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HomeMy WebLinkAbout2021-06-14 (Special) Meeting Agenda Packet Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. 1000 Englewood Pkwy – Community Room Englewood, CO 80110 AGENDA City Council Special Meeting Monday, June 14, 2021 ♦ 6:00 PM This City Council Special meeting will be a hybrid meeting. City Council, staff, and the public are welcome to attend the meeting either in person or virtually. To view the meeting, please follow this link to our YouTube live stream link: https://www.youtube.com/watch?v=qtfJxmz2hLI I. Call to Order II. Pledge of Allegiance III. Roll Call IV. Organized Garbage & Recycling Collection - Request for Proposals Content Review - 6:00 to 7:00 p.m. - Information and Direction a. Director of Public Works Maria D'Andrea will be present to discuss the Citizen's Committee's established various items & options in the revised Request for Proposals to solicit proposals from trash haulers. Presentation: 30 minutes Discussion: 30 minutes IVa V. Discussion of Options for Rescinding Emergency Ordinance 10 - 7:00 to 7:30 p.m. - Direction a. City Manager Shawn Lewis will present options for rescinding the emergency ordinance, including how to allow for the continuation of one or more code suspensions provided for in the City Manager's Emergency Orders. Presentation: 5 Minutes Discussion: 25 minutes Va VI. Discussion of Election of the Mayor - 7:30 to 8:00 p.m. - Direction a. Council will discuss a proposed Charter amendment to provide for the direct election of the Mayor and City Attorney Tamara Niles and City Clerk Stephanie Carlile will be present for questions. Presentation: 5 minutes Discussion: 25 Minutes VIa VII. Break - 10 minutes Page 1 of 374 Englewood City Council Special Meeting Agenda June 14, 2021 Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. VIII. WIFIA Loan Application - 8:10 to 8:30 p.m. - Information and Direction a. Director of Utilities and South Platte Renew Pieter Van Ry and representatives from Stantec will be present to discuss the Utilities WIFIA loan application, including projects to be funded and the application fee. Presentation: 5 minutes Discussion: 15 minutes VIIIa IX. 2020 Audited Financial Statements Review - 8:30 to 8:50 p.m. - Information a. Finance Manager Kevin Engels and Audit Principal Jim Hinkle will be present to discuss with City Council the 2020 Audited Financial Statements. Presentation: 10 minutes Discussion: 10 minutes VIa X. 2022 Budget Workshop Part I - 8:50 to 10:20 p.m. - Information a. Director of Finance Jackie Loh and members of the Leadership Team will be present to discuss the first of two meetings of the preliminary 2022 Budget. Presentation: 90 Minutes Xa XI. Executive Session a. The City Attorney recommends Council adjourn into executive session for a conference with the City Attorney and for the purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-402(4)(b); Updating on the status of claims and litigation in which the city is involved. XIa XII. Reports from Board and Commission Council Liaisons XIII. Council Member’s Choice XIV. City Manager’s Choice XV. City Attorney’s Choice Page 2 of 374 STUDY SESSION TO: Mayor and Council FROM: Maria D'Andrea DEPARTMENT: Public Works DATE: June 14, 2021 SUBJECT: Organized Garbage & Recycling Collection - Request for Proposals Content Review DESCRIPTION: The Citizen's Committee has established various items & options in the revised Request for Proposals to solicit proposals from trash haulers. Staff will review these items with Council and seek concurrence before finalizing and issuing the RFP. RECOMMENDATION: Staff recommends that the City Council provide guidance to staff on issuance of the RFP for organized collection of garbage & recycling as well as direction on placing this issue on the November ballot. PREVIOUS COUNCIL ACTION: • April 22, 2019: staff presented a Study Session item to the City Council on single source trash hauling. Recommended next steps were 1) to form a citizen advisory group and 2) perform outreach in the form of a survey & public meetings to solicit input from the community on this topic. • January 6, 2020: City Council directed staff to solicit citizens for a citizen's advisory committee which would be responsible for providing Council with recommendations regarding upcoming decisions about trash hauling services in the city. • June 22, 2020: City Council approved the organization of the Citizen's Committee with eleven (11) members of the public. • December 7, 2020: City Council approved the recommendations from the Citizen's Committee to: 1) reject the proposals received in July 2020 and 2) develop a new RFP based on input from the Committee. SUMMARY: The Citizen's Committee for Organized Collection of Garbage and Recycling has evaluated the previous Request for Proposals and Program terms and is recommending a series of changes. Staff will present the modifications for concurrence from the City Council and present an overview of the proposed timeline. ANALYSIS: The intent of the citizen's committee was to: • Assist staff with reviewing the proposals received from waste haulers in response to a formal Request for Proposals (RFP) for single trash hauling service within the city; and • Make recommendations to the City Council on next steps in the process. Page 3 of 374 Proposals were received from waste haulers, in response to the city's formal Request for Proposals, on July 16, 2020. The Citizen's Committee met several times to review and discuss the proposals. Based on their analysis, the Committee voted unanimously at their November 9, 2020 meeting to: 1) reject the proposals received; and 2) develop a new RFP based on direction & input from the Committee. The City Council considered and approved these recommendations at the December 7, 2020 City Council meeting. To date, the Committee has met 18 times since inception and is recommending the following elements for inclusion in the RFP: 1. Base Service Options. Solicit pricing on two different base service programs: o Pay-as-You-Throw which would allow residents to choose either a 96-gallon or 32-gallon size container. A higher rate would be charged for the larger container. o Uniform Container which would provide a 96-gallon container to each household. The same rate would be charged to each household. o In both programs, garbage would be collected on a weekly basis and recycling on a bi-weekly basis. 2. Collection Points. Allow households to place garbage & recycling at either their alley location or curbside. The hauler would be required to service both streets and alleys. 3. Contract Term. Solicit pricing for a 5-year, 7-year, and 10-year contract term. 4. Contract Pricing Increases. For the initial two years of the contract, there is a fixed price, years 3-5 are allowed increases of the lesser of 3% or the Denver/Aurora/Lakewood CPI, and the maximum total increase of 5% for a 5-year contract, a maximum total increase of 7% for a 7-year contract or 10% for a 10-year contract. 5. Large/Bulky Item Disposal. As a part of the base service (i.e. included in the monthly charge), each household would be given two vouchers each year to be used for pickup and disposal, by the hauler, of up to 1) 10 bags of trash, and 2) 10 bags or bundles of yard waste, and 3) up to three items from a defined list of large & bulky items. 6. Recycling Mandatory. Recycling would be required of all households. If a household does not wish to recycle, they could opt to not receive the bin but no credit would be given for not participating in the recycling program 7. "Opt Out" Provision after Initial Year. All households would be required to participate in the fist year of the program. After the initial year, households could "opt out" of the service upon proof that they had paid for alternate garbage service. 8. Composting. Haulers will be allowed to propose to provide composting service, at an additional cost to households. The Committee also recommended that a separate RFP be issued solely for compost collection. 9. Green/Yard Waste. Collection of green waste from May 1 through November 30 of each year at an added cost to households who chose to participate. Materials would be disposed of at a re-use facility. 10. Green/Yard Waste Events. Solicit pricing for two events per year where households could bring their green waste to a designated site for disposal. 11. Hauler Vehicles. When evaluating the proposals, the environmental attributes and emission profiles of the hauler's vehicles be taken into consideration. 12. Additional Garbage-beyond what will fit in the Container. Solicit pricing for 1) up to 4 bags of garbage and bundles of yard waste, every week for each household, or 2) provide 10 tags per household to be used on additional bags or bundles where additional service is needed. 13. Roll Offs/Dumpsters. Pricing for a 10-yard or 20-yard dumpster will be included in the RFP. All households in Englewood would receive this rate. Page 4 of 374 14. Customer Service Options. Options should include methods for citizens to connect via phone, on-line chat, and a web-based form and an app with a required response time of no more than one business day. 15. Penalties. Penalties incurred by the hauler would go towards a low-income assistance program and education & outreach efforts to citizens, at staff's discretion. 16. Recommend that the city require multi-family dwellings to offer recycling services through whatever means they think appropriate such as licensing or code amendments. 17. Administrative Fee. An Administrative Fee would be charged to each household in the initial year of the program and then re-evaluated thereafter. 18. Multi-Family Dwellings. Exclude multi-family dwellings of 4-7 units from the RFP and should City Council move forward with a single hauler, recommend that the city reach out to these properties to encourage them to participate, after implementation of the program. 19. Proposal Evaluation Criteria. Include the following elements and points to evaluate proposals: Price 50 Points Proposed Work Plan/Approach • Adherence to RFP Requirements • Customer Service • Levels of Service • Alternative Approaches 30 Points Qualifications & Personnel 10 Points Quality of Equipment & Vehicles and Use of Alternative Fuel Vehicles 10 Points Total 100 Points In addition to soliciting proposals, the City Council could direct staff to place the topic of organized trash collection on the November ballot. FINANCIAL IMPLICATIONS: There is no financial implication for releasing the RFP. Should Council or voters move forward with organized trash collection, administrative costs of the program would be included in customer base fees. CONNECTION TO STRATEGIC PLAN: Sustainability: a city that protects its natural environment Evaluate organized garbage and recycling collection program OUTREACH/COMMUNICATIONS: Staff conducted extensive community outreach and engagement throughout 2019 and 2020 through the "Talkin' Trash" outreach campaign. This included public meetings, surveys, social media and direct mail pieces. If the City Council moves forward with issuance of the RFP, staff will begin education, outreach and polling efforts over the summer and fall months to solicit input from the community before bringing back a recommendation for action by the City Council. ATTACHMENTS: Presentation Large/Bulky Item List Proposed Timeline Page 5 of 374 Organized Garbage & Recycling Collection – RFP Content Review June 7, 2021 Page 6 of 374 •Organized collection evaluation was discussed by ETAC, BAC, KEB and CASE •Initial RFP was developed by staff with input from representatives of these groups •Citizen’s Committee established by Council in June 2020 •Committee recommended that the City reject all proposals and re- write the RFP to: •better incorporate elements that will better serve residents; and •potentially reduce costs Background –How did we get here?Page 7 of 374 •Dane Borman •Christine Brinker •Marcy Brown •Carson Green •Brenda Hubka •Kanji Kawanabe •Felicia Laib •Matt Adams (former member) •Geoff Frazier (former member) •Cheryl Stewart (former member) •Steve Ward (former member) Citizen’s Committee Membership Page 8 of 374 Base Service Options Pay -As-You -Throw: •Allows households to choose either a 32-gallon or 96-gallon garbage & recycling container •Higher rate for larger container Uniform Container: •All households receive a 96-gallon garbage & recycling container Committee Recommendation: •Solicit pricing for both options Page 9 of 374 Collection Points •Curb-side •Alley Committee Recommendation: •Allow household to choose where they set out their garbage & recycling •Hauler required to collect in both street & alley Page 10 of 374 Contract Term •Multi-year contract, subject to annual appropriation Committee Recommendation: •Solicit pricing for a 5-year, 7-year or 10-year term Page 11 of 374 Contract Pricing Increases Committee Recommendation: •Pricing for initial 2 years is fixed at proposed rates •Increases would be allowed in years 3-5 based on: •The lesser of 3%, or •The Denver/Aurora/Lakewood Consumer Price Index •Maximum total increase would be X% for a X-year contract Page 12 of 374 Large/Bulky Item Disposal •Part of Base Service •Vouchers carry over from year to year •Household contacts hauler to arrange date of pickup Committee Recommendation: •Two (2) vouchers per household, per year to dispose of the following: •10 bags of trash, and •10 bags or bundles of yard waste; and •Up to 3 items from listPage 13 of 374 Large/Bulky Item Disposal Page 14 of 374 Recycling Committee Recommendation: •Mandatory for all households •Households may “opt out” and not receive container but would not receive a credit Page 15 of 374 Service “Opt Out” after Initial Year Committee Recommendation: •Mandatory for all households during first year of program •After first year, households could “opt out” upon valid proof of alternate service Page 16 of 374 Composting Committee Recommendation: •Haulers allowed to propose service •Also recommend issuance of a compost-only RFP aimed at composting companies •Optional Service •Household can choose as an additional service, for an additional cost •Year -round, weekly collection service Page 17 of 374 Green/Yard Waste Committee Recommendation: •Haulers allowed to propose service •Material hauled to a non-landfill facility •Optional Service •Household can choose as an additional service, for an additional cost •Weekly collection, May 1 through Nov. 30 Page 18 of 374 Green/Yard Waste Events Committee Recommendation: •Solicit pricing for 2 events per year where households could bring their green waste to designated site for disposa Page 19 of 374 Hauler Vehicles Committee Recommendation: •When evaluating the vendors, include among other things, the environmental attributes and emissions profiles of the trucks Page 20 of 374 Additional Garbage Committee Recommendation: Solicit pricing for: •Up to 4 bags of garbage or bundles of yard waste, every week for each household; or •Provide 10 tags per household, per year to be used on additional bags or bundles of yard waste when needed •Beyond what will fit in provided Container Page 21 of 374 Roll -Offs Committee Recommendation: •Solicit pricing for 10-yard & 20-yard dumpsters, to be available at that price for Englewood residents Page 22 of 374 Customer Service Options Committee Recommendation: •Customer service options should include via phone, chat, a simple form on both the website and an app with a required respond time of no more than one business day Page 23 of 374 Penalties Committee Recommendation: •When there is a missed pickup or a failure to resolve a customer issue in the time frames specified, that month’s service charges will be credited to the affected household with the remainder of the penalty amount going towards low-income household payment assistance and education & outreach about waste reduction and recycling, at staff’s discretion Page 24 of 374 Administrative Fee Committee Recommendation: •Charge the Administrative Fee to all eligible households in the first year, subject to re-evaluation thereafter Item Yearly Cost Cost/HH/Year Personnel $210,500 $22.49 Code Vehicle (annualized cost)$1,282 $0.14 Communications (quarterly)$18,000 $1.92 Yearly Total $229,782 $24.55 Monthly Total $19,148 $2.05 Page 25 of 374 Multi-Family Dwellings Committee Recommendation: •Exclude multi-family dwellings of 4-7 units from the RFP, and, recommend that the city reach out to encourage participation, if organized collection proceeds •Require multi-family dwellings to offer recycling services through whatever means appropriate such as licensing or code amendmentsPage 26 of 374 Proposal Evaluation Criteria Committee Recommendation: •Include the following elements and points to evaluate proposals: Item Points Price 50 Proposed Work Plan/Approach •Adherence to RFP Requirements •Customer Service •Levels of Service •Alternative Approaches 30 Qualifications & Personnel 10 Quality of Equipment & Vehicles and Use of Alternative Fuel Vehicles 10 Total 100Page 27 of 374 Schedule Page 28 of 374 Questions/Discussion Page 29 of 374 Accepted Large Item Number/Size of Item(s) Accepted Trash Bag Maximum of 10 bags, each weighing no more than 25 lbs each Yard waste (grass clippings, branches, tree stumps)Maximum of 10 bags or bundles, each no more than 4 feet long & weighing no more than 25 lbs each Sofa, couch or loveseat One (1); includes all pieces of a sectional sofa Recliner or chair One (1) Dining table and chairs One (1) set Mattress and box spring One (1) set Dresser, armoire, buffet, china cabinet, bookcase, or television stand One (1) Headboard, footboard and side rails One (1) set Coffee table, end table, or sofa table One (1) Toilet or sink One (1) Bathtub One (1) Large toy (playhouse, kiddie pool, etc.)One (1) Non-motorized bicycle or scooter One (1) Trash container/bin One (1) Pallet One (1) Exercise equipment (treadmill, stationary bike, etc.)One (1) Large metal appliance (stove, dryer, hot water heater, etc.)One (1) Carpet (rolled up)Maximum of 10 bundles, each no more than 4 feet long & weighing no more than 25 lbs each Rug (rolled up)One (1) Home construction debris Maximum of 10 bundles or bags, each no more than 4 feet long & weighing no more than 25 lbs each And, up to three (3) of the line items listed below Each voucher to be valid for pickup of: • Up to ten (10) bags of trash, as specified below; and • Up to ten (10) bags or bundles of yard waste, as specified below; and • Up to three (3) line items from the list below Large Item List Page 30 of 374 Organized Garbage Recycling Collection - Proposed Schedule 06/04/2021 2020 Dec Jan Feb Mar Apr June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June June June Aug Sept Major Tasks: Meeting with waste haulers Committee to review draft RFP 6/14/2021 Issue modified RFP Contract Award Begin collection services Develop elements of new RFP Receive proposals Evaluate proposals If decision by Council is to proceed with Single Hauler Contract then following actions would occur: Public Outreach: educate & solicit input Council Consideration Program Education & Awareness Container implementation in field 2021 City Council to review terms of new RFP & consider issuance or ballot initiative 2022 Page 31 of 374 STUDY SESSION TO: Mayor and Council FROM: Shawn Lewis DEPARTMENT: City Manager's Office DATE: June 14, 2021 SUBJECT: Discussion of Options for Rescinding Emergency Ordinance 10 DESCRIPTION: Staff will present options for rescinding the emergency ordinance, including how to allow for the continuation of one or more code suspensions provided for in the City Manager's Emergency Orders. RECOMMENDATION: Staff recommends amending Emergency Ordinance #10 to remove Section 5 granting additional powers/authority to the City Manager. Doing so will achieve the following: 1. Address concerns from Council regarding restoring full policy authority to City Council; 2. Allow three emergency orders to remain in place as requested by the business community (outdoor flame heaters, expanded seating and open consumption areas) while repealing all other emergency orders issued by the City Manager; 3. Allow the City Council's emergency declaration in Section 3 of the Emergency Ordinance to remain in place so that businesses, non-profits and the City of Englewood can access any funding that may be contingent upon an emergency ordinance/declaration in the future. PREVIOUS COUNCIL ACTION: • Approval of Emergency Ordinance #10, Series of 2020 (March 18, 2020) • Approval by motion to direct the City Manager to issue an Emergency Order pursuant to his authority under Ordinance 10, Series 2020, to mandate the wearing of masks in commercial spaces and while riding on or within public transportation. (July 6, 2020) • Recent Council Members' Choice discussions regarding repeal of Emergency Order 10 SUMMARY: Councilmembers have requested staff bring back options for rescinding Emergency Order 10. Options include the following: 1. Complete repeal of Emergency Ordinance and direct staff to bring Council one or more of the following policies: o Allow open flame heaters o Allow continued expanded outdoor seating on private property o Allow continued outdoor alcohol consumption in one or both areas currently designated Page 32 of 374 2. Amend Emergency Ordinance 10 to repeal all emergency orders and declarations except those regarding outdoor seating, open consumption areas and open flame heaters while removing City Manager authority to issue additional orders and declarations (Section 5 of the Emergency Ordinance) 3. Delay repeal of Emergency Ordinance ANALYSIS: Background On March 10, 2020, Governor Jared Polis issued an Executive Order ("EO"), declaring a state of disaster emergency for the State of Colorado due to the risk of the spread of COVID-19. On March 18, 2020, the City of Englewood City Council passed Emergency Ordinance #10, Series of 2020 declaring a public health emergency existed due to the spread of COVID-19 within the City of Englewood, and granting the City Manager full power and authority to take issue orders necessary for the protection of life and property in response to COVID-19. Emergency Orders Issued Under Emergency Ordinance The following emergency orders were issued under the City Manager's authority; Council was consulted, voted on, or was advised on each of these orders: 1. Lifting Restrictions on Trash Hauling Days - March 27, 2020 2. Closure of Canine Corral - March 27, 2020 3. Public Consumption Area 1 - June 12, 2020 4. Public Consumption Area 2 - June 26, 2020 5. Emergency Mask Order - July 7, 2020 6. Emergency Mask Order - July 13, 2020 7. Emergency Mask Order - July 16, 2020 8. Expanded Outdoor Seating -July 2020 (expiring Dec 1 2020) 9. Expanded Outdoor Seating - September 2020 (extension expiring Oct 21, 2021) 10. Emergency Outdoor Heating - October 2020 Analysis of Options Option #1: Complete repeal of Emergency Ordinance and all emergency orders of the City Manager while directing staff to bring Council policies to allow expanded seating areas, open consumption areas and open flame heating. • Pros: o Meets the stated objectives of three or more Councilmembers to repeal; o Meets needs expressed by the Chamber, EDDA and individual business owners to allow for continuation of certain activities related to pandemic recovery. • Cons: o Per the Interim City Attorney firm, creates some level of risk should federal or state governments require a declaration of emergency in order to access future funding. Option 2: Amend Emergency Ordinance 10 to repeal all emergency orders and declarations except those regarding expanded seating, open consumption areas and open flame heaters while removing City Manager authority to issue additional orders and declarations (Section 5 of the Emergency Ordinance). • Pros: Page 33 of 374 o Meets the stated objectives of one or more Councilmembers to return-to-normal all division of powers between the City Council and the City Manager as outlined in the Charter and the Code of Ordinances; o Meets needs expressed by the Chamber, EDDA and individual business owners to allow for continuation of certain activities related to pandemic recovery. • Cons o Leaves in place the Council-designated declaration of emergency which two or more Councilmembers have noted they desire to end. Option 3: Delay repeal of Emergency Ordinance • Pros: o Follows the recommendation of the Interim City Attorney firm which advises Council that most cities are leaving emergency ordinances in place to ensure that local businesses can access federal and state resources that may--in the future-- be contingent upon such an ordinance; o Meets needs expressed by the Chamber, EDDA and individual business owners to allow for continuation of certain activities related to pandemic recovery. • Cons: o Does not meet the stated objectives of at least two Councilmembers to repeal the Emergency Ordinance swiftly. FINANCIAL IMPLICATIONS: Unknown CONNECTION TO STRATEGIC PLAN: The Strategic Plan and/or Blueprint for Organizational Success includes the following: • Goal 6: Revenue and Finance; Sub-Goal 6.1: Impact of COVID-19; Project: Study the impact of COVID-19 on city finances • Local Economy: A general focus on business recovery due to the pandemic and overall support of local businesses. OUTREACH/COMMUNICATIONS: The City received several emails from community members and business owners related to the Emergency Ordinance, asking Council to keep in place orders related to outdoor seating, areas of open consumption of alcohol and open flame heating. ATTACHMENTS: Emergency Ordinance (Ordinance #10) Page 34 of 374 ORDINANCE NO. 10 SERIES OF 2020 BY AUTHORITY COUNCIL BILL NO. 12 INTRODUCED BY COUNCIL MEMBER STONE AN EMERGENCY ORDINANCE CONCERNING THE CORONAVIRUS (COVID-19) PUBLIC HEALTH EMERGENCY WHEREAS, on March l 0, 2020 Jared Polis, the Governor of the State of Colorado, declared a statewide state of emergency in response to corona virus (COVlD-19); WHEREAS, the World Health Organization has declared the coronavirus (COVlD-19) to be a worldwide pandemic; WHEREAS, the coronavirus (COVlD-19) has been confirmed to exist in Denver County, Arapahoe County and Jefferson County; WHEREAS, the En glewood City Council confirms that the public health of the citizens of E nglewood is the City Council's top priority; WHEREAS, the Englewood City Council is empowered by Section 31-15-40l(l)(b) C.R.S., to do all acts and make all regulations which may be necessary or expedient for the promotion of health or suppress ion of disease; WHEREAS, the Englewood City Council finds and determines that the adoption of this ordinance is necessary for the promotion of health and the suppression of disease; WHEREAS, the Englewood City Council finds and determines that the adoption of this ordinance is proper under Section 3l-15-401 ( I )(b ), C.R.S. and other applicable laws; and WHEREAS, the Englewood City Charter, Section 41 provides for the passage and immediate enacting of emergency ordinances necessary for the immediate preservation of public property, health, peace, or safety. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. Title. This ordinance shall be known and may be cited as the City or Englewood Coronavirus (COVID-19) Ordinance. Section 2. Intent. It is the intent of this ordinance to provide the necessary organization, po wers, and authority to enable the timely and effective use of all available C ity resources to prepare for, respond to, and recover from the declared local public health emergency. This ordinance is intended to grant as broad a power as is permitted within the letter and spirit of section 41 of th e City Charter and the Council-Manager form of government, and this ordinance shall be interpreted in accordance with such intent. The City Council retains the power to direct the City Manager during the pendency of the current corona virus (COVID-19) public health emergency. 1 Page 35 of 374 Section 3. Public Health Emergency Declared. The City Council hereby declares that a public health emergency relating to the coronavirus (COVID-19) exists within the City. Such circumstance is referred to in this ordinance as the "public health emergency." The public shall be notified of this declaration through general dissemination to the news media, posting on the C ity website, or other means of publicity intended to advise the general public. Section 4. Duration of Declaration of Public Health Emergency. The declaration of the public health emergency as provided in Section 3 of this ordinance shaJl remain in effect until the City Council declares that the emergency has passed. Section 5. Powers: Unti l the City Council declares that the public health emergency has passed the City Manager has full power and authority to take the following actions and issue the following orders: (a) any action necessary fo r the protection of life and property, including, but not lim ited to, establishing regulations governing conduct related to th e cause of the public heaJth emergency; (b) an order establishing a curfew during such hours of the days or nights and affecting such categories of persons as may be designated in accordance with direction from the State and/or Federal governments; ( c) an order to direct and compel the evacuation of a ll or a part of the population from any stri cken or threatened areas within the City if the City Manager deems this action is necessary for t h e preservation oflife, property or other public h ealth emergency mitigation, response or recovery activities and to prescribe routes, modes of transportation and destination in connection with an evacuation; (d) an order controlling, restricting, allocating or regulating the use, sale, production or distribution of food, water, clothing, and other commodities, materials, goods, serv ices and resources ; (e) an order requiring the closing of businesses deemed nonessential by the City Manager, following consultation with the City Council; (f) to suspend City board a nd commission meetings to include, but not be limited to, meetings of the Planning Commission, Board of Adjustment and Appeals, Liquor and Marijuana Licensing Authority, or modify meeting rules to allow for telephone, teleconferencing or m eeting by other e lectronic means; (g) to appropriate and expend funds , execute contracts, authorize the obtaining and acquis ition of equipment, services, suppli es and materials without strict compliance w ith procurement regulations or procedures; (h) transfer the direction, personnel, or functions of City departments and agencies for the purposes of performing or facilitating public health emergency services; (i) utiliz e all availa ble resources of the C ity as may be reasonably necessary to cope w ith this pubjjc health emerg ency whether in preparation for, response to, or r ecovery from this p ublic health emergency; G) accept services, gifts, grants and loans, equipment, supplies, and materials whether from private, nonprofit or governmental sources related to the C ity's response to this emergency; (k) to make application for loca l, state or federal assistance; (I) to terminate or suspend any process, operation, machine, device o r event that is or may negatively impact the health, safety and welfare of persons or property within the City; (m) delegate authority to such City officials as the C ity Manager determines reasonably necessary or expedient; (n) limit the use of any City-owned building, facility, or property as to time, manner, and permitted activiti es, including, but not limited to, limiting t he permissible numbe r of p e pple that may lawfully occupy s uch building, facility, or property at any one time; 2 Page 36 of 374 ( o) close and prohibit the use of any City-owned building, facility, or property; (p) exercise such powers and functions in light of the ex igenci es of this public health emergency, including, but not limited to, the waiving of compliance with any time-consuming procedures and formalities, includ ing notices, as may be prescribed by law pertaining thereto; a nd ( q) issue any and a ll other o rders or undertake s uch other functions and activities as the City Manager reasonably believes is required under the circumstances to protect the health, safety, welfare of persons or property within the C ity of Englewood, or to otherwise preserve the public peace or abate, clean up, or mitigate the effects of the public health emergency. Depending upon the changing needs of the community, the restrictions imposed in accordance with the above list of authorizations may be modified from time to time during the term of this emergency ordinance upon the discretion of the City Manager, under the direction of City Council. Section 6. Enforcement of Orders: (a) The members of the City's Police Department, code e nforcement, and such other law enforcement and peace officers as may be authorized by the City Manager are herby authorized and directed to enforce the orders, rules, and regulations made or issued pursuant to this ordinance. All members of the public shall be deemed to have been given notice of all orders, rules, a nd regulations made or issued pursuant to this ordinance upon their dissemination to the news media or publication on the City website. Additional means of publicity will be utilized as are available. (b) Until the City Council declares that the public health emergency has passed, no person shall: (I) enter or remain upon the premises of any establishment not open for business to the general public, unless such person is the owner or authorized agent of the establishment. (2) violate the provisions of this ordinance. (3) violate any of the orders duly issued by the City Manager or designee pursuant to Section 5 of this ordinance. (4) willfully obstruct, hinder, or delay any duly a uthorized City officer, employee or volunteer in the enforcement or exercise of the provisions of this ordinance, or of the undertaking of any activity pursuant to this ordinance. (c) It is unlawful and a misdemeanor offense for any person to violate any provision of this Section 6. Any person convicted of a violation of this section shall be subject to the 2 penalties set forth in section 1-4-1 of the Englewood Municipal Code. Section 7. City Council Meetings and Departments: (a) For the duration of the public health emergency, the City Counci l may meet in accordance with their duly approved electronic meeting policy. Additionally, if a City Council member reasonably determines that his or her personal attendance at an in-person C ity Council m eeting would not be prudent, such Council member may li s ten by telephone, v ideo confer encing, or other electronic means to any Counci l meeting ("Electronic Participation "). Such Co uncil m ember listening via telephone or other electronic means shall be deemed pre.5ent for purposes of determining a quorum. The member of City Council may not participate nor vote in a quasi -judicial public hearing; however, the Council member may maintain the electronic connection and monitor and listen to the hearing. The member of City Council may participate and vote in legislative matters. Electronic Participation is al so avai lable to a C ity Council member during an executive s ession. The City Counc il may discontinue the use of Electronic Participation by one or more members during a meeting where the participation results in delays or interference in the meeting process; e .g., where the telephone connection or connection by other electronic means is repeatedly lost, the quality of the connection is unduly noisy or otherwise problematic to the conduct of the meeting, o r the listening member is unable to hear speakers using a normal speaking voice 3 Page 37 of 374 amplified to a level suitable for the meeting audience in attendance. Whenever a City Council member is allowed to participate in a City Council meeting by telephone or other electronic means pursuant to this Rule, the following additional rules shall be observed: (I) All members of the City Council must be able to hear one another or otherwise communicate with one another, and be able to hear all discussion and testimony in a manner designed to provide maximum notice and participation; (2) Members of the public present at the meeting location must be able hear all discussion, testimony, and votes; (3) All votes held at the meeting shall be conducted by roll call. (4) To the extent possible, full and timely notice shall be g iven to the public setting advising that one or more members of the City Council. may participate in the meeting electronicall y. (5) Participation in a regu lar C ity Counci l meeting by telephone or other electronic means in accordance w ith this Rule s ha ll not be considered to be a "failure to attend" a regular Coun cil meeting for determining whether a vacancy in the office of the Mayor or a Council member has occurred. (b) Whenever the public health emergency makes it imprudent or imposs ible for City Council to meet at a previously scheduled date and time, s uch meeting shall be deemed to be postponed until a quorum of the City Council is able to meet either in-person or electronically. (c) Any official act or meeting required to be performed at any regular location of th e City Council is valid when performed at any temporary location under this section. (d) T he provisions of this section shall apply to all executive, legislative, and judic ial branches, powers and functions conferred upon the City and its officers, employ ees, and authorized agents by the Colorado Constitution, Colorado Statutes, the City of E nglewood Charter, and the City of Englewood Municipal Code. Section 8. Access to Tabor Funds: During the current public health emergency the City Manager shall have access to th e C ity 's emergency funds mandated by the Taxpayer's Bill of Right s (TABOR) as set forth in Article X , Section 20, Subsection (5) of the Colorado Constitution, entitl ed "Emergency reserves." Funds utilized pursuant to this ordinance s hall be replenished no later than the conclus ion of the fiscal year followin g t he end of t he c urrent public health emergency. Section 9. Conflict with Other Laws: If any provis ion of th is ordinance conflicts with the City Charter, the City Charter sha ll control. If any provision of this ordinance conflicts w ith any provision of the City of Englewood Municipal Code, or any provision of t he City C ounci l's Procedures and Rules of Order, this ordinance shall control. Sect ion 10. Poli ce Power F inding. T he City C ouncil hereby fi nds, determines and declares that this ordinance is necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the order, comfort and convenience of the City of Englewood and the inhabitants thereof Section 11. Authority. The City Council h ereby finds , determin es a nd declares that it has the power to adopt this ordi nance pursuant to the provisions of Section 31 -15 -40l(l )(b) C.R.S., and the powers possessed by home rule municipalities in Colorado. Section 12. E mergency Declaration. The City Counci l of the City of Engl ewood hereby finds , d etermines and decJares that an emergency ex is ts and tha t this ordinance is neces sary for the immediate preservation of publi c property, health, welfare, peace or safety for the reasons enumerated in the introductory paragraphs of this ordinance, which are incorporated into this 4 Page 38 of 374 Section 13 by reference. The City Council further determines that the adoption of this ordinance a s a n emergency ordinance is in the best interest of the citizens of the City of E n glewood. Section 13. Effective Date. Pursuant to Section 41 of the Englewood Charter this Ordinance shall take effect and be in full force upon adoption of this ordinance by the affirmative votes of at leas t five (5) members of the City Council. Section 14. Publication of Ordinance. This ordinance shall be publis hed in full within ten 5 (I 0) days after adoption, or as soon thereafter as possible, as required by Section 41 of the Englewood Charter. Introduced, read in full, and passed on first reading on the 17th day of March, 2020. Published in full as a Bill for an Emergency Ordinance on the City's official website on the 18th day of March, 2020. Read by Title and passed on final reading on the 18t h day of March, 2020. Published in full on the City's official website beginning on the l 9tll day of March, 2020 for thirty (30) days. Linda Ols on, Mayor ATTEST: l , Stephanie Carlile, City Clerk of the City of Eng lewood, Colorado, hereby certify that the above and foregoing is a true copy of the Emergency Ordinance introduced, read in full, and passed on final reading on the 18 th day of March, 2020. 5 Page 39 of 374 STUDY SESSION TO: Mayor and Council FROM: Tamara Niles DEPARTMENT: City Attorney's Office DATE: June 14, 2021 SUBJECT: Discussion of potential Charter amendment for the direct election of the Mayor DESCRIPTION: Discussion of direct election of Mayor through a ballot question to amend the City's Charter RECOMMENDATION: City Council will discuss whether to proceed with an Ordinance authorizing a ballot measure at the November 2021 election to amend the City's Charter to provide for the direct election of the Mayor. PREVIOUS COUNCIL ACTION: City Council has discussed the pros and cons associated with a proposed ballot measure asking the electorate of the City to decide whether to change the manner in which the Mayor of the City is selected through a series of Charter amendments at Study Sessions on February 26, 2018, May 11, 2020, May 18, 2020, February 8, 2021, February 22, 2021. City Council held a public hearing at its regular meeting on June 7, 2021, and scheduled this matter for its June 14, 2021 Study Session for further discussion. The City Attorney's office was requested to describe the issues to be addressed in proposed ballot language authorizing the direct election of the Mayor. SUMMARY: The purpose of the Study Session is to determine whether an Ordinance authorizing a ballot measure to amend the City Charter should be prepared and considered, to allow voters at the November 2, 2021 Municipal Election to determine whether voters elect the City's Mayor directly. ANALYSIS: In order to amend the City Charter to provide for the direct election of the Mayor by citizens (in lieu of the current City Charter procedure whereby the Mayor is chosen by City Council among its members), City Council must adopt an Ordinance to authorize submission of the issue to voters, providing ballot language specifically authorizing the amendment of various City Charter sections regarding the Mayor and City Council. To ensure the proposed ballot measure is placed on the November 2021 ballot, City Council should consider an Ordinance for first reading no later than its meeting on July 6, 2021. Should City Council wish to proceed and consider an Ordinance containing proposed ballot language to authorize the direct election of the Mayor by voters, the City Attorney's office requires the following direction to draft the proposed ballot language: Page 40 of 374 1. Whether a directly-elected Mayor's powers/authority vary from the current appointed Mayor's authority, specifically whether the Mayor would have veto power (currently no), be entitled to vote (currently yes), or have other authority in addition to that currently held by the Mayor (City Charter Section 24); 2. Whether a council member position currently elected at large would be replaced with a directly-elected Mayor (City Charter Section 19); 3. Whether a directly-elected Mayor would have a four-year term (City Charter Section 22); and 4. Whether a candidate for Mayor requires additional qualifications beyond those possessed by candidates for City Council (currently United States citizen, at least 25 years of age, resident of Englewood for at least 1 year, an holds no other office)(City Charter Section 23). CONCLUSION: City Council has the opportunity to put this matter on the ballot for consideration by voters at the November, 2021 Municipal Election. If adopted by voters, the Mayor would be elected at the 2023 Municipal Election. Should this matter be delayed, the next opportunity to place this on a general election ballot would be November, 2022. FINANCIAL IMPLICATIONS: Adding ballot measures to any election will increase election costs. The City will already be participating in the coordinated municipal election on November 2, 2021 therefore it would be less expensive than submitting the ballot questions at the 2022 general election. All election costs are weighted by how many jurisdictions are participating. Special elections can run as high as $35,000. CONNECTION TO STRATEGIC PLAN: Governance- A city government that is accountable, effective, and efficient. OUTREACH/COMMUNICATIONS: A project page was set up on Englewood Engaged to solicit input from Citizens https://www.engaged.englewoodco.gov/charter-amendment-for-election-of-the-mayor. This was launched through social media and showcased on the City's website. The project included a survey, opportunities for questions, and allowed citizens to provide feedback. As of the June 7, 2021 City Council meeting, 54 people visited the project page, 17 people took the survey, 1 person provided feedback and 2 people submitted questions. ATTACHMENTS: Englewood Engaged project report Study Session of February 26, 2018 Study Session of May 11, 2020 Study Session of May 18, 2020 Study Session of February 8, 2021 Study Session of February 22, 2021 Council Communication of June 7, 2021 Page 41 of 374 Project Report 03 May 2021 - 01 June 2021 Englewood Engaged Charter Amendment for Election of the Mayor Highlights TOTAL VISITS 54 MAX VISITORS PER DAY 23 NEW REGISTRATI ONS 0 ENGAGED VISITORS 20 INFORMED VISITORS 23 AWARE VISITORS 46 Aware Participants 46 Aware Actions Performed Participants Visited a Project or Tool Page 46 Informed Participants 23 Informed Actions Performed Participants Viewed a video 0 Viewed a photo 0 Downloaded a document 0 Visited the Key Dates page 2 Visited an FAQ list Page 0 Visited Instagram Page 0 Visited Multiple Project Pages 4 Contributed to a tool (engaged)20 Engaged Participants 20 Engaged Actions Performed Registered Unverified Anonymous Contributed on Forums 0 0 0 Participated in Surveys 0 0 0 Contributed to Newsfeeds 0 0 0 Participated in Quick Polls 0 0 17 Posted on Guestbooks 0 1 0 Contributed to Stories 0 0 0 Asked Questions 0 2 0 Placed Pins on Places 0 0 0 Contributed to Ideas 0 0 0 Visitors Summary Pageviews Visitors 17 May '21 31 May '21 20 40 Page 42 of 374 Tool Type Engagement Tool Name Tool Status Visitors Registered Unverified Anonymous Contributors Newsfeed Public Hearing Announcement: June 7 at 7:00 p.m. Published 0 0 0 0 Newsfeed Updates Published 0 0 0 0 Qanda Questions Published 3 0 2 0 Guest Book Feedback Published 4 0 1 0 Quick Poll Should this be added to the upcoming municipal election o... Published 17 0 0 17 Englewood Engaged : Summary Report for 03 May 2021 to 01 June 2021 ENGAGEMENT TOOLS SUMMARY 0 FORUM TOPICS 0 SURVEYS 2 NEWS FEEDS 1 QUICK POLLS 1 GUEST BOOKS 0 STORIES 1 Q&A S 0 PLACES Page 2 of 6 Page 43 of 374 Widget Type Engagement Tool Name Visitors Views/Downloads Key Dates Key Date 2 2 Englewood Engaged : Summary Report for 03 May 2021 to 01 June 2021 INFORMATION WIDGET SUMMARY 0 DOCUMENTS 0 PHOTOS 0 VIDEOS 0 FAQS 0 KEY DATES Page 3 of 6 Page 44 of 374 Visitors 3 Contributors 2 CONTRIBUTIONS 2 Englewood Engaged : Summary Report for 03 May 2021 to 01 June 2021 QANDA Questions No Responses Page 4 of 6 Page 45 of 374 Visitors 4 Contributors 1 CONTRIBUTIONS 1 20 May 21 Nathan AGREES 0 DISAGREES 0 REPLIES 0 Englewood Engaged : Summary Report for 03 May 2021 to 01 June 2021 GUEST BOOK Feedback My confusion around this issue has more to do with the role of the Mayor than anythin g else. In short, the Mayor of Englewood is responsible for moderating City Council M eetings and Council as a whole. They function like a Board Chair, who is typically elec ted or appointed by other board members. Our City Manager has most of the "power" or "authority" when it comes to running the city. Therefore, electing our Mayor only m akes sense to me if their role also changes. In short, my feedback is that the role of M ayor change simultaneously with the election. Page 5 of 6 Page 46 of 374 Visitors 17 Contributors 17 CONTRIBUTIONS 17 Englewood Engaged : Summary Report for 03 May 2021 to 01 June 2021 ENGAGEMENT TOOL: QUICK POLL Should this be added to the upcoming municipal election on November 2, 2021? Should this be added to the upcoming municipal election on November 2, 2021? 8 (47.1%) 8 (47.1%) 9 (52.9%) 9 (52.9%) Yes No Question options Page 6 of 6 Mandatory Question (17 response(s)) Question type: Radio Button Question Page 47 of 374 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Alison McKenney Brown DEPARTMENT: City Attorney's Office DATE: February 26, 2018 SUBJECT: Proposed Charter Amendment for Mayor Selection DESCRIPTION: Proposed Charter Amendment for Mayor Selection RECOMMENDATION: Council should seek consensus on whether to modify Charter to allow for the electorate to directly elect the Mayor, and direct staff on the elements to be included within any proposed Charter amendment. PREVIOUS COUNCIL ACTION: None SUMMARY: In November, 2017, Council Member Cuesta suggested that the city council should consider Amending Section 24 of the City's Charter to modify the manner of selecting the Mayor. Council Member Cuesta suggested that the electors of the City of Englewood should be asked whether they want to amend the Charter to allow the electors of the City to elect a Mayor. ANALYSIS: 1. Charter Section 24 provides for a Mayor to be selected by the City Council every two years. The Mayor has no veto power and serves at the will of of the Council. The Mayor's limited authority is to be recognized as head of the City Government for all ceremonial purposes and shall execute and authenticate legal instruments requiring his signature as such official. This form of government is termed a weak mayor form of government, whereby the mayor is one of seven members of the city council, equal in actual authority to the other City Council Members, and can be removed from office if a majority of the city council decide that the mayor is not meeting the expectations of the majority of the city council. 2. Charter Section 19 provides that the City Council shall consist of seven councilmen, one to be elected from each of four districts and the remaining three to be elected at large. 3. To amend the Charter to provide for an elected Mayor the council must decide: a. Whether to create a 7 member council with a Mayor (8 member governing body) or a 6 member council with a Mayor (7 member governing body). b. Whether the Mayor's position should be a 2 or 4 year position. Page 48 of 374 c. Whether the Mayor should be equal in authority to a city council member, or whether the Mayor should be a different role than a council person and limited to a defined set of authorities specific to the Mayor (for example: generally non-voting, ceremonial head of government, sets the agenda, runs the meeting). d. Exactly what authorities the Mayor's position should be assigned. Page 49 of 374 MEMORANDUM TO:Eric Keck, City Manager FROM:Stephanie Carlile, City Clerk DATE:February 2, 2018 SUBJECT: IGA AND BALLOT QUESTIONS/ISSUES DEADLINES NOVEMBER 6, 2018 GENERAL ELECTION I have established these tentative deadlines, which would apply if Englewood elects to submit ballot questions/issues to the County for the November 6, 2018 election. July 2, 2018 First reading of ordinance approving IGA with Arapahoe County and first reading of council bills calling for ballot questions/issues [regular meeting schedule; no amendments] July 16, 2018 Final reading of ordinance approving IGA and final reading of ordinances calling for ballot questions/issues [regular meeting schedule; no amendments] As you are aware, Charter questions/issues have additional Statutory restrictions. June 18, 2018 This would be the absolute earliest date Council could consider a Charter ballot question/issue on first reading. This creates an extremely tight timeframe during which I must comply with various Statutory deadlines. [CRS § 31-2-210 (4)]. To comply with various deadlines, I would ask that the ordinance approving the IGA and the ordinances/resolutions setting all ballot questions/issues be prepared so that they go before Council at their regular City Council meeting on July 2, 2018. cc: Alison McKenney Brown, City Attorney Page 50 of 374 STUDY SESSION TO: Mayor and Council FROM: Alison McKenney Brown DEPARTMENT: City Attorney's Office DATE: May 11, 2020 SUBJECT: Review of Charter Amendment Process DESCRIPTION: Review of Charter Amendment Process RECOMMENDATION: City Staff seek direction on whether the City Council wishes to modify the process for selection of a Mayor, as provided by Charter, and if so, seeks consensus on modifying those sections of the Charter that will require amendment and a timeline for such m odifications. PREVIOUS COUNCIL ACTION: None. SUMMARY: If the City Council decides to have the Mayor elected separately by the City's registered electors, rather than by the City Council after each election, the Charter must be amended. The required amendments must be approved by a majority of the City's registered electors at a regular or special election. Article I, § 8 of the Charter governs amendments. Simply put, every Charter amendment must be approved by a majority of the City's registered electo rs voting at either a regular or special election. ANALYSIS: GENERAL INFORMATION. Not changing form of Government. The City of Englewood is a Council-Manager form of government. The entire Charter is based upon the City of Englewood functioning as a Council - Manager form of government. To change to a Mayor -Manager, or Mayor-Council form of government would require calling for a Charter Commission, and rewriting significant portions of the Charter. Per C.R.S. 31-4-202, part of establishing a City Council-City Manager form of government is clarifying the role of the mayor. When Englewood first adopted the Counc il-Manager form of government the electors chose "a mayor elected by and from among the members of the city council" instead of a "mayor elected from the city at large by a plurality of the votes cast for that office." Page 51 of 374 The City followed State Statute in initially adopting the City Council-City Manager form of government, and much of the language of the City Charter regarding the roles of the Mayor, City Council members, and City Manager is identical to that set forth within State Statute. Therefore, those state statutes continue to serve as helpful guides in considering the issues surrounding modification of the selection of the Mayor, although Englewood is now a Home Rule City. TERM OF MAYOR. As the City Council considers changing the method by which the City Charter provides for selection of the Mayor, C.R.S. 31-4-207 provides helpful guidance in considering the implications of that change. C.R.S. 31-4-207 anticipates that any mayor elected by a City at large will serve a two year term, although Cit ies are permitted to alternatively provide for the Mayor to serve a four year term. POWERS AND DUTIES. The powers and duties of a Mayor selected by the people are set forth within C.R.S. 31-4-207.5. The mayor shall be the presiding officer of the city council and shall have the same voting powers as any member of said council. The mayor shall be considered a member of the governing body and the city council and shall be recognized as the head of the city government for all ceremonial purposes, by the c ourts for serving civil processes, and by the government for purposes of military law. In addition, the mayor shall exercise such other powers and perform such other duties as are conferred and imposed upon him by this part 2 or the ordinances of the city. INFORMATION SPECIFIC TO AN ACTION BY THE CITY OF ENGLEWOOD TO CHANGE THE MANNER IN WHICH THE MAYOR OF THE CITY IS SELECTED. Article I, § 8 of the Charter governs amendments. Simply put, every Charter amendment must be approved by a majority of the City's registered electors voting at either a regular or special election. More than one Charter amendment may be presented at any election. Title 31, C.R.S., provides an alternative method for amending a home rule charter. That would involve forming a Charter Commission to draft amendments to the Charter, similar to the process that is used when statutory municipalities first transfer to home rule status. C.R.S. § 31- 2-210(2). This process is typically used when many amendments are proposed. Timeline for approval of Ordinance. Charter amendment ballot question(s) are first adopted by ordinance of the City Council. Ordinances require two readings, and the same language must be approved twice. Ordinances go into effect thirty days following the second approval. The County Election Clerk requires all ballot language be submitted to that office around September first of any election year. Therefore, it is safe to assume that the Ordinance must be finally approved during July in order to be presented to the County Election Clerk on September first. Public Hearing. In addition, as Charter amendments have broad impact, the City Council may wish to provide for an opportunity for the public to be heard regarding the proposed ballot measures at a public hearing. This would be an administrative public hearing, not quasi -judicial. While administrative public hearings are usually held in between the first and second readings of an ordinance, due to the time frame for providing ballot measures to the County Election Clerk, it may be prudent to schedule any public hearing prior to the first reading of the Page 52 of 374 ordinance, such as in early June. In that way, any information received from the public that the Council would like to incorporate into the ordinance language would occur before first reading. Required Amendments. If the City Council determines that future Mayors should be separately elected by the registered electors, rather than by the City Council following the election, the following sections of the Charter will need to be modified: 19, 22, 24 and possibly 1 42. In addition, several provisions within the Charter would need to be reviewed by the City Council to determine whether to address such matters, including: 1. Question: What should be the Mayor's term of office? The term for an elected Mayor is often shorter than for a member of the City Council, but modifying an existing city council seat to provide for a two year term would be a little more complicated. 