206,523 Environmental Protection 398,019 425,139 13,848 1,650,660 Leisure Opportunities 6,162,480 5,688,692 1,878,428 1,378,373 Community Development 8,422,124 9,908,295 18,252,479 16,896,453 Interest on Long-Term Debt 3,138,558 3,745,000 3,691,124 1,440,965 Total Governmental Activities Program Expenses 66,981,690 61,363,161 63,978,795 61,376,448 112 ---PAGE BREAK--- Page 2 of 2 Fiscal Fiscal Fiscal Fiscal Year Year Year Year 2006 2005 2004 2003 ¹ Business-Type Activities: Medical Services $ 3,946,947 $ 3,528,822 $ 3,165,958 $ 3,183,742 Airport 1,499,326 1,408,112 1,603,342 1,176,054 Utilities 18,937,363 18,871,487 17,474,990 15,662,746 Recreation 1,347,419 1,585,168 1,498,993 1,507,983 Property Management 4,721,336 7,966,783 9,156,306 6,279,954 Total Business-Type Activities Program Expenses 30,452,391 33,360,372 32,899,589 27,810,479 Total Primary Government Program Expenses $ 97,434,081 $ 94,723,533 $ 96,878,384 $ 89,186,927 Change in Net Assets Before Transfers: Net (Expense)/Revenue Governmental activities $ 2,648,443 $ 7,080,130 $ 39,923 $ 5,510 Business-type activities 4,546,189 (2,399,333) 3,722,948 10,065,983 Total primary government net (expense)/revenue $ 7,194,632 $ 4,680,797 $ 3,762,871 $ 10,071,493 General Revenues and Other Changes in Net Assets Governmental Activities: Transfers 12,734,014 (2,960,213) $ (7,817,707) $ (4,545,300) Total Governmental Activities 12,734,014 (2,960,213) (7,817,707) (4,545,300) Business-Type Activities: Transfers (12,734,014) 2,960,213 7,817,707 4,545,300 Total Business-Type Activities (12,734,014) 2,960,213 7,817,707 4,545,300 Total Primary Government $ - $ - $ - $ - Change in Net Assets Governmental Activities $ 15,382,457 $ 4,119,917 $ (7,777,784) $ (4,539,790) Business-Type Activities (8,187,825) 560,880 11,540,655 14,611,283 Total primary government $ 7,194,632 $ 4,680,797 $ 3,762,871 $ 10,071,493 Source: Ogden City Comptroller Division 1 GASB 34 and 44 conversion. Ten years of comparative data is not yet available. Further discussion of this data is availible in the Management Discussion & Analysis, the Transmittal Letter, and the notes found in the Financial Section. 113 ---PAGE BREAK--- Ogden City Changes in Fund Balances, Governmental Funds Last Four Fiscal Years (modified accrual basis of accounting) (UNAUDITED) Page 1 of 2 Fiscal Fiscal Fiscal Fiscal Year Year Year Year 2006 2005 2004 1 2003 1 Revenues Taxes and special assessments $ 40,600,630 $ 38,300,398 $ 36,017,959 $ 33,674,649 Licenses and permits 2,100,508 2,165,027 1,760,100 1,761,584 Intergovernmental 7,707,958 9,827,317 9,873,197 6,118,536 Charges for services 6,531,996 6,117,999 5,993,359 7,016,822 Fines and forfeitures 960,148 832,712 847,954 561,075 Miscellaneous 1,793,608 1,419,727 1,948,517 2,172,698 Outside donations 80,806 63,431 114,306 718,694 Interest 1,287,672 896,004 802,363 999,930 Sale of property 569,303 1,434,827 29,352 1,703,047 Total revenues 61,632,629 61,057,442 57,387,107 54,727,035 Expenditures General government: Mayor 433,797 415,256 419,481 422,142 City Council 634,277 537,695 606,812 600,025 Management services 2,293,113 2,027,169 2,089,066 2,042,904 Circuit court 34,020 34,020 34,020 32,400 Corporate counsel 896,177 814,485 803,345 765,768 Non departmental 4,620,366 2,579,605 4,176,233 4,736,949 Police 14,267,656 12,799,940 13,017,997 11,769,534 Fire 6,326,334 6,488,091 6,458,664 6,290,897 2 Public works - - 4,708,270 6,434,126 2 Community services - - 7,265,426 7,576,512 Community & economic dev. 21,197,793 12,672,324 10,901,179 8,567,845 2 Publics services 10,655,033 9,670,977 - - Debt service: Principal 5,002,000 4,018,091 2,634,000 4,802,447 Interest and fiscal charges 3,864,630 2,721,531 2,984,634 2,011,960 Fees and assessments 39,950 - 657,362 569,375 Capital outlay 91,000 9,064,289 935,738 2,950,360 Total expenditures 70,356,146 63,843,473 57,692,227 59,573,244 Excess of revenues over (under) expenditures (8,723,517) (2,786,031) (305,120) (4,846,209) Other Financing Sources (Uses) Loan/bond proceeds 43,440,000 2,100,000 8,072,255 1,426,359 Bond discount (336,300) - - - Payment to refund bond escrow (2,865,000) - (7,970,446) - Operating transfers in 22,580,824 16,064,479 4,482,782 12,253,102 Operating transfers out (25,051,312) (19,187,992) (12,300,490) (17,183,552) Total other financing sources (uses) 37,768,212 (1,023,513) (7,715,899) (3,504,091) Net change in fund balances $ 29,044,695 $ (3,809,544) $ (8,021,019) $ (8,350,300) Debt service as a percentage of noncapital expenditures 12.7% 12.3% 11.1% 13.0% Source: Ogden City Comptroller Division 1 GASB 34 and 44 conversion. Ten years of comparative data is not yet available. 