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HomeMy WebLinkAbout2024-06-17 (Regular) 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 - Council Chambers Englewood, CO 80110 AGENDA City Council Regular Meeting Monday, June 17, 2024 ♦ 6:00 PM Council Dinner will be available at 5:30 p.m. To view the meeting, please follow this link to our YouTube live stream link: YouTube 1. Study Session Topic a. Director of Finance Kevin Engels and Jim Hinkle, Managing Director of Hinkle and Company, PC., will present the 2023 Annual Comprehensive Financial Report and audit results. 6:00 p.m. to 6:15 p.m. Information Presentation: 10 minutes Discussion: 5 minutes 1a documents b. Arapahoe County Commissioner Carrie Warren Gulley will be present to discuss Arapahoe County Funding Proposal. 6:15 p.m. to 7:00 p.m. Information Presentation: 15 minutes Discussion: 45 minutes 1b documents 2. Call to Order 3. Pledge of Allegiance 4. Roll Call 5. Consideration of Minutes of Previous Session a. Minutes of the Regular City Council Meeting of June 3, 2024. 5a documents 6. Appointments, Communications, Proclamations, and Recognition a. Recognition of Communications Department for receiving two National Association of Government Communicators awards for excellence in communication. b. Resolution appointing members to various boards, commissions, and committees 6b documents 7. Recognition of Scheduled Public Comment Public Comment will begin shortly after 7:00 p.m. The deadline to sign up to speak for Scheduled Public Comment is Wednesday by 5 p.m., prior Page 1 of 1797 Englewood City Council Regular Agenda June 17, 2024 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. to the meeting, through the City Clerk’s Office. This is an opportunity for the public to address City Council. There is an expectation that the presentation will be conducted in a respectful manner. Council may ask questions for clarification, but there will not be any dialogue. Please limit your presentation to five minutes. Written materials for presentation to Council may be submitted to the City Clerk. a. Kathleen Bailey, an Englewood resident, will address Council regarding need for actual 25-year rain event capacity infrastructure in the upstream half of the South Englewood Basin. 7a documents b. PJ Kolnik, an Englewood resident, will address Council regarding Title 16 Amendments. c. Jake Gilbert, an Englewood resident, will address Council. 8. Recognition of Unscheduled Public Comment If you would like to sign-up to speak virtually for public comment please visit: Zoom Registration to register or plan to attend the meeting in person. If registering to speak virtually, you will receive a unique and personalized invitation by email to join the meeting. Every speaker who wants to register should sign-up with their own email address. If you do not have an email address or if you have any questions regarding this process, please reach out to the City Clerk's Office at CityClerk@englewoodco.gov or call 303- 762-2430. Citizens may also submit written public comments to the City Clerk's Office at CityClerk@englewoodco.gov until 12 p.m. the day after the meeting. This is an opportunity for the public to address City Council. There is an expectation that the presentation will be conducted in a respectful manner. Council may ask questions for clarification, but there will not be any dialogue. Please limit your presentation to 3 minutes. Council Response to Public Comment. 9. Consent Agenda Items a. Approval of Ordinances on First Reading i. CB-21 Amendment to the Intergovernmental Joint Cooperation Agreement and Home Investment Partnerships Consortium Agreement between Arapahoe County and City of Englewood for Grant Years 2025-2027 9ai documents Staff: Department Administrator Nancy Fenton, and Arapahoe County Community Development Administrator Jeremy Fink ii. CB-22 Agreements with Evergreen-Mineral & Santa Fe, L.L.C. and the City of Littleton for City Ditch relocation and utility crossings 9aii documents Page 2 of 1797 Englewood City Council Regular Agenda June 17, 2024 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. Staff: Director of Utilities and South Platte Renew Pieter Van Ry, and Deputy Director of Business Solutions and Engineering Sarah Stone b. Approval of Ordinances on Second Reading. i. CB-18 Acceptance of an administrative grant in the amount of $18,423 for the South Metro Enterprise Zone 9bi documents Staff: Economic Development Manager Darren Hollingsworth c. Resolutions and Motions i. Award of a Contract to A-1 Chipseal for the 2024 Slurry Seal 9ci documents Staff: Deputy Director of Engineering Tim Hoos, and Capital Project Engineer II Devin Keener ii. Award of a Contract to Elite Surface Infrastructure for the 2024 Mill and Overlay 9cii documents Staff: Deputy Director of Engineering Tim Hoos, and Capital Project Engineer II Devin Keener iii. Award of a Design Contract to Otak Inc. for the Englewood Rail Trail Project 9ciii documents Staff: Deputy Director of Engineering Tim Hoos, and Capital Projects Engineer II Aram Mahmood iv. Contract for Services with Insituform Technologies, LLC for the City Ditch 60” Cured-in-Place Pipe Lining near S Windermere Street and W Belleview Avenue 9civ documents Staff: Director of Utilities and South Platte Renew Pieter Van Ry, and Deputy Director of Business Solutions and Engineering Sarah Stone v. Optimal Source Contract for Services with BC Interiors for Allen Water Treatment Plant Phase 1 Office Improvements Furniture 9cv documents Staff: Director of Utilities and South Platte Renew Pieter Van Ry, and Deputy Director of Business Solutions and Engineering Sarah Stone 10. Public Hearing Items 11. Ordinances, Resolutions and Motions a. Approval of Ordinances on First Reading i. CB-20 Development Impact Fees 11ai documents Staff: Deputy City Manager Tim Dodd b. Approval of Ordinances on Second Reading c. Resolutions and Motions Page 3 of 1797 Englewood City Council Regular Agenda June 17, 2024 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. i. Resolution to waive building fees for non-profits serving people experiencing homelessness 11ci documents Staff: Deputy City Manager Tim Dodd 12. General Discussion a. Mayor's Choice i. Executive Session for the purpose of discussing specialized details of security arrangements or investigations. § 24-6-402(4)(d), C.R.S. b. Council Members' Choice 13. City Manager’s Report 14. Adjournment Page 4 of 1797 STUDY SESSION TO: Mayor and Council FROM: Kevin Engels DEPARTMENT: Finance DATE: June 17, 2024 SUBJECT: Presentation of the 2023 Annual Comprehensive Financial Report and Audit Results DESCRIPTION: Director of Finance Kevin Engels and Jim Hinkle, Managing Director of Hinkle and Company, PC., will present the 2023 Annual Comprehensive Financial Report and audit results. RECOMMENDATION: Staff recommends that Council review the information provided in the annual financial report and provide feedback. PREVIOUS COUNCIL ACTION: The audited financial report is presented annually. SUMMARY: The city is required by charter and state law to have an annual financial audit conducted by an independent Certified Public Accounting (CPA) firm. The attached 2023 Annual Comprehensive Financial Report (ACFR) and accompanying audit letters are the result of this process. Hinkle & Company, PC., CPA’s, have issued an unmodified (“clean”) audit opinion on the City of Englewood’s financial statements for the year ended December 31, 2023. Director of Finance, Kevin Engels and audit firm representative, Jim Hinkle will be present to discuss the 2023 audit results and answer Council questions. ANALYSIS: The attached 2023 ACFR report includes information on all of the operations of the City.  At the close of 2023, the total assets of the City exceeded its liabilities by $251.4 million ($122.7 million in governmental activity net position and $128.7 million in business-type activity net position). Of the governmental activities net position total, $21.5 million, or 17.5%, is unrestricted and may be used to meet the City’s obligations to the public and creditors. Similarly, $70.8 million, or 55.4%, of business-type activity net position is unrestricted.  The City’s total net position increased by $13.1 million, or 5.5% compared to 2022. Net position of the City’s governmental activities increased $10.2 million, or 9.1%. Net position of the business-type activities increased $2.9 million, or 2.3% when compared to 2022. Page 5 of 1797  The total cost of the City’s programs increased $14.9 million, or 14.8%, compared to 2022. The cost of governmental activities program expenses decreased $7.5 million to $73.3 million, and the cost of business-type activities increased $7.5 million or 21.0%.  Total City revenues increased $5.8 million or 4.7%, compared to 2022. Governmental activity revenues increased $1.9 million, or 2.3%, to $83.5 million while revenues of business-type activities increased $3.9 million or 9.3% to $46.1 million compared to 2022. The City’s ACFR reports are submitted to the Government Financial Officers Association’s (GFOA) certification program. This program reviews annual reports of governmental entities for compliance with generally accepted accounting principles and applicable legal requirements. If these requirements are met, the city’s annual report is eligible for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting award. We are pleased to report that the city’s 2022 ACFR report received this award. This was the 40th consecutive year that the city has received this award. 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. COUNCIL ACTION REQUESTED: Staff will review the annual financial report with Council and welcomes questions and discussion. FINANCIAL IMPLICATIONS: There is no fiscal impact associated with this action. CONNECTION TO STRATEGIC PLAN: Governance: Assist the City to become fiscally accountable, effective and efficient. OUTREACH/COMMUNICATIONS: The annual report will be posted on the City's website. ATTACHMENTS: 2023 Annual Comprehensive Financial Report and accompanying audit reports Page 6 of 1797 Annual Comprehensive Financial Report 2023 City of Englewood 1000 Englewood Parkway Englewood, CO 80110 www.englewoodco.gov Year ended December 31, 2023 Page 7 of 1797 CITY OF ENGLEWOOD, COLORADO ANNUAL COMPREHENSIVE FINANCIAL REPORT For Fiscal Year Ended December 31, 2023 Prepared by the Finance Department: Kevin Engels, Director of Finance Christine Hart, Finance Manager Denise Atencio-Esquibel, Senior Accountant Jenny Nolan, Budget Manager Trudi Peepgrass, Procurement Administrator Curt Osborne, Revenue and Tax Audit Supervisor 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 8 of 1797 ANNUAL COMPREHENSIVE FINANCIAL REPORT Year Ended December 31, 2023 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................ 5 Principal Officials .................................................................................................................................... 9 Organization Chart ................................................................................................................................ 10 2022 Certificate of Achievement for Excellence in Financial Reporting ................................................ 11 FINANCIAL SECTION Independent Auditor’s Report ........................................................................................................... 12 Management’s Discussion and Analysis .......................................................................................... 16 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ......................................................................................................... 31 Statement of Activities .............................................................................................................. 32 Fund Financial Statements Governmental Funds Balance Sheet ................................................................................................................... 33 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .............................................................................................................. 34 Statement of Revenues, Expenditures and Changes in Fund Balances ........................... 35 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................ 36 Proprietary Funds Statement of Net Position .................................................................................................. 38 Statement of Revenues, Expenses and Changes in Fund Net Position ............................ 39 Statement of Cash Flows ................................................................................................... 40 Fiduciary Funds Statement of Fiduciary Net Position ................................................................................... 42 Statement of Changes in Fiduciary Net Position................................................................ 43 Notes to the Financial Statements ............................................................................................... 44 Required Supplementary Information Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund ............................................................................... 84 Schedule of Changes in the Net Pension Liability-Nonemergency Pension ................................ 87 Schedule of Changes in the Net Pension Liability-Police Officers Old Hire Pension Plan ........... 88 Schedule of Changes in the Net Pension Liability-Firefighters Old Hire Pension Plan................. 89 Schedule of Changes in the Net Pension Liability-Volunteer Firefighters Pension Plan .............. 90 Schedule of Proportionate share of Net Pension Liability-Police Officers SWDB Pension Plan .. 91 Schedule of Proportionate share of Net Pension Liability-Police Officers Hybrid Pension Plan ... 92 Schedules of Employer Contributions .......................................................................................... 93 Schedules of Cost-Sharing Multiple Employer Pension Plans ..................................................... 94 OPEB Schedule of Funded Status and Funding Progress ........................................................... 95 1 Page 9 of 1797 Page Notes to the Required Supplementary Information .................................................................... 96 Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet ........................................................................................................ 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................ 100 Schedules of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds – Budget and Actual Special Revenue Funds – Project Budget and Actual Conservation Trust Fund ................................................................................................. 101 Open Space Fund ........................................................................................................... 102 Special Revenue Funds – Budget and Actual Donors Fund .................................................................................................................... 103 Malley Center Trust Fund ................................................................................................ 104 Parks and Recreation Trust Fund .................................................................................... 105 Debt Service Funds – Budget and Actual General Obligation Bonds Debt Service Fund ................................................................. 106 Capital Projects Funds – Project Budget and Actual Public Improvement Fund................................................................................................ 107 Capital Projects Fund ...................................................................................................... 108 Police Headquarters Construction ................................................................................... 109 Schedules of Revenues, Expenditures and Changes in Funds Available – Enterprise Funds – Budget and Actual (Budgetary Basis) Water Fund ...................................................................................................................... 111 Sewer Fund ..................................................................................................................... 112 Golf Course Fund ............................................................................................................ 113 Storm Drainage Fund ...................................................................................................... 114 Concrete Utility Fund ....................................................................................................... 115 Housing Rehabilitation Fund ........................................................................................... 116 Internal Service Funds Combining Statement of Net Position ................................................................................ 117 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ...... 118 Combining Statement of Cash Flows ................................................................................. 119 Schedules of Revenues, Expenditures and Changes in Funds Available – Internal Service Funds – Budget and Actual (Budgetary Basis) ServiCenter Fund ............................................................................................................ 120 Capital Equipment Replacement Fund ............................................................................ 121 Employee Benefits Fund ................................................................................................. 122 Risk Management Fund .................................................................................................. 123 2 Page 10 of 1797 Page Component Units Englewood McLellan Reservoir Foundation, Inc. Statement of Net Position ......................................................................................... 125 Statement of Revenues, Expenses and Changes in Fund Net Position ................... 126 Statement of Cash Flows ......................................................................................... 127 Englewood Urban Renewal Authority Balance Sheet .......................................................................................................... 128 Statement of Revenues, Expenditures and Changes in Fund Balance .................... 129 Statement of Cash Flows ......................................................................................... 130 Englewood Downtown Development Authority Balance Sheet .......................................................................................................... 130 Statements of Revenues, Expenditures and Changes in Fund Balance .................. 131 Statement of Cash Flows ......................................................................................... 132 3 Page 11 of 1797 STATISTICAL SECTION Schedule Number Page 1 Net Position by Component (accrual basis of accounting) .............................................. 134 2 Changes in Net Position (accrual basis of accounting) ................................................... 135 3 Fund Balances, Governmental Funds (modified accrual basis of accounting) ................ 137 4 Changes in Fund Balances, Governmental Funds (modified accrual basis of accounting) ..................................................................... 138 5 Tax Revenues by Source, Governmental Funds ............................................................. 139 6 Assessed Value and Estimated Actual Value of Taxable Property .................................. 140 7 Direct and Overlapping Property Tax Rates .................................................................... 141 8 Principal Property Tax Payers ......................................................................................... 142 9 Property Tax Levies and Collections ............................................................................... 143 10 Sales Tax Collections by Category .................................................................................. 144 11 Ratios of Outstanding Debt by Type ................................................................................ 