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01/11/2022 - Work Session - Meeting MaterialsSALT LAKE CITY COUNCIL AGENDA WORK SESSION ONLY January 11,2022 Tuesday 2:00 PM This Meeting Will be an Electronic Meeting Pursuant to the Chair’s Determination. SLCCouncil.com No Formal Meeting Please note:A general public comment period will not be held this day.This is the Council's monthly scheduled briefing meeting.Item start times and durations are approximate and are subject to change at the Chair’s discretion. Welcome and public meeting rules The Work Session is a discussion among Council Members and select presenters.The public is welcome to listen.Items scheduled on the Work Session or Formal Meeting may be moved and /or discussed during a different portion of the Meeting based on circumstance or availability of speakers. Please note:Dates not identified in the FYI -Project Timeline are either not applicable or not yet determined.Item start times and durations are approximate and are subject to change at the Chair’s discretion. Generated:07:58:56 This meeting will be an electronic meeting pursuant to the Chair’s determination. As Salt Lake City Council Chair,I hereby determine that conducting the Salt Lake City Council meeting at an anchor location presents a substantial risk to the health and safety of those who may be present.The decision to meet online follows a local increase in COVID-19 cases in the City and elsewhere and will be re-evaluated weekly. The change in meeting attendance is a precautionary measure for the safety of the public and City employees based on the latest reports from the Centers for Disease Control and the Salt Lake County Health Department.The Council will return with hybrid or in-person meetings when appropriate We encourage those interested in participating in meetings to do so how they feel most comfortable.City Council meetings are available on the following platforms: •Facebook Live:www.facebook.com/slcCouncil/ •YouTube:www.youtube.com/slclivemeetings •Web Agenda:www.slc.gov/council/agendas/ •SLCtv Channel 17 Live:www.slctv.com/livestream/SLCtv-Live/2 We welcome and encourage your comments.You may provide comments by calling our 24-Hour comment line,801-535-7654 or emailing council.comments@slcgov.com.Council staff monitors voicemail and email inboxes to ensure all comments received are shared with Council Members and added to the public meeting record.View agenda-related comments at www.slc.gov/council/agendas. More information including Council meeting information and resources can be found at www.SLCCouncil.com. Work Session Items 1.Informational:Updates from the Administration ~2:00 p.m. 30 min. The Council will receive an update from the Administration on major items or projects, including but not limited to: •COVID-19,the March 2020 Earthquake,and the September 2020 Windstorm; •Updates on relieving the condition of people experiencing homelessness; •Police Department work,projects,and staffing,etc.;and •Other projects or updates. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Recurring Briefing Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 2.Informational:Updates on Racial Equity and Policing TENTATIVE - The Council will hold a discussion about recent efforts on various projects City staff are working on related to racial equity and policing in the City.The conversation may include issues of community concern about race,equity,and justice in relation to law enforcement policies,procedures,budget,and ordinances.Discussion may include: •An update or report on the Commission on Racial Equity in Policing;and •Other project updates or discussion. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Recurring Briefing Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 3.Ordinance:Amendment to Require Notice for Permits to Work in the Public Way Follow-up ~2:30 p.m. 20 min. The Council will receive a follow-up briefing on proposed amendments to City code that would require notice for permits to work in the public way.The Council has requested that Engineering codify and expand the policy that adjacent property owners are notified of work being performed in the right of way. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,January 12,2021;Tuesday,February 9,2021;Tuesday,January 11,2022 Set Public Hearing Date -Tuesday,December 8,2020 Hold hearing to accept public comment -Tuesday,January 19,2021 TENTATIVE Council Action -TBD 4.City’s Annual Financial Audit Report ~2:50 p.m. 30 min. The Council will be briefed about the City's Comprehensive Annual Financial Report for the previous fiscal year,and the Management Auditor's letters regarding internal controls and compliance. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,January 11,2022 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 5.Informational:Redistricting Legal Requirements and Considerations ~3:20 p.m. 30 min. The Council will receive a briefing from the City Attorney’s Office about the legal requirements and considerations of redistricting.The Council District boundaries are evaluated and potentially adjusted every ten years based on the Census results.Legal requirements and considerations exist in several laws and case law as established in the courts. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,January 11,2022 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 6.Tentative Break ~3:50 p.m. 20 min. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -n/a Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 7.Informational:City's Watershed and Water Policy ~4:10 p.m. 25 min. Council Members will receive information about the city’s watershed policy and history, including its connection with water rights and water issues.The discussion will also include history surrounding the city’s service of water outside our municipal boundaries,and the connected issues. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,January 11,2022 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -n/a 8.Ordinance:City's Designated Water Service Area ~4:35 p.m. 20 min. The Council will receive a briefing about a current proposal for the City to establish by ordinance and map a designated water service area.The proposed water service area is congruent with existing and historical service commitments.The proposal is the result of a new requirement cascading from Utah's 2020 constitutional amendment D,which passed. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,January 11,2022 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -TBD 9.Resolution:Utah Inland Port Authority Board ~4:55 p.m. 15 min. The Council will discuss a new appointment to the Utah Inland Port Authority Board. FYI –Project Timeline:(subject to change per Chair direction or Council discussion) Briefing -Tuesday,January 11,2022 Set Public Hearing Date -n/a Hold hearing to accept public comment -n/a TENTATIVE Council Action -Tuesday,January 18,2022 Standing Items 10.Report of the Chair and Vice Chair Report of Chair and Vice Chair. 11.Report and Announcements from the Executive Director - - Report of the Executive Director,including a review of Council information items and announcements.The Council may give feedback or staff direction on any item related to City Council business,including but not limited to; •Council District Newsletters for Public Utilities Mailing;and •Scheduling Items. 12.Tentative Closed Session - - The Council will consider a motion to enter into Closed Session.A closed meeting described under Section 52-4-205 may be held for specific purposes including,but not limited to: a.discussion of the character,professional competence,or physical or mental health of an individual; b.strategy sessions to discuss collective bargaining; c.strategy sessions to discuss pending or reasonably imminent litigation; d.strategy sessions to discuss the purchase,exchange,or lease of real property, including any form of a water right or water shares,if public discussion of the transaction would: (i)disclose the appraisal or estimated value of the property under consideration; or (ii)prevent the public body from completing the transaction on the best possible terms; e.strategy sessions to discuss the sale of real property,including any form of a water right or water shares,if: (i)public discussion of the transaction would: (A)disclose the appraisal or estimated value of the property under consideration;or (B)prevent the public body from completing the transaction on the best possible terms; (ii)the public body previously gave public notice that the property would be offered for sale;and (iii)the terms of the sale are publicly disclosed before the public body approves the sale; f.discussion regarding deployment of security personnel,devices,or systems;and g.investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. CERTIFICATE OF POSTING On or before 5:00 p.m.on _____________________,the undersigned,duly appointed City Recorder,does hereby certify that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who have indicated interest. CINDY LOU TRISHMAN SALT LAKE CITY RECORDER Final action may be taken in relation to any topic listed on the agenda,including but not limited to adoption,rejection,amendment,addition of conditions and variations of options discussed. People with disabilities may make requests for reasonable accommodation,which may include alternate formats,interpreters,and other auxiliary aids and services.Please make requests at least two business days in advance.To make a request,please contact the City Council Office at council.comments@slcgov.com,801-535-7600,or relay service 711. Administrative updates January 11, 2022 COVID 19 update Current metrics Cases are surging and we continue to see record case numbers each day, including in SLCO. The 14-day case rate in SLCO is up by 161%. Utah has the 5th highest increase in cases in the nation. COVID ICU utilization is at 35%, with ICUs 96% full statewide. 23% of kids ages 5-11 in the County are fully vaccinated. COVID 19 update Omicron variant SLCo Health Department mask requirement in effect until February 7th. Respirator masks required in indoor public spaces and in line to enter public spaces. Nearly a quarter of County residents are unvaccinated and at serious risk. In the recent surge, 83% of cases are unvaccinated or not up to date. COVID 19 update SLC 14-day snapshot Citywide vaccination average = 67.16% Zip % fully vaccinated 1.4.22 1.11.22 84101 80.08 80.19 84102 61.68 61.72 84103 72.89 72.92 84104 51.40 51.64 84105 72.36 72.46 84106 66.13 66.30 84108 72.98 73.09 84109 73.72 73.96 84111 71.01 71.18 84115 60.08 61.08 84116 54.01 54.29 Homelessness Update: HRC and Overflow Occupancy January 1 –January 7th STH -1000 West Men's HRC STH -King Women's HRC STH -Miller Mixed HRC Total St Vincent de Paul Shelter Capacity 300 200 200 700 Avg number of beds occupied/night 295 194 189 679 68 Avg number of beds unoccupied/night 5 6 11 21 Avg % of beds occupied/night 98.9%97.1%94.3%97.1% Avg % of beds unoccupied/night 1.8%2.9%5.7%2.9% Resource Fairs Next fair will be held January 21st –location TBD. Cleaning and Abatement With the weather lightening up and new overflow resources coming online, we will be working with the county health department on abatement of a few smaller camps this week. Occupied vehicle response has begun, with 900 S being addressed last week. Abandoned vehicles or those being used for storage only may be towed, and the city is working with the overflow shelter providers to refer those living in vehicles to overflow and shelter beds as soon as they are available. Homelessness update Homelessness Overflow Shelter status •VOA was able to open the Weigand Center doors starting last night. This program has nightly capacity for 35 people, in addition to the St. Vincent program, which can serve 58 people at a time. •The High Needs Temporary Housing Program (formerly the Ramada Inn)will be opened in phases, beginning next week with the opening of referral -only hotel rooms for elderly and medically vulnerable people. •The best way to access emergency shelter beds is:801-990-9999 City Council Update –January 4, 2022 Chief Mike Brown Update on Response Times December-2021 Priority 1 Average Response Time -10:46 Priority 2 Average Response Time -16:55 Priority 3 Average Response Time -35:47 Update on Response Times November-2021 Priority 1 Average Response Time -12:58 Priority 2 Average Response Time -20:08 Priority 3 Average Response Time -50:59 December-2021 Priority 1 Average Response Time -10:46 Priority 2 Average Response Time -16:55 Priority 3 Average Response Time -35:47 •Priority 1 Average Response Time Difference Between November and December: 2m:12s •Priority 2 Average Response Time Difference Between November and December: 3m:13s •Priority 3 Average Response Time Difference Between November and December: 15m:12s Update on Response Times In 2021, SLCPD received 127,668 calls for service. That is an increase of 4,303 calls for service from this time in 2020. Yet, our response times continue to improve. Update on Response Times •In October, SLCPD started a program to increase the number of officers available to take telephonic calls for service. •Between October 20th, 2021 –January 3rd, 2022, SLCPD officers have handled 2,092 calls for service. •SLCPD has generated 577 (or 29%) police written reports during this program. •The average telephonic officer is handling about 29 calls for service, per shift. •This program is allowing patrol officers to be available to respond to high priority, in-progress emergencies. CompStat Update –Week 52 (12/27/21 –1/2/22) •Weapon Offenses were up 33% in the last 28 days. •Example of our concern: Drive by shooting December 26, 2021: •In the middle of the afternoon, officers responded to an apartment complex that sits about 1,000 feet from an elementary school and a church. •Our officers got on scene and found 6 bullet holes that pierced through two apartment units. •No one injured. •On paper, violent crime is down 10% in the last 28 days. But for the family living in that apartment, crime and the fear of future crime is likely at an all-time high. CompStat Update –Week 52 (12/27/21 –1/2/22) Recruit Class 156 •Hiring consistent with our Revised Crime Control Plan •Eight are female recruit officers •Graduation date: Est. June 2022 •Sworn vacant positions: 33 On Monday, we proudly started a police academy class with 27 potential new police officers. Questions COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Nick Tarbet, Policy Analyst DATE: January 11, 2022 RE:Text Amendment: Public Notice for Permits to Work in the Public Right of Way PROJECT TIMELINE: Written Briefing: Jan 12, 2021 Briefing 2: Feb 9, 2021 Briefing 3 January 11, 2022 Set Date: December 8, 2020 Public Hearing 1: Jan 19, 2021 Public Hearing 2: TBD Potential Action: TBD New Information The Council will be briefed on proposed amendments to City Code requiring permit applicants for construction work in the public right of way to provide notice to property owners whose properties are adjacent to the work that will be performed. The proposed changes were requested in response to numerous constituent inquiries about the lack of notice on certain nearby utility construction projects. Much of the right-of-way work that is performed is governed by State statute and limits the amount of interaction the City has with the work. However, in balancing the work that is performed and the impact to residents, some additional noticing steps are proposed to be added to the ordinance. Originally, the petition was intended to only apply to above-ground work in the public right of way. However, based on a public hearing on January 12, 2021 and a follow-up work session on February 9, 2021, the Council directed staff to work with the Administration to make the following changes to the draft ordinance: Include under-ground work as part of the notification requirements Notification should be provided before obtaining the permit o Proof must be part of the permit application The applicant is responsible to give proof that notice was provided Outline specific requirements that should be included in notice o Purpose of construction, contact info, date of construction, etc. Page | 2 The Administration has forwarded the attached ordinance for the Council to consider. The following table shows where the requested changes are included in the draft ordinance. Please see the legislative draft. Requested Change Page and Line(s) Include underground work as part of the notification requirements Page 4, lines 148-150 Notification should be provided before obtaining the permit. Proof must be part of the permit application Page 4, lines 141-143 The applicant is responsible to give proof that notice was provided Page 4, lines 141-143 Specific requirements that should be included in notice: purpose of construction, contact info, date of construction, etc. Page 5, lines 159-175 During the February 9 public hearing, representatives from Verizon spoke, in addition to submitting a letter outlining their concerns. They stated the current process is efficient and they would prefer to provide notice to property owners after the permit has been received. The new ordinance would require them to provide notice before they obtain a permit. Their concerns are outlined below on pages 3-4. The revised draft has not been distributed for public comment yet. Staff wanted to check in with the Council Members to make sure the updated version meets the Council’s intent. If it does, staff recommends setting a public hearing for February. Staff will then send the revised ordinance to stakeholders for comment. Policy Questions 1. The draft ordinance requires notification for work located below ground and behind the curb to adjacent properties on the same side of the public right of way, while notice for work below ground and in the paved section of the public way will be required for both sides of the public right of way. The Council may wish to ask the administration why this difference is needed. Would it be appropriate to notice both sides of the street, even when work is done behind the curb and gutter? 2. The draft ordinance says the applicant is responsible for delivering the public notice unless otherwise determined by the City Engineer. The Council may wish to ask the Administration what situation are envisioned that the applicant may not be the one responsible for delivering the public notice. Page | 3 The following information was provide for the February 9, 2021 work session briefing. It is provided again for background purposes. PUBLIC HEARING SUMMARY During the public hearing members of the public spoke about the proposed changes and asked some questions, Additionally, a letter from Verizon was submitted pertaining to the proposed change. A few individuals requested the Council require public notice for below ground work as well. Some also said current contractors are not doing a good job of restoring property to the way it was before the work happened. Verizon representatives spoke during the public hearing and also submitted a letter, outlining their concerns. They stated the current process is efficient and they would prefer to provide notice to property owners after the permit has been received. The new ordinance would require them to provide notice before they obtain a permit. Council staff met with staff from CAN and the Attorney’s Office to go over the comments and formulate the following responses. 1. Request to apply the notification requirement to work “below ground” as well. Administrative staff said this is obviously possible, but it will likely require an increase in staff and costs for the city to monitor and / or respond to concerns about projects. The proposed change before the Council would only require public notice to adjacent property owners for above ground work – typically, this type of work is limited to a few properties that are near the above ground poles/facilities. Underground work can go for hundreds of yards (larger/longer projects would be miles). It would take more staff to verify and ensure the public notices were properly provided. Administrative staff have prepared some very preliminary estimates for cost/staffing impact to the City. They will be available during the briefing to respond to questions the Council may have about potential cost of notifying for below ground work. 2. Reponses to Verizon’s Letter Verizon’s request: Allow permit holders to post notice after the permit is obtained. Prefer to submit template with permit application and actual notice is provided 48-72 hours before work commences. Administration response: o CAN staff said the current process has not been working and that is the reason for the proposed changes. The goal is to get the notifications out sooner, so the public is aware of the work before the permit is issued. o The new process would require the permit holder to submit evidence that the notice was provided to adjacent property owners. They then submit that as part of their permit application. The work would typically commence about 2-3 weeks later. Page | 4 Verizon’s request: Clarify type of evidence that is required to demonstrate applicant has satisfied notification requirement. Administration response: o CAN staff said notice such as a door hangar, with timestamped photos is one way to satisfy this requirement. o The goal is to avoid situations where a piece of paper is placed on a doorstep that can easily be blown away. Verizon’s request: Adopt definition of adjacent owner currently in notification process. Administration response: o CAN staff stated this could be clarified. Verizon’s request: Clarify purpose of the notice and what is to be included in the description of the purpose of construction. Administration response: o CAN staff has stated they can help provide examples of the type of language they that should be on the notice. o They can do this to help ensure consistency for all permit holders. Verizon’s request: Clarify definition of above ground work; does it include excavation to run conduit or lay fiber. Administration response: o CAN staff has stated this type of work applies to facilities that are permanently above ground or on poles or anything that would fall under the master license agreement for small cells. o Typically, this type of work would also include trenching for conduit. Verizon’s request: Any other info reasonably required by City engineer is too broad Administration response: o CAN staff stated this is meant to be specific to notice requirements. They can provide some language to clarify that. POLICY QUESTIONS 1. Some Council Members have expressed interest to require more public notice for below ground work. Does the Council want to adopt these proposed changes and also adopt a legislative action asking the Administration to come back with a proposal for increased public outreach for underground work in the public right of way? o This may include identifying options to require contractors to do the outreach and an option for the city to be responsible for providing the public notice 2. The Council may want to ask about the description of information that would be suggested / requested for the notice. For example, location, description, duration of type of work; contact information for the contractor and City, etc.? 3. The Council may wish to ask what the change in the timeline for permit holders would be and how the Administration can notify potential applicants of the changes. Page | 5 The following information was provide for the January 19 public hearing. It is provided again for background purposes. WORK SESSION SUMMARY This item was on the January 12 agenda as a written briefing. Council Members did not raise any concerns or ask staff questions about the proposed changes. The public hearing is scheduled for January 19. The following information was provide for the January 12 work session briefing. It is provided again for background purposes. ISSUE AT-A-GLANCE The Council will be briefed on proposed amendments to City code requiring permit holders to provide notice to property owners whose properties are adjacent to the above groundwork that will be performed in the public way. The proposed changes were requested in response to numerous constituent inquiries about the lack of notice to adjacent property owners. Much of the right-of-way work that is performed is governed by State statute and limits the amount of interaction the City has with the work. However, in balancing the work that is performed and the impact to residents, some additional noticing steps are being added to the ordinance. The key changes would require the franchise holder/applicant to provide the following: Evidence that they provided notice to all property owners whose properties are adjacent to the portion of the public way where the work is being performed. Notice that includes the name of the permit holder performing the construction, the purpose of the construction, and a contact phone number and email for the permit holder. Evidence shall be satisfactory to the City Engineer that all adjacent property owners have received notice. Related text cleanups to match current practice. Since work in the public right of way is overseen by the City’s Engineering Division, they have reviewed the ordinance in collaboration with the Attorney’s Office. Engineering has expressed their support for these proposed changes. Administrative staff have noted the contractor will have to give notice of the construction prior to submitting an application for a permit to Engineering. Once Engineering approves the permit, the contractor may move forward with construction. PUBLIC PROCESS Engineering provided Council Staff a list of the companies who do much of the work in the public right of way. Council staff emailed this group to let them know about the proposed changes, and the dates of the briefing and public hearing. POLICY QUESTIONS 1. For the properties that would be included in the notification, the Council may wish to consider expanding the requirement beyond the proposal of adjacent property owners. Page | 6 2. If the Council has questions about the timing of the when the notice must be given to when the permit is granted, the Council may wish to ask the administration to explain the process for when the notice must be given before receiving the permit for construction. 3. If it would be helpful, the Council may wish to ask the Attorney’s office or Administration representative to provide a quick review on the types of things the City is able to require or request versus items that are monitored or regulated by the State. 4. The Council may also ask Engineering to provide a description of their typical interaction with the permit holders. 5. The Council may wish to raise any other issues that have been raised by constituents. 6. The Council may wish to ask about options to address issues when the noticing requirements are not followed. Lisa Shaffer (Dec 14, 2021 13:14 MST) 12/14/2021 12/14/2021 SALT LAKE CITY CORPORATION SALT LAKE CITY, UTAH ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2021 With INDEPENDENT AUDITOR’S REPORT Prepared by Department of Finance Mary Beth Thompson, Chief Financial Officer i INTRODUCTORY SECTION: Title Page .......................................................................................................................................................................................i Table of Contents ...........................................................................................................................................................................ii Transmittal Letter ..........................................................................................................................................................................v Organizational Structure ................................................................................................................................................................xii Certificate of Achievement ............................................................................................................................................................xiii FINANCIAL SECTION: Independent Auditor’s Report .............................................................................................................................................................2 Management’s Discussion and Analysis .............................................................................................................................................4 Basic Financial Statements Government-wide Financial Statements Statement of Net Position .......................................................................................................................................................17 Statement of Activities ............................................................................................................................................................19 Governmental Fund Financial Statements Balance Sheet ..........................................................................................................................................................................22 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .................................................23 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................................24 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ........................................................................................................................................................................25 Proprietary Fund Financial Statements Statement of Net Position .......................................................................................................................................................27 Reconciliation of Proprietary Fund Statement of Net Position to the Primary Government Business-type Statement of Net Position ....................................................................................................................................................................31 Statement of Revenues, Expenses, and Changes in Fund Net Position ..................................................................................33 Reconciliation of Proprietary Fund changes in Net Position to the Primary Government Business-type Changes in Net Position ...........................................................................................................................................................................35 Statement of Cash Flows .........................................................................................................................................................37 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position .......................................................................................................................................40 Statement of Changes in Fiduciary Net Position ....................................................................................................................41 Notes to the Financial Statements .................................................................................................................................................. Note 1. Summary of Significant Accounting Policies .................................................................................................43 Note 2. Cash, Cash Equivalents and Investments ........................................................................................................53 Note 3. Loans Receivable ............................................................................................................................................57 Note 4. Restricted Assets .............................................................................................................................................58 Note 5. Capital Assets ..................................................................................................................................................59 Note 6. Long-term Obligations ....................................................................................................................................62 Note 7. Fund Equity .....................................................................................................................................................74 Note 8. Deficit Fund Balances/Net Position, Expenditures and Other Uses That Exceed Appropriations in ............. Individual Funds .............................................................................................................................................76 Note 9. General Fund Interfund Service Charges ........................................................................................................76 Note 10. Transfers ..........................................................................................................................................................77 Note 11. Risk Management ............................................................................................................................................77 Note 12. Pension Plans ...................................................................................................................................................79 Note 13. Deferred Compensation Plans .........................................................................................................................95 Note 14. Other Post-employment Benefits ....................................................................................................................96 Note 15. Commitments and Contingencies ....................................................................................................................98 TABLE OF CONTENTS Pages ii Note 16. Related Party Transactions ..............................................................................................................................103 Note 17. Joint Venture ...................................................................................................................................................103 Note 18. Recent Accounting Pronouncements ..............................................................................................................105 Note 19. Subsequent Events ...........................................................................................................................................107 Required Supplementary Information Budgetary Comparison Schedule – General Fund .........................................................................................................................109 Schedule of the Proportionate Share of the Net Pension Liability ................................................................................................110 Schedule of Contributions - Last Ten Fiscal Years .......................................................................................................................113 Schedule of Changes in Net Pension Liability - Last Ten Fiscal Years ........................................................................................118 Schedule of Changes in Total OPEB Liability - Library - Last Ten Fiscal Years ........................................................................118 Notes to Required Supplementary Information Budgetary - GAAP Reporting Reconciliation ...............................................................................................................................121 Post Employment Benefits other than Pensions ............................................................................................................................122 Supplementary Information – Combining Statements and Individual Fund Statements and Schedules Governmental Funds Nonmajor Governmental Funds Combining Balance Sheet .................................................................................................................................................125 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................................126 Combining Balance Sheet – Nonmajor Special Revenue Funds ......................................................................................127 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Special Revenue Funds .128 Budgetary Comparison Schedules Arts Council .................................................................................................................................................................131 Downtown Economic Development ...........................................................................................................................132 Community Development Operating Fund ..................................................................................................................133 Grants Operating Fund ................................................................................................................................................134 Street Lighting ............................................................................................................................................................135 Demolition, Weed and Forfeiture ................................................................................................................................136 Emergency 911 Dispatch .............................................................................................................................................137 Salt Lake City Donation Fund .....................................................................................................................................138 Salt Lake City Transportation Fund .............................................................................................................................139 Combining Balance Sheet – Nonmajor Debt Service Funds .............................................................................................140 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................................141 Budgetary Comparison Schedules Special Improvement Fund ........................................................................................142 Major Governmental Funds Budgetary Comparison Schedules Capital Projects Fund ...................................................................................................................................................144 Other Improvement Fund .............................................................................................................................................145 Enterprise Funds Nonmajor Proprietary Funds Combining Statement of Net Position .........................................................................................................................147 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .....................................................151 Combining Statement of Cash Flows ..........................................................................................................................153 Budgetary Comparison Schedules Street Lighting .......................................................................................................................................................155 Refuse Collection Fund ........................................................................................................................................156 Housing and Loan Fund .......................................................................................................................................157 Golf Fund ..............................................................................................................................................................158 Major Proprietary Funds TABLE OF CONTENTS Pages iii Budgetary Comparison Schedules Supplementary Information – Combining Statements and Individual Fund Statements And Schedules (continued) Department of Airports .........................................................................................................................................160 Water Utility Fund ................................................................................................................................................161 Sewer Utility Fund ................................................................................................................................................162 Stormwater Utility Fund .......................................................................................................................................163 Redevelopment Agency Fund ..............................................................................................................................164 Internal Service Funds Combining Statement of Net Position .........................................................................................................................167 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .....................................................169 Combining Statement of Cash Flows ..........................................................................................................................171 Budgetary Comparison Schedules Fleet Management Fund ........................................................................................................................................173 Information Management Services Fund ..............................................................................................................174 Risk Management Fund ........................................................................................................................................175 Governmental Immunity Fund ..............................................................................................................................176 Local Building Authority Fund .............................................................................................................................177 STATISTICAL SECTION: (unaudited) Net Position by component – Last Ten Fiscal Years ....................................................................................................................180 Change in Net Position – Last Ten Fiscal Years ..........................................................................................................................181 Fund Balance of Governmental Funds – Last Ten Fiscal Years ...................................................................................................183 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ..............................................................................185 Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years ................................................................................187 Business Type Activities Revenues by Source - Last Ten Fiscal Years .......................................................................................188 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................................................................188 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ...........................................................................................190 Principal Property Tax Payers - Current Year and Ten Years Ago ...............................................................................................191 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................................................................192 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .......................................................................................................193 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .........................................................................................194 Computation of Direct and Overlapping Bonded Debt ................................................................................................................195 Legal Debt Margin Information – Last Ten Fiscal Years ..............................................................................................................196 Pledged-Revenue Coverage – Last Ten Fiscal Years ....................................................................................................................197 Demographic and Economic Statistics - Last Ten Fiscal Years ....................................................................................................198 Full-time Equivalent City Government by Functions – Last Ten Fiscal Years .............................................................................199 Principal Employers - Current Year and Ten Years Ago ..............................................................................................................200 Operating Indicators by Function - Last Ten Fiscal Years ............................................................................................................201 Capital Asset Statistics by Function - Last Ten Fiscal Years ........................................................................................................202 TABLE OF CONTENTS Pages iv DEPARTMENT OF FINANCE December 23, 2021 The Honorable Mayor and Members of the City Council Salt Lake City Corporation Overview The Annual Comprehensive Financial Report of Salt Lake City Corporation (“the City”) for the fiscal year ended June 30, 2021, is submitted herewith. These financial statements have been prepared by the Salt Lake City Department of Finance in accordance with Generally Accepted Accounting Principles (GAAP) for local governments as prescribed by the Governmental Accounting Standards Board (GASB). The accuracy of the presented data and the completeness and fairness of the presentations, including all disclosures, are the responsibility of the management of the City. We believe the data, as presented, is accurate in all material respects and is presented in a manner that fairly sets forth the following aspects of the City: (1) the financial position of the governmental activities; (2) the business- type activities; (3) the discretely presented component unit; (4) each major fund; (5) the aggregate remaining fund information; (6) the respective changes in financial position and (7) applicable cash flows. In order to provide a reasonable basis for making these representations, the management of Salt Lake City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Salt Lake City Corporation’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, Salt Lake City Corporation’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief, this report is complete and reliable in all material respects. Eide Bailly, LLP an independent firm of Certified Public Accountants, has audited these basic financial statements and related notes. Their report is included herein. The goal of the independent audit is to provide reasonable assurance that the financial statements of Salt Lake City Corporation for the fiscal year ended June 30, 2021 are free of material misstatements. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used, and significant estimates made by management. Additionally, Eide Bailly, LLP audited the compliance requirements of the City’s federal grant programs for the year ended June 30, 2021 as part of the federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. That report is available under a separate cover. LOCATION: 451 SOUTH STATE STREET, ROOM 248, SALT LAKE CITY, UTAH 84111-3102 MAILING ADDRESS: PO BOX 145452, SALT LAKE CITY, UTAH 84114-5452 TELEPHONE: 801-535-7676 FAX: 801-535-7682 GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF SALT LAKE CITY Salt Lake City lies between the Wasatch Mountains and the Great Salt Lake at an altitude of 4,200 feet. Permanent settlement of the City began on July 24, 1847, when Brigham Young with a party of 148 Mormon pioneers entered the Salt Lake Valley after a 1,500-mile trek westward. Salt Lake City was incorporated on January 6, 1851 and soon became a major center for trade and commerce with the wagon trains carrying settlers and miners westward. Within a few years of the pioneers' arrival, other communities were settled throughout the Salt Lake Valley. Due to continuous economic and population growth, most of these cities in the valley survived and prospered, and have grown into a single large metropolitan area of over 1,000,000 people. Salt Lake City is the commercial center of this metropolis and the most populous municipality in the state with a population of approximately 200,000. Salt Lake City is also the center of the scenic intermountain west. Within a day's drive of the City, travelers can visit 70% of the officially designated national parks and monuments of America. The Wasatch Mountains, east of the City, are well known for their ski resorts, which are within a 45-minute drive from downtown Salt Lake City. More than 300,000 out-of-state skiers come to these resorts each year. The scenic Wasatch Front provided an excellent backdrop, as the City hosted the 2002 Winter Olympics, with the possibility of hosting the Winter Olympics in 2030 or 2034. Salt Lake City also plays host to visitors who come to the area to enjoy a number of other outdoor recreational opportunities within a short drive from the City. Salt Lake City is the international headquarters of The Church of Jesus Christ of Latter-day Saints. At Temple Square in downtown Salt Lake City, over 5 million visitors see the famous Salt Lake Temple, Tabernacle, and visitor centers each year. The Salt Palace Convention Center (located in downtown Salt Lake City) plays host to many different activities. This facility has a 45,000 square foot ballroom, nearly three quarters of a million square feet of exhibit space, and a total of 164,000 square feet of meeting space. This convention space provides its users with the most up-to-date technological capabilities available. It is wired with miles of wire and fiber optic cable for up-to-date computer and communications, including satellite uplink capability and includes a wireless network. The downtown area has close to 30 hotels where travelers and convention-goers can stay, with dozens more in close proximity to the City. A 26 story convention center hotel featuring over 700 rooms, and approximately 62,000 square feet of meeting space is currently under construction and will be integrated into the facility. Completion of the hotel is anticipated in the fall of 2022. Although 2020 began with optimism for Salt Lake City, it quickly became apparent it would be a difficult year as the City would be thrust into the challenges posed by the COVID-19 pandemic, as has been the case for other cities throughout the state and the nation. Civil unrest and a 5.7 earthquake had a significant impact on the City’s day-to-day operations. During the following year, however, Salt Lake City has risen to the challenge, adjusting where necessary, and looks forward to the eventual end to the pandemic and its effects, as well as the prosperity that will no doubt follow. EDUCATIONAL OPPORTUNITIES Several universities and colleges are located in or near Salt Lake City. One of the strengths of the downtown economy is its young, highly educated workforce. vi The University of Utah is located on the east bench of Salt Lake City. This university was founded in 1850 and is the oldest mainland university west of the Missouri River. Over 33,000 full and part-time students are enrolled. The Utah Museum of Fine Arts and the Utah Museum of Natural History are located on the University of Utah campus. The University also includes a highly-ranked medical school and teaching hospital. Numerous additional institutions of higher education maintain campuses in the urban center, including Neumont University, Brigham Young University, Ensign College and Salt Lake Community College. Utah State University and Weber State University have campuses to the north and Brigham Young University and Utah Valley University are to the South. With educational opportunities so abundant, the Salt Lake area is plentiful with young educated talent ready and able to join the workforce. CULTURE AND ENTERTAINMENT Salt Lake City is home to a thriving, vibrant, creative population supported by a larger community that values the arts in all forms. Salt Lake City has long placed significant value on the arts, starting one of the nation’s first publicly funded Arts Councils in 1899. Today, the Salt Lake City Arts Council puts on some of the city’s largest concerts and festivals, such as the Twilight Concerts and the Living Traditions Festival. These and other programs and partnerships help the City maintain a strong public art program making the arts accessible for everyone. Far from a sleepy perception that people might have of downtown SLC, evenings from Main Street and surrounding streets are hopping with bars and restaurants intermixed with performance venues, with some of the finest world-class entertainment and mixologists you’ll find anywhere. The Vivint Arena, located three blocks directly west of Temple Square, is the home of the Utah Jazz of the National Basketball Association. Smith's Ballpark, just south of downtown, is the home field of the Salt Lake Bees, a minor league baseball team. As the capital city of Utah, Salt Lake City provides an unparalleled quality of life. Residents and visitors enjoy an eclectic visual, musical and performing arts scene with hundreds of venues, galleries, museums and the popular state-of-the-art Broadway-style Eccles Theater, a 2,500-seat theater designed to suit traveling Broadway shows. Abravanel Hall, home of the Utah Symphony Orchestra, the Pioneer Memorial Theater, the Utah Civic Opera Company, Clark Planetarium and the Utah Heritage Foundation help round out the entertainment options available to area residents and visitors. Salt Lake City provides diverse and rich cultural and entertainment experiences that make living and working within the City more and more desirable. Additionally, family owned restaurants, friendly cafes, world-class microbreweries and craft cocktail establishments all help make Salt Lake City the foodie capital of the region. Over 90 lush parks and miles of protected open space and trails make Salt Lake City an urban outdoor paradise for hiking, biking and running, not to mention the city is surrounded by 10 world-class ski resorts within an hour's drive. As with other facets of the City’s daily life, the COVID-19 pandemic has had an impact on the availability of culture and entertainment opportunities in the City. The City’s venues and restaurants are continuing to take every precaution while also taking advantage of every chance to provide enjoyment to residents and visitors to the City. SHOPPING AND OTHER ENTERTAINMENT The cultural aspects aren’t the only draw of the City’s downtown center. Salt Lake also hosts a number of high quality stores for an enjoyable shopping experience. The City’s downtown has long been defined in part by its historically strong retail and restaurant economy. Downtown is home to two major shopping destinations, City Creek Center and the Gateway. City Creek Center maintains its role as the most popular shopping experience in downtown, accounting for a significant percentage vii of downtown’s sales in clothing and clothing accessories. Trolley Square, Brickyard Plaza and the 9th and 9th area of the City are other worthy inclusions in the list of the City's shopping destinations. Salt Lake City also has a well-developed system of municipal golf courses for the enjoyment of area residents. One of these golf courses in particular has been recognized for its excellence. Bonneville golf course was chosen by PGA professionals as one of six favorite classic golf courses (golf courses that have green fees less than $125 during peak season). COMMERCE, INDUSTRY, TRANSPORTATION AND FACTORS AFFECTING FINANCIAL CONDITION According to CBRE Location Intelligence, over 2.5 million people – 27% of them in the 18-to-34 age demographic – live within 50 miles of downtown Salt Lake City, with a 9% projected growth rate over the next five years. Salt Lake City is the population hub of Utah – the fastest-growing state in terms of residents, according to ESRI Demographics. Utah’s population has grown 11% since 2014, reaching 3.2 million residents last year. Salt Lake City is a major transportation crossroads in the intermountain west. Three major railroads, nine major airlines, two bus lines and many truck lines serve the area. The City is located at the convergence of four major highways and two interstate highway systems. The Salt Lake International Airport is a major intermountain air transportation hub and a principal hub and reservation center for Delta Air Lines. The Salt Lake International Airport has recently undergone a major terminal redevelopment program, substantially opened in 2020, with the final phases being completed by 2024. This redevelopment effort is allowing the Airport to better cater to business as well as leisure travelers. The Utah Transit Authority operates an outstanding commuter bus, light rail, and heavy commuter rail system in Salt Lake City and throughout neighboring counties. The Frontrunner commuter rail system extends for nearly ninety miles from the Ogden area in the north to the Provo area in the south. Frontrunner provides an efficient and swift means of transportation all along the Wasatch Front with trains reaching 79 mph along their route. In recent years, over 1,000 new hotel rooms have been completed, are currently under construction or are planned, including plans for a new convention center hotel that is being built adjacent to the Salt Palace Convention Center. The City continues to receive accolades in the form of awards and recognition. The Milken Institute has ranked the City #4 on the list of Best-Performing Large Cities. As the economic hub of the State of Utah, the City deserves recognition when the state is ranked in areas such as #1 Best State for GDP Growth (Forbes), #1 Best State Economy (WalletHub), Best Economy (U.S. New & World Report) and Best Economic Outlook (Rich States Poor States). Other recent accolades include State Farm and BestPlaces’ rank of #1 on their list of Most Fiscally Fit Cities. The City was also ranked #1 on the Forbes list of Cities Poised to Become Tomorrow’s Tech Meccas. The City provides a full range of municipal services including police, fire, recreational activities including six municipal golf courses, libraries, water, sewer, storm water, airports, public improvements, highways and streets, planning and zoning, and general administrative services. The modern economy of Salt Lake City is rich in service-oriented businesses and continues to be recognized by economists and employers across the nation as the “Crossroads of the West” with major industries in government, trade, transportation, utilities, professional, business services and a growing alternative energy component. With Interstate 15 and Interstate 80 as major corridors for freight traffic, combined with numerous regional distribution centers, transportation is a significant portion of the employment base for the Salt Lake Valley. The Salt Lake City International Airport is also an important facet of this transportation corridor. As mentioned above, the burgeoning travel and transportation needs of the City and surrounding markets has necessitated the viii redevelopment of the Airport. The Airport Terminal Redevelopment Program recently reached its conclusion after many years of construction, and the new terminal is now fully operational. The project, well in excess of $2 billion, has generated nearly 24,000 jobs and $1 billion in wages since it began. Salt Lake City’s growing business prowess is further demonstrated by the increasing number of tech startups and business incubators. The Google Fiber fiber optic network is well under way and 1 gigabit speeds are now being offered to residents and businesses in the downtown area of the city. In addition to being a prime location for industrial development, Salt Lake City has a unique location and effective transportation infrastructure to help it stand out as a hub for the global distribution industry. A surge in demand for freight volume has attracted companies such as FedEx, DHS and UPS to open distribution centers that provide hundreds of jobs for Salt Lake City residents. Salt Lake City also acts as a full-service 'customs port-city' to the 1,600 trucking companies that utilize Utah's transportation network. Salt Lake City International Airport is 2.5 hours from half the nation's population and offers direct flights to both Europe and Asia. The COVID-19 pandemic has markedly impacted the economy of the city as well as the state. Recovery is underway, and much of the City's business, retail and industry have made great headway toward returning to normalcy. Nonfarm employment is anticipated to reach pre-pandemic levels within two to three years. However, on a more positive note, it has become clear how different Utah, and Salt Lake City, is from the rest of the U.S. economy right now. The Economic Coincident Indicator Index, which takes several measures – unemployment, job growth, compensation, and manufacturing hours worked, and groups them into one indicator, has recently shown that while the entire U.S. dropped by 5.2%, and every single state, except Utah, also showing a decrease, Utah is showing an increase of 5.9%. “We are on an island, a different place,” says Natalie Gochnour, Associate Dean of the University of Utah Eccles School of Business. EMPLOYMENT ACTIVITY Salt Lake City is the central city to 2.1 million inhabitants residing in four counties within an hour’s drive from downtown. The majority of Utah’s approximately 3.0+ million residents live in the Wasatch Front urban corridor stretching from Ogden to Provo. The City’s daytime population increases greatly as a significant portion of the state’s total work force commutes to jobs located within the city limits. Over the ten plus years since the Great Recession, and prior to the COVID-19 pandemic, downtown Salt Lake City saw notable increases in office and restaurant employment at 17% and 7% respectively, and significantly the city saw an 83.3% increase in retail employment. Following national trends, Salt Lake City experienced declining employment during the recession, but has seen employment numbers rebound remarkably. Utah's unemployment rate was estimated to be 2.2% , considerably lower than the national average unemployment rate. Salt Lake City's unemployment rate is approximately the same as the State of Utah. While the pandemic has had an impact on jobs in the State and the City, in terms of job change over time, we have done better than the national average. At Utah’s lowest point following the beginning of the pandemic, it stood at the same level that the remainder of the U.S. is at today. Over the ensuing months, Utah has seen over 5% increase in job growth above the low point of the pandemic. Some industries have been impacted by the pandemic more significantly than others. Leisure/Hospitality services and Natural Resources industries have been most greatly impacted by changes brought on by the pandemic. On a positive note, construction has seen a marked increase over the past year. TAXABLE SALES ACTIVITY Despite the impact of the pandemic on overall economy, sales taxes in the City performed well during FY 2021 and is budgeted to increase by over $8.7 million in FY 2022, including the ½ percent funding for Funding Our Futures. ix SUMMARY OUTLOOK Salt Lake City is enduring the effects of the COVID-19 pandemic and the attendant national economic downturn. There remains hope on the horizon amid evidence that there will be continued and significant investment in the downtown core, continued improvements in job growth, and that the city will remain vibrant with a very optimistic outlook. ECONOMIC AND FINANCIAL PLANNING As part of an overall strategic planning process, Salt Lake City developed several goals and objectives designed to keep the City on a firm financial footing. These goals and objectives include the following: Attract and retain small businesses by increasing the number of small business loans issued by at least five a year. Increase the number of businesses relocating to the City or expanding by at least 10 a year. Ensure that each Salt Lake City fund is financially secure by building and then maintaining a fund balance of at least 13% in the General Fund, by adding at least 1% of revenues per year to retained earnings in the Internal Service funds, by maintaining cash reserves of 25% of the operating expenses in the Airport Enterprise fund, and by maintaining cash reserves of 9-10% in the Utilities Enterprise funds. Maintain Aaa and AAA Moody’s and Fitch general obligation bond ratings by maintaining modest debt levels. For the City’s fiscal year 2022, total general fund revenue budget increased by 12.7%. The increase is primarily associated with anticipated sales tax revenue and infusions of funding from the federal government’s American Rescue Plan Act of 2021 (ARPA). INTERNAL CONTROL STRUCTURE The City utilizes a computerized financial accounting system, which includes a system of internal accounting controls. These controls are designed to provide reasonable assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the evaluation of costs and benefits requires estimates and judgments by management. The City adheres to the above framework for internal controls. