COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2015 Prepared by: Finance Department Tammy A. Hitchens, CPA Finance Director www.cityofwestminster.us

On the cover: The Next Urban Center on Colorado’s Front Range The City of Westminster has embarked on an ambitious journey to become the next urban center on Colorado’s Front Range, beginning with the construction of a new Downtown Westminster at the site of the former Westminster Mall. We take the long view when building a new downtown for our community. We start today, but build with an eye toward 50 years, even 100 years in the future. This is community building in the truest sense, working from a remarkable foundation of community support and pride in the site to deliver a shared vision for the future. Urban scale, urban design. Dense, vertical, mixed use residential, retail and office uses will thrive by bringing urban architecture and an exciting downtown vibe to the site. We are pairing Westminster’s unmatched views of the Front Range with our region’s newest skyline. Whether from a rooftop garden or a sidewalk café, there will be sweeping views from Longs Peak to Pike’s Peak, from Downtown Denver to our own Westminster Bell Tower. Strategically located halfway between Denver and Boulder on the thriving US 36 corridor, Westminster’s new downtown will redefine the future of suburban America. The 105-acre site at US 36 and Sheridan Boulevard connects to one of the region’s busiest bus rapid transit corridors and hundreds of miles of bikeways. In this city of 112,000 already renowned for excellence in its development, parks, open space, and high quality of life, Downtown Westminster – with a unique and vibrant mix of residential, office and commercial uses – will provide one more great reason for residents, businesses and visitors to live, work and play in Westminster.

CITY OF WESTMINSTER, COLORADO

TABLE OF CONTENTS

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INTRODUCTORY SECTION Letter of Transmittal V City Organizational Chart XI Certificate of Achievement for Excellence in Financial Reporting XII

FINANCIAL SECTION Independent Auditor’s Report A. MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 1 B. BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 19 Statement of Activities 20 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet – Governmental Funds 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 23 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds 24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Proprietary Funds Financial Statements Statement of Net Position – Proprietary Funds 26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 27 Statement of Cash Flows – Proprietary Funds 28

Notes to Financial Statements 31

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C. REQUIRED SUPPLEMENTARY INFORMATION (Unaudited) Budgetary Comparison Schedule– Major Funds (General and Special Revenue) General Fund 75 Westminster Economic Development Authority 76

Budgetary Notes 77

Postemployment Benefits Other than Pension and Pension Schedules and Notes Retiree Health Program – Schedule of Funding Progress 78 Volunteer Firefighter Pension Plan Schedule of Change in Net Pension Liability (Asset) and Related Ratios 79 Schedule of Contributions 80 Westminster Fire: FPPA Statewide Defined Benefit Schedule of the Employer’s Proportionate Share of the Net Pension Liability (Asset) 81 Schedule of Employer Contributions 82 Schedule of Employer Contributions – Re-entry 83 Westminster Fire: FPPA Statewide Hybrid Defined Benefit Schedule of the Employer’s Proportionate Share 84 of the Net Pension Liability (Asset) Schedule of Employer Contributions 85 D. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Governmental Funds 87 Combining Balance Sheet – Nonmajor Governmental Funds 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 92

Budgetary Comparison Schedules – Governmental Funds General Capital Improvement Fund 97 Parks, Open Space and Trails Sales and Use Tax Fund 98 Sheridan Crossing General Improvement District Fund 99 Amherst General Improvement District Fund 100 136th Avenue General Improvement District Fund 101 Orchard Park Place General Improvement District fund 102 Promenade Parking General Improvement District Fund 103 Mandalay Town Center General Improvement District Fund 104 144th Avenue General Improvement District Fund 105 Conservation Trust Fund 106 Debt Service Fund 107 Community Development Block Grant Fund 108

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Proprietary Funds 109 Combining Statement of Net Position – Nonmajor Proprietary Funds 111 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Nonmajor Proprietary Funds 112 Combining Statement of Cash Flows – Nonmajor Proprietary Funds 113

Budgetary Comparison Schedules – Proprietary Funds Utility Fund 117 Golf Course Fund 118 Westminster Housing Authority Fund 119

Internal Service Funds 121 Combining Statement of Net Position – Internal Service Funds 123 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds 124 Combining Statement of Cash Flows – Internal Service Funds 125 Budgetary Comparison Schedules – Internal Service Funds General Capital Outlay Replacement Fund 129 E. STATISTICAL SECTION (Unaudited) 131 Table Financial Trends Information

Net Position by Component 1 133 Changes in Net Position 2 134 Fund Balance of Governmental Funds 3 136 Changes in Fund Balances of Governmental Funds 4 137

Revenue Capacity Information

Sales and Use Tax Revenue 5 138 Direct and Overlapping Sales and Use Tax Rates 6 139 Principal Sales and Use Taxpayers by Industry 7 140

Debt Capacity Information

Ratios of Outstanding Debt by Type 8 141 Direct and Overlapping Governmental Activities Debt 9 142 Legal Debt Margin Information 10 143 Pledged Revenue Coverage 11 144

Demographic and Economic Information

Demographic and Economic Statistics 12 152 Principal Employers 13 153 Full Time Equivalent City Government Employees by Function/Program 14 154

Operating Information

Operating Indicators by Function/Program 15 155 Capital Asset Statistics by Function/Program 16 156

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Other Supplementary Information

F. COMPLIANCE SECTION

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with the Government Auditing Standards 157 Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance 159 Schedule of Findings and Questioned Costs Summary of Auditor’s Results 161 Financial Statement Findings 162 Federal Award Findings and Questioned Costs 162 Summary Schedule of Prior Audit Findings 163 Schedule of Expenditures of Federal Awards 165 Notes to Schedule of Expenditures of Federal Awards 166 Local Highway Finance Report 167

INTRODUCTION

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May 12, 2016

To the Citizens of Westminster: To the Mayor and City Council:

We are pleased to present to you the 2015 Comprehensive Annual Financial Report for the City of Westminster. The report demonstrates the City’s operations and financial position.

Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. The enclosed data is accurate in all material respects and is presented in a manner designed to fairly set forth the financial position and the results of operations of the City, on a Government-wide and Fund basis. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. Please refer to Management’s Discussion and Analysis for a more in-depth discussion and analytical overview of the City’s basic financial statements and activities.

The Past Year

The City of Westminster delivers exceptional value and quality of life through SPIRIT. SPIRIT – Service, Pride, Integrity, Responsibility, Innovation and Teamwork. We’d like to highlight two significant items that occurred in 2015. During the City Council’s strategic planning retreat, a new vision for the City was created. That vision is Westminster is the next Urban Center of the Colorado Front Range. It is a vibrant inclusive, creative and well-connected city. People choose Westminster because it is a dynamic community with distinct neighborhoods and a resilient local economy that includes: a spectrum of jobs; diverse, integrated housing; and shopping, cultural, entertainment, and restaurant options. It embraces the outdoors and is one of the most sustainable cities in America.

In alignment with City Council’s vision, rather than using a master developer, the City decided to move to a block by block development structure in Westminster’s new downtown. The site is made up of 23 developable blocks on 105 acres. There are also 18 acres of parks and public spaces planned. As of the date of this transmittal letter, the City and/or Westminster Economic Development Authority have entered into one developer agreement, two purchase and sale agreements, two letters of intent and reached agreement with JCPenney to keep them on the site. A General Improvement District was formed during the 2015 election cycle. In addition, the City issued $40 million in Certificates of Participation (COP’s) to construct the infrastructure needed for roughly three-quarters of the site. Infrastructure includes water, sewer, storm drainage, streets, curb and gutter, telecommunications conduit, and gas and electric. It also includes a 900-space 6 deck public parking garage that is expected to be wrapped with an affordable housing residential project with ground floor retail. For more information on the project, please visit www.downtownwestminster.us. The first phase of development, expected to complete construction in 2018 and 2019, will bring approximately 630 new residential units (with over 25% serving affordable or workforce income levels from 30-80%), 200,000 square feet of new retail, and 80,000-100,000 square feet of office space. The Central Square public space and first phases of the Center Park and East and South parks will be completed in 2018 in concert with development.

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The Community Development Department was recognized with a merit award for the Downtown Specific Plan in the theme of General Planning from the Colorado American Planning Association. The award was given based on the project’s unique scope and challenge of redeveloping an old suburban mall site as well as its ability to serve as a precedent for other planning efforts in the region. In 2015, the Parks, Recreation and Libraries Department eclipsed one million annual visits to the City’s recreation centers for the first time in history. Also in 2015, Parks, Recreation and Libraries eclipsed the most annual rounds of golf in the City’s history with rounds played. The Center for Digital Government evaluated the City of Westminster and other participating cities from across the nation in the areas of Information Technology strategic planning, hardware and software technologies, citizen engagement, green initiatives, city services offered through web sites, use of mobile technology and policies, technology use in public safety, geographic information system capabilities, voice and data networks, and more. The City of Westminster was awarded a 5th place ranking in the population category of 75,000 – 125,000. This is the thirteenth year Westminster has achieved a top ten ranking nationwide. Westminster was one of only two Colorado cities selected in the 75,000 – 125,000 population category. During 2015, the City Attorney’s Office (CAO) provided legal support for the Downtown Westminster Project’s COP financing for infrastructure and performed contract review for planning, design, engineering, and construction services. CAO assisted in establishing a General Improvement District to fund maintenance of Downtown infrastructure. CAO also participated on the negotiation of leases, development agreements and purchase and sale agreements related to the Downtown project. In the Westminster Station area, CAO performed contract review and helped negotiate amendments to the intergovernmental agreements with RTD that have facilitated construction of the commuter rail Westminster Station and parking garage. The City Manager’s Office (CMO) working with the General Services Department sponsored the installation of a geothermal heating and cooling system. A geothermal heating and cooling system was installed so the earth can be used to heat and cool City Hall. The system was commissioned in early October and has been operating flawlessly. In addition to the energy savings and decreased reliance on fossil fuels, this new system will save more than 550,000 gallons of water per year when compared to the next most likely cooling technology. CMO also worked extensively on the Downtown Westminster redevelopment project and on the Westminster Station intergovernmental agreement amendments during 2015. CMO also negotiated an intergovernmental agreement with Adams County to partner in the funding for the Little Dry Creek road and drainage improvement projects. The Finance Department was instrumental in furthering the City’s two main projects as it secured $4,610,000 of financing for the Little Dry Creek storm drainage improvements in the transit oriented development area in the southern part of the City. The Finance Department also led the efforts to issue $40 million in taxable and tax-exempt Certificates of Participation for the infrastructure improvements in Downtown Westminster. The Denver Metro Healthiest Employer’s award, sponsored by the Denver Business Journal, recognizes companies that have made a commitment to making wellness a priority for their employees. Now in its sixth year, this prestigious award is given to employers in the small, medium, and large categories. With approximately 960 benefited employees, the City took top honors by placing first in the largest category, competing against organizations that were significantly larger than the City and including both the private and public sector. This is the second year in a row the

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City has placed first for this Denver metro wide award. The General Services Department has been visionary and a leader in wellness efforts, creating the City’s Wellness Program in the mid 1980’s. The Fire Department, working with eight other Fire Departments in the north area, worked to define specifications for a single fire truck that could be used in all jurisdictions. The effort seeks to leverage the need to buy seven fire trucks in 2016 for the various Departments with the anticipation of additional purchases in the following years. During 2015, the Police Department successfully implemented the Text-to-911 System for Emergency Services beginning on May 1. It provides the ability to text 911 from cellular devices to reach emergency services. From May 1 until December 31 there were 13 texts to 911; improving service delivery. It is anticipated as more organizations have the ability to receive text messages, this number will increase. The Public Works and Utilities Department completed the Northridge Tank No. 3 project that addresses the current need for more storage and also provides the desired flexibility related to repairs on the two existing Northridge tanks. The City currently owns and operates 12 water storage tanks. These tanks are a necessary part of the water distribution system to meet fire flow needs, short-term periods of high consumer demand, and emergency storage for potential times of interrupted water supply. Looking Forward The City is looking forward to new opportunities and meeting the challenges of 2016. The City started 2016 with a flurry of activity and outreach. In January, the City Council hosted a community meeting in the southern portion of the City. Participants were asked the following questions:

1) “In the year 2026, TIME magazine features a headline story about Westminster, Colorado, and the south Westminster area success story. The story sets your community apart from other places in the Denver Metro and around the nation. Please write the headline they would most like to see.”

2) “What is the biggest issue/concern you and your family have in this community?”

3) “How can we, as a community, come together to help address that issue?”

4) “What are the key assets of your community; what makes this a great community to live in?”

Topics that were commonly talked about in the small groups included:

Housing Homelessness Inclusivity Communication Impact of Development Safety

City Council also hosted a telephone town hall in January where callers could talk about what was on their mind.

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In addition, a Community Summit was held in March. The discussions focused on the following areas:

The Community Identity Engagement Vision City Services Community Quality of Life

The information collected from these outreach events was used to inform the City Council’s strategic planning retreat which happened at the end of April. Work will continue to be done in both the Downtown area and the south area of the City where a commuter rail station will be the catalyst for transit oriented development. The City is anxiously awaiting the opening of the commuter rail station, which is scheduled to open in late July. The City will be taking on an aggressive capital project schedule including major projects in the Utility Fund, which will be supported with a bond issue that will provide $51,000,000 in project funds. At the City’s main campus, major work will be done to renovate the plaza as well as the City Council chambers. City staff will be working on these high priority items and other projects and initiatives as identified in City Council’s strategic plan. Independent Audit Pursuant to Section 9.10 of the City Charter, an audit of the accounts and financial statements has been completed by the City’s Independent Certified Public Accountants, BKD, LLP. Their reports are included. Government Structure and Types of Services The City of Westminster is a charter city, organized under the Constitution of the State of Colorado, governed by a Council-Manager form of government. City Council is comprised of seven members: a Mayor elected at large and six Councillors, also elected at large. The Council appoints the City Manager, the City Attorney and the Municipal Court Judge; all other staff are appointed or hired by the City Manager. With a population of approximately 112,000, the City is approximately 95% built out, with just over 5% of its remaining area to be developed. The City is a full service City, providing police, fire and emergency medical service, court system, parks, recreation facilities and programs, libraries, planning and development, water and wastewater treatment, street construction and maintenance and a variety of related services such as human resources, finance, information technology, building maintenance, etc. The City of Westminster includes several blended component units, wherein the City includes the financial statements of these units in its financial reporting. These units include:

Westminster Housing Authority (WHA), which is utilized in housing initiatives; The Westminster Economic Development Authority (WEDA), the City’s Urban Renewal

Authority, enables the City to employ eminent domain and tax increment financing for needed re-development in the City’s blighted sections; and

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Nine General Improvement Districts that were created for infrastructure improvements and maintenance, and are listed below: Amherst General Improvement District Sheridan Crossing General Improvement District 136th Avenue General Improvement District Mandalay Town Center General Improvement District Parking Garage General Improvement District 144th Avenue General Improvement District Orchard Park Place General Improvement District Park 1200 General Improvement District* Downtown Westminster General Improvement District*

*Approved by the voters in the November 2015 elections – no financial activity in 2015.

The governing board is the same as the governing body of the City in all cases and the City has the ability to modify or approve the budgets of these entities. Internal Controls and Limitations The City’s framework of internal controls provides management with the reasonable assurance it needs to take meaningful responsibility for the contents of the financial statements. The City’s basic system of internal controls includes the control environment, the accounting system, and control procedures:

The control environment includes a philosophy and organizational structure that allows for the fiduciary practice of oversight, control systems development, and management control of the financial functions of the City.

The accounting system includes built-in checks and balances for purchasing, contracting and contract approval, timely recording of all transactions, audit trails for all transactions, and routine reporting and reconciliation procedures across funds and accounts.

The control procedures established by the City include the following: o Budgetary oversight by the City Manager’s Office separate from the accounting and

recording of transactions by the Finance Department; o The legal level of budgetary control is at the department level; o Segregation of authorization, collection and recording/reconciliation functions across

all departments and financially-related functions of the City of Westminster; o Access controls to all systems, whether purchasing, general ledger, payroll,

information technology, or others; and o Independent checks on the system and transactions by staff performing the internal

audit function. As with any system, the inherent limitations of the system make it imperative that the City rely on review and revision of programs when weaknesses are discovered; SAS 114, The Auditor’s Communication with Those Charged with Governance and SAS 115, Communicating Internal Control Related Matters Identified in an Audit; reporting by the City’s audit firm; and constant diligence on the part of management and employees for preventing and correcting errors or other weaknesses when reviewed.

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Reporting Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Westminster, Colorado, for its Comprehensive Annual Financial Report for the fiscal year ended December 31, 2014. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, the content of which conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last thirty-two consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments Oversight for the preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of Finance Department Staff. In particular, our sincere appreciation is extended to Cherie Sanchez, Accounting Manager; Vicki Adams, Accountant; Karen Barlow, Accountant; Karen Creager, Accountant; Gary Newcomb, Accountant; Dawn Peters, Accountant; Sherri Young, Accountant; Kim McDaniel, Retirement Administrator; Rachel Price, Financial Analyst; Fred Kellam, Senior Financial Analyst; Barb Dolan, Sales Tax Manager; Bob Byerhof, Treasury Manager; and Maggie Hunter, Executive Assistant. Thank you for your dedication, hard work, and another excellent annual report. In addition, the City’s auditors, BKD, LLP were very helpful. Their assistance and professional approach contributed to a thorough and smooth audit. Finally, thank you to City Council and all Staff for your commitment to this community and the SPIRIT you exhibit. Respectfully submitted, Donald M. Tripp Tammy Hitchens City Manager Director of Finance

FINANCIALSECTION

Independent Auditor’s Report

Honorable Mayor and Members of City Council City of Westminster, Colorado Westminster, Colorado

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Westminster, Colorado (the City), as of and for the year ended December 31, 2015 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Honorable Mayor and Members of City Council City of Westminster, Colorado Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 3U to the financial statements, in 2015, the City adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. Our opinions are not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary, postemployment benefits other than pensions and pension information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules and other supplementary information, including the local highway finance report and the schedule of expenditures of federal awards required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in

Honorable Mayor and Members of City Council City of Westminster, Colorado accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory and statistical sections listed in the table of contents are presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 13, 2016, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Denver, Colorado May 13, 2016

Management’s Discussionand Analysis

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City of Westminster, Colorado Management’s Discussion and Analysis (Unaudited) This discussion and analysis of Westminster’s financial statements for the year ended December 31, 2015 provides a narrative overview of the City’s financial activities. Please consider the information here in conjunction with the transmittal letter at the beginning of this Comprehensive Annual Financial Report and the financial statements and notes to the financial statements, which begin on page 19. THE CITY The City of Westminster is a charter city, organized under the laws of the State of Colorado, governed by a Council-Manager form of government. City Council is comprised of seven members: a Mayor elected at large and six Councillors, also elected at large. The Council appoints the City Manager, the City Attorney, and the Municipal Court Judge; all other staff are appointed or hired by the City Manager. The City Manager has served Westminster since 2015 to promote service, pride, integrity, responsibility, innovation and teamwork throughout the organization. The City Manager directs eight departments, including Community Development, Finance, Fire, General Services, Information Technology, Parks, Recreation and Libraries, Police, and Public Works and Utilities. Centrally located between Denver and Boulder Colorado, the City of Westminster is known for its exceptional quality of life, and for its innovative and progressive local government services. With a population of approximately 112,000, the City is approximately 95% built out, with just about 5% of its remaining area to be developed. The City is a full service City, providing police, fire and emergency medical services, 58 developed parks and 4 undeveloped parks, 3,092 acres of natural open space, two libraries, two golf courses, several recreation centers, water and wastewater treatment, street construction and maintenance, and a variety of other services. The primary sources of revenues for cities in Colorado are sales and use taxes, comprising approximately 57.2% of the City’s governmental activities revenues. Property taxes comprise approximately 2.7% of the City’s governmental activities revenues. Property and sales tax increment contributes an additional 6.0%. The primary sources of revenues for the City’s enterprise funds including the Utility Enterprise and Golf Course Enterprise are fees and charges. FINANCIAL HIGHLIGHTS General Fund sales and use tax revenue was up $5.8 million, or 7.1% compared to 2014. The increase is attributed to the strong housing market and employment base across the Front Range that has bolstered public confidence and increased consumer spending. In February, the Utility Enterprise Fund issued $4.6 million of Non-Taxable Stormwater Revenue Bonds for the Little Dry Creek flood control improvements in the Transit Oriented Development in South Westminster. In July, the City issued $40.0 million in Certificates of Participation lease financing for the construction of public infrastructure improvements in Downtown Westminster.

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In December, the City issued $18.5 million of Special Purpose Sales and Use Tax Refunding Bonds to partially advance refund outstanding Special Purpose Sales and Use Tax Bonds (Series 2007) to reduce its total debt service payments through better financing terms. The City received $1.3 million in federal award reimbursements from the US Department of Housing and Urban Development for the Community Development Block Grant program, Department of Transportation for bridge replacement, regional trail improvements and air quality congestion mitigation, and Departments of Justice and Homeland Security for public safety related efforts. $0.1 million in grant reimbursements was received from the State for public safety, historical preservation and acquisition of educational resources for the libraries. $3.1 million in reimbursements was received from Adams County and Jefferson County for various open space acquisitions, trail construction, Little Dry Creek open space and drainage improvements as well as for victim assistance and law enforcement efforts. The City’s Utility Fund received capital contributions from developers totaling $14.0 million for tapping into the City’s water utility system. This is a $6.9 million, or 99.0% increase in contributions from 2014. The City implemented Governmental Accounting Standards Board Statement No. 68 (GASB 68), Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27, which revises and establishes new financial reporting requirements for governments that provide their employees with pension benefits. The implementation resulted in a restatement to increase net position as of January 1, 2015 in the government-wide financial statements in the amount of $3.4 million. The increase was a result of the pension plans in which the City participates being more than 100% funded. The assets and deferred outflows of resources of the City exceed its liabilities and deferred inflows of resources at the close of 2015 by $852.5 million ($384.6 million in governmental activities and $467.9 million in business-type activities). Of the governmental activities net position total, $118.9 million, or 30.9%, is unrestricted and may be used to meet the City’s ongoing obligations to the public and creditors. Similarly, $87.6 million, or 18.7%, of business-type activities net position is unrestricted. Total net position of the City, prior to the restatement, increased $52.2 million, or 6.5%, compared to 2014. The net position of the City’s governmental activities increased $32.0 million, which represents an increase of 9.1% from 2014. The net position of the City’s business-type activities increased $20.2 million, or 4.5%, over 2014. The total expenses of all the City’s programs increased $9.7 million, or 5.6%, compared to 2014. The cost of governmental activities program expenses increased $6.0 million, or 4.8%, to $131.6 million, while business-type activities expenses increased $3.7 million, or 7.6%, to $52.1 million from 2014. Total revenues, excluding transfers, increased $23.5 million, or 11.1%, compared to 2014. Governmental activities revenues increased $11.6 million, or 7.6%, to $163.6 million, while revenues of business-type activities increased $11.9 million, or 19.7%, to $72.3 million compared to 2014. As of December 31, 2015, the City’s governmental funds reported a combined ending fund balance of $163.6 million. Approximately 46.1%, or $75.3 million, is committed, assigned or unassigned fund balance and, therefore, available for spending at the City’s discretion within the purposes specified for the City’s funds.

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The General Fund reported a fund balance of $44.5 million as of December 31, 2015 of which $37.8 million was assigned or unassigned. OVERVIEW OF THE FINANCIAL STATEMENTS

The Statement of Net Position and the Statement of Activities The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities.

The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, deferred inflows of resources and net position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Other non-financial factors, such as changes in the composition or quality of the City’s sales tax base, the condition of the City’s roads, etc., are also important to evaluate when assessing the overall health of the City.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs regardless of the timing of the related cash flows.

In the Statement of Net Position and Statement of Activities, the City is divided into two kinds of activities: Governmental activities – Most of the City’s basic services are reported here – police, fire, public

works, parks, recreation and libraries and general administration. Sales and use taxes, property taxes, fees and charges from the municipal court and the Parks, Recreation and Libraries Department, franchise fees, and state and federal grants finance most of these activities.

Business-type activities – The City charges a fee to customers to cover all or most of the cost of

certain services it provides. The City’s water and sewer system, golf courses, and Westminster Housing Authority activities are reported here.

FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the City-wide financial statements. However, unlike the City-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on the constraints on the use of fund balances at the end of the fiscal year. Information about limitations on financial resources is useful in evaluating the City’s short-term financing requirements. Because the focus of governmental funds is narrower than that of the City-wide financial statements, it may be useful to compare the information presented for governmental funds with similar information presented for governmental activities in the City-wide statements. Readers may then better

4

understand the long-term impact of the City’s short-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate a comparison between governmental funds and governmental activities. The City maintains 15 individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, the General Capital Improvement Fund and the Westminster Economic Development Authority (WEDA), the City’s urban renewal authority. These funds are reported as major funds for the City. Financial information for the other 12 funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements and individual fund statements in the supplementary information of this report. Proprietary funds are generally used to account for services for which the City charges customers – either outside customers or internal customers. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds: Enterprise funds are used to report the same functions presented as business-type activities in

the government-wide financial statements. The City uses enterprise funds to account for the Utility Enterprise, Golf Course Enterprise, and Westminster Housing Authority. The Utility Fund is considered a major fund of the City; the Golf Course Fund and the Westminster Housing Authority are nonmajor funds. Individual fund data for each of these nonmajor enterprise funds is provided in the form of combining statements and individual fund statements in the supplementary information of this report.

Internal Service funds are used by the City to account for the costs of acquiring capital

replacement equipment and costs for City-wide insurance programs. Because these services predominantly benefit governmental rather than business-type functions, the assets and liabilities of the internal service funds have been included within governmental activities in the government-wide financial statements. Internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information of this report.

Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the City-wide and fund financial statements. The notes to the financial statements can be found after the basic financial statements of this report. Required Supplementary Information includes budgetary comparison schedules for the General Fund and Westminster Economic Development Authority as well as schedules that provide information on the funding progress of post-employment benefits other than pension (OPEB) related to the City’s retiree health care program and information related to the City’s firefighter pension plans.

5

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Analysis of Net Position As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. The analysis below focuses on the net position and changes in net position of the City’s governmental and business-type activities. Table 1 presents an analysis of the City’s net position as of December 31. The City’s assets and deferred outflows exceeded its liabilities and deferred inflows by $852.5 million at December 31, 2015. Governmental activities make up $384.6 million (45.1%) of the net position, with business-type activities making up the remaining $467.9 million (54.9%). Total net position, prior to the restatement, increased by $52.2 million (6.5%) in 2015. The increase is comprised of the following: Total assets increased $85.9 million, or 8.0%, to $1,160.5 million. This included an increase in current and other assets of $45.9 million and an increase in capital assets of $40.0 million. The increase in current and other assets was primarily due to an increase in cash, cash equivalents and investments as a result of favorable program revenues, sales and use tax collections and $42.3 million in unspent proceeds from the Certificates of Participation lease financing and Utility Fund private placement bond issues. Additionally, the City’s net pension asset for the firefighter pension funds increased $3.1 million from the implementation of GASB 68. $29.9 million of depreciation was recognized while $73.1 million in capital assets was added. $40.3 million previously classified as Construction in Progress was placed in service and reclassified to nondepreciable and depreciable asset classes, and $3.2 million in capital assets net of depreciation was disposed of.

Total liabilities increased $27.8 million, or 10.3%, to $297.8 million. This is primarily due to the addition of $43.4 million of new financings excluding the refunding debt in Governmental Activities and $4.6 million in Business-type Activities. This increase was offset by reductions of $18.3 million excluding the refunded debt for Governmental Activities and $5.3 million for Business-type Activities in bonds, loans, notes, and leases outstanding.

Total Primary Government

2015 2014* 2015 2014 2015 2014*

Current and other assets 224.7$ 181.0$ 101.8$ 99.6$ 326.5$ 280.6$ Capital assets 406.7 385.9 427.3 408.1 834.0 794.0 Total assets 631.4 566.9 529.1 507.7 1,160.5 1,074.6

Deferred outflow of resources 6.7 6.1 - - 6.7 6.1

Current and other liabilities 18.0 17.0 7.4 5.4 25.4 22.4 Long-term liabilities 218.6 193.0 53.8 54.6 272.4 247.6 Total liabilities 236.6 210.0 61.2 60.0 297.8 270.0

Deferred inflow of resources 16.9 13.8 - - 16.9 13.8

Net Position: Net investment in capital assets 233.7 203.1 375.1 353.5 608.8 556.6 Restricted 32.0 27.8 5.2 5.2 37.2 33.0 Unrestricted 118.9 118.3 87.6 89.0 206.5 207.3 Total net position 384.6$ 349.2$ 467.9$ 447.7$ 852.5$ 796.9$

* Information not restated for the implementation of GASB 68, as it is not practical to do so.

Table 1: Net Position as of December 31 (in Millions)

ActivitiesGovernmental

ActivitiesBusiness-type

6

By far the largest portion of the City’s net position reflects its investment of $834.0 million in capital assets (for example, land, buildings, machinery and equipment, utility plants and parks). Net investment in capital assets is reported less any related debt used to acquire these assets that is still outstanding. The City uses these capital assets to provide services to the public; consequently, they are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net investment in capital assets was $608.8 million as of December 31, 2015, or 71.4% of total net position. An additional portion of the City’s net position, $37.2 million, or 4.4% represents resources that are subject to restrictions as to how they may be used. The remaining balance of unrestricted net position, $206.5 million, or 24.2% may be used to meet the City’s on-going obligations to the public and creditors. It is important to note that the $87.6 million in unrestricted net position of the City’s business-type activities may not be used to fund governmental activities. Analysis of Changes in Net Position As can be seen from Table 2, the City’s net position, prior to the restatement, increased $52.2 million during 2015. This increase is explained in the governmental and business-type activities discussion below. Governmental Activities Net position of governmental activities increased by $32.0 million during 2015. This was $6.1 million more than the increase of $25.9 million in 2014. Governmental activities revenues increased $11.6 million from 2014. The change is attributed to increases in the amount of revenues from Charges for Services ($1.2 million), Operating Grants and Contributions ($0.5 million), Capital Grants and Contributions ($1.7 million), Sales Tax ($3.5 million), Use Tax ($2.8 million), Accommodations Tax ($0.5 million), Intergovernmental ($0.2 million), Sales Tax Increment ($0.4 million) and Gain on Sale of Assets ($1.6 million). These increases were offset by a decreases in Interest ($0.3 million), Other ($0.3 million), Property tax Increment ($0.1 million) and Business fees and Other Taxes ($0.1 million). Governmental expenses increased $6.0 million (4.8%) from 2014. The change is attributable to increased expenses in General Government ($4.1 million), Community Development ($3.8 million), Public Safety ($0.7 million) and Interest and fiscal charges ($0.7 million), offset by decreases in expenses in Public Works ($1.5 million) as well Culture and Recreation ($1.8 million). As can be seen in Table 2, Public Safety expenses accounted for 26.3% of Governmental expenses. General Government, which includes all benefits, insurances and lease payments as well as the City Council and four departments’ (City Manager’s Office, City Attorney’s Office, General Services and Finance) accounted for 31.4%, Culture and Recreation accounted for 16.3%, Public Works accounted for 10.3%, and Community Development accounted for 10.0% of total Governmental expenses.

7

Restated Restated

2015 2014 2015 2014 2015 2014

Revenues

Program revenues

Charges for services 19.1$ 17.9$ 54.1$ 51.3$ 73.2$ 69.2$

Operating grants and contributions 8.3 7.8 - - 8.3 7.8

Capital grants and contributions 15.8 14.1 16.7 7.1 32.5 21.2

General revenues

Property taxes 4.4 4.4 - - 4.4 4.4

Sales taxes 75.9 72.4 - - 75.9 72.4

Uses taxes 17.6 14.8 - - 17.6 14.8

Property tax increment 9.1 9.2 - - 9.1 9.2

Sales tax increment 0.6 0.2 - - 0.6 0.2

Business fees and other taxes 5.6 5.7 - - 5.6 5.7

Accomodations tax 4.0 3.5 - - 4.0 3.5

Intergovernmental 0.4 0.2 - - 0.4 0.2

Interest 0.7 1.0 0.6 0.9 1.3 1.9

Rentals 0.4 0.4 - - 0.4 0.4

Other - 0.3 0.9 0.9 0.9 1.2

Gain on sale of assets 1.7 0.1 - 0.2 1.7 0.3

Total revenues 163.6 152.0 72.3 60.4 235.9 212.4

Program expenses

General government 41.3 37.2 - - 41.3 37.2

Public safety 34.6 33.9 - - 34.6 33.9

Public w orks 13.5 15.0 - - 13.5 15.0

Community development 13.1 9.3 - - 13.1 9.3

Culture and recreation 21.5 23.3 - - 21.5 23.3

Utility - - 48.5 44.8 48.5 44.8

Golf - - 3.5 3.5 3.5 3.5

Housing Authority - - 0.1 0.1 0.1 0.1

Interest and f iscal charges 7.3 6.6 - - 7.3 6.6

Unallocated depreciation 0.3 0.3 - - 0.3 0.3

Total expenses 131.6 125.6 52.1 48.4 183.7 174.0

Excess before transfers 32.0 26.4 20.2 12.0 52.2 38.4

Transfers - (0.5) - 0.5 - -

Change in net position 32.0 25.9 20.2 12.5 52.2 38.4

Net position before restatement 349.2 323.3 447.7 435.2 796.9 758.5

Adjustment for accounting change 3.4 - - - 3.4 -

Net position - beginning 352.6 323.3 447.7 435.2 800.3 758.5

Net position - ending 384.6$ 349.2$ 467.9$ 447.7$ 852.5$ 796.9$

Primary Government

Table 2: Changes in Net Position (in Millions)

Governmental

Activities

Business-type Total

Activities

Charts 1 and 2 illustrate the City’s governmental expenses and revenues by function and its general revenues by source. General revenues such as sales and use taxes, property and other taxes shown in Chart 2 are used to support City program activities city-wide. For governmental activities overall,

8

without regard to program, sales and use taxes are the largest single source (57.2%), followed by charges for services (11.7%).

 ‐

 5.0

 10.0

 15.0

 20.0

 25.0

 30.0

 35.0

 40.0

 45.0

CHART 1: EXPENSES AND PROGRAM REVENUESGOVERNMENTAL ACTIVITIES

Cost of Services

Program Revenues

InMillions

Charges for services, 11.7%

Operating grants and contributions, 

5.1%

Capital grants and 

contributions, 9.7%

Property taxes, 2.7%

Sales and use taxes, 57.2%

Property tax increment, 5.6%

Sales tax increment, 0.4%

Business fees and other taxes, 3.4%

Accomodations tax, 2.4%

Other, 0.8%

Gain on sale of assets, 1.0%

CHART 2: REVENUES BY SOURCE ‐ GOVERNMENTAL ACTIVITIES

9

Business-type Activities Net position in business-type activities increased $20.2 million in 2015. This is $7.7 million, or 61.6%, more than the $12.5 million increase in 2014.

 $‐

 $10.0

 $20.0

 $30.0

 $40.0

 $50.0

 $60.0

 $70.0

Utility Golf Course Housing Authority

(in M

illions)

CHART 3:  EXPENSES AND PROGRAM REVENUES BUSINESS TYPE ACTIVITIES

Expenses Program Revenues

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Total business-type revenues increased $11.9 million, or 19.7%, compared to 2014. This increase was due primarily to an increase of $2.8 million, or 5.5% in Charges for Service and a $9.6 million increase, or 135.2% in Capital Grants and Contributions offset by decreases of $.0.3 million, or 33.3% in Interest and $0.2 million in Gain on Sale of Assets. Expenses of business-type activities increased $3.7 million, or 7.6%, compared to 2014. The increase was due primarily to an increase in costs associated with providing utility services. As can be seen from Charts 3 and 4, the City’s Utility Enterprise accounts for the majority of its business-type activities, representing 93.1% of total business-type expenses. Charges for Services provides the largest share of revenues (74.9%), followed by Capital Grants and Contributions (23.1%). THE CITY’S FUNDS (ANALYSIS OF SPECIFIC FUNDS) As explained earlier, the City of Westminster 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 short-term inflows, outflows, and constraints on financial resources. This information is necessary to assess the City’s financing requirements. Types of governmental funds reported by the City include the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds. At December 31, 2015, the City’s governmental funds reported a combined ending fund balance of $163.6 million, an increase of $35.8 million, or 28.0%, compared to 2014. Based on the level of constraint imposed on the use of financial resources, fund balance is reported as either nonspendable; restricted; or as committed, assigned or unassigned.