145 12 Ratios of General Bonded Debt Outstanding .................................................................. 146 13 Direct and Overlapping Governmental Activities Debt ..................................................... 147 14 Legal Debt Margin Information ........................................................................................ 148 15 Pledged Revenue Coverage: Sewer Fund .............................................................................................................. 149 Golf Course Fund ..................................................................................................... 150 Storm Drainage Fund ............................................................................................... 151 16 Schedules of Future Debt Service Requirements ............................................................ 152 17 Demographic and Economic Statistics ............................................................................ 153 18 Principal Employers ......................................................................................................... 154 19 Full-time Equivalent Employees by Function/Program .................................................... 155 20 Operating Indicators by Function/Program ...................................................................... 156 21 Capital Asset Statistics by Function/Program .................................................................. 157 Other Information Local Highway Finance Report ...................................................................................................... 158 4 Page 12 of 1797 June 17, 2024 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 is pleased to submit the Annual Comprehensive Financial Report of the City of Englewood, Colorado (the City) for the year ended December 31, 2023. 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, 2023. 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. 5 Page 13 of 1797 City Profile Located on the southern border of Denver, Colorado’s capital city, Englewood is approximately seven square miles and home to approximately 34,000 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 McLellan Reservoir Foundation, Inc. (EMRF) and Englewood Downtown Development Authority (EDDA) are discretely reported in separate columns of the government-wide financial statements to emphasize that they are legally separate from the City. The Englewood Environmental Foundation, Inc. (EEF) was dissolved in 2023 and further discussion is provided in the notes to the financial statements. Each discretely presented component unit has a December 31 year-end. Separate financial statements are not prepared for EURA, EMRF, EEF or the EDDA. 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. 6 Page 14 of 1797 State and Local Economy Colorado The 2024 forecast is taken from the Colorado Business Economic Outlook 2024 prepared by the Business Research Division of the University of Colorado Leeds School of Business. According to the Colorado Business Economic Outlook 2024 report, Colorado performed better than most of the states in 2023. The state’s GDP increased 2.2% year-over-year in the second quarter, ranking the state 16th in the nation. This compares to a national GDP increase of 1.6%. Colorado’s unemployment rate is estimated at 3.2% in 2023 and is expected to increase to 3.4% in 2024. In 2024, Colorado is projected to add 61,600 people according to the State Demography Office. Growth will come from net migration of 40,000 and natural increase of 21,500. Metro Denver The 2023-2024 economic update for the seven-county Denver Metro Area (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson) is from the September 2023 Economic & Revenue Forecast report prepared by the Colorado Legislative Council (CLC). The CLC is non-partisan and provides the economic research analysis for the Colorado General Assembly. The Colorado economy continues to grow in 2023; Even after 11 interest rate increases (totaling 5.25%) by the Federal Reserve Board since March 2022 in order to cool inflationary price increases, Colorado is experiencing slower easing of inflationary pressures as compared to the rest of the nation due in part to the fluctuations in energy and housing prices. Colorado's headline inflation or the total inflation in the economy peaked in early 2022 and is expected to be slightly higher than the rest of the nation at 4.9 percent in 2023 and 3.2 percent in 2024. The Colorado labor market like that of the nation is resilient; however, it is experiencing job losses in sectors vulnerable to interest rate increases such as finance, insurance, real estate, information and construction. Job growth in the metro Denver area is up 4.5 percent as compared to the same period a year ago and the following sectors have been affected: professional and business services and leisure and hospitality. As of June 2023, the metro Denver unemployment rate was 2.8 percent. The 2023 Denver Metro Area housing market prices, in the first quarter, were up 3.5 percent as compared to levels experienced a year ago. Home price increases have steadily slowed or reversed each quarter since the third quarter of last year. The number of single family homes available for sale in the Denver Metro Area was up 34.6 percent for the same month one year prior and home sales were down 18.5 percent. Also, during the first half of 2023, the Denver Metro Area residential construction activity grew. Permits for new single-family residential construction in the Metro Denver Area rose 38.9 percent year-to-date June 2023, and relative to the same period last year. The lack of affordability continues to hamper new residential construction. Denver Metro Area homebuyers are finding more affordable options in the suburban and exurban areas. Douglas, Arapahoe and Adams Counties are experiencing the highest levels of construction activity. The nonresidential construction market in the metro Denver has slowed during the first half of 2023. High vacancy rates, in the Denver Metro Area, continues the downward pressure on new office space demand. Future nonresidential building is expected to shift from office space and brick-and-mortar retail establishments to favor development that supports e-commerce, such as warehousing space. In addition, rising costs and shortages of both labor and construction materials, combined with rising interest rates, will continue to restrain construction activity. Long-term Financial Planning At the end of the year, assigned and unassigned fund balances for the general fund totaled $22.5 million, or 34.0% of total General Fund revenues. Total 2024 General Fund revenues, including transfers, are estimated at $69.5 million or $3.5 million more than 2023 actual revenues. Total 2024 general fund expenditures are budgeted at $67.1 million or $4.0 million more than the 2023 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. 7 Page 15 of 1797 Relevant Financial Policies General Fund Balance The unassigned fund balance target for the General Fund is 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 $95,000 at the end of 2023. 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 comprehensive annual financial report for the fiscal year ended December 31, 2022. This was the 40th 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 Kevin Engels Director of Finance 8 Page 16 of 1797 City of Englewood, Colorado Principal Officials Elected Officials City Council Mayor..........................................................................Othoniel Sierra, District 1 Mayor Pro-Tem.............................................................Joe Anderson, District 3 Council Member..............................................Chelsea Nunnenkamp, District 2 Council Member...............................................................Steve Ward, District 4 Council Member...............................................................Rita Russell, At-Large Council Member..............................................................Tena Prange, At-Large Council Member.................................................................Kim Wright, At-Large Municipal Judge .............................................................................. Joseph Jefferson City Officials City Manager ....................................................................................... J. Shawn Lewis Deputy City Manager………………………………………………..……………..Tim Dodd City Attorney ............................................................................................ Tamara Niles Director of Communications ......................................................... Christopher Harguth Director of Community Development .......................................................... Brad Power Director of Finance .................................................................................. Kevin Engels Director of Information Technologies ......................................................... Joe Isenbart Director of Human Resources ............................................................... Shawn Weiske Municipal Court Administrator .............................................................. Kennetha Julien Director of Parks, Recreation, Library and Golf ……………..……...Christina Underhill Police Chief .............................................................................................. Sam Watson Director of Public Works ........................................................................ Victor Rachael Director of Utilities and South Platte Renew ………………………………Pieter VanRy 9 Page 17 of 1797 Citizens of Englewood City Council Municipal Judge Municipal Court City Manager City Attorney Deputy City Attorney Prosecutor's OfficeDeputy 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 Keep Englewood Beautiful City of Englewood, Colorado - Organizational Chart Englewood Housing Authority NonEmergency Retirement Board Water & Sewer Board Budget Advisory Committee Parks, Recreation, Library and Golf Department Police Department Public Works Department South Platte Renew Treatment Plant Fire Contract Information Technology Department Utilities Department Communications Department 10 Pa g e 1 8 o f 1 7 9 7 Government Finance Officers Association Certificate of Achievement for E xcellence in Financial Reporting Presented to City of Englewood Colorado For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 Executive Director/CEO 11 Page 19 of 1797 Independent Auditor’s Report Honorable Mayor and Members of the City Council City of Englewood Englewood, Colorado Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Englewood (the City) as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying 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 the aggregate remaining fund information of the City as of December 31, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (GAS), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. Denver Office: 750 W. Hampden Avenue, Suite 400 Englewood, Colorado 80110 TEL: 303.796.1000 FAX: 303.796.1001 www.HinkleCPAs.com Office Locations: Colorado Springs, CO Denver, CO Frisco, CO Tulsa, OK 12 Page 20 of 1797 Honorable Mayor and Members of the City Council City of Englewood Page 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and GAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 13 Page 21 of 1797 Honorable Mayor and Members of the City Council City of Englewood Page 3 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information listed in the table of contents is presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information listed in the table of contents is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information listed in the table of contents is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section, other information, local highway finance report and statistical section listed in the table of contents but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 14 Page 22 of 1797 Honorable Mayor and Members of the City Council City of Englewood Page 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2024 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Englewood’s internal control over financial reporting and compliance. Englewood, Colorado June 6, 2024 15 Page 23 of 1797 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 (ACFR), this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2023. 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 total assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of 2023 by $251.4 million ($122.7 million is in governmental activity net position and $128.7 million in business-type activity net position). For 2023, net deferred outflows and deferred inflows of resources equaled ($4.5 million) for governmental activities and $180,000 for business-type activities. Of the governmental activities net position total, $21.5 million, or 17.5%, is unrestricted and may be used to meet the City’s obligations to the public and creditors. Similarly, $70.8 million, or 55.4%, of business-type activity net position is unrestricted. • The City’s total net position increased by $13.1 million, or 5.5% compared to 2022. Net position of the City’s governmental activities increased $10.2 million, or 9.1%. Net position of the business-type activities increased $2.9 million, or 2.3%, from 2022. • The total cost of the City’s programs increased $14.9 million, or 14.8%, compared to 2022. The cost of governmental activities program expenses increased $7.5 million to $73.3 million, and the cost of business-type activities increased $7.5 million or 21.0%. • Total revenues increased $5.8 million or 4.7%, compared to 2022. Governmental activities revenues increased $1.9 million, or 2.3%, to $83.5 million while revenues of business-type activities increased $3.9 million or 9.3% to $46.1 million compared to 2022. • The City’s governmental funds reported combined ending fund balances of $59.1 million, an increase of $2.7 million when compared to 2022. Of the combined ending governmental fund balances, approximately 81.6% or $48.3 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 $24.8 million as of December 31, 2023, of which $2.2 million is restricted for TABOR emergencies, $95,000 is committed to Long Term Asset Reserve and $17.2 million is unassigned and $5.3 million is appropriated for subsequent years. • The Public Improvement Fund has a fund balance of $20.6 million that is committed to various capital projects. Primary sources of funding for the Public Improvement Fund are provided by building use taxes and transfers from other funds. • The net pension liability reported in the City’s governmental activities for 2023 is $10.5 million compared to $5.9 million in 2022. 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 16 Page 24 of 1797 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 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 Downtown Development Authority (EDDA), the Englewood Environmental Foundation, Inc. (EEF) and the Englewood McLellan Reservoir Foundation, Inc. (EMRF). All four (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 ten 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 Public Improvement Fund, which are considered to be major funds. Data from the other eight 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, vehicle replacement and maintenance, employee benefits 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. 17 Page 25 of 1797 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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $251.4 million at the close of 2023. Governmental activities make up $122.7 million or 44.5% of these assets, with business-type activities making up the remaining $128.7 million or 55.5%. Total net position increased by $13.1 million in 2023. The increase is comprised of the following: • Total assets and deferred outflows of resources increased by $6.7 million during 2023. Governmental activities assets and deferred outflows increased by $9.0 million. The primary reason is due to the dissolution of the Englewood Environmental Foundation and transfer of assets to the City. Business-type activities assets and deferred outflows decreased by ($2.2) million primarily due to increased maintenance and contractual service costs. • Total liabilities and deferred inflows of resources decreased by ($6.3) million due primarily to yearly debt service payments of $10.5 million. Capital assets make up 44.6% or $169.7 million of total assets. This represents the City’s investment in capital assets (e.g., land, buildings, machinery and equipment). Net Capital assets are reported less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of Table 1 City of Englewood Summary of Net Position Governmental Business-type Total Activities Activities Primary Government 2023 2022 2023 2022 2023 2022 Assets Current and other assets 81,588,253$ 76,288,491$ 129,297,019$ 133,962,133$ 210,885,272$ 210,250,624$ Capital assets 95,279,202 90,936,632 74,456,947 71,262,462 169,736,149 162,199,094 Total assets 176,867,455 167,225,123 203,753,966 205,224,595 380,621,421 372,449,718 Total deferred outflows of resources 6,374,457 6,993,135 403,252 1,167,222 6,777,709 8,160,357 Liabilities Long-term liabilities 38,624,817 41,178,521 49,231,061 57,124,636 87,855,878 98,303,157 Other liabilities 11,061,834 9,156,492 25,988,203 23,391,368 37,050,037 32,547,860 Total liabilities 49,686,651 50,335,013 75,219,264 80,516,004 124,905,915 130,851,017 Total deferred inflows of resources 10,869,114 11,420,118 222,757 40,596 11,091,871 11,460,714 Net Position Net investment in capital assets 69,457,070 58,795,694 55,409,732 51,085,653 124,866,802 109,881,347 Restricted 11,090,504 29,784,220 2,465,772 215,772 13,556,276 29,999,992 Unrestricted 42,138,573 23,883,213 70,839,693 74,533,792 112,978,266 98,417,005 Total net position 122,686,147$ 112,463,127$ 128,715,197$ 125,835,217$ 251,401,344$ 238,298,344$ 18 Page 26 of 1797 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, $13.6 million or 5.4% represents resources that are subject to contractual or legislative restrictions on how they may be used. The unrestricted net position of the City’s utility funds is $70.8 million or 55.0% may be used to meet the government’s ongoing obligations to citizens and creditors. Of the $42.3 million of unrestricted net position attributed to governmental activities, $7.0 million represents the unrestricted net position of the City’s internal service funds. B. Analysis of Changes in Net position As presented in Table 2, the City of Englewood’s overall net position increased by $13.1 million during 2023. This change is explained in the governmental and business-type activities discussion below. Governmental Activities • Net position of governmental activities increased by $10.2 million during 2023. • Governmental revenues increased by approximately $1.9 million or 2.3% compared to 2022. This increase is primarily due to $1.1 million of additional tax collections during 2023 and a $3.9 million increase in investment earnings. 19 Page 27 of 1797 • Governmental expenses increased by approximately $7.5 million or 11.4% from 2022. The primary reason for this increase was a 7.0% wage increase for all employees and continued inflationary pressures for other good and services. Table 2 City of Englewood Summary of Changes in Net Position For Years Stated Governmental Business-type Total Activities Activities Primary Government Revenues 2023 2022 2023 2022 2023 2022 Program revenues Permits, fees, fines and charges for services 8,790,675$ 8,352,233$ 43,015,021$ 40,430,811$ 51,805,696$ 48,783,044$ Operating grants and contributions 4,093,144 4,093,144 130,100 659,683 4,223,244 4,752,827 Capital grants and contributions 2,178,849 2,178,849 827,891 1,819,397 3,006,740 3,998,246 General Revenues Taxes 60,764,834 59,641,778 - - 60,764,834 59,641,778 Investment earnings 2,527,763 (1,391,610) 2,078,753 (795,181) 4,606,516 (2,186,791) Other 5,144,284 8,715,713 - - 5,144,284 8,715,713 Total revenues 83,499,549 81,590,107 46,051,765 42,114,710 129,551,314 123,704,817 Expenses General government 11,205,861 16,471,606 - - 11,205,861 16,471,606 Public Safety 28,300,891 23,737,632 - - 28,300,891 23,737,632 Public works 23,177,921 14,185,096 - - 23,177,921 14,185,096 Culture and recreation 9,608,846 10,299,425 - - 9,608,846 10,299,425 Interest on long-term debt 980,589 1,095,198 - - 980,589 1,095,198 Water - - 19,481,822 13,396,277 19,481,822 13,396,277 Sewer - - 17,720,193 15,774,501 17,720,193 15,774,501 Golf Course - - 2,853,574 2,427,529 2,853,574 2,427,529 Storm - - 2,322,337 2,914,246 2,322,337 2,914,246 Concrete - - 705,668 738,228 705,668 738,228 Housing rehabilitation - - 88,191 423,694 88,191 423,694 Total expenses 73,274,108 65,788,957 43,171,785 35,674,475 116,445,893 101,463,432 Change in Net Position 10,225,441 15,801,150 2,879,980 6,440,235 13,105,421 22,241,385 Net Position - beginning 112,460,706 96,659,556 125,835,217 119,394,982 238,295,923 216,054,538 Net Position - ending 122,686,147$ 112,460,706$ 128,715,197$ 125,835,217$ 251,401,344$ 238,295,923$ 20 Page 28 of 1797 The following graphs provide visual representations of the expenses and revenues for governmental activities for 2023. 