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Salt Lake City Corporation for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. The City has now received this or an equivalent award for close to 30 years. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, the contents 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. We believe our current report continues to conform to Certificate of Achievement Program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the staff of the Department of Finance. We appreciate Eide Bailly, LLP, Certified Public Accountants, for the assistance and guidance they have given us. We also thank the members of the City Council x and the Mayor for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Sincerely, Mary Beth Thompson Chief Financial Officer xi xii xiii Financial Section 1 Independent Auditor’s Report The Honorable Mayor and Members of the City Council Salt Lake City Corporation Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of Salt Lake City Corporation (the City), as of and for the year ended June 30, 2021, 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 an opinion 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. 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, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, 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. 2 www.eidebailly.com 5 Triad Center, Ste. 600 | Salt Lake City, UT 84180-1106 | T 801.532.2200 | F 801.532.7944 | EOE Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedule – General Fund, Schedule of Proportionate Share of the Net Pension Liability, Schedule of Contribution – Last Ten Fiscal Years, Schedule of Changes in Net Pension Liability –Last Ten Fiscal Years and Schedule of Changes in Total OPEB Liability – Library – Last Ten Fiscal Years, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a 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. 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 section, combining statements and individual fund statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining statements and individual funds statements and schedules, including the budgetary comparison schedules, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements and individual funds statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have 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 them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2021 on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the City’s 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. Salt Lake City, Utah December 23, 2021 3 Salt Lake City Corporation's (the "City") management presents to the readers of its financial statements this narrative information. It contains an overview and analysis of the financial position and results of operations as of and for the year ended June 30, 2021. As management of the City, we encourage readers to consider information contained in this discussion along with the transmittal letter on page v. FINANCIAL HIGHLIGHTS The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the end of the current fiscal year by $3,345,947,148 (net position). Of this amount, $170,099,162 is unrestricted net position. Net position increased by $150,240,089. This included an increase in net position of $89,750,652 in the governmental activities and an increase of $60,489,437 in the business-type activities. The City's governmental funds reported combined ending fund balance of $252,777,890, an increase of $54,281,129 compared to the prior years' ending amount. Of the combined total fund balance, $139,123,593 is available for spending at the discretion of the City (unassigned and assigned). The unassigned fund balance of the General Fund at June 30, 2021, which totaled $101,934,113, is 30 percent of the General Fund total revenues for the year and 73 percent of governmental assigned and unassigned fund balance. The General Fund has $2,212,414 of non-spendable fund balance. The City issued new bonded debt in fiscal year 2021. The City also entered into a new debt contract with Key Bank. See Note 6. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis serves as an introduction to the City's basic financial statements: (1) Government-wide financial statements, (2) Fund financial statements and (3) Notes to the financial statements. This report also contains information in addition to the basic financial statements that will help the reader to gain a more in-depth understanding of the City. Government-wide financial statements give readers a broad overview of the entire City's financial position and changes in financial position, similar to consolidated financial statements in a private sector business. These statements consist of the Statement of Net position and the Statement of Activities. The Statement of Net Position shows the City's entire assets, deferred outflows of resources, liabilities and deferred inflows of resources with the difference shown as net position. Increases or decreases over time in net position gives an indicator as to whether the financial condition of the City is improving or declining. The Statement of Activities shows the changes to net position that occurred during the most recent fiscal year. These changes are recorded on an accrual basis when the underlying event that causes SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 4 the change occurs, regardless of when the cash transaction takes place. One example is the next debt interest payment when the fiscal year ends in between interest payments. The Statement of Changes in Net Position shows an additional interest expense for the time period between the last interest payment and the end of the fiscal year. Both of the government-wide financial statements distinguish between activities that are largely supported by taxes and intergovernmental revenues (governmental activities) and those whose operations are entirely or largely financed by user charges and fees (business type-activities). The governmental activities for the City include general governmental (Council, Mayor, Attorney, Finance and Non-departmental); public safety (Police, Fire and Central Dispatch); streets and recreation (Public Services); and other development (Community & Neighborhoods and Economic Development). The business-type activities include water, sewer, stormwater, street lighting, airport, housing, refuse collection, golf and redevelopment. The government-wide financial statements include not only the City itself (the primary government), but also those of the legally separate Salt Lake City Library (Library) and the Utah Performing Arts Center Agency (UPACA). These two entities (both component units) are financially accountable to the City and are presented separately from the primary government itself. Two other entities, the Redevelopment Agency of Salt Lake City (RDA) and the Local Building Authority (LBA) are also legally separate from the City, but for all practical purposes function as a part of the City and are therefore blended as an integral part of the primary government. The government-wide financial statements are found immediately following this discussion and analysis. FUND FINANCIAL STATEMENTS A fund is a set of closely related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes. The City, like other state and local governments, uses fund accounting to demonstrate compliance with finance-related legal requirements. All of the City's funds can be categorized into one of three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds account for essentially the same activities as the governmental activities in the government-wide financial statements, but with a narrower focus. Governmental funds concentrate on near-term inflows and outflows of financial resources and the balances of spendable resources available to the government at the end of the fiscal year. This information can be useful in evaluating the government’s short term financing requirements. SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 5 Comparing similar information presented in the government-wide statements for the governmental activities with that presented in governmental funds statements can provide useful information because of the different focus of the two approaches. With the long-term focus of the government-wide statements, a reader may be able to better understand the long-term effects of the near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balance show reconciliation between the governmental funds statements to the governmental activities in the government-wide statements to aid in the comparison. The City uses thirteen different individual governmental funds. Of this number, information is shown separately for the General, Capital Projects and Other Improvement Funds, all of which are deemed major funds. Information from the other ten funds is presented in a single combined column. Individual presentations for these non-major funds are contained in combining information shown after the notes to the financial statements as listed in the table of contents. The City adopts an annual appropriated budget for all its governmental funds. Budgetary comparison schedules have been provided to demonstrate compliance with these budgets. Within the Proprietary funds are two types that the City utilizes; enterprise and internal service funds. Enterprise funds report the same functions as the business-type activities in the government-wide financial statements. The Enterprise funds maintained by the City are: the water, sewer, stormwater and street lighting utilities; the Salt Lake City International Airport (Airport); housing and business loans, refuse collection, golf, and the RDA. Internal service funds are used as an accounting device to accumulate and allocate costs among the City's various governmental and enterprise activities. The City uses internal service funds to account for its vehicle fleet, information technology, risk management and employee benefits, tort liability, and the LBA. Because all of these activities support primarily governmental rather than business-type activities, they have been included within the governmental activities column of the government-wide financial statements. Proprietary funds present the same information as in the government-wide statements, except in more detail. The fund statements for proprietary funds provide separate information for the Department of Airports, Water Utility, Sewer Utility, Stormwater Utility, and the Redevelopment Agency, all of which are considered to be major funds of the City. Individual presentations for the remaining enterprise funds are contained in the combining information elsewhere in this report. All internal service funds are shown in one single column in the proprietary fund financial statements. Individual fund information can be found in the combining information elsewhere in this report. The City also adopts annual appropriated budgets for all of its proprietary funds. As with the governmental funds, budgetary comparison statements are included to show compliance with these budgets. The basic proprietary fund financial statements can be found as listed in the table of contents. Fiduciary funds are used to account for resources held by the City for the benefit of entities outside of the government. Since these resources cannot be used to support the operations of the City, they are not shown in the government-wide financial statements. The accounting for fiduciary funds is similar to that of proprietary funds. The fiduciary fund financial statements can be found as listed in the table of contents. SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 6 Notes to the financial statements contain additional information important to a complete understanding of the information contained in the government-wide and fund financial statements. Notes to the financial statements are located after the statements for major funds as listed in the table of contents. GOVERNMENT-WIDE FINANCIAL ANALYSIS Salt Lake City Corporation's Net Position (in thousands) Governmental Activities Business-type Activities Total 2021 2020 2021 2020 2021 2020 Current and other assets $ 497,552 $ 394,880 $ 529,868 $ 690,883 $ 1,027,420 $ 1,085,763 Capital Assets 838,738 839,857 4,489,074 3,977,243 5,327,812 4,817,100 Non-current assets 37,309 17,668 495,674 402,406 532,983 420,074 Total assets 1,373,599 1,252,405 5,514,616 5,070,531 6,888,215 6,322,937 Deferred outflow of resources 34,751 34,991 14,026 14,793 48,777 49,784 Current and other liabilities 63,621 68,321 493,186 258,428 556,807 326,749 Long-term liabilities 390,459 380,661 2,443,223 2,305,509 2,833,681 2,686,170 Total liabilities 454,080 448,982 2,936,409 2,563,937 3,390,489 3,012,919 Deferred inflow of resources 174,728 148,622 25,828 15,472 200,556 164,094 Net position: Invested in capital assets 579,048 563,203 2,186,042 2,048,313 2,765,090 2,611,516 Restricted 102,077 83,296 308,680 350,691 410,758 433,987 Unrestricted 98,416 43,293 71,683 106,912 170,099 150,205 Total net position $ 779,542 $ 689,792 $ 2,566,405 $ 2,505,916 $ 3,345,947 $ 3,195,707 Net Position percentage - Current Fiscal Year Invested in capital assets 70% Restricted 10%Unrestricted 20% The largest component of the City’s net position is its investment in capital assets. 70 percent of total net position represents the City’s investment in land and land improvements, buildings, machinery and equipment, roads, streetlights, signals and bridges, less any related outstanding debt that was used to acquire these assets. The City uses these capital assets to provide services to citizens who live, work, pass through or benefit in other ways from the City. By their nature, these assets are not available for future spending. Further, even though these capital assets are reported net of any related debt, resources needed to repay the debt must come from other sources, as the assets themselves cannot be used to satisfy the related obligations. Of the remainder of net position, 10 percent, is assets that are subject to external restrictions on how they may be expended (debt reserve funds or unexpended debt proceeds). SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 7 Salt Lake City Corporation's Changes in Net Position (in thousands) Governmental Activities Business-type Activities Total 2021 2020 2021 2020 2021 2020 Revenues Program revenues Charges for Services $ 84,375 $ 83,075 $ 376,031 $ 380,142 $ 460,406 $ 463,217 Operating grants and contributions 31,019 8,079 — — 31,019 8,079 Capital grants and contributions 19,273 24,174 140,062 73,193 159,335 97,367 General revenues Property taxes 130,833 129,951 — — 130,833 129,951 Other taxes 160,135 147,641 — — 160,135 147,641 Investment Earnings 1,626 3,991 7,651 24,838 9,277 28,829 Total revenues 427,261 396,911 523,744 478,173 951,005 875,084 Expenses General Government 14,976 9,477 — — 14,976 9,477 Council 3,646 4,116 — — 3,646 4,116 Mayor 4,617 4,001 — — 4,617 4,001 City Attorney 7,290 10,149 — — 7,290 10,149 Finance 9,617 10,523 — — 9,617 10,523 Fire 40,757 44,831 — — 40,757 44,831 Combined Emergency Services 6,360 8,293 — — 6,360 8,293 Human Resources 2,917 3,188 — — 2,917 3,188 Justice Courts 3,861 4,538 — — 3,861 4,538 Police 80,595 87,414 — — 80,595 87,414 Economic Development 2,286 2,292 — — 2,286 2,292 Community and Neighborhoods 59,715 43,507 — — 59,715 43,507 Public Services 62,996 65,007 — — 62,996 65,007 Transportation 367 389 — 367 389 Infrastructure depreciation 10,098 9,769 — — 10,098 9,769 Interest on long-term debt 4,938 10,540 — — 4,938 10,540 Department of Airports — — 310,817 252,664 310,817 252,664 Water — — 72,582 68,071 72,582 68,071 Sewer — — 31,851 27,533 31,851 27,533 Storm Water Utility — — 9,311 7,935 9,311 7,935 Street lighting Utility — — 4,394 3,603 4,394 3,603 Refuse Collection — — 14,631 14,303 14,631 14,303 Golf — — 8,103 7,971 8,103 7,971 Housing and Loan — — 1,177 3,423 1,177 3,423 Redevelopment Agency — — 32,863 31,124 32,863 31,124 Total expenses 315,035 3 1 318,031 485,730 416,627 800,763 734,661 Change in net position before transfers 112,225 78,880 38,014 61,546 150,240 140,426 Transfers (22,475) (30,078) 22,475 30,078 — — Change in net position 89,751 48,802 60,489 91,624 150,240 140,426 Net position, beginning 689,791 640,990 2,505,916 2,414,292 3,195,707 3,055,282 Net position, ending $ 779,542 $ 689,792 $ 2,566,405 $ 2,505,917 $ 3,345,947 $ 3,195,709 SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 8 Governmental Activities net position increased by $89,750,652 for the year ended June 30, 2021, which is 60 percent of the total increase in net position for the City as a whole. Property and sales tax revenue increased due to a strong economic recovery coming out of the pandemic. Several Congressional Legislative responses (like the CARES Act) gave substantial support to the local economy. The multitude of fiscal support gave sustained growth that drove the momentum through all of 2021. Expenses decreased by $(2,996,343). Most of this decrease is due to decreased Police costs for Public Safety. In fiscal 2020 the City experienced protests and riots in response to national political issues which did not repeat in 2021. The Capital Improvement fund also benefited from the sales tax increase with an increase in spending on roads and other transportation projects. Governmental Activities - Expenses and Program Revenues (in Millions) Expenses Program Revenues Fire Police Community Develop. Public Svs.All Others 0 10 20 30 40 50 60 70 80 90 Governmental Revenues by Source Charges for Services 23.2% Operating grants and contributions 2.8% Capital grants and contributions 3.4% Property taxes 35.1% Other taxes 35.1% Other 0.4% SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 9 Business-type activities net position increased $60,489,437 or 40 percent of the total increase to net position. A healthy economy benefited all entities increasing revenue and expenditures. Airport, Water and Sewer Utilities continue to invest heavily in capital assets. During FY 2021, the Airport completed and opened Phase I of the TRP and NCP. This resulted in higher square footage for terminal rents and the debt service on the Airport’s revenue bonds being included in terminal rents. These factors caused the terminal rent rate to increase considerably. The Water Utility is proactive in replacing the water distribution infrastructure and anticipates improvement of major treatment plant components in fiscal year 2022 . The Sewer Utility has planned major projects for the sewer collection system that will accommodate the current and planned development in the northwest area of the City. A new water reclamation facility is being constructed on the existing plant site that will cost in excess of $711 million and is anticipated to be in operation by 2024. Business-type Activities - Expense and Program Revenues (in Millions) Expenses Program Revenues Airport Water Sewer Storm Water Redevelopment All Others 0 50 100 150 200 250 300 Business Type Revenues by Source Charges for Services: 81.8% Capital grants and contributions: 9.1% Other: 9.1% FINANCIAL ANALYSIS OF CITY FUNDS SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 10 The City’s governmental funds provide information on the short-term resource inflows and outflows and account balances at the end of the fiscal year. The total fund balance is a measure of total available resources and the unassigned portion of this total fund balance is a measure of the available spendable resources at June 30, 2021. For the period ended June 30, 2021, the City’s governmental funds reported a combined fund balance amount of $252,777,890, an increase of $54,281,129 compared to the prior fiscal year. Of the total balance at year-end, $101,934,113 is Unassigned and $37,189,480 is Assigned. Most of the Assigned fund balance is assigned to roads, parks, other capital improvements, grant activities, encumbrances and debt service. The Committed fund balance is $3,666,892. The majority of the restricted funds of $107,705,639 are for capital projects. The Nonspendable funds of $2,281,766 are receivables and prepaid items. The General Fund is the main operating fund for the City. At June 30, 2021, the General Fund’s unassigned fund balance was $101,934,113 while total fund balance equaled $116,285,970. A useful measure of liquidity is to compare the unassigned fund balance and the total fund balance to expenditures (including transfers out) for the year. Unassigned fund balance was 32 percent of total expenditures and transfers while total fund balance equaled 37 percent. The fund balance for the City’s General Fund increased by $27,043,794. There were increases in both property tax and sales tax. Higher property values resulted in higher property taxes and the 2020 sales tax change resulted in higher sales tax in 2021. There was also a rebound in licensing and permits as economic activity begins to normalize. There were revenue decreases in innkeepers tax and airport parking tax that were impacted by travel restrictions due to the COVID-19 pandemic. Charges for services revenue decreased in the areas of field reservations and program fees, also due to the COVID-19 pandemic restrictions. The Capital Projects Fund has a total fund balance of $113,390,029 at June 30, 2021, all of which is either restricted or assigned to unfinished projects. The largest restrictions are for road reconstruction and transportation projects. The City has received significant general obligation funding or roads several grants for transportation projects. A smaller portion is restricted for parks and trails. Council approved new funding for large maintenance projects. Increase revenue means is due to the funding of new projects through new grants, impact fees and bonding. The net increase in fund balance for the year amounted to $25,103,080. The Other Improvements Fund has a total fund balance of $4,943,230 at June 30, 2021, all of which is restricted. The Other Improvements Fund is a debt service fund established to provide for all debt payments. The fund balance decreased $308,868 for the year. Additional information about debt can be found in Note 6. The City issued GO 2020 series bonds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the City’s Major proprietary funds totaled $(109,535,667) for the Department of Airports, $4,776,457 for the Water Fund, $18,320,114 for the Sewer Fund, $7,561,451 for Stormwater Fund and $91,065,333 for the Redevelopment Agency Fund. Discussions about the finances of these five funds are addressed in the City’s business-type activities. SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 11 GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original and final amended budgets amounted to a total increase in appropriations of $27,575,009. By department, the changes are: •$369,679 increase for City Council •$51,895 increase for Mayor •$622,066 increase for City Attorney •$723,018 increase for Finance •$(1,788,179) decrease for Fire •$107,625 increase for Human Resources •$(431,021) decrease for Combined Emergency Services •$4,672,174 increase for Police •$1,207,544 increase for Community & Neighborhoods •$73,221 increase in Economic Development •$52,675 increase in Justice Court •$3,712,562 increase for Public Services •$18,201,750 increase for Nondepartmental (including transfers out) Increases to all budgets included $9,899,196 for prior year encumbrances. Larger budget increases included budget for non-departmental for new boilers, wind storm damage and additional CARES Act funding, $8,700,000. There were increased budgets for Police for COVID and protests, $1,450,000. Public services increased for the Youth and Family program, $1,600,000. In the General Fund there was an increase for employee bonuses, $3,000,000. CAPITAL ASSET AND DEBT ADMINISTRATION The City’s investment in capital assets for its governmental and business type activities had a combined totaled of $5,327,812,262 (net of $1,683,291,044 accumulated depreciation) at June 30, 2021. Types of assets included in this category are land, land improvements, buildings, machinery and equipment, park and other recreation facilities, roads (including curb and gutter), street lights, traffic signals, parking facilities, water and waste water distribution and collection systems, airport runways and taxiways and bridges. The City’s investment in capital assets equals 159 percent of total net position. In comparing capital assets to net position, the percentages for Governmental activities and Business-type activities were 108 percent and 186 percent, respectively. SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 12 Major capital asset activities that occurred during the past fiscal year for Governmental Activities include the following: The City added $18,562,217 for city roads and curbs and $391,375 in signals. $1,000,000 was spent on the Rocky Mountain Power Substation Land Site. Other new capitalization included various parks, other improvements and equipment. The Airport added approximately $489,310,000 in work in process costs for the new terminals construction and the Utilities added $141,709,426 in water, storm and sewer infrastructure. Salt Lake City Corporation's Capital Assets Governmental Activities Business-Type Activities Total Government 2021 2020 2021 2020 2021 2020 Land and water rights $ 214,979,203 $ 206,641,702 $ 207,375,733 $ 195,250,319 $ 422,354,936 $ 401,892,021 Infrastructure 348,923,890 328,205,613 — — 348,923,890 328,205,613 Buildings 422,133,087 418,267,960 2,223,491,514 699,693,180 2,645,624,601 1,117,961,140 Improvements other than buildings 116,303,900 112,998,914 2,274,854,166 1,653,771,082 2,391,158,066 1,766,769,996 Machinery and equipment 147,970,756 134,125,031 442,953,894 253,736,300 590,924,650 387,861,331 Construction in progress 15,885,212 7,925,802 596,231,951 1,795,132,283 612,117,163 1,803,058,085 Accumulated depreciation (427,457,704) (374,321,872) (1,255,833,340) (1,436,470,308) (1,683,291,044) (1,810,792,180) Net book value $ 838,738,344 $ 833,843,150 $ 4,489,073,918 $ 3,161,112,856 $ 5,327,812,262 $ 3,994,956,006 At June 30, 2021, the City’s bonded debt amounted to $2,369,730,000. The portion that is backed by the full faith and credit of the City amounted to $106,525,000. All other bonded debt is known as revenue bonds and is secured by specific revenue sources. General obligation debt of the City is limited by statute to 8 percent of the reasonable fair cash value of property. The debt limit for FY2021 calculates to approximately $3.7 billion is well in excess of the City’s outstanding general obligation debt. Additional information on the City’s capital assets and debt can be found in Notes 5 and 6, respectively. Salt Lake City Corporation's Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Total 2021 2020 2021 2020 2021 2020 General obligation bonds $ 106,525,000 $ 102,045,000 $ — $ — $ 106,525,000 $ 113,420,000 Special assessment debt with governmental commitment — — — — 190,000 Revenue bonds 105,310,000 115,845,000 2,157,895,000 2,014,790,000 2,263,205,000 2,133,825,000 Total $ 211,835,000 $ 217,890,000 $ 2,157,895,000 $ 2,014,790,000 $ 2,369,730,000 $ 2,247,435,000 SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 13 Economic factors and next year’s budgets and rates During the just completed fiscal year, fund balance in the General Fund increased by $27,043,794. This was mostly due to an increase in the City's property tax and sales tax revenue. As a result of COVID-19 revenues for fiscal year 2021 were estimated conservatively with projected decreases. Expenditures were adjusted accordingly. Sales tax has exceeded projections but smaller revenues such as event fees and parking have decreased as expected. The City has received approximately $43 million American Rescue Plan Act (ARPA) funding from the Department of Treasury. This amount is half of the expected funding. The City received approximately $8 million for rental assistance in fiscal year 2021. Due to the timing of the grant funding most ARPA funding will be budgeted and spent in fiscal year 2022. Requests for information This financial report is designed to give its readers a general overview of the City’s finances. Questions regarding any information contained in this report or requests for additional financial information should be addressed to the Department of Finance, Chief Financial Officer, 451 South State Street, Room 245, P.O Box 145451, Salt Lake City, Utah 84114-5451. SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2021 14 This page intentionally left blank. 15 Basic Financial Statements 16 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION June 30, 2021 Primary Government Governmental Activities Business-type Activities Total Component Unit Library Component Unit Utah Performing Arts Center Agency ASSETS Current assets: Cash, cash equivalents, and investments (Note 2) Unrestricted $ 297,001,895 $ 321,793,676 $ 618,795,571 $ 19,241,882 $ 5,536,136 Restricted (Note 2 & 4) 39,665,829 68,389,733 108,055,562 — — Investments (Note 2) — 49,093,054 49,093,054 — — Receivables: Property, franchise and excise taxes 142,366,046 — 142,366,046 19,580,624 — Assessments, including $1,997,733 of delinquent assessments 1,599,173 — 1,599,173 — — Loans and other receivables 196,292 10,817,335 11,013,627 193,745 — Accounts, less allowance for doubtful accounts of $4,312,772 — 77,379,773 77,379,773 — 699,775 Due from other governments 2,001,577 — 2,001,577 — — Other, principally accrued interest receivable 363,028 3,877,489 4,240,517 — — Prepaids 2,752,662 671,273 3,423,935 269,542 200,356 Inventories 869,627 8,581,938 9,451,565 — — Internal balances 10,736,114 (10,736,114) — — — Total current assets 497,552,243 529,868,157 1,027,420,400 39,285,793 6,436,267 Noncurrent assets: Restricted cash and cash equivalents (Note 2) — 252,158,959 252,158,959 — — Restricted investments — 69,669,193 69,669,193 — — Investments — 921,359 921,359 — — Property and equipment, at cost (Note 5) Land and water rights 214,979,203 207,375,733 422,354,936 126,107 — Infrastructure 348,923,890 — 348,923,890 — — Buildings 422,133,087 2,223,491,514 2,645,624,601 13,982,997 130,608,164 Improvements other than buildings 116,303,900 2,274,854,166 2,391,158,066 1,640,896 202,769 Machinery and equipment 147,970,756 442,953,894 590,924,650 16,545,672 620,128 Construction in progress 15,885,212 596,231,951 612,117,163 65,087 — Accumulated depreciation (427,457,704) (1,255,833,340) (1,683,291,044) (18,336,468) (11,128,200) Net property and equipment 838,738,344 4,489,073,918 5,327,812,262 14,024,291 120,302,861 Loans and other long-term receivables — 104,145,003 104,145,003 — — Net pension asset 36,379,901 1,028,238 37,408,139 — — Land and buildings held for resale — 42,005,714 42,005,714 — — Investment in joint venture (Note 16) 929,006 20,949,773 21,878,779 — — Other — 4,795,365 4,795,365 — — Total noncurrent assets 876,047,251 4,984,747,522 5,860,794,773 14,024,291 120,302,861 TOTAL ASSETS 1,373,599,494 5,514,615,679 6,888,215,173 53,310,084 126,739,128 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow on the refunding of debt 6,439,819 5,396,526 11,836,345 — — Deferred outflows - Pension 28,310,693 8,629,787 36,940,480 1,253,533 — Total deferred outflows 34,750,512 14,026,313 48,776,825 1,253,533 — Total assets and deferred outflows of resources $ 1,408,350,006 $ 5,528,641,992 $ 6,936,991,998 $ 54,563,617 $ 126,739,128 The accompanying notes are an integral part of this statement 17 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION June 30, 2021 Primary Government Governmental Activities Business-type Activities Total Component Unit Library Component Unit Utah Performing Arts Center Agency LIABILITIES Current liabilities: Accounts payable $ 18,596,608 $ 105,893,409 $ 124,490,017 $ 1,692,416 $ 32,668 Accrued liabilities 16,098,048 50,507,434 66,605,482 — 3,110,621 Current portion of long-term compensated absences 3,132,026 2,643,551 5,775,577 — — Current portion of long-term debt (Note 6), payable from unrestricted assets 19,592,573 16,978,979 36,571,552 — — Accrued interest, payable from unrestricted assets — 47,018,403 47,018,403 — — Other liabilities, payable from restricted assets 766,878 — 766,878 — — Current deposits and advance rentals 5,434,989 2,544,421 7,979,410 1,951 — Current portion of line of credit — 267,600,000 267,600,000 — — Total current liabilities 63,621,122 493,186,197 556,807,319 1,694,367 3,143,289 Noncurrent liabilities: Deposits, advance rentals and long term accruals — 675,007 675,007 — 1,690,338 Long-term compensated absences liability (Note 6) 20,709,179 8,508,300 29,217,479 872,900 — Pollution remediation liability — 123,669 123,669 — — Other liabilities payable from restricted assets — 8,675,469 8,675,469 — — Other post employment benefits (Note 14) — — — 242,815 — Estimated claims payable (Note 11) 12,927,192 — 12,927,192 — — Revenues collected in advance 46,428,092 40,274,673 86,702,765 — — Bonds payable (Note 6) 240,097,483 2,382,624,587 2,622,722,070 — — Net pension liability (Note 12) 63,037,523 2,341,059 65,378,582 298,471 — Notes payable (Note 6) 7,259,226 — 7,259,226 — — Total noncurrent liabilities 390,458,695 2,443,222,764 2,833,681,459 1,414,186 1,690,338 TOTAL LIABILITIES 454,079,817 2,936,408,961 3,390,488,778 3,108,553 4,833,627 DEFFERRED INFLOWS OF RESOURCES Deferred property tax revenues 106,291,546 — 106,291,546 22,145,751 — Deferred inflows - revenue collected in advance 5,000 7,268,849 7,273,849 — — Deferred inflows - pension 68,431,541 18,559,135 86,990,676 2,132,050 — Total deferred inflows of resources 174,728,087 25,827,984 200,556,071 24,277,801 — NET POSITION Net investment in capital assets 579,048,288 2,186,041,911 2,765,090,199 13,793,705 120,302,861 Restricted for: Debt service 19,592,573 180,507,297 200,099,870 — — Capital projects 82,484,787 128,173,130 210,657,917 247,758 — Unrestricted 98,416,454 71,682,708 170,099,162 13,135,800 1,602,640 Total net position 779,542,102 2,566,405,046 3,345,947,148 27,177,263 121,905,501 Total liabilities and net position $ 1,408,350,006 $ 5,528,641,992 $ 6,936,991,998 $ 54,563,617 $ 126,739,128 The accompanying notes are an integral part of this statement 18 SALT LAKE CITY CORPORATION STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary government: Governmental activities: General Government $ 14,975,736 $ 29,163,911 $ 2,367,853 $ — City Council 3,646,286 418,216 — — Mayor 4,616,940 276,506 — — City Attorney 7,289,791 895,937 — — Finance 9,616,665 19,502,827 17,272,025 538,369 Justice Court 3,861,296 1,795,083 4,500 — Human Resources 2,916,894 1,035,600 — — Fire 40,757,260 7,162,620 15,500 631,500 Combined Emergency Services 6,360,194 478,243 — Police 80,594,963 10,580,357 1,496,792 226,969 Community and Neighborhoods 59,714,903 2,132,641 8,199,118 2,307,486 Economic Development 2,285,966 2,107,395 1,166,949 — Public Services 62,995,531 8,825,391 496,364 15,568,985 Transportation 366,807 — — — Unallocated infrastructure depreciation 10,097,848 — — — Interest on long-term debt 4,937,701 — — — Total governmental activities 315,034,781 84,374,727 31,019,101 19,273,309 Business-type activities: Airport Authority 310,816,861 197,347,198 — 94,930,936 Water 72,581,897 87,002,701 — 7,515,602 Sewer 31,851,419 51,485,048 — 3,746,253 Storm Water Utility 9,311,064 10,763,362 — 2,410,801 Street Lighting 4,394,192 4,231,765 — — Refuse Collection 14,631,218 11,686,281 — — Golf 8,102,733 10,034,685 — — Housing and Loan 1,177,221 1,091,243 — — Redevelopment Agency 32,862,523 2,389,137 — 31,457,931 Total business-type activities 485,729,128 376,031,420 — 140,061,523 Total primary government $ 800,763,909 $ 460,406,147 $ 31,019,101 $ 159,334,832 Component unit Library $ 21,763,057 $ 1,683,678 $ 107,137 $ — Component unit UPACA $ 6,458,182 $ 2,252,772 $ 836,211 $ 50,000 General revenues Taxes: Property Franchise taxes Sales tax Investment earnings Transfers Total general revenues and transfers Change in net position Net Position July 1, 2020 (UPACA Jan 1, 2020) Net Position June 30, 20201(UPACA Dec 31, 2020) The accompanying notes are an integral part of this statement 19 Net (Expense) Revenue and Changes in Net Position Primary Government Component Unit Library Component Unit UPACA Governmental Activities Business-type Activities Total $ 16,556,028 $ — $ 16,556,028 $ — $ — (3,228,070) — (3,228,070) — — (4,340,434) — (4,340,434) — — (6,393,854) — (6,393,854) — — 27,696,556 — 27,696,556 — — (2,061,713) — (2,061,713) — — (1,881,294) — (1,881,294) — — (32,947,640) — (32,947,640) — — (5,881,951) — (5,881,951) — — (68,290,845) — (68,290,845) — — (47,075,658) — (47,075,658) — — 988,378 — 988,378 — — (38,104,791) — (38,104,791) — — (366,807) — (366,807) — — (10,097,848) — (10,097,848) — — (4,937,701) — (4,937,701) — — (180,367,644) — (180,367,644) — — — (18,538,727) (18,538,727) — — — 21,936,406 21,936,406 — — — 23,379,882 23,379,882 — — — 3,863,099 3,863,099 — — — (162,427) (162,427) — — — (2,944,937) (2,944,937) — — — 1,931,952 1,931,952 — — — (85,978) (85,978) — — — 984,545 984,545 — — — 30,363,815 30,363,815 — — $ (180,367,644) $ 30,363,815 $ (150,003,829) $ — $ — $ (19,972,242) $ (3,319,199) $ 130,832,830 $ — $ 130,832,830 $ 22,495,168 $ — 23,952,168 — 23,952,168 — — 136,182,444 — 136,182,444 — — 1,625,624 7,650,852 9,276,476 — 84,744 (22,474,770) 22,474,770 — — — 270,118,296 30,125,622 300,243,918 22,495,168 84,744 89,750,652 60,489,437 150,240,089 2,522,926 (3,234,455) 689,791,447 2,505,915,609 3,195,707,056 24,654,337 125,139,956 $ 779,542,102 2,566,405,046 3,345,947,148 $ 27,177,263 $ 121,905,501 The accompanying notes are an integral part of this statement 20 Major Governmental Fund Financial Statements General Fund - The General Fund is the principal fund of the City and is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund. The General Fund accounts for the normal activities of the City, (i.e. police, fire, public works, parks, community and economic development, general government, etc.). These activities are funded principally by property taxes, sales and use taxes, franchise taxes, licenses and permits. Capital Projects Fund - The City's Capital Projects Fund is used to account for resources designated to construct general capital assets which, by their nature, may require more than one budgetary cycle for completion. Project budgets are adopted for the Capital Projects Fund. Other Improvements Fund - This fund is used to account for the cost of servicing the debt created by financing projects other than Special Improvements. 21 SALT LAKE CITY CORPORATION BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2021 General Capital Projects Other Improvements Nonmajor Governmental Funds Total Governmental Funds ASSETS Cash, cash equivalents and investments (Note 2) Unrestricted $ 102,997,255 $ 84,491,079 $ 1,018,123 $ 69,047,330 $ 257,553,787 Restricted 1,445,291 34,161,649 3,929,707 — 39,536,647 Receivables: Property, franchise and excise taxes 136,947,857 — — 774,876 137,722,733 Accounts receivable 680,170 — — 409,738 1,089,908 Taxes receivable 4,643,313 — — — 4,643,313 Current portion of loans receivable 78,027 — — 118,265 196,292 Due from other governments — 10,879 — 1,990,698 2,001,577 Other, principally accrued interest 4,091 — — 358,937 363,028 Prepaids 2,212,414 — — 69,352 2,281,766 Total assets $ 249,008,418 $ 118,663,607 $ 4,947,830 $ 72,769,196 $ 445,389,051 LIABILITIES Accounts payable $ 5,313,254 $ 5,273,578 $ 4,600 $ 5,784,062 $ 16,375,494 Accrued liabilities 14,406,745 — — 196,567 14,603,312 Current deposits and advance rentals 4,005,053 — — 1,429,936 5,434,989 Current portion of long-term compensated absences 2,705,850 — — — 2,705,850 Revenues collected in advance — — — 46,428,092 46,428,092 Other liabilities payable from restricted assets — — — 766,878 766,878 Total liabilities 26,430,902 5,273,578 4,600 54,605,535 86,314,615 DEFERRED INFLOWS OF RESOURCES Receivables not meeting the available criterion 106,291,546 — — — 106,291,546 Unavailable grant revenue — — — 5,000 5,000 Total deferred inflows 106,291,546 — — 5,000 106,296,546 FUND BALANCES Non-spendable 2,212,414 — — 69,352 2,281,766 Restricted 12,139,443 82,484,787 4,943,230 8,138,179 107,705,639 Committed — — — 3,666,892 3,666,892 Assigned — 30,905,242 — 6,284,238 37,189,480 Unassigned 101,934,113 — — — 101,934,113 Total fund balances 116,285,970 113,390,029 4,943,230 18,158,661 252,777,890 Total liabilities, deferred inflow of resources and fund balances $ 249,008,418 $ 118,663,607 $ 4,947,830 $ 72,769,196 $ 445,389,051 The accompanying notes are an integral part of this statement 22 SALT LAKE CITY CORPORATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENTS OF NET POSITION June 30, 2021 Total fund balances for governmental funds $ 252,777,890 Total net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: (see Note 5) Land 214,979,203 Infrastructure 348,923,890 Buildings 422,133,087 Improvements other than buildings 116,303,900 Equipment 147,970,756 Construction in progress 15,885,212 Less accumulated depreciation (427,457,704) Total capital assets 838,738,344 Other assets are reported for governmental activities as they are not considered collectible until after year end. These include other receivables that are long-term in nature and bond issue costs less amortization Accounts Receivable 509,265 Investment in joint venture 929,006 Pension asset 36,379,901 Deferred loss on defeasance 6,439,819 Deferred pension outflow 28,310,693 72,568,684 Internal services funds are used by the City to charge the costs of the fleet management system, data processing services, insurance for employee health, accident, long-term disability, unemployment and worker's compensation, general liability claims, and acquisition and lease to the City of purchased or constructed property. 40,917,813 Some of the internal service net income is allocable to business-type activities. These amounts are shown in the internal balances in the governmental activities statement. 10,736,114 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather as an expenditure when due. Obligation for compensated absence liabilities due within one year are included in the governmental fund statements in accrued liabilities. All liabilities -both current and long-term are reported in the statement of net position. (See Note 6) Accounts payable (2,221,114) Accrued liabilities (1,494,736) Obligation for compensated absence liabilities due after one year (20,709,179) Current portion of long-term debt (19,592,573) Current portion of obligation for compensated absence liabilities (426,176) Deferred pension inflow (68,431,541) Estimated claims liability (12,927,192) Bonds payable (240,097,483) Note payable and due to other funds (7,259,226) Net pension liability (63,037,523) Total liabilities (436,196,743) Total net position of governmental activities $ 779,542,102 The accompanying notes are an integral part of this statement 23 SALT LAKE CITY CORPORATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2021 General Capital Projects Other Improvements Nonmajor Governmental Funds Total Governmental Funds Revenues: General property taxes $ 113,495,125 $ — $ 17,337,705 $ — $ 130,832,830 Sales, use and excise taxes 122,654,953 — — 13,527,491 136,182,444 Franchise taxes 23,952,168 — — — 23,952,168 Licenses 11,418,021 — — — 11,418,021 Permits 25,004,393 11,226,305 — — 36,230,698 Fines and forfeitures 1,837,591 — — 196,951 2,034,542 Assessments — — — 2,382,919 2,382,919 Interest 1,141,861 429,681 21,218 87,241 1,680,001 Intergovernmental 4,781,753 7,170,889 4,488,730 26,753,543 43,194,915 Interfund service charges 20,971,348 — — — 20,971,348 Parking meter 1,915,888 — — — 1,915,888 Parking ticket 1,701,881 — — — 1,701,881 Rental and other income 816,715 12,000 — 41,603 870,318 Charges for services 4,026,186 — — 1,449,659 5,475,845 Contributions — — — 588,722 588,722 Miscellaneous 2,800,718 237,567 — 538,158 3,576,443 Total revenues 336,518,601 19,076,442 21,847,653 45,566,287 423,008,983 Expenditures: Current: City Council 3,910,937 — — — 3,910,937 Mayor 3,495,653 — — — 3,495,653 City Attorney 6,840,902 — — — 6,840,902 Finance 7,872,632 — — — 7,872,632 Fire 40,360,501 — — — 40,360,501 Combined Emergency Services 7,557,911 — — 139,270 7,697,181 Police 80,751,205 — — — 80,751,205 Community and Neighborhoods 23,616,595 — — 26,212,269 49,828,864 Economic Development 2,243,608 — — — 2,243,608 Justice Court 4,340,743 — — — 4,340,743 Human Resources 2,576,008 — — — 2,576,008 Public Services 44,240,773 — — 1,711,629 45,952,402 Transportation — — — 366,807 366,807 Arts Council — — — 1,699,285 1,699,285 Nondepartmental 37,572,779 — — — 37,572,779 Capital improvements — 32,643,280 — — 32,643,280 Debt service: Principal — — 24,804,145 — 24,804,145 Interest and other fiscal charges — — 7,858,386 1,043 7,859,429 Total expenditures 265,380,247 32,643,280 32,662,531 30,130,303 360,816,361 Revenues over (under) expenditures 71,138,354 (13,566,838) (10,814,878) 15,435,984 62,192,622 Other financing sources (uses): New bonds issued — 20,454,886 — — 20,454,886 Proceeds from sale of property 38,996 404,018 — 11,504 454,518 Transfers in 8,447,676 20,528,273 11,502,169 1,000,000 41,478,118 Transfers out (52,581,232) (2,717,259) (996,159) (14,004,365) (70,299,015) Total other financing sources (uses) (44,094,560) 38,669,918 10,506,010 (12,992,861) (7,911,493) Net change in fund balances 27,043,794 25,103,080 (308,868) 2,443,123 54,281,129 Fund Balance July 1, 2020 89,242,176 88,286,949 5,252,098 15,715,539 198,496,762 Fund Balance June 30, 2021 $ 116,285,970 $ 113,390,029 $ 4,943,230 $ 18,158,661 $ 252,777,890 The accompanying notes are an integral part of this statement 24 SALT LAKE CITY CORPORATION RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2021 Net change in fund balances - total governmental funds $ 54,281,129 The change in net position reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay ($32,643,280) plus Work in Process reclassifications ($4,632,115) included as additions exceeded depreciation expense and unallocated depreciation ($36,178,475). (See Note 5.) 1,096,920 Repayment of principal as an expenditure in the governmental funds but reduces the liability in the statement of net position. (See Note 6.) 24,804,145 In governmental funds the proceeds from the bonds and notes are considered a source of financing, but in the statement of net position, the obligation is reported as a liability. (see Note 6.) (20,454,886) Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis,expenses and liabilities are reported regardless of when financial resources are available. In addition, interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. This adjustment contains the following: Pension benefit 29,259,142 Pension expense (2,225,433) Other financing 6,320,157 Decrease in investment in joint venture (76,453) Esimated claim payable (1,275,000) Compensated absences and other post employment benefits (785,790) Accrued interest 2,943,804 34,160,427 Internal services funds are used by the City to charge the costs of the fleet management system, data processing services, insurance for employee health, accident, long-term disability, unemployment and worker's compensation, general liability claims, acquisition and lease to the City of purchased or constructed property and equipment and photocopying and printing services. The net revenue of internal service funds is allocated between governmental activities and business-type activities. Internal service fund net loss of ($5,051,117) offset by an addition to business-type activities of $914,034. (4,137,083) Change in net position of governmental activities.$ 89,750,652 The accompanying notes are an integral part of this statement 25 Major Proprietary Fund Financial Statements Department of Airports - This fund is used to account for the activities related to the operation of City airports. Water Utility Fund - This fund is used to account for the activities related to providing water service to the residents of the City and certain residents of Salt Lake County. Sewer Utility Fund - This fund is used to account for the activities relating to providing sewer service to the residents of the City. Stormwater Utility - This fund is used to account for the activities associated with the collection and disposition of stormwater runoff. Redevelopment Agency Fund - This fund is used to account for urban redevelopment activities such as acquisition of land sites and sale of such land for development, and loans provided for improvements in existing housing and the repayment of loans and related interest. 26 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2021 Business-type Activities - Enterprise Funds Department of Airports Water Utility Sewer Utility Stormwater Utility ASSETS Current assets: Cash, cash equivalents, and investments: Unrestricted $ 181,080,245 $ 70,444 $ 32,338,362 $ 7,479,429 Restricted 12,270,584 — — — Investments 34,233,602 14,859,452 — — Receivables: Accounts, less allowance for doubtful accounts of $0, $369,199, $109,753, $11,228, $0, $3,822,592 respectively, totaling $4,312,772. 