Charges for Services74.9%

Capital Grants and Contributions

23.1%

Interest0.8%

Other1.2%

CHART 4: REVENUES BY SOURCE ‐ BUSINESS‐TYPE ACTIVITIES

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Nonspendable fund balance related to property held for resale, primarily reflecting property acquired for the Westminster Urban Reinvestment Project area, decreased $10.9 million to $20.8 million as a result of property conveyed to the City for public green space and right-off-way in the Downtown Westminster.

Fund balance restricted for capital additions and improvements increased $37.2 million primarily due to unspent proceeds from the Certificates of Participation lease financing.

Fund balance restricted for debt service increased $0.9 million, or 5.8%, to $16.0 million. Fund balance restricted for emergencies increased $0.6 million, or 14%. Fund balance restricted for open space conservation and improvements increased $0.2 million to

$2.0 million due in part to an increase in Parks Open Space and Trails sales and use tax revenue. Unrestricted but committed fund balance increased for capital additions and improvements to

$36.9 million from $35.4 million, or 4.2%. Committed fund balance decreased for urban renewal $0.2 million from $1.0 million, or 22.3%,

due to project spending. Unassigned fund balance increased $6.6 million, or 26.9%, to $31.3 million compared to 2014.

Unassigned fund balance is available for spending at the City’s discretion within the purposes specified for the City’s funds.

The remainder of unrestricted fund balance is assigned to indicate that it is has been set aside for a specific purpose.

The General Fund is the primary operating fund of the City. At the end of 2015, the unassigned fund balance of the General Fund was $31.9 million, while total fund balance was $44.5 million. Total fund balance increased in the General Fund by $7.2 million, or 19.2%, compared to 2014. The unassigned fund balance represents 26.4% of General Fund expenditures and transfers out. The City’s goal is to maintain a 10% fund balance. The original budget in the General Fund was $108.5 million. $11.1 million of carryover from 2014 was utilized in the General Fund. Actual General Fund expenditures and transfers out totaled $120.7 million.

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Charts 5 and 6 illustrate the Budget and Actual Revenue and Expenditures less transfers for the General Fund.

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

CHART 5:  GENERAL FUND BUDGET AND ACTUAL REVENUE BY SOURCE, LESS OTHER FINANCING SOURCES AND USES

Budget

Actual

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

CHART 6:  GENERAL FUND BUDGET AND ACTUAL EXPENDITURES BY DEPARTMENT, LESS DEBT SERVICE AND OTHER FINANCING SOURCES AND USES

Budget

Actual

13

Sales and use taxes are the primary funding source for the City’s governmental funds. Once the sales and use tax is collected it is transferred to other funds. As Chart 7 illustrates, 65.5% of the sales and use tax was transferred to the General Capital Improvement Fund, 30.7% was transferred to the Debt Service Fund, and 3.8% was transferred to the General Capital Outlay Replacement Fund. $68.0 million was budgeted in the General Fund for operating purposes.

General Fund sales and use tax increased 7.1%, or $5.8 million, compared to 2014.

The General Capital Improvement Fund is used to account for financial resources used for the acquisition and construction of major capital facilities and improvements of the City, except those financed by the Enterprise Funds. At December 31, 2015, the fund had a fund balance of $78.9 million. The General Capital Improvement Fund revenues include accommodations taxes, interest, revenues from other governments, and transfers from other funds. The fund’s revenues increased by $4.4 million due to increases in Contributions of $4.1 million as well as Accommodations Tax of $0.4 million and Intergovernmental of $0.2 million. Expenditures totaling $33.7 million were $17.5 million more than 2014 due to substantial capital project activity that included various improvements in the South Westminster transportation oriented development and Downtown Westminster areas as well as improvements to the McKay Lake outfall drainage and the bridge replacement at 72nd Avenue and Little Dry Creek. The Westminster Economic Development Authority is the City’s urban renewal authority. The fund balance decreased $12.3 million from 2014. As of December 31, 2015, Fund Balance was $32.8 million.

General Capital Improvement Fund

65.5%

Debt Service Fund30.7%

General Capital Outlay Replacement

3.8%

CHART 7:  GENERAL FUND TRANSFERS OF SALES AND USE TAX 

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Revenue for the Westminster Economic Development Authority increased by $0.3 million, or 2.9%, compared to 2014. The increase was due primarily to an increase in sales tax increment of $0.4 million. Expenditures increased by $4.3 million, or 24.3% compared to 2014. The increase was due to an increase in capital project activity. Proprietary Funds- As already discussed, the City’s proprietary fund statements provide the same type of information found in the government-wide financial statements, but in more detail. The Utility Fund, which accounts for the City’s water, wastewater and storm drainage activities, ended 2015 with net position equal to $449.7 million. Of that amount, $83.6 million is unrestricted. Net position increased $20.2 million, or 4.7%, compared to 2014. Operating revenues increased $2.8 million, or 5.7%, compared to 2014. Chart 8 illustrates both operating and nonoperating revenues by source. The primary reason for the increase in operating revenues is due to increased demand. Utility Fund operating expenses increased $3.5 million, or 8.3%, compared to 2014. As with operating revenue, the primary reason is due to increased demand.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets As can be seen from Table 3, the City’s investment in capital assets for its governmental and business-type activities as of December 31, 2015, amounts to $834.0 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and utility plants, improvements, parks, infrastructure, water rights, machinery and equipment, joint venture assets and construction work in progress. The total increase in the City’s investment in capital assets was $40.0

Operating revenues74.1%

Other0.7%

Income on investments

0.9%

Grants3.9%

Capital contributions

20.4%

CHART 8: UTILITY FUND REVENUES BY SOURCE

15

million, or 5.0%. Net capital assets of governmental activities increased $20.8 million, or 5.4%, and business-type activities increased $19.2 million, or 4.7%.

2015 2014 2015 2014 2015 2014

Land and property rights 147.7$ 137.6$ 117.0$ 117.1$ 264.7$ 254.7$ Buildings and plants 35.7 38.4 141.3 146.3 177.0 184.7 Improvements 19.1 19.7 151.5 132.7 170.6 152.4 other than buildingsParks 20.8 22.6 0.4 0.5 21.2 23.1 Ice Center 4.5 4.6 - - 4.5 4.6 Infrastructure 138.9 144.7 - - 138.9 144.7 Construction in progress 28.5 7.2 12.2 6.4 40.7 13.6 Machinery and equipment 11.5 11.1 4.9 5.1 16.4 16.2 Totals 406.7$ 385.9$ 427.3$ 408.1$ 834.0$ 794.0$

TotalsBusiness-typeGovernmental

Activities Activities

Table 3: Capital Assets at Year-end(Net of Accumulated Depreciation, in Millions)

Major capital asset activity during 2015 included the following: Governmental Activities $8.1 million for South Westminster transportation oriented development projects $18.5 million for the Westminster Urban Reinvestment Project area improvements $4.1 million for McKay Lake outfall drainage $3.7 million for 72nd Avenue and Little Dry Creek bridge replacement Business-type activities $5.0 million for Northridge water storage tank $3.5 million for Standley Lower Bypass Pipeline project $6.9 million for Little Dry Creek drainage and detention $2.1 million for Ranch Creek at 120th Avenue and Federal Boulevard $1.9 million for pump station improvements $1.4 million for Northwest Water Treatment Facility membrane repair and replacement $1.3 million for Big Dry Creek Waste Water Treatment Facility major repair and maintenance $7.2 million for South Westminster TOD water and storm drainage infrastructure Additional information on the City’s capital assets can be found in Note 2E on pages 44 and 45.

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Debt Administration At December 31, 2015 the City’s bond ratings carry investment grade ratings as follows: Bond Issue Standard & Poors Fitch Ratings Moody’s Sales Tax Revenue AA+ AA+ Not Requested Sales Tax Revenue - POST AA- AA- Not Requested Utility Enterprise AA+ AA+ Not Requested COPs-Ice Centre AA- Not Requested Not Requested COPs-All Others AA- Not Requested Not Requested This chart shows the lowest investment grade rating of any single debt issue in a particular bond issue category from each rating agency that the City directly solicits. The State of Colorado limits the amount of general obligation debt that cities can issue to 3% of the actual value of all taxable property within the City’s corporate limits (CRS 31-15-302). The City’s outstanding general obligation debt is significantly below this $251.4 million state-imposed limit. See page 143 for the City’s legal debt margin information. Table 4 illustrates the City’s total indebtedness:

Further information on the City’s debt can be found in Note 2H on pages 47-49. PLANS AND BUDGET FOR 2016 In its 2015 strategic planning retreat the City Council affirmed the City’s Strategic Goals that reinforce long-term planning of City operations and capital programs: Visionary Leadership, Effective Governance and Proactive Regional Collaboration Vibrant, Inclusive and Engaged Community Comprehensive Community Engagement Beautiful, Desirable, Safe and Environmentally Responsible City Dynamic, Diverse Economy Financially Sustainable Government Providing Excellence in City Services Ease of Mobility

2015 2014 2015 2014 2015 2014Revenue Bonds (backed by specific tax and fee revenues) 33.5$ 39.9$ 32.2$ 29.5$ 65.7$ 69.4$ Tax Increment Revenue Bonds and Loans 81.2 86.7 - - 81.2 86.7 Notes and Loans 1.2 1.6 15.2 17.9 16.4 19.5 Leases 88.8 54.7 4.3 5.0 93.1 59.7 Total 204.7$ 182.9$ 51.7$ 52.4$ 256.4$ 235.3$

TotalsGovernmental

Activities ActivitiesBusiness-type

Table 4: Outstanding Debt, at Year-end (in Millions)

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City Council adopted the 2015-2016 budget on October 27, 2014, and amended the 2016 budget in October 2015. While the General Fund and Sales Tax Fund are consolidated for year-end financial reporting purposes, they are still separated for budgeting, legal and administrative purposes. Highlights of the 2016 budget include the following: The 2016 General Fund operating expenditures are budgeted at $110.2 million (including

contingencies). The 2016 General Fund budget is predicated on receiving a transfer payment from the Sales and

Use Tax Fund totaling $72.2 million, which is a 6.2% increase over the 2015 transfer payment of $68.0 million.

In 2016, the Contingency account is $1.0 million in the General Fund. The 2016 General Reserve

Fund is projected to be $11.1 million, the General Fund Stabilization Reserve is projected to be $6.3 million, the Utility Capital Project Reserve Fund is projected to be $17.0 million and the Utility Rate Stabilization Reserve is projected to be $13.7 million.

The total number of full-time equivalent (FTE) staffing in 2016 is 960.7 FTE, a net increase of 19.1

FTE. In order to ensure reliable infrastructure throughout the City that accommodates continued

growth, a proactive Capital Improvement Program (CIP) is recommended as a key component of the 2016 budget. For 2016, total general capital improvements are $16.5 million and total utility capital improvements are $78.8 million. The 2016 CIP will be funded by Governmental and Business-type Activities on a “pay-as-you-go” basis as well as with debt financing to be issued by the Utility Fund in May 2016.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, please contact Tammy Hitchens CPA, CPFO, Finance Director, as follows: City of Westminster 4800 W. 92nd Ave Westminster, CO 80031 303-658-2036 thitchen@cityofwestminster.us

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This Page Intentionally Blank

Basic FinancialStatements

The accompanying notes are an integral part of the financial statements 19

Governmental Business-type

Activities Activities Total

ASSETS

Cash and cash equivalents 11,101,058$ 7,845,372$ 18,946,430$

Cash and cash equivalents w ith f iscal agent 196,864 - 196,864

Investments 97,656,922 69,346,693 167,003,615

Receivables:

Taxes 26,615,817 - 26,615,817

Accounts 3,783,683 5,665,316 9,448,999

Notes and leases 3,826,082 - 3,826,082

Grants 1,728,286 2,702,665 4,430,951

Interest 319,931 234,985 554,916

Internal balances (2,154,232) 2,154,232 -

Inventories 797,841 1,705,867 2,503,708

Property held for resale 20,807,529 - 20,807,529

Bond insurance and other prepaid items 211,248 102,326 313,574

Restricted assets:

Cash and cash equivalents 220,099 483,084 703,183

Cash and cash equivalents w ith f iscal agent 26,041,098 5,272,515 31,313,613

Investments 1,937,735 4,650,185 6,587,920

Investments w ith f iscal agent 27,030,726 - 27,030,726

Notes receivable - 465,588 465,588

Other assets - 1,070,509 1,070,509

Investment in joint venture 779,000 - 779,000

Net pension asset 3,790,697 - 3,790,697

Capital assets:

Non-depreciable assets 176,258,301 129,282,503 305,540,804

Depreciable assets, net 230,483,868 298,057,491 528,541,359

Total assets 631,432,553 529,039,331 1,160,471,884

DEFERRED OUTFLOWS OF RESOURCES 6,699,495 33,133 6,732,628

LIABILITIES

Accounts payable and other 14,741,979 7,027,911 21,769,890

Accrued liabilities 428,447 95,798 524,245

Unearned revenue 118,958 37,684 156,642

Accrued interest 895,905 219,402 1,115,307

Estimated claims 1,806,644 - 1,806,644

Noncurrent liabilities:

Due w ithin one year 18,607,937 5,613,811 24,221,748

Due in more than one year 199,977,003 48,196,100 248,173,103

Total liabilities 236,576,873 61,190,706 297,767,579

DEFERRED INFLOWS OF RESOURCES 16,915,371 - 16,915,371

NET POSITION

Net investment in capital assets 233,726,088 375,115,816 608,841,904

Restricted for:

Emergencies 4,553,229 - 4,553,229

Capital projects 1,487,123 - 1,487,123

Improvements and open space conservation 5,809,401 - 5,809,401

Debt service 15,188,716 5,133,269 20,321,985

Net pension asset 3,790,697 - 3,790,697

Other purposes 1,168,408 - 1,168,408

Unrestricted 118,916,142 87,632,673 206,548,815

Total net position 384,639,804$ 467,881,758$ 852,521,562$

CITY OF WESTMINSTER, COLORADO

STATEMENT OF NET POSITION

DECEMBER 31, 2015

20

Operating CapitalCharges for Grants and Grants and

Expenses Services Contributions Contributions

Function/Program Activities Governmental activities: General government 41,265,248$ 4,856,467$ 7,185,393$ 1,448,462$ Public safety 34,620,914 4,138,624 753,829 - Public w orks 13,490,199 2,439,228 - - Community development 13,136,180 206,671 43,560 10,124,690 Culture and recreation 21,506,116 7,476,626 296,835 4,226,293 Interest and f iscal charges 7,326,033 - - -

Unallocated depreciation (excludes direct depreciation of various programs) 271,497 - - - Total governmental activities 131,616,187 19,117,616 8,279,617 15,799,445

Business-type activities: Utility 48,485,130 50,580,355 16,727,395 Golf 3,530,467 3,483,098 - 4,180 Westminster Housing Authority 125,491 - - - Total business-type activities 52,141,088 54,063,453 - 16,731,575

Total 183,757,275$ 73,181,069$ 8,279,617$ 32,531,020$

GENERAL REVENUES Property taxes

Sales taxes

Use taxes

Property tax increment

Sales tax increment

Business fees and other taxes

Accommodations taxes

Intergovernmental not restricted to a specif ic purpose

Interest

Rentals

Other

Gain on sale of assets

TRANSFERS

Total general revenues and transfers

` Change in net position

Net position - beginning, before restatement

Adjustment for accounting change

Net position - beginning, as restated

Net position - ending

Program Revenues

CITY OF WESTMINSTER, COLORADO

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31, 2015

The accompanying notes are an integral part of the financial statements 21

Governmental Business-typeActivities Activities Total

(27,774,926)$ - (27,774,926)$ (29,728,461) - (29,728,461) (11,050,971) - (11,050,971) (2,761,259) - (2,761,259) (9,506,362) - (9,506,362) (7,326,033) - (7,326,033)

(271,497) - (271,497) (88,419,509) - (88,419,509)

- 18,822,620 18,822,620 - (43,189) (43,189) - (125,491) (125,491) - 18,653,940 18,653,940

(88,419,509) 18,653,940 (69,765,569)

4,378,233 - 4,378,233

75,934,510 - 75,934,510

17,498,401 - 17,498,401

9,083,169 - 9,083,169

641,532 - 641,532

5,636,924 - 5,636,924

4,005,426 - 4,005,426

393,033 - 393,033

739,407 634,166 1,373,573

419,137 10 419,147

6,862 911,961 918,823

1,651,759 11,997 1,663,756

(757) 757 -

120,387,636 1,558,891 121,946,527

31,968,127 20,212,831 52,180,958

349,253,666 447,668,927 796,922,593

3,418,011 - 3,418,011

352,671,677 447,668,927 800,340,604

384,639,804$ 467,881,758$ 852,521,562$

Net (Expense) Revenue andChanges in Net Position

22 The accompanying notes are an integral part of the financial statements

Westminster Other

General Economic Nonmajor Total

Capital Development Governmental Governmental

General Improvement Authority Funds Funds

ASSETS

Cash and cash equivalents 3,947,908$ 4,581,097$ 234,465$ 360,969$ 9,124,439$

Cash and cash equivalents w ith f iscal agent 2,937 - - 4,272 7,209

Investments 34,679,556 40,331,614 2,064,214 3,179,548 80,254,932

Receivables:

Taxes 13,926,054 - 11,596,335 1,093,428 26,615,817

Accounts 2,942,057 807,914 2,267 10,179 3,762,417

Notes and leases 3,310,000 194,847 321,235 - 3,826,082

Grants 52,277 1,635,889 - 40,120 1,728,286

Interest 110,136 131,421 6,818 16,960 265,335

Due from other funds 14,516 - - - 14,516

Inventories 797,841 - - - 797,841

Property held for resale 31,474 319,659 19,246,173 1,210,223 20,807,529

Prepaid items 51,519 - - 260 51,779

Restricted assets:

Cash and cash equivalents - - 8,305 211,794 220,099

Cash and cash equivalents w ith f iscal agent 918,617 15,490,847 9,627,513 4,121 26,041,098

Investments - - 73,121 1,864,614 1,937,735

Investments w ith f iscal agent 250,766 22,995,730 3,784,230 - 27,030,726

Loans to other funds 120,000 1,125,000 - - 1,245,000

Total assets 61,155,658$ 87,614,018$ 46,964,676$ 7,996,488$ 203,730,840$

LIABILITIES

Accounts payable and other 7,280,223$ 6,876,647$ 84,423$ 73,908$ 14,315,201$

Accrued liabilities 388,823 10,401 2,402 3,837 405,463

Unearned revenue 84,766 - 34,192 - 118,958

Due to other funds - - - 14,516 14,516

Accrued interest - - - 1,225 1,225

Loans from other funds - - 2,170,000 - 2,170,000

Total liabilities 7,753,812 6,887,048 2,291,017 93,486 17,025,363

DEFERRED INFLOWS OF RESOURCES 8,916,547 1,830,736 11,917,570 472,683 23,137,536

FUND BALANCES

Nonspendable:

Long-term receivables 120,000 - - - 120,000

Prepaids and inventories 849,360 - - 260 849,620

Property held for resale 31,474 319,659 19,246,173 1,210,223 20,807,529

Restricted for:

Capital additions and improvements - 39,957,491 - 3,773,195 43,730,686

Contractual obligations 156,805 - - 5,844 162,649

Debt service 1,012,579 1,709,008 13,239,186 - 15,960,773

Emergencies - TABOR 4,529,964 - - 23,265 4,553,229

Open space conservation and improvements - - - 2,038,842 2,038,842

Public safety - - - 20,265 20,265

Committed for:

Capital additions and improvements - 36,910,076 - - 36,910,076

Urban renew al - - 811,753 - 811,753

Assigned to:

Community development - - - 175,885 175,885

Debt service - - - 222,661 222,661

Emergencies 5,915,385 - - - 5,915,385

Unassigned 31,869,732 - (541,023) (40,121) 31,288,588

Total fund balances 44,485,299 78,896,234 32,756,089 7,430,319 163,567,941

Total liabilities, deferred inflow s of resources, and fund balances 61,155,658$ 87,614,018$ 46,964,676$ 7,996,488$ 203,730,840$

CITY OF WESTMINSTER, COLORADO

BALANCE SHEET

GOVERNMENTAL FUNDS

DECEMBER 31, 2015

The accompanying notes are an integral part of the financial statements 23

Fund balances - total government funds

163,567,941$

Amounts reported for governmental activities in the statement of

net position is different because:

Capital assets used in governmental activities excluding internal service

fund capital assets of $6,383,646 are not financial resources

and therefore are not reported in the governmental funds.

Governmental capital assets 736,711,770

Less accumulated depreciation (336,353,247)

400,358,523

Other assets used in governmental activities are not financial resources

and therefore are not reported in the governmental funds.

Prepaid bond insurance costs 156,769

Investment in joint venture 779,000

Net pension assets 3,790,697

4,726,466

Deferred outflows of resources reflecting the future consumption of net position are not financial resources and therefore are not reported in the governmental funds.

Deferred loss on refunding of long-term debt 5,508,479

Deferred outflows of resources related to pension plans 1,191,016

6,699,495

Governmental long-term debt payable (203,849,672)

(Premiums)/discounts on long-term debt payable (8,544,518)

Compensated absences (5,254,888)

Postemployment benefits (89,158)

(217,738,236)

Short-term liabilities that are not payable with current financial resources in the current period are not reported in the governmental funds.

Comp time (19,987)

Accrued interest (877,013)

(897,000)

Deferred inflows of resources reflecting the future acquisition of net position are not financial resources and therefore are not reported in the governmental funds.

Revenues earned, but not available during the reporting year 6,270,882

Deferred inflows of resources related to pension plans (48,717)

6,222,165

Internal service funds are used by management to charge the costs of certain

activities to individual funds. The assets and liabilities of internal service funds

are included in governmental activities in the statement of net position.

Internal Service Funds, net position 22,929,682

Internal Service Funds, activity related to enterprise funds (1,229,232)

21,700,450

Net position of governmental activities 384,639,804$

Long-term liabilities, excluding internal service funds, are not due and payable in the current period and therefore are not reported in the governmental funds.

CITY OF WESTMINSTER, COLORADO

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION

DECEMBER 31, 2015

24 The accompanying notes are an integral part of the financial statements

Westminster Other

General Economic Nonmajor Total

Capital Development Governmental Governmental

General Improvement Authority Funds Funds

REVENUES

Property taxes 4,146,509$ -$ -$ 231,724$ 4,378,233$

Sales taxes 70,961,906 - - 4,972,604 75,934,510

Use taxes 16,362,755 - - 1,135,646 17,498,401

Property tax increment - - 9,083,169 - 9,083,169

Sales tax increment - - 641,532 - 641,532

Business fees and other taxes 5,636,924 - - - 5,636,924

Accommodations taxes 1,008,219 2,997,207 - - 4,005,426

Intergovernmental 8,309,537 4,119,474 - 2,192,878 14,621,889

Assessments - 41,662 - - 41,662

Licenses and permits 2,923,276 - - - 2,923,276

Interest 315,985 329,392 39,901 70,107 755,385

Rentals - - 419,137 - 419,137

Contributions - 6,584,703 - - 6,584,703

Recreation fees 7,569,719 - - - 7,569,719

Fines and forfeitures 1,655,314 - - 1,926 1,657,240

Fleet maintenance billings and other 4,920,307 - - - 4,920,307

EMS billings 2,362,530 - - - 2,362,530

Other - 1,860 19,096 44,805 65,761

Total revenues 126,172,981 14,074,298 10,202,835 8,649,690 159,099,804

EXPENDITURES

General government 43,417,345 1,706,302 526,730 101,853 45,752,230

Public safety 33,409,984 - - - 33,409,984

Public w orks 7,812,814 - - - 7,812,814

Community development 3,920,182 - - 2,087,037 6,007,219

Culture and recreation 15,741,361 - - - 15,741,361

Capital projects - 31,087,189 12,883,629 1,103,320 45,074,138

Debt service:

Principal - - 5,487,000 6,288,000 11,775,000

Interest and f iscal charges - 568,377 3,019,668 1,895,202 5,483,247

Bond issuance costs - 338,300 - - 338,300

Refunding bond issuance costs - - - 193,988 193,988

Total expenditures 104,301,686 33,700,168 21,917,027 11,669,400 171,588,281

Excess of revenues over (under) expenditures 21,871,295 (19,625,870) (11,714,192) (3,019,710) (12,488,477)

OTHER FINANCING SOURCES (USES)

Issuance of leases 577,946 40,000,000 - - 40,577,946

Issuance of refunding debt - - - 18,500,000 18,500,000

Premium on debt - 2,863,465 - - 2,863,465

Premium on refunding debt - - - 2,210,722 2,210,722

Discount on debt - (96,821) - - (96,821)

Discount on refunding debt - - - (40,247) (40,247)

Payment to refunded bond escrow agent - - - (20,451,328) (20,451,328)

Sale of capital asset 33,122 4,644,931 - - 4,678,053

Transfers in 1,157,937 13,246,282 1,239,582 7,796,142 23,439,943

Transfers (out) (16,469,387) (385,000) (1,844,001) (4,709,926) (23,408,314)

Total other financing sources (uses): (14,700,382) 60,272,857 (604,419) 3,305,363 48,273,419

Net change in fund balance 7,170,913 40,646,987 (12,318,611) 285,653 35,784,942

Fund balance, beginning 37,314,386 38,249,247 45,074,700 7,144,666 127,782,999

Fund balance, ending 44,485,299$ 78,896,234$ 32,756,089$ 7,430,319$ 163,567,941$

CITY OF WESTMINSTER, COLORADO

GOVERNMENTAL FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

The accompanying notes are an integral part of the financial statements 25

Net changes in fund balances - total government funds 35,784,942$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures, while in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. These amounts, exclusive of internal service fund activity, are the differences in the treatment of capital assets.

Expenditures for capital assets 37,622,993 Transfers of capital assets to enterprise funds (32,386) Current year depreciation (15,331,630)

22,258,977 In the governmental funds, the proceeds from the sale of assets increase financial resources, while in the statement of activities, only the gain/loss on the sale of assets is reported. These amounts, exclusive of internal service fund activity, are the differences in the treatment of the transactions involving capital assets.

Proceeds from sale of capital assets (4,678,053) Gain on sale of capital assets 1,542,218

(3,135,835) In governmental funds, issuance of long-term debt provides, and principal repayments and bond insurance costs consume current financial resources and are reported as revenues and expenditures, while in government-wide reporting, these transactions are reported as adjustments to noncurrent liabilities, having no effect on the change in net position. These amounts, exclusive of internal service fund activity, are the differences in the treatment of long-term debt.

Issuance of leases (40,577,946) Premium on debt (2,863,465)

Discount on debt 96,821 Issuance of refunding debt (18,500,000) Premium on refunding debt (2,210,722) Discount on refunding debt 40,247 Payment to refunded bond escrow agent 20,451,328 Principal payments 17,986,016

(25,577,721) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.

Amortization of bond discount/premium, deferred loss on refunding and prepaid bond insurance costs (1,168,844) Accrual of interest expense (110,640) Adjustment to long-term compensated absences liability 79,399 Adjustment to postemployment benefit obligation 109,233 Adjustment to net pension expense 827,974

(262,878) Some revenues in the Statement of Activities do not provide current financial resources and are not reported as revenues in the governmental fund statements. These revenues result from the contribution of capital assets.

Capital contributions 1,413,768

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental fund statements until they become available. As a result, some revenues recognized in governmental funds may have been recognized in the statement of activities in prior years. These amounts are the difference in the treatment of revenue recognition.

Investment in Joint Venture 12,292 Intergovernmental revenue 1,412,894 Fines and forfeitures (27,918) Fleet maintenance billing and other 20,157

1,417,425 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities in the government-wide statement of net position as they predominately benefit governmental activities.

Change in net position, Internal Service Funds (304,305) Internal allocation to Business-type activities 373,754

69,449

Change in net position of governmental activities 31,968,127$

FOR THE YEAR ENDED DECEMBER 31, 2015

CITY OF WESTMINSTER, COLORADO

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

26 The accompanying notes are an integral part of the financial statements

Other Governmental

Nonmajor Activities

Proprietary Internal Service

Utility Funds Total Funds

ASSETS

Current assets:

Cash and cash equivalents 7,615,016$ 230,356$ 7,845,372$ 1,976,619$

Cash and cash equivalents w ith f iscal agent - - - 189,655

Investments 67,042,000 2,304,693 69,346,693 17,401,990

Receivables:

Accounts 5,665,316 - 5,665,316 21,266

Grants 2,702,665 - 2,702,665 -

Interest 227,724 7,261 234,985 54,596

Inventories 1,509,372 196,495 1,705,867 -

Bond insurance and other prepaid items 80,555 21,771 102,326 2,700

Total current assets 84,842,648 2,760,576 87,603,224 19,646,826

Noncurrent assets:

Restricted assets:

Cash and cash equivalents 483,084 - 483,084 -

Cash and cash equivalents w ith f iscal agent 5,272,515 - 5,272,515 -

Investments 4,650,185 - 4,650,185 -

Loans to other funds 925,000 - 925,000 -

Notes receivable 68,711 396,877 465,588 -

Other assets 1,070,509 - 1,070,509 -

Capital assets:

Non-depreciable assets 115,594,075 13,688,428 129,282,503 -

Depreciable assets, net 293,198,404 4,859,087 298,057,491 6,383,646

Total noncurrent assets 421,262,483 18,944,392 440,206,875 6,383,646

Total assets 506,105,131 21,704,968 527,810,099 26,030,472

DEFERRED OUTFLOWS OF RESOURCES - 33,133 33,133 -

LIABILITIES

Current liabilities:

Accounts payable and other 6,966,887 61,024 7,027,911 426,778

Accrued liabilities 75,699 20,099 95,798 2,997

Unearned revenue - 37,684 37,684 -

Bonds payable, current portion 1,905,000 - 1,905,000 -

Notes payable, current portion 2,886,621 - 2,886,621 -

Lease payable, current portion - 675,383 675,383 262,888

Other liabilities, current portion 141,568 5,239 146,807 2,854

Accrued interest 192,232 27,170 219,402 17,667

Estimated claims - - - 1,806,644

Total current liabilities 12,168,007 826,599 12,994,606 2,519,828

Noncurrent liabilities:

Bonds payable 30,300,000 - 30,300,000 -

Notes payable 12,694,844 - 12,694,844 -

Leases payable - 3,716,324 3,716,324 553,828

Other liabilities payable 1,264,191 220,741 1,484,932 27,134

Total noncurrent liabilities 44,259,035 3,937,065 48,196,100 580,962

Total liabilities 56,427,042 4,763,664 61,190,706 3,100,790

NET POSITIONNet investment in capital assets 360,933,358 14,182,458 375,115,816 5,550,685

Restricted for:

Debt service 5,133,269 - 5,133,269 -

Unrestricted 83,611,462 2,791,979 86,403,441 17,378,997

Total net position 449,678,089$ 16,974,437$ 466,652,526 22,929,682$

1,229,232

Net position of business-type activities 467,881,758$

Adjustment to ref lect the consolidation of internal service fund activities related to enterprise funds

Business-type Activities

Enterprise Funds

CITY OF WESTMINSTER, COLORADO

STATEMENT OF NET POSITION

PROPRIETARY FUNDS

DECEMBER 31, 2015

The accompanying notes are an integral part of the financial statements 27

Other Governmental

Nonmajor Activities

Proprietary Internal Service

Utility Funds Total Funds

Operating revenues

Charges for services 50,580,355$ 3,483,098$ 54,063,453$ 18,328,411$

Rentals - 10 10 -

Other 411,269 19,899 431,168 229

Total operating revenues 50,991,624 3,503,007 54,494,631 18,328,640

Operating expenses

Personnel services 16,650,323 1,584,500 18,234,823 277,954

Contractural services 12,305,129 626,369 12,931,498 2,394,169

Commodities 1,592,160 544,309 2,136,469 39,196

Capital expense 3,335,762 114,808 3,450,570 681,793

Insurance and other expenses 1,622 - 1,622 13,862,241

Depreciation expense 12,357,559 607,108 12,964,667 1,608,703

Total operating expenses 46,242,555 3,477,094 49,719,649 18,864,056

Operating income (loss) 4,749,069 25,913 4,774,982 (535,416)

Nonoperating revenues (expenses)

Income on investments 614,512 19,654 634,166 144,324

Interest expense (1,896,623) (151,062) (2,047,685) (31,014)

Grants 2,702,665 4,180 2,706,845 8,260

Gain (loss) on disposition of capital assets 11,997 - 11,997 109,541

Other 480,793 - 480,793 -

Total nonoperating revenues (expenses) 1,913,344 (127,228) 1,786,116 231,111

Income (loss) before contributions and transfers 6,662,413 (101,315) 6,561,098 (304,305)

Capital contributions 14,024,730 32,386 14,057,116 -

Transfers in - 435,371 435,371 -

Transfers (out) (467,000) - (467,000) -

Change in net position 20,220,143 366,442 20,586,585 (304,305)

Net position - beginning 429,457,946 16,607,995 23,233,987

Net position - ending 449,678,089$ 16,974,437$ 22,929,682$

(373,754)

Change in net position of business-type activities 20,212,831$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds

Business-type Activities

Enterprise Funds

CITY OF WESTMINSTER, COLORADO

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

28 The accompanying notes are an integral part of the financial statements

Other Governmental

Nonmajor Activities

Proprietary Internal Service

Utility Funds Total Funds

Cash flows from operating activities:

Receipts from customers 49,603,974$ 3,495,066$ 53,099,040$ -$

Receipts from interfund charges for risk management services - - - 12,919,613

Receipts from interfund charges for capital outlay replacement - - - 3,128,793

Cash payments to employees for services (16,642,342) (1,675,263) (18,317,605) (273,914)

Cash payments to suppliers for goods and services (14,028,496) (1,262,446) (15,290,942) (16,358,981)

Payments (to) from other funds (3,511,124) - (3,511,124) 2,258,871

Other operating revenues 411,269 14,576 425,845 96

Net cash provided by (used in) operating activities 15,833,281 571,933 16,405,214 1,674,478

Cash flows from noncapital financing activities:

Interfund lending 300,000 - 300,000 -

Transfer in - 435,371 435,371 -

Transfer out (467,000) - (467,000) -

Grant proceeds not restricted to capital purposes - 4,180 4,180 -

Net cash provided by (used in) noncapital financing activities (167,000) 439,551 272,551 -

Cash flows from capital and related financing activities:

Principal paid on long-term debt (4,664,304) (663,703) (5,328,007) (312,931)

Interest paid on long-term debt (2,357,764) (153,110) (2,510,874) (30,973)

Acquisition and construction of capital assets (29,360,837) (110,674) (29,471,511) (1,935,664)

Proceeds from sale of capital assets 6,950 - 6,950 78,202

Contributions 14,054,870 - 14,054,870 -

Proceeds from bonds 4,610,000 - 4,610,000 -

Proceeds from grant/notes - - - 8,260

Interest subsidy on capital debt 480,793 - 480,793 -

Net cash provided by (used in) capital and related financing activities (17,230,292) (927,487) (18,157,779) (2,193,106)

Cash flow from investing activities:

Proceeds from sale of investments 47,589,065 1,450,987 49,040,052 11,007,571

Purchases of investments (39,144,804) (1,448,006) (40,592,810) (9,660,177)

Interest received on investments 770,983 18,614 789,597 179,209

Net cash provided by (used in) investing activities 9,215,244 21,595 9,236,839 1,526,603

Net increase (decrease) in cash and cash equivalents 7,651,233 105,592 7,756,825 1,007,975

Cash and cash equivalents - beginning of year 5,719,382 124,764 5,844,146 1,158,299

Cash and cash equivalents - end of year 13,370,615$ 230,356$ 13,600,971$ 2,166,274$

Reconciliation of cash and cash equivalents to Statement of Net Position

Unrestricted

Cash and cash equivalents 7,615,016$ 230,356$ 7,845,372$ 1,976,619$

Cash and cash equivalents with fiscal agent - - - 189,655

Restricted

Cash and cash equivalents 483,084 - 483,084 -

Cash and cash equivalents with fiscal agent 5,272,515 - 5,272,515 -

Total Cash and Cash Equivalents 13,370,615$ 230,356$ 13,600,971$ 2,166,274$

CITY OF WESTMINSTER, COLORADO

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

(Continued)

Business-type Activities

Enterprise Funds

The accompanying notes are an integral part of the financial statements 29

Other Governmental

Nonmajor Activities

Proprietary Internal Service

Utility Funds Total Funds

Reconciliation of operating income (loss) to net

cash provided by operating activities

Operating income (loss) 4,749,069$ 25,913$ 4,774,982$ (535,416)$

Adjustments to reconcile operating income (loss) to net cash

provided by operating activities:

Depreciation 12,357,559 607,108 12,964,667 1,608,703

(Increase) decrease in accounts receivable (976,381) 74 (976,307) (21,266)

(Increase) decrease in inventories (39,004) 4,941 (34,063) -

(Increase) decrease in prepaid items (3,489) (16) (3,505) -

Increase (decrease) in unearned revenue - 6,560 6,560 -

Increase (decrease) in accounts payable and other 132,361 (31,932) 100,429 (68,749)

Increase (decrease) in accrued liabilities (386,834) (40,715) (427,549) 1,703

Increase (decrease) in estimated claims - - - 689,503

Total adjustments 11,084,212 546,020 11,630,232 2,209,894

Net cash provided by (used in) operating activities 15,833,281$ 571,933$ 16,405,214$ 1,674,478$

Non-cash investing, capital, and financing activities Enterprise Funds:

Enterprise Funds

Business-type Activities

CITY OF WESTMINSTER, COLORADO

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

(Continued)

* The Utility Fund disposed of capital assets at a gain of $5,047.* A contribution of $30,140 was recorded in the Utility Fund to reflect the City's equity interest in the Church Ditch Water Authority.* Capital contributions were received by the Golf Fund from the General Capital Improvement Fund in the amount of $32,386.* Accounts payable and retainage used to acquire capital assets increased by $2,144,494 for the Utility Fund.