2. Question: Are there additional provisions addressing the Mayor’s powers and duties? The City Council may decide whether or not to submit to the voters amendments to the Charter to include modifications of any of the following: • KEEPING THE MAYOR'S ROLE IDENTICAL TO A MEMBER OF THE CITY COUNCIL. If the Mayor’s role will continue to be identic al to that of a City Council member, EXCEPT ALWAYS SELECTED FROM THE CITY AT LARGE, then a new provision would be added to the Charter language clarifying that the terms "Council", "Councilmember," "member of Council" and "Officer", when used throughout th e Charter, include the Mayor. • OTHER DUTIES AND POWERS IMPOSED UPON THE ROLE. The Mayor’s role may be defined to have all of the authority of a regular city council member with additional leadership authorities necessary to serve in the role of Mayor. B ut, those additional authorities should be defined and set forth within the Charter. o Example: The Mayor’s role may be defined to be primarily be a leadership role with legislative power primarily vested in the City Council with a provision the Mayor only votes in the case of a tie vote. o Example: A provision addressing whether the Mayor will have any veto power, and if so, how that power may be exercised. FINANCIAL IMPLICATIONS: Any costs associated with elections. ALTERNATIVES: 1. Take no action. 2. Direct that a plan be developed to culminate in placing ballot language on a ballot in 2020, 2021, or 2022. CONCLUSION: If the City Council decides to have the Mayor elected separately by the City's registered electors, rather than by the City Council after each election, the Charter must be amended. The Page 53 of 374 required amendments must be approved by a majority of the City's registered electors at a regular or special election. ATTACHMENTS: Charter Sections: 19, 22, 24 and 142. Page 54 of 374 Charter Sections: 19: - The Council. The legislative affairs of the City shall be vested in a Council consisting of seven councilmen, one to be elected from each of four districts and the remaining three to be elected at large. 22: - Terms. Terms of Councilpersons shall begin at 8:00 P.M., on the day of the next regularly scheduled City Council meeting following the election. Seven Councilpersons shall be elected at the regular City election to be held on the first Tuesday after the first Monday in November, 1959. The candidate receiving the highest number of votes from District 1 and the candidate receiving the highest number of votes from District 3 shall hold office for four years, and the candidate receiving the highest number of votes from District 2 and the candidate receiving the highest number of votes from District 4 shall hold office for two years. The two candidates at large receiving the highest number of votes shall serve for four years, and the candidate at large receiving the third highest number of votes shall serve for two years. Thereafter, all candidates elected shall serve a term of four years, and a general municipal election shall be held at two-year intervals. (1) In order to broaden the opportunities for public service and to guard against excessive concentrations of power, no member of City Council shall serve more than three consecutive terms in such office. This limitation on the number of terms shall apply to a third term of office beginning on or after November 3, 2009. Any person who succeeds to the office of City Council member or is appointed or elected to fill a vacancy and who serves at least one -half of a term of office, shall be considered to have served a full term in that office for purposes of this subsection. Terms are considered consecutive unless they are at least four years apart. (Amended 1-30-1990; 11-5-1991; 11-3-2009) 24: - Presiding officer. After each general municipal election, the Council shall elect from their own number a Mayor who will be the presiding officer entitled to vote. He shall have no veto power and shall serve at the will of the Council. He shall be recognized as head of the City Gov ernment for all ceremonial purposes and shall execute and authenticate legal instruments requiring his signature as such official. 142: - Present Council and Mayor to continue in office. Council and Mayor, or their appointed successor, in office at the time of the adoption of this Charter shall continue at their present salaries to serve and carry out the functions, powers and duties of their offices until the first Monday after January 1, 1960. Page 55 of 374 Charter Approved, July 8, 1958 Filed with Secretary of State, July 10, 1958 Amendments Approved, November 2, 1965 List of Sections Amended - Sections 6, 7, 8, 10, 13, 14, 17, 27, 31, 34, 41, 46, 47, 48, 62, 63, 68, 70, 72, 77, 91, 104, 113, 121, 124 and 125 Amendments Filed with Secretary of State, November 5, 1965 Amendments Approved, November 4, 1969 List of Sections Amended - Sections 104 and 110 Amendments Filed with Secretary of State, November 10, 1969 Amendments Approved, May 5, 1970 List of Sections Amended - Sections 54, 56, 59 and 61 Amendments Filed with Secretary of State, May 13, 1970 Amendments Approved, November 7, 1972 List of Sections Amended - Sections 137:1, 137:2, 137:3, 137:4, 137:5, 137:6, 137:7, 137:8, 138:1, 138:2, 138:3 and 139 Amendments Filed with Secretary of State, November 9, 1972 Amendments Approved, November 6, 1973 List of Sections Amended - Sections 108 and 109 Amendments Filed with Secretary of State, November 8, 1973 Amendments Approved, November 6, 1979 List of Sections Amended - Sections 54 and 56 Amendments Filed with Secretary of State, November 7, 1979 Page 56 of 374 Amendments Approved, March 24, 1981 List of Sections Amended - Sections 11, 15, 23, 34, 113, 115, 116, 137:1, 137:2, 137:3, 137:4, 137:5, 137:6, 137:7, 137:8, 138:1, 138:2, 138:3, 138:4 and 138:5 Amendments Filed with Secretary of State, March 26, 1981 Amendments Approved, November 3, 1987 List of Sections Amended - Sections 9, 113 and 116 Amendments Filed with Secretary of State, November 5, 1987 Amendments Approved, November 7, 1989 List of Sections Amended - Sections 128 and 138.4(h) Amendments Filed with Secretary of State, December 14, 1989 Amendments Approved, January 30, 1990 Section Amended - Section 22 Amendment Filed with Secretary of State, January 31, 1990 Amendments Approved, November 5, 1991 List of Sections Amended - Sections 6, 7, 15, 22, 23, 34 42, 45, 46, 47, 59, 61, 69, 104, 121, 134, 137:6 and 138:5 Amendments Filed with Secretary of State, November 6, 1991 Amendments Approved, November 2, 1993 List of Sections Amended - Sections 10, 11, 13, 15, 16, 17 and 18 Amendments filed with Secretary of State, November 9, 1993 Page 57 of 374 Amendments Approved, November 7, 1995 List of Sections Amended - Sections 137:2, 137:3, 137:5, 137:6, 138:1, 138:3, 138:4 and 138:5 Amendments filed with Secretary of State, December 20, 1995 Amendments Approved, November 4, 1997 List of Sections Amended - Sections 32 and 108 Amendments filed with Secretary of State, November 14, 1997 Amendments Approved, November 3, 1998 List of Sections Amended - Sections 46 and 110 Amendments filed with Secretary of State, November 9, 1998 Amendments Approved, November 2, 1999 List of Sections Amended - Sections 137:2(i) and 138:3(a) Amendments filed with Secretary of State, November 10, 1999 Amendments Approved, November 6, 2001 List of Sections Amended - Sections 34, 41, 46, 47, 104, 113 and 116 Amendments filed with Secretary of State, November 13, 2001 Amendment Approved, November 4, 2003 List of Sections Amended - Section 40 Amendments filed with Secretary of State, November 20, 2003 Amendment Approved, November 2, 2004 Section Amended - Section 12 Amendment filed with Secretary of State, November 19, 2004 Page 58 of 374 Amendment Approved, November 6, 2007 List of Sections Amended - Sections 94 and 117 Amendment filed with the Secretary of State, November 20, 2007 Amendment Approved, November 3, 2009 List of Sections Amended - Section 22 Amendment filed with the Secretary of State, November 17, 2009 Amendment Approved, November 3, 2015 Section Amended - Section 14 Amendment filed with the Secretary of State, February 10, 2016 Page 59 of 374 Colorado’s  Fair  Campaign  Practices  Act  Restricts  Use  of  Public  Funds     Ballots  in  statewide  or  local  elections  often  include  issues  of  profound  importance  to  Colorado   municipalities.  As  community  leaders,  municipal  officials  can  and  should  become  actively  involved  in  the   public  discussion  of  these  issues.  However,  the  state  Fair  Campaign  Practices  Act  (FCPA)  places   significant  restrictions  on  the  use  of  public  funds  for  advocacy  purposes  or  for  dispensing  information  in   connection  with  local  or  statewide  ballot  issues  (C.R.S.  §  1-­‐45-­‐117).       The  FCPA  restrictions  on  the  use  of  public  funds  apply:   • to  statutory  cities  and  towns  or  to  those  home  rule  municipalities  that  have  not  adopted   provisions  regarding  campaign  finance,  and   • once  a  statewide  petition  has  been  submitted  for  title  setting,  or   • for  local  ballot  issues,  once  an  issue  has  been  submitted  for  the  purpose  of  having  a  title  fixed  or   that  has  had  a  title  fixed,  upon  final  action  of  the  governing  body  placing  a  referred  measure  on   the  ballot,  or   • once  the  recall  election  of  any  officer  has  been  certified  to  voters.       These  guidelines  are  intended  to  provide  municipal  officials  and  employees  with  general  guidance   concerning  what  they  may  or  may  not  do,  consistent  with  the  FCPA.    However,  your  municipal  attorney   should  be  consulted,  and  any  home  rule  provision(s)  reviewed,  before  any  action  is  taken  that  could  be   viewed  as  subject  to  the  public-­‐funds  restrictions  in  the  FCPA.     Permissible  activities   It  is  permissible  to  do  the  following  in  campaigns  in  support  of  or  in  opposition  to  a  proposed  measure:   1. The  local  governing  body  may  take  a  position  of  advocacy  on  the  issue.  The  governing  body  may   pass  a  resolution  and  take  a  public  stand  urging  the  electorate  to  vote  for  or  against  any  matter.   Local  governments  may  report  the  passage  of  or  distribute  such  resolutions  “through   established,  customary  means,  other  than  paid  advertising,  by  which  information  about  other   proceedings  of  [the  governing  body]  is  regularly  provided  to  the  public”  (such  as  via  a  local   government  newsletter  or  cable  television  broadcast).     2. The  Act  provides  that  any  public  official  who  has  “policy-­‐making  responsibilities”  may  spend  up   to  $50  of  public  money  on  phone  calls,  letters,  or  other  activities  “incidental”  to  expressing  his   or  her  opinion  on  any  issue.  It  is  advisable  to  consult  with  your  municipal  attorney  before   expending  public  funds  in  reliance  on  this  provision.   3. Elected  officials  may  speak  out  on  the  issues  presented  on  the  ballot.  There  is  no  limitation  in   the  FCPA  on  the  right  of  public  officials  to  address  any  matter  before  the  electorate;  the   limitations  in  the  Act  are  on  the  expenditure  of  public  funds.   4. Public  employees  and  paid  elected  officials  may  work  on  a  campaign  and  speak  out  on  the  issues   on  their  own  time.  Any  public  employee  who  becomes  involved  in  the  campaign  should  be   prepared  to  document  that  such  work  was  done  on  his  or  her  own  time.  If  the  public  employee   Page 60 of 374 is  on  a  recorded-­‐hour  system,  make  sure  the  record  reflects  that  the  public  employee  took  time   off  from  public  duties  to  engage  in  campaign  activities.     5. Public  employees  may  respond  to  unsolicited  questions  or  requests  for  information  about  a   ballot  issue;  however,  the  local  government  should  carefully  avoid  producing  information  for   distribution  that  is  designed  to  influence  the  passage  or  defeat  the  issue.   6. The  local  governing  body  may  use  public  funds  to  develop  and  distribute  a  factual  summary  on   any  issue  that  will  appear  on  a  ballot  in  the  jurisdiction.  The  summary  must  include  arguments   for  or  against  the  proposal,  but  the  summary  itself  may  not  contain  a  conclusion  or  opinion  in   favor  of  or  against  the  proposal.       Impermissible  activities   It  is  impermissible  under  the  FCPA,  except  as  indicated  above,  to  do  the  following  in  campaigns  in   support  of  or  in  opposition  to  a  proposed  measure:     1. Use  or  expend  public  funds  or  supplies;   2. Allow  employees  or  paid  officers  to  work  on  a  campaign  during  their  working  hours  or  use  any   public  facility  or  equipment  for  the  purposes  of  a  campaign;   3. Provide  transportation  or  advertising  using  public  property  or  funds  to  influence,  directly  or   indirectly,  the  passage  or  defeat  of  any  issue;  or   4. Grant  an  employee  or  officer  leave  from  his  job  or  office  with  the  local  government,  with  pay,  to   work  on  a  campaign.       For  more  information,  contact  Laurel  Witt,  CML  Staff  Attorney,  at  lwitt@cml.org  or  303-­‐831-­‐6411.   Page 61 of 374 STUDY SESSION TO: Mayor and Council FROM: Alison McKenney Brown DEPARTMENT: City Attorney's Office DATE: May 18, 2020 SUBJECT: Review of Charter Amendment Process regarding Selection of Mayor DESCRIPTION: Review of Charter Amendment Process regarding Selection of Mayor RECOMMENDATION: City Staff seek direction on whether the City Council wishes to modify the process for selection of a Mayor, as provided by Charter, and if so, seeks consensus on modifying those sections of the Charter that will require amendment and a timeline for such modifications. PREVIOUS COUNCIL ACTION: At the May 11, 2020, study session meeting, six members of the City Council discussed the pros and cons associated with a proposed ballot measure asking the elect orate of the City to decide whether to change the manner in which the Mayor of the City is selected through a series of Charter amendments, and the pros and cons of presenting such series of Charter amendments to the voters at the 2020 election or at the 2021 election. The consensus at that time was to bring this matter back for further discussion at the May 18, 2020 study session. SUMMARY: If the City Council decides to have the Mayor elected separately by the City's registered electors, rather than by the City Council after each election, the Charter must be amended. If the City Council determines to ask the electorate of the City to decide whether future Mayors should be separately elected by the registered electors rather than by the City Council following the election, the following sections of the Charter will need to be reviewed for possible modification: 19, 22, 24 and 142. All amendments to the Charter must be approved by a majority of the City's registered electors at a regular or special election in accordance with Article I, § 8 of the Charter. ANALYSIS: GENERAL INFORMATION. Not changing form of Government. The City of Englewood is a Council-Manager form of government. The entire Charter is based upon the City of Englewood functioning as a Council- Manager form of government. To change to a Mayor-Manager, or Mayor-Council form of government would require calling for a Charter Commission, and rewriting significant portions of the Charter. Page 62 of 374 Per C.R.S. 31-4-202, part of establishing a City Council-City Manager form of government is clarifying the role of the mayor. When Englewood first adopted the Council-Manager form of government the electors chose "a mayor elected by and from among the members of the city council" instead of a "mayor elected from the city at large by a plurality of the votes cast for that office." The City followed State Statute in initially adopting the City Council-City Manager form of government, and much of the language of the City Charter regarding the roles of the Mayor, City Council members, and City Manager is identical to that set forth within State Statute. Therefore, those state statutes continue to serve as helpful guides in considering the issues surrounding modification of the selection of the Mayor, although Englewood is now a Home Rule City. TERM OF MAYOR. As the City Council considers changing the method by which the City Charter provides for selection of the Mayor, C.R.S. 31-4-207 provides helpful guidance in considering the implications of that change. C.R.S. 31-4-207 anticipates that any mayor elected by a City at large will serve a two year term, although Cit ies are permitted to alternatively provide for the Mayor to serve a four year term. POWERS AND DUTIES. The powers and duties of a Mayor selected by the people are set forth within C.R.S. 31-4-207.5. The mayor shall be the presiding officer of the city council and shall have the same voting powers as any member of said council. The mayor shall be considered a member of the governing body and the city council and shall be recognized as the head of the city government for all ceremonial purposes, by the c ourts for serving civil processes, and by the government for purposes of military law. In addition, the mayor shall exercise such other powers and perform such other duties as are conferred and imposed upon him by this part 2 or the ordinances of the city. INFORMATION SPECIFIC TO AN ACTION BY THE CITY OF ENGLEWOOD TO CHANGE THE MANNER IN WHICH THE MAYOR OF THE CITY IS SELECTED. Article I, § 8 of the Charter governs amendments. Simply put, every Charter amendment must be approved by a majority of the City's registered electors voting at either a regular or special election. More than one Charter amendment may be presented at any election. Title 31, C.R.S., provides an alternative method for amending a home rule charter. That would involve forming a Charter Commission to draft amendments to the Charter, similar to the process that is used when statutory municipalities first transfer to home rule status. C.R.S. § 31- 2-210(2). This process is typically used when many amendments are proposed. Timeline for approval of Ordinance. Charter amendment ballot question(s) are first adopted by ordinance of the City Council. Ordinances require two readings, and the same language must be approved twice. Ordinances go into effect thirty days following the second approval. The County Election Clerk requires all ballot language be submitted to that office around September first of any election year. Therefore, it is safe to assume that the Ordinance must be finally approved during July in order to be presented to the County Election Clerk on September first. Page 63 of 374 Public Hearing. In addition, as Charter amendments have broad impact, the City Council may wish to provide for an opportunity for the public to be heard regarding the proposed ballot measures at a public hearing. This would be an administrative public hearing, not quasi-judicial. While administrative public hearings are usually held in between the first and second readings of an ordinance, due to the time frame for providing ballot measures to the County Election Clerk, it may be prudent to schedule any public hearing prior to the first reading of the ordinance, such as in early June. In that way, any information received from the public that the Council would like to incorporate into the ordinance language would occur before first reading. Required Amendments. If the City Council determines that future Mayors should be separ ately elected by the registered electors, rather than by the City Council following the election, the following sections of the Charter will need to be modified: 19, 22, 24 and possibly 142. In addition, several provisions within the Charter would need to be reviewed by the City Council to determine whether to address such matters, including: 1. Question: What should be the Mayor's term of office? The term for an elected Mayor is often shorter than for a member of the City Council, but modifying an existing city council seat to provide for a two year term would be a little more complicated. 2. Question: Are there additional provisions addressing the Mayor’s powers and duties? The City Council may decide whether or not to submit to the voters amendments to the Charter to include modifications of any of the following: • KEEPING THE MAYOR'S ROLE IDENTICAL TO A MEMBER OF THE CITY COUNCIL. If the Mayor’s role will continue to be identical to that of a City Council member, EXCEPT ALWAYS SELECTED FROM THE CITY AT LARGE, then a new provision would be added to the Charter language clarifying that the terms "Council", "Councilmember," "member of Council" and "Officer", when used throughout the Charter, include the Mayor. • OTHER DUTIES AND POWERS IMPOSED UPON THE ROLE. The Mayor’s role may be defined to have all of the authority of a regular city council member with additional leadership authorities necessary to serve in the role of Mayor. But, those additional authorities should be defined and set forth within the Charter. o Example: The Mayor’s role may be defined to be primarily be a leadership role with legislative power primarily vested in the City Council with a provision the Mayor only votes in the case of a tie vote. o Example: A provision addressing whether the Mayor will have any veto power, and if so, how that power may be exercised. FINANCIAL IMPLICATIONS: Any costs associated with elections. ALTERNATIVES: 1. Take no action. Page 64 of 374 2. Direct that a plan be developed to culminate in placing ballot language on a ballot in 2020, 2021, or 2022. CONCLUSION: If the City Council decides to have the Mayor elected separately by the City's registered electors, rather than by the City Council after each election, the Charter must be amended. The required amendments must be approved by a majority of the City's registered electors at a regular or special election. ATTACHMENTS: Charter Sections: 19, 22, 24 and 142. Review of Fair Campaign Practices Act as published by CML. Page 65 of 374 Charter Sections: 19: - The Council. The legislative affairs of the City shall be vested in a Council consisting of seven councilmen, one to be elected from each of four districts and the remaining three to be elected at large. 22: - Terms. Terms of Councilpersons shall begin at 8:00 P.M., on the day of the next regularly scheduled City Council meeting following the election. Seven Councilpersons shall be elected at the regular City election to be held on the first Tuesday after the first Monday in November, 1959. The candidate receiving the highest number of votes from District 1 and the candidate receiving the highest number of votes from District 3 shall hold office for four years, and the candidate receiving the highest number of votes from District 2 and the candidate receiving the highest number of votes from District 4 shall hold office for two years. The two candidates at large receiving the highest number of votes shall serve for four years, and the candidate at large receiving the third highest number of votes shall serve for two years. Thereafter, all candidates elected shall serve a term of four years, and a general municipal election shall be held at two-year intervals. (1) In order to broaden the opportunities for public service and to guard against excessive concentrations of power, no member of City Council shall serve more than three consecutive terms in such office. This limitation on the number of terms shall apply to a third term of office beginning on or after November 3, 2009. Any person who succeeds to the office of City Council member or is appointed or elected to fill a vacancy and who serves at least one -half of a term of office, shall be considered to have served a full term in that office for purposes of this subsection. Terms are considered consecutive unless they are at least four years apart. (Amended 1-30-1990; 11-5-1991; 11-3-2009) 24: - Presiding officer. After each general municipal election, the Council shall elect from their own number a Mayor who will be the presiding officer entitled to vote. He shall have no veto power and shall serve at the will of the Council. He shall be recognized as head of the City Gov ernment for all ceremonial purposes and shall execute and authenticate legal instruments requiring his signature as such official. 142: - Present Council and Mayor to continue in office. Council and Mayor, or their appointed successor, in office at the time of the adoption of this Charter shall continue at their present salaries to serve and carry out the functions, powers and duties of their offices until the first Monday after January 1, 1960. Page 66 of 374 Charter Approved, July 8, 1958 Filed with Secretary of State, July 10, 1958 Amendments Approved, November 2, 1965 List of Sections Amended - Sections 6, 7, 8, 10, 13, 14, 17, 27, 31, 34, 41, 46, 47, 48, 62, 63, 68, 70, 72, 77, 91, 104, 113, 121, 124 and 125 Amendments Filed with Secretary of State, November 5, 1965 Amendments Approved, November 4, 1969 List of Sections Amended - Sections 104 and 110 Amendments Filed with Secretary of State, November 10, 1969 Amendments Approved, May 5, 1970 List of Sections Amended - Sections 54, 56, 59 and 61 Amendments Filed with Secretary of State, May 13, 1970 Amendments Approved, November 7, 1972 List of Sections Amended - Sections 137:1, 137:2, 137:3, 137:4, 137:5, 137:6, 137:7, 137:8, 138:1, 138:2, 138:3 and 139 Amendments Filed with Secretary of State, November 9, 1972 Amendments Approved, November 6, 1973 List of Sections Amended - Sections 108 and 109 Amendments Filed with Secretary of State, November 8, 1973 Amendments Approved, November 6, 1979 List of Sections Amended - Sections 54 and 56 Amendments Filed with Secretary of State, November 7, 1979 Page 67 of 374 Amendments Approved, March 24, 1981 List of Sections Amended - Sections 11, 15, 23, 34, 113, 115, 116, 137:1, 137:2, 137:3, 137:4, 137:5, 137:6, 137:7, 137:8, 138:1, 138:2, 138:3, 138:4 and 138:5 Amendments Filed with Secretary of State, March 26, 1981 Amendments Approved, November 3, 1987 List of Sections Amended - Sections 9, 113 and 116 Amendments Filed with Secretary of State, November 5, 1987 Amendments Approved, November 7, 1989 List of Sections Amended - Sections 128 and 138.4(h) Amendments Filed with Secretary of State, December 14, 1989 Amendments Approved, January 30, 1990 Section Amended - Section 22 Amendment Filed with Secretary of State, January 31, 1990 Amendments Approved, November 5, 1991 List of Sections Amended - Sections 6, 7, 15, 22, 23, 34 42, 45, 46, 47, 59, 61, 69, 104, 121, 134, 137:6 and 138:5 Amendments Filed with Secretary of State, November 6, 1991 Amendments Approved, November 2, 1993 List of Sections Amended - Sections 10, 11, 13, 15, 16, 17 and 18 Amendments filed with Secretary of State, November 9, 1993 Page 68 of 374 Amendments Approved, November 7, 1995 List of Sections Amended - Sections 137:2, 137:3, 137:5, 137:6, 138:1, 138:3, 138:4 and 138:5 Amendments filed with Secretary of State, December 20, 1995 Amendments Approved, November 4, 1997 List of Sections Amended - Sections 32 and 108 Amendments filed with Secretary of State, November 14, 1997 Amendments Approved, November 3, 1998 List of Sections Amended - Sections 46 and 110 Amendments filed with Secretary of State, November 9, 1998 Amendments Approved, November 2, 1999 List of Sections Amended - Sections 137:2(i) and 138:3(a) Amendments filed with Secretary of State, November 10, 1999 Amendments Approved, November 6, 2001 List of Sections Amended - Sections 34, 41, 46, 47, 104, 113 and 116 Amendments filed with Secretary of State, November 13, 2001 Amendment Approved, November 4, 2003 List of Sections Amended - Section 40 Amendments filed with Secretary of State, November 20, 2003 Amendment Approved, November 2, 2004 Section Amended - Section 12 Amendment filed with Secretary of State, November 19, 2004 Page 69 of 374 Amendment Approved, November 6, 2007 List of Sections Amended - Sections 94 and 117 Amendment filed with the Secretary of State, November 20, 2007 Amendment Approved, November 3, 2009 List of Sections Amended - Section 22 Amendment filed with the Secretary of State, November 17, 2009 Amendment Approved, November 3, 2015 Section Amended - Section 14 Amendment filed with the Secretary of State, February 10, 2016 Page 70 of 374 Colorado’s  Fair  Campaign  Practices  Act  Restricts  Use  of  Public  Funds     Ballots  in  statewide  or  local  elections  often  include  issues  of  profound  importance  to  Colorado   municipalities.  As  community  leaders,  municipal  officials  can  and  should  become  actively  involved  in  the   public  discussion  of  these  issues.  However,  the  state  Fair  Campaign  Practices  Act  (FCPA)  places   significant  restrictions  on  the  use  of  public  funds  for  advocacy  purposes  or  for  dispensing  information  in   connection  with  local  or  statewide  ballot  issues  (C.R.S.  §  1-­‐45-­‐117).       The  FCPA  restrictions  on  the  use  of  public  funds  apply:   • to  statutory  cities  and  towns  or  to  those  home  rule  municipalities  that  have  not  adopted   provisions  regarding  campaign  finance,  and   • once  a  statewide  petition  has  been  submitted  for  title  setting,  or   • for  local  ballot  issues,  once  an  issue  has  been  submitted  for  the  purpose  of  having  a  title  fixed  or   that  has  had  a  title  fixed,  upon  final  action  of  the  governing  body  placing  a  referred  measure  on   the  ballot,  or   • once  the  recall  election  of  any  officer  has  been  certified  to  voters.       These  guidelines  are  intended  to  provide  municipal  officials  and  employees  with  general  guidance   concerning  what  they  may  or  may  not  do,  consistent  with  the  FCPA.    However,  your  municipal  attorney   should  be  consulted,  and  any  home  rule  provision(s)  reviewed,  before  any  action  is  taken  that  could  be   viewed  as  subject  to  the  public-­‐funds  restrictions  in  the  FCPA.     Permissible  activities   It  is  permissible  to  do  the  following  in  campaigns  in  support  of  or  in  opposition  to  a  proposed  measure:   1. The  local  governing  body  may  take  a  position  of  advocacy  on  the  issue.  The  governing  body  may   pass  a  resolution  and  take  a  public  stand  urging  the  electorate  to  vote  for  or  against  any  matter.   Local  governments  may  report  the  passage  of  or  distribute  such  resolutions  “through   established,  customary  means,  other  than  paid  advertising,  by  which  information  about  other   proceedings  of  [the  governing  body]  is  regularly  provided  to  the  public”  (such  as  via  a  local   government  newsletter  or  cable  television  broadcast).     2. The  Act  provides  that  any  public  official  who  has  “policy-­‐making  responsibilities”  may  spend  up   to  $50  of  public  money  on  phone  calls,  letters,  or  other  activities  “incidental”  to  expressing  his   or  her  opinion  on  any  issue.  It  is  advisable  to  consult  with  your  municipal  attorney  before   expending  public  funds  in  reliance  on  this  provision.   3. Elected  officials  may  speak  out  on  the  issues  presented  on  the  ballot.  There  is  no  limitation  in   the  FCPA  on  the  right  of  public  officials  to  address  any  matter  before  the  electorate;  the   limitations  in  the  Act  are  on  the  expenditure  of  public  funds.   4. Public  employees  and  paid  elected  officials  may  work  on  a  campaign  and  speak  out  on  the  issues   on  their  own  time.  Any  public  employee  who  becomes  involved  in  the  campaign  should  be   prepared  to  document  that  such  work  was  done  on  his  or  her  own  time.  If  the  public  employee   Page 71 of 374 is  on  a  recorded-­‐hour  system,  make  sure  the  record  reflects  that  the  public  employee  took  time   off  from  public  duties  to  engage  in  campaign  activities.     5. Public  employees  may  respond  to  unsolicited  questions  or  requests  for  information  about  a   ballot  issue;  however,  the  local  government  should  carefully  avoid  producing  information  for   distribution  that  is  designed  to  influence  the  passage  or  defeat  the  issue.   6. The  local  governing  body  may  use  public  funds  to  develop  and  distribute  a  factual  summary  on   any  issue  that  will  appear  on  a  ballot  in  the  jurisdiction.  The  summary  must  include  arguments   for  or  against  the  proposal,  but  the  summary  itself  may  not  contain  a  conclusion  or  opinion  in   favor  of  or  against  the  proposal.       Impermissible  activities   It  is  impermissible  under  the  FCPA,  except  as  indicated  above,  to  do  the  following  in  campaigns  in   support  of  or  in  opposition  to  a  proposed  measure:     1. Use  or  expend  public  funds  or  supplies;   2. Allow  employees  or  paid  officers  to  work  on  a  campaign  during  their  working  hours  or  use  any   public  facility  or  equipment  for  the  purposes  of  a  campaign;   3. Provide  transportation  or  advertising  using  public  property  or  funds  to  influence,  directly  or   indirectly,  the  passage  or  defeat  of  any  issue;  or   4. Grant  an  employee  or  officer  leave  from  his  job  or  office  with  the  local  government,  with  pay,  to   work  on  a  campaign.       For  more  information,  contact  Laurel  Witt,  CML  Staff  Attorney,  at  lwitt@cml.org  or  303-­‐831-­‐6411.   Page 72 of 374 STUDY SESSION TO: Mayor and Council FROM: Stephanie Carlile DEPARTMENT: City Clerk's Office DATE: February 8, 2021 SUBJECT: Charter Amendment for direct Election of the Mayor DESCRIPTION: Charter Amendment for Election of the Mayor RECOMMENDATION: Staff defers to Council on the general issue of referring the direct election of the mayoral position to the electorate and on any of the specific details concerning said ballot question(s). Staff will be present to discuss the process. PREVIOUS COUNCIL ACTION: Under Charter Section 24, the Mayor is elected by the City Council after each general election. Section 24 has not been amended since the adoption of the Charter. SUMMARY: Some members of Council expressed an interest in receiving more information on a potential ballot question amending the City Charter to allow voters to directly elect a Mayor. The following sections may need amending if Council/the electorate decide in favor of direct election of the Mayor: Section 24 of the Englewood City Charter, which states that after each general municipal election, Council shall elect from their own number a Mayor who will be the presiding officer entitled to vote, shall have no veto power and shall serve at the will of the Council. Section 19, which states that Council shall consist of seven council members, one to be elected from each of four districts and the remaining three to be elected at large. Section 22, which states that all candidates elected shall serve a term of four years. This section of the Charter would also need amending if the directly elected Mayor has a term length other than four years. Section 23, which states the qualifications for running for City Council: citizen of the United States, 25 years of age, resident of Englewood for 1 year prior, holds no other office. Staff will be present to discuss the process for amendment(s) to the Charter and the potential effects of different options (listed under the 'analysis' section). Page 73 of 374 ANALYSIS: Staff is requesting guidance on the following issues related to direct election of the Mayor: 1. Should the mayoral position replace an at-large council position? 2. What, if any, special qualifications should be in place for anyone running for mayor (same as any candidate for Council)? 3. What should be the term length of the mayoral position? (2 years/4 years?) 4. Should the Mayor have an additional powers/responsibilities? Should the Mayor vote in the same manor as other members of Council? Break ties? Veto? 5. Should there be a transitional period prior to beginning the chosen mayoral term? 6. Should there be any provisions for Councilmembers running for Mayor? (If in the middle of a Councilmember's term?) FINANCIAL IMPLICATIONS: Adding ballot measures to any election will increase election costs. The City will already be participating in the coordinated municipal election on November 2, 2021 therefore it would be less expensive than submitting the ballot questions at the 2022 general election. All election costs are weighted by how many jurisdictions are participating. Special elections can run as high as $35,000. CONNECTION TO STRATEGIC PLAN: Governance- A city government that is accountable, effective, and efficient ALTERNATIVES: Council can leave election of the Mayor as the status quo, or can recommend submitting changes to the Charter to the electorate providing for the direct election of a Mayor. CONCLUSION: Staff is requesting direction as to both whether Council would like to have direct election of the Mayor and, if so, direction on the specifics noted in the "Analysis" section. Page 74 of 374 STUDY SESSION TO: Mayor and Council FROM: Stephanie Carlile DEPARTMENT: City Clerk's Office DATE: February 22, 2021 SUBJECT: Charter Amendment for direct Election of the Mayor DESCRIPTION: Charter Amendment for Election of the Mayor RECOMMENDATION: Staff defers to Council on the general issue of referring the direct election of the mayoral position to the electorate and on any of the specific details concerning said ballot question(s). Staff will be present to discuss the process. PREVIOUS COUNCIL ACTION: Under Charter Section 24, the Mayor is elected by the City Council after each general election. Section 24 has not been amended since the adoption of the Charter. At the Study Session of February 8, 2021, Council asked for more information regarding the Mayor position for surrounding cities in the metro area and will discuss if there is consensus to move forward. SUMMARY: Some members of Council expressed an interest in receiving more information on a potential ballot question amending the City Charter to allow voters to directly elect a Mayor. The following sections may need amending if Council/the electorate decide in favor of direct election of the Mayor: Section 24 of the Englewood City Charter, which states that after each general municipal election, Council shall elect from their own number a Mayor who will be the presiding officer entitled to vote, shall have no veto power and shall serve at the will of the Council. Section 19, which states that Council shall consist of seven council members, one to be elected from each of four districts and the remaining three to be elected at large. Section 22, which states that all candidates elected shall serve a term of four years. This section of the Charter would also need amending if the directly elected Mayor has a term length other than four years. Section 23, which states the qualifications for running for City Council: citizen of the United States, 25 years of age, resident of Englewood for 1 year prior, holds no other office. Page 75 of 374 Staff will be present to discuss the process for amendment(s) to the Charter and the potential effects of different options (listed under the 'analysis' section). After consultation with the City Attorney's office, it has been determined that a single ballot question asking for multiple charter amendments is allowed. ANALYSIS: Staff is requesting guidance on the following issues related to direct election of the Mayor: 1. Should the mayoral position replace an at-large council position? 2. What, if any, special qualifications should be in place for anyone running for mayor (same as any candidate for Council)? 3. What should be the term length of the mayoral position? (2 years/4 years?) 4. Should the Mayor have an additional powers/responsibilities? Should the Mayor vote in the same manor as other members of Council? Break ties? Veto? 5. Should there be a transitional period prior to beginning the chosen mayoral term? 6. Should there be any provisions for Councilmembers running for Mayor? (If in the middle of a Councilmember's term?) FINANCIAL IMPLICATIONS: Adding ballot measures to any election will increase election costs. The City will already be participating in the coordinated municipal election on November 2, 2021 therefore it would be less expensive than submitting the ballot questions at the 2022 general election. All election costs are weighted by how many jurisdictions are participating. Special elections can run as high as $35,000. CONNECTION TO STRATEGIC PLAN: Governance- A city government that is accountable, effective, and efficient ALTERNATIVES: Council can leave election of the Mayor as the status quo, or can recommend submitting changes to the Charter to the electorate providing for the direct election of a Mayor. CONCLUSION: Staff is requesting direction as to both whether Council would like to have direct election of the Mayor and, if so, direction on the specifics noted in the "Analysis" section. ATTACHMENTS: Comparison of Mayors in metro area chart Page 76 of 374 2021 Mayor comparison for metro area Municipality Littleton Sheridan Greenwood Village Lonetree Cherry Hills Lakewood Castle Pines Centennial Aurora Mayor Elected or selected by Council? Elected (2021 is first election) Elected Elected Elected Elected Elected Elected Elected Elected How long is the Mayor term? 4-year term 4-year term 4-year term 4-year term 2-year term 4-year term 4-year term 4-year term 4-year term Does the Mayor vote? Votes as a member of Council Votes as a member of Council Only votes to break a tie Votes as a member of Council Only votes to break a tie Votes as a member of Council Votes as a member of Council Votes as a member of Council Does the Mayor have veto power? No veto power No veto power Yes – only Ordinances and Resolutions No veto power No veto power No veto power No veto power No veto power Any special qualifications? No special qualifications No special qualifications No special qualifications At least 30 years old No special qualifications No special qualifications No special qualifications No special qualifications No special qualifications Page 77 of 374 STUDY SESSION TO: Mayor and Council FROM: Pieter Van Ry DEPARTMENT: Utilities DATE: June 14, 2021 SUBJECT: Loan Application for Utilities Capital Improvement Program Funding DESCRIPTION: Utilities staff will present to Council information related to Utilities loan application under the U.S. Environmental Protection Agency’s (EPA) Water Infrastructure Financing and Innovation Act (WIFIA) borrowing program. The WIFIA program incentivizes the acceleration of water infrastructure improvements by providing long-term, low-cost supplemental loans for regionally and nationally significant projects. Staff will be present to respond to feedback and questions from Council: Utilities Director, Pieter Van Ry, and Carol Malesky, Siyuan Rao, and Amy Broughton from Stantec Consulting. RECOMMENDATION: Informational item only. At the June 21, 2021 City Council meeting, staff will be bringing forward a Resolution authorizing the City to submit a loan application. PREVIOUS COUNCIL ACTION: None. SUMMARY: WIFIA is a borrowing mechanism for municipal water providers to fund the significant costs associated with executing capital improvement programs. Borrowing programs, like WIFIA, avoid the need to cash-fund capital improvement needs and spreads repayment over many years. This results in a more equitable share of costs among those that benefit from improvements now and customers that will benefit in the future. The WIFIA program provides favorable loan terms that meet or exceed the value provided in other borrowing mechanisms. This includes: • Low interest rates that are locked in at the time of closing • Interest accrual applied only to disbursed funds • Loan repayment term of up to 35 years The favorable loan conditions associated with the WIFIA program allows the City to advance projects within the current rate structure approved by Council in 2020. Page 78 of 374 The suite of projects proposed in the WIFIA application include water and wastewater projects. Water projects include improvements to existing pumping and treatment facilities, raw water supply improvements, lead service line replacement, metering improvements, and a new operation complex. Wastewater projects include various process improvements at the South Platte Renew treatment facility. Federal compliance is required for all WIFIA-funded projects. This includes ensuring compliance with Davis-Bacon wages, American Iron and Steel, Equal Opportunity Employer provisions, and demonstrating a good faith effort to contract with Disadvantaged Business Enterprises. Staff estimates that the additional cost associated with federal compliance is approximately five percent. The WIFIA application is due to the EPA on July 15, 2021. Following application submittal, staff will be working with the EPA for the remainder of the year to close the loan. ANALYSIS: Staff compared the WIFIA program with other large capital improvement program funding mechanisms, including State Revolving Funds, bonds, and cash, and recommends inclusion of WIFIA funding within the City’s funding program. WIFIA has a maximum funding threshold of 49%, so other funding mechanisms will be necessary to pay for the remaining 51%. The City must submit a $100,000 fee with its application. The fee covers EPA time and resources necessary to close the loan over the next six months. Staff expects that the total EPA costs will exceed the initial $100,000 application fee. Those costs may either be paid upfront at the time of closing or can be wrapped into the WIFIA loan. Annual costs for loan administration are approximately $10,000 per year. Application and annual maintenance fees are required for any large-scale borrowing program that the City has access to for CIP funding. Staff compared the WIFIA application and annual administration fees with other funding mechanisms and determined the WIFIA fees and annual costs to be fair and comparable with other borrowing programs. The loan will be repaid from user fees paid into the Water and Wastewater Funds through one- time connection fees for new users and revenue from monthly bills for all system users. CONCLUSION: Information item only. FINANCIAL IMPLICATIONS: The City has available funding in the 2021 budget for the initial $100,000 fee that must be submitted with the application. This fee covers EPA resources to process the loan application over the next six months. Staff will return to Council later this year, at the time of loan closure, for authorization of additional loan processing fees and seek approval to enter into the loan agreement. CONNECTION TO STRATEGIC PLAN: Infrastructure: • Establish a long-term Capital Improvement Program • Establish a 20-year plan for financing Page 79 of 374 ATTACHMENTS: WIFIA Application Fee Notice PowerPoint Presentation Page 80 of 374 0 ‘$120sr4,Q‘ ?tl?hl/\Ilg_ UNITED STATES ENVIRONMENTAL PROTECTIONIIweEAGENCYW;WIFIA Program at pm?_¢\‘°1200 Pennsylvania Avenue, N.W.Washington,D.C.20460 Notice of Non-Refundable Application Fee N20113C0 -FEE01 March 29,2021 Steve Simon Deputy Director,Engineering City of Englewood,Uti ies 1000 Englewood Parkway Englewood CO,80110 Subject:Englewood One Water Modernization Program (N20113C0) Dear Mr.Simon, Thank you for submitting your Water Infrastructure Finance and Innovation Act (WIFIA)letter of interest for the Englewood One Water Modernization Program.As noted in a January 8,2021 letter from EPA informing you that the project has been selected to apply for credit assistance,you must submit a non- refundable Application Fee of $100,000.00 for your application to be considered.This payment must be received prior to or concurrently with submission of your application. For atlng and transmitting the required Fee payment,the attached document,"HOW TO MAKE A PAYMENT TO EPA—WIFIA Program"identifies the payment methods we accept as well as the office to contact if there are questions.Please note the reference number of N20113C0-FEE01 and payment type ‘Application Fee‘in your payment submission. We look forward to working with you on this project. Sincerely, Jorianne Jernberg Acting Director,WIFIA Management Division cc EPA's Office of the Controller:OCFO-OC-ACAD-WIF|A@eQa.gov WIFIA Portfolio:WIFIA Portfo|io@epa.gov Elizabeth Tran:tran.e|izabeth@epa,gov Page 81 of 374 WIFIA Application Monday, June 14, 2021 City Council, Study Session Pieter Van Ry, Director of Utilities and South Platte Renew Page 82 of 374 Background •Favorable loan terms •Low interest •Repayment deferral •Annual maintenance fees •EPA -administered Page 83 of 374 Loan Terms •Requested loan amount: $50,000,000 •City reimburse EPA processing costs •Loan application: $100,000 •Additional costs collected at closing •Federal compliance for funded projects •Annual maintenance fees •Fund up to 49% of project costs •Other project funding sources required (cash, SRF, bonds)Page 84 of 374 Borrowing Option Comparison Borrowing Program Loan Processing Annual Fees Current Rate (May 2021)Repayment Federal Compliance Cost Proceeds / Funds Received Debt Service Coverage WIFIA $400,000 $10,000 - $20,000 2.3%35 years 5%Reimbursable basis 1.10x State Revolving Funds $0 Up to 1.25% of principal 2.0%30 years 5%Reimbursable basis 1.10x Bonds $400,000 $0 3.5%*30 years n/a Lump Sum 1.30x * Current bond rate may be comparable over 30 years (3.5% is a historical estimate for planning purposes)Page 85 of 374 Program Suite of Projects Water (Utilities)Wastewater (SPR) Pump Station Improvements Electrical/I&C Improvements City Ditch Piping Process Pilot Project Lead Service Line Replacement Dewatering Improvements Flat Rate to Metered Service Solid Enhancements Allen WTP Process Improvements Dewatering Project Operations Complex Operations Complex Page 86 of 374 Timeline May 11 June 14 June 21 July 15 July- Dec Dec 31 2022-2026 Initial Fee of $100,000.00 Page 87 of 374 Q&A Page 88 of 374 STUDY SESSION TO: Mayor and Council FROM: Kevin Engles DEPARTMENT: Finance DATE: June 14, 2021 SUBJECT: 2020 Audited Financial Statements Review DESCRIPTION: 2020 Audited Financial Statements Review RECOMMENDATION: Finance Manager Kevin Engels and Audit Principal Jim Hinkle will be present to discuss with City Council the 2020 Audited Financial Statements. PREVIOUS COUNCIL ACTION: The Council reviewed the audited financials annually. SUMMARY: Each year the city submits the annual report to the Government Finance Officers Certificate of Achievement for Excellence in Financial Reporting program. We are happy to announce that the 2019 report was awarded the certificate of achievement. This marked the 37th consecutive year the city has received this prestigious award. We would like to thank everyone who helped prepare the report, particularly those in the Finance Department that worked extremely hard to put the report together: Accounting Supervisor Christine Hart, Senior Accountant Kathy Cassai and Accounts Payable/Payroll Technician Joel Berrelez. We would also like to thank all the City Departments who provided information relating to the operation of their programs. Finally, we would like to thank the City’s auditors, Hinkle and Company for conducting the audit in a professional and timely manner. ANALYSIS: Information included above. CONCLUSION: Staff and external financial auditor will review the current financial report with Council annually and welcomes questions and discussion. FINANCIAL IMPLICATIONS: Information included above. CONNECTION TO STRATEGIC PLAN: Governance: Assist the City to become fiscally accountable, effective and efficient. Page 89 of 374 OUTREACH/COMMUNICATIONS: N/A ATTACHMENTS: 2020 Audited Financial Statements and required audit letter. Page 90 of 374 5950 S. Willow Dr., Ste. 302 Greenwood Village, Colorado 80111 TEL: 303.796.1000 FAX: 303.796.1001 www.HinkleCPAs.com Honorable Mayor and Members of the City Council City of Englewood Englewood, Colorado We have audited the financial statements of the City of Englewood (the City) as of and for the year ended December 31, 2020 and have issued our report thereon dated June 4, 2021. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards As communicated in our engagement letter dated November 18, 2020, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We applied certain limited procedures to the required supplementary information (RSI). However, we did not audit the RSI and do not express an opinion or provide any assurance on the RSI. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. Page 91 of 374 Honorable Mayor and Members of the City Council City of Englewood Page 2 Significant Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. We evaluated the key factors and assumptions used to develop the significant estimates in determining that they are reasonable in relation to the financial statements as a whole. Corrected and Uncorrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We noted no uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management because of our audit procedures. There were no corrected financial statement misstatements. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. Representations Requested from Management We have requested certain written representations from management, in a letter dated June 4, 2021. Page 92 of 374 Honorable Mayor and Members of the City Council City of Englewood Page 3 Difficulties Encountered in Performing the Audit We encountered no difficulties dealing with management during the audit process. We have requested certain representations from management that are included in the management representation letter. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a second opinion on certain situations. If a consultation involves the application of an accounting principle to the City’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to contact us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and the responses were not a condition to our retention. Conclusion This report is intended solely for the information and use of the Mayor, Members of the City Council, and management of the City of Englewood and is not intended to be, and should not be, used by anyone other than these specified parties. Greenwood Village, Colorado June 4, 2021 Page 93 of 374 Annual Comprehensive Financial Report 2020 City of Englewood 1000 Englewood Parkway Englewood, CO 80110 www.englewoodco.gov Year ended December 31, 2020 Page 94 of 374 CITY OF ENGLEWOOD, COLORADO ANNUAL COMPREHENSIVE FINANCIAL REPORT For Fiscal Year Ended December 31, 2020 Prepared by the Finance Department: Jackie Loh, Finance Director Kevin Engels, Finance Manager Christine Hart, Accounting Supervisor Kathy Cassai, Senior Accountant Heather Driscoll, Revenue and Tax Audit Supervisor Eva Boyd, Procurement Administrator The City of Englewood's Mission, Vision, and Organizational Values: Mission: To promote and ensure a high quality of life, economic vitality, and a uniquely desirable community identity. Vision: To promote and ensure a high quality of life, economic vitality, and a uniquely desirable community identity through the delivery of reliable, affordable, and flexible services and by proactively collaborating with our citizens and businesses to develop an environment that fosters safety and opportunity. Organizational Values: • Integrity • Trust • Respect • Excellence • Accountability • Teamwork Page 95 of 374 Table of Contents 1 ANNUAL COMPREHENSIVE FINANCIAL REPORT Year Ended December 31, 2020 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................ 5 Principal Officials .................................................................................................................................... 9 Organization Chart ................................................................................................................................ 10 2019 Certificate of Achievement for Excellence in Financial Reporting ................................................ 