57,966,596 12,061,558 4,963,160 1,131,481 Current portion of loans receivable 7,347,362 — — — Other 2,721,321 365,574 68,353 2,463 Prepaids — 338,730 134,364 41,707 Inventory of supplies 3,419,424 4,211,396 601,586 — Total current assets 299,039,134 31,907,154 38,105,825 8,655,080 Noncurrent assets: Restricted cash, cash equivalents 99,442,096 89,457,184 48,553,738 14,705,941 Restricted Investments 69,669,193 — — — Investments 921,359 — — — Property and equipment, at cost: Land and water rights 111,695,915 57,810,540 7,545,739 3,185,611 Buildings 2,008,524,537 70,482,153 128,692,190 10,108,791 Improvements other than buildings 1,437,369,792 391,107,646 208,771,057 152,103,288 Machinery and equipment 341,457,698 33,332,601 36,753,648 4,648,796 Construction in progress 344,426,435 63,061,083 166,188,484 9,207,313 Accumulated depreciation (813,994,981) (171,339,845) (125,573,942) (64,090,653) Net property and equipment 3,429,479,396 444,454,178 422,377,176 115,163,146 Loans and other long-term receivables, net of current portion 31,895,282 — — — Land and buildings held for resale — — — — Investment in joint venture — — — — Other 1,600,578 3,194,787 — — Net pension asset 440,461 491,740 56,016 40,021 Total noncurrent assets 3,633,448,365 537,597,889 470,986,930 129,909,108 TOTAL ASSETS 3,932,487,499 569,505,043 509,092,755 138,564,188 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - refunding of debt — 62,880 — — Deferred outflows - pension 4,412,655 2,190,933 866,113 273,216 Total assets and deferred outflows of resources $ 3,936,900,154 $ 571,758,856 $ 509,958,868 $ 138,837,404 The accompanying notes are an integral part of this statement 27 Business-type Activities - Enterprise Funds Governmental Activities - Internal Service Funds Redevelopment Agency Nonmajor Proprietary Funds Total $ 47,846,331 $ 52,978,865 $ 321,793,676 $ 39,448,107 56,038,523 80,626 68,389,733 129,182 — — 49,093,054 — — 1,256,978 77,379,773 — 288,237 3,181,736 10,817,335 — 719,778 — 3,877,489 — 48,082 108,390 671,273 470,896 — 349,532 8,581,938 869,627 104,940,951 57,956,127 540,604,271 40,917,812 — — 252,158,959 1 — — 69,669,193 — — — 921,359 — 21,306,270 5,831,658 207,375,733 1,069,180 1,110,451 4,573,392 2,223,491,514 28,670,307 55,022,530 30,479,853 2,274,854,166 — 500,836 26,260,315 442,953,894 94,857,869 13,348,636 — 596,231,951 2,592,804 (47,830,096) (33,003,823) (1,255,833,340) (69,739,805) 43,458,627 34,141,395 4,489,073,918 57,450,355 26,789,653 45,460,068 104,145,003 — 39,394,118 2,611,596 42,005,714 — 51,017,452 20,949,773 71,967,225 — — — 4,795,365 — — — 1,028,238 226,051 160,659,850 103,162,832 5,035,764,974 57,676,407 265,600,801 161,118,959 5,576,369,245 98,594,219 5,333,646 — 5,396,526 — 220,914 665,956 8,629,787 1,151,678 $ 271,155,361 $ 161,784,915 $ 5,590,395,558 $ 99,745,897 The accompanying notes are an integral part of this statement 28 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2021 Business-type Activities - Enterprise Funds Department of Airports Water Utility Sewer Utility Stormwater Utility LIABILITIES Current Liabilities: Accounts payable $ 69,683,788 $ 13,014,576 $ 17,192,123 $ 831,192 Accrued liabilities 49,978,629 267,425 112,250 32,686 Current portion of long-term compensated absences 1,175,114 651,921 253,866 131,959 Current portion of long-term debt 1,140,000 955,000 5,490,230 916,100 Accrued interest 46,578,146 — — — Current deposits and advance rentals 296,239 1,664,345 385,112 80,328 Current portion of line of credit 267,600,000 — — — Total current liabilities 436,451,916 16,553,267 23,433,581 1,992,265 Noncurrent liabilities: Deposits, advance rentals and long-term accruals — — — — Long-term compensated absences liability 4,360,288 2,109,134 815,472 284,087 Pollution remediation liability 123,669 — — — Other liabilities payable from restricted assets — 4,842,314 3,024,907 808,248 Estimated claims liability — — — — Revenues collected in advance 31,272,346 9,002,327 — — Net pension liability 1,152,133 654,375 228,208 74,851 Bonds, mortgages, and notes payable, net of discounts and current portion 2,031,104,850 79,091,402 184,928,610 18,342,557 Total noncurrent liabilities 2,068,013,286 95,699,552 188,997,197 19,509,743 TOTAL LIABILITIES 2,504,465,202 112,252,819 212,430,778 21,502,008 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Pension 8,944,450 5,644,054 1,720,809 607,077 Deferred Inflows - Revenue collected in advance 7,268,849 — — — Total deferred inflows of resources 16,213,299 5,644,054 1,720,809 607,077 NET POSITION Net investment in capital assets 1,310,143,823 430,592,731 275,198,670 107,572,782 Restricted for debt service and undisbursed loan held in escrow 180,507,297 — — — Restricted for capital acquisition 35,106,199 18,492,795 2,288,497 1,594,086 Unrestricted (109,535,667) 4,776,457 18,320,114 7,561,451 TOTAL NET POSITION 1,416,221,652 453,861,983 295,807,281 116,728,319 Total liabilities, deferred inflows of resources and net position $ 3,936,900,154 $ 571,758,856 $ 509,958,868 $ 138,837,404 The accompanying notes are an integral part of this statement 29 Business-type Activities - Enterprise Funds Governmental Activities - Internal Service Funds Redevelopment Agency Nonmajor Proprietary Funds Total $ 2,924,837 $ 2,246,893 $ 105,893,409 $ 2,221,114 — 116,444 50,507,434 236,458 61,384 369,307 2,643,551 426,176 5,570,000 2,907,649 16,978,979 4,344,975 440,257 — 47,018,403 218,255 — 118,397 2,544,421 — — — 267,600,000 — 8,996,478 5,758,690 493,186,197 7,446,978 — 675,007 675,007 — 241,028 698,291 8,508,300 1,462,180 — — 123,669 — — — 8,675,469 — — — — 11,652,192 — — 40,274,673 — 50,446 181,046 2,341,059 309,310 56,345,454 12,811,714 2,382,624,587 33,984,812 56,636,928 14,366,058 2,443,222,764 47,408,494 65,633,406 20,124,748 2,936,408,961 54,855,472 345,471 1,297,274 18,559,135 2,604,180 — — 7,268,849 — 345,471 1,297,274 25,827,984 2,604,180 43,458,627 19,075,278 2,186,041,911 18,875,119 — — 180,507,297 — 70,652,524 39,029 128,173,130 — 91,065,333 121,248,586 133,436,274 23,411,126 205,176,484 140,362,893 2,628,158,612 42,286,245 $ 271,155,361 $ 161,784,915 $ 5,590,395,558 $ 99,745,897 The accompanying notes are an integral part of this statement 30 SALT LAKE CITY CORPORATION RECONCILIATION OF THE PROPRIETARY FUNDS STATEMENT OF NET POSITION TO THE PRIMARY GOVERNMENT BUSINESS-TYPE STATEMENT OF NET POSITION June 30, 2021 Total assets and deferred outflows of resources for Proprietary Funds $ 5,590,395,558 Elimination of investment in discrete component unit (51,017,452) Internal service fund allocation for proprietary funds - prior years' cumulative (9,822,080) Internal service fund allocation for proprietary funds - current year (914,034) Total assets for Primary government business-type activities $ 5,528,641,992 Total net position for Proprietary Funds $ 2,628,158,612 Elimination of investment in discrete component unit (51,017,452) Internal service fund allocation for proprietary funds - prior years' cumulative (9,822,080) Internal service fund allocation for proprietary funds - current year (914,034) Total net position for Primary government business-type activities $ 2,566,405,046 The accompanying notes are an integral part of this statement 31 This page intentionally left blank 32 SALT LAKE CITY CORPORATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2021 Business-type Activities - Enterprise Funds Department of Airports Water Utility Sewer Utility Stormwater Utility Sales and charges for services $ 175,554,200 $ 83,177,848 $ 50,708,746 $ 10,696,303 Rental and other 8,140,198 4,081,804 596,965 78,078 Total operating revenue 183,694,398 87,259,652 51,305,711 10,774,381 Personnel services 46,781,808 21,531,357 9,994,294 2,868,454 Operating and maintenance 11,041,496 4,109,584 1,652,780 208,273 Charges for services 65,488,962 35,183,898 6,305,614 2,722,962 Depreciation and amortization 100,890,159 9,415,356 7,934,124 2,971,839 Total operating expenses 224,202,425 70,240,195 25,886,812 8,771,528 Operating income (loss) (40,508,027) 17,019,457 25,418,899 2,002,853 Interest income 3,944,377 658,820 438,896 105,061 Interest expense (86,108,427) (2,341,702) (5,964,607) (539,536) Equity in joint venture income (loss) — — — — Passenger & Customer facility charges 38,243,032 — — — Bond Issuance costs (506,009) — — — Gain or (loss) on disposition of property and equipment (24,971,206) 689,052 21,866 23,028 Total non-operating revenues (expenses) (69,398,232) (993,830) (5,503,845) (411,447) Grants and other contributions 94,930,936 7,515,602 3,746,253 2,410,801 Total capital contributions 94,930,936 7,515,602 3,746,253 2,410,801 Income (loss) before transfers (14,975,323) 23,541,229 23,661,307 4,002,207 Transfers in 990,308 601,341 211,318 32,650 Transfers out (364,971) — — — Change in net position (14,349,986) 24,142,570 23,872,625 4,034,857 Net Position July 1, 2020 1,430,571,640 429,719,413 271,934,656 112,693,462 2 2 Net Position June 30, 2021 $ 1,416,221,654 $ 453,861,983 $ 295,807,281 $ 116,728,319 The accompanying notes are an integral part of this statement 33 Business-type Activities - Enterprise Funds Governmental Activities - Internal Service FundsRedevelopment Agency Nonmajor Proprietary Funds Total $ 203,043 $ 26,287,845 $ 346,627,985 $ 79,286,249 1,225,724 1,167,575 15,290,344 1,603,790 1,428,767 27,455,420 361,918,329 80,890,039 1,560,415 9,000,950 91,737,278 13,159,877 1,607,423 1,597,238 20,216,794 6,336,201 24,173,439 13,267,635 147,142,510 57,777,317 666,847 3,887,206 125,765,531 9,379,898 28,008,124 27,753,029 384,862,113 86,653,293 (26,579,357) (297,609) (22,943,784) (5,763,254) 623,224 1,337,691 7,108,069 22,076 (4,854,399) (552,335) (100,361,006) (1,215,514) (1,353,619) 542,783 (810,836) — — — 38,243,032 — — — (506,009) — 891,630 129,723 (23,215,907) 712,139 (4,693,164) 1,457,862 (79,542,657) (481,299) 31,457,931 — 140,061,523 — 31,457,931 — 140,061,523 — 185,410 1,160,253 37,575,082 (6,244,553) 16,627,173 5,648,209 24,110,999 9,514,508 — (1,271,258) (1,636,229) (3,168,381) 16,812,583 5,537,204 60,049,852 101,574 188,363,901 134,825,689 2,568,108,761 42,184,673 $ 205,176,485 $ 140,362,893 $ 2,628,158,613 $ 42,286,247 The accompanying notes are an integral part of this statement 34 SALT LAKE CITY CORPORATION RECONCILIATION OF THE PROPRIETARY FUNDS CHANGE IN NET POSITION TO THE PRIMARY GOVERNMENT BUSINESS-TYPE CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2021 Change in net position for Proprietary Funds $ 60,049,852 Elimination of investment (income)/loss in discrete component unit 1,353,619 Internal service fund allocation for proprietary funds (914,034) Change in net position for Primary government business-type activities $ 60,489,437 The accompanying notes are an integral part of this statement 35 This page intentionally left blank The accompanying notes are an integral part of this statement 36 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2021 Department of Airports Water Utility Sewer Utility Cash Flows from Operating Activities: Receipts from customers and users $ 204,077,211 $ 86,562,052 $ 51,902,030 Receipts from internal fund services (18,427,475) (4,596,453) (2,549,640) Payments to suppliers (57,805,859) (34,892,423) (3,680,526) Payments to employees (50,474,336) (23,368,473) (10,317,141) Net cash from (used for) operating activities 77,369,541 23,704,703 35,354,723 Cash flows from non-capital and related financing activities: Contributions from other taxing entities — — — Transfers in 990,308 601,341 211,318 Transfers out (364,971) — — Net cash from (used for) non-capital and related financing activities 625,337 601,341 211,318 Cash flows from capital and related financing activities: Proceeds from issuance of debt, net of discount and issuance costs 267,205,418 77,004,650 106,048,923 Proceeds from sale of assets and equipment 150,298 52,678 29,838 Contributions for aid in construction 77,981,794 3,532,817 3,094,964 Passenger and Customer Facility Charges 33,168,939 — — Payment on long-term obligations, net of capitalized interest (93,737,916) (2,429,413) (12,716,763) Payments for purchase and construction, including capitalized interest (592,879,112) (37,290,437) (82,427,418) Private donations — — — Property and equipment purchased and contributed to a non-profit (9,029,000) — — Net cash from (used for) capital and related financing activities (317,139,579) 40,870,295 14,029,544 Cash flows from investing activities: Cash paid for investments (270,913,997) (147,141) — Cash proceeds from investments 342,379,832 — — Interest used, investments and loans 4,994,948 658,820 438,896 Dividend from Joint Venture — — — Net cash from (used for) investing activities 76,460,783 511,679 438,896 Net increase (decrease) in cash and cash equivalents (162,683,918) 65,688,018 50,034,481 Cash and cash equivalents at beginning of year 455,476,843 23,839,610 30,857,619 Cash and cash equivalents at end of year $ 292,792,925 $ 89,527,628 $ 80,892,100 Cash and cash equivalent components: Unrestricted $ 181,080,245 $ 70,444 $ 32,338,362 Restricted 111,712,680 89,457,184 48,553,738 Cash and cash equivalents at end of year $ 292,792,925 $ 89,527,628 $ 80,892,100 Reconciliation of operating income (loss) to net cash from (used for) operating activities Operating Income (Loss)$ (40,507,744) $ 17,019,457 $ 25,418,899 Adjustments to reconcile operating income (loss) to net cash from (used for) operating activities: Depreciation and amortization 100,890,159 9,415,356 7,934,124 Principal forgiven on loans receivable — — — Pension expense (3,659,494) — — Increase (decrease) due to changes in: Accounts receivable (2,824,906) 391,480 532,131 Other current assets 648,869 (710,819) 8,877 Accounts payable 11,108,356 (1,060,660) 1,903,111 Deferred outflows (108,458) — — Accrued interest on notes receivable — — — Accrued liabilities affecting operating activities — 327,895 257,527 Other liabilities 11,921,250 449,476 (124,952) Pension assets 440,461 — — Pension liability (7,278,865) (4,766,439) (1,377,849) Deferred pension outflows and inflows 2,012,345 2,638,957 802,855 Deferred inflows 3,951,374 — — Compensation liability 776,194 — — Total adjustments 117,877,285 6,685,246 9,935,824 Loans made to residents — — — Principal collected on loans — — — Net cash from (used for) operating activities $ 77,369,541 $ 23,704,703 $ 35,354,723 Non-cash transactions affecting financial position: Recognition of equity interest in joint venture $ — $ — $ — Contributions of capital assets from (to) other entities — 4,557,958 651,289 Promises to give — — — The accompanying notes are an integral part of this statement 37 Stormwater Utility Redevelopment Agency Nonmajor Proprietary Funds Total Governmental Activities- Internal Service Funds $ 10,967,653 $ 4,411,647 $ 32,276,645 $ 390,197,238 $ — (1,236,682) — — (26,810,250) 80,890,035 (1,452,080) (33,352,950) (16,423,518) (147,607,356) (59,724,984) (3,041,941) (1,603,560) (9,467,400) (98,272,851) (13,578,226) 5,236,950 (30,544,863) 6,385,727 117,506,781 7,586,825 — 31,215,269 — 31,215,269 — 32,650 16,627,173 5,648,209 24,110,999 9,514,508 — — (1,271,258) (1,636,229) (3,168,381) 32,650 47,842,442 4,376,951 53,690,039 6,346,127 14,500,909 — — 464,759,900 2,213,513 9,935 602,850 129,724 975,323 1,273,305 928,384 — — 85,537,959 — — — — 33,168,939 — (1,268,215) (9,286,760) (3,834,062) (123,273,129) (7,706,692) (4,018,739) 25,891 (2,280,589) (718,870,404) (7,725,286) — 809,823 — 809,823 — — (9,132) — (9,038,132) — 10,152,274 (7,857,328) (5,984,927) (265,929,721) (11,945,160) — — — (271,061,138) — — 623,224 — 343,003,056 — 105,061 — 1,337,691 7,535,416 22,076 — 131,579 — 131,579 — 105,061 754,803 1,337,691 79,608,913 22,076 15,526,935 10,195,054 6,115,442 (15,123,987) 2,009,868 6,658,435 93,689,800 46,944,049 657,466,356 37,567,422 22,185,370 103,884,854 53,059,491 642,342,369 39,577,290 7,479,429 47,846,331 52,978,865 321,793,676 39,448,107 14,705,941 56,038,523 80,626 320,548,692 129,183 22,185,370 103,884,854 53,059,491 642,342,368 39,577,290 $ 2,002,853 $ (26,579,357) $ (297,606) $ (22,943,498) $ (5,763,256) 2,971,839 666,847 3,887,206 125,765,531 9,379,898 — 178,590 — 178,590 — — — — (3,659,494) — 186,944 — 3,267,300 1,552,949 — (713) 8,332 (599,265) (644,719) 168,965 33,429 164,352 425,590 12,574,178 407,972 — — 24,687 (83,771) 978,161 — (65,122) — (65,122) — 76,370 — 253,388 915,180 34,744 214,761 — 5,843 12,466,378 4,071,000 — — — 440,461 (226,051) (508,951) (313,542) (1,190,223) (15,435,869) (1,946,742) 260,418 141,030 — 5,855,605 — — — 523,698 4,475,072 218,079 — 126,342 85,110 987,646 264,055 3,234,097 906,829 6,683,334 145,322,615 13,350,081 — (7,920,337) — (7,920,337) — — 3,048,002 — 3,048,002 — $ 5,236,950 $ (30,544,863) $ 6,385,728 $ 117,506,782 $ 7,586,825 $ — $ (1,353,619) $ — $ (1,353,619) $ — 1,482,417 5,000,000 — 11,691,664 — — 266,974 — 266,974 — The accompanying notes are an integral part of this statement 38 Fiduciary Funds Deferred Compensation Fund - This fund is used to account for amounts deferred under the City's employee deferred compensation plan for which the City acts in a fiduciary capacity as trustee. 39 SALT LAKE CITY CORPORATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2021 Deferred Compensation Trust ASSETS Restricted cash, cash equivalents and investments $ 432,663 Total assets $ 432,663 NET POSITION - Restricted for deferred compensation $ 432,663 Total net position 432,663 Total liabilities and net position $ 432,663 The accompanying notes are an integral part of this statement 40 SALT LAKE CITY CORPORATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Fiscal Year Ended June 30, 2021 Deferred Compensation Trust Additions: Investment income $ 2,546 Total additions 2,546 Deductions: Benefits paid to participants 56,855 Total deductions 56,855 Net decrease in Net Position (54,309) Net Position July 1, 2020 486,972 Net Position June 30, 2021 $ 432,663 The accompanying notes are an integral part of this statement 41 Notes to the Financial Statements 42 1.Summary of Significant Accounting Policies Salt Lake City Corporation (the City) was incorporated January 6, 1851. The City operates under a Council-Mayor form of government and provides services to residents and businesses in many areas including police and fire protection, street maintenance, refuse collection, planning and zoning, building construction inspection, parks and recreation, prosecution, water, sewer, stormwater, airports, and general administrative services. Reporting Entity For financial reporting purposes, the reporting entity includes all funds, agencies and authorities for which the City holds corporate powers and all component units for which the City is financially accountable. The Governmental Accounting Standards Board (GASB) has established criteria to consider in determining financial accountability. The criteria are: appointment of a majority of the voting members of an organization’s governing board, and either (1) the City has the ability to impose its will on the organization or (2) there is potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. As required by Generally Accepted Accounting Principles (GAAP), these financial statements present the City, the primary government, and its component units. The component units are included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. The following funds, all with fiscal years ended June 30, 2021, have separately issued financial statements that can be obtained from their respective administrative offices: (1) The Arts Council (a special revenue fund), (2) the Water, Sewer, Stormwater and Street Lighting Utility Funds (enterprise funds) and (3) the Department of Airports (an enterprise fund). Blended Component Units The Local Building Authority and the Redevelopment Agency of Salt Lake City are legally separate entities from the City, but are part of the City and are blended into the internal service and enterprise funds, respectively. The Redevelopment Agency has separately issued financial statements for the year ended June 30, 2021, which are available at the Agency’s administrative office. The sole purpose of the Local Building Authority is to serve the City as a financing agency for debt financed projects. The sole purpose of the Redevelopment Agency is the elimination of blight through the process of redevelopment in designated project areas within the boundaries of the City. The Salt Lake City Council serves as the Board of Directors of both the Local Building Authority and the Redevelopment Agency. There is a financial benefit (burden) and operational responsibility between the City and the Local Building Authority and the Redevelopment Agency. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 43 Discretely Presented Component Units The discretely presented component units are the Salt Lake City Library and the Utah Performing Arts Center (UPACA). The Library is legally separate from, but financially accountable to the City, as the City can impose its will on the Library through the entire nine member Library Board appointment as well as the budget and property tax rate setting process. The Library provides services to residents rather than to the City and therefore meets the criteria of a discretely presented component unit. It is not financially dependent upon another government organization and should not be presented in any other governmental entity’s financial statements. The Salt Lake City Library is a governmental fund and has separately issued financial statements for the year ended June 30, 2021, which are available at the administrative offices of the Library. Utah Performing Arts Center Agency (UPACA) - In March 2013, Salt Lake City (City), the Redevelopment Agency (RDA) and Salt Lake County (County), executed an Interlocal Cooperation Agreement to form and create a separate legal entity, the Utah Performing Arts Center Agency (UPACA), that owns, operates, maintains and improves the George S. and Dolores Doré Eccles Theater (Theater). This state-of-the-art Theater opened in October 2016, and provides an excellent venue for Broadway shows, concerts and other entertainment events, as well as local performances and community events. UPACA provides services to residents rather than to the City and therefore meets the criteria of a discretely presented component unit of the City. UPACA is reported as an Equity Interest in Joint Venture in the RDA’s and County’s separately issued financial statements. UPACA has separately issued audited financial statements for the year ended December 31, 2020. The City and the RDA own 75% with the County having a 25% ownership in UPACA. UPACA is governed by a board of trustees consisting of nine members. Board membership is comprised of three representatives appointed by the County and six representatives appointed by the City and the RDA. Each representative has one vote and each representative's term continues until a successor is appointed. In March 2013, an Operating Agreement was entered into by UPACA, the Agency, the City and the County assigning responsibility for the operation and management to the County Center for the Arts (CFA) through December 31, 2041. CFA accounts for UPACA on a calendar year. Net operating income is distributed annually to the partners in amounts outlined in organizational agreements after required contributions to operating and capital reserve accounts. The County is responsible for any operating deficits and the City and RDA are responsible for the bond debt. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 44 Joint Venture The City is a fifty percent partner with Salt Lake County in two joint ventures. One is known as the City/County Landfill. The purpose of this joint venture is to provide solid waste management and disposal services (see note 17). The other joint venture is the Sugarhouse Park. This joint venture provides open space for enjoyment and other leisure activities for residents of the City, the County and non-resident guests. Related Organizations The City also has activities with three other related organizations, the Metropolitan Water District, the Housing Authority of Salt Lake City and the Salt Lake City Mosquito Abatement District. City officials appoint members of these three boards, but the City’s accountability does not extend beyond making the appointments. Basis of Presentation - Government-wide and fund financial statements Government-wide statements are comprised of the Statement of Net Position and the Statement of Activities. They contain information on all of the activities of the primary government and its component units except for fiduciary activities. Most effects of inter-fund activities have been eliminated from these statements. The exceptions are (1) payments-in-lieu-of-taxes the General Fund charges enterprise funds; (2) charges for water, sewer, storm-water and refuse that all customers pay to these enterprise funds and (3) charges for centrally provided services of the General Fund that benefit the receiving fund. Examples are payroll, purchasing, human resources and legal services. The government-wide statements for the primary government are separated based on the predominance of the type of revenues that support them. Governmental activities are normally supported by taxes and intergovernmental revenues, while business-type activities receive a significant portion of revenues from fees and charges for services. Certain entities that are legally separate, but financially accountable to the primary government are reported separately on the government-wide statements. The City currently has two of these entities, its discretely presented component units. The statement of activities is presented to show the extent that program revenues of a given activity support direct expenses. Direct expenses are those that can clearly be associated with a particular activity or program. Program revenues are: (1) charges to customers or others who purchase, use or directly benefit from the services or goods provided by a given activity or segment or (2) grants or other contributions that are restricted to operating or capital needs of a specific activity or segment. General revenues are those revenues like taxes and other items that are not properly reported as program revenues. Separate financial statements are included for governmental funds, proprietary funds and fiduciary funds. Fiduciary funds, however, are not included in the totals for the government-wide financial statements. Major individual governmental funds are reported in separate columns in the SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 45 governmental funds statements, as are major individual proprietary funds in the proprietary funds statements. Measurement focus and basis of accounting Measurement focus refers to the types of assets that appear on the statement of net position and changes to those same assets that appear on the statement of changes in net position. The flow of financial resources measurement focus shows current assets, liabilities and deferred inflows on the statement of net position and changes to net position in the statement of changes in net position. The flow of economic resources measurement focus shows total assets, deferred outflows, liabilities and deferred inflows on the statement of net position and changes to net position on the statement of changes in net position. Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Government-wide, proprietary and fiduciary fund statements use the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period incurred, regardless of the timing of the related cash flows. Un-billed fees for proprietary funds are recorded as receivables at year end. Property taxes are recorded as revenues in the year for which they are levied. Grants and similar other contributions are recognized as revenue as soon as the eligibility requirements of the provider have been met. The City’s major enterprise funds are: (1) The Department of Airports, (2) Water Utility Fund, (3) Sewer Utility Fund, (4) Stormwater Utility of Salt Lake City and (5) The Redevelopment Agency whose purpose is described previously in the section titled “Blended Component Units”. The Water Utility collects or purchases fresh water, then treats it, and delivers the now potable water to nearly all residents and businesses located in the City and many residents and businesses located geographically outside the boundaries of the City. The Department of Airports operates the Salt Lake City International Airport, Airport II and the Tooele Valley Airport, the latter two of which are located outside the boundaries of The City. The Sewer Utility Fund provides treatment and disposition services for waste water. The Stormwater Utility provides treatment and disposition services for storm runoff. In addition to the major enterprise funds, The City also operates five non-major enterprise funds and five internal service funds. The non-major enterprise funds are the Street Lighting Utility, Housing and Loan, Golf, and Refuse Collection. The Street Lighting Utility provides general street lighting for residents and commercial property owners. The Housing and Loan Fund provides loans to low and moderate-income families and individuals as well as businesses. Resources for these loans are received from a variety of sources including federal government, state government, financial institutions and internally generated sources. The Housing and Loan Fund also services these same loans. The Golf Fund operates all City-owned golf courses, while the Refuse Fund provides refuse collection and recycling services for residences and businesses of the City. Internal service funds provide services to other departments or agencies of the City on a cost reimbursement basis. The internal service funds are Fleet Management, Information Management, Risk Management, Governmental Immunity and the Local Building Authority. The Fleet Management fund owns and services all vehicles of the governmental SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 46 funds and services vehicles owned by many of the enterprise funds. Information Management maintains the infrastructure for the hard-wired telephone system, centralized computer services and the network of personal computers. Risk Management provides centralized services for the employee benefits of health, life, accident, dental, and long-term disability as well as unemployment, workers’ compensation and property insurance needs. The Governmental Immunity Fund manages the City’s general liability activities. The Local Building Authority’s purpose is discussed previously in the section titled “Blended Component Units”. The fiduciary fund is the Executive Deferred Compensation Fund. The City is the trustee for this fund and manages it in accordance with provisions of the Utah State Money Management Act and the City’s own ordinances, policies and procedures. In the past, city executives could elect to have some or all of their deferred compensation contributed to this fund, but it is now closed to further contributions. Proprietary funds separate operating and non-operating revenues and expenses. Operating revenues and expenses normally arise from providing goods and services in connection with the fund’s normal ongoing operations. The principal source of operating revenues for the proprietary funds and the internal service funds are charges to customers for goods and services. Operating expenses include the cost of sales and services, administrative overhead expenses and depreciation on capital assets. All other revenues or expenses are recorded as non-operating. Governmental fund statements use the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available. "Measurable" means that amounts can be reasonably determined within the current period. "Available" means that amounts are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. As a practical matter, the City uses two months as a cutoff for meeting the available criterion. Property taxes are considered “measurable” when levied and available when collected and held by Salt Lake County (the County). Any amounts not available are recorded as deferred inflow of resources. Franchise taxes are considered "measurable" when collected and held by the utility company, and are recognized as revenue at that time. Other revenues that are determined to be susceptible to accrual include grants-in-aid earned and other intergovernmental revenues, charges for services, interest, assessments, inter-fund service charges, permits, fines, forfeitures, parking ticket and meter fees, and sale of property. Property taxes and assessments are recorded as receivables when levied or assessed; however, they are reported as deferred outflow of resources until the "available" criterion has been met. Sales and use taxes collected by the state and remitted to the City within the “available” time period are recognized as revenue. Revenues collected in advance are recorded as advances and recognized in the period to which they apply. Revenues that are determined to not be susceptible to accrual because they are either not available soon enough to pay liabilities of the current period (two months) or are not objectively measurable include licenses, contributions, and miscellaneous revenues. These revenues are recognized when cash is received. Expenditures are recognized in the accounting period in which the fund liability is incurred, except for long-term obligations (debt service payments, long term compensated absences and other SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 47 post-employment benefits) and related interest which are recognized as expenditures when due. Inventories of supplies are expended when purchased. The City has three major governmental funds, the General Fund, the Capital Projects Fund and the Other Improvements Debt Service Fund. The General Fund is the main operating fund. It accounts for all financial resources of the general government, except for those required to be accounted for in another fund. The Capital Projects Fund accounts for resources dedicated to the construction or improvement of capital assets, which may take more than one budgetary cycle to complete. These constructed or improved capital assets are for the benefit of any or all governmental funds. The Other Projects Debt Service Fund accounts for all debt service activities except special improvement debt. In addition to the listed major governmental funds, the City also has a total of ten non-major governmental funds: (1) the Arts Council, (2) Downtown Economic Development, (3) Community Development Block Grant (CDBG) Operating, (4) Grants Operating, (5) Street Lighting, (6) Demolition, Weed & Forfeiture, (7) Emergency 911 Dispatch, (8) Salt Lake City Donation and (9) Transportation Fund and (10)Special Improvement Debt Service. In 2018 the State of Utah imposed a statewide .25% sales tax to be used for transportation. The City created a new transportation special revenue fund to collect and spend the sales tax to improve transportation within the City. The last one is a debt service fund while the first nine are special revenue funds. Budgets and budgetary accounting Budgets are legally required for governmental funds. The City has a policy of budgeting for proprietary funds. Annual budgets are prepared and adopted by the City Council on or before June 22 for the fiscal year commencing the following July 1, in accordance with Utah State law. The operating budget includes proposed expenditures and the proposed sources of financing for such expenditures. Prior to June 22, a public hearing is conducted to obtain taxpayer input. Budgets are adopted by ordinance in total for each department. Expenditures cannot exceed appropriations at the department level. For budgetary purposes, the City considers each enterprise fund to be a department. Management can move budgeted amounts from one line item to another within a department or decrease appropriations. The City Council can increase appropriations after holding a public hearing. During the year ended June 30, 2021, the City Council passed several supplementary appropriations. The General Fund budget is prepared using the modified accrual basis of accounting adjusted for encumbrances and changes in compensated absences. Encumbrance accounting is used by the City to assure effective budgetary control and accountability, and to comply with State law. However, only the General Fund budget is prepared under the assumption that actual expenditures will be adjusted for encumbrances. Unencumbered General Fund appropriations lapse at year end and encumbered amounts carry over to the subsequent year. Generally accepted accounting principles require that open encumbrances not be reported with expenditures. However, in the General Fund budget to actual financial statement, the actual amounts are adjusted to include encumbrances. Compensated absences are budgeted on a cash basis. Non-cash changes in the balances of compensated absences are therefore eliminated for budgetary purposes. Capital lease purchases are budgeted in the year payments are due rather than in the year purchased. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 48 Budgets for the Special Revenue Funds, Debt Service Funds and the Capital Projects Fund are also prepared using the modified accrual basis of accounting and are adopted on an annual basis. The budget for the Community Development Operating, Grants Operating (special revenue funds), and the Capital Projects Fund are prepared annually for a specific set of projects. The Debt Service Funds' budgets are not prepared by project. By state law only budgets in the Capital Projects Fund do not lapse at year-end. Therefore any remaining budget in the Grants Operating Fund and the Community Development Operating Fund are re-appropriated by Council action in the following year. State law also requires a budget comparison for all funds for which an annual budget is adopted. In these three funds, the Council adopts the entire amount of the project, even though the project may not be completed in the first year. As a result, the budget comparisons on an annual basis may show large amounts of unexpended appropriations. Budgets for the Downtown Economic Development Fund, Street Lighting Fund, Demolition, Weed Abatement & Forfeiture Fund, Emergency 911 Fund, Salt Lake City Donations Fund and the Transportation Fund (special revenue funds) lapse at year end. Encumbrances are not reported as expenditures, but where necessary, are re-appropriated in the ensuing year's budget. Budgets for the proprietary funds are prepared using the accrual basis of accounting except for depreciation, lease amortization, and the changes in compensated absences and other post-employment benefits, which are not budgeted. Budgets are adopted for the entire amount of estimated proceeds from the sale of property and equipment rather than on the gain or loss from the sale as is reported in the financial statements. Budgets are also adopted for the entire amount of any debt issued to finance multi- year acquisition and construction projects. Budget comparisons in the proprietary funds may therefore show large amounts of unexpended appropriations for construction projects. These unexpended amounts are re-appropriated the following year. Cash, Cash Equivalents and Investments The City complies with GASB Statement No. 72 Fair Value Measurement and Application. The statement requires certain investments to be reported at fair value and the change in fair value to be included in revenues or expenses. The City’s policy is to report all investments at fair value except for money market investments and interest-earning investment contracts with a remaining maturity at time of purchase of ninety days or less. These are reported at amortized cost. The City’s investment in the State Treasurer’s Pool has a fair value equivalent to the value of the pool shares. This pool is administered by the State of Utah and is regulated by the Money Management Council under provisions of the Utah State Money Management Act. In all statements, the City considers all highly liquid investments (including restricted assets) that mature within ninety days or less when purchased to be cash equivalents. Inventories of supplies Inventories of supplies are valued at cost using the first-in/first-out method and consist of expendable supplies and merchandise. The cost of such inventories is recorded as expenditures/expenses when used (consumption method). SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 49 Depreciable capital assets Capital assets are valued at historical cost or estimated historical cost for assets where actual historical cost was not available. Donated capital assets are valued at their acquisition costs. In the event that donated capital assets are received under a service concession agreement those assets would be recorded at acquisition value. The City has a capitalization threshold of $100,000 for infrastructure in the public right of way and $5,000 for all other assets. The City does not capitalize interest as part of construction in process. Depreciation of capital assets is computed using the straight-line method over the following estimated useful lives: Buildings 35-60 years Building improvements 5-40 years Improvements other than buildings 25-35 years Machinery and equipment, including leased property under capital leases 3-20 years Infrastructure in public way; Roads, signals, lights and bridges 20-50 years Water and sewer lines 13-100 years Construction in Progress is not depreciated until the asset is placed into service Bond Premiums and Discounts Amortization of bond premiums or discounts are computed on the effective interest or straight- line method over the life of the related bonds. When the straight-line method is used, it approximates the effective interest method. Bond issue costs are expensed in the period in which the debt is incurred. Property taxes Ad valorem (based on value) property taxes constitute a major source of General Fund revenue. Taxes are levied through the passage of an ordinance in June of each year. The levy is applicable to only one year. All taxable property is required to be assessed and taxed at a uniform and equal rate on the basis of its fair market value. The State Tax Commission is required to assess certain statutorily specified types of property including public utilities and mining property. The county assessor is required to assess all other taxable property, and both entities are required to assess the respective types of property as of January 1, the assessment date. The County is then required to complete the tax rolls by May 15. By July 21, the county treasurer is to mail assessed value and tax notices to property owners. Then a taxpayer may petition the county board of equalization between August 1 and August 15 for a revision of the assessed value. Approved changes in assessed value are made by the county auditor by November 1 and on this same date the auditor is to deliver the completed assessment rolls to the county SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 50 treasurer. Tax notices are mailed with a due date of November 30, and delinquent taxes are subject to a penalty. Unless the delinquent taxes and penalties are paid before January 15, a lien is attached to the property, and the amount of taxes and penalties bear interest from January 1 until paid. If after five years delinquent taxes have not been paid, the County sells the property at a tax sale. Tax collections are remitted to the City from the County on a monthly basis. GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, defines a non-exchange transaction as one in which “a government either gives value to another party without directly receiving equal value in exchange or receives value from another party without directly giving equal value in exchange.” For property taxes, at January 1 of each year (the assessment date), the City has the legal right to collect the taxes, and in accordance with the provisions of the statement, has recorded a receivable and a corresponding deferred inflow of resources for the assessed amount of those property taxes as of January 1, 2021. Interfund transactions In the normal course of its operations, the City has various transactions between funds. Various City funds provide a number of services such as administrative, fleet maintenance, and information processing to certain other City funds. Charges are treated as revenues in the fund providing the service and as operating expenses in the fund receiving the service (see note 9). Transfers are recognized as transfers in and out, respectively, by the funds receiving and providing the transfer. Short-term payables are shown as due to/from other funds. Long-term payables are shown as advances to/from other funds. Long-term liabilities Long-term liabilities that will be financed from governmental funds are accounted for in the governmental activities portion of the government-wide statements, while those of proprietary funds are accounted for in their respective fund. Pensions The City complies with GASB Statement 68, Accounting and Financial Reporting for Pensions which measures the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Utah Retirement Systems Pension Plan (URS). Additions to/deductions from the URS’s fiduciary net position have been determined on the same basis as they are reported by URS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Deferred Outflows/Inflows of Resources In addition to assets, the statements of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial element, deferred outflows of resources, SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 51 represents a consumption of fund balance/net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure/expense) until then. The business type fund statements and government wide statements of net position report deferred outflow on the refunding of debt, unrecognized items not yet charged to pension expense and contributions from the employer after the measurement date but before the end of the employer's reporting period. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflow of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance/net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenues) until that time. The government has items which qualify for reporting in this category. The governmental funds report unavailable revenue from property taxes and unavailable grant revenue. The government wide statement of net position reports unavailable revenue from property taxes and unearned annuity interest. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The government wide statement of net position also includes the unamortized portion of the net difference between projected and actual earnings on pension plan investments and other unrecognized items not yet charged to pension expense. Fund Balance When both restricted and non-restricted fund balance is available for expenditure appropriation, the City’s policy is to use restricted fund balance first. When committed, assigned or unassigned fund balance is available to use for expenditure appropriation, the City’s policy is to use committed first, assigned second and then unassigned fund balance. Fund balance commitments would be made by the City’s legislative body, the City Council by ordinance in formal action in a public meeting. Fund balance assignments are made possible by the City Council by legally approving budgets in the governmental funds. For the General Fund, any year-end outstanding encumbrance that has been created by a City official with signatory authority and is within the budget constraints set by the Council is an assignment of fund balance. For other governmental funds any fund balance that is not restricted is assigned to the same purpose as it was originally appropriated by the City Council. Net Position The City’s net position is classified as follows: (1) Net investment in capital assets consists of the total investment in capital assets, net of accumulated depreciation and reduced by the outstanding debt obligations related to those assets. To the extent debt has been incurred, but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets; (2) Restricted for capital projects are amounts that are restricted by debt covenants to be expended for capital assets; (3) Restricted for debt service consists of that portion of net position that is restricted by debt covenants for debt service; (4) Unrestricted net position consists of everything else that does not meet the criteria above. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 52 Land and buildings held for resale The cost of land and buildings held for resale in the Housing and Loan Fund and Redevelopment Agency (enterprise funds) are capitalized until the related property is subsequently sold. Land and buildings held for resale are carried at the lower of cost, market, or committed sales price. Costs of buildings and improvements that management determines are not recoverable are expensed. Gains and losses on dispositions of land and buildings held for resale are included in the operating statement. Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the management of the City to make estimates and assumptions that affect the reported amounts of assets and liabilities. Estimate use also requires 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 these estimates. Total columns The total columns shown on the accompanying fund financial statements are mathematical totals only and do not eliminate inter-fund transactions or include other entries required to present consolidated financial statements. The government-wide financial statements do, however, eliminate most inter-fund transactions and the double counting of revenues and expenses. They are therefore much closer to the consolidated financial statements presented in private sector accounting. 2.Cash, Cash Equivalents and Investments The City maintains a cash pool and an investment pool that are available for use by all funds. Each fund type's portion of these pools is included in the combined balance sheet as "Cash and cash equivalents" and "Investments". Also included are investments separately held by several of the City's funds. It is the policy of Salt Lake City Corporation to invest public funds in accordance with the principles of sound treasury management and in compliance with state and local laws, regulations, and other policies governing the investment of public funds, specifically, according to the terms and conditions of the Utah State Money Management Act of 1974 and Rules of the State Money Management Council as currently amended (the “Act”), and the City’s own written investment policy. Public treasurers may use investment advisers to conduct investment transactions on behalf of public treasurers as permitted by statue, Rules of the Money Management Council and local ordinance or policy. Investment advisers must be certified by the Director of the Utah State Division of Securities of the Department of Commerce (the “Director”) and meet the requirements of the Utah Money Management Act (Rule 15 of the State Money Management Council). Broker/dealers and agents who desire to become certified dealers must be certified by the Director and meet the requirements of the SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 53 Utah Money Management Act (Rule 16 of the State Money Management Council). Only Qualified Depositories as certified by Utah’s Commissioner of Financial Institutions are eligible to receive and hold deposits of public funds (Rule 12 of the State Money Management Council). The Utah Money Management Council issues a quarterly list of certified investment advisers, certified dealers, and qualified depositories authorized by state statute to conduct transactions with public treasurers. Transactions involving authorized deposits or investments of public funds may be conducted only through issuers of securities authorized by Section 51-7-11(3), qualified depositories included in the current state list and certified dealers included in the current state list. All securities purchased through a certified investment adviser or certified dealer are required to be delivered to the custody of the City Treasurer or to the City’s safekeeping bank or trust company. The City may place public money in investments/deposits authorized by the Money Management Act (U.C.A. 51-7-11). The Treasurer shall ensure that all purchases and sales of securities are settled within 15 days of the trade date for outstanding issues, and 30 days on new issues. In general these investments can be any of the following subject to restrictions specified in the Act: (1) Obligations of the U.S. Treasury and most Government-Sponsored Agencies; (2) Commercial paper that is classified as “first tier” by two nationally recognized statistical rating organizations, one of which must be Moody’s Investors Service or Standard & Poor’s; (3) Bankers’ Acceptances; (4) Publicly traded fixed rate corporate obligations rated “A” or higher, or the equivalent of “A” or higher, by two nationally recognized statistical rating organizations; (5) Certain variable rate securities and deposits with the same rating requirements as the fixed rate corporate obligations; (6) Utah State Public Treasurer’s Investment Pool; (7) Certain fixed rate negotiable deposits with a qualified depository or through a certified dealer; (8) Qualifying repurchase agreements. The City did not enter into any reverse repurchase agreements during the year ended June 30, 2021. City policy provides that not more than 25% of total City funds or 25% of the qualified depository's allotment, whichever is less, can be invested in any one qualified depository. Not more than 20% of total City funds may be invested in any one certified out-of-state depository institution. However, there shall be no limitation placed on the amount invested with the Public Treasurers’ Investment Fund (State Treasurer’s Pool) and other money market mutual funds, provided that the overall standards of investments achieve the City’s policy objectives. The City's deposits are insured up to $250,000 per account by the Federal Deposit Insurance Corporation. Deposits above the $250,000 per account are exposed to custodial credit risk. Custodial credit risk for deposits is the risk that in the event of a bank failure, the City’s deposits may not be recovered. The bank balance of the Primary Government’s deposits totaled $12,847,356. Of this amount, $916,808 was insured and the remaining $11,930,548 was uninsured and uncollateralized. The bank balance of the Library component unit totaled $102,424. Of this amount, $102,424 was insured. The City has no formal policy regarding deposit credit risk. Investments - The City Treasurer may take physical delivery of securities or may use a qualified depository bank for safekeeping securities. An account with a money center bank may be maintained for the purpose of settling investment transactions, safekeeping and collecting those investments. A SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 54 safekeeping receipt issued by a qualified depository supports repurchase agreements with qualified depositories; otherwise, the securities are held in the custody of the City Treasurer or the City's safekeeping bank or trust company. Online access to accounts and monthly statements support investments in the State Treasurer’s Pool. All funds pledged or otherwise dedicated to the payment of interest and principal of bonds issued by the City are invested in accordance with the terms and borrowing instruments applicable to such bonds. City policy also provides that the remaining term to maturity of an investment may not exceed the period of availability of the funds invested. The investment of City funds cannot be of a speculative nature. Custodial credit risk for investments is the risk that, in the event of a failure of the counter party, the City will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. Of the total $1,085,137,835 invested by the City, $37,903,074 was exposed to custodial credit risk. The entire amount exposed was held in the City’s name by the counterparty. Investment interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The City currently has no policy regarding investment interest rate risk. The table below shows the maturities of the City’s investments. Fair Investments maturities (in years) Primary government: Value Less than 1 1 - 5 6 - 10 More than 10 Debt Securities U.S. Agency Notes $ 132,862,810 $ 44,402,388 $ 88,460,422 $ — $ — Corporate notes 62,996,980 27,026,415 35,970,565 — — Money market mutual funds 37,903,074 37,903,074 — — — Municipal Bonds — — — — — 233,762,864 $ 109,331,877 $ 124,430,987 $ — $ — Other investments Investment in State Treasurer's Pool 851,374,971 Total investments, primary government $ 1,085,137,835 Component units: Other investments Annuity 49,024 Investment in State Treasurer's Pool 17,256,996 Total investments, component units $17,306,020 Investment credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Salt Lake City’s policy is to follow the previously described Utah Money Management Act to reduce exposure to investment credit risk. The Library Component unit has funds invested in the Utah State Treasurer's pool. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 55 The city measures and records its investment using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investment in active markets. Level 2: Observable inputs other than quoted market prices. Level 3: Unobservable inputs The securities classified as Level 1 are valued as stated above. Money markets funds classified as level 2 use published fair value per share (unit) for each share and State Treasurer's Pool funds use the application of the June 30, 2021 fair value as calculated by the Utah State Treasurer, to the City's average daily balance in the Fund. The City currently has no assets that qualify for Level 3 investments. The following table illustrates the investments by the appropriate levels. Fair Value Fair Value Measurement Using 6/30/2021 Level 1 Level 2 Level 3 Primary government: U.S. Agency Notes $ 132,862,810 $ 132,862,810 $ — $ — Corporate notes 62,996,980 62,996,980 — — Money market mutual funds 37,903,074 — 37,903,074 — Investment in State Treasurer's Pool 851,374,971 — 851,374,971 — $ 1,085,137,835 $ 195,859,790 $ 889,278,045 $ — Component units: Other investments Annuity 49,024 — 49,024 — Investment in State Treasurer's Pool 17,256,996 — 17,256,996 — Total investments, component units $ 17,306,020 $ — $ 17,306,020 $ — At June 30, 2021, the City's investments had the following quality ratings: Fair Quality Ratings Primary government: Value AAAm Am A1m Unrated Debt Securities U.S. Agency Notes $ 132,862,810 $ 132,862,810 $ — $ — $ — Corporate Notes 62,996,980 62,996,980 — — — Money market mutual funds 37,903,074 37,903,074 — — — Investment in State Treasurer's Pool 851,374,971 — — — 851,374,971 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 56 The following is a summary of restricted and unrestricted cash, cash equivalents and investments at June 30, 2021. Primary Government Component Unit Library Component Unit Utah Performing Arts Center Agency Unrestricted cash and cash equivalents $ 618,795,571 $ 1,885,507 $ 5,536,136 Restricted cash and cash equivalents 360,214,521 — — Unrestricted investments 50,014,413 17,356,375 — Restricted investments 69,669,193 — — Total $ 1,098,693,698 $ 19,241,882 $ 5,536,136 At June 30, 2021, the balances by type were as follows: Deposits (book balance)$ 13,514,080 $ 1,932,431 $ — Investments 1,085,137,835 17,307,351 5,536,136 Cash on hand 41,783 2,100 — Total $ 1,098,693,698 $ 19,241,882 $ 5,536,136 Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. Salt Lake City’s policy is to follow the Rules of the Money Management Council. Rule 17 of the Money Management Council limits investments in a single issuer of commercial paper and corporate obligations to between 5% and 10% depending upon the total dollar amount held in the portfolio. The City had no debt securities investments as of June 30, 2021 with more than 5% of total investments. Included in both deposits and investments are cash equivalents with an original maturity of ninety days or less. For statement of cash flows and balance sheet purposes, only those items with maturities of ninety days or less when purchased are considered cash and cash equivalents. 3.Loans Receivable The Housing and Loan Fund (an enterprise fund) provides loans to residents for improvements in existing housing within designated project areas. It also provides mortgage loans to residents within the same designated project areas. Some loans are payable in monthly installments, others are due on sale or transfer of ownership of the related property, and other loan payments are deferred. These loans have interest rates ranging from 0% to 7% and are collateralized by property or a letter of credit. Housing loans receivable as of June 30, 2021 were $52,202,567, net of $3,801,000 estimated as uncollectible. The Redevelopment Agency (RDA - an enterprise fund) provides housing loans to homeowners and construction loans to contractors within a designated area of the City. These loans total $27,077,890 at June 30, 2021, are payable in monthly installments, bear interest from 0% to 7.0% and are collateralized by property, letters of credit or restricted cash accounts. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 57 4.Restricted Assets The bond resolutions require all bond proceeds and revenue earned on bond proceeds to be restricted to the payment of bond construction projects specified within the resolutions, the payment of bond principal and interest, and the renewal and replacement of specified property and equipment. Certain Water Utility certificates of deposit are also restricted for consumer deposits and for contributions for reservoir and supply line construction. Restricted assets in the Department of Airports (an enterprise fund) are restricted for construction projects at the Airport under the Passenger Facilities Charges (PFC) Program agreement. Restricted assets in the Redevelopment Agency (an enterprise fund) are restricted by provision of bond resolutions. Restricted assets in the Demolition, Weed and Forfeiture special revenue fund are restricted while awaiting the adjudication of Police Department asset seizures related to criminal cases. Restricted assets in the Capital Projects Fund are restricted debt proceeds to be used for capital construction. Restricted assets in the Water, Sewer and Stormwater Utilities (enterprise funds) are restricted by: Bond resolution or contractual agreement for debt service or completion of debt funded capital construction; Bond resolution for renewal and replacement; Customer deposit agreements; and the Utah Impact Fee Act. Restricted assets in the Fleet Management internal service fund are assets held by a trustee and are restricted for the purchase of capital equipment funded by debt proceeds. Restricted assets in the Local Building Authority internal service fund are assets held by a trustee and are restricted for capital construction funded by bond proceeds. Restricted assets in the Other Improvement debt service funds are restricted for debt service. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 58 5.Capital Assets The following table and the one on the following page summarize the changes in capital assets for governmental and business-type activities during the year ended June 30, 2021: Beginning Balance Increases Decreases Ending Balance Primary Government Governmental activities: Capital assets, not being depreciated: Land $ 213,141,701 $ 1,937,028 $ (99,526) $ 214,979,203 Construction in progress 13,156,742 13,197,091 (10,468,621) 15,885,212 Total capital assets, not being depreciated 226,298,443 15,134,119 (10,568,147) 230,864,415 Capital assets, being depreciated Buildings 421,593,611 970,060 (430,584) 422,133,087 Improvements other than buildings 114,148,172 2,155,728 — 116,303,900 Machinery and equipment 144,054,928 9,028,499 (5,112,671) 147,970,756 Infrastructure 334,200,249 18,953,593 (4,229,952) 348,923,890 Total capital assets being depreciated 1,013,996,960 31,107,880 (9,773,207) 1,035,331,633 Less accumulated depreciation: Buildings 119,663,779 9,381,500 (338,969) 128,706,310 Improvements other than buildings 34,501,785 4,894,021 — 39,395,806 Machinery and equipment 99,683,051 11,805,108 (4,590,056) 106,898,103 Infrastructure 146,589,591 10,097,848 (4,229,953) 152,457,486 Total accumulated depreciation 400,438,205 36,178,477 (9,158,978) 427,457,704 Total capital assets, being depreciated net 613,558,755 (5,070,597) (614,229) 607,873,929 Governmental activities capital assets, net $ 839,857,198 $ 10,063,522 $ (11,182,376) $ 838,738,344 Business-type activities Capital assets, not being depreciated: Land $ 206,082,122 $ 1,443,354 $ (149,743) $ 207,375,733 Construction in progress 2,596,839,398 625,248,753 (2,625,856,200) 596,231,951 Total capital assets, not being depreciated 2,802,921,520 626,692,107 (2,626,005,943) 803,607,684 Capital assets, being depreciated Buildings 703,529,741 1,755,089,401 (235,127,628) 2,223,491,514 Improvements other than buildings 1,703,881,862 656,461,376 (85,489,072) 2,274,854,166 Machinery and equipment 271,074,277 240,992,530 (69,112,913) 442,953,894 Total capital assets being depreciated 2,678,485,880 2,652,543,307 (389,729,613) 4,941,299,574 Less accumulated depreciation: Buildings 411,545,240 45,280,587 (230,757,375) 226,068,452 Improvements other than buildings 886,528,313 61,854,038 (79,315,153) 869,067,198 Machinery and equipment 206,090,974 18,631,747 (64,025,031) 160,697,689 Total accumulated depreciation 1,504,164,527 125,766,372 (374,097,559) 1,255,833,340 Total capital assets, being depreciated net 1,174,321,353 2,526,776,935 (15,632,054) 3,685,466,234 Business-type activities capital assets, net $ 3,977,242,873 $ 3,153,469,042 $ (2,641,637,997) $ 4,489,073,918 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 59 Depreciation expense for the year ended June 30, 2021 for governmental and business type activities is shown in the table below. Depreciation Governmental activities: Expense General Government $ 12,026,462 City Council 2,000 Mayor 1,505 City Attorney 6,599 Finance 2,505,092 Human Resources 17,601 Fire 577,580 Combined Emergency Services 82,995 Police 453,650 Community and Economic Development 42,075 Public Services 985,171 Infrastructure Depreciation 10,097,850 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 9,379,898 Total depreciation expense - governmental activities $ 36,178,477 Business-type activities: Airport Authority $ 100,891,000 Water 9,415,356 Sewer 7,934,124 Storm water 2,971,839 Redevelopment Agency 666,847 Other Activities 3,887,206 Total depreciation expense - business-type activities 125,766,372 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 60 Capital asset information for the City’s component unit, the Salt Lake City Library is as follows: Component Unit - Library Beginning Ending Capital assets, not being depreciated: Balance Increases Decreases Transfers Balance Land $ 126,107 $ — $ — $ — $ 126,107 Construction in progress 3,718,082 51,587 — (3,704,582) 65,087 Total capital assets, not being depreciated 3,844,189 51,587 — (3,704,582) 191,194 Capital assets, being depreciated Buildings 9,062,363 5,107,906 (187,272) — 13,982,997 Improvements other than buildings 1,624,676 61,921 (45,701) — 1,640,896 Circulating collections 10,036,107 895,092 (2,195,134) — 8,736,065 Furniture, fixtures and equipment 6,476,167 1,517,204 (197,764) — 7,795,607 Website development 26,500 — 12,500 — 39,000 Total capital assets being depreciated 27,225,813 7,582,123 (2,613,371) — 32,194,565 Less accumulated depreciation: Buildings (7,049,219) (495,166) 187,272 — (7,357,113) Improvements other than buildings (347,385) (122,691) 45,701 — (424,375) Circulating collections (6,246,438) (1,368,467) 2,195,134 — (5,419,771) Furniture, fixtures and equipment (4,868,789) (436,626) 177,956 — (5,127,459) Website development (18,250) (2,000) 12,500 — (7,750) Total accumulated depreciation (18,530,081) (2,424,950) 2,618,563 — (18,336,468) Total capital assets, being depreciated net 8,695,732 5,157,173 5,192 — 13,858,097 Component unit capital assets, net $ 12,539,921 $ 5,208,760 $ 5,192 $ (3,704,582) $ 14,049,291 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 61 Capital asset information for the City’s component unit, Utah Performing Arts Center Agency is as follows: Component Unit - Utah Performing Arts Center Agency Beginning Ending Balance Increases Decreases Balance Capital assets being depreciated: Improvements other than buildings $ 172,084 $ 30,685 $ — $ 202,769 Leased equipment 195,395 — — 195,395 Buildings 130,455,640 152,524 — 130,608,164 Machinery and equipment 392,938 31,795 — 424,733 Total capital assets being depreciated 131,216,057 215,004 — 131,431,061 Less accumulated depreciation: Improvements other than buildings 49,122 16,374 — 65,496 Leased equipment — 13,957 — 13,957 Buildings 8,181,341 2,601,917 — 10,783,258 Machinery and equipment 191,412 74,077 — 265,489 Total accumulated depreciation 8,421,875 2,706,325 — 11,128,200 Total capital assets, being depreciated net $ 122,794,182 $ (2,491,321) $ — $ 120,302,861 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 62 6.Long-term Obligations Changes in long-term obligations Revenue bonds and other long-term liabilities directly related to and intended to be paid from proprietary funds are included in the accounts of such funds. All other long-term obligations of the City are accounted for in the Governmental Activities of the government-wide statements. The table below summarizes changes in long-term obligations for the year ended June 30, 2021. Amount of Balance Balance Original Issue June 30,June 30,Due Within (bonds only)2020 Additions Retirements 2021 One Year Governmental Activities General obligation bonds - 2010B 100,000,000 59,280,000 — 4,630,000 54,650,000 4,765,000 General obligation bonds - 2013A 6,395,000 2,755,000 — 640,000 2,115,000 675,000 General obligation bonds - 2015A 14,615,000 8,835,000 — 1,010,000 7,825,000 1,030,000 General obligation bonds - 2015B 4,095,000 1,100,000 — 470,000 630,000 310,000 General obligation bonds - 2017B 12,920,000 12,920,000 — 1,045,000 11,875,000 1,100,000 General obligation bonds - 2019A 17,540,000 12,360,000 — 415,000 11,945,000 440,000 General obligation bonds - 2019B 5,300,000 4,795,000 — 440,000 4,355,000 455,000 General obligation bonds - 2020 17,745,000 — 17,745,000 4,615,000 13,130,000 455,000 Sales tax revenue bonds - 2012A 15,855,000 11,485,000 — 640,000 10,845,000 680,000 Sales tax revenue bonds - 2013B 7,315,000 5,775,000 — 305,000 5,470,000 320,000 Sales tax revenue bonds - 2014A 26,840,000 5,305,000 — 5,305,000 — — Sales tax revenue bonds - 2014B 10,935,000 8,885,000 — 455,000 8,430,000 475,000 Motor fuel revenue bonds - 2014 8,800,000 3,720,000 — 900,000 2,820,000 920,000 Sales tax revenue bonds - 2016A 21,715,000 19,850,000 — 1,940,000 17,910,000 1,990,000 Sales tax revenue bonds - 2019A 2,620,000 2,620,000 — 525,000 2,095,000 540,000 Sales tax revenue bonds - 2019B 58,540,000 58,205,000 — 465,000 57,740,000 470,000 Governmental bank notes Chase — 1,157,711 — 280,971 876,740 230,176 Siemens — 7,105,660 — 723,173 6,382,486 725,860 General compensated absences — 20,436,572 20,931,020 19,414,743 21,952,849 2,705,850 Internal Service Fund Debt: Lease revenue bonds - 2013A 7,180,000 5,800,000 — 295,000 5,505,000 305,000 Lease revenue bonds - 2014A 7,095,000 5,810,000 — 280,000 5,530,000 295,000 Lease revenue bonds - 2016A 6,755,000 6,015,000 — 260,000 5,755,000 265,000 Lease revenue bonds - 2017A 8,115,000 7,840,000 — 285,000 7,555,000 295,000 ISF bank notes Key Bank — 2,363,897 — 661,882 1,702,015 661,990 Chase — 12,883,480 1,027,309 3,359,335 10,551,454 2,189,548 ISF compensated absences 1,624,304 1,807,141 1,543,089 1,888,356 426,176 Governmental premiums/discounts — 10,577,589 2,709,886 2,030,887 11,256,588 — Total Governmental long-term debt $ 299,504,214 $ 44,220,356 $ 52,934,080 $ 290,790,488 $ 22,724,600 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 63 Amount of Balance Balance Original Issue June 30,June 30,Due Within (bonds only)2020 Additions Retirements 2021 One Year Business-type Activities Sewer 2009 Series $ 6,300,000 $ 3,465,000 $ — $ 315,000 $ 3,150,000 $ 315,000 Sewer 2010 Series 12,000,000 7,110,000 — 565,000 6,545,000 580,000 Storm 2011 Series 8,000,000 3,805,000 — 505,000 3,300,000 520,000 Sewer and Storm 2012 Series 28,565,000 11,155,000 — 2,290,000 8,865,000 2,330,000 Sewer and Storm 2017 Series 72,185,000 69,705,000 — 3,560,000 66,145,000 3,710,000 Water 2020 Series 157,390,000 — 157,390,000 — 157,390,000 — Water Note 8,500,000 2,125,000 — 2,125,000 — — Redevelopment Agency 2013A tax increment 64,730,000 10,830,000 — 3,460,000 7,370,000 3,605,000 Redevelopment Agency 2015A tax increment 12,215,000 11,910,000 — 675,000 11,235,000 1,160,000 Redevelopment Agency 2019 tax increment 44,640,000 44,135,000 — 790,000 43,345,000 805,000 Airport 2017A 826,210,000 826,210,000 — — 826,210,000 1,105,000 Airport 2017B 173,790,000 173,790,000 — — 173,790,000 35,000 Airport 2018A-2018B 850,550,000 850,550,000 — — 850,550,000 — Airport - Line of credit 267,600,000 — 267,600,000 — 267,600,000 267,600,000 Enterprise bank notes Chase 4,637,092 — 1,850,728 2,786,364 1,594,312 Siemens 5,784,075 — 307,792 5,476,283 332,379 Yamaha 112,160 — 74,870 37,290 18,290 Loan financing notes 6,001,531 — 963,546 5,037,985 868,673 Enterprise compensated absences 9,950,464 10,654,328 9,452,941 11,151,851 2,643,551 RDA premiums/discounts (38,001) — (3,455) (34,546) — Airport premiums/discounts 189,513,735 — 7,818,885 181,694,850 — Utilities premiums/discounts 7,809,082 40,810,454 1,909,467 46,710,069 — Total Business-type long-term debt $ 2,238,560,138 $ 476,454,782 $ 36,659,775 $ 2,678,355,146 $ 287,222,205 Total long-term debt 2,538,064,352 520,675,138 89,593,855 2,969,145,634 309,946,805 Library compensation liability $ 731,748 $ 914,908 $ 773,756 $ 872,900 $ — Total component unit long-term debt $ 731,748 $ 914,908 $ 773,756 $ 872,900 $ — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 64 The annual debt requirements to maturity, including principal and interest, as of June 30, 2021 are listed in the tables below for debt with regularly scheduled payments: Year Revenue Bonds General Obligation Bonds Ending Governmental Activities Business Activities Governmental Activities June 30 Principal Interest Principal Interest Principal Interest 2022 $ 5,395,000 $ 3,267,485 $ 14,165,000 98,413,681 $ 9,230,000 $ 3,767,789 2023 5,285,000 3,100,311 33,875,000 97,466,165 9,560,000 3,443,662 2024 5,485,000 2,912,677 38,050,000 95,885,707 9,580,000 3,105,145 2025 4,690,000 2,746,286 30,720,000 94,522,315 9,115,000 2,795,242 2026 4,850,000 2,599,918 46,535,000 92,922,826 9,445,000 2,466,935 2027-2031 20,430,000 10,457,067 310,180,000 427,947,389 45,720,000 7,048,106 2032-2036 43,010,000 6,186,879 361,845,000 350,790,080 7,670,000 1,886,050 2037-2041 16,165,000 755,957 436,895,000 256,516,250 6,205,000 485,800 2042-2046 — — 549,600,000 142,241,375 — — 2047-2051 — — 336,030,000 19,568,500 — — Subtotal 105,310,000 32,026,580 2,157,895,000 1,676,274,287 106,525,000 24,998,730 Less discount and deferred (gain) loss (2,463,881) — (223,036,727) — (8,792,706) — Net debt $ 107,773,881 $ 32,026,580 $ 2,380,931,727 $ 1,676,274,287 $ 115,317,706 $ 24,998,730 Year Special Assessment Bonds Other Debt Ending Governmental Activities Governmental Activities Business Activities June 30 Principal Interest Principal Interest Principal Interest 2022 $ — $ — $ 956,036 $ 193,251 $ 868,673 $ 173,258 2023 — — 928,597 166,627 714,897 138,037 2024 — — 970,106 139,544 689,207 108,043 2025 — — 1,010,922 111,166 714,935 77,329 2026 — — 931,858 81,516 61,754 59,576 2027-2031 — — 2,461,707 109,276 337,452 269,196 2032-2036 — — — — 390,937 215,711 2037-2041 — — — — 453,214 153,435 2042-2046 — — — — 525,788 80,860 2047-2051 — — — — 281,130 11,158 Total — — $ 7,259,226 $ 801,381 $ 5,037,986 $ 1,286,603 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 65 Compensation Liabilities (Compensated Absences) Vacation leave, compensatory leave, and the portion of sick leave that will eventually be paid are recognized as liabilities as they are earned. In the event of termination or retirement, an employee is reimbursed for unused accumulated vacation. Employees participating in Plan A are reimbursed for 25 percent of unused accumulated sick leave upon retirement, or 50 percent if the funds remain with the city to be used for retiree health insurance premium, while those employees participating in Plan B are reimbursed for 50 percent of the earned balance of personal leave upon separation or retirement. Upon retirement any unused severance account balance is reimbursed at 100 percent. The liability for accumulated compensated absences at June 30, 2021 is reported in the individual funds except for the long term portion relating to the governmental funds, which is recorded in the Governmental Activities column of the Government-wide Statements. Compensated absence liabilities in the enterprise and internal service funds have traditionally been liquidated by the specific enterprise or internal service fund to which the employee’s salary is charged. Compensated absences are reported in the governmental funds for unpaid balances of reimbursable unused leave for employees that terminated during the current fiscal year. For governmental funds, any compensated absence liability has typically been liquidated by the General Fund. GASB Statement No 88 - Certain Disclosure Related to Debt, including Direct Borrowings and Direct Placements To comply with GASB Statement No 88 “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, the city has identified bonds that have been directly placed. Also, included in the notes is a section describing direct borrowings by the City. The detail for each direct borrowing lender is also included in the debt tables within this note. General Obligation Bonds On November 18, 2010 the City issued General Obligation Bonds Series 2010B (Series 2010B) in the amount of $100,000,000. The City incurred $160,680 issuance costs, resulting in net proceeds of $99,839,320. The bonds carry an interest rate of 3.02 percent, and were issued to finish the $125,000,000 Public Safety Building and Command Center construction. The remaining balance of the 2010B bonds at June 30, 2021 was $54,650,000. This bond was a direct placement. On March 27, 2013 the City issued General Obligation Series 2013A (Series 2013A) at the par amount of $6,395,000. The bonds were issued with a premium of $622,808 and incurred issuance costs in the amount of $67,650, resulting in net proceeds of $6,950,158. The bonds were issued to defease the par amount of the General Obligation Bonds of Series 2004A due to mature from June 15, 2015 to June 15, 2024 in the total amount of $6,635,000. The net proceeds, along with other available funds were deposited in an irrevocable escrow account with an escrow agent to provide for all future debt service payments on the affected 2004A bonds. As a result, $6,635,000 is considered to be defeased and the liability for those bonds was removed from the balance sheet. The advance refunding resulted in a SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 66 difference between the reacquisition price and the net carrying amount of the old debt of $313,501. While incurring a deferred loss for accounting and reporting purposes, the City realized an economic gain of $1,788,882. The outstanding balance of the 2013A bonds at June 30, 2021 was $2,115,000. On February 24, 2015, the City issued Federally Taxable General Obligation Refunding Bonds, Series 2015A at the par amount of $14,615,000. The City incurred a total of $120,808 in issuance costs, resulting in net proceeds of $14,494,192. The bonds carry coupon rates of .45 percent to 3.322 percent and have final maturity date in fiscal year 2028. The bonds were issued to defease the par amount of the General Obligation Bonds Series 2013B due to mature on June 15, 2028 in the amount of $14,423,000. As a result, $14,423,000 is considered to be defeased and the liability for those bonds was removed from the balance sheet. The 2015A Bonds maturing on or after June 15, 2025 are subject to redemption prior to maturity, at the election of the City, on December 15, 2024, and on any date thereafter, in whole or in part, from such maturities or parts thereof as will be selected by the City, at a redemption price equal to 100 percent of the principal amount of the 2015A Bonds to be redeemed plus accrued interest thereon to the date fixed for redemption. While incurring a deferred gain of $71,191 for accounting and reporting purposes, the City realized an economic loss of $150,726. The remaining balance of the defeased bonds at June 30, 2021 was $7,825,000. On February 24, 2015, the City issued General Obligation Refunding Bonds, Series 2015B at the par amount of $4,095,000. The bonds were issued with a premium of $133,539 and incurred a total of $32,818 in issuance costs. With transfers of $40,207 from Prior Issue Debt Service Funds, the resulting net proceeds were $4,235,928. The bonds carry coupon rates of 1.5 percent to 4.0 percent and have final maturity date in fiscal year 2023. The bonds were issued to defease the par amount of the General Obligation Bonds Series 2009A, 2011 and 2013C due to mature on June 15, 2019, 2021 and 2023 respectively, and in the amounts of $370,000, $1,120,000 and $2,723,000 respectively. As a result, $4,213,000 is considered to be defeased and the liability for those bonds was removed from the balance sheet. The 2015B Bonds are not subject to optional redemption prior to maturity. For accounting and reporting purposes the City incurred a deferred loss of $17,278 while recognizing an economic gain of $320,502. The outstanding balance of the 2015B bonds at June 30, 2021 was $630,000. On October 25, 2017, the City issued General Obligation Refunding Bonds Series 2017B at a par amount of $12,920,000. The bonds carry coupon rates of 2.00 percent to 5.00 percent and have a final maturity of June 15, 2030. The bonds were issued to crossover refund a portion of the General Obligation Series 2010A Build America Bonds which were originally issued for the construction of the Public Safety Building. The crossover refunding results in cash flow savings of $660,669 and resulted in a deferred gain of $1,010,681. The effective discount rate is 2.201%. The Series 2010A Build America Bonds will remain percent outstanding until the crossover date of June 15, 2020 at which time they will be paid from the escrow fund. For this purpose and to cover payments on the Series 2017B Bonds, $15,460,680 was placed into escrow and will earn interest at 1.507 percent. The remaining balance of the 2017B bonds at June 30, 2021 was $11,875,000. On October 23, 2019, the City issued General Obligation Bonds Series 2019 at par amount of $22,840,000 with a premium of $3,665,151. The bonds carry coupon rates of 4.00 percent to 5.00 percent and have a final maturity date of June 15, 2039. The bonds were issued to fund construction of SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 67 streets and to refund the General Obligation Bonds Series 2017. The True Interest Cost of the bonds is 2.078%. The refunding of the Series 2017 bonds resulted in net present value savings of $340,911 and a net cash flow savings of $372,874. The remaining balance of the 2019 bonds as of June 30, 2020 was $16,300,000. On September 29, 2020, the City issued General Obligation Bonds Series 2020 at par amount of $17,745,000 with a premium of $2,709,886. The bonds carry coupon rates of 3.00 percent to 5.00 percent and have a final maturity date of June 15, 2040. The bonds were issued to fund construction of streets. The True Interest Cost of the bonds is 1.63%. The remaining balance of the 2020 bonds as of June 30, 2021 was $13,130,000. Sales Tax Revenue Bonds For all of the series of the Sales and Excise Tax Revenue bonds, the City has pledged sales tax revenues as collateral for the bonds. On June 7, 2012, the City issued the series 2012A Sales and Excise Tax Revenue Bonds in the par amount of $15,855,000. With the original issue premium of $678,363 added and issuance costs totaling $263,868 subtracted, the net proceeds equaled $16,269,495. The bonds carry interest rates from 1.5 percent to 4 percent. The bonds were issued to demolish and rebuild a viaduct over, and improve portions of, North Temple Street. The outstanding balance of the 2012A bonds at June 30, 2021 was $10,845,000. On November 26, 2013, the City issued the Series 2013B Sales and Excise Tax Revenue Bonds in the par amount of $7,315,000 with a final maturity date of October 1, 2033. With the original issuance premium of $568,437 added and a total issuance cost of $ 156,111 subtracted, the net proceeds equaled $7,727,326. The bonds carry interest rates from 4 percent to 5 percent, and were issued to fund the construction and improvements for the Sugar house Streetcar and Greenway project. The outstanding balance of the 2013B bonds at June 30, 2021 was $5,470,000. On July 17, 2014, the City issued Series 2014A Federally Taxable Sales & Excise Tax Revenue Refunding Bonds in the par amount of $26,840,000 with interest rates of .300 percent to 2.45 percent and a final maturity date in fiscal 2020. The City incurred a total of $203,995 in issuance costs which resulted in net proceeds of $26,636,005. The bonds were issued to defease the par amount of the Series 2005A Sales and Excise Tax Revenue Bonds due to mature on April 1, 2021 in the amount of $24,815,000. As a result, $24,815,000 is considered to be defeased and the liability for those bonds was removed from the balance sheet. The Series 2014A Bonds are not subject to redemption prior to maturity. For accounting and reporting purposes the City incurred a deferred gain of $2,228,084 while recognizing an economic gain of $1,517,025. The outstanding balance of the 2014A bonds at June 30, 2021 was $0. On September 24, 2014, the City issued the Series 2014B Sales and Excise Tax Revenue Bonds in the par amount of $10,935,000 with a final maturity date of October 1, 2034. With the original issuance premium of $621,745 added and a total issuance cost of $188,745 subtracted, the net proceeds equaled $11,368,000. The bonds carry interest rates from 2 percent to 4 percent, and were issued to fund City construction and acquisition projects. The Series 2014B Bonds maturing on or after October 1, SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 68 2025, are subject to redemption at the election of the City, on any date on or after October 1, 2024, in whole or in part, from such maturities or parts thereof as shall be selected by the City, upon notice given as provided in the Indenture, at a redemption price equal to 100 percent of the principal amount of the Series 2014B Bonds to be redeemed plus accrued interest thereon to the date fixed for redemption. The outstanding balance of the 2014B bonds at June 30, 2021 was $8,430,000. On June 1, 2016 the City issued Series 2016A Sales and Excise Tax Revenue Refunding Bonds at the par amount of $21,715,000, resulting in a deferred gain of $1,010,681. The bonds were issued with a premium of $2,924,990 and incurred a total of $158,354 in issuance costs resulting net proceeds of $24,481,636. The bonds carry coupon rates of 1.5 percent to 4.0 percent and have final maturity date in fiscal year 2029. Bonds maturing after October 1, 2026 are subject to redemption in whole or in part at the election of the City. The redemption price is equal to the principal amount thereof plus accrued interest. The bonds were issued to defease the par amount of the Series 2009A Sales and Excise Tax Revenue Bonds due to mature on October 1, 2029 in the amount of $22,075,000. As a result, $22,075,000 is considered to be defeased and the liability for those bonds was removed from the balance sheet. The outstanding balance of the 2016A bonds at June 30, 2021 was $17,910,000. On December 10, 2019, the City issued Sales Tax Revenue Refunding Bonds Series 2019A at a par amount of $2,620,000 with a premium of $343,625. The bonds carry coupon rates of 4.00 percent to 5.00 percent and have a final maturity of April 1, 2027. The True Interest Cost of the bonds is 1.42%. The bonds were issued to refund the Sales Tax Revenue Bonds Series 2007A and resulted in net present value savings of $299,661. The remaining balance of the 2019A bonds as of June 30, 2020 was $2,095,000. On December 10, 2019, the City issued Sales Tax Revenue Refunding Bonds Series 2019B at a par amount of $58,540,000. The bonds carry coupon rates of 1.794 percent to 3.102 percent and have a final maturity of April 1, 2038. The bonds have a True Interest Cost of 3.03%. The bonds were issued to refund the Sales Tax Revenue Bonds Series 2013A and resulted in net present value savings of $6,710,695 and a net cash flow savings of $8,618,611. The remaining balance of the 2019B bonds as of June 30, 2021 was $57,740,000. Motor Fuel Revenue Bonds On August 20, 2014, the City issued Motor Fuel Excise Tax Revenue Bonds, Series 2014 at the par amount of $8,800,000. The City incurred a total of $50,000 in issuance costs, resulting in net proceeds of $8,750,000 deposited to Construction Fund for the construction or acquisition of City projects. The bonds carry a coupon rate of 2.180 percent and have a final maturity date of April 1, 2024. The bonds are not subject to optional redemption. The outstanding balance of the bonds at June 30, 2021 was $2,820,000. This bond was a direct placement. Water, Sewer and Stormwater Utility Bonds The bond resolution approved in conjunction with the issuance of the Salt Lake City Water and Sewer Revenue Bonds provides, among other things, that certain funds be established and that certain accounting procedures be followed. Under the terms of the resolution, the City irrevocably pledged the net revenues of the Water and Sewer Utilities to the payment of the bonds and covenanted that rates will SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 69 be established to yield net revenues, as defined, equal to at least 1.25 times the debt service to become due in the next fiscal year. On November 17, 2009, the Sewer Utility issued $6,300,000 in Revenue Bonds. The 2009 Stimulus Bonds were issued as part of economic stimulus funding through the State of Utah. The Sewer Utility used the funds to replace the digester cover and walls at the reclamation plant facility. These bonds mature 2012 through 2031 with annual principal payments of $315,000 beginning February 2012 and the average interest of 0 percent. The Sewer Utility incurred issuance costs of $69,740 related to the 2009 series bonds. The issuance cost is being amortized commensurate with the debt service payments beginning February 2012. The outstanding balance of the bonds at June 30, 2021 was $3,150,000. This bond was a direct placement. On September 14, 2010, the Sewer Utility issued $12,000,000 in Revenue Bonds at an interest rate of 2.73 percent. The 2010 Series Bonds were issued by direct purchase through JPMorgan Chase Bank as authorized by City Council resolution for the purchase, acquisition and construction of improvements, facilities and properties including the sewer Orange Street trunk line or other various improvements. This issue matures February 1, 2031. The outstanding balance of the bonds at June 30, 2021 was $6,545,000. This bond was a direct placement. On October 19, 2011, the Utilities issued $8,000,000 in Revenue Bonds at an interest rate of 2.37 percent. The Series 2011 Bonds were issued by direct purchase through JPMorgan Chase Bank as authorized by City Council resolution for the purchase, acquisition and construction of improvements, facilities and properties including the Folsom Avenue stormwater project or other various stormwater improvements. This issue matures February 1, 2027. The outstanding balance of the bonds at June 30, 2021 was $3,300,000. This bond was a direct placement. On December 11, 2012 the Sewer and Stormwater Utilities issued $28,565,000 ($23,708,950 Sewer and $4,856,050 Stormwater) in Revenue Bonds at an interest rate of 1.73 percent. The Series 2012 Bonds were issued by direct purchase through JPMorgan Chase Bank as authorized by City Council resolution. The principal purpose of the Series 2012 Bonds was to defease a portion of the Series 2004 Bonds; $20,490,662 was placed in escrow that, when combined with related interest earnings, will be necessary to make principal and interest payments totaling $19,145,000 and $1,384,181, respectively. The net carrying amount of the defeased bonds was $20,519,304 ($19,145,000 due at maturity add $1,187,044 of unamortized premium and $372,703 of accrued interest, and less unamortized issuance costs of $185,443). The refunding transaction resulted in a $28,642 deferred inflow of resources, which was amortized through February 2014. The Series 2012 bonds also generated funds of $8,000,814 (after payment of bond issue costs of $73,524) for the construction and purchase of improvements at the Sewer Treatment Plant and other sewer line upgrades. This issue matures February 1, 2027. The outstanding balance of the bonds at June 30, 2021 was $8,865,000. This bond was a direct placement. On April 5, 2017 the Salt Lake City Public Utilities issued $72,185,000 in Revenue Bonds. The bonds were issued at a premium of $9,593,680 and carry interest rates of 2.00 percent to 5.00 percent with a final maturity of February 1, 2037. The bonds were issued for the purpose of financing improvements to the City’s water, sewer, storm drain, and street lighting utilities, and refunding a portion of the City’s outstanding water and sewer revenue bonds. The Series 2017A Bonds maturing on SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 70 or after February 1, 2028 are subject to redemption at the election of the City. The outstanding balance of the bonds at June 30, 2021 was $66,145,000. On December 7, 2017, the Utilities entered into a cooperative agreement with the State of Utah to provide sewer infrastructure related to the State’s relocation of a correctional facility. Under the terms of the agreement the State advanced $8,500,000 interest free to the Utilities to help cover the cost of sewer infrastructure improvements. The agreement requires the remaining $2,125,000 by February 1, 2021 by the Utilities. Imputed interest to the non-interest bearing note is deemed immaterial. The proceeds have been restricted for capital improvement and will be held in the City’s pooled cash until payments are required. This was a direct placement. On August 12, 2020, the Water, Sewer and Stormwater Utilities issued $157,390,000 ($61,362,110 Water, $84,472,630 Sewer and $11,555,260 Stormwater) in Revenue Bonds at an average interest rate of 4.6 percent. The principal purpose of the Series 2020 Bonds was to finance a new water reclamation facility and water treatment plant updates. The Series 2020 bonds will also help finance improvements to the City’s storm drainage system. The issuance resulted in net proceeds of $197,500,000 after premium of $40,810,454 and $700,454 cost of issuance. This issue fully matures February 1, 2050. On September 15, 2020, the Utilities’ secured funding from the EPA under the Water Infrastructure Finance and Innovation Act (WIFIA) program of up to $348,635,000. This funding will be provided on a reimbursement basis and will be used for the construction of a water reclamation facility to replace the fully depreciated facility that is still in use. Under the agreement with the EPA the Utilities will begin repaying the amounts reimbursed by the program in 2029 with interest of 1.34 percent. The Sewer incurred financial charges of $102,255 related this agreement. Redevelopment Agency Bonds The master indenture approved in conjunction with the issuance of Tax Increment Revenue Bonds provides, among other things, that certain funds are established and certain accounting procedures be followed. Under the terms of this indenture, the Redevelopment Agency irrevocably pledged the incremental property tax revenues and investment income of the Agency to the payment of the bonds and covenanted that the estimated annual tax increment revenues will be equal to at least 1.25 times the debt service to become due in the next fiscal year. On October 30, 2013, the Agency issued $64,730,000 in federally taxable tax increment revenue bonds, with interest rates ranging from 3.0 percent to 6.0 percent. The bond proceeds were used to fund the construction of the Eccles Theater. The Agency received net proceeds of $63,929,046, including accrued interest of $1,377,835, and net of issuance costs of $735,103 (which were expensed on the statement of revenues and expenses and changes in net position), and a discount of $65,851, which is being amortized over the life of the bonds using the effective interest method. On December 11, 2019, these bonds were partially refunded. $38,155,000 of the outstanding balance of $48,985,000 was defeased and the outstanding balance at of the bonds at June 30, 2021 was $7,370,000. In May 2015, the Agency issued $12,215,000 in Series 2015A subordinate tax increment revenue bonds and $1,060,000 in Series 2015B taxable subordinate tax increment revenue bonds (total of $13,275,000) SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 71 for the construction of the Regent Street Improvements. The interest rates on the Series 2015A and 2015B bonds are 2.57 percent and 2.66 percent, respectively. The Agency received net proceeds of $12,543,274, including accrued interest of $631,975 and issuance costs of $99,752, which were both expensed as incurred. The outstanding balances of the 2015A and 2015B bonds at June 30, 2021 was $11,235,000 and $0, respectively. These bonds were direct placement. On December 11, 2019, the RDA issued Tax Increment Revenue Refunding Bonds Series 2019 at par amount of $44,640,000. The bonds carry coupon rates of 1.90 percent to 2.976 percent and have a final maturity date of April 1, 2031. The bonds were issued to refund Tax Increment Bonds Series 2013. The True Interest Cost of the bonds is 2.745%. The refunding of the Series 2013 bonds resulted in net present value savings of $2,309,062 and a net cash flow savings of $2,639,619. The remaining balance of the 2019 bonds as of June 30, 2021 was $43,345,000. Local Building Authority Bonds On June 20, 2013, the Local Building Authority issued $7,180,000 par Lease Revenue bond Series 2013A. The bonds were issued at a premium of $92,650, carry interest rates of 2.00 percent to 4.00 percent and will be used to construct a new branch Library in the Glendale area of Salt Lake City. The outstanding balance of the bonds at June 30, 2021 was $5,505,000. On March 20 2014, the Local Building Authority issued $7,095,000 par Lease Revenue Bonds, Series 2014A. The bonds were issued at a premium of $319,104 and carry interest rates of 2.00 percent to 5.00 percent with final maturity of April 15, 2035. The Series 2014A Bonds maturing on and after April 15, 2024 are subject to redemption on or after October 15, 2023 at a price par. The Authority incurred a total of $134,591 in issuance costs and also funded a capitalized interest fund of $427,724. The net amount of $6,851,788.00 will be used to acquire and construct a new branch Library in the Marmalade area of Salt Lake City. The outstanding balance of the bonds at June 30, 2021 was $5,530,000. On March 29, 2016, the Local Building Authority issued $6,755,000 par Lease Revenue Bonds, Series 2016A. The bonds were issued at a premium of $704,812 and carry interest rates of 2.00 percent to 5.00 percent with final maturity of April 15, 2037. The Series 2016A Bonds maturing on and after April 15, 2027 are subject to redemption in whole or in part at par plus accrued interest. The outstanding balance of the bonds at June 30, 2021 was $5,755,000. On April 27, 2017, the Local Building Authority issued $8,115,000 par Lease Revenue Bonds, Series 2017A. The bonds were issued at a premium of $1,324,158 and carry interest rates of 4.00 percent to 5.25 percent with final maturity of April 15, 2038. The Series 2017A Bonds maturing on and after April 15, 2028 are subject to redemption in whole or in part at par plus accrued interest. The outstanding balance of the bonds at June 30, 2021 was $7,555,000. Airport SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 72 On February 8, 2017 the Salt Lake City Airport issued $1,000,000,000 in Airport Revenue Bonds, Series 2017A & 2017B. The bonds were issued at a premium of $126,480,831 and carry an interest rate of 5.00 percent with a final maturity of July 1, 2047. The bonds were issued for the purpose of financing a portion of the design and construction of the Terminal Redevelopment Program (TRP) and North Concourse Program (NCP). The City currently expects that it will issue additional series of airport revenue bonds to fund approximately $1.1 billion of construction costs of elements of the TRP and NCP in addition to the costs funded with the Series 2017 Bonds. The Series 2017A & B Bonds maturing on or after July 1, 2028 are subject to redemption at the election of the City. On October 31, 2018 the Salt Lake City Airport issued $850,550,000 in Airport Revenue Bonds, Series 2018A & 2018B. The bonds were issued at a premium of $82,567,209 and carry an interest rate of 4.28 percent with a final maturity of July 1, 2048. The bonds were issued for the purpose of completing the construction of the Terminal Redevelopment Program (TRP) and North Concourse Program (NCP). The Series 2018A & B Bonds maturing on or after July 1, 2029 are subject to redemption at the election of the City. Bank Notes The City directly borrows funds from multiple banks and financing companies to purchase equipment for city use. They are listed by bank or agency below: The City has an equipment financing contract with JPMorgan Chase. Equipment such as police vehicles, fire trucks, and other primary government purpose equipment are eligible to be financed under this contract. The City enters into several financing contracts a year with terms less than seven years. The interest rate is fixed and is determined separately for each contract based on a calculation of the 4- year, SWAP, tax rate, spread and other factors, but average about 2.1 percent. The initial amount available for financing was $30,000,000 and extends five years ending July 15, 2021. Each financing agreement reduces the amount available regardless of whether the final payment has been paid. As of June 30, 2021, $3,156,031 was still available for equipment purchase financing. Most of the agreements have been for fleet and refuse equipment but there is one agreement for fire apparatus. Public Services has four financing contracts with Siemens Public Inc. to purchase upgraded energy efficient equipment. Two contracts are for city parks, one is for Steiner Aquatics Center equipment and one is for golf courses. In July 2010 $832,588 was borrowed at 4.213 percent with final payment occurring in 2026. In January 2013, $6,315,796 was borrowed at 2.45 percent with the final payment occurring in 2029. These were both used in the parks division to improve efficiency in water usage and irrigation in city parks. A third agreement borrowed $3,470,79 in July 2013 at 2.95 percent maturing in 2030 and used for energy efficient equipment for Steiner Aquatics. The County contributes half of the debt service to the City as both entities agreed to share the cost of the Aquatic Center debt. The golf fund borrowed $6,068,464 in December 2014 at 2.5 percent with final payment made in 2031. The funds were used to improve efficiency in water usage and irrigation. The Information Management Services fund, an internal service fund, borrowed $1,420,313 from Key Government Finance, Inc. for system security hardware and software in December 2018. The SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 73 contract is for a fixed term of 5 years, ending January 21, 2023 with 0 percent interest rate. The fund borrowed $1,889,636 from Key Government Finance, Inc. for system security hardware and software in April 2020. The contract is for a fixed term of 5 years, ending May 24, 2024 with 0 percent interest rate. The Housing and Loan Fund has two contracts that are used to provide mortgage loans for low income housing. The city funds 20 percent of the purchase price and two contracts fund the remaining 80 percent, as described below. In August 2018 multiple bank loans were consolidated and refinanced into one loan with Ally Bank for $9,500,000 at 4.5 percent interest and matures in 2031. The City makes yearly payments plus any principal payments received from low-income borrowers when they sell or refinance their mortgages. For new low-income properties, the City borrows directly from UBS Bank, USA. The is a revolving loan participation agreement with a limit of $5,000,000 and is used to pay 80 percent of participation interest in low-income mortgage loans. Each new mortgage has a different interest rate which is based on the current LIBOR rate. The City receives principal and interest payments from the borrowers and forwards those payments to UBS Bank. Final payments are expected to be made in 2048. The balance available is $2,720,322. The golf fund has entered into three financing contracts with Yamaha and one contract with Highland Equipment to purchase golf carts for the golf courses. The total amount borrowed from Yamaha is $1,070,561 with interest rates 3.8 percent. Final payments are expected to be made in 2022. The total amount borrowed from Highland Equipment in January 2016 was $597,739; this note was paid in full in the current fiscal year. On March 1, 2021, the Airport entered into a short-term revolving credit facility in which the Airport can access up to $300 million (line of credit) secured by one or more notes; which notes constitute subordinate obligations under the Subordinate Obligation Trust Indenture. The interest for the line of credit will be based on the London interbank offered rate (LIBOR) and due monthly. In the case LIBOR ceases to be a reliable source for interest rates, an alternative interest rate will be determined. The Airport will also pay a commitment fee on any unused funds on a quarterly basis. The interest rate for the commitment fee will be determined by the current credit rating of the Airport’s bonds. As of June 30, 2021, the Airport had an outstanding balance of $267,600,000 on the line of credit, with the entire amount being due March 1, 2024, the maturity date of the line of credit. 7.Fund Equity Non-spendable amounts represent the portion of fund balance that is not in a spendable form or are contractually required to remain unspent. This includes receivables and prepaid items. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 74 Restricted amounts represent that portion of fund balance or net position that is legally restricted for the payment of debt service, operations and maintenance, renewal and replacement of property and equipment. Debt service and funds restricted by state or federal agencies are included in this category. The largest are impact fees and class C funds which are regulated by the state. Encumbrances are used in the General Fund and are included in this category and reflect ongoing contractual obligations that we consider to be legally restricted for operations across all general fund departments. Committed amounts represent the portion of fund balance that can only be used for specific purposes that requires specific action by the highest decision making authority. The City Council is the highest decision making authority and approves all budgets and uses of fund balances by ordinance in official meetings designated to perform such duties. Assigned amounts represent the portion of fund balance that are intended to be used for a specific purpose but are not restricted or committed. The table below shows a detail of the fund balance categories. Capital Nonmajor General Projects Other Governmental Fund Funds Improvement Funds Total Fund Balances: Nonspendable: Taxes and loans receivable, and prepaid items $ 2,212,414 $ — $ — $ 69,352 $ 2,281,766 Restricted for: Class C Roads — 9,755,019 — — 9,755,019 Debt Service — — 4,943,230 — 4,943,230 Misc Capital Projects — 31,360,010 — — 31,360,010 Impact Fees — 34,412,675 — — 34,412,675 Grants — — — 2,891,673 2,891,673 Community Development — — — 257,288 257,288 Emergency 911 — — — 774,876 774,876 Transportation — 6,957,083 — 4,214,342 11,171,425 Encumbrances 12,139,443 — — — 12,139,443 Committed: Weed demolition and forfeiture — — — 169,347 169,347 Emergency 911 — — — 3,377,088 3,377,088 Debt Service — — — 120,457 120,457 Assigned to: Misc Capital Projects — 30,905,242 — — 30,905,242 Arts Council — — — 595,727 595,727 Downtown economic development — — — 1,943,715 1,943,715 Street lighting special districts — — — 598,667 598,667 Weed demolition and forfeiture — — — 902,819 902,819 Donations — — — 2,243,310 2,243,310 Unassigned: 101,934,113 — — — 101,934,113 Total fund balances $ 116,285,970 $ 113,390,029 $ 4,943,230 $ 18,158,661 $ 252,777,890 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 75 8. Deficit Fund Balances/Net Position, Expenditures and Other Uses That Exceed Appropriations in Individual Funds At June 30, 2021, there were no funds with a negative Net Position. 9. General Fund Interfund Service Charges The General Fund charges certain proprietary and special revenue funds, the Capital Projects Fund and the Library component unit for various services. These transactions have been recorded as revenue and expenses or expenditures to the funds as if they involved organizations external to the City, which are generally eliminated for the government wide statements. The amounts of the charges to those funds for the year ended June 30, 2021, are as shown in the table below: General Fund charges for: Fire Police Engineering Administrative protection protection and other Enterprise funds:services services services services Total Water Utility $ 841,921 $ — $ — $ 346 $ 842,267 Sewer Utility 457,351 — — — 457,351 Storm Water Utility 147,607 — — 118,000 265,607 Street Lighting 36,073 — — — 36,073 Airport 1,494,640 5,261,900 8,696,569 4,229 15,457,338 Refuse Collection 459,232 — — 62,752 521,984 Golf — — — 28,743 28,743 Redevelopment Agency 992,660 — — 61,058 1,053,718 Internal service funds: Fleet Management 374,809 — — — 374,809 Information Management 309,373 — — — 309,373 Governmental Immunity 189,747 — — — 189,747 Risk Management 158,687 — — — 158,687 Local Building Authority — — — — — Special revenue funds E 911 Dispatch — — — — — Transportation — — — 20,111 20,111 Miscellaneous Grants — — — — — Donations — — — 5,443 5,443 Capital Projects Fund — — — 1,225,944 1,225,944 Subtotal, primary government 5,462,100 5,261,900 8,696,569 1,526,626 20,947,195 Component unit - Library — — — 24,153 24,153 Total reporting entity $ 5,462,100 $ 5,261,900 $ 8,696,569 $ 1,550,779 $ 20,971,348 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 76 10.Transfers Transfers were made to and from several funds during the course of the year ended June 30, 2021. The principal reason for transfers is to provide the receiving fund resources to carry out the activities for which the receiving fund was created. The more significant examples are transfers from the General Fund to the Capital Projects Fund, to Fleet Management for the purchase of governmental fund vehicles, Other Improvement Fund for Debt Service and to Governmental Immunity to pay general liability claims. Also, Redevelopment Agency to Debt Service Funds provide resources to make scheduled principal and interest payments. The table on the following page show the detail of transfers. Transfer in to: Capital Other Nonmajor Nonmajor Internal Transfers out from:General Projects Improvements Airport Water Sewer Storm Water RDA Governmental Proprietary Service Total General Fund $ — $ 11,832,503 $ 9,828,054 $ — $ 342,350 $ 108,500 $ 32,650 $ 16,611,140 $ — $ 4,788,734 $ 8,536,301 $ 52,080,232 Capital Projects 681,621 — 1,108,377 — — — — — — 46,983 880,278 2,717,259 Airport 364,971 — — — — — — — — — — 364,971 Other Improvements 996,159 — — — — — — — — — — 996,159 Nonmajor Governmental 4,574,536 8,695,770 — — — — — — — 734,059 — 14,004,365 Nonmajor Proprietary — — 271,258 — — — — — 1,000,000 — — 1,271,258 Internal Service 1,830,389 — 294,480 489,307 258,991 102,818 — 16,033 — 78,434 97,929 3,168,381 $ 8,447,676 $ 20,528,273 $ 11,502,169 $ 489,307 $ 601,341 $ 211,318 $ 32,650 $ 16,627,173 $ 1,000,000 $ 5,648,210 $ 9,514,508 $ 74,602,625 11. Risk Management The City is self-insured for liability claims, except for liability incurred at the Airport. The City carries excess liability insurance covering general liability, business auto liability, law enforcement liability, public officials’ liability, and employment practices liability over the self-insured retention of $1,000,000 per claim. The excess liability policy limits are $2,000,000 per occurrence and $2,000,000 aggregate except for excess general liability, which carries a $4,000,000 aggregate limit. The Airport carries commercial general liability insurance with a $500,000,000 limit and $0 deductible. The Governmental Immunity Fund (an internal service fund) has been established solely to pay liability claims other than those at the Airport along with certain related City Attorney expenses. The City carries cyber and technology liability insurance with a $5,000,000 per occurrence and aggregate limit and $50,000 retention. The City is self-insured for workers’ compensation and carries excess workers’ compensation insurance with $30,000,000 limit over the self-insured retention of $1,000,000 per occurrence. Further, the City is self-insured for unemployment risk. The Risk Management Fund (an internal service fund) has been established to pay these claims along with health insurance premiums and certain administrative expenses. During the past three fiscal years, there have been no settlements that exceeded insurance coverage. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 77 The City and Airport carry separate all risk property insurance policies, summarized below: City: $500,000,000 aggregate limit with a $100,000 deductible, with the following exceptions: the flood deductible is $250,000 except for three properties located outside the standard report zone, which carry a $500,000 deductible; earth movement deductible is one percent (1%) per location subject to $100,000 minimum and $5,000,000 maximum per location; the Leonardo building has a $10,000 deductible. Sub-limits apply as follows: (1) earth movement $125,000,000 limit; (2) flood $100,000,000 limit; (3) Mountain Dell Dam and appurtenant structures $60,000,000 aggregate limit with $30,000,000 sub-limit for all other dams; (4) fine art coverage $100,000,000 limit. The City is self-insured for property loss above the limits and below the deductibles. The operating departments of the General Fund or proprietary funds assume financial responsibility for risk retained by the City for property damage. Airport: $1,000,000,000 with a $100,000 deductible. Sub-limits and deductible exceptions apply as follows: (1) earth movement is $100,000,000 with a deductible of one percent (1%) of Total Insured Values at the time of the loss at each covered location involved in the loss or damage, subject to a minimum of $100,000 deductible and maximum of $5,000,000 and flood coverage is $150,000,000 sub- limit with a deductible of $100,000 minimum, $5,000,000 maximum; (2) $1,000,000,000 windstorm or hail five percent (5%) of Total Insured Values at the time of the loss at each covered location involved in the loss or damage, subject to a minimum of $250,000 any one occurrence for all covered loss or damage arising out of named storm (3) business interruption and extra expense coverage of $200,000,000 with a $100,000 deductible. Terrorism, certified and non-certified acts, is not covered. The Treasurer, Deputy Treasurer, and Director of Finance are each covered by public official bonds in the amount of $10,000,000, with no deductible. The City has a government crime policy that provides public employee dishonesty coverage (an employee blanket bond) covering (1) employee theft with $1,000,000 limit and $20,000 deductible; (2) computer fraud with $1,000,000 limit and $20,000 deductible; (3) funds transfer fraud with $1,000,000 limit and $20,000 deductible; (4) theft of money and securities with $50,000 limit and $2,500 deductible; (5) money orders and counterfeit paper currency with $50,000 limit and $2,500 deductible; (6) forgery and alteration with $25,000 limit and $1,000 deductible. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 78 Changes in the estimated claims payable liability carried in the accrued liabilities of the Risk Management Fund since July 1, 2018 shows in the table below: Current year Beginning of claims and Balance at Estimated fiscal year changes in Claim fiscal year due in one liability estimates payments end year 2018-2019 Workers' compensation $ 2,821,000 $ 632,209 $ (1,074,209) $ 2,379,000 Unemployment compensation 18,620 176,916 (160,152) 35,384 $ 2,839,620 $ 809,125 $ (1,234,361) $ 2,414,384 2019-2020 Workers' compensation $ 2,379,000 $ 4,038,480 $ (3,006,480) $ 3,411,000 Unemployment compensation 35,384 377,923 (280,116) 133,191 $ 2,414,384 $ 4,416,403 $ (3,286,596) $ 3,544,191 2020-2021 Workers' compensation $ 3,411,000 $ 2,904,672 $ (2,611,672) $ 3,704,000 $ 2,544,000 Unemployment compensation 133,191 131,262 (131,261) 133,192 133,192 $ 3,544,191 $ 3,035,934 $ (2,742,933) $ 3,837,192 $ 2,677,192 A liability is recorded for any claims or judgments when information available prior to issuance of the financial statements indicates it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Incurred but not reported events, if any, are included in the statements. 12. Pension Plans Identification - The City participates in one cost sharing multiple employer public employee retirement system (PERS) and one multiple-employer agent PERS. These are defined benefit retirement plans covering public employees of the State of Utah and employees of participating local governmental entities. The systems are administered under the direction of the Utah State Retirement Board whose members are appointed by the governor of Utah. Plan description: Eligible plan participants are provided with pensions through the Utah Retirement Systems. The Utah Retirement Systems are comprised of the following pension trust funds: •Public Employees Noncontributory Retirement System (Noncontributory System); Public Employees Contributory Retirement System (Contributory System); Firefighters Retirement System (Firefighters System); are multiple employee public employees, retirement systems. •The Public Safety Retirement System (Public Safety System) is an agent multiple-employer retirement system. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 79 •Tier 2 Public Employees Contributory Retirement System (Tier 2 Public Employees System); and the Tier 2 Public Safety and Firefighter Contributory Retirement System (Tier 2 Public Safety and Firefighters System) are multiple employer cost sharing public employees retirement systems. The Tier 2 Public Employees System became effective July 1, 2011. All eligible employees beginning on or after July 1, 2011 who have no previous service credit with any of the Utah Retirement Systems, are member of the Tier 2 Retirement System. The Utah Retirement Systems (Systems) are established and governed by the respective sections of Title 49 of the Utah Code Annotated 1953, as amended. The Systems' defined benefit plans are amended statutorily by the State Legislature. The Utah State Retirement Office Act in Title 49 provides for the administration of the Systems under the direction of the Board, whose members are appointed by the Governor. The Systems are fiduciary funds defined as pension (and other employee benefit) trust funds. URS is a component unit of the State of Utah. Title 49 of the Utah Code grants the authority to establish and amend the benefit terms. URS issues a publicly available financial report that can be obtained by writing Utah Retirement Systems, 560 E. 200 S, Salt Lake City, Utah 84102 or visiting the website: www.urs.org. The contributions are reported as expenditures/expenses, and thus the liabilities are liquidated from the respective funds that the covered employees are compensated from. Benefits provided: URS provides retirement, disability, and death benefits. Retirement benefits are as follows: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 80 System Final Average Salary Years of service required and/or age eligible for benefit Benefit percent per year of service COLA** Noncontributory System Highest 3 years 30 years any age 2.0% per year all years Up to 4% 25 years any age* 20 years age 60* 10 years age 62* 4 years age 65 Contributory System Highest 5 years 30 years any age 1.25% per year to June 1975:Up to 4% 20 years age 60* 2.00% per year July 1975 10 years age 62*to present 4 years age 65 Public Safety System Highest 3 years 20 years any age 2.5% per year up to 20 years;Up to 2.5% to 4% 10 years age 60 2.0% per year over 20 years depending on the 4 years age 65 employer Firefighters System Highest 3 years 20 years any age 2.5% per year up to 20 years;Up to 4% 10 years age 60 2.0% per year over 20 years 4 years age 65 Tier 2 Public Employees Highest 5 years 30 years any age 1.5% per year all years Up to 2.5% System 25 years any age* 20 years age 60* 10 years age 62* 4 years age 65 Tier 2 Public Safety and Firefighter Highest 5 years 25 years any age 1.5% per year to June 30, 2020 Up to 2.5% System 20 years any age 60* 2% per year July 1, 2020 to present 10 years age 62* 4 years age 65 *with actuarial reductions ** All post-retirement cost-of-living adjustments are non-compounding and are based on the original benefit except for Judges, which is a compounding benefit. The cost-of-living adjustments are also limited to the actual Consumer Price Index (CPI) increase for the year, although unused CPI increases not met may be carried forward to subsequent years. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 81 Contributions: As a condition of participation in the Systems, employers and/or employees are required to contribute certain percentages of salary and wages as authorized by statute and specified by the URS Board. Contributions are actuarially determined as an amount that, when combined with employee contributions (where applicable) is expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded actuarial accrued liability. Contributions rates as of June 30, 2021 are as follows: Utah Retirement Systems Employee Paid Paid by Employer for Employee Employer Contribution Rates Employer Rate for 401(k) Plan Contributory System 11 - Local Governmental Division Tier 1 N/A 6.00 % 14.46 %N/A 111- Local Governmental Division Tier 2 N/A N/A 15.80 % 0.89 % Noncontributory System 15 - Local Governmental Division Tier 1 N/A N/A 18.47 %N/A Public Safety Retirement System 44 - Other Division A Noncontributory Tier 1 N/A N/A 46.71 %N/A 122 - Other Division A Contributory Tier 2 N/A 2.27 % 38.28 % 0.74 % Firefighters System 32 - Division B Tier 1 N/A 16.71 % 7.24 %N/A 132 - Division B Tier 2 N/A 2.27 % 14.08 %N/A Tier 2 DC Only 211 - Local Government N/A N/A 6.69 % 10.00 % 222 - Public Safety N/A N/A 24.28 % 14.00 % 232 - Firefighters N/A N/A 0.08 % 14.00 % Tier 2 rates include a statutory required contribution to finance the unfunded actuarial accrued liability of the Tier 1 plans. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 82 For fiscal year ended June 30, 2021, the employer and employee contributions to the Systems were as follows: Employee Contributions System Employer Contributions paid by Employer Noncontributory System $ 14,211,603 N/A Contributory System 230,348 95,579 Public Safety System 12,550,149 — Firefighters System 1,584,137 3,656,251 Tier 2 Public Employees System 7,581,247 — Tier 2 Public Safety and Firefighter 3,605,014 268,099 Tier 2 DC Only System 1,044,855 N/A Tier 2 DC Public Safety and Firefighter System 453,281 N/A Total Contributions $ 41,260,634 4 1 $ 4,019,929 Contributions reported are the URS Board approved required contributions by System. Contributions in the Tier 2 Systems are used to finance the unfunded liabilities in the Tier 1 Systems. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 83 Combined Pension Assets, Liabilities, Expense, and Deferred Outflows and Inflows of Resources Relating to Pensions At June 30, 2021, the City reported a net pension asset of $37,408,139 and a net pension liability of $65,378,582. Net Pension Asset Net Pension Liability Proportionate Share December 31, 2020 Proportionate Share December 31, 2019 Change (Decrease) Noncontributory System $ — $ 5,095,905 9.93 % 10.01 % (0.07) % Contributory System 1,869,545 $ — 10.43 % 10.93 % (0.50) % Public Safety System — $ 59,354,942 100.00 % 100.00 % — % Firefighters System 35,538,594 $ — 26.38 % 26.65 % (0.27) % Tier 2 Public Employees System — $ 412,448 2.87 % 2.84 % 0.02 % Tier 2 Public Safety and Firefighter System — $ 515,287 5.74 % 5.55 % 0.19 % Total Net Pension Asset/Liability $ 37,408,139 $ 65,378,582 The net pension asset and liability was measured as of December 31, 2020, and the total pension liability used to calculate the net pension asset and liability was determined by an actuarial valuation as of January 1, 2020 and rolled forward using generally accepted actuarial procedures. The proportion of the net pension asset and liability is equal to the ratio of the employer's actual contributions to the Systems during the plan year over the total of all employer contributions to the System during the plan year. For the year ended June 30, 2021, we recognized pension expense of 5,921,379. At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 84 Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 11,010,928 $ 1,425,371 Changes in assumptions 4,528,031 894,255 Net difference between projected and actual earnings on pension plan investments — 84,020,199 Changes in proportion and differences between contributions and proportionate share of contributions 786,372 650,851 Contributions subsequent to the measurement date 20,615,149 — Total $ 36,940,480 $ 86,990,676 There is $20,615,149 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (19,812,196) 2022 (9,536,650) 2023 (28,945,390) 2024 (13,497,238) 2025 168,442 Thereafter $ 957,687 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 85 Noncontributory System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2021, recognized pension expense of $4,149,286. At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 6,836,516 $ — Changes in assumptions — 666,573 Net difference between projected and actual earnings on pension plan investments — 37,210,600 Changes in proportion and differences between contributions and proportionate share of contributions — 647,450 Contributions subsequent to the measurement date 7,052,979 — Total $ 13,889,495 $ 38,524,623 There is $7,052,979 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (8,644,936) 2022 (3,905,823) 2023 (12,968,334) 2024 (6,169,014) 2025 — Thereafter $ — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 86 Contributory System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2021, recognized pension expense of ($953,680). At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ — $ — Changes in assumptions — — Net difference between projected and actual earnings on pension plan investments — — 3,171,605 Changes in proportion and differences between contributions and proportionate share of contributions — — Contributions subsequent to the measurement date 110,067 — Total $ 110,067 $ 3,171,605 There is $110,067 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (1,014,399) 2022 (486,002) 2023 (1,153,941) 2024 (517,263) 2025 — Thereafter $ — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 87 Public Safety System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2021, recognized pension expense of $6,868,825. At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 2,337,674 $ — Changes in assumptions — 157,471 Net difference between projected and actual earnings on pension plan investments — 21,848,343 Changes in proportion and differences between contributions and proportionate share of contributions — — Contributions subsequent to the measurement date 6,115,527 — Total $ 8,453,201 $ 22,005,814 There is $6,115,527 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (5,524,341) 2022 (2,662,585) 2023 (7,860,244) 2024 (3,620,970) 2025 — Thereafter $ — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 88 Firefighters System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2021, recognized pension expense of ($9,749,035). At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 1,190,633 $ 1,236,346 Changes in assumptions 3,886,588 — Net difference between projected and actual earnings on pension plan investments — 20,254,756 Changes in proportion and differences between contributions and proportionate share of contributions 60,391 3,401 Contributions subsequent to the measurement date 800,758 — Total $ 5,938,370 $ 21,494,503 There is $800,758 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (4,359,687) 2022 (2,318,571) 2023 (6,600,422) 2024 (3,078,211) 2025 — Thereafter $ — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 89 Tier 2 Public Employees System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2021, we recognized pension expense of $4,036,538. At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 379,667 $ 188,861 Changes in assumptions 521,697 15,004 Net difference between projected and actual earnings on pension plan investments — 1,205,588 Changes in proportion and differences between contributions and proportionate share of contributions 627,074 — Contributions subsequent to the measurement date 4,434,095 — Total $ 5,962,533 $ 1,409,453 There is $4,434,095 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (207,291) 2022 (122,585) 2023 (281,484) 2024 (83,131) 2025 139,176 Thereafter $ 674,301 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 90 Tier 2 Public Safety and Firefighter Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2021, recognized pension expense of $1,569,445. At June 30, 2021, we reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 266,438 $ 164 Changes in assumptions 119,746 55,207 Net difference between projected and actual earnings on pension plan investments — 329,307 Changes in proportion and differences between contributions and proportionate share of contributions 98,907 — Contributions subsequent to the measurement date 2,101,723 — Total $ 2,586,814 $ 384,678 There is $2,101,723 reported as deferred outflows of resources related to pensions resulting from contributions made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2020 . These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows (Inflows) of Resources Year ended December 31, 2021 $ (61,542) 2022 (41,084) 2023 (80,965) 2024 (28,650) 2025 29,266 Thereafter $ 283,386 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 91 Actuarial assumptions: The total pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.50 Percent Salary increases 3.25 - 9.75 percent, average, including inflation Investment rate of return 6.95 percent, net of pension plan investment expenses, including inflation. Mortality rates were adopted from an actuarial experience study dated January 1, 2020. The retired mortality tables are developed using URS retiree experience and are based upon gender, occupation, and age as appropriate with projected improvement using 80% of the ultimate rates from the MP-2019 improvement assumption using a base year of 2020. The mortality assumption for active members is the PUB-2010 Employees Mortality Table for public employees, teachers, and public safety members, respectively. The actuarial assumptions used in the January 1, 2020, valuation were based on the results of an actuarial experience study for the five year period ending December 31, 2019. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate rages 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. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Expected Return Arithmetic Basis Asset class Target Asset Allocation Real Return Arithmetic Basis Long-Term expected portfolio real rate of return Equity securities 37.00 % 6.30 % 2.33 % Debt securities 20.00 % — % — % Real assets 15.00 % 6.19 % 0.93 % Private equity 12.00 % 9.50 % 1.14 % Absolute return 16.00 % 2.75 % 0.44 % Cash and cash equivalents — % — % — % Totals 100% 4.84 % Inflation 2.50 % Expected arithmetic nominal return 7.34 % SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 92 The 6.95% assumed investment rate of return in comprised of an inflation rate of 2.5%, a real return of 4.45% that is net of investment expense. Discount rate: The discount rate used to measure the total pension liability was 6.95%. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that contributions from all participating employers will be made a contractually required rates that are actuarially determined and certified by the URS Board. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefits payments of current active and inactive employees. 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. The discount rate does not use the Municipal Bond Index Rate. The discount rate remained unchanged at 6.95%. Sensitivity of the proportionate share of the net pension asset and liability to changes in the discount rate: The following presents the proportionate share of the net pension liability calculated using the discount rate of 6.95%, as well as what the proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.95%) or 1- percentage-point higher (7.95%) than the current rate: 1% Decrease Discount Rate 1% Increase System 5.95%6.95%7.95% Noncontributory System $ 88,347,888 $ 5,095,905 $ (64,307,142) Contributory System 2,780,613 (1,869,545) (5,795,821) Public Safety System 115,335,508 59,354,942 13,382,007 Firefighters System 4,665,711 (35,538,594) (68,540,513) Tier 2 Public Employees System 6,940,266 412,448 (4,581,160) Tier 2 Public Safety and Firefighter 2,429,407 515,287 (1,011,346) Total $ 220,499,393 $ 27,970,443 $ (130,853,975) SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 93 SALT LAKE CITY PUBLIC SAFETY FUND Total pension liability 2021 Service Cost $ 6,566,784 Interest (on the Total Pension Liability) 27,597,013 Changes of benefit terms — Difference between expected and actual experience 3,340,606 Changes of assumptions (242,821) Benefit payments, including refunds of employee contributions (21,546,165) Net change in total pension liability 15,715,417 Total pension liability – beginning 404,569,021 Total pension liability – ending $ 420,284,438 Plan fiduciary net position Contributions – employer $ 15,608,224 Contributions – employee 88,759 Court Fees and Fire Insurance Tax — Net investment income 40,543,142 Benefit payments, including refunds of employee contributions (21,546,165) Administrative Expense (129,919) Other 1,175,267 Net change in plan fiduciary net position 35,739,308 Plan fiduciary net position – beginning 325,190,188 Plan fiduciary net position – ending $ 360,929,496 Net pension liability $ 59,354,942 Plan fiduciary net position as a percentage of the total pension liability 85.90 % Covered payroll $ 28,519,448 Net pension liability as a percentage of covered payroll 208.1 % Pension plan fiduciary net position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued URS financial report. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 94 13.Defined Contribution Savings Plans The Defined Contribution Savings Plans are administered by the Utah Retirement System Board and are generally supplemental plan to the basic retirement benefits of the Retirement Systems, but may also be used as a primary retirement plan. These plans are voluntary tax-advantaged retirement savings programs authorized under sections 401(k), 457(b) and 408 of the Internal Revenue code. The City participates in the following Defined Contribution Savings Plans with Utah Retirement Systems: •401(k) Plan •457(b) Plan •Roth IRA Plan •Traditional IRA Plan Employee and employer contributions to the Utah Retire Defined Contribution Savings Plans for fiscal year ended June 30, were as follows: 2021 2020 2019 401(k) Plan Employer Contributions $ 2,893,832 $ 2,547,180 $ 2,286,587 Employee Contributions 3,767,791 3,686,187 3,195,637 457 Plan Employer Contributions — — — Employee Contributions 2,852,393 2,818,171 2,616,278 Roth IRA Plan Employer Contributions N/A N/A N/A Employee Contributions 1,380,588 1,239,825 1,016,324 Traditional IRA Employer Contributions N/A N/A N/A Employee Contributions $ 54,063 $ 47,704 $ 39,711 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 95 14. Other Post Employment Benefits Plan Description The Library provides post-employment health care benefits through a single employer defined benefit plan. The benefits are provided through the Library to certain employees who have retired from the System prior to July 1, 2018. The benefits, benefit levels, employee and employer contributions are governed by Library policy and can be amended or terminated at any time. The Library determines whether these benefits will be funded during the annual budget process. The plan is not accounted for as a trust fund since an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the Library’s general fund. Funding Policy The Library currently pays for post-employment benefits on a “pay-as-you-go” basis. Actuarial Assumptions The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Measurement Date June 30, 2021 Actuarial Valuation Date June 30, 2021 Discount Rate 1.92 % Prior year discount rate 2.45 % The discount rate was based on the June 30, 2021, Fidelity General Obligation AA 20-Year Yield. Mortality rates for active employees were based on the RPH-2014 Employee Mortality Tale, Generational with Projection Scale MP-2018 for males or females, as appropriate. Mortality rates for retirees/disabled employees were based on the RPH-2014 Healthy Annuitant and Disabled Retirees Mortality Table, Generational with Projection Scale MP -2017 for males or females, as appropriate. Inactive employees currently receiving benefit payments 20 Inactive employees entitled to but not yet receiving benefit payments — Active employees — Total 20 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 96 Changes in Total OPEB Liability Balance at June 30, 2020 $ 251,305 Changes for the Year Interest 5,876 Differences between expected and actual experience (1,113) Change in Assumptions/Inputs 9,647 Benefit Payments (22,900) Net Changes (8,490) Balance at June 30, 2021 $ 242,815 Sensitivity of the Total OPEB Liability 1% Decrease No Change 1% Increase (2.13%)(3.13%)(4.13%) Discount Rate $ 261,492 $ 242,815 $ 226,512 Healthcare Cost Trend Rates 223,683 242,815 264,411 OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB OPEB Expense Interest on liabilities $ 5,876 Difference between actual and expected experience (1,113) Changes in Assumptions/Inputs 9,647 Total OPEB expense $ 14,410 There are no deferred outflows or deferred inflows of resources at June 30, 2021. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 97 15. Commitments and Contingencies Commitments for major construction, capital improvement and other projects at June 30, 2021 are shown below. General Fund $ 18,462,381 Special-revenue funds 15,698,566 Capital Projects Fund 38,630,517 Enterprise funds 1,739,942,986 Internal service funds 4,446,378 Total $ 1,817,180,828 The City is lessee under a number of operating lease agreements, one of which is non- cancellable, involving land, buildings and equipment. Rent expense during the fiscal year ended June 30, 2021 approximated $1,227,807 of which $927,669 was related to proprietary funds. The schedule of future minimum rental payments required under non-cancellable operating leases as of June 30, 2021 is shown below. General Fund 2022 $ 312,558 2023 312,558 2024 312,558 2025 312,558 2026 312,558 2027-2031 1,562,790 2032-2034 937,674 Total $ 4,063,254 There are sundry claims or lawsuits that have been filed against the City or its employees involving tort and civil rights matters. The City has evaluated those claims and based upon the advice of counsel, has recorded an estimated claims payable liability in the Governmental Immunity Fund (an internal service fund) to cover any expected losses. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 98 Changes in the reported liability carried in the Governmental Immunity Fund since July 1, resulted in the changes shown in the table below. Current year Beginning of claims and Balance at Estimated fiscal year changes in Claim fiscal year due within liability estimates payments end one year 2019-2020 $ 6,778,000 $ (2,073,477) $ (667,523) $ 4,037,000 $ 1,501,000 2020-2021 $ 4,037,000 $ 4,147,072 $ (369,072) $ 7,815,000 $ 1,981,000 As of June 30, 2021, the Utilities had outstanding commitments for the construction and acquisition of property and equipment. Commitments of the Water Utility totaled $46,265,653, of the Sewer Utility totaled $108,199,417, of the Stormwater Utility totaled $4,908,968, and of the Street Lighting Utility totaled $16,884. Federal Stimulus Grant Funds- In 2021 the City received over $50 million of federal grant money under the CARES Act, the American Rescue Plan Act and the Emergency Rent Assistance Plan to help combat the effects of the COVID 19 pandemic. This resulted in large cash deposits. The corresponding expenditures were not complete as of June 30, 2021 which resulted in presenting the unspent portion as Revenues collected in advance on the current financial statements. It is anticipated that the majority of the expenditures will occur during the next fiscal year. Water Right Purchase - In 2009, the City purchased water rights connected to Big Cottonwood Canyon stream flows from one of its water exchange customers called Big Cottonwood Tanner Ditch Irrigation Company in the amount of $22,764,010. Under this new agreement the City will continue to provide culinary water to the customers of the Big Cottonwood Tanner Ditch Irrigation Company and will provide them with water vouchers which will entitle them to a set amount of water at no charge in return for their ownership in the water rights to the canyon stream. The City also agreed to upgrade the water system to meet current water system standards and to take ownership of the system. The financial statements show the increase in water rights and the value of the system purchased. Revenue collected in advance includes the value of the water vouchers issued in the amount of $9,002,327 long term and $1,022,595 in current liabilities. Litigation- The Utilities are involved in legal proceedings, primarily related to property damages and personal injury arising in the ordinary course of business. Based on the facts currently available, management accrued liabilities totaling $1,935,264, which is the estimated amount of litigation probable to have a negative outcome. Of this potential liability $1,670,264 is Water Fund related, $132,000 is Sewer Fund related, and $133,000 is Stormwater fund related. Of the $1,670,264 related to the Water Fund, $250,000 is related to a potential future environmental remediation of soils contaminated with lead as a result of shooting range activities operated by the Police Mutual Aid Association on property owned by the Water Fund. Multiple parties could be responsible. The current estimated loss could vary depending on future decisions related to the possible remediation, regulatory requirements, and cost-sharing by other responsible parties, if any. The SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 99 Utilities are currently investigating the extent of lead contamination and potential remediation alternatives. There are various claims pending against the Airport from third parties. In anticipation of opening Phase I of the TRP and NCP, claims arose related to inefficiencies and lost productivity due to numerous change orders and additional work. During FY21, this claim was settled. In the opinion of legal counsel for the Airport and Airport management, all other claims are not likely to have a material adverse impact on the Airport's financial statements. Environmental Remediation- In 2003 the Utilities began an environmental remediation process on the Sewer’s Northwest Oil Drain (NWOD) Canal under a US Environmental Protection Agency (US EPA) administrative order and with a cost-sharing agreement between the Utilities, British Petroleum (BP), and Chevron. The two oil companies contribute 2/3 of the project costs of the remediation, and the Utilities contribute 1/3. As of June 30, 2021 the oil companies have contributed approximately $21.8 million; the Utilities have capitalized as construction in progress a total of $33,497,580 in remediation costs. The Utilities estimate that the remaining remediation activities will generate about $200,000 in contributions from the oil companies, will cost about $300,000, and will continue through fiscal year 2021. The Utilities have budgeted accordingly. The Utilities is the owner of many acres of property in Parley’s Canyon that are held for watershed purposes. Located within this area was an active shooting range that was operated by the Police Mutual Aid Association (“PMAA”) for the past 50 years. PMAA recently decided to stop operating the shooting range and control of the property has been turned back to the Utilities. An environmental assessment has been started to determine the extent of lead present at the site. The extent and manner of clean-up of the lead is not yet known, but it is anticipated that impacted soils will be stabilized and removed for proper disposal. There are multiple potentially responsible parties who operated and used the shooting range who may be required to share in the cost of the ultimate clean-up of the site. Currently, the estimate of professional fees and basic efforts to clean-up the site is $1,500,000. The clean-up costs are anticipated to be divided between the Water Enterprise Fund and Salt Lake City’s General Fund, with the General Fund paying approximately 85% of the cost. This estimate could change depending on future decisions related to the clean-up along with the value of contributions toward the clean-up received from third parties. Salt Lake City is entering into a Voluntary Cleanup Program through the Utah Department of Environmental Quality to conduct the remediation. Airport- At June 30, 2021, the Airport was committed to contractors and vendors for $604,101,664 in conjunction with Airport construction programs. In the normal course of operations, the City receives grant funds from various Federal Agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement that may arise as the result of audits of grant funds is not believed to be material. RDA- As an Agency of the City, the RDA routinely enters into Taxing Entity Contracts (TEC) and Tax Increment Reimbursement contracts (TIR). The Agency has no taxing authority, therefore enters into TEC agreements to receive Tax Increment as revenue. For the Agency, Tax Increment is SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 100 deemed contributed revenues from the various taxing authorities participating in the various Project Area TEC agreements. The Tax Increment received from the City is delineated in the Agency Financial Statements as Transfers in from the City. Tax Increment revenue from all other taxing entities is included non-operating revenues with Grants and Other Contributions. To induce the private sector to participate in the redevelopment of the Project Area, the RDA will often enter into TIR agreements which reimburse the private developer actual costs over a stated period of time. These agreements return tax increment revenues annually to the developers. Currently, the Agency is party to the following TIR agreements. During the year ended June 30, 2002, the Agency entered into a reimbursement agreement with Gateway Associates, a developer of a project located within the Agency’s Depot District Project Area. Under the agreement, the Agency is obligated to repay to the developers, from the tax increment revenues received from the respective projects, up to $16,500,000 plus accrued interest, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. For the years ended June 30, 2021 and 2020, the Agency recorded expenses of $1,371,004 and $1,228,660, respectively. During the year ended June 30, 2007, the Agency entered into a reimbursement agreement with Rio Grande Development, LLC, a developer of a project within the Agency’s Depot District Project Area. Tremonton Hospitality, LLC, dba Urban Suites assumed this agreement through an assignment and assumption agreement signed in June 2016. Under this agreement, the Agency is obligated to repay to the developers, from the tax increment revenues received from the respective project, at the lesser of $2,020,000 or 37.5% of the Project Tax Increment over the reimbursement term, plus accrued interest, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. For the years ended June 30, 2021 and 2020, the Agency recorded expenses of $99,247 and $102,850, respectively. In September 2009, the Agency entered into a reimbursement agreement with Scrap, LLC (Scrap) for a mixed-use housing project located at 850 South 400 West, in the Agency’s Granary District Project Area. The agreement provides a tax increment reimbursement to the Developer for architectural and engineering fees associated with LEED Gold Standard design improvements incorporated into the project. Under the agreement, the Agency is required to pay the Developer a reimbursement cap that is the lesser of 1) a principal amount equal to 50% of the project architectural and engineering expenses; or 2) $450,000. These obligations are subject to the Developer paying property taxes on a timely basis, receipts of certificates of project completion, and other annual reporting duties as defined in the reimbursement agreement. For the years ended June 30, 2021 and 2020, the Agency recorded expenses of $0 and $33,773, respectively. During the year ended June 30, 2010, the Agency entered into a reimbursement agreement with 222 S. Main Investments, LLC, a developer of a project within the Agency’s Central Business District Project Area. Under this agreement, the Agency is obligated to repay to the developers 85% of the tax increment revenues received by the Agency from the respective project up to the lesser of: 1) total SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 101 developer costs less $127,300,000 or 2) $6,000,000, plus accrued interest of 5.9%, over the reimbursement term, which expires in January 2031. These obligations are also subject to the developers paying property taxes on a timely basis, the receipt of certificates of project completion, and annual certificates of compliance with the other terms of the reimbursement agreement. For the years ended June 30, 2021 and 2020, the Agency recorded expenses of $626,876 and $650,183, respectively. During the year ended June 30, 2015, the Agency entered into a reimbursement agreement with Liberty Gateway Properties, L.C. (Liberty) for a mixed-use housing project located on 500 West between South Temple and 100 South, in the Agency’s Depot District Project Area. The agreement provides a tax increment reimbursement to the Developer for costs incurred in connection with the associated parking garage component of the project from the tax increment created from the property. Under the agreement, the Agency will pay the Developer a reimbursement amount equal to the sum of 1) $3,000 multiplied by the actual number of eligible At-Grade Structured Parking Stalls (up to a maximum of 48 stalls), plus 2) $6,000 multiplied by the actual number of Below-Grade Structured Parking Stalls (up to a maximum of 112), together with simple interest accrued thereon. The maximum that will be reimbursed is $816,000. The reimbursement term is for the tax years 2015 through 2022. The Agency will make an annual payment to the Developer during the reimbursement term in an amount equal to 72% of the tax increment for such year actually received by the Agency until the earlier to occur of 1) Developer has received an amount equal to the reimbursement amount or 2) the expiration of the reimbursement term. These obligations are subject to the Developer paying property taxes on a timely basis, receipts of certificates of project completion, and other annual reporting duties as defined in the reimbursement agreement. For the years ended June 30, 2021 and 2020, the Agency recorded expenses of $133,351 and $67,535, respectively. During the year ended June 30, 2019, the Agency entered into a reimbursement agreement with Stadler US, Inc, a developer of a project located within the Agency’s Stadler Rail Project Area. Under the agreement, the Agency is obligated to reimburse the developers, from the tax increment revenues received from the respective projects, up to $9,610,721 over a twenty (20) year term, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. For the years ended June 30, 2021 and 2020 the Agency did not make any payments due to Stadler's failure to submit required documentation. During the year ended June 30, 2020, the Agency entered into a reimbursement agreement with NWQ, LLC, a developer of a project located within the Agency’s Northwest Quadrant Project Area. Under the agreement, the Agency is obligated to reimburse the developers, from the tax increment revenues received from the respective projects, up to $28,000,000 over a nineteen (19) year term, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. The first year of reimbursement is anticipated to be for the 2020 tax year with the expense recorded in the fiscal year ending June 30, 2021. No payment was made for the year ended June 30, 2021 due to NWQ's failure to submit documentation. During the year ended June 30, 2020, the Agency entered into a reimbursement agreement with West Quarter Residential I, LLC, a developer of a project located within the Agency’s Block 67 Project Area. Under the agreement, the Agency is obligated to reimburse the developers, from the tax increment SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 102 revenues received from the respective projects, up to $15,000,000 over a twenty (20) year term as a pass-through from Salt Lake County for transportation funds from the State of Utah, but not in excess of the tax increment revenues received from the individual projects. These obligations are also subject to the developers paying property taxes on a timely basis and the receipts of certificates of project completion. The first year of reimbursement is anticipated to be for the 2022 tax year. 16. Related Party Transactions To meet the water supply needs of Salt Lake City and Sandy through the year 2035, the Metropolitan Water District Board, a related entity, completed a new treatment plant. The new treatment plant is located at the Point of the Mountain in Draper City and includes a conveyance pipeline connecting the new plant to the District’s Little Cottonwood Water Treatment Plant. The cost of the treatment plant and conveyance system totaled over $300 million, and the Utilities’ share of the cost is over $200 million. The 70 million gallon per day plant is funded by an assessment paid by the two cities. Salt Lake City has 62.5 percent of the capacity and cost assessment in the new treatment plant. Below are the future minimum payments due from the Water Utility through 2035: Year Ending June 30, 2022 $ 7,021,892 2023 7,021,892 2024 7,021,892 2025 7,021,892 2026 7,021,892 2027-2031 35,109,460 2032-2035 24,576,622 Total $ 94,795,542 17. Joint Venture The City is a member of a joint venture known as the City/County landfill in which the City and Salt Lake County (through its Municipal Affairs Fund and the remainder of the County) each have fifty percent interest. The joint venture was created to provide solid waste management and disposal services. The City’s equity in the net resources of the landfill at June 30, 2021, was $20,949,773. This equity interest is shown in the City’s Refuse Collection Fund (an enterprise fund). The inter-local cooperation agreement created the joint venture and established the Salt Lake Valley Solid Waste Management Council (the Council). The Council consists of five members: the County’s Mayor, or a designee; the City's Mayor, or a designee; one elected official, or a designee designated by the Salt Lake County Council of Governments, who is not an official or an employee of the County or the City but whose municipality is served by the Facility; one member of the Salt Lake Valley Board of Health or the Director of Health as designated by such Board, or a designee; and one member with technical expertise in the field of solid waste management, said expert member to be selected by the council members who represent the City, the County, and the Salt Lake Valley Board of Health. The Council’s responsibilities are to recommend: (1) appointment or removal of Director; (2) SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 103 plan, establish and approve all construction projects for solid waste operations; and (3) determine best use of facility; (4) establish public policy for all major operations or activities; (5) prepare an annual operating budget that includes expenditures and the means of financing them. All actions by the Council are recommendations to the City Council and the County Commission, which have equal power to review, ratify, modify, or veto any action submitted by the Council. The Council has developed a master plan designed to comply with environmental standards established by the federal government and to meet accounting and financial reporting requirements under GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Post- closure Care Costs. In compliance with this standard, the Council has established user fees sufficient to cover all operating costs, including post-closure costs that have been mandated by the federal government. The estimated liability for closure and post closure care was established under the requirement set by the State of Utah’s Department of Environmental Quality (DEQ) and is based on an engineering study completed during November 2016. The estimate totals $11.5 million at Salt Lake County’s fiscal year end and is based on 30.1% of capacity currently filled. The Landfill will recognize the remaining estimated cost of closure and post-closure care of $27,017,311 as the remaining capacity is filled. The total capacity was revised in 2016 to reflect increased allowable height, slope and new technology. The landfill is expected to be filled to capacity in the year 2082. The expenses in 2020 were $480,880. Actual ongoing costs may differ due to inflation, changes in technology, or change in regulations. In November 1996, the Environmental Protection Agency (EPA) issued final regulations regarding financial assurance provisions for local government owners and operators of municipal solid waste landfills. The regulations allow compliance with financial assurance requirements by meeting a financial test or by alternate methods. The financial test method is available only to local governments who can demonstrate that they are capable of meeting their financial obligations relating to their landfills and is sometimes referred to as “self-insurance.” The alternate methods generally involve third-party financial instruments such as trust funds, letters of credit, or insurance policies. The financial assurance requirement is the estimated total current costs of closure and post-closure care of $38,534,253 at December 31, 2020. Although the County and Salt Lake City satisfy the financial test coverage and the financial assurance requirement (therefore, an alternate method is not necessary), the Landfill makes annual contributions to a trust account to finance the estimated liability for landfill closure and post- closure care costs. At December 31, 2020 the Landfill had invested $11,516,942 in a trust account with the Public Treasurers’ Investment Fund. The owners are required to submit documentation of financial assurance to the Utah Department of Environmental Quality demonstrating that they meet the financial test at the close of each fiscal year. In the event the owners no longer meet the requirements of the financial test, they shall, within 210 days following the close of their fiscal years, obtain alternative financial assurance for total current costs of landfill closure and post-closure care that exceed 43% of the owners’ total annual revenue. For the year ended June 30, 2021, the City paid the landfill approximately $2,059,544. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 104 in user fees. Separately audited financial statements for the City/County landfill may be obtained from the Executive Director or Fiscal Manager, Salt Lake Valley Solid Waste Management Facility, 6030 West California Avenue, Salt Lake City, Utah 84104. The City has 50% ownership interest in the Sugarhouse House Park Authority. Salt Lake County owns the remaining 50% interest. The Sugar House Park Authority, created in 1957, maintains and improves the land known as Sugarhouse Park which includes 116 acres of land with a historical cost of $112,500. The City’s investment in the Sugar House Park Authority as of December 31, 2020 totaled $929,006, which has been included in governmental activity investment in joint ventures in the government-wide statement of net position. Of the total investment $784,520 is related to capital assets. The Sugar House Park Authority is governed by a Board of Trustees consisting of nine members. The City and the County each appoint one member. The other seven members are appointed jointly by the City and County Trustees. The City provides water to the park for a fee and the county is contracted to provide maintenance services and provide for daily management, operation and maintenance of the park. Separately audited statements may be obtained from the Sugar House Park Authority, 6332 S. Airport Road, West Jordan, Utah, 84084. 18. Recent Accounting Pronouncements Newly Issued Accounting Pronouncements In response to the difficulties presented by COVID-19, GASB issued Statement No. 95 which postponed the effective date of certain authoritative guidance. Below are the statements applicable to Salt Lake City with updated effective dates. In June 2017, the GASB issued Statement No. 87, Leases. The statement is meant to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. Statement 87 is effective for fiscal years beginning after June 15, 2021 and early adoption is encouraged. The City is currently evaluating the impact of this statement on the financial statements when implemented. In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The statement is meant to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 105 commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The City is currently evaluating the impact of this statement on the financial statements when implemented. In Jan 2020, the GASB issued Statement No. 92, Omnibus 2020. The statement is meant to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports; reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other post-employment benefit (OPEB) plan; the applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Post-employment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for post-employment benefits; the applicability of certain requirements of Statement No. 84, Fiduciary Activities, to post-employment benefit arrangements; measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition; reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers; reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature; terminology used to refer to derivative instruments. The City is currently evaluating the impact of this statement on the financial statements when implemented. In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. The statement is meant to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other post-employment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The City is currently evaluating the impact of this statement on the financial statements when implemented. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 106 19. Subsequent Events The following events occurred subsequent to June 30, 2021: On August 5, 2021 the Airport issued $776,928,000 of Series 2021A (AMT), and $127,645,000 of Series 2021B (Non-AMT) bonds. The proceeds of the bonds are being used to finance portions of the Terminal Redevelopment Program and the North Concourse Program. These two redevelopment programs are referred to as the New SLC. The Airport repaid the full amount of the outstanding line of credit balance in August 2021 from bond proceeds from this latest issuance. On September 7, 2021, the Utilities settled a claim for $250,000 more than was originally estimated. The Utilities determined that this settlement is a Type 1 subsequent event, and accordingly, the additional amount was recognized as an administrative expense and a liability as of June 30, 2021. The Utilities allocated the $250,000 between the Water Utility, Sewer Utility and Stormwater Utility: $150,000, $67,000, and $33,000; respectively. On November 30, 2021 the City issued $20,660,000 of GO Series 2021A bonds. The proceeds of the bonds are being used for street reconstruction. On December 15, 2021 the City issued $15,045,000 of Sales Tax Refunding bonds. The proceeds of the bonds are being used to refund Sales Tax Bonds Series 2013B and LBA Bond Series 2013A and 2014A. Subsequent to year-end, the City continues to be impacted by the Coronavirus pandemic (COVID-19), which has significantly increased risk and uncertainties in the global economy including the community in which the City operates. The City is closely and continuously monitoring the pandemic, its effects on the organization and the community, and the financial impact on the City. The City received a grant of approximately $12 million in Coronavirus Aid, Relief, and Economic Security (CARES) Act Funding from the Federal Government which will continue to be used in fiscal year 2022 to help offset the impacts of COVID-19. Additionally, the Airport, a component of the City, received $82.5 million in CARES Act Funding which will be used to help offset the loss of revenue in landside and terminal concession revenue. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2021 107 Required Supplementary Information 108 SALT LAKE CITY CORPORATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year ended June 30, 2021 Actual (GAAP basis) Adjustment to budgetary basis (Note to RSI 1) Actual on budgetary basis (non-GAAP) Budgeted Amounts Original Budget Final Budget Variance Revenues: General property taxes $ 113,495,125 $ — $ 113,495,125 $ 112,927,349 $ 112,927,349 $ 567,776 Sales, use and excise taxes 122,654,953 — 122,654,953 100,797,099 100,797,099 21,857,854 Franchise taxes 23,952,168 — 23,952,168 26,812,125 26,812,125 (2,859,957) Licenses 11,418,021 — 11,418,021 13,696,326 13,696,326 (2,278,305) Permits 25,004,393 — 25,004,393 14,863,916 15,018,142 9,986,251 Fines and forfeitures 1,837,591 — 1,837,591 2,238,848 2,238,848 (401,257) Interest 1,141,861 — 1,141,861 1,900,682 1,900,682 (758,821) Intergovernmental 4,781,753 — 4,781,753 4,444,400 4,722,533 59,220 Interfund service charges 20,971,348 — 20,971,348 20,281,706 20,281,706 689,642 Parking meter 1,915,888 — 1,915,888 3,347,986 3,432,962 (1,517,074) Parking ticket 1,701,881 — 1,701,881 1,700,000 1,700,000 1,881 Charges for services 4,026,186 — 4,026,186 3,939,022 4,129,301 (103,115) Rental and other income 816,715 — 816,715 489,047 489,047 327,668 Transfers In — — — 9,750,600 8,830,607 (8,830,607) Miscellaneous 2,800,718 — 2,800,718 4,055,277 4,417,419 (1,616,701) Total revenues 336,518,601 — 336,518,601 321,244,383 321,394,146 15,124,455 Expenditures: Current: City Council 3,910,937 460,731 4,371,668 4,226,075 4,595,754 224,086 Mayor 3,495,653 325,577 3,821,230 3,883,065 3,934,960 113,730 City Attorney 6,840,902 195,924 7,036,826 7,123,638 7,745,704 708,878 Finance 7,872,632 521,342 8,393,974 8,387,673 9,110,691 716,717 Fire 40,360,501 545,950 40,906,451 42,737,520 40,949,341 42,890 Combined Emergency Services 7,557,911 165,523 7,723,434 8,260,571 7,829,550 106,116 Police 80,751,205 1,240,349 81,991,554 79,097,332 83,769,506 1,777,952 Community and Neighborhoods 23,616,595 1,262,456 24,879,051 24,318,570 25,526,114 647,063 Economic Development 2,243,608 13,365 2,256,973 2,388,562 2,461,783 204,810 Justice Court 4,340,743 68,344 4,409,087 4,726,866 4,779,541 370,454 Human Resource 2,576,008 84,575 2,660,583 2,629,008 2,736,633 76,050 Public Services 44,240,773 4,121,694 48,362,467 46,575,226 50,287,788 1,925,321 Nondepartmental 37,572,779 3,864,102 41,436,881 42,894,458 57,403,202 15,966,321 Interest and other fiscal charges — — — 350,000 350,000 350,000 Total expenditures 265,380,247 12,869,932 278,250,179 277,598,564 301,480,567 23,230,388 Revenues over (under) expenditures 71,138,354 (12,869,932) 58,268,422 43,645,819 19,913,579 38,354,843 Other financing sources (uses): Proceeds from sale of property 38,996 — 38,996 — — 38,996 Transfers in 8,447,676 — 8,447,676 9,750,600 8,830,607 (382,931) Transfers out (52,581,232) — (52,581,232) (48,531,439) (52,224,445) (356,787) Total other financing sources (uses): (44,094,560) — (44,094,560) (38,780,839) (43,393,838) (700,722) Net Change in Fund Balance 27,043,794 (12,869,932) 14,173,862 4,864,980 (23,480,259) 37,654,121 Fund Balance July 1, 2020 89,242,176 (1,308,571) 41,399,108 36,328,229 18,506,673 22,892,435 Prior year encumbrances appropriated in current year — 9,671,834 9,671,834 9,671,834 9,671,834 — Prior period compensated absences — (191,701) (191,701) — — — Fund Balance June 30, 2021 $ 116,285,970 $ (4,698,370) $ 65,053,103 $ 50,865,043 $ 4,698,248 $ 60,546,556 109 SALT LAKE CITY CORPORATION SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS As of the Year Ended December 31, 2020 Last 10 Fiscal Years * Noncontributory System 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 9.93 % 10.01 % 10.09 % 10.16 % 10.50 % 10.40 % 10.30 % Proportionate share of the net pension liability $ 5,095,905 $ 37,731,456 $ 74,328,318 $ 44,516,859 $ 67,230,056 $ 58,910,626 $ 44,746,492 Covered payroll 77,864,031 79,785,630 81,245,865 82,604,948 86,964,302 85,816,435 86,096,547 Proportionate share of the net pension liability as a percentage of its covered payroll 6.54 % 47.29 % 91.49 % 53.89 % 77.30 % 68.60 % 52.00 % Plan fiduciary net position as a percentage of the total pension liability 99.20 % 93.70 % 87.00 % 91.90 % 87.30 % 87.80 % 90.20 % Contributory Retirement System 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 10.43 % 10.93 % 12.05 % 13.90 % 14.20 % 9.50 % 9.20 % Proportionate share of the net pension liability $ (1,869,545) $ 716,348 $ 4,889,920 $ 1,131,317 $ 4,650,788 $ 6,662,216 $ 2,659,357 Covered payroll 1,720,735 1,958,697 2,255,421 2,821,107 3,401,048 4,038,849 4,934,504 Proportionate share of the net pension liability as a percentage of its covered payroll (108.65) % 36.57 % 216.80 % 40.10 % 136.80 % 165.00 % 53.90 % Plan fiduciary net position as a percentage of the total pension liability 103.90 % 98.60 % 91.20 % 98.20 % 92.90 % 85.70 % 94.00 % * In accordance with paragraph 81.a of GASB 68, the City is required to disclose a 10 year history in this table. However, until a full 10 year trend is compiled, the City will present information for those years for which information is available. 110 SALT LAKE CITY CORPORATION SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS As of the Year Ended December 31, 2020 Last 10 Fiscal Years * Public Safety System 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % Proportionate share of the net pension liability $59,354,942 $79,378,833 $103,028,051 $86,194,634 $91,688,895 $85,106,335 $72,876,185 Covered payroll 28,690,327 29,303,158 29,710,645 29,999,431 31,087,336 28,581,857 28,254,323 Proportionate share of the net pension liability as a percentage of its covered payroll 206.88 % 270.89 % 346.77 % 287.32 % 294.90 % 297.80 % 257.90 % Plan fiduciary net position as a percentage of the total pension liability 85.90 % 80.40 % 73.70 % 77.30 % 74.00 % 73.90 % 76.70 % Firefighters System 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability (asset) 26.38 % 26.66 % 26.50 % 25.40 % 26.00 % 25.80 % 25.70 % Proportionate share of the net pension liability (asset)$ (35,538,594) $ (16,662,414) $ 10,708,746 $ (5,697,589) $ 3,844,181 $ 4,382,293 $ (2,831,091) Covered payroll 21,900,906 21,916,972 21,677,933 21,246,778 22,462,865 21,718,863 21,493,020 Proportionate share of the net pension liability (asset) as a percentage of its covered payroll (162.27) % (76.03) % 49.40 % (26.82) % 17.11 % 20.20 % (13.20) % Plan fiduciary net position as a percentage of the total pension liability 112.00 % 105.80 % 96.10 % 102.30 % 98.40 % 98.10 % 101.30 % * In accordance with paragraph 81.a of GASB 68, the City is required to disclose a 10 year history in this table. However, until a full 10 year trend is compiled, the City will present information for those years for which information is available. 111 SALT LAKE CITY CORPORATION SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS As of the Year Ended December 31, 2020 Last 10 Fiscal Years * Tier 2 Public Employees System 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability (asset) 2.87 % 2.84 % 2.74 % 2.70 % 2.70 % 2.60 % 2.50 % Proportionate share of the net pension liability (asset)$ 412,448 $ 639,365 $ 1,173,741 $ 237,701 $ 305,635 $ (5,627) $ (75,674) Covered payroll 45,852,498 39,505,904 31,993,906 26,365,818 22,470,077 16,654,990 12,253,110 Proportionate share of the net pension liability (asset) as a percentage of its covered payroll 0.90 % 1.62 % 3.67 % 0.90 % 1.40 % — % (0.60) % Plan fiduciary net position as a percentage of the total pension liability 98.30 % 96.50 % 90.80 % 97.40 % 95.10 % 100.20 % 103.50 % Tier 2 Public Safety and Firefighter System 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability (asset) 5.74 % 5.55 % 5.18 % 5.18 % 5.10 % 4.90 % 4.70 % Proportionate share of the net pension liability (asset)$ 515,287 $ 521,868 $ 129,911 $ (59,931) $ (44,337) $ (70,899) $ (69,679) Covered payroll 11,485,493 9,144,399 6,932,409 5,466,404 4,220,190 2,887,833 1,947,856 Proportionate share of the net pension liability (asset) as a percentage of its covered payroll 4.49 % 5.71 % 1.87 % (1.10) % 1.10 % (2.50) % (3.60) % Plan fiduciary net position as a percentage of the total pension liability 93.10 % 89.60 % 95.60 % 103.00 % 103.60 % 110.70 % 120.50 % * In accordance with paragraph 81.a of GASB 68, the City is required to disclose a 10 year history in this table. However, until a full 10 year trend is compiled, the City will present information for those years for which information is available. 112 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2021 Last 10 Fiscal Years * Noncontributory System 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 14,211,603 $ 14,468,883 $ 14,784,183 $ 15,587,651 $ 15,203,842 $ 15,620,205 $ 15,813,000 $ 14,799,405 Contributions in relation to the contractually required (14,211,603) (14,468,883) (14,784,183) (15,587,651) (15,203,842) (15,620,205) (15,813,000) (14,799,405) contribution Contribution deficiency — — — — — — — — Covered payroll 77,436,235 78,833,598 80,557,707 84,994,448 82,857,075 85,124,380 86,242,509 86,203,296 Contributions as a percentage of covered payroll ** 18.35 % 18.35 % 18.35 % 18.34 % 18.40 % 18.40 % 18.30 % 17.20 % Contributory Retirement System 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 230,348 $ 269,579 $ 295,509 $ 385,624 $ 440,076 $ 521,065 $ 663,580 $ 678,348 Contributions in relation to the contractually required (230,348) (269,579) (295,509) (385,624) (440,076) (521,065) (663,580) (678,348) contribution Contribution deficiency — — — — — — — — Covered payroll 1,593,017 1,864,326 2,043,653 2,667,741 3,043,441 3,603,536 4,589,128 5,108,117 Contributions as a percentage of covered payroll ** 14.46 % 14.46 % 14.46 % 14.50 %14.5% 14.50 % 14.50 % 13.30 % 113 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2021 Last 10 Fiscal Years * Public Safety System 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 12,550,149 $ 13,455,117 $ 13,599,853 $ 14,249,526 $ 13,983,065 $ 13,373,761 $ 13,142,387 $ 12,367,266 Contributions in relation to the contractually required (12,550,149) (13,455,117) (13,599,853) (14,249,526) (13,983,065) (13,373,761) (13,142,387) (12,367,266) contribution Contribution deficiency — — — — — — — — Covered payroll 27,456,348 29,318,067 29,492,416 30,940,836 30,315,192 28,977,940 28,508,216 27,913,882 Contributions as a percentage of covered payroll ** 45.71 % 45.90 % 46.11 % 46.10 % 46.10 % 46.20 % 46.10 % 44.30 % Firefighters System 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 1,584,137 $ 1,594,213 $ 1,575,638 $ 1,492,942 $ 1,415,652 $ 1,478,858 $ 1,423,828 $ 953,758 Contributions in relation to the contractually required (1,584,137) (1,594,213) (1,575,638) (1,492,942) (1,415,652) (1,478,858) (1,423,828) (953,758) contribution Contribution deficiency — — — — — — — — Covered payroll 22,144,611 22,042,984 21,763,435 22,283,254 21,256,546 21,877,162 21,606,471 21,390,496 Contributions as a percentage of covered payroll ** 7.15 % 7.23 % 7.24 % 6.70 % 6.70 % 6.80 % 6.60 % 4.50 % 114 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2021 Last 10 Fiscal Years * Tier 2 Public Employee System***2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 7,581,247 $ 6,812,120 $ 5,538,150 $ 4,540,799 $ 3,554,282 $ 2,862,396 $ 2,144,571 $ 1,434,751 Contributions in relation to the contractually required (7,581,247) (6,812,120) (5,538,150) (4,540,799) (3,554,282) (2,862,396) (2,144,571) (1,434,751) contribution Contribution deficiency — — — — — — — — Covered payroll 47,983,204 43,501,516 35,640,144 30,052,109 23,838,638 19,200,283 14,354,821 10,255,748 Contributions as a percentage of covered payroll ** 15.80 % 15.66 % 15.54 % 15.10 % 14.90 % 14.90 % 14.90 % 14.00 % Tier 2 Public Safety and Firefighter System***2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 3,605,014 $ 3,079,494 $ 2,273,400 $ 1,700,143 $ 1,268,783 $ 958,067 $ 723,268 $ 494,869 Contributions in relation to the contractually required (3,605,014) (3,079,494) (2,273,400) (1,700,143) (1,268,783) (958,067) (723,268) (494,869) contribution Contribution deficiency — — — — — — — — Covered payroll 11,814,994 10,711,284 8,055,737 6,249,529 4,734,619 3,478,846 2,424,518 1,709,850 Contributions as a percentage of covered payroll ** 30.51 % 28.75 % 28.22 % 27.20 % 26.80 % 27.50 % 29.80 % 28.90 % 115 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2021 Last 10 Fiscal Years * Tier 2 Public Employees DC Only System***2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 1,044,855 $ 839,449 $ 718,595 $ 612,119 $ 469,208 $ 350,234 $ 223,610 $ 99,229 Contributions in relation to the contractually required (1,044,855) (839,449) (718,595) (612,119) (469,208) (350,234) (223,610) (99,229) contribution Contribution deficiency — — — — — — — — Covered payroll 14,939,673 11,951,099 10,299,788 8,817,876 6,802,409 5,235,399 3,327,655 1,778,375 Contributions as a percentage of covered payroll ** 6.99 % 7.02 % 6.98 % 6.94 % 6.90 % 6.70 % 6.70 % 5.60 % Tier 2 Public Safety and Firefighter DC Only System***2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 453,281 $ 389,830 $ 358,354 $ 273,217 $ 167,364 $ 144,511 $ 138,623 $ 66,613 Contributions in relation to the contractually required (453,281) (389,830) (358,354) (273,217) (167,364) (144,511) (138,623) (66,613) contribution Contribution deficiency — — — — — — — — Covered payroll 2,327,822 2,025,004 1,826,747 1,357,040 892,166 738,510 660,215 327,534 Contributions as a percentage of covered payroll ** 19.47 % 19.25 % 19.62 % 20.10 % 18.80 % 19.60 % 21.00 % 20.30 % * Amounts presented were determined as of fiscal year July 1 - June 30. The City is required to prospectively develop this table in future years to show 10-years of information. However, until a full 10 year trend is compiled, the City will present information for those years for which information is available. ** Contributions as a percentage of covered payroll may be different than the Board certified rate due to rounding or other administrative issues. *** Contributions in Tier 2 include an amortization rate to help fund the unfunded liabilities in the Tier 1 systems. Tier 2 systems were created effective July 1, 2011. 