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Transmittal - 1/8/2024ERIN MENDENHALL MARY BETH THOMPSON Mayor Chief Financial Officer CITY COUNCIL TRANSMITTAL Date Received: Rachel Otto, Chief of Staff Date sent to Council: TO: Salt Lake City Council DATE: January 5, 2024 Darin Mano, Chair FROM: Mary Beth Thompson, Chief Information Officer SUBJECT: Annual Comprehensive Financial Report FY 2023 STAFF CONTACT: Mary Beth Thompson and Russ Sundquist DOCUMENT TYPE: Informative Item RECOMMENDATION: Review the Annual Comprehensive Financial Report as part of the City’s financial audit presentation. BUDGET IMPACT: N/A BACKGROUND/DISCUSSION: The financial statements for the year ending June 30, 2023, have been prepared by the Salt Lake City Department of Finance and have been audited by Eide Bailly, LLP an independent firm of Certified Public Accountants. 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; while the goal of the independent audit is to provide reasonable assurance that the financial statement will be free from material misstatement. PUBLIC PROCESS: N/A EXHIBITS: Annual Comprehensive Financial Report packet DEPARTMENT OF FINANCE 451 South State Street SALT LAKE CITY, UTAH 84111 TEL 801-535-6403 rachel otto (Jan 8, 2024 09:56 MST)01/08/2024 01/08/2024 SALT LAKE CITY CORPORATION SALT LAKE CITY, UTAH ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2023 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 .............................................................................................................................................6 Basic Financial Statements Government-wide Financial Statements Statement of Net Position .......................................................................................................................................................19 Statement of Activities ............................................................................................................................................................21 Governmental Fund Financial Statements Balance Sheet ..........................................................................................................................................................................24 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .................................................25 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................................................26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ........................................................................................................................................................................27 Proprietary Fund Financial Statements Statement of Net Position .......................................................................................................................................................29 Reconciliation of Proprietary Fund Statement of Net Position to the Primary Government Business-type Statement of Net Position ....................................................................................................................................................................33 Statement of Revenues, Expenses, and Changes in Fund Net Position ..................................................................................35 Reconciliation of Proprietary Fund changes in Net Position to the Primary Government Business-type Changes in Net Position ...........................................................................................................................................................................37 Statement of Cash Flows .........................................................................................................................................................39 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position .......................................................................................................................................44 Statement of Changes in Fiduciary Net Position ....................................................................................................................45 Notes to the Financial Statements .................................................................................................................................................. Note 1. Summary of Significant Accounting Policies .................................................................................................47 Note 2. Cash, Cash Equivalents and Investments ........................................................................................................59 Note 3. Loans Receivable ............................................................................................................................................63 Note 4. Restricted Assets .............................................................................................................................................64 Note 5. Capital Assets ..................................................................................................................................................65 Note 6. Long-term Obligations ....................................................................................................................................68 Note 7. Leases ..............................................................................................................................................................81 Note 8. Subscription Asset ...........................................................................................................................................92 Note 9. Subscription Liability ......................................................................................................................................93 Note 10. Fund Equity ...................................................................................................................................................95 Note 11. General Fund Interfund Service Charges ......................................................................................................96 Note 12. Transfers ..........................................................................................................................................................97 Note 13. Risk Management ............................................................................................................................................98 Note 14. Pension Plans ...................................................................................................................................................100 Note 15. Deferred Compensation Plans .........................................................................................................................116 Note 16. Other Post-employment Benefits ....................................................................................................................117 TABLE OF CONTENTS Pages ii Note 17. Commitments and Contingencies ....................................................................................................................119 Note 18. Related Party Transactions ..............................................................................................................................127 Note 19. Joint Venture ...................................................................................................................................................127 Note 20. Recent Accounting Pronouncements ..............................................................................................................129 Note 21. Subsequent Events ...........................................................................................................................................130 Required Supplementary Information Budgetary Comparison Schedule – General Fund .........................................................................................................................132 Schedule of the Proportionate Share of the Net Pension Liability ................................................................................................133 Schedule of Contributions - Last Ten Fiscal Years .......................................................................................................................136 Schedule of Changes in Net Pension Liability - Last Ten Fiscal Years ........................................................................................140 Schedule of Changes in Total OPEB Liability - Library - Last Ten Fiscal Years ........................................................................142 Notes to Required Supplementary Information Budgetary - GAAP Reporting Reconciliation ...............................................................................................................................144 Post Employment Benefits other than Pensions ............................................................................................................................145 Supplementary Information – Combining Statements and Individual Fund Statements and Schedules Governmental Funds Nonmajor Governmental Funds Combining Balance Sheet .................................................................................................................................................150 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................................151 Combining Balance Sheet – Nonmajor Special Revenue Funds ......................................................................................152 Combining Statement of Revenues, Expenditures and Changes in Fund Balance – Nonmajor Special Revenue Funds .154 Budgetary Comparison Schedules Arts Council .................................................................................................................................................................156 Downtown Economic Development ...........................................................................................................................157 Community Development Operating Fund ..................................................................................................................158 Grants Operating Fund ................................................................................................................................................159 Street Lighting ............................................................................................................................................................160 Demolition, Weed and Forfeiture ................................................................................................................................161 Emergency 911 Dispatch .............................................................................................................................................162 Salt Lake City Donation Fund .....................................................................................................................................163 Salt Lake City Transportation Fund .............................................................................................................................164 Combining Balance Sheet – Nonmajor Debt Service Funds .............................................................................................166 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...........................................................167 Budgetary Comparison Schedules Special Improvement Fund ........................................................................................168 Major Governmental Funds Budgetary Comparison Schedules Capital Projects Fund ...................................................................................................................................................170 Other Improvement Fund .............................................................................................................................................171 Enterprise Funds Nonmajor