Annual Financial Reports#
The City of Fort Collins' Finance Department publishes the results of its annual audit as well as a comprehensive report of financial statements.
2023 Popular Annual Financial Report#
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The City of Fort Collins is a full-service municipal organization dedicated to providing exceptional service for an exceptional community of 173,000 residents, 8,000 businesses and numerous community partners.
Located in Northern Colorado, Fort Collins is home to Colorado State University (CSU), outstanding public school and healthcare systems, several large high-tech employers and leading businesses in the craft brewing industry. Fort Collins offers exciting recreational opportunities, unique cultural offerings and amenities, and is a regional center for employment and commerce. Both the City organization and community at large are frequently recognized for our quality of services and amenities, sustainable management practices, and a forward-thinking, innovative culture.
One of the City of Fort Collins’ primary responsibilities is to steward taxpayer dollars to provide the programs and services the community expects and deserves from its local government. The Popular Annual Financial Report is part of this commitment to financial transparency.
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This report provides a condensed and simplified overview of the City's financial position, based on information from the 2023 Annual Comprehensive Financial Report. This report is unaudited and is presented on a non-Generally Accepted Accounting Principles (GAAP) basis, as it does not provide all of the necessary financial statements and note disclosures required by GAAP. As a result, the Balance Sheet and Income Statement presented here are not in strict conformity with GAAP. The Annual Comprehensive Financial Report is a more detailed and complete financial presentation, which is prepared in conformity with GAAP and is audited by the City’s independent auditors, Plante Moran, PLLC. This report summarizes more than 200 pages of the Annual Comprehensive Financial Report’s financial and statistical data. The financial statements condense information of all funds included in the “Total Primary Government.”
This report also includes information on the Fort Collins Urban Renewal Authority, a legally separate, blended component unit of the City, which is therefore included in the City’s governmental activity figures. It excludes discrete component units and fiduciary fund information. The Annual Comprehensive Financial Report and the City Manager’s Budget are also available on the City’s website.
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- Assets: what the City of Fort Collins owns.
- Business-type activities: private sector-type operations, such as Utilities and Golf, where fees for services typically cover all or most of the cost of operations, including depreciation.
- Capital assets: items such as City or Utility land, construction in progress, equipment, infrastructure and buildings, and improvements net of depreciation.
- Component Unit: legally separate organizations for which the City is financially accountable. The Urban Renewal Authority, Downtown Development Authority, General Improvement Districts #1 & #15, and the Tourism Improvement District are the City’s component units.
- Current and other assets: items such as pooled cash and investments, cash and investments with fiscal agents, receivables, internal balances, inventories, deposits with others, prepaid items and deferred charges.
- Deferred inflows: an acquisition of a net asset that is applicable to a future reporting period.
- Deferred outflows: a consumption of a net asset that is applicable to a future reporting period.
- Fiduciary fund: accounts for assets held on behalf of outside parties, including other governments.
- Governmental activities: City basic services, including police, planning, economic development, and culture and recreation. Sales, use, and property taxes finance the majority of these services.
- Invested in capital assets, net of related debt: amounts invested in capital assets less accumulated depreciation and any outstanding debt used to acquire these assets.
- Liabilities: what the City of Fort Collins owes.
- Long-term liabilities: items such as bonds, loans, compensated absences, and other City of Fort Collins obligations.
- Net book value: represents the acquisition cost less accumulated depreciation for an asset.
- Net position: the difference between City of Fort Collins assets and liabilities. It is the net worth of the City.
- Other liabilities: items such as payables, payroll, accrued interest and unearned revenue.
- PILOT: payment in lieu of taxes, made to compensate the primary government for some or all of the tax revenue lost due to the tax-exempt status of the City’s utilities.
- Primary government: all of the governmental and business-type activities belonging to the City of Fort Collins excluding the discretely presented component units and fiduciary funds.
- Restricted: funds that are not available for general use because they have been set aside for a specific purpose or project.
- Unrestricted: one-time funds available to use for operations or capital.
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$639.6M (as amended)
Net Operating Budget: $560.6M
Capital Budget: $79M
Fort Collins Financial Results#
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The net position, or net worth, of the City at December 31, 2023 was $2.19 billion. Of the net position balance, $417.1 million is unrestricted and is available to meet ongoing obligations in accordance with the City’s fund designations and fiscal policies.
The City’s net position increased from the prior year by over $66.9 million (3.2%). The governmental net position increased by $47.1 million (3.9%) and the business-type position increased by $19.7 million (2.2%).