116 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2021 Last 10 Fiscal Years * SALT LAKE CITY PUBLIC SAFETY FUND 2021 2020 2019 2018 2017 2016 Actuarially Determined Contribution $ 15,608,224 $ 15,608,919 $ 15,294,371 $ 14,899,169 $ 15,260,367 $ 14,100,050 Contribution in relation to the actuarially determined contribution (15,608,224) (15,608,919) (15,294,371) (14,899,169) (15,260,367) (14,100,050) Contribution deficiency (excess) — — — — — — Covered payroll 28,519,448 28,862,618 29,357,367 30,142,604 28,331,159 28,581,857 Contributions as a percentage of covered payroll 54.7 % 54.1 % 52.1 % 49.43 % 53.86 % 49.33 % * Amounts presented were determined as of fiscal year July 1 - June 30. The City is required to prospectively develop this table in future years to show 10-years of information. However, until a full 10 year trend is compiled, the City will present information for those years for which information is available. 117 SALT LAKE CITY CORPORATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY December 31, 2020 Last 10 Fiscal Years* Schedule of Changes in Net Pension Liability Total pension liability 2020 2019 2018 2017 2016 2015 Service Cost $ 6,566,784 $ 6,664,578 $ 6,763,108 $ 6,704,194 $ 6,316,421 $ 5,963,330 Interest (on the Total Pension Liability) 27,597,013 26,741,309 25,880,971 24,936,718 23,099,095 23,023,003 Difference between expected and actual experience 3,340,606 345,357 533,365 2,143,293 2,814,918 2,062,462 Changes of assumptions (242,821) — — 11,736,690 11,312,611 — Benefit payments, including refunds of employee contributions (21,546,165) (21,233,951) (20,264,462) (18,746,721) (17,682,059) (17,073,847) Net change in total pension liability 15,715,417 12,517,293 12,912,982 26,774,174 25,860,986 13,974,948 Total pension liability – beginning 404,569,021 392,051,728 379,138,746 352,364,572 326,503,586 312,528,638 Total pension liability – ending $ 420,284,438 $ 404,569,021 $ 392,051,728 $ 379,138,746 $ 352,364,572 $ 326,503,586 Plan fiduciary net position Contributions – employer $ 15,608,224 $ 15,608,919 $ 15,294,371 $ 14,899,169 $ 15,260,367 $ 14,100,050 Contributions – employee 88,759 — — — 7,662 198 Net investment income 40,543,142 41,115,915 (1,074,920) 34,603,100 20,441,556 4,177,400 Benefit payments, including refunds of employee contributions (21,546,165) (21,233,951) (20,264,462) (18,746,721) (17,682,059) (17,073,847) Administrative Expense (129,919) (125,839) (134,501) (129,436) (118,082) (115,895) Other 1,175,267 801,467 2,259,077 1,642,323 1,368,982 656,892 Net change in plan fiduciary net position 35,739,308 36,166,511 (3,920,435) 32,268,435 19,278,426 1,744,798 Plan fiduciary net position – beginning 325,190,188 289,023,677 292,944,112 260,675,677 241,397,251 239,652,453 Plan fiduciary net position – ending $ 360,929,496 $ 325,190,188 $ 289,023,677 $ 292,944,112 $ 260,675,677 $ 241,397,251 Net pension liability $ 59,354,942 $ 79,378,833 $ 103,028,051 $ 86,194,634 $ 91,688,895 $ 85,106,335 Plan fiduciary net position as a percentage of the total pension liability 85.9 % 80.4 % 73.7 % 77.3 % 74.0 % 73.9 % Covered payroll 28,519,448 28,862,618 29,357,367 30,142,604 28,331,159 28,581,857 Net pension liability as a percentage of covered payroll 208.1 % 275.0 % 350.9 % 286.0 % 323.6 % 297.8 % Pension plan fiduciary net position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued URS financial report. *Fiscal 2016 is the earliest data the City has for this plan; this schedule will be built prospectively. 118 SALT LAKE CITY CORPORATION COMPONENT UNIT LIBRARY SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS June 30, 2021 Last 10 Fiscal Years * Schedule of Changes in the Total OPEB Liability and Related Ratios 2021 2020 2019 2018 Total OPEB Liability Service Cost $ — $ — $ — $ — Interest 5,876 7,958 9,568 10,234 Changes of benefit terms — — — — Differences between expected and actual experience (1,113) (398) (764) 1,985 Changes in assumptions or other inputs 9,647 1,857 8,215 — Benefit Payments (22,900) (24,750) (29,250) (31,950) Net Change in Total OPEB liability (8,490) (15,333) (12,231) (19,731) Total OPEB Liability - Beginning 251,305 266,638 278,868 298,599 Total OPEB Liability - Ending $ 242,815 $ 251,305 $ 266,637 $ 278,868 Covered Payroll — — — — Total OPEB Liability as a percentage of covered Payroll N/A N/A N/A N/A Notes to Schedule: Changes of Benefit Terms:None Changes of Assumptions:Changes of assumptions and other inputs reflects the effects of changes in the discount rate each period. The following are the discount rates used in each period: 2018 3.62% 2019 3.13% 2020 2.45% 2021 1.92% * In accordance with paragraph 170.a of GASB Statement No. 75, employers will need to disclose a 10-year schedule of changes in the total OPEB liability in their required supplementary information. However, until a full 10-year schedule is compiled, the Library will present information for those years for which information is available. 119 Notes to Required Supplementary Information 120 1. Budgetary-GAAP Reporting Reconciliation The City Council can amend the budget to any extent, provided the budgeted expenditures do not exceed revenues and appropriated fund balance. During the year ended June 30, 2021, General Fund appropriations increased by a net $28,638,937. The first increase was for encumbrances totaling $9,671,834. The fourth budget amendment totaled $13,287,506 and included request four new positions and severance due to the change in administration of $470,000. It also included $2,300,000 for fire apparatus, $950,000 for the Parks Building heating and air conditioning and $2,000,000 for the Leonardo building escalators, The remaining amount included increases in trails projects, economic development loans, housing, facilities repairs and funding for corona virus issues. The fifth and sixth budget amendment increased general fund budgets by $1,350,000 and $2,584,080 respectively. These amounts included funding increases for housing funding, public safety and emergency response to both corona virus and protest issues. Other smaller budget amendments made up the difference. The Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual include comparisons of the legally adopted budget (more fully described in Note 1 of the Notes to the Financial Statements) with actual data on a budgetary basis for the General Fund and proprietary funds that have a budgetary basis that differs from GAAP. Accounting principles applied for purposes of developing data on a budgetary basis differ from those used to present financial statements in conformity with GAAP. The difference in expenditures between GAAP and budgetary basis for the General Fund is reconciled in the following table. General Fund Expenditures Actual on reporting basis Plus encumbrances as of Change in compensation obligations Actual on budgetary basisJune 30, 2021 City Council $ 3,910,937 $ 445,442 $ 15,289 $ 4,371,668 Mayor 3,495,653 314,969 10,608 3,821,230 City Attorney 6,840,902 168,255 27,669 7,036,826 Finance 7,872,632 488,411 32,931 8,393,974 Fire 40,360,501 405,010 140,940 40,906,451 Combined Emergency Services 7,557,911 140,809 24,714 7,723,434 Police 80,751,205 993,631 246,718 81,991,554 Community and Neighborhoods 23,616,595 1,202,224 60,232 24,879,051 Economic Development 2,243,608 8,431 4,934 2,256,973 Justice Courts 4,340,743 45,540 22,804 4,409,087 Human Resources 2,576,008 64,508 20,067 2,660,583 Public Services 44,240,773 3,998,113 123,581 48,362,467 Nondepartmental 37,572,779 3,864,102 — 41,436,881 Total expenditures 265,380,247 12,139,443 730,487 278,250,179 Transfers out 52,581,232 — — 52,581,232 Total $ 317,961,479 $ 12,139,443 $ 730,487 $ 330,831,411 SALT LAKE CITY CORPORATION NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2021 121 2. Post-employment Benefits other than pensions: No assets are accumulated in a trust that meets the criteria in paragraph four of GASB Statement 75. The plan is not accounted for as a trust fund since an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the Library’s general fund. 3. Changes in Assumptions: There were a number of demographic assumptions (e.g. rates of termination, disability, retirement, as well as an updated mortality and salary increase assumption) updated for use in the January 1, 2020 actuarial valuation. These assumption updates were adopted by the Utah State Retirement Board as a result of an Actuarial Experience Study performed for the Utah Retirement Systems. In aggregate, those assumption changes resulted in a $201 million increase in the Total Pension Liability, which is about 0.50% of the Total Pension Liability as of December 31, 2019 for all systems combined. The Actuarial Experience Study report as of December 31, 2019 provides detailed information regarding those assumption changes, which may be accessed online at newsroom.urs.org under the "Retirement Office" column using the "Reports and Stats" tab. SALT LAKE CITY CORPORATION NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2021 122 Supplementary Information 123 Nonmajor Governmental Funds Arts Council Fund - To account for activities of the Arts Council and the purchase or construction of art in City owned facilities. Downtown Economic Development Fund - To account for special assessments which are restricted for downtown projects or improvements. Community Development Operating Fund - To account for monies received by the City as grantee participant in the Community Development Block Grant (CDBG) program, except for CDBG monies to be used for capital improvements which are accounted for in the Capital Projects Fund. Grants Operating Fund - To account for monies received by the City under the Home Program, Emergency Medical Services, Emergency Shelter Grants, Housing Opportunities for Persons with Aids Grants, Urban Area Security Initiative Grants, Metropolitan Medical Response System Grants, Local Emergency Planning Committee Hazardous Materials Grants, Drug Free Communities Grants, Rocky Mountain Drug Trafficking Grants, Justice Assistance Grants, Historic Preservation Grants, and other studies and grants. Street Lighting Fund - To account for the operation of additional street lights, the cost of which is paid by the City and by property owners who benefit from these improvements. Demolition, Weed and Forfeiture Fund - To account for City mandated demolition, weed abatement activities and certain police forfeiture activities. Emergency 911 Dispatch Fund - To account for the City's portion of the County-wide emergency dispatch system. Salt Lake City Donation Fund - This fund was established to account for individual private and intergovernmental contributions held in trust by the City for the Child Abduction Fund, Youth City Programs, Imagination Celebration, Police and Fire Equipment Endowments, Environmental Issues Fund, Police High School Scholarship Fund, Historic Preservation Fund, Mayor’s Sponsorship Fund, and other contributions received to be held for a specific purpose. Special Improvement Debt Service Fund - This fund is used to account for the cost of servicing the debt created by financing the construction of public improvements deemed to benefit the properties against which special assessments are levied. Transportation Fund - In 2018 the State of Utah imposed a statewide 0.25% sales tax to be used for transportation. The state legislature allowed the Cities to receive this funding directly in July 2019. In the fiscal year ended June 30, 2020, the City created a separate governmental transportation fund to collect and spend their portion of the sales to improve transportation within the City. 124 SALT LAKE CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2021 Special Revenue Funds Special Improvement Debt Service Fund Total Nonmajor Governmental Funds ASSETS Cash and cash equivalents Unrestricted $ 68,926,792 $ 120,538 $ 69,047,330 Receivables: Property tax receivable 774,876 — 774,876 Accounts receivable 269,783 139,955 409,738 Loan and other receivables 118,265 — 118,265 Due from other governments 1,990,698 — 1,990,698 Other 1,797 357,140 358,937 Prepaids 69,352 — 69,352 Total assets $ 72,151,563 $ 617,633 $ 72,769,196 LIABILITIES Accounts payable $ 5,783,981 $ 81 $ 5,784,062 Accrued liabilities 196,567 — 196,567 Current deposits and advance rentals 1,429,936 — 1,429,936 Revenues collected in advance 46,428,092 — 46,428,092 Other liabilities payable from restricted assets 269,783 497,095 766,878 Total liabilities 54,108,359 497,176 54,605,535 DEFERRED INFLOWS OF RESOURCES Unavailable grant revenue 5,000 — 5,000 Total liabilities and deferred inflows of resources 54,113,359 497,176 54,610,535 FUND BALANCE Nonspendable 69,352 — 69,352 Restricted 8,138,179 — 8,138,179 Committed 3,546,435 120,457 3,666,892 Assigned 6,284,238 — 6,284,238 Total fund balance 18,038,204 120,457 18,158,661 Total liabilities and fund balance $ 72,151,563 $ 617,633 $ 72,769,196 125 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year ended June 30, 2021 Special Revenue Funds Special Improvement Debt Service Fund Total Nonmajor Governmental Funds Revenues: Sales, use, and excise taxes $ 13,527,491 $ — $ 13,527,491 Assessments 2,368,041 14,878 2,382,919 Fines and forfeitures 196,951 — 196,951 Interest 69,402 17,839 87,241 Intergovernmental 26,753,543 — 26,753,543 Charges for services 1,449,659 — 1,449,659 Contributions 588,722 — 588,722 Rental & Other Income 41,603 — 41,603 Miscellaneous 538,158 — 538,158 Total revenues 45,533,570 32,717 45,566,287 Expenditures: Combined Emergency Services 139,270 — 139,270 Community and Economic Development 26,212,269 — 26,212,269 Public Services 1,711,629 — 1,711,629 Transportation 366,807 — 366,807 Arts Council 1,699,285 — 1,699,285 Debt service: Interest and other fiscal charges — 1,043 1,043 Total expenditures 30,129,260 1,043 30,130,303 Operating income 15,404,310 31,674 15,435,984 Proceeds from sale of property 11,504 — 11,504 Transfers in 1,000,000 — 1,000,000 Transfers out (14,004,365) — (14,004,365) Increase/decrease in fund balance 2,411,449 31,674 2,443,123 Fund Balance July 1, 2020 15,626,755 88,784 15,715,539 Fund Balance June 30, 2021 $ 18,038,204 $ 120,458 $ 18,158,661 126 SALT LAKE CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS June 30, 2021 Arts Council Downtown Economic Development Community Development Operating Grants Operating ASSETS Cash and cash equivalents Unrestricted $ 839,660 $ 1,943,715 $ 90,868 $ 53,050,970 Receivables: Property tax receivable — — — — Accounts receivable — 269,783 — — Loan and other receivables, net 118,265 — — — Due from other governments — — 639,092 1,351,606 Other 1,797 — — — Prepaids 55,311 — 3,000 6,541 Total assets $ 1,015,033 $ 2,213,498 $ 732,960 $ 54,409,117 LIABILITIES Accounts payable $ 166,145 $ — $ 472,672 $ 5,076,811 Accrued liabilities 192,850 — — — Current deposits and advance rentals — — — 6,000 Total current liabilities 358,995 — 472,672 5,082,811 Noncurrent liabilties: Revenues collected in advance — — — 46,428,092 Other liabilities payable from restricted assets — 269,783 — — Total liabilities 358,995 269,783 472,672 51,510,903 DEFERRED INFLOWS OF RESOURCES Unavailable grant revenue 5,000 — — — Total liabilities and deferred inflows of resources 363,995 269,783 472,672 51,510,903 FUND BALANCE Nonspendable 55,311 — 3,000 6,541 Restricted — — 257,288 2,891,673 Committed — — — — Assigned 595,727 1,943,715 — — Total fund balance 651,038 1,943,715 260,288 2,898,214 Total liabilities deferred inflows of resources and fund balance $ 1,015,033 $ 2,213,498 $ 732,960 $ 54,409,117 127 Street Lighting Demolition, Weed and Forfeiture Emergency 911 Dispatch Salt Lake City Donation Fund Salt Lake City Transportation Fund Nonmajor Special Revenue Total $ 598,667 $ 2,524,413 $ 3,377,088 $ 2,279,702 $ 4,221,709 $ 68,926,792 — — 774,876 — — 774,876 — — — — — 269,783 — — — — — 118,265 — — — — — 1,990,698 — — — — — 1,797 — — — — 4,500 69,352 $ 598,667 $ 2,524,413 $ 4,151,964 $ 2,279,702 $ 4,226,209 $ 72,151,563 $ — $ 28,311 $ — $ 36,392 $ 3,650 $ 5,783,981 — — — — 3,717 196,567 — 1,423,936 — — — 1,429,936 — 1,452,247 — 36,392 7,367 7,410,484 — — — — — 46,428,092 — — — — — 269,783 — 1,452,247 — 36,392 7,367 54,108,359 — — — — — 5,000 — 1,452,247 — 36,392 7,367 54,113,359 — — — — 4,500 69,352 — — 774,876 — 4,214,342 8,138,179 — 169,347 3,377,088 — — 3,546,435 598,667 902,819 — 2,243,310 — 6,284,238 598,667 1,072,166 4,151,964 2,243,310 4,218,842 18,038,204 $ 598,667 $ 2,524,413 $ 4,151,964 $ 2,279,702 $ 4,226,209 $ 72,151,563 128 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS Year ended June 30, 2021 Arts Council Downtown Economic Development Community Development Operating Grants Operating Revenues: Sales, use, and excise taxes $ — $ — $ — $ — Assessments — 2,367,853 — — Fines and forfeitures — — — — Interest — 9,508 — 17,971 Intergovernmental — — 2,686,049 22,577,782 Charges for services 1,348,871 — — — Contributions 588,722 — — — Rental & Other Income — — — — Miscellaneous 1,777 — — 62,708 Total revenues 1,939,370 2,377,361 2,686,049 22,658,461 Expenditures: Combined Emergency Services — — — — Community and Economic Development — 1,500,510 1,911,580 22,586,883 Public Services — — — — Transportation — — — — Arts Council 1,699,285 — — — Total expenditures 1,699,285 1,500,510 1,911,580 22,586,883 Operating income 240,085 876,851 774,469 71,578 Proceeds from sale of property — — — — Transfers in — — 1,000,000 — Transfers out — — (1,658,595) — Increase/decrease in fund balance 240,085 876,851 115,874 71,578 Fund Balance July 1, 2020 410,953 1,066,864 144,414 2,826,636 Fund Balance June 30, 2021 $ 651,038 $ 1,943,715 $ 260,288 $ 2,898,214 129 Street Lighting Demolition, Weed and Forfeiture Emergency 911 Dispatch Salt Lake City Donation Fund Salt Lake City Transportation Fund Nonmajor Special Revenue Total $ — $ — $ 4,672,158 $ — $ 8,855,333 $ 13,527,491 188 — — — — 2,368,041 — 196,951 — — — 196,951 246 8,045 21,994 11,638 — 69,402 — — — 1,489,712 — 26,753,543 — 100,304 — 484 — 1,449,659 — — — — — 588,722 — — — 41,603 — 41,603 — — — 473,673 — 538,158 434 305,300 4,694,152 2,017,110 8,855,333 45,533,570 — — 139,270 — — 139,270 — 213,296 — — — 26,212,269 — — — 1,711,629 — 1,711,629 — — — — 366,807 366,807 — — — — — 1,699,285 — 213,296 139,270 1,711,629 366,807 30,129,260 434 92,004 4,554,882 305,481 8,488,526 15,404,310 — 11,504 — — — 11,504 — — — — — 1,000,000 — — (3,650,000) — (8,695,770) (14,004,365) 434 103,508 904,882 305,481 (207,244) 2,411,449 598,233 968,658 3,247,082 1,937,829 4,426,086 15,626,755 $ 598,667 $ 1,072,166 $ 4,151,964 $ 2,243,310 $ 4,218,842 $ 18,038,204 130 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE ARTS COUNCIL Year ended Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Interest $ — $ 5 $ — $ — Charges for services $ 1,348,871 $ 1,270,051 $ 1,429,937 $ (81,066) Contributions 588,722 414,552 645,292 (56,570) Miscellaneous 1,777 2,500 5,160 (3,383) Total revenues 1,939,370 1,687,108 2,080,389 (141,019) Expenditures: Arts Council 1,699,285 1,798,251 1,917,442 218,157 Total expenditures 1,699,285 1,798,251 1,917,442 218,157 Revenues over expenditures 240,085 (111,143) 162,947 77,138 Net change in fund balance 240,085 (111,143) 162,947 77,138 Fund Balance July 1, 2020 410,953 410,953 410,953 — Fund Balance June 30, 2021 $ 651,038 $ 299,810 $ 573,900 $ 77,138 131 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DOWNTOWN ECONOMIC DEVELOPMENT Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Assessments $ 2,367,853 $ 1,550,000 $ 1,550,000 $ 817,853 Interest 9,508 — — 9,508 Total revenues 2,377,361 1,550,000 1,550,000 827,361 Expenditures: Community and Economic Development 1,500,510 1,550,000 1,550,000 49,490 Total expenditures 1,500,510 1,550,000 1,550,000 49,490 Revenues over expenditures 876,851 — — 876,851 Net change in fund balance 876,851 — — 876,851 Fund Balance July 1, 2020 1,066,864 1,066,864 1,066,864 — Fund Balance June 30, 2021 $ 1,943,715 $ 1,066,864 $ 1,066,864 $ 876,851 132 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE COMMUNITY DEVELOPMENT OPERATING FUND Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Intergovernmental $ 2,686,049 $ 3,509,164 $ 11,497,648 $ (8,811,599) Total revenues 2,686,049 3,509,164 11,497,648 (8,811,599) Expenditures: Community and Economic Development 1,911,580 3,509,164 10,413,670 8,502,090 Total expenditures 1,911,580 3,509,164 10,413,670 8,502,090 Revenues over expenditures 774,469 — 1,083,978 (309,509) Other financing sources (uses): Transfers in 1,000,000 — — 1,000,000 Transfers out (1,658,595) — (1,000,000) (658,595) Total other financing sources: (658,595) — (1,000,000) 341,405 Net change in fund balance 115,874 — 83,978 31,896 Fund Balance July 1, 2020 144,414 — — — Fund Balance June 30, 2021 $ 260,288 $ — $ 83,978 $ 31,896 133 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE GRANTS OPERATING FUND Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Interest $ 17,971 $ 40,000 $ 40,000 (22,029) Intergovernmental 22,577,782 2,655,028 49,881,083 (27,303,301) Miscellaneous 62,708 5,566,016 5,612,004 (5,549,296) Total revenues 22,658,461 8,261,044 55,533,087 (32,874,626) Expenditures: Community and Economic Development 22,586,883 8,261,044 55,194,713 32,607,830 Total expenditures 22,586,883 8,261,044 55,194,713 32,607,830 Revenues over (under) expenditures 71,578 — 338,374 (266,796) Other financing sources (uses): Transfers out — — (1,554,615) 1,554,615 Total other financing sources: — — (1,554,615) 1,554,615 Net change in fund balance 71,578 — (1,216,241) 1,287,819 Fund Balance July 1, 2020 2,826,635 2,826,635 2,826,635 — Fund Balance June 30, 2021 $ 2,898,213 $ 2,826,635 $ 1,610,394 $ 1,287,819 134 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE STREET LIGHTING Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Assessments $ 188 $ — $ — $ 188 Interest 246 — — 246 Total revenues 434 — — 434 Expenditures: Public Services — — — — Total expenditures — — — — Revenues over (under) expenditures 434 — — 434 Net change in fund balance 434 — — 434 Fund Balance July 1, 2020 598,233 598,233 598,233 — Fund Balance June 30, 2021 $ 598,667 $ 598,233 $ 598,233 $ 434 135 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DEMOLITION, WEED AND FORFEITURE Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Fines and forfeitures $ 196,951 $ — $ — $ 196,951 Interest 8,045 — — 8,045 Intergovernmental — — — — Charges for services 100,304 — — 100,304 Total revenues 305,300 — — 305,300 Expenditures: Community and Economic Development 213,296 — 870,181 656,885 Total expenditures 213,296 — 870,181 656,885 Revenues over (under) expenditures 92,004 — (870,181) 962,185 Other financing sources: Proceeds from sale of property 11,504 — — 11,504 Total other financing sources: 11,504 — — 11,504 Net change in fund balance 103,508 — (870,181) 973,689 Fund Balance July 1, 2020 968,659 968,659 968,659 — Fund Balance June 30, 2021 $ 1,072,167 $ 968,659 $ 98,478 $ 973,689 136 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE EMERGENCY 911 DISPATCH Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Sales, use and excise taxes $ 4,672,158 $ 3,070,000 $ 3,070,000 $ 1,602,158 Interest 21,994 75,000 75,000 (53,006) Charges for Services — 780,000 780,000 (780,000) Total revenues 4,694,152 3,925,000 3,925,000 769,152 Expenditures: Charges and Services 139,270 189,270 230,408 91,138 Total expenditures 139,270 189,270 230,408 91,138 Revenues over expenditures 4,554,882 3,735,730 3,694,592 860,290 Other financing uses: Transfers out (3,650,000) (3,600,000) (3,600,000) (50,000) Total other financing uses: (3,650,000) (3,600,000) (3,600,000) (50,000) Net change in fund balance 904,882 135,730 94,592 810,290 Fund Balance July 1, 2020 3,247,082 3,247,082 3,247,082 — Fund Balance June 30, 2021 $ 4,151,964 $ 3,382,812 $ 3,341,674 $ 810,290 137 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SALT LAKE CITY DONATION FUND Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Fines and forfeitures $ — $ 1,880,172 $ 576,244 $ (576,244) Interest 11,638 — — 11,638 Intergovernmental 1,489,712 — 1,303,928 185,784 Charges for services 484 — — 484 Debt Proceeds — — 11,300 (11,300) Rental & Other Income 41,603 — — 41,603 Miscellaneous 473,673 500,000 309,710 163,963 Total revenues 2,017,110 2,380,172 2,201,182 (184,072) Expenditures: Public Services 1,711,629 2,380,172 3,585,174 1,873,545 Total expenditures 1,711,629 2,380,172 3,585,174 1,873,545 Revenues over (under) expenditures 305,481 — (1,383,992) 1,689,473 Other financing sources: Transfers in — — 50,000 (50,000) Total other financing sources: — — 50,000 (50,000) Net change in fund balance 305,481 — (1,333,992) 1,639,473 Fund Balance July 1, 2020 1,937,829 1,937,829 1,937,829 — Fund Balance June 30, 2021 $ 2,243,310 $ 1,937,829 $ 603,837 $ 1,639,473 138 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SALT LAKE CITY TRANSPORTATION FUND Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Sales Tax $ 8,855,333 $ 4,467,000 $ 4,467,000 $ 4,388,333 Total revenues 8,855,333 4,467,000 4,467,000 4,388,333 Expenditures: Transportation 366,807 7,571,945 9,097,646 (8,730,839) Total expenditures 366,807 7,571,945 9,097,646 (8,730,839) Revenues over (under) expenditures 8,488,526 (3,104,945) (4,630,646) 13,119,172 Other financing sources: Transfers out (8,695,770) — — (8,695,770) Total other financing sources: (8,695,770) — — (8,695,770) Net change in fund balance (207,244) (3,104,945) (4,630,646) 4,423,402 Fund Balance July 1, 2020 4,426,086 4,426,086 4,426,086 — Fund Balance June 30, 2021 $ 4,218,842 $ 1,321,141 $ (204,560) $ 4,423,402 139 SALT LAKE CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUND Year ended June 30, 2021 Special Improvement ASSETS Cash and cash equivalents Unrestricted $ 120,538 Receivables: Accounts 139,955 Other 357,140 Total assets $ 617,633 LIABILITIES Accounts Payable $ 81 Other liabilities 497,095 Total liabilities 497,176 FUND BALANCE Committed 120,457 Total fund balance 120,457 Total liabilities and fund balance $ 617,633 140 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUND Year ended June 30, 2021 Special Improvement Revenues: Assessments $ 14,878 Interest 17,839 Total revenues 32,717 Expenditures: Interest and other fiscal charges 1,043 Total expenditures 1,043 Increase/decrease in fund balance 31,674 Fund Balance July 1, 2020 88,784 Fund Balance June 30, 2021 $ 120,458 141 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SPECIAL IMPROVEMENT FUND Year ended June 30, 2021 Actual (GAAP basis) Budgeted Amounts Original Budget Final Budget Variance Revenues: Assessments $ 14,878 $ 3,000 $ 3,000 $ 11,878 Miscellaneous Revenue — — — — Interest 17,839 — — 17,839 Total revenues 32,717 3,000 3,000 29,717 Expenditures: Administrative Services — 1,800 1,800 1,800 Debt service: Interest 1,043 1,200 1,200 157 Total expenditures 1,043 3,000 3,000 1,957 Revenues over (under) expenditures 31,674 — — 31,674 Net change in fund balance 31,674 — — 31,674 Fund Balance July 1, 2020 88,784 88,784 88,784 — Fund Balance June 30, 2021 $ 120,458 $ 88,784 $ 88,784 $ 31,674 142 Major Governmental Funds Budgetary Comparison Schedule 143 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE CAPITAL PROJECTS FUND Year ended June 30, 2021 Actual (GAAP basis) Budgeted Amounts Original Budget Final Budget Variance Revenues: Permits $ 11,226,305 $ 5,058,011 $ 2,755,278 $ 8,471,027 Interest 429,681 — 281,866 147,815 Intergovernmental 7,170,889 3,154,706 18,210,071 (11,039,182) Rental & other income 12,000 — 156,000 (144,000) Miscellaneous 237,567 224,554 148,554 89,013 Total revenues 19,076,442 8,437,271 21,551,769 (2,475,327) Expenditures: Capital improvements 32,643,280 22,431,587 153,333,136 120,689,856 Total expenditures 32,643,280 22,431,587 153,333,136 120,689,856 Revenues under expenditures (13,566,838) (13,994,316) (131,781,367) 118,214,529 Other financing sources (uses): Proceeds from bond issuance 20,454,886 — 20,500,000 (45,114) Proceeds from sale of property 404,018 200,000 200,000 204,018 Transfers in 20,528,273 15,782,971 20,528,273 — Transfers out (2,717,259) (2,661,634) (2,717,259) — Total other financing sources (uses): 38,669,918 13,321,337 38,511,014 158,904 Net Change in Fund Balance 25,103,080 (672,979) (93,270,353) 118,373,433 Fund Balance July 1, 2020 88,286,949 88,286,949 88,286,949 — Fund Balance June 30, 2021 $ 113,390,029 $ 87,613,970 $ (4,983,404) $ 118,373,433 144 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE OTHER IMPROVEMENT FUND Year ended June 30, 2021 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Property taxes $ 17,337,705 $ 21,196,660 $ 17,337,705 $ — Intergovernmental 4,488,730 2,419,710 2,419,710 2,069,020 Interest 21,218 — — 21,218 Total revenues 21,847,653 23,616,370 19,757,415 2,090,238 Expenditures: Administrative Services — 6,400 6,400 6,400 Debt service: Principal 24,804,145 25,975,800 24,725,800 (78,345) Interest 7,858,386 10,541,042 7,932,087 73,701 Total expenditures 32,662,531 36,523,242 32,664,287 1,756 Revenues under expenditures (10,814,878) (12,906,872) (12,906,872) 2,091,994 Other financing sources (uses): Transfers in 11,502,169 11,502,213 11,502,213 (44) Total other financing sources 11,502,169 11,502,213 11,502,213 (44) Other financing uses: Transfers out (996,159) (996,159) (996,159) — Total other financing uses (996,159) (996,159) (996,159) — Net change in fund balance (308,868) (2,400,818) (2,400,818) 2,091,950 Fund Balance July 1, 2020 5,252,098 19,161,674 5,252,098 — Fund Balance June 30, 2021 $ 4,943,229 $ 16,760,856 $ 2,851,280 $ 2,091,949 145 Nonmajor Enterprise Funds Street Lighting Utility – This fund is used to account for the activities related to operations, repairs and maintenance of the street lights. Refuse Collection Fund – This fund is used to account for the operations and activities related to garbage collection and disposal. Housing and Loan Fund – This fund is used to account for the loan servicing activities of the City’s grand and leveraged bank funded loans, except for the Urban Development Action Grant loans. Golf Fund – This fund is used to account for the operation of golf courses for use by the general public. 146 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2021 Street Lighting Utility Refuse Collection ASSETS Current assets: Cash and cash equivalents Unrestricted $ 6,182,401 $ 7,712,412 Restricted 80,626 — Receivables: Accounts, less allowance for doubtful accounts of $11,083, $10,509, $0, $0, respectively, totaling $21,592 376,340 880,638 Current portion of loans receivable — 240,237 Prepaid expenses 2,522 66,000 Inventory of supplies — — Total current assets 6,641,889 8,899,287 Property and equipment, at cost: Land and water rights — — Buildings — — Improvements other than buildings 12,903,275 — Machinery and equipment — 19,177,134 Accumulated depreciation (3,690,521) (11,253,763) Net property and equipment 9,212,754 7,923,371 Loans and other long-term receivables, less allowance for doubtful accounts of $0, $0, $3,801,000, $0, respectively, totaling $3,801,000 — — Land and buildings held for resale — — Investment in joint venture — 20,949,773 Total noncurrent assets 9,212,754 28,873,144 Total assets 15,854,643 37,772,431 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows - Pension 23,212 372,020 Total Deferred Outflows 23,212 372,020 Total assets and deferred outflows of resources $ 15,877,855 $ 38,144,451 147 Housing & Loan Golf Total $ 34,520,973 $ 4,563,079 $ 52,978,865 — — 80,626 — — 1,256,978 2,941,499 — 3,181,736 — 39,868 108,390 — 349,532 349,532 37,462,472 4,952,479 57,956,127 — 5,831,658 5,831,658 — 4,573,392 4,573,392 — 17,576,578 30,479,853 — 7,083,181 26,260,315 — (18,059,539) (33,003,823) — 17,005,270 34,141,395 45,460,068 — 45,460,068 2,611,596 — 2,611,596 — — 20,949,773 48,071,664 17,005,270 103,162,832 85,534,136 21,957,749 161,118,959 — 270,724 665,956 — 270,724 665,956 $ 85,534,136 $ 22,228,473 $ 161,784,915 148 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2021 Street Lighting Utility Refuse Collection LIABILITIES Current liabilities: Accounts payable $ 903,066 $ 272,208 Accrued liabilities 2,756 58,756 Current deposits and advance rentals 31,411 — Current portion of long-term compensated absences 59,861 73,638 Current portion of long-term debt 93,670 1,594,312 Total current liabilities 1,090,764 1,998,914 Noncurrent liabilties: Deposits, advance rentals and long-term accruals 41,597 84,597 Bonds, mortgages, and notes payable 2,287,500 1,192,052 Long-term compensated absences liability 36,262 346,585 Net pension liability 4,609 95,300 Total noncurrent liabilities 2,369,968 1,718,534 Total liabilities 3,460,732 3,717,448 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Pension 30,192 673,153 Total deferred inflows 30,192 673,153 NET POSITION Invested in capital assets 6,831,584 — Restricted for capital acquisition 39,029 — Unrestricted 5,516,318 33,753,850 Total net position 12,386,931 33,753,850 Total liabilities, deferred inflows of resources and net position $ 15,877,855 $ 38,144,451 149 Housing & Loan Golf Total $ 941,663 $ 129,956 $ 2,246,893 — 54,932 116,444 86,986 — 118,397 — 235,808 369,307 868,998 350,669 2,907,649 1,897,647 771,365 5,758,690 — 548,813 675,007 4,168,988 5,163,174 12,811,714 — 315,444 698,291 — 81,137 181,046 4,168,988 6,108,568 14,366,058 6,066,635 6,879,933 20,124,748 — 593,929 1,297,274 — 593,929 1,297,274 — 12,243,694 19,075,278 — — 39,029 79,467,501 2,510,917 121,248,586 79,467,501 14,754,611 140,362,893 $ 85,534,136 $ 22,228,473 $ 161,784,915 150 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2021 Street Lighting Utility Refuse Collection Sales and charges for services $ 4,230,395 $ 12,074,541 Rental and other 200 44,349 Total operating revenue 4,230,595 12,118,890 Personnel services 325,614 5,131,528 Operating and maintenance 39 179,143 Charges and services 3,315,579 7,128,806 Depreciation and amortization 665,919 2,095,714 Total operating expenses 4,307,151 14,535,191 Operating income/(loss) (76,556) (2,416,301) Interest income 38,047 59,562 Interest expense (87,041) (96,027) Equity in joint venture income (loss) — 542,783 Gain or (loss) on disposition of property and equipment — 127,870 Total nonoperating revenues/(expenses) (48,994) 634,188 Income/(loss) before transfers (125,550) (1,782,113) Transfers in 1,500 96,796 Transfers out — (271,258) Change in net position (124,050) (1,956,575) Net Position July 1, 2020 12,510,981 35,710,425 Net Position June 30, 2021 $ 12,386,931 $ 33,753,850 151 Housing & Loan Golf Total $ 15,228 $ 9,967,681 $ 26,287,845 1,076,015 47,011 1,167,575 1,091,243 10,014,692 27,455,420 — 3,543,808 9,000,950 — 1,418,056 1,597,238 963,931 1,859,319 13,267,635 — 1,125,573 3,887,206 963,931 7,946,756 27,753,029 127,312 2,067,936 (297,609) 1,240,082 — 1,337,691 (213,290) (155,977) (552,335) — — 542,783 — 1,853 129,723 1,026,792 (154,124) 1,457,862 1,154,104 1,913,812 1,160,253 3,884,059 1,665,854 5,648,209 (1,000,000) — (1,271,258) 4,038,163 3,579,666 5,537,204 75,429,338 11,174,945 134,825,689 $ 79,467,501 $ 14,754,611 $ 140,362,893 152 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS NONMAJOR PROPRIETARY FUNDS June 30, 2021 Street Lighting Utility Refuse Collection Cash Flows from Operating Activities Receipts from customers and users $ 4,350,316 $ 12,097,983 Payments to suppliers (3,071,181) (7,307,949) Payments to employees (269,442) (5,356,128) Net cash provided by operating activities 1,009,693 (566,094) Cash flows from noncapital and related financing activities: Transfers in 1,500 96,796 Transfers out — (271,258) Net cash provided by (used in) noncapital and related financing activities 1,500 (174,462) Cash flows from capital and related financing activities: Proceeds from sale of equipment — 127,871 Payment on long-term obligations, net of capitalized interest (172,104) (1,946,755) Payments for purchase and construction, including capitalized interest (664,572) (1,242,711) Net cash used in capital and related financing activities (836,676) (3,061,595) Cash flows from investing activities: Interest received on investments and loans 38,047 59,562 Net cash provided by investing activities 38,047 59,562 Net increase (decrease) in cash and cash equivalents 212,564 (3,742,589) Cash and cash equivalents at beginning of year 6,050,463 11,455,001 Cash and cash equivalents at end of year 6,263,027 7,712,412 Cash and cash equivalent components: Unrestricted $ 6,182,401 $ 7,712,412 Restricted 80,626 — Cash and cash equivalents at end of year 6,263,027 7,712,412 Cash flows from operating activities - Operating income (loss)$ (76,556) $ (2,416,301) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 665,919 2,095,714 Increase (decrease) due to changes in: Accounts receivable 117,511 354,847 Other current assets 1,933 1,912 Accounts payable 244,437 (386,508) Deferred outflows — 1,584 Accrued liabilities affecting operating activities 64,687 9,413 Other liabilities — 5,843 Pension liability (14,791) (577,203) Deferred inflows 6,553 296,209 Compensation liability — 48,397 Total adjustments 1,086,249 1,850,208 Net cash provided by operating activities $ 1,009,693 $ (566,093) 153 Housing & Loan Golf Total $ 5,640,265 $ 10,188,081 $ 32,276,645 (2,813,026) (3,231,362) (16,423,518) (3,841,830) (9,467,400) 2,827,239 3,114,889 6,385,727 3,884,059 1,665,854 5,648,209 (1,000,000) — (1,271,258) 2,884,059 1,665,854 4,376,951 — 1,853 129,724 (1,176,836) (538,367) (3,834,062) — (373,306) (2,280,589) (1,176,836) (909,820) (5,984,927) 1,240,082 — 1,337,691 1,240,082 — 1,337,691 5,774,544 3,870,923 6,115,442 28,746,429 692,156 46,944,049 34,520,973 4,563,079 53,059,491 $ 34,520,973 $ 4,563,079 $ 52,978,865 — — 80,626 34,520,973 4,563,079 53,059,491 $ 127,312 $ 2,067,939 $ (297,606) — 1,125,573 3,887,206 2,781,390 13,552 3,267,300 (739,699) 136,589 (599,265) 658,236 (90,575) 425,590 — 23,103 24,687 — 179,288 253,388 — — 5,843 — (598,229) (1,190,223) — 220,936 523,698 — 36,713 85,110 2,699,927 1,046,950 6,683,334 $ 2,827,239 $ 3,114,889 $ 6,385,728 154 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE STREET LIGHTING UTILITY FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating revenue - sales and charges for current services $ 4,230,595 $ 4,230,595 $ 4,230,957 $ 4,230,957 $ (362) Interest income 38,047 37,975 8,000 8,000 29,975 Contributions and nonoperating grants — — 27,841 27,841 (27,841) Transfers in 1,500 1,500 20,000 21,788 (20,288) Total revenues and other sources 4,270,142 4,270,070 4,286,798 4,288,586 (18,516) Expenses and other uses: Personnel services 270,233 270,233 224,167 230,705 (39,528) Accrued compensated absences and other post employment benefits 55,381 — — — — Operating and maintenance 39 39 6,994 6,994 6,955 Charges and services 3,315,579 3,310,291 2,716,702 2,739,571 (570,720) Depreciation and amortization 665,919 — — — — Expenses before debt service and capital outlay 4,307,151 3,580,563 2,947,863 2,977,270 (603,293) Debt Service Principal — 2,381,170 91,588 91,588 (2,289,582) Interest 87,041 101,935 100,246 100,246 (1,689) Improvements other than buildings — 1,037,034 2,240,000 2,256,414 1,219,380 Total expenses and other uses 4,394,192 7,100,702 5,379,697 5,425,518 (1,675,184) Change in net position $ (124,050) $ (2,830,632) $ (1,092,899) $ (1,136,932) $ (1,693,700) 155 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE REFUSE COLLECTION FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Refuse collection fees $ 12,074,541 $ 12,074,541 $ 12,157,742 $ 12,157,742 $ (83,201) Fixed asset disposition proceeds — 127,871 360,000 360,000 (232,129) Gain on fixed asset disposition 127,870 — — — — Rental and other 44,349 — — — — Proceeds from debt — — — 2,642,500 (2,642,500) Interest income 59,562 59,562 83,552 83,552 (23,990) Equity in joint venture income 542,783 542,783 — — 542,783 Transfer in 96,796 96,796 — 96,983 (187) Total revenues and other sources 12,945,901 12,901,553 12,601,294 15,340,777 (2,439,224) Expenses and other uses: Personnel services 5,131,528 5,362,542 5,431,882 5,613,165 250,623 Accrued compensated absences and other post employment benefits — — — — — Operating and maintenance 179,143 179,143 301,399 301,399 122,256 Charges and services 7,128,806 7,113,842 8,198,393 8,243,393 1,129,551 Depreciation 2,095,714 — — — — Transfers out 271,258 271,258 273,900 273,900 2,642 Total expenses before debt service and capital outlay 14,806,449 12,926,785 14,205,574 14,431,857 1,505,072 Debt service: Principal — 1,850,728 1,855,147 1,855,147 4,419 Interest 96,027 96,027 97,147 97,147 1,120 Capital outlay - purchase of equipment — 1,242,711 357,569 3,948,504 2,705,793 Total expenses and other uses 14,902,476 16,116,251 16,515,437 20,332,655 4,216,404 Change in net position $ (1,956,575) $ (3,214,698) $ (3,914,143) $ (4,991,878) $ 1,777,180 156 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE HOUSING LOANS FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating revenue - sales and charges for current services $ 1,091,243 $ 6,092,745 $ 11,816,500 $ 11,816,500 $ (5,723,755) Property disposition proceeds — — 50,000 50,000 (50,000) Interest income 1,240,082 1,240,082 1,132,500 1,132,500 107,582 Proceeds from debt — — 700,000 (700,000) Transfers In 3,884,059 3,884,059 6,640,000 4,675,437 (791,378) Total revenues and other sources 6,215,384 11,216,886 19,639,000 18,374,437 (7,157,551) Expenses and other uses: Charges and services 963,931 4,160,607 22,030,016 22,865,686 18,705,079 Operating and maintenance — — — — — Transfers out 1,000,000 1,000,000 — — (1,000,000) Expenses before debt service and capital outlay 1,963,931 5,160,607 22,030,016 22,865,686 17,705,079 Debt service: Principal — 963,546 956,000 956,000 (7,546) Interest 213,290 213,290 262,000 262,000 48,710 Total expenses and other uses 2,177,221 6,337,443 23,248,016 24,083,686 17,746,243 Change in net position $ 4,038,163 $ 4,879,443 $ (3,609,016) $ (5,709,249) $ 10,588,692 157 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE GOLF FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Admissions and fees $ 9,953,598 $ 9,953,598 $ 7,381,889 $ 7,381,889 $ 2,571,709 Equipment and facility rental 47,011 47,011 43,500 43,500 3,511 Other revenue 14,083 14,083 400 400 13,683 Transfers in 1,665,854 1,665,854 1,613,567 1,637,234 28,620 Total revenues and other sources 11,682,399 11,682,399 9,039,356 9,063,023 2,619,376 Expenses and other uses: Personnel services 3,507,091 3,861,279 4,154,188 4,177,855 316,576 Accrued compensated absences and other post employment benefits 36,717 — — — — Operating and maintenance 1,418,056 1,286,668 1,283,756 1,288,755 2,087 Charges and services 1,859,319 1,859,319 2,172,101 2,172,101 312,782 Depreciation 1,125,573 — — — — Total expenses before debt service and capital outlay 7,946,756 7,007,266 7,610,045 7,638,711 631,445 Debt Service: Principal — 382,391 347,659 347,659 (34,732) Interest 155,977 155,977 155,976 155,976 (1) Capital outlay-purchase of equipment — 373,306 371,217 400,697 27,391 Total expenses and other uses 8,102,733 7,918,940 8,484,897 8,543,043 624,103 Change in net position $ 3,579,666 $ 3,763,459 $ 554,459 $ 519,980 $ 3,243,479 158 Major Enterprise Funds Budgetary Comparison Schedule 159 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DEPARTMENT OF AIRPORTS FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Airfields $ 109,691,248 $ 109,691,248 $ 160,209,700 $ 160,209,700 $ (50,518,452) Terminals 12,677,177 12,677,177 16,355,700 16,355,700 (3,678,523) Landside 50,801,628 50,801,628 54,835,600 54,835,600 (4,033,972) Lease Revenue 8,140,198 8,140,198 7,979,000 7,979,000 161,198 General aviation 3,579,362 3,579,362 3,096,500 3,096,500 482,862 State Aviation Tax 2,257,769 2,257,769 1,848,200 1,848,200 409,569 Other revenue 5,247,479 (10,695,728) 6,207,900 6,207,900 (16,903,628) Equipment disposition proceeds — 150,298 — — 150,298 Debt Proceeds — — — 600,000,000 (600,000,000) Interest income 3,944,378 3,944,378 20,413,900 20,413,900 (16,469,522) Passenger facility charges 29,227,051 29,227,051 — — 29,227,051 Customer facility charges 9,015,981 9,015,981 618,000 618,000 8,397,981 Contributions for aid in construction 94,930,936 94,930,936 3,327,500 3,327,500 91,603,436 Transfers In — — — 501,000 (501,000) Total revenues and other sources 321,803,052 306,010,143 274,892,000 875,393,000 (569,382,857) Expenses and other uses: Personnel services 50,602,449 50,602,449 50,289,407 51,669,081 $ 1,066,632 Accrued compensated absences and other post employment benefits (2,883,300) — Capitalized personal services (937,149) — — — — Operating and maintenance 11,041,426 11,041,426 15,828,800 16,820,684 5,779,258 Charges and services 74,882,000 73,626,178 78,823,375 88,300,023 14,673,845 Loss on capital asset disposition 15,943,206 — — — — Depreciation and amortization 100,890,159 — — — — Bond Issuance costs 506,009 — 3,500,000 3,500,000 3,500,000 Transfers out — — 150,000 150,000 150,000 Total expenses before capital outlay 250,044,800 135,270,053 148,591,582 160,439,788 25,169,735 Debt service: Interest 86108427 92021103 130000000 130000000 37978897 Capital outlay: Land — 64,276 — — (64,276) Equipment — 74,791,856 2,045,018 2,282,883 (72,508,973) Construction, including multi-year projects — 487,874,045 21,675,000 49,925,055 (437,948,990) Total expenses and other uses 336,153,227 790,021,333 302,311,600 342,647,726 (447,373,607) Change in net position $ (14,350,175) $ (484,011,190) $ (27,419,600) $ 532,745,274 $ (1,016,756,464) 160 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE WATER UTILITY FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating revenue - sales and charges for current services $ 87,259,652 $ 86,237,057 $ 74,142,356 $ 74,142,356 $ 12,094,701 Equipment disposition proceeds 51,838 51,838 135,260 135,260 (83,422) Gain on sale of assets 637,214 — — — — Interest income 658,820 458,592 715,896 715,896 (257,304) Bond Proceeds — — 42,235,000 77,129,992 (77,129,992) Contributions and non-operating grants 5,123,087 5,123,087 1,975,640 1,975,640 3,147,447 Impact fees 2,392,515 2,392,515 1,184,670 1,184,670 1,207,845 Transfers in 601,341 601,341 268,810 557,716 43,625 Total revenues and other sources 96,724,467 94,864,430 120,657,632 155,841,530 (60,977,100) Expenses and other uses: Personnel services 23,405,150 23,405,150 25,518,196 26,314,848 2,909,698 Accrued compensated absences and other post employment benefits (1,873,793) — — — — Operating and maintenance 4,109,584 4,109,584 4,789,775 4,806,680 697,096 Charges and services 35,183,898 35,004,630 41,483,558 43,567,081 8,562,451 Depreciation and amortization 9,415,356 — — — — Transfers out — — 10,000 10,000 10,000 Expenses before debt service and capital outlay 70,240,195 62,519,364 71,801,529 74,698,609 12,179,245 Debt service: Principal — 928,750 928,750 928,750 — Interest 2,955,307 2,955,307 1,957,024 2,959,960 4,653 Premium (613,605) — — — — Capital outlay: Land and water rights — 794,031 2,150,000 2,150,000 1,355,969 Buildings — 7,850,348 7,130,000 17,423,309 9,572,961 Improvements other than buildings — 34,800,441 40,800,000 64,626,696 29,826,255 Equipment — 1,713,554 1,565,890 1,670,671 (42,883) Total expenses and other uses 72,581,897 111,561,795 126,333,193 164,457,995 52,896,200 Change in net position $ 24,142,570 $ (16,697,365) $ (5,675,561) $ (8,616,465) $ (8,080,900) 161 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SEWER UTILITY FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating revenue - sales and charges for current services $ 51,305,711 $ 51,305,711 $ 50,587,000 $ 50,587,000 $ 718,711 Equipment disposition proceeds 8,773 8,773 16,000 16,000 (7,227) Gain on sale of assets 13,093 — — — — Interest income 438,896 262,968 992,301 992,301 (729,333) Impact fees 3,094,964 3,094,964 1,422,000 1,422,000 1,672,964 Debt proceeds — — 144,495,000 144,495,000 (144,495,000) Contributions and non-operating grants 651,289 651,289 1,684,000 1,684,000 (1,032,711) Total revenues and other sources 55,724,044 55,535,023 199,230,301 199,344,243 (143,809,220) Expenses and other uses: Personnel services 10,344,942 10,344,942 12,590,497 12,940,203 2,595,261 Accrued compensated absences and other post employment benefits (350,648) — — — — Operating and maintenance 1,652,780 1,652,780 2,579,981 2,579,981 927,201 Charges and services 6,305,614 6,221,372 7,746,203 7,912,598 1,691,226 Depreciation and amortization 7,934,124 — — — — Expenses before debt service and capital outlay 25,886,812 18,219,094 22,916,681 23,432,782 5,213,688 Debt service: Principal — 5,402,946 7,527,946 7,527,946 2,125,000 Interest 7,122,120 7,122,120 5,179,523 5,179,523 (1,942,597) Capitalized interest (1,157,514) — — — — Capital outlay: Land — 153,951 — — (153,951) Buildings — 67,612,145 146,513,913 174,790,461 107,178,316 Improvements other than buildings — 16,477,201 29,828,500 56,885,911 40,408,710 Equipment — 796,835 671,836 1,194,480 397,645 Total expenses and other uses 31,851,418 115,784,292 212,638,399 269,011,103 153,226,811 Change in net position $ 23,872,626 $ (60,249,269) $ (13,408,098) $ (69,666,860) $ 9,417,591 162 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE STORMWATER UTILITY FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating revenue - sales and charges for current services $ 10,774,381 $ 10,774,381 $ 9,789,500 $ 9,789,500 $ 984,881 Gain on sale of assets 23,028 — — — — Equipment disposition proceeds — 15,435 4,000 4,000 11,435 Interest income 105,061 64,103 199,670 199,670 (135,567) Impact fees 928,385 928,385 389,000 389,000 539,385 Contributions and non-operating grants 1,482,417 1,482,417 352,000 352,000 1,130,417 Transfers In 32,650 32,650 12,000 46,764 (14,114) Total revenues and other sources 13,345,922 13,297,371 10,746,170 10,780,934 2,516,437 Expenses and other uses: Personnel services 3,048,240 3,048,240 3,628,930 3,728,862 680,622 Accrued compensated absences and other post employment benefits (179,785) — — — — Operating and maintenance 208,273 208,273 228,808 228,808 20,535 Charges and services 2,722,963 2,706,919 3,727,816 4,135,590 1,428,671 Depreciation and amortization 2,971,839 — — — — Transfers out — — 587,605 587,605 587,605 Expenses before debt service and capital outlay 8,771,530 5,963,432 8,173,159 8,680,865 2,717,433 Debt service: Principal — 903,383 903,383 903,383 — Interest 639,410 639,410 560,318 560,318 (79,092) Capitalized interest (99,874) — — — — Capital outlay: Land — — — — — Buildings — 57,171 50,000 307,939 250,768 Improvements other than buildings — 3,681,726 7,893,000 11,625,806 7,944,080 Equipment — 181,946 382,000 382,000 200,054 Total expenses and other uses 9,311,066 11,427,068 17,961,860 22,460,311 11,033,243 Change in net position $ 4,034,856 $ 1,870,303 $ (7,215,690) $ (11,679,377) $ 13,549,680 163 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE REDEVELOPMENT AGENCY FUND Year ended June 30, 2021 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating income - rental and other $ 1,428,767 $ 1,428,767 $ 1,755,060 $ 1,755,060 $ (326,293) Contributions 31,457,931 31,457,931 32,989,477 44,655,642 (13,197,711) Interest income 623,224 495,238 1,724,500 1,724,500 (1,229,262) Private donations — 900,000 800,000 800,000 100,000 Loan principal receipts — 3,046,276 445,547 445,547 2,600,729 Change in equity interest in joint venture (1,353,619) — — — — Gain/(Loss) on sale of assets 891,630 60,537 — — 60,537 Transfers in 16,627,173 52,792,122 16,518,035 18,632,994 34,159,128 Total revenues and other sources 49,675,106 90,180,871 54,232,619 68,013,743 22,167,128 Expenses and other uses: Personnel services 1,606,585 1,589,250 3,264,305 3,264,305 1,675,055 Accrued compensated absences and other post employment benefits (46,170) — — — — Operating and maintenance 1,607,423 1,607,423 1,308,992 1,318,992 (288,431) Charges and services 24,173,439 22,624,940 23,424,125 91,872,490 69,247,550 Loans made to residents and businesses — 7,901,970 1,498,814 40,770,180 32,868,210 Depreciation and amortization 666,847 — — — — Transfers out — 36,164,949 12,374,569 11,013,473 (25,151,476) Total expenses before debt service 28,008,124 69,888,533 41,870,805 148,239,440 78,350,907 Debt service: Principal 720,000 5,645,000 5,640,000 5,390,000 (255,000) Interest and fiscal charges 4,134,399 3,641,760 3,687,814 3,662,014 20,254 Capital Outlays — 1,189,744 3,034,000 150,000 (1,039,744) Total expenses and other uses 32,862,523 80,365,037 54,232,619 157,441,454 77,076,417 Change in net position $ 16,812,583 $ 9,815,834 $ — $ (89,427,711) $ 99,243,545 164 This page intentionally left blank. 165 Internal Service Funds Fleet Management Fund - This fund is used to account for the costs of the fleet management system which provides vehicles for use by City departments, and which provides vehicle maintenance on a cost- reimbursement basis. Information Management Services Fund - This fund is used to account for the costs of providing data processing services to City departments. Costs are recovered by charges to user departments. Risk Management Fund - This fund is used to account for the costs of providing insurance for employee health, accident, long-term disability, unemployment and worker's compensation. It also accounts for costs of the City's property damage insurance. Governmental Immunity Fund - This fund is used to account for payment of general liability claims against the City. Local Building Authority Fund - This fund is used to account for the acquisition and lease to the City of purchased or constructed property and equipment. This fund accounts for the bonds which were issued to purchase or construct the property and equipment and also accounts for the retirement of those bonds. 