2 The departments of Public Works & Community Services were combined into one department of Public Services in fiscal year 2005 Further discussion of this data is availible in the Management Discussion & Analysis, the Transmittal Letter, and notes found in the Financial Section. 114 ---PAGE BREAK--- Page 2 of 2 2006 Governmental Funds Revenues 65% 3% 13% 11% 2% 3% 0% 1% 2% Taxes and special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Outside donations Interest Sale of property 2006 General Government Expenditures 0% 7% 20% 9% 15% 30% 13% 0% 3% 1% 1% 1% Mayor City Council Management Services Circuit Court Corporate Counsel Non Departmental Police Fire Public Services Community & Economic Development Debt Service: 115 ---PAGE BREAK--- Ogden City Fund Balances, Governmental Funds Last Three Fiscal Years (modified accrual basis of accounting) (UNAUDITED) Fiscal Fiscal Fiscal Fiscal Year Year Year Year 2006 2005 2004 2003 ¹ General Fund Reserved $ 12,431,274 $ 11,361,573 $ 10,875,511 $ 11,476,944 Unreserved/Designated 84,109 276,897 321,722 302,961 Unreserved/Undesignated 4,579,463 6,443,605 4,059,669 4,377,072 Total General Fund $ 17,094,846 $ 18,082,075 $ 15,256,902 $ 16,156,977 All Other Governmental Funds Reserved $ 19,487,239 $ 4,185,603 $ (8,025,320) $ (6,664,374) Unreserved, reported in: Redevelopment Agency Funds (8,971,457) (24,378,933) (5,787,733) 969,739 Nonmajor Funds 1,155,850 1,833,038 1,322,178 324,705 Total all Other Governmental Funds $ 11,671,632 $ (18,360,292) $ (12,490,875) $ (5,369,930) Total Primary Government $ 28,766,478 $ (278,217) $ 2,766,027 $ 10,787,047 NoFund balances are discussed in detail in Management's Discussion and Analysis Source: Ogden City Comptroller Division 1 GASB 34 and 44 conversion. Ten years of comparative data is not yet available. Governmental Fund Balances (25,000,000) (20,000,000) (15,000,000) (10,000,000) (5,000,000) 0 5,000,000 10,000,000 15,000,000 20,000,000 2005 2004 2003 Year Value in Dollars General Fund Other Gov. Fund Primary Gov. 116 ---PAGE BREAK--- REVENUE CAPACITY (Unaudited) 117 ---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 2 Value 2 Value 2 Value 2 Value 4 Value 4 Rate 5 1997 1,523,188,806 3 481,770,690 3 2,004,959,496 3 5.370 1998 1,712,815,675 3 541,662,411 3 2,254,478,086 3 4.891 1999 1,777,846,557 3 621,942,949 3 2,399,789,506 3 4.929 2000 2,017,785,103 3 434,263,817 3 2,452,048,920 3 4.784 2001 1,934,343,839 3 440,861,847 3 2,375,205,686 3 4.295 2002 2,224,267,428 3 366,364,801 3 2,590,632,229 3 4.135 2003 1 2,323,499,514 3,423,332,047 381,171,565 385,751,543 2,704,671,079 3,809,083,590 4.082 2004 2,397,547,847 3,533,599,330 404,124,480 408,578,318 2,801,672,327 3,942,177,648 4.061 2005 2,420,191,163 3,574,141,695 398,027,860 402,294,494 2,818,219,023 3,976,436,189 4.161 2006 2,448,901,445 3,614,684,061 424,839,874 428,998,796 2,873,741,319 4,043,682,857 4.253 Source: The Annual Report of the Weber County Auditor (1997-2006) Weber County Auditor's Office 1 GASB 34 and 44 conversion; comparative data in previous years provided as available 2 Taxable and market values as provided by Weber County Auditor's office. Includes State Assessed Utilities. 3 Information not available in previous years 4 Calendar year valuations FY 2006 is the 2005 calendar year valuation) 5 Total direct tax rate is the Ogden City General Fund tax rate for the calendar year as provided by Weber County. FY 2006 is the 2005 calendar year tax rate) Value of Taxable Property 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 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year Value in dollars Real Property Personal Property Total Value 118 ---PAGE BREAK--- OGDEN CITY CORPORATION PRINCIPAL TAXPAYERS FOR THE CALENDAR YEAR 2005 June 30, 2006 TEN LARGEST PROPERTY TAXPAYERS (UNAUDITED) 2005 Percentage of 1996 Taxable Total Taxable Taxable Taxpayer Type of Business Value Value Value Ranking Fresenius USA (Delmed Medical) Health care products 111,805,207 3.9% na