The City’s total long-term liabilities increased in 2023 by $25.7 million (30.5%) during the current year. Within that activity, the City’s governmental long-term liabilities increased by $17.3 million (33.4%) and business-type long-term liabilities increased by $8.4 million (25.9%).
NET POSITION
(at Dec. 31 in thousands*)Governmental
2022
Governmental
2023
Business-type
2022
Business-type
2023
Total Primary Government
2022
Total Primary Government
2023
ASSETS Current & other assets $ 399,178 $ 416,377 $ 242,958 $ 345,524 $ 642,136 $ 761,901 Capital assets 977,821 1,017,347 865,499 877,040 1,843,320 1,894,387 Total assets 1,376,999 1,433,724 1,108,457 1,222,564 2,485,456 2,656,288 Deferred outflow of resources 2,353 694 2,500 911 4,853 1,605 LIABILITIES Long-term liabilities 80,451 65,289 172,988 257,402 253,439 322,691 Other liabilities 51,790 69,077 32,275 40,636 84,064 109,713 Total liabilities 132,240 134,366 205,263 298,038 337,503 432,404 Deferred inflows of resources 36,858 42,692 -- -- 36,858 42,692 NET POSITION Net investment in capital assets 921,666 953,348 703,114 718,831 1,624,780 1,672,179 Restricted 77,766 93,562 -- -- 77,766 93,562 Unrestricted 210,821 210,451 202,580 206,606 413,401 417,057 TOTAL NET POSITION $1,210,253 $1,257,361 $ 905,694 $ 925,437 $2,115,947 $2,182,798 *Totals may not add due to rounding
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Governmental program revenues increased over 2022 by $34.2 million, or 48.3%, while sales & use tax revenues increased by $4.3 million, or 2.4%, while Governmental expenses increased by $42.5 million over 2022. The increase in program revenue is attributed to operating grants and contributions through the Coronavirus Local Fiscal Recovery Fund – ARPA, which is federal awards relating to COVID-19 that fund a broad range of core governmental services and community programs. Other increases to program revenue include rising City investment gains over 2022, as well as increases to charges for services as demand for services continues to rise across a variety of programs and activities.
On the business-type side, program revenues and other general revenues increased in total by $24.3 million with expenses increasing by only $7.7 million over 2022. This 9.7% increase to revenues was largely driven by Electric & Telecommunication revenues for the build out of the Connexion internet service, and increased electric rates and consumption. Other increases include higher Wastewater revenues for commercial and industrial demand, as well as higher residential and commercial segment demands for increased Storm drainage utilities.
Expenses are described in greater detail in the following pages. For in-depth analysis and multi-year trends of revenues & expenses, see the 2023 Annual Comprehensive Financial Report.
CONDENSED SUMMARY OF ACTIVITIES
(at Dec. 31 in thousands*)Governmental
2022
Governmental
2023
Business-type
2022
Business-type
2023
Total Primary Government
2022
Total Primary Government
2023
REVENUES Program revenues, primarily service charges $ 70,876 $ 105,116 $ 257,445 $ 261,232 $ 328,321 $ 366,348 Sales & use taxes 173,971 178,229 -- -- 73,971 178,229 Other general revenues 63,976 95,644 (6,456) 14,092 57,520 109,736 TOTAL REVENUES 308,822 378,989 250,989 275,324 559,811 654,343 Expenses 291,906 334,421 245,380 253,042 537,286 587,463 Transfers 1,580 2,540 (1,580) (2,540) -- -- CHANGE IN NET POSITION 18,496 47,108 4,029 19,742 22,525 66,850 Net position, beginning of year 1,191,757 1,210,253 901,666 905,694 2,093,423 2,115,947 NET POSITION, END OF YEAR 1,210,253 1,257,361 905,694 925,437 2,115,947 2,182,798 *Totals may not add due to rounding
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SALES & USE TAX
Many City services are funded through service charges, such as our Utility or Recreation services. However, the City assesses a 3.85% tax on sales, purchases and certain services in order to fund other services that are not charged based on volume or usage.Base Rate - 2.85%
Funds government services like police, transportation and administration.General Fund Renewable - 0.25%
Expires Dec. 31, 2030
This tax was passed by Fort Collins voters in April 2020 to continue funding services and programs residents value. This is also used in conjunction with the Base Rate to fund general government services.Streets and Transportation - 0.25%
Expires Dec. 31, 2025