* Net amortization totaling $29,053 was recognized by Enterprise Funds through the amortization of bond premiums, discounts, deferred loss on refunding and prepaid bond insurance costs.

* The unrecognized loss recorded to value the non-cash investments of the City's internal service funds to fair market value was $32,176.

* Accrued interest decreased for the General Capital Outlay Replacement Internal Service Fund by $41.

* Accounts payable used to acquire capital assets decreased by $25,169 for the General Capital Outlay Replacement Internal Service Fund.

* The General Capital Outlay Internal Service Fund disposed of capital assets at a gain of $31,339.

* The unrecognized loss recorded to value the non-cash investments for all Enterprise Funds to fair market value was $138,807.

Non-cash investing, capital, and financing activities Internal Service Funds:

* Accrued interest increased in total for Enterprise Funds by $93,167.* An allowance for doubtful collection was recorded for a note receivable in the amount of $123,000 in the Westminster Housing Authority.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City is a municipality governed by an elected mayor and six additional members of Council. For financial reporting purposes, these financial statements include all funds of the primary government as well as component units determined to be included in the City’s financial reporting entity because of their significant operational and financial relationship with the City. Component Units As established by the Governmental Accounting Standards Board (GASB) Statement No.14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, as amended by GASB Statement No. 61, The Financial Reporting Entity: Omnibus, component units are legally separate entities for which the City is considered to be financially accountable. Financial accountability means that the City appoints a voting majority to the governing board and has the ability to impose its will upon the entity and/or accepts potential responsibility for the entities financial benefits and burdens. Component units that meet the inclusion criteria are either discretely presented or blended. Discrete presentation entails reporting component unit financial data in a separate column from the primary government to emphasize their legal separateness from the City. Blended component units are, in substance, part of City operations, therefore data from these units are combined with the City. Separate financial statements are not prepared for blended component units. The City’s component units are all blended and each has a December 31 year end. Westminster Housing Authority (WHA) was established on December 8, 1977 with the primary purpose of providing affordable housing to residents in the City. The governing body of WHA is the same as the City’s governing body. The City has access to WHA’s resources, if necessary, to use for the purposes for which the revenues were intended. The City maintains all accounting records and reports WHA as an enterprise fund.

Westminster Economic Development Authority (WEDA) was established on September 14, 1987 with the primary purpose of undertaking urban renewal activities with the City. The governing body of WEDA is the same as the City’s governing body. The City has access to WEDA resources, if necessary, to use for the purposes for which the revenues were intended. The City maintains all accounting records and reports WEDA as a major governmental fund.  General Improvement Districts (GID) Sheridan Crossing GID was established on September 9, 1996 with the primary purpose of operating and

maintaining storm drainage improvements and maintenance of all necessary incidental and appurtenant properties and facilities within the GID.

Amherst GID was established on September 26, 1988 with the primary purpose of maintaining landscaped right-of-way, open space and drainage areas within the GID.

136th Avenue GID was established on August 14, 2000 with the primary purpose of financing a new interchange at 136th Avenue and Interstate 25 benefitting the GID.

Orchard Park Place North GID was established on September 14, 2009 with the primary purpose of financing the repayment of cost recoveries associated with the Orchard View Development within the GID.

Promenade Parking GID was established on August 14, 2000 with the primary purpose of financing, operating and maintaining a parking garage within the GID.

Mandalay Town Center GID was established on September 8, 2003 with the primary purpose of financing a portion of the costs of street improvements and other necessary and related appurtenance facilities in the GID.

144th Avenue GID was established on August 30, 2004 with the primary purpose of paying debt associated with public improvements within or without the GID.

The boundaries of these GIDs are located within the City limits and the governing body of each of these GIDs is the same as the City’s governing body. The City has access to each of the GIDs resources, if necessary, to

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use for the purposes for which the revenues were intended. The City maintains all of the GID accounting records and reports each GID as a governmental special revenue fund. Westminster Building Authority (WBA) The City created the Westminster Building Authority as a non-profit corporation under State law (Articles 20 through 29, inclusive of Title 7 of the Colorado Revised Statutes). The Building Authority is intended to be the City’s financing arm and, as such, allows the City to avoid paying fees to an outside third-party financing corporation. WBA is not presented in the financial statements as it assigned its right to receive and enforce payments relating to debt service of these financial benefits to a trustee and it has no assets or liabilities of its own. B. Basic Financial Statements The basic financial statements include government-wide and fund financial statements. The government-wide statements focus on the City as a whole and the fund financial statements focus on the major individual funds of the governmental and business-type categories. The government-wide financial statements categorize primary activities as either governmental or business-type. Each presentation provides valuable information that can be analyzed and compared (between years and between governments) to enhance the usefulness of the information. Government-Wide Statements The government-wide statement emphasis is on the sustainability of the City as an entity and the change in aggregate financial position resulting from the activities of the year. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. In the government-wide Statement of Net Position, both the governmental and business-type activities columns (a) are presented on a consolidated basis by column, and (b) are reflected on a full accrual, economic resource basis, which incorporates long-term assets and receivables as well as long-term debt and obligations. The government-wide Statement of Activities reflects both the gross and net expenses per functional category (Public Safety, Public Works, etc.), which are otherwise being supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, etc). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. The program revenues must be directly associated with the function or a business-type activity. Program revenues include 1) charges to customers or applications for goods, services, or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Transfers between governmental funds and between enterprise funds are reported in total at the fund level, and are not carried forward to the government-wide statements; transfers between governmental activities and business-type activities are reported in the respective activities columns of the Statement of Activities, resulting in elimination of transfer activity at the government-wide level. The net expense (by function or business-type activity) is normally covered by general revenue (property, sales and use taxes, intergovernmental revenues, interest income, etc.). Fund Financial Statements The fund financial statements emphasis is on major governmental and proprietary fund categories. Nonmajor funds (by category) are summarized into a single column, unless the City believes a nonmajor fund (under major fund criteria) is particularly important to financial statement users, in which case it is reported as a major fund. The governmental funds in the fund financial statements are presented on a current financial resource and modified accrual basis of accounting. This is the manner in which these funds are normally budgeted. This

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presentation is deemed most appropriate to demonstrate (a) legal and covenant compliance, (b) the source and use of liquid resources, and (c) how the City’s actual experience conforms to the budget plan. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental column, a reconciliation is presented on the page following each fund statement, which briefly explains the adjustments necessary to transform the fund based financial statements into the governmental activities column of the government-wide presentation. Reporting of Internal Service Funds Internal service funds of a government (which traditionally provide services primarily to other funds of the government) are presented, in summary form, as part of the proprietary fund financial statements. Since the principal users of the internal services are the City’s governmental activities, net position of internal service funds is consolidated with governmental activities when presented at the government-wide level. As appropriate, surplus or deficits are allocated back to customers in the entity-wide Statement of Activities and are therefore not eliminated in the consolidation of interfund services provided and used. C. Measurement Focus, Basis of Accounting and Basis of Presentation The financial transactions of the City are recorded in individual funds. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses. The various funds are reported by generic classification within the financial statements. GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis— for State and Local Governments, as amended by GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, sets forth minimum criteria (percentage of the assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The nonmajor funds are combined in a column in the fund financial statements and detailed in the combining statements section. Governmental funds are used to account for the City’s general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 45 days after year-end. Sales taxes, property and other imposed taxes, as well as business fees and interest earnings associated with the current fiscal period are all susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of tax assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt and certain compensated absences and claims and judgments, which are recognized when the obligations are due. When both restricted and unrestricted resources are available for use, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. The City reports the following major governmental funds: General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

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General Capital Improvement Fund accounts for the financing and construction of projects ranging from parks, street improvements, and traffic signals to fire station construction and remodeling. Financing is provided by investment earnings, General Fund and Conservation Trust Fund revenues, intergovernmental revenues, contributions, bond proceeds and transfers. Westminster Economic Development Authority Fund is a special revenue fund that accounts for the monies for urban renewal activity. Financing is provided by the incremental increases of both property tax and sales tax within the boundaries of the Authority. Proceeds from bond issues are used to finance capital improvements. Proprietary funds are used to account for a government’s ongoing organizations and activities that are similar to those often found in the private sector. Proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. All assets, liabilities, deferred outflows of resources, revenues, expenses, and transfers relating to the government’s business and quasi-business activities are accounted for through proprietary funds. The generally accepted accounting principles followed are generally those applicable to similar businesses in the private sector; the measurement focus is based upon determination of net income, financial position, and cash flows. Revenues earned and expenses incurred are recognized and classified in a government’s proprietary funds in essentially the same manner as in business-type accounting and financial reporting. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The City reports the following major proprietary fund: Utility Fund accounts for all activities necessary to provide water, sewer and storm drainage services to City residents and some outside users, financing of such activities and related debt service. The City additionally reports the following Fund types: Internal Service Funds account for operations that provide services to other departments or agencies of the City on a cost-reimbursement basis. The City has three internal service funds that are used for self-insurance purposes; property and liability, workers’ compensation, and medical and dental insurance. In addition, the City has one internal service fund used for replacement of capital equipment. D. Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources Deposits and Investments The City’s cash and cash equivalents include amounts that are readily convertible to known amounts of cash and are not subject to significant risk from changes in interest rates. Investments are reported at fair value. For cash and cash equivalents, the fair value approximates the carrying value. For long-term investments, fair value is determined via dealer quotes. The City considers all investments with original maturities at three months or less to be cash equivalents. Receivables The receivables for property taxes are recognized as of the lien date. Taxes are liened on January 1, certified to the counties in December, levied on January 1 of the following year, and subsequently paid in either one installment on April 30, or two installments on February 28 and June 15. Property taxes are recognized as receivables and deferred inflows of resources when liened, and as revenue when available for collection in the following year. The respective counties bill and collect the City’s property taxes. Assessments are also enforceable liens on property. They are certified to the counties when liabilities for special improvement districts are established. Payments, billings, and collections are handled by the counties in the same manner as property taxes, or the City collects the assessments directly.

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Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of inventories are recorded as expense/expenditure when consumed, rather than when purchased. Prepaid items reflect payments to vendors applicable to future accounting periods; the associated expense/expenditure is recognized in the period benefited by the prepayment. Property Held for Resale Property held for resale reflects properties acquired by the City for the express purpose of resale. Since these assets are intended to be converted to cash rather than to be used in daily operations, they are reported in governmental fund statements as financial assets valued at the lessor of either cost or net realizable value. Typically, properties held for resale are intended to be sold for economic development purposes. Restricted Assets Certain resources set aside for repayment of debt are classified as restricted assets on the Statement of Net Position and Fund Statement Balance Sheets because their use is limited by applicable debt covenants. The General Fund; Westminster Economic Development Authority Special Revenue Fund; General Capital Improvement Fund and the Utility Enterprise Fund have restricted assets which consist of bond proceeds and other cash and investments mandated by indenture to be segregated for the construction of various projects and payment of debt. The Community Development Block Grant Fund has cash and deposits that are restricted due to the Department of Housing and Urban Development and/or debt requirements. The Conservation Trust Fund has restricted cash that is restricted due to the legal requirements of the program. Capital Assets Capital assets with a value of $5,000 or more are recorded at historical cost. Major outlays for constructed capital assets and improvements are capitalized when the assets are placed in service and the improvements are complete. Donated capital assets are recorded at estimated fair value at the date of donation. Costs that do not add to the value of an asset or materially extend its useful life are not included in its capitalized value. Infrastructure includes all streets and other pavement, bridges, storm drainage, signs, and traffic signals. Capital assets are depreciated using the straight-line method over their estimated useful lives:

Depreciable Life Schedule

Capital Asset Life Months

Machinery and equipment 36-240

Buildings and plants 360-600

Improvements other than buildings 240-600

Parks 240

Infrastructure 120-600

Assets recorded under capital lease agreements are either amortized over the term of the lease or the estimated useful life of the asset, whichever period is shorter. Amortization expense for capital leases is included in the depreciation line item on the financial statements. Included in business-type activities is the interest incurred during the construction phase of capital assets, net of interest earned on the invested proceeds over the same period (other than for taxable debt). Long-Term Debt Insurance Costs In the governmental funds, bond insurance costs are treated as period costs in the year of issue. In the proprietary funds (and for the governmental activities, in the government-wide statements) bond insurance costs are prepaid and amortized over the term of the bonds. Deferred Outflows Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a

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consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City reports the deferred charge on refunding debt reported in the proprietary fund statements and in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The City also reports deferred outflows in the government-wide statement of net position related to FPPA pension plans for deferred activity related to actuarial assumptions used to value the net pension liability (asset) and employer contributions made subsequent to the valuation measurement date. Long-Term Debt Premiums and Discounts In the governmental funds, bond premiums and discounts are treated as period costs in the year of issue. In the proprietary funds (and for the governmental activities, in the government-wide statements) bond premiums and discounts are deferred and amortized over the term of the bonds. The balance of these deferrals is combined with the corresponding long-term debt in the financial statements. Other Long-Term Liabilities Compensated absences, postemployment benefits other than pension (OPEB), and pollution remediation obligations are reported as Other Liabilities in the proprietary fund financial statements. In proprietary funds and in the government-wide statements, these liabilities are accrued when incurred. In governmental funds, compensated absences is accrued as a fund liability when it becomes payable following an employee’s resignation or retirement; otherwise compensated absences and OPEB are considered long-term and are not accrued as fund liabilities. Pollution remediation obligations are accrued when extinguishable with current financial resources; otherwise, they are not accrued. Compensated absences and OPEB are liquidated by the fund in which an employee works. The General Fund is typically used to liquidate these liabilities for the general government. Pollution remediation obligations are liquidated by the fund responsible for the remediation activity. Differences in the treatment of these liabilities between governmental fund statements and the Statement of Net Position, Governmental Activities are accounted for in the Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position. Deferred Inflows of Resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) that will be recognized as a revenue at that time. Under the modified accrual basis of accounting, revenues and other fund financial resources are recognized in the period in which they become both measurable and available. Assets recorded in the fund financial statements for which the revenues are not available are reported as a deferred inflow of resources. In addition, property tax receivables are reported as a deferred inflow of resources when levied. Unavailable fund resources are recognized as revenue in the government-wide statement of net position. The City also reports deferred inflows in the government-wide statement of net position related to FPPA pension plans for deferred activity related to actuarial assumptions used to value the net pension liability (asset). Use of Estimates In preparing the City’s financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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E. FPPA Pensions For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Statewide Defined Benefit Plan (SWDB), Statewide Hybrid Plan (SWH), and the Westminster Volunteer Firefighter Pension Plan, all administered by the Fire and Police Pension Association of Colorado (FPPA), and additions to/deductions from these plans’ fiduciary net position have been determined on the same basis as they are reported by FPPA. FPPA follows the accounting principles and reporting guidelines as set forth by the Governmental Accounting Standards Board. The financial statements are prepared using the accrual basis of accounting and reflect the overall operations of FPPA. Employer contributions in FPPA’s financial statements are recognized in the period in which the contributions are due. For the Westminster Volunteer Firefighter Pension Plan, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. All employees who participate in the plans are funded through the general fund and therefore the net pension liability (asset) is recorded at the government-wide level only. F. Net Position/Fund Balances Net position reflects assets plus deferred outflows less liabilities plus deferred inflows and is shown in three main categories in the government-wide and proprietary fund financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt used to acquire, construct and improve capital assets. Net position is restricted when constraints placed on net resources are externally imposed. Remaining net position is reported as unrestricted. Fund balance reflects assets plus deferred outflows less liabilities and deferred inflows and is shown only in governmental fund statements. Financial reporting standards establish criteria for classifying fund balance amounts into specifically defined categories to make the nature and extent of constraints on those amounts more useful and understandable. The categories comprise a hierarchy based on the extent to which constraints must be honored for a specified purpose and for which amounts can be spent. Fund balances may be categorized as nonspendable, restricted, committed, assigned, and unassigned. Nonspendable Fund Balance cannot be spent because it is either in nonspendable form or is legally or contractually required to be maintained intact. Examples include items not expected to be converted to cash such as inventories and prepaid assets. Restricted Fund Balance is restricted for specific purposes based on constraints externally imposed by creditors, grantors, contributors, laws, or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance is constrained for specified purposes through ordinance, resolution, motion or order adopted by the City Council, and can be rescinded only through the same type of formal action used to establish the commitment. Each of these official actions are equally binding upon the City. Assigned Fund Balance is constrained for specified purposes by the City Manager as authorized by the City’s charter. Unassigned Fund Balance is unconstrained and comprised of residual uncategorized fund balance amounts. The General Fund is the only fund that reports a positive unassigned fund balance. When expenditures are incurred for purposes for which both restricted and unrestricted amounts are available, restricted amounts are deemed to be used first. When expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, committed amounts are considered to be reduced first, followed by assigned amounts and then by unassigned amounts. In 2009, City Council adopted a resolution establishing the General Fund Stabilization Reserve, which is intended to level the ebbs and flows of revenue collections, particularly sales and use tax revenues, and to smooth out any peaks or valleys that result from the unpredictable nature of this primary revenue source. The

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General Fund Stabilization Reserve is intended to enable continuous delivery of City services despite downturns in the economy. The reserve may be tapped prior to, in conjunction with or as a final step after budget reductions have been made. When not in an economic downturn, the target amount of the General Fund Stabilization Reserve in any given year is between 5% and 10% of the total sales and use tax revenues for that year. Should the reserve fall below the lower threshold of 5%, it will be replenished from various sources once economic conditions allow. At December 31, 2015, the General Fund Stabilization Reserve balance was $5,327,657. This amount is included in the unassigned fund balance on the balance sheet. G. Interfund Transactions In the fund financial statements, interfund transactions are reflected as loans, services provided and used, reimbursements or transfers. Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “loans to” and “loans from” other funds. In governmental funds, loans to other funds are offset by an equal nonspendable fund balance to indicate that resources are not available for appropriation. Short-term advances between funds are reported as “due to” and “due from” other funds. Services provided and used are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges a benefiting fund for the costs and directly reduces its own costs related to the reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide columnar presentation. In the government-wide Statement of Net Position, loans between governmental and business type activities are reflected as internal balances. NOTE 2 - DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Deposits Federal Deposit Insurance covers up to $250,000 in balances per depositor (e.g. City, WEDA), per insured bank, for each account ownership category. Deposit balances above amounts covered by Federal Deposit Insurance are collateralized in accordance with provision of the Colorado Public Deposit Protection Act (PDPA). The collateral is pooled and held in trust for all uninsured deposits as a group. The total balance of the City’s cash deposits as of December 31, 2015 was $28,560,061, of which $750,000 was covered by Federal Deposit Insurance. An additional $500,000 in Federal Deposit Insurance covers deposits held separately for the Westminster Economic Development Authority. The carrying amount of deposits and cash on hand at December 31, 2015 was $29,914,591. Investments The City as a home rule municipality operating under its City Charter is allowed under Colorado State Statutes to promulgate and implement local standards for cash and investment management operations. It is the policy of the City to invest public funds in a manner that will provide preservation of capital, meet the daily liquidity needs of the City, diversify the City’s investments, conform to all local rules and state statutes governing the investment of public funds, and generate market rates of return. The adopted Investment Policy for the City authorizes all investments to be made in accordance with Colorado Revised Statutes. The provision of the City’s Investment Policy apply to all investable funds of the City to include trust funds, bond ordinance accounts and reserve accounts. The reserve and trust accounts are further defined with additional investment guidelines. The Investment Policy addresses the methods, procedures and practices which must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds.

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The City’s principal investment objectives are: Preservation of capital and protection of investment principal Maintenance of sufficient liquidity to meet anticipated cash flows Diversification to avoid incurring unreasonable financial risks Attainment of a market rate of return as defined in Section XIII of the Investment Policy Conformance with all applicable City policies, State statues and Federal regulations

The City’s investments are subject to interest rate, credit and concentration of credit risk, which are mitigated by Colorado State Statutes as follows: As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investment maturities to less than seven years, unless matched to a specific cash flow. Interest Rate Risk. In accordance with its investment policy, the City manages its exposure to declines in fair values by maintaining the weighted average maturity not to exceed three years. Credit Risk. In accordance with its investment policy, the City manages its credit risk by requiring at the time of purchase that the security be rated by at least two nationally recognized credit rating agencies as further defined in the Investment policy. The City’s securities at December 31, 2015, were in compliance with the City’s Investment Policy. The City’s investment policy follows Colorado Revised Statutes 24-75-602.1(j) and any changes enacted in the statutes. Concentration of Credit Risk. In accordance with the City’s investment policy, investments are diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer or a specific class of securities. Percentage limitations used for measurements are based on the percentage of cost value of the portfolio as defined within the Investment Policy. Local Government Investment Pools. At December 31, 2015, the City had invested $21,286,076 in Colorado Surplus Asset Fund Trust (CSAFE), and $397,147 in the Colorado Local Government Liquid Asset Trust (COLOTRUST), investment vehicles established for local government entities in Colorado pursuant to Title 24, Article 75, Part 7 of the Colorado Revised Statutes, to pool surplus funds for investment purposes. The State Securities Commissioner administers and enforces the requirements of creating and operating the Pools. CSAFE and COLOTRUST are 2a7-like investment pools and are not subject to interest rate risk disclosure. CSAFE and COLOTRUST operate similar to money market funds where each share is equal in value to $1.00. The fair value of the position in the pools is the same as the value of the pooled shares. Each pool is rated AAA by Standard and Poor’s. The designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned by the pools are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian’s internal records identify the investments owned by the pools. Investments of the pools comply with state statutes, consisting of U.S. Treasury bills, notes and note strips, repurchase agreements, U.S. Instrumentalities, Commercial Paper, Bank Deposits, and Money Market Funds.

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Cash and cash equivalents $ 18,946,430 Cash and cash equivalents with fiscal agent 196,864 Investments 167,003,615 Restricted cash and cash equivalents 703,183 Restricted cash and cash equivalents with fiscal agent 31,313,613 Restricted investments 6,587,920 Restricted investments with fiscal agent 27,030,726 Total per Statement of Net Position: $ 251,782,351

Cash, cash equivalents and investments as reported on the financial statements at December 31, 2015

Investment TypeS & P Rating

% of Total Investments

Local Government Investment Pool CSAFE AAAm 9.59%Local Government Investment Pool COLOTRUST AAAm 0.18%Commercial Paper ING Funding A-1 1.80%Corporate Toyota Motor Credit AA- 3.64%Corporate IBM Corp AA- 2.49%Corporate US Bank NA AA- 3.60%Corporate Berkshire Hathaway AA 3.24%Corporate Chevron Texaco Corp AA 1.00%Corporate Johnson & Johnson AAA 0.91%Corporate Apple Inc AA+ 0.90%Corporate Colgate-Palmolive Co. AA- 0.68%Municipal Westminster EDA NR 0.64%US Treasury Securities N/A 36.80%Federal Farm Credit Banks AA+ 5.05%Federal Home Loan Bank System AA+ 8.88%Freddie Mac (Federal Home Loan Mortgage Corporation) AA+ 9.93%Fannie Mae (Federal National Mortgage Association) AA+ 8.85%Money Market First American Government Obligations Fund AAAm 1.71%Money Market First American Treasury Obligations Fund AAAm 0.11%

Credit Quality Distribution for Securities as a Percentage of Total Investments

Weighted Average Investment Type Fair Value Maturity (years)

Local Government Investment Pool 21,683,223$ 0.01

Commercial Paper 3,999,753 - US Treasuries 81,651,913 0.53 US Instrumentalities 72,563,428 0.67 Domestic Corporate Securities 36,524,447 0.22 Municipal 1,410,000 0.01 Money Market Funds 4,034,996 - Total Investments controlled by City 221,867,760$

Portfolio weighted average maturity 1.44

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B. Disaggregation of Receivables

Taxes Accounts Notes and

Leases Grants Interest Total

Receivables Governmental Activities:

General 13,926,054$ 4,752,751$ 3,310,000$ 52,277$ 110,136$ 22,151,218$ GCIF - 807,914 194,847 1,635,889 131,421 2,770,071 WEDA 11,596,335 2,267 321,235 - 6,818 11,926,655 Nonmajor governmental 1,093,428 10,179 - 40,120 16,960 1,160,687 Less: Allowance for Doubtful Accounts - (1,810,694) - - - (1,810,694) Subtotal 26,615,817 3,762,417 3,826,082 1,728,286 265,335 36,197,937

Reconciliation of balances to government-wide financial statements:

Internal service funds - 21,266 - - 54,596 75,862

Total - Governmental Activities 26,615,817$ 3,783,683$ 3,826,082$ 1,728,286$ 319,931$ 36,273,799$

Business-type Activities:Utilities -$ 5,675,598$ 68,711$ 2,702,665$ 227,724$ 8,674,698$ Nonmajor proprietary - - 2,373,000 - 7,261 2,380,261 Less: Allowance for Doubtful Accounts - (10,282) (1,976,123) - - (1,986,405)

Total - Business-type Activities: -$ 5,665,316$ 465,588$ 2,702,665$ 234,985$ 9,068,554$

Receivables at December 31, 2015, were as follows:

C. Notes and Leases Receivable In the governmental fund financial statements, long-term receivables, such as special assessments and capital leases receivable, are offset by deferred inflow of resources until recognized as revenue at the time of collection. Operating lease revenue is reported as income as it is earned. The net investment in a capital lease becomes receivable when benefits and risks associated with ownership of the property transfer to the lessee, typically at inception of the lease agreement. The capital lease with Hyland Hills Parks and Recreation District represents a sublease for an undivided 50% interest in the Ice Centre to be paid over 25 years. In the event of default, Hyland Hills’ interest would be reduced by two percent for each year the lease obligation was not met. The net interest rate on the lease is 3.385%. The note with Catellus Development Corporation represents the final special assessment payment due on land purchased by Catellus. The note with Community Resources & Housing Development Corp. is for the construction and purchase of a 12,000 square foot building located in the South Westminster Urban Renewal Area. The note requires monthly payments of principal and interest, with a balloon payment due in January, 2017. Interest rates on the loan is 3.0%. The City considers these amounts to be fully collectable and therefore, no reserve has been established. The City will periodically reassess the collectability of the notes receivable and record a reserve if deemed necessary. The Westminster Housing Authority entered into a note with Community Builders for the construction of a 12,000 square foot building. Certain performance provisions of the note were satisfied in 2009. Therefore, the principal is forgiven at the rate of 10% per year. An allowance for doubtful accounts has been established for the remaining balance of $123,000 at December 31, 2015. The Westminster Housing Authority entered into a note with Westminster Commons VOA, LP as part of the sale of the Westminster Commons senior housing complex. Repayment will be made from projected cash flows generated by the project beginning in 2015 with a balloon payment of any unpaid principal and accrued interest in 2052. Interest is compounded annually at the rate of 3.6%. Due to the limited projected cash flows and unsecured subordinate note, an allowance for doubtful accounts has been established in the amount of

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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42

$1,853,123 at December 31, 2015. Actual cash flows and updated project cash flows will be reviewed annually with the allowance for doubtful accounts adjusted when necessary. The Utility Fund entered into notes receivable with West 117th Master HOA, Village at Park Center HOA and Life Fellowship Church. These notes allow the water system user to pay for the cost of connecting to the water system over a period of time. Payment amounts are based on water usage and collected along with the monthly usage billing. Since repayment is based on water usage the notes do not have a defined term. An allowance for doubtful accounts is not established as the City can lien the associated property.

Year ofPurpose of Amount Amount Scheduled Final

Business-type Activities Issue Issued Outstanding Payments Payment

Community BuildersDevelopment Corp Building Construction 410,000$ * * *

Westminster Commons VOA, LPSale of Westminster Commons 2,250,000 ** 396,877 annually 2052

Utility Customers Water System Connection 97,763 68,711 monthly *** Total Business-Type Activities 2,757,763$ 465,588$

*In accordance w ith the agreement, this note is forgiven at a rate of 10% per year until extinquished; therefore,no oustanding amount is reflected in the statements.**The face value of the note is $2,250,000 w ith repayment from project cash f low s. How ever, an allow ance for doubtfulaccounts of $1,853,123 has been established due to projected limited cash f low s. A review w ill be conducted annually toadjust the allow ance if necessary.*** The payment amount is based on w ater usage not a defined term.

Description of notes and leases receivable

Year Ending Catellus Hyland Hills

Colorado Rural

Housing TotalCommunity

Builders

Westminster Commons VOA, LP

Utility Customers Total

2016 194,847$ 365,000$ 8,346$ 568,193$ -$ 13,678$ 36,225$ 49,903$ 2017 - 375,000 312,889 687,889 - 14,307 6,168 20,475 2018 387,500 - 387,500 123,000 14,931 6,387 144,318 2019 - 400,000 - 400,000 - 15,550 6,614 22,164 2020 415,000 415,000 16,162 6,850 23,012

2021-2025 - 1,367,500 - 1,367,500 - 89,719 6,467 96,186 2026-2030 - - - - - 104,057 - 104,057 2031-2035 - - - - - 118,860 - 118,860 2036-2040 - - - - - 133,710 - 133,710 2041-2045 - - - - - 148,560 - 148,560 2046-2050 - - - - - 163,410 - 163,410 2051-2052 - - - - - 69,522 - 69,522

194,847 3,310,000 321,235 3,826,082 123,000 902,466 68,711 1,094,177 Net present value/ principal adjustment - - - - (123,000) ($505,589) - (628,589)

Total 194,847$ 3,310,000$ 321,235$ 3,826,082$ -$ 396,877$ 68,711$ 465,588$

Business-type activities Governmental activities

Notes and Leases Receivable Maturities

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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D. Interfund Receivables and Payables

The composition of loans from and to other funds as of December 31, 2015, is as follows:

Receivable Fund Payable Fund Amount

Due to/from other funds:General Fund Community Development Block Grant 14,516$

Loans from/to other funds:General Fund Westminster Economic Development Authority 120,000$ General Capital Improvement Westminster Economic Development Authority 1,125,000 Utility Fund Westminster Economic Development Authority 925,000

Total loans from/to other funds 2,170,000$

At December 31, 2015, the General Fund covered the overdrawn cash balance of the Community Development Block Grant Fund in the amount of $14,516. The loans of $2,170,000 to the WEDA Fund were used for the redevelopment and revitalization of the Westminster Plaza Shopping Center and to pay for expenses associated with the redevelopment of an abandoned residential project within the Holly Park Urban Renewal Area. These interfund loans are expected to be repaid in the near term. An interfund loan is budgeted in the payor fund as either an Other Financing Use in a governmental fund or as a nonoperating expense in a proprietary fund. However, the transaction is reported on the respective fund’s balance sheet as either Due From Other Funds for short term borrowings, or as Loans From Other Funds for longer term borrowings. As a result, a budget to actual variance is recognized in the payor fund’s budgetary comparison schedule in the year an interfund loan originates.

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E. Capital Assets

Beginning Ending Balance Additions Transfers Deletions Balance

Governmental Activities Land & Land Rights 131,164,731$ 2,322,998$ 10,854,350$ (2,986,383)$ 141,355,696$ Water Rights 1,000,000 - - - 1,000,000 Joint Venture 5,361,000 - - - 5,361,000 Construction in progress 7,226,042 35,599,798 (14,284,235) - 28,541,605 Total nondepreciable assets 144,751,773 37,922,796 (3,429,885) (2,986,383) 176,258,301 Buildings 90,123,763 - - - 90,123,763 Improvements other than buildings 43,459,874 8,500 1,345,084 - 44,813,458 Parks 58,544,996 - 341,890 - 58,886,886 Ice Center 6,972,384 - - - 6,972,384 Infrastructure 338,679,401 - 1,295,587 - 339,974,988 Machinery and equipment 37,290,565 3,071,062 414,938 (2,625,359) 38,151,206 Total depreciable assets 575,070,983 3,079,562 3,397,499 (2,625,359) 578,922,685 Less accumulated depreciation for: Buildings (51,753,870) (2,703,542) - - (54,457,412) Improvements other than buildings (23,746,965) (2,020,548) - - (25,767,513) Parks (35,912,336) (2,154,111) - - (38,066,447) Ice Center (2,324,128) (145,258) - - (2,469,386) Infrastructure (194,019,172) (7,052,214) - - (201,071,386) Machinery and equipment (26,194,157) (2,864,662) - 2,452,146 (26,606,673) Total accumulated depreciation (333,950,628) (16,940,335) - 2,452,146 (348,438,817) Net total depreciable assets 241,120,355 (13,860,773) 3,397,499 (173,213) 230,483,868 Governmental activities capital assets, net 385,872,128$ 24,062,023$ (32,386)$ (3,159,596)$ 406,742,169$

Depreciation expense was charged to governmental functions as follows: General government 1,337,296$ Public safety 2,213,033 Public works 4,543,932 Community development 2,877,126 Culture and Recreation 5,697,451 Unallocated depreciation-Internal Service Funds 271,497 Total depreciation expense 16,940,335$

Beginning Ending Balance Additions Transfers Deletions Balance

Business-type activities: Land & Land Rights 23,079,573$ -$ -$ -$ 23,079,573$ Water rights 93,978,431 - - - 93,978,431 Construction in progress 6,414,649 31,811,652 (26,001,802) - 12,224,499 Total nondepreciable assets 123,472,653 31,811,652 (26,001,802) - 129,282,503 Buildings and plants 243,880,884 - 863,243 - 244,744,127 Improvements other than buildings 213,244,319 157,912 24,178,739 - 237,580,970 Parks 1,590,689 - - - 1,590,689 Machinery and equipment 20,298,690 193,500 992,206 (1,832,572) 19,651,824 Total depreciable assets 479,014,582 351,412 26,034,188 (1,832,572) 503,567,610 Less accumulated depreciation for: - Buildings and plants (97,546,450) (5,859,705) - - (103,406,155) Improvements other than buildings (80,476,635) (5,613,372) - - (86,090,007) Parks (1,140,223) (78,174) - - (1,218,397) Machinery and equipment (15,199,763) (1,413,416) - 1,817,619 (14,795,560) Total accumulated depreciation (194,363,071) (12,964,667) - 1,817,619 (205,510,119) Net total depreciable assets 284,651,511 (12,613,255) 26,034,188 (14,953) 298,057,491 Business-type activities capital assets, net 408,124,164$ 19,198,397$ 32,386$ (14,953)$ 427,339,994$

Depreciation expense was charged to business-type functions as follows: Utility 12,357,559$ Golf 561,674 Westminster Housing Authority 45,434 Total depreciation expense 12,964,667$

Capital Assets at December 31, 2015 were as follows:

During the year ended December 31,2015, the City recorded $527,059 of capitalized interest for the Utility Fund and $495 for the Golf Course Fund.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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The following is a summary of machinery and equipment purchased by capital lease with a liability outstanding as of December 31, 2015.