21 Page 29 of 1797 Business-type Activities Overall the Business-type activities increased the total net position of the City by $2.9 million in 2023. The water fund experienced a decrease in net position of ($4.9) million compared to an increase of $1.0 million in 2022. Water rates were increased 4% on January 1, 2023. The rate increase was offset by an increase in contractual service costs related to long-term planning for increased regulatory requirements. The sewer fund saw an increase in net position of $5.2 million compared to an increase of $5.6 million in 2022. The fund experienced net operating income of $9.2 million in 2023 compared to $8.2 million in 2022. A sewer rate increase of 4% was implemented in 2023. 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 golf course fund experienced an increase in net position of $97,000 in 2023 compared to an increase of $164,000 in 2022. The storm drainage, and concrete utility funds had net operating incomes of $2,330,000 and $402,000 respectively when compared to 2022. The housing rehabilitation fund had a net operating loss of ($82,000) in 2023 due to repayment of program income to Arapahoe County. 22 Page 30 of 1797 The following graphs provide visual representations of the expenses and revenues for business-type activities for 2023. 23 Page 31 of 1797 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, 2023, the City’s governmental funds reported combined ending fund balances of $59.1 million, an increase of $2.7 million, or 5.6%, compared to 2022. $48.2 million (82.6%) constitutes committed, assigned and unassigned balances, which are available for spending at the City’s discretion. Of the committed fund balance, $95,000 million is for the Long-Term Asset Reserve (LTAR) balance and $20.1 million is for capital projects. The remainder of fund balance is restricted for the following purposes: Restricted for parks and recreation $5,800,000 Restricted for law enforcement 2,800,000 Restricted for debt service 90,000 Restricted for TABOR emergency 2,210,000 The General Fund is the primary operating fund of the City. At the end of 2023, unassigned fund balance of the General Fund was $17.2 million while total fund balance was $24.8 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 35.6% of total General Fund expenditures, down from 38.2% in 2022, while total fund balance represents 39.2% of that same amount, down from 42% in 2022. The total fund balance of the City’s General Fund increased by $683,000 during 2023. Revenues increased by $1.3 million or approximately 2.0% and expenditures increased $8.6 million or approximately 15.7%. Key factors are as follows: •Sales and use tax revenues increased by $2.0 million or 4.9%. This increase included a voter approved sales tax increase of .03%. 2022 included several one-time receipts amounting to approximately $2.4 million. •Expenditure increases were partially due to salary increases of 7% for all city employees and approximately $3.0 million of additional spending directly related to the sales tax increase. That spending was dedicated to street repairs amounting to $2.0 million and $1.0 million dedicated to alternative policing practices (see footnotes for more details). •The original 2023 expenditure budget adopted in 2022 for the General Fund was $61.9 million. Actual expenditures were $2.2 million less than the final amended budget amount, a 3.4% favorable variance. This is primarily due to vacant positions and other anticipated spending that was delayed until future years. Actual revenues were $1.9 million more than the final amended budget amount, a 2.9% variance. This increase was primarily due to an increase in sales and use tax receipts in the amount of $2.0 million. Charts 6 and 7 illustrate the Budget and Actual Revenue and Expenditures for the General Fund. 24 Page 32 of 1797 25 Page 33 of 1797 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. The Public Improvement Fund is used to provide funding of capital projects for the City. City Council has allocated funds from the General Fund to complete various capital projects. General Fund transfers for years 2022, and 2023 were $9,845,000 and $3,175,000 respectively. An additional transfer of $4,500,000 is approved for 2024. B. Proprietary funds. The City’s proprietary funds provide the same type of information in the government-wide financial statements, but in more detail. Net position of the enterprise operations at December 31, 2023 follow: Other factors concerning the finances of the enterprise funds have already been addressed in the discussion of the City’s business-type activities. Change in Net Position Net Position Water 39,726,883$ (4,928,786)$ Sewer 49,890,193 5,203,466 Golf 13,544,218 97,261 Storm drainage 7,231,543 1,853,952 Concrete utility 14,565,068 506,589 Housing rehabilitation 2,477,154 94,077 Total net position 127,435,059$ 2,826,559$ 26 Page 34 of 1797 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, 2023 amounts to $170 million (net of accumulated depreciation). This investment in capital assets includes land, plant, buildings, improvements, machinery and equipment, roads and bridges. The total increase in capital assets for the current year was $12.0 million, or 7.7%. Net capital assets of governmental activities increased approximately $8.9 million while business-type activities increased by $3.2 million. Major capital asset activity during 2023 included the following: Governmental Activities: • $10.0 million in land and improvements were added related to the component unit dissolution as detailed in the footnotes to the financials. These additions were partially offset by normal yearly depreciation. Business-type Activities • $680,000 in new concrete sidewalks and alley pans were installed in the City • The Water fund added $1.7 million for building construction • The Storm Water fund purchased $689,000 of land and constructed $1.1 million of drainage infrastructure • The Storm Water fund has $1.1 million of new infrastructure projects under construction • These additions were offset by $2.4 million of depreciation on existing assets The following tables provide comparative information on the City’s capital assets for 2023 and 2022: Additional information on capital assets can be found in the notes to the financial statements (Note 2C). Capital Assets at Year-end (Net of Depreciation) Governmental Business-type Total Activities Activities Primary Government 2023 2022 2023 2022 2023 2022 Land and improvements 24,055,217$ 15,558,961$ 17,708,418$ 17,019,633$ 41,763,635$ 32,578,594$ 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 3,925,660 4,815,113 26,179,285 25,036,904 30,104,945 29,852,017 Improvements 12,910,212 10,409,506 14,522,062 12,952,300 27,432,274 23,361,806 Buildings 43,071,935 43,172,240 4,078,824 4,740,541 47,150,759 47,912,781 Machinery and equipment 6,612,004 5,943,182 1,478,036 1,710,096 8,090,040 7,653,278 Lease assets 204,526 339,759 - - 204,526 339,759 Construction in process 4,225,898 5,983,505 4,255,110 3,541,631 8,481,008 9,525,136 Total capital assets 95,279,202$ 86,496,016$ 74,456,947$ 71,236,317$ 169,736,149$ 157,732,333$ 27 Page 35 of 1797 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 $225 million, which is significantly in excess of the City’s actual outstanding general obligation debt subject to this limitation of $24.9 million. At the end of 2023, the City had total long-term debt of $79.7 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 2024 Budget anticipates a 5% increase in personnel costs and an 3.5% for other expenditures. Revenues are budgeted to increase 4%. The following were the general guidelines for the 2024 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 2023 levels but continued increases are expected. • Capital items were submitted separately, ranked by relative importance and included in the Capital Improvement Plan. The 2024 General Fund is projecting expenditures to exceed revenues by ($5.3) million. The proposed General Fund unrestricted fund balance for 2024 is projected at 6.0% of projected revenues. The City adopted a new fund balance policy in 2017 that places a targeted fund balance reserve in the General Fund equal to two months of operations or 16.7%. Bond Issue Standard & Poors Moody's General Obligation AA+Aa2 General Obligation Water 1 AA+Aa2 Storm Water Enterprise 2 AA Not requested Golf Course Enterprise Not requested Not requested 1 Rating was upgraded by Moody's in 2018 2 Rating was received from S&P in 2021 Outstanding Debt, at Year-end Governmental Business-type Total Activities Activities Primary Government 2023 2022 2023 2022 2023 2022 General obligation bonds 20,520,000$ 22,215,000$ 7,645,000$ 8,375,000$ 28,165,000$ 30,590,000$ Revenue bonds - - 9,970,000 10,325,000 9,970,000 10,325,000 Leases 345,736 459,491 - - 345,736 459,491 Premiums 4,428,036 4,686,072 1,516,282 1,587,661 5,944,318 6,273,733 Notes payable - - 32,764,738 37,493,948 32,764,738 37,493,948 Net lease liability 323,834 373,796 - 26,866 323,834 400,662 Compensated absences 1,887,724 1,622,776 327,836 245,424 2,215,560 1,868,200 Total outstanding debt 27,505,330$ 29,357,135$ 52,223,856$ 58,053,899$ 79,729,186$ 87,411,034$ 28 Page 36 of 1797 Estimated Revenues Before interfund transfers, total General Fund revenues are projected at $69.5 million for 2024; this is an 5.8% increase from the 2023 revenue budget of $66 million. Sales and use tax revenues, which comprised approximately 63.9% of General Fund revenues in 2023, are estimated at $45.0 million for 2024, which is a 6.2% decrease from the actual 2023 revenue amount. The sales and use tax estimate is based on historical collections and projected economic conditions. Expenditure Appropriations 2024 expenditure appropriations are projected at $67.1 million. This is an increase of $4.0 million or 6.2% over the 2023 actual expenditure amount. Net Transfers The net transfers for the General Fund are estimated at ($4.8) million. Other 2024 information Salary and wages for all City department budgets are based on the City’s performance and market pay philosophy along with negotiations between the City and its two employee collective bargaining contracts. The City’s cost to provide healthcare insurance coverage to eligible employees is expected to remain flat in 2024. Excluding personnel, fuel and energy costs, only inflationary increases are proposed for all other operating and maintenance costs for 2024. In the event of General Fund shortfalls in revenues or unanticipated expenditures over the next year and for the next several years, City management and City Council will need to closely monitor expenditures and revenues to maintain the goal of a 16.7% unassigned fund balance. Looking to 2024 and beyond, the City will be actively looking for ways to reduce operating expenditures and identify new sources of revenues. Collectively, it is believed that the City will be able to meet the financial challenges of the future. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. This report and additional financial information are also available on the City’s website at www.englewoodco.gov. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Department of Finance, 1000 Englewood Parkway, Englewood, Colorado, 80110-2373. 29 Page 37 of 1797 BASIC FINANCIAL STATEMENTS 30 Pa g e 3 8 o f 1 7 9 7 Primary Government Component Units Governmental Business-Type Assets Activities Activities Total EURA EMRF EDDA Cash and investments 65,178,944$ 43,969,175$ 109,148,119$ 1,086,637$ 11,791$ 817,387$ Receivables: Property taxes 8,302,000 - 8,302,000 - - - Sales and use taxes 6,300,302 - 6,300,302 - - - Interest 431,148 281,183 712,331 6,358 281 - Accounts 616,931 6,474,724 7,091,655 - - - Intergovernmental 1,818,408 - 1,818,408 - - - Other - 21,281,464 21,281,464 - - - Prepaid Expense 53,131 53,741 106,872 - - Land held for resale - - - 71,626 - - Internal balances (1,280,138) 1,280,138 - - - - Inventories 167,527 70,401 237,928 - - - Other assets - - - - 7,258 - Equity in joint venture - 52,235,163 52,235,163 - - - Restricted assets - cash and investments - 2,465,772 2,465,772 - - - Noncurrent notes receivable - 1,185,258 1,185,258 640,758 - - Lease receivable - - - - 41,790,786 - Capital assets not being depreciated 28,554,865 28,198,740 56,753,605 - 5,706,166 - Capital assets, net of accumulated depreciation 66,724,337 46,258,207 112,982,544 - - - Total assets 176,867,455 203,753,966 380,621,421 1,805,379 47,516,282 817,387 Deferred Outflows of Resources Pension related deferred outflows 6,027,671 297,306 6,324,977 - - - OPEB related deferred outflows 346,786 100,180 446,966 - - - Deferred charge on refunding - 79,657 79,657 - - - Total deferred outflows of resources 6,374,457 477,143 6,851,600 - - - Liabilities Accounts payable 4,362,575 1,673,116 6,035,691 - 610 - Accrued payroll and related liabilities 1,478,565 326,251 1,804,816 - - - Unearned revenue 2,100,000 11,871,095 13,971,095 - 40,263 - Other liabilities 46,197 5,607,076 5,653,273 - - 75,174 Accrued interest payable 87,832 361,581 449,413 - - - Claims payable 490,951 - 490,951 - - - Noncurrent liabilities: Net pension liability 10,543,128 2,063,293 12,606,421 - - - Net OPEB liability 3,072,073 1,092,996 4,165,069 - - - Due within one year 2,218,932 6,149,084 8,368,016 - - - Due in more than one year 25,286,398 46,074,772 71,361,170 - - - Total liabilities 49,686,651 75,219,264 124,905,915 - 40,873 75,174 Deferred Inflows of Resources Deferred revenue-property tax 8,302,000 - 8,302,000 - - - Pension related deferred inflows 1,680,712 - 1,680,712 - - - OPEB related deferred inflows 886,402 296,648 1,183,050 - - - Total deferred inflows of resources 10,869,114 296,648 11,165,762 - 40,011,345 - Net Position Net investment in capital assets 69,457,070 55,409,732 124,866,802 - 5,706,166 - Restricted for: Pension and Lease 204,526 - 204,526 Capital projects - 1,000,000 1,000,000 - - - Debt service 90,649 1,465,772 1,556,421 - - - Parks and recreation 5,801,204 - 5,801,204 - - - Law enforcement 2,784,125 - 2,784,125 - - - TABOR emergencies 2,210,000 - 2,210,000 - - - Unrestricted 42,138,573 70,785,952 112,924,525 1,805,379 1,757,898 742,213 Total net position 122,686,147$ 128,715,197$ 251,401,344$ 1,805,379$ 7,464,064$ 742,213$ The notes to the financial statements are an integral part of this statement. CITY OF ENGLEWOOD, COLORADO Statement of Net Position December 31, 2023 31 Pa g e 3 9 o f 1 7 9 7 Program Revenues Net (Expense) Revenues and Change in Net Position Permits, Fees,Operating Capital Primary Government Component Units Fines, and Charges Grants and Grants and Governmental Business-Type Function/Program Activities Expenses for Services Contributions Contributions Activities Activities Total EURA EEF EMRF EDDA Primary government: Governmental Activities: General government 11,205,861$ 7,022,349$ 2,111,458$ -$ (2,072,054)$ (2,072,054)$ Public safety 28,300,891 117,548 113,563 - (28,069,780) (28,069,780) Public works 23,177,921 465,241 - 2,178,849 (20,533,831) (20,533,831) Culture and recreation 9,608,846 1,185,537 1,868,123 - (6,555,186) (6,555,186) Interest and fiscal charges 980,589 - - - (980,589) (980,589) Total governmental activities 73,274,108 8,790,675 4,093,144 2,178,849 (58,211,440) (58,211,440) Business-type Activities: Water 19,481,822 13,142,517 5,000 531,010 - (5,803,295)$ (5,803,295) Sewer 17,720,193 22,033,946 - 296,881 - 4,610,634 4,610,634 Golf 2,853,574 2,913,338 - - - 59,764 59,764 Storm 2,322,337 3,811,371 - - - 1,489,034 1,489,034 Concrete 705,668 1,107,940 - - - 402,272 402,272 Housing Rehabilitation 88,191 5,909 125,100 - - 42,818 42,818 Total business-type activities 43,171,785 43,015,021 130,100 827,891 - 801,227 801,227 Total primary government 116,445,893$ 51,805,696$ 4,223,244$ 3,006,740$ (58,211,440) 801,227 (57,410,213) Component Units: EURA 1,275$ -$ -$ -$ (1,275)$ -$ -$ -$ EEF 1,106,845 1,568,788 - - - 461,943 - - EMRF 1,972,419 2,942,350 - - - - 969,931 - EDDA 590,083 - - - - - - (590,083) Total component units 3,670,622$ 4,511,138$ -$ -$ (1,275)$ 461,943$ 969,931$ (590,083)$ General revenues: Property taxes 11,008,554 - 11,008,554 - - - 818,121 Sales and use taxes 45,174,354 - 45,174,354 - - - 250,759 Franchise tax and other taxes 4,581,926 - 4,581,926 - - - - Unrestricted investment earnings 2,527,763 2,078,753 4,606,516 74,706 15,621 2,220 - Unrestricted grants and contributions 162,199 - 162,199 - - - - Miscellaneous 3,889,027 - 3,889,027 - 15,905 - - Component unit dissolution 1,093,058 - 1,093,058 - (10,992,612) - - Total general revenues 68,436,881 2,078,753 70,515,634 74,706 (10,961,086) 2,220 1,068,880 Change in net position 10,225,441 2,879,980 13,105,421 73,431 (10,499,143) 972,151 478,797 Net position - beginning 112,460,706 125,835,217 238,295,923 1,731,948 10,499,143 6,491,913 263,416 Net position - ending 122,686,147$ 128,715,197$ 251,401,344$ 1,805,379$ -$ 7,464,064$ 742,213$ The notes to the financial statements are an integral part of this statement. CITY OF ENGLEWOOD, COLORADO Statement of Activities For the Year Ended December 31, 2023 32 Pa g e 4 0 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Balance Sheet Governmental Funds December 31, 2023 Public Other Total Improvement Governmental Governmental Assets General Fund Funds Funds Cash and investments 22,664,659$ 21,687,703$ 13,578,600$ 57,930,962$ Receivables: Property taxes 6,055,000 - 2,247,000 8,302,000 Sales and use taxes 6,030,377 269,925 - 6,300,302 Interest 143,788 141,044 95,092 379,924 Accounts 338,490 - - 338,490 Intergovernmental 343,578 1,007,749 467,081 1,818,408 Prepaid Expense 50,903 - 2,228 53,131 Total assets 35,626,795$ 23,106,421$ 16,390,001$ 75,123,217$ Liabilities Accounts payable 1,143,353$ 2,482,822$ 471,317$ 4,097,492$ Accrued payroll and related liabilities 1,446,008 - - 1,446,008 Unearned revenue 2,100,000 - - 2,100,000 Other liabilities 41,186 - 5,011 46,197 Total liabilities 4,730,547 2,482,822 476,328 7,689,697 Deferred Inflows of Resources Deferred revenue-property tax 6,055,000 - 2,247,000 8,302,000 Total deferred inflows of resources 6,055,000 2,247,000 8,302,000 Fund Balances Nonspendable 50,903 2,228 53,131 Restricted for: Parks and recreation - - 5,801,204 5,801,204 Law enforcement - - 2,784,125 2,784,125 Debt service - - 90,649 90,649 Tabor emergencies 2,210,000 - - 2,210,000 Committed to: Parks and recreation - - 145,626 145,626 Capital projects - 20,623,599 4,175,835 24,799,434 Long term asset reserve 94,869 - 94,869 Assigned to: Parks and recreation - - 553,937 553,937 Law enforcement - - 27,795 27,795 Other purposes - - 85,274 85,274 Subsequent year appropriation of fund balance 5,307,034 - - 5,307,034 Unassigned 17,178,442 - - 17,178,442 Total fund balances 24,841,248 20,623,599 13,666,673 59,131,520 Total liabilities deferred inflows and fund balances 35,626,795$ 23,106,421$ 16,390,001$ 75,123,217$ The notes to the financial statements are an integral part of this statement. 33 Pa g e 4 1 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position December 31, 2023 Total fund balances for governmental funds 59,131,520$ 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:88,679,483 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. Lease assets 204,526 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 (24,948,036) Leases (345,736) Compensated absences (1,887,724) (27,181,496) 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, lease and OPEB assets, liabilities and the related deferred inflows and outflows.