Street maintenance taxes were first approved in 1984 and were renewed in 1989, 1998, 2006 and 2016. The Street Maintenance Program focuses on extending the lifespan of roadways and minimizing the cost of maintaining a viable road surface. Well maintained roads require less upkeep than repairing roads in poor condition, and this tax allows the City to maintain the current level of service.Natural Areas - 0.25%
Expires Dec. 31, 2030
Open Space Yes!, originally passed in 1992 and renewed in 1998 and 2006, is a key component in the conservation and management of natural areas and trails. Expenditures from this tax include land acquisition, resource and land management, public improvements and educational programming.Community Capital Improvement Program (CCIP) - 0.25%
Expires Dec. 31, 2025
CCIP taxes were initiated in 1985 and were renewed in 1990, 1998, 2006 and 2016. Project highlights using this funding for 2016-2025 include Club Tico renovations, Downtown Poudre River Whitewater Park, a Visitors Center at the Gardens on Spring Creek, Willow and Linden Street improvements, Lincoln Avenue bridge, and a Southeast Community Center.Dollar amounts in millions and reflect 2023 revenue
- $134.8M - Base Tax Rate, 2.85%
- $10.7M - General Fund Renewable, 0.25%
- $10.7M - Streets & Transportation, 0.25%
- $10.7M - Natural Areas, 0.25%
- $10.7M - Community Capital Improvement Program (CCIP), 0.25%
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Every two years, the City Manager submits a budget for City Council’s adoption. The proposed budget cannot include expenditures that exceed estimated reserve balances and anticipated revenue. The budget represents six months of input from residents, City staff and City management, and serves as the two-year blueprint for advancing results in the seven key outcome areas.
Fort Collins uses Budgeting for Outcomes (BFO) for its budget. The process focuses on results and priorities,
not on cost. The process shifts from paying for costs to buying results. Service providers, or “sellers," make offers to results teams aligned behind one of the seven outcomes. Teams evaluate effectively purchasing these offers from the seller based on their priority. These purchase decisions put residents and their priorities first. For more information, please visit fcgov.com/bfo.In 2023, governmental expenditures totaled $334.4 million, an increase of $42.5 million, or 14.6%, when compared to 2022. General Government, Public Safety and Transportation expenses increased over 2022 by $17.2 million, $11.4 million and $10.5 million, respectively. These increases were largely due to expenses incurred by services provided to the City, or in use from grant and contribution revenues, alongside other City improvements. Additionally, Culture, Parks, Recreation and Natural Areas expenses increased by $2.4 million, also due to grant and contribution-related activity, as well as continuing economic growth seen in previous years. Meanwhile, Planning and Development and Interest on Long-Term Debt only increased by $0.8 million and $0.3 million, respectively, over the prior year.
Business-type expenditures totaled $253.0 million in 2023, an increase of $7.7 million, or 3.1%, when compared to 2022. Increases seen over 2022 and previous years largely occurred in Light & Power expenses, growing by $7.6 million over the prior year, as expenses continue to rise for the Connexion internet service and other developments. While Storm Drainage, Wastewater and Golf-related expenditures only increased over 2022 by $1.6 million, $0.9 million, and $0.5 million, respectively, with increases in Business-type services driven mostly by inflationary pressures in energy cost, labor, equipment and supplies. Meanwhile, Water was the only Business-type service to decrease expenses over 2022, declining $2.9 million as consumption declined across all City customer segments.
Government Expenses#
Business-Type Expenses#
Expenditures by Department#
Many expenditures of the City are segregated from other expenditures by a dedicated revenue source. Below is a breakdown by department of how proceeds from the various dedicated tax components are spent. Dedicated revenues, such as Keep Fort Collins Great, are contained to specified areas of spending by ballot language.
Figures presented are expressed in thousands; totals may not add due to rounding.