166 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2021 Fleet Management Information Management Services ASSETS Current assets: Cash and cash equivalents Unrestricted $ 11,292,264 $ 14,452,716 Restricted 1,379 127,600 Prepaid expenses 56,250 84,750 Inventory of supplies 869,627 — Total current assets 12,219,520 14,665,066 Noncurrent assets: Restricted cash, cash equivalents and investments — — Property and equipment, at cost: Land and water rights — — Buildings 948,512 60,411 Machinery and equipment 83,264,644 11,512,071 Construction in progress 813,511 1,779,293 Accumulated depreciation (58,038,592) (9,211,262) Net property and equipment 26,988,075 4,140,513 Net pension assets — 144,136 Total noncurrent assets 26,988,075 4,284,649 Total assets 39,207,595 18,949,715 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - Pension 293,949 767,753 Total deferred outflows 293,949 767,753 Total assets and deferred outflows of resources $ 39,501,544 $ 19,717,468 LIABILITIES Current liabilities: Accounts payable $ 566,110 $ 1,585,288 Accrued liabilities 116,540 101,449 Current portion of long-term compensated absences 65,499 307,724 Current portion of long-term debt: 3,184,975 — Accrued interest, payable from unrestricted assets — — Total current liabilities 3,933,124 1,994,461 Noncurrent liabilties: Bonds, mortgages, and notes payable 7,366,479 1,702,015 Estimated claims liability — — Long-term compensated absences liability 245,523 1,046,377 Net pension liability 77,416 217,988 Total noncurrent liabilities 7,689,418 2,966,380 Total liabilities 11,622,542 4,960,841 DEFERRED INFLOWS OF RESOURCES Deferred inflows - Pension 550,565 1,828,716 Total deferred inflows 550,565 1,828,716 NET POSITION Invested in capital assets 16,436,621 2,438,498 Unrestricted 10,891,816 10,489,413 Total net position 27,328,437 12,927,911 Total liabilities, deferred inflows of resources and net position $ 39,501,544 $ 19,717,468 167 Risk Management Governmental Immunity Local Building Authority Total $ 5,272,848 $ 8,241,514 $ 188,765 $ 39,448,107 — — 203 129,182 321,172 8,724 — 470,896 — — — 869,627 5,594,020 8,250,238 188,968 40,917,812 — — 1 1 — — 1,069,180 1,069,180 — — 27,661,384 28,670,307 81,154 — — 94,857,869 — — — 2,592,804 (81,154) — (2,408,797) (69,739,805) — — 26,321,767 57,450,355 81,915 — — 226,051 81,915 — 26,321,768 57,676,407 5,675,935 8,250,238 26,510,736 98,594,219 44,282 45,694 — 1,151,678 44,282 45,694 — 1,151,678 $ 5,720,217 $ 8,295,932 $ 26,510,736 $ 99,745,897 $ 59,125 $ 9,291 $ 1,300 $ 2,221,114 8,486 9,983 — 236,458 18,392 34,561 — 426,176 — — 1,160,000 4,344,975 — — 218,255 218,255 86,003 53,835 1,379,555 7,446,978 — — 24,916,318 33,984,812 3,837,192 7,815,000 — 11,652,192 81,126 89,154 — 1,462,180 10,086 3,820 — 309,310 3,928,404 7,907,974 24,916,318 47,408,494 4,014,407 7,961,809 26,295,873 54,855,472 211,844 13,055 — 2,604,180 211,844 13,055 — 2,604,180 — — — 18,875,119 1,493,966 321,068 214,863 23,411,126 1,493,966 321,068 214,863 42,286,245 $ 5,720,217 $ 8,295,932 $ 26,510,736 $ 99,745,897 168 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS Year ended June 30, 2021 Fleet Management Information Management Services Sales and charges for services $ 12,548,893 $ 16,541,123 Rental and other 32,208 126 Total operating revenue 12,581,101 16,541,249 Personnel services 3,583,250 7,886,352 Operating and maintenance 5,884,914 450,419 Charges and services 921,216 5,154,778 Depreciation and amortization 7,651,410 1,175,260 Total operating expenses 18,040,790 14,666,809 Operating income (5,459,689) 1,874,440 Interest income 3 21,281 Interest expense (290,069) — Gain or (loss) on disposition of property and equipment 707,415 4,724 Total nonoperating revenues (expenses) 417,349 26,005 Income before transfers (5,042,340) 1,900,445 Transfers in 5,299,781 557,354 Transfers out (292,333) — Change in net position (34,892) 2,457,799 Net Position July 1, 2020 27,363,329 10,470,114 Net Position June 30, 2021 $ 27,328,437 $ 12,927,913 169 Risk Management Governmental Immunity Local Building Authority Total $ 50,196,233 $ — $ — $ 79,286,249 200,000 338,673 1,032,783 1,603,790 50,396,233 338,673 1,032,783 80,890,039 820,769 869,506 — 13,159,877 724 144 — 6,336,201 47,375,818 4,323,605 1,900 57,777,317 — — 553,228 9,379,898 48,197,311 5,193,255 555,128 86,653,293 2,198,922 (4,854,582) 477,655 (5,763,254) 483 — 309 22,076 — — (925,445) (1,215,514) — — — 712,139 483 — (925,136) (481,299) 2,199,405 (4,854,582) (447,481) (6,244,553) 3,836 2,773,259 880,278 9,514,508 (2,876,048) — — (3,168,381) (672,807) (2,081,323) 432,797 101,574 2,166,775 2,402,389 (217,934) 42,184,673 $ 1,493,968 $ 321,066 $ 214,863 $ 42,286,247 170 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year ended June 30, 2021 Fleet Management Information Management Services Cash Flows from Operating Activities Receipts from internal fund services $ 12,581,100 $ 16,541,247 Payments to suppliers (6,658,600) (5,150,222) Payments to employees (3,920,343) (8,129,637) Net cash provided by (used in) operating activities 2,002,157 3,261,388 Cash flows from noncapital and related financing activities: Transfers in 5,299,781 557,354 Transfers out (292,333) — Net cash provided by (used in) noncapital and related financing activities 5,007,448 557,354 Cash flows from capital and related financing activities: Proceeds from issuance of debt (net of discount and issuance costs) 2,213,513 — Proceeds from sale of equipment 1,321,274 (47,969) Payment on long-term obligations (4,835,609) (661,882) Payments for purchase and construction (5,226,302) (2,498,984) Net cash provided by (used in) capital and related financing activities (6,527,124) (3,208,835) Cash flows from investing activities: Interest received on investments and loans 3 21,281 Net cash provided by investing activities 3 21,281 Net increase (decrease) in cash and cash equivalents 482,484 631,188 Cash and cash equivalents at beginning of year 10,811,159 13,949,128 Cash and cash equivalents at end of year 11,293,643 14,580,316 Cash and cash equivalent components: Unrestricted 11,292,264 14,452,716 Restricted 1,379 127,600 Cash and cash equivalents at end of year 11,293,643 14,580,316 Cash flows from operating activities - Operating income (loss) (5,459,690) 1,874,438 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 7,651,410 1,175,260 Increase (decrease) due to changes in: Other current assets 202,463 (2,250) Accounts payable (54,933) 454,975 Deferred outflows 43,326 935,318 Accrued liabilities affecting operating activities (5,027) 35,025 Other liabilities — — Pension assets — (144,136) Pension liability (549,158) (1,255,538) Deferred inflows 200,374 (67,758) Compensation liability (26,608) 256,054 Total adjustments 7,461,847 1,386,950 Net cash provided by (used in) operating activities $ 2,002,157 $ 3,261,388 171 Risk Management Governmental Immunity Local Building Authority Total $ 50,396,231 $ 338,674 $ 1,032,783 $ 80,890,035 (47,370,954) (543,308) (1,900) (59,724,984) (615,836) (912,410) — (13,578,226) 2,409,441 (1,117,044) 1,030,883 7,586,825 3,836 2,773,259 880,278 9,514,508 (2,876,048) — — (3,168,381) (2,872,212) 2,773,259 880,278 6,346,127 — — — 2,213,513 — — — 1,273,305 — — (2,209,201) (7,706,692) — — (7,725,286) — — (2,209,201) (11,945,160) 483 — 309 22,076 483 — 309 22,076 (462,288) 1,656,215 (297,731) 2,009,868 5,735,136 6,585,299 486,700 37,567,422 5,272,848 8,241,514 188,969 39,577,290 5,272,848 8,241,514 188,765 39,448,107 — — 204 129,183 5,272,848 8,241,514 188,969 39,577,290 2,198,920 (4,854,579) 477,655 (5,763,256) — — 553,228 9,379,898 (31,248) — — 168,965 5,588 2,342 — 407,972 (8,343) 7,860 — 978,161 2,197 2,549 — 34,744 293,000 3,778,000 — 4,071,000 (81,915) — — (226,051) (84,245) (57,801) — (1,946,742) 108,748 (23,285) — 218,079 6,739 27,870 — 264,055 210,521 3,737,535 553,228 13,350,081 $ 2,409,441 $ (1,117,044) $ 1,030,883 $ 7,586,825 172 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE FLEET MANAGEMENT FUND Year ended June 30, 2021 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Charges for maintenance $ 12,581,101 $ 12,581,101 $ 12,616,184 $ 12,709,184 $ (128,083) Interest income 3 3 — — 3 Other Revenue — — 394,314 394,314 (394,314) Proceeds from note — 2,213,513 1,000,000 1,000,000 1,213,513 Proceeds from sale of equipment 707,415 1,321,274 67,495 67,495 1,253,779 Transfers in 5,299,781 5,299,781 5,000,000 5,097,612 202,169 Total revenues and other sources 18,588,300 21,415,672 19,077,993 19,268,605 2,147,067 Expenses and other uses: Personnel services 3,609,858 3,915,317 4,309,090 4,406,702 491,385 Accrued compensated absences and other post employment benefits (26,608) — — — — Operating and maintenance 5,884,914 5,979,881 6,550,551 6,616,262 636,381 Charges and services 921,216 1,665,670 1,765,515 2,129,669 463,999 Depreciation 7,651,410 — — — — Transfers out 292,333 292,333 293,315 293,315 982 Total expenses before debt service and capital outlay 18,333,123 11,853,201 12,918,471 13,445,948 1,592,747 Debt service: Principal — 3,359,335 3,737,118 3,737,118 377,783 Interest 290,069 305,371 388,754 388,754 83,383 Capital outlay — 3,874,357 2,164,928 6,560,718 2,686,361 Total expenses and other uses 18,623,192 19,392,264 19,209,271 24,132,538 4,740,274 Change in net position $ (34,892) $ 2,023,408 $ (131,278) $ (4,863,933) $ 6,887,341 173 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE INFORMATION MANAGEMENT FUND Year ended June 30, 2021 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenue: Charges for services $ 16,541,123 $ 16,541,123 $ 17,345,710 $ 17,408,281 $ (867,158) Interest income 21,281 21,281 — — 21,281 Gain on sale of equipment 4,724 — — — — Proceeds from sale of equipment — 5,682 — — 5,682 Miscellaneous revenue 126 126 — — 126 Transfers in 557,354 557,354 — 721,594 (164,240) Total revenues and other sources 17,124,608 17,125,566 17,345,710 18,129,875 (1,004,309) Expenses and other uses: Personnel services 8,162,412 8,162,412 8,715,059 9,186,257 1,023,845 Accrued compensated absences and other post employment benefits (276,060) — — — — Operating and maintenance 450,419 450,419 694,672 732,557 282,138 Charges and services 5,154,778 5,201,808 6,552,231 6,931,185 1,729,377 Depreciation 1,175,260 — — — — Total expenses before capital outlay 14,666,809 13,814,639 15,961,962 16,849,999 3,035,360 Debt Service: Principal — 661,882 — — — Capital outlay — 2,580,672 2,327,725 2,369,541 (211,131) Total expenses and other uses 14,666,809 17,057,193 18,289,687 19,219,540 2,162,347 Change in net position $ 2,457,799 $ 68,373 $ (943,977) $ (1,089,665) $ 1,158,038 174 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE RISK MANAGEMENT FUND Year ended June 30, 2021 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Charges for services $ 50,196,233 $ 50,196,233 $ 48,144,566 $ 48,144,566 $ 2,051,667 Interest 483 483 — — 483 Miscellaneous 200,000 200,000 200,000 200,000 — Transfers in 3,836 3,836 88,057 91,893 (88,057) Total revenues and other sources 50,400,552 50,400,552 48,432,623 48,436,459 1,964,093 Expenses and other uses: Personnel services 879,786 879,786 941,594 959,780 79,994 Accrued compensated absences and other post employment benefits (59,017) — — — — Operating and maintenance 724 724 26,885 26,885 26,161 Premiums and other charges for services 47,375,818 47,082,818 47,564,498 47,564,498 481,680 Transfers out 2,876,048 2,876,048 2,876,048 2,876,048 — Total expenses 51,073,359 50,839,376 51,409,025 51,427,211 587,835 Change in net position $ (672,807) $ (438,824) $ (2,976,402) $ (2,990,752) $ 2,551,928 175 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE GOVERNMENTAL IMMUNITY FUND Year ended June 30, 2021 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Interfund service charges $ 338,673 $ 338,673 $ 20,000 $ 20,000 $ 318,673 Transfers in 2,773,259 2,773,259 2,767,963 2,773,259 — Total revenues 3,111,932 3,111,932 2,787,963 2,793,259 318,673 Expenses: Personnel services 914,860 914,860 1,077,369 1,082,665 167,805 Accrued compensated absences and other post employment benefits (45,354) — — — — Operating and maintenance 144 144 10,000 10,000 9,856 Claims, charges and services 4,323,605 545,605 1,767,834 1,767,834 1,222,229 Total expenses 5,193,255 1,460,609 2,855,203 2,860,499 1,399,890 Change in net position $ (2,081,323) $ 1,651,323 $ (67,240) $ (67,240) $ 1,718,563 176 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE LOCAL BUILDING AUTHORITY FUND Year ended June 30, 2021 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Other income $ 1,032,783 $ 1,032,783 $ 1,531,114 $ 1,531,114 $ (498,331) Interest income 309 785 — — 785 Transfers in 880,278 880,278 688,136 688,136 192,142 Total revenues and other sources 1,913,370 1,913,846 2,219,250 2,219,250 (305,404) Expenses and other uses: Charges and services 1,900 1,900 2,200 2,200 300 Depreciation and amortization 553,228 — — — — Total expenses before debt service 555,128 1,900 2,200 2,200 300 Debt service: Principal — 1,120,000 1,120,000 1,120,000 — Interest 925,445 1,089,200 1,097,050 1,097,050 7,850 Total expenses and other uses 1,480,573 2,211,100 2,219,250 2,219,250 8,150 Change in net position $ 432,797 $ (297,254) $ — $ — $ (297,254) 177 This page intentionally left blank. 178 STATISTICAL SECTION (unaudited) This part of the Salt Lake City Corporation’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. CONTENTS Financial Trends 180 These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity 188 These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. Debt Capacity 193 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. Demographic and Economic Information 198 This schedule offers demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Operating Information 199 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. 179 SALT LAKE CITY CORPORATION NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental Activities Net Investment in capital assets $ 488,882 $ 576,786 $ 529,134 $ 504,457 $ 601,185 $ 621,194 $ 642,013 $ 668,907 $ 563,203 $ 579,048 Restricted 109 70,797 32,670 73,564 61,065 45,981 57,371 58,630 83,296 102,077 Unrestricted 79,327 (71,055) 2,733 (38,242) (96,707) (79,375) (102,160) (86,548) 43,293 98,416 Total governmental activities net position $ 568,318 $ 576,528 $ 564,537 $ 539,779 $ 565,543 $ 587,800 $ 597,224 $ 640,990 $ 689,791 $ 779,542 Business-type activities Net investment in capital assets $ 1,257,957 $ 1,265,966 $ 1,338,531 $ 1,479,894 $ 1,583,508 $ 1,523,569 $ 1,931,014 $ 1,902,167 $ 2,048,313 $ 2,186,042 Restricted 146,913 167,716 278,358 333,118 260,356 529,457 290,422 441,593 350,691 308,680 Unrestricted 419,660 475,725 433,252 315,364 373,693 267,204 81,255 70,532 106,912 71,683 Total business-type activities net position $ 1,824,529 $ 1,909,408 $ 2,050,142 $ 2,128,376 $ 2,217,557 $ 2,320,229 $ 2,302,690 $ 2,414,292 $ 2,505,916 $ 2,566,405 Primary Government Net investment in capital assets $ 1,746,838 $ 1,842,753 $ 1,867,665 $ 1,984,351 $ 2,184,693 $ 2,144,762 $ 2,573,027 $ 2,571,075 $ 2,611,516 $ 2,765,090 Restricted 147,021 238,513 311,028 406,682 321,422 575,438 347,792 500,223 433,987 410,758 Unrestricted 498,987 404,671 435,986 277,122 276,986 187,829 (20,905) (16,017) 150,205 170,099 Total primary government net position $ 2,392,847 $ 2,485,936 $ 2,614,679 $ 2,668,155 $ 2,783,101 $ 2,908,029 $ 2,899,914 $ 3,055,282 $ 3,195,707 $ 3,345,947 180 SALT LAKE CITY CORPORATION CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 EXPENSES Governmental Activities: General Government $ 5,076 $ 14,816 $ 26,038 $ 8,051 $ 6,740 $ 14,006 $ 10,220 $ 29,168 $ 9,477 $ 14,976 City Council 2,411 2,489 2,345 2,122 3,126 3,565 3,554 3,941 4,116 3,646 Mayor 3,040 3,010 3,013 2,576 3,400 3,773 3,904 4,190 4,001 4,617 City Attorney 6,497 6,749 6,473 5,274 7,008 7,088 7,441 8,232 10,149 7,290 Finance 3,059 6,387 10,861 7,579 9,912 10,223 10,941 11,334 10,523 9,617 Justice Court 4,761 4,273 3,731 3,255 4,237 4,402 4,495 4,576 4,538 3,861 Human Resources 1,945 2,061 1,965 1,697 2,502 2,625 2,163 2,993 3,188 2,917 Fire 39,793 37,637 37,190 34,380 42,822 40,043 42,766 44,885 44,831 40,757 Combined Emergency Services (1) — 5,603 6,991 5,220 7,143 7,121 7,448 8,201 8,293 6,360 Police 64,278 62,490 62,476 47,922 68,901 75,487 72,518 82,722 87,414 80,595 Community and Neighborhoods 34,461 35,308 31,253 29,444 36,799 37,492 36,059 36,751 43,507 59,715 Public Services 45,883 49,373 43,919 46,062 64,203 61,768 62,854 1,724 2,292 2,286 Transportation (4) — — — — — — — — 65,007 62,996 Economic Development (2) — — — — — 1,261 1,677 63,852 389 367 Unallocated infrastructure depreciation 8,784 8,530 10,531 8,564 8,626 8,671 9,038 9,540 9,769 10,098 Interest on long-term debt 9,058 11,440 12,466 12,950 16,627 12,093 20,857 1,489 10,540 4,938 Total governmental activities expenses 229,047 250,165 259,251 215,097 282,046 289,618 295,935 313,598 318,031 315,035 Business-type activities: Airport Authority $ 133,845 $ 146,132 $ 145,791 $ 135,997 $ 152,432 $ 180,492 $ 198,267 $ 237,030 $ 252,664 $ 310,817 Water 52,561 57,730 58,335 51,497 59,268 63,454 62,761 68,035 68,071 72,582 Sewer 15,778 17,936 17,241 18,456 20,232 21,964 22,857 25,523 27,533 31,851 Storm Water 5,846 6,783 6,781 6,645 7,860 7,515 8,012 8,395 7,935 9,311 Street Lighting (1) — 1,190 2,331 1,984 2,130 2,827 2,641 2,739 3,603 4,394 Refuse 10,963 11,320 11,462 11,428 12,786 13,117 13,114 13,985 14,303 14,631 Golf 8,897 9,085 8,774 5,932 7,460 8,456 8,081 8,389 7,971 8,103 Housing and Loan 966 905 1,082 1,630 959 888 2,925 1,839 3,423 1,177 Redevelopment Agency 20,763 23,761 12,238 29,154 37,129 37,455 27,473 28,914 31,124 32,863 Total business-type activities expenses 249,618 274,841 264,035 262,723 300,255 336,168 346,131 394,848 416,628 485,729 Total primary government expenses $ 478,665 $ 525,006 $ 523,286 $ 477,820 $ 582,301 $ 625,786 $ 642,066 $ 708,446 $ 734,659 $ 800,764 REVENUES Governmental Activities: Charges for Services: General Government $ 14,799 $ 15,261 $ 16,655 $ 18,185 $ 18,574 $ 16,973 $ 15,105 $ 25,133 $ 23,760 $ 29,164 City Council 23 23 94 200 198 472 483 437 418 418 Mayor 394 428 493 463 189 369 303 275 274 277 City Attorney 694 779 1,228 796 832 911 874 901 896 896 Finance 10,932 11,843 12,251 12,926 12,820 12,812 26,501 27,457 22,047 19,503 Justice Court 2,351 3,339 3,342 2,964 3,514 3,398 3,296 3,015 2,394 1,795 Human Resources 790 904 1,298 961 1,017 930 895 1,080 1,036 1,036 Fire 5,840 6,936 3,358 6,803 9,947 6,500 7,291 7,440 7,084 7,163 Combined Emergency Services (1) — 2 897 417 485 468 601 657 1,038 478 Police 5,740 7,768 9,301 3,857 4,499 5,518 2,471 6,563 10,628 10,580 Community and Neighborhoods 17,140 14,260 15,034 18,062 21,630 28,385 4,154 1,797 2,025 2,133 Economic Development (2) — — — — — 3,151 4,363 1,916 1,648 2,107 Public Services 6,818 5,596 5,205 9,654 11,645 12,205 9,741 9,735 9,828 8,825 Operating Grants and Contributions 18,729 14,813 22,360 7,069 4,969 2,076 — 10,394 8,079 31,019 Capital Grants and Contributions 9,878 5,048 11,485 14,745 15,772 13,919 16,422 12,800 24,174 19,273 Total governmental activities program revenues $ 94,128 $ 87,001 $ 103,002 $ 97,101 $ 106,092 $ 108,086 $ 92,501 $ 109,599 $ 115,328 $ 134,667 181 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Business-type activities: Charges for Services: Airport Authority $ 165,854 $ 175,699 $ 180,285 $ 188,853 $ 199,451 $ 216,241 $ 224,618 $ 248,598 $ 216,065 $ 197,347 Water 62,233 68,094 65,432 63,275 67,388 75,115 75,940 78,023 83,899 87,003 Sewer 17,673 18,493 19,785 21,026 23,545 25,238 34,346 39,986 45,109 51,485 Storm Water 8,309 8,169 8,152 8,287 8,530 8,445 8,657 9,606 10,579 10,763 Street Lighting (1) — 1,603 3,208 3,280 3,265 4,223 4,208 4,302 4,259 4,231 Refuse 10,816 10,906 10,257 12,419 12,363 15,176 12,387 12,295 11,380 11,686 Golf 8,487 7,985 7,921 8,235 7,475 6,734 7,040 7,044 7,034 10,035 Housing and Loan 661 630 1,763 421 846 1,025 2,433 595 1,132 1,091 Redevelopment Agency (3) 27,300 33,022 2,290 2,135 2,215 1,745 5,894 3,622 684 2,389 Capital grants and contributions (3) 24,431 34,000 54,696 67,546 53,162 57,828 45,083 44,767 73,193 140,062 Total business-type activities program revenues 325,765 358,601 353,790 375,475 378,240 411,770 420,608 448,838 453,335 516,092 Total primary government program revenues $ 419,893 $ 445,602 $ 456,792 $ 472,576 $ 484,332 $ 519,856 $ 513,109 $ 558,437 $ 568,663 $ 650,759 Net (expense)/revenue Governmental activities $ (134,918) $ (163,164) $ (156,248) $ (117,996) $ (175,954) $ (181,532) $ (203,434) $ (203,999) $ (202,704) $ (180,368) Business-type activities 76,146 83,760 89,755 112,752 77,985 75,603 74,476 53,991 36,708 30,363 Total primary government net expense $ (58,772) $ (79,404) $ (66,494) $ (5,244) $ (97,969) $ (105,930) $ (128,957) $ (150,009) $ (165,996) $ (150,005) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes, levied for general purposes $ 81,351 $ 84,166 $ 94,923 $ 98,062 $ 114,685 $ 118,782 $ 119,116 $ 122,282 $ 129,951 $ 130,833 Franchise taxes 28,233 27,844 27,881 28,133 27,973 28,418 27,286 27,238 26,863 23,952 Sales tax 51,815 56,216 57,908 60,849 62,709 65,812 72,208 103,727 120,778 136,182 Investment earnings 2,055 1,848 1,858 1,421 1,996 2,283 3,930 6,698 3,991 1,626 Transfers (1,272) 1,301 (44,377) 2,627 (5,645) (11,506) (9,683) (12,168) (30,078) (22,475) Total governmental activities 162,183 171,374 138,194 191,092 201,718 203,789 212,858 247,778 251,505 270,118 Business-type activities: Investment earnings $ 4,717 $ 2,420 $ 6,602 $ 4,395 $ 5,552 $ 15,563 $ (101,698) $ 45,219 $ 24,838 $ 7,651 Transfers 1,272 (1,301) 44,377 (2,627) 5,645 11,506 9,683 12,168 30,078 22,475 Total business-type activities: 5,988 1,119 50,979 1,768 11,197 27,069 (92,016) 57,387 54,916 30,126 Total primary government $ 168,172 $ 172,493 $ 189,173 $ 192,859 $ 212,915 $ 230,858 $ 120,842 $ 305,165 $ 306,421 $ 300,244 Change in Net Position Governmental activities $ 27,265 $ 8,211 $ (18,055) $ 73,095 $ 25,764 $ 22,257 $ 9,424 $ 43,778 $ 48,802 $ 89,751 Business-type activities 82,135 84,879 140,734 114,520 89,182 102,672 (17,539) 111,378 91,624 60,488 Total primary government $ 109,400 $ 93,089 $ 122,679 $ 187,615 $ 114,946 $ 124,929 $ (8,115) $ 155,156 $ 140,426 $ 150,239 (1) Combined Emergency Services and Street Lighting were created as new departments in 2013. (2) Economic Development was created as a new department in 2017. (3) In 2014, the RDA reclassified Tax Increment revenues from Charges for Services to Contributions. (4) Transportation was created as a new department in 2020. 182 SALT LAKE CITY CORPORATION FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Fund Non-spendable $ 3,080 $ 2,582 $ 3,157 $ 6,847 $ 10,937 $ 11,428 $ 10,865 $ 12,550 $ 9,303 $ 2,212 Restricted 114 — — — — — — — — 12,139 Committed 2,143 — — — — — — — — — Assigned — 2,370 3,789 6,692 7,099 7,298 8,732 15,892 9,899 — Unassigned 19,794 22,169 26,649 29,434 23,056 31,945 36,507 51,372 70,040 101,934 Total General Fund $ 25,131 $ 27,121 $ 33,595 $ 42,973 $ 41,092 $ 50,671 $ 56,104 $ 79,814 $ 89,242 $ 116,286 All other governmental funds Non-spendable $ 92 $ 4,937 $ 3,516 $ 4,047 $ 6,319 $ 7,937 $ — $ — $ 1 $ 69 Restricted 136,410 70,797 80,809 80,892 66,830 50,576 70,144 72,903 72,277 95,566 Committed 4,268 — 1,803 495 499 807 1,491 2,306 2,734 3,667 Assigned 20,595 40,788 25,222 31,790 41,020 43,697 31,773 31,691 33,833 37,189 Unassigned — — — — — — — — 410 — Total all other governmental funds $ 161,365 $ 116,522 $ 111,350 $ 117,224 $ 114,668 $ 103,017 $ 103,408 $ 106,900 $ 109,255 $ 136,492 In 2011, the City adopted Statement No. 54 of the Governmental Accounting Standards Board requiring new classifications for Fund Balance reporting. 183 This page intentionally left blank 184 SALT LAKE CITY CORPORATION CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenues: General property taxes $ 80,449 $ 84,166 $ 94,923 $ 98,062 $ 114,685 $ 118,782 $ 119,116 $ 122,282 $ 129,951 $ 130,833 Sales, use and excise taxes 51,815 56,216 57,908 60,849 62,709 65,812 72,208 103,727 120,778 136,182 Franchise taxes 28,233 27,844 27,881 28,133 27,973 28,418 27,286 27,238 26,863 23,952 Licenses 9,755 11,846 12,238 12,933 14,414 15,195 15,593 16,448 13,107 11,418 Permits 13,418 14,216 13,696 19,126 16,553 19,847 17,690 28,079 32,203 36,231 Fines and forfeitures 5,841 5,098 4,993 4,807 3,633 3,524 3,516 3,429 2,803 2,035 Assessments 5,779 1,836 1,617 1,482 1,718 1,520 1,543 2,222 553 2,383 Interest 2,030 1,783 1,773 1,384 1,725 1,919 3,481 6,386 3,919 1,680 Intergovernmental 31,545 24,732 30,447 21,807 27,519 28,913 20,634 23,642 26,504 43,195 Interfund service charges 9,830 9,834 10,071 10,372 11,051 11,451 11,414 16,364 20,574 20,971 Parking meter 1,792 3,003 3,220 3,295 3,325 3,464 3,405 3,510 2,771 1,916 Parking ticket 3,374 3,042 2,129 2,876 2,845 3,205 2,110 1,825 1,187 1,702 Charges for services 5,229 5,446 6,635 6,099 5,151 5,712 6,666 5,970 1,207 870 Rental and other income — — — — 887 1,200 1,047 1,153 5,208 5,476 Contributions 2,925 1,962 7,285 4,367 2,084 2,334 1,009 517 354 589 Miscellaneous 3,957 4,897 9,598 9,191 10,288 8,986 7,602 5,790 7,959 3,576 Total Revenues $ 255,972 $ 255,920 $ 284,416 $ 284,783 $ 306,560 $ 320,280 $ 314,322 $ 368,581 $ 395,941 $ 423,009 Expenditures: City Council $ 2,178 $ 2,225 $ 2,300 $ 2,426 $ 2,722 $ 3,202 $ 3,137 $ 3,574 $ 3,759 $ 3,911 Mayor 2,452 2,473 2,659 2,635 2,457 2,752 2,856 3,121 3,862 3,496 City Attorney 5,213 5,423 5,616 5,324 5,442 5,549 5,897 6,644 6,788 6,841 Finance 4,729 5,935 6,851 6,147 6,367 6,659 6,760 7,597 7,828 7,873 Fire 35,529 34,185 35,738 37,049 38,204 38,252 39,166 42,267 42,337 40,361 Combined Emergency Services — 5,121 6,877 6,440 6,977 6,917 7,377 8,067 8,337 7,697 Police 57,738 55,929 60,695 57,720 60,822 64,158 66,610 74,956 82,368 80,751 Community and Neighborhoods 29,456 29,359 22,214 27,130 28,256 28,490 28,770 30,347 31,743 49,829 Economic Development — — — — — 1,190 1,651 1,689 1,985 2,244 Justice Court 4,227 3,928 3,790 3,893 4,024 4,184 4,276 4,389 4,428 4,341 Human Resources 1,761 1,882 1,995 2,090 2,165 2,331 2,525 2,615 2,663 2,576 Public Services 34,864 34,181 34,578 37,806 41,568 42,054 42,647 45,881 46,704 45,952 Transportation (1) — — — — — — — — 274 367 Arts Council 2,320 3,031 3,555 3,315 3,114 3,449 3,075 1,571 1,392 1,699 Nondepartmental 15,899 21,359 23,207 23,547 27,761 26,450 27,602 29,585 35,163 37,573 Capital Improvement 68,823 85,736 111,087 38,074 34,340 32,507 31,823 25,426 34,082 32,643 Debt service: Principal 28,485 24,398 34,361 65,643 45,472 24,025 23,745 24,845 31,992 24,804 Interest and other fiscal charges 11,396 11,279 11,687 14,226 15,194 11,194 11,416 9,721 15,360 7,859 Total Expenditures $ 305,071 $ 326,444 $ 367,210 $ 333,466 $ 324,886 $ 303,362 $ 309,334 $ 322,295 $ 361,065 $ 360,816 Revenues over (under) expenditures $ (49,099) $ (70,524) $ (82,794) $ (48,683) $ (18,326) $ 16,919 $ 4,989 $ 46,286 $ 34,876 $ 62,193 (1) Transportation was added as a department in 2019. 185 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Other financing sources (uses): Issuance of debt $ 47,370 $ 27,858 $ 65,076 $ 66,795 $ 21,715 $ 6,460 $ 15,572 $ 1,225 $ 20,201 $ 20,455 Payment to refunding bond escrow agent — — — — — (6,431) — — (67,725) — Premiums from issuance of debt 2,615 623 568 — 2,925 — — — 4,009 — Proceeds from sale of property 1,145 1,102 707 707 3,533 661 1,390 299 419 455 Transfers in 26,021 25,561 53,160 35,940 37,895 38,069 39,996 32,410 36,721 41,478 Transfers out (31,183) (27,473) (35,415) (39,507) (52,179) (57,749) (56,123) (53,018) (80,517) (70,299) Total other financing sources (uses) 45,967 27,671 84,097 63,935 13,888 (18,990) 836 (19,084) (86,892) (7,911) Net change in fund balances $ (3,132) $ (42,853) $ 1,303 $ 15,252 $ (4,438) $ (2,071) $ 5,824 $ 27,201 $ (52,016) $ 54,281 Debt service as a percentage of non-capital expenditures 19.58 % 15.60 % 23.43 % 26.86 % 20.25 % 13.00 % 11.78 % 11.27 % 13.70 % 9.05 % Debt service as a percentage of total expenditures 13.07 % 10.93 % 12.54 % 23.95 % 18.67 % 11.61 % 11.37 % 10.73 % 13.11 % 9.05 % 186 SALT LAKE CITY CORPORATION GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Real Property Tax Personal Property Tax Motor Vehicle Property Tax Franchise Tax Sales Tax Total 2012 $ 69,206 8,253 3,546 28,233 51,815 $ 161,053 2013 $ 71,842 8,836 3,488 27,844 56,216 $ 168,226 2014 $ 80,298 10,564 4,061 27,881 57,908 $ 180,712 2015 $ 83,513 10,594 4,171 28,133 60,849 $ 187,260 2016 $ 98,279 12,049 4,356 27,973 62,709 $ 205,366 2017 $ 105,927 8,272 4,583 28,418 65,812 $ 213,012 2018 $ 87,552 9,583 4,597 27,286 67,940 $ 196,958 2019 $ 90,172 10,441 4,326 27,238 99,404 $ 231,581 2020 $ 115,920 9,790 4,241 26,863 120,778 $ 277,592 2021 $ 115,093 11,607 4,133 23,952 136,182 $ 290,967 187 SALT LAKE CITY CORPORATION BUSINESS TYPE ACTIVITIES REVENUES BY SOURCE Department of Airports Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year Landing Fees Terminal Space Rentals Other Airline Revenues Car Rental Auto Parking Facilities Terminal Other Revenues Total Operating Revenue 2012 $ 23,059 17,820 6,881 16,697 26,282 23,862 2,859 $ 117,460 2013 $ 23,662 17,576 7,171 17,482 28,619 26,909 2,436 $ 123,855 2014 $ 25,000 16,522 7,098 18,064 29,228 28,432 2,656 $ 127,000 2015 $ 23,199 19,081 7,201 19,341 31,117 29,467 2,864 $ 132,270 2016 $ 27,023 17,559 6,931 22,142 33,409 30,859 3,110 $ 141,033 2017 $ 30,020 17,606 6,844 27,186 34,297 35,042 3,811 $ 154,806 2018 $ 32,742 18,021 6,799 29,181 35,323 39,041 4,441 $ 165,548 2019 $ 35,434 19,355 6,769 29,856 36,297 42,046 3,704 $ 173,461 2020 $ 35,638 24,548 7,031 25,372 27,974 37,634 3,129 $ 161,326 2021 $ 35,996 58,970 7,015 24,317 23,491 31,608 3,287 $ 184,684 Source: Salt Lake City Department of Airports Audited Financial Statements 188 SALT LAKE CITY CORPORATION ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Taxable Value Real Property (1)$ 16,493,332,906 $ 16,550,552,383 $ 17,352,611,888 $ 18,447,638,431 $ 19,620,930,860 $ 21,510,210,091 $ 23,166,703,215 $ 25,742,619,298 $ 28,457,991,692 $ 31,554,370,915 Taxable Personal Property 1,730,989,005 1,680,519,901 1,898,435,962 2,122,489,159 2,132,244,365 2,422,497,725 2,497,760,246 2,655,599,365 3,079,769,010 3,212,675,482 Total Taxable value (2)$ 18,224,321,911 $ 18,231,072,284 $ 19,251,047,850 $ 20,570,127,590 $ 21,753,175,225 $ 23,932,707,816 $ 25,664,463,461 $ 28,398,218,663 $ 31,537,760,702 $ 34,767,046,397 Estimated actual value $ 23,965,183,000 $ 24,078,371,047 $ 25,316,280,083 $ 26,971,066,587 $ 28,594,182,234 $ 31,386,040,131 $ 33,819,886,283 $ 37,255,665,617 $ 41,493,433,320 $ 45,901,481,982 Ratio of total taxable value to estimated actual value 76.0 % 75.7 % 76.0 % 76.3 % 76.1 % 76.3 % 75.9 % 76.2 % 76.0 % 75.7 % Total Direct Tax Rate 0.004622 0.004743 0.005036 0.004893 0.004862 0.004557 0.004286 0.003977 0.003878 0.003540 Source: Utah State Tax Commission (1) Centrally Assessed Values are included in Real Property Values. (2) All taxable property is assessed and taxed on the basis of its fair market value. Utah law requires that the fair market value of property that is assessed by county assessors using a comparable sales or a cost appraisal method exclude expenses related to property sales transactions. For tax purposes, the fair market value of primary property is reduced by 45% under present law. Does not include Fee-in-lieu. 189 SALT LAKE CITY CORPORATION DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years (rates per $1 of assessed value) Components of Direct Rate Overlapping Rates Fiscal Year Discharge of Judgement Interest and Sinking Fund General Operations Total Direct Rate Salt Lake City Library Salt Lake City Schools Salt Lake County Mosquito Abatement District Central Utah Water Conservation Metropolitan Water District 2012 0.000047 0.001124 0.003451 0.004622 0.000817 0.006408 0.002696 0.000131 0.000436 0.000409 2013 0.000072 0.001097 0.003574 0.004743 0.000846 0.006626 0.002793 0.000136 0.000455 0.000423 2014 0.000007 0.001064 0.003965 0.005036 0.000820 0.006651 0.003180 0.000132 0.000446 0.000409 2015 0.000040 0.001066 0.003787 0.004893 0.000782 0.006303 0.003036 0.000127 0.000422 0.000391 2016 0.000012 0.000989 0.003861 0.004862 0.000749 0.006497 0.002531 0.000121 0.000405 0.000373 2017 0.000030 0.000910 0.003617 0.004557 0.000705 0.006180 0.002371 0.000171 0.000400 0.000349 2018 0.000032 0.000772 0.003482 0.004286 0.000834 0.005748 0.002238 0.000160 0.000400 0.000325 2019 0.000049 0.000692 0.003236 0.003977 0.000766 0.005500 0.002025 0.000141 0.000400 0.000302 2020 0.000025 0.000648 0.003205 0.003878 0.000745 0.005393 0.001933 0.000133 0.000400 0.000289 2021 0.000015 0.000583 0.002942 0.003540 0.000683 0.005047 0.001948 0.000122 0.000400 0.000265 Source: Utah State Tax Commission 190 SALT LAKE CITY CORPORATION PRINCIPAL PROPERTY TAX PAYERS Current Year and Ten Years Ago December 31, 2020 taxable valuation December 31, 2011 taxable valuation Taxpayer Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value LDS Church (City Creek Reserve, Deseret Title, Property Reserve)$ 1,066,641,878 1 3.38%$ 705,543,434 1 4.28% Pacificorp 545,349,037 2 1.73% 388,873,207 2 2.36% Delta Air Lines 368,700,450 3 1.17% 166,964,580 4 1.01% Wasatch Plaza Holdings LLC 235,472,900 4 0.75% 155,547,000 5 0.94% MPLD Husky LLC 212,352,900 5 0.67% Skywest Airlines 211,961,850 6 0.67% 138,508,482 7 0.84% KBSIII 200,962,800 7 0.64% Questar Gas 195,331,617 8 0.62% Verizon Communications INC 173,737,213 9 0.55% AT&T INC 147,985,384 10 0.47% Sinclair Oil 193,873,207 3 1.18% Qwest 145,150,287 6 0.88% Inland Western Salt City Gateway 122,130,300 8 0.74% Boyer Properties 112,749,700 9 0.68% Gateway Associates 109,317,300 10 0.66% $ 3,358,496,029 $ 2,238,657,497 Total City Taxable Assessed Value $ 31,554,370,915 $ 16,493,332,906 Source: State of Utah and Salt Lake County 191 SALT LAKE CITY CORPORATION PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) Fiscal Year Ended June 30, Total Tax Levy for Fiscal Year (1) Collected within the Fiscal Year of the Levy Collection in Subsequent Years Total Collections to Date Amount Percentage of Levy Amount Percentage of Levy 2012 $ 83,952,748 $ 81,301,525 96.84 %$ 2,566,814 $ 83,868,339 99.90 % 2013 $ 86,007,266 $ 83,573,386 97.17 %$ 2,285,000 $ 85,858,386 99.83 % 2014 $ 96,505,462 $ 94,031,892 97.44 %$ 2,327,221 $ 96,359,113 99.85 % 2015 $ 101,010,365 $ 98,762,909 97.78 %$ 2,170,196 $ 100,933,105 99.92 % 2016 $ 105,826,492 $ 103,763,673 98.05 %$ 1,994,866 $ 105,758,539 99.94 % 2017 $ 110,330,514 $ 107,585,253 97.51 %$ 2,664,136 $ 110,249,389 99.93 % 2018 $ 110,750,729 $ 108,500,440 97.97 %$ 2,188,565 $ 110,689,005 99.94 % 2019 $ 113,989,191 $ 111,401,720 97.73 %$ 2,192,490 $ 113,594,210 99.65 % 2020 $ 122,801,447 $ 120,692,895 98.28 %$ 1,696,723 $ 122,389,618 99.66 % 2021 $ 124,271,831 $ 121,629,772 97.87 %$ 1,555,042 $ 123,184,814 99.13 % (1) Property taxes are assessed January 1 and due by November 30. Payments are not considered delinquent until after November 30. 192 SALT LAKE CITY CORPORATION RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands except per capita amount) Fiscal Year Ended June 30, Governmental Activities Business-type Activities Total Primary Government Debt Debt as a Percentage of Personal Income (1) Per Capita Debt (1) General Obligation Bonds Special Assessment Bonds Revenue Bonds Gov't Bank Notes Payable Lease Revenue Bonds ISF Bank Notes Payable Discounts / Premiums Revenue Bonds Notes Payable Discounts / Premiums 2012 $ 170,058,269 2,261,000 97,741,763 20,127,643 — 9,933,297 — 73,943,819 19,121,879 — $ 393,187,670 9.59 %$ 2,131 2013 $ 174,849,842 1,702,000 91,542,019 25,846,650 7,272,650 11,882,218 — 72,234,171 15,910,826 — $ 401,240,376 8.25 %$ 2,157 2014 $ 168,468,249 1,403,000 145,656,584 13,697,163 14,679,511 12,908,684 — 127,806,100 13,542,280 — $ 498,161,571 9.73 %$ 2,668 2015 $ 155,383,027 1,092,000 158,659,372 13,446,081 14,637,260 13,992,118 — 133,082,026 18,917,800 — $ 509,209,684 8.71 %$ 2,707 2016 $ 141,774,839 779,000 152,180,076 12,177,210 21,546,804 12,817,493 — 124,306,030 19,672,287 — $ 485,253,739 8.60 %$ 2,564 2017 $ 128,161,987 548,000 141,752,091 10,877,435 30,465,962 12,050,580 — 1,314,528,924 19,447,295 — $ 1,657,832,274 30.58 %$ 8,694 2018 $ 127,100,000 373,000 128,505,000 9,513,210 27,340,000 12,485,463 9,356,662 1,181,180,000 19,023,112 133,674,644 $ 1,648,551,091 27.61 %$ 8,611 2019 $ 113,420,000 190,000 119,035,000 9,225,734 26,550,000 13,782,429 8,873,645 2,023,560,000 17,115,266 205,111,966 $ 2,536,864,040 39.64 %$ 13,064 2020 $ 102,045,000 — 115,845,000 8,263,371 25,465,000 15,247,377 10,577,589 2,014,790,000 16,534,858 197,284,816 $ 2,506,053,011 36.00 %$ 12,495 2021 $ 106,525,000 — 105,310,000 7,259,227 24,345,000 12,253,469 11,256,588 2,157,895,000 280,937,922 228,370,373 $ 2,934,152,579 39.94 %$ 14,629 Note: Details regarding the City's outstanding debt can be found in Note 6 of the notes to the financial statements. (1) - Demographic information is found on page 196 193 SALT LAKE CITY CORPORATION RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (amounts expressed in thousands, except per capita amount) Fiscal Year Ended June 30, General Obligation Bonds Less: Amounts Available In Debt Service Fund Total Percentage of Estimated Actual Taxable Value of Property Per Capita 2012 $ 170,058 235 $ 169,823 0.71%$ 921 2013 $ 174,850 22 $ 174,828 0.73%$ 940 2014 $ 168,468 4,430 $ 164,038 0.65%$ 878 2015 $ 155,383 4,677 $ 150,706 0.56%$ 801 2016 $ 141,775 1,975 $ 139,800 0.49%$ 739 2017 $ 128,163 1,829 $ 126,334 0.40%$ 663 2018 $ 127,100 17,401 $ 109,699 0.32%$ 573 2019 $ 113,420 19,162 $ 94,258 0.25%$ 485 2020 $ 102,045 5,252 $ 96,793 0.23%$ 483 2021 $ 106,525 4,943 $ 101,582 0.22%$ 509 194 SALT LAKE CITY CORPORATION COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 2021 Total debt Applicable to City Debt ratios (1) Percentage Amount Total taxable value of (2) Total fair market value of (2) Per capita - population of $34,767,046,397 $45,901,481,982 200,567 Total governmental activities direct debt $ 290,790,488 100.00%$ 266,949,284 0.77%0.58%$1,336.60 Overlapping debt: Salt Lake County (3)152,875,000 26.00% 39,747,500 Central Utah Water Conservancy District (4)167,587,665 16.91%28,339,074 Salt Lake City School District (4) 12,360,000 100% 12,360,000 Total Overlapping debt (5)$ 332,822,665 80,446,574 Total debt applicable to the City $ 347,395,858 1.00%0.76%$1,739.39 Source: Salt Lake City Department of Finance (1) The State of Utah general obligation debt is not included in the debt ratios because the State of Utah currently levies no ad valorem tax for payment of general obligation bonds. (2) Total taxable and fair market values exclude Fees in Lieu. (3) Salt Lake County GO bonds per ACFR (12/31/20). (4) Salt Lake City School District and Central Utah Water Conservancy District GO bonds per ACFR (6/30/21). (5) Overlapping debt is calculated using all debt from Salt Lake City School District and debt from Salt Lake County allocated by geographical percentage. 195 3waste SALT LAKE CITY CORPORATION LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years (amounts expressed in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Purposes - 4% Debt Limit $ 958,607 $ 963,135 $ 1,012,651 $ 1,078,843 $ 1,143,767 $ 1,255,442 $ 1,352,795 $ 1,490,227 $ 1,659,737 $ 1,836,059 Less: Total net debt applicable to limit (2) 169,823 174,828 164,038 150,706 139,800 126,334 109,699 94,258 96,793 101,582 Legal Debt Margin $ 788,784 $ 788,307 $ 848,613 $ 928,136 $ 1,003,968 $ 1,129,108 $ 1,243,096 $ 1,395,968 $ 1,562,944 $ 1,734,478 Total net debt applicable to the limit as a percentage of debt limit 17.72 % 18.15 % 16.20 % 13.97 % 12.22 % 10.06 % 8.11 % 6.33 % 5.83 % 5.53 % Water, sewer and lighting - 4% Debt Limit $ 958,607 $ 963,135 $ 1,012,651 $ 1,078,843 $ 1,143,767 $ 1,255,442 $ 1,352,795 $ 1,490,227 $ 1,659,737 $ 1,836,059 Total net debt applicable to limit — — — — — — — — — — Legal Debt Margin $ 958,607 $ 963,135 $ 1,012,651 $ 1,078,843 $ 1,143,767 $ 1,255,442 $ 1,352,795 $ 1,490,227 $ 1,659,737 $ 1,836,059 Total net debt applicable to the limit as a percentage of debt limit — % — % — % — % — % — % — % — % — % — % Total - 8% (1) Debt Limit $ 1,917,215 $ 1,926,270 $ 2,025,302 $ 2,157,685 $ 2,287,535 $ 2,510,883 $ 2,705,591 $ 2,980,453 $ 3,319,475 $ 3,672,119 Total net debt applicable to limit 169,823 174,828 164,038 150,706 139,800 126,334 109,699 94,258 96,793 101,582 Legal Debt Margin $ 1,747,392 $ 1,751,442 $ 1,861,264 $ 2,006,979 $ 2,147,735 $ 2,384,549 $ 2,595,892 $ 2,886,195 $ 3,222,682 $ 3,570,537 Total net debt applicable to the limit as a percentage of debt limit 8.86 % 9.08 % 8.10 % 6.98 % 6.11 % 5.03 % 4.05 % 3.16 % 2.92 % 2.77 % (1) The general obligation bonded debt of the City is limited by statute to 8% of the "reasonable fair cash value" of taxable property in the City. Of this amount, a maximum of 4% may be used for general purposes. The remaining 4% and any unused portion of the 4% available for general purposes up to the maximum 8% may be utilized for sewer and/or water purposes. Legal Debt Margin Calculation for Fiscal Year 2021 Total estimated actual value $ 45,901,482 Debt limit (8% of total estimated actual value) 3,672,119 Debt applicable to limit: (2) The total net debt applicable to limit is netted with Restricted Fund Balance of Debt Service Fund.General obligation bonds 106,525 Less: Amount set aside for repayment of general obligation debt (4,943) Total net debt applicable to limit 101,582 Legal debt margin $ 3,570,537 196 SALT LAKE CITY CORPORATION PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) Revenue Bonds Special Improvement Bonds Fiscal Year Ended June 30, Gross Revenues (1) Less: Operating Expenses (2) Net Available Revenues Debt Service (5) Coverage Special Improvement Collections Debt Service Principal Interest Principal Interest Coverage Revenue Bonds - Governmental Activities 2012 $ 52,405 — 52,405 5,025 4,054 5.77 %$ 602 596 136 0.82 % 2013 $ 56,601 — 56,601 6,135 4,189 5.48 %$ 4,693 619 112 6.42 % 2014 $ 58,323 — 58,323 6,465 4,531 5.30 %$ 438 559 88 0.68 % 2015 $ 60,943 — 60,943 6,586 4,406 5.54 %$ 371 299 67 1.01 % 2016 $ 63,727 — 63,727 8,110 7,391 4.11 %$ 332 311 54 0.91 % 2017 $ 68,082 — 68,082 9,285 5,128 4.72 %$ 244 313 42 0.69 % 2018 $ 72,322 — 72,322 9,570 6,985 4.37 %$ 241 231 28 0.93 % 2019 $ 108,894 — 108,894 10,020 5,984 6.80 %$ 212 175 18 1.10 % 2020 $ 125,604 — 125,604 10,260 5,737 7.85 %$ 41 190 6 0.21 % 2021 $ 130,859 — 130,859 10,535 3,497 9.33 %$ 33 — 1 31.37 % Fiscal Year Ended June 30, Gross Revenues (3) Less: Operating Expenses (4) Net Available Revenues Debt Service Principal Interest Coverage Revenue Bonds - Business-type activities 2012 $ 300,988 175,118 125,871 9,618 9,079 6.73 % 2013 $ 322,654 190,267 132,387 13,681 9,243 5.78 % 2014 $ 331,683 177,519 154,164 12,860 8,677 7.16 % 2015 $ 341,731 180,960 160,771 12,532 9,541 7.28 % 2016 $ 354,161 210,349 143,812 9,264 8,821 7.95 % 2017 $ 388,238 220,679 167,558 11,572 2,964 11.53 % 2018 $ 406,269 215,619 190,650 11,834 10,868 8.40 % 2019 $ 437,553 222,618 214,935 10,437 10,560 10.24 % 2020 $ 424,623 240,680 183,943 55,910 15,022 2.59 % 2021 $ 408,403 259,097 149,307 18,458 101,034 1.25 % (1) Gross revenues includes sales, use and excise taxes, Class C Road funds and rental income from the Local Building Authority Fund. (2) Excludes depreciation and amortization. (3) Gross revenues include operating revenues, property tax increments, gains/(losses) on the sale of property and equipment, and passenger facility charges. (4) Excludes depreciation and amortization. (5) Principal payments are net of any defeased or refinanced amounts. 197 SALT LAKE CITY CORPORATION DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Fiscal Year Ended June 30, Population Estimate (1) Per Capita Personal Income (2) Total Personal Income (amount expressed in thousands) Number of residents 18 years and older (1) High School Graduates (3) Average Daily School Membership (3) Unemployment Rate (4) 2012 184,488 $ 22,217 $ 4,098,770 141,694 1,219 24,336 4.9 % 2013 186,009 $ 26,142 $ 4,862,647 143,965 1,327 24,365 4.4 % 2014 186,740 $ 27,430 $ 5,122,278 144,645 1,367 24,007 3.7 % 2015 188,141 $ 31,065 $ 5,844,600 145,634 1,473 24,447 3.6 % 2016 189,267 $ 29,803 $ 5,640,724 147,619 1,517 24,127 3.3 % 2017 190,679 $ 28,428 $ 5,420,623 149,552 1,499 24,211 3.3 % 2018 191,446 $ 31,188 $ 5,970,818 150,894 1,603 23,726 3.1 % 2019 194,188 $ 32,954 $ 6,399,271 153,512 1,505 23,336 2.8 % 2020 200,567 $ 34,711 $ 6,961,881 160,824 1,651 22,921 8.3 % 2021 199,723 $ 36,779 $ 7,345,612 159,379 1,614 20,782 3.1 % (1) U.S. Census Bureau, American Community Survey 5-Year Estimates (2) U.S. Census Bureau, Quick Facts (3) Salt Lake City School District (4) United States Bureau of Labor Statistics, Local Area Unemployment Statistics, SLC at June 30. 198 SALT LAKE CITY CORPORATION FULL-TIME EQUIVALENT CITY GOVERNMENT BY FUNCTIONS Last Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 DEPARTMENT General Fund Attorney's Office 54.00 56.70 56.70 53.75 53.25 50.25 51.25 49.25 50.25 50.25 City Council 24.13 25.88 25.88 28.00 28.00 30.00 33.00 33.00 35.00 35.00 Communications Bureau — 73.00 81.00 81.00 81.00 94.00 97.00 97.00 100.00 100.00 Community and Neighborhood 190.80 192.55 193.55 200.25 206.00 190.00 192.00 195.00 207.00 207.00 Economic Development — — — — — 11.00 13.00 15.00 16.00 18.00 Finance 49.20 57.20 57.20 58.20 63.70 64.70 65.70 68.70 69.70 69.70 Fire 356.50 324.50 336.00 340.00 340.00 341.00 345.00 347.00 366.00 366.00 Human Resources 21.26 22.26 22.26 22.56 22.56 22.56 22.66 21.05 22.05 21.20 Justice Courts 46.00 43.50 44.50 47.00 44.00 44.00 44.00 44.00 44.00 42.00 Mayor's Office 24.00 25.00 24.00 25.00 21.00 21.00 23.00 23.00 24.00 26.00 Police 585.00 537.00 533.00 533.00 558.00 555.00 565.00 620.00 711.00 711.00 Public Services 229.08 236.13 242.13 286.03 294.40 298.75 306.75 332.35 341.35 329.35 General Fund Total 1,579.97 1,593.72 1,616.22 1,674.79 1,711.91 1,722.26 1,758.36 1,845.35 1,986.35 1,975.50 Enterprise Funds Airport 555.30 557.30 557.30 557.30 555.30 555.30 564.80 570.80 563.80 610.80 Golf 40.40 40.40 40.40 40.65 40.65 34.65 33.65 34.65 34.65 34.65 Public Utilities 382.00 382.00 387.00 390.00 392.00 394.00 397.00 411.00 427.00 435.00 Redevelopment Agency 13.75 14.00 14.00 15.80 15.80 16.50 16.00 16.00 19.00 32.00 Sustainability (1) 38.30 44.60 49.60 53.95 53.95 57.95 57.95 63.00 63.00 63.00 Enterprise Fund Total 1,029.75 1,038.30 1,048.30 1,057.70 1,057.70 1,058.40 1,069.40 1,095.45 1,107.45 1,175.45 Internal Service Funds Information Management Services 60.50 66.50 68.25 70.00 70.00 70.00 71.00 71.00 71.00 69.00 Fleet Management 67.60 39.00 41.00 40.00 41.00 42.00 45.00 45.00 45.00 45.00 Government Immunity 6.54 6.54 6.54 5.50 6.50 6.50 6.50 8.50 8.50 8.50 Risk Management 2.00 2.80 2.80 6.24 5.74 5.74 5.64 6.25 6.25 6.10 Internal Service Fund Total 136.64 114.84 118.59 121.74 123.24 124.24 128.14 130.75 130.75 128.60 Funding Our Future Special Revenue Fund Total 1.08 — — — — — — — 3.00 3.00 TOTAL POSITIONS 2,747.44 2,746.86 2,783.11 2,854.23 2,892.85 2,904.90 2,955.90 3,071.55 3,227.55 3,282.55 Source: Salt Lake City Mayor's Recommended Budget, Staffing Document Summary. (1) Formerly titled Refuse/Environmental Management 199 SALT LAKE CITY CORPORATION PRINCIPAL EMPLOYERS Current Year and Ten Years Ago December 31, 2020 December 31, 2010 Employer Number Employees Rank Percent of all Employees Number Employees Rank Percent of all Employees University of Utah (including hospital)7,000 -9,999 1 6.22%-8.89%7,000 -9,999 1 7.32%-10.45% Amazon SLC1 5,000 -6,999 2 4.45%-6.22% Salt Lake County 5,000 -6,999 3 4.45%-6.22%5,000 -6,999 2 5.23%-7.32% Delta Airlines 3,000 -3,999 4 2.67%-3.56%3,000 -3,999 5 3.14 -4.18 Discover Products Inc.3,000 -3,999 5 2.67%-3.56%3,000 -3,999 6 3.14%4.18% Primary Childrens Medical Center 3,000 -3,999 6 2.67%-3.56%3,000 -3,999 8 3.14%-4.18% Salt Lake City Corporation 3,000 -3,999 7 2.67%-3.56% United States Postal Service 3,000 -3,999 8 2.67%-3.56% Salt Lake City School District 2,000 -2,999 9 1.78%-2.67% VA Salt Lake CIty Health Care Systems 2,000 -2,999 10 1.78%-2.67%2,000 -2,999 10 2.09%-3.13% University of Utah 4,000 -4,999 3 4.18%-5.23% CR England 3,000 -3,999 4 3.14%-4.18% L3 Communications 3,000 -3,999 7 3.14%-4.18% UPS 2,000 -2,999 9 2.09%-3.13% Estimated total number of employees in Salt Lake City.112,477 32.03%-44.47%95,674 36.61%-50.16% Source: Workforce Services - Based on yearly averages 200 SALT LAKE CITY COPORATION OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function Fire Medical Calls 20,728 21,088 23,277 23,030 24,297 24,024 22,045 21,417 22,086 22,292 Fire Calls 5,559 5,371 5,385 5,542 5,777 6,406 6,776 6,891 7,132 7,884 Average dispatch time on medical emergencies :58 1:37 :56 :58 :49 :46 :55 :53 :52 :53 Average time responding to life threatening emergencies (2)4:28 4:13 4:38 3:54 2:11 4:00 4:00 3:49 4:54 N/A Police (calendar year) Median Priority 1 Response Time In Minutes (1)5:22 5:37 5:44 5:44 5:40 6:00 6:19 6:02 5:36 12.55 Community Development Percent of business license inspections conducted within 30 days TBD 100 TBD 100 1 100 % 100 % 100 %100 %100 % Number of building inspections conducted per day TBD 129 134 136 161 160 167 207 239 195 Percent of transportation service requests completed within 10 working days 99 % 99 % 91 % 81 % 84 % 80 % 82 % 92 %87 % 84 % Public Services Forestry - Number of trees pruned per month (average) 431 411 463 325 244 392 278 266 442 292 Water Total million gallons water delivered 31,746 31,644 30,168 27,853 25,991 24,491 25,438 23,954 24,423 25,127 Per capita delivered - gallons per day 203 216 242 185 207 193 198 184 186 191 Airport Total enplaned passengers (in thousands) 10,125 10,044 10,294 10,834 11,293 11,850 12,420 13,090 10,096 7,710 Cargo pounds (in thousands) 346,061 343,525 325,535 330,712 350,906 367,050 380,286 407,899 399,971 424,521 Sewer Total Plant Flow (million gallons) 11,740 11,247 10,212 10,087 10,418 10,554 10,211 12,217 11,849 10,492 Total influent (TBOD) biochemical oxygen demand (in thousand pounds) 20,728 17,517 17,401 17,864 18,765 19,659 26,985 29,729 21,333 22,869 Housing & Loan Rehab Loans 58 85 109 108 80 72 113 60 35 26 Rehab units 65 110 124 125 89 217 113 74 35 26 First Time Home Buyer projects 14 8 10 8 4 4 8 7 7 2 Storm Water Utility Line Installation (Linear Feet) 26,282 26,819 12,547 5,872 5,960 11,039 11,940 6,899 13,013 13,541 Refuse Collection Percent of waste stream recycled 22 %N/A N/A N/A N/A N/A N/A N/A N/A N/A Recycling Contamination Rate in Curbside Cans 16 % 8 % 7 % 5.7 % 7 % 7 % 15 % 23.5 % 19.7 % 16 % Percentage of waste stream recycled 16 % 17 % 16 % 17 % 17.2 % 17 % 15 % 12.8 % 12.1 % 12.1 % Golf Number of golf rounds (9 holes equivalent) 461,801 410,166 423,432 415,831 365,671 343,670 355,655 350,550 374,139 455,556 Source: Internal department records (1) The measurement basis for this metric has been changed to be more consistent with the reporting of other local agencies. Previously, the measurement reflected time from dispatch to arrival on-scene. Now the measurement reflects time from initial call to arrival on-scene. (2) This information is no longer available 201 SALT LAKE CITY CORPORATION CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fire Number of stations 14 14 14 14 14 14 14 14 14 14 Sworn fire fighters 312 323 323 323 328 328 324 329 338 345 Non-sworn civilian employees.13 13 13 13 13 13 17 18 18 23 Police protection: Number of officers with power of arrest 424 424 437 417 447 457 508 589 589 589 Number of other police employees 103 99 96 111 111 108 120 122 122 117 Public Services Recreation and culture: Number of municipal parks (2)127 127 126 126 130 81 81 81 81 81 Number of municipal playgrounds 59 59 58 65 67 71 71 77 77 77 Number of municipal golf courses 9 9 9 8 7 7 7 7 7 7 Number of municipal swimming pools (1)5 5 5 5 5 5 5 5 5 5 Lane miles of city owned streets 1,776 1,858 1,858 1,855 1,849 1,850 1,840 1,853.69 1,863 1,873 Street Lighting Number of Street Lights 15,213 15,640 15,511 16,405 15,533 15,565 15,615 15,668 15,677 15,690 Municipal water plants: Number of service connections 90,251 90,352 90,435 90,451 91,467 91,545 91,802 92,026 94,013 92,374 City 55,453 56,074 56,700 56,710 55,409 55,435 55,577 55,656 55,772 55,958 County 34,798 34,278 33,735 33,741 36,058 36,110 36,225 36,370 38,241 36,416 Water supplied to conduits (gallons/year) per thousand 31,746,000 31,644,000 30,168,610 27,853,330 25,990,768 24,490,890 26,231,120 32,840,422 29,331,670 31,027,510 Water shed managed (square miles)190 190 190 190 190 190 190 190 190 190 Number of fire hydrants 10,162 9,948 10,384 10,441 10,494 9,687 9,747 9,835 9,899 9,768 City 6,358 6,224 6,519 6,547 6,592 6,361 6,387 6,460 6,496 6,552 County 3,804 3,724 3,865 3,894 3,902 3,326 3,360 3,375 3,403 3,216 Sewer Utility Number of sewer connections 49,661 49,679 49,779 49,835 49,917 49,924 50,019 50,119 50,195 50,310 Miles of sanitary sewer lines 652 652 653 653 654 655 655 656 656 677 Storm Water Utility: Miles of storm water lines 336 340 341 342 343 345 348 351 351 356 Public Libraries 6 5 5 6 8 8 8 8 8 8 (1) City owns 5 but they are operated by Salt Lake County (2) Beginning in FY17, the City no longer counts medians, greenways, off ramps or open space locations in the parks inventory. Source: Internal department records Miscellaneous Statistics - Most current information available Date of Incorporation January 5, 1851 Form of government (adopted January 7, 1980)Council/Mayor Area (square miles)111 Election data: (Presidential Election) Registered (active voters), November 2016 106,504 Number of votes cast in 2016 local election 95,947 Percentage of registered voters voting 90.09% 202 eidebailly.com Federal Awards Reports in Accordance with the Uniform Guidance and State of Utah Compliance Report June 30, 2021 Salt Lake City Corporation Salt Lake City Corporation Table of Contents June 30, 2021 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................................................... 1 Independent Auditor’s Report on Compliance and Report on Internal Control over Compliance as Required by the State Compliance Audit Guide ............................................................................................................................. 3 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................................................................................................... 5 Schedule of Expenditures of Federal Awards ............................................................................................................ 8 Notes to the Schedule of Expenditures of Federal Awards ..................................................................................... 12 Schedule of Findings and Questioned Costs ............................................................................................................ 13 Summary Schedule of Prior Year Findings ............................................................................................................... 17 Corrective Action Plan.............................................................................................................................................. 19 What inspires you, inspires us. | eidebailly.com 5 Triad Center, Ste. 600 | Salt Lake City, UT 84180-1106 | T 801.532.2200 | F 801.532.7944 | EOE 1 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Mayor and Members of the City Council Salt Lake City Corporation Salt Lake City, Utah 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, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Salt Lake City Corporation, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise Salt Lake City Corporation’s basic financial statements, and have issued our report thereon dated December 23, 2021. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Salt Lake City Corporation’s internal control over financial reporting (internal control) as a basis for designing 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 Salt Lake City Corporation’s internal control. Accordingly, we do not express an opinion on the effectiveness of Salt Lake City Corporation’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 entity’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 over financial reporting 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 financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2021-001 and 2021-002 that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Salt Lake City Corporation’s financial statements are free from 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 2 effect on the financial statements. 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. Salt Lake City Corporation’s Response to Findings Salt Lake City Corporation’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. Salt Lake City Corporation’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Salt Lake City, Utah December 23, 2021 What inspires you, inspires us. | eidebailly.com 5 Triad Center, Ste. 600 | Salt Lake City, UT 84180-1106 | T 801.532.2200 | F 801.532.7944 | EOE 3 Independent Auditor’s Report on Compliance and Report on Internal Control over Compliance as Required by the State Compliance Audit Guide To the Honorable Mayor and Members of the City Council Salt Lake City Corporation Salt Lake City, Utah Report on Compliance We have audited Salt Lake City Corporation’s compliance with the applicable state compliance requirements described in the State Compliance Audit Guide, issued by the Office of the State Auditor, for the year ended June 30, 2021. State compliance requirements were tested for the year ended June 30, 2021 in the following areas: Budgetary Compliance Fund Balance Justice Court Restricted Taxes and Other Related Restricted Revenue Fraud Risk Assessment Governmental Fees Cash Management Enterprise Fund Transfers, Reimbursements, Loans, and Services Tax Levy Revenue Recognition Management’s Responsibility Management is responsible for compliance with the state requirements referred to above. Auditor’s Responsibility Our responsibility is to express an opinion on Salt Lake City Corporation’s compliance based on our audit of the 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 State Compliance Audit Guide. Those standards and the State Compliance Audit Guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on Salt Lake City Corporation occurred. An audit includes examining, on a test basis, evidence about Salt Lake City Corporation’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 with each state compliance requirement referred to above. However, our audit does not provide a legal determination of Salt Lake City Corporation’s compliance. 4 Opinion on Compliance In our opinion, Salt Lake City Corporation complied, in all material respects, with the state compliance requirements referred to above for the year ended June 30, 2021. Report on Internal Control over Compliance Management of Salt Lake City Corporation is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered Salt Lake City Corporation’s internal control over compliance with the compliance requirements referred to above to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance with those state compliance requirements and to test and report on internal control over compliance in accordance with the State Compliance Audit Guide, 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 Salt Lake City Corporation’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 state compliance requirement 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 state compliance requirement 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 state compliance requirement 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. Purpose of Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control and compliance and the results of that testing based on the requirements of the State Compliance Audit Guide. Accordingly, this report is not suitable for any other purpose. Salt Lake City, Utah December 23, 2021 What inspires you, inspires us. | eidebailly.com 5 Triad Center, Ste. 600 | Salt Lake City, UT 84180-1106 | T 801.532.2200 | F 801.532.7944 | EOE 5 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance The Honorable Mayor and Members of the City Council Salt Lake City Corporation Salt Lake City, Utah Report on Compliance for Each Major Federal Program We have audited Salt Lake City Corporation’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Salt Lake City Corporation’s major federal programs for the year ended June 30, 2021. Salt Lake City Corporation’s major federal programs are 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, 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 each of Salt Lake City Corporation’s major federal programs 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 compliance requirements referred to above that could have a direct and material effect on each major federal program occurred. An audit includes examining, on a test basis, evidence about Salt Lake City Corporation’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 each major federal program. However, our audit does not provide a legal determination of Salt Lake City Corporation’s compliance. Opinion on Each Major Federal Program In our opinion, Salt Lake City Corporation complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. 6 Report on Internal Control over Compliance Management of Salt Lake City Corporation is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit of compliance, we considered Salt Lake City Corporation’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each 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 Salt Lake City Corporation’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 compliance requirement 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 that might be material weaknesses or significant deficiencies and therefore, material weaknesses and significant deficiencies may exist that have not been identified. 