Comprehensive Annual Financial Report 2012
CITY OF PROVO, UTAH
PROVO CITY CORPORATION
Comprehensive Annual Financial Report For the Fiscal Year ended June 30, 2012
Prepared by the Provo City Finance Division PROVO CITY CORPORATION COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2012
TABLE OF CONTENTS
INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 9 Organizational Structure 10 List of Elected & Staff Positions 12 FINANCIAL SECTION Independent Auditor’s Report 13 Management’s Discussion and Analysis 15 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 25 Statement of Activities 26 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet 27 Reconciliation of the Balance Sheet to the Statement of Net Assets 28 Statement of Revenues, Expenditures and Changes in Fund Balances 29 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 30 General Fund Budgetary Comparison Statement 31 Housing Consortium Budgetary Comparison Statement 32 Proprietary Fund Financial Statements Balance Sheet 33 Statement of Revenues, Expenses and Changes in Net Assets 35 Statement of Cash Flows 36 Notes to the Financial Statements 39 Supplementary Information Other Governmental Funds Schedule of Funding Progress 85 Combining Balance Sheet 86
Combining Statement of Revenues, Expenditures and Changes in Fund Balance 89 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual Library 93 Arts Council 94 Winterfest 95 Commercial Rehabilitation 96 Business Development Corp 97 Rental Rehabilitation 98 CDBG 99 Tax Increment 100 Housing Rehabilitation 101 Mountain Vista 102 CNRCC 103 New Development 104 Homebuyer Assistance 105 Special Purpose 106 Homeless Prevention 107 Boulder’s Grant 108 Debt Service 109 Engineering Capital Improvement 110 Parks & Recreation Capital Improvement 111 Economic/Community Investment 112 Economic Development 113 General Capital Improvement 114
Proprietary Funds Internal Service Funds Combining Balance Sheet 115 Combining Statement of Revenues, Expenses and Changes in Net Assets 116 Combining Statement of Cash Flows 117 STATISTICAL SECTION Table of Contents 119 Net Assets by Component 121 Changes in Net Assets 122 Fund Balances of Governmental Funds 124 Changes in Fund Balances of Governmental Funds 125 General Governmental Tax Revenue by Source 126 Assessed Value and Estimated Actual Value of Taxable Property 127 Property Tax Rates—Direct and Overlapping Governments 128 Principal Property Taxpayers 129 Property Tax Levies and Collections 130 Ratio of Outstanding Debt by Type 131 Ratios of General Bonded Debt Outstanding 132 Direct and Overlapping Governmental Activities Debt 133 Legal Debt Margin Information 134 Pledged Revenue Coverage 135 Demographic and Economic Statistics 136 Principal Employers 137 Full-time Equivalent City Government Employees by Function 138 Operating Indicators by Function 139 Capital Asset Statistics by Function 140
LETTER OF TRANSMITTAL
November 19, 2012
To the Honorable Mayor, members of the Municipal Council, and the Citizens of the City of Provo:
State law and local ordinance require that all general-purpose local governments publish within six months of the close of each fiscal 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 a firm of licensed certified public accountants. In conformance with that requirement, we issue the Comprehensive Annual Financial Report (CAFR) of the City of Provo for the fiscal year ended June 30, 2012.
This report consists of management’s representations concerning the finances of the City of Provo. Management assumes full responsibility for the completeness and reliability of all information presented in this report. In order to provide a reasonable basis for making these representations, management of the City of Provo has established an internal control framework designed to ensure the assets of the government are protected from loss, theft or misuse, and to ensure adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state, and local financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to the appropriate programs. This internal control structure is subject to periodic evaluation by management.
Hansen, Bradshaw, Malmrose & Erickson, P.C., a firm of licensed certified public accountants selected by the Municipal Council, has audited the City of Provo’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Provo for the fiscal year ended June 30, 2012, represent an accurate portrayal of the City’s financial position in all material respects. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and
1 evaluating the overall financial statement presentation. Hansen, Bradshaw, Malmrose & Erickson, P.C. concluded, based upon the audit, that there is reasonable basis for rendering an unqualified opinion that the City of Provo’s financial statements for the fiscal year ended June 30, 2012, were fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.
The independent audit of the City of Provo’s financial statements was part of a broader, federally mandated Single Audit Act of 2004 and the U.S. Office of Management and Budget’s Circular A-133, Audits of State and Local Governments. Information related to this single audit, including a schedule of federal financial assistance, the independent auditors’ report on internal controls and compliance with applicable laws and regulations, and a schedule of findings, are available in the City of Provo’s separately issued Single Audit Report.
The CAFR is presented in three sections: introductory, financial and statistical.
PROFILE OF THE GOVERNMENT
The City of Provo, incorporated in 1851, is located in a metropolitan area that has a dynamic and diverse economy. The government is empowered to levy a property tax on both real and personal property located within its boundaries.
The City of Provo currently operates under the mayor-council form of government. Legislative authority is vested in the Municipal Council, which consists of seven members. The legislative branch is responsible, among other things, for passing ordinances, adopting the budget, and giving advice and consent to the appointment of committee members. The Mayor is responsible for establishing and implementing City policies, carrying out the ordinances of the Municipal Council, and overseeing the day-to-day operations of the government. The Council and Mayor are elected on a nonpartisan basis. Five of the Council members are elected from within their respective districts. The Mayor and the two remaining members are elected at large. All elected officials serve staggered four-year terms with four, then three, Council members elected every two years.
The City of Provo provides a full range of services that include public safety, streets, recreational and cultural events, community development and general administrative services. The City of Provo also operates energy, water, waste water, sanitation, municipal golf course, and storm drain utilities. A general aviation airport and a telecom network are also part of the City of Provo. Component units are legally separate entities for which the nature and significance of their relationship with the City of Provo are such that exclusion would cause the financial statements to be misleading or incomplete. Blended component units are included as part of the primary government. Accordingly, Provo City Redevelopment Agency is reported as special revenue fund and the Provo City Stormater Service District as an enterprise fund.
The City of Provo maintains extensive budgetary controls. The objective of these controls is
2 to ensure compliance with legal provisions embodied in the annual appropriated budget adopted by the Provo Municipal Council. For the 2012 fiscal year, activities of the general fund, special revenue funds, debt service funds, and capital project funds are included in the annual appropriated budget.
The level of budgetary control, i.e., the level where expenditures cannot legally exceed the appropriated amount, is maintained at the departmental level for the General Fund and at the fund level for all other funds. The City of Provo also maintains an encumbrance accounting system as one method of maintaining budgetary control. Outstanding encumbrances at year- end are evaluated and, if deemed necessary by the City of Provo’s management, are carried forward as part of the following year’s budget.
As demonstrated by the statements included in the financial section of the report, the City of Provo continues to meet its responsibility for sound financial management.
The Management’s Discussion and Analysis (MD&A) section of this report offers a more detailed discussion about the economic condition of the City, fund balance analysis and other management goals and achievements.
ECONOMIC CONDITION
The City has a diverse manufacturing and industrial base. Major industries include retail business, light manufacturing, software development, and a university community. This diversity stabilizes the unemployment rate and offers a broad range of employment opportunities.
While the local economy continues to recover from the great recession, the recovery is slow but it continues to outperform the national economy. The local (Provo-Orem) unemployment rate is down versus the prior-year (6.1 vs. 7.0 percent) but still below the national average of 8.2 percent as of June 30, 2012. The preliminary local unemployment rate is 4.5 percent as of September 30, 2012 reflecting the improvement in the local economic environment. The City’s general fund total tax revenue of $28,282,775 was $1,045,333 more than budget and $1,814,091 or 6.9 percent more than the prior year. Property and vehicle taxes increased by $183,963 or by 4.1 percent over the prior year. Franchise taxes of $8,435,172 increased by $718,983 during fiscal 2012. Sales tax revenue of $14,910,351 increased by $913,896 or 6.5 percent versus the prior fiscal year. The City is cautious, but optimistic that sales tax revenues will slowly continue to improve as the economy improves during the next fiscal year. The City sales tax revenues received during the first two months of the new fiscal year are consistent with this forecast reflecting a combined increase of 2.9 percent on a year-over- year basis for July and August 2012.
The City is closely monitoring the current economic environment. As the City plans for the future, we are being very cautious to align the commitment of City resources with the anticipated revenues for the City. The City undertook an in-depth and detailed budgeting process for fiscal 2013. A significant level of input was gathered from residents and
3 employees and was carefully considered by the Administration and the City Council when developing and adopting the 2013 budget.
The governmental funds revenues for fiscal year ending June 30, 2012 were $63,780,737. Tax revenue made up 59.7 percent of the total governmental funds revenue. Tax revenue consists of property, vehicle, sales, and franchise taxes. Intergovernmental transfers accounted for an additional 18.5 percent of the total. The remaining 21.8 percent is composed of charges for services, licenses and permits, fines and forfeitures, investment earnings, loan repayments/write-offs and miscellaneous revenues.
While striving to control expenditures, the City is committed to maintaining infrastructure and delivering services at sufficient levels. The City will also continue to work on a variety of economic development projects with the intent of creating jobs and stimulating the economic growth and stability of the City.
LONG-TERM FINANCIAL PLANNING
The City maintains a 5-Year Capital Project/Budget Plan. This plan is updated each year and allows the City to make projections into the future regarding the infrastructure and other long term capital projects that need to be initiated or completed. This plan helps to prioritize projects, estimate costs, and determine the most advantageous way to fund projects.
The City continues to work on a ten-year budget that examines all revenues and expenses. The focus is to establish a sustainable budget and place more attention on the long-term impact of decisions. The Administration has established a Budget Review Committee comprised of two residents, two Council members and two employees. As part of the fiscal 2013-2014 budget process, the Budget Review Committee began meeting in August of 2012 to review all aspects of the budget. The Committee has met with all City departments to gain a better understanding of their current and long-term budgetary requirements. In preparation for the 2013-2014 budget, the Budget Review Committee plans to assist the City in preparing a balanced budget for the upcoming budget year based on making financial decisions that are sustainable over time. The Budget Review Committee also plans to assist the City in developing a balanced ten year budgeted forecast.
MAJOR INITIATIVES
Economic development in Provo focuses on increasing the prosperity of residents and businesses. This is accomplished by creating an environment where business can thrive and grow at sustainable rates. Three major components to increased prosperity are; growing retail sales, property tax revenue base and job creation.
At the heart of Provo, downtown continues to be a center of activity and change. The new Utah Valley Convention Center is now open. This new 120,000 square foot facility is now hosting local, regional and national groups.
4 The NuSkin Innovation Center is on schedule with completion anticipated in the summer of 2013. This new downtown campus is the consolidation of the majority of its employees into one central facility.
The Provo City Center Temple, the former LDS tabernacle, is currently under construction with an announced completion of sometime in 2015.
The Provo Redevelopment Agency owns about 40% of the land immediately north of the City Center on Center Street. There have been numerous inquiries and interest in the property. The most likely use of this ground will be a higher density residential living complex, with some retail on the Center Street, ground level space. This interest is indicative of the development potential that exists in downtown Provo.
Provo has placed a greater emphasis on redevelopment of existing buildings and the filling of vacant storefronts by providing incentives for investment in downtown. Façade grants, building permit and impact fee credits and property and sales tax rebates are a few of the incentives being offered those who will invest in downtown Provo.
The Mountain Vista Business Park is the largest single-owner parcel of land in Provo and will be home to a mixed-use development of light industrial, retail, and office uses. There are now two light industrial tenants in the park. Champion Safe, a home security products manufacturer recently purchased seven acres of land and should commence construction within the next 12 months. The Valley Vista Way and Sierra Vista Way Projects were completed in the Mountain Vista Business Park, which has sparked an interest in property sales and businesses looking to locate and build in this area. The Project included 4,400 feet of street and sidewalk improvements and a new connection to State Street at approximately 2750 South.
Provo City is consistently recognized in the national media as a desirable place to do business. With a favorable business climate, two major universities in the community and many entrepreneurial minded people, Provo continues to be supportive of early stage and startup businesses.
SIGNIFICANT EVENTS
The City is in the process of completing a significant rebranding effort. The rebranding will be implemented over the next year.
CUWCD Pipeline Provo Reach 2 Project is being completed by the Central Utah Water Conservancy District and installs a 60” high pressure water line from approximately 450 North Seven Peaks Boulevard north to 700 North, west on 700 North to 900 East, north on 900 East to 2200 North, west to Canyon Road on 2200 North, then north on Canyon Road to approximately 2500 North, crossing the north end of the BYU playfields to University Avenue, then proceeding north on University Avenue to approximately 5600 North. In addition to the installation of the pipeline, because of the significant impact of the project,
5 many sections of Provo City streets will have improvements to the curb, gutter and sidewalk as well as to utility systems. Upon completion of the project, many streets will also receive a complete mill and overlay. During FY2012, the pipeline has been installed on Seven Peaks Boulevard, on 700 North and on 900 East to approximately 1050 North. In addition, the pipeline has been installed across the BYU playfields and on University Avenue from approximately 2500 North to 3600 North. It is anticipated that the Project will be completed in late 2013.
Several City streets were resurfaced as part of the 2012 Road Rehabilitation Project including 1600 West, 550 West, 1720 North, 700 East, a portion of 700 North, Navajo Lane and Iroquois Drive. This Project includes various surface treatments to improve the remaining service life of streets throughout the City. The streets included in this Project were recommended by the Pavement Management Study completed by LTAP in the spring of 2011.
The Seven Peaks Boulevard, 300 South to Center Street Project was completed. The Project included bike lanes and landscaping through the limits of the Project and roundabouts at the intersections of Center Street at Seven Peaks Boulevard and 300 South at 1350 East.
South State Street Safety Improvements Project was completed during FY2012 and includes shoulder widening, landscaping and a bicycle/pedestrian trail from 1860 South to approximately 1120 S on the east side of State Street. This project has provided much-needed enhancement to this corridor in the southeast part of the City.
As part of the Provo Westside Connector Project, a Record of Decision was received on the Environmental Impact Statement and final resolution of a 404 Permit was completed by the US Army Corps of Engineers. A project consultant, Horrocks Engineers, was selected to complete the project design for construction of the project, which is anticipated to begin during the summer of 2013.
The City completed the construction of Lakeview Park and held a grand opening to celebrate the opening of the new park.
The City acquired two parcels of property for the Spring Creek Park and also acquired two parcels of property for a new park in northeast Provo.
The City completed a new hole on the East Bay Executive Course that will open in 2012.
On November 2, 2010, voters in Provo approved the issuance of $39 million of general obligation bonds to fund the construction of a community recreation center. During the year ended June 30, 2012, substantial progress was made on the construction of the recreation center. The project is on time and within budget and is expected to be completed by the spring of 2013.
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8 9 Organizational Chart
John Curtis Mayor
Gina Robie Tracy Orme Administrative Office Executive Office Assistant Assistant
Corey Norman Dixon Holmes Wayne Parker Helen Anderson Robert West Rick Gregory Chief Deputy– Chief Deputy – Chief Administrative Chief Deputy - City Attorney Police Chief Mayor’s Office Economic Officer Communications Development
Karen Larsen Dustin Grabau Roger Thomas Gene Nelson Gary Jolley Customer Graduate Intern Director of Director of Interim Fire Kevin Garlick Service Parks and Library Services Chief Energy Director Recreation
Gary McGinn Paul Glauser David Decker John Borget Community Redevelopment Public Works Administrative Development Director Director Services Director Director
10 Organizational Chart
Council Members
Laura Cabanilla Rick Healey Sterling Beck Kay Van Buren Gary Garrett Harold Miller Gary Winterton
Matthew Taylor Brian Jones Executive Director of Deputy City Attorney Council
Tiffany Scherbel Jennifer Worthen Louise Jorgensen Bryce Mumford Amy Harlow Management Executive Director Council Executive Policy Analyst Policy Analyst Analyst of Council Office Assistant
11 ELECTED AND STAFF POSITIONS
MAYOR
John R Curtis
MUNICIPAL COUNCIL
Council Chair – Laura Cabanilla Rick Healey Harold Miller Sterling Beck Gary Garrett Gary Winterton Kay Van Buren
Executive Director – Matthew Taylor
EXECUTIVE STAFF
Wayne Parker Chief Administrative Officer Helen Anderson Community Relations and Public Information Officer Corey Norman Deputy Mayor Dixon Holmes Deputy Mayor-Economic Development
STATUTORY/OTHER POSITIONS
Paul Glauser Redevelopment Agency Denise B Roy Budget Officer/Controller Daniel Follett City Treasurer Janene Weiss City Recorder
DEPARTMENT/OFFICE DIRECTORS
Rick Gregory Police Department Gary Jolley (Interim) Fire Department John D Borget Department of Administrative Services Robert West Attorney’s Office Gary McGinn Department of Community Development Roger L Thomas Department of Parks and Recreation Gene Nelson Department of Library Services Kevin Garlick Department of Energy David Decker Department of Public Works
12 13 14 MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the Provo City Corporation (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities for the year ended June 30, 2012. The Management’s Discussion and Analysis (MD&A) is designed to provide an overview of the City’s financial activity. It is also intended to assist the reader in focusing on significant financial issues including identifying changes in the City’s financial position (its ability to address the next and subsequent years’ challenges), identifying any material deviations from the approved budget, and identifying individual fund issues or concerns. Please read the MD&A in conjunction with the Transmittal Letter and the City’s financial statements.
HIGHLIGHTS
Financial Highlights
The City’s net assets increased by $22,433,032. The governmental net assets increased by $9,291,801 and the business-type net assets increased by $13,141,231.
At the close of the current fiscal year, the assets of the City exceeded its liabilities by $543,568,547. Of this amount, $106,413,755 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors.
As of the close of the current fiscal year, the City’s governmental funds (reflected on a current financial resource basis) reported combined ending fund balances of $54,050,474, a decrease of $15,947,177 in comparison with the prior year. This decrease is primarily due to the construction costs of the new recreation center.
The General Fund (the primary operating fund), also reflected on a current financial resource basis, reported a decrease of $688,571 in fund balance. This change is due to appropriations throughout the year using fund balance.
At the end of the current fiscal year, unassigned fund balance for the general fund was $7,639,116 (or 14.75 percent) of 2013 general fund budgeted revenue.
USING THIS ANNUAL REPORT
The financial statements focus on both the City as a whole in the government-wide statements, and on the major individual funds in the fund financial statements. (An explanation of major and nonmajor funds can be found in the note 1 of the financial statements of this report). Both perspectives allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government) and enhance the City’s accountability.
15 Government-Wide Financial Statements
There are two basic statements in the government-wide financial statements: the statement of net assets and the statement of activities. These statements report information about the City as a whole using accounting methods similar to the full accrual method used by private sector companies. These statements also provide both long-term and short-term information about the overall financial status of the City.
The statement of net assets presents information on all assets and liabilities of the City. The difference between the two is reported as net assets. Over time, increases or decreases in net assets 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 net assets of the government changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the 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. These changes are presented separately for each of the government’s functional activities, (e.g., general government, public safety, and public works).
The government-wide financial statements are divided into two categories: governmental activities and business-type activities. Most of the basic services of the City are included in the governmental activities. This category includes services such as the police, fire, streets, parks divisions and general administration. Sales and use taxes, property taxes, and state and federal grants finance most of these activities. The business-type activities are similar to private sector type operations where the City charges fees to customers to cover all or most of the cost of the services provided. These services include the City’s water, waste water, airport, sanitation, storm drain, golf course, telecommunications and electric operations. Because internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.
Fund Financial Statements
The fund financial statements provide more detailed information about the City’s most significant funds, not the City as a whole. 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. Some funds are required by State law or by bond covenants, while other funds are established by the Municipal Council to manage money for a particular purpose. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.
There are two basic financial statements presented for governmental funds: the balance sheet and the statement of revenues, expenditures, and changes in fund balances. There is also a statement of revenues, expenditures, and changes in fund balances – budget to actual for the general fund and the special revenue funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide
16 financial statements. However, the governmental fund financial statements focus on near- term inflows and outflows of spendable resources as well as balances of spendable resources available at the end of the fiscal year. To facilitate the comparison between governmental funds and governmental activities, both the balance sheet and the statement of revenues, expenditures, and changes in fund balances provide reconciliation to the government-wide statements.
There are three basic financial statements for proprietary funds: the statement of net assets; the statement of revenues, expenses, and changes in net assets; and the statement of cash flows. The City maintains two types of proprietary funds: enterprise funds and internal service funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. However, they provide more detail and additional information, such as a statement of cash flows.
Internal Service Funds are used to report activities that result in the accumulation and allocation of costs of supplies and services provided and used internally among the City’s various functions. The City uses internal service funds to account for employee benefits, insurance and claims, vehicle management and facility services. As mentioned above, internal service funds are included in the governmental activities in the government-wide 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. The notes to the financial statements can be found on pages 39-84 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents supplementary information. Supplementary information, including the combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds, can be found on pages 86-118 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following analysis examines the factors that affect the net assets (Table 1) and the changes in net assets (Table 2) of both the governmental and the business-type activities.
Net Assets
By far the largest portion of the City’s total assets (75.8 percent) reflect its investment in capital assets (e.g., infrastructure, land, building, machinery and equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The net asset section shows the amount the City has invested in capital assets, less any related outstanding debt used to acquire those assets. It should be noted that since the capital assets themselves cannot be used to liquidate these liabilities, the resources needed to repay this debt must be provided from other sources.
17 Table 1 - Net Assets
Governmental Business-type activities activities Total
2012 2011 2012 2011 2012 2011
Current assets $ 93,656,542 $ 104,780,071 $ 38,055,225 $ 29,145,151 $ 131,711,767 $ 133,925,222 Capital assets 307,391,832 286,130,173 208,958,890 181,797,037 516,350,722 467,927,210 Other assets 24,968,373 50,143,216 8,106,099 9,274,712 33,074,472 59,417,928 Total assets 426,016,747 441,053,460 255,120,214 220,216,900 681,136,961 661,270,360
Current liabilities 27,857,828 23,119,344 15,200,853 12,317,225 43,058,681 35,436,569 Long-term liabilities 52,403,110 87,125,055 42,106,618 17,573,222 94,509,728 104,698,277 Total liabilities 80,260,938 110,244,399 57,307,471 29,890,447 137,568,409 140,134,846 Net assets: Invested in capital assets, net of related debt 257,441,544 200,011,377 162,494,671 161,659,941 419,936,215 361,671,318 Restricted 5,669,050 7,022,619 11,549,527 10,534,700 17,218,577 17,557,319 Unrestricted 82,645,210 123,775,066 23,768,545 18,131,812 106,413,755 141,906,878 Total net assets $ 345,755,804 $ 330,809,062 $ 197,812,743 $ 190,326,453 $ 543,568,547 $ 521,135,515
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, (Invested in capital assets, net of related debt, Restricted and Unrestricted) both for the government as a whole and for its separate governmental and business-type activities.
Changes in Net Assets
Governmental Activities Revenues by Source ‐ Governmental As shown below in Table 2 – Changes in Net Activities Assets, governmental activities increased the Op. Grants City’s net assets by $9,291,801 before the 18.87% Cap. Grants Sales Tax restatement of net assets. After the 0.79% 24.30% restatement the net assets increased by Charges for $14,946,742. The primary elements of this Services change are as follows. 13.41% Property In the governmental activities, the Tax Telecommunications Debt Service Fund was 21.64% transferred to business type activities when Other the city took ownership of the city’s network 6.11% which accounts for the restatement of net Franchise Other Taxes 13.48% 1.41% assets.
In the Parks and Recreation CIP Fund, expenses for the new recreation center are capitalized. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over the estimated useful lives and reported as depreciation expense. The amount that the capital outlays exceeded depreciation in fiscal year 2012 is $19,300,175.
18 Sales and use taxes, which increased from the prior year, are the single greatest source of revenue for the City. In the current fiscal year, 24.3 percent of the City’s revenues from governmental activities were derived from sales and use tax.
Another 21.64 percent of the City’s revenue was derived from property taxes.
Table 2 - Changes in Net Assets
Governmental Business-type Activities Activities To tal Revenues 2012 2011 2012 2011 2012 2011 P rogam revenues: Charges for services $ 8,386,234 $ 9,153,370 $ 80,201,822 $ 71,230,295 $ 88,588,056 $ 80,383,665 Operating grants and contributions 11,801,818 8,355,345 1,271,091 1,542,051 13,072,909 9,897,396 Capital grants and contributions 492,655 146,504 - 481,452 492,655 627,956 General revenues: P roperty taxes 13,537,074 12,164,999 13,537,074 12,164,999 Other taxes 24,514,156 22,862,128 126,178 24,640,334 22,862,128 Other 3,821,615 6,638,984 8,735,345 3,565,808 12,556,960 10,204,792 Total revenues 62,553,552 59,321,330 90,334,436 76,819,606 152,887,988 136,140,936 Expenses: General government 13,825,444 17,545,606 13,825,444 17,545,606 P ublic safety 22,673,016 22,667,366 22,673,016 22,667,366 P ublic services 7,019,330 6,878,502 7,019,330 6,878,502 Community revitalization 2,840,223 4,129,887 2,840,223 4,129,887 Culture and recreation 11,463,920 11,533,298 11,463,920 11,533,298 Interest on long-term debt 2,757,148 2,574,376 2,757,148 2,574,376 Golf course 1,053,754 983,079 1,053,754 983,079 Wa te r 5,196,862 5,402,807 5,196,862 5,402,807 Sewer 3,379,405 3,907,991 3,379,405 3,907,991 Energy 51,274,077 48,952,619 51,274,077 48,952,619 Airport 1,498,158 1,360,835 1,498,158 1,360,835 Sanitation 3,560,083 3,221,859 3,560,083 3,221,859 Storm drain 2,024,820 1,797,059 2,024,820 1,797,059 Telecommunications 1,888,716 1,888,716 - Total expenses 60,579,081 65,329,035 69,875,875 65,626,249 130,454,956 130,955,284 Increase in net assets before transfers, special item, and extraordinary item 1,974,471 (6,007,705) 20,458,561 11,193,357 22,433,032 5,185,652 Special Item: Interfund loan write-off - 5,357,316 - (5,357,316) - - Extraordinary Item: Provision for Receivable write-down - (12,773,517) - - - (12,773,517) Transfers 7,317,330 6,729,473 (7,317,330) (6,729,473) - - Change in net assets 9,291,801 (6,694,433) 13,141,231 (893,432) 22,433,032 (7,587,865) Net assets beginning As originally stated 330,809,062 331,315,253 190,326,453 182,199,327 521,135,515 513,514,580 Restatement of net assets 5,654,941 6,188,242 (5,654,941) 9,020,558 - 15,208,800 Net assets beginning 336,464,003 337,503,495 184,671,512 191,219,885 521,135,515 528,723,380 Net assets ending $ 345,755,804 $ 330,809,062 $ 197,812,743 $ 190,326,453 $ 543,568,547 $ 521,135,515
From the prior fiscal year, the revenue from sales, property and other taxes increased $3,024,103, or 8.6 percent. The increase is the result of higher property tax revenue and higher sales tax revenue.
The General Government category includes expenditures for the following departments; Municipal Council, Mayor’s Office, Community Development, Economic Development, Administrative Services, Legal, Information Systems and Non-departmental.
19 The Public Services category includes Road Projects, Engineering and Streets. The Public Safety category includes Police, Fire, and Emergency Response. The Community Revitalization category includes all fund expenditures in the Commercial Rehabilitation, Rental Rehabilitation, Community Development Block Grant, Housing Rehabilitation, Tax Increment, Housing Consortium and the Provo Business Development Fund.
As reported on the statement of activities in the government-wide statements, net cost of services provided by governmental activities totaled $39,898,374.
Expense Expenses & Revenues ‐ Governmental Activities Public Safety, which includes fire and Revenue 25,000,000 police, reports program expenses of $22,673,016, while program revenues 20,000,000 were $2,185,878. The result is a net cost of services for Public Safety
15,000,000 totaling $20,487,138.
10,000,000 The net amount of revenue and expenses from Public Safety is 51% of
5,000,000 the total net cost of services provided by the City for governmental activities.
‐ General Public Safety Public Services Community Culture and Interest on Transfers between the governmental Government Revitalization Recreation Lo ng‐term Debt activities from the business-type activities totaled $7,317,330.
Business-type Activities Revenues by Sources ‐ Business‐type Activities Operating Business-type activities increased the Impact Fees Grants Investment 1.23% City’s net assets by $13,141,231, before 1.41% 2.09% Other the restatement of assets to account for the 6.49% transfer of Telecommunications from government type to business type. Net assets after the restatement increased by $7,486,290. The primary elements of this change are as follows.