Boyer Company Construction/space leasing $ 111,345,962 3.9% na Morton International/Autoliv Automotive safety products 56,220,625 2.0% $ 59,487,695 1 Williams International Manufacture of jet airplane engines 47,251,564 1.6% 15,289,081 6 McDonnell Douglas Air force subcontractor 43,264,131 1.5% na (The Boeing Company) Qwest Communications Telephone/communications 31,410,325 1.1% 31,055,240 2 (US West) Newgate Mall Space leasing for retail sales 27,697,330 1.0% 16,799,250 5 Pacificorp (Utah Power) Electric utility 27,210,876 0.9% 28,786,190 3 IHC Health Services Health services 26,558,347 0.9% na Flying J Gasoline refining and sales 17,129,770 0.6% na Connecticut General Life Space leasing for retail sales 19,870,625 4 (Ogden City Mall) Ogden City Mall Parking Terrace Parking structure for mall 13,251,439 7 Mountain Fuel Supply Natural gas utility 11,678,720 8 Cargill Inc. Grain processing 8,005,370 9 Dillards Retail sales 6,809,873 10 Total taxable value of 10 largest taxpayers……………………… 499,894,137 17.4% 211,033,483 Total taxable value of all other taxpayers……………………….. 2,373,847,182 82.6% 1,586,928,739 Total taxable value of all $ 2,873,741,319 100.0% $ 1,797,962,222 Sources: Weber County Treasurer's Office Most Recent Available Data Weber County Auditor's Office 119 ---PAGE BREAK--- (UNAUDITED) Percent of Percent Delinquent Total Tax Fiscal Total Tax Current Tax of Approp. Tax Total Tax Collections Year Appropriation Collections Collected Collections 2 Collections to Tax Approp. 1997 8,634,725 8,543,293 98.9% 287,455 8,830,748 102.3% 1998 8,633,250 8,409,720 97.4% 313,342 8,723,062 101.0% 1999 9,053,900 9,128,673 100.8% 433,924 9,562,597 105.6% 2000 9,428,300 9,180,537 97.4% 391,002 9,571,539 101.5% 2001 9,234,050 9,208,085 99.7% 450,212 9,658,297 104.6% 2002 9,545,200 9,197,405 96.4% 485,721 9,683,126 101.4% 2003 1 15,834,825 14,004,703 88.4% 582,987 14,587,690 92.1% 2004 17,371,150 15,541,405 89.5% 426,611 15,968,016 91.9% 2005 18,089,832 16,377,964 90.5% 594,603 16,972,567 93.8% 2006 19,306,325 16,820,852 87.1% 556,156 17,377,008 90.0% 1 GASB 34 conversion; now includes Redevelopment Agency 2 Property taxes are collected by Weber County and then disbursed to the appropriate entities. Remittance of delinquent tax collections does not include information as to the amounts being collected for particular past years taxing levies. This information is not available at this time. The amounts listed are simply the collections of prior years' taxes that were remitted to the City by the County in that particular fiscal year. Source: Ogden City Comptroller Division OGDEN CITY CORPORATION PROPERTY TAX APPROPRIATIONS AND COLLECTIONS LAST TEN FISCAL YEARS Property Tax Collections & Appropriations - 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 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year Volume in Dollars Current Tax Collections Delinquent Tax Collections Total Tax Collections 120 ---PAGE BREAK--- OGDEN CITY CORPORATION PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS PER $1,000 ASSESSED VALUATION LAST TEN CALENDAR YEARS (UNAUDITED) 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 1996 5.370 2.235 0.922 0.220 0.275 0.132 0.154 0.284 0.680 6.795 0.446 17.513 1997 4.891 2.106 0.866 0.206 0.258 0.125 0.145 0.240 0.635 7.846 0.414 17.[PHONE REDACTED] 4.929 1.246 1.234 0.210 0.263 0.127 0.141 0.240 0.638 7.865 0.406 17.299 1999 4.784 2.109 1.250 0.210 0.262 0.125 0.139 0.237 0.638 7.722 0.400 17.876 2000 4.295 1.973 1.221 0.198 0.247 0.118 0.200 0.222 0.603 7.761 0.373 17.211 2001 4.135 1.853 1.028 0.186 0.232 0.111 0.193 0.216 0.578 7.476 0.348 16.356 2002 4.082 1.868 1.004 0.187 0.234 0.111 0.193 0.159 0.575 7.458 0.336 16.207 2003 4.061 1.880 0.968 0.187 0.234 0.111 0.196 0.282 0.574 7.284 0.340 16.117 2004 4.161 1.893 1.006 0.188 0.236 0.112 0.198 0.358 0.552 7.342 0.340 16.386 2005 4.253 2.405 1.124 0.193 0.185 0.110 0.193 0.310 0.567 7.312 0.377 17.029 Source: Weber County Auditor's Office ---PAGE BREAK--- OGDEN CITY CORPORATION TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (UNAUDITED) City Fiscal Property Prior Year Sales Franchise Utility Year Taxes Taxes Taxes Taxes Taxes Total 1997 8,543,293 287,455 10,324,128 3,893,530 1,351,041 24,399,447 1998 8,409,720 313,342 10,286,617 4,158,396 1,362,167 24,530,242 1999 