Proprietary Funds Combining Statement of Net Position .........................................................................................................................174 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .....................................................178 Combining Statement of Cash Flows ..........................................................................................................................180 Budgetary Comparison Schedules Street Lighting .......................................................................................................................................................182 Refuse Collection Fund ........................................................................................................................................183 Housing and Loan Fund .......................................................................................................................................184 Golf Fund ..............................................................................................................................................................185 TABLE OF CONTENTS Pages iii Major Proprietary Funds Budgetary Comparison Schedules Supplementary Information – Combining Statements and Individual Fund Statements And Schedules (continued) Department of Airports .........................................................................................................................................187 Water Utility Fund ................................................................................................................................................188 Sewer Utility Fund ................................................................................................................................................189 Stormwater Utility Fund .......................................................................................................................................190 Redevelopment Agency Fund ..............................................................................................................................191 Internal Service Funds Combining Statement of Net Position .........................................................................................................................194 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .....................................................196 Combining Statement of Cash Flows ..........................................................................................................................198 Budgetary Comparison Schedules Fleet Management Fund ........................................................................................................................................200 Information Management Services Fund ..............................................................................................................201 Risk Management Fund ........................................................................................................................................202 Governmental Immunity Fund ..............................................................................................................................203 Local Building Authority Fund .............................................................................................................................204 STATISTICAL SECTION: (unaudited) Net Position by component – Last Ten Fiscal Years ....................................................................................................................207 Change in Net Position – Last Ten Fiscal Years ..........................................................................................................................208 Fund Balance of Governmental Funds – Last Ten Fiscal Years ...................................................................................................210 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ..............................................................................212 Governmental Activities Tax Revenues by Source – Last Ten Fiscal Years ................................................................................214 Business Type Activities Revenues by Source - Last Ten Fiscal Years .......................................................................................215 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ...................................................................216 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ...........................................................................................217 Principal Property Tax Payers - Current Year and Ten Years Ago ...............................................................................................218 Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................................................................219 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .......................................................................................................220 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .........................................................................................221 Computation of Direct and Overlapping Bonded Debt ................................................................................................................222 Legal Debt Margin Information – Last Ten Fiscal Years ..............................................................................................................223 Pledged-Revenue Coverage – Last Ten Fiscal Years ....................................................................................................................224 Demographic and Economic Statistics - Last Ten Fiscal Years ....................................................................................................225 Full-time Equivalent City Government by Functions – Last Ten Fiscal Years .............................................................................226 