Leased Equpment Historical Cost Accumulated Depreciation Net Book Value

Governmental Activities 3,045,870$ (1,212,934)$ 1,832,936$ General Capital Outlay Replacement Fund 2,348,315 (666,112) 1,682,203 Golf Course Fund 1,194,284 (356,543) 837,741 Total 6,588,469$ (2,235,589)$ 4,352,880$

F. Disaggregation of Payables

Accounts Accrued Accrued TotalPayable Other Liabilities Interest Payables

Governmental Funds:General 1,563,533$ 5,716,690$ 388,823$ -$ 7,669,046$ GCIF 5,456,989 1,419,658 10,401 - 6,887,048 WEDA 64,420 20,003 2,402 - 86,825 Nonmajor govermental 73,908 - 3,837 1,225 78,970

Subtotal - Governmental Funds 7,158,850 7,156,351 405,463 1,225 14,721,889

Long-term liabilties susceptible to full accrual reporting

- - 19,987 877,013 897,000 Internal service funds 426,778 - 2,997 17,667 447,442

Total - Governmental Activities 7,585,628$ 7,156,351$ 428,447$ 895,905$ 16,066,331$

Business-type Activities:Utilities 6,569,740$ 397,147$ 75,699$ 192,232$ 7,234,818$ Nonmajor proprietary 57,784 3,240 20,099 27,170 108,293

Total - Business-type Activities 6,627,524$ 400,387$ 95,798$ 219,402$ 7,343,111$

Payables at December 31, 2015, were as follows:

Reconciliation of balances to government-wide financial statements:

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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G. Interfund Transfers

TRANSFERS OUT General Fund

General Capital

Improvement Fund

Westminster Economic

Development Authority

Nonmajor Governmental

Funds Golf Course

Fund Grand Total General Fund -$ 11,489,387$ 980,000$ 4,000,000$ -$ 16,469,387$

General Capital Improvement Fund - - 200,000 - 185,000 385,000 WEDA 653,011 1,190,990 - 1,844,001 Nonmajor Governmental Funds 69,951 565,905 59,582 3,764,117 250,371 4,709,926 Utility Fund 434,975 32,025 467,000 Grand Totals 1,157,937$ 13,246,282$ 1,239,582$ 7,796,142$ 435,371$ 23,875,314$

Reconciliation of Transfers between Governmental and Proprietary Funds:From the Utility Fund to the General Fund in lieu of taxes $ 434,975 From the Utility Fund to the Nonmajor Governmental Fund (Open Space Fund) in lieu of taxes 32,025 From the General Capital Improvement Fund to the Golf Course Fund for operating subsidies (185,000)

(250,371) Total transfers between Governmental and Business Type Activities Funds $ 31,629

Reconciliation of Transfers between Governmental and Business-type Activities31,629$

Reassignment of capital asset contributions between governmental and business-type activities (32,386) (757)$

Transfers between Governmental and Proprietary Funds

Transfer activity for the year ended December 31, 2015 was as follows:TRANSFERS IN

The matrix summarizes the City's interfund transfer activity. Most transfers between the General, General Capital Improvement, and Nonmajor Governmental Funds are routinely used to reallocate resources to fund City operations, capital construction, land purchases, debt service and governmental subsidies. In 2015, a transfer of $980,000 from the General Fund to the Westminster Economic Development Authority transpired to provide funding for the South Westminster urban renewal area and for the Downtown Westminster Project for funds associated with the aquisition of the JC Penny leasehold interest. Transfer activity between governmental and business-type funds is detailed below:

From the Nonmajor Governmental Fund (Open Space Fund) to the Golf Course Fund to assist with debt service obligations

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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47

H. Long-Term Liabilities Long-term liability activity for the year ended December 31, 2015 w as as follow s:

AmountsBeginning Ending Due WithinBalance Additions Reductions Balance One Year

Governmental Activities: Bonds, loans, leases and other payable: Revenue bonds 39,850,000$ 18,500,000$ (24,875,000)$ 33,475,000$ 6,105,000$ Tax increment bonds and loans 86,739,000 - (5,487,000) 81,252,000 5,683,000 Notes & Loans 1,612,724 - (453,000) 1,159,724 - Capital leases 54,725,665 40,577,946 (6,523,947) 88,779,664 6,663,640

182,927,389 59,077,946 (37,338,947) 204,666,388 18,451,640 Add: Bond premium 4,709,072 5,074,187 (969,187) 8,814,072 - Bond discount (149,311) (137,068) 16,825 (269,554) -

Total bonds, loans and leases payable 187,487,150 64,015,065 (38,291,309) 213,210,906 18,451,640

Other liabilities: Compensated absences 5,359,715 7,673,348 (7,748,187) 5,284,876 156,297 OPEB 198,391 158,912 (268,145) 89,158 - Total other liabilities 5,558,106 7,832,260 (8,016,332) 5,374,034 156,297

Governmental activities long-term liabilities 193,045,256$ 71,847,325$ (46,307,641)$ 218,584,940$ 18,607,937$

AmountsBeginning Ending Due WithinBalance Additions Reductions Balance One Year

Business-Type Activities: Bonds, notes and leases payable: Revenue bonds 29,505,000$ 4,610,000$ (1,910,000)$ 32,205,000$ 1,905,000$ Notes 17,957,768 - (2,754,305) 15,203,463 2,886,621 Capital leases 4,986,076 - (663,702) 4,322,374 675,383

52,448,844 4,610,000 (5,328,007) 51,730,837 5,467,004 Add: Bond/Notes premium 532,569 - (53,258) 479,311 - Bond discount (37,326) - 5,350 (31,976) -

Total bonds, notes and leases payable 52,944,087 4,610,000 (5,375,915) 52,178,172 5,467,004

Other liabilities: Compensated absenses 1,069,500 1,579,420 (1,544,022) 1,104,898 46,807 OPEB 242,521 33,923 (57,245) 219,199 - Pollution Remediation 338,375 307,642 (338,375) 307,642 100,000 Total other liabilities 1,650,396 1,920,985 (1,939,642) 1,631,739 146,807

Business-type activities long-term liabilities 54,594,483$ 6,530,985$ (7,315,557)$ 53,809,911$ 5,613,811$

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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CouponRevenue Bonds Purpose of Amount Amount Interest Final

Issue Issued Outstanding Rate Maturity

Sales and Use Tax Refunding Series 2001 Refunding/112th Ave Improvements 13,275,000$ 1,150,000$ 4.6-5.0% 12/01/21 Sales and Use Tax Revenue Series 2007A Refunding/Street Improvements 10,715,000 1,520,000 4.25% 12/01/16 Sales and Use Tax POST Series 2007B Refunding/Open Space Purchases 13,680,000 1,850,000 5.00% 12/01/16 Sales and Use Tax Refunding Series 2007C Refunding/Street Improvements 10,910,000 1,550,000 5.25% 12/01/16 Sales and Use Tax POST Series 2007D Open Space Purchases/Facility Improvements 20,000,000 960,000 4.00% 12/01/17 Sales and Use Tax Refunding Series 2010 Refunding/Street Improvements 10,545,000 7,945,000 3.0% - 5.0% 12/01/22 Sales and Use Tax Refunding Series 2015 Refunding/POST 2007D 18,500,000 18,500,000 2.0% - 5.0% 12/01/31 Total Governmental Activities 33,475,000

Water/Wastew ater Revenue Series 2010 Build America Bonds 29,505,000 28,030,000 3.695% - 5.818% 12/01/30 Stormw ater Revenue Series 2015 Stormw ater Bonds 4,610,000 4,175,000 1.35% 06/01/19 Total Business-type Activities 32,205,000

Total Revenue bonds 65,680,000$

Annual debt service requirements to maturity for revenue bonds are as follow s:

Year Principal Interest Total Year Principal Interest Total

2016 6,105,000$ 1,376,521$ 7,481,521$ 2016 1,905,000$ 1,483,875$ 3,388,875$ 2017 2,185,000 1,131,719 3,316,719 2017 3,185,000 1,414,461 4,599,461 2018 2,300,000 1,052,969 3,352,969 2018 2,650,000 1,334,612 3,984,612 2019 2,390,000 958,469 3,348,469 2019 2,685,000 1,252,073 3,937,073 2020 2,495,000 849,569 3,344,569 2020 1,675,000 1,170,753 2,845,753

2021-2025 8,720,000 2,892,394 11,612,394 2021-2025 9,195,000 4,593,110 13,788,110 2026-2030 7,585,000 1,144,514 8,729,514 2026-2030 10,910,000 1,950,775 12,860,775

2031 1,695,000 52,969 1,747,969 Total 32,205,000$ 13,199,659$ 45,404,659$

Total 33,475,000$ 9,459,124$ 42,934,124$

Tax Increment Bonds and Loans CouponPurpose of Amount Amount Interest Final

Outstanding Issue Issued Outstanding Rate Maturity

WEDA Revenue Refunding Bonds Series 2009 Westminster Plaza Redevelopment 5,330,000$ 1,410,000$ 3.800% 12/01/17 WEDA Revenue Refunding Bonds Series 2012 Mandalay Gardens Urban Renew al 28,900,000 23,515,000 4.000% 12/01/28 Total Tax Increment Bonds 24,925,000

WEDA Revenue Loan Series 2012 North Huron Urban Renew al 59,000,000 50,267,000 3.510% 12/01/28 WEDA Revenue Loan Series 2012 South Sheridan Urban Renew al 7,420,000 6,060,000 (1) 12/01/28 Total Tax Increment Loans 56,327,000

Total Governmental Activities 81,252,000$

Annual debt service requirements to maturity for tax increment bonds and loans are as follow s:

Year Principal Interest Total

2016 5,683,000$ 2,833,685$ 8,516,685$ 2017 5,857,000 2,692,638 8,549,638 2018 5,285,000 2,485,278 7,770,278 2019 5,473,000 2,300,082 7,773,082 2020 5,649,000 2,124,548 7,773,548

2021-2025 31,321,000 7,554,707 38,875,707 2026-2028 21,984,000 1,649,353 23,633,353

Total 81,252,000$ 21,640,291$ 102,892,291$

Long-term liability outstanding at December 31, 2015 w as as follow s:

Governmental Activities Business-type Activities

Governmental Activities

(1) The 2012 WEDA South Sheridan Loan has a f ixed interest rate for the f irst 5 years of the loan at 2.8%. Subsequent years' interest is variable based on 70% of applicable LIBOR rate based on period selected plus 2.25%.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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Capital Leases (2)Purpose of Amount Amount Interest Final

Issue Issued Outstanding Rate Maturity Capital lease 12 Energy Saving Equipment (05 refinance) 2,262,993$ 219,430$ 1.39% 10/15/16 Capital lease 12 Heavy Rescue Truck (10 refinance) 274,999 69,523 1.39% 01/31/17 Capital lease 12 Pumper Truck (10 refinance) 451,416 129,416 1.39% 10/15/17 Capital lease 10 Energy Saving Equipment 2,517,094 1,510,169 4.100% 04/01/21 Capital lease 11 Fire Ladder 683,383 305,551 2.18% 10/15/17 Capital lease 13 Fire Pumper 435,393 312,226 1.95% 01/15/20 Capital lease 15 Parks Equipment 577,946 438,349 1.94% 01/15/20 Capital lease - Broomfield/Westminster Foundation Metzger Farm Open Space 4,920,000 540,000 4.30% 12/01/16 Capital lease - Certificates of Participation 07 Refunding/Capital Facilities & Streets 32,210,000 18,815,000 4.0% - 5.0% 12/01/25 Capital lease - Certificates of Participation 10 Refunding/Public Safety & Golf Course Revenue 12,825,000 8,985,000 3.25% - 4.25% 12/01/22 Capital lease - Certificates of Participation 10 Ice Centre Refunding 9,950,000 6,620,000 3.0% - 4.5% 12/01/22 Capital lease - Certificates of Participation 13 144th & I-25 Interchange Refunding 11,095,000 10,835,000 2.0% - 4.0% 12/01/25 Capital lease - Certificates of Participation 15 A Westminster Downtown Nontaxable 30,000,000 30,000,000 4.0% - 5.0% 12/01/38 Capital lease - Certificates of Participation 15 B Westminster Downtown Taxable 10,000,000 10,000,000 1.54% - 3.72% 12/01/38 Total Governmental Activities 88,779,664

Golf Course capital lease 13 Golf Cart Joint Lease 484,283 187,121 2.40% 04/15/17 Golf Course capital lease 14 Golf Equipment Joint Lease 1,101,068 730,253 2.30% 01/15/19 Capital lease - Certificates of Participation 10 Refunding/Public Safety & Golf Course Revenue 4,820,000 3,405,000 3.25% - 4.25% 12/01/22 Total Business-type Activities 4,322,374

Total Capital Leases 93,102,038$

Annual debt service requirements to maturity for capital leases are as follows:

Year Principal Interest Total Year Principal Interest Total

2016 6,663,640$ 3,608,217$ 10,271,857$ 2016 675,383$ 140,976$ 816,359$ 2017 7,317,771 3,352,069 10,669,840 2017 633,562 119,108 752,670 2018 7,458,388 3,098,095 10,556,483 2018 589,591 98,789 688,380 2019 7,628,978 2,832,182 10,461,160 2019 608,838 82,393 691,231 2020 6,109,176 2,534,331 8,643,507 2020 430,000 65,450 495,450

2021-2025 25,626,711 9,476,012 35,102,723 2021-2022 1,385,000 107,563 1,492,563 2026-2030 8,755,000 5,758,000 14,513,000 Total 4,322,374$ 614,279$ 4,936,653$

2031-2035 11,165,000 3,340,250 14,505,250 2036-2038 8,055,000 652,800 8,707,800

Total 88,779,664$ 34,651,956$ 123,431,620$

CouponNotes & Loans Purpose of Amount Amount Interest Final

Issue Issued Outstanding Rate Maturity Note 12 CHF Shoenberg Farm Note 112,724$ 112,724$ 3.00% 01/01/17 Loan 12 Section 108 HUD Loan 1,500,000 1,047,000 (3) 08/01/32 Total Governmental Activities 1,159,724

Colorado Water Power Authority Note 97 Reclamation Facility 13,246,525 1,942,120 4.54% 06/01/17 Colorado Water Power Authority Note 98 Reclamation Facility 4,085,697 425,257 3.96% 06/01/17 Colorado Water Power Authority Note 00 Northwest Water Treatment Plant 14,998,357 4,277,087 4.40% 06/01/20 Colorado Water Power Authority Note 05 Big Dry Creek Wastewater Treatment Plant 15,440,000 8,450,000 3.32% 06/01/25 Rehfeld Note Purchase of water shares 180,000 108,999 4.00% 03/31/23 Total Business-type Activities 15,203,463

Total Notes and Loans 16,363,187$

Annual debt service requirements to maturity for notes are as follows:

Year Principal Interest Total Year Principal Interest Total

2016 -$ 18,565$ 18,565$ 2016 2,886,621$ 704,612$ 3,591,233$ 2017 112,724 16,874 129,598 2017 2,881,314 577,920 3,459,234 2018 - 15,183 15,183 2018 1,789,029 462,290 2,251,319 2019 - 15,183 15,183 2019 1,875,017 372,104 2,247,121 2020 - 15,183 15,183 2020 1,411,556 279,353 1,690,909

2021-2025 - 75,915 75,915 2021-2025 4,359,926 738,146 5,098,072 2026-2030 447,000 69,903 516,903 Total 15,203,463$ 3,134,425$ 18,337,888$

2031-2032 600,000 10,589 610,589 Total 1,159,724$ 237,395$ 1,397,119$

rate paid was 1.0122%. The Community Development Block Grant allocation is pledged as security for repayment of this note in the event of a default on the note.(3) The 2012 Section 108 Housing and Urban Development Loan has variable interest based on 3 month LIBOR plus 0.20% as of the reset date. As of 12/31/2015 the total

Business-type ActivitiesGovernmental Activities

Governmental Activities Business-type Activities

(2) Specific assets are pledged as collateral for all capital leases.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

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50

I. Net Position The government-wide and business-type financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted. Net Investment in Capital Assets is intended to reflect the portion of net position which is associated with non-liquid, capital assets less outstanding capital asset related debt. The net related debt is the debt less the outstanding liquid assets and any associated unamortized cost. Restricted Net Position is liquid assets which have third-party limitations on their use. Restricted net position is reported by major category, which includes emergencies; capital projects; open space conservation and improvements; and debt service. Nonmajor categories have been aggregated as restricted for other purposes. Unrestricted Net Position represents assets that do not have any third party limitations on their use. While City management may have categorized and segmented portions for various purposes, the City Council has the unrestricted authority to revisit or alter these managerial decisions. Net Investment in Capital Assets at December 31, 2015 was as follows:

Capital Assets: 406,742,169$

Related Debt:

Issue Amount

Outstanding

Premiums(Discounts and

Deferred Loss on Refunding)

Total Capital Related Debt

Less Unspent Proceeds

Net CapitalRelated Debt

Sales and Use Tax Refunding Series 2001 1,150,000$ (2,262)$ 1,147,738$ -$ 1,147,738$ Sales and Use Tax Revenue Series 2007A 1,520,000 11,031 1,531,031 - 1,531,031 Sales and Use Tax POST Series 2007B 1,850,000 20,354 1,870,354 - 1,870,354 Sales and Use Tax Refunding Series 2007C 1,550,000 (4,530) 1,545,470 - 1,545,470 Sales and Use Tax POST Series 2007D 960,000 13,222 973,222 - 973,222 Sales and Use Tax Refunding Series 2010 7,945,000 161,077 8,106,077 - 8,106,077 Sales and Use Tax Refunding Series 2010 "B interest coupons" - (3,616) (3,616) - (3,616) Sales and Use Tax Refunding Series 2015 18,500,000 893,797 19,393,797 19,393,797 WEDA Revenue Refunding Bonds Series 2012 (Mandalay Gardens) 23,515,000 652,219 24,167,219 24,167,219 WEDA Revenue Loan Series 2012 (North Huron) 50,267,000 (594,181) 49,672,819 - 49,672,819 WEDA Revenue Loan Series 2012 (South Sheridan) 6,060,000 (185,587) 5,874,413 - 5,874,413 Notes, Loans & Capital Lease 89,939,388 2,105,338 92,044,726 39,635,846 52,408,880 Accounts payable incurred for capital asset purchases 6,328,677 - 6,328,677 - 6,328,677

Total Governmental Activities * 209,585,065$ 3,066,862$ 212,651,927$ 39,635,846$ 173,016,081

Net investment in capital assets, governmental activities 233,726,088

Business-type activities:Capital Assets: 427,339,994

Related Debt:

Issue Amount

Outstanding

Premiums(Discounts and

Deferred Loss on Refunding)

Total Capital Related Debt

Less Unspent Proceeds

Net CapitalRelated Debt

Water/Wastewater Revenue Series 2010 28,030,000$ -$ 28,030,000$ 1,476,442$ 26,553,558$ Stormwater Revenue Series 2015 4,175,000 - 4,175,000 3,791,254 383,746 Certificates of Participation 10 (Golf Course Portion) 3,405,000 36,200 3,441,200 - 3,441,200 Water Notes 15,203,463 378,000 15,581,463 - 15,581,463 Capital Leases 917,374 - 917,374 - 917,374

Accounts payable incurred for capital asset purchases 5,346,837 - 5,346,837 - 5,346,837

Total Business Type Activities 57,077,674$ 414,200$ 57,491,874$ 5,267,696$ 52,224,178

Net investment in capital assets, business-type activities 375,115,816

Total net investment in capital assets 608,841,904$

Governmental activities:

* The 2009 WEDA debt was not used for capital purposes and therefore is not included in the calculation of net investment in capital assets, governmental activities.

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J. Pledged Revenues

The City has pledged a portion of future sales and use tax and property tax revenues to repay sales and use tax revenue bonds as follows:

$13,275,000 issued in 2001 to refund the Series 1991 refunding and improvement bonds originally issued to finance capital improvements.

$10,715,000 issued in March 2007 to provide new funding for street improvements and to refund certain of the City’s outstanding Series 1997A sales and use tax revenue refunding and improvement bonds, originally issued to refund certain outstanding 1992A sales and use tax revenue bonds, originally issued for capital improvements.

$13,680,000 issued in March 2007 to refund certain of the City’s outstanding series 1997B sales and use tax revenue bonds originally issued for public improvements.

$10,910,000 issued in October 2007 to provide new funding for street improvements and to refund certain of the City’s outstanding Series 1997A sales and use tax revenue refunding and improvement bonds.

$20,000,000 issued in December 2007 to finance the acquisition, development, enhancement, and maintenance of open space and parkland throughout the City.

$10,545,000 issued in July 2010 to refund certain of the City’s outstanding series 2001 and 2002 sales and use tax revenue refunding and improvement bonds, originally issued to finance capital improvements.

$18,500,000 issued in December 2015 to refund certain of the City’s outstanding series 2007 sales and use tax revenue refunding and improvement bonds, originally issued to finance open space and parkland.

These bonds are payable solely from sales and use tax revenue collections. Current year, principal and interest of $7,699,233 were paid from sales and use tax revenue totaling $74,322,710. Total principal and interest payments remaining on the bonds is $42,934,124 payable through December 2035. The Westminster Economic Development Authority has pledged a portion of future sales and property tax revenues to repay tax increment revenue refunding bonds and loans, as follows:

$5,330,000 issued in 2009 as tax increment revenue refunding bonds to refund the Series 1997 used to finance the redevelopment in the South Westminster Urban Renewal Area.

$28,900,000 issued in 2012 as tax increment revenue refunding bonds to refund the Series 2009 tax increment adjustable rate revenue refunding bonds that refunded an earlier Series used to finance redevelopment in the Mandalay Gardens Urban Renewal Area.

$59,000,000 issued in 2012 to refinance the 2009 loan that refunded the Series 2005 tax increment adjustable rate revenue bonds used to finance new development in the North Huron Urban Renewal Area.

$7,420,000 issued in 2012 to refinance the 2009 loan that refinanced the Series 2007 tax increment adjustable rate revenue bonds used to finance redevelopment in the South Sheridan Urban Renewal Area.

Tax increment revenue bonds and loans are payable from incremental sales taxes and property taxes generated by increases above the base value of retail sales and assessed valuation in the urban renewal area plus interest earnings. Principal, interest and fees of $8,506,668 reported in the WEDA statements were paid using 96% of incremental net pledged revenues plus prior year revenues for a total of $9,291,124. Total principal and interest remaining on the bonds and loans is $102,892,291, payable through December 2028. The Utility Enterprise has pledged future water, waste water and storm water revenues, excluding any special assessments and net of specified operating expenses, to repay: Colorado Water Resource and Power Development Authority Notes:

$13,246,525 issued in May 1997 to construct a Reclamation Facility $4,085,697 issued in April 1998 to construct a Reclamation Facility

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$14,998,357 issued in April 2000 to construct the Northwest Water Treatment Facility $15,440,000 issued in May 2005 to expand the Big Dry Creek Treatment Facility

Revenue Bonds:

$20,990,000 issued in December 2001 to refund 1992 and 1994 General Obligation bonds, paid off in the current year

$29,505,000 issued in May 2010 to acquire and develop improvements to the System throughout the City.

$4,610,000 issued in January 2015 to improve the Stormwater system. The revenue bonds and notes are payable from water, waste water and storm water pledged net revenues. Principal, interest and fees of $7,005,879 reported in the Utility statements were paid using 22% of pledged net revenues totaling $31,798,765. Total principal and interest remaining on the revenue bonds and loans is $63,742,548, payable through December 2030. K. Moral Obligation Pledge The City has entered into moral obligations with the following WEDA borrowings: Revenue Refunding Bonds Series 2012 (Mandalay Gardens Urban Renewal), Revenue Loan Series 2012 (North Huron), and Revenue Loan Series 2012 (South Sheridan) with an aggregate balance of $81,252,000 outstanding as of December 31, 2015. A moral obligation is a pledge by the City Manager to request of Council that the City replenish the Reserve Fund associated with this debt to the minimum required per the bond indenture or loan document should it become necessary. Council will consider, but is not obligated to fulfill this request. L. Defeased Debt In the current year, the City defeased certain revenue bonds by placing the proceeds of the refunding bonds and available cash in an irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City’s financial statements. As of December 31, 2015, $19,040,000 of the defeased Special Purpose Sales and Use Tax Bonds, Series 2007 remains outstanding.

M. Disaggregation of Deferred Outflows/Inflows of Resources

Charges on refunding debt Pensions Total

Governmental Fund Activities: -$ -$ -$

5,508,479 1,191,016 6,699,495

Total - Governmental Activities 5,508,479 1,191,016 6,699,495

Business-type Activities:Golf Course 33,133 - 33,133

Total - Business-type Activities: 33,133 - 33,133

Total Government-wide Activities 5,541,612$ 1,191,016$ 6,732,628$

Property taxes Pensions Grants AssessmentsNotes and

Leases Other Total

Governmental Fund Activities:General 4,787,910$ -$ 2,179$ -$ 3,310,000$ 816,458$ 8,916,547$ GCIF - - 1,635,889 194,847 - - 1,830,736 WEDA 11,596,335 - - - - 321,235 11,917,570 Other Governmental 287,562 - 185,121 - - - 472,683 Subtotal 16,671,807 1,823,189 194,847 3,310,000 1,137,693 23,137,536

- 48,717 (1,823,189) - (3,310,000) (1,137,693) (6,222,165)

Total - Governmental Activities 16,671,807$ 48,717$ -$ 194,847$ -$ -$ 16,915,371$

Reconciliation of balances in fund financial statements to government-wide financial statements

Deferred Outflows of Resourcesas of December 31, 2015

Deferred Inflows of Resources

Reconciliation of balances in fund financial statements to government-wide financial statements

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NOTE 3 - OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts; employee injury on the job; theft of, damage to and destruction of assets; errors and omissions; and natural disaster for which the City carries excess insurance. The City self-funds the deductible portion of all claims. There were no reductions in insurance coverage from 2014 to 2015. The City has not had any settlements during the last three fiscal years that exceeded insurance coverage. Medical and Dental Self-Insurance Internal Service Fund The City established a dental plan effective January 1, 1984. The purpose of this plan is to pay the dental claims of eligible City employees and their covered dependents. The City has an Administrative Service Only plan with Cigna, whereby the City pays Cigna a separate amount for administrative costs and claim servicing fees. The City agrees to provide funding for the payment of claims. At the end of the year, the City retains any money not spent on claims. The City provides a specific stop loss of $150,000 per individual per year. This Open Access Plus plan has an unlimited lifetime benefit. The City has recorded a liability in this fund totaling $1,018,041 for open and estimated claims not yet reported at December 31, 2015. The City also offers a fully insured HMO plan through Kaiser Permanente which has unlimited lifetime benefits. Workers’ Compensation Self-Insurance Internal Service Fund The City established a self-insured program for workers’ compensation claims effective January 1, 1986. The purpose of this program is to pay workers’ compensation claims of City employees and to reduce total annual workers’ compensation costs to the City. As of April 1, 2015, the program covers individual losses up to $500,000 per claim. Greater individual losses are covered by an excess insurance policy with statutory limits per occurrence purchased from an outside company. The City has recorded a liability totaling $298,334 for open claims and estimated claims not yet reported at December 31, 2015. Property and Liability Self-Insurance Internal Service Fund The City established a program for property and liability claims effective January 1, 1988. The purpose of this program is to pay property and liability claims against the City and to reduce total annual insurance coverage cost to the City. The program covers individual losses up to $250,000 per claim. Greater individual losses are covered through a risk sharing pool for Colorado municipalities. Property losses are insured through the pool for the total insured value of all property owned by the city up to a maximum shared pool total of $500,500,000. State liability losses are limited as set forth by statutory liability limits for Colorado public jurisdictions up to $150,000 per person and $600,000 per occurrence for claims occurring prior to June 30, 2013. Effective July 1, 2013, the Colorado state legislature increased the limits to $350,000 per person and $990,000 per occurrence. Through the pool, the City also carries excess liability coverage that covers the City for federal acts and out-of-state claims in excess of the self-insured deductible limits. In addition to property insurance including boiler and machinery, the program covers automobile liability, general liability, police professional, errors and omissions, crime and fiduciary liability. Liabilities are reported when a claim is made against the City. The City has recorded a liability totaling $490,269 for open claims at December 31, 2015. Changes in the balances of claim liabilities for all plans follow:

Beginning Balance Cumulative Ending BalanceYear Unpaid Claims Incurred Claims Claim Payments Unpaid Claims

2014 939,391$ 8,029,357$ 7,851,607$ 1,117,141$ 2015 1,117,141 10,965,166 10,275,663 1,806,644

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B. Public Entity Risk Pools The Colorado Intergovernmental Risk Sharing Agency (“CIRSA”) was formed by an intergovernmental agreement by member municipalities pursuant to the provisions of regulation 24-10-115.5, C.R.S. (1982 Repl. Vol.), as amended, 29-1-201 et seq., C.R.S. (1977 Repl. Vol.), as amended, 29-13-102, C.R.S. (1977 Repl. Vol.), as amended, and Colorado Constitution, Article XIV, Section 18(2). Membership is restricted to Colorado municipalities, which are members of the Colorado Municipal League. The City only participates in the property and liability coverage of the pool and does not participate in the worker’s compensation coverage. As of December 31, 2015, there were 255 member municipalities and 36 Affiliated Public Entities, including the City of Westminster, in the property and casualty pool. The purpose of CIRSA is to provide members defined liability and property coverage and to assist members in preventing and reducing losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees or officers. CIRSA provides insurance coverage for property, liability, fiduciary, crime, police professional, and errors and omissions. The deductible amount paid by the City per each incident in 2015 was $250,000 for property and $250,000 for liability. Coverages are as follows: 1) Property/excess property: total insured value for City property up to the $500,500,000 pool limit. 2) General liability (claims subject to the Governmental Immunity Act): to $150,000 per person and $600,000

per occurrence prior to June 30, 2013 then $350,000 per person and $990,000 per occurrence. (Claims not subject to Governmental Immunity Act up to $5,000,000 limit)

3) Auto liability (claims not subject to the Governmental Immunity Act): to $5,000,000 per occurrence. 4) Excess law enforcement liability and public officials’ errors and omissions liability coverage to $5,000,000. 5) Crime: to $150,000 any one claim and annual aggregate. 6) Supplemental defense costs (claims subject to the Governmental Immunity Act): to $50,000 per

claim/occurrence. 7) Excess crime to $2,000,000 any one claim and annual aggregate. Coverage is provided through pooling of self-insured losses and the purchase of excess insurance coverage. CIRSA has a legal obligation for claims against its members to the extent that funds are available from insurance providers and under excess specific and aggregate insurance contracts. Losses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members. CIRSA has indicated that the amount of any excess losses would be billed to members in proportion to their contributions in the year such excess occurs although it is not legally required to do so. It is the intent of the members of CIRSA to create an entity in perpetuity, which will administer and use funds contributed by the members to indemnify, in accordance with the Bylaws, any member of CIRSA against stated liability or loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverage at reasonable costs. All income and assets of CIRSA are dedicated to the exclusive benefit of its members. The Bylaws constitute the substance of the intergovernmental contract among the members. Continued membership in CIRSA must be periodically approved by the City Council. The Board of Directors, which is elected by the membership for four-year terms, governs CIRSA. All actions of the membership require a two-thirds vote of the members present at a meeting. C. Contingent Liabilities Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. City Council and the WEDA Board have approved Economic Development Assistance packages as part of an active Economic Development program. As a result of these packages, the City will rebate certain future incremental revenues as outlined in the agreements.

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Various suits and claims are pending against the City as of December 31, 2015. Although the outcome of such suits and claims cannot be predicted with certainty, the City believes that adequate insurance coverage exists and that the final settlements of these matters will not materially affect the financial statements of the City. D. Construction and Other Significant Commitments At December 31, 2015, the City had commitments for the acquisition and construction of various major capital projects and facilities in the capital projects and enterprise funds as shown below. Funding of these future expenditures for the capital projects funds has been provided for through investment earnings; operating transfers from the General; Sales & Use Tax; Parks, Open Space & Trails Sales & Use Tax; Conservation Trust funds; sales and use tax revenue bond proceeds; tax increment variable rate bond proceeds; Community Development Block Grants and Section 108 Loan Guarantee proceeds, and various other grants. Funding of these future expenditures in the Utility Fund has been provided for through water and wastewater rates and tap fees, as well as bond proceeds. Funding for future expenditures in the General Capital Outlay Replacement Fund are provided for through charges for services and periodic transfers from the General and Sales and Use Tax funds.

Cumulative AuthorizedAppropriation Expenditures Available12/31/2015 12/31/2015 12/31/2015

Governmental activites:General Capital Improvement Fund 110,402,186$ 27,645,269$ 82,756,917$ Westminster Economic Development Authority 2,448,119 856,366 1,591,753 Nonmajor Governmental activities 2,021,972 39,970 1,982,002

General Capital Outlay Replacement Fund 3,959,730 - 3,959,730 Total Governmental activities 118,832,007$ 28,541,605$ 90,290,402$

Business-type activitiesUtility Fund 57,199,097$ 12,052,462$ 45,146,635$ Nonmajor Business-type activities 866,769 31,581 835,188

Total Business-type activities 58,065,866$ 12,084,043$ 45,981,823$

E. Denver Water Raw Water Contract The City has the right to perpetually purchase up to 4,500 acre-feet of Moffat Collection System raw water annually from Denver Water. Permitted deliveries vary from month-to-month and peak during the summer months. By contract the City is obligated to take or pay for 1,750 acre-feet of water during the contract period, which runs from July 1 to June 30. The 2015 rate charged by Denver Water was $0.96 per thousand gallons, or $312.82 per acre-foot (there are 325,851 gallons in one acre-foot). In 2015, the City first paid Denver Water $339,092 for approximately 1,084 acre-feet of water that was the balance of the 1,750 acre-feet for the July 1, 2014 through June 30, 2015 contract period. Then during the subsequent delivery season that started July 1, 2015, Denver Water delivered 1,744 acre-feet to the City through December 31, 2015 and the City paid Denver Water $545,551 for this water. Thus, the 2015 calendar year total cost for the contract was $884,643. The entire 1,750 acre-feet was not taken as of December 31, 2015, but may be taken before June 30, 2016. F. Perpetual Agreement In December 2003, the City amended its perpetual water rights lease exchange contract dated January 7, 1982 with the City of Thornton. The amended contract provides that Westminster could perpetually lease from Thornton 2.0 million gallons per day of treated water with the option to increase or decrease this amount by 10%. The rate from January 1, 2015 through April 30, 2015 was $3.48 per thousand gallons, for a cost of $754,499. From May 1, 2015 through December 31, 2015, the rate increased to $4.06 per thousand gallons, for a cost of $1,754,773. At

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those rates, the 2015 total cost of the lease was $2,509,272. In 2009, the City of Westminster signed an agreement with the City of Brighton that states Brighton will take the full amount of water, up to 2.2 million gallons, and reimburse the City of Westminster its payment to Thornton. All future rate increases will be passed through in a similar fashion, and Brighton will have all responsibility for the lease. G. Employee Defined Contribution Retirement Plans General Information about the City of Westminster Defined Contribution Pension Plans Description of the Plans. The City provides pension benefits through two defined contribution 401A pension plans for all of its regular full-time employees and part-time employees who work at least 20 hours per week and are over age 18. The Police Plan includes Police Officers and the General Employee Plan includes all other employees, the details of which are discussed below. The City also provides pension benefits through a third plan, the Statewide Money Purchase Plan, which is discussed in Note 3I. Both employee plans are established by separate ordinances as single-employer, defined contribution plans, qualified under IRS guidelines. When employees change job status, their account balance is moved from their old plan to the appropriate new plan through a transfer. The City does not participate in Social Security. Long-term disability and death benefits are provided as employee benefits apart from the Pension Plans. The Plans’ provisions and requirements are established by Municipal Ordinance and determined to be a qualified Pension Plan by the Internal Revenue Service. The Plans’ Ordinances grant the Pension Board members and Trustee the authority to administer, interpret, and apply the requirements of the Plans’ documents. Any changes to the Plans’ Documents are subject to City Council approval and require Internal Revenue Service determination of qualification. Eligible employees must participate from the date of employment. Benefits Provided In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings less any administrative costs. Earnings differ between participants in Westminster’s plans because investments are self-directed; from eligible options, participants choose where to invest contributions to their account. Investment options are selected by the pension boards. Contributions and Vesting Contributions and plan provisions of the two plans are the same. The mandatory employee contribution is 10% of base pay. Employees may elect to contribute in excess of the mandatory contribution. Voluntary contributions may be made on an after tax basis. The City contributes 10.25% of each employee’s base pay beginning when the employee has completed 22 months of service with the City. The City has no other obligations to fund any employee pension plan. All contributions and earnings are fully vested at all times. All administrative costs of the plans are borne by the participants of each plan. Administrative costs and fees charged by fund managers, are netted against earnings and allocated to the two plans based on either the dollars in the plan or the number of participants in the plan, depending on the type of expense. No plan administration is performed by the City of Westminster other than transmitting contributions to the identified employee accounts. The Charles Schwab Corporation provides administration for the plans and assists employees with their self-directed investments. Summary of Contributions For the year ended December 31, 2015, contributions made to the two plans equaled required contributions and were as follows:

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2015Police Pension Plan

City Contributions 1,317,674$ Mandatory employee contributions 1,397,938 Voluntary employee contributions 7,497 Rollover contribution 135,004

General Pension Plan City contributions 3,420,464 Mandatory employee contributions 3,911,512 Voluntary employee contributions 46,273 Rollover contribution 597,874

Total 10,834,236$

H. Deferred Compensation Plans General Information about the Deferred Compensation Plans Plan Description Employees may voluntarily participate in the 457(b) Deferred Compensation Plan. The Plan permits participants to defer a portion of their salary until future years or contribute on an after-tax basis. A wide array of investment options is available through the Plan. The Plan uses a third-party administrator, Empower Retirement, and all costs of administration are borne by the Plan participants. The Deferred Compensation Committee is responsible for the formation, adoption, and enforcement of the rules and regulations pertinent to the operation of the Plan. Amounts deferred under the Plan are not available to employees until termination, retirement, death or unforeseeable emergency. All seasonal, temporary, and non-benefited employees must participate from the date of employment in the 457(b) FICA Alternative Deferred Compensation Plan. This plan is a Social Security replacement feature under the Internal Revenue Code Section 3121. Employees contribute a mandatory 7.5% of compensation that is invested into a fixed income account. No other investment options are available in this Plan. Benefits Provided In a deferred compensation plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Earnings differ between participants in Westminster’s deferred compensation plans because investments are self-directed; from eligible options, participants choose where to invest contributions to their account. Investment options are selected by the Deferred Compensation Committee. Contributions into the 457(b) plans are funded by participant contributions of up to a maximum limit set by the IRS of $18,000 for the calendar year 2015. Catch-up contributions up to $6,000 for calendar year 2015 were allowed for participants who had attained age 50 before the end of the year, subject to the limitation of IRC §414(v). Total participant contributions into the 457(b) Deferred Compensation Plan were $3,150,324 and into the 457(b) FICA Alternative Deferred Compensation Plan were $273,668. The City matches up to 12.5% for City Council members only. City Council is required to contribute at least 7.5. The expense recorded by the City for the match of City Council members was $106,669. All contributions and earnings are fully vested at all times. All administrative costs of the plans are borne by the participants of each plan. Administrative costs and fees charged by fund managers, are netted against earnings and allocated to the two plans based on either the dollars in the plan or the number of participants in the plan, depending on the type of expense.