9,128,673 433,925 10,734,184 3,999,085 1,372,550 25,668,417 2000 9,180,537 391,002 11,165,428 4,126,722 1,448,101 26,311,790 2001 9,208,085 450,212 13,153,887 4,714,683 1,602,975 29,129,842 2002 9,197,405 485,721 11,900,477 5,368,914 1,607,400 28,559,917 2003 1 14,004,702 582,987 11,573,480 4,893,599 2,857,528 33,912,296 2004 15,541,405 426,611 11,756,091 5,456,826 2,943,145 36,124,078 2005 16,377,964 594,603 12,383,198 6,502,958 3,078,524 38,937,247 2006 16,820,852 556,156 13,452,590 7,054,842 3,289,875 41,174,315 1 GASB 34 conversion; now includes Ogden City Redevelopment Agency Source: Ogden City Comptroller Division Tax Revenues by Source - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year Dollars City Utility Taxes Franchise Taxes Sales Taxes Prior Year Taxes Property Taxes 122 ---PAGE BREAK--- DEBT CAPACITY (Unaudited) 123 ---PAGE BREAK--- Ogden City Ratios of Outstanding Debt by Type Last Three Fiscal Years (UNAUDITED) Governmental Activities Business-Type Activities General Lease Tax Increment Notes and Total Percentage Fiscal Personal Obligation Revenue Revenue Special Revenue Leases Primary of Personal Per Year Population Income 2 Bonds Bonds Bonds Assessment Bonds Payable Government Income Capita 2003 1 80,599 $ 5,053,300,000 $ 21,410,000 $ 4,315,000 $ 14,655,000 $ 543,000 $ 12,500,000 $ 1,737,309 $ 55,160,309 1.09 % $ 684.38 2004 81,416 5,263,200,000 20,850,000 3,905,000 13,770,000 477,000 11,868,650 1,619,056 52,489,706 1.00 644.71 2005 82,007 5,331,000,000 19,475,000 3,475,000 12,875,000 408,000 11,206,633 9,027,965 56,467,598 1.06 688.57 2006 82,007 5,824,100,000 20,020,000 3,495,000 50,520,000 257,000 10,518,496 8,219,070 93,029,566 1.60 1,134.41 124 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 Utah Department of Workforce Services 1 GASB 34 and 44 conversion. Ten years of comparative data is not available. 2 Personal income numbers are for Weber County. This data is not available on a city level. Ogden City is the largest city in Weber County. Calendar year numbers FY 2006 is calendar year 2005 numbers); 2005 is a preliminary number, 2006 is a forecasted number. ---PAGE BREAK--- OGDEN CITY CORPORATION RATIOS OF GENERAL BONDED DEBT OUTSTANDING TO ASSESSED VALUE AND PER CAPITA LAST TEN FISCAL YEARS (UNAUDITED) Ratio General Debt of Net Net Debt Payable Bonded Bonded Gross Service from Net Debt to Debt Fiscal Taxable Value/ Bonded Monies Enterprise Bonded Assessed per Year Population 2 Est. Market Value 3 Debt Available Revenues Debt Value Capita 1996 66,573 1,797,962,222 6,305,000 0 2,480,000 3,825,000 0.21 57.46 1997 67,468 2,004,959,496 27,920,000 0 2,135,000 25,785,000 1.29 382.18 1998 68,226 2,254,478,086 26,730,000 0 1,775,000 24,955,000 1.11 365.77 1999 69,262 2,399,789,506 34,015,000 0 8,335,000 25,680,000 1.07 370.77 2000 69,262 2,452,048,920 32,650,000 0 7,970,000 24,680,000 1.01 356.33 2001 77,226 2,375,205,686 31,410,000 0 7,770,000 23,640,000 1.00 306.11 2002 79,757 2,590,632,229 33,415,000 0 10,865,000 22,550,000 0.87 282.73 2003 1 80,599 3,809,083,590 53,423,000 0 12,500,000 40,923,000 1.07 507.74 2004 81,416 3,942,177,648 50,870,650 0 11,868,650 39,002,000 0.99 479.05 2005 82,007 5,246,039,171 47,439,633 0 11,206,633 36,233,000 0.69 441.83 2006 82,007 4,043,682,857 44,690,236 0 11,141,236 33,549,000 0.83 409.10 Sources: The Annual Report of the Weber County Auditor (1995-2000) 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 GASB 34 and 44 conversion. Debt now includes Redevelopment Agency. 2 Calendar year estimates prepared by the Ogden City Planning Division FY 2006 population is the calendar year 2005 estimate) Population from the 1990 census was 63,909. The population figures have been revised to bring them in line with the census. 3 Calendar year valuations FY 2006 is calendar year 2005 valuation) . Taxable and market values as provided by Weber County Auditor's office. Includes State Assessed Utilities. Estimated market value not available prior to FY 2003; numbers provided in FY 2002 and prior are taxable values. 