For the business-type activities, program and general revenues were $20,458,561 Charges for Services greater than expenses (before operating 88.78% transfers). Transfers of $7,317,330 resulted in the net increase of $13,141,231. The primary reason for this increase is the addition of the Telecommunications Division to the business type activities.
For business-type activities, 89 percent of the revenue came from charges for services.
20 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.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $54,050,474, a decrease of $15,947,177 from the prior year. This decrease is primarily due to the construction of the new recreation center. The General Fund’s portion of the total fund balance is $12,770,663, a decrease of $688,571, of which $7,639,116, is unassigned. Housing Consortium’s portion of the total fund balance is $976,250, a decrease of $380,150, which is all assigned. Debt Service’s portion of the total fund balance is $349,895, an increase of $221,080, which is all assigned. Parks CIP’s portion of the total fund balance is $23,942,730, a decrease of $16,446,361, which is all restricted. Other governmental funds have the remainder of the total fund balance in the amount of $16,010,936, an increase of $1,218,010.
The amounts that are unassigned represent funds not designated for a specific purpose. The remainder of fund balance is nonspendable, restricted, or assigned to indicate that it is not available for new spending. These amounts represent funds that are already committed to liquidate contracts and purchase orders of the prior period, pay debt, or a variety of other restricted purposes. See governmental fund detail beginning on page 27 of this report.
Proprietary Funds
The City’s proprietary fund statements use basically the same accounting methods (full accrual) as those used in the government-wide statements. Because the accounting methods are similar, both statements provide the same types of information. However, the fund financial statements do present more detailed information about individual proprietary funds. See proprietary fund detail beginning on page 33 of this report. The internal service funds primarily benefit the governmental funds. Therefore, the internal service funds revenues that exceed expenses are eliminated in the government-wide statements. The activity of the internal service funds is grouped with the governmental funds on the government wide statements.
The Energy Department generates 74 percent of the Program Revenues (before operating transfers) for business-type activities.
21 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets (Table 3) for its governmental and business-type activities as of June 30, 2012 and 2011 amounts to $516,350,722 and $467,927,210, respectively, (net of accumulated depreciation). The investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, library collection, roads, highways, sidewalks, bridges and construction in progress.
Table 3 – Capital Assets Governmental Business-type Activities Activities To t a l
2012 2011 2012 2010 2012 2011
Land $ 165,887,225 $164,882,683 $ 41,375,339 $ 41,372,454 $ 207,262,564 $ 206,255,137 Land easement 200,983 200,983 - - 200,983 200,983 Water stock - - 2,420,927 2,420,927 2,420,927 2,420,927 Machinery and equipment 9,429,157 8,318,191 10,699,029 8,137,436 20,128,186 16,455,627 Library collection 907,082 898,909 - - 907,082 898,909 Buildings 34,441,712 35,872,890 27,712,889 27,657,580 62,154,601 63,530,470 Land improvements 8,893,453 8,221,185 16,299,283 17,488,971 25,192,736 25,710,156 Infrastructure 62,767,464 63,570,242 107,390,090 81,820,276 170,157,554 145,390,518 Construction in progress 24,864,756 4,165,090 3,061,333 2,899,393 27,926,089 7,064,483 Total$ 307,391,832 $286,130,173 $ 208,958,890 $181,797,037 $ 516,350,722 $ 467,927,210
The total increase in the City’s investment in capital assets for the current fiscal year was $48,423,512 (net of accumulated depreciation). The capital assets in governmental activities increased $21,261,659 (net of accumulated depreciation). The capital assets in business-type activities increased $27,161,853 (net of accumulated depreciation). The increase in total assets is primarily the result of the construction of the new recreation center and the transfer of assets associated with the Telecommunications Division.
Major capital asset events during the current fiscal year included the following:
Business-type Activities
Energy Infrastructure $ 3,654,559 Sewer Infrastructure 1,213,038 Storm Drain Infrastructure 1,322,374 Water Infrastructure 323,855 Telecom Infrastructure 21,542,000 Telecom Equipment 1,848,000 Telecom Buildings 1,615,721 Energy Wausau Financial System 152,861 Waste Water Centerifuge Equipment 324,881 Water Automatic Meter Interface 354,567 Total$ 32,351,856
Governmental Activities Bridges $ 941,718 Library collection 359,926 New vehicles & equipment 2,722,763 Sidewalks 397,800 Lakeview Park 1,076,586 Land acquisitions 1,318,610 911 Positron System 205,222 Roads 1,678,824 Total$ 8,701,449 Additional information on the City’s capital assets can be found in Note 4 of this report.
22 Long-term Debt
At the end of the 2012 fiscal year, the City had long-term debt (Table 4) totaling $104,425,177. The bonded debt outstanding was $94,209,629. Of this amount, $45,996,123 is general obligation debt backed by the full faith and credit of the government. The remainder of the City’s bonded debt, in the amount of $48,213,506, represents bonds secured solely by specified revenue sources, i.e., revenue bonds. Telecom sales tax revenue bonds which were originally in the governmental funds have been restated in the business-type for 2011.
Long-term debt also includes capital leases in the amount of $1,746,405, notes payable with an ending balance of $458,472, $6,896,597 of accrued compensated absences and net OPEB payable of $1,114,074.
State statutes limit the amount of general obligation debt a governmental entity may issue up to four percent of its total assessed valuation. The current debt limitation for the City is $120,304,000, which is significantly in excess of the City’s outstanding general obligation debt of $48,594,501. (See detailed information in Statistical section-Legal Debt Margin). More detailed information regarding long-term debt can be found in Note 7.
Table 4 – Long-term Debt
To t a l s Governmental: 2012 2011 (Restated) General Obligation Bonds$ 45,996,123 $ 48,594,501 Revenue Bonds 1,749,290 1,841,645 Notes Payable 458,472 1,787,973 Capital Leases 1,746,405 1,613,473 Accrued Compensated Absences 5,139,380 5,201,940 Net OPEB Payable 816,032 1,020,826 Total governmental 55,905,702 60,060,358 Business-type Revenue Bonds 46,464,216 52,418,300 Accrued Compensated Absences 1,757,217 1,689,622 Net OPEB Payable 298,042 382,984 Total Business-type 48,519,475 54,490,906 To t a l $ 104,425,177 $ 114,551,264
BUDGETARY HIGHLIGHTS
General Fund Budgetary Highlights
The following is a brief review of significant budgeting changes from the original to the final budget for the major governmental funds:
• Appropriate $500,000 in the General Fund for operational expenses.
23
• Appropriate $1,164,000 in the General Fund to fund a transfer to the Engineering Capital Improvement Fund related to the Mountain Vista road project.
• Appropriate $340,000 in Parks Capital Improvement Fund for land purchases.
• Appropriate $314,980 in the General Fund to fund a transfer to the General Capital Improvement Fund for expenses related to the Customer Service initiative.
• Appropriate $314,128 in the General Fund for capital expenses related to the Emergency Response fund.
• Appropriate $400,556 in the General Fund for expenses related to the Fire Department.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET RATES
When preparing the City’s budget for the 2013 fiscal year, there were several economic factors and trends taken into consideration. Elements of the budget process include projecting inflation, and the impact the national economy has on local economic growth. The state and local economy showed some improvement during the fiscal year ending June 30, 2012. The state and local unemployment rates have remained lower than the national rate. State and local sales tax revenues have slightly increased when compared to the prior fiscal year. These and other factors were considered in the City’s budget for the 2012-2013 fiscal year. As of the date of this report, the fiscal 2013 revenues have been slightly more than budget.
REQUESTS FOR INFORMATION
The financial report is designed to present users (citizens, taxpayers, customers, investors and creditors) with a general overview of the City’s finances and to demonstrate the City’s accountability. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Provo City Finance Office, attention Division Director – Finance, 351 West Center Street, Provo, Utah, 84601.
24 PROVO CITY CORPORATION STATEMENT OF NET ASSETS As of June 30, 2012
Governmental Business-type Activities Activities Total Assets Current Assets: Cash $ 16,407,065 $ 19,268,545 $ 35,675,610 Restricted cash 47,408,284 11,549,527 58,957,811 Accounts receivable 20,137,711 13,910,258 34,047,969 Inventory 193,994 1,842,563 2,036,557 Prepaid expenses 188,820 - 188,820 Internal balances 9,320,668 (9,320,668) - Notes receivable - 805,000 805,000 Total Current Assets 93,656,542 38,055,225 131,711,767 Noncurrent Assets: Capital Assets: Non Depreciable 190,952,964 46,857,600 237,810,564 Depreciable assets (net of depreciation) 116,438,868 162,101,290 278,540,158 Total Capital Assets 307,391,832 208,958,890 516,350,722
Other Assets: Loans receivable 16,311,097 - 16,311,097 Investment in joint ventures 6,420,842 8,106,099 14,526,941 Other 2,236,434 - 2,236,434 Total Other Assets 24,968,373 8,106,099 33,074,472 Total Noncurrent Assets 332,360,205 217,064,989 549,425,194 Total Assets $ 426,016,747 $ 255,120,214 $ 681,136,961 Liabilities and Net Assets Liabilities: Current Liabilities: Accounts payable $ 7,792,156 $ 984,174 $ 8,776,330 Accrued liabilities 2,314,599 5,413,478 7,728,077 Accrued interest payable 939,560 689,970 1,629,530 Customer deposits 2,178,973 1,700,371 3,879,344 Unearned revenue 11,129,955 - 11,129,955 Accrued compensated absences 256,969 87,860 344,829 Bonds, loans and leases payable 3,245,616 6,325,000 9,570,616 Total Current Liabilities 27,857,828 15,200,853 43,058,681 Long-term Liabilities: Accrued compensated absences 4,882,411 1,669,357 6,551,768 Net OPEB payable 816,032 298,042 1,114,074 Lease payable 1,332,587 - 1,332,587 Notes payable 326,674 - 326,674 Bonds payable 45,045,411 40,139,219 85,184,630 Total Long-term Liabilities 52,403,115 42,106,618 94,509,733 Total Liabilities 80,260,943 57,307,471 137,568,414 Net Assets Invested in capital assets, net of related debt 257,441,544 162,494,671 419,936,215 Restricted for: Capital projects 4,638,452 4,754,849 9,393,301 Debt service 1,030,598 6,794,678 7,825,276 Unrestricted 82,645,210 23,768,545 106,413,755
Total Net Assets 345,755,804 197,812,743 543,568,547 Total Liabilities and Net Assets $ 426,016,747 $ 255,120,214 $ 681,136,961
The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report. 25 PROVO CITY CORPORATION Statement of Activities For the fiscal year ended June 30, 2012
Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Primary Government Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities: General government $ 13,825,444 $ 4,835,523 $ 5,334,581 $ - $ (3,655,340) $ - $ (3,655,340) Public safety 22,673,016 1,186,789 999,089 - (20,487,138) - (20,487,138) Public services 7,019,330 179,750 2,189,631 492,655 (4,157,294) - (4,157,294) Community revitalization 2,840,223 484,483 3,095,867 - 740,127 - 740,127 Culture and recreation 11,463,920 1,699,689 182,650 - (9,581,581) - (9,581,581) Interest on long-term debt 2,757,148 - - - (2,757,148) - (2,757,148) Total govermental activities 60,579,081 8,386,234 11,801,818 492,655 (39,898,374) - (39,898,374) Business-type activites: Golf course 1,053,754 548,169 - - - (505,585) (505,585) Water 5,196,862 7,924,920 22,164 - - 2,750,222 2,750,222 Sewer 3,379,405 5,393,304 559 - - 2,014,458 2,014,458 Energy 51,274,077 59,227,359 474,060 - - 8,427,342 8,427,342 Airport 1,498,158 221,062 451,869 - - (825,227) (825,227) Sanitation 3,560,083 3,943,935 - - - 383,852 383,852 Storm drain 2,024,820 2,371,254 322,439 - - 668,873 668,873 Telecommunications 1,888,716 571,819 - - - (1,316,897) (1,316,897) Total business-type activities 69,875,875 80,201,822 1,271,091 - - 11,597,038 11,597,038 Total primary government $ 130,454,956 $ 88,588,056 $ 13,072,909 $ 492,655 $ (39,898,374) $ 11,597,038 $ (28,301,336)
General revenues: Taxes: Property 13,537,074 - 13,537,074 Vehicle 879,969 - 879,969 Sales 15,199,015 - 15,199,015 Franchise 8,435,172 126,178 8,561,350 Investment earnings 242,580 1,886,348 2,128,928 Miscellaneous 3,579,035 6,848,997 10,428,032 Transfers 7,317,330 (7,317,330) - Total general revenues and transfers 49,190,175 1,544,193 50,734,368 Change in net assets 9,291,801 13,141,231 22,433,032 Net assets-beginning (restated) 336,464,003 184,671,512 521,135,515 Net assets-ending $ 345,755,804 $ 197,812,743 $ 543,568,547
The notes to the financial statements are an integral part of this statement.
See the accompanying independent auditors' report.
26 PROVO CITY CORPORATION Balance sheet Governmental Funds As of June 30, 2012
Governmental Fund Types Other Total Housing Debt Parks Governmental Governmental General Consortium Service CIP Funds Funds Assets: Cash $ 3,128,105 $ - $ - $ - $ 5,524,293 $ 8,652,398 Restricted cash 7,343,891 880,087 808,150 28,537,226 9,838,930 47,408,284 Accounts receivable 10,208,819 204,148 4,698,524 - 5,005,000 20,116,491 Inventory 49,430 - - - - 49,430 Prepaid Performers - - - - 15,000 15,000 Loans receivable - 12,392,405 - - 4,689,850 17,082,255 Note receivable Action Target - - - - 886,270 886,270 Investment in land - - - - 1,350,164 1,350,164 Due from other funds 2,155,195 - - - - 2,155,195
Total assets $ 22,885,440 $ 13,476,640 $ 5,506,674 $ 28,537,226 $ 27,309,507 $ 97,715,487
Liabilities and Fund balances Liabilities: Accounts payable $ 1,691,257 $ 107,985 $ - $ 4,594,496 $ 1,138,558 $ 7,532,296 Customer deposits 2,164,217 - - - 14,756 2,178,973 Deferred revenue 4,884,807 12,392,405 4,404,888 - 8,523,075 30,205,175 Accrued liabilities 575,880 - - - 53,722 629,602 Due to other funds 798,615 - 751,892 - 1,568,460 3,118,967 Total liabilities 10,114,776 12,500,390 5,156,780 4,594,496 11,298,571 43,665,013
Fund balances Fund Balance: Nonspendable 49,430 - - - 15,000 64,430 Restricted 3,648,811 - - 23,942,730 - 27,591,541 Assigned 1,433,306 976,250 349,895 - 15,995,936 18,755,387 Unassigned 7,639,116 - - - - 7,639,116 Total fund balances 12,770,663 976,250 349,895 23,942,730 16,010,936 54,050,474
Total liabilities and fund balances $ 22,885,439 $ 13,476,640 $ 5,506,675 $ 28,537,226 $ 27,309,507 $ 97,715,487
The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
27 PROVO CITY CORPORATION Reconciliation of the Balance Sheets of Governmental Funds to the Statement of Net Assets As of June 30, 2012
Total Fund balance $54,050,474 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and are not reported in the fund statements. 299,448,499
Note receivable is recorded on the entity-wide statements and not reported on the fund statements. 187,284
Accrued interest is recorded in the entity-wide statements but not reported in the fund statements. ( 889,507)
Internal service funds are used by management to charge the costs of certain activities, such as insurance, maintenance, vehicles and employee benefits to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net assets. 20,307,663
The governmental funds cumulative allocation of the internal service funds net loss based on use of service are included in the entity-wide statements. 8,288,135
Deferred revenue was reported in the fund statements to offset loan receivables. In the governmental activites, no expense or revenue is recorded when a loan is made or paid off leaving no deferred revenue liability associated with the loan receivable. 18,304,062
Accrued compensated absences are not due and payable in the current period and are not reported in the funds. ( 4,980,876)
Net OPEB reported in the governmental activities ( 784,156) and not in the fund statements.
Long-term liabilities, including bonds payable are not due and payable in the current period and are not reported in the funds. ( 48,175,774)
Net assets of governmental activities $345,755,804
28 PROVO CITY CORPORATION Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2012
Other Total Housing Debt Parks Governmental Governmental General Consortium Service CIP Funds Funds Revenues: Taxes $ 28,282,774 $ - $4,612,590 $ - $ 5,155,866 $ 38,051,230 Licenses and permits 1,045,711 - - - - 1,045,711 Intergovernmental 6,379,952 886,682 - 64,781 4,454,243 11,785,658 Charges for services 4,085,806 - - 94,048 515,214 4,695,068 Fines and forfeitures 1,766,726 - - - - 1,766,726 Impact fees - - - 465,258 219,328 684,586 Interest income 97,585 6,982 19,359 8,311 121,008 253,245 Loan principal repayments 15,264 492,355 - 247,012 268,347 1,022,978 Loan interest repayments - 18,760 - - 29,664 48,424 Lease income - - - - 33,360 33,360 Miscellaneous 2,347,028 - 33 5,035 2,041,655 4,393,751 Total revenues 44,020,846 1,404,779 4,631,982 884,445 12,838,685 63,780,737
Expenditures: Current: General government 10,061,753 - 1,420 1,211,800 - 11,274,973 Public safety 23,178,853 - - - - 23,178,853 Public services 3,182,209 - - - - 3,182,209 Culture and recreation 6,427,974 - - - 4,746,005 11,173,979 Community revitalization 2,809,649 1,784,929 - - 3,416,509 8,011,087 Total current expenditures 45,660,438 1,784,929 1,420 1,211,800 8,162,514 56,821,101
Debt service: Interest expense 1,405 - 1,390,322 - 972,485 2,364,212 Rent/Lease 67,201 - - 1,738 54,270 123,209 Principal on debt 112,358 - 2,693,978 - 95,000 2,901,336 Interest - interfund - - 83,755 - 36,300 120,055 Service fees on debt - - 4,114 - 3,500 7,614 Total debt service 180,963 - 4,172,169 1,738 1,161,555 5,516,425
Capital outlay: Capital outlay 2,990,812 - - 16,822,268 5,126,582 24,939,662 Total expenditures 48,832,213 1,784,929 4,173,589 18,035,806 14,450,651 87,277,188
Excess (deficiency) of revenues over (under) expenditures ( 4,811,367) ( 380,150) 458,393 ( 17,151,361) ( 1,611,966) ( 23,496,451)
Other financing sources (uses): Transfers from other funds 10,104,713 - 75,241 705,000 4,582,062 15,467,016 Transfers to other funds (6,210,953) - (312,554) - (2,044,924) (8,568,431) Proceeds from land sales 229,036 - - - 421,653 650,689 Total other financing sources (uses) 4,122,796 - (237,313) 705,000 2,958,791 7,549,274
Net change in fund balances (688,571) (380,150) 221,080 (16,446,361) 1,346,825 (15,947,177)
Fund balance at beginning of year 13,459,234 1,356,400 128,815 40,389,091 14,664,111 69,997,651
Fund balance at end of year $ 12,770,663 $ 976,250 $ 349,895 $ 23,942,730 $ 16,010,936 $ 54,050,474
The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
29 PROVO CITY CORPORATION Reconciliation of the Statement of Revenues Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2012
Net change in fund balances--total governmental funds ($15,947,177)
Amounts reported for the governmental activities in the statements of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over the estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 19,300,175
In the Statement of Activities, only the gain on the sale is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the net cost of the assets sold. 418,696
Revenues in the statement of activities that do not provide current financial resources are not reported in the fund statements. ( 282,126)
Loans to recipients and principal payments from recipients are recorded as an expenditure and a revenue in the governmental funds. However, in the Statement of Net Assets, loans and principal payments are recorded as an increase and a decrease in the loan receivable. ( 403,092)
Infrastructure that is contributed from developers is reported as a general revenue in the Statement of Activities, but is not in the fund statements. 492,655
OPEB and accrued compensated absences are recorded in governmental activities 286,713 and not in the fund statements.
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Assets. Repayment of principal on debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. This is the amount by which repayments exceed proceeds. 3,558,400
The governmental funds allocation of the internal service funds net loss is based on use of service included in the entity-wide statements. 1,240,120
Internal service funds are used by management to charge the costs of certain activities, such as insurance, maintenance, vehicles and employee benefits to individual funds. The net revenue (expense) associated with the internal service funds is reported with governmental activities 627,437
Change in net assets of governmental activities. $9,291,801
The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
30 Budgetary Comparison Statement General Fund For the year ended June 30, 2012
Variance with Budgeted Amounts Actual Amounts Final Budget Original Final Revenues: Taxes $ 27,237,072 $ 27,237,442 $ 28,282,775 $ 1,045,333 Licenses and permits 1,221,000 1,141,500 1,045,711 (95,789) Intergovernmental 5,312,949 5,775,905 6,379,951 604,046 Charges for services 3,076,310 3,273,581 4,085,806 812,225 Fine and forfeitures 2,287,000 2,287,000 1,766,726 (520,274) Interest income 108,000 109,471 97,585 (11,886) Loan principal repayments - - 15,264 15,264 Miscellaneous 2,290,138 2,491,101 2,347,032 ( 144,069) Total revenues 41,532,469 42,316,000 44,020,850 1,704,850
Expenditures:
Mayor's Office 1,026,284 1,046,794 1,041,532 5,262 Municipal Council 865,802 808,000 798,514 9,486 Personnel 820,084 830,529 823,838 6,691 Finance 1,346,654 1,301,085 1,296,985 4,100 Legal 2,688,048 2,685,908 2,601,601 84,307 Community Development 2,011,903 2,045,017 2,011,353 33,664 Economic Development 509,600 807,539 798,296 9,243 Information Systems 2,362,196 2,309,408 2,307,256 2,152 Nondepartmental 1,336,014 1,298,805 1,203,191 95,614 Media Services 144,903 144,142 133,736 10,406 Police 14,370,878 15,365,330 15,280,716 84,614 Fire 7,933,166 8,401,429 8,311,068 90,361 Streets 5,693,885 5,272,914 4,276,572 996,342 Engineering 1,444,545 1,496,672 1,468,159 28,513 Parks & Recreation 6,475,689 6,510,896 6,479,396 31,500 Total expenditures 49,029,651 50,324,468 48,832,213 1,492,255
Excess (deficiency) of revenues over (under) expenditures ( 7,497,182) ( 8,008,468) ( 4,811,363) 3,197,105
Other financing sources (uses): Transfers from other funds 9,182,398 9,436,364 10,104,713 668,349 Transfers to other funds ( 2,832,720) ( 4,702,468) ( 6,210,953) ( 1,508,485) Proceeds from land sales - - 229,036 229,036 Total other financing sources (uses) 6,349,678 4,733,896 4,122,796 ( 611,100)
Net change in fund balance $ (1,147,504) $ (3,274,572) ( 688,571)$ 2,586,005
Fund balance at beginning of year 13,459,234
Fund balance at end of year $ 12,770,663 The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
31 Budgetary Comparison Statement Housing Consortium Fund For the year ended June 30, 2012
Variance with Budgeted Amounts Actual Amounts Final Budget Original Final Revenues: Intergovernmental $ 802,523 $ 795,761 $ 886,682 $ 90,921 Charges for services 554,898 550,314 - (550,314) Interest income - - 6,982 6,982 Loan principal repayments 400,057 400,057 492,355 92,298 Loan interest repayments - - 18,760 18,760 Total revenues 1,757,478 1,746,132 1,404,779 ( 341,353)
Expenditures: Current: Operating expenditures 1,864,456 2,124,021 1,784,929 339,092 Total expenditures 1,864,456 2,124,021 1,784,929 339,092
Excess (deficiency) of revenues over (under) expenditures ( 106,978) ( 377,889) ( 380,150) ( 680,445)
Other financing sources (uses): Transfers to other funds (107,000) (107,000) - 107,000 Total other financing sources (uses) ( 107,000) ( 107,000) - 107,000
Net change in fund balance $ (213,978) $ (484,889) (380,150) $ (573,445)
Fund balance at beginning of year 1,356,400
Fund balance at end of year $ 976,250 The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
32 PROVO CITY CORPORATION Balance Sheet Proprietary Funds As of June 30, 2012
Business-type Activities-Enterprise Funds Governmental Activities- Golf Waste- Storm Internal Service Course Water Water Energy Airport Sanitation Drain Telecom Total Funds Assets Current Assets: Cash $ 28,679 $ 2,410,263 $ 5,370,508 $ 8,351,339 $ - $ 1,359,392 $ - $ 1,748,364 $ 19,268,545 $ 7,754,667 Restricted cash - 208,770 902,911 5,245,553 - - 3,852,276 1,340,017 11,549,527 - Accounts receivable - 1,675,851 705,561 10,296,612 382,249 556,222 292,894 869 13,910,258 1,656 Inventory - 1,077,584 - 764,979 - - - - 1,842,563 144,564 Prepaid expense ------6,100 Current portion note rec. - - - 805,000 - - - - 805,000 - Total Current Assets 28,679 5,372,468 6,978,980 25,463,483 382,249 1,915,614 4,145,170 3,089,250 47,375,893 7,906,987 Noncurrent Assets: Capital Assets: Non Depreciable 25,101,929 6,538,358 241,524 4,529,263 8,366,780 138,196 1,941,550 - 46,857,600 - Depreciable assets 2,707,468 35,164,458 21,697,828 45,249,716 17,963,850 12,553 14,299,696 25,005,721 162,101,290 7,943,333 Net Capital Assets 27,809,397 41,702,816 21,939,352 49,778,979 26,330,630 150,749 16,241,246 25,005,721 208,958,890 7,943,333
Due from other funds - - - 1,926,302 - 147,425 - - 2,073,727 3,912,089 Equity in Joint Venture - - - - - 8,106,099 - - 8,106,099 - Total Noncurrent Assets 27,809,397 41,702,816 21,939,352 51,705,281 26,330,630 8,404,273 16,241,246 25,005,721 219,138,716 11,855,422
Total Assets $ 27,838,076 $ 47,075,284 $ 28,918,332 $ 77,168,764 $ 26,712,879 $ 10,319,887 $ 20,386,416 $ 28,094,971 $ 266,514,609 $ 19,762,409
Note: This statement is continued on the next page.