Principal Employers - Current Year and Ten Years Ago ..............................................................................................................227 Operating Indicators by Function - Last Ten Fiscal Years ............................................................................................................228 Capital Asset Statistics by Function - Last Ten Fiscal Years ........................................................................................................229 TABLE OF CONTENTS Pages iv DEPARTMENT OF FINANCE December 29, 2023 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, 2023, 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 units; (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, 2023 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, 2023 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 v 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 1,250,000 people according to the most recent population estimates. Salt Lake City is the commercial center of this metropolis and the most populous municipality in the state with a population over 202,000. 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. During the 2022-23 ski season, Utah's resorts set a record for the number of combined visits at more than 7.1 million. The majority of these 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. The City will again be demonstrating its unparalleled hospitality, fantastic accommodations and access to its incredible recreational opportunities when it hosts the 2034 Winter Olympics. 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 church is currently undertaking an extensive reconstruction of Temple Square and the surrounding areas. Completion is expected in 2025. 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, over half 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 opened in October of 2022. Salt Lake City rose to the challenge COVID 19 posed beginning in 2020, as well as other setbacks such as a 5.7 magnitude earthquake and some civil unrest, and is now enjoying a continually improving economy, further growth, numerous cultural opportunities and an exciting night life. 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. 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. vi 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 Delta Center Arena, located three blocks directly west of Temple Square, is the home of the Utah Jazz of the National Basketball Association. There have also been efforts by Salt Lake City based organizations to entice a Major League Baseball team to make the City its home. Smith's Ballpark, just south of downtown, is the current 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. 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 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). vii COMMERCE, INDUSTRY, TRANSPORTATION AND FACTORS AFFECTING FINANCIAL CONDITION According to CBRE Location Intelligence, in 2020 there were 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. Even during the pandemic it was apparent that housing construction was on the rise. The number of cranes above the city scape and the number of apartment complexes and new single family homes being built within the city and outlying areas proves this assessment to be correct. Salt Lake City is the population hub of Utah which, in the 2020 census, was listed as the fastest-growing state in the country. Since 2015, the state has gained nearly half a million people and that growth doesn’t seem to be slowing. The state’s population now stands at appropriately 3.45 million people. 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 slated to be 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 a new convention center hotel located 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 redevelopment of the Airport. The Airport Terminal Redevelopment Program has opened after many years of construction, with the new terminal being fully operational. The project, well in excess of $2 billion, has generated nearly 24,000 jobs and over $1 billion in wages since it began. viii 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 had a significant impact on the economy of the city as well as the state. The city has now recovered, and much of the City's business, retail and industry have returned to normalcy. Nonfarm employment is anticipated to reach pre-pandemic levels soon. In recent years it has been demonstrated 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 shown that while the entire U.S. dropped by 5.2%, and every single state, except Utah, also showing a decrease, Utah is showed 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 more than 2 million inhabitants residing in four counties within an hour’s drive from downtown. The majority of Utah’s 3+ 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 thirteen 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 is now estimated to be 2.7% , 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 had an impact on jobs in the State and the City, in terms of job change over time, the city has 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. TAXABLE SALES ACTIVITY Despite the impact of the pandemic on overall economy, sales taxes in the City performed extremely well during FY 2023 and is budgeted to increase by over $16 million in FY 2024, including the ½ percent funding for Funding Our Futures. SUMMARY OUTLOOK Salt Lake City endured 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. ix 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 2023, total general fund revenue budget increased by 15.36%. 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. BUDGETARY CONTROL The City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of all funds used by the City are included in the annual appropriated budget. Project-length financial plans are adopted for the Capital Improvement Projects Fund. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established 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 also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances are generally re-appropriated as part of the following year's budget. The City Council can increase appropriations after holding a public hearing. During the year ended June 30, 2023, the City Council passed several supplementary appropriations. 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, 2022. 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. x 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 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 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 2 Independent Auditor’s Report To the Honorable Mayor and Members of the City Council Salt Lake City Corporation Report on the Audit of the Financial Statements Opinions We have audited the 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 the Salt Lake City Corporation (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying 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 Salt Lake City Corporation, as of June 30, 2023, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Adoption of New Accounting Standard As discussed in Note 1 to the financial statements, the City has adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), for the year ended June 30, 2023. As a result of implementing the standard there was no effect on governmental activities, business-type activities, or proprietary funds beginning net position. Our opinions are not modified with respect to this matter. 3 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and 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, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. 4 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 is the responsibility of management and, 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining statements and individual funds statements and schedules, including the budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining statements and individual funds statements and schedules, including the budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 5 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 29, 2023 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, 2023. 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 $3,793,605,361 (net position). Of this amount, $362,485,730 is unrestricted net position. Net position increased by $246,649,819. This included an increase in net position of $138,768,910 in the governmental activities and an increase of $107,880,909 in the business-type activities. The City's governmental funds reported a combined ending fund balance of $504,162,212, an increase of $162,016,885 compared to the prior years' ending amount. Of the combined total fund balance, $251,111,184 is available for spending at the discretion of the City (unassigned and assigned). The unassigned fund balance of the General Fund at June 30, 2023, which totaled $178,933,386, is 43 percent of the General Fund total revenues for the year and 71 percent of governmental assigned and unassigned fund balance. The General Fund has $2,484,423 of non-spendable fund balance. The City issued new bonded debt in fiscal year 2023. 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, 2023 6 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, 2023 7 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 fourteen 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 eleven 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, 2023 8 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 2023 2022*2023 2022*2023 2022* Current and other assets $ 766,273 $ 632,873 $ 735,841 $ 954,126 $ 1,502,113 $ 1,586,998 Capital Assets 877,091 851,184 5,399,425 4,911,284 6,276,516 5,762,468 Non-current assets 33,205 112,811 897,978 1,156,872 931,183 1,269,683 Total assets 1,676,569 1,596,867 7,033,244 7,022,282 8,709,813 8,619,149 Deferred outflow of resources 59,839 42,726 19,670 15,876 79,509 58,602 Current and other liabilities 103,848 89,395 252,835 265,191 356,682 354,587 Long-term liabilities 435,068 355,304 3,836,814 3,874,835 4,271,881 4,230,139 Total liabilities 538,915 444,699 4,089,648 4,140,027 4,628,564 4,584,726 Deferred inflow of resources 127,596 263,766 239,557 282,303 367,153 546,070 Net position: Invested in capital assets, net 692,661 639,083 2,168,322 2,186,081 2,860,983 2,825,164 Restricted 194,727 101,247 375,410 449,725 570,136 550,973 Unrestricted 182,509 190,799 179,977 (19,978) 362,486 170,821 Total net position $ 1,069,897 $ 931,129 $ 2,723,710 $ 2,615,829 $ 3,793,606 $ 3,546,956 *The assets, deferred outflow of resources, liabilities and deferred inflow of resources have not been restated to show the effects of GASB 96 for comparative purposes. Net Position percentage - Current Fiscal Year Invested in capital assets, net 75% Restricted 15% Unrestricted 10% The largest component of the City’s net position is its investment in capital assets. 75 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, 15 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, 2023 9 Salt Lake City Corporation's Changes in Net Position (in thousands) Governmental Activities Business-type Activities Total 2023 2022 2023 2022 2023 2022 Revenues Program revenues Charges for Services $ 104,788 $ 101,562 $ 567,371 $ 490,603 $ 672,159 $ 592,165 Operating grants and contributions 64,853 53,077 — — 64,853 53,077 Capital grants and contributions 32,331 29,545 105,643 113,960 137,974 143,505 General revenues Property taxes 146,170 136,635 — — 146,170 136,635 Other taxes 201,166 186,857 — — 201,166 186,857 Investment Earnings 18,237 (5,693) 51,668 13,947 69,905 8,254 Total revenues 567,545 501,982 724,682 618,510 1,292,227 1,120,493 Expenses General Government 41,232 17,266 — — 41,232 17,266 Council 4,333 3,785 — — 4,333 3,785 Mayor 5,569 3,953 — — 5,569 3,953 City Attorney 9,747 8,210 — — 9,747 8,210 Finance 11,052 9,452 — — 11,052 9,452 Fire 41,287 38,335 — — 41,287 38,335 Combined Emergency Services 8,600 7,424 — — 8,600 7,424 Human Resources 3,850 3,234 — — 3,850 3,234 