4 Includes all long-term general obligation debt 125 ---PAGE BREAK--- OGDEN CITY CORPORATION COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2006 (UNAUDITED) Percentage Amount Applicable Applicable Net Debt to to Jurisdiction Outstanding Ogden City Ogden City Ogden City Corporation $ 70,540,000 100% $ 70,540,000 Ogden City School District 2,865,000 100% 2,865,000 Weber County 23,165,000 35% 8,107,750 Weber Basin Water Conservancy Dist. 33,806,619 10% 3,380,662 Total Overlapping General Obligation Debt $ 84,893,412 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 126 ---PAGE BREAK--- OGDEN CITY CORPORATION COMPUTATION OF LEGAL DEBT MARGIN Last Ten Fiscal Years June 30, 2006 (UNAUDITED) Net assessed value for 2005: Residential valuation $ 1,421,521,063 @ 55% 1 781,836,585 Non-residential valuation 1,452,220,256 @ 100% 1,452,220,256 Total taxable $ 2,234,056,841 Debt limit: 4% of total taxable value 2 $ 89,362,274 4% of total taxable value for utilities 89,362,274 $ 178,724,547 Amount of debt applicable to debt limit: Total bonded debt 3 (including Special Assessment 20,277,000 Less: Assets in Debt Service Fund available for payment of principal……………………………… 0 Other deductions allowed by law: Special Assessment (257,000) Total amount of debt applicable to debt limit 20,020,000 General debt 69,342,274 Utilities debt 89,362,274 Total legal debt $ 158,704,547 127 Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Debt limit $ 120,115,778 $ 133,261,504 $ 142,990,488 $ 149,816,983 $ 146,522,762 $ 160,360,586 $ 168,112,203 $ 174,262,311 $ 175,095,774 $ 178,724,547 Total net debt applicable to limit 25,785,000 24,955,000 25,680,000 24,680,000 23,640,000 22,550,000 21,410,000 20,850,000 19,475,000 20,020,000 Legal debt margin $ 94,330,778 $ 108,306,504 $ 117,310,488 $ 125,136,983 $ 122,882,762 $ 137,810,586 $ 146,702,203 $ 153,412,311 $ 155,620,774 $ 158,704,547 Total net debt applicable to the limit as a percentage of debt limit 21.47% 18.73% 17.96% 16.47% 16.13% 14.06% 12.74% 11.96% 11.12% 11.20% 1 Primary residences only. Secondary homes are assessed at 100%. 2 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 provisions that an additional four per cent is allowed if the debt is incurred to provide the entity with water, light or sewer service. 3 Bonded debt applicable to debt limit does not include Enterprise Fund revenue bonds or RDA bonded debt. Sources: Ogden City Comptrollers Office Weber County Auditor's Office ---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 1997 $ 5,891,168 $ 4,685,032 $ 1,206,136 $ 0 $ 0 $ 0 N/A 1998 5,560,745 5,573,539 (12,794) 0 0 0 N/A 1999 6,051,558 6,127,248 (75,690) 0 0 0 N/A 2000 5,978,358 6,357,166 (378,808) 126,730 247,269 373,999 (1.01) 2001 6,005,759 5,841,241 164,518 133,400 243,150 376,550 0.44 2002 6,185,153 7,429,156 (1,244,003) 136,735 238,481 375,216 (3.32) 2003 6,704,260 6,347,438 356,822 140,070 233,422 373,492 0.96 2004 7,303,641 6,227,386 1,076,255 146,740 228,099 374,839 2.87 2005 6,930,588 7,475,593 (545,005) 153,410 222,376 375,786 (1.45) 2006 7,775,694 7,814,521 (38,827) 160,080 216,240 376,320 (0.10) 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 128 ---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 1996 $ 2,220,241 $ 1,951,156 $ 269,085 $ 145,000 $ 103,178 $ 248,178 1.08 1997 2,806,842 2,181,395 625,447 150,000 95,578 245,578 2.55 1998 2,877,179 2,867,179 10,000 160,000 87,203 247,203 0.04 1999 3,377,708 3,292,357 85,351 165,000 78,141 243,141 0.35 2000 3,334,844 2,891,226 443,618 63,270 123,449 186,719 2.38 2001 3,515,391 3,303,623 211,768 66,600 121,393 187,993 1.13 2002 4,243,319 6,075,737 (1,832,418) 68,265 119,062 187,327 (9.78) 2003 4,794,832 3,534,101 1,260,731 69,930 116,536 186,466 6.76 2004 5,544,291 4,155,325 1,388,966 324,610 195,267 519,877 2.67 2005 5,541,685 4,353,094 1,188,591 338,607 181,743 520,350 2.28 2006 5,801,639 4,181,699 1,619,940 353,057 167,558 520,615 3.11 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 129 ---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 1997 $ 2,349,474 $ 1,646,142 $ 703,332 $ 190,001 $ 38,774 $ 228,775 3.07 1998 2,912,235 2,193,616 718,619 200,000 24,713 224,713 3.20 1999 2,803,705 2,304,789 498,916 210,000 16,713 226,713 2.20 2000 2,765,325 2,395,809 369,516 175,000 7,788 182,788 2.02 2001 2,856,440 2,253,569 602,871 - - - N/A 2002 3,096,018 4,980,428 (1,884,410) - - - N/A 2003 3,543,164 2,898,915 644,249 155,000 161,700 316,700 2.03 2004 3,611,435 2,950,847 660,588 160,000 154,105 314,105 2.10 2005 3,691,825 3,198,080 493,745 170,000 146,265 316,265 1.56 2006 3,828,593 