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I. Fire and Police Pension Plan (FPPA) The Fire and Police Pension Association of Colorado (FPPA) administers a statewide multiple-employer public employee retirement system providing defined benefit plan coverage for police officers and firefighters throughout the State of Colorado. The Affiliated Local Plans are plans for which FPPA has been asked to and has undertaken investment and recordkeeping responsibility, but are not plans for which FPPA has determined or set the benefits or set the funding policy. Volunteer Plans that have chosen to affiliate with FPPA for investment and administrative purposes are still governed by their local plan document or by the Colorado statutes and local pension board, each has a separate actuarial valuation completed every two years. Net pension liability (asset) is the difference between the total pension liability and the fiduciary net position as of the measurement date. If the fiduciary net position exceeds the total pension liability as of the measurement date, there is a net pension asset. Deferred inflows of resources and deferred outflows of resources are the amounts that are required to be deferred and recognized in subsequent periods. Deferred outflows of resources are reported on the statement of net position or balance sheet below assets, while deferred inflows are reported below liabilities. These amounts refer to items that are not yet recognized in the net pension asset or pension expense and include:

Differences between expected and actual plan experience Changes in actuarial assumptions Differences between projected and actual investment earnings Employer contributions made subsequent to the measurement date through the fiscal year end

Deferred outflows of resources and deferred inflows of resources will be recognized as follows:

Differences in plan experience and changes in assumptions will be amortized over the remaining service lives of current and former employees, and retirees.

The differences between expected and actual investment earnings will be amortized over a five-year period.

Contributions made subsequent to the measurement date will be recognized as a reduction (increase) of the net pension liability (asset) in the subsequent year.

The following table summarizes each of the City’s FPPA plans and the respective pension activity recorded in the financials.

PlanNet Pension

Asset

Deferred Outlfows of Resources

Deferred Inflows of

ResourcesPension Expense

FPPA SWDB 2,364,925$ 1,006,978$ 48,717$ 126,828$ FPPA SWH 565,544 171,102 - (40,658) Volunteer Firefighter 860,228 12,936 - (47,912) Totals 3,790,697$ 1,191,016$ 48,717$ 38,258$

Statewide Defined Benefit Plan

General Information about the Statewide Defined Benefit Pension Plan Plan description. Effective September 1, 2004, the City began contributing to the Statewide Defined Benefit Plan (SWDB) a cost-sharing multiple-employer defined benefit pension plan administered by the FPPA. The SWDB provides retirement benefits for members and beneficiaries. Death and disability coverage is provided for members through the Statewide Death and Disability Plan, which is also administered by FPPA. All full-time, paid firefighters of the City are members of the SWDB and the Statewide Death and Disability Plan.

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Colorado statutes assign the authority to establish benefit provisions to the state legislature. FPPA issues a publicly available comprehensive annual financial report that include financial statements and required supplementary information for both the SWDB and the Statewide Death and Disability Plan. That report may be obtained by calling FPPA at 303-770-3772 or on FPPA’s website at http://www.fppaco.org. Benefits provided. A member is eligible for a normal retirement pension once the member has completed twenty-five years of credited service and has attained the age of 55. The annual normal retirement benefit is 2 percent of the average of the member’s highest three years’ base salary for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter. Benefits paid to retired members are evaluated and may be re-determined every October 1. The amount of any cost of living adjustment (COLA) is based on the Board’s discretion and can range from 0 to the higher of 3 percent or the Consumer Price Index. A member is eligible for an early retirement at age 50 or after 30 years of service. The early retirement benefit equals the normal retirement benefit reduced on an actuarially equivalent basis. Upon termination, an employee may elect to have member contributions, along with 5 percent as interest, returned as a lump sum distribution. Alternatively, a member with at least five years of accredited service may leave contributions with the Plan and remain eligible for a retirement pension at age 55 equal to 2 percent of the member’s average highest three years’ base salary for each year of credited service up to ten years, plus 2.5 percent for each year of service thereafter. Contributions. The Board sets contribution rates at a level that enable all benefits to be fully funded at the retirement date of all members based on current actuarial assumptions. Contribution rates for the SWDB plan are set by state statute. Employer contribution rates can only be amended by state statute. Member contribution rates can be amended by state statute or election of the membership. Members of the SWDB plan and the City are contributing at the rate of 8.5 and 8.0 percent, respectively, of base salary for a total contribution rate of 16.5 percent for 2015. Member contribution rates are scheduled to increase 0.5 percent annually through 2022 to a total of 12 percent of base salary. Employer contributions are scheduled to remain at 8 percent resulting in a combined contribution rate of 20 percent in 2022. Contributions from members and employers of departments re-entering the system are established by resolution and approved by the FPPA Board of Directors. The re-entry group has a combined contribution rate of 20.5 percent of base salary for 2015. The members pay the additional 4 percent contribution. The re-entry group are scheduled to have their required member contribution rate increase 0.5 percent annually beginning in 2015 through 2022 for a total combined member and employer contribution rate of 24 percent in 2022. Prior to 1997, the State of Colorado made a one-time contribution to fund future service costs for all firefighters hired prior to January 1, 1997. These members do not make contributions to the Statewide Death and Disability Plan. Aggregate contributions totaling 2.6 percent of payroll were made to the Statewide Death and Disability Plan in 2011 for firefighters hired on or after January 1, 1997, of which 1.8 percent and 0.8 percent were funded by the City and Plan members, respectively through October 31, 2011. Beginning November 1, 2011, the contribution of 2.6 percent changed. In 2015, 1.04 percent and 0.56 percent were funded by the City and plan members, respectively. The contribution rate may vary from year to year, depending on actuarial experience. Total contributions to the SWDB from the City were $798,048 for the year ended December 31, 2015. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2015, the City reported an asset of $2,364,925 for its proportionate share of the net pension asset. The net pension asset was measured as of December 31, 2014, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of that same date. The City’s proportion of the net pension asset was based on a projection of the City’s share of contributions to the pension plan relative to the contributions of all participating employers and the State. At December 31, 2014, the City’s

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proportion was 2.095 percent, which was a decrease of 0.0280 percent from its proportion measured as of December 31, 2013. For the year ended December 31, 2015, the City recognized pension expense of $126,828. At December 31, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following resources:

$798,048 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as an increase in the net pension asset in the year ending December 31, 2016. The following table presents the City’s other deferred inflows and outflows of resources related to pensions that will be recognized in the pension expense for each of the subsequent five years and in the aggregate thereafter:

Year Ended

December 31,

Amounts Recognized in

Pension Expense

2016 43,865$                                          

2017 43,865                                             

2018 43,865                                             

2019 43,865                                             

2020 (2,751)                                             

Thereafter (12,496)                                           

Total 160,213$                                        

Actuarial assumptions. The December 31, 2014 actuarial valuation used the following actuarial assumption and other inputs:

Actuarial Method Entry Age Normal

Amortization Method Level % of Payroll, Open

Amortization Period 30 Years

Asset Valuation Method 5-Year Smoothed Fair Value

Long-term Investment Rate of Return*

7.5%

Projected Salary Increases 4.0% - 14.0%

Cost of Living Adjustments (COLA) 0.0%

*Includes Inflation at 3.0%

The RP-2000 Combined Mortality Table with Blue Collar Adjustment, projected with Scale AA, 40 percent multiplier for off-duty mortality is used in the valuation for off-duty mortality of active members. On-duty related mortality is assumed to be 0.00020 per year for all members. The RP-2000 Combined Mortality Table with Blue Collar Adjustment, projected with Scale AA is used in the projection of post-retirement benefits.

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Difference between expected and actual experience ‐$                               48,717$                      

Change of assumptions ‐                                 ‐                               

Net difference between projected and actual earnings on pension plan investments 186,462                        ‐                               

Changes in proportion and differences between City's contributions and proportionate

share of contributions 22,468                          ‐                               

City contributions subsequent to the measurement date 798,048                       

Total 1,006,978$                  48,717$                      

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Changes of assumptions. At least every five years the Fire & Police Pension Association’s Board of Directors, in accordance with best practices, reviews its economic and demographic actuarial assumptions. Effective with the December 31, 2012 valuations, the Board adopted a five-year smoothing methodology in the determination of the actuarial value of assets. Beginning in the December 31, 2013 valuations, the married assumption for active members was increased from 80% to 85% to reflect the passage of the Colorado Civil Union Act. Changes in benefit terms. A 0.61 percent benefit adjustment was granted to all retirees and beneficiaries of the FPPA plan who retired on or before October 1, 2014. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2014 are summarized in the following table:

Asset Class

Target

Allocation

Long-Term Expected

Real Rate of Return

Global Equity 40.0% 8.9%

Equity Long/Short

10.0% 7.5%

Illiquid Alternatives

18.0% 10.5%

Fixed Income 15.0% 4.6%

Absolute Return 12.0% 6.5%

Managed Futures 4.0% 5.5%

Cash 1.0% 2.5%

Total 100%

Discount Rate. The discount rate used to measure the total pension liability was 7.50 percent. The discount rate was based on the long-term expected rate of return on pension plan investments of 7.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates used to determine the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the SWDB plan’s fiduciary net position was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s proportionate share of the net pension liability (asset) to changes in the discount rate. The following presents the City’s proportionate share of the net pension liability (asset) calculated using a single discount rate of 7.50 percent, as well as what the City’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate:

1% Decrease (6.50%)

Discount Rate

(7.50%)

1% Increase (8.50%)

City’s proportionate share of the net pension liability (asset)

$2,229,677

$(2,364,925)

$(6,197,425)

Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued FPPA financial report.

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Fire and Police Pension Plan (FPPA) –Statewide Hybrid Plan

General Information about the Statewide Hybrid Plan Plan description. Effective September 1, 2004, the City began contributing to the Statewide Hybrid Plan (SWH), a cost-sharing multiple-employer defined benefit pension plan administered by the FPPA. The SWH provides retirement benefits for members and beneficiaries. Death and disability coverage is provided for members through the Statewide Death and Disability Plan, which is also administered by FPPA. All full-time, paid firefighters employed as of September 1, 2004 either joined the SWDB or the Statewide Hybrid Plan (SWH). The SWH is comprised of two components: Defined Benefit and Money Purchase. Colorado statutes assign the authority to establish benefit provisions to the state legislature. FPPA issues a publicly available comprehensive annual financial report that include financial statements and required supplementary information for both the Statewide Hybrid Plan and the Statewide Death and Disability Plan. That report may be obtained by calling FPPA at 303-770-3772 in the Denver Metro area and 1-800-332-FPPA (3772) from outside the metro area or on FPPA’s website at http://www.fppaco.org. Benefits provided. The Plan document states that any member may retire and become eligible for a normal retirement pension at any time after age 55, if the member has at least 25 years of service. The annual normal pension of the Defined Benefit Component is 1.5 percent of the average of the member’s highest three years’ base salary for each year of credited service. Benefits paid to retired members of the Defined Benefit Component are evaluated and may be re-determined annually on October 1. The amount of any increase is based on the Board’s discretion and can range from 0 to 3 percent. A member is eligible for early retirement at age 50 or after 30 years of service. The early retirement benefit equals the normal retirement benefit reduced on an actuarially equivalent basis. Upon termination, a member may elect to have all contributions, along with 5 percent as interest, returned as a lump sum distribution from the Defined Benefit Component. Alternatively, a member with at least five years of accredited service may leave contributions with the Defined Benefit Component of the Plan and remain eligible for a retirement pension at age 55 equal to 1.5 percent of the average of the member’s highest three years’ base salary for each year of credited service. Contributions. The Board sets minimum contribution rates at a level that enable all benefits to be fully funded at the retirement date of all members based upon current actuarial assumptions. The members of the SWH and the City are currently each contributing at the rate determined by the individual employer, however, the rate for both employer and members must be at least 8 percent of the member’s base salary. The amount allocated to the Defined Benefit Component is set annually by the Fire & Police Pension Association Board of Directors. Excess contributions fund the Money Purchase Component of the Plan. The Defined Benefit Component contribution rate from July 1, 2014 through June 30, 2015 is 12.5 percent. Within the Money Purchase Component, members are always fully vested in their own contributions, as well as the earnings on those contributions. Vesting in the employer’s contributions within the Money Purchase Component, and earnings on those contributions occurs according to the vesting schedule set by the plan document at 20 percent per year after the first year of service to be 100 percent vested after 5 years of service. Employer and member contributions are invested in funds at the discretion of members. Prior to 1997, the State of Colorado made a one-time contribution to fund future service costs for all firefighters hired prior to January 1, 1997. These members do not make contributions to the Statewide Death and Disability Plan. Aggregate contributions totaling 2.6 percent of payroll were made to the Statewide Death and Disability Plan in 2011 for firefighters hired on or after January 1, 1997, of which 1.8 percent and 0.80 percent were funded by the City and Plan members, respectively through October 31, 2011. Beginning November 1, 2011, the contribution of 2.60 percent changed. In 2015, 1.04 percent and 1.56 percent were funded by the City and plan members, respectively. The contribution rate may vary from year to year, depending on actuarial experience. Total contributions to the SWH from the City were $68,184 for the year ended December 31, 2015.

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Pension Liabilities (Assets), Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2015, the City reported an asset of $565,544 for its proportionate share of the net pension asset. The net pension asset was measured as of December 31, 2014, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of the same date. The City’s proportion of the net pension asset was based on a projection of the City’s share of contributions to the pension plan relative to the contributions of all participating employers and the State. At December 31, 2014, the City’s proportion was 4.769 percent, which was a decrease of 0.8075 percent from its proportion measured as of December 31, 2013. For the year ended December 31, 2015, the City recognized a reduction of pension expense of $40,658. At December 31, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following resources:

$68,184 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as an increase in the net pension asset in the year ending December 31, 2016. The following table presents the City’s other deferred inflows and outflows of resources related to pensions that will be recognized in the City’s pension expense for each of the subsequent five years and in the aggregate thereafter:

Year Ended

December 31,

Amounts Recognized in

Pension Expense

2016 13,159$                                          

2017 13,159                                             

2018 13,159                                             

2019 13,159                                             

2020 10,965                                             

Thereafter 39,317                                             

Total 102,918$                                        

Actuarial assumptions. The December 31, 2014 actuarial valuation used the following actuarial assumption and other inputs:

Actuarial Method Entry Age Normal

Amortization Method Level % of Payroll, Open

Amortization Period 30 Years

Asset Valuation Method 5-Year Smoothed Fair Value

Long-term Investment Rate of Return*

7.5%

Projected Salary Increases 4.0% - 16.0%

Cost of Living Adjustments (COLA) 0.0%

*Includes Inflation at 3.0%

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Difference between expected and actual experience 20,370$                        ‐$                             

Change of assumptions ‐                                 ‐                               

Net difference between projected and actual earnings on pension plan investments 8,775                             ‐                               

Changes in proportion and differences between City's contributions and proportionate

share of contributions 73,773                          ‐                               

City contributions subsequent to the measurement date 68,184                          ‐                               

Total 171,102$                      ‐$                             

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The RP-2000 Combined Mortality Table with Blue Collar Adjustment, projected with Scale AA, 40 percent multiplier for off-duty mortality is used in the valuation for off-duty mortality of active members. On-duty related mortality is assumed to be 0.00020 per year for all members. The RP-2000 Combined Mortality Table with Blue Collar Adjustment, projected with Scale AA is used in the projection of post-retirement benefits. Changes of assumptions. At least every five years the Fire & Police Pension Association’s Board of Directors, in accordance with best practices, reviews its economic and demographic actuarial assumptions. Effective with the December 31, 2012 valuations, the Board adopted a five-year smoothing methodology in the determination of the actuarial value of assets. Beginning in the December 31, 2013 valuations, the married assumption for active members was increased from 80% to 85% to reflect the passage of the Colorado Civil Union Act. Change in benefit terms. A 3.00 percent benefit adjustment was granted to all retirees and beneficiaries of the plan who retired on or before October 1, 2014. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2014 are summarized in the following table:

Asset Class

Target

Allocation

Long-Term Expected

Real Rate of Return

Global Equity 40.0% 8.9%

Equity Long/Short

10.0% 7.5%

Illiquid Alternatives

18.0% 10.5%

Fixed Income 15.0% 4.6%

Absolute Return 12.0% 6.5%

Managed Futures 4.0% 5.5%

Cash 1.0% 2.5%

Total 100%

Discount Rate. The discount rate used to measure the total pension liability was 7.50 percent. The discount rate was based on the long-term expected rate of return on pension plan investments of 7.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the Board’s funding policy, which establishes the contractually required rates under Colorado statutes. Based on those assumptions, the SWDB plan’s fiduciary net position was projected to be available to make all the projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s proportionate share of the net pension asset to changes in the discount rate. The following presents the City’s proportionate share of the net pension asset calculated using a single discount rate of 7.50 percent, as well as what the City’s proportionate share of the net pension asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate:

1% Decrease (6.50%)

Discount Rate

(7.50%)

1% Increase (8.50%)

Westminster’s proportionate share of the net pension asset

$(399,362)

$(565,544)

$(713,243)

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Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued FPPA financial report.

Statewide Money Purchase Plan

General Information about the Statewide Money Purchase Plan Plan Description. Effective September 1, 2004, the City began contributing to the Statewide Money Purchase Plan (SMP), a multiple-employer defined contribution plan administered by the Fire & Police Pension Association of Colorado (FPPA). All full-time, paid firefighters hired before September 1, 2004 had the option of joining the SMP plan. Participants can choose from various mutual funds selected by the Self-Directed Plans Committee pursuant to the fund structure approved by the FPPA’s Board of Directors, as well as mutual funds or other investments offered through a Self-Directed Brokerage Account. Benefits provided. The Statewide Money Purchase Plan (SMP) provides retirement benefits for members and beneficiaries. Death and disability coverage is provided for members through the Statewide Death and Disability Plan, which is also administered by FPPA. Colorado statutes assign the authority to establish benefit provisions to the state legislature. Contributions and Vesting. Contributions to the Plan are calculated as a percentage of the member’s base salary, which is specified by state statute. Current participants contribute 10 percent of salary, which is matched by the City. Members are always fully vested in their own contributions, and the earnings on those contributions. Vesting in the employer’s contributions and earnings on those contributions occurs according to the vesting schedule set by state statute at 20 percent per year after the first year of service to be 100 percent vested after 5 years of service. Employer and member contributions are invested in funds at the discretion of members. Total contributions to the Statewide Money Purchase Plan from the City were $55,179 for the year ended December 31, 2015.

Westminster Volunteer Firefighter Pension Plan

General Information about the Volunteer Firefighter Pension Plan Plan description. The City has fiduciary responsibility for a defined benefit retirement system (“the plan”) established by the Volunteers. All volunteer firefighters have retired. After the last volunteer firefighter retired, the volunteer firefighter program was dissolved by the City Council as required by state law. As required by Colorado State Law, prior to dissolving the plan, Council established the final benefit. The maximum benefit for a volunteer beneficiary has been permanently capped. With the approval of the Volunteer Fire Pension Board and the City Council of Westminster, the assets of the plan were transferred to the FPPA as allowed by C.R.S., 31-31-705. This statute allows FPPA to manage the funds of the plan and pay beneficiaries. Administrative costs and fees of the plan are netted against investment earnings on a prorated basis. The City of Westminster retains responsibility for administration and the liability of the plan. Investments of the funds are invested under the concept of an agent multiple-employer plan. The plan is closed to new entrants. When the last participant of the plan passes away, the residual assets will transfer to the City and can only be used for fire related purposes. The plan is included in FPPA’s audited annual financial report as an affiliated local plan, which may be obtained by writing to FPPA, 5290 DTC Parkway Suite 100, Greenwood Village, CO 80111, or by calling 303-770-3772 or at http://www.fppaco.org. Benefits provided. The plan provides retirement and death benefits. Participants become fully vested after 20 years of active service. Retirement benefits are payable upon vesting for any volunteer who terminates after

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10 years but prior to 20 years of active service allowed by State Statutes. The benefit is equal to the full retirement benefit at the date of termination prorated by the number of years of service accrued. Surviving spouses of deceased retirees may receive up to 50% of the retirement benefit until remarriage and a one-time funeral benefit. Benefits do not provide for annual cost-of-living adjustments. Volunteers may retire upon completion of 20 years of service even though not all of the service was earned in the same fire department. If they first became volunteers prior to June 2, 1977, the retirement benefit is paid from the pension fund of each department for which they served at least five years. The amount paid is equal to 1/20 of the monthly retirement benefit being paid by that department at the date of termination from the department for each year of service with that department. Volunteers covered by benefit terms. At December 31, 2015, membership in the plan consisted of: Retirees and beneficiaries receiving benefits 29 Terminated volunteers entitled to benefits but not receiving benefits 0 Active plan members 0 Total 29 Contributions. An actuarial study performed on December 31, 2014, states that the current level of assets in the fund are in excess of the amount needed to pay the capped maximum of $700 per month and all prorated amounts by $860,228. Therefore, no additional contributions are required at this time by the City. State statues govern contribution requirements. The required contribution for 2015 was determined as part of the 2014 actuarial valuation using the entry age actuarial cost method. Funding for the plan was provided through a property tax levy prior to 1987. The levy was eliminated in 1987 because the plan was over-funded. Since Volunteers do not contribute to the plan, no plan assets are distributed if a volunteer is terminated prior to vesting. Net Pension Asset The plan’s net pension asset was measured as of December 31, 2014, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of that same date. Actuarially determined contribution rates are calculated as of January 1 of odd numbered years. The contribution rates have a one-year lag, so the actuarial valuation as of December 31, 2012, determines the contribution amounts for 2014 and 2015. Actuarial assumptions. The total pension liability in the December 31, 2014 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Cost Method Entry Age Normal Amortization Method Level Dollar, Open Remaining Amortization Period 20 years Asset Valuation Method 5-Year smoothed market Inflation 3.00% Salary Increases N/A Investment Rate of Return 7.50% Retirement Age 50% per year of eligibility until 100% at age 65 Mortality rates were based on the RP-2000 Combined Mortality Table with a Blue Collar Adjustment (40% multiplier for off-duty mortality used for pre-retirement). Disabled rates based on RP-2000 Disabled Mortality Table. All tables projected with Scale AA. Long-term expected return on plan assets. The long-term expected rate of return on the plan’s investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best

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estimates of arithmetic real rates of return for each major asset class included in the plan’s target asset allocation as of December 31, 2014, is summarized in the table below.

Asset Class

Target Allocation

Long Term Expected Rate of Return

Global Equity 40% 8.9% Equity Long/Short 10% 7.5% Illiquid Alternatives 18% 10.5% Fixed Income 15% 4.6% Absolute Return 12% 6.5% Managed Futures 4% 5.5% Cash 1% 2.5% Total 100%

Single Discount rate. A single discount rate of 7.50% was used to measure the total pension liability. This single discount rate was based on the long-term expected rate of return on pension plan investments of 7.50%. The projection of cash flows used to determine this single discount rate assumes that all actuarially determined contributions will be made. The plan’s fiduciary net position was projected to be available to make all projected future benefit payments. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in the Net Pension Asset

Sensitivity of the net pension asset to changes in the single discount rate. The following presents the net pension asset of the plan, calculated using the single discount rate of 7.50 percent, as well as what the plan’s net pension asset would be it were calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher (8.50 percent) than the current rate:

1% Decrease

6.50%

Current Single Discount Rate Assumption

7.50%

1% Increase

8.50%

Plan’s net pension asset $(728,950) $(860,228) $(974,881) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Fire & Police Pension Association (FPPA) financial report. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2015, the plan recognized a reduction of pension expense of $47,912. At December 31, 2015, the plan reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Total Pension 

Liability

Plan Fiduciary

Net Position

Net Pension

Asset 

(a) (b) (a) ‐ (b)

Balances at 1/1/15 1,765,940$          2,591,192$             (825,252)$             

Changes for the year:

   Interest on the total pension liability 125,396                ‐                            125,396                 

   Differences between expected and actual experience 6,313                     ‐                            6,313                      

   Net investment income 170,962                   (170,962)                

   Benefit payments (191,450)              (191,450)                

   Pension Plan Administrative Expense ‐4277 4277

      Net Changes (59,741)                 (24,765)                   (34,976)                  

Balances at 12/31/2015 1,706,199            2,566,427               (860,228)                

Increase (Decrease)

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For the year ended December 31, 2015, the plan recognized a reduction of pension expense of $47,912. At December 31, 2015, the plan reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended

December 31

Net Deferred Outflows

(Inflows) of Resources

2016 3,234$                                   

2017 3,234                                      

2018 3,234                                      

2019 3,234                                      

Total 12,936$                                 

J. Retiree Health Program Program Description. The Retiree Health Program (Program) is a single-employer defined benefit healthcare plan administered by the City of Westminster. The Program provides medical, dental, and vision insurance benefits to eligible retirees and their dependents until reaching the Medicare qualification age. Retirees may not stay on the Program after age 65. Benefits are provided for active employees and retirees under the same health care plan. The Program offers a self-funded Open Access Point of Service plan as well as a fully insured HMO plan. The dental benefit component is self-funded and the vision benefit is paid solely by the participants in the Program. Funding Policy. The Program provisions and requirements are established and may be amended by Council policy. The City funds OPEB expense on a pay-as-you-go basis. Program claims and fees for the self-funded plan and expected premiums for the fully funded plan totaled $677,664 during 2015. Program members receiving benefits contributed $352,275 in actual premiums equal to 100% of the equivalent premium recognized for active employees. The City’s pay-as-you-go program funding totaled $325,389 during the year. Annual OPEB Cost and Net OPEB Obligation. The City’s annual OPEB cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover current year costs plus amortization for a portion of the unfunded accrued actuarial liability for Program benefits. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the Program, and changes in the City’s net OPEB obligation.

Deferred Outflows

of Resources

Deferred Inflows

of ResourcesDifference between expected and actual

experience ‐$                               ‐$                           

Changes in assumptions ‐                                 ‐                             

Net difference between projected and

actual earnings on pension plan investments 12,936                           ‐                             

Total 12,936$                        ‐$                           

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

69

2015Annual required contribution 191,448$ Interest on net OPEB obligation 16,755 Annual required contribution adjustment (15,370) Annual OPEB cost 192,833 Contributions made (325,389) Increase (decrease) in annual OPEB obligation (132,556) OPEB obligation - beginning of year 440,913 OPEB obligation - end of year 308,357$

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Program, and the net OPEB obligation for years 2013-2015 is as follows:

Fiscal Year Ended

Annual OPEB Cost

Percentage of Annual OPEB

Cost ContributedNet OPEB Obligation

12/31/2013 178,200$ 8.8% 389,389$ 12/31/2014 177,521 71.6% 440,913 12/31/2015 192,833 168.7% 308,357

Funded Status and Funding Progress. As of January 1, 2015, the most recent actuarial valuation date, the Program was not funded. The unfunded actuarial accrued liability (UAAL) was $2,424,602. The covered payroll (annual payroll of active employees covered by the Program) was $57,861,424. The ratio of the UAAL to covered payroll was 4.2 percent. Actuarial Methods and Assumptions. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future, such as future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Program and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear information about the actuarial accrued liability for benefits relative to the covered payroll of employees covered by the Program. Projections of benefits for financial reporting purposes are based on the substantive program (the program as understood by the City and the Program members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefits costs between the City and Program members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations. In the January 1, 2015 valuation, the Projected Unit Credit cost method was used. The actuarial assumptions included a 3.8 percent investment rate of return to calculate the ARC on a pay-as-you-go basis, which is the rate expected on short-term liquid investments. The Unfunded Actuarial Accrued Liability is amortized over the maximum acceptable period of 30 years. It is calculated assuming a level percentage of projected payroll on an open basis. Payroll is assumed to increase at 3.5% per year. Trend rates found in a recent study released by the Society of Actuaries (SOA) titled, “Getzen Model of Long-Run Medical Costs for the SOA” were used to project the benefit costs for current and future retirees. The trend begins at 4.7%, increases for several years up to 5.5%, and then reduces to an ultimate rate of 3.8% in the year 2075. A separate financial report is not issued for the Retiree Medical Program.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

70

K. Tax Spending and Debt Limitations Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local governments. The Amendment is complex and subject to judicial interpretation. The City believes it is in compliance with the requirements of the amendment. However, the City has made certain interpretations of the amendment’s language in order to determine its compliance. In November 2002, Westminster voters approved a ballot measure that exempts the City from the spending and revenue limits of the amendment. The Amendment requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. At December 31, 2015, amounts required as Emergency Reserves in compliance with the Amendment total $4,529,964 for the general government and an aggregate of $23,265 for applicable component units. These amounts are shown as restrictions of fund balance in the General and respective nonmajor funds as well as a restriction of Net Position on the Statement of Net Position. L. Jointly Governed Organization The Woman Creek Reservoir Authority was formed in 1996 to oversee facilities constructed to protect the City’s main drinking water supply from hazards flowing from the former nuclear weapons manufacturing facility at Rocky Flats. Rocky Flats is located west of the City of Westminster between the Cities of Golden and Boulder. The U.S. Department of Energy funded this water protection project through a grant. The purpose of the grant is to provide a sufficient investment pool to generate investment earnings to cover the annual operating expenses of the Authority and cover any large rehabilitation costs which may arise. The Cities of Northglenn, Westminster, and Thornton participate equally in the administration and operation of the Authority. Each City appoints one member of the three-member board of directors for the Authority. The Authority has no employees. The Authority is not financially accountable for any other organization nor is the Authority a component unit of any other primary governmental entity. M. Joint Ventures Hyland Hills Park and Recreation District-City of Westminster Ice Centre Intergovernmental Agreement. The City entered into an intergovernmental agreement (IGA) with Hyland Hills Park and Recreation District on January 29, 1998. The City agreed to finance (through the Westminster Building Authority) and construct a three sheet Ice Centre and Hyland Hills agreed to operate the Ice Centre pursuant to a sublease. The sublease calls for Hyland Hills to make lease payments to the City equivalent to one-half of the rental obligation due from the City to the Westminster Building Authority. The agreement entitles Hyland Hills to an undivided fifty percent interest in the Ice Centre, which in the event of default, would be reduced by two percent for each year the lease obligation was not met. In addition, Hyland Hills agreed to convey to the City an undivided fifty percent interest in Carroll Butts Park, and to lease to the City an undivided fifty percent interest in the Hyland Hills Ice Arena and adjacent parking lot for the twenty-five year term. At the end of the term, Hyland Hills will convey the City's fifty percent interest in the Ice Arena. The City receives one-half of the net revenues from operations of the Ice Centre and the Hyland Hills Ice Arena and Carroll Butts Park. The City’s share of net operating revenues in 2015 was $530,245. At December 31, 2015, the net book value of the Ice Centre joint venture was $4,502,998 and Carroll Butts Park was $441,000, which are included in the City’s capital assets. There are not separate financial statements for the joint venture.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

71

Broomfield-Westminster Open Space Foundation. The City entered into an intergovernmental agreement with The City and County of Broomfield on December 12, 2005, to create the Broomfield-Westminster Open Space Foundation (Foundation), a nonprofit corporation qualifying under section 501 (c) (3) of the Internal Revenue Code, to function as a public foundation. The sole purpose of the nonprofit corporation is to acquire, finance, own, and operate approximately 150 acres of undeveloped land known as the Metzger Property. The board of directors for the Foundation is comprised of an equal number of directors appointed by each City, and one additional impartial director selected by Broomfield and Westminster. Acquisition of the property was financed in 2006 from grants, donations, gifts, contributions from public and private entities, and issuance of financial obligations by the Foundation. The cities agree to their share of payments as set forth in the By-Laws of the Foundation. The City accrues one-half ownership interest in the property based on annual lease rental payments set forth in the financing document. The City records its interest in the Metzger Farm as a capital lease payable and as Joint Venture Land valued at $4,920,000. At December 31, 2015, the City’s fifty percent equity interest in the Foundation is $779,000. Financial statements for the Broomfield-Westminster Open Space Foundation may be obtained by contacting the City of Broomfield, Colorado, Finance Department, 303-438-6357. N. Component Unit of Another Government with Joint Venture Characteristics The City of Westminster entered into an intergovernmental agreement with the City of Northglenn to establish the Church Ditch Water Authority (the Authority) on October 29, 2004. The Authority is responsible for the operation, maintenance, and continued development of Church Ditch. The effects of water resource development by the Authority benefit both cities and other contractual users of the Church Ditch. The Authority (a governmental entity), which replaced the Church Ditch Company (a private carrier ditch company), was created to maximize operating efficiencies, streamline the rate setting process, and provide for management of easement and property ownership issues. The Authority is governed by a Board of Directors consisting of two directors appointed by the City of Northglenn, and one director appointed by the City of Westminster. The City owns one-third of the Church Ditch while Northglenn owns the other two-thirds. The City of Northglenn reports the Church Ditch Authority as a discretely presented component unit; the City of Westminster, as the minority participant in the Authority, reports an equity interest of one-third of the Authority’s net position as “Other Assets” in the Utility Fund. At December 31, 2015, the City’s equity interest in the Church Ditch Authority was $1,070,509. O. Intergovernmental Agreement In September 1995, the City entered into an intergovernmental agreement with the State of Colorado, Department of Higher Education for the construction and operation of the College Hill Library at Front Range Community College. This agreement called for the City and Front Range College to jointly build, furnish, equip, staff, operate and maintain the College Hill Library. The library has been fully operational since April 7, 1998. The intergovernmental agreement calls for the City to pay Front Range Community College its proportionate share of operating expenses, which totaled $209,849 in 2015. This agreement allows the City to occupy space in the facility for up to 50 years. After 33 years, either party may terminate this agreement by giving two years’ written notice to the other party. Thus, the City would enjoy a minimum of 35 years. P. Arbitrage Compliance All bond issues for the City of Westminster have been evaluated to determine arbitrage compliance and liability position. For issues where all proceeds have been spent, the City has no liability. For recent issues where proceeds have not been fully spent, no potential liability exists.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

72

Q. Property Held for Resale WEDA acquired the abandoned portions of a townhome project within the Holly Park urban renewal area with the intention to clean-up the abandoned areas and ready the land for sale. WEDA continues to maintain the property as a potential redevelopment site of approximately 5.7 acres. At December 31, 2015, the property was reported in the financial statements at the fair market value of $850,000. WEDA has also acquired approximately 95% of the 105-acre Westminster Center Urban Reinvestment Project site now known as Downtown Westminster. This site is at the center of the City’s ambitious journey to become the next urban center on the Colorado Front Range. During 2015, WEDA conveyed approximately 40 acres to the City for public green space and right-of-way. Utilities and road are being installed as the new Downtown Westminster takes shape. Additionally, construction on a major residential and retail development is expected to begin in early 2017. At December 31, 2015, the properties still held by WEDA were reported as property held for resale in the financial statements at the fair market value of $18,396,173, which is less than cost. The City acquired an approximate 295,000 square foot parcel of land in the South Westminster Transportation Oriented District. Roughly 168,000 square feet of the parcel will be used for the future development of a parking garage and street rights-of-way, while the balance will be sold at a later date. At December 31, 2015 the portion of the property held for resale was reported in the General Capital Improvement Fund at the prorated cost of $319,659. The City purchased a 40,000 square foot/.9183 acre parcel located at the southwest corner of 92nd Avenue and Lowell Boulevard which is intended to be sold at a later date for development purposes. At December 31, 2015, the land held for resale was reported as property held for resale in the financial statements of the General Fund at a cost of $31,474. The City acquired five properties located in the 7200 block of Lowell Boulevard. The properties were acquired with Section 108 Loan Guarantee Funds. The City has an agreement with a developer. Upon development plan approval, the City plans to convey these properties to the developer in exchange for the developer assuming the debt. As of December 31, 2015, the properties held for resale were reported in the financial statements of the Community Development Block Grant fund at a cost of $1,210,223.  R. Conduit Debt Obligations From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. At December 31, 2015, Industrial Revenue Bonds outstanding aggregated $38,635,000. S. Pollution Remediation The State of Colorado, Department of Labor and Employment, Division of Oil and Public Safety recognizes the City of Westminster as the sole responsible party for the pollution remediation of a leak from underground gas storage tanks at the Municipal Service Center discovered in 1986. A feasibility study performed by a consultant estimated the value of recovery costs on January 24, 2014 at $383,900 for the in-situ injection remediation method selected by the City. The consultant provided cost estimates based on well readings and current costs for monitoring, operations and maintenance, and site closure over a 13-15 year period. At December 31, 2015, the pollution remediation liability was $307,642, which is recorded in the Utility Fund. Changes in the cost elements are likely to occur as a result of the effectiveness of remediation efforts and new information.