33 PROVO CITY CORPORATION Balance Sheet Proprietary Funds As of June 30, 2012
Business-type Activities-Enterprise Funds Governmental Activities- Golf Waste- Storm Internal Service Course Water Water Energy Airport Sanitation Drain Telecom Total Funds Liabilities & Net Assets Liabilities: Accounts payable $ 14,616 $ 313,097 $ 59,283 $ 222,985 $ 18,191 $ 113,053 $ 146,467 $ 88,292 $ 975,984 $ 259,862 Accrued liabilities 6,777 35,041 25,169 5,294,021 5,075 32,037 13,081 2,277 5,413,478 1,684,997 Due to other funds - - - - 225,705 - 959,083 - 1,184,788 - Customer deposits 100 131,165 6,100 1,561,746 1,260 - - - 1,700,371 - Accrued interest payable - 6,470 - 54,219 - - 21,685 607,596 689,970 50,053 Accrued compensated absences 1,868 15,503 12,250 41,950 2,760 5,275 8,254 - 87,860 7,925 Bonds, leases and loans payable - 200,000 - 4,015,000 - - 525,000 1,585,000 6,325,000 441,356 Total Current Liabilities 23,361 701,276 102,802 11,189,921 252,991 150,365 1,673,570 2,283,165 16,377,451 2,444,193 Long-term Liabilities Due to other funds - - - - 1,073,584 - - - 1,073,584 2,763,672 Accrued compensated absences 35,507 294,557 232,756 797,072 52,444 100,196 156,825 - 1,669,357 150,579 Net OPEB Payable 4,781 58,971 41,439 154,600 4,781 19,126 14,344 - 298,042 31,876 Notes payable ------326,674 Lease payable ------1,006,484 Bonds payable - 208,000 - 4,015,269 - - 6,713,825 29,202,125 40,139,219 - Total Long-term Liabilities 40,288 561,528 274,195 4,966,941 1,130,809 119,322 6,884,994 29,202,125 43,180,202 4,279,285 Total Liabilities 63,649 1,262,804 376,997 16,156,862 1,383,800 269,687 8,558,564 31,485,290 59,557,653 6,723,478 Net Assets Invested in capital assets, net of related debt 27,809,397 41,294,816 21,939,352 41,748,710 26,330,630 150,749 9,002,421 (5,781,404) 162,494,671 6,168,819 Retricted for: Capital projects - - 902,911 - - - 3,851,938 - 4,754,849 - Debt service - 208,770 - 5,245,553 - - 338 1,340,017 6,794,678 - Unrestricted (34,969) 4,308,894 5,699,072 14,017,640 (1,001,551) 9,899,452 (1,026,845) 1,051,068 32,912,759 6,870,112 Total Net Assets 27,774,428 45,812,480 28,541,335 61,011,903 25,329,079 10,050,201 11,827,852 ( 3,390,319) 206,956,957 13,038,931 Total Liabilities & Net Assets $ 27,838,076 $ 47,075,284 $ 28,918,332 $ 77,168,764 $ 26,712,879 $ 10,319,887 $ 20,386,416 $ 28,094,971 $ 266,514,609 $ 19,762,409
Net assets (proprietary funds) $206,956,957 Amounts reported for business activities in the statement of net assets are different because: Internal service funds are used by management to charge the cost of certain activities, such as insurance, maintenance, vehicles and employee benefits to individual funds. The net revenue (expense) associated with the internal service fund was allocated based on use of service to the individual funds in the statement of activities. ( 9,144,214) Net assets (proprietary funds/entity-wide) $197,812,743 The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
34 PROVO CITY CORPORATION Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the year ended June 30, 2012
Business-type Activities-Enterprise Funds Governmental Activities Golf Waste- Storm Internal Service Course Water Water Energy Airport Sanitation Drain Telecom Total Funds Operating Revenues: Charges for services $ 537,850 $ 8,085,490 $ 5,006,903 $ 60,682,707 $ - $ 3,994,093 $ 2,277,910 $ 1,680,785 $ 82,265,738 $ 8,504,061 Fees & rentals - - - 2 221,060 - - - 221,062 - Lease income 10,320 - 6,102 93,431 - - - 571,819 681,671 - Franchise Fee - Provo City Uti ------126,178 126,178 - State tax reimbursement - - - - 26,776 - - - 26,776 - Miscellaneous 71,964 107,831 41,697 5,913,907 122,482 153,043 288,072 150,000 6,848,996 442,813 Total operating revenues 620,134 8,193,321 5,054,702 66,690,047 370,318 4,147,136 2,565,982 2,528,782 90,170,421 8,946,874
Operating expenses: Salaries and wages 232,087 1,521,511 1,116,891 3,868,164 215,607 768,238 564,621 12,923 8,300,042 662,037 Employee benefits 93,436 733,259 598,634 1,845,596 83,500 350,905 238,668 4,035 3,948,033 346,501 Operating expenses 493,261 2,871,066 1,518,036 42,357,007 300,707 2,165,284 486,416 174,646 50,366,423 5,719,221 Depreciation 300,122 872,867 638,597 2,428,005 985,203 966 523,471 - 5,749,231 1,867,071 Total operating expenses 1,118,906 5,998,703 3,872,158 50,498,772 1,585,017 3,285,393 1,813,176 191,604 68,363,729 8,594,830
Operating income (loss) ( 498,772) 2,194,618 1,182,544 16,191,275 ( 1,214,699) 861,743 752,806 2,337,177 21,806,692 352,044
Nonoperating revenues (expenses) Impact fees - 164,433 394,523 412,911 - - 142,400 - 1,114,267 - Federal grants - 22,164 559 474,060 415,420 - 322,439 - 1,234,642 4,651 State grant - - - - 9,673 - - - 9,673 - Interest income 146 18,836 33,374 186,466 453 15,334 53,779 15,536 323,923 272,958 Interest expense - (6,809) - (634,022) (9,000) - (259,570) (1,697,112) (2,606,513) (54,751) Gain (loss) on disp. of assets - 11,442 5,191 (313,832) - 14,880 4,092 - (278,227) 10,832 Joint Venture gain(loss) - - - - - (363,613) - - (363,613) - Total nonoperating revenues (expenses) 146 210,066 433,647 125,583 416,546 ( 333,399) 263,140 ( 1,681,576) ( 565,848) 233,690
Income (loss) before contributions and transfers ( 498,626) 2,404,684 1,616,191 16,316,858 ( 798,153) 528,344 1,015,946 655,601 21,240,844 585,734
Transfers in 156,118 2,235,995 641,000 4,865,252 580,717 300,000 292,000 2,117,723 11,188,804 583,003 Transfers out - (2,549,057) (1,825,224) (13,013,137) - (689,117) (429,600) - (18,506,135) - Change in Net Assets ( 342,508) 2,091,622 431,967 8,168,974 ( 217,436) 139,227 878,346 2,773,324 13,923,513 1,168,737
Net Assets at beginning 28,116,936 43,720,858 28,109,368 52,842,929 25,546,515 9,910,974 10,949,506 ( 6,163,643) 193,033,444 11,870,194
Net Assets at end of year $ 27,774,428 $ 45,812,480 $ 28,541,335 $ 61,011,903 $ 25,329,079 $ 10,050,202 $ 11,827,852 $ (3,390,319) $ 206,956,957 $ 13,038,931
Change in net assets (proprietary funds) $ 13,923,513 Amounts reported for business activites in the statement of activites are different because: Internal service funds are used by management to charge the costs of certain activities, such as insurance, maintenance, vehicles and employee benefits to individual funds. The net revenue (expense) associated with the internal service funds was allocated based on use of service to the individual funds in the statement of activities. ( 782,284) Change in net assets (statement of activities) $ 13,141,229
The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
35 PROVO CITY CORPORATION Statement of Cash Flows Proprietary Funds For the year ended June 30, 2012
Business-type Activities/Enterprise Funds Governmental Activities Golf Waste- Storm Internal Service Course Water water Energy Airport Sanitation Drain Telecom Total Funds
Cash flows from operating activities: Receipts from customers and users $ 620,133 $ 7,618,486 $ 5,268,213 $ 64,336,251 $ 629,089 $ 4,043,115 $ 2,529,612 $ 2,528,516 $ 87,573,415 $ 8,946,398 Payments to suppliers (505,982) (2,887,657) (1,860,007) (42,491,272) (629,146) (2,165,873) (372,782) (86,355) (50,999,074) (5,633,212) Payments to employees (330,998) (2,294,537) (1,785,439) (4,888,050) (278,589) (1,101,057) (782,241) (14,681) (11,475,592) (326,080) Payments for claims ------(182,208) Net cash provided (used) by operating activities (216,847) 2,436,292 1,622,767 16,956,929 (278,646) 776,185 1,374,589 2,427,480 25,098,749 2,804,898
Cash flows from noncapital financing activities: Loans due from other funds - - 400,000 329,430 - 32,575 - - 762,005 1,146,271 Loans due to other funds - (400,636) (602) (2,097) (177,328) (362) 958,830 - 377,805 (672,654) Impact fees - 164,433 394,523 412,911 - - 142,400 - 1,114,267 - Federal and state grants - 22,164 559 474,060 425,093 322,439 - 1,244,315 4,651 Transfers from other funds 156,118 2,235,995 641,000 4,865,252 580,717 300,000 292,000 2,117,723 11,188,805 583,003 Transfers to other funds - (2,549,057) (1,825,224) (13,013,137) - (689,117) (429,600) - (18,506,135) - Net cash provided (used) by noncapital financing activities 156,118 (527,101) (389,744) (6,933,581) 828,482 (356,904) 1,286,069 2,117,723 (3,818,938) 1,061,271
Cash flows from capital and related financing activities: Payments for capital acquisitions (3,155) (924,769) (181,179) (3,289,037) (541,289) 14,880 (2,945,208) (5,722) (7,875,479) (3,339,994) Proceeds from sale of capital assets - - - (313,832) - - - - (313,832) 614,782 Payments on notes receivable - - - 743,000 - - (1,605) - 741,395 Principal paid on bonds payable - (189,300) - (3,770,135) - - (500,567) (1,494,080) (5,954,082) Interest paid on bonds payable - (10,779) - (661,563) - - (259,570) (1,722,053) (2,653,965) Principal paid on lease payable ------(422,953) Interest paid on notes & lease payable - - - - (9,000) - - - (9,000) (66,064) Net cash provided (used) by capital and related financing activities (3,155) (1,124,848) (181,179) (7,291,567) (550,289) 14,880 (3,706,950) (3,221,855) (16,064,963) (3,214,229)
Cash flows from investing activities: Receipts of interest 146 18,836 33,374 186,466 453 15,334 53,779 15,536 323,924 272,958 Net cash provided by investing activities 146 18,836 33,374 186,466 453 15,334 53,779 15,536 323,924 272,958
Net increase (decrease) in cash (63,738) 803,179 1,085,218 2,918,247 - 449,495 (992,513) 1,338,884 5,538,772 924,898 Cash at beginning of year 92,417 1,815,854 5,188,201 10,678,645 - 909,897 4,844,789 1,749,497 25,279,300 6,829,769
Cash at end of year $ 28,679 $ 2,619,033 $ 6,273,419 $ 13,596,892 $ - $ 1,359,392 $ 3,852,276 $ 3,088,381 $ 30,818,072 $ 7,754,667
Cash at end of year consists of: Cash $ 28,679 $ 2,410,263 $ 5,370,508 $ 8,351,339 $ - $ 1,359,392 $ - $ 1,748,364 $ 19,268,545 $ 7,754,667 Restricted cash - 208,770 902,911 5,245,553 - - 3,852,276 1,340,017 11,549,527 -
Total Cash $ 28,679 $ 2,619,033 $ 6,273,419 $ 13,596,892 $ - $ 1,359,392 $ 3,852,276 $ 3,088,381 $ 30,818,072 $ 7,754,667
Note: This statement is continued on the following page.
36 PROVO CITY CORPORATION Statement of Cash Flows Proprietary Funds For the year ended June 30, 2012
Business-type Activities/Enterprise Funds Governmental Activities Golf Waste- Storm Internal Service Course Water water Energy Airport Sanitation Drain Telecom Total Funds
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:
Operating income (loss)$ (498,773) $ 2,194,619 $ 1,182,544 $ 16,191,276 $ (1,214,697) $ 861,742 $ 752,806 $ 2,337,177 $ 19,469,517 $ 352,043 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 300,122 872,867 638,597 2,428,005 985,203 966 523,471 - 5,749,231 1,867,071 Changes in assets and liabilities: Decrease (increase) in accounts receivable - (594,223) 213,511 (2,534,742) 258,769 (104,019) (36,370) (266) (2,797,340) (474) Decrease (increase) in inventory - (89,972) - (83,288) - - - (173,260) 4,165 Increase (decrease) in accounts payable (12,721) 73,381 (341,971) (50,977) (328,439) (590) 113,634 88,292 (459,391) (99,790) Increase (decrease) in accrued liabilities 433 8,246 (1,887) 757,532 2,732 15,406 5,090 2,277 789,829 685,493 Increase (decrease) in customer deposits - 19,387 - 180,945 - - - - 200,332 - Increase (decrease) in accrued compensated absences (5,908) (48,013) (68,027) 68,178 17,786 2,680 15,958 - (17,346) (3,610) Net cash provided (used) by operating activities (216,847) 2,436,292 1,622,767 16,956,929 (278,646) 776,185 1,374,589 2,427,480 22,761,572 2,804,898 ` The notes to the financial statements are an integral part of this statement. See the accompanying independent auditors' report.
37
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38 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
INDEX TO THE NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ...... 40 A. FINANCIAL REPORTING ENTITY ...... 40 B. FINANCIAL STATEMENT PRESENTATION, MEASUREMENT FOCUS AND BASIS OF ACCOUNTING ...... 42 C. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS ...... 46 D. CASH AND INVESTMENTS ...... 46 E. INTERFUND TRANSACTIONS ...... 46 F. INVENTORIES ...... 47 G. PREPAID ITEMS ...... 47 H. RESTRICTED ASSETS ...... 47 I. CAPITAL ASSETS ...... 47 J. COMPENSATED ABSENCES ...... 49 K. LONG-TERM OBLIGATIONS ...... 49 L. FUND EQUITY ...... 49 M. BOND DISCOUNTS/ISSUANCE COSTS ...... 50 N. ESTIMATES ...... 50 O. USE OF RESTRICTED/UNRESTRICTED NET ASSETS ...... 50 NOTE 2 - DEPOSITS AND INVESTMENTS ...... 50 NOTE 3 - RECEIVABLES ...... 52 NOTE 4 – CAPITAL ASSETS ...... 54 NOTE 5- RISK MANAGEMENT ...... 56 NOTE 6- CAPITAL LEASES ...... 57 NOTE 7- LONG-TERM DEBT ...... 57 NOTE 8 - INTERFUND ASSETS AND LIABILITIES ...... 62 NOTE 9 - CONTINGENT LIABILITIES ...... 66 NOTE 10- JOINT VENTURES ...... 66 NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) ...... 70 NOTE 12 - RETIREMENT PLANS ...... 74 NOTE 13 - RESTRICTIONS ON FUND BALANCES AND NET ASSETS ...... 76 NOTE 14 - MAJOR UTILITY CUSTOMER ...... 78 NOTE 15 - REDEVELOPMENT AGENCY ...... 79 NOTE 16 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY ...... 79 NOTE 17 – RECONCILIATION OF GOVERNMENTAL FUNDS TO GOVERNMENT-WIDE FINANCIAL STATEMENTS ... 80 NOTE 18 – INTEREST EXPENSE ...... 81 NOTE 19 – FIBER OPTIC NETWORK ...... 82
39 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
The Provo City Corporation (City) was incorporated on February 6th of 1851, and is a political subdivision of the State of Utah. The City is governed by an elected mayor and seven elected council members. The City provides services to residents and businesses in a multitude of areas including police and fire protection, parks and recreation, economic development, planning and zoning, water, sewer treatment, airport, telecommunications, golf course, energy and general administrative services.
As required by generally accepted accounting principles, this report presents the financial information of both Provo City Corporation (the primary government) and its component units. The City has considered all potential component units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The criteria to be considered in determining financial accountability has been set forth in the Governmental Accounting Standards Board’s (GASB) Statement No. 14. These criteria include (1) appointing a voting majority of an organization's governing body, (2) the ability of the City to impose its will on that organization and, (3) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City.
Blended Component Units
Blended component units are entities which are legally separate from the City, but are so intertwined with the City that they are, in substance, the same as the City. They have the same governing board and provide services almost entirely to the City. They are reported as funds of the City. These are organizations for which the City is financially accountable, and the relationship with the City is significant enough that exclusions would possibly lead to misleading or incomplete Financial Statements. To obtain separate individual component unit financial statements, please send the request to Provo City, c/o Finance Department, PO Box 1849, Provo, UT 84603-1849.
Included in this report are the following blended component units.
The Provo City Redevelopment Agency was established to administer and disburse funds which are received through the federal office of Housing and Urban Development. The board of directors consists of the serving members of the City's municipal council. The bond issuance authorizations are approved by the City's municipal council, and the legal liability for those bonds remains with the City. The Agency is reported as a special revenue fund.
40 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Municipal Building Authority of Provo City, Utah, was created March 30, 1989, by the City under the provisions of the Utah Municipal Building Authority Act. The Authority's purpose is to acquire, construct, improve or extend one or more projects and finance the costs of such projects on behalf of the City. The Municipal Building Authority has issued lease revenue bonds to provide funds to the Provo City/Utah County Ice Sheet Authority for construction of a covered ice sheet facility at Seven Peaks. The City’s municipal council approves the bond issuance authorizations, and the legal liability for those bonds remains with the City. The Municipal Building Authority is reported as a debt service fund.
The Provo City Stormwater Service District serves all the citizens of the government and is governed by a board of directors consisting of the City's municipal council. The rates for user charges and bond issuance authorizations are approved by the City's municipal council, and legal liability remains with the City. The District is reported as an enterprise fund.
Related Organizations
A related organization is an organization for which the City is not financially accountable (because it does not have a financial benefit relationship) even though the City appoints a voting majority of the organization’s governing board.
Related organizations include the following.
The Provo City Housing Authority Board of Directors is selected by the City’s municipal council from a list of qualified applicants. The Board of Directors controls personnel, management, finances and budget.
The Provo Foundation was created April 17, 1984, by Provo City to provide for the receipt of gifts to the City and was incorporated October 10, 1987. It has received a tax exempt status under section 501 (a) as an organization described in section 501 (c) (3) of the Internal Revenue Code. The Board of Trustees is appointed by the City’s municipal council and consists of the Mayor, Council Chairperson, and prominent individuals in the community. The services provided by the Foundation are almost entirely related to the Citizens of Provo.
The Metropolitan Water District of Provo Board of Directors is selected by the City’s municipal council from a list of qualified applicants. The Board of Directors controls the personnel, management, finances and budget. The Metropolitan Water District of
41 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Provo was created under UCA section 17A-2-800. Because the majority of the board is appointed, it is treated as a related organization, not as a component unit.
B. Financial statement presentation, measurement focus and basis of accounting
Basis of Presentation
Government-wide Financial Statements
The government-wide financial statements, i.e., the statement of net assets and the statement of activities, report information on all of the nonfiduciary activities of the primary government and its component units. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other non-exchange revenues. Business-type activities are financed, in whole or in part, by fees charged to external parties for goods or services.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are amounts that are reasonably equivalent in value to the interfund services provided and other charges between the government’s enterprise fund functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
The government-wide statement of net assets presents information on all of the City’s assets and liabilities, and the difference between the two is reported as net assets. 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 (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and, (2) 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.
Indirect costs in the governmental activities that are not associated directly with a function or program in the City are included in the general government activities in the entity-wide statements.
42 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fund Financial Statements
A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.
The City’s funds are organized into two major categories: governmental and proprietary. Separate financial statements are provided for each of these categories. The focus of governmental and enterprise fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Non-major funds are aggregated and presented in a single column. A fund is considered major if it is the primary operating (general) fund of the City or meets the following criteria:
a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and
b. Total assets, liabilities, revenue or expenditures/expenses of the individual governmental fund or enterprise find are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.
As per the above criteria, the City’s general fund, housing consortium fund, parks capital improvement fund and telecom debt service fund are major funds. The City may also report other individual governmental funds as major funds if they are determined to be of particular importance to financial statement users. All other governmental funds are non-major.
The following is a classification of the City’s individual funds.
Governmental Fund Types
The General Fund is the primary fund of the City. This fund is used to account for all financial resources not accounted for in other funds.
Special revenue funds are used by the City to account for revenues derived from specific taxes, licenses and intergovernmental grants which are designated to finance particular functions or activities of the City. One of our special revenue funds, the housing consortium fund, is a major fund. This fund distributes federal dollars to provide affordable housing by providing down payment assistance, rehabilitation of homes, and new construction.
43 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Debt service funds are used to account for the accumulation of resources for the payment of general obligation bonds and for the accumulation of special assessments for the payment of special improvement bonds. Telecom debt service is used primarily for the repayment of bonds issued for construction of fiber optic network.
Capital project funds are used to account for resources designated to construct governmental capital assets which may require more than one fiscal year for completion. The parks capital improvement fund is used primarily for the construction of a new recreation center in Provo.
Proprietary Fund Types
Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the City is that (1) the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or, (2) the City 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.
The existing enterprise funds account for construction; operation; maintenance; related debt; and property, plant and equipment within each fund. The City-owned airport, energy utility, golf course, sanitation, storm drain, water utility, and wastewater utility are classified as major funds.
Internal service funds are used to account for the financing of services provided by one department to other departments within the City. The City maintains internal service funds for employee benefits, insurance/claims, fleet management, computer replacement and facility maintenance.
Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied.
The government-wide financial statements and the fund financial statements for proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned, and expenses are recorded when the liability is incurred or economic asset used. Major revenues
44 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) susceptible to accrual are property tax, sales tax, franchise, interest, grant receivables and utility receivables.
Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange- like transactions are recognized when the exchange takes place.
Governmental fund financial statements, other than proprietary funds, 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. Measurable means knowing or being able to reasonably estimate the amount. 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, such as property tax, sales tax, franchise fees, interest and receivables, to be available if they are collected within 60 days of the end of the current fiscal period.
As under accrual accounting, expenditures, including capital outlay, generally are recorded when a liability is incurred. Expenditures related to principal and interest on general long-term debt that has not matured, compensated absences, and claims and judgments are recorded only when payment is due. Allocations of cost, such as depreciation and amortization, are not recognized in the governmental funds.
Proprietary funds distinguish 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 principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service funds are charges to customers for sales and services. 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.
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.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, are generally followed in both the government-wide and enterprise fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds and are subject to this same limitation. The City has elected not to follow subsequent private-sector guidance.
45 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Reconciliation of Government-wide and Fund Financial Statements
Governmental funds use the current financial resources measurement focus and the modified accrual basis of accounting, while the government-wide financial statements use the economic resources measurement focus and the accrual basis of accounting. As a result, there are important differences between the assets, liabilities, revenues and expense/expenditures reported on the fund financial statements and the government-wide financial statements. For example, many long-term assets and liabilities are excluded from the fund balance sheet but are included in the entity-wide financial statements. As a result there must be reconciliation between the two statements to explain the differences. Reconciliation is included as part of the fund financial statements (see pages 28, 30).
D. Cash and Investments
Cash includes amounts in demand deposits, sweep accounts, escrows with trustees, and the State Treasurer's investment pool, as well as short-term investments with maturities of three months or less (cash equivalents) such as money market accounts and certificates of deposit. Investments are stated at fair value. Deposits and investments appear as cash, restricted cash and restricted assets on the balance sheets.
E. Interfund Transactions
During the course of operations, numerous transactions occur between individual funds for goods provided, services rendered and for short-term interfund loans or transfers. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.
Loans are reported as receivables and payables and are classified as "due from other funds" or "due to other funds" on the balance sheet of the governmental fund financial statements. Interfund receivables and payables between funds within governmental activities are eliminated in the Statement of Net Assets.
When an internal service fund provides goods or services to another fund, redundancy is inherent because expenditures/expenses are reported in both the fund providing and the fund receiving the goods or services. Since internal service funds primarily benefit governmental funds, they are included in the governmental activities in the entity-wide statements. The basic assumption for internal service funds is that they operate on a breakeven basis. Accordingly, any net profit or loss has been allocated to the functions that benefited from the goods or services provided based on proportionate benefit. Any residual balances outstanding between
46 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation between the governmental fund statements and the government-wide columnar presentation.
F. Inventories
Inventories of supplies for the proprietary fund types are stated at cost and are accounted for on a current cost basis. Inventory items within the proprietary funds are considered expenses when used (consumption method). Inventory items in the governmental funds are considered expenditures when purchased (purchase method).
G. Prepaid Items
Any payments made to vendors on or before June 30, 2012, for services performed or received after that date are recorded as prepaid items.
H. Restricted Assets
Net assets are reported as restricted on the entity-wide statements when constraints placed on net asset use are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or, (b) imposed by law through constitutional provisions or enabling legislation. As an example, certain proceeds of the City’s enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.
On the fund financial statements, cash is often restricted to a particular use due to statutory or budgetary requirements and is classified as “restricted cash” on the balance sheet.
I. Capital Assets
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition.
47 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
In the government-wide financial statements and in the fund financial statements for proprietary funds, capital asset expenditures are treated as capital assets. Capital assets include property, plant, equipment and infrastructure assets, e.g., roads, bridges, sidewalks, and similar items.
Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
Prior to July 1, 2001, governmental funds’ infrastructure assets were not capitalized. The GASB statement No. 34 requires a capitalization of infrastructure, but permitted an optional four-year delay for implementation of the infrastructure capitalization. The implementation of this portion of GASB No. 34 was not delayed for the majority of the City’s assets. Most of the City’s assets (with acquisition dates as far back as June 30, 1980) were valued at actual historical cost (when available) or estimated historical cost and capitalized in the 2002 fiscal year.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets business-type activities is included as part of the capitalized value of the assets constructed.
Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives:
Assets Years Bridges 60 Sidewalks 50 Water & Sewer Lines 75 Buildings (new) 40 Buildings (used) 30 Traffic Signals 30 Roads 20 Building Improvements 20 Storm Drain Infrastructure 30-40 Land Improvements 20 Fire Trucks 10 Communication Lines and Equipment 7 Machinery and Equipment 7 Heavy Duty Equipment 10-40 Library Books 6 Furniture 5 Vehicles 5 Office Equipment 5 Computer Equipment 3-5 Computer Software 3 Garbage Trucks 7 Ambulance 5
48 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
J. Compensated Absences
City policy provides for employees to be paid 100 percent of the unused portion of vacation leave and 25 percent of the unused portion of sick leave (except that employees with twenty years or more of full-time service receive 50 percent), when they retire or terminate employment. In the entity-wide statements and the proprietary funds, a provision has been made to account for all of the earned, unused vacation leave and sick pay that would be paid to an employee if he or she were to leave the City on June 30, 2012. The number of years of service determines whether the employee will receive 25 percent or 50 percent of unused sick pay balance. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
K. Long-term Obligations
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.
All long-term debts to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term debt consists primarily of notes payable, accrued compensated absences, bonds payable and capital leases.
Long-term debt for governmental funds is not reported as a liability in the fund financial statements. The debt proceeds are reported as other financing sources, and the payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government-wide statements.
L. Fund Equity
In the fund financial statements, governmental funds report fund balance as restricted for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assigned fund balances represent tentative management plans that are subject to change. Unassigned fund balances are available for appropriation by the City’s governing council. The GASB issued statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to address issues related to how governmental fund balance was being reported. Statement 54 requires governments to disclose additional detail regarding the purposes of restrictions, commitments, and assignments, if the required level of detail is not met through display on the face of the balance sheet. Governments should implement Statement 54 no later than the first fiscal year beginning after June 15, 2010. For more information, refer to Note 13.
49 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
M. Bond Discounts/Issuance Costs
In the government-wide statements, these costs are deferred and amortized over the life of the bonds. For governmental fund types in the fund financial statements, the bond discount and issuance costs are expensed in the period they are incurred.
N. 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, liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
O. Use of Restricted/Unrestricted Net Assets
When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City’s policy is to apply restricted net assets first.
NOTE 2 - DEPOSITS AND INVESTMENTS
The City maintains detailed accounting records for individual funds, and it also maintains a cash and investment pool that is available for use by all funds, thereby maximizing the interest earnings for all funds. Each fund type's portion of this pool is included in the statement of net assets as "Cash" and "Restricted Cash." Also included are deposits and investments held by the Trustees on various bond issues. The basis of investments is cost. Deposits and investments are not required to be collateralized by state statute.
There are no restrictions or material differences in the types of investments that can be made for different funds, fund types or component units, provided such investments meet the requirements of the Utah Money Management Act. According to the general indenture instructions for all outstanding bond issues, bond proceeds may be invested and reinvested in investment securities that mature no later than the date on which the monies on deposit therein will be needed for the purposes of such funds.
Investments of monies in Debt Service Reserve Accounts must mature no later than five years from the date of such investments.
50 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 2- DEPOSITS AND INVESTMENTS (continued)
A. Custodial Credit Risk
The City follows the requirements of the Utah Money Management Act (Utah Code Annotated 1953, Section 51, Chapter 7) in handling its depository and temporary investment transactions.
Custodial credit risk for deposits is the risk that, in the event of a bank failure, the local government’s deposits may not be recovered. The City policy for managing custodial credit risk is to adhere to the Money Management Act. The Act requires all deposits of the local government to be in a qualified depository, defined as any financial institution whose deposits are insured by an agency of the federal government and which has been certified by the Commissioner of Financial Institutions as meeting the requirement of the Act and adhering to the rules of the Utah Money Management Council. As of June 30, 2012, $5,151,123 of the City’s bank balance of $5,401,123 was uninsured and uncollateralized.
B. Credit Risk
Credit risk is the risk that the counterparty to an investment will not fulfill its obligations. The City follows the requirements of the Utah Money Management Act (Section 51, chapter 7 of the Utah code) in handling its depository and investing transactions. City funds are deposited in qualified depositories as defined by the Act.
The City is authorized to invest in the Utah Public Treasurer’s Investment Fund (PTIF), an external pooled investment fund managed by the Utah State Treasurer and subject to the Act and Council requirements. The PTIF is not registered with the SEC as an Investment Company and deposits in the PTIF are not insured or otherwise guaranteed by the State of Utah. The PTIF operates and reports to participants on an amortized cost basis. The income, gains, and losses, net of administration fees, of the PTIF are allocated based upon the participants’ average daily balances. The city’s fair value of its position in the pool is the same as the value of the pool shares.
For the year ended June 30, 2012, the City had investments of $81,396,662 with the PTIF. The entire balance had a maturity less than one year. The PTIF pool has not been rated.
C. Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City manages its exposure to declines in fair value by following Provo City Investment Policy and adhering to the Utah Money Management Act. The Act requires that the remaining term to maturity of investments may not exceed the portion of availability of the funds to be invested.