3,067,261 761,332 175,000 137,935 312,935 2.43 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 130 ---PAGE BREAK--- OGDEN CITY CORPORATION INDUSTRIAL REVENUE BONDS OUTSTANDING As of June 30, 2005 (UNAUDITED) Date Outstanding Issued Retired Outstanding Company Issued July 1, 2005 in 2006 in 2006 June 30, 2006 Albion Manufacturing 12-01-98 $ 2,488,116 $ - $ 135,553 $ 2,352,563 Enable Industries 10-29-97 770,000 - 80,000 690,000 Infiltrator Systems Inc. 06-06-95 1,235,000 - 100,000 1,135,000 Sources: Financial institutions, bond contracts, accounting firms 131 ---PAGE BREAK--- Demographic and Economic Information (Unaudited) 132 ---PAGE BREAK--- OGDEN CITY CORPORATION DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) Per Capita Fiscal Personal Personal School Unemployment Year Population 2 Income 3 Income 3 Enrollment 4 Rate 5 1997 67,468 Not available Not available 12,834 5.6% 1998 68,226 Not available Not available 12,800 6.9% 1999 69,262 Not available Not available 12,809 6.5% 2000 69,262 Not available Not available 12,809 6.0% 2001 77,226 Not available Not available 12,835 7.2% 2002 79,757 Not available Not available 12,816 9.2% 2003 1 80,599 $ 5,053,300,000 $ 24,856 13,141 9.6% 2004 81,416 5,265,200,000 25,584 12,877 8.1% 2005 82,007 5,331,000,000 26,551 12,604 6.8% 2006 82,007 5,824,100,000 27,635 12,059 Not Available 5 Sources: Utah Department of Workforce Services, Ogden City Planning, Ogden City School District and U.S. Census Bureau 1 GASB 34 and 44 conversion; comparison data in prior years provided as available 2 Calendar year estimates prepared by the Ogden City Planning Division FY 2006 population is the calendar year 2005 estimate). Population from the 1990 census was 63,909. The population figures have been revised to bring them more in line with the census. Population from the 1980 census was 64,407. FY 2001 population is from the 2000 census. 3 Personal income and per capita personal income numbers are for Weber County. This data is not available on a city level. Ogden City is the largest city in Weber County. Calendar year numbers FY 2006 is calendar year 2005 numbers); FY 2005 is a preliminary number, FY 2006 is a forcasted number. Prior year data is adjusted to actual as available. 4 Calendar year data. 5 Rates are raw annual calendar year averages. The unemployment rate for calendar year 2005 is not yet available. The unemployment rates for the years 1990-1996 were revised by the Utah Dept. of Employment Security based on the 1990 census data. 133 ---PAGE BREAK--- OGDEN CITY CORPORATION LARGEST EMPLOYERS FOR 2005 (UNAUDITED) 1995 1 Employment Employment Company Type of Business Range Range Ranking Internal Revenue Service Federal government 5,000-6,999 Not available Weber County School District Public education 3,000-3,999 Not available Autoliv Motor vehicle equipment manufacturing 2,000-2,999 Not available McKay Dee Hospital Center Hospital 2,000-2,999 Not available Weber State University Public education 2,000-2,999 Not available Convergys Telephone call center 1,000-1,999 Not available Fresenius USA Manufacturing Inc. Medical instrument manufacturing 1,000-1,999 Not available Ogden City School District Public education 1,000-1,999 Not available State of Utah State government 1,000-1,999 Not available Wal-Mart Discount department store 1,000-1,999 Not available 1 The Utah Department of Workforce Services provides employer data by county in the State. The largest employers listed above are within the boundaries of Weber County. Ogden City is the major city within Weber County. Comparative data from 10 years ago not available at this time. 2 Information indicating each employer's percentage of total employment is not available. Source: Utah Department of Workforce Services 134 ---PAGE BREAK--- Operating Information (Unaudited) 135 ---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 1997 74 25 77 43 289.5 45 553.5 1998 76 26 80 43 294.5 43 562.5 1999 78 46 83 43 294 43 587 2000 78.5 50.5 92.66 43 297 33.34 595 2001 83.5 45 92.66 43 293 33.34 590.5 2002 80.8 50.2 98.66 46 299 33.34 608 2003 82.8 37.2 97.66 49 301 33.34 601 2004 78.8 32.2 87 47 302 38 585 2005 83.3 31.7 86 39 281 50 571 2006 86 29 86.66 36 289 51.34 578 Source: Ogden City Adopted Budget Full-Time Authorized Employees by Program 0 100 200 300 400 