(10,131,692) Interest on long-term debt is not accrued in the funds, but rather is recognized as an expenditure when due.(87,832) Internal Service Funds are used by management to charge the costs of fleet 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. 12,071,638 Net position of governmental activities 122,686,147$ The notes to the financial statements are an integral part of this statement. 34 Pa g e 4 2 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2023 Public Other Total Improvement Governmental Governmental General Fund Funds Funds Revenues Property taxes 5,185,365$ 3,073,087$ 2,750,102$ 11,008,554$ Sales and use taxes 42,337,842 2,836,512 - 45,174,354 Franchise and other taxes 4,581,926 - - 4,581,926 Licenses and permits 2,112,712 - - 2,112,712 Intergovernmental revenue 1,353,076 2,297,187 2,543,737 6,194,000 Charges for services 6,433,170 - 881 6,434,051 Fines and forfeitures 381,785 - - 381,785 Net investment income 923,831 997,424 679,468 2,600,723 Contributions from component units 1,933,543 - - 1,933,543 Other 964,145 850 35,283 1,000,278 Total revenue 66,207,395 9,205,060 6,009,471 81,421,926 Expenditures Current: General government 16,424,851 114,436 168,123 16,707,410 Public safety 25,812,319 - 226,690 26,039,009 Public works 11,013,510 9,135,282 637,043 20,785,835 Culture and recreation 9,885,627 12,000 625,870 10,523,497 Capital outlay - 558,063 1,984,704 2,542,767 Debt service: Principal - - 1,695,000 1,695,000 Interest and other fiscal charges 133,006 - 1,114,063 1,247,069 Total expenditures 63,269,313 9,819,781 6,451,493 79,540,587 Excess revenues over (under) expenditures 2,938,082 (614,721) (442,022) 1,881,339 Other financing sources (uses) Componenet unit dissolution 1,093,058 - - 1,093,058 Transfers in 137,817 3,174,819 1,560,000 4,872,636 Transfers out (3,485,578) (1,637,817) - (5,123,395) Total other financing sources (uses)(2,254,703) 1,537,002 1,560,000 842,299 Net change in fund balances 683,379 922,281 1,117,978 2,723,638 Fund balances - beginning 24,157,869 19,701,318 12,548,695 56,407,882 Fund balances - ending 24,841,248$ 20,623,599$ 13,666,673$ 59,131,520$ The notes to the financial statements are an integral part of this statement. 35 Pa g e 4 3 o f 1 7 9 7 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, 2023 Net Change in fund balances-total governmental funds 2,723,638$ 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 $11,611,698 and depreciation ($3,630,912)7,980,786 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Adjustment to compensated absences liability (264,948) Net pension liability adjustment (3,443,524) Adjustment to postemployment benefit liability 204,437 (3,504,035) The issuance of long-term debt provide current financial resources to governmental funds, while the repayment of the principal of long-term debt and long-term leases consume current financial resources of governmental funds. These transactions, however, have no effect on net position. Repayments: General Obligation Bonds 1,695,000 Finance leases and other bonds 191,106 1,886,106 Interest expense in the statement of activities differs from the amount reported in governmental funds because of additional accrued interest, amortization of bond premiums, and refunding gains or losses. Change in accrued interest on long-term debt 8,444 Amortization of premium 258,036 266,480 Internal service funds are used by management to charge the costs of fleet management, printing management, and insurance to individual funds. A portion of the net revenue of internal service funds is reported with governmental activities.872,466 Change in net position of governmental activities 10,225,441$ The notes to the financial statements are an integral part of this statement. 36 Pa g e 4 4 o f 1 7 9 7 Governmental Activities Storm Concrete Housing Internal Service Water Sewer Golf Drainage Utility Rehabilitation Total Funds Assets Current assets: Cash and investments - unrestricted 17,059,132$ 15,300,403$ 567,497$ 7,648,982$ 2,208,578$ 1,184,583$ 43,969,175$ 7,247,982$ Cash and investments - restricted: Loan operations and maintenance account - 1,250,000 - - - - 1,250,000 - Joint venture capital reserve - 1,000,000 - - - - 1,000,000 - Interest receivable 115,308 90,184 4,210 49,590 14,720 7,171 281,183 51,224 Accounts receivable 1,024,370 5,180,490 - 219,365 50,499 - 6,474,724 278,441 Prepaid expense - - - - - 53,741 53,741 - Other receivables 159,982 571,889 - 20,503,192 - 46,401 21,281,464 - Inventory - - 70,401 - - - 70,401 167,527 Total current assets 18,358,792 23,392,966 642,108 28,421,129 2,273,797 1,291,896 74,380,688 7,745,174 Noncurrent assets: Cash and investments - restricted: Revenue bond future debt service - - 215,772 - - - 215,772 - Equity in joint venture - 52,235,163 - - - - 52,235,163 - Notes receivable - - - - - 1,185,258 1,185,258 - Capital assets not being depreciated 9,199,834 59,500 10,411,240 8,528,166 - - 28,198,740 340,097 Capital assets, net of accumulated depreciation and amortization 22,750,732 1,459,700 4,206,123 5,493,749 12,347,903 - 46,258,207 6,055,096 Total noncurrent assets 31,950,566 53,754,363 14,833,135 14,021,915 12,347,903 1,185,258 128,093,140 6,395,193 Total assets 50,309,358 77,147,329 15,475,243 42,443,044 14,621,700 2,477,154 202,473,828 14,140,367 Deferred Outflows of Resources Pension related deferred outflows 98,138 199,168 - - - - 297,306 OPEB related deferred outflows 34,025 60,548 5,607 - - - 100,180 Deferred loss on refunding 70,119 - 9,538 - - - 79,657 - Total deferred outflows of resources 202,282 259,716 15,145 - - - 477,143 - CITY OF ENGLEWOOD, COLORADO Statement of Net Position December 31, 2023 Proprietary Funds Business-type Activities - Enterprise Funds 37 Pa g e 4 5 o f 1 7 9 7 (Continued) Governmental Activities - Storm Concrete Housing Internal Service Water Sewer Golf Drainage Utility Rehabilitation Total Funds Liabilities Current liabilities: Accounts payable 1,137,313$ 47,425$ 34,836$ 400,729$ 52,813$ -$ 1,673,116$ 265,083$ Accrued wages and related liabilities 231,839 37,682 38,798 14,113 3,819 - 326,251 32,557 Unearned revenue 31,593 11,839,502 - - - - 11,871,095 - Other current liabilities 1,035 5,418,691 181,685 5,665 - - 5,607,076 490,951 Accrued interest payable 107,788 128,217 7,443 118,133 - - 361,581 - Compensated absences - current 112,615 16,544 31,711 3,047 - - 163,917 - General Obligation bonds payable - current 750,000 - - - - - 750,000 - Revenue bonds payable - current - - 120,000 250,000 - - 370,000 - Notes payable - current - 3,799,210 - 1,065,957 - - 4,865,167 - Total current liabilities 2,372,183 21,287,271 414,473 1,857,644 56,632 - 25,988,203 788,591 Noncurrent liabilities: General Obligation bonds payable 7,122,734 - - - - - 7,122,734 - Revenue bonds payable - - 1,425,000 9,459,138 - - 10,884,138 - Notes payable - 4,012,311 - 23,891,671 - - 27,903,982 - Pension liability 703,042 1,360,251 - - - - 2,063,293 - Compensated absences 112,615 16,544 31,711 3,048 - - 163,918 - Other post employment benefit liability 373,250 661,222 58,524 - - - 1,092,996 - Total noncurrent liabilities 8,311,641 6,050,328 1,515,235 33,353,857 - - 49,231,061 - Total liabilities 10,683,824 27,337,599 1,929,708 35,211,501 56,632 - 75,219,264 788,591 Deferred Inflows of Resources OPEB related deferred inflows 100,933 179,253 16,462 - - - 296,648 - Total deferred inflows 100,933 179,253 16,462 - - - 296,648 - Net position Net investment in capital assets 24,147,951 1,519,200 13,081,901 4,312,777 12,347,903 - 55,409,732 6,395,193 Restricted for: Debt service - 1,250,000 215,772 - - - 1,465,772 - Capital projects - 1,000,000 - - - - 1,000,000 - Nonspendable - - - - - 53,741 53,741 Unrestricted 15,578,932 46,120,993 246,545 2,918,766 2,217,165 2,423,413 69,505,814 6,956,583 Total net position 39,726,883$ 49,890,193$ 13,544,218$ 7,231,543$ 14,565,068$ 2,477,154$ 127,435,059 13,351,776$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,280,138 Net position of business type activities 128,715,197$ The notes to the financial statements are an integral part of this statement. Business-type Activities - Enterprise Funds CITY OF ENGLEWOOD, COLORADO Statement of Net Position Proprietary Funds December 31, 2023 38 Pa g e 4 6 o f 1 7 9 7 Governmental Activities - Storm Concrete Housing Internal Service Water Sewer Golf Drainage Utility Rehabilitation Total Funds Operating revenues Charges for sales and services: Service fees 13,142,517$ 22,026,012$ 2,608,626$ 3,811,371$ 1,105,609$ -$ 42,694,135$ 11,181,461$ Concessions - - 220,242 - - - 220,242 - Interest from notes - - - - - 3,649 3,649 - Other - - 72,809 - 2,331 2,260 77,400 101,749 Total operating revenues 13,142,517 22,026,012 2,901,677 3,811,371 1,107,940 5,909 42,995,426 11,283,210 Operating expenses Joint venture operating expenses - 9,377,933 - - - - 9,377,933 - Personnel services 5,088,631 356,671 1,229,264 450,343 124,121 - 7,249,030 954,393 Customer accounting and collection 1,250,000 898,349 - - - - 2,148,349 - Commodities and contractual services 11,392,339 1,421,133 997,519 870,998 139,497 88,191 14,909,677 8,993,389 Other 189,173 654,419 171,101 - - - 1,014,693 - Depreciation 1,259,812 94,138 351,962 159,687 442,050 - 2,307,649 1,313,942 Total operating expenses 19,179,955 12,802,643 2,749,846 1,481,028 705,668 88,191 37,007,331 11,261,724 Operating income (loss)(6,037,438) 9,223,369 151,831 2,330,343 402,272 (82,282) 5,988,095 21,486 Nonoperating revenues (expense) Net investment income 870,493 649,598 37,497 365,589 104,317 51,259 2,078,753 374,203 Grant income 5,000 - - - - 125,100 130,100 - Interest expense (297,851) (388,707) (103,728) (841,980) - - (1,632,266) - Gain (loss) on disposition of assets - - - - - - - 312,043 Joint venture capital contributions - (4,585,609) - - - - (4,585,609) - Other, net - 7,934 11,661 - - - 19,595 21,585 Total nonoperating revenues (expenses)577,642 (4,316,784) (54,570) (476,391) 104,317 176,359 (3,989,427) 707,831 Income (loss) before contributions (5,459,796) 4,906,585 97,261 1,853,952 506,589 94,077 1,998,668 729,317 Capital contributions - tap fees 531,010 296,881 - - - - 827,891 - Capital contributions - other - - - - - - - 196,570 Change in net position (4,928,786) 5,203,466 97,261 1,853,952 506,589 94,077 2,826,559 925,887 Total net position - beginning 44,655,669 44,686,727 13,446,957 5,377,591 14,058,479 2,383,077 12,425,889 Total net position - ending 39,726,883$ 49,890,193$ 13,544,218$ 7,231,543$ 14,565,068$ 2,477,154$ 13,351,776$ Adjustment to reflect the consolidation of internal service fund activities related to The notes to the financial statements are an integral part of this statement. enterprise funds 53,421 Change in net position of business-type activities 2,879,980$ Business-type Activities-Enterprise Funds CITY OF ENGLEWOOD, COLORADO Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended December 31, 2023 39 Pa g e 4 7 o f 1 7 9 7 Governmental Activities - Golf Storm Concrete Housing Internal Service Water Sewer Course Drainage Utility Rehabilitation Total Funds Cash flows from operating activities Cash received from customers 14,335,621$ 23,656,187$ 2,759,002$ 3,752,001$ 1,097,166$ -$ 45,599,977$ 11,318,517$ Interest received from borrowers - - - - - 81,619 81,619 - Cash payments to suppliers for goods and services (12,665,650) (12,353,524) (1,210,802) (582,511) (172,655) (201,253) (27,186,395) (8,987,609) Cash payments to employees for services (5,160,860) (1,050,438) (1,236,109) (438,611) (124,121) - (8,010,139) (950,028) Other cash received - 7,934 11,661 - - - 19,595 - Net cash provided (used) by operating activities (3,490,889) 10,260,159 323,752 2,730,879 800,390 (119,634) 10,504,657 1,380,880 Cash flows from noncapital financing activities Operating grants received 5,000 - - - - 125,100 130,100 - Joint Venture investment - (6,152,832) - - - - (6,152,832) - Net cash provided (used) by noncapital financing activities 5,000 (6,152,832) - - - 125,100 (6,022,732) - Cash flows from capital and related financing activities Proceeds from debt issuance - - - 5,496,808 - - 5,496,808 - Contributed capital 531,010 296,881 - - - - 827,891 - Acquisition and construction of capital assets (1,721,449) - (190,425) (2,897,092) (679,552) - (5,488,518) (1,920,797) Principal paid on long-term debt (730,000) (3,686,839) (115,000) (1,318,953) - - (5,850,792) - Interest paid on long-term debt (323,932) (452,048) (95,066) (846,689) - - (1,717,735) - Net cash (used) by capital related financing activities (2,244,371) (3,842,006) (400,491) 434,074 (679,552) - (6,732,346) (1,607,732) Cash flows from investing activities Net investment income 855,425 609,054 40,211 338,954 100,435 49,511 1,993,590 361,108 Net cash provided by investing activities 855,425 609,054 40,211 338,954 100,435 49,511 1,993,590 361,108 Net increase (decrease) in cash and cash equivalents (4,874,835) 874,375 (36,528) 3,503,907 221,273 54,977 (256,831) 134,256 Cash and cash equivalents - beginning 21,933,967 16,676,028 819,797 4,145,075 1,987,305 1,129,606 46,691,778 7,113,726 Cash and cash equivalents - ending 17,059,132$ 17,550,403$ 783,269$ 7,648,982$ 2,208,578$ 1,184,583$ 46,434,947$ 7,247,982$ CITY OF ENGLEWOOD, COLORADO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities-Enterprise Funds 40 Pa g e 4 8 o f 1 7 9 7 (Continued) Governmental Activities - Golf Storm Concrete Housing Internal Service Water Sewer Course Drainage Utility Rehabilitation Total Funds Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss)(6,037,438)$ 9,223,369$ 151,831$ 2,330,343$ 402,272$ (82,282)$ 5,988,095$ 21,486$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization 1,259,812 94,138 351,962 159,687 442,050 - 2,307,649 1,313,942 Miscellaneous income - 7,934 11,661 - - - 19,595 21,585 Effect of changes in operating assets and liabilities: Accounts receivable 70,441 (562,024) - (59,370) (10,774) - (561,727) 7,625 Other receivables 1,122,663 - - - - 75,710 1,198,373 - Inventory - - (519) - - - (519) (55,361) Accounts payable 192,728 (1,690) (145,107) 288,487 (33,158) (113,062) 188,198 129,956 Accrued payroll and related liabilities 112,862 10,573 25,736 11,732 - - 160,903 4,365 Deferred outflows 65,732 529,214 6,867 - - - 601,813 - Deferred inflows 211,115 102,351 14,078 - - - 327,544 - Net Pension liability (310,253) (1,066,851) - - - - (1,377,104) - OPEB liability (151,685) (269,054) (53,526) - - - (474,265) - Unearned revenue - 746,460 (142,675) - - - 603,785 - Other current liabilities (26,866) 1,445,739 103,444 - - - 1,522,317 (62,718) Total adjustments 2,546,549 1,036,790 171,921 400,536 398,118 (37,352) 4,516,562 1,359,394 f (3,490,889)$ 10,260,159$ 323,752$ 2,730,879$ 800,390$ (119,634)$ 10,504,657$ 1,380,880$ The notes to the financial statements are an integral part of this statement. CITY OF ENGLEWOOD, COLORADO Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2023 Business-type Activities-Enterprise Funds 41 Pa g e 4 9 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Statement of Fiduciary Net Position Fiduciary Funds December 31, 2023 Nonemergency Pension Custodial Fund - Basin Interceptor Assets Cash and equivalents (144,898)$ 9,595,216$ Interest receivable 136 58,891 Investments Fixed Income 6,008,645 - Domestic equities 15,258,441 - Other 7,318,410 - International 8,489,243 - Real Estate equities 2,734,110 - Total investments 39,808,849 - Accounts receivable 190,957 165,958 Total assets 39,855,044 9,820,065 Liabilities Accounts payable 4,899 2,776,878 Net Position Restricted for: Pension 39,850,145 - Other governments - 7,043,187 Total net position 39,850,145$ 7,043,187$ The notes to the financial statements are an integral part of this statement. 42 Pa g e 5 0 o f 1 7 9 7 Nonemergency Pension Custodial Fund - Basin Interceptor Additions Contributions: City 1,057,618$ -$ Plan members 144,208 - Maintenance fees - 783,005 Line charges - 46,391 Total contributions 1,201,826 829,396 Investment income: Net appreciation in fair value of investments 4,627,730 - Interest income 904 416,105 Less investment expense (55,000) - Net investment income 4,573,634 416,105 Total additions 5,775,460 1,245,501 Deductions Benefits 3,245,996 - Administrative expenses 27,980 2,965,384 Total deductions 3,273,976 2,965,384 Net change in net position 2,501,484 (1,719,883) Net position - beginning 37,348,661 8,763,070 Net position - ending 39,850,145$ 7,043,187$ 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, 2023 43 Pa g e 5 1 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Index to Notes to the Financial Statements December 31, 2023 Note 1. Summary of Significant Accounting Policies ............................................................. 45 A. Reporting Entity .......................................................................................................... 45 B. Government-wide and Fund Financial Statements ..................................................... 45 C. Measurement Focus, Basis of Accounting and Financial Statement Presentation ...... 46 Note 2. Detailed Notes on All Funds ........................................................................................ 51 A. Deposits and Investments .......................................................................................... 51 B. Receivables ................................................................................................................ 56 C. Capital Assets ............................................................................................................ 57 D. Interfund Transfers ..................................................................................................... 59 E. Leases-Lessee/Lessor ............................................................................................... 59 F. Long-term Obligations ................................................................................................ 60 Note 3. Other Information ......................................................................................................... 64 A. Investment in Joint Venture ........................................................................................ 64 B. Risk Management ...................................................................................................... 65 C. Commitments and Contingencies ............................................................................... 66 D. Employee Retirement Systems and Pension Plans .................................................... 66 E. Other Postemployment Benefits……………..………………………………………………81 F. Voter Approved Tax Increase Reporting………………..…………………………………..83 Note 4. Tax, Spending and Debt Limitations ........................................................................... 83 44 Page 52 of 1797 CITY OF ENGLEWOOD, COLORADO Notes to the Financial Statements December 31, 2023 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 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 Englewood Downtown Development Authority (EDDA) was created by the voters residing within the EDDA boundaries. The purpose of the EDDA is to help initiate new development and improve quality-of-life within certain areas of the downtown region. Council approves property and sales tax increment financing for the EDDA. The EURA, EMRF and EDDA are included in the City’s financial statements because the City Council appoints board members and provides the component units substantial financial and operational support. Each discretely presented component unit has a December 31 year-end. Separate financial statements are not prepared for the discretely presented component units. The previously presented Englewood Environmental Foundation (EEF) component unit discontinued operations effective November 3, 2023. All EEF outstanding debt was fully paid off which triggered contract terms that allowed the City to exercise its right to take over all operations, of the EEF. All contracts, assets, liabilities and a net gain were transferred to the City. The following were transferred to the City of Englewood as a result of the discontinuation: • Long-term Capital Assets with a carrying value of $9,899,554 • Net gain on dissolution of $1,093,058 was transferred to the City’s General Fund 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 45 Page 53 of 1797 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 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, fiduciary fund, and custodial fund financial statements. 