51 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 3 - RECEIVABLES
Accounts receivable are recorded in the general, special revenue, capital projects and enterprise funds. The Energy Fund collects receivables for all utility enterprise funds. It remits the entire amount of the Water, Waste Water, Sanitation, and Storm Drain Funds' collections each month to the respective fund. At year-end each fund is charged for its pro-rata share of uncollectible accounts receivable. Adjustments to allowance for doubtful accounts increase or decrease the related revenue accounts.
Accounts receivable and the associated allowances for uncollectible accounts, at June 30, 2012, consist of the following:
Governmental Funds Housing Nonmajor General Consortium Debt Service Funds Total
Receivables $ 11,051,973 $ 12,596,553 $ 4,698,524 $ 10,581,120 $ 38,928,171 Less: allowance for Uncollectibles (843,154) (843,154) Net total receivables $ 10,208,819 $ 12,596,553 $ 4,698,524 $ 10,581,120 $ 38,085,016
Increase (decrease) Revenue related to uncollectibles $ (62,650) $ 0 0 $ 0 $ (62,650)
Proprietary Funds Waste Storm Internal Water Water Energy Airport Telecom Sanitation Drain Total Service Fund
Receivables $ 810,807 $ 1,698,411 $ 10,449,226 $ 382,249 $ 869 $ 564,654 $ 297,610 $14,203,826 $ 1,656 Less: allowance for Uncollectibles (105,246) (22,561) (152,612) 0 0 (8,433) (4,717) (293,568) 0 Net total receivables $ 705,561 $ 1,675,851 $ 10,296,612 $ 382,249 $ 869 $ 556,222 $ 292,894 $13,910,258 $ 1,656
Increase (decrease) Revenue related to $ 91,954 $ (6,043) $ 4,206 $ - $ - $ 585 $ 675 $ 91,377 $ 0
Property taxes are levied on January 1, giving the City legal claim on that date. The taxes are due on November 1 and are delinquent after November 30 of each year. Property taxes are collected by the Utah County Treasurer and remitted to the City shortly after collection. The property taxes that have been remitted to the City within 60 days of the end of the current fiscal period have been recognized as revenue. The uncollected, measurable amounts have been accrued as unearned revenue.
Property taxes that were levied on January 1 of 2012 and are due in November of 2012 are budgeted for the 2013 fiscal year. Even though they are intended to fund the 2013 fiscal year, they must be recognized as an asset because the City has an enforceable claim to the revenue.
Franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered as susceptible to accrual as revenue of the current period.
52 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 3 – RECEIVABLES (continued)
All other revenue items are considered to be measurable and available only when cash is received by the City. The revenue recognized on these receivables is deferred until the cash is collected in the governmental fund statements.
The City has several lending programs intended to revitalize neighborhoods and business districts. These programs are funded through state and federal grants. The loans to citizens and businesses represent the majority of the notes receivable balance on the financial statements.
Notes receivable and the associated allowances for uncollectible accounts, at June 30, 2012, consist of the following:
Governmental Business- Activities type Total
Business & citizen assistance loans $ 17,055,667 $ 0 $ 17,055,667 Less: allowance for Uncollectibles (744,570) 0 (744,570) Other notes receivable 0 805,000 805,000 Net total notes receivable $ 16,311,097 $ 805,000 $ 17,116,097
Governmental funds report deferred revenue in connection with receivable for revenues that are not considered to be available to liquidate liabilities of the current period (unavailable). Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned (unearned). At the end of June 30, 2012, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows:
Unearned Unavailable
Property tax receivable (general fund) $ - $ 3,865,445 Property tax receivable (library fund) - 2,859,622 Property taxes (debt service fund) - 4,404,888 Grant Revenue 939 - Ambulance Billing - 368,094 Central Billing - 608,540 Special Improvement Assessment Billing - 129,122 Notes Receivable - 17,968,525 $ 939 $ 30,204,236
53 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 4 – CAPITAL ASSETS
The following table delineates the capital asset reclassifications as well as the normal capital asset activity for the year ended June 30, 2012:
Capital asset activity for the year ended June 30, 2012 was as follows:
Beginning Ending Governmental Activities: Balance Increases Decreases Balance Capital assets not being depreciated: Land $ 164,882,683 $ 1,318,610 $ (314,068) $ 165,887,225 Land Easement 200,983 200,983 Construction in progress 4,165,090 24,455,926 (3,756,260) 24,864,756 169,248,756 25,774,536 (4,070,328) 190,952,964
Capital assets being depreciated: Machinery and equipment 33,024,292 3,525,168 (1,709,277) 34,840,183 Library collection 5,641,313 359,926 (453,462) 5,547,777 Buildings 66,120,679 198,529 (212,367) 66,106,841 Land improvements 10,239,805 1,184,258 11,424,063 Infrastructure: Trails 911,617 911,617 Traffic signals 6,409,273 17,908 6,427,181 Fiber optic 961,266 961,266 Noise wall 127,160 127,160 Bridges 12,721,826 941,718 13,663,544 Roads 93,306,117 1,678,825 (71,983) 94,912,959 Sidewalks 24,379,458 397,800 24,777,258 Total 253,842,806 8,304,132 (2,447,089) 259,699,849
Beginning Ending Balance Increases Decreases Balance Less accumulated depreciation for: Machinery and equipment (24,720,934) (2,201,003) 1,510,911 (25,411,026) Library collection (4,727,571) (366,586) 453,462 (4,640,695) Buildings (30,247,789) (1,625,798) 208,458 (31,665,129) Land improvements (2,018,620) (511,990) (2,530,610) Infrastructure: Trails (389,576) (45,580) (435,156) Traffic signals (2,382,458) (215,767) (2,598,225) Noise Wall (44,506) (6,358) (50,864) Fiber Optic (411,972) (137,323) (549,295) Bridges (3,287,370) (212,600) (3,499,970) Roads (58,689,610) (2,733,877) 71,983 (61,351,504) Sidewalks (10,040,983) (487,524) (10,528,507) Total (136,961,389) (8,544,406) 2,244,814 (143,260,981)
Total capital assets, being depreciated, net 116,881,417 (240,274) (202,275) 116,438,868 Governmental activities capital assets, net $ 286,130,173 $ 25,534,262 $ (4,272,603) $ 307,391,832
54 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 4 – CAPITAL ASSETS (continued)
Capital asset activity for the year ended June 30, 2012, continued:
Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets not being depreciated: Construction in progress $ 2,899,393 $ 2,308,809 $ (2,146,869) $ 3,061,333 Water Stock 2,420,927 2,420,927 Land 41,372,454 2,885 41,375,339 Total 46,692,774 2,311,694 (2,146,869) 46,857,600
Capital assets being depreciated: Machinery and equipment 17,856,546 3,235,739 (3,166,257) 17,926,028 Buildings & Building Improvements 101,261,059 1,752,909 (2,248,556) 100,765,412 Land improvements 39,597,065 21,390 (40,610) 39,577,845 Infrastructure: Storm Drain 27,530,403 1,322,374 28,852,777 Water Lines 44,323,729 325,705 (23,831) 44,625,603 Sewer Lines 21,813,920 1,213,038 (3,191) 23,023,767 Telecom 0 21,542,000 21,542,000 Energy 51,567,193 3,654,559 (76,078) 55,145,674 Total 303,949,915 33,067,714 (5,558,523) 331,459,106
Less accumulated depreciation for: Machinery and equipment (9,719,110) (666,259) 3,158,370 (7,226,999) Buildings (73,603,479) (1,444,321) 1,995,277 (73,052,523) Land improvements (22,108,094) (1,192,127) 21,659 (23,278,562) Infrastructure: Storm drain (14,074,026) (508,141) (14,582,167) Water lines (17,420,596) (440,615) 17,324 (17,843,887) Sewer lines (10,591,712) (178,854) 3,191 (10,767,375) Energy (21,328,635) (1,318,914) 41,247 (22,606,302) Total (168,845,652) (5,749,231) 5,237,068 (169,357,815)
Total capital assets, being depreciated, net 135,877,723 27,318,483 (321,455) 162,101,290 Business-type activities capital assets, net $ 179,933,998 $ 29,630,177 $ (2,468,324) $ 208,958,890
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55 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 4 – CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities: General government $ 2,400,932 Public safety 288,638 Public services 3,817,354 Community revitalization 348,298 Culture and recreation 1,689,184 Total depreciation expense - governmental activities $ 8,544,406
Business-type activities Golf Course $ 300,121 Water 872,867 Sewer 638,597 Energy 2,428,006 Airport 985,203 Sanitation 966 Storm drain 523,471
Total depreciation expense - business-type activities $ 5,749,231
The total interest capitalized during the current fiscal year was $109,894.
NOTE 5- RISK MANAGEMENT
The City participates in the Utah State workers compensation program. Premiums paid in fiscal year ending June 30, 2012, from the Employees Benefits Fund were $230,847, an increase of $19,595 from the prior year. Also, the City received a dividend of $2,678.98 as a result of good claims history.
Cash transfers were made into the employee benefits fund by all other funds and are available to pay the premiums. The interfund transfers are based primarily upon the individual funds' claims experience and are included as an employee benefit under personnel expenses.
As of June 15, 2009 a commercial insurance carrier is responsible for the portion of a claim that exceeds $500,000 and to a limit of $10 million per occurrence. No settlements/claims exceeded the limit available in each of the past three years.
The following schedule is a reconciliation of the changes in the aggregate claims liability for the City from the prior fiscal year to the current fiscal year:
Aggregate Claims Beginning Claims Claims Ending Liability Balance Accrued Paid Balance
2012 $300,000 $187,208 ($187,208) $300,000 2011 $300,000 $376,579 ($376,579) $300,000
56 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 6- CAPITAL LEASES
The City has entered into lease agreements, as lessee, for financing the acquisition of equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date.
The assets acquired through capital leases are as follows:
Assets Original Principal Interest Rates Four Pierce Fire Vehicles $2,331,718 5.99% Four Ambulances $824,164 3.73% Spillman Software $542,720 2.08%
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2012 were as follows: Governmental activities
Lease payment Totals 2013 $ 476,518 2014 476,518 2015 476,518 2016 476,518 Total minimum lease payments 1,906,072 Less amount representing interest (159,666) Present Value of minimum lease payments 1,746,406 Amount due within one year 413,819 Amount due after one year $ 1,332,587
NOTE 7- LONG-TERM DEBT
General Obligation Bonds
The government issues 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 government.
There were no bonds issued or refinanced during Fiscal Year 2012. Current total general obligation bonds have been issued for governmental activities in the amount of $54,320,000.
Revenue Bonds The government also issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. The original amount of revenue bonds issued in prior years was $83,029,000 for business-type activities and $2,100,000 for governmental activities.
57 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 7- LONG-TERM DEBT (continued)
Notes Payable
The City entered into an agreement on August 7, 2003 with the Department of Housing and Urban Development for a section 108 loan to be used for infrastructure for an industrial business park at 2900 South Mountain Vista Parkway for $3,500,000.
The City entered into an agreement on August 21, 2007 with the Provo Foundation to borrow $1,000,000 to purchase property adjacent to the airport for future airport expansion. The City issued a note to the Foundation for $1,000,000.
Conduit Debt
In April of 2007, $10,750,000 of Education bonds were issued in the name of the City to construct a new education facility located in Provo. The borrower is the Provo Freedom Academy. The outstanding balance on June 30, 2012 is $10,210,000.
In October of 2009, $9,000,000 of Industrial Development Revenue bonds were issued in the name of the City to construct a new manufacturing facility located in Provo. The borrower is Action Commercial Park, LLC. The outstanding balance on June 30, 2012 is $8,282,834.
In October of 2011, authorization was given by the City council to provide a conduit revenue bond issuance in the amount of $2,200,000 to the Friends of the Coalition Project to refinance the costs of acquiring and constructing the Food and Care Coalition building. The outstanding balance on June 30, 2012 is $2,089,199.
The bonds are special limited obligations of the City payable solely from the trust estate established under indenture. The bonds do not and shall not represent, constitute or give rise to a general obligation or liability of the City or a charge against the general credit or taxing power of the City, the State of Utah, or any political subdivision thereof.
58 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 7- LONG-TERM DEBT (continued)
Principal and interest requirements to retire the City’s long-term obligations are as follows: Governmental activities G.O. Bonds Revenue Bonds Principal Interest Principal Interest 2013 $ 2,600,000 $ 1,804,888 $ 100,000 $ 87,465 2014 2,665,000 1,733,638 105,000 82,565 2015 2,765,000 1,660,388 125,000 77,420 2016 1,610,000 1,584,350 135,000 71,295 2017 1,640,000 1,552,150 50,000 64,680 2018-2022 9,110,000 6,855,750 385,000 280,525 2023-2027 11,200,000 4,769,238 885,000 131,320 2028-2032 13,860,000 2,104,225 - - $45,450,000 $ 22,064,626 $ 1,785,000 $ 795,270
Notes Payable Total Principal Interest Principal Interest 2013 $ 131,798 $ 22,924 $ 2,831,798 $ 1,915,277 2014 138,388 16,334 2,908,388 1,832,537 2015 145,307 9,415 3,035,307 1,747,223 2016 42,979 2,148 1,787,979 1,657,793 2017 - - 1,690,000 1,616,830 2018-2022 - - 9,495,000 7,136,275 2023-2027 - - 12,085,000 4,900,558 2028-2032 - - 13,860,000 2,104,225 $ 458,472 $ 50,821 $ 47,693,472 $ 22,910,717
Current Portion Bonds $ 2,700,000 Notes 131,798 Leases 413,818 Total Current portion 3,245,616 Long-term Portion Bonds 44,535,000 Notes 326,674 Leases 1,332,587 Total Long-term portion 46,194,261 Grand Total 49,439,877 Unamortized amounts-premium (discount) 510,411 Less Leases 1,746,405 Grand Total $ 48,203,883
59 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 7- LONG-TERM DEBT (continued)
Principal and interest requirements to retire the City’s long term obligations continued:
Business-type activities
Revenue bond Principal Interest 2013 $ 6,325,000 $ 2,348,881 2014 6,588,000 2,028,676 2015 2,280,000 1,731,024 2016 2,380,000 1,635,135 2017 2,485,000 1,528,791 2018-2022 14,290,000 5,722,355 2023-2026 12,695,000 1,676,216 $ 47,043,000 $ 16,671,078
Current Portion Bonds $ 6,325,000 Long-term Portion 40,718,000 Grand Total 47,043,000 Unamortized amounts-premium (discount) (578,783) Grand Total $ 46,464,217
The following is a schedule of bonds that were issued by the City and later refunded because lower interest rates were available:
Refunded Long-term Debt Original Original Unpaid Balance IssueDate IssueAmount June 30, 2012 Final Date of Maturity Refunding Bonds
1980 A Series Energy Revenue Bonds 12/01/80 $22,400,000 $6,226,500 04/01/15 1985 A Series
60 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 7- LONG-TERM DEBT (continued)
Long-term debt activity for the year ended June 30, 2012, was as follows:
Balance Balance Amount Due Governmental activitie s June 30, 2011 Increases (Decreases) June 30, 2012 2013 Bonds Payable: General obligation bonds G.O. 2006 Road Bonds (9.14 - 3.78) $ 4,485,000 $ - $ (1,060,000) $ 3,425,000 $ 1,100,000 G.O. 2006 Road Bonds unamortized 23,987 - (5,997) 17,990 - G.O. 2011 Rec Center Bond 39,000,000 - - 39,000,000 - G.O. 2011 Rec Center unamortized 506,689 - (24,716) 481,973 - G.O. Series 2010A Library 4,505,000 - (1,480,000) 3,025,000 1,500,000 G.O. Series 2010A Library unamortized 73,823 - (27,665) 46,158 - Telecom 2004 Sales Tax Bonds (2.54-5.42%) 32,670,000 - (32,670,000) - - Less Deferred Costs (388,796) - 388,796 - - 2006 increment bond 1,880,000 - (95,000) 1,785,000 100,000 2006 increment bond unamortized (38,355) - 2,645 (35,710) - Total Governmental Fund Bonds 82,717,348 - (34,971,937) 47,745,411 2,700,000
Notes Payable: Note Payable Hud 108 (4.32%) 1,050,000 - (1,050,000) - - Note Payable Wells Fargo (3.48%) 153,979 - (153,979) - - Note Payable Library Legacy Foundation 583,994 - (125,522) 458,472 131,798 Total Notes Payable 1,787,973 - (1,329,501) 458,472 131,798
Capital Leases 1,613,473 542,720 (409,788) 1,746,405 413,818
Accrued Compensated Absences 5,201,940 197,537 (260,097) 5,139,380 256,969 Total Governmental activity Long-term liabilities $ 91,320,734 $ 740,257 $(36,971,323) $ 55,089,668 $ 3,502,585
Balance Balance Amount Due Business-type activities June 30, 2011 Increases (Decreases) June 30, 2012 2013 Revenue Bonds: 2002 Series A Bonds (5.97-6.22%) $ 7,605,000 $ - $ (2,580,000) $ 5,025,000 $ 2,535,000 Less Deferred Issuance Costs (132,347) - 44,116 (88,231) - Less Deferred Amount on Refunding (228,402) - 76,133 (152,269) - 2003 Series A Energy Bonds (3.0-5.25) 4,450,000 - (1,275,000) 3,175,000 1,480,000 Plus Deferred Issuance Premium 106,151 - (35,384) 70,767 - 2003 Series A Water Bonds (2.0-4.25%) 600,000 - (192,000) 408,000 200,000 Less Deferred Issuance Costs (2,700) - 2,700 - - Telecom 2004 Sales Tax Bonds (2.54-5.42%) - 32,670,000 (1,520,000) 31,150,000 1,585,000 Less Deferred Costs - (388,796) 25,920 (362,876) - Stormwater 2010A Refunding Bonds (2.0-3.0%) 3,940,000 - (505,000) 3,435,000 525,000 Less Deferred Issuance Costs (10,531) - 1,330 (9,201) - Stormwater 2010B Taxable BAB (4.38-5.0%) 3,850,000 - 0 3,850,000 - Less Deferred Issuance Costs (40,076) - 3,103 (36,973) - Total Business-type Bonds 20,137,095 32,281,204 (5,954,082) 46,464,219 6,325,000
Accrued Compensated Absences 1,689,622 152,075 (84,480) 1,757,217 87,860 Total Business-type Long-term liabilities $ 21,826,717 $ 32,433,279 $ (6,038,562) $ 48,221,436 $ 6,412,860
1 Telecom 2004 Sales Tax Bonds were transferred to Business-type Activities in Fiscal Year 2012
61 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 7- LONG-TERM DEBT (continued)
Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year-end, $158,504 of internal service funds compensated absences and $1,316,042 of internal service funds capital leases were included in the above amounts. Also, governmental activities, claims and judgments and compensated absences have generally been liquidated by the general fund in prior years.
NOTE 8 - INTERFUND ASSETS AND LIABILITIES
Interfund assets and liabilities are the result of short-term year-end transactions, or long-term interfund loans. All long-term interfund loans are approved by the governing body and a clear repayment schedule has been established with a competitive interest rate. Due to/from other funds:
Receivable Fund Payable Fund Payable Fund Receivable Fund Governmental Funds Governmental Funds Ge ne ra l C.D.B.G $ 216,662 Ge ne ra l Capital Resources $ 798,615 Ge ne ra l Home le ss P re ve ntion 947 Ge ne ra l De bit S e rvic e 751,891 Ge ne ra l Airport CIP 133,876 Ge ne ra l Boulder's Grant 907 Ge ne ra l Airport 91,829 Ge ne ra l S torm Dra in 959,083
Total Due General Fund $ 2 , 15 5 , 19 5 Total Payable by General Fund $ 7 9 8 , 6 15
Receivable Fund Payable Fund Payable Fund Receivable Fund Other Governmental Funds Other Governmental Funds none none Ne w De ve lopme nt Capital Resources $ 1,349,945 Boulder's Grant General Fund 907 C.D.B.G. General Fund 216,662 De bt S e rvic e General Fund 751,891 Home lle ss P re ve ntion General Fund 947
Total Receivable other Gov. funds $ - Total Payable by other Gov. Funds $ 2 , 3 2 0 , 3 5 2
Total Due Governmental Funds $ 2 , 15 5 , 19 5 Total Payable Due by Governmental Funds $ 3 , 118 , 9 6 7
62 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 8 - INTERFUND ASSETS AND LIABILITIES (continued)
Receivable Fund Payable Fund Payable Fund Receivable Fund Inte rna l S e rv ic e F unds Inte rna l S e rv ic e F unds Capital Res o urces General Fund $ 798,615 Capital Res o urces Sanitation CIP $ 147,425 Capital Res o urces New Development 1,349,945 Capital Res o urces Energy 1,926,302 Capital Res o urces Airpo rt CIP 1,073,584 Capital Res o urces Vehicle Capital Res erve 689,945 Vehicle Capital Res erve Capital Res o urces 689,945
***Includes Current and No ncurrent*** ***Includes Current and No ncurrent*** Total due Internal Service Funds $ 3 ,9 12 ,0 8 9 Total Payable by Internal Service Funds $ 2 ,7 6 3 ,6 7 2
Receivable Fund Payable Fund Payable Fund Receivable Fund Ente rpris e F unds Ente rpris e F unds Energy Capital Res o urce $ 1,926,302 Airpo rt General Fund $ 91,829 Sanitation CIP Capital Res o urce 147,425 Airpo rt CIP General Fund 133,876 Was tewater Water CIP Airpo rt CIP Capital Res o urces 1,073,584 Energy Facilities Services Sanitatio n Facilities Services Sto rm Drain General Fund 959,083 Was tewater Facilities Services Water Facilities Services Water CIP Was tewater
***Includes Current and No ncurrent*** ***Includes Current and No nCurrent*** To ta l D ue Ente rpris e F unds $ 2 ,0 7 3 ,7 2 7 Total Payable by Enterprise Funds $ 2 ,2 5 8 ,3 7 2
Total Receivable from other Funds $ 8 ,14 1,0 11 Total Payable to other Funds $ 8 ,14 1,0 11
(The remainder of this page is left intentionally blank.)
63 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 8 - INTERFUND ASSETS AND LIABILITIES (continued)
Transfers to/From other Funds Transfer to Transfer from Transfer from Transfer to Governmental Funds Governmental Funds General Fund Mountain Vista $ 100,000 General Airport $ 243,163 General Fund Justice Court 633,653 General Airport CIP 25,000 General Fund Economic Community Investment 71,983 General Arts Council 302,007 General Fund Water 795,557 General B & C Roads 1,237,254 General Fund Wastewater 529,670 General Debt Service 75,241 General Fund Energy 6,032,162 General Enconomic Community Investment 310,382 General Fund Sanitation 389,117 General Engineering CIP 1,164,000 General Fund Storm Drain 229,600 General General CIP 314,980 Media Services General Fund 85,717 General Golf Course 156,118 B & C ROADS General Fund 1,237,254 General Media Services 85,717 General Parks CIP 335,000 General Vehicle Capital Reserve 400,686 General Winterfest 13,000 Justice Court General Fund 633,653 B & C Road Engineering CIP 914,752
Total transferred to General Fund $ 10,104,713 Total transferred from General Fund $ 6,210,953
Transfer to Transfer from Transfer from Transfer To Other Governmental Funds Other Governmental Funds Arts Council General Fund $ 302,007 C.D.B.G. Business Dev. Corp 347,317 Business Dev. Corp. of Provo Commercial Rehab $ 80,000 C.D.B.G. Housing Rehabilitation 60,000 Business Dev. Corp. of Provo C.D.B.G 347,317 C.D.B.G. CNRCC 50,000 Cemetery Perpetuity Parks CIP 310,000 Commerical Rehab Business Dev. Corp 80,000 CNRCC C.D.B.G 50,000 Commerical Rehab Housing Rehabilitation 14,624 CNRCC Housing Rehabilition 100,000 Debit Service General Fund 75,241 Debt Service Airport CIP 312,554 Econ/Com Dev Invest General Fund 310,382 Economic Community Invest General Fund 71,983 Engineering CIP General Fund 1,164,000 Economic Community Invest New Development 300,000 Engineering CIP Mountain Vista 611,000 Housing Rehabilitation Commercial Rehab 14,624 Engineering CIP B & C Road 914,752 Housing Rehabilitation C.D.B.G 60,000 General CIP General Fund 314,980 Mountain Vista Engineering CIP 611,000 Housing Rehibilitation CNRCC 100,000 Mountain Vista General Fund 100,000 New Development Economic Community Investment 300,000 Parks CIP General Fund 335,000 Parks CIP Cemetery Perpetuity 310,000 Parks CIP Wastewater CIP 60,000 Winterfest General Fund 13,000
Total transferred to Other Gov. Funds $ 5,362,303 Total transferred from Other Gov. Funds $ 2,357,478
Total transferred to Governmental Funds $ 15,467,016 Total transferred from Governmental Funds $ 8,568,431
64 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 8 - INTERFUND ASSETS AND LIABILITIES (continued)
Transfer To Transfer From Transfer from Transfer To Internal Service Funds Internal Service Funds Customer Service General CIP $ 182,317 none Vehicle Capital Reserve General Fund 400,686
Total transferred to Internal Service Funds $ 583,003 Total transferred from Internal Service Funds $ -
Transfers to Transfers from Transfers from Transfers to Enterprise Funds Enterprise Funds Airport General Fund $ 243,163 Energy General Fund $ 6,032,162 Airport CIP General Fund 25,000 Energy Telecom Debt Serv 2,117,723 Airport CIP Debt Service 312,554 Energy Energy CIP 4,863,252 Energy Wastewater 2,000 Sanitation General Fund 389,117 Energy CIP Energy 4,863,252 Sanitation Sanitation CIP 300,000 Telecom Debt serv Energy 2,117,723 Storm Drain General Fund 229,600 Golf Course General Fund 156,118 Storm Drain Storm Drain CIP 200,000 Sanitation CIP Sanitation 300,000 Waste Water Energy 2,000 Storm Drain CIP Wastewater CIP 92,000 Wastewater General Fund 529,670 Storm Drain CIP Storm Drain 200,000 Wastewater Water 482,495 Wastewater CIP Wastewater 641,000 Wastewater Wastewater CIP 641,000 Water Wastewater 482,495 Wastewater CIP Parks CIP 60,000 Water CIP Water 1,753,500 Wastewater CIP Storm Drain CIP 92,000 Wastewater CIP General Fund 18,059 Water General Fund 795,557 Water Water CIP 1,753,500
Total transferred to Enterprise Funds $ 11,188,804 Total transferred from Enterprise Funds $ 18,506,135
**Note: The transfer amounts can be found in the other financing sources (uses) section of the statement of revenues, expenditures and changes in fund balance for all funds.
Transfers between the business-type activities and the governmental activities totaled $7,317,330 per the statement of activities. The majority of the transfers were to governmental funds for administrative services they provide to the business-type funds and for capital outlay in the governmental funds that benefit the City.
In the fund statements, there is a difference in interfund transfers of $164,258. This relates to a transfer of assets to Customer Service from the General CIP Fund and a transfer from Waste Water to the General Fund.
Total transfers to all Funds $ 27,238,824 Total transfers from all Funds 27,074,566 $ 164,258
65 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 9 - CONTINGENT LIABILITIES
The City is involved in litigation arising from the normal course of business activity. It is not possible to determine the ultimate liability, if any, in these matters. The opinion of management is that such litigation will have no material effect on the financial statements of the City.
The City has an insurance policy for public liability and property damage with various deductibles. A separate fund has been established for the purpose of pooling the financial resources of the City and paying the deductible for claims.
The City purchased 68.34 percent of the energy sold by Utah Municipal Power Agency (UMPA) to its member cities. The City is obligated to pay a proportionate share of all operating, maintenance, debt service and any other costs incurred by UMPA based on the City’s energy purchases.
The City participates in Federal Grant programs that are audited in accordance with the provisions of the Single Audit Act of 2004 and the Office of Management and Budget Circular A-133. These grants are subject to financial and compliance audits by the federal government, which may result in disallowed expenditures. In the opinion of management, future disallowances of current grant program expenditures, if any, will be immaterial.
As of June 30, 2012, the City was involved in litigation dealing with fourteen liability cases. It is the opinion of the City’s legal department that the estimated liability is $300,000 if damages are awarded on the remaining cases.
