Popular Annual Financial Report

1. Overview

The Popular Annual Financial Report (PAFR) includes abbreviated financial results in a condensed and simplified manner for a concise, easy-to-understand report.

Popular Annual Financial Report

This document is provided for printing purposes. For assistance viewing or reading this document, please contact the City's ADA Coordinator via email adacoordinator@fortcollins.gov.

Introduction

The City of Fort Collins is a full-service municipal organization dedicated to providing exceptional service for an exceptional community of approximately 170,000 residents, 7,800 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 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.

About this Report

This report provides a condensed and simplified overview of the City's financial position, based on information from the 2025 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.

Glossary

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 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 such as bonds, loans, compensated absences, and other City of Fort Collins obligations.

Netbook 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.

2025 Operating and Capital Budget

Pie chart of 2025 Operating and Capital Budget. The capital budget in 2025 was $108.2M and the Net Operating Budget was $617.4M

 

$725.6M 

Net Operating Budget: $617.4M

Capital Budget: $108.2M

Click next to view additional sections of the report.

2. Net Position

The net position, or net worth, of the City on December 31, 2025, was $2.40 billion. Of the net position balance, $497.7 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 $114.2 million (5.0%). The governmental net position increased by $66.1 million (5.0%) and the business-type position increased by $48.0 million (5.0%).

The City’s total long-term liabilities decreased in 2025 by $12.2 million (4.0%) during the current year. Within that activity, the City’s governmental long-term liabilities increased by $1.9 million (3.2%) and business-type long-term liabilities decreased by $14.1 million to (5.8%).

Bar graph of net position from 2021-2025.
NET POSITION (at Dec. 31, in thousands*) Governmental 2024 Governmental 2025 Business-type 2024 Business-type 2025 Total Primary Government 2024 Total Primary Government 2025
ASSETS
Current and other assets $437,820 $479,660 $349,464 $353,346 $787,284 $833,006
Capital assets $1,046,150 $1,078,492 $905,576 $937,779 $1,951,726 $2,016,271
Total assets $1,483,970 $1,558,152 $1,255,040 $129,125 $2,739,010 $2,849,277
Deferred outflows of resources $226 $37 $457 $343 $683 $380
LIABILITIES
Long-term liabilities $59,871 $61,801 $245,111 $231,004 $304,982 $292,805
Other liabilities $54,469 $54,992 $48,547 $48,859 $103,016 $103,851
Total liabilities $114,340 $116,793 $293,658 $279,863 $407,998 $396,656
Deferred inflows of resources $444,446 $49,838 864 $2,621 $45,310 $52,459
NET POSITION
Net investment in capital assets $986,986 $1,011,898 $723,768 $737,265 $1,710,754 $1,749,163
Restricted $122,498 $153,642 - - $122,498 $153,642
Unrestricted $215,924 $226,017 $237,208 $271,719 $453,132 $497,736
TOTAL NET POSITION $1,325,408 $1,391,557 $960,976 $1,008,984 $2,286,384 $2,400,541

*Totals may not add due to rounding.

3. Summary of Activities

Governmental program revenues decreased over 2024 by $2.1 million, or 15.9%, while sales and use tax revenues increased by $8.4 million, or 4.1%; and Governmental expenses increased by $9.0 million, or 2.6%, over 2024. The increase in program revenue is attributed to rising City investment gains over 2024, 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 $12.0 million with expenses increasing by $27.7 million over 2024. This 41.1% increase to program revenues was largely driven by Electric and Telecommunication revenues for the continued build out of Connexion internet service along with increased electric rates and consumption. Other increases include higher wastewater revenues for commercial and industrial demand, as well as higher residential and commercial segment demand 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 2025 Annual Comprehensive Financial Report.