11 FINANCIAL SECTION Independent Auditor’s Report Management’s Discussion and Analysis .......................................................................................... 13 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ......................................................................................................... 30 Statement of Activities .............................................................................................................. 32 Fund Financial Statements Governmental Funds Balance Sheet ................................................................................................................... 34 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .............................................................................................................. 35 Statement of Revenues, Expenditures and Changes in Fund Balances ........................... 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................ 37 Proprietary Funds Statement of Net Position .................................................................................................. 38 Statement of Revenues, Expenses and Changes in Fund Net Position ............................ 42 Statement of Cash Flows ................................................................................................... 44 Fiduciary Funds Statement of Fiduciary Net Position ................................................................................... 48 Statement of Changes in Fiduciary Net Position................................................................ 49 Notes to the Financial Statements ............................................................................................... 51 Required Supplementary Information Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund ............................................................................... 91 Schedule of Changes in the Net Pension Liability-NonEmergency Pension ................................ 94 Schedule of Changes in the Net Pension Liability-Police Officers Old Hire Pension Plan ........... 95 Schedule of Changes in the Net Pension Liability-Firefighters Old Hire Pension Plan................. 96 Schedule of Changes in the Net Pension Liability-Volunteer Firefighters Pension Plan .............. 97 Schedule of Proportionate share of Net Pension Liability-Police Officers SWDB Pension Plan .. 98 Schedule of Proportionate share of Net Pension Liability-Police Officers Hybrid Pension Plan ... 99 Schedule of Net Pension Liability and Pension Expense-all plan .............................................. 100 Schedules of Employer Contributions ........................................................................................ 101 Schedules of Cost-Sharing Multiple Employer Pension Plans ................................................... 102 OPEB Schedule of Funded Status and Funding Progress ......................................................... 103 Page 96 of 374 Table of Contents 2 Page Notes to the Required Supplementary Information .................................................................. 104 Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet ...................................................................................................... 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................ 110 Schedules of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds – Budget and Actual Special Revenue Funds – Project Budget and Actual Conservation Trust Fund ................................................................................................. 112 Open Space Fund ........................................................................................................... 113 Special Revenue Funds – Budget and Actual Donors Fund .................................................................................................................... 114 Malley Center Trust Fund ................................................................................................ 115 Parks and Recreation Trust Fund .................................................................................... 116 Debt Service Funds – Budget and Actual General Obligation Bonds Debt Service Fund ................................................................. 117 Capital Projects Funds – Project Budget and Actual Public Improvement Fund................................................................................................ 118 Capital Projects Fund ...................................................................................................... 119 Police Headquarters Construction ................................................................................... 120 Schedules of Revenues, Expenditures and Changes in Funds Available – Enterprise Funds – Budget and Actual (Budgetary Basis) Water Fund ...................................................................................................................... 122 Sewer Fund ..................................................................................................................... 123 Golf Course Fund ............................................................................................................ 124 Storm Drainage Fund ...................................................................................................... 125 Concrete Utility Fund ....................................................................................................... 126 Housing Rehabilitation Fund ........................................................................................... 127 Internal Service Funds Combining Statement of Net Position ................................................................................ 129 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ...... 131 Combining Statement of Cash Flows ................................................................................. 133 Schedules of Revenues, Expenditures and Changes in Funds Available – Internal Service Funds – Budget and Actual (Budgetary Basis) ServiCenter Fund ............................................................................................................ 135 Capital Equipment Replacement Fund ............................................................................ 136 Employee Benefits Fund ................................................................................................. 137 Risk Management Fund .................................................................................................. 138 Page 97 of 374 Table of Contents 3 Page Component Units Englewood Environmental Foundation, Inc. Statements of Net Position ....................................................................................... 140 Statements of Revenues, Expenses and Changes in Fund Net Position ................. 141 Statements of Cash Flows ....................................................................................... 142 Englewood McLellan Reservoir Foundation, Inc. Statements of Net Position ....................................................................................... 143 Statements of Revenues, Expenses and Changes in Fund Net Position ................. 144 Statements of Cash Flows ....................................................................................... 145 Englewood Urban Renewal Authority Balance Sheet .......................................................................................................... 146 Statements of Revenues, Expenditures and Changes in Fund Balance .................. 147 Other Information Local Highway Finance Report ...................................................................................................... 149 Page 98 of 374 Table of Contents 4 STATISTICAL SECTION Schedule Number Page 1 Net Position by Component (accrual basis of accounting) .............................................. 152 2 Changes in Net Position (accrual basis of accounting) ................................................... 153 3 Fund Balances, Governmental Funds (modified accrual basis of accounting) ................ 155 4 Changes in Fund Balances, Governmental Funds (modified accrual basis of accounting) ..................................................................... 156 5 Tax Revenues by Source, Governmental Funds ............................................................. 157 6 Assessed Value and Estimated Actual Value of Taxable Property .................................. 158 7 Direct and Overlapping Property Tax Rates .................................................................... 159 8 Principal Property Tax Payers ......................................................................................... 160 9 Property Tax Levies and Collections ............................................................................... 161 10 Sales Tax Collections by Category .................................................................................. 162 11 Ratios of Outstanding Debt by Type ................................................................................ 163 12 Ratios of General Bonded Debt Outstanding .................................................................. 164 13 Direct and Overlapping Governmental Activities Debt ..................................................... 165 14 Legal Debt Margin Information ........................................................................................ 166 15 Pledged Revenue Coverage: Sewer Fund .............................................................................................................. 167 Golf Course Fund ..................................................................................................... 168 Storm Drainage Fund ............................................................................................... 169 16 Schedules of Future Debt Service Requirements ............................................................ 170 17 Demographic and Economic Statistics ............................................................................ 173 18 Principal Employers ......................................................................................................... 174 19 Full-time Equivalent Employees by Function/Program .................................................... 175 20 Operating Indicators by Function/Program ...................................................................... 176 21 Capital Asset Statistics by Function/Program .................................................................. 177 Page 99 of 374 5 June 4, 2021 The Honorable Mayor, City Council Members, and Citizens of the City of Englewood, Colorado State law requires that all local governments publish within seven months of the close of each year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by an independent certified public accountant. Pursuant to this requirement, the Department of Finance and Administrative Services is pleased to submit the Annual Comprehensive Financial Report of the City of Englewood, Colorado (the City) for the year ended December 31, 2020. This report is published to provide the City Council, City staff, our citizens, and other readers with detailed information concerning the financial position and activities of the City. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable rather than absolute, assurance that the financial statements are free of any material misstatements. To the best of our knowledge and belief, the enclosed report is accurate in all material respects and is organized in a manner designed to fairly present the financial position and results of operations of the City as measured by the financial activity of its various funds. The accompanying disclosures are necessary to enable the reader to gain the maximum understanding of the City’s financial affairs. Hinkle & Company, PC., Certified Public Accountants, have issued an unmodified (“clean”) audit opinion on the City of Englewood’s financial statements for the year ended December 31, 2020. The independent auditor’s report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Page 100 of 374 6 City Profile Located on the southern border of Denver, Colorado’s capital city, Englewood is approximately seven square miles and home to approximately 32,000 residents and 2,400 businesses. Due to easy access to two light rail train stations and the state and US highway systems, Englewood’s location offers short and convenient commutes to other areas within the Denver Metro Area and the Rocky Mountain range. The City’s mixed housing and retail environment encourages a pedestrian community. The City’s economy is comprised of retail, industrial, manufacturing, healthcare and service sectors. Englewood is said to have “small town” feel with the conveniences of big city amenities. Recreational opportunities abound in Englewood, including eleven parks, nine athletic fields, an award-winning recreation center, a golf course, and one of the most successful senior centers in the region. The Pirates Cove aquatic center offers a variety of family aquatic activities. In addition to the recreational opportunities, the City provides a full range of services, including police (1 Station), the construction and maintenance of streets and other infrastructure, library services and general government services. The City operates its own water treatment plant and distribution system, maintains a wastewater collection system and manages a jointly held regional wastewater treatment plant with the City of Littleton, a neighboring city to the south. The City of Englewood is a municipal corporation with a Council-Manager form of government. Members of the seven member council are elected to staggered four year terms with term limits of three consecutive terms. The Mayor and Mayor Pro-Tem are selected from among the Council members. The City Council is responsible, among other things, for passing ordinances and resolutions, adopting the budget, appointing committees, and hiring the City Manager and City Attorney. The City Manager is responsible for overseeing the day-to-day operations of the City, and for appointing heads of the various departments. The City of Englewood has several boards and commissions made up of council members, residents, local businesspeople, and others who are interested in their community. Members are interviewed and appointed by City Council, and provide guidance for many of Englewood's programs and projects. The Englewood School District operates several educational facilities throughout the City - Early Childhood (2), Elementary (4), Middle Schools (2), High School (1) and Alternative High School (1). Englewood residents have direct light rail access to two college campuses. To the south, Arapahoe Community College offers comprehensive courses leading to both the Associate of Arts and the Associates of Science degrees. To the north, the 37,000-student Auraria campus is home to three colleges: the University of Colorado at Denver, the Community College of Denver and Metropolitan State University of Denver. Other four year colleges/universities in the Denver Metro area include: University of Colorado-Boulder, Colorado State University (Fort Collins), University of Northern Colorado (Greeley), Colorado School of Mines (Golden), Regis University (Denver) and University of Denver. As required by generally accepted accounting principles (GAAP), these financial statements present the City of Englewood (the primary government) and its component units. The component units, the Englewood Urban Renewal Authority (EURA), the Englewood Environmental Foundation, Inc. (EEF) and the Englewood McLellan Reservoir Foundation, Inc. (EMRF) are discretely reported in separate columns of the government-wide financial statements to emphasize that they are legally separate from the City. Each discretely presented component unit has a December 31 year-end. Separate financial statements are not prepared for EURA, EEF or the EMRF. Additional information on all three entities can be found throughout the notes to the financial statements. The annual budget serves as the foundation for the City’s financial planning and control. The City Manager must submit the proposed budget to City Council for review by September 15 of each year. The council must hold public hearings within three weeks after the proposed budget is submitted and a final budget must be prepared and adopted by December 1 of each year. The budget is prepared by fund (e.g., General Fund) and department (e.g., Public Works). Approval of the City Council is required for budget revisions, except that the City Manager may transfer any unencumbered appropriation from one expenditure classification to another for the same fund. In the General Fund, the City Manager may transfer the unencumbered appropriation balance from one expenditure classification to another only within departments. Page 101 of 374 7 State and Local Economy Colorado The 2021 forecast is taken from the Colorado Business Economic Outlook 2021 prepared by the Business Research Division of the University of Colorado Leeds School of Business. The Colorado Business Economic Outlook 2021 reports that in 2020, due largely to the COVID-19 pandemic the U.S. economy ended its longest expansion period since the end of World War II. Colorado will likely fall out of the top 10 states for employment growth in 2020 and 2021 given the service sector impact. Employment growth is projected in nine of the 11 industries in 2021. Changing consumer preferences, from housing to shopping, will continue to have disparate impacts on Colorado communities. Work-from-home behaviors will impact commercial real estate, transportation, retail sales, and workplace dynamics. Population in 2021 will grow by the lowest number since 2003. The state will still add an estimated 53,300 people, with 35,100 coming from net immigration according to the State Demography Office. Metro Denver The 2020-2021 economic update for the seven-county Denver Metro Area (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson) is from the September 2020 Focus Colorado: Economic and Revenue Forecast report prepared by the Colorado Legislative Council (CLC). The CLC provides non- partisan economic research to the Colorado General Assembly. The impact of the COVID-19 pandemic and related recession have taken a toll on the metro Denver's labor market and nonresidential construction market while the prices of the housing market remain elevated and demand for residential real estate and construction relatively hot. The job market experienced year-to-date through July a 4.0 percent decline in the number of jobs as compared to the same period last year. Between January and April, the region experienced 197,800 jobs loss (more than one in every ten jobs) of which 73,200 have been recovered between May and July. The metro Denver area is home to a wide range of tourism City of Englewood, Colorado 20 BUDGET 2021 and business- related travel activities, as Denver International Airport (DIA) is the main air transit hub in and out of Colorado. While conditions have improved since the lows experience in April, ongoing reduced air travel and social distancing due to COVID-19 mitigation efforts continue to hit employment hard in the leisure and hospitality industries, including the performing arts and entertainment, hotels, brick-and-mortar retail establishments, restaurants and bars. The metro Denver area is also home to a large number of oil and gas firms, many of which have reduced the size of their workforce amid the low energy price environment. The unemployment rate rose from 2.6 percent in February to a high of 12.2 percent in April before dropping to 9.9 percent in June. Year-to-date through June, the regional unemployment rate is 7.0 percent. The housing market prices, in the metro Denver area as well as in other regions around the state, continue to moderate. Although the impact of COVID-19-related mitigation efforts have limited the number of homes put on the market in recent months, the metro Denver area home prices will remain elevated in the near term as demand continues to outstrip supply. According to the Denver Metro Association of Realtors data, August 2020 recorded the most home sales of any August in spite of the lowest inventory of any August on record. Also, in the first half of 2020, the metro Denver residential construction activity slowed. Permits for new single-family residential construction activity in the Denver-Aurora metropolitan statistical area (MSA) fell 3.8 percent year- to-date through July relative to the same period last year. The nonresidential construction market in the metro Denver continues to moderate since the recent peak experienced in 2016. The square footage and number of projects continue to decline during the first seven months of 2020 relative to prior year comparative levels. The impact of the COVID-19 pandemic has resulted in a shift toward working remotely which is expected to put downward pressure on demand for commercial real estate and a slowdown in nonresidential construction/building activity in the years ahead. Future nonresidential building activity is expected to favor nonresidential development that supports e-commerce, such as warehousing space in contract to prior construction of office space and new commercial storefronts or brick- and-mortar retail establishments. Page 102 of 374 8 Long-term Financial Planning At the end of the year, assigned and unassigned fund balances for the general fund totaled $18,221,066, or 33.8% of total General Fund revenues. Total 2021 General Fund revenues, including transfers, are estimated at $52,666,371 or $1,264,502 less than 2020 actual revenues. Total 2021 general fund expenditures are budgeted at $54,521,582 or $3,395,789 more than the 2020 actual expenditures. The City is mature and landlocked; however, several development and redevelopment opportunities exist. These opportunities will influence the local economy and are a potential source of revenue for the City of Englewood. Relevant Financial Policies General Fund Balance The unassigned fund balance target for the General Fund is between 16.7% of total General Fund revenues or approximately two months of General Fund budgeted expenditures. If the unassigned fund balance falls below the minimum target balance, additional sources of funds and/or reductions of uses of funds are identified to bring the balance to the desired level. Long Term Asset Reserve (LTAR) This General Fund balance accumulates funds from the sale, lease, or earnings from long-term assets. It was also determined that these funds should be used in a careful, judicious and strategic manner. The funds committed in this account may only be expended if appropriated in the annual budget or by supplemental appropriation by City Council. The balance in the reserve was $4,994,869 at the end of 2020. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Englewood for its annual comprehensive financial report for the fiscal year ended December 31, 2019. This was the 37th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. This report would not have been possible without the efficient and dedicated service of the entire staff of the Finance Department. We wish to express our appreciation to all members of the Department who assisted and contributed to the preparation of this report. We would also like to thank the City’s staff and members of City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, J Shawn Lewis City Manager Jackie Loh Finance Director Page 103 of 374 9 City of Englewood, Colorado Principal Officials Elected Officials City Council Mayor...............................................................................Linda Olson, District 2 Mayor Pro-Tem...........................................................Othoniel Sierra, District 1 Council Member............................................................Joe Anderson, District 3 Council Member.............................................................Dave Cuesta, District 4 Council Member...............................................................Rita Russell, At-Large Council Member................................................................Steve Ward, At-Large Council Member...............................................................Cheryl Wink, At-Large Municipal Judge .............................................................................. Joseph Jefferson City Officials City Manager ....................................................................................... J. Shawn Lewis Assistant to the City Manager………………………………………………..……Tim Dodd Assistant City Attorney ........................................................................... Dugan Comer Community Development Director .............................................................. Brad Power Finance and Administrative Services Director .............................................. Jackie Loh Information Technologies Director .............................................. Margaret Brocklander Human Resources Director ................................................................... Ronda Henger Municipal Court Administrator ................................................................. Tamara Wolfe Parks, Recreation and Library Services Director…………………..…Christina Underhill Police Chief ............................................................................................... John Collins Public Works Director…....................................................................... Maria D’Andrea Utilities and South Platte Renew Director…………………………………..Pieter Van Ry Page 104 of 374 Citizens of Englewood City Council Municipal Judge Municipal Court City Manager City Attorney Deputy City Attorney Prosecutor's OfficeAssistant City Manager Finance Department Community Development Department Firefighters Pension Board Board of Adjustments & Appeals Cultural Arts Commission Liquor & Medical Marijuana Licensing Authority Urban Renewal Authority Park & Recreation Commission Election Commission Library Board Planning & Zoning Commission Police Pension Board Malley Center Trust Fund Code Enforcement Advisory Committee Transportation Advisory Committee Alliance for Commerce in Englewood Keep Englewood Beautiful City of Englewood, Colorado - Organizational Chart Englewood Housing Authority NonEmergency Retirement Board Water & Sewer Board Budget Advisory Committee Parks, Recreation and Library Services Department Police Department Public Works Department South Platte Renew Treatment Plant Fire Contract Information Technology Department Utilities Department Communications Department10Page 105 of 374 Government Finance Officers Association Certificate of Achievem ent for E xcellence in Financial Reporting Presented to City of Englewood Colorado For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 Executive Director/CEO 11 Page 106 of 374 12 THIS PAGE LEFT BLANK INTENTIONALLY Page 107 of 374 5950 S. Willow Dr., Ste. 302 Greenwood Village, Colorado 80111 TEL: 303.796.1000 FAX: 303.796.1001 www.HinkleCPAs.com Independent Auditors’ Report Honorable Mayor and Members of the City Council City of Englewood Englewood, Colorado We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of the City of Englewood as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the basic financial statements of the City of Englewood, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Page 108 of 374 Honorable Mayor and Members of the City Council City of Englewood Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate discretely presented component units and remaining fund information of the City of Englewood as of December 31, 2020, and the respective changes in financial position and cash flows, where applicable, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Englewood’s basic financial statements. The introductory section, combining and individual fund statements and schedules, other information, and statistical section listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules and the other information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling the information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Greenwood Village, Colorado June 4, 2021 Page 109 of 374 13 Management’s Discussion and Analysis As management of the City of Englewood, Colorado (the “City”), we offer readers of the City’s Annual Comprehensive Financial Report, this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlights •The assets of the City exceeded its liabilities at the close of 2019 by $199.1 million ($90.1 million in governmental activity net position and $108.6 million in business-type activity net position). Of the governmental activities net position total, $30.5 million, or 33.8%, is unrestricted and may be used to meet the City’s obligations to the public and creditors. Similarly, $59.0 million, or 54.3%, of business-type activity net position is unrestricted. At the end of 2020 the City also had deferred outflows of $5.4 million and deferred inflows of $10.2 million. •The City’s total net position increased by $5.0 million, or 2.6% compared to 2019. Net position of the City’s governmental activities decreased $1.7 million, or 1.9%. Net position of the business-type activities increased $6.7 million, or 6.6%, from 2019. •The total cost of the City’s programs increased $16.1 million, or 20.5%, compared to 2019. The cost of governmental activities program expenses increased $14.0 million to $66.1 million, and the cost of business-type activities increased $2.1 million. •Total revenues increased $5.31 million or 5.4%, compared to 2019. Governmental activities revenues increased $2.1 million, or 3.4%, to $64.4 million while revenues of business-type activities increased $3.0 million or 9.3% to $35.3 million compared to 2019. •The City’s governmental funds reported combined ending fund balances of $47.2 million, an increase of $1.6 million when compared to 2019. Of the combined ending governmental fund balances, approximately 78.0% or $36.8 million is available for spending at the City’s discretion subject to the City Council’s approved policies (committed, assigned and unassigned fund balances). •The General Fund reported a fund balance of $24.9 million as of December 31, 2020, of which $1.7 million is restricted for TABOR emergencies, $5.0 million is committed to Long Term Asset Reserve and $18.2 million is unassigned. •The net pension liability reported in the City’s governmental activities for 2020 is $11.5 million compared to $10.5 million in 2018. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, liabilities and deferred inflows and outflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial 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 a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, which consists of the City Council and the various Boards and Commissions, the City Attorney’s Office, Municipal Court, the City Manager’s Office, Community Development, Human Resources, Finance and Page 110 of 374 14 Administrative Services and Information Technology. Governmental activities also include Police, Public Works and Culture and Recreation (including Library Services). The business-type activities of the City include the water, sewer, golf course, storm drainage, concrete utility and housing rehabilitation operations. The government-wide financial statements include not only the City itself (known as the primary government), but also the Englewood Urban Renewal Authority (EURA), the Englewood Environmental Foundation, Inc. (EEF) and the Englewood McLellan Reservoir Foundation, Inc. (EMRF). All three (known as component units) are legally separate entities for which the City is financially accountable. Financial information for these component units are reported separately from the financial information presented for the primary government itself. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains eleven individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and the Police Headquarters Construction Fund, which are considered to be major funds. Data from the other nine governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the budget. Proprietary funds. The City maintains 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 uses enterprise funds to account for six separate operations: Water, Sewer, Golf Course, Storm Drainage, Concrete Utility and Housing Rehabilitation. Internal service funds are an accounting device to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for in-house printing, vehicle replacement and maintenance, and insurance costs. Because these services predominantly benefit governmental rather than business-type functions, they are primarily included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the six enterprise operations, all of which are considered major funds of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements later in this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information (RSI) including the City’s progress in funding its obligation to provide pension and other post-employment benefits to employees. Page 111 of 374 15 The combining statements referred to earlier in connection with non-major governmental and proprietary funds as well as budget to actual schedules for all funds are presented immediately following the RSI. Government-wide Financial Analysis A. Analysis of Net position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The analysis below focuses on the net position and changes in net position of the City’s governmental and business-type activities. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the governmental and business-type activities. The same is true for the prior year. Table 1 presents an analysis of the City’s net position as of December 31. The City’s assets exceeded liabilities by $199.1 million at the close of 2020. Governmental activities make up $90.5 million or 45.5% of these assets, with business-type activities making up the remaining $109.0 million or 54.5%. Total net position increased by $5.0 million in 2020. The increase is comprised of the following: • Total assets and deferred outflows of resources decreased by $1.0 million during 2020. • Total liabilities and deferred inflows of resources decreased by $6.0 million due primarily to debt service payments. Capital assets make up 47.1% or $147.1 million. This represents the City’s investment in capital assets (e.g., land, buildings, machinery and equipment). Net Capital assets are reported less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay the debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, $10.7 million or 5.4% represents resources that are subject to external restrictions on how they may be used. The unrestricted net position of the City’s utility funds, $59.0 million or 54.3% may be used to meet the government’s ongoing obligations to citizens and creditors. Of the $30.1 million of unrestricted net position attributed to governmental activities, $8.2 million represents the unrestricted net position of the City’s internal service funds. Table 1 City of Englewood Summary of Net Position Governmental Business-type Total Activities Activities Primary Government 2020 2019 2020 2019 2020 2019 Assets Current and other assets 67,393,962$ 66,294,267$ 97,847,387$ 93,804,579$ 165,241,349$ 160,098,846$ Capital assets 85,890,396 91,091,414 61,267,376 62,829,645 147,157,772 153,921,059 Total assets 153,284,358 157,385,681 159,114,763 156,634,224 312,399,121 314,019,905 Total deferred outflows of resources 4,768,001 4,603,841 672,839 149,287 5,440,840 4,753,128 Liabilities Long-term liabilities 48,622,641 51,311,260 30,995,365 35,534,982 79,618,006 86,846,242 Other liabilities 9,825,728 10,309,807 19,129,534 18,829,116 28,955,262 29,138,923 Total liabilities 58,448,369 61,621,067 50,124,899 54,364,098 108,573,268 115,985,165 Total deferred inflows of resources 9,093,989 8,123,112 1,103,576 548,623 10,197,565 8,671,735 Net Position Net investment in capital assets 49,576,249 46,051,488 49,345,623 49,998,869 98,921,872 96,050,357 Restricted 10,388,774 11,219,493 318,273 318,273 10,707,047 11,537,766 Unrestricted 30,544,978 34,974,362 58,895,231 51,553,648 89,440,209 86,528,010 Total net position 90,510,001$ 92,245,343$ 108,559,127$ 101,870,790$ 199,069,128$ 194,116,133$ Page 112 of 374 16 B. Analysis of Changes in Net position As presented in Table 2, the City of Englewood’s overall net position increased by $5.0 million during 2020. This change is explained in the governmental and business-type activities discussion below. Governmental Activities • Net position of governmental activities decreased by $1.7 million during 2020. • Governmental revenues increased by approximately $2.1 million or 3.4% compared to 2019. This increase is primarily due to additional grant funds received related to COVID-19. • Governmental expenses increased by approximately $14.0 million or 27% from 2019. The primary reason for this increase from the prior year is $7.8 million for the construction of the police headquarters building in 2019 and an increase of $3.8 million related to pension liability and deferred inflows and outflows. Page 113 of 374 17 Table 2 City of Englewood Summary of Changes in Net Position For Years Stated Governmental Business-type Total Activities Activities Primary Government Revenues 2020 2019 2020 2019 2020 2019 Program revenues Permits, fees, fines and charges for services 11,218,570$ 11,018,715$ 33,480,750$ 30,775,186$ 44,699,320$ 41,793,901$ Operating grants and contributions 2,066,639 1,748,662 192,911 99,291 2,259,550 1,847,953 Capital grants and contributions 1,432,176 - 848,491 541,610 2,280,667 541,610 General Revenues Taxes 47,502,517 47,023,201 - - 47,502,517 47,023,201 Investment earnings 740,608 1,491,939 728,937 840,041 1,469,545 2,331,980 Other 1,411,060 947,260 - - 1,411,060 947,260 Total revenues 64,371,570 62,229,777 35,251,089 32,256,128 99,622,659 94,485,905 Expenses General government 16,672,576 11,287,075 - - 16,672,576 11,287,075 Public Safety 24,199,549 20,662,812 - - 24,199,549 20,662,812 Public works 13,313,459 10,210,624 - - 13,313,459 10,210,624 Culture and recreation 10,558,632 8,406,428 - - 10,558,632 8,406,428 Interest on long-term debt 1,362,696 1,475,670 - - 1,362,696 1,475,670 Water - - 8,819,692 7,557,126 8,819,692 7,557,126 Sewer - - 15,841,630 15,265,778 15,841,630 15,265,778 Golf Course - - 2,107,097 2,225,440 2,107,097 2,225,440 Storm - - 810,291 508,484 810,291 508,484 Concrete - - 796,443 746,525 796,443 746,525 Housing rehabilitation - - 187,599 158,535 187,599 158,535 Total expenses 66,106,912 52,042,609 28,562,752 26,461,888 94,669,664 78,504,497 Increase (decrease) in Net Position Change in Net Position (1,735,342) 10,152,969 6,688,337 5,794,240 4,952,995 15,981,408 Net Position - beginning 92,245,343 82,092,374 101,870,790 96,076,550 194,150,332 178,168,924 Net Position - ending 90,510,001$ 92,245,343$ 108,559,127$ 101,870,790$ 199,103,327$ 194,150,332$ Page 114 of 374 18 The following graphs provide visual representations of the expenses and revenues for governmental activities for 2020. Page 115 of 374 19 Business-type Activities Overall the Business-type activities increased the total net position of the City by $6.9 million in 2020. The water fund experienced an increase in net position of $2.2 million compared to an increase of $1.7 million in 2019. Water rates were increased 4% on January 1, 2020. The rate increase along with an increase in raw water sales and a modest increase in operating expenses left the fund with a net operating income of $1.6 million. This, along with earnings on investments and other income covered the interest on long-term debt of $282,586. The sewer fund saw an increase in net position of $3.9 million compared to an increase of $2.8 million in 2019. The fund experienced net operating income of $7.5 million in 2020 compared to $2.5 million in 2019. A sewer rate increase of 4% was implemented in 2020. The rate increase is designed to provide additional resources to meet debt service requirements, capital improvements, and to fund ongoing operations and maintenance requirements. The 2004 sewer fund loans issued by the Colorado Water Resource and Power Development Agency were refinanced in 2015 and will save the fund approximately $2.1 million in financing fees over the remaining life of the loans which have a final payment date of 2025. The golf course fund experienced a decrease in net position of $81,800 compared to an increase of $90,800 in 2019. The storm drainage, and concrete utility funds had net position increases of $441,200 and $97,400 respectively when compared to 2019 and the housing rehabilitation fund had a decrease in net position of $24,000 when compared to 2019. Page 116 of 374 20 The following graphs provide visual representations of the expenses and revenues for business-type activities for 2020. Page 117 of 374 21 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. A. Governmental funds The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is necessary to assess the City’s financing requirements. Types of governmental funds reported by the City include the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the year. At December 31, 2020, the City’s governmental funds reported combined ending fund balances of $47.2 million, a decrease of $1.3 million, or 2.6%, compared to 2019. $36.8 million (78.0%) constitutes committed, assigned and unassigned balances, which are available for spending at the City’s discretion. Of the committed fund balance, $5.0 million is for the Long Term Asset Reserve (LTAR) balance. The remainder of fund balance is restricted for the following purposes: Restricted for parks and recreation $4,474,436 Restricted for law enforcement 3,535,594 Restricted for debt service 658,744 Restricted for TABOR emergency 1,720,000 The General Fund is the primary operating fund of the City. At the end of 2020, unassigned fund balance of the General Fund was $18.2 million while total fund balance was $24.9 million. As a measure of the General Fund’s liquidity, it may be useful to compare both assigned and unassigned fund balance and total fund balance to total fund expenditures. Assigned and unassigned fund balances represent 36% of total General Fund expenditures, down from 44% in 2019, while total fund balance represents 49% of that same amount (up from 47% in 2019). The total fund balance of the City’s General Fund increased by $2.8 million during 2020. Revenues increased by $2.2 million or approximately 4.3% and expenditures increased $4.2 million or approximately 9.0%. Key factors are as follows: • Grant revenues related to COVID-19 increase revenues by $2.8 million. This was offset by an equal amount of COVID-19 related expenditures during 2020. • Net transfers in the amount of ($2,976,401) were made out of the General Fund in 2019. Net transfers into the General Fund for 2020 were $127,014. Page 118 of 374 22 The original 2020 expenditure budget adopted in 2019 for the General Fund was $53,089,689. Actual expenditures were $3.3 million less than the final amended budget amount, a 6.0% favorable variance. This is primarily due to salary savings related to COVID-19 restrictions that forced the cancellation of many recreation related activities, therefore related hiring did not occur. Actual revenues were $2.2 million more than the final amended budget amount, a 4.3% variance. As stated earlier and as the chart below illustrates, this increase was primarily due to the receipt of approximately $2.8 million of COVID-19 related grant funding. Charts 6 and 7 illustrate the Budget and Actual Revenue and Expenditures for the General Fund. Page 119 of 374 23 Page 120 of 374 24 Fund Balance represents the accumulated excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses, and therefore reflects cumulative results over time. Total Fund Balance consists of restricted, committed and unassigned portions. Only the committed and unassigned portions are available to finance future operations. B. Proprietary funds. The City’s proprietary funds provide the same type of information in the government-wide financial statements, but in more detail. Net position of the enterprise operations at December 31, 2020 follow: Other factors concerning the finances of the enterprise funds have already been addressed in the discussion of the City’s business-type activities. Change in Net Position Net Position Water 40,649,211$ 2,200,862$ Sewer 33,530,612 3,962,434 Golf 13,221,347 81,785 Storm drainage 3,605,581 441,202 Concrete utility 13,328,511 97,436 Housing rehabilitation 2,648,599 (24,034) Total net position 106,983,861$ 6,759,685$ Page 121 of 374 25 Capital Assets and Debt Administration A. Capital assets As can be seen from the table below, the City’s investment in capital assets for its governmental and business-type activities as of December 31, 2020 amounts to $147.2 million (net of accumulated depreciation). This investment in capital assets includes land, plant, buildings, improvements, machinery and equipment, roads and bridges. The total decrease in capital assets for the current year was $6.8 million, or 4.4%. Net capital assets of governmental activities decreased approximately $5.2 million while business-type activities decreased by $1.6 million. Major capital asset activity during 2020 included the following: Governmental Activities: • Small asset additions were offset by $4.2 million of depreciation on existing assets • $1.4 million of assets were disposed of Business-type Activities • $290,000 in new concrete sidewalks and alley pans were installed in the City • The golf course added $127,000 of new equipment • These additions were offset by $2.0 million of depreciation on existing assets The following tables provide comparative information on the City’s capital assets for 2020 and 2019: Additional information on capital assets can be found in the notes to the financial statements (Note 2C). Capital Assets at Year-end (Net of Depreciation) Governmental Business-type Total Activities Activities Primary Government 2020 2019 2020 2019 2020 2019 Land and improvements 15,558,961$ 15,558,961$ 11,522,825$ 11,522,825$ 27,081,786$ 27,081,786$ Works of art 273,750 273,750 - - 273,750 273,750 Raw water - - 6,235,212 6,235,212 6,235,212 6,235,212 Infrastructure 7,651,245 8,946,583 23,373,794 24,329,581 31,025,039 33,276,164 Improvements 10,618,341 5,788,081 13,405,401 13,632,677 24,023,742 19,420,758 Buildings 45,763,123 24,931,700 6,071,144 6,415,952 51,834,267 31,347,652 Machinery and equipment 4,967,209 5,712,387 659,000 693,398 5,626,209 6,405,785 Construction in process 1,057,767 29,879,952 - - 1,057,767 29,879,952 Total capital assets 85,890,396$ 91,091,414$ 61,267,376$ 62,829,645$ 147,157,772$ 153,921,059$ Page 122 of 374 26 B. Debt Administration The City’s bond ratings carry investment grade ratings as follows: City Charter limits the amount of general obligation debt the City may issue to 3% of its actual total assessed valuation. The current debt limitation for the City is $189.6 million, which is significantly in excess of the City’s actual outstanding general obligation debt that is subject to this limitation of $31.5 million. At the end of 2020, the City had total long-term debt of $73.6 million as follows: Additional information on the City’s long-term obligations can be found in the notes to the financial statements (Note 2E and 2F). Next Year’s Budget The 2021 Budget allows for some vacant positions to be filled and a $3.0 million transfer out of the General Fund for capital projects. Staffing and service levels are maintained as close to 2020 levels as possible while allowing for salary increases and inflationary adjustments to commodities. The following were the general guidelines for the 2020 Budget: • Salary increases are based on union contracts, market surveys and performance reviews. • Health, dental, and other insurance premiums were negotiated and provided by Human Resources. Increasing health care and insurance costs continue to play a major role in budgeting decisions. • Required pension contributions were determined by applicable actuarial studies (defined benefit) or pre-determined contribution levels (defined contribution). • The increase for commodities, contractual, and capital expenditures was held as close as possible to 2020 levels. • Capital items were submitted separately, ranked by relative importance and included in the Multiple Year Capital Plan (MYCP). The 2021 General Fund is projecting a balanced budget with expenditures equaling revenues, excluding the previously mentioned $3.0 million transfer. The proposed General Fund unassigned fund balance for 2021 is projected at 28.5% of projected revenues. The City adopted a new fund balance policy in 2017 that places a targeted fund balance in the General Fund equal to two months of operations or 16.7%. Bond Issue Standard & Poors Moody's General Obligation AA+A2 COPs *AA Aa3 General Obligation Water *AA Aa2 Golf Course Enterprise Not requested Not requested Storm Water Enterprise Not requested Not requested * Ratings were upgraded by Standard and Poors in 2014 * Ratings were upgraded by Moody's in 2018 Outstanding Debt, at Year-end Governmental Business-type Total Activities Activities Primary Government 2020 2019 2020 2019 2020 2019 General obligation bonds 26,275,000$ 28,195,000$ 9,760,000$ 10,415,000$ 36,035,000$ 38,610,000$ Revenue bonds - - 1,990,000 2,195,000 1,990,000 2,195,000 Capital leases 4,843,976 6,269,147 - - 4,843,976 6,269,147 Premiums 5,195,171 5,433,287 344,581 386,953 5,539,752 5,820,240 Notes payable - - 18,535,864 21,896,292 18,535,864 21,896,292 Net OPEB Liability 3,354,882 3,460,606 1,291,226 1,331,917 4,646,108 4,792,523 Compensated absences 1,808,486 1,681,886 217,660 245,647 2,026,146 1,927,533 Total outstanding debt 41,477,515$ 45,039,926$ 32,139,331$ 36,470,809$ 73,616,846$ 81,510,735$ Page 123 of 374 27 Estimated Revenues Before interfund transfers, total General Fund revenues are projected at $52.5 million for 2021; this is a 1% decrease from the 2020 revenue budget of $53.0 million. Sales and use tax revenues, which comprised approximately 60.0% of General Fund revenues in 2020, are estimated at $32.5 million for 2020, which is virtually flat from 2020. The sales and use tax estimate is based on historical collections and projected economic conditions. Expenditure Appropriations 2021 expenditure appropriations are projected at $54.5 million. Net Transfers The transfers-in to the General Fund are estimated at $130,521. Other 2021 information Salary and wages for all City department budgets are based on the City’s performance and market pay philosophy along with negotiations between the City and its two employee collective bargaining contracts. The City’s cost to provide healthcare insurance coverage to eligible employees is expected to increase by 4% 2021. Excluding personnel, fuel and energy costs, minimal increases are proposed for all other operating and maintenance costs for 2021. In the event of General Fund shortfalls in revenues or unanticipated expenditures over the next year and for the next several years, City management and City Council will need to closely monitor expenditures and revenues to maintain the goal of a 16.7% unassigned and LTAR fund balance compared to total revenue. Looking to 2021 and beyond, the City will be actively looking for ways to reduce operating expenditures and identify new sources of revenues. Collectively, it is believed that the City will be able to meet the financial challenges of the future. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. This report and additional financial information is also available on the City’s website at www.englewoodgov.org. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Department of Finance and Administrative Services, 1000 Englewood Parkway, Englewood, Colorado, 80110-2373. Page 124 of 374 28 THIS PAGE LEFT BLANK INTENTIONALLY Page 125 of 374 BASIC FINANCIAL STATEMENTS 29 Page 126 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Net Position December 31, 2020 Primary Government Governmental Business-Type Assets Activities Activities Total Cash and investments 53,262,732$ 38,148,016$ 91,410,748$ Receivables: Property taxes 7,556,000 - 7,556,000 Sales and use taxes 4,397,099 - 4,397,099 Interest 193,407 132,422 325,829 Accounts 1,980,026 5,792,164 7,772,190 Intergovernmental 752,236 - 752,236 Other - 799,457 799,457 Land held for resale - - - Internal balances (1,575,266) 1,575,266 - Inventories 128,758 279,449 408,207 Other assets - - - Equity in joint venture - 47,033,111 47,033,111 Restricted assets - cash and investments - 2,568,273 2,568,273 Noncurrent notes receivable - 1,519,229 1,519,229 Net pension asset 698,970 - 698,970 Lease receivable - - - Capital assets not being depreciated 16,890,478 17,758,037 34,648,515 Capital assets, net of accumulated depreciation 68,999,918 43,509,339 112,509,257 Total assets 153,284,358 159,114,763 312,399,121 Deferred Outflows of Resources Pension related deferred outflows 4,768,001 544,872 5,312,873 Deferred charge on refunding - 127,967 127,967 Total deferred outflows of resources 4,768,001 672,839 5,440,840 Liabilities Accounts payable 1,741,306 672,063 2,413,369 Accrued payroll and related liabilities 726,515 120,494 847,009 Unearned revenue 2,069,790 10,052,048 12,121,838 Other liabilities 63,907 3,393,440 3,457,347 Accrued interest payable 122,996 414,932 537,928 Claims payable 747,158 - 747,158 Noncurrent liabilities: Due within one year 4,354,056 4,476,557 8,830,613 Due in more than one year 48,622,641 30,995,365 79,618,006 Total liabilities 58,448,369 50,124,899 108,573,268 Deferred Inflows of Resources Deferred revenue-property tax 7,556,000 - 7,556,000 Pension related deferred inflows 1,537,989 1,103,576 2,641,565 Total deferred inflows of resources 9,093,989 1,103,576 10,197,565 Net Position Net investment in capital assets 49,576,249 49,345,623 98,921,872 Restricted for: Debt service 658,744 318,273 977,017 Parks and recreation 4,474,436 - 4,474,436 Law enforcement 3,535,594 - 3,535,594 TABOR emergencies 1,720,000 - 1,720,000 Unrestricted 30,544,978 58,895,231 89,440,209 Total net position 90,510,001$ 108,559,127$ 199,069,128$ The notes to the financial statements are an integral part of this statement. 30 Page 127 of 374 Component Units EURA EEF EMRF 476,489$ 1,043,522$ 122,045$ - - - - - - 1,547 4,515 1,294 - 10,759 - - - - - - - 71,626 - - - - - - - - - 82,724 5,608 - - - - - - 1,117,093 - - - - - - 4,157,832 - - 8,496,257 5,706,166 - 1,975,610 - 1,666,755 15,771,219 5,835,113 - - - - 17,168 - - 17,168 - - 380,957 - - - - - - 39,147 - - 47,391 - 7,376 - - - - - 1,363,000 - - 2,812,000 - - 4,563,333 86,538 - - - - - - - 6,296,867 5,706,166 - - - - - - - - - - - - 1,666,755 4,928,187 42,409 1,666,755$ 11,225,054$ 5,748,575$ 31 Page 128 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Activities For the Year Ended December 31, 2020 Program Revenues Permits, Fees,Operating Capital Fines, and Charges Grants and Grants and Function/Program Activities Expenses for Services Contributions Contributions Primary government: Governmental Activities: General government 16,672,576$ 9,498,901$ 84,953$ -$ Public safety 24,199,549 207,993 113,563 - Public works 13,313,459 270,977 - 1,432,176 Culture and recreation 10,558,632 1,240,699 1,868,123 - Interest and fiscal charges 1,362,696 - - - Total governmental activities 66,106,912 11,218,570 2,066,639 1,432,176 Business-type Activities: Water 8,819,692 10,113,073 66,246 475,725 Sewer 15,841,630 19,106,663 - 372,766 Golf 2,107,097 2,151,464 - - Storm 810,291 1,224,068 - - Concrete 796,443 868,165 - - Housing Rehabilitation 187,599 17,317 126,665 - Total business-type activities 28,562,752 33,480,750 192,911 848,491 Total primary government 94,669,664$ 44,699,320$ 2,259,550$ 2,280,667$ Component Units: EURA 1,000$ -$ -$ -$ EEF 1,859,475 1,327,966 - - EMRF 1,906,404 1,698,745 - - Total component units 3,766,879$ 3,026,711$ -$ -$ General revenues: Property taxes Sales and use taxes Franchise tax and other taxes Unrestricted investment earnings Unrestricted grants and contributions Miscellaneous Total general revenues Change in net position Net position - beginning Net position - ending The notes to the financial statements are an integral part of this statement. 