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 public improvement fund is a capital projects fund that accounts for the acquisition and/or construction of major capital improvements. 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. 46 Page 54 of 1797 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: 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. These assets are used to maintain the Big Dry Creek Basin Interceptor, pursuant an agreement between the governments. The interceptor carries sewage from various connector districts to the South Platte Renew treatment facility. 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. 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. 47 Page 55 of 1797 • 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 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. 48 Page 56 of 1797 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 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, represent a consumption of net assets 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, lease and other post-employment benefit 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 assets 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, lease and other post-employment benefit activity. 49 Page 57 of 1797 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. 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. 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 TABOR, 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’s fund balance policy places a targeted fund balance in the General Fund equal to two months of operations or 16.7%. 50 Page 58 of 1797 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. 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, 2023, the City’s deposits amounting to $6,773,348 were collateralized and an additional $250,000 was insured by federal depository insurance and consequently was not exposed to custodial credit risk. Investments The table below identifies the investment types that are authorized for the City, along with the related interest rate risk and concentration of credit risk. Primary Government Governmental and Business-Reporting Type Fiduciary Entity Activities Funds Total EURA EDDA EMRF Total Unrestricted: Deposits and investments with City internal investment pool 109,148,119$ 9,450,318$ 118,598,437$ 1,086,637$ -$ 11,791$ 119,696,865$ Deposits and investments outside City internal investment pool - 39,808,849 39,808,849 - 817,387 - 40,626,236 Subtotal unrestricted deposits and investments 109,148,119 49,259,167 158,407,286 1,086,637 817,387 11,791 160,323,101 Restricted: Deposits and investments with City internal investment pool 2,465,772 - 2,465,772 - - - 2,465,772 Total deposits and investments 111,613,891$ 49,259,167$ 160,873,058$ 1,086,637$ 817,387$ 11,791$ 162,788,873$ Cash and deposits 6,773,348$ -$ 6,773,348$ -$ 817,387$ -$ 7,590,735$ Investments 104,840,543 49,259,167 154,099,710 1,086,637 - 11,791 155,198,138 111,613,891$ 49,259,167$ 160,873,058$ 1,086,637$ 817,387$ 11,791$ 162,788,873$ Component Units 51 Page 59 of 1797 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, 2023: Primary Government Level 2 Inputs: US Treasury Securities of $40,153,477 are valued using quoted market prices. Residential mortgage-backed securities of $27,476,455 are valued using a matrix pricing technique. Corporate bonds of $24,970,878 are valued using a matrix pricing technique. Defined Benefit Pension Plan Fixed Income mutual funds of $6,008,642 are valued at net asset value using quoted market prices. Domestic Equity mutual funds of $15,258,441 are valued at net asset value using quoted market prices. International Equity mutual funds of $8,489,243 are valued at net asset value using quoted market prices. Real Estate equity mutual funds of $2,734,110 are valued at net asset value using quoted market prices. Other mutual funds of $7,318,410 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 exists under the laws of the State of Colorado. Presented below is the minimum rating required by the City’s investment policy and the actual rating as of December 31, 2023 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, 2023. 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% 52 Page 60 of 1797 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, 2023, the weighted average maturity of the City’s internal investment portfolio was 1.46 years. 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 26% Federal Farm Credit Banks (FFCB)N/A AA+Aaa 5% Federal Home Loan Banks (FHLB)N/A AA+Aaa 8% Federal Home Loan Mortgage Corporation (FHLMC)N/A AA+Aaa 2% Federal National Mortgage Association (FNMA)N/A AA+Aaa 5% Corporate bonds AA-/Aa3 AAA Aaa 2% Corporate bonds AA-/Aa3 AA+Aa1 1% Corporate bonds AA-/Aa3 AA-Aa2 0% Corporate bonds AA-/Aa3 AA-Aa3 1% Corporate bonds AA-/Aa3 A+Aa2 11% Corporate bonds A-A-1 A2 1% COLOTRUST (a)N/A AAAm Aaa 14% (a) 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 40,153,477$ 11,241,369$ 28,912,108$ U.S. Instrumentalities 28,225,061 17,904,662 10,320,399 Corporate Bonds 24,970,877 492,512 24,478,365 Colorado Local Government Liquid Asset Trust (COLOTRUST PLUS+)22,039,874 22,039,874 - Less: Component unit investments in internal investment pool (1,098,428) (1,098,428) - Subtotal investments in City internal investment 114,290,861 50,579,989 63,710,872 Retirement Trust Fund investments 39,808,849 Total Primary Government 154,099,710 Component Units: EURA: Investments in internal investment pool 1,086,637 1,086,637$ -$ EMRF: Investments in internal investment pool 11,791 11,791$ -$ Total Component Units 1,098,428 Total Investments 155,198,138$ 53 Page 61 of 1797 Concentration of Credit Risk Of the City’s total investments in its internal investment pool, 30% were T-Notes, 26% were government agency notes and 22% were corporate bonds. Additionally, 22% 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, 2023, 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 Annual Comprehensive 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, 2023, the Fund’s fixed income security mutual funds had an effective duration of 3.9 years. Investment Type Fair Value Nonemergency Pension Trust Fund Fixed Income mutual funds 6,008,645$ Equity mutual funds: Domestic equities 15,258,441 International equities 8,489,243 Other 7,318,410 Subtotal equity mutual funds 31,066,094 Real estate equity fund 2,734,110 Total Retirement Trust Investments 39,808,849$ 54 Page 62 of 1797 U.S. Government obligations and those explicitly guaranteed by the U.S. Government account for 17.9% 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, 2023: 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, 2023 is summarized in the following table: Percentage of Fixed Income Rating Total AAA 24.7% AA 5.4% A 6.7% BBB 21.3% BB 9.0% B 8.0% CCC 1.6% Cash 5.1% NR 0.5% 82.1% Percentage Country or Region Currency Fair Value of Total Switzerland Swiss franc 128,033 1.5% United Kingdom British pound 454,373$ 5.4% Denmark Danish krone 97,214 1.1% Sweden Swedish krona 251,876 3.0% Other Developed Europe Other Europe 1,963,588 23.1% Japan Japanese yen 351,725 4.1% South Korea South Korean won 449,454 5.3% Taiwan Taiwan dollar 185,538 2.2% Australia Australian dollar 365,015 4.3% China Chinese yuan renminbi 298,589 3.5% Other Pacific Basin Other Pacific Basin 2,367,361 27.9% Brazil Brazilian real 199,052 2.3% India Indian rupee 31,359 0.4% Other countries Other countries 1,049,018 12.4% 8,192,195 96.5% Cash and equivalents 297,045 3.5% 8,489,240$ 100.0% 55 Page 63 of 1797 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 $640,758 with the final principal payment scheduled for December 1, 2032. Public Nonmajor Internal General Improvement Funds Service Total Receivables: Property tax 6,055,000$ -$ 2,247,000$ -$ 8,302,000$ Sales and use tax 6,030,377 269,925 - - 6,300,302 Interest 143,788 141,044 95,092 51,224 431,148 Accounts 338,490 - - 278,441 616,931 Intergovernmental 343,578 1,007,749 467,081 - 1,818,408 12,911,233$ 1,418,718$ 2,809,173$ 329,665$ 17,468,789$ Golf Storm Concrete Housing Water Sewer Course Drainage Utility Rehabilitation Total Receivables Interest 115,308$ 90,184$ 4,210$ 49,590$ 14,720$ 7,171$ 281,183$ Accounts 1,024,370 5,180,490 - 219,365 50,499 - 6,474,724 Notes (see below)- - - -- 1,185,258 1,185,258 Other 159,982 571,889 - 20,503,192 - 100,142 21,335,205 Total receivables 1,299,660$ 5,842,563$ 4,210$ 20,772,147$ 65,219$ 1,292,571$ 29,276,370$ Not scheduled for collection during the subsequent year -$ -$ -$ -$ -$ 1,185,258$ 1,185,258$ Governmental Activities Business-type Activities Balance New Principal Balance Loan Type 12/31/2022 Loans Payments 12/31/2023 Amortized loans 97,354$ -$ 21,898$ 75,456$ Deferred loans 1,285,047 - 59,245 1,225,802 1,382,401$ -$ 81,143$ 1,301,258 Less unamortized discount based on imputed interest rate of 7% over 20 years (116,000) Total notes receivable, net 1,185,258$ 56 Page 64 of 1797 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, 2023 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$ 8,496,256$ -$ 24,055,217$ Works of art 273,750 - - 273,750 Construction in process 5,983,505 1,603,348 (3,360,955) 4,225,898 Total capital assets not being depreciated 21,816,216 10,099,604 (3,360,955) 28,554,865 Capital assets being depreciated Buildings 66,639,359 1,304,513 (27,342) 67,916,530 Infrastructure 33,095,958 - (10,568) 33,085,390 Machinery and equipment 26,840,041 2,724,202 (1,345,871) 28,218,372 Lease assets 510,620 - (87,918) 422,702 Other improvements 19,356,438 3,761,628 (109,928) 23,008,138 Total capital assets being depreciated 146,442,416 7,790,343 (1,581,627) 152,651,132 Less accumulated depreciation for: Buildings (23,467,119) (1,439,447) 61,971 (24,844,595) Infrastructure (28,280,845) (880,101) 1,216 (29,159,730) Machinery and equipment (20,896,859) (2,030,887) 1,321,378 (21,606,368) Lease assets (170,861) (109,088) 61,773 (218,176) Other improvements (8,946,932) (1,278,350) 127,356 (10,097,926) Total accumulated depreciation (81,762,616) (5,737,873) 1,573,694 (85,926,795) Total capital assets being depreciated, net 64,679,800 2,052,470 (7,933) 66,724,337 Governmental activities capital assets, net 86,496,016$ 12,152,074$ (3,368,888)$ 95,279,202$ Governmental activities: General Government 815,311$ Safety Services 1,122,183 Public Works 1,394,925 Culture and Recreation 1,090,879 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.1,314,575 Total depreciation expense - governmental activities 5,737,873$ 57 Page 65 of 1797 Capital asset activity for the year ended December 31, 2023 (continued): Discretely Presented Component Units Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets not being depreciated: Land and land improvements 17,019,633$ 688,785$ -$ 17,708,418$ Raw water 6,235,212 - - 6,235,212 Construction in process 3,541,630 2,866,717 (2,153,237) 4,255,110 Total capital assets not being depreciated 26,796,475 3,555,502 (2,153,237) 28,198,740 Capital assets being depreciated: Buildings 16,290,771 - - 16,290,771 Infrastructure 60,468,437 2,142,487 - 62,610,924 Machinery and equipment 7,156,113 185,042 - 7,341,155 Lease assets 87,918 - (87,918) - Other improvements 23,661,422 1,798,485 - 25,459,907 Total capital assets being depreciated 107,664,661 4,126,014 (87,918) 111,702,757 Less accumulated depreciation and amortization for: Buildings (11,550,230) (661,717) - (12,211,947) Infrastructure (35,431,533) (1,000,106) - (36,431,639) Machinery and equipment (5,446,016) (417,103) - (5,863,119) Lease amortization (61,773) - 61,773 - Other improvements (10,709,122) (228,723) - (10,937,845) Total accumulated depreciation (63,198,674) (2,307,649) 61,773 (65,444,550) Total capital assets being depreciated, net 44,465,987 1,818,365 (26,145) 46,258,207 Business-type activities capital assets, net 71,262,462$ 5,373,867$ (2,179,382)$ 74,456,947$ Englewood Environmental Foundation (EEF) Beginning Ending Balance Increases Decreases Balance Capital assets not being depreciated: Land and 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 (9,847,168) - 9,847,168 - Curb, sidewalk and streets (4,841,536) - 4,841,536 - Parking structure (3,639,841) - 3,639,841 - Bridge (1,855,425) - 1,855,425 - Equipment and other (185,261) - 185,261 - Total accumulated depreciation (20,369,231) - 20,369,231 - Total capital assets being depreciated, net 1,403,297 - (1,403,297) - EEF capital assets, net 9,899,554$ -$ (9,899,554)$ -$ Englewood McLellan Reservoir Foundation (EMRF) Beginning Ending Balanc e Increases Decreases Balance Capital assets not being depreciated: Land and improvements 5,706,166$ -$ -$ 5,706,166$ Englewood Urban Renewal Authority (EURA) Beginning Ending Balance Increases Decreases Balance Capital assets not being depreciated: Land held for resale 71,626$ -$ -$ 71,626$ 58 Page 66 of 1797 D.Interfund Transfers The composition of interfund balances as of December 31, 2023, is as follows: Transfers between funds provide support for various City programs in accordance with budgetary authorizations. During the year ended December 31, 2023, 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.Leases During 2022, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. This standard established a single model for lease accounting based on the foundational principle that leases are financings of the right to an underlying asset. For leases in which the City is the lessee, a lease liability and right- to-use lease asset have been recorded. For leases in which the City is the lessor, a lease receivable and deferred inflows of resources have been recorded. Lessor The Englewood McLellan Reservoir Foundation (EMRF) recognized a lease receivable of $41,790,786 and a lease related deferred inflow of $40,011,345 which represents the present value of the lease receivable. These leases are long-term ground leases with terms ranging from 20 to 80 years. Transfers in: General Nonmajor Total Fund Governmental Transfers In Transfers out: Primary Government: General Fund -$ 3,431,819$ 3,431,819$ Nonmajor governmental funds 137,817 1,500,000 1,637,817 Total transfers out 137,817$ 4,931,819$ 5,069,636$ Principal Interest Total 2024 550,566$ 1,226,647$ 1,777,213$ 2025 567,678$ 1,217,349$ 1,785,027 2026 622,452$ 1,206,939$ 1,829,391 2027 665,718$ 1,194,981$ 1,860,699 2028 692,100$ 1,181,741$ 1,873,841 2029-2033 3,793,004$ 5,545,041$ 9,338,045 2034-2038 4,429,043$ 4,816,217$ 9,245,260 2039-2043 4,390,219$ 4,368,575$ 8,758,794 2044-2048 5,572,406$ 3,785,845$ 9,358,251 2049-2053 3,718,511$ 3,011,893$ 6,730,404 2054-2058 2,673,258$ 2,465,573$ 5,138,831 2059-2063 1,572,210$ 2,178,587$ 3,750,797 2064-2068 2,255,145$ 1,870,731$ 4,125,876 2069-2073 3,098,999$ 1,439,464$ 4,538,463 2074-2078 4,136,184$ 856,125$ 4,992,309 2079-2081 3,053,293$ 158,740$ 3,212,033 Total 41,790,786$ 36,524,448$ 78,315,234$ 59 Page 67 of 1797 Lessee The City leases certain assets from various third parties. The assets leased include land, buildings (office trailers), and copier equipment. Payments are generally fixed monthly. Future principal and interest requirements related to the City’s lease liability at December 31, 2023 are: The City leases certain assets to various third parties. The assets leased include land. Payments are generally fixed monthly. During the year ended December 31, 2023 the City recognized the following related to lessor agreements: 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. Beginning Ending Balance Increases Decreas es Balance Leased assets-lessee Leased land 307,882$ -$ -$ 307,882$ Lesed buildings 87,918 - (87,918) - Leased equipment 114,820 - - 114,820 Total capital assets not being depreciated 510,620 - (87,918) 422,702 Accumulated amortization Leased land 61,576 61,576 - 123,152 Lesed buildings 61,773 - (61,773) - Leased equipment 47,512 47,512 - 95,024 Total accumulated amortization 170,861 109,088 (61,773) 218,176 Net book value of leased assets-lessee 339,759$ (109,088)$ (87,918)$ 204,526$ Principal Interest Total 2024 35,802$ 13,220$ 49,021$ 2025 15,000 12,932 27,932 2026 15,000 12,848 27,848 2027 15,000 12,760 27,760 2028 15,000 12,669 27,669 2029-2033 75,000 61,842 136,842 2034-2038 75,000 58,934 133,934 2039-2043 75,000 55,383 130,383 2044-2048 75,000 51,048 126,048 2049-2053 75,000 45,755 120,755 2054-2058 75,000 39,292 114,292 2059-2063 75,000 31,400 106,400 2064-2068 75,000 21,765 96,765 2069-2073 75,000 10,000 85,000 2074-2078 16,250 373 16,623 Total 787,052$ 440,220$ 1,227,272$ Lease revenue 1,096,349$ Interest income related to leases 1,392,818$ 60 Page 68 of 1797 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 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, 2024 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. This refunding did not result in any economic gain or loss. 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 $2,615,000 of outstanding bonds were called August 1, 2019. The original bonds were issued to finance miscellaneous water system improvement projects. Although there is a general obligation pledge on these bonds, which allows the City to certify a rate of levy for property taxes to pay principal and interest on the bonds, it is the City’s intention to service the debt from available moneys in the Water Fund. Principal payments begin on January 1, 2020. In the event of a City default on its obligations, owners of the outstanding obligation may pursue any remedy authorized by law. There is no acceleration provision and bond holders cannot foreclose on property located within the boundaries of the City. General obligation bonds currently outstanding are as follows: Annual debt service requirements to maturity for general obligation bonds are as follows: Revenue Bonds The City also issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding at year-end are as follows: Purpose Interest Rates Amount Governmental activities 2.00% - 5.10%20,520,000$ Business-type activities 3.625% - 4.75%7,645,000 28,165,000$ Principal Interest Total 2024 1,905,000$ 1,240,213$ 3,145,213$ 2025 1,985,000 1,161,048 3,146,048 2026 2,070,000 1,078,277 3,148,277 2027 2,155,000 992,667 3,147,667 2028 2,240,000 904,059 3,144,059 2029-2033 11,840,000 3,027,295 14,867,295 2034-2036 5,970,000 611,725 6,581,725 28,165,000$ 9,015,284$ 37,180,284$ 61 Page 69 of 1797 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, 2024 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, 2024 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. This refunding resulted in a savings or economic gain in the debt service between the refunded and refunding debt of $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, 2023, net revenues of $552,951 were available to pay debt service of $210,066. Remaining debt service was $2,085,888. 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 Bonds, Series 2021, original principal amount of $8,665,000, dated July 15, 2021, consisting of serial bonds due annually from December 1, 2023 through December 1, 2045. Interest is payable semi-annually at a 4% rate on all outstanding bonds. The bonds were issued to finance miscellaneous storm water system improvement projects. The bonds are payable solely from the revenues of the Storm Water system. In 2023 net revenues of $2,855,619 were available to pay debt service of $2,124,352. Remaining debt service was $12,005,050. 