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. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Salt Lake City Corporation as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise Salt Lake City Corporation’s basic financial statements. We issued our report thereon dated December 23, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 financial statements themselves, and other additional procedures in accordance with 7 auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Salt Lake City, Utah December 23, 2021 See Notes to Schedule of Expenditures of Federal Awards 8 Salt Lake City Corporation Schedule of Expenditures of Federal Awards Year Ended June 30, 2021 Federal Financial Pass-through Assistance Entity Amounts Passed- Listing/Federal Identifying Through to CFDA Number Number Expenditures Subrecipients Department of Agriculture Passed through Rural Development, Farm Service Agency Rural Business Development Grant 10.351 None Provided 14,531$ -$ Passed through Utah State Office of Education Child and Adult Care Food Program 10.558 203UT508N1050 636 - Child and Adult Care Food Program 10.558 N/A 7,404 - Total Child and Adult Care Food Program 8,040 Total Department of Agriculture 22,571 - Department of Housing and Urban Development CDBG - Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants 14.218 N/A 3,559,624 637,784 COVID-19 Community Development Block Grants/ Entitlement Grants 14.218 N/A 285,775 - Total CDBG - Entitlement Grants Cluster 3,845,399 637,784 Emergency Solutions Grant Program 14.231 N/A 285,841 192,484 COVID-19 Emergency Solutions Grant Program 14.231 N/A 886,895 - Total Emergency Solutions Grant Program 1,172,736 192,484 HOME Investments Partnership Program 14.239 N/A 506,160 123,750 Housing Opportunities for Persons With HIV/AIDS 14.241 N/A 670,627 100,720 COVID-19 Housing Opportunities for Persons With HIV/AIDS 14.241 N/A 2,623 - Total Housing Opportunities for Persons With HIV/AIDS 673,250 100,720 Total Department of Housing and Urban Development 6,197,545 1,054,738 Department of Justice COVID-19 Coronavirus Emergency Supplemental Funding Program 16.034 N/A 360,738 - Passed through Utah State Office for Victims of Crime Crime Victim Assistance 16.575 19VOCA051 187,685 - Crime Victim Assistance/ Discretionary Grants 16.582 2019-V3-GX-0071 74,931 - Passed through Young Women's Christian Association of Utah OVW Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program 16.590 2017-WE-AX-0041 16,235 - Public Safety Partnership and Community Policing Grants 16.710 N/A 15,240 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 N/A 272,338 74,899 Passed through Utah Department of Public Safety Bureau of Forensic Services Paul Coverdell Forensic Sciences Improvement Grant Progra 16.742 N/A 1,250 - Paul Coverdell Forensic Sciences Improvement Grant Progra 16.742 N/A 12,280 - Total Paul Coverdell Forensic Sciences Improvement Grant Program 13,530 - Equitable Sharing Program 16.922 N/A 2,220 - Total Department of Justice 942,917 74,899 Federal Grantor/Pass-Through Grantor/Program or Cluster Title See Notes to Schedule of Expenditures of Federal Awards 9 Salt Lake City Corporation Schedule of Expenditures of Federal Awards Year Ended June 30, 2021 Federal Financial Pass-through Assistance Entity Amounts Passed- Listing/Federal Identifying Through to CFDA Number Number Expenditures Subrecipients Department of Transportation Airport Improvement Program 20.106 N/A 26,077,864$ -$ COVID-19 Airport Improvement Program 20.106 N/A 68,853,072 - Total Airport Improvement Program 94,930,936 - Highway Safety Cluster Passed through Utah Department of Public Safety Office State and Community Highway Safety 20.600 HS-2020-SLCPD-00050 3,741 - State and Community Highway Safety 20.600 HS-2020-SLCPD-00051 4,825 - Total Highway Safety Cluster 8,566 - Total Department of Transportation 94,939,502 - Department of Treasury COVID-19 Coronavirus Relief Fund 21.019 N/A 10,015 - Passed through Salt Lake County COVID-19 Coronavirus Relief Fund 21.019 0000002526 11,711,251 - Total Coronavirus Relief Fund 11,721,266 - COVID-19 Emergency Rental Assistance 21.023 ERA-2101112470 3,914,817 - Passed through Salt Lake County COVID-19 Coronavirus State and Local Fiscal Recovery Fund 21.027 0000002526 1,193,000 - Total Department of Treasury 16,829,083 - National Foundation on the Arts and the Humanities Grants to States 45.310 N/A 14,558 - Poets House Inc.45.312 N/A 299,048 - Teen Intern 45.313 N/A 3,500 - Total National Endowment for the Arts and the Humanities 317,106 - Federal Grantor/Pass-Through Grantor/Program or Cluster Title See Notes to Schedule of Expenditures of Federal Awards 10 Salt Lake City Corporation Schedule of Expenditures of Federal Awards Year Ended June 30, 2021 Federal Financial Pass-through Assistance Entity Amounts Passed- Listing/Federal Identifying Through to CFDA Number Number Expenditures Subrecipients Department of Health and Human Services TANF Cluster Passed through from Utah Department of Workforce Services Temporary Assistance for Needy Families 93.558 20DWS0102 38,850$ -$ Temporary Assistance for Needy Families 93.558 20DWS0098 48,890 - Temporary Assistance for Needy Families 93.558 20DWS0097 49,604 - Temporary Assistance for Needy Families 93.558 20DWS0093 47,916 - Temporary Assistance for Needy Families 93.558 21DWS0006 95,397 - Temporary Assistance for Needy Families 93.558 21DWS0020 92,350 - Total TANF Cluster 373,007 - CCDF Cluster Passed through from Utah Department of Workforce Services Child Care and Development Block Grant 93.575 20DWS0038 250,000 - Child Care and Development Block Grant 93.575 20DWS0757 16,060 - Child Care and Development Block Grant 93.575 20DWS0753 15,584 - Child Care and Development Block Grant 93.575 20DWS0754 19,233 - Child Care and Development Block Grant 93.575 20DWS0755 21,602 - Child Care and Development Block Grant 93.575 20DWS0756 19,934 - Child Care and Development Block Grant 93.575 21DWS0083 62,456 - Child Care and Development Block Grant 93.575 21DWS0084 119,769 - Child Care and Development Block Grant 93.575 21DWS0086 51,785 - Child Care and Development Block Grant 93.575 21DWS0085 68,949 - Child Care and Development Block Grant 93.575 21DWS0087 80,363 - Total CCDF Cluster 725,735 - Community Wellness Liasions 93.879 N/A 26,762 - Total Department of Health and Human Services 1,125,504 - Executive Office of the President High Intensity Drug Trafficing Areas Program 95.001 N/A 615,815 - Total Executive Office of the President 615,815 - Federal Grantor/Pass-Through Grantor/Program or Cluster Title See Notes to Schedule of Expenditures of Federal Awards 11 Salt Lake City Corporation Schedule of Expenditures of Federal Awards Year Ended June 30, 2021 Federal Financial Pass-through Assistance Entity Amounts Passed- Listing/Federal Identifying Through to CFDA Number Number Expenditures Subrecipients Department of Homeland Security Passed through Utah Department of Public Safety Pre-Disaster Mitigation 97.047 EMD-2019-PC-0006 4,248$ -$ Pre-Disaster Mitigation 97.047 EMD-2018-PC-0003 151,865 - Total Pre-Disaster Mitigation 156,113 Passed through Utah Department of Public Safety Homeland Security Grant Program 97.067 DEM-2017-SHSP-002 59,305 - Homeland Security Grant Program 97.067 DEM-2017-UASI-001 62,067 - Total Homeland Security Grant Program 121,372 National Explosives Detection Canine Team Program 97.072 N/A 378,749 - Law Enforcement Personnel Reimbursement Agreement 97.090 N/A 332,700 - Total Department of Homeland Security 988,934 - Total Federal Financial Assistance 121,978,977$ 1,129,637$ Federal Grantor/Pass-Through Grantor/Program or Cluster Title 12 Salt Lake City Corporation Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2021 Note 1 – Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Salt Lake City Corporation under programs of the federal government for the year ended June 30, 2021. The information 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 Salt Lake City Corporation, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of Salt Lake City Corporation. Note 2 – Summary of Significant Accounting Policies Expenditures reported in the schedule are reported on the modified accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3 – Indirect Cost Rate Salt Lake City Corporation has not elected to use the 10% de minimis cost rate. Note 4 – Loan Programs Expenditures reported under the HOME Investments Partnership Program in the schedule consist of advances made on the loans during the year. The amount advanced during the year ended June 30, 2021, was $734,059. 13 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2021 Section I – Summary of Auditor’s Results FINANCIAL STATEMENTS Type of auditor's report issued Unmodified Internal control over financial reporting: Material weaknesses identified YesSignificant deficiencies identified not considered to be material weaknesses No Noncompliance material to financial statements noted?No FEDERAL AWARDS Internal control over major program: Material weaknesses identified NoSignificant deficiencies identified not considered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs:Unmodified Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516 No Identification of major programs: Federal Financial Assistance Listing/CFDA Number CDBG-Entitlement Grants Cluster 14.218Airport Improvement Program 20.106Coronavirus Relief Fund 21.019Emergency Rental Assistance 21.023 Dollar threshold used to distinguish between type A and type B programs $3,000,000 Auditee qualified as low-risk auditee?No Name of Federal Program 14 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2021 Section II – Financial Statement Findings 2021-001 Account Reconciliation Material Weakness in Internal Control Criteria: Salt Lake City Corporation and its management are responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement in accordance with accounting principles generally accepted in the United States, whether due to fraud or error. Condition: During the audit we identified multiple audit adjustment that in aggregate represent a material adjustment to the financial statements. Audit adjustments were proposed that impacted accounts receivable, property tax receivable, notes receivable, prepaids, investments, compensated absences, unearned revenue, and revenue. Cause: Multiple schedules supporting financial statement balances contained errors leading to inaccurate financial reporting. These issues were not reconciled or reviewed by an appropriate individual prior to the initial financial close or during the financial statement preparation process. Effect: If the audit adjustments had not been made, the financial statements could have material misstatements. Recommendation: We recommend that management review the process and timing of reconciliation of year end items, as well as continuing to provide training to those performing those reconciliations. We also recommend that management review the persons who should be considered qualified to review all journal entries and year end reconciliations. Views of Responsible Officials: Management has reviewed the errors with the responsible employees. Some of these errors occurred due to a lack of review by those responsible, some from understaffing and the effects of COVID, and some from a failure of employees to complete assigned tasks. Management is developing plans to ensure each failure is fixed and processes identified to ensure adjustments and reconciliations are complete and accurate. These plans include review by division leaders and secondary review by the accounting reporting team. Those employees who failed in their financial responsibilities are under disciplinary review. Their performance will be monitored to ensure they are able to perform their tasks. If those tasks cannot be accomplished, the tasks will be reassigned. 15 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2021 2021-002 Housing Audit Adjustments Material Weakness in Internal Control Criteria: Salt Lake City Corporation and its management are responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement in accordance with accounting principles generally accepted in the United States, whether due to fraud or error. Condition: During the audit we identified a housing loan that was recorded as an expenditure instead of recording the corresponding receivable. Cause: The error was result of numerous items including change in systems, communication between departments, appropriate tracking of loans and reconciliation of amounts to the general ledger. Effect: If the audit adjustment had not been made, the financial statements could have a significant misstatement. Recommendation: We recommend that management review the process for recording, tracking and reconciling housing loans and implement appropriate procedures to assure each loan is adequately identified and recorded. Views of Responsible Officials: Typically, the Accounting Division completes a monthly reconciliation between the Housing’s division new loans and payments from the loan system to the financial system. During fiscal year 2021 the Housing department purchased a new loan system. There were multiple problems transitioning from the old loan system to the new loan system making it impossible to perform the monthly reconciliation. The new loan system was just barely serviceable when accounting tried to reconcile many months’ worth of data for the audit. The first file received from the new loan system was flawed and due to the deadlines of the audit was presented to the auditor for review. Another file was then generated from the new loan system and included a missing new loan. This correction was then presented to the auditors thereby creating a finding. Now that the loan system is up and running, both systems are again being reconciled monthly. This should prevent this error from happening. 16 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2021 Section III – Compliance Findings None Section IV – Federal Award Findings and Questioned Costs None 17 DEPARTMENT of FINANCE ERIN MENDENHALL MARY BETH THOMPSON Mayor Chief Financial Officer Summary Schedule of Prior Audit Findings and Corrective Action Plan December 23, 2021 Summary Schedule of Prior Audit Findings Financial Statement Findings Finding 2020-001 Initial Fiscal Year Finding Occurred: 2020 Finding Summary: In the Statement of Net position of RDA as of June 30, 2019, net position restricted for construction and loan commitments was overstated by $14,635,907 and unrestricted net position was understated by the same amount. Additionally, restricted cash and cash equivalents was overstated by $14,635,908 and unrestricted cash and cash equivalents was understated by the same amount. There was no change to total net position. Status: This finding was corrected during fiscal year 2020 and did not occur in fiscal year 2021. Finding 2020-002 Initial Fiscal Year Finding Occurred: 2020 Finding Summary: During the audit an audit adjustment that in aggregate represented a significant adjustment to the financial statements. Audit adjustments were proposed that impacted cash, deferred inflows and revenue. Status: This finding was corrected during fiscal year 2020 and did not occur in fiscal year 2021. Management believes the errors would have been corrected during the final reconciliations. However, due to staff resources and time constraints, account reconciliations and audit review occur simultaneously. Although the goal is to have everything reconciled, sometimes auditors will review work that has not yet been reconciled resulting in a similar comment. 18 Financial Statements Findings (continued) Finding 2020-003 Initial Fiscal Year Finding Occurred: 2020 Finding Summary: An immaterial amount of B and C Road Funds were used for purposes not allowed under their restrictions. Status: Public services inadvertently included an administrative cost center in the Class C sample. The audit sample selected an administrative expenditure that was never expected to be paid with Class C Funding. The legitimate Class C expenditures exceeded what was required to be spent on Class C funding. No changes were needed, and the cost center was not included in fiscal year 2020 sample. Finding 2020-004 Initial Fiscal Year Finding Occurred: 2020 Finding Summary: The office of the Utah State Auditor requires a Fraud Risk Assessment be completed annually. The Fraud Risk Assessment was not completed as required. Status: Management was unaware of this new requirement but was able to complete the form for fiscal year 2020 although it was too late to present to the City Council. The form for fiscal year 2021 was completed and was presented to Council but for some reason was not included in the minutes. We have requested a formal agenda item from Council staff to ensure verifiable compliance in the future. 19 Corrective Action Plan FINANCIAL STATEMENT FINDINGS Finding 2021-001 Finding Summary: During the audit the auditors’ identified multiple audit adjustments that represented a material adjustment to the financial statements. Audit adjustments were proposed that impacted accounts receivable, notes receivable, prepaids, investments, compensated absences, unearned revenue and revenue. Responsible Individuals: Finance department and division directors Corrective Action Plan: Management has reviewed the errors with the responsible employees. Some of these errors occurred due to a lack of review by those responsible, some from understaffing and the effects of COVID, and some from a failure of employees to complete assigned tasks. Management is developing plans to ensure each failure is fixed and processes identified to ensure adjustments and reconciliations are complete and accurate. These plans include review by division leaders and secondary review by the accounting reporting team. Those employees who failed in their financial responsibilities are under disciplinary review. Their performance will be monitored to ensure they are able to perform their tasks. If those tasks cannot be accomplished, the tasks will be reassigned. Anticipated Completion Date: Most have been completed but one is ongoing. Finding 2021-002 Finding Summary: The audit identified a housing loan that was recorded as an expenditure instead of recording the corresponding receivable. Responsible Individuals: Comptroller and treasury staff Corrective Action Plan: Typically, the Accounting Division completes a monthly reconciliation between the Housing’s division new loans and payments from the loan system to the financial system. During fiscal year 2021 the Housing department purchased a new loan system. There were multiple problems transitioning from the old loan system to the new loan system making it impossible to perform the monthly reconciliation. The new loan system was just barely serviceable when accounting tried to reconcile many months’ worth of data for the audit. The first file received from the new loan system was flawed and due to the deadlines of the audit was presented to the auditor for review. Another file was then generated from the new loan system and included a missing new loan. This correction was then presented to the auditors thereby creating a finding. Now that the loan system is up and running, both systems are again being reconciled monthly. This should prevent this error from happening. Anticipated Completion Date: Completed 20 FEDERAL AWARD FINDINGS No federal award findings MARY BETH THOMPSON Finance Director ERIN MENDENHALL Mayor DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 CITY COUNCIL TRANSMITTAL ______________________________ Date Received: ___________ Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________ ____________________________________________ ____________________________ TO: Salt Lake City Council DATE: January 4, 2022 Dan Dugan FROM: Mary Beth Thompson, Chief Financial Officer SUBJECT: Fraud Risk Assessment as required by the State SPONSOR: NA STAFF CONTACT: Mary Beth Thompson, Teresa Beckstrand DOCUMENT TYPE: Fraud Risk Assessment RECOMMENDATION: Review this assessment as part of the City’s financial audit presentation. BUDGET IMPACT: NA BACKGROUND/DISCUSSION: As part of the State Compliance portion of the yearly financial audit, the State Auditors’ Office requires that the City complete, sign and present to the Council the Fraud Risk Assessment document. This document is included with the transmittal to be presented in conjunction with the City Financial audit presentation.” PUBLIC PROCESS: Lisa Shaffer (Jan 4, 2022 16:47 MST) YES YES YES YES YES YES YES YES YES YES YES YES YES NO YES YES YES YES Salt Lake City Corporation 375 Lisa Shaffer June 30, 2022 Mary Beth Thompson 11/10/2021 Lisa Shaffer (Nov 10, 2021 11:36 MST) Yes Yes YES YESWe don't have blank checks. YES TES Yes YES YES YES YES YES 1 January 3, 2022 Memo to City Council Staff – Legal Considerations Regarding Redistricting Redistricting of city council and school board district boundaries is governed by the United States Constitution, federal statutes, Utah statutes, and Salt Lake City Code provisions. Even though the City Council will not be redistricting the Salt Lake City School District board this year, we have left in the discussion about school board redistricting for future use. U.S. Constitution Equal Protection of the Laws The “one person, one vote” rule is based on the Equal Protection Clause of the Fourteenth Amendment and applies to the City Council and school board districts. It requires substantial equality of population among the districts. Reynolds v. Sims, 377 U.S. 533 (1964) Sometimes there is a push for districts based on number of registered voters, actual voters, persons of voting age, or citizens of voting age. However, most courts have ruled that “population” means “total population.” A reason for that is that basing district size on number of voters fails to protect the interests of the many people who reside in a place but don’t vote. Fifteenth Amendment The Fifteenth Amendment provides that “the right of citizens of the United States to vote shall not be denied or abridged . . . on account of race, color, or previous condition of servitude.” 2 Federal Statutes Discrimination in voting against racial or language minorities is prohibited by the Voting Rights Act of 1965, Section 2 (52 U.S.C.A. § 10301). If race is a motive in the redistricting, the courts will probably subject a plan to strict scrutiny, which is very hard to survive. Utah Statutes City Council Each City Council district must be of substantially equal population as the other districts. Utah Code § 10-3-205.5(2)(b)(i). In the redistricting process the Council must make any adjustments in the boundaries of the districts as may be required to maintain districts of substantially equal population. The Council must do that within six months after the Legislature completes its redistricting process. Utah Code § 10-3-205.5(2)(b)(ii). Utah Constitution Art. IX § 1 says: “No later than the annual general session next following the Legislature’s receipt of the results of an enumeration made by the authority of the United States, the Legislature shall divide the state into congressional, legislative, and other districts accordingly. School Board School board districts must be: (1) substantially equal in population, (2) as contiguous as practicable, and (3) as compact as practicable. UCA § 20A-14-201(1)(b). Contiguous 3 “Contiguous” means that no portion of a district is not connected to another portion of the district. Utah Code § 10-1-104(2) defines “contiguous” to mean: (a) if used to describe an area, continuous, uninterrupted, and without an island of territory not included as part of the area; and (b) if used to describe an area's relationship to another area, sharing a common boundary. A court probably would consider that statutory definition to be valid. Compact According to Webster’s New Collegiate Dictionary (1981), “compact” means “having parts or units closely packed or joined.” Courts in some states define “compact” in terms of physical shape or size, such as having a small perimeter in relation to the area composed, and avoiding bizarre designs, or even in terms of a circle containing the least land area outside the district. 114 ALR 5th 311 § 3[a]. Courts in other states define compactness as referring to closely-united territory, which is conducive to constituent-representative communication. Id. at 3[b]. The following ideas were in a redistricting case in Colorado. The compactness requirement specifies that the boundaries of each district shall be as short as possible. One of the most accurate ways to measure compactness is to determine the smallest circle into which the district can be circumscribed and to compare the ratio of the area of the district inside the circle to the area of the circle itself. The closer these figures come to a 1 to 1 ratio, the more compact the district will be. Although there is no federal constitutional standard requiring compact districts, more than half of the states include compactness as a constitutional or statutory criteria for state legislative districting. 4 A second method of measuring compactness is to compare the aggregate linear distance of the boundaries of each district. In a practical sense, the compactness of a district will be directly affected by the density and distribution of a state's population. Since population requirements have priority, compactness must often be sacrificed in order to achieve an acceptable range of population deviation. See Carstens v. Lamm, 543 F. Supp. 68, 87 (D. Colo. 1982) Salt Lake City Code The City Council districts must be of substantially equal population. The districts must be reapportioned after each federal census to maintain substantially equal populations. City Code § 2.06.010. The City Council could amend this, but it could not do so in a way that was inconsistent with state statutes or that violated constitutional requirements. Constitutional Requirements and Guiding Principles The Equal Protection Clause of the Fourteenth Amendment requires election districts or voting units for local governmental offices to be as equal in population as possible. This requirement is known as the "one person, one vote" rule and applies to all political subdivisions, including cities, counties, towns, and villages. . . . Whether a particular manner of apportionment runs afoul of the federal Constitution, is . . . determined on a case-by-case basis. Since the one person, one vote rule applies whenever the governing body to which a challenged districting plan pertains exercises general governmental powers over the entire geographical area that the governing body serves, one consideration in determining the question of population equality is to examine the geographic area to which the election or voting district pertains, as well as the nature of the office or position involved. . . . 5 On the municipal or city level, whether districts for the election of councilmen . . . have been based on population equality has depended on the circumstances presented. . . . The federal courts currently measure "population equality" according to the total population in each district, but that method is not required. Thus, while population equality could be determined on the basis of voting-age population, a violation of equal protection does not occur because a legislative body chooses not to use that method, or chooses not to base equality on the number of registered voters in each district. . . . The Equal Protection Clause . . . requires that, where districts exist, their populations be equal so as to give equal weight to each vote cast. That begs the question: "How equal is equal?" In other words, to what degree may districts deviate from the population equality standard yet satisfy the Equal Protection Clause? There is no fixed percentage that separates the de minimis from the unconstitutional. A useful guideline is that a districting plan with a maximum deviation from population equality (the sum of the percentages by which the most overrepresented district and the most underrepresented district, respectively, deviate from the equality ideal) of less than 10% is likely to pass constitutional muster as a de minimis departure from the one person, one vote rule. Nevertheless, there is no guarantee that any figure, even the reasonably reliable 10%, will ensure constitutionality; courts can require justifications even for deviations of less than 10%, and can reject plans based on those deviations. The plaintiff bears the burden of proving that the deviation from population equality is substantial. Once the plaintiff meets that burden, the defendant must show either that the deviation is unavoidable, or that it is justified by an effort to effectuate a rational state policy. Courts will tolerate slightly larger deviations for local districting plans than for state or congressional plans because: (1) municipalities need flexibility to meet changing needs; (2) it is desirable to preserve the integrity of political subdivisions; and (3) local districts often have small populations and relatively few officeholders. . . . The decennial census is the established basis for redrawing district boundaries in order to account for growth and shifts in population. The Equal Protection Clause does not require that states or political subdivisions 6 redistrict more frequently than once every 10 years, even when population changes are evident. . . .” 143 A.L.R. Fed. 631 §§ 2[a][b] (1998) [“[T]he “one person, one vote” rule requires substantial equality of population in districts. Reynolds v. Sims, 377 U.S. 533, 579 (1964); Board of Estimate of City of New York v. Morris, 489 U.S. 688, 692-93 (1989). However, while the Fourteenth Amendment requires states to make an honest and good faith effort to construct legislative districts as nearly of equal population as is practicable, but it doesn’t demand mathematical perfection. The Constitution permits deviation when it is justified by legitimate considerations incident to the effectuation of a rational state policy, such as compactness, continuity, maintaining the integrity of political subdivisions, or competitive balance among political parties. Harris v. Arizona Independent Redistricting Commission, 578 U.S. 253, 258 (2016) “The supreme court has developed a measure called the "maximum population deviation" to measure disparities in population per legislator in state legislative apportionment cases. The maximum population deviation is calculated by the following steps: First, the apportionment base, usually the state’s population, is divided by the number of legislators in the legislative house under consideration, to arrive at the norm if absolute population equality were achieved. Second, if a district has more persons than the ideal district, the ideal district population is subtracted from the actual district population; the resulting number is then divided by the ideal district population to get the percentage of under-representation. Third, if a district has fewer persons than the ideal district, its population is subtracted from the population of the ideal district; the 7 resulting number is then divided by the ideal district population to get the percentage of over-representation. Finally, when the percentages of under-representation or over- representation have been calculated for all districts (or all legislators in multimember districts), the district that is most over-represented is identified and the district that is most under-represented is identified; these two percentages are then added together to obtain the maximum population deviation.” 25 Am Jur 2d Elections § 25 (2021). For example, suppose that a city’s population is 100,000 and it has seven city council districts. 100,000 divided by seven is 14,286. That is the “ideal district” population, in that each district would have exactly equal population. Suppose further that one district is reapportioned to have only 14,000 people, and another is reapportioned to have 15,000 people. The first district’s deviation from the ideal is -286, which is a 2.0 percent deviation. The second district’s deviation is 714, which is a 5.0 percent deviation. The 2.0 percent and 5.0 percent deviations are added together to get a maximum population deviation, which in this case is 7.0 percent. Though the description above refers to state legislative districts, the principles apply to local government districts. A rule of thumb is that if a maximum population deviation is under ten percent, the redistricting will be presumed to be valid. On the other hand, if the maximum population deviation exceeds ten percent, the governmental entity must bear the burden of establishing that the deviation is not discriminatory. There are many sources that attempt to describe guiding principles or factors that may or may not be taken into account in redistricting. One source is the Utah Independent Redistricting Commission. In 2021 the Commission adopted the following “Threshold Criteria and Redistricting Standards”: 8 Contiguous  No part of a district can be entirely separated from the remainder of the district. Reasonably Compact  To the extent practicable, the Commission will submit maps with districts that are reasonably compact. Districts shall avoid odd shapes or contortions that cannot be explained by other legitimate redistricting criteria. Communities of Interest  The Commission shall, to the extent practicable, preserve communities of interest. A “community of interest” is defined as a group of people in a contiguous geographic area that share common policy interests, whether cultural, religious, social, economic, or others that do not necessarily coincide with the boundaries of a political subdivision. A community of interest cannot be based on a relationship with a political party, incumbent, or political candidate. Geographic Boundaries  The Commission shall, to the extent practicable, follow natural, geographic, or man-made features, boundaries, or barriers when drawing district boundaries. A “geographic boundary” means natural barriers, such as mountain ranges, significant rivers or large lakes, and other bodies of water. A “man-made” feature refers to prominent aspects of the built or human-designed environment, including streets and freeways. Cores of Prior Districts  The Commission shall, to the extent practicable, preserve cores of prior districts. In doing so, the Commission will consider district lines as previously drawn. If possible, the Commission will utilize empirical methods of measuring congruence in prior and proposed district boundaries. 9 Municipalities and Counties  The Commission will, to the extent practicable, submit maps which minimize the division of municipalities and counties across multiple districts. The term “municipality” is defined in Utah Code § 10-1- 104(5). The Commission will, to the extent practicable, rely on quantitative measurements of division. Boundary Agreement  The Commission will, to the extent practicable, seek boundary agreement among the map types submitted. Specifically, the Commission will consider the alignment among the boundaries of the districts for the Utah House of Representatives, the Utah State Senate, the Utah State School Board, and the United States Congress. Purposeful or Undue Favoring  The Commission will, to the extent practicable, prohibit the purposeful or undue favoring or disfavoring of an incumbent elected official, a candidate or prospective candidate for elected office, or a political party. In so doing, the Commission will consider direct or indirect evidence of intent and, where practicable, quantitative measures. The Commission will not use residential addresses of incumbents, candidates, or prospective candidates in creating its proposed maps. Issues Meaning of “Population.” Reliance on the decennial federal census is a constitutionally permissible basis for the apportionment of a legislative body, but it is not the required standard by which substantial population equivalency is to be measured. The Fourteenth Amendment allows apportionment plans to use bases other than population, but only when population figures are unavailable and the figures employed substantially approximate those that would have been derived from a census of the entire population. Accordingly, registered voter figures may be used as the basis for the apportionment of election districts, consistent with the Equal Protection Clause, 10 only if the results substantially reflect results obtainable by the use of another permissible basis, such as total population. See CJS Const. Law § 1438 (2021). Parents of School-aged Children? It has been suggested that the City Council consider measuring “equal population” by the number of parents of children in the public schools, rather than the general population. However, because that is a restriction on voting other than residence, age, or citizenship, courts would apply strict scrutiny in analyzing the restriction. Strict scrutiny is extremely difficult to satisfy. The purpose of the one person, one vote rule is to guarantee that “the vote of any citizen is approximately equal in weight to that of any other citizen.” Board of Estimate v. Morris, 489 U.S. 688, 701 (1989). Therefore, the rule is intended to protect voters and citizens, not just parents. Courts have struck down attempts to use something other than general population, such as property owners. See City of Herriman v. Bell, 590 F.3d 1176, 1186 (10 th Cir. 2010). The court cited examples, including what it described as the “law restricting voting in a school district election to those owning or leasing taxable property or having children enrolled in that school district.” (Emphasis added.) The Supreme Court, in Kramer v. Union Free School District No. 15, 395 U.S. 621 (1969), ruled that a law that restricted voting in a school district election to people owning or leasing taxable property or having children enrolled in that school district was an unconstitutional violation of equal protection. More recently, the Illinois supreme court struck down a law that denied the vote in school council elections to voters who did not, at the time of the election, have children attending the public schools. Fumarolo v. Chicago Board of Education, 566 N.E.2d 1283, 1300 (Ill. 1990). The court applied strict scrutiny and said that there had been no evidence that voters who do not have children attending the public school have less interest in the candidates to be elected, or that parents with children attending public schools have a special ability to choose school council members. It said it was unreasonable to deny an equal voice to citizens who do not, at the time, have children in the public schools. 11 Hypothetical Situation Suppose that a school district with a population of 70,000 contained seven existing voting districts, each containing 10,000 people. Suppose further that there are 35,000 school-aged children in the entire district. Suppose that District No. 1 contains 2,000 parents of school-aged children and District No. 2 contains 5,000 parents of school-aged children. If it were proposed to redistrict based on number of parents with school-aged children, then District No. 2 would be right at the ideal number. However, the number of parents with such children in No. 1 would have to be increased to get closer to the 5,000 ideal. That would require taking population from other voting districts in order to obtain more such parents for District No. 1. The result might be that District No. 2 might need only 10,000 in overall population to contain 5,000 parents of school-aged children, whereas District No. 1 might have to grow to 20,000 people in order to contain 5,000 such parents. The elected representation from District No. 2 would be 10,000 to 1, but in District No. 1 would be 20,000 to 1. Such a plan would result in the dilution of the votes of the people in District No. 1. The Supreme Court has interpreted the Equal Protection Clause to protect an individual's right to equal voting participation in at least two ways: through rejecting overly restrictive voter qualifications (“vote denial”), and through rejecting disproportionate voting districts (“vote dilution”). * * * With respect to voter apportionment, the Supreme Court has held that the Equal Protection Clause requires state and local entities to divide electoral districts on the basis of population, so that each person's vote is equally effective. . . . These cases all recognize that the collective dilution of many individuals' votes can result in a form of unconstitutional disenfranchisement, even when no one individual is turned away at the ballot box. This principle is best recognized by the catch- phrase “one person, one vote.” Kirk v. Carpeneti, 623 F.3d 889 (9th Cir. 2010) (Emphasis added.) 12 In summarizing Kramer, the Supreme Court later said: “The fact that the school district was supported by a property tax did not mean that only those subject to direct assessment felt the effects of the tax burden, and the inclusion of parents would not exhaust the class of persons interested in the conduct of local school affairs. Hill v. Stone, 421 US 289, 295 (1975) (emphasis added). Therefore, the City Council, in redistricting, should not interpret “population” to mean only parents of school-aged children. Effect of Boundary Changes on Incumbent Officers School Board With respect to school boards, statutory guidance exists. Section 20A-14-201(3)(a) provides that “[r]eapportionment does not affect the right of any school board member to complete the term for which the member was elected. Section 20A-14-201(3)(b) contains the following rules regarding school board representation following reapportionment: 1. If only one board member whose term extends beyond reapportionment lives within a reapportioned district, that board member shall represent that district. 2. (a) If two or more members whose terms extend beyond reapportionment live within a reapportioned district, the members involved shall select one member by lot to represent the district. (b) The other members shall serve at-large for the remainder of their terms. (c) The at-large board members shall serve in addition to the designated number of board members for the board for the remainder of their terms. 13 3. If no board member lives within a district whose term extends beyond reapportionment, the seat shall be treated as vacant and shall filled as provided by law. City Council In contrast to the school district scenario, Utah lacks a statute that expressly addresses the effect of a redistricting boundary change on incumbent city council members. However, some Utah Code sections indirectly provide guidance. For example, § 10-3-201(1) says that the officers elected in a city general election shall continue in office for four years except in case of death, resignation, removal, or disqualification from office. A redistricting change is none of those. Furthermore, § 10-3-202 provides that each elected officer of a city shall hold office for the term for which he or she is elected unless the office becomes vacant under § 10-3-301. Section 10-3-301(5) says that a city elected officer must maintain a principal place of residence within the district that the officer represents. In addition, Subsection 10-3-301(5) provides that an elected officer’s office becomes automatically vacant if the officer, during the officer’s term of office, establishes a principal place of residence outside the district that the officer represents. This happens only if the officer acts affirmatively to move from the state or precinct in the state and has the intent to remain in another state or precinct. See § 20A-2-105(4)(j)(i). Because a change of district boundaries does not involve the affirmative act of a council member to move from the district, it seems unlikely that his or her residence would change and thus there would be no automatic vacancy. Because no Utah statutes clearly address the issue, it is likely that the common law would apply. Under the common law, the qualifications of candidates for office are 14 determined at the time they begin their term of office. Redistricting that changes the residence of an incumbent member does not affect that member’s current term of office. Candidates carry their residence with them throughout the entire term of office to which they were elected. Kendra Carberry, Redistricting: A Municipal Perspective, Colorado Lawyer 49, February 2002. That view is supported by Olsen v. Merrill, 5 P.2d 226 (Utah 1931). In that case a redistricting affected members of the Provo Board of Education. Mr. Olsen and Mr. Startup were school board members. Before the redistricting, Mr. Olsen resided in municipal ward No. 3, and Mr. Startup resided in ward No. 2. After a redistricting, Mr. Olsen ended up living in ward No. 2 and Mr. Startup resided in ward No. 1. The board of education met to select two new board members to replace Mr. Olsen and Mr. Startup, on the premise that the positions of those men had become vacant. The Supreme Court disagreed, and ruled that the men were entitled to continue to act as members of the board for the remainder of their terms. The redistricting did not render them ineligible to continue as board members .1 Therefore, an incumbent City Council member will not lose his or her office due to redistricting. That necessarily means that, temporarily, more than one Council Member might live in a single district, and that during that time a district might endure with no Council Member residing within it. Boyd Ferguson Senior City Attorney 1 The court distinguished situations in which the elected officials served only as representatives of the municipal wards from which they were elected. In contrast, the Provo board members did not serve in a municipal ward office. Instead, each board member, though elected from municipal wards, participated in the management and control of the entire school system without regard to municipal wards. CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO: City Council Members FROM: Sam Owen, Policy Analyst DATE: January 11, 2022 RE: Establishing the city’s designated water service area by ordinance and attached map ISSUE AT-A-GLANCE Constitutional amendment D was passed by the voters during the general election of 2020. The amendment was made to apply to the section of Utah’s constitution that deals with water rights and service. The Council now has the opportunity to consider a water service area map for the city, that comes from changes made in this amendment. BACKGROUND AND CONTEXT The amendment codifies the long-standing practice of municipal water service across city boundaries. Some communities in the valley receive water from suppliers located outside their boundaries. Salt Lake City is a water service provider that serves water to cities outside its city limits. The amendment would be implemented in part through a bill that took effect automatically on the voters' 2020 approval. This new state law requires municipalities to adopt maps showing the area where the city serves water, if it does. Another aim of the amendment was to enable water service entities to clarify and confirm water service area boundaries for transparency and reliability. The water service area reflected in the proposed amendment to city code is the water service area where the city has historically delivered water to users. ADDITIONAL INFORMATION - Customers of SLC water outside SLC boundaries pay a higher rate for water by about one-third. - The city's regular rate setting process involves outside financial advisors and the City Council's review and decision. One such rate setting review and engagement process is gearing up (as it does on cycles of about five years). - This higher rate is determined through that process to be the amount that corresponds to the relative risk to SLC water users of liability in the event of regulatory or other major issue with the utility. Item Schedule: Briefing: January 11, 2022 Public Hearing: Potential Action: Page | 2 - The higher county water rate also factors in SLC property owners' historical investment in the city's water infrastructure, as well as the ongoing property tax assessment paid to the Metropolitan water district by SLC property owners. Attachments 1. Administration’s transmittal (including proposed map) APPENDIX “Under very limited circumstances, the City also allows others to use its untreated water resources outside of [the city’s] water service area in the canyons east of the [valley]… Examples include… [some individual mountain cabins, ski areas, the Town of Alta]… Customers [in this context] have contractual access to a limited amount of the City’s untreated water and have complete responsibility to build all infrastructure and assure the water is safe to drink… These areas are not included within the City’s proposed Designated Water Service Area ordinance and map.” Salt Lake City Water Resources and Watershed Policies Salt Lake City Council Work Session January 11, 2022 Salt Lake City’s Water Resources Sources of Drinking Water •Streams •Little Cottonwood Creek •Big Cottonwood Creek •City Creek •Parleys Creek •Reservoirs •Deer Creek •Jordanelle •Mountain Dell/Little Dell •Groundwater 4 Foundation and History of Salt Lake City’s Water Supply 5 •July 1847: First diversion of City Creek •By 1860: All mountain streams appropriated for agriculture •1865-1930’s: Utah Lake exchanges for Wasatch mountain streams; water storage projects in Wasatch watersheds •1928 –1929: First long-range water planning effort •1935: Metropolitan Water District of Salt Lake and Sandy formed to provide a long term water supply to Salt Lake City •1930’s-’40’s: Major storage projects/water imports (Deer Creek, Provo River Project, Duchesne Tunnel) per 1929 planning effort. Also development of groundwater resources. •1950’s: Water treatment facilities constructed for Wasatch Front streams Water Right Exchange Contracts •In the mid-1800’s the growing population of the City and County needed reliable water sources. •At the same time, farmers who had appropriated Wasatch streams needed a firm and reliable supply of water to mature crops. •City constructed the Jordan and Salt Lake Canal in 1882 to convey Utah Lake water rights to meet exchange agreements. •First exchange was in 1888 between the City and Parleys Water Users Association –City provided Utah Lake water for irrigation through the JSL Canal, in exchange for water rights to Parleys Creek. •Other exchanges followed through the 1930’s for Mill Creek, Big Cottonwood Creek and Little Cottonwood Creek. •About 50 exchanges in place today. Utah Lake Jordan River State Water Right Adjudication Watershed Protection and Jurisdiction Salt Lake City’s Protected Watersheds •City Creek Canyon •Parleys Canyon •Big Cottonwood Canyon •Little Cottonwood Canyon Watershed Statistics 10 190 square miles in area; elevations from 5,000 to 11,500 feet Within minutes to urban core; less than 24 hours to a tap 50%-60% of water supply Multiple government jurisdictions Recreation visitation greater than Yellowstone National Park ~5 million people/year Historical Watershed Context – Typhoid, Runoff Flu, and Rehabilitation Regulatory and Policy Context for Watershed Protection Federal and State Safe Drinking Water Statutes and Rules Salt Lake City Watershed Ordinance (17.04 and 17.08) and Salt Lake City Watershed Management Plan Salt Lake County Health Department Regulations and Land Use/Zoning US Forest Service 2003 Wasatch-Cache Forest Plan and federal laws State Law (10-8-15 – Extraterritorial Jurisdiction) Managing our Watersheds Key Strategies •Land Conservation and Stewardship •Partnerships •Public Education •Regulation •Purchase of Irrigation Shares •Monitoring 13 Interrelated Resource Plans and Studies Inform Management and Policy •Watershed Management Plan (currently being updated) •Water Supply and Demand Plan (updated 2019) •Water Conservation Plan (updated 2020) •Water Shortage Contingency Plan (currently being updated) •Water Rate Studies (updated 2018, proposed for FY 23) •Climate Vulnerability Assessment •Community Financial Capability Study (in process) •Water Loss Audit (in process) •Integrated Watershed Plan (in process) Water Legislation in 2022 Session We expect to see quite a few water-related bills related to water conservation, Great Salt Lake, and regulatory needs. Here is the list so far: •HB 21 –School/childcare water testing requirements for lead •HB 33 –Instream Water Flow Amendments •HB 37 –State Water Policy Amendments •HB 64 –Drinking Water Amendments (per ERU charge) •SB 31 –Water Rights Proofs •Also watching for legislation impacting watersheds. Salt Lake City Designated Water Service Area Ordinance Salt Lake City Council Work Session 1-11-22 Salt Lake City’s Water Service Area •SLC’s water service area developed over the last century through unincorporated Salt Lake County •Annexations to Salt Lake City considered where water was served but not carried out historically •Several cities incorporated on top of the system over time •Does not include the canyon areas •We currently serve portions of Millcreek, Holladay, Cottonwood Heights, Murray, Midvale, and South Salt Lake as well as all incorporated Salt Lake City •Public Utilities Advisory Board comprised of three residents of service area outside of City boundaries and six within Salt Lake City boundaries. State Legislation Driving Creation of Designated Water Service Area •HJR 3 (2020) resolves ambiguity regarding municipal authority to provide water outside city boundaries •HB 31 (2019) requires cities to create a map showing its designated water service area upon passage of constitutional amendment Thank you Laura Briefer, Director Salt Lake City Department of Public Utilities Laura.briefer@slcgov.com 801.483.6741 CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLCCOUNCIL.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO: City Council Members FROM: Sam Owen, Policy Analyst DATE: January 11, 2022 RE: Establishing the city’s designated water service area by ordinance and attached map ISSUE AT-A-GLANCE Constitutional amendment D was passed by the voters during the general election of 2020. The amendment was made to apply to the section of Utah’s constitution that deals with water rights and service. The Council now has the opportunity to consider a water service area map for the city, that comes from changes made in this amendment. BACKGROUND AND CONTEXT The amendment codifies the long-standing practice of municipal water service across city boundaries. Some communities in the valley receive water from suppliers located outside their boundaries. Salt Lake City is a water service provider that serves water to cities outside its city limits. The amendment would be implemented in part through a bill that took effect automatically on the voters' 2020 approval. This new state law requires municipalities to adopt maps showing the area where the city serves water, if it does. Another aim of the amendment was to enable water service entities to clarify and confirm water service area boundaries for transparency and reliability. The water service area reflected in the proposed amendment to city code is the water service area where the city has historically delivered water to users. ADDITIONAL INFORMATION - Customers of SLC water outside SLC boundaries pay a higher rate for water by about one-third. - The city's regular rate setting process involves outside financial advisors and the City Council's review and decision. One such rate setting review and engagement process is gearing up (as it does on cycles of about five years). - This higher rate is determined through that process to be the amount that corresponds to the relative risk to SLC water users of liability in the event of regulatory or other major issue with the utility. Item Schedule: Briefing: January 11, 2022 Public Hearing: Potential Action: Page | 2 - The higher county water rate also factors in SLC property owners' historical investment in the city's water infrastructure, as well as the ongoing property tax assessment paid to the Metropolitan water district by SLC property owners. Attachments 1. Administration’s transmittal (including proposed map) APPENDIX “Under very limited circumstances, the City also allows others to use its untreated water resources outside of [the city’s] water service area in the canyons east of the [valley]… Examples include… [some individual mountain cabins, ski areas, the Town of Alta]… Customers [in this context] have contractual access to a limited amount of the City’s untreated water and have complete responsibility to build all infrastructure and assure the water is safe to drink… These areas are not included within the City’s proposed Designated Water Service Area ordinance and map.” Lisa Shaffer (Sep 28, 2021 15:09 MDT) 09/28/2021 09/28/2021 City Council Announcements January 11, 2021 Information Needed by Staff A. Council District Newsletters for Public Utilities Mailing At the beginning of each calendar year, the Public Utilities Department identifies certain months for Council Members to include Council District newsletters as an insert in residents’ monthly utility bills. Each Council Member may opt to use the Public Utility billing for outreach purposes once per calendar year. The advantage of sharing in the Public Utilities mailings is Council Members only pay for printing expenses out of their communication budget, saving on costs associated with postage. Due to limitations with mail sorting machines, only three Council District newsletters can be accommodated each month. The following months have been identified for the Council to include a newsletter insert. Please let staff know which month you would like to include a newsletter as part of the Public Utilities billing: o April o August o December B. Association of Municipal Council (AMC) – Council Member Representative Needed An opportunity to participate on the AMC has opened up with Council Member Mano moving into Council leadership as vice chair. The AMC consists of Council Members who represent each municipality within Salt Lake County. They meet to discuss hot topics of interest in their communities, collaborate with members of other councils and see how they are handling issues that each other may have in common. The AMC meetings are held virtually and occur on the second Tuesday of every month at noon-1pm. Is there a Council Member interested in being appointed to represent Salt Lake City at these AMC monthly meetings?