NOTE 10- JOINT VENTURES
The Utah Municipal Power Agency (UMPA) was created jointly as a separate legal entity and political subdivision of the State of Utah by an agreement dated September 17, 1980, pursuant to the provisions of the Utah Interlocal Cooperation Act. UMPA's membership consists of six municipalities. UMPA's purposes include planning, financing, development, acquisition, construction, improvement, betterment, operation or maintenance of projects for the generation, transmission and distribution of electric energy for the benefit of the member municipalities. The City purchased 68.34 percent of the energy sales of the Agency to member cities in the current fiscal year and 56.04 percent of all energy sales of the Agency. UMPA billed Provo City $41,541,830 for energy.
Provo City billed UMPA $3,407,825 for maintenance costs, as stipulated in the purchased power agreement between Provo City and UMPA. UMPA has issued revenue bonds to purchase an interest in various electrical generation facilities to provide power to its members.
Under the terms of the S-1 Power Sales Agreement, the members are obligated to pay their proportionate share, based on energy purchases, of all operation and maintenance expenses and debt
66 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 10 - JOINT VENTURES (continued) service on the revenue bonds incurred by UMPA. Furthermore, they are obligated to purchase all of their energy needs from the Agency.
UMPA is governed by a six member board composed of the Mayor of each city. Despite the imbalance in proportionate share of energy consumption, a majority vote is needed to approve any significant activity. Below is a summary of the financial position of UMPA:
UMPA At June 30, 2012
Total assets $42,138,960 Total liabilities (42,135,610) Total fund equity $3,350
For the year ended June 30, 2012
Total operating revenue $68,159,908 Total operating expenses (64,512,428) Nonoperating revenue and expense (3,647,480) Net income (loss) $0
Complete financial statements for the agency may be obtained at Utah Municipal Power Agency, 40 South Main, Spanish Fork, UT 84660.
The South Utah Valley Solid Waste District (the District) was created May 11, 1989, for the purpose of building and operating a landfill and transfer station. The District's membership consists of seven municipalities. The City made an initial investment of $4,651,000, or 54 percent of the costs, to construct the facilities.
Participants and their percentage shares:
Springville City 15.00% Provo City 69.75% Spanish Fork City 11.75% Mapleton City 2.00% Salem City 1.50% Woodland Hills 0.00% Goshen Town 0.00% 100.00%
A seven-member board composed of the Mayor of each city governs the District. A voting majority of Provo City and at least one other board member or a voting majority of all board members excluding Provo City is needed to approve any significant activity. The City paid the District $901,623 for user fees for the fiscal year ended June 30, 2012.
67 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 10 - JOINT VENTURES (continued)
Below is a summary of the financial position of the District:
South Utah Valley Waste District At June 30, 2012
Total assets $17,494,582 Total liabilities (5,872,934) Total fund equity $11,621,648
For the year ended June 30, 2012
Total operating revenue $5,295,605 Total operating expenses (5,980,683) Nonoperating revenue and expense 6,606 Capital Contributions 0 Net income (loss) ($678,472)
In fiscal 2012, the City made an entry of ($363,613) to account for the city’s portion of the net gain/(loss). The City is currently showing an investment in this joint venture in the amount of $8,106,099.
Complete financial statements for the District may be obtained at South Utah Valley Solid Waste District, 2450 West 400 South, Springville, UT 84663.
The Provo City/Utah County Ice Sheet Authority was created March 19, 1996, as a joint venture between Provo City and Utah County for the purpose of financing, constructing, maintaining and operating an Olympic ice sheet to be constructed at the Seven Peaks property in Provo, Utah. The Ice Sheet Authority has entered into a Development Agreement with Seven Peaks under which Seven Peaks has designed and constructed the Ice Sheet under the direction and control of the Ice Sheet Authority.
The Ice Sheet Authority is governed by a six member board. Three members are from the Board of County Commissioners of Utah County, three members are the Provo City Mayor, a member of the City Council and a person appointed by the Mayor. Board decisions are made by a majority of the members of a quorum of the Board of Directors.
The Ice Sheet Authority and the Salt Lake Organizing Committee (SLOC) for the Olympic Winter Games of 2002 entered into an Ice Sheet Use Agreement. Under this agreement, the Ice Sheet Authority agreed to make the ice sheet available for the exclusive use of the SLOC in connection with the Winter Olympics of 2002 and related events preceding and occurring after the Winter Olympics of 2002.
68 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 10 - JOINT VENTURES (continued)
The City and the County agreed on a financing plan under which the Building Authority of Provo City issued lease revenue bonds secured by (1) rental revenues derived under a Lease Agreement by and between the Building Authority, as lessor, and the City, as lessee, (2) rental revenues derived under a Sublease Agreement by and between the City, as sublessor, and the County, as sublessee, (3) an assignment of the Lease and Sublease from the City and the County to the Ice Sheet Authority, (4) an assignment of the pledge to the Building Authority of any revenues received by the Ice Sheet Authority from Seven Peaks under the Lease and Management Agreement, and (5) a pledge of revenues to be received by the Ice Sheet Authority from SLOC under the Ice Sheet Agreement for the use of the Ice Sheet by SLOC.
Below is a summary of the financial position of the Ice Sheet Authority:
Ice Sheet At June 30, 2012
Total assets $12,841,685 Total liabilities (46,776) Total fund equity $12,794,909
For the year ended June 30, 2011
Total operating revenue $824,459 Total operating expenses (1,325,302) Nonoperating revenue 287,138 and expense Net income ($213,705)
In fiscal 2012, the City made an entry of ($83,465) to account for the city’s portion of the net gain/(loss). The City is currently showing an investment in this joint venture in the amount of $6,420,842.
Complete financial statements for the Authority may be obtained at Provo City/Utah County Ice Sheet Authority, C/O Provo City Finance Department, 351 West Center St., PO Box 1849, Provo, UT 84603.
The South Utah Valley Animal Services Special Services District (the District) is a political subdivision of the State of Utah organized June 2003 for the purpose of animal control and animal shelter services to the residents of Southern Utah County, Utah. The District's membership consists of nine municipalities and Utah County. The City made an initial investment of $20,888 or 42 percent of the startup costs, to operate the facility.
An eleven-member board governs the District. Each city included within the boundaries of the District may appoint a member to the board. Each member of the board has one vote. A
69 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 10 - JOINT VENTURES (continued) majority vote of the members present is necessary to approve any agenda item before the board The City paid the District $60,577 for operating costs in fiscal 2012.
Below is a summary of the financial position of the District:
At June 30, 2012
Total assets $296,592 Total liabilities (31,243) Total fund equity $265,349
For the year ended June 30, 2012
Total operating revenue $361,410 Total operating expenses (403,772) Nonoperating revenue and expense 2,006 Net income ($40,356)
Complete financial statements for the District may be obtained at South Utah Valley Animal Services Special Service District, 582 West 3000 North, Spanish Fork, UT 84660.
NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description. In addition to the pension benefits described in Note 12, the City provides post-retirement health care and life insurance benefits in accordance with City policy, to all employees who retire from the City upon completing the requirements for the retirement plan participated in as detailed in Note 12. Currently there are 105 retirees who meet those requirements. The City pays the retirees’ health care and life insurance premiums on a pay-as- you-go basis. The spouse is required to pay the entire premium. Terminated employees under the COBRA Act are allowed to purchase the same insurance policy at their own expense for a period of 18 months. The City paid $1,462,809 in premiums for retirees during the fiscal year ended June 30, 2012.
The GASB has issued statement No. 45, “Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions”, which establishes accounting standards for reporting other OPEB. Statement 45, which is effective for the City for year ended June 30, 2008, requires the City to measure and disclose an amount for annual OPEB cost on the accrual basis of accounting.
The City provides an OPEB, a single employer defined benefit healthcare plan according to Provo City Personnel Policy #22. Only City employees hired before July 1, 1987, are eligible
70 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued) to receive post-employment health and life insurance benefits from the OPEB Plan. The City does not prepare separate financial statements for the OPEB plan.
Funding Policy. Full-time regular employees who commenced full time employment with the City before July 1, 1987, may continue to participate in the City medical insurance program after retirement, according to the terms of the current medical insurance program and State Retirement regulations, for themselves and their dependents, by paying the same amount as if they were not retired. Full-time regular employees who commenced full time employment with the City after July 1, 1987, may continue to participate in the City medical insurance program after retirement for themselves and their dependents by paying the full premium cost according to the terms of that current program and the State Retirement regulations. Retired employees who maintain continuous coverage may do so until they reach the age 65 or are eligible for Medicare, whichever comes first. Retired employees who drop medical coverage participation may not be reinstated.
Spouses of retirees hired as full-time employees before July 1, 1987, who are under the age 65, may continue health insurance coverage once their retired spouse has reached age 65 by paying the full premium cost according to the terms of the current City medical insurance program. The spouse must apply for such coverage at the time the retired employee reaches age 65. The spouse may retain such coverage until he/she is age 65 or is eligible for Medicare.
If a Provo City employee hired as a full-time employee before July 1, 1987, dies while still in active service with the City, or after retirement, the spouse under age 65 and eligible dependents may continue medical insurance coverage under the terms of the current program until age 65 so long as he/she does not qualify for coverage with another employer. Provo City will pay a contribution of fifty percent (50%) of the premium for single or family coverage according to the terms of the program currently offered until the spouse reaches age 65, is covered by another employer, or is eligible for Medicare.
If an active employee hired as a full-time employee before July 1, 1987, terminates from Provo City employment with a certified medical disability retirement resulting from a job related injury or illness, the employee may continue coverage under the City medical insurance program currently offered for himself/herself and all eligible dependents. In such cases, the retiree on disability will pay the same amount as if they were an active full-time employee according to the terms of that current program to age 65, so long as the retiree on disability does not qualify for coverage with another employer or is eligible for Medicare.
Full-time regular employees who commenced full time employment with the City after July 1, 1987, and are terminating with a certified medical disability retirement resulting from a job related injury may continue to participate in the City medical insurance program after their
71 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued) disability retirement. In such cases, the retiree on disability will pay the full premium cost according to the terms of that current program to age 65. Employees on disability retirement who drop insurance coverage participation may not be reinstated.
Spouses of retirees on disability hired before July 1, 1987, who are under age 65, may continue health insurance coverage once their spouse on disability has reached age 65 by paying the full premium cost according to the terms of the current City medical insurance program. The spouse must apply for such coverage at the time the retired employee on disability reaches age 65. The spouse may retain such coverage until he/she is age 65 or is eligible for Medicare. If the disabled retiree, who was hired as a full-time employee before July 1, 1987, dies before age 65, the spouse under age 65 and eligible dependents may continue coverage under the City medical insurance program according to the terms of that current program until the spouse reaches age 65, qualifies for coverage with another employer, or becomes eligible for Medicare. Provo City will pay a contribution of fifty percent (50%) of the premium for single or family coverage according to the terms of the program currently offered until the spouse reaches age 65 or is covered by another employer or is eligible for Medicare.
As of July 1, 2011, the date of the latest actuarial valuation, approximately 512 active employees (52 Pre-07/01/87 and 460 Post-07/01/87) and 105 inactive (retired) employees are receiving health insurance benefits from the City.
Annual OPEB cost and Net OPEB obligation. The end of the year net OPEB obligation is determined as follows:
Annual Required Contribution (ARC) $ 1,847,169 Interest on Net OPEB Obligation 56,152 Adjustment to the ARC (84,455) Annual Pension Cost (APC) 1,818,866 Contributions Made (2,103,820) Increase (Decrease) in Net OPEB Obligation (284,954) Net OPEB Obligation, Beginning of Year 1,403,810 Net OPEB Obligation, End of Year $ 1,118,856
The following is a three-year summary of Provo City’s Net OPEB obligation:
Percentage of Fiscal Year Ended Annual OPEB Annual OPEB Net OPEB June 30, Cost Contributed Obligation 2012 $ 1,818,866 110.20% $ 1,118,856 2011 1,793,578 92.00% 1,403,810 2010 1,715,477 89.10% 1,403,829
72 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Funded status and funding progress. As of July 1, 2011, the actuarial accrued liability (AAL) for benefits was $24.67 million. The City of Provo has not set aside assets at this time; therefore, the unfunded actuarial accrued liability is equal to the actuarial accrued liability.
Actuarial Accrued Liability (AAL) $24,669,989 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) $24,669,989 Funded ratio 0% Covered payroll (annual payroll of active employees covered by the plan) $36,062,786 UAAL as percentage of covered payroll 68.41%
The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits.
Actuarial methods and assumptions. Actuarial valuations of an ongoing plan involve estimates of the value of reported amount and assumptions about the probability of events far in the future. Examples include assumptions about future employment, mortality and healthcare cost trend. Actuarially determined amounts are subject to continual revisions as actual results are compared with past expectations and new estimates are made about the future. In the July 1, 2011 actuarial valuation the following assumptions were made:
Actuarial Assumptions Actuarial cost method Full eligibility age Amortization method Level dollar, closed Remaining amortization period 30 years Inflation rate 2.75% Asset valuation method N/A* Interest rate 4.00% Projected health insurance cost increases 7.8% for FY11-12 7.3% for FY12-13
6.3% for FY13-14 grading to
4.6% for FY83 and beyond
Projected dental cost increases 5.0% for FY11-74 5.0% for FY74-75 grading to
4.6% for FY83 and beyond * The City has no actuarial value of assets due to the City's pay-as-you-go accounting.
73 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 12 - RETIREMENT PLANS
Plan Description. The City participates in the Utah Retirement Systems (URS). The URS administers the following separate retirement systems in which the City participates: the Local Governmental Contributory Retirement System, the Local Governmental Noncontributory Retirement System, the Public Safety Retirement System, and the Firefighters’ Retirement System, (collectively, hereafter, known as the Systems), all of which are cost-sharing multiple employer defined benefit pension plans. The Systems provide retirement benefits, annual cost- of-living allowances, death benefits and refunds to plan members and beneficiaries in accordance with retirement statutes established and amended by the State Legislature.
Beginning July 1, 2011, the URS also created a Tier 2 plan within the Systems. All new employees hired on or after July 1, 2011 are automatically placed on the Tier 2 plan. Within the Tier 2 plan, employees have two options; one is the Hybrid Retirement System, which combines a pension and 401(k) plan. The other option is the Defined Contribution plan, which is 401(k) only. All contributions were equal to the required contribution for all plans within the Systems.
The Systems have been established and are governed by the respective sections of Chapter 49 of the Utah Code Annotated 1953, as amended, which also establishes the Utah State Retirement Office (Office) for the administration of the Utah Retirement Systems and plans. Chapter 49 places the Systems, the Office and related plans and programs, under the direction of the Utah State Retirement Board (Board), whose members are appointed by the Governor. The Systems issue a publicly available financial report that includes financial statements and required supplementary information for the Systems and Plans. A copy of the report may be obtained by writing to the Utah Retirement Systems, 540 East 200 South, Salt Lake City, UT 84102, or by calling 1-800-365-8772.
A brief summary of eligibility and benefits is as follows:
Contributory Noncontributory Public Safety & Tier 2 Public Tier 2 Public Safety System System Firefighters Employees System and Firefighters Systems System Required Service Years 30 years any age 30 years any age 20 years any age 35 years any age 25 years any age Eligible for Benefit Age 20 years age 60 25 years any age 10 years age 60 20 years age 60 20 years age 60 10 years age 62 20 years age 62 4 years age 65 10 years age 62 10 years age 62 4 years age 65 10 years age 62 4 years age 65 4 years age 65 4 years age 65
Funding Policy. The required contribution rates in effect from July 1, 2011, through June 30, 2012, are as follows, figured on the covered salary for the eligible employees:
74 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 12 - RETIREMENT PLANS (continued)
Contribution Rates Tier 2 Contribution Rates Employee Paid Employer Paid Employer Paid Contributory 6% 9.76% 12.40% Noncontributory N/A 13.77% N/A Public Safety N/A 33.05% 22.01% Firefighters N/A 16.18% 10.64%
The contribution rates are the actuarially determined rates and are approved by the Board as authorized by Chapter 49. The City’s contributions for the current year and each of the two preceding years are as follows:
Year Employer Ended Employee Paid for System June Paid Employee Employer 30 Contributory System 2012 $0 $75,764 $173,993 Tier 1&2 2011 19,401 63,155 128,786 2010 0 104,835 133,664 Noncontributory 2012 N/A N/A 2,547,777 System 2011 N/A N/A 2,455,929 2010 N/A N/A 2,250,448 Firefighters System 2012 N/A 699,172 317 Tier 1&2 2011 N/A 636,021 0 2010 N/A 384,911 0 Public Safety System 2012 N/A N/A 1,708,448 2011 N/A N/A 1,594,225 2010 N/A N/A 1,547,235
The contributions were equal to the required contributions for each year.
Defined Contribution Plans
The City participates in a 401(k) plan managed by the URS. All full-time regular municipal employees are eligible to participate in this plan. The City provides a match to all employees 401(k), not to exceed 2% of an employee’s annual salary. With the addition of the new Tier 2 program within the URS, employees enrolled in either the Defined Benefit Hybrid system or the Defined Contribution system have contributions made to their 401(k). The following table summarizes 401(k) contributions for each of the Systems:
Hybrid Defined System Contribution Public Employees 2.41% 10.00% Public Safety 1.55% 12.00% Firefighters 1.55% 12.00%
75 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 12 - RETIREMENT PLANS (continued)
The City's contributions to the 401(k) plan are made to provide parity in the City's contribution rate to the different systems in which its employees participate. City ordinance gives some employees the option to have the City contribute to the 401(k) plan in lieu of other defined benefit plans. The City contributed a total of $288,103 to the plan during the fiscal year ended June 30, 2012.
NOTE 13 - RESTRICTIONS ON FUND BALANCES AND NET ASSETS
General Fund and Debt Service Funds
State statutes allow the use of accumulated fund balance of the General Fund for the following: (1) to finance operations from the beginning of a fiscal year until revenue is collected, (2) to meet emergency expenditures resulting from natural disasters, and (3) to cover unanticipated deficits in future years. Also, the Class “C” Road Grant monies are designated for certain road uses by Utah State law. Unexpended 2011 grant money is accounted for in the General Fund. Any fund balance in the Debt Service funds after retirement of all general long-term debt must be transferred to the General Fund.
Restricted Net Assets
In the government-wide financial statements, GASB No. 34 requires the City to separately report certain restricted assets, revenues, and balances. Net assets should be reported as restricted when constraints placed on net asset use are either (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (2) imposed by law through constitutional provisions or enabling legislations.
The restricted net assets for the City are as follows:
Restricted Net Assets
Governmental Business type Activities Activities Restricted for capital projects
Capital projects $ 4,638,452 $ 4,754,849
Restricted for debt service
Debt service reserve 1,030,598 338 Energy 2002 Bonds - 330,424 Energy 2003 A Bond - 4,915,129 Water 2003 Bond - 208,770 Telecommunications Bonds - 1,340,017 Total restricted for debt service 1,030,598 6,794,678
Total restricted net assets $ 5,669,050 $ 11,549,527
76 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 13 - RESTRICTIONS ON FUND BALANCES AND NET ASSETS continued
GASB statement 54 requires governments to consistently report fund balances. Fund balance will be displayed in the following classifications:
Nonspendable—amounts that are not in a spendable form (such as inventory) or required to be maintained intact Restricted—amounts constrained to specific purposes by their providers (such as grantors, bondholders, etc.) by enabling legislation. The City recognizes expenses for restricted amounts when the expenses occur, as instructed by GAAP. Assigned—amounts a government intends to use for a specific purpose; intent can be expressed by the governing body. The City recognizes expenses for assigned amounts when the expenses occur. Unassigned—amounts that are available for any purpose; the general fund reports all positive unassigned fund balance. Unassigned also can include deficit fund balances in other governmental funds. The City recognizes expenses for unassigned amounts when the expenses occur.
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77 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 13 - RESTRICTIONS ON FUND BALANCES AND NET ASSETS (continued)
The City’s governmental fund balances are reported below using the classifications given in the GASB statement.
Housing Other Governmental Total Governmental General Consortium Debt Service Parks CIP Funds Funds
Nonspendable: Inventory $ 49,430 $ 15,000 $ 64,430 Restricted for: Emergency Response 301,592 301,592 Road Projects 3,023,714 3,023,714 Contract Purchases 323,504 323,504 Capital Improvements $ 23,942,730 23,942,730 Assigned: Council 49,611 49,611 Finance 42,041 42,041 Information Systems 90,428 90,428 Human Resources 1,000 1,000 Community Development 93,465 93,465 Economic Development 514,491 514,491 General Services 326,369 326,369 Mayor's Office 13,059 13,059 Parks 69,288 69,288 Police 73,416 73,416 Engineering 52,139 52,139 Fire 108,000 108,000 Housing $ 976,250 976,250 Capital Improvements 6,149,560 6,149,560 Library 4,552,149 4,552,149 Arts Council 207,135 207,135 Winterfest 23,651 23,651 Commercial Rehab 55,986 55,986 Business Development 299,339 299,339 Rental Rehab 310,512 310,512 CDBG 10,388 10,388 Housing Rehab 167,976 167,976 Tax Increment 3,148,112 3,148,112 Homebuyer Assistance 2,224 2,224 Special Purpose Grants 81,033 81,033 CNRCC 123,604 123,604 Homeless Prevention 270 270 Economic/Community Investment 696,749 696,749 Debt Services $ 349,895 349,895 New Development 167,248 167,248 Unassigned General 7,639,116 - - - - 7,639,116 $ 12,770,663 $ 976,250 $ 349,895 $ 23,942,730 $ 16,010,936 $ 54,050,474
NOTE 14 - MAJOR UTILITY CUSTOMER
The City, through its Energy Fund and Water Fund, delivers power and water to a major customer. The gross sales to this customer approximate 12 percent of the gross energy dollar sales and 3 percent of gross water dollar sales.
78 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 15 - REDEVELOPMENT AGENCY
During fiscal year 2012, the Redevelopment Agency of Provo City collected tax increment funds of $1,719,017 for the Central Business District Project, Project Area Number 4, and the South University Avenue Project. This included $210,408 of “additional” tax increment funds for a cultural arts facility, i.e., the City’s downtown performing arts center project. The Redevelopment Agency did not pay tax increment funds to any taxing agencies for projects during fiscal year 2012.
The following is a list of outstanding principal amounts of bonds or other contractual commitments associated with projects:
Tax Increment Series 2005 Revenue Bonds $ 1,785,000 ("additional" Increment-performing arts center)
Contract Balances Dillards Department Stores 1,110,869 Provo Towne Center Mall 10,516,515 Total Contract Balances $ 11,627,384
The Redevelopment Agency’s obligation on the Provo Towne Center Mall includes accrual of eight percent annual interest on the remaining balance, calculated from May 15, 1997. The balance shown is after the fiscal year 2012 payment and includes accrued interest. Tax increment proceeds will be applied to interest owed first.
The Redevelopment Agency had $3,000 in administrative expenditures for tax increment projects during the fiscal year.
NOTE 16 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Budgetary Information
The general, special revenue, debt service and capital improvement funds budgets are adopted on a basis consistent with Generally Accepted Accounting Principles. Actual expenditures and operating transfers out may not legally exceed budget appropriations at the department level for the General fund and the fund level for all other funds.
Annual budgets for all funds for the fiscal year commencing July 1 are legally adopted by resolution of the Provo City Council on or before June 22 and after public hearings. The operating budget includes proposed expenditures and revenue sources. Amendments to the annual budget are made throughout the fiscal year by resolution of the Provo Municipal Council after a public hearing.
79 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 16 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (continued)
Budgetary control is maintained at the department level for the General Fund and at the fund level for all other funds. The Department Head may transfer from one category to another upon review and approval of the Budget Officer. Budget cannot be legally transferred from department to department for the General Fund without the approval of the Municipal Council.
Encumbrance accounting is used by the City to assure effective budgetary control and accountability. Unencumbered appropriations lapse at year-end. Encumbered amounts carry over to the subsequent year. The budget in all funds is reduced at year-end by the amount of the reserve for encumbrances and is added to the ensuing year with administrative approval.
Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrances outstanding at year-end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. While appropriations lapse at the end of the fiscal year, the succeeding year's budget ordinance specifically provides for the reappropriation of year-end encumbrances.
Capital projects funds are budgeted on a project basis. However, unused appropriations are transferred forward into the new fiscal year as approved by the Municipal Council in the original budget.
NOTE 17 – RECONCILIATION OF GOVERNMENTAL FUNDS TO GOVERNMENT-WIDE FINANCIAL STATEMENTS
When comparing the capital assets reported on the statement of net assets for governmental funds with the amount reported on the reconciliation between the fund statements and the statement of net assets, there is a difference. The reason the numbers are not the same is because the statement of net assets includes the capital assets of the internal service funds because they primarily benefit governmental funds. The same is true with long-term liabilities. In the reconciliation, the net assets of the internal service funds are reported on one line to explain the difference. The following is a schedule that shows the balances in governmental funds and internal service funds for capital assets and liabilities.
80 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 17 – RECONCILIATION OF GOVERNMENTAL FUNDS TO GOVERNMENT-WIDE FINANCIAL STATEMENTS (continued)
Governmental Reported in Internal service Governmental Funds Fund statements Funds Activities Statement of Net Assets: Capital assets $422,947,387 $0 $27,705,426 $450,652,813 Accumulated depreciation (123,498,887) 0 (19,762,093) (143,260,981) Net $299,448,499 * $0 $7,943,333 $307,391,832 **
Accrued compensated absences $4,980,876 * $0 $158,504 $5,139,380 ** (includes current portion) Net OPEB payable 784,156 * $0 31,876 816,032 **
Bonds payable $47,745,411 $0 $0 $47,745,411 Notes payable 0 0 458,472 458,472 Loans payable 0 0 Leases payable 430,363 0 1,316,042 1,746,405 Long-term liabilities $48,175,774 * $0 $1,774,514 $49,950,287 ** (includes current portion)
Statement of Activities: Capital outlay $25,977,510 $0 $0 $25,977,510 Depreciation (6,677,335) 0 0 (6,677,335) Net 19,300,175 *** 0 0 19,300,175
*Reported on reconciliation of the balance sheet for governmental funds to statement of net assets. **Reported on the statement of net assets in the governmental funds column. ***Reported on reconciliation of the statement of revenues, expenditures and changes in fund balance to the statement of activities.
NOTE 18 – INTEREST EXPENSE
The following is a schedule that shows the amount of interest that was paid during the year, accrued at the end of the year and the total interest capitalized and total charged to expense:
Beginning Ending Accrued Incurred Expensed Capitalized Accrued Governmental funds* $ 440,838 $ ( 1,524,367) $ 1,973,036 $0 889,507
Internal service funds 61,366 (65,789) 54,476 0 50,053
Enterprise funds* 748,026 (2,664,225) 2,496,271 109,894 689,966 Total $ 1,250,230 $ ( 4,254,381) $ 4,523,783 $ 109,894 $ 1,629,526
81 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 19 – FIBER OPTIC NETWORK
On August 31, 2008 the fiber optic network was sold to Broadweave Networks of Provo, LLC, a Utah limited liability company. The purchase price for the network was $40,600,000. The purchase price was to be paid through a secured promissory note over 19 years. The security for the City included the fiber network in Provo and $6,000,000 in letters of credit.
In 2009, Broadweave Network merged with Veracity Communications to form Veracity Networks and continued with the ongoing purchase of the fiber optic network under basically the same terms and conditions. Later in 2009, Veracity approached the City and requested an $82,000 per month reduction in monthly payments for 18 months and agreed to increase the payment in subsequent years to compensate for the reduced payments. Shortly before the eighteen-month period ended, Veracity approached the City and indicated there continued to be a gap between the revenues from the network and the monthly contract payments. Veracity informed the City that the company would not be able to make the monthly contract payments throughout the term of the agreement without renegotiating the contract. Veracity indicated the shortfall existed even after subsidizing the company’s Provo operations with the results of their business operations outside of Provo and this would not be financially sustainable.
The terms of the agreement with Veracity states that if the surety funds securing the monthly contract payments fall below $1.6 million, which is the equivalent of six monthly payments, the City would have the option of owning the network again. Veracity has been using the letters of credit to make all or a portion of the monthly payment. As of June 30, 2011, the surety fund balance fell below the required $1.6 million. As a result, the City drew down the balance on the surety and took possession of the fiber network in Provo effective January 1, 2012.
Currently, the City has contracted with Veracity to operate the fiber network in Provo. The City is considering a number of long-term options for the fiber network (re-sell the business asset, re-start operations and offer retail Internet services, contract with a third party network operator, etc.) and plans to select the best option for the City. However, it is clear that all of the options will likely experience a shortfall between revenue and the required bond payments. The City is committed to maximizing the value of the network for the public and minimizing the shortfall as much as possible.