CITY OF WESTMINSTER, COLORADO NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015

73

T. Debt Issues On February 19, 2015 the City Water and Wastewater Utility Enterprise issued $4,610,000 of Non-Taxable Stormwater Revenue Bonds with an arbitrage yield of 1.35%. The allocation of the gross proceeds to cost of issuance fees was $48,391. On July 23, 2015 the City issued $30,000,000 of Non-taxable Certificates of Participation, Series 2015A with an arbitrage yield of 3.69%. The net proceeds of $32,654,144 were allocated to cover the cost of issuance fees and underwriter’s discount of $254,101. On July 23, 2015 the City issued $10,000,000 of Taxable Certificates of Participation, Series 2015B with an arbitrage yield of 3.01%. The net proceeds of $9,962,500 were allocated to cover the cost of issuance fees and underwriter’s discount of $84,199. On December 9, 2015 the City issued $18,500,000 of Special Purpose Sales and Use Tax Refunding Bonds, Series 2015 with an arbitrage yield of 2.51% to partially advance refund $19,040,000 of $20,000,000 outstanding Special Purpose Sales and Use Tax Bonds, Series 2007. The net proceeds of $20,670,475 were used to pay the cost of issuance fees and underwriter’s discount of $193,988 and to immediately redeem the portion of the Series 2007 bonds refunded including accrued interest. The proceeds of the Bonds were deposited in an irrevocable trust with an escrow agent used to purchase U.S. Government Obligations sufficient to provide for all future debt service payments on the portion of the Series 2007 bonds refunded. As a result, the portion of the Series 2007 bonds refunded are considered to be defeased and the liability for those bonds has been removed from the City’s general long-term debt outstanding. The City advance refunded a portion of the Series 2007 bonds to reduce its total debt service payments over the next 16 years by $2,431,772 and to obtain the economic gain (difference between the present values of the debt service payments on the old and new debt) of $2,007,129. A deferred amount on refunding of $1,272,022 was recorded. U. Implementation of New Accounting Standard The City implemented Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 (Statement No. 68), which revises and establishes new financial reporting requirements for governments that provide their employees with pension benefits. The City provides its employees with pension benefits through the Fire and Police Pension Association of Colorado defined benefit retirement program, FPPA. Statement No. 68 requires employers participating in multiple-employer cost-sharing plans, such as FPPA, to record their proportionate share, as defined in Statement No. 68, of FPPA’s pension liability (asset). The City has no ability to affect funding, benefit, or annual required contribution decisions made by FPPA. The City also has fiduciary responsibility for an agent multiple-employer defined benefit retirement system established by the Volunteers and managed by FPPA. Statement No. 68 requires employers with agent multiple-employer plans to recognize and disclose the net pension liability (asset) and pension plan expense on their financial statements, along with related deferred outflows and inflows of resources. The implementation of GASB 68 resulted in a restatement to increase net position as of January 1, 2015 in the government-wide financial statements in the amount of $3,418,011. Information regarding FPPA’s current funding status can be found in their Comprehensive Annual Financial Report. V. Subsequent Event Management has formalized a plan to issue approximately $51.0 million in Revenue Bonds by the Utility Fund on May 25, 2016 for water and wastewater capital improvement projects. Standard & Poor’s has rated these bonds AAA and Fitch has rated them AA+.

74

This Page Intentionally Blank

Required SupplementalInformation

75

Variance w ithFinal Budget

PositiveOriginal Final Actual (Negative)

REVENUESProperty taxes 4,245,000$ 4,245,000$ 4,146,509$ (98,491)$ Sales taxes 62,389,963 65,940,273 70,961,906 5,021,633 Use taxes 12,047,659 12,227,673 16,362,755 4,135,082 Business fees and other taxes 5,576,429 5,576,429 5,636,924 60,495 Accommodations taxes 885,080 885,080 1,008,219 123,139 Intergovernmental 6,874,844 7,362,729 8,309,537 946,808 Licenses and permits 1,739,217 1,883,678 2,923,276 1,039,598 Interest 246,023 246,446 315,985 69,539 Recreation fees 7,075,498 7,075,498 7,569,719 494,221 Fines and forfeits 1,511,000 1,511,000 1,655,314 144,314 Fleet maintenance billings and other 4,488,834 4,885,249 4,920,307 35,058 EMS billings 1,775,000 1,775,000 2,362,530 587,530 Total revenues 108,854,547 113,614,055 126,172,981 12,558,926

EXPENDITURESGeneral government

City council 202,560 202,560 163,754 38,806 City attorney's off ice 1,116,602 1,116,602 1,070,810 45,792 City manager's off ice 1,702,225 1,987,526 1,644,461 343,065 Central charges 28,174,332 32,874,123 30,917,387 1,956,736 General services 8,312,544 8,375,561 7,832,004 543,557 Finance 1,884,965 1,884,965 1,788,928 96,037

Public safety Police 21,260,955 21,687,690 21,053,569 634,121 Fire 12,358,525 12,465,503 12,356,415 109,088

Public w orks 8,103,800 8,349,366 7,812,814 536,552 Community development 3,908,622 4,209,103 3,920,182 288,921 Culture and recreation 15,171,359 15,826,229 15,741,362 84,867 Total expenditures 102,196,489 108,979,228 104,301,686 4,677,542

Excess of revenues over (under) expenditures 6,658,058 4,634,827 21,871,295 17,236,468

OTHER FINANCING SOURCES (USES)Issuance of Leases - 577,947 577,946 (1) Sale of capital asset 30,000 30,000 33,122 3,122 Transfers in 434,974 612,986 1,157,937 544,951 Transfers (out) (6,753,009) (17,004,387) (16,469,387) 535,000 Total other financing sources (uses): (6,288,035) (15,783,454) (14,700,382) 1,083,072

Net change in fund balance 370,023$ (11,148,627)$ 7,170,913 18,319,540$

Fund balance, beginning 37,314,386

Fund balance, ending 44,485,299$

CITY OF WESTMINSTER, COLORADOBUDGETARY COMPARISON SCHEDULE

GENERAL FUNDFOR THE YEAR ENDED DECEMBER 31, 2015

76

Variance w ithFinal Budget

PositiveOriginal Final Actual (Negative)

REVENUESProperty tax increment 9,079,243$ 9,079,243$ 9,083,169$ 3,926$ Sales tax increment 495,966 568,199 641,532 73,333 Interest 14,000 43,209 39,901 (3,308) Rentals - 419,137 419,137 - Other 193 193 19,096 18,903 Total revenues 9,589,402 10,109,981 10,202,835 92,854

EXPENDITURESGeneral government 531,790 535,469 526,730 8,739 Capital projects 1,715,805 14,996,990 12,883,629 2,113,361 Debt service:

Principal 5,487,000 5,487,000 5,487,000 - Interest and f iscal charges 3,025,917 3,025,917 3,019,668 6,249

Total expenditures 10,760,512 24,045,376 21,917,027 2,128,349

Excess of revenues (under) expenditures (1,171,110) (13,935,395) (11,714,192) 2,221,203

OTHER FINANCING SOURCES (USES)Transfers in 57,600 937,600 1,239,582 301,982 Transfers (out) (350,000) (1,844,001) (1,844,001) -

Total other financing sources (uses): (292,400) (906,401) (604,419) 301,982

Net change in fund balance (1,463,510)$ (14,841,796)$ (12,318,611) 2,523,185$

Fund balance, beginning 45,074,700

Fund balance, ending 32,756,089$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

WESTMINSTER ECONOMIC DEVELOPMENT AUTHORITY FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

77

Budgetary Information A biennial city budget is legally adopted by City Council for all fund types, except for the Investigation Recovery Special Revenue Fund, internal service self-insurance funds, and blended component units of the City. A biennial budget is adopted for the Westminster Economic Development Authority by the Authority’s Board and annual budgets are adopted for the Westminster Housing Authority and general improvement districts by their respective Boards. Budgets for Governmental Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgets for the Enterprise Funds and General Capital Outlay Replacement Fund are adopted on a basis consistent with GAAP except that debt proceeds are treated as revenues, capital outlay and debt service principal payments are treated as expenditures, and capital contributions are not budgeted. Appropriations lapse at year end for legally adopted operating budgets. Project-length budgets are adopted for all capital projects. At year end, appropriations for incomplete capital projects are carried forward to the following year. The General Capital Improvements Capital Projects Fund, Westminster Economic Development Authority Fund, Community Development Block Grant Fund, Parks, Open Space and Trails Fund, Conservation Trust Fund, Utility Enterprise Fund and the Golf Course Fund budget for capital projects. The General Capital Outlay Replacement Fund uses project length budgeting for capital outlay replacements of fleet vehicles and other equipment. Like capital project budgets, unspent appropriations are carried forward to the following year. Budgetary comparison schedules for funds with project length budgets include current year and continuing appropriations from the prior year. The legal level of budgetary control is the department level. Transfers of appropriations between departments and/or funds require the approval of the City Council. See the disclosure on Construction and Other Significant Commitments, page 55 for detail on the continuing appropriations for capital project and project length budgets.

78

CITY OF WESTMINSTER, COLORADO

Schedule of Funding Progress December 31, 2015

Actuarial Valuation Date

Actuarial Value of Assets

Actuarial Accrued Liability (AAL) - Projected Unit

Credit Cost Method

Unfunded AAL (UAAL)

Funded Ratio Covered Payroll

UAAL as a Percentage of

Covered Payroll

1/1/2011 -$ 2,402,366$ 2,402,366$ 0% 51,742,297$ 4.6%

1/1/2013 - 2,718,852 2,718,852 0% 52,816,246 5.1%

1/1/2015 - 2,424,602 2,424,602 0% 57,861,424 4.2%

Retiree Health Program

Measurement period ending December 31,

2014

Total Pension Liability

Service Cost

‐$ 

    

Interest on the Total Pen

sion Liability

125,396

      

Ben

efit Chan

ges

‐    

Difference between Expected and Actual Experience

6,313

     

Assumption Chan

ges

‐    

Ben

efit Payments

(191,450)

     

Net Chan

ge in

 Total Pension Liability

(59,741)

       

Total Pension Liability ‐ Beginning

1,765,940

   

Total Pension Liability ‐ Ending (a)

1,706,199

$    

Plan Fiduciary Net Position

Employer Contributions

‐    

Pen

sion Plan Net Investmen

t Income

170,962

      

Ben

efit Payments

(191,450)

     

Pen

sion Plan Administrative Expen

se(4,277)

   

State of Colorado Supplemen

tal D

iscretionary Paymen

t‐

    

Net Chan

ge in

 Plan Fiduciary Net Position

(24,765)

       

Plan Fiduciary Net Position ‐ Beginning

2,591,192

   

Plan Fiduciary Net Position ‐ Ending (b)

2,566,427

$    

Net Pension Liability/(Asset) ‐ Ending (a) ‐ (b)

(860,228)

     

Plan Fiduciary Net Position as a Percentage

   of To

tal Pension Liability

150.42%

*Covered Employee Payroll

N/A

*Net Pension Liability as a Percentage

of Covered Employee Payroll

N/A

*Covered‐employee payroll is not applicable for volunteer pen

sion plans.

City of Westm

inster

Westm

inster Volunteer Firefighter Pen

sion Plan

Sched

ule of Chan

ges in Net Pen

sion Liability(Asset) an

d Related

 Ratios 

Last 10 Fiscal Years **

** In

form

ation above is presented as of the measuremen

t date.  Inform

ation is not curren

tly available for prior years; 

additional years will be displayed as they become available.

79

FY

End

ing

Dec

embe

r 31

,

Act

uaria

lly

Det

erm

ined

C

ontr

ibut

ion

Act

ual

Con

trib

utio

n*

Con

trib

utio

n D

efic

ienc

y (E

xces

s)C

over

ed

Pay

roll*

*

Act

ual C

ontr

ibut

ion

as a

% o

f C

over

ed P

ayro

ll

(a)

(b)

(c )

(d)=

(b)-

(c )

(e)

(f)

2014

-$

-

$-

$

N/A

N/A

*Inc

lude

s b

oth

empl

oyer

and

Sta

te o

f C

olor

ado

Sup

plem

enta

l Dis

cret

iona

ry P

aym

ent.

***

Info

rmat

ion

is n

ot c

urre

ntly

ava

ilabl

e fo

r pr

ior

year

s; a

dditi

onal

yea

rs w

ill b

e di

spla

yed

as t

hey

beco

me

avai

labl

e.

Notes to Schedule of Contributions

Valuation Date: 

Methods and Assumptions Used to Determ

ine Contribution Rates:

Actuarial Cost Method

Entry Age

 Norm

al

Amortization Method

Level D

ollar, O

pen

Remaining Amortization Period

20 years

Asset Valuation Method

5‐Year smoothed market

Inflation

3.00%

Salary Increases

N/A

Investment Rate of Return

7.50%

Retirement Age

50% per year of eligibility until 100% at age 65

Mortality

Pre‐retirement: RP‐2000 Combined Mortality Table with Blue Collar

Adjustment, 40%

 multiplier for off‐duty mortality

Post‐retirement: RP‐2000 Combined Mortality Table, w

ith Blue Collar Adjustment

Disabled: RP‐2000 Disabled Mortality Table

All tables projected with Scale AA

Actuarially determ

ined contribution rates are calculated as of January 1 of odd 

numbered years.  The contribution rates have a one‐year lag, so the actuarial 

valuation as of January 1, 2013, determ

ines the contribution amounts for 2014 

and 2015.

Cit

y o

f W

est

min

ste

r

Sch

ed

ule

of

Co

ntr

ibu

tio

ns

La

st 1

0 F

isca

l Y

ea

rs**

*

We

stm

inst

er

Vo

lun

tee

r F

ire

fig

hte

r P

en

sio

n P

lan

**V

olun

teer

fire

fight

ers

are

not

paid

; th

eref

ore,

th

e co

vere

d pa

yrol

l and

act

ual c

ontr

ibut

ion

as a

per

cent

age

of

cove

red

payr

oll i

s no

t ap

plic

able

.

80

2015

2014

City's proportion of the net pension liability (asset)

2.095%

2.123%

City's proportionate share of the net pension liability (asset)

(2,364,925)

$          

(1,898,788)

$   

City's covered‐employee payroll

8,366,305

$           

8,149,551

$     

City's proportionate share of the net pension liability (asset) as a

percentage of its covered‐employee payroll

‐28.27%

‐23.30%

Plan fiduciary net position as a percentage of the total pension liability

106.80%

105.80%

Inform

ation above is presented as of the m

easurement date. 

*Inform

ation is not currently available for prior years; additional years will be displayed as they become available.

City of Westminster

Schedule of the Employer's Proportionate Share of the Net Pension Liability (Asset)

Fire & Police Pension Association of Colorado ‐ Statewide Defined Benefit Plan

Last 10 fiscal years *

81

2015

2014

Statutorily required contribution

363,791

$  

  331,008

$  

  

Contributions in relation to the statutorily required contribution

363,791

$  

  331,008

$  

  

Contribution deficiency (excess)

‐$  

   ‐

$  

   

Employer's covered‐employee payroll

4,547,383

$    

4,137,588

$    

Contributions as a percentage

 of covered‐employee payroll

8.00%

8.00%

*Inform

ation is not currently available for prior years; additional years will be displayed as they become available.

City of Westminster

Westminster Fire: FPPA Statewide Defined Benefit

Schedule of Em

ployer Contributions

Last 10 fiscal years *

Inform

ation above

 is presented as of the fiscal year.  

82

2015

2014

Statutorily required contribution

434,257

$     

422,872

$     

Contributions in relation to the statutorily required contribution

434,257

$     

422,872

$     

Contribution deficiency (excess)

‐$              

‐$              

Employer's covered‐employee payroll

4,342,533

$ 4,228,717

$ 

Contributions as a percentage

 of covered‐employee payroll

10.00%

10.00%

*  Inform

ation is not currently available for prior years; additional years will be displayed as they become available.

City of Westminster

Westminster Fire: FPPA Statewide Defined Benefit ‐ Re‐entry

Schedule of Em

ployer Contributions

Last 10 fiscal years *

Inform

ation above

 is presented as of the fiscal year.  

N

ote

s:

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ease

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nges

to

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erm

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ffect

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2015

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ben

efit

adju

stm

ent

was

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to

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etire

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enef

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83

2015

2014

City's proportion of the net pension liability (asset)

4.769%

5.576%

City's proportionate share of the net pension liability (asset)

(565,544)

$       

(568,776)

$       

City's covered‐employee payroll

590,284

$        

721,382

$        

City's proportionate share of the net pension liability (asset) as a

percentage of its covered‐employee payroll

‐95.81%

‐78.85%

Plan fiduciary net position as a percentage of the total pension liability

140.60%

139.00%

Inform

ation above is presented as of the measurement date. 

*  Inform

ation is not curren

tly available for prior years; additional years will be displayed as they become available.

City of Westminster

Sched

ule of the Em

ployer's Proportionate Share of the Net Pen

sion Liability (Asset)

Fire & Police Pension Association of Colorado ‐ Statewide  Hybrid Defined Ben

efit Plan

Last 10 fiscal years *

84

2015

2014

Statutorily required contribution

68,184

$  

   59,028

$   

  

Contributions in relation to the statutorily required contribution

68,184

$  

   59,028

$   

  

Contribution deficiency (excess)

‐$  

   ‐

$   

  

Employer's covered‐employee payroll

681,843

$      

590,284

$   

  

Contributions as a percentage

 of covered‐employee payroll

10.00%

10.00%

City of Westminster

Westminster Fire: FPPA Statewide Hybrid Defined Benefit 

Schedule of Em

ployer Contributions

Last 10 fiscal years *

Inform

ation above

 is presented as of the fiscal year.  

*Inform

ation is not currently available for prior years; additional years will be displayed as they

become available.

No

tes:

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85

86

This Page Intentionally Blank

CombiningStatements

87

Nonmajor Governmental Funds

Special Revenue Funds

Parks, Open Space & Trails Sales and Use Tax Fund - accounts for revenues from the City’s 0.25 percent sales and use tax which was approved by Westminster voters. Spending is restricted to land acquisition to preserve open space and scenic vistas, and up to one-half of the revenues may be used for the development of additional park land, trails, and enhancement of existing parks.

Sheridan Crossing General Improvement District Fund – accounts for revenues provided for and expenditures associated with the operation and maintenance of commons areas within the District. Revenues are provided by ad valorem property taxes levied and received by the District. Amherst General Improvement District Fund – accounts for revenues provided for and expenditures associated with the operation and maintenance of commons areas within the District. Revenues are provided by ad valorem property taxes levied and received by the District. 136th Avenue General Improvement District Fund – accounts for revenues provided for and expenditures associated with the building of an interchange within the District. Revenues are provided by ad valorem property taxes levied and received by the District. Orchard Park Place North General Improvement District Fund – accounts for revenues provided for and expenditures associated with District improvements, maintenance of the improvements, and District administration. Revenues are provided by ad valorem property taxes levied and received by the District. Promenade Parking General Improvement District Fund – accounts for revenues provided for and expenditures associated with the operation and maintenance of a parking garage within the District. Revenues are provided by ad valorem property taxes levied and received by the District. Mandalay Town Center General Improvement District Fund – accounts for revenues provided for and expenditures associated with debt service for infrastructure improvements within the District. Revenues are provided by ad valorem property taxes levied and received by the District. 144th Avenue General Improvement District Fund – accounts for revenues provided for and expenditures associated with debt service for infrastructure improvements within the District. Revenues are provided by ad valorem property taxes levied and received by the District. Conservation Trust Fund - accounts for lottery proceeds received from the State of Colorado. Spending is restricted to the development or improvement of City parks. The City’s share is determined by population data and the existence of special recreational districts. Investigation Recovery Fund - accounts for proceeds from police seizures, forfeitures and restitutions. Spending is restricted by both Federal and State law to Police Department equipment, commodities, and/or training needs above budgeted amounts. In 2015, the City of Westminster did not receive any federal forfeited assets.  

88

Debt Service Fund General Debt Service Fund - accumulates monies for payment of the following bond issues: a) 2001 Sales and Use Tax Revenue Refunding Bonds of $13,275,000 originally issued; $1,150,000

remaining after 2010 refunding, due in annual installments through December 1, 2021; interest at 4.6 to 5.0 percent. Financing is provided by the City’s 3.0 percent sales and use tax.

b) 2007A Sales and Use Tax Revenue Refunding Bonds of $10,715,000 due in annual installments through December 1, 2016; interest at 4.25 percent. Financing is provided by the City’s 3.0 percent sales and use tax.

c) 2007B Special Purpose Sales and Use Tax Revenue Refunding Bonds of $13,680,000 due in annual installments through December 1, 2016, interest at 5.0 percent. Financing is provided by the City’s 0.25 percent open space sales and use tax.

d) 2007C Sales and Use Tax Revenue Refunding Bonds of $10,910,000 due in annual installments through December 1, 2016; interest at 5.25 percent. Financing is provided by the City’s 3.0 percent sales and use tax.

e) 2007D Special Purpose Sales and Use Tax Revenue Bonds of $20,000,000 originally issued; $960,000 remaining after 2015 refunding, due in annual installments through December 1, 2017, interest at 4.0 percent. Financing is provided by the City’s 0.25 percent open space sales and use tax.

f) 2010 Sales and Use Tax Revenue Refunding Bonds of $10,545,000 in annual installments through December 1, 2022; interest at 3.0 to 5.0 percent. Financing is provided by the City’s 3.0 percent sales and use tax.

g) 2015 Sales and Use Tax Revenue Refunding Bonds of $18,500,000 in annual installments through December 1, 2031; interest at 2.0 to 5.0 percent. Financing is provided by the City’s 3.0 percent sales and use tax.

Capital Projects Fund Community Development Block Grant Fund - accounts for monies received from the Federal government through Community Development Block Grant entitlements and the Section 108 Loan Guarantee Program. Community Development Block Grant entitlements are used to finance low income and senior housing. Section 108 loan Guarantee Program Funds are used for economic and community development activities. Additional financing is provided by General Fund revenues and investment earnings.

89

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90

Orchard Parks, Sheridan Park Promenade

Open Space Crossing Amherst 136th Ave Place Parking& Trails GID GID GID GID GID

ASSETSCash and cash equivalents 159,891$ 131,910$ 43,035$ 743$ 301$ 2$ Cash and cash equivalents w ith f iscal agent 4,272 - - - - - Investments 1,407,664 1,161,323 378,874 6,545 2,649 20 Receivables: Taxes 805,866 139,007 69,079 9,926 1,763 146 Accounts - 644 389 1,365 315 - Grants - - - - - - Interest 5,265 3,713 1,220 55 - - Property held for resale - - - - - - Prepaid items - - - - - - Restricted assets: Cash and cash equivalents - - - - - - Cash and cash equivalents w ith f iscal agent - - - - - - Investments - - - - - - Total assets 2,382,958$ 1,436,597$ 492,597$ 18,634$ 5,028$ 168$

LIABILITIES Accounts payable and other 20,351$ -$ -$ -$ -$ -$ Accrued liabilities 2,880 - - - - - Due to other funds - - - - - - Accrued interest - - - - - - Total liabilities 23,231 - - - - -

DEFERRED INFLOWS OF RESOURCES 145,000 139,007 69,079 9,926 1,763 146

FUND BALANCES Nonspendable:

Prepaids and inventories - - - - - - Property held for resale - - - - - -

Restricted for:Capital additions and improvements - 1,293,906 421,364 - 1,600 - Contractual obligations - - - 1,452 - 18 Emergencies - 3,684 2,154 7,256 1,665 4 Open space conservation and improvements 2,038,842 - - - - - Public safety - - - - - -

Assigned to:Community development 175,885 - - - - - Debt service - - - - - -

Unassigned - - - - - - Total fund balances 2,214,727 1,297,590 423,518 8,708 3,265 22

Total liabilities, deferred inflow s of resources, and fund balances 2,382,958$ 1,436,597$ 492,597$ 18,634$ 5,028$ 168$

Special Revenue Funds

NONMAJOR GOVERNMENTAL FUNDSDECEMBER 31, 2015

CITY OF WESTMINSTER, COLORADOCOMBINING BALANCE SHEET

91

Debt Service Capital Project Fund Fund

Total Community TotalMandalay Special Development Other

Tow n Center 144th Avenue Conservation Investigation Revenue Debt Block GovernmentalGID GID Trust Recovery Funds Service Grant Funds

217$ 159$ -$ 2,062$ 338,320$ 22,649$ -$ 360,969$ - - - - 4,272 - - 4,272

1,911 3,012 - 18,148 2,980,146 199,402 - 3,179,548

26,653 40,988 - - 1,093,428 - - 1,093,428 3,996 3,470 - - 10,179 - - 10,179

- - - - - - 40,120 40,120 55 56 5,931 55 16,350 610 - 16,960

- - - - - - 1,210,223 1,210,223 - - - - - - 260 260

- - 211,794 - 211,794 - - 211,794 - - - - - - 4,121 4,121 - - 1,864,614 - 1,864,614 - - 1,864,614

32,832$ 47,685$ 2,082,339$ 20,265$ 6,519,103$ 222,661$ 1,254,724$ 7,996,488$

-$ -$ 28,650$ -$ 49,001$ -$ 24,907$ 73,908$ - - - - 2,880 - 957 3,837 - - - - - - 14,516 14,516 - - - - - - 1,225 1,225 - - 28,650 - 51,881 - 41,605 93,486

26,653 40,988 - - 432,562 - 40,121 472,683

- - - - - - 260 260 - - - - - - 1,210,223 1,210,223

- - 2,053,689 - 3,770,559 - 2,636 3,773,195 2,107 2,267 - - 5,844 - - 5,844 4,072 4,430 - - 23,265 - - 23,265

- - - - 2,038,842 - - 2,038,842 - - - 20,265 20,265 - - 20,265

- - - - 175,885 - - 175,885 - - - - - 222,661 - 222,661 - - - - - - (40,121) (40,121)

6,179 6,697 2,053,689 20,265 6,034,660 222,661 1,172,998 7,430,319

32,832$ 47,685$ 2,082,339$ 20,265$ 6,519,103$ 222,661$ 1,254,724$ 7,996,488$

92

Orchard

Parks, Sheridan Park Promenade

Open Space Crossing Amherst 136th Ave Place Parking

& Trails GID GID GID GID GID

REVENUES

Property taxes -$ 104,240$ 63,191$ 10,727$ 2,457$ 131$

Sales taxes 4,972,604 - - - - -

Use taxes 1,135,646 - - - - -

Intergovernmental 385,561 9,037 5,464 231,004 53,036 -

Interest 13,599 9,513 3,144 144 (5) -

Fines and forfeitures - - - - - -

Other 44,805 - - - - -

Total revenues 6,552,215 122,790 71,799 241,875 55,488 131

EXPENDITURES

Current:

General government - 22,012 31,763 10,160 16,973 131

Community development 2,087,037 - - - - -

Capital projects - - - - - -

Debt service:

Principal - - - - - -

Interest and f iscal charges 20,887 - - - - -

Refunding bond issuance costs 193,988 - - - - -

Total expenditures 2,301,912 22,012 31,763 10,160 16,973 131

Excess of revenues over (under) expenditures 4,250,303 100,778 40,036 231,715 38,515 -

OTHER FINANCING SOURCES (USES) -

Issuance of refunding debt 18,500,000 - - - - -

Premium on refunding debt 2,210,722 - - - - -

Discount on refunding debt (40,247) - - - - - Payment to refunded bond escrow agent (20,451,328) - - - - -

Transfers in 32,025 - - - - -

Transfers (out) (4,308,722) - - (232,780) (38,891) -

Total other f inancing sources (uses): (4,057,550) - - (232,780) (38,891) -

Net change in fund balance 192,753 100,778 40,036 (1,065) (376) -

Fund balance, beginning 2,021,974 1,196,812 383,482 9,773 3,641 22

Fund balance, ending 2,214,727$ 1,297,590$ 423,518$ 8,708$ 3,265$ 22$

Special Revenue Funds

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

93

Debt Service Capital Project

Fund Fund

Total Community Total

Mandalay Special Development Other

Tow n Center 144th Ave Conservation Investigation Revenue Debt Block Governmental

GID GID Trust Recovery Funds Service Grant Funds

24,018$ 26,960$ -$ -$ 231,724$ -$ -$ 231,724$

- - - - 4,972,604 - - 4,972,604

- - - - 1,135,646 - - 1,135,646

46,041 48,451 776,616 - 1,555,210 - 637,668 2,192,878

175 142 15,826 150 42,688 27,417 2 70,107

- - - 1,926 1,926 - - 1,926

- - - - 44,805 - - 44,805

70,234 75,553 792,442 2,076 7,984,603 27,417 637,670 8,649,690

10,360 10,404 - 50 101,853 - - 101,853

- - - - 2,087,037 - - 2,087,037

- - 885,303 - 885,303 - 218,017 1,103,320

- - - - - 5,835,000 453,000 6,288,000

- - - - 20,887 1,866,460 7,855 1,895,202

- - - - 193,988 - - 193,988

10,360 10,404 885,303 50 3,289,068 7,701,460 678,872 11,669,400

59,874 65,149 (92,861) 2,026 4,695,535 (7,674,043) (41,202) (3,019,710)

- - - - 18,500,000 - - 18,500,000

- - - - 2,210,722 - - 2,210,722

- - - - (40,247) - - (40,247)

- - - - (20,451,328) - - (20,451,328)

- - - - 32,025 7,764,117 - 7,796,142

(59,582) (69,951) - - (4,709,926) - - (4,709,926)

(59,582) (69,951) - - (4,458,754) 7,764,117 - 3,305,363

292 (4,802) (92,861) 2,026 236,781 90,074 (41,202) 285,653

5,887 11,499 2,146,550 18,239 5,797,879 132,587 1,214,200 7,144,666

6,179$ 6,697$ 2,053,689$ 20,265$ 6,034,660$ 222,661$ 1,172,998$ 7,430,319$

94

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95

BUDGETARY COMPARISON SCHEDULES

GOVERNMENTAL FUNDS

96

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97

Variance w ith

Final Budget

Positive

Final Actual (Negative)

REVENUES

Accommodations taxes 2,388,047 2,997,207 609,160

Intergovernmental 3,625,716$ 4,119,474$ 493,758$

Assessments 35,000 41,662 6,662

Interest 270,000$ 329,392$ 59,392$

Contributions 9,793,776 6,584,703 (3,209,073)

Other 299,587 1,860 (297,727)

Total revenues 16,412,126 14,074,298 (2,337,828)

EXPENDITURES

Governmental Activities:

General government 1,706,302 1,706,302 -

Capital projects 113,844,106 31,087,189 82,756,917

Debt service:

Principal

Interest and f iscal charges 568,377 568,377 -

Bond issuance costs 338,300 338,300 -

Total expenditures 116,457,085 33,700,168 82,756,917

- - -

Excess of revenues under expenditures (100,044,959) (19,625,870) 80,419,089

OTHER FINANCING SOURCES AND (USES)

Issuance of leases 40,000,000 40,000,000 -

Premium on debt 2,863,465 2,863,465 -

Discount on debt (96,821) (96,821) -

Sale of asset 4,644,931 4,644,931 -

Transfers in 10,877,598 13,246,282 2,368,684

Transfers out - (385,000) (385,000)

Total other financing sources (uses): 58,289,173 60,272,857 1,983,684

Net change in fund balance (41,755,786)$ 40,646,987 82,402,773$

Fund balance, beginning 38,249,247

Fund balance, ending 78,896,234$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

GENERAL CAPITAL IMPROVEMENT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

98

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESSales taxes 4,654,692$ 4,972,604$ 317,912$ Use taxes 725,035 1,135,646 410,611 Intergovernmental 385,561 385,561 - Interest 10,000 13,599 3,599 Miscellaneous 98,368 44,805 (53,563) Total revenues 5,873,656 6,552,215 678,559

EXPENDITURESCommunity development 2,342,427 2,087,037 255,390 Debt service:

Interest and fiscal charges - 20,887 (20,887) Refunding bond issuance costs - 193,988 (193,988)

Total expenditures 2,342,427 2,301,912 40,515

Excess of revenues over expenditures 3,531,229 4,250,303 719,074

OTHER FINANCING SOURCES (USES)

Issuance of refunding debt 18,500,000 18,500,000 -

Premium on refunding debt 2,170,475 2,210,722 40,247

Discount on refunding debt - (40,247) (40,247)

Payment to refunded bond escrow agent (20,670,475) (20,451,328) 219,147

Transfers in 32,025 32,025 -

Transfers (out) (4,308,722) (4,308,722) -

Total other financing sources (uses): (4,276,697) (4,057,550) 219,147

Net change in fund balance (745,468)$ 192,753 938,221$

Fund balance, beginning 2,021,974

Fund balance, ending 2,214,727$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

PARKS, OPEN SPACE AND TRAILS SALES AND USE TAX FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

99

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESProperty taxes 104,478$ 104,240$ (238)$ Intergovernmental 8,400 9,037 637 Interest 10,500 9,513 (987) Total revenues 123,378 122,790 (588)

EXPENDITURESGeneral government 64,067 22,012 42,055 Total expenditures 64,067 22,012 42,055

Net change in fund balance 59,311$ 100,778 41,467$

Fund balance, beginning 1,196,812

Fund balance, ending 1,297,590$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

SHERIDAN CROSSING GENERAL IMPROVEMENT DISTRICT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

100

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESProperty taxes 63,152$ 63,191$ 39$ Intergovernmental 4,800 5,464 664 Interest 2,800 3,144 344 Total revenues 70,752 71,799 1,047

EXPENDITURESGeneral government 58,947 31,763 27,184 Total expenditures 58,947 31,763 27,184

Net change in fund balance 11,805$ 40,036 28,231$

Fund balance, beginning 383,482

Fund balance, ending 423,518$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

AMHERST GENERAL IMPROVEMENT DISTRICT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

101

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESProperty taxes 10,654$ 10,727$ 73$ Intergovernmental 238,463 231,004 (7,459) Interest 70 144 74 Total revenues 249,187 241,875 (7,312)

EXPENDITURESGeneral government 10,160 10,160 - Total expenditures 10,160 10,160 -

Income (loss) before transfers 239,027 231,715 (7,312)

OTHER FINANCING SOURCES (USES)

Transfers (out) (239,880) (232,780) 7,100

Net change in fund balance (853)$ (1,065) (212)$

Fund balance, beginning 9,773

Fund balance, ending 8,708$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

136TH AVENUE GENERAL IMPROVEMENT DISTRICT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

102

Variance w ith

Final Budget

Final Positive

Budget Actual (Negative)

REVENUES

Property taxes 2,461$ 2,457$ (4)$

Intergovernmental 51,416 53,036 1,620

Interest 15 (5) (20)

Total revenues 53,892 55,488 1,596

EXPENDITURES

General government 16,973 16,973 -

Total expenditures 16,973 16,973 -

Income (loss) before transfers 36,919 38,515 1,596

OTHER FINANCING SOURCES (USES)

Transfers (out) (38,891) (38,891) -

Net change in fund balance (1,972)$ (376) 1,596$

Fund balance, beginning 3,641

Fund balance, ending 3,265$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

ORCHARD PARK PLACE GENERAL IMPROVEMENT DISTRICT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

103

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESProperty taxes 131$ 131$ -$ Total revenues 131 131 -

EXPENDITURESGeneral government 131 131 -

Total expenditures 131 131 -

Net change in fund balance -$ - -$

Fund balance, beginning 22

Fund balance, ending 22$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

PROMENADE PARKING GENERAL IMPROVEMENT DISTRICT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

104

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESProperty taxes 25,480$ 24,018$ (1,462)$ Intergovernmental 42,900 46,041 3,141 Interest 40 175 135 Total revenues 68,420 70,234 1,814

EXPENDITURESGeneral government 10,382 10,360 22 Total expenditures 10,382 10,360 22

Income (loss) before transfers 58,038 59,874 1,836

OTHER FINANCING SOURCES (USES)

Transfers (out) (61,354) (59,582) 1,772

Net change in fund balance (3,316)$ 292 3,608$

Fund balance, beginning 5,887

Fund balance, ending 6,179$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

MANDALAY TOWN CENTER GENERAL IMPROVEMENT DISTRICT

FOR THE YEAR ENDED DECEMBER 31, 2015

105

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESProperty taxes 26,913$ 26,960$ 47$ Intergovernmental 45,000 48,451 3,451 Interest 550 142 (408) Total revenues 72,463 75,553 3,090

EXPENDITURES General government 10,404 10,404 - Total expenditures 10,404 10,404 -

Income (loss) before transfers 62,059 65,149 3,090

OTHER FINANCING SOURCES (USES)

Transfers (out) (69,951) (69,951) -

Net change in fund balance (7,892)$ (4,802) 3,090$

Fund balance, beginning 11,499

Fund balance, ending 6,697$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

144th AVENUE GENERAL IMPROVEMENT DISTRICT

FOR THE YEAR ENDED DECEMBER 31, 2015

106

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESIntergovernmental 675,000$ 776,616$ 101,616$ Interest 10,000 15,826 5,826 Total revenues 685,000 792,442 107,442

EXPENDITURESCapital projects 2,072,377 885,303 1,187,074 Total expenditures 2,072,377 885,303 1,187,074

Net change in fund balance (1,387,377)$ (92,861) 1,294,516$

Fund balance, beginning 2,146,550

Fund balance, ending 2,053,689$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

CONSERVATION TRUST FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

107

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESIntergovernmental 6,000$ 27,417$ 21,417$ Total revenues 6,000 27,417 21,417

EXPENDITURESDebt service:

Principal 5,835,000 5,835,000 - Interest and f iscal charges 1,869,333 1,866,460 2,873

Total expenditures 7,704,333 7,701,460 2,873

Income (loss) before transfers (7,698,333) (7,674,043) 24,290

OTHER FINANCING SOURCES (USES)

Transfers in 7,761,337 7,764,117 2,780

Net change in fund balance 63,004$ 90,074 27,070$

Fund balance, beginning 132,587

Fund balance, ending 222,661$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

DEBT SERVICE FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

108

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESIntergovernmental 578,221$ 637,668$ 59,447$ Interest - 2 2 Total Revenues 578,221 637,670 59,449

EXPENDITURESCapital projects 1,012,945 218,017 794,928 Debt service:

Principal 453,000 453,000 - Interest and f iscal charges 7,855 7,855 -

Total expenditures 1,473,800 678,872 794,928

Net change in fund balance (895,579)$ (41,202) 854,377$

Fund balance, beginning 1,214,200

Fund balance, ending 1,172,998$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

109

Nonmajor Proprietary Funds Golf Course Fund – accounts for all activities necessary to operate and maintain two championship golf courses and finance the related debt service. Westminster Housing Authority Fund – accounts for activities related to providing affordable housing within the City including partnering with for–profit and non-profit housing developers to construct or rehabilitate residences. Funds held by the WHA are used to leverage other funding sources such as Low Income Housing Tax Credits.