CONDENSED SUMMARY OF ACTIVITIES (at Dec. 31, in thousands*) Governmental 2024 Governmental 2025 Business-type 2024 Business-type 2025 Total Primary Government 2024 Total Primary Government 2025
REVENUES
Program revenues, primarily service charges $105,229 $103,105 $289,257 $301,301 $394,486 $404,406
Sales & use taxes $203,397 $211,760 - - $203,397 $211,760
Other general revenues $98,477 $101,232 $17,767 $43,996 $116,244 $145,228
TOTAL REVENUES $407,103 $416,097 $307,024 $345,297 $714,127 $761,394
Expenses $344,642 $353,663 $265,899 $293,574 $610,541 $647,237
Transfers $5,587 $3,715 ($5,587) ($3,715) - -
CHANGE IN NET POSITION $68,048 $66,149 $35,538 $48,008 $103,586 $114,157
Net position, beginning of year $1,257,361 $1,325,409 $925,437 $960,975 $2,182,798 $2,286,384
NET POSITION, END OF YEAR $1,325,409 $1,391,558 $960,975 $1,008,983 $2,286,384 $2,400,541

*Totals may not add due to rounding.

4. Revenues - How is Funding Raised?

Sales and Use Tax

Many City services are funded through service charges, such as our Utility or Recreation services. However, the City assesses a 4.35% 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.

Keep Fort Collins Great - 0.25%

  • EXPIRES DECEMBER 31, 2030
  • This measure extends a .25-cent tax through 2030, with funds generally supporting streets, transportation, fire services, parks and recreation and other community priorities including affordable housing and West Nile virus education.

Streets Maintenance - 0.25%

  • EXPIRES DECEMBER 31, 2045
  • This measure extends the .25-cent sales tax for ongoing maintenance of streets, including pavement, curbs, gutters and sidewalks.

Capital Tax Program - 0.25%

  • EXPIRES DECEMBER 31, 2035
  • This measure keeps the .25-cent sales tax, which has funded community amenities for more than 50 years. Funds support a variety of community improvement projects for trails, transportation, City facilities and infrastructure.

Natural Areas - 0.25%

  • NO CURRENT EXPIRATION
  • In 2025, voters approved to extend the .25-cent sales tax, originally scheduled to sunset in 2030, without expiration. Funds support open space acquisition, land conservation, and natural areas operations and maintenance. Voters have approved a dedicated sales tax for natural areas since 1992.

Parks & Recreation, Transit and Climate 2050 - 0.50%

  • EXPIRES DECEMBER 31, 2050
  • Approved in 2023, this tax went into effect in 2024 and supports a variety of parks, recreation, transportation and climate programming. 50% of funding from this tax supports Parks and Recreation facilities, including pools. 25% funds climate programs advancing greenhouse gas reduction and renewable electricity goals. The remaining 25% goes toward transit system infrastructure and service improvements.
Bar graph of Sales & Use Tax

5. Expenses - Where Does the Money Go?

Every two years, the City Manager submits a budget for City Council 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 used Budgeting for Outcomes (BFO) for its FY 2025 budget. The BFO 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. Learn more about the City’s budgeting process.

In 2025, governmental expenditure totaled $353.7 million, an increase of $9.0 million (2.6%), when compared to 2024. General Government decreased over 2024 by $12.3 million (17.0%), while Public Safety and Transportation expenses increased over 2024 by $6.5 million (6.0%), and $1.4 million (1.7%), respectively. The overall change over the prior year was largely due to expenses incurred by services provided to the City, or in use from grant and contribution revenues, alongside other City improvements. Additionally, the Culture, Parks, Recreation and Natural Areas type expenses increased by $6.0 million (9.9%), over last year, also due to grant and contribution-related activity as well as continuing economic growth seen in previous years. Meanwhile, Planning and Development increased by $7.3 million (29.6%) over last year, while Interest on Long-Term Debt remained consistent across both years.

Business-type expenditures totaled $293.6 million in 2025, an increase of $27.7 million, (10.4%), when compared to 2024. Increases seen over 2024 and previous years largely occurred in Light & Power expenses, growing by $13.3 million (7.2%) over the prior year, as expenses continue to rise for the Connexion internet service and other developments. While Water, Wastewater, Storm Drainage and Golf-related expenditures only increased over 2024 by $4.7 million (12.8%), $4.6 million (19.1%), $4.9 million (31.7%), and $0.1 million (3.4%) respectively, with increases in Business-type services driven mostly by inflationary pressures and City growth impacting energy cost, labor, equipment and supplies.