In order to make the required debt service payments, it became prudent for the City to implement an Energy rate charge for the telecom debt service to all electric utility customers. The rate charge is based on making the annual debt payment of $3.2 million. It is the desire of the City, after selecting the best operating option, that the rate charge may be able to be reduced. In order to address the current uncertainty, the City believes it is in the best interest of all to fund a sustainable solution. On September 20, 2011 the Municipal Council approved an Energy rate charge for a Telecom Debt Service Fee to provide funding for future bond payments.
82 PROVO CITY CORPORATION Notes to the Financial Statements JUNE 30, 2012
NOTE 19 – FIBER OPTIC NETWORK (continued)
After taking back possession of the fiber network effective in January 2012, the City recorded the fiber network assets on its books at $25,000,000. At the same time, the City wrote off the note receivable from Veracity in the amount of $37,773,517 along with the associated provision for doubtful accounts in the amount of $12,773,517. Net assets as of July 1, 2011 were increased by $5,654,941 for governmental activities and decreased by the same amount for business-type activities to reflect this change in reporting classification.
The City remains liable for the sales tax revenue bonds collateralized by sales tax revenues that were issued to fund the construction of the fiber network. The balance due on the sales tax revenue bonds as of June 30, 2012 was $31,150,000. The note receivable from Veracity, along with the associated allowance for doubtful accounts, has historically been included in the Telecom Debt Service Fund and reported as a governmental fund. Beginning in fiscal 2012, the assets and liabilities associated with the fiber network, including the sales tax revenue bonds, and the results of operations are reported as an enterprise fund.
83
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84 Provo City Other Postemployment Benefits Plan Schedule of Funding Progress
Unfunded actuarial Actuarial Valuation Actuarial Accrued Actuarial Value of accrued liability Funded Covered UAAL as percentage Date Liability (AAL) Plan Assets (UAAL) Ratio Payroll of covered payroll July 1, 2011 $ 24,669,989 $ - $ 24,669,989 0%$ 36,062,786 68.41% July 1, 2009 23,544,086 - 23,544,086 0% 34,393,627 68.45% July 1, 2007 28,064,036 - 28,064,036 0% 35,496,947 79.06%
85 PROVO CITY CORPORATION Combining Balance Sheet Other Governmental Funds As of June 30, 2012
Special Revenue
Business Commercial Development Rental Library Arts Council Winterfest Rehab Loans Rehab Assets Cash $4,419,495 $ 243,452 $ 23,651 $ - $ - $ - Restricted cash - - - 60,636 299,422 310,512 Accounts receivable 3,077,019 5,000 4,500 - - - Prepaid expenses - 15,000 - - - - Loans receivable - - - 103,830 191,001 585,841 Note receivable Action Target ------Investment in land ------
Total Assets 7,496,514 263,452 28,151 164,466 490,423 896,353
Liabilities & Fund Balance Liabilities: Accounts payable $ 45,052 $ 13,728 $ - $ 4,650 $ 83 $ - Customer deposits - 14,756 - - - - Deferred revenue 939 5,000 4,500 103,830 191,001 585,841 Unearned revenue 2,859,622 - - - - - Accrued liabilities 36,898 7,833 - - - - Due to other funds 1,853 - - - - - Total Liabilities 2,944,364 41,317 4,500 108,480 191,084 585,841
Fund Balance Nonspendable - 15,000 - - - - Assigned 248,907 18,148 - - - - Unassigned 4,303,243 188,987 23,651 55,986 299,339 310,512 Total Fund Balance 4,552,150 222,135 23,651 55,986 299,339 310,512
Total Liabilities & Fund Balance $ 7,496,514 $ 263,452 $ 28,151 $ 164,466 $ 490,423 $ 896,353
86 Special Revenue
Homebuyer Special Housing Tax Assistance Purpose New Homeless Boulders C.D.B.G. Rehab Increment Revolving Grants Development C.N.R.C.C. Prevention Grant
$ - $ - $ - $ - $ - $ 100 $ - $ - $ - - 167,976 3,225,097 2,224 81,033 165,545 123,604 - - 429,210 - 144 - - - - 1,217 12,324 ------161,330 - 690,494 870,328 - 2,060,438 ------1,350,164 - - -
429,210 329,306 3,225,241 692,718 951,361 1,515,809 2,184,042 1,217 12,324
$ 193,169 $ - $ 77,129 $ - $ - $ (1,384) $ - $ 947 $ 12,324 ------161,330 - 690,494 870,328 - 2,060,438 ------8,991 ------216,662 - - - - 1,349,945 - - - 418,822 161,330 77,129 690,494 870,328 1,348,561 2,060,438 947 12,324
------10,388 167,976 3,148,112 2,224 81,033 167,248 123,604 270 - 10,388 167,976 3,148,112 2,224 81,033 167,248 123,604 270 -
$ 429,210 $ 329,306 $ 3,225,241 $ 692,718 $ 951,361 $ 1,515,809 $ 2,184,042 $ 1,217 $ 12,324
87 Capital Projects Total Economic/ Other Community Engineering Mountain Economic Governmental Investment General CIP CIP Vista Development Funds Assets Cash $ 696,749 $ - $ - $ - $ 140,846 $5,524,293 Restricted cash - 547,418 4,853,204 2,259 - 9,838,930 Accounts receivable - 3,095 1,462,651 - 9,840 5,005,000 Prepaid expenses - - - - - 15,000 Loans receivable - - - 26,588 - 4,689,850 Note receivable Action Target - - - 886,270 - 886,270 Investment in land - - - - - 1,350,164
Total Assets 696,749 550,513 6,315,855 915,117 150,686 27,309,507
Liabilities & Fund Balance Liabilities: Accounts payable $ - $ 1,705 $ 791,155 $ - $ - $ 1,138,558 Customer deposits - - - - - 14,756 Deferred revenue - - 76,894 912,858 - 5,663,453 Unearned revenue - - - - - 2,859,622 Accrued liabilities - - - - - 53,722 Due to other funds - - - - - 1,568,460 Total Liabilities - 1,705 868,049 912,858 - 11,298,571
Fund Balance Nonspendable - - - - - 15,000 Assigned - - - - - 267,055 Unassigned 696,749 548,808 5,447,806 2,259 150,686 15,728,881 Total Fund Balance 696,749 548,808 5,447,806 2,259 150,686 16,010,936
Total Liabilities & Fund Balance $ 696,749 $ 550,513 $ 6,315,855 $ 915,117 $ 150,686 $ 27,309,507
88 PROVO CITY CORPORATION Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds For the year ended June 30, 2012
Special Revenue
Business Commercial Development Rental Library Arts Council Winterfest Rehab Loans Rehab Revenues: Taxes $ 3,436,849 $ - $ - $ - $ - $ - Intergovernmental 38,869 - - - - - Charges for services 312,619 - - - - - Interest income 44,915 1,840 146 125 3,949 2,765 Loan principal repayments - - - - 265,632 2,327 Loan interest repayments - - - - 29,601 - Lease income ------Impact fees ------Miscellaneous 13,506 664,220 21,893 - 750 - Total revenues 3,846,758 666,060 22,039 125 299,932 5,092
Expenditures: Current: Culture and recreation 3,724,750 982,116 39,139 - - - Community revitalization - - - 70,220 193,908 158,005 Total current expenditures 3,724,750 982,116 39,139 70,220 193,908 158,005
Debt service: Interest expense ------Rent/Lease 6,270 1,712 - - - - Principal on debt ------Interest - interfund ------Service fees on debt ------Total debt service 6,270 1,712 - - - -
Capital outlay: Capital outlay 5,596 - - - - - Total expenditures 3,736,616 983,828 39,139 70,220 193,908 158,005
Excess (deficiency) of revenues over (under) expenditures 110,142 (317,768) (17,100) (70,095) 106,024 (152,913)
Other financing sources (uses): Transfers from other funds - 302,007 13,000 94,624 - - Transfers to other funds - - - - (427,317) - Proceeds from land sales ------Total other financing sources (uses) - 302,007 13,000 94,624 (427,317) -
Net change in fund balance 110,142 (15,761) (4,100) 24,529 (321,293) (152,913)
Fund balance at beginning of year 4,442,008 237,896 27,751 31,457 620,632 463,425
Fund balance at end of year $ 4,552,150 $ 222,135 $ 23,651 $ 55,986 $ 299,339 $ 310,512
89 Special Revenue
Homebuyer Special Housing Tax Assistance Purpose New C.D.B.G. Rehab Increment Revolving Grants Development Revenues: Taxes $ - $ - $ 1,719,018 $ - $ - $ - Intergovernmental 1,684,970 - - 2,000 - - Charges for services ------Interest income - 1,084 20,901 224 526 367 Loan principal repayments - - - - 388 - Loan interest repayments - - - - 63 - Lease income ------Impact fees ------Miscellaneous 2 - 46,114 - - 416,676 Total revenues 1,684,972 1,084 1,786,033 2,224 977 417,043
Expenditures: Current: Culture and recreation ------Community revitalization 1,235,629 14,688 992,766 67,983 7,500 164,495 Total current expenditures 1,235,629 14,688 992,766 67,983 7,500 164,495
Debt service: Interest expense 880,365 - 92,120 - - - Rent/Lease 24,345 - - - - - Principal on debt - - 95,000 - - - Interest - interfund - - - - - 36,300 Service fees on debt - - 2,500 - - - Total debt service 904,710 - 189,620 - - 36,300
Capital outlay: Capital outlay - - 181,304 - - - Total expenditures 2,140,339 14,688 1,363,690 67,983 7,500 200,795
Excess (deficiency) of revenues over (under) expenditures (455,367) (13,604) 422,343 (65,759) (6,523) 216,248
Other financing sources (uses): Transfers from other funds 457,317 100,000 - - - 300,000 Transfers to other funds - (74,624) - - - - Proceeds from land sales ------Total other financing sources (uses) 457,317 25,376 - - - 300,000
Net change in fund balance 1,950 11,772 422,343 (65,759) (6,523) 516,248
Fund balance at beginning of year 8,438 156,204 2,725,769 67,983 87,556 (349,000)
Fund balance at end of year $ 10,389 $ 167,976 $ 3,148,112 $ 2,224 $ 81,033 $ 167,248
90 Special Revenue Capital Projects
Economic/ Homeless Bolders Community Engineering C.N.R.C.C. Prevention Grant Investment General CIP CIP Revenues: Taxes $ - $ - $ - $ - $ - $ - Intergovernmental - 348,763 173,452 - - 2,206,189 Charges for services 67,807 - - - 131,048 3,740 Interest income 1,380 - - 790 4,705 35,818 Loan principal repayments ------Loan interest repayments ------Lease income ------Impact fees - - - - - 219,328 Miscellaneous - - - 335,614 - 539,082 Total revenues 69,187 348,763 173,452 336,404 135,753 3,004,157
Expenditures: Current: Culture and recreation ------Community revitalization - 348,493 162,823 - - - Total current expenditures - 348,493 162,823 - - -
Debt service: Interest expense ------Rent/Lease - - 10,630 - - - Principal on debt ------Interest - interfund ------Service fees on debt ------Total debt service - - 10,630 - - -
Capital outlay: Capital outlay - - - - 333,380 4,522,085 Total expenditures - 348,493 173,452 - 333,380 4,522,085
Excess (deficiency) of revenues over (under) expenditures 69,187 270 - 336,404 (197,627) (1,517,928)
Other financing sources (uses): Transfers from other funds - - - 310,382 314,980 2,689,752 Transfers to other funds (150,000) - - (371,983) (310,000) - Proceeds from land sales - - - 421,653 - - Total other financing sources (uses) (150,000) - - 360,052 4,980 2,689,752
Net change in fund balance (80,812) 270 - 696,456 (192,648) 1,171,824
Fund balance at beginning of year 204,416 - - 293 741,456 4,275,982
Fund balance at end of year $ 123,604 $ 270 $ - $ 696,749 $ 548,808 $ 5,447,806
91 Capital Projects Total Other Mountain Economic Governmental Vista Development Funds Revenues: Taxes $ - $ - $ 5,155,866 Intergovernmental - - 4,454,243 Charges for services - - 515,214 Interest income 412 1,061 121,008 Loan principal repayments - - 268,347 Loan interest repayments - - 29,664 Lease income - 33,360 33,360 Impact fees - - 219,328 Miscellaneous 2,797 1,000 2,041,654 Total revenues 3,209 35,421 12,838,684
Expenditures: Current: Culture and recreation - - 4,746,005 Community revitalization - - 3,416,510 Total current expenditures - - 8,162,515
Debt service: Interest expense - - 972,485 Rent/Lease - 11,313 54,270 Principal on debt - - 95,000 Interest - interfund - - 36,300 Service fees on debt 1,000 - 3,500 Total debt service 1,000 11,313 1,161,555
Capital outlay: Capital outlay - 84,217 5,126,582 Total expenditures 1,000 95,530 14,450,652
Excess (deficiency) of revenues over (under) expenditures 2,209 (60,109) (1,611,968)
Other financing sources (uses): Transfers from other funds - - 4,582,062 Transfers to other funds (711,000) - (2,044,924) Proceeds from land sales - - 421,653 Total other financing sources (uses) (711,000) - 2,958,791
Net change in fund balance (708,791) (60,109) 1,346,825
Fund balance at beginning of year 711,050 210,795 14,664,111
Fund balance at end of year $ 2,259 $ 150,686 $ 16,010,936
92 PROVO CITY CORPORATION Library Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Property taxes $ 3,196,550 $ 3,038,831 $ 157,719 Vehicle taxes 240,298 365,000 (124,702) Federal grant 5,938 - 5,938 State grant 32,932 26,142 6,790 Charge for services 312,619 295,000 17,619 Interest income 44,915 20,000 24,915 Miscellaneous 13,507 - 13,507 Total revenues 3,846,759 3,744,973 101,786
Expenditures: Current: Salaries and wages 1,663,991 1,701,611 37,620 Employee benefits 616,165 632,115 15,950 Operating expenses 1,444,594 1,447,791 3,197 Total current expenditures 3,724,750 3,781,517 56,767
Debt service: Rent/Lease 6,271 6,500 229 Total debt service 6,271 6,500 229
Capital outlay: Capital outlay 5,596 69,596 64,000 Total expenditures 3,736,617 3,857,613 120,996
Excess (deficiency) of revenues over (under) expenditures 110,142 (112,640) 222,782
Net change in fund balance 110,142 $ (112,640) $ 222,782
Fund balance at beginning of year 4,442,008
Fund balance at end of year $ 4,552,150
93 PROVO CITY CORPORATION Arts Council Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 1,840 $ 2,500 $ (660) Miscellaneous 664,219 549,815 114,404 Total revenues 666,059 552,315 113,744
Expenditures: Current: Salaries and wages 384,693 377,862 ( 6,831) Employee benefits 131,361 138,193 6,832 Operating expenses 466,062 470,127 4,065 Total current expenditures 982,116 986,182 4,066
Debt service: Rent/Lease 1,712 1,500 ( 212) Total debt service 1,712 1,500 ( 212)
Total expenditures 983,828 987,682 3,854
Excess (deficiency) of revenues over (under) expenditures ( 317,769) ( 435,367) 117,598
Other financing sources (uses): Transfer from general fund 302,007 313,919 ( 11,912) Total other financing sources (uses): 302,007 313,919 ( 11,912)
Net change in fund balance ( 15,761) $ (121,448) $ 105,686
Fund balance at beginning of year 237,896
Fund balance at end of year $ 222,135
94 PROVO CITY CORPORATION Winterfest Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 146 $ - $ 146 Miscellaneous 21,893 25,000 (3,107) Total revenues 22,039 25,000 (2,961)
Expenditures: Current: Operating expenses 39,139 39,170 31 Total current expenditures 39,139 39,170 31
Total expenditures 39,139 39,170 31
Excess (deficiency) of revenues over (under) expenditures (17,100) (14,170) (2,930)
Other financing sources (uses): Transfer from general fund 13,000 13,000 - Total other financing sources (uses): 13,000 13,000 -
Net change in fund balance (4,100) $ (1,170) $ (2,930)
Fund balance at beginning of year 27,751
Fund balance at end of year $ 23,651
95 PROVO CITY CORPORATION Commercial Rehab Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 125 $ 500 $ (375) Total revenues 125 500 (375)
Expenditures: Current: Salaries and wages 11,316 11,316 - Operating expenses 58,904 58,904 - Total current expenditures 70,220 70,220 -
Total expenditures 70,220 70,220 -
Excess (deficiency) of revenues over (under) expenditures (70,095) (69,720) (375)
Other financing sources (uses): Transfer from Business Development Loans 80,000 - 80,000 Transfer from housing rehab 14,624 14,624 - Total other financing sources (uses): 94,624 14,624 80,000
Net change in fund balance 24,529 $ (55,096) $ 79,625
Fund balance at beginning of year 31,457
Fund balance at end of year $ 55,986
96 PROVO CITY CORPORATION Business Dev. Corp. of Provo Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 3,949 $ 3,500 $ 449 Principal payments 265,632 156,000 109,632 Interest payments 29,601 27,565 2,036 Miscellaneous 750 - 750 Total revenues 299,932 187,065 112,867
Expenditures: Current: Salaries and wages 82,659 82,659 - Operating expenses 111,249 111,249 - Total current expenditures 193,908 193,908 -
Total expenditures 193,908 193,908 -
Excess (deficiency) of revenues over (under) expenditures 106,024 (6,843) 112,867
Other financing sources (uses): Transfer to commercial rehab (80,000) (80,000) - Transfer to CDBG (347,317) (347,317) - Total other financing sources (uses): (427,317) (427,317) -
Net change in fund balance ( 321,293) $ (434,160) $ 112,867
Fund balance at beginning of year 620,632
Fund balance at end of year $ 299,339
97 PROVO CITY CORPORATION Rental Rehab Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 2,765 $ 5,000 $ (2,235) Principal payments 2,327 - 2,327 Total revenues 5,092 5,000 92
Expenditures: Current: Operating expenses 158,005 179,640 21,635 Total current expenditures 158,005 179,640 21,635
Total expenditures 158,005 179,640 21,635
Excess (deficiency) of revenues over (under) expenditures (152,913) (174,640) 21,727
Other financing sources (uses): Transfer to CDBG - (20,000) 20,000 Total other financing sources (uses): - (20,000) 20,000
Net change in fund balance ( 152,913) $ (194,640) $ 41,727
Fund balance at beginning of year 463,425
Fund balance at end of year $ 310,512
98 PROVO CITY CORPORATION C.D.B.G. Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Federal grant $ 1,684,969 $ 1,541,856 $ 143,113 Miscellaneous 2 114,376 (114,374) Total revenues 1,684,971 1,656,232 28,739
Expenditures: Current: Salaries and wages 146,836 441,917 295,081 Employee benefits 218,204 218,161 (43) Operating expenses 870,589 1,800,699 930,110 Total current expenditures 1,235,629 2,460,777 1,225,148
Debt service: Rent/Lease 24,345 25,000 655 Interest on debt 374,378 - (374,378) Interest on debt 108 loan 505,987 - (505,987) Total debt service 904,710 25,000 (879,710)
Total expenditures 2,140,339 2,485,777 345,438
Excess (deficiency) of revenues over (under) expenditures (455,368) (829,545) 374,177
Other financing sources (uses): Transfer from Small Business 347,317 317,118 30,199 Transfer from Rental Rehab - 20,000 (20,000) Transfer from housing rehab 60,000 60,000 - Transfer from CNRCC 50,000 50,000 - Transfer from Housing Const - 107,000 (107,000) Total other financing sources (uses): 457,317 554,118 (96,801)
Net change in fund balance 1,950 $ (275,427) $ 277,376
Fund balance at beginning of year 8,438
Fund balance at end of year $ 10,388
99 PROVO CITY CORPORATION Tax Increment Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Property taxes $ 1,719,018 $ 1,384,000 $ 335,018 Interest income 20,901 20,000 901 Principal payments - 5,500 (5,500) Interest payments - 250 (250) Miscellaneous 46,114 250 45,864 Total revenues 1,786,033 1,410,000 376,033
Expenditures: Current: Salaries and wages 66,573 66,573 - Operating expenses 926,193 928,448 2,255 Total current expenditures 992,766 995,021 2,255
Debt service: Principal on debt 95,000 95,000 - Interest on debt 92,120 92,365 245 Service fees on debt 2,500 - (2,500) Total debt service 189,620 187,365 (2,255)
Capital outlay: Capital outlay 181,304 181,304 - Total expenditures 1,363,690 1,363,690 -
Excess (deficiency) of revenues over (under) expenditures 422,343 46,310 376,033
Net change in fund balance 422,343 $ 46,310 $ 376,033
Fund balance at beginning of year 2,725,769
Fund balance at end of year $ 3,148,112
100 PROVO CITY CORPORATION Housing Rehabilitation Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 1,083 $ 5,000 $ (3,917) Principal payments - 21,976 (21,976) Total revenues 1,083 26,976 (25,893)
Expenditures: Current: Operating expenses 14,688 22,691 8,003 Total current expenditures 14,688 22,691 8,003
Total expenditures 14,688 22,691 8,003
Excess (deficiency) of revenues over (under) expenditures (13,605) 4,285 (17,890)
Other financing sources (uses): Transfer from CNRCC 100,000 100,000 - Transfer to commercial rehab (14,624) (14,624) - Transfer to CDBG (60,000) (60,000) - Total other financing sources (uses): 25,376 25,376 -
Net change in fund balance 11,772 $ 29,661 $ (17,890)
Fund balance at beginning of year 156,204
Fund balance at end of year $ 167,976
101 PROVO CITY CORPORATION Mountain Vista Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 412 $ - $ 412 Miscellaneous 2,797 - 2,797 Total revenues 3,209 - 3,209
Expenditures: Debt service: Service fees on debt 1,000 1,000 - Total debt service 1,000 1,000 -
Total expenditures 1,000 1,000 -
Excess (deficiency) of revenues over (under) expenditures 2,209 (1,000) 3,209
Other financing sources (uses): Transfer to general fund (100,000) (100,000) - Transfer to eng. cip (611,000) (611,000) - Total other financing sources (uses): (711,000) (711,000) -
Net change in fund balance ( 708,791) $ (712,000) $ 3,209
Fund balance at beginning of year 711,050
Fund balance at end of year $ 2,259
102 PROVO CITY CORPORATION CNRCC Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Charge for services $ 67,807 $ 143,409 $ (75,602) Interest income 1,380 - 1,380 Total revenues 69,187 143,409 (74,222)
Expenditures: Current: Salaries and wages - 2,052 2,052 Total current expenditures - 2,052 2,052
Total expenditures - 2,052 2,052
Excess (deficiency) of revenues over (under) expenditures 69,187 141,357 (72,170)
Other financing sources (uses): Transfer to CDBG (50,000) (50,000) - Transfer to housing rehab (100,000) (100,000) - Total other financing sources (uses): (150,000) (150,000) -
Net change in fund balance ( 80,812) $ (8,643) $ (72,170)
Fund balance at beginning of year 204,416
Fund balance at end of year $ 123,604
103 PROVO CITY CORPORATION New Development Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 367 $ 10,000 $ (9,633) Miscellaneous 416,676 370,000 46,676 Total revenues 417,043 380,000 37,043
Expenditures: Current: Operating expenses 164,495 164,495 - Total current expenditures 164,495 164,495 -
Debt service: Interest - interfund 36,300 36,300 - Total debt service 36,300 36,300 -
Total expenditures 200,795 200,795 -
Excess (deficiency) of revenues over (under) expenditures 216,248 179,205 37,043
Other financing sources (uses): Transfer from Econ/Comm Invest 300,000 300,000 - Total other financing sources (uses): 300,000 300,000 -
Net change in fund balance 516,248 $ 479,205 $ 37,043
Fund balance at beginning of year ( 349,000)
Fund balance at end of year $ 167,248
104 PROVO CITY CORPORATION Homebuyer Assistance Revolving Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Federal grant $ 2,000 $ - $ 2,000 Interest income 224 - 224 Principal payments - 38,060 (38,060) Total revenues 2,224 38,060 (35,836)
Expenditures: Current: Operating expenses 67,983 67,983 - Total current expenditures 67,983 67,983 -
Total expenditures 67,983 67,983 -
Excess (deficiency) of revenues over (under) expenditures (65,759) (29,923) (35,836)
Net change in fund balance ( 65,759) $ (29,923) $ (35,836)
Fund balance at beginning of year 67,983
Fund balance at end of year $ 2,224
105 PROVO CITY CORPORATION Special Purpose Grants Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 527 $ - $ 527 Principal payments 388 - 388 Interest payments 63 - 63 Total revenues 978 - 978
Expenditures: Current: Operating expenses 7,500 7,500 - Total current expenditures 7,500 7,500 -
Total expenditures 7,500 7,500 -
Excess (deficiency) of revenues over (under) expenditures (6,522) (7,500) 978
Net change in fund balance ( 6,523) $ (7,500) $ 978
Fund balance at beginning of year 87,556
Fund balance at end of year $ 81,033
106 PROVO CITY CORPORATION Homeless Prevention Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Federal grant $ 348,763 $ - $ 348,763 Total revenues 348,763 - 348,763
Expenditures: Current: Operating expenses 348,493 348,493 - Total current expenditures 348,493 348,493 -
Total expenditures 348,493 348,493 -
Excess (deficiency) of revenues over (under) expenditures 270 (348,493) 348,763
Net change in fund balance 270 $ (348,493) $ 348,763
Fund balance at beginning of year -
Fund balance at end of year $ 270
107 PROVO CITY CORPORATION Boulder's Grant Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Federal grant $ 173,452 $ - $ 173,452 Total revenues 173,452 - 173,452
Expenditures: Current: Operating expenses 162,823 172,542 9,719 Total current expenditures 162,823 172,542 9,719
Debt service: Rent/Lease 10,629 909 (9,720) Total debt service 10,629 909 (9,720)
Total expenditures 173,451 173,451 (1)
Excess (deficiency) of revenues over (under) expenditures - ( 173,451) 173,451
Net change in fund balance - $ (173,451) $ 173,451
Fund balance at beginning of year -
Fund balance at end of year $ -
108 PROVO CITY CORPORATION Debt Service Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Property taxes $ 4,297,947 $ 4,158,855 $ 139,092 Vehicle taxes 314,642 266,109 48,533 Interest income 19,359 1,750 17,609 Miscellaneous 33 - 33 Total revenues 4,631,981 4,426,714 205,267
Expenditures: Current: Operating expenses 1,419 600 (819) Total current expenditures 1,419 600 (819)
Debt service: Principal on debt 2,693,978 2,693,979 1 Interest on debt 1,390,322 1,390,322 - Interest - interfund 83,755 104,500 20,745 Service fees on debt 4,114 - (4,114) Total debt service 4,172,169 4,188,801 16,632
Total expenditures 4,173,588 4,189,401 15,813
Excess (deficiency) of revenues over (under) expenditures 458,393 237,313 221,080
Other financing sources (uses): Transfer from general fund 75,241 75,241 - Transfer to airport cip (312,554) (312,554) - Total other financing sources (uses): (237,313) (237,313) -
Net change in fund balance 221,080 $ - $ 221,080
Fund balance at beginning of year 128,815
Fund balance at end of year $ 349,895
109 PROVO CITY CORPORATION Engineering CIP Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Federal grant $ 2,206,189 $ 2,000,000 $ 206,189 State grant - 2,400,000 (2,400,000) Impact fees 219,328 200,000 19,328 Charge for services 3,740 - 3,740 Interest income 35,818 45,000 (9,182) Miscellaneous 539,082 333,000 206,082 Total revenues 3,004,157 4,978,000 (1,973,843)