110

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111

Westminster

Golf Housing

Course Authority Total

ASSETS

Current assets:

Cash and cash equivalents 128,756$ 101,600$ 230,356$

Investments 1,410,216 894,477 2,304,693

Receivables:

Interest 4,434 2,827 7,261

Inventories 196,495 - 196,495

Bond insurance and other prepaid items 21,771 - 21,771

Total current assets 1,761,672 998,904 2,760,576

Noncurrent assets:

Notes receivable - 396,877 396,877

Capital assets:

Non-depreciable assets 13,487,255 201,173 13,688,428

Depreciable assets, net 4,076,204 782,883 4,859,087

Total noncurrent assets 17,563,459 1,380,933 18,944,392

Total assets 19,325,131 2,379,837 21,704,968

DEFERRED OUTFLOWS OF RESOURCES 33,133 - 33,133

LIABILITIES

Current liabilities:

Accounts payable and other 59,021 2,003 61,024

Accrued liabilities 20,099 - 20,099

Unearned revenue 37,684 - 37,684

Lease payable, current portion 675,383 - 675,383

Other liabilities, current portion 5,239 - 5,239

Accrued interest 27,170 - 27,170

Total current liabilities 824,596 2,003 826,599

Noncurrent liabilities:

Leases payable 3,716,324 - 3,716,324

Other liabilities payable 220,741 - 220,741

Total noncurrent liabilities 3,937,065 - 3,937,065

Total liabilities 4,761,661 2,003 4,763,664

NET POSITIONNet investment in capital assets 13,198,402 984,056 14,182,458

Unrestricted 1,398,201 1,393,778 2,791,979

Total net position 14,596,603$ 2,377,834$ 16,974,437$

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF NET POSITION

NONMAJOR PROPRIETARY FUNDS

DECEMBER 31, 2015

112

Westminster

Golf Housing

Course Authority Total

Operating revenues

Charges for services 3,483,098$ -$ 3,483,098$

Rentals - 10 10

Other 5,323 14,576 19,899

Total operating revenues 3,488,421 14,586 3,503,007

Operating expenses

Personnel services 1,584,500 - 1,584,500

Contractural services 618,413 7,956 626,369

Commodities 544,274 35 544,309

Capital expense 42,742 72,066 114,808

Depreciation expense 561,674 45,434 607,108

Total operating expenses 3,351,603 125,491 3,477,094

Operating income (loss) 136,818 (110,905) 25,913

Nonoperating revenues (expenses)

Income on investments 11,622 8,032 19,654

Interest expense (151,062) - (151,062)

Grants 4,180 - 4,180

Total nonoperating revenues (expenses) (135,260) 8,032 (127,228)

Income before contributions and transfers 1,558 (102,873) (101,315)

Capital contributions 32,386 - 32,386

Transfers in 435,371 - 435,371

Change in net position 469,315 (102,873) 366,442

Net position - beginning 14,127,288 2,480,707 16,607,995

Net position - ending 14,596,603$ 2,377,834$ 16,974,437$

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

NONMAJOR PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

113

Westminster

Golf Housing

Course Authority Total

Cash flows from operating activities:

Receipts from customers 3,495,056$ 10$ 3,495,066$

Cash payments to employees for services (1,675,263) - (1,675,263)

Cash payments to suppliers for goods and services (1,172,761) (89,685) (1,262,446)

Other operating revenues (expenses) - 14,576 14,576

Net cash provided by (used in) operating activities 647,032 (75,099) 571,933

Cash flows from noncapital financing activities:

Transfer in 435,371 - 435,371

Grant proceeds not restricted to capital purposes 4,180 - 4,180

Net cash provided by (used in) noncapital financing activities 439,551 - 439,551

Cash flows from capital and related financing activities:

Principal paid on long-term debt (663,703) - (663,703)

Interest paid on long-term debt (153,110) - (153,110)

Acquisition and construction of capital assets (110,674) - (110,674)

Net cash proviced by (used in) capital and related financing activities (927,487) - (927,487)

Cash flow from investing activities:

Proceeds from sale of investments 821,299 629,688 1,450,987

Purchases of investments (931,915) (516,091) (1,448,006)

Interest received on investments 8,658 9,956 18,614

Net cash provided by (used in) investing activities (101,958) 123,553 21,595

Net increase (decrease) in cash and cash equivalents 57,138 48,454 105,592

Cash and cash equivalents - beginning of year 71,618 53,146 124,764

Cash and cash equivalents - end of year 128,756$ 101,600$ 230,356$

(Continued)

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR PROPRIETARY FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

114

Westminster

Golf Housing

Course Authority Total

Reconciliation of operating income (loss) to net

cash provided by (used in) operating activities

Operating income (loss) 136,818$ (110,905)$ 25,913$

Adjustments to reconcile operating income (loss) to net cash

provided by (used in) operating activities:

Depreciation 561,674 45,434 607,108

(Increase) decrease in accounts receivable 74 - 74

(Increase) decrease in inventories 4,941 - 4,941

(Increase) decrease in prepaid items (16) - (16)

Increase (decrease) in unearned revenue 6,560 - 6,560

Increase (decrease) in accounts payable and other (22,304) (9,628) (31,932)

Increase (decrease) in accrued liabilities (40,715) - (40,715)

Total adjustments 510,214 35,806 546,020

Net cash provided by (used in) operating activities 647,032$ (75,099)$ 571,933$

Non-cash investing, capital, and financing activities:

FOR THE YEAR ENDED DECEMBER 31, 2015

(Continued)

* The unrecognized loss recorded to value the non-cash investments of the non-major enterprise funds to fair market value was $4,193.

* Net amortization totaling $1,926 was recognized through the amortization of bond premiums, discounts, deferred loss on refunding, and bond insurance costs.

* Accrued interest increased for non-major enterprise funds by $122.* An allowance for doubtful collection was recorded for a note receivable in the amount of $123,000 in the Westminster Housing Authority.

* Capital contributions were received by the Golf Funds from the General Capital Improvement Fund in the amount of $32,386.

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR PROPRIETARY FUNDS

115

BUDGETARY COMPARISON SCHEDULES

PROPRIETARY FUNDS

116

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117

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

Operating revenuesCharges for services 52,582,891$ 50,580,355$ (2,002,536)$ Other 485,000 411,269 (73,731) Total operating revenues 53,067,891 50,991,624 (2,076,267)

Operating expensesPersonnel services 17,272,624 16,588,203 684,421 Contractual services 13,598,987 12,305,129 1,293,858 Commodities 2,184,330 1,631,164 553,166 Capital expense 82,741,381 32,169,540 50,571,841 Insurance and other expenses - 1,622 (1,622) Total operating expenses 115,797,322 62,695,658 53,101,664

Operating loss (62,729,431) (11,704,034) 51,025,397

Nonoperating revenues (expenses)Income on investments 672,917 614,512 (58,405) Debt service (7,029,147) (7,022,068) 7,079 Grants 2,439,676 2,702,665 262,989 Disposition of assets - 26,950 26,950 Contributions 13,141,837 14,024,730 882,893 Other - 480,793 480,793 Issuance of debt 4,610,000 4,610,000 - Total nonoperating revenues (expenses) 13,835,283 15,437,582 1,602,299

Income before transfers (48,894,148) 3,733,548 52,627,696

Transfers in 1,036,185 2,678,752 1,642,567 Transfers (out) (3,145,752) (3,145,752) -

Change in net position (51,003,715)$ 3,266,548 54,270,263$

Adjustments to GAAP basis

Debt

Principal payments 4,664,304

Issuance of bonds (4,610,000)

Amortization of prepaid bond sale expense (11,536)

Amortization of premiums and discounts 38,663

Accrued interest adjustment (93,045)

Capital assets

Acquisitions 29,360,837

Net book value of disposals (14,953)

Depreciation (12,357,559)

Inventories 39,004

General leave accrual (62,120)

Change in net position, GAAP basis 20,220,143$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

UTILITY FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

118

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

Operating revenuesCharges for services 3,283,750$ 3,488,421$ 204,671$

Total operating revenues 3,283,750 3,488,421 204,671

Operating Expenses

Personnel services 1,613,985 1,543,108 70,877

Contractual services 1,450,669 1,433,302 17,367

Commodities 559,343 539,332 20,011

Capital expense 629,438 153,415 476,023

Total operating expenses 4,253,435 3,669,157 584,278

Operating loss (969,685) (180,736) 788,949

Nonoperating revenues (expenses)

Income on investments - 11,622 11,622

Debt service - (1,926) (1,926)

Grants 4,180 - (4,180)

Other - 4,180 4,180

Total nonoperating revenues (expenses) 4,180 13,876 9,696

Loss before transfers (965,505) (166,860) 798,645

Transfers in 435,371 435,371 -

Change in net position (530,134)$ 268,511 798,645$

Adjustments to GAAP basis

Debt

Principal payments 663,703

Amortization of prepaid bond sale expense (2,901)

Amortization of premiums and discounts 9,245

Amortization of loss on refunding (4,418)

Accrued interest adjustment 122

Capital assets

Acquisitions 110,674

Capital contributions 32,386

Depreciation (561,674)

Inventories (4,941)

General leave accrual (41,392)

Change in net position, GAAP basis 469,315$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

GOLF COURSE FUND

FOR THE YEAR ENDED DECEMBER 31, 2015

119

Variance w ith

Final Budget

Final Positive

Budget Actual (Negative)

Operating revenues

Rentals 10$ 10$ -$

Other - 14,576 14,576

Total operating revenues 10 14,586 14,576

Operating expenses

Contractual services 13,500 7,956 5,544

Commodities 1,500 35 1,465

Capital Expense 450,613 72,066 378,547

Total operating expenses 465,613 80,057 385,556

Operating loss (465,603) (65,471) 400,132

Nonoperating revenues

Income on investments - 8,032 8,032

Total nonoperating revenues - 8,032 8,032

Change in net position (465,603)$ (57,439) 408,164$

Adjustments to GAAP basis

Capital assets

Depreciation (45,434) Change in net position, GAAP Basis (102,873)$

CITY OF WESTMINSTER, COLORADO

BUDGETARY COMPARISON SCHEDULE

WESTMINSTER HOUSING AUTHORITY

FOR THE YEAR ENDED DECEMBER 31, 2015

120

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121

Internal Service Funds Medical and Dental Self-Insurance Fund - accounts for the resources and payment of dental and medical claims of employees and their covered dependents. Workers’ Compensation Self-Insurance Fund - accounts for the resources and payment of workers’ compensation claims of employees. Property and Liability Self-Insurance Fund - accounts for the payment of property and liability claims against the City from resources accumulated for this purpose. General Capital Outlay Replacement Fund – accounts for the replacement of the City’s fleet and other capital assets.

122

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123

Medical and Workers' Property and GeneralDental Self- Compensation Liability Self- Capital OutlayInsurance Self-Insurance Insurance Replacement Total

ASSETSCurrent assets:Cash and cash equivalents 457,955$ 624,457$ 477,869$ 416,338$ 1,976,619$ Cash and cash equivalents w ith f iscal agent 189,655 - - - 189,655 Investments 4,031,797 5,497,666 4,207,120 3,665,407 17,401,990 Receivables: Accounts 133 - 21,133 - 21,266 Interest 12,859 17,515 13,358 10,864 54,596 Prepaid items - 2,700 - - 2,700 Total current assets 4,692,399 6,142,338 4,719,480 4,092,609 19,646,826 Noncurrent assets:Capital assets: Depreciable assets, net - - - 6,383,646 6,383,646 Total assets 4,692,399 6,142,338 4,719,480 10,476,255 26,030,472

LIABILITIESCurrent liabilities: Accounts payable and other 298,219 57,162 55,153 16,244 426,778 Accrued liabilities 1,017 - 1,980 - 2,997 Lease payable, current portion - - - 262,888 262,888 Other liabilities, current portion 1,188 - 1,666 - 2,854 Accrued interest - - - 17,667 17,667 Estimated claims 1,018,041 298,334 490,269 - 1,806,644 Total current liabilities 1,318,465 355,496 549,068 296,799 2,519,828 Noncurrent liabilities: Leases payable - - - 553,828 553,828 Other liabilities payable 17,778 - 9,356 - 27,134 Total noncurrent liabilities 17,778 - 9,356 553,828 580,962 Total liabilities 1,336,243 355,496 558,424 850,627 3,100,790

NET POSITIONNet investment in capital assets - - - 5,550,685 5,550,685 Unrestricted 3,356,156 5,786,842 4,161,056 4,074,943 17,378,997 Total net position 3,356,156$ 5,786,842$ 4,161,056$ 9,625,628$ 22,929,682$

Governmental ActivitiesInternal Service Funds

CITY OF WESTMINSTER, COLORADOCOMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDSDECEMBER 31, 2015

124

Medical and Workers' Property and General

Dental Self- Compensation Liability Self- Capital Outlay

Insurance Self-Insurance Insurance Replacement Total

Operating revenues

Charges for services 12,768,136$ 1,064,758$ 1,366,724$ 3,128,793$ 18,328,411$

Other 133 96 - - 229

Total operating revenues 12,768,269 1,064,854 1,366,724 3,128,793 18,328,640

Operating expenses

Personnel services 92,978 1,587 183,389 - 277,954

Contractural services 1,709,579 132,421 552,169 - 2,394,169

Commodities 7,660 28,789 2,747 - 39,196

Capital expense - - - 681,793 681,793

Insurance and other expenses 12,225,131 693,443 943,667 - 13,862,241

Depreciation - - - 1,608,703 1,608,703

Total operating expenses 14,035,348 856,240 1,681,972 2,290,496 18,864,056

Operating income (loss) (1,267,079) 208,614 (315,248) 838,297 (535,416)

Nonoperating revenues (expenses)

Income on investments 35,541 44,578 36,773 27,432 144,324

Interest expense - - - (31,014) (31,014)

Grants - - - 8,260 8,260

Gain on disposition of capital assets - - - 109,541 109,541 Total nonoperating revenues (expenses) 35,541 44,578 36,773 114,219 231,111

Change in net position (1,231,538) 253,192 (278,475) 952,516 (304,305)

Net position - beginning 4,587,694 5,533,650 4,439,531 8,673,112 23,233,987

Net position - ending 3,356,156$ 5,786,842$ 4,161,056$ 9,625,628$ 22,929,682$

Governmental Activities

Internal Service Funds

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

125

Medical and Workers' Property and General

Dental Self- Compensation Liability Self- Capital Outlay

Insurance Self-Insurance Insurance Replacement Total

Cash flow s from operating activities:

Receipts from interfund charges for risk management services 12,768,136$ 104,702$ 46,775$ -$ 12,919,613$

Receipts from interfund charges for capital outlay repalcement - - - 3,128,793 3,128,793

Cash payments to employees for services (92,600) (1,587) (179,727) - (273,914)

Cash payments to suppliers for goods and services (13,651,026) (740,422) (1,284,935) (682,598) (16,358,981)

Payments from other funds - 960,055 1,298,816 - 2,258,871

Other operating revenues - 96 - - 96

Net cash provided by (used in) operating activities (975,490) 322,844 (119,071) 2,446,195 1,674,478

Cash flow s from capital and related financing activities:

Principal paid on long term debt - - - (312,931) (312,931)

Interest paid on long term debt - - - (30,973) (30,973)

Acquisition and construction of capital assets - - - (1,935,664) (1,935,664)

Proceeds from sale of capital assets - - - 78,202 78,202

Proceeds from grant/notes - - - 8,260 8,260

Net cash provided (used in) capital and related f inancing activities - - - (2,193,106) (2,193,106)

Cash flow from investing activities:

Proceeds from sale of investments 3,432,960 3,022,954 2,680,786 1,870,871 11,007,571

Purchases of investments (2,298,351) (3,062,939) (2,367,295) (1,931,592) (9,660,177)

Interest received on investments 46,362 53,822 45,109 33,916 179,209

Net cash provided by (used in) investing activities 1,180,971 13,837 358,600 (26,805) 1,526,603

Net increase (decrease) in cash and cash equivalents 205,481 336,681 239,529 226,284 1,007,975

Cash and cash equivalents - beginning of year 442,129 287,776 238,340 190,054 1,158,299

Cash and cash equivalents - end of year 647,610$ 624,457$ 477,869$ 416,338$ 2,166,274$

Reconciliation of operating income (loss) to net

cash provided by (used in) operating activities

Operating income (loss) (1,267,079)$ 208,614$ (315,248)$ 838,297$ (535,416)$

Adjustments to reconcile operating income (loss) to net cash

provided by (used in) operating activities:

Depreciation - - - 1,608,703 1,608,703

(Increase) decrease in accounts receivable (133) - (21,133) - (21,266)

(Increase) decrease in prepaid items - (2,700) 2,700 - -

Increase (decrease) in accounts payable and other (98,150) (9,263) 39,469 (805) (68,749)

Increase (decrease) in accrued liabilities 378 - 1,325 - 1,703

Increase (decrease) in estimated claims 389,494 126,193 173,816 - 689,503

Total adjustments 291,589 114,230 196,177 1,607,898 2,209,894 Net cash provided by (used in) operating activities (975,490)$ 322,844$ (119,071)$ 2,446,195$ 1,674,478$

* The General Capital Outlay Internal Service Fund disposed of capital assets at a gain of $31,339.

Internal Service Funds

* Accounts payable used to acquire capital assets decreased by $25,169 for the General Capital Outlay Replacement Internal Service Fund.

* Accrued interest decreased for the General Capital Outlay Replacement Internal Service Fund by $41.

* The unrecognized loss recorded to value the non-cash investments of the City's internal service funds to fair market value w as $32,176.

CITY OF WESTMINSTER, COLORADO

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS

FOR THE YEAR ENDED DECEMBER 31, 2015

Governmental Activities

Non-cash investing, capital, and financing activities:

126

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127

BUDGETARY COMPARISON SCHEDULES

INTERNAL SERVICE FUNDS

128

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129

Variance w ithFinal Budget

Final PositiveBudget Actual (Negative)

REVENUESCharges for services 3,128,793$ 3,128,793$ -$

Total operating revenues 3,128,793 3,128,793 -

Operating expenses

Capital expense 7,569,136 2,617,457 4,951,679

Total operating expenses 7,569,136 2,617,457 4,951,679

Operating income (4,440,343) 511,336 4,951,679

Nonoperating revenues (expenses)

Income on investments - 27,432 27,432

Debt service (343,904) (343,904) -

Grants 8,260 8,260 -

Disposition of assets - 133,302 133,302

Total nonoperating revenues (expenses) (335,644) (174,910) 160,734

Change in net position (4,775,987)$ 336,426 5,112,413$

Adjustments to GAAP basis

Debt

Principal payments 312,931

Accrued interest adjustment (41)

Capital assets

Acquisitions 1,935,664

Net book value of disposals (23,761)

Depreciation (1,608,703)

Change in Net Position, GAAP Basis 952,516$

CITY OF WESTMINSTER, COLORADOBUDGETARY COMPARISON SCHEDULE

GENERAL CAPITAL OUTLAY REPLACEMENT FUNDFOR THE YEAR ENDED DECEMBER 31, 2015

130

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STATISTICALSECTION

131

STATISTICAL SECTION (Unaudited)

Table Financial Trends Information These schedules contain trend information to help the reader understand how the city’s

financial performance and wellbeing are changed over time.

Net Position by Component 1 Changes in Net Position 2 Fund Balance of Governmental Funds 3 Changes in Fund Balances of Governmental Funds 4

Revenue Capacity Information These schedules contain information to help the reader assess the city’s most significant

local revenue source, the sales and use tax.

Sales and Use Tax Revenue 5 Direct and Overlapping Sales and Use Tax Rates 6 Principal Sales and Use Taxpayers by Industry 7

Debt Capacity Information 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.

Ratios of Outstanding Debt by Type 8 Direct and Overlapping Governmental Activities Debt 9 Legal Debt Margin Information 10 Pledged Revenue Coverage 11

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within the city’s financial activity take place. Demographic and Economic Statistics 12 Principal Employers 13

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. Full Time Equivalent City Government Employees by Function/Program 14 Operating Indicators by Function/Program 15 Capital Asset Statistics by Function/Program 16

132

This Page Intentionally Blank

Ta

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Go

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t in

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:G

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2010

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Ge

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Sal

e of

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To

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11

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24

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918)

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Deb

t S

ervi

ce a

s a

perc

enta

ge o

fno

ncap

ital e

xpen

ditu

res

12.9

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.9%

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16.4

%13

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18.4

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11.6

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137

Ta

ble

5S

ale

s a

nd

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Ta

x R

eve

nu

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

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cal Y

ear

City

Sal

es a

nd U

se T

ax

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lic S

afet

y

Sal

es a

nd U

se T

ax 1

Ope

n S

pace

Sal

es a

nd U

se T

ax 2

Tota

l Dire

ct T

ax R

ate

2006

53,6

40,0

6011

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,410

4,

679,

093

3.85

%20

0756

,966

,362

11,9

27,3

67

5,00

6,60

33.

85%

2008

60,5

28,5

0912

,196

,830

5,

080,

740

3.85

%20

0957

,689

,143

11,5

26,1

70

4,80

1,29

43.

85%

2010

60,6

77,4

0011

,832

,426

5,

001,

503

3.85

%20

1159

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,797

11

,887

,799

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951,

978

3.85

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1260

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12

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5,

023,

081

3.85

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1364

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12

,886

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5,

368,

023

3.85

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1468

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13

,635

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5,

680,

123

3.85

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1573

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14

,663

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6,

108,

251

3.85

%

Sou

rce:

City

Sal

es T

ax D

ivis

ion

1 The

Pub

lic S

afet

y S

ales

and

Use

Tax

was

impl

emen

ted

Janu

ary

1, 2

004.

2 The

Ope

n S

pace

Sal

es a

nd U

se T

ax w

as im

plem

ente

d Ja

nuar

y 1,

198

5.

138

Ta

ble

6D

ire

ct a

nd

Ove

rla

pp

ing

Sa

les

an

d U

se T

ax

Ra

tes

Cit

y o

f W

est

min

ste

rL

ast

te

n f

isca

l ye

ars

City

Dire

ct R

ates

Ove

rlapp

ing

Rat

es 3

Fis

cal

Yea

r

City

Sal

es a

nd

Use

Tax

Pub

lic S

afet

yS

ales

and

U

se

Tax

1

Ope

n S

pace

Sal

es a

nd

Use

Tax

2To

tal D

irect

Tax

Rat

eS

tate

of

Col

orad

o

Ada

ms

Cou

nty

Sal

es T

ax

Jeffe

rson

Cou

nty

Sal

es T

ax

RTD

/C

D/F

DS

ales

Tax

2006

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

70%

0.50

%1.

20%

2007

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

20%

2008

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

20%

2009

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

20%

2010

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

20%

2011

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

20%

2012

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

10%

2013

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

10%

2014

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

10%

2015

3.00

%0.

60%

0.25

%3.

85%

2.90

%0.

75%

0.50

%1.

10%

Sou

rce:

City

Sal

es T

ax D

ivis

ion

1 The

Pub

lic S

afet

y S

ales

and

Use

Tax

was

impl

emen

ted

Janu

ary

1, 2

004.

2 The

Ope

n S

pace

Sal

es a

nd U

se T

ax w

as im

plem

ente

d Ja

nuar

y 1,

198

5.3 O

verla

ppin

g ra

tes

are

thos

e of

cou

nty

gove

rnm

ents

and

tax

dis

tric

ts w

ithin

the

City

of W

estm

inst

er.

Not

all

over

lapp

ing

r

ates

app

ly t

o al

l sal

es t

rans

actio

ns.

139

Ta

ble

7P

rin

cip

al

Sa

les

an

d U

se T

ax

Pa

yers

by

Ca

teg

ory

Cit

y o

f W

est

min

ste

rC

urr

en

t Y

ea

r a

nd

Nin

e Y

ea

rs A

go

Fis

cal Y

ear

2015

Fis

cal Y

ear

2006

Cat

egor

yS

ales

and

Use

Ta

x A

mou

ntR

ank

Per

cent

age

ofTo

tal C

ity S

ales

and

Use

Tax

Sal

es a

nd U

se

Tax

Am

ount

Ran

k

Per

cent

age

ofTo

tal C

ity S

ales

and

Use

Tax

Dep

artm

ent

and

Dis

coun

t S

tore

s19

,745

,913

$

1

21.0

%14

,306

,306

$

1

20.6

%R

esta

uran

ts10

,397

,211

211

.1%

6,94

6,57

5

310

.0%

Aut

omob

ile9,

051,

193

3

9.6%

6,26

1,58

8

59.

0%U

tility

/Tel

ecom

mun

icat

ions

8,78

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5

49.

3%8,

141,

040

2

11.7

%B

uild

ing/

Hom

e Im

prov

emen

t8,

645,

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5

9.2%

6,73

8,09

2

49.

7%G

roce

ry6,

025,

790

6

6.4%

5,28

8,89

0

67.

6%

Sou

rce:

City

Sal

es T

ax D

ivis

ion

Not

e:

Due

to

requ

irem

ents

und

er t

he C

ity C

ode,

the

nam

es o

f the

larg

est

reve

nue

paye

rs a

re h

eld

as c

onfid

entia

l.

The

cate

gorie

s pr

esen

ted

are

inte

nded

to

prov

ide

alte

rnat

ive

info

rmat

ion

rega

rdin

g th

e so

urce

s of

the

City

's r

even

ue.

140

Ta

ble

8R

ati

os

of

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tsta

nd

ing

De

bt

by

Typ

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Gov

ernm

enta

l Act

iviti

esB

usin

ess-

Type

Act

iviti

es

Fis

cal

Yea

rR

even

ue

Bon

dsTa

x In

crem

ent

Bon

dsN

otes

Cap

ital

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esR

even

ue

Bon

dsN

otes

Cap

ital

Leas

esTo

tal P

rimar

y G

over

nmen

tP

er C

apita

1

2006

60,1

73,1

86

112,

223,

047

-

86,9

60,1

59

26,2

54,0

67

41,0

53,2

85

2,25

0,78

2

32

8,91

4,52

6

2,99

920

0775

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12

0,04

4,04

5

-

83

,047

,709

24

,236

,572

38

,705

,060

2,

507,

662

343,

607,

464

3,

132

2008

70,4

43,3

43

119,

735,

076

-

79,9

14,1

50

16,2

50,0

19

36,5

17,7

57

835,

300

323,

695,

645

2,

909

2009

65,6

25,2

70

108,

568,

501

-

76,1

93,3

89

14,3

28,4

66

33,9

32,9

56

1,07

5,36

6

29

9,72

3,94

8

2,74

120

1061

,109

,196

10

4,88

3,17

1

-

75

,754

,921

37

,291

,914

31

,790

,310

5,

450,

956

316,

280,

468

2,

724

2011

56,2

02,9

15

100,

713,

157

-

71,2

10,1

91

35,4

60,3

61

29,1

41,1

72

4,98

9,58

3

29

7,71

7,37

9

2,71

520

1251

,151

,751

97

,880

,475

1,

612,

724

65,4

33,7

63

33,5

58,8

08

24,1

23,3

95

4,42

7,85

6

27

8,18

8,77

2

2,57

720

1347

,001

,480

93

,599

,570

1,

612,

724

62,8

80,5

51

31,5

77,2

55

21,0

77,3

41

4,51

6,93

7

26

2,26

5,85

8

2,39

620

1441

,214

,039

88

,185

,621

1,

612,

724

56,4

74,7

66

29,5

05,0

00

18,3

74,4

33

5,06

4,65

4

24

0,43

1,23

7

2,16

720

1536

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82

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1,

159,

724

93,0

27,4

40

32,2

91,8

67

15,5

81,4

64

4,30

4,84

1

26

5,38

9,07

8

2,36

8

Not

e: D

etai

ls r

egar

ding

the

City

's o

utst

andi

ng d

ebt

can

be fo

und

in t

he n

otes

to

the

finan

cial

sta

tem

ents

.

1P

erso

nal i

ncom

e an

d po

pula

tion

data

can

be

foun

d on

Tab

le 1

2.

141

Ta

ble

9D

ire

ct a

nd

Ove

rla

pp

ing

Go

vern

me

nta

l A

ctiv

itie

s D

eb

tC

ity

of

We

stm

inst

er

As

of

De

cem

be

r 31

, 20

15

Gov

ernm

enta

l Uni

tD

ebt

Out

stan

ding

Est

imat

ed P

erce

ntag

e A

pplic

able

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imat

ed S

hare

of

Ove

rlapp

ing

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t

Ada

ms

Cou

nty

Fire

Pro

tect

ion

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tric

t75

3,18

6,82

0$

0.

01%

75,3

19$

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dam

s C

ount

y F

ire D

istr

ict

2 S

outh

wes

t41

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0.26

%10

7

A

dam

s C

ount

y S

choo

l Dis

tric

t #1

225

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7,52

7

26

.79%

67,6

30,6

92

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x P

ark

& R

ec D

istr

ict

3,00

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0

12

10.3

9%36

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pex

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k &

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tric

t E

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ada

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tect

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tric

t8,

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000

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7

B

radb

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ro #

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957,

000

100.

00%

4,95

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B

radb

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ro #

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000

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00%

7,47

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C

hurc

h R

anch

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ro D

istr

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1,58

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0.00

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000

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ntry

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b H

ighl

ands

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ro D

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ict

2,10

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2

10

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102,

872

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ntry

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illag

e M

etro

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tric

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845,

000

100.

00%

2,84

5,00

0

C

ount

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le M

etro

polit

ian

Dis

tric

t17

,100

,000

10

0.00

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untin

gton

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ils M

etro

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tric

t6,

834,

867

100.

00%

6,83

4,86

7

H

ylan

d H

ills

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k &

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reat

ion

8,37

5,00

0

53

.56%

4,48

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ylan

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illag

e M

etro

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tric

t4,

770,

000

100.

00%

4,77

0,00

0

Je

ffers

on C

ount

y S

choo

l Dis

tric

t R

-141

7,34

0,00

0

7.

05%

29,4

22,4

70

NB

C M

etro

polit

an D

istr

ict

5,31

5,00

0

10

0.00

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315,

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Nor

th M

etro

Fire

and

Res

cue

38,5

35,0

00

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%25

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1

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nn M

etro

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tric

t4,

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000

97.6

7%3,

970,

286

Wes

tmin

ster

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lic S

choo

ls76

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,000

46

.01%

35,0

09,0

09

Sub

tota

l, ov

erla

ppin

g de

bt23

3,14

5,12

0$

City

Dire

ct d

ebt

213,

210,

906

Tota

l dire

ct a

nd o

verla

ppin

g de

bt44

6,35

6,02

6$

Not

e:

Ove

rlapp

ing

gove

rnm

ents

are

tho

se t

hat

coin

cide

, at

leas

t in

par

t, w

ith t

he g

eogr

aphi

c bo

unda

ries

of t

he C

ity.

Thi

s sc

hedu

le e

stim

ates

the

por

tion

of t

he o

utst

andi

ng d

ebt

of t

hose

ove

rlapp

ing

gove

rnm

ents

tha

t is

bor

ne b

y th

e re

side

nts

and

busi

ness

es o

f the

City

. T

his

proc

ess

reco

gniz

es t

hat,

whe

n co

nsid

erin

g th

e go

vern

men

t's a

bilit

y to

issu

e an

d re

pay

long

-ter

m

debt

, th

e en

tire

debt

bur

den

born

e by

the

res

iden

ts a

nd b

usin

esse

s sh

ould

be

take

n in

to a

ccou

nt.

How

ever

, th

is d

oes

not

impl

y th

at e

very

tax

paye

r is

a r

esid

ent.

And

the

refo

re r

espo

nsib

le fo

r re

payi

ng t

he d

ebt,

of e

ach

over

lapp

ing

gove

rnm

ent.

Sou

rce:

A

sses

sed

valu

e da

ta u

sed

to e

stim

ate

appl

icab

le p

erce

ntag

es p

rovi

ded

by A

dam

s C

ount

y an

d Je

ffers

on C

ount

y G

over

nmen

ts.

Deb

t ou

tsta

ndin

g da

ta p

rovi

ded

by e

ach

gove

rnm

enta

l uni

t.

City

dire

ct d

ebt

deta

ils c

an b

e fo

und

on T

able

8.