SERVICE AREA
Department
General Fund Transportation Fund Capital Projects Fund Urban Renewal Authority Other Gov. Funds Grand Total POLICE SERVICES TOTAL $178,860 -- -- -- -- $ 178,860 Investigations 30,994 -- -- -- -- 30,994 Police Info. Services 28,811 -- -- -- -- 28,811 Patrol 59,575 -- -- -- -- 59,575 Special Operations 36,398 -- -- -- -- 36,698 Police Admin. 23,081 -- -- -- -- 23,0814 FINANCIAL SERVICES TOTAL 48,853 -- -- -- -- 48,853 COMMUNITY & OPERATION SERVICES TOTAL 57,336 -- 9,452 -- 138,546 205,333 Recreation 572 -- 6 -- 30,800 31,378 Community Services Admin. 1,756 -- -- -- -- 1,756 Cultural Services 2,270 -- 5,981 -- 28,511 36,762 Parks 51,085 -- 2,744 -- 20,723 74,552 Natural Areas 1,652 -- 720 -- 58,513 60,885 PLANNING, DEV. & TRANSP. TOTAL 44,878 122,524 42,297 -- 84,780 294,478 PDT Amin. 3,704 464 -- -- -- 4,168 Parking Services -- -- -- -- 9,285 9,285 Transfort -- -- 482 -- 68,984 69,376 Comm Dev. & Neighb. Services 35,875 -- -- -- -- 35,875 FC Moves -- 5,977 1,741 -- -- 7,718 Streets 5,299 87,567 -- -- 3 92,869 Traffic -- 18,654 -- -- -- 18,654 Engineering -- 9,863 40,074 -- 6,598 56,535 EXECUTIVE SERVICES TOTAL 15,672 -- -- -- -- 15,672 JUCIDIAL SERVICES TOTAL 5,414 -- -- -- -- 5,414 LEGAL SERVICES TOTAL 10,958 -- -- -- -- 10,958 INFO. & EMPLOYEE SERVICES TOTAL 73,503 -- 1,538 -- -- 75,042 SUSTAINABILITY SERVICES TOTAL 28,277 -- 1,287 18,583 6,680 54,826 Economic Health 3,546 -- -- -- 638 4,185 Social Sustainability 10,426 -- -- -- 6,041 16,468 Environmental Services 12,187 -- 1,287 -- -- 13,474 Sustainability Services Admin. 2,117 -- -- -- -- 2,117 Urban Renewal Authority -- -- -- 18,583 -- 18,583 OTHER NON-DEPT. TOTAL 32,771 -- -- -- 18,817 51,589 POUDRE FIRE AUTHORITY TOTAL 107,550 -- -- -- 7,023 114,574 GRAND TOTAL $ 604,073 $ 122,524 $ 54,574 $ 18,583 $ 255,845 $1,055,600 -
Cash & Investment Management
Investment policies are governed by City Council-adopted policy. The principal objective of the City's cash and investment strategy is preservation of investment principal. Thus, the policy allows for only fixed-income investments, such as state or local government debt, U.S. agency obligations, or highly rated U.S. corporate debt. Equity investments, such as common stock or mutual funds, are disallowed under the City’s policy.At Dec. 31, 2023, the fair market value of the City’s cash and investments was $620.1 million. The portfolio's overall market yield for 2023 was -4.12% and the realized and unrealized interest losses were $25.5 million.
Bonded Debt Obligations
The City’s credit rating was Aaa by Moody’s Investors Service at Dec. 31, 2023. This highly favorable investment rating, maintained by less than 5% of governments, allows the City to pay less interest on its debt issuances.At Dec. 31, 2023, the City held total bonded debt of $306.3 million. Of this amount, $50.5 million was related to government activities and $255.8 million was related to business-type activities. The debt service due within one year is $32.5 million.
Cash & Investments#
Dec. 31, 2023 in millions
- $229.6M - Federal Home Loan Bank, 37%
- $123.4M - Corporate Bonds, 19.9%
- $104.5M - Cash & Deposits, 16.8%
- $78.1M - Federal Farm Credit Bank, 12.6%
- $60.2M - Federal Home Loan Mortgage Corp., 9.7%
- $23.4M - Federal National Mortgage Association, 3.8%
- $0.9M - US Treasuries & Certificates of Deposit, 0.2%
City Debt Obligations#
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The book value, historical cost less depreciation, of the City’s capital assets totaled $1.9 billion at Dec. 31, 2023. This investment in capital assets includes buildings and improvements, infrastructure and other improvements, including streets, bridges, the full utility delivery system, land and right-of-way, various equipment and construction in progress. Total investment in capital assets increased $51.1 million compared to 2022.
While the City reports its assets at net book value based on acquisition cost and accumulated depreciation, estimated fair market value is 2-3 times higher due to market appreciation of water rights, land and building values. This estimate is based on appraisal value, replacement cost and/or insured values.
Government Capital Assets: $1,017.3M#
- 55% Infrastructure & Improvements
- 28% Land & Land Rights
- 10% Building & Improvements
- 4% Machinery & Equipment
- 3% Construction in Progress
- <1% Right to Use - Assets
Business-Type Capital Assets: $877.0M#
- 66% Infrastructure & Improvements
- 12% Building & Improvements
- 10% Construction in Progress
- 9% Land & Land Rights
- 3% Machinery & Equipment
- <1% Right to Use - Assets
Download 2023 Financial Reports#
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2023 Popular Annual Financial Report
Download a printable PDF version of 2023 Popular Annual Financial Report (data posted above).
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2023 Annual Comprehensive Financial Report
Download a PDF version of 2023 Annual Comprehensive Financial Report.