32 Page 129 of 374 Net (Expense) Revenues and Change in Net Position Primary Government Component Units Governmental Business-Type Activities Activities Total EURA EEF EMRF (7,088,722)$ (7,088,722)$ (23,877,993) (23,877,993) (11,610,306) (11,610,306) (7,449,810) (7,449,810) (1,362,696) (1,362,696) (51,389,527) (51,389,527) - 1,835,352$ 1,835,352 - 3,637,799 3,637,799 - 44,367 44,367 - 413,777 413,777 - 71,722 71,722 - (43,617) (43,617) - 5,959,400 5,959,400 (51,389,527) 5,959,400 (45,430,127) (1,000)$ -$ -$ - (531,509) - - - (207,659) (1,000) (531,509) (207,659) 7,923,893 - 7,923,893 - - - 35,957,272 - 35,957,272 - - - 3,621,352 - 3,621,352 - - - 740,608 728,937 1,469,545 54,344 17,591 5,490 248,425 - 248,425 - - - 1,162,635 - 1,162,635 - - 50,000 49,654,185 728,937 50,383,122 54,344 17,591 55,490 (1,735,342) 6,688,337 4,952,995 53,344 (513,918) (152,169) 92,245,343 101,870,790 194,116,133 1,613,411 11,738,972 5,900,744 90,510,001$ 108,559,127$ 199,069,128$ 1,666,755$ 11,225,054$ 5,748,575$ 33 Page 130 of 374 CITY OF ENGLEWOOD, COLORADO Balance Sheet Governmental Funds December 31, 2020 Other Total Governmental Governmental Assets General Funds Funds Cash and investments 22,310,877$ 22,036,109$ 44,346,986$ Receivables: Property taxes 4,640,000 2,916,000 7,556,000 Sales and use taxes 4,223,605 173,494 4,397,099 Interest 75,335 86,554 161,889 Accounts 1,932,519 2,000 1,934,519 Intergovernmental 268,810 483,426 752,236 Total assets 33,451,146$ 25,697,583$ 59,148,729$ Liabilities Accounts payable 1,071,410$ 505,681$ 1,577,091$ Accrued payroll and related liabilities 693,867 - 693,867 Unearned revenue 2,050,000 19,790 2,069,790 Other liabilities 59,934 3,973 63,907 Total liabilities 3,875,211 529,444 4,404,655 Deferred Inflows of Resources Deferred revenue-property tax 4,640,000 2,916,000 7,556,000 Fund Balances Restricted for: Parks and recreation - 4,474,436 4,474,436 Law enforcement - 3,535,594 3,535,594 Debt service - 658,744 658,744 Tabor emergencies 1,720,000 - 1,720,000 Committed to: Capital projects - 12,369,307 12,369,307 Parks and recreation - 485,471 485,471 Long term asset reserve 4,994,869 - 4,994,869 Assigned to: Parks and recreation - 599,963 599,963 Law enforcement - 33,217 33,217 Other purposes - 95,407 95,407 Subsequent year appropriation of fund balance 4,855,211 - 4,855,211 Unassigned 13,365,855 - 13,365,855 Total fund balances 24,935,935 22,252,139 47,188,074 Total liabilities deferred inflows and fund balances 33,451,146$ 25,697,583$ 59,148,729$ The notes to the financial statements are an integral part of this statement. 34 Page 131 of 374 CITY OF ENGLEWOOD, COLORADO Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position December 31, 2020 Total fund balances for governmental funds 47,188,074$ Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets total:81,359,799 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities - both current and long-term - are reported in the statement of net position: Bonds payable (31,470,171) Capital leases (4,843,976) Compensated absences (1,808,486) Postemployment benefits (3,354,882) (41,477,515) Other long-term liabilities are not due and payable in the current period and, therefore, are not reported as fund liabilities. This amount represents pension assets and liabilities and the related deferred inflows and outflows.(7,570,200) Interest on long-term debt is not accrued in the funds, but rather is recognized as an expenditure when due.(122,996) Internal Service Funds are used by management to charge the costs of fleet management, print management, and insurance to individual funds. A portion of the assets and liabilities of internal service funds are included in governmental activities in the statement of net position. 11,132,839 Net position of governmental activities 90,510,001$ The notes to the financial statements are an integral part of this statement. 35 Page 132 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2020 Other Total Governmental Governmental General Funds Funds Revenues Property taxes 5,133,811$ 2,790,082$ 7,923,893$ Sales and use taxes 31,848,763 4,108,509 35,957,272 Franchise and other taxes 3,621,352 - 3,621,352 Licenses and permits 1,649,101 - 1,649,101 Intergovernmental revenue 4,208,746 2,532,414 6,741,160 Charges for services 3,807,618 2,142 3,809,760 Fines and forfeitures 882,982 - 882,982 Net investment income 454,347 551,057 1,005,404 Contributions from component unit-EMRF 1,698,745 - 1,698,745 Other 498,394 126,646 625,040 Total revenue 53,803,859 10,110,850 63,914,709 Expenditures Current: General government 14,136,698 996,045 15,132,743 Public safety 21,303,657 646,432 21,950,089 Public works 7,341,229 3,473,273 10,814,502 Culture and recreation 6,778,237 1,165,124 7,943,361 Capital outlay - 1,646,995 1,646,995 Debt service: Principal 1,329,000 1,920,000 3,249,000 Interest and other fiscal charges 236,972 1,373,663 1,610,635 Total expenditures 51,125,793 11,221,532 62,347,325 Excess revenues over (under) expenditures 2,678,066 (1,110,682) 1,567,384 Other financing sources (uses) Transfers in 127,014 700,000 827,014 Transfers out - (827,014) (827,014) Total other financing sources (uses)127,014 (127,014) - Net change in fund balances 2,805,080 (1,237,696) 1,567,384 Fund balances - beginning 22,130,855 23,489,835 45,620,690 Fund balances - ending 24,935,935$ 22,252,139$ 47,188,074$ The notes to the financial statements are an integral part of this statement. 36 Page 133 of 374 CITY OF ENGLEWOOD, COLORADO Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2020 Net Change in fund balances-total governmental funds 1,567,384$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the net amount of additions $29,290,807 retirements ($30,038,449) and depreciation ($4,166,460)(4,905,171) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Adjustment to compensated absences liability (126,599) Net pension adjustment (2,129,976) Adjustment to postemployment benefit liability 105,724 (2,150,851) The issuance of long-term debt provide current financial resources to governmental funds, while the repayment of the principal of long-term debt and capital leases consume current financial resources of governmental funds. These transactions, however, have no effect on net position. Repayments: General Obligation Bonds 1,920,000 Capital leases and other bonds 1,425,171 3,345,171 Interest expense in the statement of activities differs from the amount reported in governmental funds because of additional accrued interest, amortization of bond premiums, and refunding gains or losses. Change in accrued interest on long-term debt 9,823 Amortization of premium 238,116 247,939 Internal service funds are used by management to charge the costs of fleet management, printing management, and insurance to individual funds. A portion of the net revenue of internal service funds is reported with governmental activities.160,186 Change in net position of governmental activities (1,735,342)$ The notes to the financial statements are an integral part of this statement. 37 Page 134 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Net Position Proprietary Funds December 31, 2020 Storm Water Sewer Golf Drainage Assets Current assets: Cash and investments - unrestricted 18,699,547$ 13,564,568$ 1,937,420$ 1,277,850$ Cash and investments - restricted: Loan operations and maintenance account - 1,250,000 - - Joint venture capital reserve - 1,000,000 - - Interest receivable 63,705 48,010 7,204 4,199 Accounts receivable 1,456,029 4,204,787 - 99,508 Other receivables 425,248 328,706 1,504 - Inventory 212,071 - 67,378 - Total current assets 20,856,600 20,396,071 2,013,506 1,381,557 Noncurrent assets: Cash and investments - restricted: Revenue bond future debt service - - 215,773 102,500 Equity in joint venture - 47,033,111 - - Notes receivable - - - - Capital assets not being depreciated 7,287,297 59,500 10,411,240 - Capital assets, net of accumulated depreciation 24,931,583 1,324,109 3,027,756 2,366,374 Total noncurrent assets 32,218,880 48,416,720 13,654,769 2,468,874 Total assets 53,075,480 68,812,791 15,668,275 3,850,431 Deferred Outflows of Resources Pension related deferred outflows 158,872 386,000 - - Deferred loss on refunding 92,198 - 35,769 - Total deferred outflows of resources 251,070 386,000 35,769 - Business-type Activities - Enterprise Funds 38 Page 135 of 374 Governmental Activities Concrete Housing Internal Service Utility Rehabilitation Total Funds 1,528,320$ 1,140,311$ 38,148,016$ 8,915,746$ - - 1,250,000 - - - 1,000,000 - 5,606 3,698 132,422 31,518 31,840 - 5,792,164 45,507 - 43,999 799,457 - - - 279,449 128,758 1,565,766 1,188,008 47,401,508 9,121,529 - - 318,273 - - - 47,033,111 - - 1,519,229 1,519,229 - - - 17,758,037 340,097 11,859,517 - 43,509,339 4,190,500 11,859,517 1,519,229 110,137,989 4,530,597 13,425,283 2,707,237 157,539,497 13,652,126 - 544,872 - - 127,967 - - - 672,839 - (Continued) Business-type Activities - Enterprise Funds 39 Page 136 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Net Position Proprietary Funds December 31, 2020 (Continued) Storm Water Sewer Golf Drainage Liabilities Current liabilities: Accounts payable 496,353$ 22,127$ 40,499$ 6,480$ Accrued wages and related liabilities 77,098 21,011 17,932 3,224 Unearned revenue 34,826 9,480,853 369,184 119,608 Other current liabilities 1,489 3,317,136 74,815 - Accrued interest payable 141,293 264,629 8,751 259 Compensated absences - current 84,924 4,470 19,436 - General Obligation bonds payable - current 680,000 - - - Revenue bonds payable - current - - 105,000 115,279 Notes payable - current - 3,467,448 - - Total current liabilities 1,515,983 16,577,674 635,617 244,850 Noncurrent liabilities: General Obligation bonds payable 9,379,441 - - - Revenue bonds payable - - 1,770,000 - Notes payable - 15,113,277 - - Pension liability 971,706 2,360,885 - - Compensated absences 84,924 4,470 19,436 - Other post employement benefits payable 403,508 830,074 57,644 - Total noncurrent liabilities 10,839,579 18,308,706 1,847,080 - Total liabilities 12,355,562 34,886,380 2,482,697 244,850 Deferred Inflows of Resources Pension related deferred inflows 321,777 781,799 - - Net position Net investment in capital assets 22,251,637 1,383,609 11,599,765 2,251,095 Restricted for: Debt service - - 215,773 102,500 Unrestricted 18,397,574 32,147,003 1,405,809 1,251,986 Total net position 40,649,211$ 33,530,612$ 13,221,347$ 3,605,581$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds 40 Page 137 of 374 Governmental Activities - Concrete Housing Internal Service Utility Rehabilitation Total Funds 47,966$ 58,638$ 672,063$ 164,215$ 1,229 - 120,494 32,648 47,577 - 10,052,048 - - - 3,393,440 747,158 - - 414,932 - - - 108,830 - - - 680,000 - - - 220,279 - - - 3,467,448 - 96,772 58,638 19,129,534 944,021 - - 9,379,441 - - - 1,770,000 - - - 15,113,277 - - - 3,332,591 - - - 108,830 - - - 1,291,226 - - - 30,995,365 - 96,772 58,638 50,124,899 944,021 - - 1,103,576 - 11,859,517 - 49,345,623 4,530,597 - - 318,273 - 1,468,994 2,648,599 57,319,965 8,177,508 13,328,511$ 2,648,599$ 106,983,861 12,708,105$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,575,266 Net position of business type activities 108,559,127$ Business-type Activities - Enterprise Funds 41 Page 138 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended December 31, 2020 Storm Water Sewer Golf Drainage Operating revenues Charges for sales and services: Service fees 10,105,451$ 19,106,663$ 1,930,459$ 1,224,068$ Concessions - - 179,072 - Interest from notes - - - - Other - - 21,326 - Total operating revenues 10,105,451 19,106,663 2,130,857 1,224,068 Operating expenses Direct system operating costs: Source of supply 2,187,201 - - - Power and pumping 656,430 - - - Purification 1,871,562 - - - Transmission and distribution 859,666 - - - Storm drainage system - - - 170,081 Total direct system operating costs 5,574,859 - - 170,081 Joint venture operating expenses - 8,520,478 - - Personnel services 579,185 1,050,411 886,718 238,472 Customer accounting and collection 461,585 1,107,681 - - Commodities and contractual services 667,352 321,991 687,443 289,373 Other 190,614 570,015 106,906 - Depreciation 1,044,725 67,410 309,398 106,366 Total operating expenses 8,518,320 11,637,986 1,990,465 804,292 Operating income (loss)1,587,131 7,468,677 140,392 419,776 Nonoperating revenues (expense) Net investment income 346,724 272,816 37,418 26,682 Grant income 66,246 - - - Interest expense (282,586) (670,156) (116,632) (5,256) Gain (loss) on disposition of assets - - - - Joint venture capital contributions - (3,481,669) - - Other, net 7,622 - 20,607 - Total nonoperating revenues (expenses)138,006 (3,879,009) (58,607) 21,426 Income (loss) before contributions 1,725,137 3,589,668 81,785 441,202 Capital contributions - tap fees 475,725 372,766 - - Capital contributions - other - - - - Change in net position 2,200,862 3,962,434 81,785 441,202 Total net position - beginning 38,448,349 29,568,178 13,139,562 3,164,379 Total net position - ending 40,649,211$ 33,530,612$ 13,221,347$ 3,605,581$ The notes to the financial statements are an integral part of this statement. Business-type Activities-Enterprise Funds 42 Page 139 of 374 Governmental Activities - Concrete Housing Internal Service Utility Rehabilitation Total Funds 868,165$ -$ 33,234,806$ 9,071,086$ - - 179,072 - - 15,216 15,216 - - 2,101 23,427 147,477 868,165 17,317 33,452,521 9,218,563 - - 2,187,201 - - - 656,430 - - - 1,871,562 - - - 859,666 - - - 170,081 - - - 5,744,940 - - - 8,520,478 - 173,703 - 2,928,489 787,701 - - 1,569,266 - 203,798 187,599 2,357,556 7,969,930 - - 867,535 - 418,942 - 1,946,841 738,463 796,443 187,599 23,935,105 9,496,094 71,722 (170,282) 9,517,416 (277,531) 25,714 19,583 728,937 182,367 - 126,665 192,911 - - - (1,074,630) - - - - 98,829 - - (3,481,669) - - - 28,229 56,985 25,714 146,248 (3,606,222) 338,181 97,436 (24,034) 5,911,194 60,650 - - 848,491 - - - - 28,188 97,436 (24,034) 6,759,685 88,838 13,231,075 2,672,633 12,619,267 13,328,511$ 2,648,599$ 12,708,105$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (71,348) Change in net position of business-type activities 6,688,337$ Business-type Activities-Enterprise Funds 43 Page 140 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2020 Golf Water Sewer Course Cash flows from operating activities Cash received from customers 9,600,880$ 19,387,700$ 1,944,789$ Interest received from borrowers - - - Cash payments to suppliers for goods and services (4,790,545) (10,420,594) (791,975) Cash payments to employees for services (2,559,781) (1,260,390) (910,415) Other cash received 7,622 - 20,607 Net cash provided (used) by operating activities 2,258,176 7,706,716 263,006 Cash flows from noncapital financing activities Operating grants received 66,246 - - Joint Venture investment - (3,777,579) - Net cash provided (used) by noncapital financing activities 66,246 (3,777,579) - Cash flows from capital and related financing activities Contributed capital 475,725 372,766 - Proceeds from sale of assets - - - Acquisition and construction of capital assets - - (127,336) Principal paid on long-term debt (655,000) (3,360,428) (100,000) Interest paid on long-term debt (289,094) (715,635) (109,018) Net cash (used) by capital related financing activities (468,369) (3,703,297) (336,354) Cash flows from investing activities Net investment income 338,026 269,565 36,201 Net cash provided by investing activities 338,026 269,565 36,201 Net increase (decrease) in cash and cash equivalents 2,194,079 495,405 (37,147) Cash and cash equivalents - beginning 16,505,468 15,319,163 2,190,340 Cash and cash equivalents - ending 18,699,547$ 15,814,568$ 2,153,193$ Business-type Activities-Enterprise Funds 44 Page 141 of 374 Governmental Activities - Storm Concrete Housing Internal Service Drainage Utility Rehabilitation Total Funds 1,218,573$ 875,522$ -$ 33,027,464$ 9,205,993$ - - 169,368 169,368 - (1,040,849) (234,583) (150,781) (17,429,327) (7,532,893) (240,000) (176,111) - (5,146,697) (900,367) - - 2,101 30,330 56,985 (62,276) 464,828 20,688 10,651,138 829,718 - - 225,956 292,202 - - - - (3,777,579) - - - 225,956 (3,485,377) - - - - 848,491 - - - - - 128,511 - (290,223) - (417,559) (444,111) (105,000) - - (4,220,428) - (5,729) - - (1,119,476) - (110,729) (290,223) - (4,908,972) (315,600) 27,368 24,912 19,101 715,173 178,382 27,368 24,912 19,101 715,173 178,382 (145,637) 199,517 265,745 2,971,962 692,500 1,525,987 1,328,803 874,566 37,744,327 8,223,246 1,380,350$ 1,528,320$ 1,140,311$ 40,716,289$ 8,915,746$ (Continued) Business-type Activities-Enterprise Funds 45 Page 142 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2020 (continued) Golf Water Sewer Course Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)1,587,131$ 7,468,677$ 140,392$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 1,044,725 67,410 309,398 Miscellaneous income 7,622 - 20,607 Effect of changes in operating assets and liabilities: Accounts receivable (185,413) (621,127) (1,504) Other receivables (318,208) 48,986 - Inventory 44,672 - 5,404 Accounts payable 97,709 (35,541) 21,376 Accrued payroll and related liabilities (1,780) (31,688) (23,697) Pension deferred outflows (7,001) (382,995) - Pension deferred inflows 11,220 393,098 - Net Pension Liability (21,551) (53,282) - Unearned revenue (950) 469,849 (184,564) Other current liabilities - 383,329 (24,406) Total adjustments 671,045 238,039 122,614 Net cash provided (used) by operating activities 2,258,176$ 7,706,716$ 263,006$ Noncash investing, capital and financing activities Contributions of capital assets from other funds -$ -$ -$ The notes to the financial statements are an integral part of this statement. Business-type Activities-Enterprise Funds 46 Page 143 of 374 Governmental Activities - Storm Concrete Housing Internal Service Drainage Utility Rehabilitation Total Funds 419,776$ 71,722$ (170,282)$ 9,517,416$ (277,531)$ 106,366 418,942 - 1,946,841 738,463 - - - 28,229 56,985 (60,834) 2,061 - (866,817) (12,570) - - 154,152 (115,070) - - - - 50,076 22,929 (581,395) (30,785) 36,818 (491,818) 37,876 (1,528) (2,408) - (61,101) (57,952) - - - (389,996) - - - - 404,318 - - - - (74,833) - 55,339 5,296 - 344,970 - - - - 358,923 321,518 (482,052) 393,106 190,970 1,133,722 1,107,249 (62,276)$ 464,828$ 20,688$ 10,651,138$ 829,718$ -$ -$ -$ -$ 28,188$ Business-type Activities-Enterprise Funds 47 Page 144 of 374 CITY OF ENGLEWOOD, COLORADO Statement of Fiduciary Net Position Fiduciary Funds December 31, 2020 Nonemergency Pension Custodial Fund Basin Interceptor Assets Cash and equivalents 81,112$ 8,918,333$ Interest receivable 8,202 31,096 Investments Fixed Income 7,512,720 - Domestic Equities 16,222,539 - Other 1,654,146 - International 10,845,812 - Real Estate equities 3,781,202 - Total investments 40,016,419 - Accounts receivable - 154,160 Total assets 40,105,733 9,103,589 Liabilities Accounts payable 3,663 - Net Position Restricted for: Pension 40,102,070 - Other governments - 9,103,589 Total net position 40,102,070$ 9,103,589$ The notes to the financial statements are an integral part of this statement. 48 Page 145 of 374 Nonemergency Pension Custodial Fund Basin Interceptor Additions Contributions: City 1,176,235$ -$ Plan members 135,257 - Maintenance fees - 689,261 Line charges - 37,401 Total contributions 1,311,492 726,662 Investment income: Net appreciation in fair value of investments 4,357,101 - Interest income - 173,531 Less investment expense (55,000) - Net investment income 4,302,101 173,531 Total additions 5,613,593 900,193 Deductions Benefits 3,055,168 - Administrative expenses 30,960 95,747 Total deductions 3,086,128 95,747 Net increase in net position 2,527,465 804,446 Net position - beginning 37,574,605 8,299,143 Net position - ending 40,102,070$ 9,103,589$ The notes to the financial statements are an integral part of this statement. CITY OF ENGLEWOOD, COLORADO Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended December 31, 2020 49 Page 146 of 374 THIS PAGE LEFT BLANK INTENTIONALLY 50 Page 147 of 374 51 CITY OF ENGLEWOOD, COLORADO Index to Notes to the Financial Statements December 31, 2020 Note 1. Summary of Significant Accounting Policies ............................................................. 52 A. Reporting Entity .......................................................................................................... 52 B. Government-wide and Fund Financial Statements ..................................................... 52 C. Measurement Focus, Basis of Accounting and Financial Statement Presentation ...... 53 Note 2. Detailed Notes on All Funds ........................................................................................ 58 A. Deposits and Investments .......................................................................................... 58 B. Receivables ................................................................................................................ 63 C. Capital Assets ............................................................................................................ 64 D. Interfund Transfers ..................................................................................................... 66 E. Capital Leases ........................................................................................................... 66 F. Long-term Obligations ................................................................................................ 67 G. Component Unit Debt Obligations .............................................................................. 71 Note 3. Other Information ......................................................................................................... 72 A. Investment in Joint Venture ........................................................................................ 72 B. Risk Management ...................................................................................................... 72 C. Commitments and Contingencies ............................................................................... 73 D. Employee Retirement Systems and Pension Plans .................................................... 74 E. Other Postemployment Benefits ................................................................................. 88 Note 4. Tax, Spending and Debt Limitations ........................................................................... 89 Note 5. Significant Subsequent Event ..................................................................................... 89 Page 148 of 374 52 CITY OF ENGLEWOOD, COLORADO Notes to the Financial Statements December 31, 2020 The financial statements of the City of Englewood have been prepared in conformity with generally accepted accounting principles as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and reporting principles. The following notes to the financial statements are an integral part of the City’s Basic Financial Statements. Note 1. Summary of Significant Accounting Policies A. Reporting Entity The City of Englewood is a municipal corporation governed by an elected seven-member council. The accompanying financial statements present the government and its component units, entities for which the government is considered financially accountable. Each discretely presented component unit is reported in a separate column in the government-wide financial statements (see note below for description) to emphasize that it is legally separate from the City. The City follows GASB accounting pronouncements that provide guidance for determining which governmental activities, organizations and functions should be included within the financial reporting entity. GASB pronouncements set forth the financial accountability of a governmental organization’s elected governing body as the basic criterion for including a possible component governmental organization in a primary government’s legal entity. Financial accountability includes, but is not limited to, appointment of a voting majority of the organization’s governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens and fiscal dependency. Discretely presented component units The Englewood Urban Renewal Authority (EURA) was created by resolution passed September 18, 1972, by the Englewood City Council under authorization of State Statutes. The purpose of the EURA is to acquire and develop or redevelop certain blighted areas in the City to maintain the public welfare. The Englewood Environmental Foundation, Inc. (EEF), a nonprofit corporation, was established on August 14, 1997 under authorization of the Colorado Nonprofit Corporation Act. The purpose of the EEF includes, but is not limited to, maintaining the common areas of CityCenter Englewood, a mixed-use, transit oriented development that includes retail shops, luxury apartment housing and office space. The Englewood McLellan Reservoir Foundation, Inc. (EMRF), a nonprofit corporation, was established on June 1, 1999 under authorization of the Colorado Nonprofit Corporation Act. The purpose of the EMRF includes, but is not limited to, taking title to 165 acres of land, which was acquired by the City of Englewood in 1960 as part of the acquisition of the McLellan Reservoir, and overseeing the development of such property while continuing to protect the City’s water supply. During 1999, the City contributed the land to the EMRF. The EURA, EEF and EMRF are included in the City’s financial statements because the City Council appoints all board members and provides the component units substantial financial support. Each discretely presented component unit has a December 31 year-end. Separate financial statements are not prepared for the discretely presented component units. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or Page 149 of 374 53 segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; fines and forfeitures; and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported in separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Agency funds, however, are custodial in nature and do not present results of operations or have a measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. Property taxes, sales and use taxes, franchise taxes, intergovernmental revenues and interest are susceptible to accrual and so have been recognized as revenues in the current period. All other revenue items are considered to be measurable and available when cash is received by the City and are recognized as revenue at that time. The City reports the following major governmental funds: The general fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. The City reports the following major proprietary funds: The water fund accounts for revenues and expenses associated with providing water services to City of Englewood residents. The sewer fund accounts for revenues and expenses associated with providing wastewater services to the City of Englewood residents and some county residents. The golf course fund accounts for revenues and expenses associated with the operations of the Englewood Municipal Golf Course. The storm drainage fund accounts for revenues and expenses associated with maintaining the City’s storm drainage system. The concrete utility fund accounts for revenues and expenses associated with maintaining the City’s sidewalks, curbs and gutters. The housing rehabilitation fund accounts for revenues and expenses associated with the City’s housing rehabilitation programs. Additionally, the City reports the following fund types: Page 150 of 374 54 Internal service funds account for, vehicle use and maintenance fees, capital replacement fees, and insurance provided to other departments and employees of the City on a cost-reimbursement basis. The pension trust fund accounts for the NonEmergency, Pension Fund administered by the City in a trustee capacity. The custodial fund accounts for assets held by the City in a custodial capacity, on behalf of other governmental entities, pursuant to the Big Dry Creek Basin Interceptor Agreement. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the City’s water and sewer function and various other functions of government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish between operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principle ongoing operations. The principle operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services, including water and sewer charges, printing fees, vehicle use and maintenance fees, capital replacement fees and insurance fees. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City’s water and sewer enterprise funds recognize as capital contributions the entire portion of tap fees, as they are intended to recover the cost of the capital investment in the water and sewer distribution system. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position or Equity Deposits and Investments The City maintains an internal cash and investment pool that is available for use by all funds including its component units. All investment pool purchases and sales are part of the City’s cash management activity and considered cash and cash equivalents. Activities undertaken by the pool on behalf of the proprietary funds are not part of operating, capital, investing, or financing activities of the proprietary funds, and details of these transactions are not reported in the Statement of Cash Flows. Net investment earnings from the combined investments are allocated monthly to each fund based on month-end average balances of cash and investments. Interest from non-pooled investments is recorded based on the specific investments held by the fund. Interest income is recorded in the fund that earned the interest. The City’s investment policy is approved by the City Council and covers all financial assets and funds of the City and it’s discretely presented component units except for the pension trust funds. Changes to the policy are made on an as-needed basis. All investments are made in accordance with Colorado Revised Statutes except for the investments of the pension plan. The policy authorizes the City and component units to invest primarily in the following: • U.S. Treasury Obligations: Treasury Bills, Treasury Notes and Treasury Bonds with maturities not exceeding five years from the date of trade settlement. • Treasury Strips (book-entry U.S. Treasury securities whose coupons have been removed) with maturities not exceeding five years from the date of trade settlement. • Federal Instrumentalities - Debentures, Discount Notes, Medium-Term Notes, Callable Securities and Step-up Securities issued by the following only: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC) and Federal Farm Credit Banks (FFCB), with maturities not exceeding five years from the date of trade settlement. • Repurchase Agreements with a termination date of 90 days or less utilizing U.S. Treasury and Federal Instrumentality securities listed above, collateralized at a minimum market value of 102 percent of the dollar value of the transaction with the accrued interest accumulated on the collateral included in the calculation. Repurchase agreements shall be entered into only with dealers who: are recognized as Primary Dealers by the Federal Reserve Bank of New York, or with firms that have a primary dealer within their holding company structure; and have executed a City approved Master Repurchase Agreement. Primary Dealers approved as Repurchase Agreement counterparties, if rated, shall have a short-term credit rating of at least A-1 or the equivalent and a Page 151 of 374 55 long-term credit rating of at least A or the equivalent. Collateral (purchased securities) shall be held by the City’s custodian bank as safekeeping agent, and the market value of the collateral securities shall be marked-to-the- market daily. In no case will the maturity of the collateral exceed 10 years. • Reverse Repurchase Agreements with a maturity of 90 days or less executed only against securities owned by the City and collateralized by the same type of security reversed. • Flexible Repurchase Agreements with a final maturity of 10 years or less entered into by the City with approved counterparties. • Time Certificates of Deposit with a maximum maturity of five years or savings accounts in state or national banks or state or federally chartered savings banks operating in Colorado that are state approved depositories (as evidenced by a certificate issued by the State Banking Board) and are insured by the FDIC. Certificates of deposit that exceed the FDIC insured amount shall be collateralized in accordance with the Colorado Public Deposit Protection Act. The collateral shall have a market value equal to or exceeding 102 percent of the difference between the insured amount and the City’s total deposits for all funds within the institution. • Money Market Mutual Funds registered under the Investment Company Act of 1940 that: 1) are "no-load" (i.e.: no commission or fee shall be charged on purchases or sales of shares); 2) have a constant net asset value per share of $1.00; 3) limit assets of the fund to securities authorized by state statute; 4) have a maximum stated maturity and weighted average maturity in accordance with Rule 2a-7 of the Investment Company Act of 1940; and 5) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. • Colorado Local Government Liquid Asset Trust (COLOTRUST) as authorized under CRS 24-75-702. • Prime Bankers Acceptances, rated at least A-1 by Standard & Poor’s, P-1 by Moody’s and F1 by Fitch at the time of purchase by at least two services that rate them and shall be rated not less by any service that rates them, with a maturity of six months or less issued on domestic banks or branches of foreign banks domiciled in the U.S. and operating under U.S. banking laws. Accepting banks must have a senior debt rating of A2 by Moody’s and A by Standard & Poor’s. • Prime Commercial Paper with a maturity of 270 days or less which, at the time of purchase, is rated at least A-1 by Standard & Poor’s, P-1 by Moody’s and F1 by Fitch. At the time of purchase, the commercial paper must be rated by at least two of the above stated rating agencies at the stated minimum rating. If more than two of the above stated agencies rate an issuer, all of those rating agencies must rate the issuer in accordance with above stated minimum credit criteria. If the commercial paper issuer has senior debt outstanding, the senior debt must be rated by each service that publishes a rating on the issuer as at least A2 by Moody’s, A by Standard and Poor’s and A by Fitch. • Corporate Bonds issued by a corporation or bank with a final maturity not exceeding three years from the date of trade settlement, rated at least AA- by Standard & Poor’s, Aa3 by Moody’s, or AA by Fitch at the time of purchase by each service that rates the debt. Authorized corporate bonds shall be U.S. dollar denominated, and limited to corporations organized and operated within the United States with a net worth in excess of $250 million. Receivables and Payables Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Property taxes are levied by December 15 of each year and are due in full the following year. The lien date is January 1 prior to the levy. Taxes may be paid in two equal installments, on or before February 28 and June 15; or in full, on or before April 30. Delinquent taxpayers are notified in August and generally, sales of the tax liens on delinquent properties are held in November or December. Property taxes are collected by Arapahoe County and then remitted, net of a 1% collection fee, to the City. Taxes are recorded as a receivable and a deferred inflow of resources when levied, and subsequently recorded as revenue in the year they are available or collected. Inventories and Prepaid Expenses Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when purchased. Prepaid expenses are recorded when services are purchased in the current period but received in a future period. Restricted Assets and Liabilities Certain assets and their related liabilities whose use is restricted for construction, bonded debt service and other purposes by contractual agreement and/or debt indentures are segregated on the government-wide statement of net position and the fund balance sheets. The “construction” account is used to report those proceeds of revenue bonds and loans that are restricted for use in construction. The “loan operations and maintenance account” is used to report resources set aside to subsidize potential deficiencies from the City’s operation that could adversely affect debt service payments. The “insurance claims” account is used to report resources set aside for the payment of current and future long-term disability claims. The “revenue bond future debt service” account is Page 152 of 374 56 used to report resources set aside to make up potential future deficiencies in the revenue bond debt service account. The “capital replacement” account is used to report resources set aside to fund major capital repairs and replacements at the South Platte Water Renewal Partners plant. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary funds financial statements. The City currently capitalizes assets that cost more than $10,000 and have a life of more than one year. Such capital assets are recorded at historical cost or at estimated historical cost if purchased or constructed. Donated capital assets are recorded at the acquisition value on the date of donation. 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. Major outlays for capital assets and improvements are capitalized as projects are constructed and depreciated over their remaining useful lives. Capital assets of the primary government, as well as the component units, are depreciated, using the straight-line method over their estimated useful lives: Infrastructure: Bridges 50 years Streets 25 years Storm drainage system 35 years Concrete, curb and gutter 50 years Buildings and improvements 15-50 years Water distribution and sewage collection systems 50 years Water and sewage treatment plants 25 years Raw water service and treated water storage facilities 15-50 years Vehicles, machinery and equipment 3-25 years Deferred outflows/inflows of resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has deferred charges on debt refunding and deferred outflows related to pension activity. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only two types of items that qualify for reporting in this category. Deferred revenue for the sources shown, represent property taxes earned but levied for collection in a subsequent period. The other type of deferred inflow is related to pension activity. Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and personal leave benefits. All leave is accrued when earned in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they are due, for example, because of employee resignations and retirements. Leases Leases that meet certain criteria are classified as capital lease obligations and recorded at the lesser of the present value of minimum lease payments or the fair value of the leased property at inception. Leases that do not meet the criteria of a capital lease are classified as operating leases. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bonds payable are reported net of the applicable bond premium and discount. Bond premiums and discounts and refunding losses are deferred and amortized over the life of the bonds using the effective interest method and charged to interest expense. Page 153 of 374 57 In the fund financial statements, governmental fund types recognize bond premiums and discounts, during the current period. The face amount of debt issued is reported as other financing sources. Issuance costs, even if withheld from the actual new proceeds received, are reported as debt service expenses or expenditures. Net Position and Fund Equity The government-wide and proprietary-type fund financial statements utilize a net position presentation. Net position is categorized as invested in capital assets (net of related debt), restricted or unrestricted. Net investment in capital assets is intended to reflect the portion of net position that is associated with non-liquid, capital assets less outstanding capital asset related debt. The net related debt is the debt and premiums, discounts and deferred losses. Restricted net position is subject to restrictions by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provision or enabling legislation. Pursuant to the City Charter, the net position of the City’s utilities: water, sewer, storm drainage and concrete, are entirely committed to their own purpose. Unrestricted net position represent assets that do not have any third party limitations on their use. While City management may have categorized and segmented portions for various purposes, the City Council has the unrestricted authority to revisit or alter these managerial decisions. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for a specific purpose. Restricted Fund Balances Restricted fund balances carry provisions that are externally imposed by creditors or by law. Common examples of restricted fund balances are grant proceeds and debt restrictions. Committed Fund Balances Committed fund balances can only be created and modified by the highest formal action available to the highest decision-making authority of the government. For the City this is through the adoption of an Ordinance by City Council. Assigned Fund Balances Assigned fund balances are intended for a specific purpose but are neither restricted nor committed. City Council has the unrestricted authority to appropriate the funds through the passing of a Resolution. Unassigned Fund Balance Unassigned fund balance is only reported in the General Fund for balances that are not restricted, committed or assigned. City Council has the unrestricted authority to appropriate these funds. There are times when the City will fund outlays for a particular purpose from both restricted and unrestricted resources. It is the City’s policy that restricted resources are considered to have been spent before any unrestricted resources are applied. In the instance where any unrestricted fund balance is available, committed fund balance is considered to have been spent before any assigned or unassigned fund balance is used. The City adopted a new fund balance policy in 2017 that places a targeted fund balance in the General Fund equal to two months of operations or 16.7%. Use of Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Page 154 of 374 58 Note 2. Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk – deposits: Custodial risk for deposits is the risk that, in the event of a failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in possession of an outside party. The City’s deposit policy is in accordance with CRS 11-10.5-101, The Colorado Public Deposit Protection Act (PDPA), which governs investment of public funds. PDPA requires that all units of local government deposit cash in eligible public depositories. State regulators determine eligibility. Amounts on deposit in excess of federal insurance levels ($250,000) must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool for all the uninsured public deposits as a group is to be maintained by another institution or held in trust. The market value of the collateral must be at least equal to 102% of the aggregate uninsured deposits. The institution's internal records identify the collateral by depositor and as such, these deposits are considered to be uninsured but collateralized. The State Regulatory Commissions for banks and financial services are required by statute to monitor the naming of eligible depositories and reporting of the uninsured deposits and assets maintained in the collateral pools. At December 31, 2020, the City’s deposits amounting to $3,380,611 were collateralized and an additional $250,000 were insured by federal depository insurance and consequently were not exposed to custodial credit risk. The EEF and the EMRF are not eligible public entities and are not covered by the provisions of the PDPA. At year-end, the component units’ cash deposits had a bank balance as follows: Primary Government Component Units Governmental and Business-Reporting Type Fiduciary Entity Activities Funds Total EURA EEF EMRF Total Unrestricted: Deposits and investments with City internal investment pool 91,410,748$ 8,999,445$ 100,410,193$ 476,489$ 997,872$ 47,612$ 101,932,166$ Deposits and investments outside City internal investment pool - 40,016,419 40,016,419 - 45,650 74,433 40,136,502 Subtotal unrestricted deposits and investments 91,410,748 49,015,864 140,426,612 476,489 1,043,522 122,045 142,068,668 Restricted: Deposits and investments with City internal investment pool 2,568,273 - 2,568,273 - - - 2,568,273 Total deposits and investments 93,979,021$ 49,015,864$ 142,994,885$ 476,489$ 1,043,522$ 122,045$ 144,636,941$ Cash and deposits 3,637,121$ -$ 3,637,121$ -$ 45,650$ 74,433$ 3,757,204$ Investments 90,341,900 49,015,864 139,357,764 476,489 997,872 47,612 140,879,737 93,979,021$ 49,015,864$ 142,994,885$ 476,489$ 1,043,522$ 122,045$ 144,636,941$ EEF EMRF Insured-FDIC 45,650$ 74,433$ Page 155 of 374 59 Investments The table below identifies the investment types that are authorized for the City, along with the related interest rate risk and concentration of credit risk. Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity of Portfolio One Issuer U.S. Treasury Obligations 5 years None None U.S. Instrumentalities 5 years None None Repurchase Agreements 90 days None None Reverse Repurchase Agreements 90 days None None Flexible Repurchase Agreements 10 years None None Certificates of Deposit 5 years 50%None Bankers Acceptances 180 days 20%None Commercial Paper 270 days 40%None Corporate Bonds 3 years 30%5% Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Debt securities of the U.S. government and obligations of U.S. government agencies that are explicitly guaranteed by the U.S. government are not considered to have credit risk. The City’s investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. Fair Value Measurement The City categorizes its fair value measurements within the fair value hierarchy established by the generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are the quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of December 31, 2020: Primary Government Level 2 Inputs: US Treasury Securities of $10,512,240 are valued using quoted market prices. Residential mortgage-backed securities of $29,881,350 are valued using a matrix pricing technique. Corporate bonds of $27,171,692 are valued using a matrix pricing technique. Defined Benefit Pension Plan Fixed Income mutual funds of $7,512,720 are valued at net asset value using quoted market prices. Domestic Equity mutual funds of $16,222,539 are valued at net asset value using quoted market prices. International Equity mutual funds of $10,845,812 are valued at net asset value using quoted market prices. Real Estate equity mutual funds of $3,781,202 are valued at net asset value using quoted market prices. Other mutual funds of $1,698,213 are valued at net asset value using quoted market prices. The City also participates in a 2a-7 like external investment pool (Colotrust) which is valued at net asset value per share, with each share valued at $1. Colotrust is a statutory trust organized and exsits under the laws of the State of Colorado. Page 156 of 374 60 Presented below is the minimum rating required by the City’s investment policy and the actual rating as of December 31, 2020 for each investment type. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market rates. The following schedule indicates the interest rate risk of the City’s investments at December 31, 2020. Minimum Standard &Total Rating Poor's Moody's Investment Investment Type Required Rating Rating Portfolio U.S. Treasury Notes N/A N/A N/A 7% Federal Farm Credit Banks (FFCB)N/A AA+Aaa 4% Federal Home Loan Banks (FHLB)N/A AA+Aaa 6% Federal Home Loan Mortgage Corporation (FHLMC)N/A AA+Aaa 4% Federal National Mortgage Association (FNMA)N/A AA+Aaa 7% Corporate bonds AA-/Aa3 AAA Aaa 4% Corporate bonds AA-/Aa3 AA+Aa1 3% Corporate bonds AA-/Aa3 AA-Aa2 6% Corporate bonds AA-/Aa3 AA-Aa3 2% Corporate bonds AA-/Aa3 A+Aa2 4% COLOTRUST (b)N/A AAAm Aaa 25% (a) Ratings displayed are of the underlying securities supporting the repurchase agreement (b) COLOTRUST is a 2a7-like investment pool Investment Maturities Less than 1 to 5 Total 1 year years Primary Government: Investments in City internal investment pool: U.S. Treasury Notes 10,512,240$ 4,253,573$ 6,258,667$ U.S. Instrumentalities 28,321,444 1,475,489 26,845,955 Corporate Bonds 27,171,691 9,261,239 17,910,452 Colorado Local Government Liquid Asset Trust (COLOTRUST PLUS+)34,857,943 34,857,943 - Less: Component unit investments in internal investment pool (1,521,973) (1,521,973) - Subtotal investments in City internal investment po 99,341,345 48,326,271 51,015,074 Retirement Trust Fund investments 40,016,419 Total Primary Government 139,357,764 Component Units: EURA: Investments in internal investment pool 476,489 476,489$ -$ EEF: Investments in internal investment pool 997,872 997,872$ -$ EMRF: Investments in internal investment pool 47,612 47,612$ -$ Total Component Units 1,521,973 Total Investments 140,879,737$ Page 157 of 374 61 One of the ways the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Additionally, the City’s investment policy limits the weighted average maturity of its internal investment pool to less than two years. At December 31, 2020, the weighted average maturity of the City’s internal investment portfolio was 1.38 years. Concentration of Credit Risk Of the City’s total investments in its internal investment pool, 10% were T-Notes, 29% were government agency notes and 27% were corporate bonds. Additionally, 34% of the internal investment pool was held by COLOTRUST. Retirement Trust Funds’ Investments The investments of the pension trust funds are invested separately from the internal investment pool. At December 31, 2020, the investments were as follows: Assets of the Nonemergency Pension Trust Fund (Fund) are invested in accordance with Colorado Revised Statutes Section 15-1.1-102 under the Uniform Prudent Investor Act and subject to investment policy guidelines as established by the Nonemergency Retirement Plan Board. The objective of the policy is to maximize the expected return of the fund at an acceptable level of risk. The Retirement Board has established percentage guidelines for types of investments to ensure the portfolio is diversified. Assets of the Firefighters, Police Officers and Volunteer Firefighters Pension Trust Funds are invested by the Fire and Police Pension Association of Colorado (FPPA) (see Note 3.D.). The discussion that follows relating to interest rate, credit and foreign currency risk applies to the Nonemergency Pension Trust Fund only. A discussion of the investment policy and investment risks of the Firefighters, Police Officers and Volunteer Firefighters Pension Trust Funds may be found in FPPA’s publicly issued Comprehensive Annual Financial Report that may be obtained from FPPA’s website at www.fppaco.org. Interest Rate and Credit Risk - Retirement Trust Funds The fair value of fixed income investments fluctuate in response to changes in market interest rates, generally decreasing in response to increases in market interest rates. The Nonemergency Retirement Plan Board does not have a specific policy to manage interest or credit rate risk but manages its exposure to fair value losses arising from increasing interest rates by requiring retained fixed income investment managers to monitor the duration and maturity of its portfolio and diversify by issuer and by sector or industry. The managers are evaluated against specific market benchmarks that represent their investment style. Duration measures a fixed income security’s exposure to price changes arising from changing interest rates. The calculation uses the present value of cash flows, weighted according to the time to cash receipt. Effective (or option-adjusted) duration is the duration of a bond after adjusting for any embedded options. Effective duration takes into account the fact that yield changes may change the expected cash flows of the bond in the presence of an embedded option, such as a call, put, or prepayment option for asset- or mortgage-backed securities. The longer the duration, the more sensitive the bond funds should be to changes in interest rates. At December 31, 2020, the Fund’s fixed income security mutual funds had an effective duration of 4.1 years. Investment Type Fair Value Nonemergency Pension Trust Fund Fixed Income mutual funds 7,512,720$ Equity mutual funds: Domestic equities 16,222,539 International equities 10,845,812 Other 1,654,146 Subtotal equity mutual funds 28,722,497 Real estate equity fund 3,781,202 Total Retirement Trust Investments 40,016,419$ Page 158 of 374 62 U.S. Government obligations and those explicitly guaranteed by the U.S. Government account for 43.6% of the Fund’s fixed income portfolio. The following table illustrates the credit risk exposure of the remaining fixed income securities as of December 31, 2020: Foreign Currency Risk - Retirement Trust Funds Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect the fair value of an investment. The Fund’s exposure to foreign currency risk derives from its allocations to non-U.S. dollar denominated international equity, fixed income, and private equity investments. Through its asset allocation policy, the Fund has set a target asset allocation of 10% to developed and emerging market international equities. Core plus fixed income managers may invest up to 10% of the portfolio in non-U.S. dollar denominated investment grade fixed income securities. The fair value of the Fund’s exposure to foreign currency risk at December 31, 2020 is summarized in the following table: Percentage of Fixed Income Rating Total AAA 8.4% AA 5.4% A 8.8% BBB 19.9% BB 8.4% B 0.9% CCC 0.9% Cash 3.5% NR 0.2% 56.4% Percentage Country or Region Currency Fair Value of Total Switzerland Swiss franc 149,612 1.4% United Kingdom British pound 827,478$ 7.6% Russia Russian ruble 111,227 1.0% Denmark Danish krone 100,246 0.9% Sweden Swedish krona 309,427 2.9% Other Developed Europe Other Europe 2,031,557 18.7% Japan Japanese yen 448,638 4.1% South Korea South Korean won 637,426 5.9% Taiwan Taiwan dollar 203,918 1.9% Australia Australian dollar 430,562 4.0% China Chinese yuan renminbi 463,137 4.3% Other Pacific Basin Other Pacific Basin 3,109,964 28.7% Brazil Brazilian real 340,634 3.1% India Indian rupee 37,128 0.3% Other countries Other countries 1,513,411 14.0% 10,714,365 98.8% Cash and equivalents 131,447 1.2% 10,845,812$ 100.0% Page 159 of 374 63 B. Receivables Receivables at year-end for the City’s individual major, non-major and internal service funds are as follows: None of the notes receivable in the Housing Rehabilitation Fund are expected to be collected within one year. Notes Receivable Notes receivable in the Housing Rehabilitation Fund consist of loans to qualified borrowers for rehabilitation of existing homes. Interest rates vary from 0% to 10.8%. Terms of repayment vary from monthly amortized loans to deferred loans, where the payment of loan principal and accrued interest, if any, is payable when the property transfers ownership. A lien is filed on the property to insure loans are repaid. An analysis of the notes receivable follow: The EURA reports a note receivable that represents a loan to the developer intended to assist with the redevelopment of various tracts of land along the South Broadway corridor in the City. The Interest rate on the loan is 4% with payments beginning in 2019. Total loan balance is $1,117,093 with the final principal payment scheduled for December 1, 2032. Nonmajor Internal General Funds Service Total Receivables: Property tax 4,640,000$ 2,916,000$ -$ 7,556,000$ Sales and use tax 4,223,605 173,494 - 4,397,099 Interest 75,335 86,554 31,518 193,407 Accounts 1,932,519 2,000 45,507 1,980,026 Intergovernmental 268,810 483,426 - 752,236 Total receivables 11,140,269$ 3,661,474$ 77,025$ 14,878,768$ Golf Storm Concrete Housing Water Sewer Course Drainage Utility Rehabilitation Total Receivables Interest 63,705$ 48,010$ 8,708$ 4,199$ 5,606$ 3,698$ 133,926$ Accounts 1,456,029 4,204,787 - 99,508 31,840 43,999 5,836,163 Notes (see below)- - - - - 1,519,229 1,519,229 Other 425,248 328,706 - - - - 753,954 Total receivables 1,944,982$ 4,581,503$ 8,708$ 103,707$ 37,446$ 1,566,926$ 8,243,272$ Not scheduled for collection during the subsequent year -$ -$ -$ -$ -$ 1,519,229$ 1,519,229$ Governmental Activities Business-type Activities Balance New Principal Balance Loan Type 12/31/2019 Loans Payments 12/31/2020 Amortized loans 360,813$ -$ 87,139$ 273,674$ Deferred loans 1,600,569 - 174,014 1,426,555 1,961,382$ -$ 261,153$ 1,700,229 Loans in progress - 1,700,229 Less unamortized discount based on imputed interest rate of 7% over 20 years (181,000) Total notes receivable, net 1,519,229$ Page 160 of 374 64 C. Capital Assets Primary Government Certain beginning balances have been reclassified to conform to the current year presentation. Capital asset activity for the year ended December 31, 2020 was as follows: Depreciation expense was charged to functions/programs of the primary government as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets not being depreciated: Land and land improvements 15,558,961$ -$ -$ 15,558,961$ Works of art 273,750 - - 273,750 Construction in process 29,879,952 1,187,229 (30,009,415) 1,057,766 Total capital assets not being depreciated 45,712,663 1,187,229 (30,009,415) 16,890,477 Capital assets being depreciated Buildings 45,500,349 22,280,073 (1,416,513) 66,363,909 Infrastructure 32,893,239 165,381 - 33,058,620 Machinery and equipment 23,483,555 634,614 (562,652) 23,555,517 Other improvements 12,619,231 5,495,808 (6,518) 18,108,521 Total capital assets being depreciated 114,496,374 28,575,876 (1,985,683) 141,086,567 Less accumulated depreciation for: Buildings (20,568,649) (1,419,616) 1,387,479 (20,600,786) Infrastructure (23,946,656) (1,460,719) - (25,407,375) Machinery and equipment (17,771,168) (1,359,041) 532,970 (18,597,239) Other improvements (6,822,218) (665,548) 6,518 (7,481,248) Total accumulated depreciation (69,108,691) (4,904,924) 1,926,967 (72,086,648) Total capital assets being depreciated, net 45,387,683 23,670,952 (58,716) 68,999,919 Governmental activities capital assets, net 91,100,346$ 24,858,181$ (30,068,131)$ 85,890,396$ Governmental activities: General Government 271,073$ Safety Services 1,002,856 Public Works 1,871,086 Culture and Recreation 1,021,446 In addition, depreciation on capital assets held by the City's internal service funds is charged to the various functions based on their usage of the assets.738,463 Total depreciation expense - governmental activities 4,904,924$ Page 161 of 374 65 Capital asset activity for the year ended December 31, 2020 (continued): Discretely Presented Component Units Englewood Environmental Foundation (EEF) Englewood McLellan Reservoir Foundation (EMRF) Englewood Urban Renewal Authority (EURA) Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets not being depreciated: Land and land improvements 11,522,825$ -$ -$ 11,522,825$ Raw water 6,235,212 - - 6,235,212 Total capital assets not being depreciated 17,758,037 - - 17,758,037 Capital assets being depreciated: Buildings 16,290,771 - - 16,290,771 Infrastructure 57,511,356 290,224 (293,388) 57,508,192 Machinery and equipment 5,617,367 127,336 - 5,744,703 Other improvements 23,661,422 - - 23,661,422 Total capital assets being depreciated 103,080,916 417,560 (293,388) 103,205,088 Less accumulated depreciation for: Buildings (9,874,819) (344,808) - (10,219,627) Infrastructure (33,181,777) (1,246,009) 293,388 (34,134,398) Machinery and equipment (4,923,970) (161,734) - (5,085,704) Other improvements (10,028,744) (227,276) - (10,256,020) Total accumulated depreciation (58,009,310) (1,979,827) 293,388 (59,695,749) Total capital assets being depreciated, net 45,071,606 (1,562,267) - 43,509,339 Business-type activities capital assets, net 62,829,643$ (1,562,267)$ -$ 61,267,376$ Beginning Ending Balance Increases Decreases Balance Capital assets not being depreciated: Land and land improvements 8,496,257$ -$ -$ 8,496,257$ Capital assets being depreciated Site development 10,772,213 - - 10,772,213 Curb, sidewalk and streets 4,841,536 - - 4,841,536 Parking structure 3,956,348 - - 3,956,348 Bridge 2,017,170 - - 2,017,170 Equipment and other 185,261 - - 185,261 Total capital assets being depreciated 21,772,528 - - 21,772,528 Less accumulated depreciation for: Site development (9,338,935) (413,801) - (9,752,736) Curb, sidewalk and streets (4,841,536) - - (4,841,536) Parking structure (3,165,079) (158,254) - (3,323,333) Bridge (1,613,366) (80,686) - (1,694,052) Equipment and other (185,261) - - (185,261) Total accumulated depreciation (19,144,177) (652,741) - (19,796,918) Total capital assets being depreciated, net 2,628,351 (652,741) - 1,975,610 EEF capital assets, net 11,124,608$ (652,741)$ -$ 10,471,867$ Beginning Ending Balance Increases Decreases Balance Capital assets not being depreciated: Land and land improvements 5,706,166$ -$ -$ 5,706,166$ Beginning Ending Balance Increases Decreases Balance Capital assets not being depreciated: Land and land improvements 71,626$ -$ -$ 71,626$ Page 162 of 374 66 D. Interfund Transfers The composition of interfund balances as of December 31, 2020, is as follows: Transfers between funds provide support for various City programs in accordance with budgetary authorizations. During the year ended December 31, 2020, the City made one-time transfers to the General Fund from nonmajor governmental funds for debt service. The Public Improvement Fund made transfers to the Capital Projects Fund to assist in funding for projects accounted for in that fund. E. Capital Leases The City has entered into capital lease agreements for the purpose of acquiring and financing the Civic Center and equipment. All of these agreements qualify as capital leases for accounting purposes and, therefore have been recorded at the present value of their future minimum lease payments as of the inception date. Assets acquired through capital leases follow: Civic Center On December 29, 1998, the City entered into a lease purchase agreement with the Englewood Environmental Foundation, Inc. (EEF) for the Englewood Civic Center. The lease represents a legal outstanding economic debt of the City to the EEF, a separate legal entity and not an advance between funds. The lease purchase agreement is renewable annually and lease payments are subject to annual appropriation by the City. Base rental payments are intended to cover the EEF’s debt service requirements on its outstanding Certificates of Participation (see Note 2.G.). Lease payments are made from revenues collected in the City’s General Fund and are due in semiannual installments through June 1, 2023, with interest at 2.12%. In the event of a City default on its obligations, EEF may terminate the lease, sell the leased property or recover any amount that was appropriated by the City Council for the current fiscal year. The net present value of the minimum lease payments as of December 31, 2020, are as follows: Transfers in: General Nonmajor Total Fund Governmental Transfers In Transfers out: Primary Government: General Fund -$ -$ -$ Nonmajor governmental funds 127,014 700,000 827,014 Total transfers out 127,014$ 700,000$ 827,014$ Accumulated Asset Cost Depreciation Total Building - Civic Center 22,393,532$ (9,849,978)$ 12,543,554$ Governmental Activities Year Ending Civic December 31 Center 2021 1,437,062$ 2022 1,438,838 2023 1,433,031 Minimum lease payments 4,308,931 Less: Amount representing interest (133,931) Present value of minimum Lease Payments 4,175,000$ Page 163 of 374 67 F. Long-term Obligations General Obligation Bonds The City has issued general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. The City is authorized to levy an ad valorem tax to pay the principal and interest on these bonds. A description of the general obligation bonds outstanding at the end of the year follows: General Obligation Bonds, Series 2017. On June 20, 2017, the City issued $27,000,000 of General Obligation Bonds. The 2017 bonds bear interest at 3.0% to 5.25% and consist of serial bonds maturing yearly on December 1 through 2036. Proceeds from the sale of the Bonds will be used to finance the acquisition, construction, installation and equipping of the Project, which generally includes the construction of a new Englewood Police Department Headquarters Building, and to pay the costs of issuance of the Bonds. The Bonds are general obligations of the City and are secured by the City’s full faith and credit. All taxable property within the boundaries of the City is subject to ad valorem taxation without limitation as to the mill rate to generate an amount sufficient to pay the principal of and interest on the Bonds when due. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. General Obligation Refunding Bonds, Series 2010. On October 19, 2010, the City issued $9,985,000 of General Obligation Refunding Bonds, to provide resources to purchase U.S. Treasury, Certificates and Notes that were placed in an irrevocable trust for the purpose of generating resources for future debt service payments of $4,000,000 of Series 2001 and $5,255,000 of Series 2002 General Obligation Bonds representing all outstanding bonds maturing on or after December 1, 2010. As a result, the refunded bonds were called in 2011 and 2012. The difference in debt service between the refunded and refunding debt was $386,982. The 2010 bonds bear interest at 2.0% to 4.0% and consist of serial bonds maturing yearly on December 1 through 2023. Bonds maturing on or after December 1, 2021 are subject to redemption at the option of the City. Interest is payable semiannually on June 1 and December 1. The original issue was used to fund improvements to the City’s two recreation centers and the construction of the Pirates Cove Family Aquatics Center. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. There is no acceleration provision and bond holders cannot foreclose on property located within the boundaries of the City. General Obligation Water Refunding and Improvement Bonds, Series 2012, original principal amount of $8,590,000, dated July 11, 2012, consisting of serial bonds due annually in varying amounts through January 1, 2032. The term bonds maturing on January 1, 2023 are subject to redemption prior to their respective maturities at the option of the City. Interest is payable semi-annually at rates ranging from 2% to 4%. The bonds were issued to refund the Series 2004 General Obligation Water bonds. The remaining $1,970,000 of outstanding bonds were called January 1, 2016. Although there is a general obligation pledge on these bonds, which allows the City to certify a rate of levy for property taxes to pay principal and interest on the bonds, it is the City’s intention to service the debt from available moneys in the Water Fund. The original 2004 bonds were issued to finance various water system improvement projects. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. There is no acceleration provision and bond holders cannot foreclose on property located within the boundaries of the City. General Obligation Water Bonds, Series 2019, original principal amount of $2,670,000, dated August 1, 2019 consisting of serial bonds due annually in varying amounts through January 1, 2029. Interest is payable semi- annually at rate of 2.29%. The bonds were issued to refund the Series 2009 General Obligation Water bonds. The remaining $2,615,000 of outstanding bonds were called August 1, 2019. The original bonds were issued to finance miscellaneous water system improvement projects. Although there is a general obligation pledge on these bonds, which allows the City to certify a rate of levy for property taxes to pay principal and interest on the bonds, it is the City’s intention to service the debt from available moneys in the Water Fund. Principal payments begin on January 1, 2020. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. There is no acceleration provision and bond holders cannot foreclose on property located within the boundaries of the City. Page 164 of 374 68 General obligation bonds currently outstanding are as follows: Annual debt service requirements to maturity for general obligation bonds are as follows: Revenue Bonds The City also issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding at year-end are as follows: Golf Course Revenue Refunding Bonds, Series 2013, original principal amount of $2,530,000, dated September 19, 2013, consisting of serial bonds in the original amount of $1,335,000 due annually in varying amounts through December 1, 2026, and term bonds in the original amount of $300,000 due on December 1, 2028 and term bonds in the original amount of $320,000 due on December 1, 2030 and term bonds in the original amount of $555,000 due on December 1, 2033. Interest is payable semi-annually at rates ranging from 2.00% to 5.625%. Bonds maturing on or after December 1, 2023 are callable at par in any order of maturity on December 1, 2013. The Bonds maturing on and after December 1, 2024 are subject to redemption prior to maturity, at the option of the City, in whole or in part, and if in part in such order of maturities as the City shall determine and by lot within a maturity, on December 1, 2023 and on any date thereafter, at a redemption price equal to the principal amount thereof (with no redemption premium), plus accrued interest to the redemption date. The bonds are non-rated. The difference in debt service between the refunded and refunding debt was $750,885.The original 2003 bonds that were refunded by this issue were utilized for construction of golf course improvements. The bonds are payable solely from the revenues of the Golf Course. For the year ended December 31, 2020, revenues of $507,815 were available to pay debt service of $208,683. Remaining debt service was $2,716,261. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. Storm Water Enterprise Revenue Refunding Bonds, Series 2012, original principal amount of $1,025,000, dated May 30, 2012, consisting of serial bonds due annually from December 1, 2012 through December 1, 2021. Interest is payable semi-annually at rates ranging from 2% to 2.7% on the outstanding bonds. These bonds were issued to refund the Series 2001 Storm Water Enterprise Revenue bonds. The original bonds were issued to finance miscellaneous storm water system improvement projects. The bonds are payable solely from the revenues of the Storm Water system. The difference in debt service between the refunded and refunding debt was a savings of $84,944. For the year ended December 31, 2020, revenues of $1,224,068 were available to pay debt service of $110,256. Remaining debt service was $118,105. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. Annual debt service requirements to maturity for revenue bonds are as follows: Purpose Interest Rates Amount Governmental activities 2.00% - 5.10%26,275,000$ Business-type activities 3.625% - 4.75%9,760,000 36,035,000$ Principal Interest Total 2021 2,665,000$ 1,567,488$ 4,232,488$ 2022 2,780,000 1,453,508 4,233,508 2023 2,425,000 1,338,565 3,763,565 2024 1,905,000 1,240,213 3,145,213 2025 1,985,000 1,161,048 3,146,048 2026-2030 11,260,000 4,499,662 15,759,662 2031-2035 10,925,000 2,009,861 12,934,861 2036 2,090,000 104,500 2,194,500 36,035,000$ 13,374,845$ 49,409,845$ Principal Interest Total 2021 220,000$ 108,121$ 328,121$ 2022 110,000 100,291 210,291 2023 115,000 95,066 210,066 2024 120,000 89,316 209,316 2025 125,000 83,014 208,014 2026-2030 745,000 300,755 1,045,755 2031-2033 555,000 67,800 622,800 1,990,000$ 844,363$ 2,834,363$ Page 165 of 374 69 Qualified Energy Conservation Bonds The City issued Qualified Energy Conservation Bonds in 2010. The original principal amount of $1,355,302 dated August 19, 2010. Principal and interest are due quarterly with an interest rate of 5.41% through July 19, 2026. The interest payments are partially offset by credits from the Federal Government under Section 1112 of the American Recovery and Reinvestment Act of 2009, “Section 54D” that authorizes states and political subdivisions to issue qualified energy conservation bonds “QECBs”. Proceeds will be used for qualified energy conservation purposes. Payments are made by the General Fund. In the event of a City default on its obligations, owners of the outstanding obligation may terminate the lease, or pursue any remedy authorized by law. Annual debt service requirements for the qualified energy conservation bonds are as follows: Loans payable Colorado Water Resources and Power Development Authority to fund water and sewer system improvements: The CWRPDA loans are payable solely from revenues of the City’s Sewer system, after deducting operating and maintenance costs. For the year ended December 31, 2020, revenues of $19,752,245 were available to pay debt service of $4,010,598. Remaining debt service was $20,314,560. Annual debt service requirements to maturity for loans payable are as follows: Principal Interest Total 2021 101,813$ 13,708$ 115,521$ 2022 107,672 11,450 119,122 2023 113,755 9,062 122,817 2024 120,070 6,542 126,612 2025 126,627 3,882 130,509 2026 99,039 1,078 100,117 668,976$ 45,722$ 714,698$ Servicing Issue Original Interest Outstanding Last Payment Fund Date Amount Rate Balance Due Sewer 5/1/2004 29,564,275 3.870%18,535,864 8/1/2025 In 2013, these loans were refinanced by the Colorado Water Resources and Power Development Authority. Over the remaining life of the loans, the refinancing is expected to save the Sewer Fund $2,067,000. Business-type Activities Principal Interest Total 2021 3,467,448$ 610,860$ 4,078,308$ 2022 3,574,468 500,575 4,075,043 2023 3,686,839 390,470 4,077,309 2024 3,799,210 273,886 4,073,096 2025 4,007,899 2,905 4,010,804 18,535,864$ 1,778,696$ 20,314,560$ Page 166 of 374 70 Long-term liability activity for the year ended December 31, 2020 was as follows: There are a number of limitations and restrictions contained in the various indentures. The City believes it complies with all significant limitations and restrictions. The Colorado Taxpayer Bill of Rights (TABOR) law requires annual appropriation of funds for all expenditures including debt service obligations. Compensated absences, Pension liabilities and OPEB obligations are paid from the same funds that the associated employees’ salaries are paid from, including the General Fund, Water and Sewer Funds. General obligation indebtedness of the City is limited by the City Charter to three percent of actual valuation of taxable property within the City. At December 31, 2020, this limit was $189,598,443 providing a debt margin of $158,128,272. Beginning Ending Due Within Balance-Restated Additions Reductions Balance One Year Governmental activities: General Obligation Bonds: Series 2010 Refunding 3,565,000$ -$ 965,000$ 2,600,000$ 985,000$ Premium/(Discount)118,349 - 32,036 86,313 - Series 2017 24,630,000 - 955,000 23,675,000 1,000,000 Premium/(Discount)5,314,938 - 206,080 5,108,858 - Subtotal general obligation bonds 33,628,287 - 2,158,116 31,470,171 1,985,000 Capital Lease Obligations: Civic Center COP 5,504,000 - 1,329,000 4,175,000 1,363,000 Other: Qualified Energy Conservation Bonds 765,147 - 96,171 668,976 101,813 Net Pension Liability 10,457,448 1,041,734 - 11,499,182 - Net OPEB Liability 3,460,606 - 105,724 3,354,882 - Compensated absences 1,681,886 806,687 680,087 1,808,486 904,243 Governmental activity total Long-term liabilities 55,497,374$ 1,848,421$ 4,369,098$ 52,976,697$ 4,354,056$ Business-type activities: General Obligation Water Bonds, 2012 7,745,000$ - 480,000 7,265,000$ 500,000$ Premium/(Discount)321,572 - 22,131 299,441 - General Obligation Water Refunding Note, 2019 2,670,000 - 175,000 2,495,000 180,000 Subtotal general obligation bonds 10,736,572 - 677,131 10,059,441 680,000 Revenue Bonds payable: Golf Course Refunding Bonds, 2013 1,975,000 - 100,000 1,875,000 105,000 Storm Water Series, 2012 Refunding 220,000 - 105,000 115,000 115,000 Premium/(Discount)533 - 254 279 279 Subtotal revenue bonds 2,195,533 - 205,254 1,990,279 220,279 Notes and loans payable: CWR&PDA Sewer Loan, 2004 21,896,292 - 3,360,428 18,535,864 3,467,448 Premium/(Discount)64,849 - 19,988 44,861 - Other: Net Pension Liability 3,407,424 - 74,833 3,332,591 - Net OPEB Liability 1,331,917 - 40,691 1,291,226 - Compensated absences 245,647 152,605 180,592 217,660 108,830 Business-type activity total Long-term liabilities 39,878,234$ 152,605$ 4,558,917$ 35,471,922$ 4,476,557$ Page 167 of 374 71 G. Component Unit Debt Obligations Englewood Environmental Foundation, Inc. As discussed in Note 1, the Englewood Environmental Foundation, Inc. (EEF), a separate legal entity, was created in 1997. An analysis of changes in long-term obligations for the year ended December 31, 2020 follows: The detail of the EEF’s long-term debt is as follows: On August 11, 2015, the EEF issued $10,650,000 Refunding Certificates of Participation, Series 2015, to provide resources to redeem all outstanding Series 2005 Certificates of Participation. This debt was originally issued in 1998 to finance the acquisition and renovation of an existing building for use as a Civic Center (the leased property) and the construction of various public improvements adjacent to the Civic Center. The Series 2015 Certificates of Participation bear an interest rate of 2.12% and have a final maturity of June 1, 2023. The principal and interest payments are made on June 1st and December 1st each year. The EEF’s long-term debt service obligations are as follows: At December 31, 2020, the EEF has recorded a lease receivable for $4,157,832. As the City remits the base rentals required by the lease purchase agreement, the EEF will reduce the lease receivable by the principal amount of the base rentals and record lease interest income for the interest portion of the base rentals (see Note 2.E.). Beginning Ending Due Within Balance Additions Reductions Balance One Year Certificates of Participation: Series 2015 Refunding 5,504,000$ -$ 1,329,000$ 4,175,000$ 1,363,000$ Certificates of Participation Principal Interest Total 2021 1,363,000$ 74,062$ 1,437,062$ 2022 1,394,000 44,838 1,438,838 2023 1,418,000 15,031 1,433,031 Total 4,175,000$ 133,931$ 4,308,931$ Page 168 of 374 72 Note 3. Other Information A. Investment in Joint Venture The City participates with the City of Littleton, Colorado in a joint venture for the operation of a wastewater treatment facility ("South Platte Water Renewal Partners” or "Joint Venture"). Control of the Joint Venture vests in a four-member committee, with two members appointed by each City. Each City owns a 50 percent interest in the Joint Venture, and oversight responsibilities are divided equally. The City's investment in the Joint Venture is accounted by the equity method in the Sewer Fund. Summary audited financial information as of and for the year ended December 31, 2020 follows: The City’s Sewer Fund has reflected a net gain from Joint Venture for $295,910. This amount includes the City’s share of the Joint Venture’s net loss of $3,185,759 less capital contributions from the City to the Joint Venture of $3,481,669. Complete financial statements for the Joint Venture may be obtained from City’s Department of Finance and Administrative Services. B. Risk Management Property, Liability and Workers’ Compensation The City is exposed to various risks of loss related to torts; thefts of, damage to and destruction of assets; errors or omissions; injuries to employees; and natural disasters. The City is insured for property, liability and workers’ compensation claims above its deductible amount of $150,000. The City established a Risk Management Fund (an internal service fund) to account for and finance these risks of loss. For claims in excess of these amounts, the City participates in the Colorado Intergovernmental Risk Sharing Agency (CIRSA). All funds of the City participate in the Risk Management Fund. Amounts payable to the Risk Management Fund are based on historical claims experience. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimated. Total City's Share Assets Current assets 3,386,390$ 1,693,194$ Capital assets, net 93,729,897 46,864,949 Total assets 97,116,287 48,558,143 Liabilities Total liabilities 3,050,065 1,525,033 Net position 94,066,222$ 47,033,110$ Revenues 24,875,513$ 12,437,757$ Expenses 24,283,693 12,141,847 Change in net position 591,820$ 295,910$ Page 169 of 374 73 Changes in the balance of claims liabilities during the years ended December 31, 2020 and 2019 are as follows: Colorado Intergovernmental Risk Sharing Agency (CIRSA) CIRSA is a separate legal entity established by member municipalities pursuant to the provisions of Colorado Revised Statutes and the Colorado Constitution. The City has participated in CIRSA since its inception in 1982. CIRSA is a joint self-insurance pool created by intergovernmental agreement to provide property, general and automobile liability, workers’ compensation and public official’s coverage to its members. A seven member Board elected by and from its members governs CIRSA. Coverage is provided through pooling of self-insured losses and the purchase of excess insurance coverage. CIRSA has a legal obligation for claims against its members to the extent that funds are available in its annually established loss fund and those amounts are available from insurance providers under excess specific and aggregate insurance contracts. Losses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members. CIRSA has indicated that the amount of any excess losses would be billed to members in proportion to their contributions in the year such excess occurs, although it is not legally required to do so. The City has not been informed of any excess losses that may have been incurred by the pool. Employee Health Care Medical, accidental death and disability and life insurance The City provides medical, accidental death and disability and life insurance to employees through commercial insurance with no risk of loss to the City. Dental insurance Dental benefits are entirely self-insured with coverage limited to $2,000 per covered employee and each eligible dependent per year. In the past three years, there have been no claims that have exceeded this coverage. The City established the Employee Benefits Fund (an internal service fund) to account for and finance these health benefits. All funds of the City participate in the Employee Benefits Fund. Amounts payable to the Employee Benefits Fund are based on commercial insurance premiums and passed on to the participating funds. A liability for dental claims is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimated. Other than current amounts, the City believes the estimated claims liability is not fully measurable, and the City could incur additional costs related to incurred but not reported claims. C. Commitments and Contingencies Legal Proceedings A number of claims are presently pending against the City. The City is denying the allegations and is defending against them. Although the eventual outcome of these matters cannot be predicted, it is the opinion of management, based upon advice of legal counsel, that the City's ultimate liability is not expected to have a material effect on the City's financial position. Property &Workers’ Liability Compensation Totals Unpaid claims - December 31, 2018 231,256$ 342,778$ 574,034$ Incurred claims (including claims reserve)251,236 278,395 529,631 Claim payments (302,807) (375,218) (677,985) Unpaid claims - December 31, 2019 179,685 245,955 425,640 Incurred claims (including claims reserve)374,534 578,227 952,761 Claim payments (181,594) (449,648) (631,242) Unpaid claims - December 31, 2020 372,625$ 374,534$ 747,159$ Page 170 of 374 74 Federally Assisted Grant Programs Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. D. Employee Retirement Systems and Pension Plans Eligible City employees are covered by one of six retirement plans; participation depends on occupation and date of hire, as follows: Defined Benefit Retirement Plans Nonemergency Employees Retirement Plan (NERP) - Defined Benefit Police Officers Statewide Defined Benefit (SWDB) Plan (FPPA) Police Officers Statewide Hybrid Pension (SWH) Plan (FPPA) Police Officers Statewide Hybrid Pension Plan - Defined Benefit Component Police Officers Statewide Hybrid Pension Plan - Money Purchase Component Police Officers Pension Plan (Old Hire) - Defined Benefit (FPPA) Firefighters Pension Plan (Old Hire) - Defined Benefit (FPPA) Volunteer Firefighters Plan - Defined Benefit (FPPA) Nonemergency Employees Retirement Plan (NERP) Plan Description - The Nonemergency Employees Retirement Plan (NERP) is a defined benefit, single- employer; plan. The plan was established by the City for employees other than management staff, mid- managers, supervisors, confidential employees, police officers and firefighters. Employees hired into this group are offered the choice of joining the NERP plan, or the Nonemergency Employees Money Purchase Plan (NEMP), which is discussed later in this section. The Plan is governed by the City and administered by a Retirement Board composed of seven members, two are elected from the membership of the Plan by its members, one board member is elected from the City Council by the City Council, three board members are elected from registered voters of the City by City Council and the final member is the Director of Finance and Administrative Services. The plan does not publish a separate stand-alone report, but is reported in the financial statements as a Pension Trust Fund. The Englewood Municipal Code establishes Member benefits and other Plan provisions and are summarized as follows: The City reserves the right to alter, amend, or terminate the Plan or any part thereof provided that no such alteration or amendment shall provide that the retirement benefit payable to any retired member shall be less than that provided by the member’s accumulated contributions or affect the right of any member to receive a refund of his or her accumulated contributions and shall not directly or indirectly reduce any member’s accrued pension. Additionally, no alteration or termination of the Plan or any part thereof shall permit any part of the fund to revert to or be recoverable by the City or be used for or diverted to purposes other than the exclusive benefit of members, retired members, vested members or beneficiaries. Further, no amendment shall cause the elimination of an optional form of benefit or the elimination of an early retirement benefit that continues after retirement. The Plan includes a Deferred Retirement Option Plan (DROP). This option allows a member who has attained age and service requirements to begin receiving retirement benefits while continuing employment. The retirement benefits are used to fund a separate self-directed, deferred retirement account. The member contracts with the City for the member-determined period of time not to exceed three years at which time employment terminates. The benefit payments are held in a separate account administered by a third party outside of the Plan. The member is permitted distribution from the separate account only upon death or termination of employment. The member may terminate employment at any time prior to the designated termination date. Description of Benefits - Benefits for retired Members begin on the first day of the month following termination or other eligibility. Members of this plan are eligible for normal retirement benefits after age 65 or earlier if eligible under the Rule of 88 (members who have attained age 55 where age combined with their years of credited service equals or exceeds 88). A Member can elect a monthly benefit for life and for a minimum of ten years for the members and his or her beneficiaries, based on 1.5% of their final average monthly compensation multiplied by their years of credited service. Alternate actuarially equivalent payment options may be selected. Average monthly compensation equals to 1/36th of the 36 highest paid consecutive months during the last ten years of the employee's eligibility. Page 171 of 374 75 Members who receive long-term disability benefits continue to accrue years of service credits and are eligible to receive retirement benefits on the first day of the month following the normal retirement age. Benefits are based on the credited service the employee accrues during the period of time he or she receives the City’s long-term disability. If a pre-retirement member dies prior to reaching normal retirement and has five or more years of credited service, the surviving spouse will receive 50% of the monthly accrued benefit for life. If the member is not survived by a spouse, the designated beneficiary will receive 50% of the monthly benefit for ten years. Payments commence on the first day of the month following the later of the member's death, or the date the member would have attained age 55. Members vest after five years of credited service with the City. The Plan does not provide for automatic benefit increases. Ad hoc retirement benefit increases must be approved by formal action of the City Council. Ad hoc retirement increases are granted only if funds are available and do not violate TABOR provisions restricting incurring multiple year obligations without a vote. Contributions - The Englewood Municipal Code requires the City to provide funds necessary to pay Member benefits as actuarially determined. The City expects to continue contributing to the plan, but assumes no responsibility to do so in the future and reserves the right to suspend or to reduce contributions at any time. The total contribution amount to fund the Plan has been historically determined by annual actuarial studies that determine the contribution based on a percentage of eligible compensation. Effective December 31, 2012 each Member shall contribute three percent (3%) of their Compensation to the Plan, as a portion of the actuarially required contribution, by means of payroll deduction for the periods the Member earns Credited Service. If a non- vested Member leaves employment prior to vesting and his or her Accumulated Contributions are more than $1,000, the former Member may request a refund or rollover the funds to a qualified plan. If the Members Accumulated Contributions are less than $1,000 the Member is allowed the opportunity to rollover the funds within 30 days or the Accumulated Contributions will be distributed to the former Member. Investment policy - The Plan’s investment policy is established and administered by the Board and can be amended by a majority vote of its members. It is the policy of the board to pursue an investment strategy that reduces risk by diversifying the portfolio across a broad range of asset classes. The following was the Board’s adopted asset allocation policy as of December 31, 2020: Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions - At December 31, 2020, the City reported a net pension liability of $7,197,820. The net pension liability was measured as of December 31, 2020 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2020, and standard update procedures were used to roll forward the total pension liability to December 31, 2020. Asset Class Target Allocation Long-Term Expected Rate of Return Domestic Fixed Income 18.0%2.8% Domestic Equity 28.0%7.0% International Equity 17.0%8.0% High Yield Fixed Income 3.0%4.5% Real Estate 10.0%7.0% Commodities 5.0%4.5% Other 19.0%4.5% Total 100% Page 172 of 374 76 For the year ended December 31, 2020, the City recognized pension expense of $1,581,154. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The January 1, 2020 actuarial valuation was used to determine the Actuarially Determined Contribution for the fiscal year ending December 31, 2020. The valuation used the following actuarial assumption and other inputs: Rate of return - For the year ended December 31, 2020, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 11.64%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Long-term expected rate of return was determined using a building-block method in which best- estimate ranges of expected future real rates of return are developed. Discount Rate - The discount rate of 6% was used to measure the total pension liability. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine total pension liability. Sensitivity of the net pension liability to the single discount rate - The following table presents the plan’s net pension liability, calculated using the discount rate of 6.5% as well as the effect on net pension liability if the discount rate was 1% lower or 1% higher than the current rate: Net pension liability of the Plan - The components of the net pension liability of the Plan at December 31, 2019 were as follows: Administrative costs of the plan, if not paid by the City, are paid from the Plan. There are no investments in, loans to, or leases with parties related to the plan. Deferred Outflows of Resources Deferred Inflows of Resources Net difference between expected and actual investment earnings $ - $ (2,383,533) Net difference in expected and actual experience 78,064 - Assumption Change 1,098,766 - Total 1,176,830$ (2,383,533)$ Year ended December 31: 2021 497,976$ 2022 (177,094) 2023 (1,106,941) 2024 (420,644) 2025 - Thereafter - Total (1,206,703)$ 1% Decrease (5%) Discount Rate (6%) 1% Increase (7%) Net pension liability 12,038,224$ 7,197,820$ 3,086,269$ Total pension liability 47,299,890$ Plan fiduciary net position (40,102,070) Plan net pension liability 7,197,820$ Plan fiduciary net position as a percentage of total liab 84.78% Page 173 of 374 77 Police Officers Statewide Defined Benefit Pension Plan (SWDB) and Statewide Hybrid Plan (SWH) Plan Description - The Statewide Defined Benefit Plan (SWDB) is a cost-sharing multiple-employer defined benefit pension plan. The Statewide Hybrid Plan (SWH) is a cost-sharing multiple-employer combination defined benefit and money purchase pension plan. The Plans are administered by the Fire & Police Pension Association of Colorado (FPPA). FPPA issues a publicly available comprehensive annual financial report that can be obtained on FPPA’s website at http://www.fppaco.org. Description of Benefits SWDB Plan - A member is eligible for a normal retirement pension once the member has completed twenty-five years of credited service and has attained the age of 55. The annual normal retirement benefit is 2 percent of the average of the member’s highest three years’ base salary for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter. The benefit earned prior to January 1, 2007 for members of affiliated Social Security employers will be reduced by the amount of Social Security income payable to the member annually. Effective January 1, 2007, members currently covered under Social Security will receive half the benefit when compared to the Statewide Defined Benefit Plan. Benefits paid to retired members are evaluated and may be re-determined every October 1. The amount of any increase is based on the FPPA Board’s discretion and can range from 0 to the higher of either 3 percent or the yearly change in the Consumer Price Index. A member is eligible for an early retirement at age 50 or after 30 years of service. The early retirement benefit equals the normal retirement benefit reduced on an actuarially equivalent basis. Upon termination, an employee may elect to have member contributions, along with 5 percent as interest, returned as a lump sum distribution. Alternatively, a member with at least five years of accredited service may leave contributions with the Plan and remain eligible for a retirement pension at age 55 equal to 2 percent of the member’s average highest three years’ base salary for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter. SWH Plan - A member is eligible for a normal retirement pension once the member has completed twenty-five years of credited service and has attained the age of 55. The annual normal retirement benefit is 1.5 percent of the average of the member’s highest three years’ base salary for each year of credited service. Benefits paid to retired members are evaluated and may be re- determined every October 1. The amount of any increase is based on the Board’s discretion and can range from 0 to 3 percent. A member is eligible for an early retirement at age 50 or after 30 years of service. The early retirement benefit equals the normal retirement benefit reduced on an actuarially equivalent basis. Upon termination, an employee may elect to have member contributions, along with 5 percent as interest, returned as a lump sum distribution. Alternatively, a member with at least five years of accredited service may leave contributions with the Plan and remain eligible for a retirement pension at age 55 equal to 1.5 percent of the member’s average highest three years’ base salary for each year of credited service. Both the SWDB Plan and SWH Plan include a Deferred Retirement Option Plan (DROP). A member may elect to participate in the DROP after reaching eligibility for normal retirement, early retirement, or vested retirement and age 55. A member can continue to work while participating in the DROP, but must terminate employment within 5 years of entry into the DROP. The member’s percentage of retirement benefit is determined at the time of entry into the DROP. The monthly payments that begin at entry into the DROP are accumulated in a DROP account until the member terminates service, at which time the DROP accumulated benefits can be paid as periodic installments, a lump sum, or if desired a member may elect to convert the DROP to a lifetime monthly benefit with survivor benefits. While participating in DROP, the member continues to make pension contributions, which are credited to the DROP. Effective January 1, 2003, the member shall self-direct the investments of their DROP funds. Contributions SWDB Plan - The Plan sets contribution rates at a level that enables all benefits to be fully funded at the retirement date of all members. Contribution rates for the SWDB plan are set by state statute. Employer contribution rates can only be amended by state statute. Member contribution rates can be amended by state statute or election of the membership. Members of the SWDB plan and their employers contributed at a rate of 8 percent of base salary for a total contribution rate of 16 percent through 2015. In 2015, the members elected to increase the member contribution Page 174 of 374 78 rate to the SWDB plan beginning in 2016. Member contribution rates increase 0.5 percent annually through 2022 to a total of 12 percent of base salary. Employer contributions will remain at 8 percent resulting in a combined contribution rate of 20 percent in 2022. Employees contributed 11 percent of base salary for the year ended December 31, 2020 and the City contributed 8 percent or $226,464. Contributions from members and employers of departments re-entering the system are established by resolution and approved by the FPPA Board of Directors. The re-entry group has a combined contribution rate of 22 percent of base salary through 2018. It is a local decision as to whether the member or employer pays the additional 4 percent contribution. Per the 2014 member election, the re-entry group will also have their required member contribution rate increase 0.5 percent annually beginning in 2015 through 2022 for a total combined member and employer contribution rate of 24 percent in 2022. Employees contributed 13 percent of base salary for the year ended December 31, 2020 and the City contributed 10 percent or $311,482. SWH Plan - The Plan sets contribution rates at a level that enables all benefits to be fully funded at the retirement date of all members. The members of the plan and their employers are currently each contributing at the rate determined by the individual employer, however, the rate for both employer and members must be at least 8 percent of the member’s base salary. The 2020 contribution rates for both employee and employer were 10%. The amount allocated to the Defined Benefit Component is set annually by the Fire & Police Pension Association Board of Directors. Excess contributions fund the Money Purchase Component of the plan. The Defined Benefit component contribution rate is 13.4%. Members and the City each contributed $18,649 in 2020. Within the Money Purchase Component, members are always fully vested in their own contributions, as well as the earnings on those contributions. Vesting in the employer’s contributions within the Money Purchase Component, and earnings on those contributions occurs according to the vesting schedule set by the plan document at 20 percent per year after the first year of service to be 100 percent vested after 5 years of service. Employer and member contributions are invested in funds at the discretion of members. Any forfeitures are used to cover a portion of the SWH’s administrative expenses. Basis of Presentation - The underlying financial information used to prepare the Schedule of Employer Contributions and Schedule of Collective Pension Amounts is based on FPPA’s financial statements. FPPA follows the accounting principles and reporting guidelines as set forth by the Governmental Accounting Standards Board. The financial statements are prepared using the accrual basis of accounting and reflect the overall operations of FPPA. Employer contributions in FPPA’s financial statements are recognized in the period in which they are due. Investments are reported at fair value. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions - At December 31, 2020, the City reported a net pension asset of $479,107 for its proportional share of the net pension asset of the SWDB Plan and net pension asset of $219,863 for its proportional share of the net pension asset of the SWH Plan. The net pension asset and liability were measured as of December 31, 2019, and the total pension liability used to calculate the net pension asset and liability was determined by an actuarial valuation as of January 1, 2020. The City’s proportion of the net pension asset and liability were based on a projection of the City’s contributions to the Plans relative to the projected contributions of all participating entities. At December 31, 2019, the City’s SWDB proportion was 0.8471 percent, which was a decrease of 0.0004 percent from its proportion measured as of December 31, 2018. At December 31, 2019, the City’s SWH proportion was 1.1290 percent, which was an increase of 0.00038 from its proportion measured as of December 31, 2018. For the year ended December 31, 2020, the City recognized pension (income)/expense for the SWDB Plan and SWH Plan of $422,274 and $23,476 respectively. At December 31, 2020, for the SWDB plan, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 537,946 $ - Net difference between expected and actual investment earnings - (61,300) Difference in expected and actual experience 1,393,045 (14,674) Changes in assumptions 1,496,040 - Changes in proportion 27,387 (231,015) Total 3,454,418$ (306,989)$ Page 175 of 374 79 The City’s contributions to the SWDB Plan subsequent to the measurement date of $537,946 will be recognized as a decrease to the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: At December 31, 2020, for the SWH plan, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The City’s contributions to the SWH Plan subsequent to the measurement date of $18,649 will be recognized as an increase to the net pension asset in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The January 1, 2020 actuarial valuation was used to determine the total pension liability. The valuation used the following actuarial assumptions and other inputs: The collective total pension liability as of December 31, 2020 is based upon the January 1, 2020 actuarial valuation. Long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2019 are summarized in the following table: Year ended December 31: 2021 343,461$ 2022 588,482 2023 270,672 2024 418,745 2025 383,902 Thereafter 604,222 Total 2,609,484$ Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 18,649 $ - Investment earnings - (342) Difference in expected and actual experience 79,548 - Changes in assumptions 27,470 - Changes in proportion 34,567 (12,343) Total 160,234$ (12,685)$ Year ended December 31: 2021 37,808$ 2022 46,425 2023 31,327 2024 11,308 2025 2,032 Thereafter - Total 128,900$ Inflation 2.50% Projected Salary Increases 4.25%-11.25% Investment rate of return, net of plan investment expenses, including inflation 7.00% Cost of living adjustments (COLA)0.00% Page 176 of 374 80 Discount Rate - The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the Plan’s fiduciary net pension was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s net pension liability to changes in the discount rate - The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.0 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.0 percent) or 1-percentage-point higher (8.0 percent) than the current rate: Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position is available in the separately issued FPPA financial report, which may be obtained at www.fppaco.org. Police Officers Pension Plan – (Old Hire) Plan Description - The Police Officers Pension Plan is a defined benefit, agent multiple-employer plan established for Police Officers hired prior to April 8, 1978. All plan members are retired. The plan is affiliated with the Colorado Fire and Police Pension Association (FPPA). Assets of the plan are commingled for investment purposes in the Fire and Police Member’s Benefit Fund, an agent multiple-employer defined benefit pension plan administered by FPPA. Police Officers hired after April 8, 1978 are covered under a 401(a) defined contribution plan administered by ICMA-RC. Members of this plan attain normal retirement age when they are 55 years old and have completed 20 years of credited service with the City or when they have completed 25 years of credited service at any age. Members eligible for normal retirement will receive a monthly pension equal to 2-1/2% of final monthly base pay times the first 20 years of service plus 1% of final monthly base pay for each additional year of service up to a maximum of 65% of the final twelve months average pay including longevity. If a retired police officer dies, the surviving spouse receives, until death or remarriage, a monthly pension equal to one half of the amount the officer was entitled to receive prior to death plus one-eighth of such monthly benefit for each dependent child under age 16. If there is no surviving spouse or children, the benefit is payable to a dependent parent or parents. If there are two dependent parents, the benefit is divided equally. Police officers who leave the City prior to vesting in the plan receive a refund with interest. Vested officers may receive a refund of their contributions or may remain in the plan. The authority under which benefit provisions are established or amended are provided within Colorado Revised Statutes (CRS 31—30.5-210). City Council, 65% Asset Class Target Allocation Long-Term Expected Rate of Return Global equity 38.0%7.00% Equity Long/Short 8.0%6.00% Illiquid Alternatives 25.0%9.20% Fixed Income 15.0%5.20% Absolute Return 8.0%5.50% Managed Futures 4.0%5.00% Cash 2.0%2.52% Total 100% 1% Decrease (6.0%) Discount Rate (7.0%) 1% Increase (8.0%) City's proportionate share of the SWDB net pension liability (asset)2,904,927$ (479,107)$ (3,285,715)$ 1% Decrease (6%) Discount Rate (7%) 1% Increase (8%) City's proportionate share of the SWH net pension liability (asset)(133,723)$ (219,863)$ (291,925)$ Page 177 of 374 81 of active plan members and the Board of Directors of the Colorado Fire and Police Pension Association must approve plan amendments. Any modification must maintain or enhance the actuarial soundness of the plan and cannot adversely affect the benefits of members. The Plan is administered by a Retirement Board composed of seven members, three are elected from the membership of the Plan by its members, two board members are appointed from registered voters of the City by City Council, one member is the City’s Mayor and the final member is the Director of Finance and Administrative Services. The plan does not provide for automatic benefit increases. Ad hoc retirement benefit increases must be approved by the City Council, as funds are available and subject to TABOR provisions restricting incurring multiple year obligations, without to a vote. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions - At December 31, 2020, the City reported a net pension liability of $4,460,402. The net pension liability was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2020. For the year ended December 31, 2020, the City recognized pension expense $1,114,656. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The City’s contributions to the Plan subsequent to the measurement date of $445,045 will be recognized as a decrease to the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The January 1, 2020 actuarial valuation was used to determine the total pension liability for the fiscal year ending December 31, 2020. The valuation used the following actuarial assumptions and other inputs: There were two changes to the actuarial assumptions. The mortality rates are now based on the MP-2017 scale and the investment rate of return changed to 6.5%. Long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Deferred Outflows of Resources Deferred Inflows of Resources Contribution timing $ 445,045 $ - Investment earnings 34,376 - Difference in expected and actual experience 224,503 Assumption changes 562,454 Total 703,924$ -$ Year ended December 31: 2021 (16,036)$ 2022 (34,565) 2023 21,098 2024 (38,543) 2025 - Thereafter - Total (68,046)$ Long-term investment rate of return 6.50% Municipal bond rate 2.75% Page 178 of 374 82 Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation are summarized in the following table: Discount Rate - The discount rate used to measure the total pension liability was 6.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the plan fiduciary net pension was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s net pension liability to changes in the discount rate - The following presents the City’s net pension liability calculated using the discount rate of 6.5 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.5 percent) or 1- percentage-point higher (7.5 percent) than the current rate: Pension plan fiduciary net position - Detailed information about the pension plans fiduciary net position are available in the separately issued FPPA financial report which can be obtained at www.fppaco.org. Firefighters Pension Plan (Old Hire) Plan Description - The Firefighters Pension Plan is a defined benefit, agent multiple-employer plan established for firefighters hired prior to April 8, 1978. All plan members are retired. The Plan is affiliated with the Colorado Fire and Police Pension Association (FPPA). Assets of the Plan are commingled for investment purposes in the Fire and Police Member’s Benefit Fund, an agent multiple-employer defined benefit pension plan administered by FPPA. Normal retirement for firefighters is 50 years of age and with 20 years of credited service. The monthly benefit equals 2 1/2% of final monthly base pay times 20 for the first 20 years of service plus 1% of final monthly base pay for each additional year of service up to a maximum of 65% of final monthly base pay. Alternate actuarially equivalent payment options may be selected. If a retired firefighter dies, the surviving spouse shall receive, until death or remarriage, a monthly pension equal to the greater of: (a) one-third of the salary of a first grade firefighter at the time of retirement or (b) 50% of the monthly amount received by the participant at his death; plus $30 per month for each dependent child under age 18. Firefighters vest after five years with the City. Firefighters who terminate prior to fully vesting receive their contributions with interest. Vested Members who terminate may elect to leave their contributions in the Plan and be eligible for a deferred retirement pension payable at age 50. The authority under which benefit provisions are established or amended are provided within Colorado Revised Statutes (CRS 31-30.5-210). The City Council, 65% of active Plan Members and the Board of Directors of the Colorado Fire and Police Pension Association must approve Plan amendments. Any modification must maintain or enhance the actuarial soundness of the plan and cannot adversely affect the benefits of Members. Asset Class Target Allocation Long-Term Expected Rate of Return Cash 5.0%3.2% Fixed Income 40.5%5.0% Managed Futures 0.0%4.7% Absolute Return 6.0%5.0% Long Short 6.0%6.5% Gobal Public Equity 17.5%7.7% Private Capital 25.0%9.5% Total 100% 1% Decrease (5.5%) Discount Rate (6.5%)1% Increase (7.5%) Police Officers (Old Hire) net pension liability 5,163,053$ 4,460,402$ 3,852,598$ Page 179 of 374 83 The Plan is administered by a Retirement Board composed of seven members, three are elected from the membership of the Plan by its members, two board members are appointed from registered voters of the City by City Council, one member is the City’s Mayor and the final member is the Finance Director. The Plan does not provide for automatic benefit increases. Ad hoc retirement benefit increases must be approved by the City Council, as funds are available and subject to TABOR provisions restricting incurring multiple year obligations, without a vote. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions - At December 31, 2020, the City reported a net pension liability of $3,134,231. The net pension liability was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2020. For the year ended December 31, 2020, the City recognized pension expense $982,995. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The City’s contributions to the Plan subsequent to the measurement date of $286,886 will be recognized as a decrease to the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The January 1, 2020 actuarial valuation was used to determine the total pension liability for the fiscal year ending December 31, 2020. The valuation used the following actuarial assumptions and other inputs: There were two changes to the actuarial assumptions. The mortality rates are now based on the MP-2017 scale and the investment rate of return changed to 6.5%. Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 286,886 $ - Investment earnings - (93,565) Total 286,886$ (93,565)$ Year ended December 31: 2021 (22,086)$ 2022 (48,328) 2023 29,067 2024 (52,518) 2025 - Thereafter - Total (93,865)$ Long-term investment rate of return 6.50% Municipal bond rate 2.75% Page 180 of 374 84 Long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation are summarized in the following table: Discount Rate - The discount rate used to measure the total pension liability was 6.