142

Ta

ble

10

Le

ga

l D

eb

t M

arg

in I

nfo

rma

tio

nC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Le

ga

l D

eb

t M

arg

in C

alc

ula

tio

n f

or

Fis

cal

Ye

ar

2013

Act

ual v

alue

of t

axab

le p

rope

rty

1

Ada

ms

Cou

nty

port

ion

of t

he C

ity6,

471,

210,

513

$ Je

ffers

on C

ount

y po

rtio

n of

the

City

5,01

2,73

1,30

2

To

tal a

ctua

l val

ue11

,483

,941

,815

$

Deb

t lim

it (3

% o

f act

ual v

alue

2)

344,

518,

254

$

Deb

t ap

plic

able

to

limit:

Bon

ded

debt

- g

ener

al o

blig

atio

n on

ly-

$

In

stal

lmen

t of

leas

e/pu

rcha

se c

ontr

acts

for

purc

hase

of p

rope

rty

or e

quip

men

t393

,102

,037

93

,102

,037

Less

ded

uctio

ns a

llow

ed b

y la

w:

-

Tota

l net

deb

t ap

plic

able

to

limit

93,1

02,0

37

Lega

l deb

t m

argi

n25

1,41

6,21

7$

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Deb

t lim

it34

4,51

8,25

4$

29

7,49

7,24

8$

29

8,19

9,06

1$

29

4,62

3,45

3$

296,

197,

301

$

305,

686,

451

$

306,

001,

998

$

315,

072,

736

$

311,

178,

234

$

300,

968,

004

$

Tota

l net

deb

t ap

plic

able

to

limit

93,1

02,0

37

59

,711

,741

65,3

41,8

24

70

,496

,233

76,9

42,0

93

82,0

58,1

07

77

,901

,812

85,6

85,0

00

83

,852

,128

86,8

10,5

39

Lega

l deb

t m

argi

n25

1,41

6,21

7$

23

7,78

5,50

7$

23

2,85

7,23

7$

22

4,12

7,22

0$

219,

255,

208

$

223,

628,

344

$

228,

100,

186

$

229,

387,

736

$

227,

326,

106

$

214,

157,

465

$

Tota

l net

deb

t ap

plic

able

to

the

limit

as a

per

cent

age

of d

ebt

limit

27.0

2%20

.07%

21.9

1%23

.93%

25.9

8%26

.84%

25.4

6%27

.20%

26.9

5%28

.84%

1 Sou

rce

Ada

ms

Cou

nty

and

Jeffe

rson

Cou

nty

Ass

esso

rs' O

ffice

s2C

RS

31-

15-3

02 (

3% li

mit)

3In

clud

ed in

gen

eral

obl

igat

ion

inde

bted

ness

per

Sec

tion

11.1

of C

ity C

hart

er

143

Ta

ble

11

Ple

dg

ed

Re

ven

ue

Co

vera

ge

Cit

y o

f W

est

min

ste

rL

ast

te

n f

isca

l ye

ars

Less

:D

ebt

Ser

vice

Fis

cal

Yea

rA

pplic

able

R

even

ues

Ope

ratin

g E

xpen

ses

Net

Ple

dged

R

even

ueP

rinci

pal

Inte

rest

Cov

erag

e

2006

51,8

79,4

13$

(29,

305,

618)

$

22,5

73,7

95$

3,83

2,67

9$

2,

393,

501

$

3.63

2007

47,7

16,6

90(3

0,27

8,15

9)17

,438

,531

3,94

7,98

72,

148,

085

2.86

2008

52,8

90,2

92(3

4,17

8,87

7)18

,711

,415

9,91

3,35

22,

159,

562

1.55

2009

38,9

62,2

25(3

4,91

4,94

5)4,

047,

280

3,91

3,08

81,

821,

361

0.71

2010

45,9

45,5

19(2

9,81

3,68

7)16

,131

,832

4,05

5,66

52,

446,

814

2.48

2011

50,5

29,4

79(2

7,93

1,05

7)22

,598

,422

4,19

0,55

73,

006,

017

3.14

2012

54,6

05,9

82(2

9,47

8,28

3)25

,127

,699

4,33

7,88

32,

852,

651

3.49

2013

52,9

03,9

11(2

7,68

4,63

3)25

,219

,278

4,50

1,87

52,

690,

433

3.51

2014

53,3

26,8

93(2

9,81

7,47

0)23

,509

,423

4,67

8,30

82,

509,

611

3.27

2015

65,6

83,7

61(3

3,88

4,99

6)31

,798

,765

4,65

2,93

02,

352,

949

4.54

Less

:D

ebt

Ser

vice

Fis

cal

Yea

rA

pplic

able

R

even

ues

Ope

ratin

g E

xpen

ses

Net

Ple

dged

R

even

ueP

rinci

pal

Inte

rest

Cov

erag

e

2006

2,99

3,88

1$

(2

,587

,855

)$

406,

026

$

195,

000

$

304,

868

$

0.81

2007

3,19

7,65

5(2

,625

,270

)57

2,38

520

5,00

029

5,31

31.

1420

083,

137,

704

(2,8

48,7

31)

288,

973

215,

000

285,

165

0.58

*200

92,

730,

028

(3,1

74,7

37)

(444

,709

)

225,

000

274,

415

(0.8

9)20

10-

-

-

-

-

0.00

2011

-

-

-

-

-

0.

0020

12-

-

-

-

-

0.00

2013

-

-

-

-

-

0.

0020

14-

-

-

-

-

0.00

2015

-

-

-

-

-

0.

00

Not

es:

* R

efun

ded

in 2

010

as p

art

of t

he 2

010

CO

Ps

issu

e.D

etai

ls r

egar

ding

the

City

's o

utst

andi

ng d

ebt

can

be fo

und

in t

he n

otes

to

the

finan

cial

sta

tem

ents

.S

ales

and

Use

Tax

and

Par

ks O

pen

Spa

ce S

ales

and

Use

Tax

sta

ted

on a

cas

h ba

sis:

all

othe

r re

venu

es s

tate

d on

acc

rual

bas

is.

Sou

rce:

City

's T

reas

ury

Div

isio

n

Uti

liti

es

Re

ven

ue

Bo

nd

s

Go

lf C

ou

rse

En

terp

rise

Re

ven

ue

Bo

nd

s

144

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Less

:D

ebt

Ser

vice

Fis

cal

Yea

rS

ales

and

Use

Ta

x C

olle

ctio

nsO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Prin

cipa

lIn

tere

stC

over

age

2006

51,6

43,7

75$

(315

,515

)$

51

,328

,260

$ 3,

470,

000

$

2,38

6,88

5$

8.

7620

0751

,799

,803

(393

,333

)51

,406

,470

1,98

5,00

01,

394,

198

15.2

120

0851

,438

,718

(410

,638

)51

,028

,080

3,45

0,00

01,

896,

409

9.54

2009

47,7

12,5

22(4

34,2

55)

47,2

78,2

673,

605,

000

1,74

7,92

18.

8320

1053

,964

,035

(439

,522

)53

,524

,513

3,22

0,00

02,

347,

240

9.61

2011

54,4

19,2

73(4

34,1

96)

53,9

85,0

773,

345,

000

1,34

8,14

611

.50

2012

56,0

57,3

66(4

48,5

15)

55,6

08,8

513,

435,

000

1,21

1,03

911

.97

2013

59,7

34,2

83(4

54,4

83)

59,2

79,8

003,

545,

000

1,17

2,82

612

.57

2014

63,9

33,1

37(4

52,2

33)

63,4

80,9

043,

805,

000

904,

026

13.4

820

1568

,723

,743

(448

,060

)68

,275

,683

4,08

0,00

074

4,34

514

.15

Less

:D

ebt

Ser

vice

Sal

es a

nd U

se

Tax

Col

lect

ions

Ope

ratin

g E

xpen

ses

Net

Ple

dged

R

even

ueP

rinci

pal

Inte

rest

Cov

erag

e

2006

4,69

9,43

5$

(2

6,27

6)$

4,67

3,15

9$

1,

485,

000

$

885,

496

$

1.97

2007

4,96

3,41

0(3

2,75

7)4,

930,

653

1,45

5,00

0

528,

351

2.49

2008

5,06

8,26

1(3

4,19

8)5,

034,

063

1,14

0,00

01,

513,

780

1.90

2009

4,82

3,36

7(3

6,16

5)4,

787,

202

1,18

0,00

01,

494,

038

1.79

2010

4,99

8,81

7(3

6,60

3)4,

962,

214

1,43

5,00

01,

466,

838

1.71

2011

4,93

0,89

8(3

6,16

0)4,

894,

738

1,49

0,00

01,

389,

438

1.70

2012

5,03

9,26

5(3

7,35

2)5,

001,

913

1,54

5,00

01,

329,

837

1.74

2013

5,34

6,71

6(3

7,84

9)5,

308,

867

1,61

0,00

01,

268,

038

1.84

2014

5,62

5,40

3(3

7,68

6)5,

587,

717

1,67

5,00

01,

203,

638

1.94

2015

6,08

4,36

5(3

7,33

8)6,

047,

027

1,75

5,00

01,

119,

888

2.10

Not

es:

Det

ails

reg

ardi

ng t

he C

ity's

out

stan

ding

deb

t ca

n be

foun

d in

the

not

es t

o th

e fin

anci

al s

tate

men

ts.

Sal

es a

nd U

se T

ax a

nd P

arks

Ope

n S

pace

Sal

es a

nd U

se T

ax s

tate

d on

a c

ash

basi

s: a

ll ot

her

reve

nues

sta

ted

on a

ccru

al b

asis

.

Sou

rce:

City

's T

reas

ury

Div

isio

n

Sa

les

an

d U

se T

ax

Re

ven

ue

Bo

nd

s

Pa

rks

Op

en

Sp

ace

Tra

ils

Sa

les

an

d U

se T

ax

Re

ven

ue

Bo

nd

s

145

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Fis

cal Y

ear

Less

:G

ross

Ple

dged

R

even

ues

Ope

ratin

g E

xpen

ses

Net

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dged

R

even

ueP

rinci

pal

Inte

rest

and

F

ees

Tota

l Deb

t S

ervi

ceC

over

age

2006

501,

933

$

(3

,115

)$

49

8,81

8$

21

5,00

0$

28

2,39

2$

49

7,39

2$

1.

0020

0751

6,15

8

(8

0,11

3)

436,

045

270,

000

313,

378

583,

378

0.75

2008

505,

684

(364

,424

)

14

1,26

0

33

0,00

0

20

6,82

8

53

6,82

8

0.

26*2

009

262,

399

(3,2

54)

259,

145

-

33,4

36

33,4

36

7.75

2010

-

-

-

-

-

-

N

/A20

11-

-

-

-

-

-

N/A

2012

-

-

-

-

-

-

N

/A20

13-

-

-

-

-

-

N/A

2014

-

-

-

-

-

-

N

/A20

15-

-

-

-

-

-

N/A

*Ref

unde

d in

Jun

e 20

09 a

s W

ED

A T

ax In

crem

ent

Rev

enue

Ref

undi

ng B

ond

(Wes

tmin

ster

Pla

za U

rban

Rei

nves

tmen

t P

roje

ct)

Ser

ies

2009

.

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Cap

italiz

ed

Inte

rest

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

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vice

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lIn

tere

st a

nd

Fee

sTo

tal D

ebt

Se r

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Cov

erag

e

*200

635

6,30

8$

-$

35

6,30

8$

58

2,01

6$

93

8,32

4$

70

,000

$

335,

245

$

40

5,24

5$

2.

3220

07-

-

-

-

-

-

-

-

N

/A20

08-

-

-

-

-

-

-

-

N

/A20

09-

-

-

-

-

-

-

-

N

/A20

10-

-

-

-

-

-

-

-

N

/A20

11-

-

-

-

-

-

-

-

N

/A20

12-

-

-

-

-

-

-

-

N

/A20

13-

-

-

-

-

-

-

-

N

/A20

14-

-

-

-

-

-

-

-

N

/A20

15-

-

-

-

-

-

-

-

N

/A*R

efun

ded

in M

arch

200

6 w

ith W

ED

A T

ax In

crem

ent

Adj

usta

ble

Rat

e R

even

ue R

efun

ding

Bon

ds S

erie

s 20

06.

Sou

rce:

City

's S

ales

Tax

Div

isio

n

Deb

t S

ervi

ce

WE

DA

Ta

x I

ncr

em

en

t A

dju

sta

ble

Ra

te R

eve

nu

e B

on

ds

Se

rie

s 20

03 (

Ma

nd

ala

y G

ard

en

s P

roje

ct)

Deb

t S

ervi

ce

1997

We

stm

inst

er

Eco

no

mic

De

velo

pm

en

t A

uth

ori

ty (

WE

DA

) R

eve

nu

e B

on

ds

(We

stm

inst

er

Pla

za U

rba

n R

ein

vest

me

nt

Pro

ject

)

146

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

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italiz

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Inte

rest

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

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sTo

tal D

ebt

Ser

vice

Cov

erag

e

2006

898,

979

$

-

$

898,

979

$

2,72

1,34

7$

3,

620,

326

$

-$

2,72

1,34

7$

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1,34

7$

1.

3320

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469,

600

(6,1

03)

3,46

3,49

71,

439,

736

4,90

3,23

3-

2,

868,

641

2,86

8,64

11.

7120

086,

369,

646

(116

,079

)6,

253,

567

-

6,25

3,56

7-

2,

316,

866

2,31

6,86

62.

70*2

009

2,24

5,86

0(4

2,45

0)2,

203,

410

-

2,20

3,41

05,

925,

000

792,

075

6,71

7,07

50.

3320

10-

-

-

-

-

-

-

-

N

/A20

11-

-

-

-

-

-

-

-

N

/A20

12-

-

-

-

-

-

-

-

N

/A20

13-

-

-

-

-

-

-

-

N

/A20

14-

-

-

-

-

-

-

-

N

/A20

15-

-

-

-

-

-

-

-

N

/A

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Cap

italiz

ed

Inte

rest

Tota

l R

even

ues

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e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

Fee

sTo

tal D

ebt

Ser

vice

Cov

erag

e

2006

2,12

4,83

6$

(8

,130

)$

2,

116,

706

$

640,

675

$

2,75

7,38

1$

-

$

1,

336,

471

$ 1,

336,

471

$

2.06

2007

3,15

4,14

7

(1

4,06

7)

3,14

0,08

0

-

3,14

0,08

0

250,

000

1,60

9,73

5

1,

859,

735

1.

6920

083,

126,

504

(23,

084)

3,

103,

420

-

3,

103,

420

-

1,

298,

745

1,29

8,74

5

2.39

*200

92,

798,

958

(27,

004)

2,

771,

954

-

2,

771,

954

2,

857,

875

1,

056,

631

3,91

4,50

6

0.71

2010

-

-

-

-

-

-

-

-

N/A

2011

-

-

-

-

-

-

-

-

N/A

2012

-

-

-

-

-

-

-

-

N/A

2013

-

-

-

-

-

-

-

-

N/A

2014

-

-

-

-

-

-

-

-

N/A

2015

-

-

-

-

-

-

-

-

N/A

*Ref

unde

d in

Sep

tem

ber

2009

with

WE

DA

Tax

Incr

emen

t A

djus

tabl

e R

ate

Rev

enue

Ref

undi

ng B

onds

Ser

ies

2009

.

Sou

rce:

City

's S

ales

Tax

Div

isio

n

*Ref

unde

d in

May

200

9 w

ith W

ED

A T

ax In

crem

ent

Loan

Ser

ies

2009

(N

orth

Hur

on P

roje

ct).

Deb

t S

ervi

ceW

ED

A T

ax

In

cre

me

nt

Ad

just

ab

le R

ate

Re

ven

ue

Re

fun

din

g B

on

ds

Se

rie

s 20

06 (

Ma

nd

ala

y G

ard

en

s P

roje

ct)

WE

DA

Ta

x I

ncr

em

en

t A

dju

sta

ble

Ra

te R

eve

nu

e B

on

ds

Se

rie

s 20

05 (

No

rth

Hu

ron

Pro

ject

)D

ebt

Ser

vice

147

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Cap

italiz

ed

Inte

rest

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

Fee

sTo

tal D

ebt

Ser

vice

Cov

erag

e

2006

-$

-$

-

$

-

$

-

$

-

$

-

$

-$

N/A

2007

24,9

74

-

24

,974

18

3,17

1

20

8,14

5

-

18

3,17

1

183,

171

1.14

2008

722,

502

(550

,629

)

17

1,87

3

28

2,86

6

45

4,73

9

-

28

2,86

6

282,

866

1.61

*200

956

3,17

2

(4

01,7

76)

161,

396

156,

055

317,

451

416,

000

128,

584

54

4,58

4

0.

5820

10-

-

-

-

-

-

-

-

N

/A20

11-

-

-

-

-

-

-

-

N

/A20

12-

-

-

-

-

-

-

-

N

/A20

13-

-

-

-

-

-

-

-

N

/A20

14-

-

-

-

-

-

-

-

N

/A20

15-

-

-

-

-

-

-

-

N

/A*R

efun

ded

in J

une

2009

with

WE

DA

Tax

Incr

emen

t Lo

an S

erie

s 20

09 (

Sou

th S

herid

an P

roje

ct).

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Prio

r Y

ear

Rev

enue

s

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

Fee

sTo

tal D

ebt

Ser

vice

Cov

erag

e

2006

-$

-$

-

$

-

$

-

$

-

$

-

$

-$

N/A

2007

-

-

-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

-

-

N/A

*200

926

9,43

1

(3

,341

)

26

6,09

0

97

,929

36

4,01

9

26

5,00

0

12

1,69

7

386,

697

0.94

2010

379,

965

(5,6

01)

374,

364

373,

106

747,

470

555,

000

192,

470

74

7,47

0

1.

0020

1140

8,03

5

(5

,948

)

40

2,08

7

34

4,29

3

74

6,38

0

57

5,00

0

17

1,38

0

746,

380

1.00

2012

469,

479

(6,0

81)

463,

398

281,

132

744,

530

595,

000

149,

530

74

4,53

0

1.

0020

1346

9,94

6

(6

,390

)

46

3,55

6

28

3,36

4

74

6,92

0

62

0,00

0

12

6,92

0

746,

920

1.00

2014

286,

639

(4,2

53)

282,

386

465,

974

748,

360

645,

000

103,

360

74

8,36

0

1.

0020

1532

6,46

6

(3

,594

)

32

2,87

2

42

1,81

3

74

4,68

5

66

5,00

0

78

,850

743,

850

1.00

*Bon

ds is

sued

in J

une

2009

to

refu

nd t

he W

ED

A S

erie

s 19

97 R

even

ue B

onds

.

Sou

rce:

City

's S

ales

Tax

Div

isio

nWE

DA

Ta

x I

ncr

em

en

t A

dju

sta

ble

Ra

te R

eve

nu

e B

on

ds

Se

rie

s 20

07 (

So

uth

Sh

eri

da

n P

roje

ct)

Deb

t S

ervi

ce

WE

DA

Ta

x I

ncr

em

en

t R

eve

nu

e R

efu

nd

ing

Bo

nd

(W

est

min

ste

r P

laza

Urb

an

Re

inve

stm

en

t P

roje

ct)

Se

rie

s 20

09D

ebt

Ser

vice

148

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Less

:G

ross

Ple

dged

R

even

ues

Ope

ratin

g E

xpen

ses

Net

Ple

dged

R

even

ueP

rinci

pal

Inte

rest

and

F

ees

Tota

l Deb

t S

ervi

ceC

over

age

2006

-$

-$

-

$

-

$

-

$

-

$

N

/A20

07-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

N

/A*2

009

803,

667

(6)

80

3,66

1

-

37

6,66

2

37

6,66

2

2.

1320

102,

697,

327

(31,

954)

2,

665,

373

1,

125,

000

61

4,96

0

1,

739,

960

1.

5320

112,

175,

755

(31,

752)

2,

144,

003

1,

185,

000

58

9,86

9

1,

774,

869

1.

2120

121,

830,

823

(27,

462)

1,

803,

361

-

39

2,69

9

39

2,69

9

4.

5920

13-

-

-

-

-

-

N/A

2014

-

-

-

-

-

-

N

/A20

15-

-

-

-

-

-

N/A

*Bon

ds w

ere

issu

ed in

Sep

tem

ber

2009

to

refu

nd t

he W

ED

A S

erie

s 20

06 R

even

ue R

efun

ding

Bon

ds a

nd w

ere

subs

eque

ntly

ref

unde

d in

201

2.

Less

:G

ross

Ple

dged

R

even

ues

Ope

ratin

g E

xpen

ses

Net

Ple

dged

R

even

ueP

rinci

pal

Inte

rest

and

F

ees

Tota

l Deb

t S

ervi

ceC

over

age

2006

-$

-$

-

$

-

$

-

$

-

$

N

/A20

07-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

N

/A*2

009

4,52

9,32

0

(4

0,36

6)

4,48

8,95

4

1,17

0,00

0

1,91

1,15

7

3,08

1,15

7

1.46

2010

5,99

3,92

7

(8

1,61

7)

5,91

2,31

0

2,12

5,00

0

2,76

0,46

6

4,88

5,46

6

1.21

2011

5,35

2,61

6

(8

2,24

0)

5,27

0,37

6

2,21

5,00

0

2,66

4,60

8

4,87

9,60

8

1.08

2012

5,32

6,07

1

(8

2,89

5)

5,24

3,17

6

-

1,62

7,99

7

1,62

7,99

7

3.22

2013

-

-

-

-

-

-

N

/A20

14-

-

-

-

-

-

N/A

2015

-

-

-

-

-

-

N

/A*L

oan

was

ent

ered

into

May

200

9 to

ref

und

the

WE

DA

Ser

ies

2005

Rev

enue

Ref

undi

ng B

onds

and

was

sub

sequ

ently

ref

unde

d in

201

2.

Sou

rce:

City

's S

ales

Tax

Div

isio

n

WE

DA

Ta

x I

ncr

em

en

t A

dju

sta

ble

Ra

te R

eve

nu

e R

efu

nd

ing

Bo

nd

s S

eri

es

2009

(M

an

da

lay

Ga

rde

ns

Pro

ject

)D

ebt

Ser

vice

WE

DA

Ta

x I

ncr

em

en

t L

oa

n S

eri

es

2009

(N

ort

h H

uro

n P

roje

ct)

Deb

t S

ervi

ce

149

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Less

:G

ross

Ple

dged

R

even

ues

Ope

ratin

g E

xpen

ses

Net

Ple

dged

R

even

ueP

rinci

pal

Inte

rest

and

F

ees

Tota

l Deb

t S

ervi

ceC

over

age

2006

-$

-$

-

$

-

$

-

$

-

$

N

/A20

07-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

N

/A*2

009

1,42

9,70

9

(6

37,1

31)

792,

578

120,

000

220,

579

340,

579

2.33

2010

2,36

8,65

7

(1

,090

,879

)

1,27

7,77

8

260,

000

399,

282

659,

282

1.94

2011

2,08

7,81

9

(1

,204

,614

)

883,

205

275,

000

386,

265

661,

265

1.34

2012

1,15

3,84

6

(8

45,5

16)

308,

330

-

252,

923

252,

923

1.22

2013

-

-

-

-

-

-

N

/A20

14-

-

-

-

-

-

N/A

2015

-

-

-

-

-

-

N

/A*L

oan

was

ent

ered

into

Jun

e 20

09 t

o re

fund

the

WE

DA

Ser

ies

2007

Rev

enue

Ref

undi

ng B

onds

and

was

sub

sequ

ently

ref

unde

d in

201

2.

Sou

rce:

City

's S

ales

Tax

Div

isio

n

Less

:C

over

age

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Prio

r Y

ear

Rev

enue

s

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

Fe e

sTo

tal D

ebt

Ser

vice

N/A

2006

-$

-$

-

$

-

$

-

$

-

$

-

$

-$

N/A

2007

-

-

-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

-

-

N/A

2009

-

-

-

-

-

-

-

-

N/A

2010

-

-

-

-

-

-

-

-

N/A

2011

-

-

-

-

-

-

-

-

N/A

*201

212

5,14

5

(1

,022

)

12

4,12

3

1,

306,

770

1,

430,

893

1,

150,

000

28

0,89

3

1,43

0,89

3

1.00

2013

1,79

5,00

5

(2

6,10

5)

1,76

8,90

0

565,

075

2,33

3,97

5

1,39

0,00

0

943,

975

2,

333,

975

1.

0020

142,

062,

679

(27,

550)

2,

035,

129

29

5,09

6

2,

330,

225

1,

400,

000

93

0,22

5

2,33

0,22

5

1.00

2015

2,37

1,19

5

(2

7,42

0)

2,34

3,77

5

-

2,34

3,77

5

1,44

5,00

0

888,

225

2,

333,

225

1.

00*B

onds

wer

e is

sued

in A

ugus

t 20

12 t

o re

fund

the

WE

DA

Ser

ies

2009

Rev

enue

Ref

undi

ng B

onds

with

ple

dged

rev

enue

s tr

ansf

erre

d fro

m 2

009

Bon

d ac

coun

t to

mee

t de

bt s

ervi

ce.

Sou

rce:

City

's S

ales

Tax

Div

isio

n

WE

DA

Ta

x I

ncr

em

en

t R

eve

nu

e R

efu

nd

ing

Bo

nd

s S

eri

es

2012

(M

an

da

lay

Ga

rde

ns

Pro

ject

)

WE

DA

Ta

x I

ncr

em

en

t L

oa

n S

eri

es

2009

(S

ou

th S

he

rid

an

Pro

ject

)D

ebt

Ser

vice

De b

t S

ervi

ce

150

Ta

ble

11

(co

nti

nu

ed

)P

led

ge

d R

eve

nu

e C

ove

rag

eC

ity

of

We

stm

inst

er

La

st t

en

fis

cal

yea

rs

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

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ense

sN

et P

ledg

ed

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enue

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r Y

ear

Rev

enue

s

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

Fee

sTo

tal D

ebt

Ser

vice

Cov

erag

e

2006

-$

-$

-

$

-

$

-

$

-

$

-

$

-$

N/A

2007

-

-

-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

-

-

N/A

2009

-

-

-

-

-

-

-

-

N/A

2010

-

-

-

-

-

-

-

-

N/A

2011

-

-

-

-

-

-

-

-

N/A

*201

226

,490

(3

88)

26

,102

50

8,94

1

53

5,04

3

-

53

5,04

3

535,

043

1.00

2013

5,62

0,84

6

(3

01,2

20)

5,31

9,62

6

-

5,31

9,62

6

2,81

1,00

0

2,07

1,16

3

4,

882,

163

1.

0920

146,

072,

318

(425

,753

)

5,

646,

565

-

5,

646,

565

2,

910,

000

1,

972,

514

4,88

2,51

4

1.16

2015

6,04

3,55

1

(3

88,3

77)

5,65

5,17

4

-

5,65

5,17

4

3,01

2,00

0

1,87

0,10

3

4,

882,

103

1.

16*L

oan

was

ent

ered

into

Aug

ust

2012

to

refin

ance

the

WE

DA

200

9 lo

an w

ith p

ledg

ed r

even

ues

tran

sfer

red

from

200

9 Lo

an a

ccou

nt t

o

mee

t de

bt s

ervi

ce.

Less

:

Gro

ss P

ledg

ed

Rev

enue

sO

pera

ting

Exp

ense

sN

et P

ledg

ed

Rev

enue

Prio

r Y

ear

Rev

enue

s

Tota

l R

even

ues

Ava

ilabl

e fo

r D

ebt

Ser

vice

Prin

cipa

lIn

tere

st a

nd

Fee

sTo

tal D

ebt

Ser

vice

Cov

erag

e

2006

-$

-$

-

$

-

$

-

$

-

$

-

$

-$

N/A

2007

-

-

-

-

-

-

-

-

N/A

2008

-

-

-

-

-

-

-

-

N/A

2009

-

-

-

-

-

-

-

-

N/A

2010

-

-

-

-

-

-

-

-

N/A

2011

-

-

-

-

-

-

-

-

N/A

*201

226

3,40

0

(2

86,6

12)

(23,

212)

358,

834

335,

622

290,

000

45,6

22

33

5,62

2

1.

0020

1361

4,01

8

(9

0,58

6)

523,

432

29,0

83

552,

515

350,

000

202,

515

55

2,51

5

1.

0020

1451

0,29

8

(7

,634

)

50

2,66

4

44

,892

54

7,55

6

35

5,00

0

19

2,55

6

547,

556

1.00

2015

525,

707

(7,8

68)

517,

839

29,6

51

547,

490

365,

000

182,

490

54

7,49

0

1.

00*L

oan

was

ent

ered

into

Sep

tem

ber

2012

to

refin

ance

the

WE

DA

200

9 lo

an w

ith p

ledg

ed r

even

ues

tran

sfer

red

from

200

9 Lo

an a

ccou

nt t

o

mee

t de

bt s

ervi

ce.

Sou

rce:

City

's S

ales

Tax

Div

isio

n

WE

DA

Ta

x I

ncr

em

en

t L

oa

n S

eri

es

2012

(N

ort

h H

uro

n P

roje

ct)

WE

DA

Ta

x I

ncr

em

en

t L

oa

n S

eri

es

2012

(S

ou

th S

he

rid

an

Pro

ject

)D

ebt

Ser

vice

Deb

t S

ervi

ce

151

Ta

ble

12

De

mo

gra

ph

ic a

nd

Eco

no

mic

Sta

tist

ics

Cit

y o

f W

est

min

ste

rL

ast

te

n f

isca

l ye

ars

Fis

cal Y

ear

Pop

ulat

ion

1To

tal P

erso

nal I

ncom

e 2

Per

Cap

ita P

erso

nal

Inco

me

(Wei

ghte

d A

vg.)

3U

nem

ploy

men

t R

ate

4

2006

109,

671

4,20

5,21

1,47

6

38,3

44

4.

0%20

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156

COMPLIANCESECTION

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an

Audit of the Financial Statements Performed in Accordance with Government Auditing Standards

Honorable Mayor and Members of City Council City of Westminster Westminster, Colorado

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Westminster (the City) as of and for the year ended December 31, 2015 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated May 13, 2016, which contained an emphasis of matter paragraph regarding a change in accounting principles.

Internal Control Over Financial Reporting

Management of the City is responsible for establishing and maintaining effective internal control over financial reporting (internal control). In planning and performing our audit of the financial statements, we considered the City’s internal control to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

157

Honorable Mayor and Members of City Council City of Westminster

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Denver, Colorado May 13, 2016

158

Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance

Honorable Mayor and Members of City Council City of Westminster Westminster, Colorado Report on Compliance for Each Major Federal Program

We have audited the City of Westminster’s (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended December 31, 2015. The City’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, contracts and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for the City's major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the City’s compliance.

159

Honorable Mayor and Members of City Council City of Westminster

Opinion on the Major Federal Program

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2015.

Report on Internal Control Over Compliance

Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on its major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Denver, Colorado May 13, 2016

160

City of Westminster Schedule of Findings and Questioned Costs

Year Ended December 31, 2015

Section I – Summary of Auditor’s Results

Financial Statements

1. The type of report the auditor issued on whether the financial statements audited were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) was:

Unmodified Qualified Adverse Disclaimer

2. The independent auditor’s report on internal control over financial reporting disclosed:

Material weakness(es) identified? Yes No

Significant deficiency(ies) identified? Yes None reported

3. Noncompliance considered material to the financial statements was disclosed by the audit?

Yes

No

Federal Awards

4. The independent auditor’s report on internal control over compliance for major federal awards programs disclosed:

Material weakness(es) identified? Yes No

Significant deficiency(ies) identified? Yes None reported

5. The opinion expressed in the independent auditor’s report on compliance for major federal award program was:

Unmodified Qualified Adverse Disclaimer 6. The audit disclosed findings required to be reported by 2 CFR

200.516(a)?

Yes

No

7. Identification of major programs:

CFDA Number Name of Federal Program or Cluster

20.205 Highway Planning and Construction Cluster

8. The dollar threshold used to distinguish between Type A and Type B programs was $750,000.

9. The City qualified as a low-risk auditee? Yes No

161

City of Westminster Schedule of Findings and Questioned Costs (continued)

Year Ended December 31, 2015

Section II – Financial Statement Findings

Reference Number Finding

No matters are reportable.

Section III – Federal Award Findings and Questioned Costs

Reference Number Finding

Questioned Costs

No matters are reportable.

162

City of Westminster Summary Schedule of Prior Audit Findings

Year Ended December 31, 2015

Reference Number Summary of Finding Status

No matters are reportable.

163

164

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166

CITY OF WESTMINSTER, COLORADO

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended December 31, 2015

NOTE 1: Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the City under programs of the federal government for the year ended December 31, 2015. The accompanying notes are an integral part of this Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-87 or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

NOTE 2: Department of Housing and Urban Development, HUD Section 108 Loan Guarantee The original note was issued on October 05, 2012, for $1,500,000. The outstanding loan balance as of December 31, 2015 is $1,047,000. The terms of the loan are a 20-year repayment with the first 15 years set at interest-only payments, and the principal to be repaid in the remaining 5 years. A prepayment was made in 2015 toward the loan principal balance that had originally been scheduled with due dates of August 1, 2028 and August 1, 2029. The final maturity date is August 1, 2032. The loan has a variable interest based on 3 month LIBOR plus 0.20% as of the reset date. As of December 31, 2015, the total rate paid was 1.0122%. The Community Development Block Grant allocation is pledged as security for repayment of this note in the event of a default on the note. As there are no continuing compliance requirements other than the repayment of the note, this loan is excluded from the Schedule.  

167

Financial Planning 02/01

The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36

City or County:City of WestminsterYEAR ENDING :December 2015

This Information From The Records Of (example - City of _ or County of _): Prepared By: Sherri YoungCity of Westminster Phone: 303-658-2365

A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway

Taxes Taxes User Taxes Administration1. Total receipts available2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes

AMOUNT AMOUNTA. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 17,677,277 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 5,019,949 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 2,338,711 2. General fund appropriations 16,935,838 b. Snow and ice removal 1,073,531 3. Other local imposts (from page 2) 2,524,617 c. Other 4. Miscellaneous local receipts (from page 2) 2,236,466 d. Total (a. through c.) 3,412,242 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 2,506,512 a. Bonds - Original Issues 6. Total (1 through 5) 28,615,980 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 19,197,000 1. Bonds: d. Total (a. + b. + c.) 19,197,000 a. Interest 2,075,591 7. Total (1 through 6) 40,893,921 b. Redemption 5,026,600B. Private Contributions c. Total (a. + b.) 7,102,191C. Receipts from State government 2. Notes: (from page 2) 4,019,559 a. Interest 1,297,912D. Receipts from Federal Government b. Redemption 1,968,750 (from page 2) 34,745 c. Total (a. + b.) 3,266,662E. Total receipts (A.7 + B + C + D) 44,948,225 3. Total (1.c + 2.c) 10,368,853

C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D) 38,984,833

Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total) 17,658,890 0 3,160,870 14,498,020 1. Bonds (Refunding Portion)B. Notes (Total) 54,250,020 19,197,000 3,834,480 69,612,540

A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation133,153,058 44,948,225 38,984,833 139,116,450 0

Notes and Comments:

FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page)1

LOCAL HIGHWAY FINANCE REPORT

I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE

ITEM

III. DISBURSEMENTS FOR ROAD

V. LOCAL ROAD AND STREET FUND BALANCE

ITEM

II. RECEIPTS FOR ROAD AND STREET PURPOSES

IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par)

ITEM AND STREET PURPOSES

168

STATE:ColoradoYEAR ENDING (mm/yy):December 2015

AMOUNT AMOUNTA.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments 8,847 b. Other local imposts: b. Traffic Fines & Penalities 1,449,076 1. Sales Taxes 2,142,199 c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 382,418 g. Other Misc. Receipts 6. Total (1. through 5.) 2,524,617 h. Other 778,543 c. Total (a. + b.) 2,524,617 i. Total (a. through h.) 2,236,466

(Carry forward to page 1) (Carry forward to page 1)

AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 3,572,105 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD 34,745 c. Motor Vehicle Registrations 382,114 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) - CDOT 65,340 f. Other Federal f. Total (a. through e.) 447,454 g. Total (a. through f.) 34,745 4. Total (1. + 2. + 3.f) 4,019,559 3. Total (1. + 2.g)

(Carry forward to page 1)

ON NATIONAL OFF NATIONALHIGHWAY HIGHWAY TOTALSYSTEM SYSTEM

(a) (b) (c)A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 975,669 975,669 c. Construction: (1). New Facilities 10,705,620 10,705,620 (2). Capacity Improvements 301,861 1,742,555 2,044,416 (3). System Preservation 3,862,162 3,862,162 (4). System Enhancement & Operation 89,410 89,410 (5). Total Construction (1) + (2) + (3) + (4) 4,164,023 12,537,585 16,701,608 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 4,164,023 13,513,254 17,677,277

(Carry forward to page 1)

Notes and Comments:

FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE2

III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL

II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL

LOCAL HIGHWAY FINANCE REPORT

ITEM ITEM

ITEM ITEM

City of Westminster | 4800 West 92nd Avenue | Westminster, Colorado 80031(303) 658-2400 www.cityofwestminster.us

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