Expenditures: Current: Salaries and wages 10,566 - (10,566) Employee benefits 3,626 - (3,626) Operating expenses 4,507,893 4,522,325 14,432 Total current expenditures 4,522,085 4,522,325 240
Total expenditures 4,522,085 4,522,325 240
Excess (deficiency) of revenues over (under) expenditures (1,517,928) 455,675 (1,973,603)
Other financing sources (uses): Transfer from general fund 1,164,000 1,164,000 - Transfer from Ironton 611,000 611,000 - Transfer from b&c road 914,752 914,752 - Total other financing sources (uses): 2,689,752 2,689,752 -
Net change in fund balance 1,171,824 $ 3,145,427 $ (1,973,603)
Fund balance at beginning of year 4,275,982
Fund balance at end of year $ 5,447,806
110 PROVO CITY CORPORATION Parks & Recreation CIP Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: State grant $ 64,781 $ - $ 64,781 Impact fees 465,258 250,000 215,258 Charge for services 94,048 60,000 34,048 Interest income 8,311 - 8,311 Recreation Bond interest 247,012 - 247,012 Miscellaneous 5,035 - 5,035 Total revenues 884,445 310,000 574,445
Expenditures: Current: Operating expenses 1,211,800 1,213,538 1,738 Total current expenditures 1,211,800 1,213,538 1,738
Debt service: Rent/Lease 1,738 - (1,738) Total debt service 1,738 - (1,738)
Capital outlay: Capital outlay 16,822,268 16,822,268 - Total expenditures 18,035,806 18,035,806 -
Excess (deficiency) of revenues over (under) expenditures (17,151,361) (17,725,806) 574,445
Other financing sources (uses): Transfer from general fund 335,000 260,000 75,000 Transfer from cem cip 310,000 310,000 - Transfer from wastewater cip 60,000 60,000 - Total other financing sources (uses): 705,000 630,000 74,761
Net change in fund balance ( 16,446,361) $ (17,095,806) $ 649,206
Fund balance at beginning of year 40,389,091
Fund balance at end of year $ 23,942,730
111 PROVO CITY CORPORATION Economic/Community Investment Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 790 $ - $ 790 Miscellaneous 335,614 - 335,614 Total revenues 336,404 - 336,404
Expenditures:
Excess (deficiency) of revenues over (under) expenditures 336,404 - 336,404
Other financing sources (uses): Transfer from general fund 310,382 310,382 - Transfer to general fund (71,983) (71,983) - Transfer to new development (300,000) (300,000) - Proceeds from land sales 421,653 - 421,653 Total other financing sources (uses): 360,052 (61,601) 421,653
Net change in fund balance 696,456 $ (61,601) $ 758,057
Fund balance at beginning of year 293
Fund balance at end of year $ 696,749
112 PROVO CITY CORPORATION Economic Development Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Interest income $ 1,061 $ - $ 1,061 Lease income 33,360 - 33,360 Miscellaneous 1,000 - 1,000 Total revenues 35,421 - 35,421
Expenditures: Current: Operating expenses 84,217 10,644 (73,573) Total current expenditures 84,217 10,644 (73,573)
Debt service: Rent/Lease 11,313 84,886 73,573 Total debt service 11,313 84,886 73,573
Total expenditures 95,530 95,530 -
Excess (deficiency) of revenues over (under) expenditures (60,109) (95,530) 35,421
Net change in fund balance ( 60,109) $ (95,530) $ 35,421
Fund balance at beginning of year 210,795
Fund balance at end of year $ 150,686
113 PROVO CITY CORPORATION General CIP Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget & Actual For the year ended June 30, 2012
Actual Budget Variance Revenues: Charge for services $ 131,047 $ - $ 131,047 Interest income 4,705 - 4,705 Total revenues 135,752 - 135,752
Expenditures: Current: Operating expenses 318,322 335,943 17,621 Total current expenditures 318,322 335,943 17,621
Capital outlay: Capital outlay 15,058 - (15,058) Total expenditures 333,380 335,943 2,563
Excess (deficiency) of revenues over (under) expenditures (197,628) (335,943) 138,315
Other financing sources (uses): Transfer from general fund 314,980 264,101 50,879 Transfer out - P&R cip (310,000) (310,000) - Total other financing sources (uses): 4,980 (45,899) 50,879
Net change in fund balance ( 192,648) $ (381,842) $ 189,194
Fund balance at beginning of year 741,456
Fund balance at end of year $ 548,808
114 PROVO CITY CORPORATION Combining Balance Sheet Internal Service Funds As of June 30, 2012 Total Internal Customer Employee Insurance/ Vehicle Computer Capital Facility Service Service Benefits Claims Management Lease Resource Services Funds Assets Current Assets: Cash$ - $ 2,201,858 $ 2,251,366 $ 2,805,577 $ 275,900 $ - $ 219,966 $ 7,754,667 Accounts receivable - - - 1,656 - - - 1,656 Inventory - - - 103,186 - - 41,377 144,564 Prepaid expense - - 6,100 - - - 6,100 Total Current Assets - 2,201,858 2,257,466 2,910,419 275,900 - 261,343 7,906,987 Capital Assets Depreciable assets 182,318 - - 7,617,249 - - 143,766 7,943,333 Net Capital Assets 182,318 - - 7,617,249 - - 143,766 7,943,333 Other Assets: Due from other funds - - - 689,945 - 3,222,144 - 3,912,089 Total Other Assets - - - 689,945 - 3,222,144 - 3,912,089
Total Assets $ 182,318 $ 2,201,858 $ 2,257,466 $ 11,217,613 $ 275,900 $ 3,222,144 $ 405,109 $ 19,762,409
Liabilities & Net Assets Liabilities: Current Liabilities Accounts payable $ - $ 7,844 $ 15,077 $ 174,651 $ 43,047 $ - $ 19,240 $ 259,863 Accrued liabilities - 1,370,982 298,450 8,961 - - 6,603 1,684,997 Accrued interest payable - - - 50,053 - - - 50,053 Due within one year: Bonds, leases and loans payable - - - 309,558 - 131,798 - 441,356 Current Portion Acc Comp Abs - - - 5,604 - - 2,321 7,925 Total Current Liabilities - 1,378,826 313,527 548,827 43,047 131,798 28,164 2,444,194 Noncurrent Liabilities Due to other funds - - - - - 2,763,672 - 2,763,672 Accrued compensated absences - - - 106,474 - - 44,106 150,579 Net OPEB payable - - - 15,938 - - 15,938 31,876 Notes payable - - - - - 326,674 - 326,674 Lease payable - - - 1,006,484 - - - 1,006,484 Total Noncurrent Liabilities - - - 1,128,896 - 3,090,346 60,044 4,279,285
Total Liabilities - 1,378,826 313,527 1,677,723 43,047 3,222,144 88,208 6,723,479 Net Assets Invested in capital assets net of related debt 182,318 - - 6,301,207 - (458,472) 143,766 6,168,819 Unrestricted - 823,032 1,943,939 3,238,683 232,853 458,472 173,135 6,870,113 Total Net Assets 182,318 823,032 1,943,939 9,539,890 232,853 - 316,901 13,038,931
Total Liabilities & Net Assets $ 182,318 $ 2,201,858 $ 2,257,466 $ 11,217,613 $ 275,900 $ 3,222,144 $ 405,109 $ 19,762,409
115 PROVO CITY CORPORATION Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the year ended June 30, 2012
Total Internal Customer Employee Insurance/ Vehicle Computer Capital Facility Service Services Benefits Claims Management Lease Resource Services Funds Operating Revenues: Charges for services $ - $ 2,033,159 $ 915,485 $ 5,145,628 $ - $ - $ 409,789 $ 8,504,061 Miscellaneous - 6,984 3,682 (580) 171,714 - 261,010 442,812 Total operating revenues - 2,040,143 919,167 5,145,048 171,714 - 670,799 8,946,873
Operating expenses: Salaries and wages - - - 387,490 - - 274,547 662,037 Employee benefits - - - 188,312 - - 158,189 346,501 Operating expenses - 2,018,303 734,575 2,116,473 387,701 188,042 274,128 5,719,221 Depreciation - - 1,856,065 - - 11,006 1,867,071 Total operating expenses - 2,018,303 734,575 4,548,340 387,701 188,042 717,870 8,594,830
Operating income (loss) - 21,840 184,592 596,708 (215,987) (188,042) (47,071) 352,043
Nonoperating revenues (expenses) Federal Grants - 4,651 - - - - - 4,651 Interest income 1 11,108 12,866 57,254 2,240 188,042 1,447 272,958 Interest on debt - (274) - (54,476) - - - (54,751) Gain (loss) on disp. of assets - - - 7,812 - - 3,020 10,832 Total nonoperating revenues (expenses) 1 15,485 12,866 10,590 2,240 188,042 4,467 233,690
Income (loss) before transfers 1 37,325 197,458 607,298 (213,747) - (42,604) 585,733
Transfers Transfers from other funds 182,317 - - 400,686 - - - 583,003 Total transfers 182,317 - - 400,686 - - - 583,003
Change in net assets 182,318 37,325 197,458 1,007,984 (213,747) - (42,604) 1,168,737
Net Assets at the beginning of year - 785,705 1,746,481 8,531,904 446,600 - 359,504 11,870,194
Net Assets at end of year $ 182,318 $ 823,030 $ 1,943,939 $ 9,539,888 $ 232,853 $ - $ 316,900 $ 13,038,931
116 PROVO CITY CORPORATION Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2012
Totals Customer Employee Insurance/ Vehicle Computer Capital Facility Internal Service Benefits Claims Management Replacement Resource Services Service Funds
Cash flows from operating activities: Receipts from customers $ - $ 2,040,143 $ 919,167 $ 5,144,574 $ 171,714 $ - $ 670,800 $ 8,946,398 Payments to suppliers - (2,169,135) (542,612) (2,092,344) (364,310) (188,042) (276,770) (5,633,213) Payments to employees - 681,851 - (575,112) - - (432,819) (326,080) Payments for claims - - (182,208) - - - - (182,208) Net cash provided (used) by operating activities - 552,859 194,347 2,477,118 (192,596) (188,042) (38,789) 2,804,897
Cash flows from noncapital financing activities: Loans due from other funds - - - 310,055 - 797,582 38,634 1,146,271 Loans due to other funds - - - (594) - (672,060) - (672,654) Federal and State Grants - 4,651 - - - - - 4,651 Transfers from other funds 182,317 - - 400,686 - - - 583,003 Net cash provided (used) by noncapital financing activities 182,317 4,651 - 710,147 - 125,522 38,634 1,061,271
Cash flows from capital and related financing activities: Payments for capital acquisitions (182,318) - - (3,164,604) - - 6,928 (3,339,994) Proceeds from sale of capital assets - - - 614,782 - - - 614,782 Principal payments on lease payable - - - (297,431) - (125,522) - (422,953) Interest paid on lease payable - (275) - (65,789) - - - (66,064) Net cash provided (used) by capital and related financing activities (182,318) (275) - (2,913,042) - (125,522) 6,928 (3,214,229)
Cash flows from investing activities: Receipts of interest 1 11,109 12,866 57,254 2,240 188,042 1,447 272,959 Net cash provided by investing activities 1 11,109 12,866 57,254 2,240 188,042 1,447 272,959
Net increase (decrease) in cash - 568,344 207,213 331,477 (190,356) - 8,220 924,898 Cash at beginning of year - 1,633,514 2,044,153 2,474,100 466,256 - 211,746 6,829,769
Cash at end of year $ - $ 2,201,858 $ 2,251,366 $ 2,805,577 $ 275,900 $ - $ 219,966 $ 7,754,667
Note: This statement is continued on the following page.
117 PROVO CITY CORPORATION Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2012
Totals Customer Employee Insurance/ Vehicle Computer Capital Facility Internal Service Benefits Claims Management Replacement Resource Services Service Funds Reconciliation of operating income (loss) to net cash provided by operating activities:
Cash flows from operating activities: Operating income (loss)$ - $21,840$ 184,592 $ 596,708 $ (215,987) $ (188,042) $ (47,071) $ 352,040 Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation - - - 1,856,065 - - 11,006 1,867,071 Changes in assets and liabilities: Decrease (increase) in accounts receivable - - - (474) - - - (474) Decrease (increase) in inventory and prepaid expenses - - - 12,589 - - (8,423) 4,166 Increase (decrease) in accounts payable - (150,835) 10,330 11,540 23,391 - 5,782 (99,792) Increase (decrease) in accrued liabilities - 681,851 (575) 2,196 - - 2,020 685,492 Increase (decrease) in accrued compensated absences - - - (1,506) - - (2,103) (3,609) Net cash provided (used) by operating activities $ - $ 552,856 $ 194,347 $ 2,477,118 $ (192,596) $ (188,042) $ (38,789) $ 2,804,898
Noncash investing, capital, and financing activities: Capital asset trade-ins at net value $ - $ - $ - $ 194,366 $ - $ - $ - $ 194,366
118
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed informa- tion as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 121
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 126
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 131
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 136
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 137
119
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120 PROVO CITY CORPORATION NET ASSETS BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Governmental activities Invested in capital assets, net of related debt $ 227,517 231,645$ $ 213,424 231,768$ 259,505$ $ 270,953 234,360$ 240,328$ 200,011$ 257,442$ Restricted 5,426 7,542 6,048 7,848 8,561 5,520 6,967 5,785 7,023 5,669 Unrestricted 37,093 38,003 42,554 53,552 48,970 51,230 90,323 85,202 123,775 82,645 Total governmental activities net assets $ 270,036 277,190$ $ 262,026 293,168$ 317,037$ $ 327,703 $ 331,650 $ 331,315 $ 330,809 $ 345,756
Business type activities Invested in capital assets, net of related debt $ 77,735 45,475$ $ 131,251 137,068$ 151,084$ $ 156,163 150,016$ 155,515$ 161,660$ 162,495$ Restricted 7,232 45,851 28,217 13,394 8,723 7,682 5,975 9,433 10,535 11,550 Unrestricted 26,383 28,702 22,130 26,918 25,674 17,767 26,369 17,251 18,132 23,769 Total business-type activities net assets $ 111,350 120,028$ $ 181,598 177,380$ 185,482$ $ 181,612 $ 182,360 $ 182,199 $ 190,327 $ 197,813
Primary government Invested in capital assets, net of related debt $ 305,252 277,120$ $ 344,675 368,836$ 410,590$ $ 427,116 384,376$ 395,843$ 361,671$ 419,936$ Restricted 12,658 53,393 34,265 21,242 17,284 13,202 12,942 15,219 17,557 17,219 Unrestricted 63,476 66,705 64,684 80,470 74,644 68,997 116,692 102,453 141,907 106,414 Total primary government net assets $ 381,386 397,218$ $ 443,624 470,548$ 502,518$ $ 509,315 $ 514,010 $ 513,515 $ 521,136 $ 543,569
121 PROVO CITY CORPORATION CHANGES IN NET ASSETS LAST NINE FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
Expenses 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental activities: General government $ 12,526,482 $ 12,812,803 $ 12,864,069 $ 13,757,896 $ 16,838,293 $ 15,822,045 $ 14,551,210 $ 17,545,606 $ 13,825,444 Public safety 19,011,921 19,656,764 20,805,782 20,807,099 22,048,973 23,139,485 21,951,681 22,667,366 22,673,016 Public services 6,212,405 6,500,531 6,236,947 5,685,642 6,230,865 7,371,275 6,811,313 6,878,502 7,019,330 Community revitalization 6,789,713 5,088,706 3,428,129 3,793,944 2,470,576 5,118,755 2,184,407 4,129,887 2,840,223 Culture and Recreation 9,629,789 9,495,980 9,954,557 9,626,041 11,049,923 12,265,530 11,840,073 11,533,298 11,463,920 Interest on long-term debt 1,372,009 1,504,963 1,437,818 1,449,204 1,353,669 2,945,656 2,748,353 2,574,376 2,757,148 Total governmental activities expenses: 55,542,319 55,059,747 54,727,302 55,119,826 59,992,299 66,662,746 60,087,037 65,329,035 60,579,081 Business-type activities: Golf course 162,663 1,085,625 1,160,726 1,171,111 1,166,414 1,172,276 982,886 983,079 1,053,754 Water 5,698,260 5,589,083 5,591,839 5,110,395 5,663,140 5,467,837 5,435,207 5,402,807 5,196,862 Sewer 4,006,742 4,217,370 4,085,814 3,820,299 3,985,857 4,191,024 3,984,906 3,907,991 3,379,405 Energy 40,488,555 41,452,688 43,113,489 43,523,179 45,436,747 45,022,457 44,635,098 48,952,619 51,274,077 Airport 977,367 1,010,936 1,133,052 2,707,682 1,911,446 2,334,763 1,745,972 1,360,835 1,498,158 Sanitation 2,708,006 2,655,833 2,601,563 2,710,049 2,995,924 3,045,662 3,048,964 3,221,859 3,560,083 Storm drain 1,237,995 1,442,114 1,545,929 1,471,205 1,909,129 1,912,020 1,847,081 1,797,059 2,024,820 Telecommunications 2,533,487 3,310,102 3,544,857 5,633,474 7,364,111 (672,292) - - 1,888,716 Total business-type activities expenses 57,813,075 60,763,751 62,777,269 66,147,394 70,432,768 62,473,747 61,680,114 65,626,249 69,875,875 Total primary government expenses $ 113,355,394 $ 115,823,498 $ 117,504,571 $ 121,267,220 $ 130,425,067 $ 129,136,493 $ 121,767,151 $ 130,955,284 $ 130,454,956
Program Revenues Governmental activities: Charges for services: General government $ 1,986,010 $ 2,456,372 $ 3,341,189 $ 4,653,914 $ 3,988,956 $ 4,652,151 $ 4,516,754 $ 5,326,761 $ 4,835,523 Public safety 2,262,018 2,433,901 2,525,574 2,492,034 1,653,576 1,411,838 1,609,902 2,148,201 1,186,789 Public services 0 75 75 150 550 70,602 34,999 99,315 179,750 Community revitalization 422,918 439,530 448,161 525,868 637,847 1,162,629 1,190,883 (162,154) 484,483 Culture and Recreation 1,278,720 1,426,352 1,495,096 1,626,404 1,604,084 1,654,694 1,711,533 1,741,247 1,699,689 Operating grants and contributions 10,020,868 9,465,500 8,649,734 8,909,223 9,255,098 8,002,795 6,827,978 8,355,345 11,801,818 Capital grants and contributions 0 4,340,299 5,724,746 9,945,922 4,027,075 7,699,771 115,823 146,504 492,655 Total governmental activites program revenues 15,970,534 20,562,029 22,184,575 28,153,515 21,167,186 24,654,480 16,007,872 17,655,219 20,680,707 Business-type activities: Charges for services: Golf Course 91,162 755,211 693,322 683,366 544,880 465,469 532,722 514,414 548,169 Water 5,747,173 5,675,243 6,523,468 6,941,876 6,289,036 6,580,030 6,323,416 7,254,338 7,924,920 Sewer 4,823,055 4,957,345 5,023,166 5,846,415 5,030,714 4,866,018 4,953,298 5,590,397 5,393,304 Energy 45,770,483 45,101,143 47,039,683 47,465,182 45,955,835 46,288,566 45,791,657 52,170,100 59,227,359 Airport 135,838 152,908 159,532 166,345 184,416 230,445 211,546 235,591 221,062 Sanitation 2,692,078 2,889,022 3,008,500 3,088,421 2,979,286 3,138,432 3,160,804 3,318,996 3,943,935 Storm drain 1,851,669 1,893,979 1,983,293 2,247,636 1,970,135 2,162,005 2,105,667 2,146,459 2,371,254 Telecommunications 111,509 770,780 1,468,940 2,921,451 2,905,955 0 0 0 571,819 Operating grants and contributions 30,286 1,987,134 2,541,995 1,987,468 576,388 1,894,690 331,499 1,542,051 1,271,091 Capital grants and contributions 1,275,584 0 1,635,990 1,531,162 474,700 448,117 289,940 481,452 0 Total business-type activities program revenue 62,528,838 64,182,765 70,077,890 72,879,322 66,911,345 66,073,772 63,700,549 73,253,798 81,472,913 Total primary government program revenues $ 78,499,372 $ 84,744,794 $ 92,262,464 $ 101,032,837 $ 88,078,531 $ 90,728,252 $ 79,708,421 $ 90,909,017 $ 102,153,620
Net (expense)/revenue Governmental activities $ (39,571,785) $ (34,497,718) $ (32,542,727) $ (26,966,311) $ (38,825,113) $ (42,008,266) $ (44,079,165) $ (47,673,816) $ (39,898,374) Business-type activities 4,715,763 3,419,014 7,300,621 6,731,928 (3,521,423) 3,600,025 2,020,435 7,627,549 11,597,038 Total primary government net expense $ (34,856,022) $ (31,078,704) $ (25,242,108) $ (20,234,383) $ (42,346,536) $ (38,408,241) $ (42,058,730) $ (40,046,267) $ (28,301,336)
122 General Revenues and Other Changes In Net Assets Governmental revenues: Property taxes $ 10,796,536 $ 11,227,354 $ 11,391,076 $ 11,644,404 $ 11,101,961 $ 11,436,660 $ 11,627,866 $ 12,164,999 $ 13,537,074 Vehicle 1,224,569 1,140,808 1,192,626 1,193,551 1,194,235 889,746 905,686 858,068 879,969 Sales taxes 12,841,581 13,635,311 15,592,149 17,495,470 17,408,839 15,121,906 13,961,851 14,287,871 15,199,015 Franchise taxes 5,931,067 6,977,177 7,703,272 7,433,141 7,622,671 7,503,038 7,401,878 7,716,189 8,435,172 Joint venture gain(loss) 316,065 0 Investment earnings 989,660 1,601,349 2,410,980 2,583,560 2,112,324 2,916,499 2,268,077 2,217,494 242,580 Gain on sale of capital assets (652,012) 0 0 0 0 0 0 0 0 Miscellaneous 9,957,282 5,532,975 6,011,346 5,264,893 4,041,968 4,219,321 762,696 4,105,425 3,579,035 Special Item Interfund loan write-off 5,357,316 0 Extraordinary Item Provision for receivable write-down (12,773,517) 0 Transfers 6,250,385 (20,909,557) 6,464,719 4,889,399 6,009,535 5,842,627 6,816,084 6,729,473 7,317,330 Total governmental activities 47,339,068 19,205,417 50,766,168 50,504,418 49,491,533 47,929,797 43,744,138 40,979,383 49,190,175 Business Activities Franchise Joint venture gain(loss) (550,846) 126,178 Investment earnings 1,054,395 1,765,451 1,921,986 2,028,434 1,437,534 626,682 253,983 54,500 1,886,348 Gain on sale of capital assets 5,802,561 0 0 0 0 0 0 Miscellaneous 3,342,475 2,937,076 3,495,879 4,230,729 4,223,547 2,620,491 4,380,829 4,062,154 6,848,997 Special Item Interfund loan write-off (5,357,316) 0 Transfers (6,250,385) 20,909,557 (6,464,719) (4,889,399) (6,009,535) (5,842,627) (6,816,084) (6,729,473) (7,317,330) Total business-type activities 3,949,046 25,612,084 (1,046,854) 1,369,764 (348,454) (2,595,454) (2,181,272) (8,520,981) 1,544,193 Total primary government 51,288,114 44,817,501 49,719,314 51,874,182 49,143,079 45,334,343 41,562,866 32,458,402 50,734,368
Change in Net Assets Governmental activities 7,767,283 (15,292,301) 18,223,441 23,538,107 10,666,420 5,921,531 (335,027) (6,694,433) 9,291,801 Business-type activities 8,664,809 29,031,098 6,253,767 8,101,692 (3,869,877) 1,004,571 (160,838) (893,432) 13,141,231 Total primary government $ 16,432,092 $ 13,738,797 $ 24,477,208 $ 31,639,799 $ 6,796,543 $ 6,926,102 $ (495,865) $ (7,587,865) $ 22,433,032
123 PROVO CITY CORPORATION Fund Balances of Governmental Funds Last Two Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands)
2011 2012
General fund Nonspendable 47$ 49$ Restricted 4,225 3,325 Assigned 640 1,757 Unassigned 8,547 7,639 Total general fund 13,459$ 12,770$
All other governmental funds Nonspendable 1,811$ 15$ Restricted 40,389 23,943 Assigned 17,797 17,322 Unassigned -1,709 0 Total all other governmental funds 58,288$ 41,280$
Note: This schedule usually covers the ten most recent fiscal years; however, since this is the information available as of the implementation year of GASB 54, governments are not required to report prior years.
124 PROVO CITY CORPORATION Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Revenues: Taxes 30,192$ 30,794$ 32,981$ 35,879$ 37,767$ 37,328$ 34,951$ 33,897$ 35,027$ 38,051$ Licenses and permits 1,180 1,011 1,434 1,484 1,725 1,032 1,080 860 1,231 1,046 Intergovernmental 9,977 10,021 9,750 8,707 8,909 9,255 8,003 6,828 8,413 11,786 Charges for services 3,230 3,407 3,390 4,257 4,948 4,035 4,536 4,713 3,632 4,695 Fine and forfeitures 1,112 889 1,028 1,056 896 1,609 2,397 2,372 2,138 1,767 Impact fees 0 0 0 737 1,652 484 547 374 1,236 685 Interest income 607 456 773 1,523 2,204 1,795 734 245 245 253 Loan principal repayments 1,024 1,406 805 1,339 1,299 1,020 2,970 1,184 1,740 1,023 Loan interest repayments 74 62 60 57 76 64 2,007 2,059 2,048 48 Lease income 722 728 720 727 729 726 735 790 743 33 Miscellaneous 3,549 8,242 6,179 6,440 5,951 4,930 4,829 4,196 5,392 4,394 Total revenues 51,667 57,016 57,120 62,207 66,157 62,279 62,789 57,518 61,845 63,781
Expenditures: Current: General government 9,905 10,426 10,718 10,957 9,546 10,100 8,259 10,169 10,690 11,275 Public safety 18,167 18,319 18,752 20,136 20,511 21,220 22,475 21,253 21,438 23,179 Public services 2,732 2,733 2,671 2,750 2,969 3,178 3,192 2,758 2,862 3,182 Culture and recreation 8,488 8,807 8,909 9,988 9,862 11,735 11,260 11,101 10,946 11,174 Community revitalization 8,104 9,818 6,381 7,932 11,133 9,500 12,132 7,456 9,138 8,011 Total current expenditures 47,397 50,104 47,431 51,764 54,021 55,733 57,318 52,737 55,074 56,821
Debt service: Interest 1,662 1,428 1,543 1,311 1,543 1,411 2,994 2,807 2,402 2,364 Rent/Lease Principal 0 99 93 211 182 214 215 211 149 123 Principal on debt 3,389 3,264 4,261 6,583 3,925 4,130 4,635 5,151 11,761 2,901 Service fees on debt 33 102 9 8 13 13 15 13 33 8 Interest - interfund 0 0 0 0 52 194 293 291 356 120 Debt cost of issuance 0 0 0 0 0 0 0 0 469 0 Total debt service 5,083 4,893 5,906 8,113 5,715 5,962 8,152 8,473 15,170 5,516
Capital outlay: Capital outlay 6,350 6,135 9,313 9,023 13,940 10,321 4,123 4,156 2,283 24,940 Total expenditures 58,830 61,131 62,650 68,901 73,676 72,016 69,593 65,366 72,527 87,277
Excess (deficiency) of revenues over (under) expenditures (7,163) (4,115) (5,530) (6,694) (7,519) (9,737) (6,804) (7,848) (10,682) (23,496)
Other financing sources (uses): Transfers from other funds 11,640 9,197 14,645 11,277 22,068 21,550 13,753 13,828 55,229 15,467 Transfers to other funds (5,243) (3,575) (8,230) (5,832) (17,899) (16,224) (11,383) (7,730) (49,038) (8,568) Note proceeds 0 0 1,208 0 0 0 0 0 Procceds of bonds 0 0 0 11,240 0 0 45,280 0 Sale of assets 5 0 0 22 (32) 370 61 51 487 650 Total other financing sources ( 6,401 5,621 7,623 16,708 4,137 5,696 2,431 6,149 51,958 7,549 ` Special item: Interfund loan write-off 0 0 0 0 0 0 0 0 5,357 0
Net change in fund balances (762) 1,506 2,093 10,014 (3,382) (4,041) (4,373) (1,699) 46,633 (15,947)
Fund balance Fund balance at beginning of year 27,274 26,512 28,018 31,140 40,815 37,433 31,186 26,814 25,114 69,998
Prior period adjustment 0 0 1,029 (338) 0 0 0 0 0 0
Fund balance at end of year 26,512$ 28,018$ 31,140$ 40,816$ 37,433$ 33,392$ 26,814$ 25,115$ 71,747$ 54,050$
Debt service to noncapital expenses ratio 10.73% 9.76% 12.45% 15.67% 10.58% 10.70% 14.22% 16.07% 27.54% 8.59% *
* FY12 Ratio uses Capital Outlay amount from Net Asset Reconciliation
125 PROVO CITY CORPORATION GENERAL GOVERNMENTAL TAX REVENUE BY SOURCE (1) Last Ten Fiscal Years (amounts expressed in thousands) (Unaudited)
FISCAL GENERAL SALES LODGING FRANCHISE TOTAL TAX YEAR PROPERTY TAX (2) TAX TAX TAX REVENUE
2003 12,049 12,356 241 5,546 30,192 2004 12,021 12,601 240 5,932 30,794 2005 12,368 13,365 270 6,978 32,981 2006 12,584 15,310 282 7,703 35,879 2007 12,838 17,149 346 7,433 37,766 2008 12,296 17,060 349 7,623 37,328 2009 12,326 14,802 320 7,503 34,951 2010 12,533 13,671 291 7,402 33,897 2011 13,023 13,996 291 7,716 35,027 2012 14,417 14,910 289 8,435 38,052
(1) Includes the General, Debt Service, and Special Revenue Funds.