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the plan fiduciary net pension was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s net pension liability to changes in the discount rate - The following presents the City’s net pension liability calculated using the discount rate of 6.5 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.5 percent) or 1- percentage-point higher (7.5 percent) than the current rate: Pension plan fiduciary net position - Detailed information about the pension plans fiduciary net position are available in the separately issued FPPA financial report which can be obtained at www.fppaco.org. Volunteer Firefighters Pension Plan Plan Description - The Volunteer Firefighters Pension Plan is a defined benefit, agent multiple-employer plan affiliated with the Colorado Fire and Police Pension Association (FPPA). All plan members are retired. Assets of the Plan are commingled for investment purposes in the Fire and Police Member’s Benefit Fund, an agent multiple-employer defined benefit pension Plan administered by FPPA. The Plan is administered by a Retirement Board composed of seven members, three are elected from the membership of the Plan by its members, two board members are appointed from registered voters of the City by City Council, one member is the City’s Mayor and the final member is the Director of Finance and Administrative Services. Description of Benefits - The Plan provides retirement benefits for Members and beneficiaries according to Plan provisions as enacted and governed by the Firefighters Pension Board. Colorado Revised Statutes (CRS), as amended, establishes basic benefit provisions under the Plan. The monthly benefit amount for retirees and beneficiaries are $450 and $225, respectively. All plan members are retired. Contributions - Funding for the Police Officers (Old Hire), Firefighters (Old Hire) and Volunteer Firefighter pension plans are provided within the Plan documents and Colorado statutes that state the City shall contribute to the fund to the extent necessary to finance the benefits provided by the plan on a sound actuarial basis. The City contributes to the Plans at a rate determined by an actuarial study done at least every three (2) years. The Asset Class Target Allocation Long-Term Expected Rate of Return Cash 5.0%3.2% Fixed Income 40.5%5.0% Managed Futures 0.0%4.7% Absolute Return 6.0%5.0% Long Short 6.0%6.5% Gobal Public Equity 17.5%7.7% Private Capital 25.0%9.5% Total 100% 1% Decrease (5.5%) Discount Rate (6.5%) 1% Increase (7.5%) Firefighers (Old Hire) net pension liability 3,760,279$ 3,134,231$ 2,584,499$ Page 181 of 374 85 required contributions are paid annually from general revenues of the City into the Plans. The contribution amounts for the plan have been historically determined by biennial actuarial studies. Administrative costs of the plans are paid from the pension funds per (CRS 31—30.5-204(3)). There are no investments in, loans to or leases with parties related to the Plan. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions - At December 31, 2020, the City reported a net pension liability of $39,320. The net pension liability was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2019. For the year ended December 31, 2020, the City recognized pension income of $5,797. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The City’s contributions to the Plan subsequent to the measurement date of $13,796 will be recognized as an increase to the net pension asset in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The January 1, 2019 actuarial valuation was used to determine the total pension liability for the fiscal year ending December 31, 2020. The valuation used the following actuarial assumptions and other inputs: Assumption changes: Investment rate of return changed from 7.5% to 7% Mortality rate tables were changed from RP-2014 to MP-2017 Long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation are summarized in the following table: Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 13,796 $ - Investment earnings - (1,084) Total 13,796$ (1,084)$ Year ended December 31: 2020 (213)$ 2021 (502) 2022 (4) 2023 (365) 2024 - Thereafter - Total (1,084)$ Long-term investment rate of return 7.00% Municipal bond rate 3.71% Asset Class Target Allocation Long-Term Expected Rate of Return Cash 2.0%2.5% Fixed Income 15.0%5.2% Managed Futures 4.0%5.0% Absolute Return 8.0%5.5% Long Short 8.0%6.0% Gobal Public Equity 38.0%7.0% Private Capital 25.0%9.2% Total 100% Page 182 of 374 86 Discount Rate - The discount rate used to measure the total pension liability was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the plan fiduciary net pension was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s net pension liability to changes in the discount rate - The following presents the City’s net pension liability calculated using the discount rate of 7.0 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.5 percent) or 1- percentage-point higher (8.5 percent) than the current rate: Pension plan fiduciary net position - Detailed information about the pension plans fiduciary net position are available in the separately issued FPPA financial report which can be obtained at www.fppaco.org. Changes in net pension liability / (asset) for the City’s single-employer Nonemergency Pension Plan and the City’s Police Officer, Firefighter and Volunteer Firefighter agent multiple-employer plans are listed below: 1% Decrease (6.0%) Discount Rate (7.0%) 1% Increase (8.0%) Volunteer Firefighters net pension liability 42,836$ 39,320$ 36,185$ Schedule of Changes in the Net Pension Liability for the pension plans and years shown 2020 2019 2019 2019 Nonemergency Police Officer Firefighter Volunteer Plan Old Hire Plan Old Hire Plan Firefighter Plan Total pension liability-beginning 44,469,994$ 7,870,872$ 7,970,111$ 72,623$ Changes for the year: Service cost 401,781 - - - Interest 2,763,819 559,479 564,052 4,617 Differences between expected and actual experience 180,393 224,503 120,920 - Changes of assumptions 2,539,071 562,454 607,534 - Benefit payments, including refunds of member contributions (3,055,168) (837,444) (915,390) (13,550) Net change in total pension liability 2,829,896 508,992 377,116 (8,933) Total pension liability-ending (a)47,299,890$ 8,379,864$ 8,347,227$ 63,690$ Plan fiduciary net position-beginning 37,572,375$ 3,852,998$ 5,220,997$ 22,987$ Changes for the year: Contributions--employer 1,176,235 445,045 286,886 13,796 Contributions--member 135,257 - - - Net investment income 4,304,331 466,936 629,202 3,358 Benefit payments, including refunds of member contributions (3,055,168) (837,444) (915,390) (13,550) Administrative expense (30,960) (8,073) (8,699) (2,221) Net change in plan fiduciary net position 2,529,695 66,464 (8,001) 1,383 Plan fiduciary net position-ending (b)40,102,070$ 3,919,462$ 5,212,996$ 24,370$ Plan net pension liability-ending (a-b)7,197,820$ 4,460,402$ 3,134,231$ 39,320$ Page 183 of 374 87 The annual pension cost, net pension obligation and related information for the Nonemergency, Police Officers- Old Hire, Firefighters-Old Hire and Volunteer Firefighters pension funds for the current year are presented below: Defined Contribution Retirement Plans ICMA-RC Money Purchase Management Plan - Defined Contribution Nonemergency Employees Money Purchase Plan (NEMP) - Defined Contribution ICMA-RC Money Purchase Police Plan - Defined Contribution ICMA-RC Money Purchase Management Plan The City provides a 401(a) defined contribution plan for City management staff employees. The City contributes 10% percent of each eligible employee's base salary, and each eligible employee contributes 6% of base salary. The Plan is administered by ICMA-RC. Management staff is eligible to participate upon employment, and all contributions vest immediately. NonEmergency Employees Money Purchase Plan (NEMP) In December 1987, a majority of the employees classified as mid-managers, supervisors and confidential (MSC) who were covered by the NonEmergency Employees Retirement Plan (NERP) requested the creation of a 401(a) defined contribution plan. Because of this request, the NEMP was formed. The NEMP is administered by ICMA- RC. All employees promoted into the MSC are offered the choice of remaining in the NERP, or joining the NEMP. All eligible new hire MSC employees join the NEMP. The City contributes 7% of each employee's base salary to the Plan, and each eligible employee contributes 3% of base salary. The City's contributions and account earnings begin to vest when the employee has two years of service, and are fully vested after five years of service. The City’s contributions and earnings for the employees who leave employment prior to fully vesting are used to reduce the City's NEMP contribution requirement. If a promoted employee with less than five years of credited service elects to join the NERP plan, the employee immediately vests in the accrued benefit of the NERP and continues to accrue credited service towards vesting in the NEMP. ICMA-RC Money Purchase Police Plan (Police 401a) Under the State of Colorado Fire and Police Pension Plan’s provision in the state statutes, the City established a 401(a) defined contribution plan for all police officers hired on or after April 8, 1978. This Plan is administered by ICMA-RC. The Police Officers eligible for the Police 401a were given a one-time option in 2013 to elect a plan from FPPA or remain in the Police 401a. No new Members are permitted after May 20, 2013. The City and qualified employees each contribute 10% of the employee's base salary. In a defined contribution plan, benefits depend solely on amounts contributed to the Plan plus investment earnings. Employee participation begins on their date of employment. The City's contributions for each employee (and earnings allocated to the employee's account) begin to vest when the employee has three years of service, and are fully vested after seven years of Nonemergency Police Officers Firefighters Volunteer Pension Plan Old Hire Old Hire Firefighters urrent membership: Inactive plan members and beneficiaries receiving benefits 211 33 36 5 Inactive plan members entitled to but not yet receiving benefits 51 --- Active plan members 90 --- 352 33 36 5 ontribution Rates: City 28.40%N/A N/A N/A Plan members 3.0%N/A N/A N/A nnual pension cost (APC)$1,303,216 $445,045 $286,866 $13,796 ontributions made $1,176,235 $445,045 $286,866 $13,796 et pension obligation $126,981 $0 $0 $0 ercentage of APC contributed 90%100%100%100% ctuarial valuation date 1/1/2019 1/1/2020 1/1/2020 1/1/2019 Page 184 of 374 88 service. Non-vested City contributions and earnings thereon for employees who leave employment before seven years of service are used to reduce the City's contribution requirement. The authority to amend the provisions of the three defined contribution plans lies within the respective plan documents, which state that the City Council may amend the terms of the plan provided that active or retired Members’ benefits are not adversely affected. There are no investments in, loans to, or leases with parties related to the plans. The plans are financed on a pay-as-you-go basis with the expected benefits being budgeted annually within the General Fund and other funds according to personnel assignments. Required employer and employee contributions for the year ended December 31, 2020, are presented below: Other - Deferred Compensation and Disability Benefits The City has a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan is administered by ICMA-RC. Participation in the Plan is optional for all employees. The Plan allows employees to defer a portion of their salary until future years. All plan assets are held in trust for the exclusive benefit of the participants. Police and Firefighters Disability Benefits. Statewide Death and Disability Plan is a cost-sharing multiple employer defined benefit plan administered by the Fire and Police Pension Association of Colorado that provides benefits for all the City’s police officers. The Plan is noncontributory for those hired prior to January 1, 1997. For employees hired subsequent to January 1, 1997, the City and employee each contribute 1.5% of covered salary. The coverage is both on and off duty and is for Members who have not met 25 years of accumulated service and age 55. Colorado Statutes, Title 31, Article 31, Part 8, assign the authority to establish benefit provisions to the state legislature. The City Council determines the contribution split between employees and the City. For the year ended December 31, 2020 the City and employees each contributed $74,588. FPPA issues a publicly available annual financial report that includes financial statements and required supplementary information for the Statewide Death and Disability Plan that may be obtained on FPPA’s website at http://www.fppaco.org. E. Other Postemployment Benefits Plan Description The City of Englewood Retiree Health Insurance Assistance Plan (“the Retiree Assistance Plan”) is a single- employer defined contribution post-employment heathcare plan. The City pays amounts that range from $50 to $100 dependent on which employment contract (or policy) the individual was under while employed by the City. The Retiree Assistance Plan does not issue a publicly available financial report. Funding Policy. The plan is financed on a pay-as-you-go basis with the expected benefits being budgeted annually within the General fund and other funds where appropriate. The plan has no assets and is not administered through a trust that meets the criteria in paragraph 4 of GASB statement 75. Annual OPEB Cost and Net OPEB Liability The City’s OPEB expense for the year ended December 31, 2020 was $58,731. No forfeitures are included in this OPEB expense amount. City Management NEMP Police Employers required, which equal actual contributions: Amount 199,106$ 1,078,436$ 97,553$ As a percent of covered payroll 10.00%7.00%10.00% Employees required, which equal actual contributions: Amount 119,464$ 462,187$ 97,553$ As a percent of covered payroll 6.00%3.00%10.00% Page 185 of 374 89 Total OPEB liability is calculated as follows: Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB are: Note 4. Tax, Spending and Debt Limitations Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR), contains tax, spending, revenue and debt limitations, which apply to the State of Colorado and all local governments. Enterprises, defined as government-owned businesses authorized to issue revenue bonds and receiving less than 10% of annual revenue in grants from all state and local governments combined, are excluded from the provisions of TABOR. The City's management believes its Enterprise Funds, as listed in the Table of Contents, qualify for this exclusion. Spending and revenue limits are determined based on the prior year's Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. On November 4, 1997, a majority of the City’s electors authorized the City to collect and spend or retain in a reserve all revenues without regard to any limitations under TABOR. TABOR requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The reserves are reported as restricted net position or fund balance in the financial statements. The City's management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits, may require judicial interpretation. Note 5. Significant Subsequent Event Subsequent to December 31, 2020 the Federal Government passed the American Recovery Plan Act. This act includes funding for state and local governments. While no funding has been received to date, the city expects to receive is approximately $7.5 million dollars over the next two years. 2020 Total OPEB liability Service cost -$ Interest on total OPEB liability 177,803 Changes of benefit terms - Differences between expected and actual experience of the total OPEB liability - Changes of assumptions (45,219) Benefit payments (278,999) Net change in total OPEB liability (146,415) Total OPEB liability--beginning 4,792,523 Total OPEB liability--ending 4,646,108$ Year Ending Net Deferred December 31 Outflows/(Inflows) 2021 (45,219) 2022 (45,219) 2023 (40,064) 2024 (512) 2025 (512) Thereafter (1,201) Total (132,726) Page 186 of 374 90 THIS PAGE LEFT BLANK INTENTIONALLY Page 187 of 374 CITY OF ENGLEWOOD, COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2020 With Comparative Totals for December 31, 2019 Variance with Final Budget - Budgeted Amounts Actual Positive 2019 Revenues Original Final Amounts (Negative)Actual Taxes Property 4,604,000$ 4,604,000$ 4,605,878$ 1,878$ 4,018,337$ Specific ownership 525,000 525,000 527,933 2,933 577,106 Sales and use 32,649,281 32,649,281 31,848,763 (800,518) 31,436,477 Franchise 3,475,000 3,475,000 3,601,590 126,590 3,471,056 Hotel/motel 20,000 20,000 19,762 (238) 25,933 Total taxes 41,273,281 41,273,281 40,603,926 (669,355) 39,528,909 Licenses and Permits Business licenses and permits 212,750 212,750 237,547 24,797 256,992 Building licenses and permits 1,249,193 1,249,193 1,411,554 162,361 1,657,075 Total licenses and permits 1,461,943 1,461,943 1,649,101 187,158 1,914,067 Intergovernmental State shared revenue 1,294,953 1,294,953 1,218,299 (76,654) 1,541,971 Federal grants 9,600 9,600 2,886,881 2,877,281 37,821 State grants 76,800 76,800 49,198 (27,602) 70,787 Local grants - - 17,960 17,960 20,000 Payment in lieu of taxes 33,000 33,000 36,408 3,408 41,204 Total intergovernmental 1,414,353 1,414,353 4,208,746 2,794,393 1,711,783 Charges for Services Recreation programs 2,714,142 2,714,142 997,687 (1,716,455) 2,306,642 General government 2,188,209 2,188,209 2,172,227 (15,982) 2,197,385 Public safety 17,000 17,000 18,278 1,278 26,237 Administration of joint venture 475,000 475,000 472,801 (2,199) 472,926 Court costs 92,092 92,092 52,042 (40,050) 81,437 Highway and street 114,510 114,510 94,583 (19,927) 100,490 Total charges for services 5,600,953 5,600,953 3,807,618 (1,793,335) 5,185,117 Fines and Forfeitures Court fines 731,500 731,500 871,622 140,122 703,648 Library fines 10,000 10,000 2,413 (7,587) 8,750 Property and liability fines 600 600 8,947 8,347 16,826 Total fines and forfeitures 742,100 742,100 882,982 140,882 729,224 Net Investment Income 304,946 304,946 454,347 149,401 491,630 Contributions from component units 1,643,000 1,643,000 1,698,745 55,745 1,356,827 Other 522,099 522,099 498,394 (23,705) 663,141 Total Revenues 52,962,675 52,962,675 53,803,859 841,184 51,580,698 (Continued) Schedules of Required Supplementary Information 91 Page 188 of 374 CITY OF ENGLEWOOD, COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2020 With Comparative Totals for December 31, 2019 (Continued) Variance with Final Budget - Budgeted Amounts Actual Positive 2019 Expenditures Original Final Amounts (Negative)Actual Current: General Government Legislation City Council 259,138$ 259,138$ 262,956$ (3,818)$ 246,113$ Board of Adjustments and Appeals 1,904 1,904 633 1,271 1,488 Planning and Zoning Commission 6,853 6,853 5,564 1,289 579 Library Board 3,000 3,000 407 2,593 2,987 Parks and Recreation Commission 3,000 3,000 894 2,106 866 Cultural Arts Commission 2,000 2,000 18 1,982 72 Code Enforcement Advisory Commission 500 500 - 500 - Alliance for Commerce in Englewood 400 400 24 376 - Transportation Advisory Commission 568 568 - 568 330 Keep Englewood Beautiful Comission 55,945 55,945 27,194 28,751 63,873 Historic Preservation Commission 1,500 1,500 60 1,440 196 Total Legislation 334,808 334,808 297,750 37,058 316,504 City Attorney 959,114 959,114 832,971 126,143 837,637 Municipal Court 1,262,559 1,262,559 1,048,016 214,543 1,074,700 City Manager City Manager 931,312 931,312 658,649 272,663 526,864 City Clerk 485,062 485,062 452,042 33,020 343,756 Communications 694,073 894,073 862,329 31,744 412,464 Total City Manager 2,110,447 2,310,447 1,973,020 337,427 1,283,084 Community Development 2,842,103 3,642,103 3,619,986 22,117 2,379,527 Finance Finance Administration 453,972 453,972 440,901 13,071 436,241 Accounting 536,611 536,611 560,907 (24,296) 523,907 Revenue and budget 387,348 387,348 374,484 12,864 398,094 Purchasing 190,112 190,112 180,869 9,243 218,840 Total Finance and Administrative Services 1,568,043 1,568,043 1,557,161 10,882 1,577,082 Human Resources HR Administration 982,615 982,615 774,246 208,369 751,635 Employee services 494,042 494,042 173,634 320,408 78,232 Total Human Resources 1,476,657 1,476,657 947,880 528,777 829,867 Information Technology 3,439,345 3,539,345 3,523,544 15,801 2,771,599 Contingency 428,691 428,691 336,370 92,321 217,075 Total General Government 14,421,767 15,521,767 14,136,698 1,385,069 11,287,075 (Continued) 92 Page 189 of 374 CITY OF ENGLEWOOD, COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2020 With Comparative Totals for December 31, 2019 (Continued) Variance with Final Budget - Budgeted Amounts Actual Positive 2019 Original Final Amounts (Negative)Actual Public Safety Police Administration 1,090,311$ 1,090,311$ 1,176,903$ (86,592)$ 1,431,256$ Communications and records 1,589,160 1,589,160 1,441,281 147,879 1,400,160 Police operations 11,374,506 11,374,506 11,416,319 (41,813) 11,060,808 Neighborhood services 592,338 592,338 418,643 173,695 500,511 Total Police Department 14,646,315 14,646,315 14,453,146 193,169 14,392,735 Fire Services Fire and Emergency Services Contract 6,469,932 6,469,932 6,444,084 25,848 6,270,077 Fire Operations 570,895 570,895 406,427 164,468 - Total Fire Services 7,040,827 7,040,827 6,850,511 190,316 6,270,077 Total Public Safety 21,687,142 21,687,142 21,303,657 383,485 20,662,812 Public Works Administration 524,841 524,841 491,664 33,177 332,161 Engineering 1,112,776 1,312,776 1,199,055 113,721 666,315 Streets and drainage 2,332,483 2,332,483 2,068,655 263,828 2,000,318 Traffic maintenance 949,411 949,411 893,268 56,143 801,960 General operations and maintenance 2,249,551 2,249,551 2,688,587 (439,036) 2,226,470 Total Public Works 7,169,062 7,369,062 7,341,229 27,833 6,027,224 Parks and Recreation Administration 447,115 447,115 397,317 49,798 354,020 Recreation programs and operations 3,827,705 3,827,705 2,821,239 1,006,466 3,518,869 Parks 2,567,661 2,567,661 2,355,878 211,783 2,234,387 Total Parks and Recreation 6,842,481 6,842,481 5,574,434 1,268,047 6,107,276 Library Services 1,403,125 1,403,125 1,203,803 199,322 1,239,177 Debt Service Principal 1,329,000 1,329,000 1,329,000 - 1,309,000 Interest and other charges 237,112 237,112 236,972 140 259,064 Total debt service 1,566,112 1,566,112 1,565,972 140 1,568,064 Total expenditures 53,089,689 54,389,689 51,125,793 3,263,896 46,891,628 Excess revenues over (under) expenditures (127,014) (1,427,014) 2,678,066 4,105,080 4,689,070 Other financing sources (uses) Transfers in 127,014 127,014 127,014 - 123,599 Transfers out - - - - (3,100,000) Total other financing sources 127,014 127,014 127,014 - (2,976,401) Net change in fund balances - (1,300,000) 2,805,080 4,105,080 1,712,669 Fund Balance - beginning 19,240,667 19,240,667 22,130,855 2,890,188 20,418,186 Fund Balance - ending 19,240,667$ 17,940,667$ 24,935,935$ 6,995,268$ 22,130,855$ See Independent Auditor's Report 93 Page 190 of 374 2020 2019 2018 2017 2016 2015 2014 Total pension liability Service cost 401,781$ 326,687$ 349,999$ 380,290$ 385,425$ 333,228$ 353,751$ Interest 2,763,819 2,805,826 2,790,599 2,752,138 2,694,146 2,683,902 2,616,664 Differences between expected and actual experience 180,393 20,284 144,652 213,113 187,626 (9,251) - Changes of assumptions 2,539,071 - - - 2,028,456 - - Benefit payments, including refunds of member contributions (3,055,168) (3,004,777) (2,801,839) (2,508,319) (2,282,400) (2,074,554) (1,885,640) Net change in total pension liability 2,829,896 148,020 483,411 837,222 3,013,253 933,325 1,084,775 Total pension liability--beginning 44,469,994 44,321,974 43,838,563 43,001,341 39,988,088 39,054,763 37,969,988 Total pension liability--ending 47,299,890$ 44,469,994$ 44,321,974$ 43,838,563$ 43,001,341$ 39,988,088$ 39,054,763$ Plan fiduciary net position Contributions--employer 1,176,235$ 1,151,759$ 1,203,145$ 1,254,382$ 1,226,140$ 1,265,441$ 1,153,840$ Contributions--member 135,257 140,505 154,740 170,877 176,847 183,405 185,075 Plan net investment income 4,304,331 5,568,182 (2,261,776) 4,674,850 2,805,088 (305,337) 1,529,955 Benefit payments, including refunds of member contributions (3,055,168) (3,004,777) (2,801,839) (2,508,319) (2,282,400) (2,074,554) (1,885,640) Administrative expense (30,960) (24,064) (10,826) - (15,706) (87,915) (92,784) Net change in plan fiduciary net position 2,529,695 3,831,605 (3,716,556) 3,591,790 1,909,969 (1,018,960) 890,446 Plan fiduciary net position--beginning 37,572,375 33,740,770 37,457,326 33,865,536 31,955,567 32,974,527 32,084,081 Plan fiduciary net position--ending 40,102,070$ 37,572,375$ 33,740,770$ 37,457,326$ 33,865,536$ 31,955,567$ 32,974,527$ Plan net pension liability--ending 7,197,820$ 6,897,619$ 10,581,204$ 6,381,237$ 9,135,805$ 8,032,521$ 6,080,236$ Plan fiduciary net position as a percentage of total liability 84.78%84.49%76.13%85.44%78.75%79.91%84.43% Covered payroll 4,924,218$ 4,882,949$ 5,154,581$ 5,800,022$ 5,823,219$ 5,921,079$ 6,300,916$ Plan's net pension liability as a percentage of covered payroll 146.17%141.26%205.28%110.02%156.89%135.66%96.50% Investment returns Annual money-weighted rate of return, net of investment expe 11.64%16.86%-6.19%14.03%8.85%-1.20%4.52% * The amounts presented for each fiscal year were determined as of 12/31 Up to 10 years of information will be presented as it becomes available See Independent Auditor's Report Nonemergency Pension Plan for the last 10 years* Schedule of Changes in the Net Pension Liability and Related Ratios 94Page 191 of 374 2020 2019 2018 2017 2016 2015 Total pension liability Interest 559,479$ 579,107$ 612,150$ 630,450$ 623,735$ 643,718$ Differences between expected and actual experience 224,503 - (199,738) - 14,706 - Changes of assumptions 562,454 - - - 346,977 - Benefit payments, including refunds of member contributions (837,444) (844,059) (861,594) (886,847) (904,618) (915,494) Net change in total pension liability 508,992 (264,952) (449,182) (256,397) 80,800 (271,776) Total pension liability--beginning 7,870,872 8,135,824 8,585,006 8,841,403 8,760,603 9,032,379 Total pension liability--ending 8,379,864$ 7,870,872$ 8,135,824$ 8,585,006$ 8,841,403$ 8,760,603$ Plan fiduciary net position Contributions--employer 445,045$ 445,045$ 445,045$ 434,671$ 451,389$ 442,700$ Contributions--member - - - - - - Net investment income 466,936 5,974 570,932 216,957 85,692 319,096 Benefit payments, including refunds of member contributions (837,444) (844,059) (861,594) (886,847) (904,618) (915,494) Administrative expense (8,073) (10,491) (8,077) (8,976) (7,693) (10,526) Net change in plan fiduciary net position 66,464 (403,531) 146,306 (244,195) (375,230) (164,224) Plan fiduciary net position--beginning 3,852,998 4,256,529 4,110,223 4,354,418 4,729,648 4,893,872 Plan fiduciary net position--ending 3,919,462$ 3,852,998$ 4,256,529$ 4,110,223$ 4,354,418$ 4,729,648$ Plan net pension liability--ending 4,460,402$ 4,017,874$ 3,879,295$ 4,474,783$ 4,486,985$ 4,030,955$ Plan fiduciary net position as a percentage of total liability 46.77%48.95%52.32%47.88%49.25%53.99% Covered payroll N/A N/A N/A N/A N/A N/A Plan's net pension liability as a percentage of covered payroll N/A N/A N/A N/A N/A N/A *The amounts presented for each fiscal year were determined as of 12/31. All amounts reported are based on actuarial reports calculated in the previous year. Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedule of Changes in the Net Pension Liability and Related Ratios Police Officers Old Hire Pension Plan for the last 10 years* Schedules of Required Supplementary Information 95Page 192 of 374 2020 2019 2018 2017 2016 2015 Total pension liability Interest 564,052$ 589,138$ 619,186$ 642,186$ 630,618$ 656,039$ Differences between expected and actual experience 120,920 - (83,986) - 72,443 - Changes of assumptions 607,534 - - - 419,287 - Benefit payments, including refunds of member contributions (915,390) (931,563) (939,959) (957,421) (978,436) (1,010,928) Net change in total pension liability 377,116 (342,425) (404,759) (315,235) 143,912 (354,889) Total pension liability--beginning 7,970,111 8,312,536 8,717,295 9,032,530 8,888,618 9,243,507 Total pension liability--ending 8,347,227$ 7,970,111$ 8,312,536$ 8,717,295$ 9,032,530$ 8,888,618$ Plan fiduciary net position Contributions--employer 286,886$ 283,390$ 283,390$ 222,800$ 231,369$ 237,746$ Net investment income 629,202 9,605 793,208 305,148 123,540 461,838 Benefit payments, including refunds of member contributions (915,390) (931,563) (939,959) (957,421) (978,436) (1,010,928) Administrative expense (8,699) (11,351) (8,829) (11,830) (10,464) (14,067) Net change in plan fiduciary net position (8,001) (649,919) 127,810 (441,303) (633,991) (325,411) Plan fiduciary net position--beginning 5,220,997 5,870,916 5,743,106 6,184,409 6,818,400 7,143,811 Plan fiduciary net position--ending 5,212,996$ 5,220,997$ 5,870,916$ 5,743,106$ 6,184,409$ 6,818,400$ Plan net pension liability--ending 3,134,231$ 2,749,114$ 2,441,620$ 2,974,189$ 2,848,121$ 2,070,218$ Plan fiduciary net position as a percentage of total liability 62.45%65.51%70.63%65.88%68.47%76.71% Covered payroll N/A N/A N/A N/A N/A N/A Plan's net pension liability as a percentage of covered payroll N/A N/A N/A N/A N/A N/A *The amounts presented for each fiscal year were determined as of 12/31. All amounts reported are based on actuarial reports calculated in the previous year. Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedule of Changes in the Net Pension Liability and Related Ratios Firefighters Old Hire Pension Plan for the last 10 years* Schedules of Required Supplementary Information 96Page 193 of 374 2020 2019 2018 2017 2016 2015 Total pension liability Interest 4,617$ 6,571$ 7,543$ 6,604$ 5,752$ 7,293$ Differences between expected and actual experience - (11,568) - 20,903 - 19,074 Changes of assumptions - (145) - 6,601 (14,520) 16,419 Benefit payments, including refunds of member contributions (13,550) (19,350) (21,600) (21,600) (21,600) (21,600) Net change in total pension liability (8,933) (24,492) (14,057) 12,508 (30,368) 21,186 Total pension liability--beginning 72,623 97,115 111,172 98,664 129,032 107,846 Total pension liability--ending 63,690$ 72,623$ 97,115$ 111,172$ 98,664$ 129,032$ Plan fiduciary net position Contributions--employer 13,796$ 13,796$ 5,975$ 5,975$ 1,591$ 1,591$ Net investment income 3,358 203 5,039 2,229 1,409 5,504 Benefit payments, including refunds of member contributions (13,550) (19,350) (21,600) (21,600) (21,600) (21,600) Administrative expense (2,221) (1,822) (2,262) (443) (1,312) (557) Net change in plan fiduciary net position 1,383 (7,173) (12,848) (13,839) (19,912) (15,062) Plan fiduciary net position--beginning 22,987 30,160 43,008 56,847 76,759 91,821 Plan fiduciary net position--ending 24,370$ 22,987$ 30,160$ 43,008$ 56,847$ 76,759$ Plan net pension liability--ending 39,320$ 49,636$ 66,955$ 68,164$ 41,817$ 52,273$ Plan fiduciary net position as a percentage of total liability 38.26%31.65%31.06%38.69%57.62%59.49% Covered payroll N/A N/A N/A N/A N/A N/A Plan's net pension liability as a percentage of covered payroll N/A N/A N/A N/A N/A N/A *The amounts presented for each fiscal year were determined as of 12/31. All amounts reported are based on actuarial reports calculated in the previous year. Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedule of Changes in the Net Pension Liability and Related Ratios Volunteer Firefighters Old Hire Pension Plan for the last 10 years* Schedules of Required Supplementary Information 97Page 194 of 374 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability/(asset)0.847%0.885%0.973%0.992%1.005%0.609%0.609% City's proportionate share of the net pension liability/(asset)(479,107)$ (1,118,317)$ (1,400,090)$ 358,531$ (17,713)$ (687,748)$ (544,913)$ City's covered payroll 5,908,127$ 5,483,380$ 5,112,748$ 3,268,489$ 3,262,486$ 3,367,345$ 2,117,480$ City's proportionate share of the net pension liability/(asset) as a percentage of its covered-employee payroll 8.1%20.4%27.4%11.0%0.5%20.4%25.7% Plan fiduciary net position as a percentage of the total pension liability 101.9%95.2%106.3%98.2%100.1%106.8%105.8% *The amounts presented for each fiscal year were determined as of 12/31. All amounts reported are based on actuarial reports calculated in the previous year. Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedule of the City's Proportionate Share of the Net Pension Liability Police Officers Statewide Defined Benefit Pension Plan last 10 fiscal years* 98Page 195 of 374 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability/(asset)1.129%1.091%1.100%1.788%1.828%1.809%1.655% City's proportionate share of the net pension liability/(asset)(219,863) (150,629) (214,232) (194,650) (192,510) (214,535) (168,781) City's covered payroll 186,493 180,169 167,554 234,323 240,695 223,922 123,500 City's proportionate share of the net pension liability/(asset) as a percentage of its covered-employee payroll 117.9%83.6%127.9%83.1%82.2%95.8%136.7% Plan fiduciary net position as a percentage of the total pension liability 130.1%123.5%138.9%125.8%129.4%140.6%139.0% *The amounts presented for each fiscal year were determined as of 12/31. All amounts reported are based on actuarial reports calculated in the previous year. Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedule of the City's Proportionate Share of the Net Pension Liability Police Officers Statewide Hybrid Pension Plan - Defined Benefit Component last 10 fiscal years* Schedules of Required Supplementary Information 99Page 196 of 374 Schedule of Net Pension Liability and Pension Expense for the pension plans and years shown 2020 2019 2018 2017 2016 2015 Net Pension (Asset)/Liability Nonemergency Plan 7,197,820$ 6,897,619$ 10,581,204$ 6,381,237$ 9,135,805$ 8,032,521$ Police Officer Old Hire Plan 4,460,402 4,017,874 3,879,295 4,474,783 4,486,985 4,030,955 Firefighter Old Hire Plan 3,134,231 2,749,114 2,441,620 2,974,189 2,848,121 2,070,218 Volunteer Firefighter Plan 39,320 49,636 66,955 68,164 41,817 52,273 Police Officers Statewide Defined Benefit (SWDB) Plan (479,107) (1,118,317) (1,400,090) 358,531 (17,713) (687,748) Police Officers Statewide Hybrid (SWH) Plan (219,863) (150,629) (214,232) (194,650) (192,510) (214,535) Total Net Pension (Asset)/Liability 14,132,803$ 12,445,297$ 15,354,752$ 14,062,254$ 16,302,505$ 13,283,684$ Pension (Income)/Expense Nonemergency Plan 1,581,154$ 1,065,877$ 1,630,616$ 1,853,831$ 2,318,331$ 465,487$ Police Officer Old Hire Plan 1,114,656 364,383 147,169 404,796 711,802 131,670 Firefighter Old Hire Plan 982,995 295,566 167,622 324,891 730,307 65,446 Volunteer Firefighter Plan (5,797) (4,320) 32,006 32,006 (11,590) 35,748 Police Officers Statewide Defined Benefit (SWDB) Plan 422,274 (412,382) (758,700) 655,366 522,453 18,724 Police Officers Statewide Hybrid (SWH) Plan 23,476 71,170 (554,921) (19,192) (33,224) 44,394 Total Pension (Income)/Expense 4,118,758$ 1,380,294$ 663,792$ 3,251,698$ 4,238,079$ 761,469$ Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedules of Required Supplementary Information 100Page 197 of 374 Contributions Percentage Contributions Percentage Contributions Percentage Contributions Percentage Year Actuarially in relation to of covered Actuarially in relation to of covered Actuarially in relation to of covered Actuarially in relation to of covered Ended required required Covered payroll required required Covered payroll required required Covered payroll required required Covered payroll 12/31 contribution contributions payroll contirbuted contribution contributions payroll contirbuted contribution contributions payroll contirbuted contribution contributions payroll contirbuted 2011 936,781 936,781 7,654,420 12.2%340,010 340,010 173,045 196.5%112,425 112,425 92,860 121.1%4,801 4,801 - N/A 2012 954,781 954,781 7,061,581 13.5%340,010 340,010 - N/A 154,023 154,023 - N/A 4,801 4,801 - N/A 2013 854,568 1,067,519 6,374,407 16.7%442,700 442,700 - N/A 237,746 237,746 - N/A 6,320 6,320 - N/A 2014 1,153,840 1,153,840 6,300,916 18.3%442,700 442,700 - N/A 237,746 237,746 - N/A 1,591 1,591 - N/A 2015 1,265,441 1,265,441 5,921,079 21.4%434,671 451,389 - N/A 222,800 231,369 - N/A 1,591 1,591 - N/A 2016 1,226,140 1,226,140 5,823,219 21.1%434,671 434,671 - N/A 222,800 222,800 - N/A 5,975 5,975 - N/A 2017 1,254,382 1,254,382 5,800,022 21.6%445,045 462,162 - N/A 283,390 294,290 - N/A 5,975 5,975 - N/A 2018 1,203,145 1,203,145 5,154,581 23.3%445,045 445,045 - N/A 283,390 283,390 - N/A 5,975 5,975 - N/A 2019 1,151,759 1,152,506 4,882,949 23.6%414,667 445,045 - N/A 286,886 286,886 - N/A 13,796 13,796 - N/A 2020 1,303,216 1,176,235 4,508,561 26.1%414,667 445,045 - N/A 286,886 286,886 - N/A 13,796 13,796 - N/A See Independent Auditor's Report Schedules of Required Supplementary Information Pension Plan Pension Plan Firefighters Old Hire Pension Plan Volunteer Firefighters Pension Plan Schedules of Employer Contributions for the years ended December 31 Single Employer and Agent-Multiple Employer Pension Plans Police Officers Old HireNonemergency Employees 101Page 198 of 374 2020 2019 2018 2017 2016 2015 2014 2013 Police Officers Statewide Defined Benefit (SWDB) Plan Contractually required contribution 537,946$ 499,491$ 318,174$ 326,849$ 326,249$ 326,370$ 336,734$ 211,748$ Contributions in relation to the contractually required contribution 537,946 499,491 318,174 326,849 326,249 326,370 336,734 211,748 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ Covered employee payroll 5,908,127$ 5,483,380$ 3,179,303$ 3,268,489$ 3,262,486$ 3,263,702$ 3,367,345$ 2,117,480$ Contributions as % of covered payroll 9.11%9.11%10.01%10.00%10.00%10.00%10.00%10.00% Police Officers Statewide Hybrid Pension Plan - Defined Benefit Component Contractually required contribution 18,649$ 18,017$ 17,392$ 16,753$ 23,125$ 24,069$ 22,392$ 12,350$ Contributions in relation to the contractually required contribution 18,649 18,017 17,392 16,753 23,125 24,069 22,392 12,350 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ Covered employee payroll 186,493$ 180,170$ 173,923$ 167,564$ 231,234$ 240,695$ 223,922$ 123,500$ Contributions as % of covered payroll 10.00%10.00%10.00%10.00%10.00%10.00%10.00%10.00% These plans were first offered to employees in 2013. * The amounts presented for each fiscal year were determined as of 12/31 Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedules of Employer Contributions Cost-Sharing Multiple-Employer Pension Plans for the years ended December 31* Schedules of Required Supplementary Information 102Page 199 of 374 2020 2019 Total OPEB liability Service cost -$ 86,977$ Interest on total OPEB liability 177,803 163,386 Changes of assumptions (45,219) (223,164) Benefit payments (278,999) (254,649) Net change in total OPEB liability (146,415) (227,450) Total OPEB liability--beginning 4,792,523 5,019,973 Total OPEB liability--ending 4,646,108$ 4,792,523$ Covered payroll 32,471,045$ 30,527,543$ Total OPEB liability as a percentage of covered payroll 14.31%15.70% Notes to schedule: The plan is funded on a pay-as-you-go basis and there are no assets being accumulated in trust to pay benefits. Canges of assumptions reflect a change in the discount rate each year. The following are the discount rates usied in each period: 2020 3.71% 2019 3.71% All amounts reported are based on actuarial reports calculated at 12/31 of the previous year. Up to 10 years of information will be presented as it becomes available. See Independent Auditor's Report Schedule of Changes in Total OPEB Liability and Related Ratios for the last 10 fiscal years Schedules of Required Supplementary Information 103 Page 200 of 374 CITY OF ENGLEWOOD, COLORADO Notes to the Required Supplementary Information December 31, 2020 Note 1. Stewardship, Compliance and Accountability A. Budgetary Information The governmental fund type annual budgets are adopted on a basis consistent with generally accepted accounting principles for all funds except the capital projects funds and certain special revenue funds (Conservation Trust and Open Space Funds), which adopt project-length budgets. The proprietary fund type annual budgets are adopted on a non-GAAP modified accrual budgetary basis. All annual appropriations lapse at year-end. Budgets are not adopted for the pension trust funds. The appropriated budget is prepared by fund, department, division, and object. The legal level of budgetary control is at the department level for the General Fund and at the fund level for all other legally adopted funds. Supplemental appropriations and transfers of appropriations between departments and/or funds require the approval of the City Council. The City Manager may transfer any unencumbered appropriation from one expenditure classification to another within the same department. 104 Page 201 of 374 Note 2. Schedules of Employer Pension Contributions-Actuarial Information Police Officers Old Hire Firefighters Old Hire Agent-Multiple Employer Pension Plans Agent-Multiple Employer Pension Plans Actuarial valuation date 1/1/2020 Actuarial valuation date 1/1/2020 Actuarial cost method Entry Age Actuarial cost method Entry Age Level amount, Open Level amount, Open Remaining amortization period N/A Remaining amortization period N/A Asset valuation method 5 year smoothed market Asset valuation method 5 year smoothed market Actuarial assumptions:Actuarial assumptions: Investment rate of return 6.5%Investment rate of return 6.5% Projected salary increases*N/A Projected salary increases*N/A *Includes inflation at 2.5%*Includes inflation at 2.5% Cost of living adjustments None Cost of living adjustments None Mortality rates were based on the RP-2014 Mortality rates were based on the RP-2014 combined healthy annuitant table with future combined healthy annuitant table with future generational improvements using scale:BB generational improvements using sc BB Changes in actuarial assumptions:Changes in actuarial assumptions: Mortality rates now based on the MP-2017 scale Mortality rates now based on the MP-2017 scale Investment rate of return changed to 6.5%Investment rate of return changed to 6.5% Nonemergency Employees Volunteer Firefighters Single Employer Pension Plan Agent-Multiple Employer Pension Plans Actuarial valuation date 1/1/2019 Actuarial valuation date 1/1/2019 Actuarial cost method Entry Age Actuarial cost method Entry Age Level amount, Closed Level amount, Open Remaining amortization period 15 years Remaining amortization period 5 years Asset valuation method 5 year moving average Asset valuation method 5 year smoothed market Actuarial assumptions:Actuarial assumptions: Investment rate of return 6.0%Investment rate of return 7.00% Projected salary increases*2.8-5.8% *Includes inflation at 2.5%Off-Duty mortality rates were based on the MP-2017 Cost of living adjustments None with a 50% multiplier Off-Duty Blue Collar mortality rates based on the RP-2014 table Mortality rates were based on the RP-2000 with a 55% multiplier combined healthy annuitant table with future generational improvements using scale:BB Assumed withdrawal rate of 20% of members age 50 and eligible for a terminated vested benefit Changes in actuarial assumptions: Reduce nominal investment assumption from 6.50% to 6.00% Mortality rates now based on the MP-2019 scale Amortization method Amortization method Amortization method Amortization method 105 Page 202 of 374 THIS PAGE LEFT BLANK INTENTIONALLY 106 Page 203 of 374 Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Conservation Trust Fund – Accounts for the acquisition of parks and open space land not previously owned by the City and for improvements to existing park and recreation facilities. Financing is provided by State Lottery funds. Open Space Fund – Accounts for the acquisition of parks and open space land not previously owned by the City and for improvements to existing park and recreation facilities. Financing is provided from the Arapahoe County Open Space Sales Tax. The Open Space Tax was originally voter approved on January 1, 2004 and after a voter approved extension will now expire on December 31, 2023. Donors Fund – Accounts for funds donated to the City for various specified activities. Malley Center Trust Fund – Accounts for a trust established by Elsie Malley to be used for the benefit of the Malley Senior Recreation Center. Parks and Recreation Trust Fund – Accounts for a trust established by the City, financed primarily by donations, to be used exclusively for specific park and recreation projects. Debt Service Funds Debt Service Funds account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources. General Obligation Bonds Fund – Accounts for the accumulation of monies for payment of General Obligation Bond principal and interest. Capital Projects Funds Capital Projects Funds account for financial resources to be used for the acquisition and/or construction of major capital facilities (other than those financed by proprietary funds). Public Improvement Fund – Accounts for the acquisition and/or construction of major capital improvements and facilities. Financing is provided primarily from building and vehicle use taxes. Capital Projects Fund – Accounts for the acquisition and/or construction of major capital improvements and facilities. Financing is provided primarily with transfers from other City Funds. Police Headquarters Construction Fund -- Accounts for the construction of the, voter approved, police headquarters building. 107 Page 204 of 374 Malley Parks and Conservation Open Center Recreation Trust Space Donors Trust Trust Assets Cash and investments 2,121,997$ 1,599,069$ 835,198$ 388,511$ 483,743$ Receivables: Property taxes - - - - - Sales and use - - - - - Interest 6,966 7,093 2,840 1,379 1,728 Accounts - - 2,000 - - Intergovernmental - 375,000 - - - Total assets 2,128,963$ 1,981,162$ 840,038$ 389,890$ 485,471$ Liabilities and fund balances Liabilities: Accounts payable -$ 39,323$ 37,171$ -$ -$ Unearned revenue - - 19,790 - - Other liabilities - 1,529 - - - Total liabilities - 40,852 56,961 - - Deferred Inflows of Resources Deferred revenue-property tax - - - - - Fund balances: Restricted for: Parks and recreation 2,128,963 1,940,310 15,273 389,890 - Law enforcement - - 39,217 - - Debt service - - - - - Committed to: Capital projects - - - - - Parks and recreation - - - - 485,471 Assigned to: Parks and recreation - - 599,963 - - Law enforcement - - 33,217 - - Other purposes - - 95,407 - - Total fund balances 2,128,963 1,940,310 783,077 389,890 485,471 Total liabilities deferred inflows and fund balances 2,128,963$ 1,981,162$ 840,038$ 389,890$ 485,471$ See Independent Auditor's Report CITY OF ENGLEWOOD, COLORADO Combining Balance Sheet Nonmajor Governmental Funds December 31, 2020 Special Revenue Funds 108 Page 205 of 374 Debt Service Capital Projects Funds Total General Nonmajor Obligation Public Capital Police Governmental Bonds Improvement Projects Headquarters Funds 654,717$ 8,677,488$ 3,591,503$ 3,683,883$ 22,036,109$ 2,916,000 - - - 2,916,000 - 173,494 - - 173,494 6,471 32,468 14,197 13,412 86,554 - - - - 2,000 - 9,481 98,945 - 483,426 3,577,188$ 8,892,931$ 3,704,645$ 3,697,295$ 25,697,583$ -$ 75,659$ 152,610$ 200,918$ 505,681$ - - - - 19,790 2,444 - - - 3,973 2,444 75,659 152,610 200,918 529,444 2,916,000 - - - 2,916,000 - - - - 4,474,436 - - - 3,496,377 3,535,594 658,744 - - - 658,744 - 8,817,272 3,552,035 - 12,369,307 - - - - 485,471 - - - - 599,963 - - - - 33,217 - - - - 95,407 658,744 8,817,272 3,552,035 3,496,377 22,252,139 3,577,188$ 8,892,931$ 3,704,645$ 3,697,295$ 25,697,583$ 109 Page 206 of 374 Malley Parks and Conservation Open Center Recreation Trust Space Donors Trust Trust Revenues Property taxes -$ -$ -$ -$ -$ Vehicle use tax - - - - - Building use tax - - - - - Intergovernmental 356,440 1,479,268 58,418 - - Charges for services - - 2,142 - - Net investment income 41,395 47,812 15,483 7,421 10,034 Contributions - - 83,514 200 - Other - - - - - Total revenues 397,835 1,527,080 159,557 7,621 10,034 Expenditures Current: General government - - - - - Public safety - - 14,383 - - Public works - - - - - Culture and recreation 97,128 617,797 77,901 - - Capital outlay 146,741 1,079,361 - - - Debt service: Principal - - - - - Interest - - - - - Total expenditures 243,869 1,697,158 92,284 - - Excess revenues over (under) expenditures 153,966 (170,078) 67,273 7,621 10,034 Other financing sources (uses) Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses)- - - - - Net change in fund balances 153,966 (170,078) 67,273 7,621 10,034 Fund balances - beginning 1,974,997 2,110,388 715,804 382,269 475,437 Fund balances - ending 2,128,963$ 1,940,310$ 783,077$ 389,890$ 485,471$ See Independent Auditor's Report CITY OF ENGLEWOOD, COLORADO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2020 Special Revenue Funds 110 Page 207 of 374 Debt Service Capital Projects Funds Total General Nonmajor Obligation Public Capital Police Governmental Bonds Improvement Projects Headquarters Funds 2,790,082$ -$ -$ -$ 2,790,082$ - 2,142,373 - - 2,142,373 - 1,966,136 - - 1,966,136 - 539,343 98,945 - 2,532,414 - - - - 2,142 46,557 182,937 108,973 90,445 551,057 - - - - 83,714 - 41,575 1,357 - 42,932 2,836,639 4,872,364 209,275 90,445 10,110,850 29,101 267,090 699,854 - 996,045 - 38,090 450,116 143,843 646,432 - 3,109,704 363,569 - 3,473,273 - 230,921 141,377 - 1,165,124 - 118,984 - 301,909 1,646,995 1,920,000 - - - 1,920,000 1,373,663 - - - 1,373,663 3,322,764 3,764,789 1,654,916 445,752 11,221,532 (486,125) 1,107,575 (1,445,641) (355,307) (1,110,682) - - 700,000 - 700,000 - (827,014) - (827,014) - (827,014) 700,000 - (127,014) (486,125) 280,561 (745,641) (355,307) (1,237,696) 1,144,869 8,536,711 4,297,676 3,851,684 23,489,835 658,744$ 8,817,272$ 3,552,035$ 3,496,377$ 22,252,139$ 111 Page 208 of 374 CITY OF ENGLEWOOD, COLORADO Conservation Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Project Budget and Actual - Budgetary Basis For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Project Project Actual Budget 2019 Budgets Amounts Remaining Actual Revenues Lottery proceeds 356,440$ 356,440$ -$ 391,645$ Net investment income 41,395 41,395 - 49,341 Total revenues 397,835 397,835 - 440,986 Expenditures Current: Culture and recreation 795,567 97,128 698,439 169,106 Capital outlay 1,096,570 146,741 949,829 60,991 Total expenditures 1,892,137 243,869 1,648,268 230,097 Net change in fund balances (1,494,302)$ 153,966 1,648,268$ 210,889 Fund balances - beginning 1,974,997 1,764,108 Fund balances - ending 2,128,963 1,974,997 Less: Fund Balance Designated for Completion of Projects (1,648,268) (1,574,138) Unappropriated fund balance 480,695$ 400,859$ See Independent Auditor's Report 112 Page 209 of 374 CITY OF ENGLEWOOD, COLORADO Open Space Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Project Budget and Actual - Budgetary Basis For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Project Project Actual Budget 2019 Budgets Amounts Remaining Actual Revenues Open Space Tax Shareback 977,153$ 977,153$ -$ 900,860$ Open Space Grants 502,115 502,115 - 146,850 Net investment income 47,811 47,811 - 57,921 Total revenues 1,527,079 1,527,079 - 1,105,631 Expenditures Current: Culture and recreation 1,481,751 617,797 863,954 288,333 Capital outlay 2,261,835 1,079,361 1,182,474 487,051 Total expenditures 3,743,586 1,697,158 2,046,428 775,384 Net change in fund balances (2,216,507)$ (170,079) 2,046,428$ 330,247 Fund balances - beginning 2,708,443 2,378,196 Fund balances - ending 2,538,364 2,708,443 Less: Fund Balance Designated for Completion of Projects (2,046,428) (2,533,438) Unappropriated fund balance 491,936$ 175,005$ See Independent Auditor's Report 113 Page 210 of 374 Variance with Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Intergovernmental 9,560$ 58,418$ 48,858$ 38,529$ Charges for services 28,500 2,142 (26,358) 9,777 Net investment income 10,000 15,483 5,483 18,457 Contributions 26,025 83,514 57,489 51,827 Total revenues 74,085 159,557 85,472 118,590 Expenditures Current: General government 93,000 - 93,000 - Public Safety 30,000 14,383 15,617 4,577 Culture and recreation 365,060 77,901 287,159 17,858 Capital outlay - - - 27,000 Total expenditures 488,060 92,284 395,776 49,435 Net change in fund balances (413,975) 67,273 481,248 69,155 Fund balances - beginning 652,209 715,804 425,140 646,649 Fund balances - ending 238,234$ 783,077$ 906,388$ 715,804$ See Independent Auditor's Report With Comparative Totals for the Year Ended December 31, 2019 CITY OF ENGLEWOOD, COLORADO Donors Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2020 114 Page 211 of 374 CITY OF ENGLEWOOD, COLORADO Malley Center Trust Fund Variance with Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Contributions 1,500$ 200$ (1,300)$ 140,650$ Net investment income 1,500 7,421 5,921 6,399 Total revenues 3,000 7,621 4,621 147,049 Expenditures Culture and recreation 35,000 - 35,000 727 Total expenditures 35,000 - 35,000 727 Net change in fund balances (32,000) 7,621 39,621 146,322 Fund balances - beginning 203,947 382,269 104,619 235,947 Fund balances - ending 171,947$ 389,890$ 144,240$ 382,269$ See Independent Auditor's Report Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual With Comparative Totals for the Year Ended December 31, 2019 For the Year Ended December 31, 2020 115 Page 212 of 374 CITY OF ENGLEWOOD, COLORADO Variance with Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Net investment income 2,500$ 10,034$ 7,534$ 12,554$ Total revenues 2,500 10,034 7,534 12,554 Expenditures Current Culture and recreation 20,000 - 20,000 - Total expenditures 20,000 - 20,000 - Net change in fund balances (17,500) 10,034 27,534 12,554 Fund balances - beginning 460,383 475,437 602,105 462,883 Fund balances - ending 442,883$ 485,471$ 629,639$ 475,437$ See Independent Auditor's Report With Comparative Totals for the Year Ended December 31, 2019 Parks and Recreation Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2020 116 Page 213 of 374 CITY OF ENGLEWOOD, COLORADO General Obligation Bonds Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Taxes 2,815,000$ 2,790,082$ (24,918)$ 3,304,715$ Net investment income 4,500 46,557 42,057 64,739 Total revenues 2,819,500 2,836,639 17,139 3,369,454 Expenditures General government 39,600 29,101 10,499 Debt service:36,247 Principal 1,920,000 1,920,000 - Interest 1,375,713 1,373,663 2,050 1,840,000 Total expenditures 3,335,313 3,322,764 12,549 3,323,210 Net change in fund balances (515,813) (486,125) 29,688 46,244 Fund balances - beginning 1,085,812 1,144,869 84,543 1,098,625 Fund balances - ending 569,999$ 658,744$ 114,231$ 1,144,869$ See Independent Auditor's Report 117 Page 214 of 374 CITY OF ENGLEWOOD, COLORADO Public Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Project Budget And Actual - Budgetary Basis For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Project Project Budget 2019 Budgets Actual Remaining Actual Revenues Vehicle use tax 2,142,373$ 2,142,373$ -$ 2,343,709$ Building use tax 1,966,136 1,966,136 - 1,845,868 Intergovernmental 539,343 539,343 - 198,530 Net investment income 182,937 182,937 - 215,361 Total revenues 4,830,789 4,830,789 - 4,603,468 Expenditures Current: General government 377,801 267,090 110,711 8,320 Public safety 38,090 38,090 - 84,340 Public works 8,013,834 3,109,704 4,904,130 2,688,804 Culture and recreation 748,049 230,921 517,128 51,742 Capital outlay 1,701,356 118,984 1,582,372 197,745 Total expenditures 10,879,130 3,764,789 7,114,341 3,030,951 Excess revenues over (under) expenditures (6,048,341) 1,066,000 (7,114,341) 1,572,517 Other financing sources (uses) Transfers in 41,575 41,575 - - Transfers out (827,014) (827,014)- (123,599) Total other financing sources (uses)(785,439) (785,439) - (123,599) Net change in fund balances (6,833,780)$ 280,561 (7,114,341)$ 1,448,918 Fund balances - beginning 8,536,711 7,087,793 Fund balances - ending 8,817,272 8,536,711 Less: Fund Balance Designated for Completion of Projects (7,114,341) (5,355,492) Unappropriated fund balance 1,702,931$ 3,181,219$ See Independent Auditor's Report 118 Page 215 of 374 CITY OF ENGLEWOOD, COLORADO Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Project Budget And Actual - Budgetary Basis For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Project Project Budget 2019 Budgets Actual Remaining Actual Revenues Intergovernmental revenues 98,945$ 98,945$ -$ -$ Net investment income 108,973 108,973 - 170,215 Other 1,357 1,357 - 1,454 Total revenues 209,275 209,275 - 171,669 Expenditures Current: General government 1,284,837 699,854 584,983 296,835 Public safety 835,467 450,116 385,351 5,120 Public works 1,019,877 363,569 656,308 233,933 Culture and recreation 358,796 141,377 217,419 32,243 Capital outlay 500,000 - 500,000 1,957,120 Total expenditures 3,998,977 1,654,916 2,344,061 2,525,251 Excess expenditures over revenues (3,789,702) (1,445,641) 2,344,061 (2,353,582) Other financing sources (uses) Transfers in 700,000 700,000 - 3,100,000 Net change in fund balances (3,089,702)$ (745,641) 2,344,061$ 746,418 Fund balances - beginning 4,297,676 3,551,258 Fund balances - ending 3,552,035 4,297,676 Less: Fund Balance Designated for Completion of Projects (2,344,061) (3,251,176) Unappropriated fund balance 1,207,974$ 1,046,500$ See Independent Auditor's Report 119 Page 216 of 374 CITY OF ENGLEWOOD, COLORADO Police Headquarters Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Project Budget And Actual - Budgetary Basis For the Year Ended December 31, 2020 Project Project Budget Budget Actual Remaining Revenues Net investment income 90,445$ 90,445$ -$ Total revenues 90,445 90,445 - Expenditures Current: Public safety 576,892 143,843 433,049 Capital outlay 2,314,353 301,909 2,012,444 Total expenditures 2,891,245 445,752 2,445,493 Excess expenditures over revenues (2,800,800) (355,307) 2,445,493 Net change in fund balances (2,800,800)$ (355,307) 2,445,493$ Fund balances - beginning 3,851,684 Fund balances - ending 3,496,377 Less: Fund Balance Designated for Completion of Projects (2,445,493) Unappropriated fund balance 1,050,884$ See Independent Auditor's Report 120 Page 217 of 374 Proprietary Funds Enterprise Funds Enterprise Funds account for operations (a) that are financed and operated in a manner similar to private business enterprises—where the intent of City Council is that costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where Council has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Water Fund – Accounts for revenues and expenses associated with providing water services to City of Englewood residents. Sewer Fund – Accounts for revenues and expenses associated with providing wastewater services to the City of Englewood residents and some county residents. Golf Course Fund – Accounts for revenues and expenses associated with the operations of the Englewood Municipal Golf Course. Storm Drainage Fund – Accounts for revenues and expenses associated with maintaining the City’s storm drainage system. Concrete Utility Fund – Accounts for revenues and expenses associated with maintaining the City’s sidewalks, curbs and gutters. Housing Rehabilitation Fund – Accounts for revenues and expenses associated with the City’s housing rehabilitation program. Internal Service Funds Internal Service Funds account for the financing of goods or services provided by one department to other departments of the City, and to other governmental units, on a cost reimbursement basis. ServiCenter Fund – Accounts for the financing of automotive repairs and services provided by the ServiCenter to other departments of the City, or to other governmental units, on a cost reimbursement basis. Capital Equipment Replacement Fund – Accounts for the accumulation of funds for the scheduled replacement of City-owned equipment and vehicles. Employee Benefits Fund – Accounts for the administration of providing City employee benefit programs: medical, dental, life, and disability insurance. Risk Management Fund – Accounts for the administration of maintaining property and liability and workers’ compensation insurance. 