500 [PHONE REDACTED] 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year Employees Transportation Public Safety Leisure Opportunities Environmental Protection Community and Economic Development General Administration 136 ---PAGE BREAK--- Ogden City Operating Indicators by Function/Program Last Ten Fiscal Years (UNAUDITED) Function 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Police Part I: Crimes of Violence 382 389 432 425 443 358 387 392 372 250 1 Part I: Crimes of Non-Violence 6,067 6,218 5,651 4,981 5,088 4,886 4,900 4,790 5,177 4,853 1 Total all UCR Offenses 6,449 6,607 6,083 5,406 5,531 5,244 5,287 5,182 5,549 5,103 1 Total Averages of UCR Crimes per 1,000 Population Violent Crimes per 1,000 5.3 5.3 5.8 5.6 5.7 4.6 4.8 4.9 4.3 4.4 1 Non-Violent Crimes per 1,000 84.4 84.9 75.8 65.6 65.9 62.2 61.3 59.9 64.0 68.0 1 All UCR Crime per 1,000 89.7 90.2 81.6 71.2 71.6 66.8 66.1 64.8 68.3 72.4 1 137 Fire Incident Reponses 2 2 2 2 9,177 10,469 11,199 10,917 12,113 12,152 Inspections/Preplanning Property Visits (excludes Public Nuisance inspections) 2 2 2 2 2 2 2,285 3,372 2,943 1,072 Fire Investigation Hours 2 2 2 2 2 2 509 387 395 226 Public Education Hours 2 2 2 2 2 2 2 2 793 635 1 2005 Projected; 2004 revised to actual 2 Information not available for prior years Notes: Information on this report presents available indicators of demand or level of service for Public Safety. This information is not tracked for General Administration, Transportation, Environmental Protection, Leisure Opportunities or Community Development. Sources: Ogden City Police Department, Uniform Crime Report Ogden City Fire Department ---PAGE BREAK--- Ogden City Capital Asset Statistics by Function/Program Last Ten Fiscal Years (UNAUDITED) Function 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Police Stations 1 1 1 1 1 1 1 1 1 1 Number of policemen and officers 107 113 114 116 112 125 125 124 122 126 (does not include reserve police officers) Fire Stations 5 5 5 5 5 5 5 5 5 5 Number of firemen and officers 105 109 109 103 106 111 111 110 104 115 138 Source: Ogden City Comptroller's Division ---PAGE BREAK--- OGDEN CITY CORPORATION MISCELLANEOUS STATISTICS June 30, 2006 (UNAUDITED) 1996 Comparative Data Date of Incorporation: February 6, 1851 Form of government: Council - Mayor Area (in square miles): 27 27 Miles of streets: 273 227 Number of street lights: 2,965 2,642 Fire protection: Number of stations 5 5 Number of firemen and officers 116 105 Police protection: Number of stations 1 1 Number of policemen and officers 132 107 (Does not include reserve police officers) Education (elementary only): Attendance centers 15 15 Number of teachers 325 271 Number of students 6,146 6,292 Municipal water department: Number of consumers 23,513 20,929 Average daily consumption (in gallons) 12,589,602 12,090,216 Miles of water mains 350 251 Sewers: Sanitary sewers (in miles) 335 224 Storm sewers (in miles) 116 57 Building permits issued: 2,029 1,673 Recreation and culture: Number of parks 40 with 238.67 acres 38 with 232.6 acres Number of libraries 1 1 Number of volumes 413,870 354,020 Employees: Classified service 518 499 Exempt 314 360 Sources: Various Ogden City departments Ogden School District Weber County Library 139 ---PAGE BREAK--- Ogden City Corporation Schedule of Insurance Coverage as of June 30, 2006 (UNAUDITED) Expiration Coverage Carrier Limits Deductible Date Description General Liability $ 6,000,000 $ 15,000 Indefinite Covers bodily injury, property Law Enforcement 6,000,000 15,000 Indefinite damage, personal injury, errors Public Official URMMA 6,000,000 15,000 Indefinite and omissions, and personal Auto Liability (Ogden) 6,000,000 15,000 Indefinite injury protection. This is a Auto Comprehensive Claims Made policy. Excludes Auto Collision Airport. Auto First Party Auto Uninsured Motorist Planning and Zoning URMMA 6,000,000 15,000 Indefinite Airport Liability ACE Ins. Co. 15,000,000 0 Oct 1, 2006 Covers general liability Contractual (AAPN00987116) 15,000,000 0 occurrences at airport. Ground Hangar Keepers 15,000,000 0 Off-duty Vehicle Coverage Federal Ins. 1,000,000 0 July 1, 2006 Liability coverage for off-duty (Chubb Group) vehicles. 