(2) Includes payments in lieu of taxes.
City is entitled to receive 1% of the sales tax revenue collected by the State of Utah
126 PROVO CITY CORPORATION Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (amounts expressed in thousands) (Unaudited)
Ratio of Total TAXABLE VALUE (1) Taxable Value To Total Fiscal Real Personal Total Estimated
Year Property Property Taxable Value Direct Tax Rate Estimated Actual Value Actual Value
2003 3,266,284 325,990 3,592,274 0.002776 4,827,259 74.42% 2004 3,328,948 289,494 3,618,442 0.002873 5,012,862 72.18% 2005 3,347,750 262,725 3,610,475 0.002891 5,074,870 71.14% 2006 3,508,880 282,472 3,791,352 0.002722 5,363,238 70.69% 2007 4,353,064 339,423 4,692,487 0.002236 6,723,109 69.80% 2008 4,598,227 365,762 4,963,989 0.002122 6,884,010 72.11% 2009 4,362,813 399,604 4,762,417 0.002307 6,741,522 70.64% 2010 4,262,569 389,053 4,651,622 0.002394 6,536,411 71.16% 2011 4,176,084 389,053 4,565,137 0.002843 6,101,974 74.81% 2012 3,935,559 362,493 4,298,052 0.003032 4,143,846 103.72% (1) Source: Utah County Auditor Assessed Value & Estimated Value of Taxable Property
8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2006 2007 2008 2009 2010 2011 2012 Taxable Value Estimated Actual Value
127 PROVO CITY CORPORATION STATE OF UTAH PROPERTY TAX RATES--DIRECT AND OVERLAPPING GOVERNMENTS BASED ON $1,000 ASSESSED VALUATION Last Ten Fiscal Years (Unaudited)
City of Provo Other Taxing Entities (1)
Debt Provo Central Total Calander General Library Service School Utah UT Water Tax Year Fund Fund Fund Total District County District Rate
2002 0.001078 0.000798 0.000911 0.002787 0.006037 0.001034 0.000358 0.007429 2003 0.001077 0.000797 0.000902 0.002776 0.006071 0.001053 0.000358 0.007482 2004 0.001125 0.000832 0.000916 0.002873 0.006234 0.001065 0.000353 0.007652 2005 0.001131 0.000836 0.000924 0.002891 0.006124 0.001040 0.000400 0.007564 2006 0.001068 0.000789 0.000865 0.002722 0.006147 0.000960 0.000357 0.007464 2007 0.000882 0.000652 0.000702 0.002236 0.005239 0.008430 0.000302 0.013971 2008 0.000846 0.000626 0.000650 0.002122 0.006214 0.000809 0.000286 0.007309 2009 0.000915 0.000677 0.000715 0.002307 0.006639 0.000878 0.000400 0.007917 2010 0.000951 0.000703 0.000740 0.002394 0.006706 0.001108 0.000421 0.008235 2011 0.001032 0.000763 0.001048 0.002843 0.007153 0.001342 0.000436 0.008931 2012 0.001053 0.000779 0.0012 0.003032 0.007319 0.001324 0.000455 0.009098 (1) SOURCE: Utah County Auditor PROPERTY TAX RATES Central Ut Water General Fund District 9% 4% Library Fund Utah County 6% 11% Debt Service Fund 10%
Provo School District 61%
128 PROVO CITY CORPORATION PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago June 30, 2012 (amounts expressed thousands)
2012 2003 Taxable Percentage of Taxable Percentage of Assessed Total Taxable Assessed Total Taxable Value Assessed Value Assessed Taxpayer Rank Value Rank Value Novell $ 86,526 1 2.09% 67,000$ 1 1.87% Provo Mall LLC 48,270 2 1.16% 46,129 2 1.28% Central Utah Investment Company 36,489 3 0.88% 9,651 13 0.27% NuSkin International Inc 31,684 4 0.76% KC Gardner Riverwoods LC 29,670 5 0.72% Tropical Development LLC 22,586 6 0.55% 15,500 8 0.43% Qwest Corp 20,647 7 0.50% Questar Gas 18,941 8 0.46% Tigriswoods LLC 18,659 9 0.45% Sundance Partners LTD 18,310 10 0.44% Union Pacific Railroad Co. 18,267 11 0.44% Parkway Village Provo Holdings LLC 17,204 12 0.42% 16096 7 0.450% ESNET Riverwood Properties LLC 15,900 13 0.38% 18,500 4 0.51% HRA Branbury Park LLC 13,677 14 0.33% B H Provo 12,027 15 0.29% IHC Hospitals Inc. 11,049 16 0.27% 8,814 18 0.25% CCA-Riverside Plaza LLC 10,814 17 0.26% PMH Investors LLC 10,786 18 0.26% East Bay Center L.L. C. 10,780 19 0.26% Apple Seven SPE Provo 9,996 20 0.24% Utah Valley Specialty Hospital Inc. 9,477 21 0.23% Dillards USA Inc. 9,469 22 0.23% 9,600 14 0.27% Fig Garden/Bird Limited Partnership 9,381 23 0.23% Peak Joaquin Holdings LLC 9,350 24 0.23% Peak Provo LLC 8,950 25 0.22% 9,214 16 0.26% 1565 North LLC 8,837 26 0.21% Vintage Properties LP 8,493 27 0.20% 4,314 29 0.12% Medical Center Company LC 8,382 28 0.20% Raintree Park Limited 8,250 29 0.20% TCP-Provo LLC 8,243 30 0.20% DHI Building Limited Co 8,073 31 0.19% Riverwoods Medical Art Center LLC 7,855 32 0.19% Sams Real Estate Business Trust 7,474 33 0.18% HRA Riviera LLC 7,163 34 0.17% HD Development of Maryland Inc. 6,900 35 0.17% Sears Roebuck and Co 6,816 36 0.16% 5,500 32 0.15% Silver Lake Health Holdings LLC 6,348 37 0.15% Affordable Housing Partners x 5216 38 0.13% Hamblin, Mary June Adams 4,992 39 0.12% 6,027 28 0.17% 1425 North LLC 4986 40 0.12% Crestwood Apartments II LLC 4,664 41 0.11% Centennial Associates LLC 3,806 42 0.09% Union Square Apartments 3,768 43 0.09% Aspen Investments 8,819 17 0.25% Brandbury Park Inc. 10,490 12 0.29% Covey Corporate Campus Two LL 16,252 6 0.45% Epixtech 10,811 11 0.30% Johnson Land Enterprises LLC 7,655 20 0.21% Price Development Company 13,848 9 0.39% RT SD-Provo L.P. 8,425 19 0.23% Scrub Oak Ltd 18,408 5 0.51% Sun Properties LLC 6,796 22 0.19% Sunstone OP Properties LLC 19,115 3 53.00% Terranet Investments LC 13,174 10 0.37% Webber Family Partnership The 6,985 21 0.19%
Total assessed value for Provo $ 4,143,846 100% includes real property only does not include any government, utilities, or phone company property
129 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Calendar Years (amounts expressed in thousands) (unaudited)
Calendar Year Total Tax Collected within the Ended Levy for Calendar Year of the Levy Collections in Total Collections to Date December 31 Calendar Year Amount Percentage of Levy Subsequent Years Amount Percentage of Levy 2002 9,823 8,801 89.60% 715 9,516 96.87% 2003 9,723 8,835 90.87% 863 9,698 99.74% 2004 10,273 9,396 91.46% 897 10,293 100.19% 2005 10,289 9,559 92.91% 667 10,226 99.39% 2006 10,225 9,348 91.42% 815 10,163 99.39% 2007 10,169 9,418 92.61% 690 10,108 99.40% 2008 10,111 9,060 89.61% 791 9,851 97.43% 2009 10,617 9,383 88.38% 973 10,356 97.54% 2010 10,596 9,397 88.68% 757 10,154 95.83% 2011 11,655 10,791 92.59% 871 11,662 100.06% Source: Utah Co. Auditor
12,000
10,000
8,000 Total Tax Levy 6,000 Current YR Collection Subsequent YR Collection
4,000 THOUSANDS
2,000
0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YEAR
*In accordance with Utah State law, the tax levy includes an allowance for both the 3 year average Board of Equalization grants of petition and the 5 year average tax collection rate. These allowances cause actual collections to more closely mirror the actual levy; however, these allowances may also enable actual collections to periodically exceed actual levies
130 Provo City Corporation Ratio of Outstanding Debt by Type Last Ten Fiscal Years (amounts expressed in thousands, except per capita amount)
Governmental Activities Business-Type Activities (Provo-Orem) (Provo) General Special Total Percentage Fiscal Obligation Revenue Obligation Notes Capital Revenue Notes Capital Primary of Personal Per Year Bonds Bonds Bonds Payable Leases Bonds Payable Leases Government Income * Capital * 2003 20,325 4,005 175 1,401 2,982 51,299 0 0 80,187 0.02% 727 2004 18,490 3,605 0 4,202 2,107 80,154 0 0 108,558 0.02% 954 2005 16,545 3,180 0 6,283 1,325 77,371 0 99 104,803 0.02% 941 2006 20,355 4,830 0 6,578 2,997 74,474 0 49 109,283 0.02% 925 2007 18,360 4,345 0 5,134 2,691 70,158 0 10 100,698 0.02% 850 2008 16,245 3,795 0 3,726 2,438 65,652 0 0 91,856 0.04% 761 2009 13,995 38,740 0 3,291 2,174 25,421 0 0 83,621 0.03% 680 2010 11,650 36,690 0 2,536 1,899 24,819 0 0 77,594 0.03% 690 2011 47,990 34,550 0 1,788 1,613 20,445 0 0 106,386 N/A** 928 2012 45,450 1,785 0 458 1,746 47,043 0 0 96,482 N/A** 837
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Note: * Population data and personal income can be found in the Schedule of Demographic and Economic Statistics.
Note: ** 2011 Percapita Income from the Bureau of Economic Analysis report not available till 11-26-2012
131 Provo City Corporation Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (amounts expressed in thousands, except per capita amount)
Percentage of Estimated General Less: Amounts Actual Taxable Fiscal Obligation Available in Debt Value* of Per Year Bonds Service Fund Total Property Capita** 2003 20,325 146 20,179 0.42% 183 2004 18,490 781 17,709 0.35% 156 2005 16,545 644 15,901 0.31% 138 2006 20,355 764 19,591 0.37% 169 2007 18,360 1,212 17,148 0.26% 145 2008 16,245 934 15,311 0.22% 127 2009 13,995 239 13,756 0.20% 112 2010 11,650 99 11,551 0.18% 92 2011 47,990 129 47,861 0.78% 418 2012 45,450 350 45,100 1.09% 391
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. ** Population data can be found in the Schedule of Demographic and Economic Statistics.
132 PROVO CITY CORPATION Direct and Overlapping Governmental Activities Debt As of June 30,2012 (amounts expressed in thousands) Estimated Estimated Share of Debt Percentage Overlapping Government Unit Outstanding Applicable Debt Debt repaid with property taxes: Provo City School District 50,314$ 100% 50,314$ Utah County 1,680 100% 1,680 Subtotal overlapping debt 51,994
Direct Debt: Provo City Bonds Payable 45,450
Total direct and overlapping debt 97,444$
133 PROVO CITY CORPORATION Legal Debt Margin Information Last Ten Years (amounts expressed in thousands)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Debt limit $ 193,090 200,514$ 202,995$ 214,530$ $ 268,924 $ 275,360 $ 269,661 $ 261,456 244,079$ 165,754$
Total net debt applicable to limit 20,325 18,490 16,545 20,355 18,360 16,245 13,995 11,650 47,990 45,450
Legal debt margin 172,765 182,024 186,450 194,175 250,564 259,115 255,666 249,806 196,089 120,304
Total net debt applicable to the limit 10.53% 9.22% 8.15% 9.49% 6.83% 5.90% 5.19% 4.46% 19.66% 27.42% as a percentage of debt limit
Legal Debt Margin Calculation for Fiscal Year 2012
Estimated Market Value $ 4,143,846
Debt limit--4 percent of market value 165,754
Debt applicable to limit: 45,450 Total bonded debt (including special assessment bonds, if any)
Legal debt margin $ 120,304
134 Pledged -Revenue Coverage Last Ten Fiscal Years
Sales Tax Revenue Bonds Building Authority Lease Revenue Bonds
Fiscal Sales Tax Debt Service Lease Debt Service Year Revenue Principal Interest Coverage Revenue Principal Interest Coverage 2003 N/A N/A N/A N/A $ 659,119 $ 375,000 $ 285,560 1.00 2004 N/A N/A N/A N/A 664,206 400,000 261,185 1.00 2005$ 13,365,745 $ - $ 1,870,715 7.14 655,357 425,000 235,985 0.99 2006 15,310,399 - 1,929,677 7.93 660,423 450,000 208,998 1.00 2007 17,149,011 1,285,000 1,929,668 8.89 664,773 480,000 180,198 1.01 2008 17,059,579 1,320,000 1,897,038 8.99 663,543 510,000 149,238 1.01 2009 14,801,894 1,360,000 1,857,702 7.97 665,388 545,000 116,088 1.01 2010 13,670,813 1,405,000 1,809,966 7.55 664,703 580,000 80,390 1.01 2011 13,996,455 1,460,000 1,756,436 7.97 661,132 615,000 41,820 1.01 2012 14,910,351 1,520,000 1,696,138 8.79 0 0 0 0.00
Energy Revenue Bonds Water Revenue Bonds Less: Net Less: Net Fiscal Charges Operating Available Debt Service Charges Operating Available Debt Service Year and Other Expenses Revenue Principal Interest Coverage and Other Expenses Revenue Principal Interest Coverage 2003$ 52,567,106 $ 38,790,298 $ 13,776,808 $ 2,700,000 $ 2,096,120 2.87 N/A N/A N/A N/A N/A N/A 2004 54,397,422 35,718,131 18,679,291 2,945,000 2,154,043 3.66 N/A N/A N/A N/A N/A N/A 2005 48,526,335 36,426,911 12,099,424 2,270,000 1,647,907 3.09 $ 6,120,077 $ 4,531,847 $ 1,588,230 $ 153,000 59,199$ 7.48 2006 50,670,681 38,057,092 12,613,589 2,360,000 1,555,394 3.22 7,473,995 4,709,493 2,764,502 157,000 55,785 12.99 2007 53,824,273 39,513,644 14,310,629 2,475,000 1,436,844 3.66 8,438,996 4,879,396 3,559,600 161,000 51,647 16.74 2008 51,264,359 40,541,934 10,722,425 2,605,000 1,312,382 2.74 6,752,930 5,279,290 1,473,640 166,000 47,016 6.92 2009 50,336,668 39,589,892 10,746,776 2,730,000 1,181,394 2.75 7,298,629 5,295,784 2,002,845 171,000 41,214 9.44 2010 50,523,138 40,132,500 10,390,638 3,065,000 1,070,244 2.51 6,897,638 5,103,149 1,794,489 177,000 35,034 8.46 2011 58,364,515 50,242,202 8,122,313 3,695,000 865,134 1.78 8,168,567 5,050,237 3,118,330 184,000 28,262 14.69 2012 67,449,653 48,070,765 19,378,888 3,855,000 654,070 4.30 8,410,196 5,125,837 3,284,359 192,000 20,880 15.43
Tax Increment Revenue Bonds Storm Drain Revenue Bonds Less: Net Less: Net Fiscal Charges Operating Available Debt Service Charges Operating Available Debt Service Year and Other Expenses Revenue Principal Interest Coverage and Other Expenses Revenue Principal Interest Coverage 2003 N/A N/A N/A N/A N/A N/A $ 2,569,982 $ 909,645 $ 1,660,337 $ 315,000 381,170$ 2.38 2004 N/A N/A N/A N/A N/A N/A 1,906,598 926,780 979,818 345,000 368,570 1.37 2005 N/A N/A N/A N/A N/A N/A 1,991,103 1,066,640 924,463 360,000 354,770 1.29 2006 N/A N/A N/A N/A N/A N/A 2,109,679 1,120,640 989,039 380,000 340,370 1.37 2007 $ 193,863 $ - $ 193,863 $ 5,000 $ 138,058 1.36 2,706,042 1,046,071 1,659,971 395,000 324,790 2.31 2008 170,276 - 170,276 40,000 102,655 1.19 2,360,062 1,198,098 1,161,964 415,000 308,398 1.61 2009 64,045 - 64,045 45,000 100,695 0.44 2,240,690 1,143,578 1,097,112 435,000 290,760 1.51 2010 155,310 - 155,310 65,000 98,490 0.95 3,957,170 1,117,112 2,840,058 450,000 272,273 3.93 2011 196,504 - 196,504 65,000 95,305 1.23 2,516,830 1,085,869 1,430,961 495,000 302,196 1.79 2012 210,409 - 210,409 95,000 92,120 1.12 3,088,692 1,289,705 1,798,987 505,000 293,139 2.25 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
135 PROVO CITY CORPORATION DEMOGRAPHIC AND ECONOMIC STATISTICS LAST 10 FISCAL YEARS Provo-Orem (MSA) PER % (AGE 25+) Provo-Orem CAPITA WITH UTAH NUMBER FISCAL PROVO PERSONAL PERSONAL MEDIAN COLLEGE SCHOOL UNEMPLOYMENT REGISTEREDPUBLIC YEAR POPULATION INCOME INCOME AGE DEGREE ENROLLMENT RATE VOTERS SCHOOLS (millions) 2003 110,258 8,299 19,818 22.9 N/A 13,046 5.7 31,345 25 2004 113,773 8,719 19,686 22.9 N/A 13,037 5.2 42,631 25 2005 115,389 9,557 21,127 25.5 46.2 12,984 4.5 42,438 24 2006 118,184 10,669 22,187 N/A N/A 13,031 3.2 53,001 23 2007 118,448 11,701 23,720 25.9 47.9 13,117 2.7 39,575 19 2008 120,723 12,035 39,582 25.1 46.7 12,998 3.2 35,555 21 2009 123,040 12,684 22,832 25.2 47.4 13,242 5.7 42,914 22 2010 112,488 13,393 22,256 24.5 47.2 14,679 7.2 59,513 22 2011 114,625 N/A** N/A** 28.1 56.3 14,750 7.6 61,977 22 2012 115,321 N/A** N/A** N/A** N/A** 15,322 5.4 40,211 N/A**
DATA SOURCES Provo School District EDCUtah provo/orem MSA Demographic Report Bureau of Economic Analysis economic report 2005 U.S. Census Update Utah Dept. Workforce Services Population restated for 2010 according to 2010 census * Accelerated estimate **Information not available till next year
136 PROVO CITY CORPORATION PRINCIPAL EMPLOYERS Current Year and Nine Years Ago June 30, 2012 (Unaudited)
2012 2003
Full Time EMPLOYER Employees Employees
Ancestry.com 540 Brigham Young University 2611 14,500 Business Computing Services 600 Central Utah Clinic, P.C. 400 Dhi Computing Services, Inc 225 Dynix Corporation 200 East Lake Care Center LLC 200 Heritage Schools Foundation Inc. 325 Home Depot U.S.A., Inc. 200 Intermountain Health Care 524 3,650 Marketing Ally 700 Morinda 620 400 Novell 2622 1,900 NuSkin International 900 NuSkin Enterprises Inc. 750 1,100 NuSkin Enterprises United States Inc. 650 PMG Mentors 213 Provo School District 450 1,900 Provo City 463 620 RBM Services, Inc. 400 Sam's West Inc. 200 UHS of Provo Canyon , Inc. 200 Utah County 236 920 Utah Dept. of Human Services 700 Utah State Hospital 730 Utah State Office Building 500 Zions Hospitality Management Services 300
Source: EDCUTAH Sept 2012 Largest Employers *EDCUTAH is currently reporting employers
137 PROVO CITY CORPORATION Full Time City Government Employees by Function Equivalents Last Ten Fiscal Years Full-time Equivalent Employees as of June 30, 2012
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Function
General Government 102 109 107 105 105 124 120 112 106 107
Public Safety Fire 83 80 80 80 80 80 80 77 78 84 Police 175 172 168 170 174 175 176 171 157 161 Emergency Response 5 5 5 5 5 6 6 8 9 9
Public Services Street Maintenance 18 18 18 18 18 18 18 17 16 16 Engineering 16 15 14 14 15 15 15 13 12 14
Culture and Recreation 159 157 163 156 160 182 188 185 173 178
Water 33 33 33 33 33 33 34 34 32 32 Wastewater 28 28 28 28 28 28 28 28 27 28 Energy 101 97 102 101 102 102 103 100 83 87 Telecom 9 9 22 25 16 19 0 0 0 0 Airport 2 2 2 2 2 2 2 2 2 3 Sanitation 17 18 14 14 14 14 15 16 16 16 Golf Course 0 0 0 8 8 8 8 8 8 8 Employee Benefits 0 0 0 0 0 0 0 0 0 Vehicle Maintenance 11 11 11 11 11 11 11 11 7 8 Facilties 12 12 12 12 12 12 12 9 7 7 771 766 779 782 783 829 816 791 733 758
138 PROVO CITY CORPORATION OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS
Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Function Police (Calendar Year) Adult Arrest 2,991 2,249 2,222 2,217 2,289 2,285 2,270 2,286 1,912 N/A DUI violations 299 263 334 372 372 397 314 342 214 N/A Juvenile Arrests 402 370 732 868 903 727 710 645 489 N/A Parking violations 14,792 16,521 19,654 16,118 15,483 17,748 16,764 19,742 7,505 N/A Traffic violations 41,287 24,884 22,502 17,181 16,477 21,623 19,848 16,534 14,471 N/A Fire (Calendar Year) Number of ambulance calls N/A 4,027 4,538 4662 4,640 8,880 4,361 4,058 5843 N/A Number of FIRE/EMS combined N/A 8,497 9,956 10316 10,552 10,254 9,941 9,368 10129 N/A Inspections 290 1,102 1,152 1200 1,300 NA 994 560 571 N/A Highways and streets General Road Repair (tons of asphalt used) 800 6,580 3,062 14,269* 40,400 23,000 23,070 13,051 4,023 2,588 Potholes repaired (tons of asphalt used) 100 100 75 58 80 400 400 40 40 70 Sidewalks replaced (linear feet) N/A N/A 1,800 13,474* 8,529 7,381 11,533 11,755 12,800 350 Sanitation Refuse collected (tons/yr) 23,700 23,700 22,200 21,987 22,530 20,572 22,010 21,598 21,212 20,288 Recyclables collected (tons/yr) N/A N/A 60 768 883 1,002 1,084 1,142 1,305 2,021 Culture and recreation Youth sports program participants N/A N/A 6,518 5,976 6,115 6,210 52,719* 46,672 44,232 47,783 Adult sports program participants N/A N/A 5,872 6,701 6,689 7,388 68,574* 72,440 67,980 60,351 Aquatics program participants N/A N/A 49,865 107,991 119,321 101,915 106,422 120,047 110,033 115,405 Recreation Centers participants(non aquatics) N/A N/A N/A N/A 21,287 28,207 33,064 44,641 52,514 42,233 Senior citizen program participants N/A N/A 29,000 54,650 69,133 68,760 67,326 47,852 54,816 44,111 Community special events participants N/A N/A 55,000 73,450 41,265 45,000 34,700 31,675 32,887 35,730 Covey Center for the Arts Participants N/A N/A N/A N/A N/A 97,252 97,139 123,931 146,774 Peaks Ice Arena participants N/A N/A N/A N/A N/A 146,293 250,654 321,548 319,404 The Center N/A N/A N/A N/A N/A 49,362 46,780 52,360 41,352 Community program Participants N/A N/A N/A N/A N/A 8,685 11,793 19,386 10,375 Energy Energy Reguirements (kwh) 708,511,567 728,206,077 721,578,061 776,406,000 798,690,341 786,777,508 771,704,133 762,762,706 763,936,458 768,460,113 Water Number of Consumers (connections) 17,372 17,645 17,771 18,082 18,310 18,494 18,592 18,629 18,653 18,787 Water mains breaks 3 4 5 11 17 21 27 39 45 33 Average Daily Consumption (gallons) 25,301,723 26,591,065 23,879,740 25,986,566 25,491,983 30,054,747 25,678,849 24,457,600 23,445,989 24,867,000 Wastewater Average daily sewage treatment (gallons) 12,800,000 13,100,000 13,078,164 14,500,000 12,200,000 13,670,000 11,400,000 12,900,000 15,000,000 13,700,000
*Youth and Adult sports programs is reporting by participants rather than registrants starting year 2009
Sources: Various government departments
139 PROVO CITY CORPORATION CAPITAL ASSETS STATISTICS BY FUNCTION LAST TEN FISCAL YEARS
Fiscal Year Function 2000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Public Safety Police: Stations 1 1 1 1 1 1 1 1 1 1 1 Sub Stations 4 4 2 1 1 1 1 1 1 1 1 Patrol Units 72 72 72 72 72 74 73 69 72 72 93 Fires Stations 4 5 5 5 5 5 5 5 5 5 5 Sanitation Collection trucks 11 11 11 11 11 11 13 13 13 10 11 Highways and streets Street lane miles N/A N/A N/A 609 810 878 882 882 882 882 882 Traffic signals 80 86 86 89 89 89 90 90 90 90 90 Water Water mains (miles) 333 351 351 361 376 377 379 381 383 384 389 Fire hydrants 2,440 2,635 2,695 2,787 2,917 3,082 3,169 3,013 3,046 3,064 3,070 Sewer Sanitary sewers (miles) 267 280 280 284 292 295 297 299 300 300 302 Storm sewers (miles) 48 50 71 99 96 98 103 106 117 123 123.5 Electric Number of distribution stations 21 21 21 21 21 21 18 18 18 18 18 Miles of service lines 475 373 373 376 379 379 398 400 400 404 404 Number of consumer connections 31,317 33,066 33,486 33,811 34,227 34,580 34,997 35,216 35,237 35,281 35,248 *Culture and recreation Cemeteries 1 1 1 1 1 1 1 1 1 1 1 Cultural Arts Centers 0 1 1 1 1 1 1 1 1 1 1 Golf Course 0 0 1 1 1 1 1 1 1 1 1 Gun Range 1 1 1 1 1 1 1 1 1 1 1 Ice Arena 1111 Libraries 1 1 1 1 1 1 1 1 1 1 1 Museums 2 2 2 2 2 2 2 2 2 2 Parks 45 45 45 44 44 44 47 47 49 49 N/A Developed 37 40 40 39 39 39 42 43 45 45 N/A Developed park acreage N/A N/A N/A 361 361 361 375 376 382 382 N/A Undeveloped 8 5 5 5 5 5 5 4 4 4 N/A Recreation Centers 1 2 2 2 2 2 2 2 2 2 2 Senior Center 1 1 1 1 1 1 1 1 1 1 1 Swimming pools 2 2 2 2 2 2 2 2 2 2 2 Parks Pocket Parks 4 Pocket Parks (Acres) 1.1 Neighborhood Parks 18 Neighborhood Parks (Acres) 90.9
140 PROVO CITY CORPORATION CAPITAL ASSETS STATISTICS BY FUNCTION LAST TEN FISCAL YEARS
Fiscal Year Function 2000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Community Parks 14 Community Parks (Acres) 283.1 Regional Parks 4 Regional Parks (Acres) 167.4 Conservation Parks 5 Conservation Parks (Acres) 609.6 Greenways/Road Frontage Landscapes 8 Greenways/Road Frontage Landscapes (Acres) 68.4 Trailhead Parks 7 Trailhead Parks (Acres) 21.2 Pathways/Trails 15 Pathways/Trails(Miles) 37.2 Open Space (Acres) 553.8 Developed Areas (Acres) 802.5 Turf Acres in Developed Areas (Acres) 463.9 Undeveloped Parks 13 Undeveloped Parks (Partial) 21 Undeveloped Parks (Acres) 1,370.2 Special Use Facilities 10 Big Springs Camp (Acres) 5.0 Center Street Linear Park (Acres) 7.2 Municipal Center (Acres) 4.0 Shooting Sports Park (Acres) 50.0 Academy Square Library (Acres) 4.0 Cemetery (Acres) 49.1 Covey Center for the Arts (Acres) 1.0 East Bay Golf Course (Acres) 226.0 Provo Recreation Center (Acres) 18.5 Peaks Ice Arena (Acres) 13.6
Sources: Various city departments *A More detailed park classification approach was incorporated into the new Parks and Recreation Master Plan thus necessitating a new reporting format.
141