Justice Courts 4,050 3,786 — — 4,050 3,786 Police 94,882 75,368 — — 94,882 75,368 Economic Development 8,170 4,853 — — 8,170 4,853 Community and Neighborhoods 64,180 62,242 — — 64,180 62,242 Public Services 78,920 66,913 — — 78,920 66,913 Infrastructure depreciation 13,143 11,484 — — 13,143 11,484 Interest on long-term debt 10,752 15,359 — — 10,752 15,359 Department of Airports — — 437,993 404,480 437,993 404,480 Water — — 82,228 71,131 82,228 71,131 Sewer — — 48,158 33,455 48,158 33,455 Storm Water Utility — — 11,020 9,543 11,020 9,543 Street lighting Utility — — 5,055 4,359 5,055 4,359 Refuse Collection — — 15,871 14,882 15,871 14,882 Golf — — 10,165 8,682 10,165 8,682 Housing and Loan — — 807 3,535 807 3,535 Redevelopment Agency 32,469 — 34,513 37,755 66,982 37,755 Total expenses 399,767 331,663 645,810 587,823 1,078,044 919,484 Change in net position before transfers 167,778 170,320 78,872 30,688 246,651 201,008 Transfers (29,009) (18,734) 29,009 18,734 — — Change in net position 138,769 151,586 107,881 49,422 246,651 201,008 Net position, beginning 931,128 779,542 2,615,828 2,566,405 3,546,956 3,345,947 Net position, ending $ 1,069,897 $ 931,128 $ 2,723,709 $ 2,615,828 $ 3,793,605 $ 3,546,956 SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 10 Governmental Activities net position increased by $138,768,910 for the year ended June 30, 2023, which is 56 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. Expenses increased by $68,104,297. Most of this increase is due to increased personnel costs. 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 90 100 110 120 130 Governmental Revenues by Source Charges for Services 18.5% Operating grants and contributions 11.4% Capital grants and contributions 5.7% Property taxes 25.8% Other taxes 35.4% Other 3.2% SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 11 Business-type activities net position increased $107,880,909 or 44 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 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 2027. Business-type Activities - Expense and Program Revenues (in Millions) Expenses Program Revenues Airport Water Sewer Storm Water Redevelopment All Others 0 50 100 150 200 250 300 350 400 450 500 Business Type Revenues by Source Charges for Services: 84.3% Capital grants and contributions: 15.7% SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 12 FINANCIAL ANALYSIS OF CITY FUNDS 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, 2023. For the period ended June 30, 2023, the City’s governmental funds reported a combined fund balance amount of $504,162,212, an increase of $162,016,885 compared to the prior fiscal year. Of the total balance at year-end, $178,933,386 is Unassigned and $72,177,798 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 $6,190,152. The majority of the restricted funds of $244,228,366 are for capital projects. The Non-spendable funds of $2,632,510 are receivables and prepaid items. The General Fund is the main operating fund for the City. At June 30, 2023, the General Fund’s unassigned fund balance was $178,933,386 while total fund balance equaled $202,575,741. 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 42 percent of total expenditures and transfers while total fund balance equaled 47 percent. The fund balance for the City’s General Fund increased by $42,452,059. Higher property values resulted in higher property taxes collect and an increase in economic activity resulted in higher sales tax in 2023. 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 $257,580,265 at June 30, 2023, 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 $112,579,385. The Other Improvements Fund has a total fund balance of $13,449,360 at June 30, 2023, all of which is restricted. The Other Improvements Fund is a debt service fund established to provide for all debt payments. The fund balance increased $3,632,691 for the year. Additional information about debt can be found in Note 6. The City issued GO 2022 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 $(135,851,493) for the Department of Airports, $32,460,731 for the Water Fund, SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 13 $39,141,782 for the Sewer Fund, $17,462,501 for Stormwater Fund and $176,458,287 for the Redevelopment Agency Fund. Discussions about the finances of these five funds are addressed in the City’s business-type activities. GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original and final amended budgets amounted to a total increase in appropriations of $53,277,847. By department, the changes are: •$477,308 increase for City Council •$92,360 increase for Mayor •$141,763 increase for City Attorney •$801,330 increase for Finance •$654,201 increase for Fire •$46,699 increase for Human Resources •$130,367 increase for Combined Emergency Services •$5,421,985 increase for Police •$11,009,498 increase for Community & Neighborhoods •$346,343 increase in Economic Development •$46,369 increase in Justice Court •$6,930,085 increase for Public Services •$27,179,539 increase for Nondepartmental (including transfers out) Increases to all budgets included $7,870,332 for prior year encumbrances. The majority of the increase comes from an increase in salaries, pension and insurance of $18.1 million. The budget also includes the addition of 49 FTEs at an anticipated cost of approximately $4.6 million. Affordable housing was a focus of the administration which resulted in $4.6 million of new funding. CAPITAL ASSET AND DEBT ADMINISTRATION The City’s investment in capital assets for its governmental and business type activities had a combined totaled of $6,276,516,330, including $8,319,367 of lease assets and $15,676,300 of subscription assets (net of accumulated amortization) at June 30, 2023. 