121 Page 218 of 374 CITY OF ENGLEWOOD, COLORADO Water Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Amount Amounts (Negative)Actual Revenues Water sales 6,493,742$ 6,734,491$ 240,749$ 6,188,680$ Raw water sales 2,000,000 2,765,732 765,732 2,664,853 City ditch revenues 40,000 34,790 (5,210) 38,804 System development fees 36,467 475,725 439,258 209,050 Net investment income 58,472 346,724 288,252 387,124 Late fees 23,000 4,365 (18,635) 19,081 Water meter sales 23,000 76,991 53,991 63,274 Rentals 10,507 12,005 1,498 11,880 Other 105,135 550,945 445,810 266,172 Bond Proceeds - - - 2,607,833 Total revenues 8,790,323 11,001,768 2,211,445 12,456,751 Expenditures Source of supply 1,926,892 2,187,201 (260,309) 1,342,190 Power and pumping 730,787 656,430 74,357 585,805 Purification 2,310,627 1,871,562 439,065 1,957,069 Transmission and distribution 920,870 859,666 61,204 904,992 Personnel services 744,832 579,185 165,647 265,412 Customer accounting and collection 500,000 461,585 38,415 461,585 Commodities and contractual services 951,852 667,352 284,500 541,500 Franchise tax 184,012 190,614 (6,602) 174,365 Capital outlay 2,870,635 - 2,870,635 68,524 Debt service: Principal payments 655,000 655,000 - 170,000 Interest expense 300,000 282,586 17,414 336,448 Payment to refunding escrow agent - - - 2,624,819 Total expenditures 12,095,507 8,411,181 3,684,326 9,432,709 Excess revenues over (under) expenditures (3,305,184)$ 2,590,587 5,895,771$ 3,024,042$ Adjustments to GAAP Basis Depreciation (1,044,725) Capital Outlay - Debt principal 655,000 Change in Net Position, GAAP Basis 2,200,862$ See Independent Auditor's Report 122 Page 219 of 374 CITY OF ENGLEWOOD, COLORADO Sewer Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Disposal services 18,673,350$ 19,055,863$ 382,513$ 17,533,506$ System development fees 180,000 372,766 192,766 332,560 Net investment income 95,000 272,816 177,816 321,312 Late fees 96,613 49,923 (46,690) 124,598 Other - 877 877 666 Total revenues 19,044,963 19,752,245 707,282 18,312,642 Expenditures Joint Venture operations 8,841,561 8,520,478 321,083 8,166,598 Joint Venture capital 5,529,000 3,481,669 2,047,331 3,146,683 Personnel services 1,185,523 1,050,411 135,112 894,990 Customer accounting and collection 1,230,000 1,107,681 122,319 1,107,556 Commodities and contractual services 1,074,236 321,991 752,245 799,348 Franchise tax 486,452 570,015 (83,563) 524,088 Debt service: Principal payments 3,360,428 3,360,428 - 3,258,759 Interest expense 715,635 670,156 45,479 752,695 Total expenditures 22,422,835 19,082,829 3,340,006 18,650,717 Excess revenues over (under) expenditures (3,377,872)$ 669,416 4,047,288$ (338,075)$ Adjustments to GAAP Basis Depreciation (67,410) Debt principal 3,360,428 Change in Net Position, GAAP Basis 3,962,434$ See Independent Auditor's Report 123 Page 220 of 374 CITY OF ENGLEWOOD, COLORADO Golf Course Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance- Variance with Final Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Green fees 1,275,000$ 998,319$ (276,681)$ 1,016,121$ Rentals 416,000 330,455 (85,545) 404,782 Driving range 300,000 407,282 107,282 299,883 Merchandise sales 200,000 160,822 (39,178) 142,887 Concessions 36,000 18,250 (17,750) 36,000 Memberships 15,000 194,404 179,404 119,577 Learning center 22,000 19,250 (2,750) 22,000 Net investment income 5,300 37,418 32,118 40,005 Other 43,500 22,682 (20,818) 53,403 Total revenues 2,312,800 2,188,882 (123,918) 2,134,658 Expenditures Personnel services 879,917 879,488 429 959,744 Commodities and contractual services 864,131 781,735 82,396 731,641 Cost of goods sold 125,000 106,906 18,094 105,932 Capital outlay 205,000 127,336 77,664 44,194 Debt service: Principal payments 95,000 95,000 - 95,000 Interest expense 109,016 116,632 (7,616) 119,833 Total expenditures 2,278,064 2,107,097 170,967 2,056,344 Excess revenues over (under) expenditures 34,736$ 81,785 47,049$ 78,314$ Adjustments to GAAP Basis Depreciation (309,398) Capital Outlay 127,336 Debt principal 95,000 Change in Net Position, GAAP Basis (5,277)$ See Independent Auditor's Report 124 Page 221 of 374 CITY OF ENGLEWOOD, COLORADO Storm Drainage Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Budget - Final Actual Positive 2019 Budget Amounts (Negative)Actual Revenues Storm drainage services 672,069$ 1,224,068$ 551,999$ 871,878$ Net investment income 10,445 26,682 16,237 33,809 Total revenues 682,514 1,250,750 568,236 905,687 Expenditures Storm drainage system 7,257 170,081 (162,824) 35,097 Personnel services 403,334 238,472 164,862 133,479 Commodities and contractual services 342,648 289,373 53,275 238,528 Capital outlay 100,000 - 100,000 520,000 Debt service: Principal payments 105,000 105,000 - 105,000 Interest expense 5,730 5,256 474 7,641 Total expenditures 963,969 808,182 155,787 1,039,745 (281,455)$ 442,568 724,023$ (134,058)$ Adjustments to GAAP Basis Depreciation (106,366) Capital Outlay - Debt principal 105,000 Change in Net Position, GAAP Basis 441,202$ See Independent Auditor's Report Excess revenues over (under) expenditures 125 Page 222 of 374 CITY OF ENGLEWOOD, COLORADO Concrete Utility Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Concrete repair and maintenance fees 850,000$ 867,505$ 17,505$ 865,139$ Late fees 2,600 660 (1,940) 2,115 Net investment income 20,000 25,714 5,714 32,647 Total revenues 872,600 893,879 21,279 899,901 Expenditures Personnel services 227,064 173,703 53,361 255,394 Commodities and contractual services 44,558 203,798 (159,240) 66,321 Capital outlay 725,000 290,223 434,777 326,234 Total expenditures 996,622 667,724 328,898 647,949 (124,022)$ 226,155 350,177$ 251,952$ Adjustments to GAAP Basis Depreciation (418,942) Capital Outlay 290,223 Change in Net Position, GAAP Basis 97,436$ See Independent Auditor's Report Excess revenues over (under) expenditures Budget 126 Page 223 of 374 CITY OF ENGLEWOOD, COLORADO Housing Rehabilitation Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Grant income 110,600$ 126,665$ 16,065$ 99,291$ Loan interest income 21,000 15,216 (5,784) 29,276 Net investment income 10,000 19,583 9,583 25,144 Other 600 2,101 1,501 613 Total revenues 142,200 163,565 21,365 154,324 Expenditures Customer accounting and collection 16,000 - 16,000 11,230 Grants to individuals 160,600 127,249 33,351 88,246 Commodities and contractual services 221,200 60,350 160,850 59,060 Total expenditures 397,800 187,599 210,201 158,536 (255,600)$ (24,034) 231,566$ (4,212)$ Adjustments to GAAP Basis Depreciation - Debt principal - Change in Net Position, GAAP Basis (24,034)$ See Independent Auditor's Report Excess revenues over (under) expenditures 127 Page 224 of 374 CITY OF ENGLEWOOD, COLORADO Combining Statement of Net Position Internal Service Funds December 31, 2020 Capital Servi-Equipment Employee Center Replacement Benefits Assets Current assets: Cash and investments 1,748,342$ 4,230,643$ 605,877$ Interest receivable 6,430 14,685 2,314 Accounts receivable 45,507 - - Inventories 128,758 - - Total current assets 1,929,037 4,245,328 608,191 Capital assets not being depreciated 340,097 - - Capital assets, net of accumulated depreciation 1,561,106 2,629,394 - Total assets 3,830,240 6,874,722 608,191 Liabilities Current liabilities: Accounts payable 58,853 30,826 57,962 Accrued payroll and related liabilities 16,144 - 14,590 Claims payable - - - Total current liabilities 74,997 30,826 72,552 Total liabilities 74,997 30,826 72,552 Net position Invested in capital assets 1,901,203 2,629,394 - Unrestricted 1,854,040 4,214,502 535,639 Total net position 3,755,243$ 6,843,896$ 535,639$ See Independent Auditor's Report 128 Page 225 of 374 Risk Management Total 2,330,884$ 8,915,746$ 8,089 31,518 - 45,507 - 128,758 2,338,973 9,121,529 - 340,097 - 4,190,500 2,338,973 13,652,126 16,574 164,215 1,914 32,648 747,158 747,158 765,646 944,021 765,646 944,021 - 4,530,597 1,573,327 8,177,508 1,573,327$ 12,708,105$ 129 Page 226 of 374 Capital Servi-Equipment Center Replacement Operating revenues Billings to departments 1,096,096$ 829,660$ Other charges for services 147,477 - Total operating revenues 1,243,573 829,660 Operating expenses Cost of goods sold 591,842 - Personnel services 658,043 - Commodities and contractual services 442,427 7,786 Depreciation 85,443 653,020 Insurance expense: Medical - - Life - - Long-term disability - - Employee assistance program - - Unemployment - - General liability - - Workers' compensation - - Claims expense: Dental - - General liability - - Workers' compensation - - Total operating expenses 1,777,755 660,806 Operating income (loss)(534,182) 168,854 Nonoperating revenues (expense) Net investment income 43,279 77,011 Gain on disposition of equipment - 98,829 Other - - Total nonoperating revenues 43,279 175,840 Income (loss) before contributions (490,903) 344,694 Capital contributions - other - 28,188 Change in net position (490,903) 372,882 Total net position - beginning 4,246,146 6,471,014 Total net position - ending 3,755,243$ 6,843,896$ See Independent Auditor's Report CITY OF ENGLEWOOD, COLORADO Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended December 31, 2020 130 Page 227 of 374 Employee Risk Benefits Management Total 5,634,094$ 1,511,236$ 9,071,086$ - - 147,477 5,634,094 1,511,236 9,218,563 - - 591,842 58,891 70,767 787,701 113,606 3,097 566,916 - - 738,463 4,410,082 - 4,410,082 223,663 - 223,663 74,711 - 74,711 25,773 - 25,773 160,576 - 160,576 - 592,361 592,361 - 171,387 171,387 295,875 - 295,875 - 482,210 482,210 - 374,534 374,534 5,363,177 1,694,356 9,496,094 270,917 (183,120) (277,531) 12,855 49,222 182,367 - - 98,829 55,117 1,868 56,985 67,972 51,090 338,181 338,889 (132,030) 60,650 - - 28,188 338,889 (132,030) 88,838 196,750 1,705,357 12,619,267 535,639$ 1,573,327$ 12,708,105$ 131 Page 228 of 374 Capital Servi-Equipment Center Replacement Cash flows from operating activities Cash received from interfund charges 1,096,735$ 829,660$ Cash received from customers 134,268 - Cash payments to suppliers for goods and services (979,037) (10,046) Cash paid to employees for services (701,602) - Other cash receipts - - Net cash provided (used) by operating activities (449,636) 819,614 Cash flows from capital and related financing activities Acquisition and construction of capital assets (15,725) (428,386) Proceeds from sale of assets - 128,511 Net cash (used) by capital and related financing activities (15,725) (299,875) Cash flows from investing activities Net investment income 43,707 74,636 Net cash provided by investing activities 43,707 74,636 Net increase (decrease) in cash and cash equivalents (421,654) 594,375 Cash and cash equivalents - beginning 2,169,996 3,636,268 Cash and cash equivalents - ending 1,748,342$ 4,230,643$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)(534,182)$ 168,854$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 85,443 653,020 Miscellaneous nonoperating income - - Effect of changes in operating assets and liabilities: Accounts receivable (12,570) - Inventories 22,929 - Accounts payable 32,304 (2,260) Accrued payroll and related liabilities (43,560) - Claims and judgements payable -- Total adjustments 84,546 650,760 Net cash provided (used) by operating activities (449,636)$ 819,614$ Noncash investing, capital and financing activities Contributions of capital assets from other funds -$ 28,188$ See Independent Auditor's Report CITY OF ENGLEWOOD, COLORADO Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2020 132 Page 229 of 374 Employee Risk Benefits Management Total 5,634,094$ 1,511,236$ 9,071,725$ - - 134,268 (5,245,234) (1,298,576) (7,532,893) (106,567) (92,198) (900,367) 55,117 1,868 56,985 337,410 122,330 829,718 - - (444,111) -- 128,511 - - (315,600) 11,083 48,956 178,382 11,083 48,956 178,382 348,493 171,286 692,500 257,384 2,159,598 8,223,246 605,877$ 2,330,884$ 8,915,746$ 270,917$ (183,120)$ (277,531)$ - - 738,463 55,117 1,868 56,985 - - (12,570) - - 22,929 4,337 3,495 37,876 7,039 (21,431) (57,952) - 321,518 321,518 66,493 305,450 1,107,249 337,410$ 122,330$ 829,718$ -$ -$ 28,188$ 133 Page 230 of 374 CITY OF ENGLEWOOD, COLORADO ServiCenter Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Billings: Garage: Vehicle maintenance 1,079,765$ 450,239$ (629,526)$ 1,072,550$ Direct charges 671,508 343,285 (328,223) 482,027 Intergovernmental 175,000 146,838 (28,162) 176,281 Subtotal garage revenues 1,926,273 940,362 (985,911) 1,730,858 Administration: Building rentals 288,020 288,021 1 480,831 Stores charges 25,000 14,551 (10,449) 20,406 Subtotal administrative revenues 313,020 302,572 (10,448) 501,237 Total billings to departments 2,239,293 1,242,934 (996,359) 2,232,095 Net investment income 10,220 43,279 33,059 44,594 Other 4,000 639 (3,361) 7,887 Total revenues 2,253,513 1,286,852 (966,661) 2,284,576 Expenditures Garage: Personnel services 781,386 703,302 78,084 585,705 Cost of goods sold 767,525 580,649 186,876 668,448 Commodities and contractual services 191,086 209,761 (18,675) 123,461 Subtotal garage expenditures 1,739,997 1,493,712 246,285 1,377,614 Administration: Personal services 135,275 (45,259) 180,534 8,166 Commodities and contractual services 403,932 302,385 101,547 132,634 Cost of goods sold - 11,193 (11,193) 16,001 Capital outlay - 15,725 (15,725) 1,476 Subtotal administrative expenditures 539,207 284,044 255,163 158,277 Total expenditures 2,279,204 1,777,756 501,448 1,535,891 Excess revenues over (under) expenditures (25,691) (490,904) (465,213) 748,685 Funds available - beginning 927,518 2,297,854 2,297,854 1,549,169 Funds available - ending 901,827$ 1,806,950$ 1,832,641$ 2,297,854$ See Independent Auditor's Report 134 Page 231 of 374 CITY OF ENGLEWOOD, COLORADO Capital Equipment Replacement Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Billings to departments 829,662$ 829,661$ (1)$ 891,749$ Proceeds from sale of equipment - 128,511 128,511 56,518 Net investment income 15,300 77,011 61,711 91,539 Other - 28,188 28,188 34,952 Total revenues 844,962 1,063,371 218,409 1,074,758 Expenditures Capital outlay 2,200,987 486,256 1,714,731 671,235 Commodities and contractual services 22,000 7,786 14,214 14,115 Total expenditures 2,222,987 494,042 1,728,945 192,265 Excess revenues over (under) expenditures (1,378,025) 569,329 1,947,354 882,493 1,921,626 4,108,576 1,208,692 3,226,083 543,601$ 4,677,905$ 3,156,046$ 4,108,576$ See Independent Auditor's Report Funds available - beginning Funds available - ending 135 Page 232 of 374 CITY OF ENGLEWOOD, COLORADO Employee Benefits Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Amounts Amounts (Negative)Actual Revenues Billings to departments: Medical 5,867,003$ 4,425,668$ (1,441,335)$ 4,583,301$ Dental 427,745 419,182 (8,563) 247,926 Life 75,060 170,272 95,212 172,987 Long-term disability 74,100 83,536 9,436 84,754 Administrative fees 544,700 535,436 (9,264) 568,422 Other 54,600 55,117 517 54,623 Net investment income - 12,855 12,855 4,315 Total revenues 7,043,208 5,702,066 (1,341,142) 5,716,328 Expenditures Insurance expense: Medical 5,811,503 4,410,082 1,401,421 4,754,085 Life 75,060 223,663 (148,603) 230,143 Long-term disability 74,100 74,711 (611) 80,444 Employee assistance program 57,600 25,773 31,827 8,626 Unemployment 64,000 160,576 (96,576) 27,606 Claims expense: Dental 423,335 295,875 127,460 387,387 Personal services 119,286 58,891 60,395 115,778 Commodities and contractual services 42,903 113,606 (70,703) 17,841 Total expenditures 6,667,787 5,363,177 1,304,610 5,621,910 Excess revenues over (under) expenditures 375,421 338,889 (36,532) 94,418 485,483 196,750 (1,077,131) 102,332 860,904$ 535,639$ (1,113,663)$ 196,750$ See Independent Auditor's Report Funds available - beginning Funds available - ending 136 Page 233 of 374 CITY OF ENGLEWOOD, COLORADO Risk Management Fund Schedule of Revenues, Expenditures and Changes in Funds Available - Budget and Actual (Budgetary Basis) For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Variance with Final Final Budget - Budget Actual Positive 2019 Original Amounts Amounts (Negative)Actual Revenues Billings to departments: Property and liability 794,965$ 794,965$ 809,542$ 14,577$ 804,068$ Workers' compensation 696,187 696,187 701,694 5,507 566,123 Insurance Reimbursement 2,000 2,000 - (2,000) 86,269 Other 500 500 1,868 1,368 8,553 Net investment income 7,200 7,200 49,222 42,022 49,305 Total revenues 1,500,852 1,500,852 1,562,326 61,474 1,514,318 Expenditures Insurance: General liability 535,630 535,630 592,361 (56,731) 515,789 Workers' compensation 197,956 197,956 171,387 26,569 182,569 Claims: General liability 225,403 475,403 482,210 (6,807) 123,304 Workers' compensation 348,730 348,730 374,534 (25,804) 129,183 Personal services 152,287 152,287 70,767 81,520 137,058 Commodities and contractual services 9,698 9,698 3,097 6,601 15,298 Total expenditures 1,469,704 1,719,704 1,694,356 25,348 1,103,201 Excess revenues over (under) expenditures 31,148 (218,852) (132,030) 86,822 411,117 1,333,604 1,333,604 1,705,357 831,468 1,294,240 1,364,752$ 1,114,752$ 1,573,327$ 918,290$ 1,705,357$ Funds available - beginning Funds available - ending 137 Page 234 of 374 Englewood Environmental Foundation This fund is used to account for the activities of the Englewood Environmental Foundation, Inc. Englewood McLellan Reservoir Foundation This fund is used to account for the activities of the Englewood McLellan Reservoir Foundation, Inc. Englewood Urban Renewal Authority This fund is used to account for the activities of the Englewood Urban Renewal Authority. Component Units 138 Page 235 of 374 CITY OF ENGLEWOOD, COLORADO Englewood Environmental Foundation Statements of Net Position December 31, 2020 With Comparative Totals for December 31, 2019 Assets 2020 2019 Current assets Cash and investments 1,043,522$ 689,700$ Interest receivable 4,515 3,125 Accounts receivable 10,759 83,458 Prepaid expense 82,724 85,122 Lease receivable - current 1,363,000 1,329,000 Total current assets 2,504,520 2,190,405 Noncurrent assets Lease receivable 2,794,832 4,144,232 Capital assets Land and improvements 8,496,257 8,496,257 Site development 10,772,213 10,772,213 Streets 4,841,536 4,841,536 Parking structure 3,956,348 3,956,348 Rail bridge 2,017,170 2,017,170 Other improvements 159,229 159,229 Operating machinery and equipment 26,032 26,032 Total capital assets 30,268,785 30,268,785 Less accumulated depreciation (19,796,918) (19,144,177) Total capital assets, net 10,471,867 11,124,608 Total assets 15,771,219 17,459,245 Deferred Outflows of Resources Deferred charge on refunding 17,168 30,768 Liabilities Current liabilities Accounts payable 380,957 237,317 Interest payable 7,376 9,724 Certificates of participation - current 1,363,000 1,329,000 Total current liabilities 1,751,333 1,576,041 Noncurrent liabilities Certificates of participation 2,812,000 4,175,000 Total liabilities 4,563,333 5,751,041 Net position Invested in capital assets 6,296,867 5,620,608 Unrestricted 4,928,187 6,118,364 Total net position 11,225,054$ 11,738,972$ See Independent Auditor's Report 139 Page 236 of 374 CITY OF ENGLEWOOD, COLORADO Englewood Environmental Foundation Statements of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 2020 2019 Operating revenues Common area maintenance 1,192,221$ 1,161,998$ Operating expenses Common area maintenance 955,954 1,161,998 Professional services 43,798 76,293 Legal 101,113 73,117 Insurance 5,619 12,317 Depreciation 652,741 652,741 Total operating expenses 1,759,225 1,976,466 Operating loss (567,004) (814,468) Nonoperating revenues (expenses) Net investment income 17,591 15,456 Lease interest income 100,250 128,248 Interest expense (100,250) (128,248) Other 35,495 33,833 Total nonoperating revenues (expenses)53,086 49,289 Change in net position (513,918) (765,179) Net position - beginning 11,738,972 12,504,151 Net position - ending 11,225,054$ 11,738,972$ See Independent Auditor's Report 140 Page 237 of 374 CITY OF ENGLEWOOD, COLORADO Englewood Environmental Foundation Statements of Cash Flows For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 Cash flows from operating activities 2020 2019 Cash received from customers 1,264,920$ 1,161,998$ Cash payments to suppliers for goods and services (960,446) (1,178,838) Other cash received 35,495 33,833 Net cash (used) by operating activities 339,969 16,993 Cash flows from capital and related financing activities Lease principal received 1,363,000 1,329,000 Lease interest received 100,250 107,850 Principal paid on long-term debt (1,363,000) (1,329,000) Interest paid on long-term debt (100,250) (107,850) Net cash provided by capital and related financing activities - - Cash flows from investing activities Net investment income 13,853 16,699 Net increase (decrease) in cash and cash equivalents 353,822 33,692 Cash and cash equivalents - beginning 689,700 656,008 Cash and cash equivalents - ending 1,043,522$ 689,700$ Reconciliation of operating (loss) to net cash (used) by operating activities: Operating loss (567,004)$ (814,468)$ Adjustments to reconcile operating loss to net cash (used) by operating activities: Depreciation 652,741 652,741 Miscellaneous nonoperating income 35,495 33,833 Effect of changes in operating assets and liabilities: Accounts receivable 72,699 (41,378) Prepaid expense 2,398 2,192 Accounts payable 143,640 184,073 Total adjustments 906,973 831,461 Net cash (used) by operating activities 339,969$ 16,993$ See Independent Auditor's Report 141 Page 238 of 374 CITY OF ENGLEWOOD, COLORADO Englewood McLellan Reservoir Foundation, Inc. Statements of Net Position December 31, 2020 With Comparative Totals for December 31, 2019 Assets 2020 2019 Current assets Cash and investments 122,045$ 257,123$ Interest receivable 1,294 1,814 Prepaid insurance 5,608 10,508 Total current assets 128,947 269,445 Capital assets Land and improvements 5,706,166 5,706,166 Total assets 5,835,113 5,975,611 Liabilities Current liabilities Retainage payable 47,391 38,508 Unearned revenue 39,147 26,359 Total current liabilities 86,538 64,867 Noncurrent liabilities Lease Deposit - 10,000 Total liabilities 86,538 74,867 Net position Invested in capital assets 5,706,166 5,706,166 Unrestricted 42,409 194,578 Total net position 5,748,575$ 5,900,744$ See Independent Auditor's Report 142 Page 239 of 374 CITY OF ENGLEWOOD, COLORADO Englewood McLellan Reservoir Foundation, Inc. Statements of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 2020 2019 Operating revenues Charges for services 1,698,745$ 1,627,609$ Operating expenses Professional services 193,329 880,040 Insurance 11,836 12,640 Legal 2,479 8,260 General administrative and office 15 157 Total operating expenses 207,659 901,097 Operating Income (loss)1,491,086 726,512 Nonoperating revenues (expenses) Net investment income 5,490 13,033 Other 50,000 395,000 Contributions to primary government (1,698,745) (1,356,827) Total nonoperating revenues (expenses)(1,643,255) (948,794) Change in net position (152,169) (222,282) Net position - beginning 5,900,744 6,123,026 Net position - ending 5,748,575$ 5,900,744$ See Independent Auditor's Report 143 Page 240 of 374 CITY OF ENGLEWOOD, COLORADO Englewood McLellan Reservoir Foundation, Inc. Statements of Cash Flows For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 2020 2019 Cash flows from operating activities Cash received from customers 1,756,433$ 2,022,609$ Cash payments to suppliers for goods and services (198,776) (862,559) Net cash provided (used) by operating activities 1,557,657 1,160,050 Cash flows from noncapital financing activities Contributions from (to) primary government (1,698,746) (1,356,827) Cash flows from investing activities Net investment income 6,011 13,053 Net increase (decrease) in cash and cash equivalents (135,078) (183,724) Cash and cash equivalents - January 1,257,123 440,847 Cash and cash equivalents - December 31,122,045$ 257,123$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)1,491,086$ 726,512$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Miscellaneous income 50,000 395,000 Prepaid insurance 4,900 30 Unearned revenue 2,788 - Retainage payable 8,883 38,508 Total adjustments 66,571 433,538 Net cash provided (used) by operating activities 1,557,657$ 1,160,050$ See Independent Auditor's Report 144 Page 241 of 374 CITY OF ENGLEWOOD, COLORADO Englewood Urban Renewal Authority Balance Sheet December 31, 2020 With Comparative Totals for December 31, 2019 2020 2019 Assets Cash and investments 476,489$ 352,364$ Interest receivable 1,547 1,144 Note receivable 1,117,093 1,188,277 Land held for resale 71,626 71,626 Total assets 1,666,755 1,613,411 Liabilities Total liabilities - - Fund Balance Nonspendable 1,117,093 1,188,277 Assigned 549,662 425,134 Total fund balance 1,666,755$ 1,613,411$ See Independent Auditor's Report 145 Page 242 of 374 CITY OF ENGLEWOOD, COLORADO Englewood Urban Renewal Authority Statements of Revenues, Expenditures and Changes in Fund Balance For the Year Ended December 31, 2020 With Comparative Totals for the Year Ended December 31, 2019 2020 2019 Revenues Interest income 54,344$ 53,335$ Total revenue 54,344 53,335 Expenditures Professional services 1,000 1,141 Excess revenues over (under) expenditures 53,344 52,194 Net Change in fund balance 53,344 52,194 Fund balance - beginning 1,613,411 1,561,217 Fund balance - ending 1,666,755$ 1,613,411$ See Independent Auditor's Report 146 Page 243 of 374 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36 City or County: December 2020 YEAR ENDING : December 2020 This Information From The Records Of: City of Englewood Prepared By: Christine Hart Phone: 303-783-6885 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)461,331 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:2,061,599 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 884,659 2. General fund appropriations 3,111,657 b. Snow and ice removal 148,490 3. Other local imposts (from page 2)192,311 c. Other 424,014 4. Miscellaneous local receipts (from page 2)2,314,625 d. Total (a. through c.)1,457,163 5. Transfers from toll facilities 4. General administration & miscellaneous 373,789 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 2,621,411 a. Bonds - Original Issues 6. Total (1 through 5)6,975,293 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 0 7. Total (1 through 6)5,618,593 b. Redemption 0 B. Private Contributions c. Total (a. + b.)0 C. Receipts from State government 2. Notes: (from page 2)1,356,700 a. Interest 0 D. Receipts from Federal Government b. Redemption 0 (from page 2)0 c. Total (a. + b.)0 E. Total receipts (A.7 + B + C + D)6,975,293 3. Total (1.c + 2.c)0 C. Payments to State for highways 0 D. Payments to toll facilities 0 E. Total disbursements (A.6 + B.3 + C + D)6,975,293 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)0 1. Bonds (Refunding Portion) B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 6,975,293 6,975,293 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM AND STREET PURPOSES 148 Page 244 of 374 STATE: Colorado YEAR ENDING (mm/yy): December 2020 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments - a. Interest on investments - b. Other local imposts: b. Traffic Fines & Penalities 135,147 1. Sales Taxes - c. Parking Garage Fees - 2. Infrastructure & Impact Fees - d. Parking Meter Fees - 3. Liens - e. Sale of Surplus Property - 4. Licenses - f. Charges for Services - 5. Specific Ownership &/or Other 192,311 g. Other Misc. Receipts 1,151,280 6. Total (1. through 5.)192,311 h. Other 2,179,478 c. Total (a. + b.)192,311 i. Total (a. through h.)(Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 1,233,646 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies:997,659 3. Other State funds: a. Forest Service - a. State bond proceeds b. FEMA - b. Project Match c. HUD - c. Motor Vehicle Registrations 123,054 d. Federal Transit Admin - d. Other (Specify) - e. U.S. Corps of Engineers - e. Other (Specify)- f. Other Federal - f. Total (a. through e.)123,054 g. Total (a. through f.)- 4. Total (1. + 2. + 3.f)1,356,700 3. Total (1. + 2.g)2,463,837 (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM 1,369,341 (a)(b)(c) A.1. Capital outlay: a. Right-Of-Way Costs - b. Engineering Costs - c. Construction: (1). New Facilities - (2). Capacity Improvements - (3). System Preservation 461,331 461,331 (4). System Enhancement & Operation - - (5). Total Construction (1) + (2) + (3) + (4)- 461,331 461,331 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)- 461,331 461,331 (Carry forward to page 1) Notes and Comments: III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM 149 Page 245 of 374 Statistical Section This part of the 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 Page 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.151-155 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources: property tax and sales tax.156-161 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.162-171 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.172-173 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 activities it performs.174-176 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 150 Page 246 of 374 Schedule 1 City of Englewood, Colorado Net Position by Component Last Ten Years (Accrual basis of accounting) 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Governmental activities Net investment in capital assets 49,576,249$ 46,051,488$ 52,705,091$ 51,575,905$ 49,864,353$ 42,609,765$ 48,363,578$ 46,622,318$ 46,838,945$ 47,246,217$ Restricted 10,388,774 11,219,493 6,635,724 5,902,025 4,358,086 7,589,585 4,791,173 5,176,860 4,532,092 4,412,743 Unrestricted 30,544,978 34,974,362 25,842,538 14,303,852 11,907,495 15,586,102 14,601,789 13,066,242 11,001,812 11,116,981 Total governmental activities net position 90,510,001$ 92,245,343$ 85,183,353$ 71,781,782$ 66,129,934$ 65,785,452$ 67,756,540$ 64,865,420$ 62,372,849$ 62,775,941$ Business-type activities Net investment in capital assets 49,345,623$ 49,998,869$ 50,696,090$ 50,432,520$ 49,597,851$ 49,621,968$ 48,931,545$ 47,756,893$ 43,869,721$ 50,160,730$ Restricted 318,273 318,273 318,273 381,680 37,568,534 35,697,215 36,607,283 36,804,325 40,459,217 35,191,685 Unrestricted 58,895,231 51,553,648 46,008,819 43,815,780 4,156,600 2,896,921 3,923,100 4,145,578 3,397,610 3,592,620 Total business-type activities net position 108,559,127$ 101,870,790$ 97,023,182$ 94,629,980$ 91,322,985$ 88,216,104$ 89,461,928$ 88,706,796$ 87,726,548$ 88,945,035$ Primary government Net investment in capital assets 98,921,872$ 96,050,357$ 103,401,181$ 102,008,425$ 99,462,204$ 92,231,733$ 97,295,123$ 94,379,211$ 90,708,666$ 97,406,947$ Restricted 10,707,047 11,537,766 6,953,997 6,283,705 41,926,620 43,286,800 41,398,456 41,981,185 44,991,309 39,604,428 Unrestricted 89,440,209 86,528,010 71,851,357 58,119,632 16,064,095 18,483,023 18,524,889 17,211,820 14,399,422 14,709,601 Total primary government net position 199,069,128$ 194,116,133$ 182,206,535$ 166,411,762$ 157,452,919$ 154,001,556$ 157,218,468$ 153,572,216$ 150,099,397$ 151,720,976$ 151Page 247 of 374 Schedule 2 City of Englewood, Colorado Changes in Net Position Last Ten Years (Accrual basis of accounting) Expenses 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Governmental activities General government 16,672,576$ 17,712,413$ 16,521,301$ 17,347,576$ 17,121,811$ 8,951,181$ 8,967,186$ 9,104,172$ 9,460,341$ 9,645,356$ Safety services 24,199,549 14,271,673 13,579,629 14,176,150 14,110,430 21,203,844 21,147,318 19,529,393 19,597,424 17,948,951 Public works 13,313,459 10,210,624 9,334,763 9,587,168 8,978,245 8,457,980 8,236,421 7,893,742 8,130,782 7,879,992 Culture and recreation 10,558,632 8,406,428 8,050,338 9,442,157 9,761,863 8,130,022 8,153,680 7,530,317 8,033,063 7,662,387 Interest and fiscal charges 1,362,696 1,475,670 1,581,265 1,182,611 676,058 767,480 851,294 918,447 999,060 1,069,971 Unallocated depreciation - - - - 441,526 437,384 436,974 436,088 436,088 436,088 Total governmental activities expenses 66,106,912 52,076,808 49,067,296 51,735,662 51,089,933 47,947,891 47,792,873 45,412,159 46,656,758 44,642,745 Business-type activities Water 8,819,692 7,557,126 8,194,041 8,456,592 7,988,700 8,348,510 8,237,535 7,478,002 8,094,782 7,962,145 Sewer 15,841,630 15,265,778 16,158,306 15,597,319 15,090,271 15,333,260 16,203,741 16,137,479 16,283,665 15,579,812 Golf 2,107,097 2,225,440 2,083,281 1,975,825 1,972,425 2,178,213 2,154,219 2,176,212 2,182,690 2,100,887 Storm 810,291 508,484 323,719 209,270 204,244 188,247 206,179 271,351 294,241 286,702 Concrete 796,443 746,525 692,849 556,864 591,901 676,394 665,613 744,672 739,925 742,759 Housing Rehabilitation 187,599 158,535 321,576 388,281 453,106 1,094,253 358,185 290,943 333,467 328,067 Total business-type activities expenses 28,562,752 26,461,888 27,773,772 27,184,151 26,300,647 27,818,877 27,825,472 27,098,659 27,928,770 27,000,372 Total primary government expenses 94,669,664$ 78,538,696$ 76,841,068$ 78,919,813$ 77,390,580$ 75,766,768$ 75,618,345$ 72,510,818$ 74,585,528$ 71,643,117$ Program revenues Governmental activities Permits, fees, fines and charges for services General government 9,498,901$ 6,944,165$ 3,820,040$ 5,209,179$ 3,537,495$ 3,605,238$ 3,946,367$ 4,109,380$ 4,080,163$ 4,030,425$ Safety services 207,993 16,826 306,411 997,494 1,138,302 1,837,461 2,052,449 2,016,060 1,735,851 1,456,260 Public works 270,977 1,636,582 1,703,373 966,882 770,590 582,004 550,292 560,422 363,733 441,119 Culture and recreation 1,240,699 2,421,142 2,835,148 2,341,131 2,670,119 2,637,012 2,164,780 2,531,456 2,673,671 2,704,610 Operating grants and contributions 2,066,639 1,748,662 2,603,627 3,636,871 3,745,521 2,816,423 3,797,027 2,829,006 3,386,614 3,249,568 Capital grants and contributions 1,432,176 - - - 188,356 1,078,104 54,415 65,030 69,815 - Total governmental activities program revenues 14,717,385 12,767,377 11,268,599 13,151,557 12,050,383 12,556,242 12,565,330 12,111,354 12,309,847 11,881,982 Business-type activities Charges for services Water 10,113,073 9,252,743 9,368,150 9,177,916 8,947,795 8,788,308 9,159,224 8,458,786 8,770,989 8,790,259 Sewer 19,106,663 17,658,770 16,571,232 16,540,812 16,257,218 16,073,727 15,470,361 14,801,851 13,948,641 12,981,737 Golf 2,151,464 2,094,653 2,195,610 2,058,974 2,080,424 2,077,038 2,005,739 1,950,665 2,101,572 1,825,599 Storm 1,224,068 871,878 347,979 395,893 337,998 338,375 327,860 317,935 316,244 319,211 Concrete 868,165 867,254 866,828 867,944 881,480 875,633 875,364 859,754 695,466 693,921 Housing Rehabilitation 17,317 29,888 51,039 143,648 278,122 793,437 230,569 254,886 256,563 204,036 Operating grants and contributions 192,911 99,291 115,000 114,750 127,387 127,500 127,500 360,112 590,338 706,241 Capital grants and contributions 848,491 541,610 710,060 1,005,486 497,104 724,930 446,987 525,143 426,831 254,699 Total business-type activities program revenues 34,522,152 31,416,087 30,225,898 30,305,423 29,407,528 29,798,948 28,643,604 27,529,132 27,106,644 25,775,703 Total primary government program revenues 49,239,537$ 44,183,464$ 41,494,497$ 43,456,980$ 41,457,911$ 42,355,190$ 41,208,934$ 39,640,486$ 39,416,491$ 37,657,685$ Net (expense) Governmental activities (51,389,527)$ (39,309,431)$ (37,798,697)$ (38,584,105)$ (39,039,550)$ (35,391,649)$ (35,227,543)$ (33,300,805)$ (34,346,911)$ (32,760,763)$ Business-type activities 5,959,400 4,954,199 2,452,126 3,121,272 3,106,881 1,980,071 818,132 430,473 (822,126) (1,224,669) Total primary government net expense (45,430,127)$ (34,355,232)$ (35,346,571)$ (35,462,833)$ (35,932,669)$ (33,411,578)$ (34,409,411)$ (32,870,332)$ (35,169,037)$ (33,985,432)$ (Continued) 152Page 248 of 374 Schedule 2 City of Englewood, Colorado Changes in Net Position Last Ten Years (Accrual basis of accounting) 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General Revenues and Other Changes in Net Position Governmental activities Property taxes 7,923,893$ 7,900,158$ 7,879,516$ 7,249,816$ 4,788,202$ 4,337,758$ 4,301,186$ 4,125,612$ 3,970,772$ 4,327,526$ Sales and use taxes 35,957,272 35,626,054 35,285,546 31,862,179 29,414,880 30,969,561 28,417,474 26,702,054 24,471,494 23,372,970 Franchise and other taxes 3,621,352 3,496,989 3,501,939 3,756,737 3,497,993 3,520,391 3,408,579 3,308,437 3,130,901 2,831,975 Unrestricted investment earnings 740,608 1,491,939 1,025,487 347,915 120,564 77,005 133,051 (33,333) 163,573 191,431 Unrestricted grants and contributions 248,425 - - 50,567 156,593 30,201 439,867 16,223 40,809 30,883 Miscellaneous 1,162,635 947,260 3,007,780 968,739 1,405,800 1,041,323 1,355,506 2,224,158 2,456,919 2,029,984 Transfers, net - - 500,000 - - - 63,000 (549,775) 131,805 42,622 Total governmental activities 49,654,184 49,462,400 51,200,268 44,235,953 39,384,032 39,976,239 38,118,663 35,793,376 34,366,273 32,827,391 Business-type activities Unrestricted investment earnings 728,937 840,041 441,076 185,723 - - - - - - Transfers, net - - (500,000) - - - (63,000) 549,775 (131,805) (42,622) Total business-type activities 728,935 840,041 (58,924) 185,723 - - (63,000) 549,775 (131,805) (42,622) Total primary government 50,383,119$ 50,302,441$ 51,141,344$ 44,421,676$ 39,384,032$ 39,976,239$ 38,055,663$ 36,343,151$ 34,234,468$ 32,784,769$ Change in net position Governmental activities (1,735,343)$ 10,152,969$ 13,401,571$ 5,651,848$ 344,482$ 4,584,590$ 2,891,120$ 2,492,571$ 19,362$ 66,628$ Business type-activities 6,688,335 5,794,240 2,393,202 3,306,995 3,106,881 1,980,071 755,132 980,248 (953,931) (1,267,291) Total primary government 4,952,992$ 15,947,209$ 15,794,773$ 8,958,843$ 3,451,363$ 6,564,661$ 3,646,252$ 3,472,819$ (934,569)$ (1,200,663)$ 153Page 249 of 374 Schedule 3 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General Fund Restricted for: Tabor emergencies 1,720,000$ 1,730,000$ 1,740,000$ 1,580,000$ 1,490,000$ 1,510,000$ 1,400,000$ 1,340,000$ 1,200,000$ 1,150,000$ Committed to: Law enforcement - - - - - - - 78,753 298,512 298,512 Long term asset reserve 4,994,869 4,994,869 4,994,869 3,384,897 1,863,099 2,663,099 2,663,099 2,619,375 2,619,375 2,406,649 Assigned: Subsequent year budgeted deficit 4,855,211 - 3,099,739 372,834 - 1,972,220 2,646,685 1,207,787 920,353 523,053 Unassigned 13,365,855 15,405,986 10,583,578 8,792,794 7,496,950 4,583,927 5,501,466 5,667,918 4,032,570 4,439,471 Total general fund 24,935,935$ 22,130,855$ 20,418,186$ 14,130,525$ 10,850,049$ 10,729,246$ 12,211,250$ 10,913,833$ 9,070,810$ 8,817,685$ All Other Governmental Funds Restricted for: Parks and recreation 4,474,436$ 4,483,047$ 3,794,652$ 3,080,384$ 2,792,891$ 3,691,949$ 3,288,077$ 3,661,118$ 3,018,062$ 2,831,175$ Law enforcement 3,535,594 3,861,577 11,424,388 30,680,542 11,492 80,825 62,025 150,329 280,956 301,459 Debt service 658,744 1,144,869 1,098,625 1,052,976 63,703 70,248 61,105 46,839 55,625 154,267 Committed to: Capital projects 12,369,307 12,834,387 10,639,051 8,398,419 7,632,396 5,503,806 3,317,936 2,698,207 2,186,357 1,761,434 Parks and recreation 485,471 506,537 484,059 456,029 456,358 457,750 457,594 456,411 454,647 451,714 Housing - - - - - - - - 448,903 408,432 Assigned to: Parks and recreation 599,963 528,886 481,880 473,694 459,190 330,123 183,774 208,943 138,724 45,705 Law enforcement 33,217 37,094 35,724 42,015 43,079 21,336 28,156 26,713 19,231 28,819 Fire services - - - - - - 10,723 9,965 6,577 3,861 Other purposes 95,407 93,438 90,966 136,265 135,430 136,670 62,181 142,167 784 778 Total all other governmental funds 22,252,139$ 23,489,835$ 28,049,345$ 44,320,324$ 11,594,539$ 10,292,707$ 7,471,571$ 7,400,692$ 6,609,866$ 5,987,644$ Note: GASB Statement 54 was adopted in 2011. All years presented are being reported in accordance with that statement. City of Englewood, Colorado Fund Balances, Governmental Funds Last Ten Years (Modified accrual basis of accounting) 154Page 250 of 374 Schedule 4 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Revenues Taxes (see Schedule 5)47,502,517$ 47,023,201$ 46,667,001$ 42,868,732$ 37,701,075$ 38,827,710$ 36,127,239$ 34,136,103$ 31,573,167$ 30,532,471$ 29,495,567$ Licenses and permits 1,649,101 1,914,067 1,755,377 1,798,989 1,559,986 1,612,118 1,576,298 1,446,578 983,359 778,536 695,563 Intergovernmental revenue 6,741,160 3,388,197 3,810,411 3,800,438 4,057,121 3,924,728 3,926,947 2,909,535 3,491,447 3,277,833 4,375,328 Charges for services 3,809,760 5,194,894 5,434,062 5,610,616 5,576,226 5,889,612 6,034,354 6,306,039 6,363,331 6,410,092 6,353,327 Fines and forfeitures 882,982 729,224 856,406 648,366 742,282 1,047,268 1,350,165 1,317,707 1,381,453 1,284,759 1,437,957 Net investment income 1,005,404 1,302,186 931,974 314,369 97,033 65,852 112,144 (24,453) 133,512 152,697 152,240 Contributions (to) from component unit 1,698,745 1,356,827 1,609,971 1,521,799 350,193 873,347 684,683 573,526 551,295 425,159 105,125 Other 625,040 857,080 634,840 405,871 733,909 538,443 325,533 1,560,740 1,469,757 1,523,234 632,696 Total revenues 63,914,709 61,765,676 61,700,042 56,969,180 50,817,825 52,779,078 50,137,363 48,225,775 45,947,321 44,384,781 43,247,803 Expenditures Current: General government 15,132,743 17,898,554 17,017,241 16,639,102 15,850,837 8,894,226 8,574,957 8,690,056 8,664,555 9,256,214 9,387,348 Public safety 21,950,089 14,795,528 14,210,713 13,983,711 13,401,402 22,159,568 21,212,863 19,413,044 19,018,153 18,142,085 17,824,861 Public works 10,814,502 8,949,961 8,001,603 7,720,204 7,269,032 6,960,961 6,856,658 6,523,903 6,619,083 6,550,114 6,374,708 Culture and recreation 7,943,361 7,933,462 7,530,200 7,681,459 7,690,361 7,668,688 7,108,436 6,886,274 7,278,678 7,122,606 7,562,631 Capital outlay 1,646,995 10,179,985 20,474,323 3,722,284 2,225,911 2,374,881 2,467,138 727,432 889,458 2,345,049 1,278,288 Debt service: Principal 3,249,000 3,149,000 3,142,513 2,818,484 2,247,644 1,925,000 2,087,689 2,022,742 2,005,963 1,962,271 1,907,772 Interest and other fiscal charges 1,610,635 1,706,027 1,806,767 1,224,039 710,003 864,173 874,326 928,701 995,888 1,064,105 1,041,109 Lease issue costs - - - - - - - - - - 250,128 Total expenditures 62,347,325 64,612,517 72,183,360 53,789,283 49,395,190 50,847,497 49,182,067 45,192,152 45,471,778 46,442,444 45,626,845 Excess revenues over (under) expenditures 1,567,384 (2,846,841) (10,483,318) 3,179,897 1,422,635 1,931,581 955,296 3,033,623 475,543 (2,057,663) (2,379,042) Other financing sources (uses) Proceeds from borrowing - - - 32,826,364 - - - - - - 12,506,373 Transfers in 827,014 3,223,599 2,787,324 1,887,515 3,578,155 2,917,292 2,159,544 1,947,575 3,155,993 2,547,813 2,962,606 Transfers out (827,014) (3,223,599) (2,287,324) (1,887,515) (3,578,155) (2,921,292) (1,746,544) (2,347,349) (2,756,189) (1,689,656) (1,716,128) Total other financing sources (uses)- - 500,000 32,826,364 - (4,000) 413,000 (399,774) 399,804 858,157 3,686,502 Net change in fund balances 1,567,384 (2,846,841) (9,983,318) 36,006,261 1,422,635 1,927,581 1,368,296 2,633,849 875,347 (1,199,506) 1,307,460 Fund balances - beginning 45,620,690 48,467,531 58,450,849 22,444,588 21,021,953 19,094,372 18,314,525 15,680,676 14,805,329 16,004,835 14,697,375 Fund balances - ending 47,188,074$ 45,620,690$ 48,467,531$ 58,450,849$ 22,444,588$ 21,021,953$ 19,682,821$ 18,314,525$ 15,680,676$ 14,805,329$ 16,004,835$ Debt service as a percentage of noncapital expenditures 8.0%8.9%9.6%8.1%6.3%5.8%6.3%6.6%6.7%6.9%6.6% City of Englewood, Colorado Changes in Fund Balances, Governmental Funds Last Ten Years (Modified accrual basis of accounting) 155Page 251 of 374 Schedule 5 City of Englewood, Colorado Tax Revenues by Source, Governmental Funds Last Ten Years (Accrual basis of accounting) Fiscal Specific Sales and Vehicle Building Year Property Ownership Regular Use Use Use Cigarette*Franchise Other Total 2011 4,081,464$ 246,062$ 21,737,110$ 1,030,776$ 605,084$ 190,762$ 2,631,393$ 9,820$ 30,532,471$ 2012 3,727,479 243,293 22,363,618 1,294,050 813,826 189,618 2,930,888 10,395 31,573,167 2013 3,858,731 266,881 23,433,775 1,408,029 1,860,250 195,088 3,101,310 12,039 34,136,103 2014 4,009,516 291,670 24,839,296 1,594,886 1,983,292 188,652 3,207,978 11,949 36,127,239 2015 4,032,592 305,166 26,603,384 1,871,244 2,494,933 188,285 3,320,046 12,060 38,827,710 2016 4,443,598 344,604 26,300,116 1,989,217 1,125,547 193,149 3,292,110 12,734 37,701,075 2017 6,676,194 573,622 27,921,007 2,257,040 1,684,132 193,668 3,543,428 19,641 42,868,732 2018 7,340,723 538,793 30,662,739 2,177,112 2,445,695 - 3,478,660 23,279 46,667,001 2019 7,323,052 577,106 31,436,477 2,343,709 1,845,868 - 3,471,056 25,933 47,023,201 2020 7,395,960 527,933 31,848,763 2,142,373 1,966,136 - 3,601,590 19,762 47,502,517 Change 2011-2020 81.21%114.55%46.52%107.84%224.94%36.87%101.24%55.58% * Starting in 2018 Cigarette Tax is now reported as intergovernmental revenue 156Page 252 of 374 Schedule 6 City of Englewood, Colorado Assessed Value and Estimated Actual Value of Taxable Property Last Ten Years Total Assessed Total Direct Estimated Value as a State Assessed Tax Actual % of Actual Year Residential Commercial Vacant Industrial Assessed Value Rate Value Value 2011 177,896,360$ 293,377,190$ 6,232,240$ 18,339,590$ 19,821,960$ 515,667,340$ 7.621 3,399,357,133$ 15.17% 2012 171,837,160 278,532,750 5,016,550 18,101,510 24,699,380 498,187,350 7.621 3,283,907,557 15.17% 2013 171,896,760 277,807,930 5,329,940 16,691,820 26,665,110 498,391,560 7.794 3,166,274,240 15.74% 2014 172,832,227 275,559,546 4,965,852 17,439,957 27,075,588 497,873,170 8.124 3,292,104,148 15.12% 2015 220,454,124 308,860,205 5,244,648 18,664,778 22,455,870 575,679,625 8.124 3,995,611,615 14.41% 2016 222,757,583 308,584,455 5,092,109 17,841,530 22,565,770 576,841,447 7.804 4,019,363,629 14.35% 2017 224,974,950 280,468,397 6,926,632 17,590,825 20,982,070 550,942,874 10.745 5,217,752,892 10.56% 2018 273,462,379 364,490,969 7,104,745 21,679,086 20,587,250 687,324,429 10.710 5,225,197,837 13.15% 2019 332,941,964 401,254,023 7,128,311 22,644,294 25,377,410 789,346,002 9.438 6,230,303,972 12.67% 2020 340,190,911 403,638,488 6,062,793 22,366,311 20,932,150 793,190,653 9.576 6,319,948,088 12.55% Note: Property in Colorado is reassessed every two years. Tax rates are per $1,000 of assessed value. The assessed value of taxable property is determined by multiplying the "actual" value times an assessment ratio. The assessment ratio of residential property changes every two years based on a constitutionally mandated requirement to keep the ratio of the assessed value of commercial property to residential property at the same level as it was in the property tax year commencing January 1, 1985 (the "Gallagher Amendment"). The Gallagher Amendment requires that statewide residential assessed values must be approximately 45% of the total assessed value in the State with commercial and other assessed values making up the other 55% of the assessed values in the State. In order to maintain this 45%/55% ratio, the commercial assessment rate is established at 29% of the actual value of commercial property and the residential assessment rate fluctuates. The assessment rate of residential property by collection year was: Year 2010-2011 8.77% 2012-2013 7.96% 2014-2015 7.96% 2016-2017 7.96% 2018-2019 7.20% 2020-2021 7.15% Source : Arapahoe County Assessor. 157Page 253 of 374 Schedule 7 City of Englewood, Colorado Direct and Overlapping Property Tax Rates Last Ten Years City Direct Rates Overlapping Rates Urban Englewood Littleton Sheridan Valley Drainage & Collection Basic Debt Total Arapahoe School School School Sanitation Flood Control Year Rate Service Direct County District District District District District 2011 5.880 1.741 7.621 17.316 45.858 57.530 38.764 2.493 0.623 2012 5.880 1.741 7.621 17.150 46.719 56.935 41.998 2.493 0.657 2013 5.880 1.914 7.794 17.130 46.874 56.985 42.823 2.493 0.672 2014 5.880 2.244 8.124 16.950 47.018 56.601 40.854 2.493 0.700 2015 5.880 2.244 8.124 14.856 44.268 53.424 38.308 2.860 0.839 2016 5.880 1.924 7.804 15.950 47.018 56.601 38.308 2.126 0.611 2017 5.880 4.865 10.745 13.817 52.372 51.166 35.259 2.054 0.557 2018 5.880 4.830 10.710 14.301 52.373 56.945 50.798 2.131 0.820 2019 5.880 3.558 9.438 12.685 49.852 59.266 46.502 3.315 0.900 2020 5.880 3.696 9.576 13.013 49.854 64.744 44.903 2.888 0.900 Notes: The City's basic property tax rate may be increased only by a majority vote of the City's residents. Rates for debt service are set based on each year's requirements. Overlapping rates are those governments that apply to property owners within the City of Englewood. Not all overlapping rates apply to all Englewood property owners; for example, although the county rate applies to all City property owners, the rates for the various school districts apply to only property owners whose property is located within that district's geographic boundaries. Tax rates are per $1000 of assessed valuation. Source : Arapahoe County Assessor. 158Page 254 of 374 Schedule 8 City of Englewood, Colorado Principal Property Tax Payers Current Year and Nine Years Ago Collection Year 2020 2011 Percentage Percentage Taxable of Total Taxable of Total Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Valuation Valuation Rank Valuation Columbia Healthone LLC 22,620,000$ 1 2.85%28,499,260$ 1 5.53% Kent Place Associates LLC 6,156,000 2 0.78% CABOT IV-CO1M05-M07 LLC 4,136,879 3 0.52% CABOT IV-CO1M05-M07 LLC 4,091,871 4 0.52% SCG Atlas Marks 3,894,912 5 0.49% CABOT IV-CO1M05-M07 LLC 3,865,120 6 0.49% MTS Brookridge LLC 3,770,000 7 0.48% Avalon Axis Oxford 3,638,610 8 0.46% Northern Englewood Limited 3,471,300 9 0.44%2,400,780 6 0.47% EKM 3,416,781 10 0.43% Wilkerson 4,101,370 2 0.80% Wellsford Marks B Corp 2,781,740 4 0.54% Health One 2,610,000 5 0.51% EQR Marks 2,318,120 7 0.45% Realty Associates Fund III 3,400,260 3 0.66% First Industrial LP 2,726,000 8 0.53% Wal-Mart 2,648,660 9 0.51% 801/901 Englewood Parkway 2,481,530 10 0.48% 59,061,473$ 7.45%53,967,720$ 10.47% Source : Arapahoe County Assessor. 159Page 255 of 374 Schedule 9 City of Englewood, Colorado Property Tax Levies and Collections Last Ten Years Delinquent Collection Total Current Percentage of Taxes Total Tax Percentage of Year Levy Collection Levy Collected Collection Levy 2011 4,130,497$ 4,093,763$ 99.11%(14,973)$ 4,078,790$ 98.75% 2012 3,796,686 3,736,555 98.42%(11,422) 3,725,133 98.12% 2013 3,882,872 3,863,693 99.51%(18,391) 3,845,302 99.03% 2014 4,051,657 4,014,807 99.09%(6,976) 4,007,831 98.92% 2015 4,044,722 4,037,119 99.81%(7,602) 4,029,517 99.62% 2016 4,495,208 4,448,470 98.96%(6,097) 4,442,373 98.82% 2017 6,698,860 6,678,358 99.69%(2,164) 6,676,194 99.66% 2018 7,414,272 7,344,108 99.05%(5,527) 7,338,581 98.98% 2019 7,403,000 7,355,878 99.36%(926) 7,354,952 99.35% 2020 7,587,557 7,391,696 97.42%(10,040) 7,381,656 97.29% Note: Taxes are levied by December 15 of each year and are due and payable on January 1. Taxes may be paid in two equal installments, on or before February 28 and June 15; or in full, on or before April 30. After October 1, delinquent real estate is advertised for sale. The tax sale is held on or about December 1 of each year. Delinquent tax collections, as shown above, may be negative due to tax abatements. Source : Arapahoe County Assessor and Treasurer. 160Page 256 of 374 Schedule 10 Category 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General Retail 7,214,598$ 7,344,701$ 6,434,898$ 5,360,514$ 5,638,020$ 5,438,448$ 5,234,938$ 4,812,424$ 4,830,062$ 4,653,258$ Utilities 3,107,942 3,149,748 2,567,868 3,311,474 3,013,553 3,187,085 3,589,443 3,510,853 3,526,513 4,109,175 Bldg Materials/Hardware 3,504,082 3,175,667 3,285,541 2,830,358 2,642,380 2,515,723 2,593,358 2,072,084 1,670,205 1,479,608 Eating/Drinking Places 2,811,212 3,073,854 2,980,693 2,688,837 2,504,231 2,468,123 2,310,341 2,111,639 1,956,410 1,901,217 Automotive Dealers/Service Stations 3,141,220 2,967,994 2,820,388 2,680,387 2,846,375 2,548,368 2,206,185 2,089,906 2,088,087 1,952,101 Personal Service other than Lodging 771,459 876,112 1,337,774 1,034,985 2,565,529 747,070 1,852,361 2,004,760 1,932,614 1,742,996 General Merchandise 2,117,344 2,241,249 2,083,277 1,893,821 1,716,090 1,629,531 1,782,655 1,766,664 1,778,732 1,732,192 Food 1,397,144 1,302,124 1,509,789 1,241,102 1,163,543 1,077,599 1,125,607 963,623 665,713 868,206 Non-classifiable 1,125,171 1,065,506 999,957 901,755 935,784 885,175 1,050,219 1,026,549 968,416 1,035,461 Apparel/Accessories 550,127 559,998 627,996 607,494 658,393 640,626 861,869 862,196 825,966 779,874 Finance/Insurance/Real Estate 1,243,317 923,896 925,776 847,194 869,549 856,523 855,146 760,729 822,862 833,329 Furniture/Home 925,107 860,580 785,825 754,373 653,852 751,399 724,022 664,584 736,958 741,818 Manufacturing 977,141 930,767 815,471 582,223 836,235 484,327 541,992 450,280 446,649 308,440 Contract Construction 149,823 145,973 116,742 56,836 164,397 32,908 90,015 84,831 62,943 59,189 Hotels/Lodging 30,451 46,486 37,660 28,722 26,385 20,525 21,145 32,949 28,955 25,741 29,066,138$ 28,664,655$ 27,329,655$ 24,820,075$ 26,234,316$ 23,283,430$ 24,839,296$ 23,214,071$ 22,341,085$ 22,222,605$ The City direct sales tax rate is 3.5% for all years presented. Amounts are presented on a cash basis. Source : City of Englewood Revenue and Budget Division City of Englewood, Colorado Sales Tax Collections by Category Last Ten Years 161Page 257 of 374 Schedule 11 City of Englewood, Colorado Ratios of Outstanding Debt by Type Last Ten Years Governmental Activities Business-Type Activities General Certificates General Total Percentage Obligation of Capital Obligation Revenue Loans Primary of Personal Per Year Bonds (3)Participation Leases Bonds (1)Bonds Payable (1)Government Income (2)Capita (2) 2011 10,185,000$ 14,500,000$ 2,540,254$ 4,990,000$ 3,610,000$ 51,720,374$ 87,545,628$ 11.03%2,894$ 2012 9,846,372 13,736,591 2,144,292 11,847,419 3,447,255 50,048,143 91,070,072 10.95%2,944 2013 9,148,964 12,715,642 1,786,549 11,696,837 3,265,385 46,072,234 84,685,611 10.80%2,773 2014 8,286,244 11,661,822 1,558,861 11,546,103 3,086,899 42,126,230 78,266,159 9.57%2,483 2015 7,402,860 10,434,745 1,320,063 11,374,900 2,981,540 38,109,764 71,623,872 8.45%2,273 2016 6,295,000 9,348,000 1,021,885 11,208,919 2,791,297 33,804,702 64,469,803 7.42%1,996 2017 37,687,400 8,095,000 941,401 11,037,715 2,596,043 29,596,968 89,954,527 9.83%2,763 2018 35,694,618 6,813,000 855,888 10,861,291 2,395,788 25,242,929 81,863,514 8.71%2,534 2019 33,628,287 5,504,000 765,147 10,736,572 2,195,533 21,961,140 74,790,679 6.56%2,266 2020 31,470,171 4,175,000 668,976 10,059,441 1,990,279 18,580,815 66,944,682 5.17%1,917 Notes:Details of the City's outstanding debt can be found in the notes to the financial statements. (1) In addition to the $3,055,000 of 2004 General Obligation Water Bonds, the City issued $51,126,340 of new loans with the Colorado Water and Power Development Authority in 2004. In 2009 the City issued an additional $2,615,000 of General Obligation Water Bonds. In 2012 a portion of the 2004 General Obligation Water Bond issue was refunded and an additional $6,730,000 was issued. (2) See Schedule 17 for personal income and population data. 162Page 258 of 374 Schedule 12 City of Englewood, Colorado Ratios of General Bonded Debt Outstanding Last Ten Years Percentage of Estimated General Less: Amounts Actual Taxable Obligation Available in Debt Net General Value of Per Year Bonds Service Funds Bonded Debt Property (1)Capita (2) 2011 15,175,000$ (154,267)$ 15,020,733$ 0.44%496$ 2012 21,693,791 (55,625) 21,638,166 0.66%700 2013 20,845,801 (46,839) 20,798,962 0.66%681 2014 19,832,347 (61,105) 19,771,242 0.60%627 2015 18,777,760 (70,248) 18,707,512 0.47%594 2016 17,503,919 (63,703) 17,440,216 0.43%540 2017 48,725,115 (1,052,976) 47,672,139 0.91%1,476 2018 46,555,909 (1,098,625) 45,457,284 0.87%1,407 2019 44,364,859 (1,144,869) 43,219,990 0.69%1,310 2020 41,529,612 (658,744) 40,870,868 0.65%1,171 Notes:(1) See Schedule 6 for property value data. (2) See Schedule 17 for population data. Prior years have been restated to include Water Fund general obligation debt which has historically been serviced by funds available in the Water fund. Details of the City's outstanding debt can be found in the notes to the financial statements. 