Government Expenses

Bar graph of government expenses by service

Business-Type Expenses

Bar chart of business-type expenses by service

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 2050 Tax, 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 $208,999 - - - - $208,999
Investigations 32,712 - - - - 32,712
Police Information Services 37,803 - - - - 37,803
Patrol 72,529 - - - - 72,529
Special Operations 43,348 - - - - 43,348
Police Administration 22,607 - - - - 22,607
FINANCIAL SERVICES TOTAL 20,321 - - - - 20,321
COMMUNITY & OPERATION SERVICES TOTAL 58,273 - 49,160 - 158,942 266,375
Recreation (3) - 40133 - 37,474 77,604
Community Services Admin. 2,240 - - - - 2,240
Cultural Services 51,851 - 2,133 - 34,717 88,701
Parks 2,067 - 6844 - 53,314 62,225
Natural Areas 2,118 - 50 - 33,437 35,605
UTILITY SERVICES TOTAL - - - - 1,932 1,932
PLANNING, DEV. & TRANSP. TOTAL 40,826 132,905 63,314 - 142,747 379,792
PDT Administration 3,989 419 - - - 4,408
Parking Services - - - - 11,793 11,793
Transfort - - 198 - 116,954 117,152
Comm. Dev. & Neighborhood Services - 5,897 3,223 - 2,293 11,413
FC Moves 3,032 95,773 - - 203 99,008
Streets - 20,435 - - - 20,435
Traffic - 10,381 59,893 - 11,504 81,778
Engineering 33,805 - - - - 33,805
EXECUTIVE SERVICES TOTAL 30,202 - - - - 30,202
JUDICIAL SERVICES TOTAL - - - - - -
LEGAL SERVICES TOTAL 14,811 - - - - 14,811
INFO. & EMPLOYEE SERVICES TOTAL 82,930 - 6,200 - 3,406 92,536
Information Technology 156 - - - - 156
Comm & Public Involvement 13,200 - - - - 13,200
Emergency Prep & Security 11,394 - - - - 11,394
Human Resources 54,469 - 6,200 - 3,406 64,075
Operation Services 3,711 - - - - 3,711
SUSTAINABILITY SERVICES TOTAL 37,025 - - 41,106 8,649 86,780
Economic Health Office 4,258 - - - 601 4,859
Social Sustainability 8,690 - - - 3,034 11,724
Environmental Services 3,005 - - - - 3,005
Sustainability Services Admin. - - - 411,06 - 41,106
Urban Renewal Auth. 21,072 - - - 5,014 26,086
OTHER NON DEPT. TOTAL 11,676 - - - 18,096 29,772
POUDRE FIRE AUTHORITY TOTAL 122,029 - - - - 122,029
GRAND TOTAL $627,092 $132,905 $118,674 $41,106 $333,772 $1,253,549

 

6. Treasury Administration - Where is the Money Kept?

Cash and 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 City policy.

At December 31, 2025, the fair market value of the City’s cash and investments was $657.2 million. The portfolio's overall market yield for 2025 was 4.64% and the realized and unrealized gains and interest earned totaled over $30.5 million.

Bonded Debt Obligations

The City’s credit rating was Aaa by Moody’s Investors Service at December 31, 2025. This highly favorable investment rating, maintained by less than 5% of governments, allows the City to pay less interest on its debt issuances. At December 31, 2025, the City held total bonded debt of $284.8 million. Of this amount, $48.7 million was related to governmental activities and $236.1 million was related to business-type activities. The current portion of the City's long-term obligations, including bonded debt, due within one year totaled $42.5 million.

Cash and Investments

Bar chart of City cash and investments

 

City Debt Obligations

Bar chart of City debt obligations

 

7. Capital Assets - What Does the City Own?

The book value, historical cost less depreciation, of the City’s capital assets totaled over $2.0 billion at December 31, 2025. 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 $64.5 million compared to 2024.

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

Bar chart of Government Capital Assets

Business-Type Capital Assets

Bar chart of business-type capital assets