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: Qualified Energy Conservation Bonds The City issued Qualified Energy Conservation Bonds in 2010. The original principal amount of $1,355,302 dated August 19, 2010. Principal and interest are due quarterly with an interest rate of 5.41% through July 19, 2026. The interest payments are partially offset by credits from the Federal Government under Section 1112 of the American Recovery and Reinvestment Act of 2009, “Section 54D” that authorizes states and political subdivisions to issue qualified energy conservation bonds “QECBs”. Proceeds will be used for qualified energy conservation purposes. Payments are made by the General Fund. In the event of a City default on its obligations, owners of the outstanding obligation may terminate the lease, or pursue any remedy authorized by law. Annual debt service requirements for the qualified energy conservation bonds are as follows: Principal Interest Total 2024 370,000$ 383,816$ 753,816$ 2025 385,000 367,517 752,517 2026 395,000 350,242 745,242 2027 430,000 332,410 762,410 2028 450,000 312,673 762,673 2029-2033 2,535,000 1,235,630 3,770,630 2034-2038 2,005,000 718,500 2,723,500 2039-2043 2,355,000 372,900 2,727,900 2044-2045 1,045,000 47,250 1,092,250 9,970,000$ 4,120,938$ 14,090,938$ Principal Interest Total 2024 120,070$ 6,542$ 126,612$ 2025 126,627 3,882 130,509 2026 99,039 1,078 100,117 345,736$ 11,502$ 357,238$ 62 Page 70 of 1797 Loans payable Colorado Water Resources and Power Development Authority to fund sewer and storm waters systems improvements: The CWRPDA loans are payable solely from revenues of the City’s Sewer and Storm Drainage funds, after deducting operating and maintenance costs. For the year ended December 31, 2023, Sewer revenues of $8,527,812 were available to pay debt service of $4,075,043. Remaining debt service was $8,083,900. For the year ended December 31, 2023, Storm revenues of $2,855,619 were available to pay debt service of $1,621,541. Remaining debt service was $30,809,287. Annual debt service requirements to maturity for loans payable are as follows: Servicing Issue Original Interest Outstanding Last Payment Fund Date Amount Rate Balance Due Storm Water 10/12/2022 26,000,000 2.250% 24,957,628 11/01/42 Sewer* 5/1/2004 29,564,275 3.870%7,807,109 08/01/25 Total 32,764,737$ * In 2013, the sewer 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 S ewer Fund $2,067,000. Business-type Activities Principal Interest Total 2024 4,865,167$ 829,470$ 5,694,637$ 2025 5,097,975 534,370 5,632,345 2026 1,114,741 506,801 1,621,542 2027 1,139,964 481,578 1,621,542 2028 1,165,757 455,784 1,621,541 2029-2033 6,236,582 1,871,124 8,107,706 2034-2038 6,974,804 1,132,903 8,107,707 2039-2042 6,169,747 316,421 6,486,168 32,764,737$ 6,128,451$ 38,893,188$ 63 Page 71 of 1797 Long-term liability activity for the year ended December 31, 2023 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, Sewer and Golf 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, 2023, this limit was $224,573,814 providing a debt margin of $199,625,778. Note 3. Other Information A. Investment in Joint Venture The City participates with the City of Littleton, Colorado in a joint venture for the operation of a wastewater treatment facility ("South Platte Water Renewal Partners” or "Joint Venture"). Control of the Joint Venture vests in a four-member committee, with two members appointed by each City. Each City owns a 50 percent interest in the Joint Venture, and oversight responsibilities are divided equally. The City's investment in the Joint Venture is accounted by the equity method in the Sewer Fund. Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: General Obligation Bonds: Series 2010 Refunding 590,000$ -$ 590,000$ -$ -$ Premium/(Discount)19,587 - 19,587 - - Series 2017 21,625,000 - 1,105,000 20,520,000 1,155,000 Premium/(Discount)4,666,485 - 238,449 4,428,036 - Subtotal general obligation bonds 26,901,072 - 1,953,036 24,948,036 1,155,000 Other: Qualified Energy Conservation Bonds 459,491 - 113,755 345,736 120,070 Lease Liability 373,796 - 49,962 323,834 - Compensated absences 1,622,776 264,948 - 1,887,724 943,862 Governmental activity total Long-term liabilities 29,357,135$ 264,948$ 2,116,753$ 27,505,330$ 2,218,932$ Business-type activities: General Obligation Water Bonds, 2012 6,245,000$ - 540,000 5,705,000$ 560,000$ Premium/(Discount)252,522 - 24,788 227,734 - General Obligation Water Refunding Note, 2019 2,130,000 - 190,000 1,940,000 190,000 Subtotal general obligation bonds 8,627,522 - 754,788 7,872,734 750,000 Revenue Bonds payable: Golf Course Refunding Bonds, 2013 1,660,000 - 115,000 1,545,000 120,000 Storm Water Series, 2021 8,665,000 - 240,000 8,425,000 250,000 Premium/(Discount)1,320,718 - 36,581 1,284,137 - Subtotal revenue bonds 11,645,718 - 391,581 11,254,137 370,000 Notes and loans payable: CWR&PDA Sewer Loan, 2004 11,493,949 - 3,686,839 7,807,110 3,799,210 Premium/(Discount)14,420 - 10,009 4,411 - State Revolving Fund Storm Water Loan, 2022 26,000,000 - 1,042,372 24,957,628 1,065,957 Other: Lease Liability 26,866 - 26,866 - - Compensated absences 245,424 82,412 - 327,836 163,917 Business-type activity total Long-term liabilities 58,053,899$ 82,412$ 5,912,455$ 52,223,856$ 6,149,084$ 64 Page 72 of 1797 Summary audited financial information as of and for the year ended December 31, 2023 follows: The City’s Sewer Fund has reflected a net gain from Joint Venture for $1,567,224. This amount includes the City’s share of the Joint Venture’s net loss of $4,599,229 less capital contributions from the City to the Joint Venture of $6,166,453. 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 $150,000. The City established a Risk Management Fund (an internal service fund) to account for and finance these risks of loss. For claims in excess of these amounts, the City participates in the Colorado Intergovernmental Risk Sharing Agency (CIRSA). All funds of the City participate in the Risk Management Fund. Amounts payable to the Risk Management Fund are based on historical claims experience. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimated. Changes in the balance of claims liabilities during the years ended December 31, 2023 and 2022 are as follows: Colorado Intergovernmental Risk Sharing Agency (CIRSA) CIRSA is a separate legal entity established by member municipalities pursuant to the provisions of Colorado Revised Statutes and the Colorado Constitution. The City has participated in CIRSA since its inception in 1982. CIRSA is a joint self-insurance pool created by intergovernmental agreement to provide property, general and automobile liability, workers’ compensation and public official’s coverage to its members. A seven member Board elected by and from its members governs CIRSA. Total City's Share Assets Current assets 5,046,459$ 2,523,229$ Capital assets, net 104,124,018 52,062,009 Total assets 109,170,477 54,585,238 Liabilities Total liabilities 4,700,152 2,350,076 Net position 104,470,325$ 52,235,162$ Revenues 32,433,365$ 16,216,683$ Expenses 29,298,917 14,649,459 Change in net position 3,134,448$ 1,567,224$ Property &Workers’ Liability Compensation Totals Unpaid claims - December 31, 2021 144,841$ 263,420$ 408,261$ Incurred claims (including claims reserve)543,677 150,193 693,870 Claim payments (394,471) (153,991) (548,462) Unpaid claims - December 31, 2022 294,047 259,622 553,669 Incurred claims (including claims reserve)211,880 304,364 516,244 Claim payments (290,654) (288,308) (578,962) Unpaid claims - December 31, 2023 215,273$ 275,678$ 490,951$ 65 Page 73 of 1797 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. 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) 66 Page 74 of 1797 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. 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 67 Page 75 of 1797 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, 2023: Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions - At December 31, 2023, the City reported a net pension liability of $6,301,964. The net pension liability was measured as of December 31, 2023 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2023, and standard update procedures were used to roll forward the total pension liability to December 31, 2023. For the year ended December 31, 2023, the City recognized pension income of $78,702. At December 31, 2023, 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, 2023 actuarial valuation was used to determine the Actuarially Determined Contribution for the fiscal year ending December 31, 2023. The valuation used the following actuarial assumption and other inputs: Rate of return - For the year ended December 31, 2023, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 12.51%. 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. Asset Class Target Allocation Long-Term Expected Rate of Return Domestic Fixed Income 18.8%2.8% Domestic Equity 40.5%7.0% International Equity 27.1%8.0% Real Estate 9.5%7.0% Other 4.1%4.5% Total 100% Deferred Outflows of Resources Deferred Inflows of Resources Net difference between expected and actual investment earnings $ 650,946 $ - Net difference in expected and actual experience 65,399 Total 716,345$ -$ Year ended December 31: 2024 (44,234)$ 2025 311,012 2026 928,542 2027 (478,975) Total 716,345$ 68 Page 76 of 1797 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 were 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% 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, 2023 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. 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. 1% Decrease (5%) Discount Rate (6%) 1% Increase (7%) Net pension liability 11,130,860$ 6,301,964$ 2,491,404$ Total pension liability 46,152,109$ Plan fiduciary net position (39,850,145) Plan net pension liability 6,301,964$ Plan fiduciary net position as a percentage of total liability 86.35% 69 Page 77 of 1797 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 rate to the SWDB plan beginning in 2016. Member contribution rates increase 0.5 percent annually through 2022 to a total of 12.0 percent of base salary. Employer contributions increase 0.5 percent annually beginning in 2021 through 2030 to a total of 13.0 percent. Employees contributed 12.0 percent of base salary for the year ended December 31, 2023 and the City contributed 9.5 percent or $408,620. 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 2023 for a total combined member and employer contribution rate of 24 percent in 2023. Employees contributed 14.0 percent of base salary for the year ended December 31, 2023 and the City contributed 10 percent or $315,155. 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 2023 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 13.9%. Members and the City each contributed $5,746 in 2023. 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, 2023, the City reported a net pension liability of ($631,474) 70 Page 78 of 1797 for its proportional share of the net pension asset of the SWDB Plan and net pension asset of $15,008 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, 2022, and the total pension liability used to calculate the net pension asset and liability was determined by an actuarial valuation as of January 1, 2023. 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, 2022, the City’s SWDB proportion was 0.711 percent, which was a decrease of 0.033 percent from its proportion measured as of December 31, 2021. At December 31, 2022, the City’s SWH proportion was 1.029 percent, which was a decrease of 0.001 from its proportion measured as of December 31, 2021. For the year ended December 31, 2023, the City recognized pension (income)/expense for the SWDB Plan and SWH Plan of ($500,089) and $226,502 respectively. At December 31, 2023, for the SWDB 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 SWDB Plan subsequent to the measurement date of $723,775 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, 2023, 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 $18,943 will be recognized as an increase to the net pension asset in the subsequent fiscal year. Other amounts reported as deferred outflows Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 723,775 $- Net difference between expected and actual investment earnings -(1,147,431) Difference in expected and actual experience 1,940,867 (76,862) Changes in assumptions 1,543,467 - Changes in proportion 4,236 (366,261) Total 4,212,345$ (1,590,554)$ Year ended December 31: 2024 (39,054)$ 2025 299,475 2026 636,604 2027 533,281 2028 385,084 Thereafter 82,626 Total 1,898,016$ Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $5,741 $- Net difference between expected and actual investment earnings -(46,195) Difference in expected and actual experience 51,154 - Changes in assumptions 17,910 - Changes in proportion 31,483 (5,603) Total 106,288$ (51,798)$ 71 Page 79 of 1797 of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Actuarial Assumptions - The January 1, 2022 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, 2023 is based upon the January 1, 2022 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, 2022 are summarized in the following table: 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: 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% Asset Class Target Allocation Long-Term Expected Rate of Return Global equity 35.0%8.93% Equity Long/Short 6.0%7.47% Private Markets 34.0%10.31% Fixed Income - Rates 10.0%5.45% Fixed Income - Credit 5.0%6.90% Absolute Return 9.0%6.49% Cash 1.0%3.92% Total 100.0% 72 Page 80 of 1797 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 MissionSquare Retirement. 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% 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, 2023, the City reported a net pension liability of $2,978,089. The net pension liability was measured as of December 31, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2023. For the year ended December 31, 2023, the City recognized pension expense of $236,936. At December 31, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 1% Decrease (6.0%) Discount Rate (7.0%) 1% Increase (8.0%) City's proportionate share of the SWDB net pension liability (asset)4,353,299$ 631,474$ (2,451,402)$ 1% Decrease (6%) Discount Rate (7%) 1% Increase (8%) City's proportionate share of the SWH net pension liability (asset)113,325$ (15,008)$ (122,668)$ 73 Page 81 of 1797 The City’s contributions to the Plan subsequent to the measurement date of $466,243 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, 2023 actuarial valuation was used to determine the total pension liability for the fiscal year ending December 31, 2023. The valuation used the following actuarial assumptions and other inputs: There were no changes to the actuarial assumptions. 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: Deferred Outflows of Resources Deferred Inflows of Resources Contribution timing $ 466,243 $ - Net difference between expected and actual investment earnings 225,437 - Total 691,680$ -$ Year ended December 31: 2024 3,999$ 2025 42,539 2026 69,865 2027 109,034 Total 225,437$ Long-term investment rate of return 6.50% Municipal bond rate 2.00% Asset Class Target Allocation Long-Term Expected Rate of Return Cash 5.0%4.4% Fixed Income - Rates 30.0%4.9% Fixed Income - Credit 6.0%6.6% Absolute Return 6.0%6.9% Long Short 6.0%6.7% Gobal Public Equity 17.0%8.7% Private Capital 30.0%10.2% Total 100.0% 74 Page 82 of 1797 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. 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, 2023, the City reported a net pension liability of $2,720,092. The net pension liability was measured as of December 31, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2023. For the year ended December 31, 2022, the City recognized pension expense of $228,034. At December 31, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 1% Decrease (5.5%) Discount Rate (6.5%) 1% Increase (7.5%) Police Officers (Old Hire) net pension liability 3,504,058$ 2,798,089$ 2,520,718$ Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 388,133 $ - Net difference between expected and actual investment earnings 274,799 - Total 662,932$ -$ 75 Page 83 of 1797 The City’s contributions to the Plan subsequent to the measurement date of $388,133 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, 2023 actuarial valuation was used to determine the total pension liability for the fiscal year ending December 31, 2023. The valuation used the following actuarial assumptions and other inputs: 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. Year ended December 31: 2024 (622)$ 2025 51,595 2026 86,707 2027 137,119 Total 274,799$ Long-term investment rate of return 6.50% Municipal bond rate 2.00% Asset Class Target Allocation Long-Term Expected Rate of Return Cash 5.0%4.4% Fixed Income - Rates 30.0%4.9% Fixed Income - Credit 6.0%6.6% Absolute Return 6.0%6.9% Long Short 6.0%6.7% Gobal Public Equity 17.0%8.7% Private Capital 30.0%10.2% Total 100.0% 1% Decrease (5.5%) Discount Rate (6.5%) 1% Increase (7.5%) Firefighers (Old Hire) net pension liability 3,208,825$ 2,720,092$ 2,287,372$ 76 Page 84 of 1797 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 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, 2023, the City reported a net pension liability of $10,189. The net pension liability was measured as of December 31, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2023. For the year ended December 31, 2023, the City recognized pension income of $20,537. At December 31, 2023, 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, 2023 actuarial valuation was used to determine the total pension liability for the fiscal year ending December 31, 2023. The valuation used the following actuarial assumptions and other inputs: Deferred Outflows of Resources Deferred Inflows of Resources Contribution Timing $ 13,796 $ - Net difference between expected and actual investment earnings 1,222 - Total 15,018$ -$ Year ended December 31: 2024 (289)$ 2025 74 2026 485 2027 951 Total 1,221$ Long-term investment rate of return 7.00% Municipal bond rate 2.00% 77 Page 85 of 1797 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 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. Pension liabilities, assets, deferred outflows, deferred inflows and pension expense/(income) for the City’s plans are listed below: Asset Class Target Allocation Long-Term Expected Rate of Return Cash 1.0%3.9% Fixed Income - Rates 10.0%5.5% Fix ed Income - Credit 5.0%6.9% Absolute Return 9.0%6.5% Long Short 6.0%7.5% Gobal Public Equity 35.0%8.9% Private Capital 34.0%10.3% Total 100.0% Decrease (6.0%) Rate (7.0%) 1% Increase (8.0%) Volunteer Firefighters net pension liability (8,198)$ (10,189)$ (11,941)$ Pension Liability Pension Asset Deferred Outflows Deferred Inflows Pension Expense/(Income) Nonemergency Plan 6,301,964$ -$ 716,345$ -$ (78,702)$ Police State-wide defined benefit plan 631,474 - 4,212,345 (1,590,554) (500,089) Police State-hybrid plan - 15,008 106,288 (51,798) 226,502 Police Old Hire plan 2,978,089 - 691,680 - 236,936 Firefighter Old Hire plan 2,720,092 - 662,932 - 228,034 Volunteer Firefighter Old Hire Plan 19,456 - 15,018 - (20,537) 12,651,075$ 15,008$ 6,404,608$ (1,642,352)$ 92,144$ 78 Page 86 of 1797 Schedule of Net Pension Liability and Pension Expense 2023 Net Pension (Asset)/Liability Nonemergency Plan 6,301,964$ Police Officer Old Hire Plan 2,978,089 Firefighter Old Hire Plan 2,720,092 Volunteer Firefighter Plan (10,189) Police Officers Statewide Defined Benefit (SWDB) Plan 631,474 Police Officers Statewide Hybrid (SWH) Plan (15,008) Total Net Pension (Asset)/Liability 12,606,422$ Pension (Income)/Expense Nonemergency Plan (78,702)$ Police Officer Old Hire Plan 236,936 Firefighter Old Hire Plan 228,034 Volunteer Firefighter Plan (20,537) Police Officers Statewide Defined Benefit (SWDB) Plan (500,089) Police Officers Statewide Hybrid (SWH) Plan 226,502 Total Pension (Income)/Expense 92,144$ 2023 Aggregate Schedule of Changes in Net Pension/OPEB Liability NERP Police OH Fire OH Volunteer Fire OH OPEB Total pension/OPEB liability Service cost 379,007$ -$ -$ -$ 134,025$ Interest 2,704,250 419,857 457,709 3,270 111,492 Differences between expected and actual experience 187,060 - - (22,657) - Changes of assumptions - - - 121 114,071 Benefit payments, including refunds of member contributions (3,245,996) (680,888) (847,453) (2,475) (279,824) Net change in total pension/OPEB liability 24,321 (261,031) (389,744) (21,741) 79,764 Total pension/OPEB liability--beginning 46,127,788 6,794,422 7,458,733 47,925 5,727,254 Total pension/OPEB liability--ending 46,152,109$ 6,533,391$ 7,068,989$ 26,184$ 5,807,018$ Plan fiduciary net position Contributions--employer 1,057,618$ 466,243$ 388,133$ 13,796$ -$ Contributions--member 144,208 - - - - Net investment income 4,573,634 (287,961) (363,790) (2,412) - Benefit payments, including refunds of member contributions (3,245,996) (680,888) (847,453) (2,475) - Administrative expense (27,980) (10,655) (11,468) (1,005) - Net change in plan fiduciary net position 2,501,484 (513,261) (834,578) 7,904 - Plan fiduciary net position--beginning 37,348,661 4,068,563 5,183,475 28,470 - Plan fiduciary net position--ending 39,850,145$ 3,555,302$ 4,348,897$ 36,374$ -$ Plan net pension/OPEB liability--ending 6,301,964$ 2,978,089$ 2,720,092$ (10,190)$ -$ 79 Page 87 of 1797 The actuarial 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 MissionSquare Retirement Money Purchase Management Plan - Defined Contribution Nonemergency Employees Money Purchase Plan (NEMP) - Defined Contribution MissionSquare Retirement Money Purchase Police Plan - Defined Contribution MissionSquare Retirement 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 MissionSquare Retirement. 