CITY AND COUNTY OF DENVER, COLORADO 2009 DISCLOSURE STATEMENT PUBLISHED IN ACCORDANCE WITH THE SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 For the year ended December 31, 2008 ISSUED TO FULFILL AGREEMENTS CONTAINED IN CONTINUING DISCLOSURE UNDERTAKINGS EXECUTED IN CONNECTION WITH MUNICIPAL BONDS AND OTHER OBLIGATIONS 2009 DISCLOSURE STATEMENT Table of Contents TRANSMITTAL LETTER FROM THE MANAGER OF FINANCE CITY OFFICIALS THE CITY AND COUNTY OF DENVER, COLORADO...........................................................................................1 General Information..................................................................................................................................................1 Organization .............................................................................................................................................................1 Government ..............................................................................................................................................................1 Budget Policy ...........................................................................................................................................................2 Constitutional Revenue and Spending Limitations...................................................................................................3 General Fund ............................................................................................................................................................3 Major Revenue Sources. ......................................................................................................................................3 Major Expenditure Categories. ............................................................................................................................4 Management Discussion of 2009 Budget .................................................................................................................4 Management Discussion of Recent Financial Results ..............................................................................................7 General Fund Financial Information.........................................................................................................................8 Collection of Taxes.................................................................................................................................................11 Sales and Use Taxes ...............................................................................................................................................11 Property Taxation ...................................................................................................................................................12 Assessed Valuation. ...........................................................................................................................................12 Property Taxes. ..................................................................................................................................................13 Assessed Valuation of Major Taxpayers ................................................................................................................16 DEBT STRUCTURE OF THE CITY .........................................................................................................................16 Authorization for General Obligation Debt ............................................................................................................16 General Obligation Bonded Debt............................................................................................................................17 Combined Debt Service Schedule - General Obligation Bonds .............................................................................19 Excise Tax Revenue Bonds Debt Service Coverage...............................................................................................20 Colorado Convention Center Excise Tax Revenues...........................................................................................20 Denver Performing Arts Center and Other Cultural Facilities. ..........................................................................21 Golf Enterprise Revenue Bonds..............................................................................................................................23 Usage of Courses and Multi-Year Green Fees:..................................................................................................24 Overlapping Debt and Taxing Entities ...................................................................................................................26 School District No. 1 in the City and County of Denver....................................................................................26 Metro Wastewater Reclamation District. ...........................................................................................................26 Regional Transportation District........................................................................................................................26 Denver Metropolitan Major League Football Stadium District. ........................................................................27 Urban Drainage and Flood Control District. ......................................................................................................27 Other Overlapping Taxing Entities. ...................................................................................................................27 Denver Convention Center Hotel Authority ...........................................................................................................28 Retirement Plans.....................................................................................................................................................29 City Employees. .................................................................................................................................................29 Other Post Employment Benefits.......................................................................................................................30 Fire and Police Pension Plans. ...........................................................................................................................30 Water Board Retirement Plan. ...........................................................................................................................31 LEASE PURCHASE AGREEMENTS .......................................................................................................................32 Certificated Lease Purchase Agreements................................................................................................................32 DENVER WATER BOARD.......................................................................................................................................33 Summary of 2008 ...................................................................................................................................................33 Denver Water Board - Service Area .......................................................................................................................33 Denver Water Board – Debt Structure....................................................................................................................35 Denver Water Board - Lease Purchase Agreements...............................................................................................36 Denver Water Board - System Development Charges and Participation Receipts .................................................36 WASTEWATER MANAGEMENT SYSTEM...........................................................................................................41 Wastewater Financial Information..........................................................................................................................41 Customer Information. .......................................................................................................................................41 Metro Wastewater Reclamation District. ...........................................................................................................41 Account Information. .........................................................................................................................................42 Storm Drainage Service Charge.........................................................................................................................42 Wastewater Management Division Enterprise Fund Budgets.................................................................................44 Operating History ...................................................................................................................................................44 Historical Wastewater Management Fund Information. ....................................................................................44 Historic Net Pledged Revenues ..............................................................................................................................47 Capital Improvement Plan..................................................................................................................................47 THE AIRPORT SYSTEM...........................................................................................................................................48