163 Page 259 of 374 Schedule 13 City of Englewood, Colorado Direct and Overlapping Governmental Activities Debt December 31, 2020 Estimated Estimated Share Debt Percentage of Overlapping Outstanding Applicable Debt Direct debt 39,897,434$ 100.000% 39,897,434$ Overlapping entities: Englewood School District No. 1 160,610,495 97.320%156,306,134 Sheridan School District No. 2 18,276,871 33.050%6,040,506 Littleton School District No. 6 490,693,458 2.130%10,451,771 Cherry Creek School District No. 5 656,226,000 0.390%2,559,281 Total overlapping debt 1,325,806,824 175,357,692 Total direct and overlapping debt 1,365,704,258$ 215,255,126$ Sources: Assessed value data used to estimate applicable percentages provided by the Arapahoe County Assessor. Debt outstanding data provided by each governmental entity. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Englewood. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 164 Page 260 of 374 Schedule 14 City of Englewood, Colorado Legal Debt Margin Information Last Ten Years Debt As a Actual Limit Debt Debt Applicable Legal Debt Percentage of Year Valuation Percentage Limit to Limit Margin Debt Limit 2011 3,266,465,613$ 3.00%97,993,968$ 10,185,000$ 87,808,968$ 11.6% 2012 3,283,907,557 3.00%98,517,227 9,846,372 88,670,855 11.1% 2013 3,166,274,240 3.00%94,988,227 9,148,964 85,839,263 10.7% 2014 3,292,104,148 3.00%98,763,124 8,286,244 90,476,880 9.2% 2015 3,995,611,615 3.00%119,868,348 7,402,860 112,465,488 6.6% 2016 4,019,363,629 3.00%120,580,909 6,295,000 114,285,909 5.5% 2017 5,217,752,892 3.00%156,532,587 37,687,400 118,845,187 31.7% 2018 5,225,197,837 3.00%156,755,935 35,694,618 121,061,317 29.5% 2019 6,230,303,972 3.00%186,909,119 33,628,287 153,280,832 21.9% 2020 6,319,948,088 3.00%189,598,443 31,470,171 158,128,272 19.9% On November 6, 2001, a majority of the City's electors voted to change the Home Rule Charter of the City of Englewood by allowing the debt ceiling to be three percent (3%) of actual valuation versus three percent (3%) of assessed valuation. The entire section (Section 104) of the Charter that establishes the debt margin follows: Indebtedness and obligations of the City shall be incurred and limited as provided in Article XI of the Constitution of the State of Colorado applicable to towns and cities except as otherwise provided in this Charter. Council shall have power to issue general obligation bonds of the City for any public capital purpose, upon majority vote of the registered electors of the City voting thereon at a special election; provided, however, that water extension and water improvement bonds may be issued without an election upon determination to that effect by Council. The total outstanding general obligation indebtedness of the City, other than for water bonds, shall not at any time exceed three percent (3%) of the actual valuation of the taxable property within the City as shown by the last preceding assessment for tax purposes. Water bonds shall mature and be payable as provided by the ordinance authorizing the issuance of said bonds. Refer to the Notes to Financial Statements, particularly Note 3F, for detailed information regarding long-term indebtedness of the City. Future debt issuance may be subject to the Taxpayer's Bill of Rights (TABOR). 165 Page 261 of 374 Schedule 15 City of Englewood, Colorado Pledged Revenue Coverage Sewer Fund Last Ten Years Rate Total Funds Gross Stabilization Available for Debt Service Requirements Required Year Revenue*Expense*Used Debt Service Principal Interest Total Coverage Coverage * 2011 13,526,579$ 9,677,968$ 1,945,476$ 5,794,087$ 3,387,676$ 1,879,676$ 5,267,352$ 1.10 1.10 2012 14,542,316 10,494,815 1,454,392 5,501,893 3,270,884 1,730,837 5,001,721 1.10 1.10 2013 15,218,765 10,273,261 - 4,945,504 2,535,351 1,784,525 4,319,876 1.14 1.10 2014 15,868,700 10,600,835 - 5,185,782 2,755,034 1,609,125 4,364,159 1.23 1.10 2015 16,553,722 10,866,175 - 5,687,547 2,795,351 1,476,375 4,271,726 1.33 1.10 2016 16,551,640 11,060,762 - 5,490,878 2,930,351 1,336,606 4,266,957 1.29 1.10 2017 17,142,802 10,262,621 - 5,874,144 3,037,571 1,031,925 4,069,496 1.44 1.10 2018 17,088,771 9,127,189 - 7,961,582 3,162,441 846,928 4,009,369 1.99 1.10 2019 18,312,642 11,533,217 - 6,779,425 3,258,759 814,540 4,073,299 1.66 1.10 2020 19,752,245 11,570,576 - 8,181,669 3,360,428 650,170 4,010,598 2.04 1.10 * As defined in the applicable bond indenture Since 2004 a rate stabilization account has been maintained to ensure that debt coverage requirements are met. 166 Page 262 of 374 Schedule 15 (Continued) City of Englewood, Colorado Pledged Revenue Coverage Golf Course Fund Last Ten Years Net Revenue Gross Available for Debt Service Requirements Required Year Revenue*Expense*Debt Service Principal Interest Total Coverage Coverage * 2011 1,834,831$ 1,548,002$ 286,829$ 60,000$ 152,605$ 212,605$ 1.35 1.35 2012 2,113,394 1,642,720 470,674 65,000 149,815 214,815 2.19 1.35 2013 1,953,899 1,566,368 387,531 85,000 124,744 209,744 1.85 1.35 2014 2,005,739 1,688,630 317,109 85,000 130,181 215,181 1.47 1.35 2015 2,077,038 1,738,965 338,073 85,000 128,481 213,481 1.58 1.35 2016 2,080,424 1,613,711 466,713 90,000 120,166 210,166 2.22 1.35 2017 2,067,538 1,531,782 535,756 90,000 118,142 208,142 2.57 1.35 2018 2,221,175 1,650,270 570,905 95,000 122,960 217,960 2.62 1.35 2019 2,134,658 1,800,139 334,519 95,000 119,833 214,833 1.56 1.35 2020 2,188,882 1,681,067 507,815 100,000 108,683 208,683 2.43 1.35 * As defined in the applicable bond indenture 167 Page 263 of 374 Schedule 15 (Continued) City of Englewood, Colorado Pledged Revenue Coverage Storm Drainage Fund Last Ten Years Net Revenue Gross Available for Debt Service Requirements Required Year Revenue*Expense*Debt Service Principal Interest Total Coverage Coverage * 2011 337,317$ 112,833$ 224,484$ 80,000$ 57,818$ 137,818$ 1.63 1.15 2012 332,668 133,066 199,602 95,000 42,305 137,305 1.45 1.15 2013 334,013 152,115 181,898 95,000 17,291 112,291 1.62 1.15 2014 327,860 107,643 220,217 100,000 15,454 115,454 1.91 1.15 2015 328,164 95,030 233,134 100,000 14,433 114,433 2.04 1.15 2016 337,998 111,199 226,799 100,000 13,531 113,531 2.00 1.15 2017 405,824 116,122 289,702 105,000 12,030 117,030 2.48 1.15 2018 365,975 222,254 143,721 105,000 10,193 115,193 1.25 1.15 2019 871,878 407,104 464,774 105,000 7,641 112,641 4.13 1.15 2020 1,224,068 697,926 526,142 105,000 5,256 110,256 4.77 1.15 The 2001 Storm Drainage Revenue Bonds were refunded in 2012. * As defined in the applicable bond indenture 168 Page 264 of 374 Schedule 16 CITY OF ENGLEWOOD, COLORADO Schedules of Future Debt Service Requirements December 31, 2020 Year Rate Principal Interest Total 2021 4.50 105,000$ 105,016$ 210,016$ 2022 4.75 110,000 100,291 210,291 2023 5.00 115,000 95,066 210,066 2024 5.25 120,000 89,316 209,316 2025 5.50 125,000 83,017 208,017 2026 5.63 125,000 76,142 201,142 2027 5.75 145,000 69,110 214,110 2028 5.75 155,000 60,773 215,773 2029 5.80 155,000 51,860 206,860 2030 5.80 165,000 42,870 207,870 2031 6.00 175,000 33,300 208,300 2032 6.00 185,000 22,800 207,800 2033 6.00 195,000 11,700 206,700 1,875,000$ 841,261$ 2,716,261$ Year Rate Principal Interest Total 2021 2.70 115,000$ 3,105$ 118,105$ Golf Course Revenue Refunding Bonds - 2013 (Continued) Storm Water Revenue Refunding Bonds - 2012 169 Page 265 of 374 Schedule 16 CITY OF ENGLEWOOD, COLORADO Schedules of Future Debt Service Requirements December 31, 2020 (Continued) General Obligation Water Bonds - 2012 General Obligation Water Bonds - 2019 Year Rate Principal Interest Total Rate Principal Interest Total 2021 4.00 500,000$ 215,450$ 715,450$ 2.290 180,000$ 55,075$ 235,075$ 2022 4.00 520,000 195,050 715,050 2.290 185,000 50,895 235,895 2023 2.50 540,000 177,900 717,900 2.290 190,000 46,602 236,602 2024 3.00 560,000 162,750 722,750 2.290 190,000 42,250 232,250 2025 3.00 570,000 145,800 715,800 2.290 200,000 37,785 237,785 2026 3.00 585,000 128,475 713,475 2.290 210,000 33,090 243,090 2027 3.00 380,000 114,000 494,000 2.290 435,000 25,705 460,705 2028 3.00 385,000 102,525 487,525 2.290 450,000 15,572 465,572 2029 3.00 400,000 90,750 490,750 2.290 455,000 5,210 460,210 2030 3.00 915,000 71,025 986,025 2,495,000$ 312,184$ 2,807,184$ 2031 3.00 940,000 43,200 983,200 2032 3.00 970,000 14,550 984,550 7,265,000$ 1,461,475$ 8,726,475$ Year Rate Principal Interest Total Rate Principal Interest Total 2021 5.00 1,000,000$ 1,192,963$ 2,192,963$ 4.00 985,000$ 104,000$ 1,089,000$ 2022 5.00 1,050,000 1,142,963 2,192,963 4.00 1,025,000 64,600 1,089,600 2023 5.00 1,105,000 1,090,463 2,195,463 4.00 590,000 23,600 613,600 2024 5.00 1,155,000 1,035,213 2,190,213 2,600,000$ 192,200$ 2,792,200$ 2025 5.00 1,215,000 977,463 2,192,463 2026 5.00 1,275,000 916,712 2,191,712 2027 5.00 1,340,000 852,962 2,192,962 2028 5.00 1,405,000 785,962 2,190,962 2029 5.00 1,475,000 715,712 2,190,712 2030 5.00 1,550,000 641,962 2,191,962 2031 5.00 1,630,000 564,462 2,194,462 2032 5.00 1,710,000 482,962 2,192,962 2033 5.25 1,795,000 397,462 2,192,462 2034 5.25 1,890,000 303,225 2,193,225 2035 5.00 1,990,000 204,000 2,194,000 2036 5.00 2,090,000 104,500 2,194,500 23,675,000$ 11,408,986$ 35,083,986$ General Obligation Bonds, Series 2017 General Obligation Refunding Bonds, Series 2010 170 Page 266 of 374 Schedule 16 CITY OF ENGLEWOOD, COLORADO Schedules of Future Debt Service Requirements December 31, 2020 (Continued) Year Rate Principal Interest Total Principal Interest Total 2021 5.41 101,813$ 13,708$ 115,521$ 1,363,000$ 74,062$ 1,437,062$ 2022 5.41 107,672 11,450 119,122 1,394,000 44,838 1,438,838 2023 5.41 113,755 9,062 122,817 1,418,000 15,031 1,433,031 2024 5.41 120,070 6,542 126,612 4,175,000$ 133,931$ 4,308,931$ 2025 5.41 126,627 3,882 130,509 2026 5.41 99,039 1,078 100,117 668,976$ 45,722$ 714,698$ May 1, 2004 - Sewer Fund Water Pollution Control Revolving Fund Year Rate Principal Interest Total 2021 3.87 3,467,448$ 610,860$ 4,078,308$ 2022 3.87 3,574,468 500,575 4,075,043 2023 3.87 3,686,839 390,470 4,077,309 2024 3.87 3,799,210 273,886 4,073,096 2025 3.87 4,007,899 2,905 4,010,804 18,535,864$ 1,778,696$ 20,314,560$ Civic Center Project Qualified Energy Conservation Bonds - 2010 Englewood Environmental Foundation, Inc. Colorado Water Resources and Power Development Authority 171 Page 267 of 374 Schedule 17 City of Englewood, Colorado Demographic and Economic Statistics Last Ten Years (2) Per Capita (2)(3)(4)(5) (1)Personal Personal Median School Unemployment Consumer Year Population Income Income Age Enrollment Rate Price Index 2011 30,255 793,528,140$ 26,228$ 37.1 3,954 9.5%3.75% 2012 30,930 831,460,260 26,882 37.1 3,954 7.6%2.23% 2013 30,534 784,174,188 25,682 38.3 4,018 6.1%2.83% 2014 31,516 817,682,620 25,945 37.1 4,018 4.4%2.89% 2015 31,516 825,971,328 26,208 37.1 3,927 4.3%0.96% 2016 32,301 846,544,608 26,208 37.2 2,775 4.1%2.57% 2017 32,301 907,690,401 28,101 37.2 2,759 3.9%3.44% 2018 32,301 940,023,702 29,102 36.1 2,633 3.7%3.49% 2019 33,002 1,140,252,102 34,551 36.1 2,634 3.7%1.78% 2020 34,917 1,294,827,111 37,083 36.4 2,460 7.8%2.14% Sources: (1) & (2) Colorado Department of Local Affairs, Division of Local Government (3) Colorado Department of Education, Fall Enrollment (4) U.S. Dept. of Labor, Bureau of Labor Statistics - Annual Averages, City of Englewood (5) U.S. Dept. of Labor, Bureau of Labor Statistics - Annual Increase, Denver/Boulder area. All Urban Consumers 172 Page 268 of 374 Schedule 18 City of Englewood, Colorado Principal Employers Current Year and Nine Years Ago 2020 2011 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Health One Swedish Medical 2,041 1 6.98%1,800 1 6.16% Craig Hospital 815 2 2.79%650 4 2.22% Encore Electric 560 3 1.92%900 2 3.08% Englewood School District 491 4 1.68%525 3 1.80% City of Englewood 425 5 1.45%520 5 1.78% Groove Toyota 420 6 1.44%450 6 1.54% Karcher North American 367 7 1.26%300 7 1.03% MetroCommunty Providers 331 8 1.13%300 8 1.03% Veolia Transportation 295 9 1.01%230 10 0.79% Regional Transportation District 251 10 0.86%238 9 0.81% Total 5,996 20.52%5,913 20.23% Sources: City of Englewood Community Development Department 173 Page 269 of 374 Schedule 19 City of Englewood, Colorado Full-time Equivalent Employees by Function/Program Last Ten Years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General government: City Manager 4.92 5.00 5.00 5.25 5.00 6.25 6.25 7.00 6.75 11.80 City Attorney 5.70 6.15 6.15 5.87 6.57 7.30 7.30 6.93 6.00 6.00 Municipal Court 10.20 10.05 9.90 10.48 10.51 10.01 10.01 9.95 9.75 9.75 Human Resources 6.10 6.40 6.51 6.51 5.81 9.43 9.43 7.43 8.18 6.18 Finance & Admin Services 17.63 17.90 17.90 17.90 18.90 16.50 16.50 14.63 15.75 15.75 Central Services 1.08 1.10 1.10 1.10 1.10 1.10 1.00 1.00 1.00 - Information Technology 10.34 10.50 10.50 10.50 10.50 11.00 11.00 12.00 12.00 12.00 Community Development 10.83 11.00 11.00 10.50 10.50 10.00 10.00 10.00 10.00 10.00 Communications - - - - - 2.50 2.50 3.00 2.75 2.75 Building and Safety 6.89 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Police: Administration 8.47 8.60 8.60 7.00 7.00 9.00 9.00 11.00 11.00 11.00 Communications and Records 14.68 14.20 16.50 16.00 16.00 15.00 15.00 16.20 19.00 19.00 Police Operations 70.89 73.00 72.00 72.00 76.00 79.00 79.00 78.00 79.00 78.00 Neighborhood Services 4.92 5.00 5.00 5.00 5.00 8.00 8.00 5.00 5.00 5.00 Public Works: Administration 2.78 2.56 2.58 2.58 2.58 2.00 2.00 3.45 2.45 2.00 Engineering 2.96 3.00 3.80 4.00 4.00 4.80 4.80 4.07 4.07 4.07 Streets and Drainage 10.83 11.00 11.00 11.00 11.00 11.45 11.45 11.45 11.45 11.45 Traffic Maintenance 6.40 6.50 6.50 6.50 6.50 6.00 6.00 6.00 6.00 6.00 General Ops and Maintenance 21.68 21.00 21.00 20.00 22.00 20.00 20.00 21.00 20.50 20.50 Concrete Utility 3.86 3.92 4.16 3.92 2.92 2.75 2.75 3.03 3.03 3.03 ServiCenter 9.85 10.00 10.00 10.00 11.00 10.00 10.00 10.00 10.50 10.00 Parks and Recreation: Administration 4.92 5.74 5.00 5.00 5.00 3.80 3.80 4.00 4.00 4.00 Programs 18.37 17.16 17.50 16.38 17.16 16.25 16.25 16.81 17.25 17.25 Parks 14.28 13.50 13.50 13.50 14.50 15.00 15.00 15.00 14.95 14.95 Golf 7.39 7.38 7.38 7.38 7.38 7.00 7.00 12.25 12.70 20.10 Library 15.60 16.30 15.87 15.93 16.64 14.48 14.48 14.25 14.00 14.00 Utilities: Water Operations 22.94 23.30 24.50 24.50 21.50 21.90 21.90 22.50 24.00 24.00 Sewer Operations 5.42 5.50 6.40 6.40 6.40 6.60 6.60 5.50 6.40 6.40 Storm Drainage Operations 0.64 0.65 0.55 0.55 0.55 0.40 0.90 1.10 1.30 1.30 Utilities Administration 14.82 17.05 15.55 15.55 15.05 13.40 12.90 13.20 13.15 13.30 Littleton/Englewood Wastewater Treatment Plant 77.15 81.50 84.35 83.90 78.90 77.40 77.40 86.00 88.75 88.75 Total 412.54 421.96 426.80 422.19 422.96 425.32 425.22 438.75 447.68 455.33 Source: City Revenue and Budget Division. Includes permanent full and part-time employees only; seasonal employees are excluded. 174 Page 270 of 374 Schedule 20 City of Englewood, Colorado Operating Indicators by Function/Program Last Ten Years Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020** Police Calls for assistance 45,647 45,337 50,882 50,760 47,099 44,257 44,707 44,482 57,987 49,059 Number of uniformed officers 71 71 71 72 75 75 77 76 78 78 Building Division Commercial construction value 9,984,183$ 30,797,601$ 12,432,894$ 56,949,582$ 73,276,444$ 55,744,440$ 58,254,208$ 62,622,843$ 53,480,689$ 67,716,121$ Number of units 88 92 68 108 119 107 129 109 75 93 Residential construction value 5,021,642$ 4,969,163$ 5,461,307$ 8,255,353$ 13,730,421$ 21,961,666$ 30,987,359$ 50,218,044$ 38,224,372$ 27,243,231$ Number of units 264 302 251 299 352 427 618 518 498 429 Building permits value 26,247,031$ 49,405,068$ 145,154,652$ 93,181,634$ 105,041,678$ 89,917,681$ 98,839,201$ 118,928,359$ 101,778,024$ 105,916,670$ Number of permits 2517 2446 2096 3936 3246 2857 2558 3159 2756 2609 Parks and Recreation Englewood Recreation Center Visits 307,000 305,500 287,000 240,679 242,472 240,320 232,424 236,372 245,644 75,943 Malley Recreation Center Visits *2,154 3,522 2,502 89,497 114,410 112,566 98,680 105,623 97,472 24,958 Park Shelter Reservations 482 538 511 536 627 760 398 579 470 172 Golf Rounds Played: 9 hole 17,408 19,645 18,157 17,766 16,737 15,799 18,128 17,171 12,790 14,200 18 hole 25,508 26,628 25,900 24,580 25,605 26,176 35,395 34,305 32,406 38,363 Par 3 Course 19,454 22,234 20,020 19,207 19,905 19,175 24,158 20,140 16,023 24,475 Water New connections 13 3 8 13 25 25 147 57 44 43 Water Main Breaks 44 38 35 35 15 15 23 27 42 42 Average Daily Consumption (Millions of gallons)5.650 5.454 4.703 5.275 4.763 4.695 5.140 5.440 5.175 5.930 Peak Daily Consumption (Millions of gallons)11.240 11.910 10.890 10.905 10.010 10.210 10.400 10.780 10.540 10.783 Wastewater Average Daily Sewage Treated (Millions of gallons)21.6 20.9 21.1 21.5 23.1 22.1 20.4 20.4 18.7 17.8 *Malley Recreation Center activity tracking was changed from membership tracking to number of visits during 2014. **Recreation facilities were at limited capacity in 2020 due to COVID-19 protocols. Sources: City Departments 175 Page 271 of 374 Schedule 21 City of Englewood, Colorado Capital Asset Statistics by Function/Program Last Ten Years Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Police Marked police vehicles 20 20 19 19 20 23 23 23 23 23 Stations 1 1 1 1 1 1 1 1 1 1 Public Works Miles of streets and alleys Streets 121.63 121.63 121.63 121.63 121.63 121.63 121.63 121.63 121.63 121.63 Alleys 39.5 39.5 39.5 39.5 39.5 39.5 39.5 39.5 39.5 39.5 Parks and Recreation Parks 12 12 12 12 12 12 12 12 12 12 Acreage 166.1 166.1 166.1 166.1 166.1 166.1 166.1 166.1 166.1 166.1 Greenbelts 3 3 3 3 3 3 3 3 3 3 Acreage 23.67 23.67 23.67 23.67 23.67 23.67 23.67 23.67 23.67 23.67 Athletic complexes 3 3 3 3 3 3 3 3 3 3 Acreage 30.87 30.87 30.87 30.87 30.87 30.87 30.87 30.87 30.87 30.87 Dog Park 1 1 1 1 1 1 1 1 1 1 Recreation Centers 2 2 2 2 2 2 2 2 2 2 Swimming pools 2 2 2 2 2 2 2 2 2 2 Golf courses - 18 hole 1 1 1 1 1 1 1 1 1 1 Golf courses - 9 hole 1 1 1 1 1 1 1 1 1 1 Golf courses - Par 3 1 1 1 1 1 1 1 1 1 1 Water Water Mains (miles)155 155 155 155 155 155 155 155 155 155 Fire hydrants 570 570 570 570 570 570 570 570 570 570 Storage Capacity (Millions of gallons)6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 Daily Plant Capacity (Millions of gallons)28 28 28 28 28 28 28 28 28 28 Wastewater Sanitary Sewers (miles)530 530 530 530 530 530 530 530 530 530 Treatment Capacity (Millions of gallons)50 50 50 50 50 50 50 50 50 50 Sources: City Departments 176 Page 272 of 374 STUDY SESSION TO: Mayor and Council FROM: Jackie Loh DEPARTMENT: Finance DATE: June 14, 2021 SUBJECT: 2022 Budget Workshop Part I DESCRIPTION: 2022 Budget Workshop - Discuss Staff's Preliminary Personnel, Operational and Capital Requests RECOMMENDATION: 1) Advise Staff to move forward with all or a portion of Operational Requests. 2) Advise Staff to move forward with all or a portion of Capital Requests. 3) Provide guidance to Staff regarding other 2022 budget considerations. PREVIOUS COUNCIL ACTION: • On March 15, 2021, Staff presented a 2021 Budget Review providing a high level explanation of the City's sources and uses of funds as well as an overview of the 2022 City Council Budget Calendar. • At the April 5, 2021 City Council Study Session, Staff provided the preliminary 2022 revenue and expenditures forecast assumptions for 2022 through 2026. • During the May 3, 2021 Study Session, Staff discussed the department's prioritized Tier 1 capital projects list included in the 2022-2026 Capital Improvement Plan SUMMARY: 2022 Budget Workshop: Staff and City Council will discuss and consider over the next two meetings (June 14th and June 21st) each of the department's 2022 priorities/initiatives and preliminary program operational and capital requests for inclusion in the proposed 2022 Budget. ANALYSIS: Each department will present and discuss key initiatives and any proposed changes for Council consideration. This information will be used to prepare detailed line item budgets for each department to be provided to Council as part of the budgeting calendar. Council is being asked to consider the advantages and challenges of options for funding the City of Englewood's short and long term estimated capital needs, including proposed capital plans for the stormwater drainage system, water plant and distribution system, sewer collection system and the South Platte Renewal (SPR) Enterprise Fund. Page 273 of 374 Staff provided the preliminary Capital Improvement Plan to Council during the May 3, 2021 Study Session. As we progress through the 2022 Budget process, Staff will provide the formal Capital Improvement Plan to be included in the final budget documents prior to Council's formal approval. During the May 3, 2021 capital discussion, Staff focused on Tier 1 projects considering the limited amount of funding available (approximately $5 million) in 2022. During the 2022 Budget Workshop discussion, additional projects will be discussed and Staff will seek Council's guidance regarding the inclusion of these projects. On May 4th, Staff presented the Tier 1 projects to the Planning and Zoning Commission (Commission). Attached is the Commission's June 2nd memo to the City Manager of the their capital projects recommendation. The City is in the early stages of developing the budget and looks forward to Council's input regarding all of the operating and capital requests put forth. CONCLUSION: City Council's input and guidance from the City Council 2022 Budget Workshop will shape the proposed 2022 Budget. Staff will prepare line item detailed budgets over the next couple months and will share updated 2022 Budget information with Council later this summer per established calendar. FINANCIAL IMPLICATIONS: City Council's input and feedback regarding the department's operational and capital requests will impact the development of the proposed 2022 Budget. CONNECTION TO STRATEGIC PLAN: The 2022 Budget Workshop discussing key initiatives and any proposed changes for Council consideration supports the Governance results/outcomes of the Strategic Plan. OUTREACH/COMMUNICATIONS: Staff has not undertaken specific outreach/communication work regarding the budget, but is open to Council suggestions in this area. ATTACHMENTS: 2022 Budget Workshop Part I Memo from Planning & Zoning Commission Dated June 2, 2021 Page 274 of 374 2022 Budget Workshop Part I June 14, 2021 Page 275 of 374 I.Budget Workshop Objectives II.2021 General Fund Revenue and Expenditure Trends III.2021 General Fund Amended Budget Overview IV.2022 General Fund Budget Assumptions V.Budget Calendar and Schedule VI.Department Presentations City Administration Municipal Court Human Resources Information Technology Community Development Communications Police Agenda Page 276 of 374 I. Budget Workshop Objectives Page 277 of 374 Budget Workshop Objectives •Review General Fund 2021 April YTD revenue and expenditure trends •Highlight the budget calendar for 2022 and engagement of Council in the process •Seek Council vision and input in the development of the 2022 budget •Provide an overview of department budget proposals o Part I –June 14th o Part II –June 21st Page 278 of 374 II. General Fund 2021 Revenue and Expenditure Trends Page 279 of 374 General Fund 2020 and 2021 YTD Monthly Revenue $- $4,500,000 $9,000,000 $13,500,000 $18,000,000 $- $1,300,000 $2,600,000 $3,900,000 $5,200,000 Jan Feb Mar Apr 2020 2021 2020 YTD 2021 YTDPage 280 of 374 $- $4,550,000 $9,100,000 $13,650,000 $18,200,000 $- $1,100,000 $2,200,000 $3,300,000 $4,400,000 $5,500,000 Jan Feb Mar Apr 2020 2021 2020 YTD 2021 YTD General Fund 2020 and 2021 YTD Monthly Expenditures Page 281 of 374 Sales and Use Tax Collections $- $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $1,750,000 $2,000,000 $2,250,000 $2,500,000 $2,750,000 $3,000,000 $3,250,000 $3,500,000 $3,750,000 $4,000,000 $4,250,000 $4,500,000 Total Sales and Use Tax Collected2018-2021 Monthly Comparison of Total Sales and Use Tax Collected 2018 2019 2020 2021Page 282 of 374 Sales & Use Tax Collections –Top 10 Sources Page 283 of 374 General Fund -Fund Balance Composition (in millions) Page 284 of 374 III. 2021 General Fund Amended Budget Overview Page 285 of 374 General Fund 2021 Amended Budget Revenue Sales and Use Tax $32,528,457 62% Property Tax $4,624,000 9% All Other Revenue $15,383,393 29%Page 286 of 374 General Fund 2021 Amended Budget Expenditures Administration 2.1%Finance 3.1% Information Technology 6.8% Community Development 5.7% Public Works 13.2% Police 26.3% Fire & Emergency Management 12.5% Parks, Recreation and Library Services 14.5% Debt Service 7.5% All Other Expenditures 8.3% All Other Expenditures Legislation 0.6% City Attorney's Office 1.7% Municipal Court 2.3% Human Resources 2.0% Communications 1.3% Contingencies 0.6% Total 8.3%Page 287 of 374 General Fund 2021 Amended Budget Fixed Versus Variable Costs Fixed Costs (Non- discretionary) Variable Costs (Discretionary) Variable Costs $27,889,383 (Discretionary) Fixed Costs $41,799,174 (Non-discretionary) Total $69,688,557 Page 288 of 374 General Fund 2021 Amended Budget Fixed Costs (Non-discretionary) Contractual Services Debt Service StaffingPolice and Fire Pension (Old Hire and Voluntary) Transfer-Out to Capital Projects Funds and Others Fixed Costs $41,799,174 (Non-discretionary) Contractual Services •Denver Fire Contract •Telephone Contact •Software/Hardware Maintenance Contracts Page 289 of 374 General Fund 2021 Amended Budget Variable Costs (Discretionary) Capital Commodities Contractual Services Staffing-Nonunion Full- Time, Part-Time and Temporary Variable Costs $27,889,383 (Discretionary) Contractual Services •Design and Engineering Professional Services •Consulting Professional Services •Outside Legal Professional Services Page 290 of 374 General Fund 2021 Amended Budget Employee Compensation Composition Salary and Wages 76% Benefits 24% Salary and Wages $25,291,057 Benefits $ 8,043,592 Total $33,334,649 Page 291 of 374 IV. 2022 General Fund Budget Assumptions Page 292 of 374 Strategic Plan Outcomes Governance Neighborhoods Infrastructure Economy Sustainability Transportation Safety Page 293 of 374 Fiscal Responsibility $36,000,000 $40,500,000 $45,000,000 $49,500,000 $54,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unaudited General Fund Revenues and Expenditures 2010-2020 Unaudited Expenditures Revenues Revenue CAGR 3.7% Expenditure CAGR 2.8% 2010-2020 Unaudited Compound Annual Growth Rate (CAGR) General Fund Revenue CAGR ~ 3.7% General Fund Expenditures CAGR ~ 2.8% CPI All Items / Denver-Aurora-Lakewood CO CAGR ~ 2.5% Surplus = Revenues Exceed Uses Deficit = Expenditures Exceed Sources Page 294 of 374 General Fund SummaryPreliminary 2022 Budget Forecast Assumptions 2022 Revenue Sources: Sales and Use Tax Revenue (increase applied to 2021 revenue estimate) +3.0% Property Tax Revenue *+14.0% All Other Revenue Sources *+4.0% 2022 Expenditure Uses:+3.0% Please Note:An update of the preliminary revenue and expenditure assumptions will be provided after review of the Colorado Legislative Council Staff June 2021 | Economic & Revenue Forecast report * Based on historical receipts and economic projections, the following assumptions have increased from the April 5, 2021 presentation: Property Tax to 14% from 10% and All Other Revenue Sources to 4% from 2%Page 295 of 374 2022 Budgetary Considerations •Salary and Wage Increases •7% Medical Benefits (Maximum Impact) HR and Kaiser to negotiate the actual impact by mid to late August 2021 •Actuarial Results Pension Contributions •Employee Education and Professional Development Support •New positions and expenditures to enhance current service levels Page 296 of 374 2022 Salary / Wage Increase Overview Employers of choice attract and retain employees, in part, by: Offering competitive compensation Offering competitive benefits Informational Data: •Englewood Police Benefits Association (2021 & 2022) –3.5% •Englewood Employee Association Negotiated Salary/Wage Increase (2020 -2022) –3.5% •Colorado State Salary/Wage Increase for Fiscal Year (FY) 2021-2022 –3.0% •Colorado Economic Indicators Wage and Salary Income Percent Change (Public & Private Sectors) 2022 Increase –6.5% 3 Year Average Increase (2020-2022) –4.8% 5 Year Average Increase (2018-2022) –5.5%Page 297 of 374 Fund Balance Composition (in millions) $- $6.5 $13.0 $19.5 $26.0 2017 Actual 2018 Actual 2019 Actual 2020 Unaudited 2021 Budget 2021 Estimate 2022 Forecast 2023 Forecast 2024 Forecast 2025 Forecast 2026 Forecast TABOR Reserve LTAR Loan Unassigned Fund Balance Reserve PolicyPage 298 of 374 V. Budget Calendar and Schedule Page 299 of 374 2022 City Council Budget Calendar Q1 Jan-Mar •City Council 2022 Vision/Goal Setting Workshop -Jan 23, 2021 •Budget Basics, Funds Overview and 2022 Budget Cycle Preview -Mar 15, 2021 Q2 Apr -Jun •Preliminary 2022 Revenue and Expenditure Underlying Forecast Assumptions -Apr 5, 2021 •Review Preliminary 2022 Capital Projects List -May 3, 2021 •2022-2026 Capital Improvement Plan (CIP) to Planning & Zoning (P&Z) Commission -May 4, 2021 •2022-2026 Capital Improvement Plan (CIP) P&Z’s recommended project list to City Manager -Jun 2, 2021 •Review Preliminary 2022 Operating & Staff Prioritized Capital Requests -Jun 14 and 21, 2021 Q3 Jul-Sep •Update from the following per their purview of the draft proposed capital and/or operating budget: Library Board, Transportation Advisory Committeeand Parks & Recreation Commission –Jul 26, 2021 •Budget Advisory Committee Annual Report Review -Jul 26, 2021 •Draft Proposed 2022 Operating & Capital Budget & Follow-up Discussion as needed -Aug 9 and 23, 2021 •Submit Proposed 2022 Budget -Sep 7, 2021 •Proposed 2022 Budget Public Hearing -Sep 20, 2021 •Budget Workshop to finalize 2022 Budget (Placeholder) -Sep 27, 2021 Q4 Oct-Dec •2022 Budget Ordinances First Reading -Oct 4, 2021 •2022 Budget Ordinances Second Reading -Oct 18, 2021 Page 300 of 374 Department Lineup June 14, 2021 June 21, 2021 Administration City Attorney’s Office Municipal Court Finance Human Resources Public Works Information Technology Parks, Recreation and Library Community Development Utilities Communications South Platte Renew Police Page 301 of 374 VI. Department Presentations Page 302 of 374 •Administration •Municipal Court •Human Resources •Information Technology •Community Development •Communications •Police Department Presentations Page 303 of 374 City Administration Department Page 304 of 374 1.Sustainability Program Fulfill City Council vision for a Sustainability Program in 2022 2. Translation Services Increase service delivery and equity in City communications through improved translation services 3.Board & Commission Training Improve effectiveness of Board & Commission deliberations and guidance to Council 4. Employee Advisory Committee Enhance employee events and expand employee recognition offerings to employees Enhancements Page 305 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time Branded items (CMO)-$500 $ Computer Supplies (CMO & CCO)-$1,000 $ Office Equipment/Furniture -$500 $ Sustainability Program (.5 FTE)+$65,000 $ Translation Services +$20,000 $ Board & Commission Training +$$9,000 Employee Adv. Committee Program Expansion +$20,000 Totals +$103,000 $9,000 Page 306 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale N/A Page 307 of 374 New Personnel Requests Title Salary & Benefits Division Rationale Sustainability Coordinator (.5 FTE) $40,000 CMO Carry out Council vision for sustainability program Page 308 of 374 Operational Cost Increases Description Dollar Amount Division Reason for Increase Sustainability Program $25,000 CMO Carry out Council vision for sustainability program Translation Services $20,000 CMO Increase service delivery and equity in City communications through improved translation services Board & Commission Training $9,000 CCO Improve effectiveness of Board & Commission deliberations and guidance to Council Employee Advisory Committee $20,000 CMO Sponsor the following employee related events or award programs: Innovation Grant, Longevity Monetary Awards, Summer Picnic, End of Year Celebration, Office Expenses (Printing, awards, etc.), Misc. Recognition and Appreciation Event (bring your child to work week (every other year), spirit week, decorating contest, and appreciation and recognition events). Page 309 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total Sustainability Program %%%%100%%%100% Translation Services %%%%%%100%100% Boards & Commission Training %%%%%%100%100% Employee Advisory Committee %%%%%%100%100%Page 310 of 374 2022 Capital Requests Fund Capital Item Request Amount -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL -$ Page 311 of 374 Questions?Page 312 of 374 Municipal Court Page 313 of 374 1.Restorative Justice Operational Costs Support Criminal Justice reforms through Restorative Justice practices and processes 2. Court Appointed Counsel Increases Supports legislative mandates and prison reform efforts 3.Court Service Program Costs & Court Services Program Manager Remove financial barriers to comply with legal requirements. Provide court personnel with expertise in identifying the needs, tools and skills to administer court and community service programs. Provide a connection to basic housing/food resources and individual improvement opportunities like education, mental health/counseling services, substance abuse treatment/harm reduction, etc. Enhancements Page 314 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time Court Service Programs Manager (annual)+$85,000 $ Restorative Justice Operational Costs +$5,000 $ Court Service and On-going Probation Costs +$30,000 $ Court Appointed Counsel increase +$7,500 $ $ Court Navigator Position absorbed by Court Service Programs Manager if approved (annual) -$26,000 $ Totals +$101,500 $0 Page 315 of 374 New Personnel Requests Title Salary & Benefits Division Rationale Court Service Programs Manager $42,250 (2022 half year impact on budget) Municipal Court We currently have a part time court navigation position. This position is becoming extremely useful in outreach to defendants in need but we anticipate that additional personnel time will be required in order to continue to provide appropriate oversight of services. Several legislative changes will need to be implemented and transitioning the part time position to a more global full time position would increase the Court’s ability to address additional mental health and socio-economic barriers to compliance. In order to fully assess pending legislative requirements and opportunities, we would delay implementation until July 1, 2022.Page 316 of 374 Operational Cost Requests Description Amount Division Rationale Restorative Justice Program Support $5,000 Municipal Court The Restorative Justice Program Manager is housed under the Court. Funding was originally estimated and since this is a new program, additional operational costs need to be considered. Requests include volunteer trainings, professional organization memberships, RJ programming participant acknowledgements, conference attendance, food and advertising expenses. We feel this is a conservative request in order to establish a robust restorative justice program. We continue to look for grant funding opportunities to offset these RJ costs. Court Service and on-going Probation Programs $30,000 Municipal Court Court service programs would include payment vouchers for various treatment programs including Domestic Violence counseling, substance abuse counseling, monitoring of drug and alcohol consumption and in-home detention options. Many/most of these programs receive state funding in the county and district courts. Local jurisdictions do not have the same funding opportunities thus creating a financial barrier to many individual’s successful compliance of court orders. Court Appointed Counsel $7,500 Municipal Court The afore mentioned legislative changes will further reduce the ability to bond and hold defendants in custody for the vast majority of municipal violations. Based on these mandates, more defendants will receive court appointed counsel (CAC) to help expedite their matters. The Court did receive an additional $25,000 in grant funding for in-custody CAC but those funds are for in-custody hearings only. Once released, the Court pays for all court appearances by CAC. Page 317 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale Not applicable Page 318 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total Court Service Programs Manager 10%%%75%%%15%100% Restorative Justice Operational Costs 25%%%60%%%15%100% Court Service Program Costs 10%%%75%%%15%100% Court Appointed Counsel increase %%%100%%%%100%Page 319 of 374 2022 Capital Requests Fund Capital Item Request Amount -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL -$ Page 320 of 374 Questions?Page 321 of 374 Human Resources Department Page 322 of 374 1.Training & Development (T&D) FTE To design, coordinate, organize, and facilitate learning and development solutions and events. To support the workforce acquiring knowledge, skills, and abilities required for effective job performance. 2.T&D Module in UKG Pro platform To automate and optimize the T&D function with shared data, improved employee experience, and modernized employee development. 3. HR Business Partner (HRBP) FTE To support department directors and managers by aligning HR activities with City strategy and to anticipate, help to design, and then shape organizational change. 4. Diversity, Equity & Inclusion (DEI) FTE To promote training and events, bring awareness to DE&I in the workplace, and engage co-workers in DE&I conversation and training. 5. I-9 Management To provide online reporting for 24/7 visibility into I-9s. To provide confidence & control over new & historical I-9 compliance. Enhancements Page 323 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time T&D FTE +$115,000 $ T&D Module (Subscription Fee –Ongoing; Launch Fee –One Time)+$ 28,000 $ 30,000 HRBP FTE +$110,000 $ DE&I FTE +$105,000 $ I-9 Management +$$ 5,000 Totals $358,000 $35,000 Page 324 of 374 New Personnel Requests Title Salary & Benefits Division Rationale Training & Development Specialist $115,000 HR A Training & Development function allows an organization to strengthen those skills that each employee needs to improve therefore bringing all employees to a higher level so they all have enriched skills and knowledge. HR Business Partner $110,000 HR The main purpose of an HR Business Partner is to use HR capabilities to accomplish City-wide goals. An HRBP supports business managers by aligning HR activities with organizational strategy. Diversity, Equity & Inclusion Administrator $105,000 HR Promoting training and events to bring awareness to DE&I in the workplace. Engaging co-workers in DE&I conversation and training. Reviewing and developing policies and procedures that will promote workplace DE&I.Page 325 of 374 Operational Cost Requests Description Amount Division Rationale T&D Module $30,000 L $28,000 S HR Automate and optimize the T&D function with shared data, improved employee experience, and modernized employee development. (Launch fee and Subscription fee) I-9 Management $5,000 HR Helps remove the burden of manually tracking forms and files. Automated alerts so HR can take action and help reduce risk and remain compliant with continuous scanning of payroll data which will help to identify missing and expired I-9s.Page 326 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale N/A Page 327 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total T&D Module %%%%%%100%100% T&D FTE %%%%%%100%100% HRBP FTE %%%%%%100%100% DE&I FTE %%%%%%100%100% I-9 Management %%%%%%100%100%Page 328 of 374 2022 Capital Requests Fund Capital Item Request Amount -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL -$ Page 329 of 374 Questions?Page 330 of 374 Information Technology Department Page 331 of 374 1.Internal Process Improvements (Ongoing improvement) Streamline IT processes to provide consistency in services to improve user experience. 2. Business Process Improvements Evaluating current business processes to ensure that our systems maximize efficiency, accuracy and effectiveness. 3. Cyber/Data Security Protect systems and data to reduce the risks of exposer by implementing industry best practices. 4. Data Privacy Ensuring that confidential data is protected by following industry best practice, laws and regulations. 5.Mobility (Office Anywhere) Making sure that users have the tools and access to perform their job duties with an internet connection. Enhancements Page 332 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time Software Maintenance and Support -$177,915 $ Totals -$177,915 $0 Page 333 of 374 New Personnel Requests Title Salary & Benefits Division Rationale No new personnel Requests Page 334 of 374 Operational Cost Requests Description Amount Division Rationale No Operational Cost requests Page 335 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale No Fee/Rate Increases Page 336 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total Internal Process Improvements %%%%%%100%100% Cyber/Data Security %%%%%%100%100% Business Process Improvements %%%%%%100%100% Data privacy %%%%%%100%100% Mobility %%%%%%100%100%Page 337 of 374 2022 Capital Requests Fund Capital Item Request Amount -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL -$ Page 338 of 374 Questions?Page 339 of 374 Community Development Department Page 340 of 374 1.UDC Update Complete CodeNext (UDC Update) in 2022 with additional funds for public engagement. 2. DRCOG Mobility/ Infrastructure Grant Obtain a grant from DRCOG for mobility and infrastructure. Focus will be on CityCenter. Grant requires a $41,000 local match. 3. Energy Efficiency Englewood Grant Enhancement Supplement CDBG funding for Energy Efficiency Englewood (E3) grant program with allocation from Fund 46 Housing Rehabilitation Fund to reduce/eliminate waiting list. 4. Economic Development Strategic Plan Retain a consultant to develop an Economic Development Strategic Plan in collaboration with staff. Enhancements Page 341 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time CodeNext: UDC Update +$$125,000 Energy Efficiency Englewood (E3) Grant Enhancements +$$80,000 Match –DRCOG Mobility/Infrastructure Grant +$$41,000 Economic Development Strategic Plan +$$25,000 Totals +$0 $271,000 Page 342 of 374 Operational Cost Requests Description Amount Division Rationale CodeNext: UDC Update $125,000 Planning Project started mid-2021. Anticipate expending $100,000 of $200,000 budgeted in 2021. Savings of $100,000 in 2021. Remainder of $100,000 in 2022. Anticipate public outreach / mailings, etc. for additional $25,000. Energy Efficiency Englewood (E3) Grant Enhancements $80,000 Administration Supplement CDBG funding with Fund 46 Housing Rehabilitation to reduce/eliminate waiting list. Short-Term Rental Monitoring $20,000 Planning Contract with LodgingRevs to monitor short-term rentals in the city. Partnership with RTD /Englewood for Trolley TBD Administration Cost-share with RTD for continued operations of the Englewood Trolley.Page 343 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale Development Fees 10.8%$41,550 Comparable with surrounding communities; includes recording fee. Last increased in 2018. Building Permit Fees 1.1%$5,000 Comparable with surrounding communities. Last increased in 2018.Page 344 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total CodeNext: UDC Update 20%0%5%5%20%10%40%100% Match -DRCOG Mobility/Instructure Grant 30%10%0%10%20%30%0%100% Energy Efficiency Englewood Grant Enhancement 50%0%0%10%40%0%0%100% Economic Development Strategic Plan 20%0%10%10%20%15%25%100%Page 345 of 374 Questions?Page 346 of 374 Communications Department Page 347 of 374 1.Marketing Specialist from PT to FT Expanding services to more departments; allow the neighborhood resources coordinator to focus on community engagement campaigns with support of the marketing specialist; maintain new online technologies, including: the website, Englewood Engaged, GovDelivery (email platform) and microsites; meet the increasing demand for new communication strategies; and increase engagement on new and existing social medial platforms. 2. Additional Printing & Annual Report Provide information on key achievements and outcomes to community members through a variety of communications strategies. Ability to reprint popular brochures like the historic walking tour brochures. Produce an annual report to engage with, and inform citizens about the city’s yearly accomplishments. Enhancements Page 348 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time Move marketing specialist from FTE to PTE +$62,000 $ Fund 2020 reclassification for Web and Social Media Specialist Position +$10,000 $ Additional Printing Money +$10,000 $ Annual Report +$15,000 $ Replenish Advertising Budget ($0 in 2021)+$15,000 $ Totals +$112,000 $0 Page 349 of 374 New Personnel Requests Title Salary & Benefits Division Rationale Marketing Specialist from PT to FT $62,000 Commun ications Expanding services to more departments, meeting the demand for new communication strategies; and supporting engagement on new and existing social medial platforms. Page 350 of 374 Operational Cost Requests Description Amount Division Rationale Printing $10,000 Communic ations Communications created a variety of brochures that will need to be reprinted in 2022. ie. Historic Walking Tour brochures. Contractor for city council meetings $15,000 Communic ations Council meetings will be transitioning from IT to communications and will require a contractor to operate new equipment and execute the meetings. Annual Report $15,000 Communic ations Update the community regarding yearly accomplishments.Page 351 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale Page 352 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total Marketing Spec. from PT to FT 20%20%30%15%5%5%5%100% Additional Printing Funding 10%10%25%5%%%50%100% Annual Report 15%%0%15%%%100%100%Page 353 of 374 2022 Capital Requests Fund Capital Item Request Amount -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL -$ Page 354 of 374 Questions?Page 355 of 374 Police Department Page 356 of 374 1.Community Relations Specialist & Police Academy Trainee(s) Advance the goals of the Police Reform Task Force 2. Victims Advocate Provide the necessary services to victims of domestic violence, abuse and other elements of criminal behavior and neglect. 3. Parking Enforcement Officer & Dispatcher Ensure the department has the capacity to effectively provide public safety services. Enhancements Page 357 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Description +/-Ongoing One Time Ballistic Rifle Plates –replacement every 5 years and is due in 2022 –In lieu of paying for this out of the 2022 budget, we intend to pay via the Donors Fund -$18,900 $ Ballistic Helmets –5 year life span –due for replacement in 2022 –In lieu of paying for this out of the 2022 budget, we intend to pay via the Donors Fund -$28,000 $ SWAT Ballistic Helmets –due for replacement –In lieu of paying for this out of the 2022 budget, we intend to pay via the Donors Fund -$11,160 $ Tasers –replacement cycle now due –we intend to purchase these items out of 2021 budget savings -$69,836 $ Continues on next pagePage 358 of 374 Personnel & Operation EnhancementsIncrease(+) / Decrease(-) Summary Continued from previous page Description +/-Ongoing One Time Community Relations Specialist +$90,380 $ Police Academy Trainee(2)+$162,026 $ Dispatcher +$83,701 $ Parking Enforcement Officer +$83,712 $ Totals +$291,923 $0 Page 359 of 374 New Personnel Requests Title Salary & Benefits Division Rationale Community Relations Specialist $90,380 1101 Police Reform recommendation. Increase volunteerism, community engagement and awareness Police Academy Trainee(2) $162,026 1105 Police Reform recommendation. Potential to develop and increase diversity within the PD while also maintaining appropriate staffing levels Dispatcher $83,701 1104 Senior Dispatch Manager has taken on considerable responsibilities since the position was developed. Promote an individual to Supervisor and backfill a Dispatch position Parking Enforcement Officer $83,712 1101 The current position was merged in to the Abandoned Vehicle Officer position resulting in a sharp decrease in parking summonses being issued.Page 360 of 374 Operational Cost Requests Description Amount Division Rationale Vehicle for Community Relations Specialist $31,200 1101 Required for continuous community engagement. Cost includes CERF costs.Page 361 of 374 Proposed Fee/Rate Increases Fee/Rate to be Changed Proposed Increase Projected Annual Revenue Rationale No changes for 2022 Page 362 of 374 Alignment with Strategic Plan Proposed Enhancements Neigh- borhoods Infra- structure Economy Safety Sustain- ability Transpor- tation Gover- nance Total Community Relations Specialist 50%%%50%%%50%100% Victim Advocate 25%%%50%%%25%100% Police Academy Trainee(s)25%%%50%%%50%100% Parking Enforcement Officer 50%%%25%%%25%100% Dispatcher 25%%%75%%%%100%Page 363 of 374 2022 Capital Requests Fund Capital Item Request Amount -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL -$ Page 364 of 374 Questions?Page 365 of 374 General Fund 2022 Enhancement Requests Summary Department +/-Ongoing One Time Administration +$103,000 $9,000 Municipal Court +$101,500 $0 Human Resources +$358,000 $35,000 Information Technology -$177,915 $0 Community Development +$0 $271,000 Communications +$112,000 $0 Police +$291,923 $0 Totals +$788,508 $315,000 Page 366 of 374 TO: Shawn Lewis, City Manager Jackie Loh, Finance Director Jennifer Nolan, Budget Administrator THRU: Brad Power, Community Development Director FROM: Wade Burkholder, Planning Manager DATE: June 2, 2021 SUBJECT: Planning and Zoning Commission CIP recommendation The Planning and Zoning Commission at its regular meeting on May 18, 2021 unanimously recommended the following Capital Improvement Projects for inclusion in the 2022 budget. Englewood P&Z Public Improvement Fund and Capital Projects Fund Tier 1 Priority Project Recommendations Project Name Funded Public Improvement Fund Parks and Rec Parking Lot Maintenance $60,000 Road and Bridge $300,000 Concrete Utility City Share $325,000 Signal Equipment Upgrade/Replacement $150,000 Concrete Program Accessible Ramps $305,473 Alley Maintenance $300,000 Pavement Maintenance by Area $1,500,000 Floyd & Elati Intersection Improvements $350,000 Traffic Sign Inventory $40,000 W. Dartmouth Traffic Calming $135,000 Total PIF $3,465,473 Capital Improvement Fund Network Development IT $150,000 PC Replacement IT $90,000 Fiber Network $300,000 Page 367 of 374 2 Englewood P&Z Public Improvement Fund and Capital Projects Fund Tier 1 Priority Project Recommendations Emerald Ash Borer Mitigation $50,000 Facilities and Operations $844,500 ADA Compliance Projects $100,000 Art $15,345 Total CPF $1,534,527 Total PIF & CPF $5,000,000 Projects prioritized as Tier 1 by Department Directors within the Conservation Trust Fund, Open Space Fund, Storm Water Drainage Fund, Golf Course Fund, Concrete Utility Fund and the Service Center Fund were also presented and discussed. As each of these Funds have dedicated revenue sources, the Planning and Zoning Commission did not make any changes to the recommended projects within these Funds. The Planning and Zoning Commission expressed their appreciation for the opportunity to review the Multi-Year Capital Improvement Plan for the City of Englewood. Page 368 of 374 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Tamara Niles DEPARTMENT: City Attorney's Office DATE: June 14, 2021 SUBJECT: Executive Session for Legal Advice under C.R.S. Section 24-6- 402(4)(b). DESCRIPTION: Executive Session for Legal Advice RECOMMENDATION: The City Attorney recommends Council adjourn into executive session for a conference with the City Attorney and for the purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-402(4)(b); Updating on the status of claims and litigation in which the city is involved. PREVIOUS COUNCIL ACTION: none. SUMMARY: Executive session for City Council to receive an update on the status of claims and litigation in which the city is involved. Script for recessing into executive session. ATTACHMENTS: Script for recessing into executive session. Page 369 of 374 EXECUTIVE SESSION MOTION FORM (Note: 2/3 quorum present must vote yes to pass any motion to go into executive session; and an executive session may only occur at a regular or special meeting of the body.) If 7 members are present 5 members must vote yes If 6 members are present 4 members must vote yes If 5 members are present 4 members must vote yes I MOVE TO GO INTO EXECUTIVE SESSION: ____X____ For a conference with the City Attorney and for the purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-402(4)(b); Updating on the status of claims and litigation in which the city is involved. Also present at this executive session are the following persons: Mayor Pro Othoniel Sierra Council Member Joe Anderson Council Member Dave Cuesta Council Member Steven Ward Council Member Cheryl Wink Council Member Rita Russell City Manager Shawn Lewis City Attorney Tamara Niles May I have a second? VOTE We will now exit this meeting and join the ZOOM link provided Page 370 of 374 ANNOUNCEMENT 1 BEFORE EXECUTIVE SESSION COMMENCES ANNOUNCEMENT TO BE MADE BY PRESIDING OFFICER AT THE BEGINNING OF THE EXECUTIVE SESSION (MAKE SURE THE TAPE RECORDER IS TURNED ON; DO NOT IT OFF DURING THE EXECUTIVE SESSION UNLESS SO ADVISED BY THE CITY ATTORNEY) TURN ON RECORDING Today’s date is June 14, 2021, and the time is ______________________. For the record, I am Mayor Linda Olson. As required by the Open Meetings Law, this executive session is being electronically recorded Also present at this executive session are the following persons: Mayor Pro Othoniel Sierra Council Member Joe Anderson Council Member Dave Cuesta Council Member Steven Ward Council Member Cheryl Wink Council Member Rita Russell City Manager Shawn Lewis City Attorney Tamara Niles This is an executive session for the following purpose: This is an executive session for a conference with the City Attorney and special counsel for the purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-402(4)(b); on the topic of potential litigation I caution each participant to confine all discussion to the stated purpose of the executive session, and that no formal action may occur in the executive session If at any point in the executive session any participant believes that the discussion is going outside the proper scope of the executive session, please interrupt the discussion and make an objection. Page 371 of 374 ANNOUNCEMENT 2 ATTORNEY CLIENT PRIVILEGED INFORMATION ANNOUNCEMENTS TO BE MADE AT THE BEGINNING OF EXECUTIVE SESSION FOR LEGAL ADVICE, OR FOR THE DISCUSSION OF LEGAL ADVICE DURING AN EXECUTIVE SESSION WHOSE STATED PURPOSE IS A SUBJECT OTHER THAN LEGAL ADVICE (make sure Announcement No. 1 has been made first) By City Attorney: As City Attorney, it is my opinion that the discussion of the matter announced in the motion to go into executive session constitutes a privileged attorney-client communication. I am therefore recommending that no further record be kept of this executive session, unless or until the privileged communication is concluded. By Presiding Officer: The City Attorney has recommended that no further record be kept of this executive session. The time is now__________ and I am turning off the tape recorder (turn off tape recorder at this time) (If the attorney-client communication has finished, but the executive session continues, TURN THE TAPE RECORDER BACK ON) By Presiding Officer: The time is now ________________and I have turned the tape recorder back on because the privileged attorney- client communication is concluded. (AT THE END OF THE EXECUTIVE SESSION, MAKE SURE ANNOUNCEMENT NO. 2 IS MADE BEFORE TURNING OFF THE TAPE RECORDER) Page 372 of 374 ANNOUNCEMENT 3 CONCLUDING AN EXECUTIVE SESSION ANNOUNCEMENT TO BE MADE BY THE PRESIDING OFFICER BEFORE CONCLUDING THE EXECUTIVE SESSION (WHILE THE TAPE RECORDER IS RECORDING). I hereby attest that this recording reflects the actual contents of the discussion at the executive session and has been made in lieu of any written minutes to satisfy the recording requirements of the Open Meetings Law. The tape will be retained by the City for a 90-day period. The time now is _______________, and this executive session is concluded. The Governing Body will now return to the open meeting (turn off recording and return to open meeting) Page 373 of 374 ANNOUNCEMENT 4 RETURN TO OPEN MEETING STATEMENT TO BE MADE BY THE PRESIDING OFFICER UPON RETURNING TO THE OPEN MEETING The time is now ____________________and the executive session has been concluded. The participants in the executive session were: Mayor Linda Olson Mayor Pro Othoniel Sierra Council Member Joe Anderson Council Member Dave Cuesta Council Member Steven Ward Council Member Cheryl Wink Council Member Rita Russell City Manager Shawn Lewis City Attorney Tamara Niles I move to close the executive session; may I have a second? VOTE For the record, if any person who participated in the executive session believes that any substantial discussion of any matters not included in the motion to go into the executive session occurred during the executive session, or that any improper action occurred during the executive session in violation of the Open Meetings Law, I would ask that you state your concerns for the record Seeing none, the next agenda item is: Page 374 of 374