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 MissionSquare Retirement. 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. MissionSquare Retirement 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 MissionSquare Retirement. 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 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. Nonemergency Police Officers Firefighters Volunteer Pension Plan Old Hire Old Hire Firefighters Current membership: Inactive plan members and beneficiaries receiving benefits 220 30 33 1 Inactive plan members entitled to but not yet receiving benefits 54 --- Active plan members 67 --- 341 30 33 1 Contribution Rates: City 22.20%N/A N/A N/A Plan members 3.0%N/A N/A N/A Annual pension cost (APC)$1,057,618 $446,243 $388,133 $13,796 Contributions made $1,057,043 $446,243 $388,133 $13,796 Net pension obligation $575 $0 $0 $0 Percentage of APC contributed 100%100%100%100% Actuarial valuation date 1/1/2023 1/1/2022 1/1/2022 1/1/2023 80 Page 88 of 1797 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, 2023, 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 MissionSquare Retirement. 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, 2023 the City and employees each contributed $97,868. 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 benefit post-employment healthcare plan. The City pays amounts that range from $50 to $100 dependent on which employment contract (or policy) the individual was under while employed by the City. The Retiree Assistance Plan does not issue a publicly available financial report. Funding Policy. The plan is financed on a pay-as-you-go basis with the expected benefits being budgeted annually within the General fund and other funds where appropriate. The plan has no assets and is not administered through a trust that meets the criteria in paragraph 4 of GASB statement 75. City Management NEMP Police Employers required, which equal actual contributions: Amount 233,208$ 1,615,709$ 68,559$ As a percent of covered payroll 10.00% 7.00% 10.00% Employees required, which equal actual contributions: Amount 139,506$ 695,839$ 68,559$ As a percent of covered payroll 6.00% 3.00% 10.00% 81 Page 89 of 1797 Summary of the number of participants in the plan as of January 1, 2023 Inactive Plan Members or Beneficiaries Currently Receiving Benefits 214 Active Plan Members 453 Total Plan Members 667 Actuarial Assumptions and Methods Valuation Date:1/1/2024 Actuarial Cost Method Individual Entry-Age Normal Discount Rate 4.05% as of 12/31/2022 Inflation 2.50% Salary Increases 2.8% to 5.8% based on age Demographic Assumptions Based on the pension plan in which plan members participate Mortality Pub-2010 Amount Weighted with General Mortality Table with future generational improvements using scale MP 2019 Participation Rates 100% The Discount Rate is based on the Fidelity 20-Year Municipal GO AA Index. The discount rate changed from 1.84% to 4.05% Sensitivity of the total OPEB liability to changes in the discount rate. The following shows the total OPEB liability as well as what the total OPEB liability would be if the discount rate were 1% lower or 1% higher. 1% Decrease Discount Rate 1% Increase 3.05%4.05%5.05% Total OPEB Liability 4,626,277$ 4,165,070$ 3,779,171$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended December 31, 2022 the plan recognized OPEB expense of ($41,311) Deferred Outflows Deferred Inflows of Resources of Resources Contribution timing 295,773$ -$ Difference between expected and actual experience 52,395 (250,045) Changes in assumptions 394,572 (933,005) 742,740$ (1,183,050)$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended 12/31 Amount 2024 (56,909)$ 2025 (155,753) 2026 (221,744) 2027 (251,009) 2028 (61,073) Thereafter 10,405 (736,083)$ Members of the Englewood Employees Association hired after 01/01/2023 are not elegibleMembers of the Englewood Police Bargaining Association who retire on or after 01/01/2023 cease to receive benefits upon reaching medicare eligibility age 82 Page 90 of 1797 F. Voter Approved Dedicated Sales Tax Required Reporting On November 8, 2022 the voters of Englewood Colorado approved a sales tax increase to be dedicated for specific purposes. A total increase of 0.3 percent was approved. 0.2 of that increase is dedicated for repaving, repairing, maintaining, and improving city streets and roads. 0.1 of that increase is dedicated for alternate policing services to address matters including homelessness, mental health and addiction. The 2023 breakdown of spending is: 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. Streets maintenance = 0.2% dedicated sales tax Projects/Programs Category Amount Streets in Zone 2, Stanford, Broadway, Dartmouth and Belleview Street ashpalt milling and paving Streets in Zone 3, Mansfield Streets in Zone 5, Tejon, Vallejo, Harvard and Bates Total Spending on street ashalt milling and paving in 2023 4,865,777$ 2023 Maximum paid by dedicated sales tax 1,957,596$ Alternate policing = 0.1% dedicated sales tax Projects/Programs Category Amount Co-responders-contract Mental Health/Homelessness/Addiction 262,650$ Zone Policing-staff time Mental Health/Homelessness/Addiction 257,731 Impact team-staff time Mental Health/Homelessness/Addiction 67,853 Lieutenant/Sergeant-staff time Mental Health/Homelessness/Addiction 80,250 Mobile response unit-dispatch staff time Mental Health/Homelessness/Addiction 122,488 Police Officer-staff time Mental Health/Homelessness/Addiction 365,958 Code Enforcement Officer-staff time Mental Health/Homelessness/Addiction 63,544 Total Spending on mental health/homelessness and addiction in 2023 1,220,474$ 2023 Maximum paid by dedicated sales tax 978,455$ Total 2023 dedicated sales tax revenue spent 2,936,051$ 83 Page 91 of 1797 CITY OF ENGLEWOOD, COLORADO General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended December 31, 2023 With Comparative Totals for December 31, 2022 Variance with Budgeted Amounts Actual Final Budget - 2022 Revenues Original Final Amounts Positive/(Negative)Actual Taxes Property 5,171,000$ 5,171,000$ 5,185,365$ 14,365$ 5,237,114$ Specific ownership 530,000 530,000 529,429 (571) 541,156 Sales and use 38,665,000 41,601,051 42,337,842 736,791 40,370,334 Franchise 3,915,000 3,915,000 3,973,555 58,555 3,919,991 Hotel/motel 25,000 25,000 78,942 53,942 63,454 Total taxes 48,306,000 51,242,051 52,105,133 863,082 50,132,049 Licenses and Permits Business licenses and permits 246,800 246,800 383,610 136,810 351,342 Building licenses and permits 872,500 872,500 1,729,102 856,602 2,844,172 Total licenses and permits 1,119,300 1,119,300 2,112,712 993,412 3,195,514 Intergovernmental State shared revenue 1,250,925 1,250,925 1,250,189 (736) 1,232,578 Federal grants 15,100 15,100 9,600 (5,500) 9,600 State grants 77,428 77,428 45,452 (31,976) 74,192 Local grants 9,000 9,000 9,902 902 6,701 Payment in lieu of taxes 38,000 38,000 37,933 (67) 46,844 Total intergovernmental 1,390,453 1,390,453 1,353,076 (37,377) 1,369,915 Charges for Services Recreation programs 3,124,110 3,124,110 2,605,968 (518,142) 2,420,253 General government 3,514,402 3,514,402 3,180,029 (334,373) 2,657,140 Public safety 17,200 17,200 13,510 (3,690) 19,412 Administration of joint venture 480,000 480,000 603,014 123,014 541,497 Highway and street 41,500 41,500 30,649 (10,851) 71,517 Total charges for services 7,177,212 7,177,212 6,433,170 (744,042) 5,709,819 Fines and Forfeitures 537,025 537,025 381,785 (155,240) 372,840 Net Investment Income 154,500 154,500 923,831 769,331 (246,711) Contributions from component units 1,800,000 1,800,000 1,933,543 133,543 1,765,465 Other 913,825 913,825 961,724 47,899 2,609,228 Total Revenues 61,398,315 64,334,366 66,204,974 1,870,608 64,908,119 Schedules of Required Supplementary Information 84 Pa g e 9 2 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO (Continued) General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended December 31, 2023 With Comparative Totals for December 31, 2022 Variance with Budgeted Amounts Actual Final Budget - 2022 Expenditures Original Final Amounts Positive/(Negative)Actual General Government Legislation City Council 202,380$ 202,380$ 200,281$ 2,099$ 220,734$ Board of Adjustments and Appeals 1,021 1,021 2,116 (1,095) 345 Planning and Zoning Commission 6,625 6,625 235 6,390 584 Library Board 3,000 3,000 2,887 113 1,520 Parks and Recreation Commission 1,625 1,625 1,299 326 - Code Enforcement Advisory Commission 500 500 - 500 - Cultural Arts Commission 300 300 21 279 85 Transportation Advisory Commission 200 200 3 197 - Sustainability Commission 76,100 76,100 49,767 26,333 52,891 Historic Preservation Commission 4,413 4,413 575 3,838 145 Total Legislation 296,164 296,164 257,184 38,980 276,304 City Attorney 1,175,150 1,191,059 1,030,706 160,353 1,001,558 Municipal Court 1,549,949 1,634,321 1,374,751 259,570 1,170,984 City Manager City Manager 781,694 1,040,220 891,721 148,499 739,067 City Clerk 632,210 835,095 870,906 (35,811) 489,561 Communications 901,754 931,824 931,600 224 828,788 Total City Manager 2,315,658 2,807,139 2,694,227 112,912 2,057,416 Community Development 3,062,174 3,156,772 2,921,784 234,988 3,085,615 Finance Finance Administration 453,258 480,381 606,035 (125,654) 468,292 Accounting 898,086 912,843 785,051 127,792 748,966 Revenue and budget 554,911 569,297 411,564 157,733 469,553 Purchasing 218,976 222,758 176,511 46,247 196,268 Total Finance 2,125,231 2,185,279 1,979,161 206,118 1,883,079 Human Resources 928,566 1,098,451 1,076,522 21,929 1,483,411 Information Technology 4,646,400 4,748,147 4,575,939 172,208 3,778,721 Contingency 2,275,598 519,601 514,577 5,024 228,720 Total General Government 18,374,890 17,636,933 16,424,851 1,212,082 14,965,808 85 Pa g e 9 3 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO (Continued)General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual For the Year Ended December 31, 2023 With Comparative Totals for December 31, 2022 Variance with Budgeted Amounts Actual Final Budget - 2022 Original Final Amounts Positive/(Negative)Actual Public Safety Police Administration 3,465,326$ 3,514,264$ 3,651,575$ (137,311)$ 2,980,224$ Communications and records 2,061,006 2,190,879 2,134,205 56,674 1,824,539 Police operations 11,405,895 12,222,659 11,694,720 527,939 10,552,583 Code Enforcement 805,270 828,224 699,863 128,361 565,906 Total Police Department 17,737,497 18,756,026 18,180,363 575,663 15,923,252 Fire Services Fire and emergency management 7,175,947 7,175,947 7,166,835 9,112 6,975,762 Fire marshal's office 518,815 527,862 465,121 62,741 447,008 Total Fire Services 7,694,762 7,703,809 7,631,956 71,853 7,422,770 Total Public Safety 25,432,259 26,459,835 25,812,319 647,516 23,346,022 Public Works Administration 743,603 760,238 857,763 (97,525) 977,214 Engineering 1,816,119 1,850,943 1,868,654 (17,711) 1,572,346 Streets and drainage 2,616,615 4,582,181 4,117,779 464,402 1,917,732 Traffic engineering 1,020,477 1,052,149 676,424 375,725 877,612 General operations and maintenance 2,888,312 2,924,347 3,492,890 (568,543) 2,598,194 Total Public Works 9,085,126 11,169,858 11,013,510 156,348 7,943,098 Parks and Recreation Administration 67,882 91,437 347,385 (255,948) 356,346 Recreation programs and operations 4,208,761 4,980,979 4,604,773 376,206 3,899,258 Parks 3,221,674 3,148,778 3,235,341 (86,563) 2,838,063 Total Parks and Recreation 7,498,317 8,221,194 8,187,499 33,695 7,093,667 Library Services 1,402,202 1,835,058 1,698,128 136,930 1,209,249 Debt Service Principal - - - - 2,812,000 Interest and other charges 137,817 137,817 133,006 4,811 162,178 Total debt service 137,817 137,817 133,006 4,811 2,974,178 Total expenditures 61,930,611 65,460,695 63,269,313 2,191,382 57,532,022 Excess revenues over (under) expenditures (532,296) (1,126,329) 2,935,661 4,061,990 7,376,097 Other financing sources (uses) Transfers in 137,817 137,817 137,817 - 134,122 Transfers out (1,197,000) (3,431,820) (3,485,578) 53,758 (395,642) Component unit dissolution - - 1,093,058 1,093,058 - Total other financing sources (1,059,183) (3,294,003) (2,254,703) 1,146,816 (261,520) Net change in fund balances (1,591,479) (4,420,332) 680,958 5,208,806 7,114,577 Fund Balance - beginning 10,873,846 21,553,236 24,160,290 2,607,054 17,045,713 Fund Balance - ending 9,282,367$ 17,132,904$ 24,841,248$ 7,815,860$ 24,160,290$ See Independent Auditor's Report 86 Pa g e 9 4 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability Service cost 379,007$ 326,653$ 358,293$ 401,781$ 326,687$ 349,999$ 380,290$ 385,425$ 333,228$ 353,751$ Interest 2,704,250 2,701,972 2,744,360 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 187,060 (576,454) (324,876) 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 (3,245,996) (3,214,089) (3,187,961) (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 24,321 (761,918) (410,184) 2,829,896 148,020 483,411 837,222 3,013,253 933,325 1,084,775 Total pension liability--beginning 46,127,788 46,889,706 47,299,890 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 46,152,109$ 46,127,788$ 46,889,706$ 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 1,057,618$ 1,218,466$ 1,241,263$ 1,176,235$ 1,151,759$ 1,203,145$ 1,254,382$ 1,226,140$ 1,265,441$ 1,153,840$ Contributions--member 144,208 132,748 131,991 135,257 140,505 154,740 170,877 176,847 183,405 185,075 Plan net investment income 4,573,634 (4,471,830) 5,438,718 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 (3,245,996) (3,214,089) (3,187,961) (3,055,168) (3,004,777) (2,801,839) (2,508,319) (2,282,400) (2,074,554) (1,885,640) Administrative expense (27,980) (21,745) (20,970) (30,960) (24,064) (10,826) - (15,706) (87,915) (92,784) Net change in plan fiduciary net position 2,501,484 (6,356,450) 3,603,041 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 37,348,661 43,705,111 40,102,070 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 39,850,145$ 37,348,661$ 43,705,111$ 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 6,301,964$ 8,779,127$ 3,184,595$ 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 86.35%80.97%93.21%84.78%84.49%76.13%85.44%78.75%79.91%84.43% Covered payroll 4,764,045$ 4,424,933$ 4,399,700$ 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 132.28%198.40%72.38%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 expense 12.51%-10.51%13.82%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 See Independent Auditor's Report Nonemergency Pension Plan for the last 10 years Schedule of Changes in the Net Pension Liability and Related Ratios Schedules of Required Supplementary Information 87 Pa g e 9 5 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability Interest 419,857$ 501,281$ 518,479$ 559,479$ 579,107$ 612,150$ 630,450$ 623,735$ 643,718$ Differences between expected and actual experience - (1,040,263) - 224,503 - (199,738) - 14,706 - Changes of assumptions - - - 562,454 - - - 346,977 - Benefit payments, including refunds of member contributions (680,888) (745,497) (819,442) (837,444) (844,059) (861,594) (886,847) (904,618) (915,494) Net change in total pension liability (261,031) (1,284,479) (300,963) 508,992 (264,952) (449,182) (256,397) 80,800 (271,776) Total pension liability--beginning 6,794,422 8,078,901 8,379,864 7,870,872 8,135,824 8,585,006 8,841,403 8,760,603 9,032,379 Total pension liability--ending 6,533,391$ 6,794,422$ 8,078,901$ 8,379,864$ 7,870,872$ 8,135,824$ 8,585,006$ 8,841,403$ 8,760,603$ Plan fiduciary net position Contributions--employer 466,243$ 466,243$ 445,045$ 445,045$ 445,045$ 445,045$ 434,671$ 451,389$ 442,700$ Net investment income (287,961) 440,975 378,924 466,936 5,974 570,932 216,957 85,692 319,096 Benefit payments, including refunds of member contributions (680,888) (745,497) (819,442) (837,444) (844,059) (861,594) (886,847) (904,618) (915,494) Administrative expense (10,655) (8,021) (9,126) (8,073) (10,491) (8,077) (8,976) (7,693) (10,526) Net change in plan fiduciary net position (513,261) 153,700 (4,599) 66,464 (403,531) 146,306 (244,195) (375,230) (164,224) Plan fiduciary net position--beginning 4,068,563 3,914,863 3,919,462 3,852,998 4,256,529 4,110,223 4,354,418 4,729,648 4,893,872 Plan fiduciary net position--ending 3,555,302$ 4,068,563$ 3,914,863$ 3,919,462$ 3,852,998$ 4,256,529$ 4,110,223$ 4,354,418$ 4,729,648$ Plan net pension liability--ending 2,978,089$ 2,725,859$ 4,164,038$ 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 54.42%59.88%48.46%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 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 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 88 Pa g e 9 6 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability Interest 457,709$ 490,495$ 513,928$ 564,052$ 589,138$ 619,186$ 642,186$ 630,618$ 656,039$ Differences between expected and actual experience - (144,728) - 120,920 - (83,986) - 72,443 - Changes of assumptions - - - 607,534 - - - 419,287 - Benefit payments, including refunds of member contributions (847,453) (852,806) (895,383) (915,390) (931,563) (939,959) (957,421) (978,436) (1,010,928) Net change in total pension liability (389,744) (507,039) (381,455) 377,116 (342,425) (404,759) (315,235) 143,912 (354,889) Total pension liability--beginning 7,458,733 7,965,772 8,347,227 7,970,111 8,312,536 8,717,295 9,032,530 8,888,618 9,243,507 Total pension liability--ending 7,068,989$ 7,458,733$ 7,965,772$ 8,347,227$ 7,970,111$ 8,312,536$ 8,717,295$ 9,032,530$ 8,888,618$ Plan fiduciary net position Contributions--employer 388,133$ 388,133$ 286,886$ 286,886$ 283,390$ 283,390$ 222,800$ 231,369$ 237,746$ Net investment income (363,790) 567,476 494,305 629,202 9,605 793,208 305,148 123,540 461,838 Benefit payments, including refunds of member contributions (847,453) (852,806) (895,383) (915,390) (931,563) (939,959) (957,421) (978,436) (1,010,928) Administrative expense (11,468) (8,490) (9,642) (8,699) (11,351) (8,829) (11,830) (10,464) (14,067) Net change in plan fiduciary net position (834,578) 94,313 (123,834) (8,001) (649,919) 127,810 (441,303) (633,991) (325,411) Plan fiduciary net position--beginning 5,183,475 5,089,162 5,212,996 5,220,997 5,870,916 5,743,106 6,184,409 6,818,400 7,143,811 Plan fiduciary net position--ending 4,348,897$ 5,183,475$ 5,089,162$ 5,212,996$ 5,220,997$ 5,870,916$ 5,743,106$ 6,184,409$ 6,818,400$ Plan net pension liability--ending 2,720,092$ 2,275,258$ 2,876,610$ 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 61.52%69.50%63.89%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 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 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 89 Pa g e 9 7 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability Interest 3,270$ 3,384$ 4,125$ 4,617$ 6,571$ 7,543$ 6,604$ 5,752$ 7,293$ Differences between expected and actual experience (22,657) - (6,124) - (11,568) - 20,903 - 19,074 Changes of assumptions 121 - - - (145) - 6,601 (14,520) 16,419 Benefit payments, including refunds of member contributions (2,475) (7,475) (9,675) (13,550) (19,350) (21,600) (21,600) (21,600) (21,600) Net change in total pension liability (21,741) (4,091) (11,674) (8,933) (24,492) (14,057) 12,508 (30,368) 21,186 Total pension liability--beginning 47,925 52,016 63,690 72,623 97,115 111,172 98,664 129,032 107,846 Total pension liability--ending 26,184$ 47,925$ 52,016$ 63,690$ 72,623$ 97,115$ 111,172$ 98,664$ 129,032$ Plan fiduciary net position Contributions--employer 13,796$ 2,628$ 13,796$ 13,796$ 13,796$ 5,975$ 5,975$ 1,591$ 1,591$ Net investment income (2,412) 4,262 3,860 3,358 203 5,039 2,229 1,409 5,504 Benefit payments, including refunds of member contributions (2,475) (7,475) (9,675) (13,550) (19,350) (21,600) (21,600) (21,600) (21,600) Administrative expense (1,005) (1,979) (1,317) (2,221) (1,822) (2,262) (443) (1,312) (557) Net change in plan fiduciary net position 7,904 (2,564) 6,664 1,383 (7,173) (12,848) (13,839) (19,912) (15,062) Plan fiduciary net position--beginning 28,470 31,034 24,370 22,987 30,160 43,008 56,847 76,759 91,821 Plan fiduciary net position--ending 36,374$ 28,470$ 31,034$ 24,370$ 22,987$ 30,160$ 43,008$ 56,847$ 76,759$ Plan net pension liability--ending (10,190)$ 19,455$ 20,982$ 39,320$ 49,636$ 66,955$ 68,164$ 41,817$ 52,273$ Plan fiduciary net position as a percentage of total liability 138.92%59.41%59.66%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 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 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 Schedules of Required Supplementary Information Schedule of Changes in the Net Pension Liability and Related Ratios Volunteer Firefighters Old Hire Pension Plan for the last 10 years* 90 Pa g e 9 8 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability/(asset)0.711%0.745%0.837%0.847%0.885%0.973%0.992%1.005%0.609%0.609% City's proportionate share of the net pension liability/(asset)631,474$ (4,036,667)$ 1,817,527$ (479,107)$ (1,118,317)$ (1,400,090)$ 358,531$ (17,713)$ (687,748)$ (544,913)$ City's covered payroll 8,041,948$ 6,367,826$ 5,379,460$ 4,994,910$ 3,181,470$ 3,268,490$ 3,268,489$ 3,263,302$ 3,367,345$ 2,117,480$ City's proportionate share of the net pension liability/(asset) as a percentage of its covered-employee payroll 7.9%63.4%33.8%9.6%35.2%42.8%11.0%0.5%20.4%25.7% Plan fiduciary net position as a percentage of the total pension liability 97.6%116.2%106.7%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. 