74969965 Blanket Property Federal Ins. 136,945,608 5,000 July 1, 2006 Covers buildings and contents Real & Business Personal (Chubb Group) listed on schedule as a result Property 35833430 of covered causes of loss. Municipal Mobile 223,400 5,000 July 1, 2006 Covers City Owned Mobile Equipment Equipment as a result Scheduled & Unscheduled of covered causes of loss. Electronic Data 1,455,600 5,000 July 1, 2006 Covers EDP Equipment Processing as a result of covered causes of loss. Extra Expense 250,000 5,000 July 1, 2006 Covers necessary expenses incurred from a covered cause of loss. Valuable Papers 15,000 5,000 July 1, 2006 Covers costs to research and restore lost information from a covered cause of loss. Auto Physical Damage Federal Ins. 500 July 1, 2006 Covers property damage to Vehicles Under $50,000 Scheduled Comprehensive & (Chubb Group) Vehicles City owned vehicles including Collision Perils 74969966 Strike Force Vehicles. Vehicles Over $50,000 314,900 5,000 Antique Cars Federal Ins. 917,000 1,000 July 1, 2006 Covers property damage for Schedule included under (Chubb Group) antique cars owned by the City Property Policy 35833430 140 ---PAGE BREAK--- Expiration Coverage Carrier Limits Deductible Date Description Fine Arts Floater National Scheduled $ 1,000 Oct 1, 2006 Covers owned firearms, murals, Farmers Union $1,847,530 statues, tiara, belt buckle, pet 1SI0473530 statue, owned/un-owned misc. art displays & Honeywell alarm system for Direct Physical Loss Boiler & Machinery Hartford 50,000,000 2,500 July 1, 2006 Covers loss of pressure, Steam Boiler mechanical or electrical equipment as per statement of values. Commercial Crime St. Paul 1,000,000 25,000 Jan 1, 2007 Covers loss caused through Employee Theft Travelers failure of any employee to Faithful Performance of 104448569 perform duties faithfully or Duty Incl. Forgery & account properly for all monies Alterations & Computer and property received. Fraud Coverage Monies and Securities 50,000 25,000 Jan 1, 2007 In & Outside Public Official Bond St. Paul 3,147,000 N/A Oct 1, 2008 Covers loss caused through (Michael Goodwin, Treasurer) Travelers (3 yr pre- failure of City Treasurer to 103929954 paid term) perform duties faithfully or to account properly for all monies. Excess Workers Midwest Statutory 350,000 & Apr 1, 2007 Coverage for employee accident Compensation Employers work comp; 500,000 or illness as per workers Casualty 1,000,000 Self Insured compensation law above self- Company Employers Retention insured retention limit. Liability Business Interruption Federal Ins. 113,558 5,000 July 1, 2006 Covers loss of income for Baseball Rental Value (Chubb Group) Stadium as required by contract. (Municipal Building 35833430 Authority) 141 ---PAGE BREAK--- Ogden City Staff per 1000 Residents Last Ten Fiscal Years (UNAUDITED) Total Full-Time Staff Fiscal Authorized per 1000 Year Population 1 Employees 2 Residents 1997 67,468 553.5 8.20 1998 68,226 562.5 8.24 1999 69,262 587 8.48 2000 69,262 595 8.59 2001 77,226 590.5 7.65 2002 79,757 608 7.62 2003 80,599 601 7.46 2004 81,416 585 7.19 2005 82,007 571 6.96 2006 82,007 578 7.05 1 Calendar year estimates prepared by the Ogden City Planning Division FY 2006 population is the calendar year 2005 estimate). Population from the 1990 census was 63,909. The population figures have been revised to bring them more in line with the census. FY 2001 population is from the 2000 census. 2 Total full-time authorized positions as approved by City Council when fiscal year budget is adopted. Authorized positions may be temporarily vacant. 142 ---PAGE BREAK--- Ogden City Cost per Resident to Run City Government Last Ten Fiscal Years (UNAUDITED) Total General Government Cost per Expenditures Resident (Excluding to Run Fiscal Capital City Year Population 1 Outlay) 2 Government 1997 67,468 2 N/A 1998 68,226 2 N/A 1999 69,262 2 N/A 2000 69,262 2 N/A 2001 77,226 2 N/A 2002 79,757 2 N/A 2003 80,599 $ 45,799,388 $ 568.24 2004 81,416 49,023,867 602.14 2005 82,007 50,137,069 611.38 2006 82,007 51,379,452 626.53 1 Calendar year estimates prepared by the Ogden City Planning Division FY 2006 population is the calendar year 2005 estimate). Population from the 1990 census was 63,909. The population figures have been revised to bring them more in line with the census. FY 2001 population is from the 2000 census. 2 GASB 34 and 44 conversion. Ten years of comparative data is not yet available. 143