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

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2. Net Position

The net position, or net worth, of the City on December 31, 2024, was $2.29 billion. Of the net position balance, $453.1 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 $103.6 million (4.7%). The governmental net position increased by $68.0 million (5.4%) and the business-type position increased by $35.5 million (3.8%).

The City’s total long-term liabilities decreased in 2024 by $17.7 million (5.5%) during the current year. Within that activity, the City’s governmental long-term liabilities decreased by $5.4 million (8.3%) and business-type long-term liabilities decreased by $12.3 million to (4.8%).

*Totals may not add due to rounding.

3. Summary of Activities

Governmental program revenues increased over 2023 by $0.1 million, or 0.1%, sales & use tax revenues increased by $25.2 million, or 14.1%, and Governmental expenses increased by $10.2 million, or 3.1%, over 2023. The increase in program revenue is attributed to operating grants and contributions through the American Rescue Plan Act Coronavirus Local Fiscal Recovery Fund, 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 2023, 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 $31.7 million with expenses increasing by only $12.9 million over 2023. This 11.5% 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 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 2024 Annual Comprehensive Financial Report.

*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.

General Fund Renewable - 0.25%

• EXPIRES DECEMBER 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 DECEMBER 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.

Community Capital Improvement Program (CCIP) - 0.25%

• EXPIRES DECEMBER 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.

Natural Areas - 0.25%

• EXPIRES DECEMBER 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.

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 greenhouse gas and air pollution reduction programming, and efforts to reach the City’s 2050 goal of community-wide carbon neutrality. The remaining 25% goes toward transit system infrastructure improvements and upgraded/expanded services.

Dollar amounts in millions and reflect 2024 revenue

• $138.2M - Base Tax Rate, 2.85%
• $10.9M - General Fund Renewable, 0.25%
• $10.9M - Streets & Transportation, 0.25%
• $10.9M - Community Capital Improvement Program (CCIP), 0.25%
• $10.9M - Natural Areas, 0.25%
• $21.7M - Parks & Recreation, Transit and Climate 2050, 0.50%

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 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. More information about the City's budget. 

In 2024, governmental expenditure totaled $344.6 million, an increase of $10.2 million, or 3.1%, when compared to 2023. General Government and Public Safety expenses increased over 2023 by $0.5 million and $6.9 million respectively, while Transportation decreased by $5.6 million. The overall increase 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, Culture, Parks, Recreation and Natural Areas expenses increased by $4.7 million, also due to grant and contribution-related activity, as well as continuing economic growth seen in previous years. Planning and Development increased by a smaller margin of $3.6 million while Interest on Long-Term Debt remained flat, over the prior year.

Business-type expenditures totaled $265.9 million in 2024, an increase of $12.9 million, or 5.1%, when compared to 2023. Increases seen over 2023 and previous years largely occurred in Light & Power expenses, growing by $8.4 million over the prior year, as expenses continue to rise for the Connexion internet service and other developments. While Water, Storm Drainage, Wastewater and Golf-related expenditures only increased over 2023 by $1.8 million, $1.5 million, $0.5 million, and $0.7 million, respectively, with increases in Business-type services driven mostly by inflationary pressures in energy cost, labor, equipment and supplies.

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.

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 Dec. 31, 2024, the fair market value of the City’s cash and investments was $618.3 million. The portfolio's overall market yield for 2024 was -4.16% and the realized and unrealized interest losses were $25.7 million.

Bonded Debt Obligations

The City’s credit rating was Aaa by Moody’s Investors Service at Dec. 31, 2024. 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, 2024, the City held total bonded debt of $291.2 million. Of this amount, $44.7 million was related to government activities and $246.5 million was related to business-type activities. The total of the City’s long-term obligations, which include all bonded debt, due within one year, is $38.8 million.

Cash and Investments

Dec. 31, 2024 in millions

• $208.2M - Corporate Bonds, 33.7%
• $205.0M - Federal Home Loan Bank, 33.1%
• $67.5M - Federal Home Loan Mortgage, 10.9%
• $64.8M - Federal Farm Credit Bank, 10.5%
• $54.0M - Cash & Deposits, 8.7%
• $18.8M - Federal National Mortgage Association, 3.0%

City Debt Obligations

Dec. 31, 2024 in millions

• 2022: $166.4M - Revenue Bonds, $39.9M - Certificates of Participation
• 2023: $263.3M - Revenue Bonds, $43.0M - Certificates of Participation
• 2024: $253.0M - Revenue Bonds, $38.2M - Certificates of Participation

7. Capital Assets - What Does the City Own?

The book value, historical cost less depreciation, of the City’s capital assets totaled $1.9 billion at Dec. 31, 2024. 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 $57.3 million compared to 2023.

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

Net Book Value $1,046.1M

Business-Type Capital Assets

Net Book Value $905.6M