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 91 Pa g e 9 9 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 City's proportion of the net pension liability/(asset)1.029%1.134%1.100%1.129%1.091%1.100%1.788%1.828%1.809%1.655% City's proportionate share of the net pension liability/(asset)(15,008) (430,094) 230,268 (219,863) (150,629) (214,232) (194,650) (192,510) (214,535) (168,781) City's covered payroll 236,788 189,430 186,493 180,169 167,554 234,323 240,695 223,922 123,500 123,500 City's proportionate share of the net pension liability/(asset) as a percentage of its covered-employee payroll 6.3%227.0%123.5%122.0%89.9%91.4%80.9%82.2%95.8%136.7% Plan fiduciary net position as a percentage of the total pension liability 101.4%149.0%138.0%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. 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 92 Pa g e 1 0 0 o f 1 7 9 7 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 contributed contribution contributions payroll contributed contribution contributions payroll contributed contribution contributions payroll contributed 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 1,176,235 1,176,235 4,924,218 23.9%414,667 445,045 - N/A 286,886 286,886 - N/A 13,796 13,796 - N/A 2021 1,241,263 1,241,263 4,399,700 28.2%414,667 445,045 - N/A 286,886 286,886 - N/A 8,212 13,796 - N/A 2022 1,142,842 1,218,466 4,329,002 28.1%466,243 446,243 - N/A 388,133 388,133 - N/A 2,792 13,796 - N/A 2023 1,057,618 1,057,618 4,764,045 22.2%466,243 446,243 - N/A 388,133 388,133 - N/A 2,792 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 93 Pa g e 1 0 1 o f 1 7 9 7 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Police Officers Statewide Defined Benefit (SWDB) Plan Contractually required contribution 723,775$ 593,971$ 502,191$ 537,946$ 499,491$ 318,174$ 326,849$ 326,249$ 326,370$ 336,734$ 211,748$ Contributions in relation to the contractually required contribution 723,775 593,971 502,191 537,946 499,491 318,174 326,849 326,249 326,370 336,734 211,748 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 6,721,589$ 6,599,682$ 5,908,128$ 5,483,380$ 3,179,303$ 3,268,489$ 3,262,486$ 3,263,702$ 3,367,345$ 2,117,480$ 2,117,480$ Contributions as % of covered payroll 10.77%9.00%8.50%9.81%15.71%9.73%10.02%10.00%10.00%15.90%10.00% Police Officers Statewide Hybrid Pension Plan - Defined Benefit Component Contractually required contribution 18,943$ 18,943$ 19,203$ 18,649$ 18,017$ 17,392$ 16,753$ 23,125$ 24,069$ 22,392$ 12,350$ Contributions in relation to the contractually required contribution 18,943 18,943 19,203 18,649 18,017 17,392 16,753 23,125 24,069 22,392 12,350 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 189,430$ 186,493$ 180,170$ 173,923$ 167,564$ 167,564$ 231,234$ 240,695$ 223,922$ 123,500$ 123,500$ Contributions as % of covered payroll 10.00%10.16%10.66%10.72%10.75%10.38%7.25%9.61%10.75%18.13%10.00% * The amounts presented for each fiscal year were determined as of 12/31 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 94 Pa g e 1 0 2 o f 1 7 9 7 2023 2022 2021 2020 2019 Total OPEB liability Service cost 146,243$ 134,025$ 106,867$ 82,182$ 86,977$ Interest on total OPEB liability 104,182 111,492 143,969 174,091 163,386 Changes of benefit terms (238,158) - - - - Differences between expected and actual experience (149,512) - (174,718) - - Changes of assumptions (1,148,339) 114,071 530,246 555,926 (223,164) Benefit payments (276,600) (279,824) (281,374) (282,222) (254,649) Net change in total OPEB liability (1,562,184) 79,764 324,990 529,977 (227,450) Total OPEB liability--beginning 5,727,254 5,647,490 5,322,500 4,792,523 5,019,973 Total OPEB liability--ending 4,165,070$ 5,727,254$ 5,647,490$ 5,322,500$ 4,792,523$ Covered-employee payroll 44,657,235$ 36,165,053$ 35,111,702$ 28,506,500$ 27,676,213$ Total OPEB liability as a percentage of covered payroll 9.33%15.84%16.08%18.67%17.32% 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. Changes of assumptions reflect a change in the discount rate from 1.84% to 4.05% as of 12/31/2021. Change of benefit terms reflect members of the Englewood Employee Association are no longer eligible if hired after 01/01/2023 and members of the Englewood Police Bargaining Association who retire on or after 01/01/2023 cease to receive benefits upon reaching medicare eligibilty age. The following are the discount rates used in each period: 2023 4.05% 2022 1.84% 2021 2.00% 2020 2.75% 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 95 Pa g e 1 0 3 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Notes to the Required Supplementary Information December 31, 2023 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. 96 Pa g e 1 0 4 o f 1 7 9 7 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 1/1/2022 Actuarial valuation date 1/1/2022 Actuarial cost method Entry Age Actuarial cost method Entry Age Level amount, Open Level amount, Open Remaining amortization period 15 years Remaining amortization period N/A Asset valuation method 5 year smoothed fair value Asset valuation method 5 year smoothed fair value 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 Nonemergency Employees Volunteer Firefighters Single Employer Pension Plan Agent-Multiple Employer Pension Plans Actuarial valuation date 1/1/2022 Actuarial valuation date 1/1/2023 Actuarial cost method Entry Age Actuarial cost method Entry Age Level amount, Closed Level amount, Open Remaining amortization period 12 years Remaining amortization period 10 years Asset valuation method 5 year smoothed fair value Asset valuation method 5 year smoothed fair value Actuarial assumptions:Actuarial assumptions: Investment rate of return 6.0%Investment rate of return 7.00% Projected salary increases*2.8-5.8%Inflation 2.50% *Includes inflation at 2.5% Cost of living adjustments None Mortality Based on 2006 central rates from the RP-2014 Employee Mortality rates were based on the Pub-2010 Mortality tables for males and females projected to 2018 amount weighted, General, Healthy Retiree Mortality using the MP-2017 projection scales Tables, generational projected with Scale BB Amortization method Amortization method Amortization method Amortization method 97 Pa g e 1 0 5 o f 1 7 9 7 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. 98 Pa g e 1 0 6 o f 1 7 9 7 Debt Service Capital Projects Funds Total Malley Parks and General Nonmajor Conservation Open Center Recreation Obligation Capital Police Governmental Trust Space Donors Trust Trust Bonds Projects Headquarters Funds Assets Cash and investments 2,212,935$ 2,893,282$ 873,791$ 470,262$ 144,718$ 82,721$ 4,281,758$ 2,619,133$ 13,578,600$ Receivables: Property taxes - - - - - 2,247,000 - - 2,247,000 Interest 13,413 19,607 5,491 2,938 908 7,033 28,829 16,873 95,092 Intergovernmental - 250,000 - - - 1,645 215,436 - 467,081 Prepaid expense - - 2,228 - - - - - 2,228 Total assets 2,226,348$ 3,162,889$ 881,510$ 473,200$ 145,626$ 2,338,399$ 4,526,023$ 2,636,006$ 16,390,001$ Liabilities and fund balances Liabilities: Accounts payable -$ 94,916$ 2,810$ -$ -$ 750$ 350,188$ 22,653$ 471,317$ Other liabilities - 5,011 - - - - - - 5,011 Total liabilities - 99,927 2,810 - - 750 350,188 22,653 476,328 Deferred Inflows of Resources Deferred revenue-property tax - - - - - 2,247,000 - - 2,247,000 Fund balances: Restricted for: Parks and recreation 2,226,348 3,062,962 38,694 473,200 - - - - 5,801,204 Law enforcement - - 170,772 - - - - 2,613,353 2,784,125 Debt service - - - - - 90,649 - - 90,649 Committed to: Capital projects - - - - - - 4,175,835 - 4,175,835 Parks and recreation - - - - 145,626 - - - 145,626 Assigned to: Parks and recreation - - 553,937 - - - - - 553,937 Law enforcement - - 27,795 - - - - - 27,795 Other purposes - - 85,274 - - - - - 85,274 Nonspendable - - 2,228 - - - - - 2,228 Total fund balances 2,226,348 3,062,962 878,700 473,200 145,626 90,649 4,175,835 2,613,353 13,666,673 Total liabilities deferred inflows and fund balances 2,226,348$ 3,162,889$ 881,510$ 473,200$ 145,626$ 2,338,399$ 4,526,023$ 2,636,006$ 16,390,001$ See Independent Auditor's Report Special Revenue Funds CITY OF ENGLEWOOD, COLORADO Combining Balance Sheet Nonmajor Governmental Funds December 31, 2023 99 Pa g e 1 0 7 o f 1 7 9 7 Debt Service Capital Projects Funds Total Malley Parks and General Nonmajor Conservation Open Center Recreation Obligation Capital Police Governmental Trust Space Donors Trust Trust Bonds Projects Headquarters Funds Revenues Property taxes -$ -$ -$ -$ -$ 2,750,102$ -$ -$ 2,750,102$ Intergovernmental 475,502 1,688,177 134,622 - - - 245,436 - 2,543,737 Charges for services - - 881 - - - - - 881 Net investment income 96,066 132,155 38,874 21,040 6,500 44,527 216,355 123,951 679,468 Contributions - - 7,753 2,000 - - - - 9,753 Other - - - - - - - 25,530 25,530 Total revenues 571,568 1,820,332 182,130 23,040 6,500 2,794,629 461,791 149,481 6,009,471 Expenditures Current: General government - - - - - 29,285 138,838 - 168,123 Public safety - - 39,016 - - - - 187,674 226,690 Public works - - - - - - 637,043 - 637,043 Culture and recreation 152,281 368,715 61,107 - - - 43,767 - 625,870 Capital outlay 195,552 817,482 - - - - 806,344 165,326 1,984,704 Debt service: Principal - - - - - 1,695,000 - - 1,695,000 Interest - - - - - 1,114,063 - - 1,114,063 Total expenditures 347,833 1,186,197 100,123 - - 2,838,348 1,625,992 353,000 6,451,493 Excess revenues over (under) expenditures 223,735 634,135 82,007 23,040 6,500 (43,719) (1,164,201) (203,519) (442,022) Other financing sources (uses) Transfers in - - - - - - 1,560,000 - 1,560,000 Total other financing sources (uses)- - - - - - 1,560,000 - 1,560,000 Net change in fund balances 223,735 634,135 82,007 23,040 6,500 (43,719) 395,799 (203,519) 1,117,978 Fund balances - beginning 2,002,613 2,428,827 796,693 450,160 139,126 134,368 3,780,036 2,816,872 12,548,695 Fund balances - ending 2,226,348$ 3,062,962$ 878,700$ 473,200$ 145,626$ 90,649$ 4,175,835$ 2,613,353$ 13,666,673$ See Independent Auditor's Report Special Revenue Funds CITY OF ENGLEWOOD, COLORADO Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2023 100 Pa g e 1 0 8 o f 1 7 9 7 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, 2023 With Comparative Totals for the Year Ended December 31, 2022 Project Project Actual Budget 2022 Budgets Amounts Remaining Actual Revenues Lottery proceeds 475,502$ 475,502$ -$ 430,460$ Net investment income 96,066 96,066 - (39,787) Total revenues 571,568 571,568 - 390,673 Expenditures Current: Culture and recreation 1,147,937 152,281 995,656 700,175 Capital outlay 831,503 195,552 635,951 41,811 Total expenditures 1,979,440 347,833 1,631,607 741,986 Net change in fund balances (1,407,872)$ 223,735 1,631,607$ (351,313) Fund balances - beginning 2,002,613 2,353,926 Fund balances - ending 2,226,348 2,002,613 Less: Fund Balance Designated for Completion of Projects (1,631,607) (1,370,616) Unappropriated fund balance 594,741$ 631,997$ See Independent Auditor's Report 101 Pa g e 1 0 9 o f 1 7 9 7 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, 2023 With Comparative Totals for the Year Ended December 31, 2022 Project Project Actual Budget 2022 Budgets Amounts Remaining Actual Revenues Open Space Tax Shareback 1,263,177$ 1,263,177$ -$ 1,152,845$ Open Space Grants 425,000 425,000 - 175,000 Net investment income 132,155 132,155 - (42,251) Total revenues 1,820,332 1,820,332 - 1,285,594 Expenditures Current: Culture and recreation 1,456,377 368,715 1,087,662 418,491 Capital outlay 1,925,916 817,482 1,108,434 893,728 Total expenditures 3,382,293 1,186,197 2,196,096 1,312,219 Net change in fund balances (1,561,961)$ 634,135 2,196,096$ (26,625) Fund balances - beginning 2,428,827 2,455,452 Fund balances - ending 3,062,962 2,428,827 Less: Fund Balance Designated for Completion of Projects (2,021,091) (2,236,084) Unappropriated fund balance 1,041,871$ 192,743$ See Independent Auditor's Report 102 Pa g e 1 1 0 o f 1 7 9 7 Variance with Final Budget - Budget Actual Positive 2022 Amounts Amounts (Negative)Actual Revenues Intergovernmental 52,000$ 134,622$ 82,622$ 93,246$ Charges for services 2,100 881 (1,219) 1,559 Net investment income 5,000 38,874 33,874 (10,574) Contributions 54,000 7,753 (46,247) 154,675 Total revenues 113,100 182,130 69,030 238,906 Expenditures Current: General government 93,000 - 93,000 9,996 Public Safety 60,000 39,016 20,984 70,251 Culture and recreation 260,500 61,107 199,393 38,157 Total expenditures 413,500 100,123 313,377 118,404 Net change in fund balances (300,400) 82,007 (244,347) 120,502 Fund balances - beginning 713,114 796,693 763,598 676,191 Fund balances - ending 412,714$ 878,700$ 519,251$ 796,693$ See Independent Auditor's Report With Comparative Totals for the Year Ended December 31, 2022 CITY OF ENGLEWOOD, COLORADO Donors Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2023 103 Pa g e 1 1 1 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Malley Center Trust Fund Variance with Final Budget - Budget Actual Positive 2022 Amounts Amounts (Negative)Actual Revenues Contributions 1,500$ 2,000$ 500$ 200$ Net investment income 1,500 21,040 19,540 (7,396) Total revenues 3,000 23,040 20,040 (7,196) Expenditures Culture and recreation 35,000 - 35,000 - Total expenditures 35,000 - 35,000 - Net change in fund balances (32,000) 23,040 55,040 (7,196) Fund balances - beginning 425,356 450,160 268,510 457,356 Fund balances - ending 393,356$ 473,200$ 323,550$ 450,160$ 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, 2022 For the Year Ended December 31, 2023 104 Pa g e 1 1 2 o f 1 7 9 7 CITY OF ENGLEWOOD, COLORADO Variance with Final Budget - Budget Actual Positive 2022 Amounts Amounts (Negative)Actual Revenues Net investment income 2,500$ 6,500$ 4,000$ (2,298)$ Contributions - - - - Total revenues 2,500 6,500 4,000 (2,298) Expenditures Current Culture and recreation 15,000 - 15,000 (328) Total expenditures 15,000 - 15,000 (328) Net change in fund balances (12,500) 6,500 (11,000) (1,970) Fund balances - beginning 137,596 139,126 596,613 141,096 Fund balances - ending 125,096$ 145,626$ 585,613$ 139,126$ See Independent Auditor's Report With Comparative Totals for the Year Ended December 31, 2022 Parks and Recreation Trust Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2023 105 Pa g e 1 1 3 o f 1 7 9 7 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, 2023 With Comparative Totals for the Year Ended December 31, 2022 Variance with Final Budget - Budget Actual Positive 2022 Amounts Amounts (Negative)Actual Revenues Taxes 2,750,000$ 2,750,102$ 102$ 3,219,100$ Net investment income 2,500 44,527 42,027 (23,311) Total revenues 2,752,500 2,794,629 42,129 3,195,789 Expenditures General government 40,100 29,285 10,815 33,508 Debt service: Principal 1,695,000 1,695,000 - 2,075,000 Interest 1,124,000 1,114,063 9,937 1,207,563 Total expenditures 2,859,100 2,838,348 20,752 3,316,071 Net change in fund balances (106,600) (43,719) 62,881 (120,282) Fund balances - beginning 178,750 134,368 72,049 254,650 Fund balances - ending 72,150$ 90,649$ 134,930$ 134,368$ See Independent Auditor's Report 106 Pa g e 1 1 4 o f 1 7 9 7 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, 2023 With Comparative Totals for the Year Ended December 31, 2022 Project Project Budget 2022 Budgets Actual Remaining Actual Revenues Vehicle use tax 3,073,087$ 3,073,087$ -$ 2,523,622$ Building use tax 2,836,512 2,836,512 - 3,767,007 Intergovernmental 29,403,734 2,297,187 27,106,547 3,701,490 Net investment income 997,424 997,424 - (306,540) Construction reimbursement - - - 94,150 Other 850 850 - - Total revenues 36,311,607 9,205,060 27,106,547 9,779,729 Expenditures Current: General government 272,179 114,436 157,743 66,066 Public works 38,815,406 9,135,282 29,680,124 4,472,242 Culture and recreation 308,416 12,000 296,416 63,563 Capital outlay 15,755,809 558,063 15,197,746 2,813,291 Total expenditures 55,151,810 9,819,781 45,332,029 7,415,162 Excess revenues over (under) expenditures (18,840,203) (614,721) (18,225,482) 2,364,567 Other financing sources (uses) Transfers in 3,174,819 3,174,819 - - Transfers out (1,637,817) (1,637,817)- (1,534,122) Total other financing sources (uses)1,537,002 1,537,002 - (1,534,122) Net change in fund balances (17,303,201)$ 922,281 (18,225,482)$ 830,445 Fund balances - beginning 19,701,318 18,870,873 Fund balances - ending 20,623,599 19,701,318 Less: Fund Balance Designated for Completion of Projects (18,225,482) (14,604,232) Unappropriated fund balance 2,398,117$ 5,097,086$ See Independent Auditor's Report 107 Pa g e 1 1 5 o f 1 7 9 7 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, 2023 With Comparative Totals for the Year Ended December 31, 2022 Project Project Budget 2022 Budgets Actual Remaining Actual Revenues Intergovernmental revenues 245,436$ 245,436$ -$ 1,138,429$ Net investment income 216,355 216,355 - (69,118) Other - - - 950 Total revenues 461,791 461,791 - 1,070,261 Expenditures Current: General government 850,881 138,838 712,043 1,462,486 Public safety - - - - Public works 2,033,109 637,043 1,396,066 357,732 Culture and recreation 243,397 43,767 199,630 60,556 Capital outlay 1,859,940 806,344 1,053,596 129,472 Total expenditures 4,987,327 1,625,992 3,361,335 2,010,246 Excess expenditures over revenues (4,525,536) (1,164,201) 3,361,335 (939,985) Other financing sources (uses) Transfers in 1,560,000 1,560,000 - 1,795,642 Net change in fund balances (2,965,536)$ 395,799 3,361,335$ 855,657 Fund balances - beginning 3,780,036 2,924,379 Fund balances - ending 4,175,835 3,780,036 Less: Fund Balance Designated for Completion of Projects (3,361,335) (3,436,265) Unappropriated fund balance 814,500$ 343,771$ See Independent Auditor's Report 108 Pa g e 1 1 6 o f 1 7 9 7 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, 2023 Project Project Budget Budget Actual Remaining Revenues Net investment income 123,951$ 123,951$ -$ Other 25,530 25,530 - Total revenues 149,481 149,481 - Expenditures Current: Public safety 352,403 187,674 164,729 Capital outlay 1,557,170 165,326 1,391,844 Total expenditures 1,909,573 353,000 1,556,573 Excess expenditures over revenues (1,760,092) (203,519) 1,556,573 Net change in fund balances (1,760,092)$ (203,519) 1,556,573$ Fund balances - beginning 2,816,872 Fund balances - ending 2,613,353 Less: Fund Balance Designated for Completion of Projects (1,556,573) Unappropriated fund balance 1,056,780$ See Independent Auditor's Report 109 Pa g e 1 1 7 o f 1 7 9 7 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. 110 Pa g e 1 1 8 o f 1 7 9 7