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 75 percent of total net position. In comparing investment in capital assets to net position, the percentages for Governmental activities and Business-type activities were 65 percent and 80 percent, respectively. SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 14 Major capital asset activities that occurred during the past fiscal year for Governmental Activities include the following: The City added $29,880,258 for city roads and curbs and $662,685 in signals. Other new capitalization included various parks, other improvements and equipment totaling $13,387,734. The Airport added approximately $462,982,2222 in work in process costs for the new terminals construction and the Utilities added $182,906,560 in water, storm and sewer infrastructure. Salt Lake City Corporation's Capital Assets Governmental Activities Business-Type Activities Total Government 2023 2022 2023 2022 2023 2022 Land and water rights $ 215,563,778 $ 214,433,778 $ 210,788,512 $ 208,327,029 $ 426,352,290 $ 422,760,807 Infrastructure 400,289,075 373,331,990 — — 400,289,075 373,331,990 Buildings 424,290,668 422,599,690 2,441,237,231 2,283,878,300 2,865,527,899 2,706,477,990 Right to use assets - buildings 8,319,367 8,319,367 — — 8,319,367 8,319,367 Improvements other than buildings 127,356,927 120,938,298 2,435,054,805 2,303,327,065 2,562,411,732 2,424,265,363 Machinery and equipment 135,204,730 153,020,479 458,945,782 447,584,452 594,150,512 600,604,931 Subscription asset — — 5,270,522 — 5,270,522 — Construction in progress 23,387,560 16,809,894 1,419,822,172 1,085,776,676 1,443,209,732 1,102,586,570 Accumulated depreciation and amortization (466,934,188) (458,269,677) (1,571,693,530) (1,417,540,355) (2,038,627,718) (1,875,810,032) Net book value $ 867,477,917 $ 851,183,819 $ 5,399,425,494 $ 4,911,353,167 $ 6,266,903,411 $ 5,762,536,986 At June 30, 2023, the City’s bonded debt amounted to $3,645,825,000. The portion that is backed by the full faith and credit of the City amounted to $123,320,000. 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 FY2023, which calculates to $4,901,086,832, 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 2023 2022 2023 2022 2023 2022 General obligation bonds $ 123,320,000 $ 114,105,000 $ — $ — $ 123,320,000 $ 114,105,000 Revenue bonds 180,630,000 122,945,000 3,341,875,000 3,377,325,000 3,522,505,000 3,500,270,000 Total $ 303,950,000 $ 237,050,000 $ 3,341,875,000 $ 3,377,325,000 $ 3,645,825,000 $ 3,614,375,000 SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 15 Economic factors and next year’s budgets and rates During the just completed fiscal year, fund balance in the General Fund increased by $42,452,059. 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 2023 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 $86 million in American Rescue Plan Act (ARPA) funding from the Department of Treasury. Approximately 80% of the total ARPA funds have been budgeted and spent as of June 30, 2023. The remainder is projected to be budgeted and spent in fiscal year 2024. The City has received over $17 million for Emergency Rental Assistance (ERA) grants from the Department of Treasury over the past three years. Approximately 75% of the total ERA funds have been budgeted and spent as of June 30, 2023. The remainder is projected to be budgeted and spent in fiscal year 2024. 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, 2023 16 This page intentionally left blank SALT LAKE CITY CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2023 17 Basic Financial Statements 18 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION June 30, 2023 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 $ 451,421,134 $ 448,444,181 $ 899,865,315 $ 1,011,097 $ 13,142,789 Restricted (Note 2 & 4) 126,174,378 80,242,586 206,416,964 — — Investments (Note 2) — 64,191,997 64,191,997 21,160,376 — Receivables: Property, franchise and excise taxes 165,627,534 — 165,627,534 22,916,110 — Assessments, including $1,997,733 of delinquent assessments 4,008,802 — 4,008,802 — — Loans and other receivables, current portion 326,298 8,401,840 8,728,138 33,231 — Lease receivable, current portion — 42,026,536 42,026,536 — — Accounts, less allowance for doubtful accounts of $4,312,772 — 82,825,747 82,825,747 — 887,799 Due from other governments 4,207,308 — 4,207,308 — — Other, principally accrued interest receivable — 6,269,910 6,269,910 — — Prepaids 3,046,924 824,916 3,871,840 311,663 55,058 Inventories 1,102,691 12,970,508 14,073,199 — — Internal balances 10,357,524 (10,357,524) — — — Total current assets 766,272,593 735,840,697 1,502,113,290 45,432,477 14,085,646 Noncurrent assets: Restricted cash and cash equivalents (Note 2) — 382,253,782 382,253,782 — — Lease Receivables, net of current portion — 191,002,418 191,002,418 — — Restricted investments — 147,609,556 147,609,556 — — Investments — — — — — Capital assets (Note 5) Capital assets not being depreciated or amortized 238,951,338 1,630,610,685 1,869,562,023 737,781 — Infrastructure 400,289,075 803,662,575 1,203,951,650 — — Buildings 424,290,668 2,441,237,231 2,865,527,899 14,475,219 130,608,164 Improvements other than buildings 127,356,927 1,631,392,230 1,758,749,157 1,892,624 649,856 Machinery and equipment 135,204,730 458,945,782 594,150,512 15,828,703 662,070 Lease assets (Note 7) 8,319,367 — 8,319,367 — — Subscription assets (Note 8) 10,405,778 5,270,522 15,676,300 531,143 — Accumulated depreciation and amortization (467,727,046) (1,571,693,530) (2,039,420,576) (18,828,909) (16,521,970) Capital assets, net of accumulated depreciation and amortization 638,139,498 3,768,814,809 4,406,954,307 13,898,780 115,398,120 Total capital assets 877,090,836 5,399,425,494 6,276,516,330 14,636,561 115,398,120 Loans and other long-term receivables — 109,682,522 109,682,522 — — Net pension asset 32,243,802 — 32,243,802 — — Land and buildings held for resale — 39,483,917 39,483,917 — — Investment in joint venture (Note 17) 961,427 23,235,204 24,196,631 — — Other — 4,710,665 4,710,665 — — Total noncurrent assets 910,296,066 6,297,403,559 7,207,699,624 14,636,561 115,398,120 TOTAL ASSETS 1,676,568,659 7,033,244,256 8,709,812,915 60,069,038 129,483,766 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow on the refunding of debt 5,981,276 4,282,636 10,263,912 — — Deferred outflows 53,857,735 15,387,232 69,244,968 2,108,497 — Total deferred outflows 59,839,011 19,669,868 79,508,880 2,108,497 — Total assets and deferred outflows of resources $ 1,736,407,671 $ 7,052,914,125 $ 8,789,321,795 $ 62,177,535 $ 129,483,766 The accompanying notes are an integral part of this statement 19 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION June 30, 2023 Primary Government Governmental Activities Business-type Activities Total Component Unit Library Component Unit Utah Performing Arts Center Agency LIABILITIES Current liabilities: Accounts payable $ 18,936,216 $ 88,479,899 $ 107,416,115 $ 691,815 $ 861,187 Accrued liabilities 29,006,651 36,806,219 65,812,870 — 7,022,946 Current portion of long-term compensated absences (Note 6) 23,886,825 2,329,282 26,216,107 — — Current portion of lease liability 801,855 88,020 889,875 — — Current portion of subscription liability 1,400,076 756,451 2,156,527 122,002 — Current portion of long-term debt (Note 6), payable from restricted assets 22,682,513 42,300,698 64,983,211 — — Accrued interest, payable from unrestricted assets — 78,414,506 78,414,506 — — Other liabilities, payable from restricted assets 2,102,069 — 2,102,069 — — Current deposits and advance rentals 5,031,499 3,659,427 8,690,926 3,041 — Total current liabilities 103,847,704 252,834,502 356,682,206 816,858 7,884,133 Noncurrent liabilities: Deposits, advance rentals and long term accruals — 1,108,239 1,108,239 — 1,103,578 Long-term compensated absences liability (Note 6) 1,797,933 9,480,817 11,278,750 903,039 — Pollution remediation liability — 120,734 120,734 — — Other liabilities payable from restricted assets — 6,685,979 6,685,979 — — Other post employment benefits (Note 16) — — — 179,650 — Estimated claims payable (Note 13) 3,507,055 — 3,507,055 — — Revenues collected in advance 23,499,843 37,017,035 60,516,878 — — Bonds payable (Note 6) 305,101,522 3,771,918,238 4,077,019,760 — — Net pension liability (Note 14) 75,481,918 8,298,582 83,780,501 1,103,423 — Notes payable (Note 6) 11,977,970 — 11,977,970 — — Lease liability 6,026,314 374,696 6,401,010 — — Subscription liability 7,675,214 1,809,252 9,484,466 291,232 — Total noncurrent liabilities 435,067,769 3,836,813,572 4,271,881,341 2,477,344 1,103,578 TOTAL LIABILITIES 538,915,473 4,089,648,075 4,628,563,548 3,294,202 8,987,711 DEFFERRED INFLOWS OF RESOURCES Deferred property tax revenues 126,760,348 — 126,760,348 25,942,421 — Deferred inflows - revenue collected in advance 650 7,285,565 7,286,215 — — Deferred inflows - leases — 232,071,663 232,071,663 — — Deferred inflows - pension 834,602 200,056 1,034,658 18,830 — Total deferred inflows of resources 127,595,600 239,557,284 367,152,884 25,961,251 — NET POSITION Net investment in capital assets 692,661,082 2,168,322,382 2,860,983,464 14,493,466 115,398,120 Restricted for: Debt service — 269,434,637 269,434,637 — — Capital projects 194,726,575 105,974,955 300,701,530 243,654 — Unrestricted 182,508,938 179,976,792 362,485,730 18,184,962 5,097,935 Total net position 1,069,896,595 2,723,708,766 3,793,605,361 32,922,082 120,496,055 Total liabilities and net position $ 1,736,407,671 $ 7,052,914,125 $ 8,789,321,795 $ 62,177,535 $ 129,483,766 The accompanying notes are an integral part of this statement 20 SALT LAKE CITY CORPORATION STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2023 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary government: Governmental activities: General Government $ 41,232,121 $ 30,359,856 $ 1,568,911 $ — City Council 4,333,214 428,932 — — Mayor 5,569,300 1,323,130 — — City Attorney 9,746,586 1,336,194 — — Finance 11,052,448 26,049,210 911,518 899,830 Justice Court 4,050,111 2,266,470 22,642 — Human Resources 3,849,842 633,393 — — Fire 41,287,297 8,442,074 119,216 692,794 Combined Emergency Services 8,599,922 711,933 — — Police 94,881,959 13,779,238 3,384,314 245,079 Community and Neighborhoods 64,180,005 1,145,966 56,850,390 4,668,440 Economic Development 8,169,686 2,783,954 928,029 — Public Services 78,919,958 15,527,242 1,068,085 25,824,858 Unallocated infrastructure depreciation 13,142,719 — — — Interest on long-term debt 10,751,740 — — — Total governmental activities 399,766,910 104,787,592 64,853,105 32,331,001 Business-type activities: Airport Authority 437,993,005 348,634,039 — 62,471,709 Water 82,227,807 92,355,469 — 4,313,970 Sewer 48,157,510 76,496,316 — 3,805,174 Storm Water Utility 11,020,371 14,064,503 — 2,835,809 Street Lighting 5,055,107 4,289,021 — (36,000) Refuse Collection 15,871,192 16,331,299 — — Golf 10,165,374 11,200,931 — — Housing and Loan 806,835 411,008 — — Redevelopment Agency 34,512,892 3,588,821 — 32,252,004 Total business-type activities 645,810,093 567,371,407 — 105,642,666 Total primary government $ 1,045,577,002 $ 672,158,999 $ 64,853,105 $ 137,973,668 Component unit Library $ 26,302,264 $ 2,154,745 $ 9,294 $ — Component unit UPACA $ 10,616,465 $ 8,597,041 $ — $ 50,000 General revenues Taxes: Property Franchise taxes Sales tax Investment earnings Transfers Subscriptions Total general revenues and transfers Change in net position Net Position July 1, 2022 (UPACA Jan 1, 2022) Net Position June 30, 2023 (UPACA Dec 31, 2022) The accompanying notes are an integral part of this statement 21 Net (Expense) Revenue and Changes in Net Position Primary Government Component Unit Library Component Unit UPACA Governmental Activities Business-type Activities Total $ (9,303,355) $ — $ (9,303,355) $ — $ — (3,904,282) — (3,904,282) — — (4,246,170) — (4,246,170) — — (8,410,392) — (8,410,392) — — 16,808,110 — 16,808,110 — — (1,760,999) — (1,760,999) — — (3,216,449) — (3,216,449) — — (32,033,212) — (32,033,212) — — (7,887,989) — (7,887,989) — — (77,473,328) — (77,473,328) — — (1,515,209) — (1,515,209) — — (4,457,703) — (4,457,703) — — (36,499,773) — (36,499,773) — — (13,142,719) — (13,142,719) — — (10,751,740) — (10,751,740) — — (197,795,212) — (197,795,212) — — — (26,887,257) (26,887,257) — — — 14,441,632 14,441,632 — — — 32,143,980 32,143,980 — — — 5,879,941 5,879,941 — — — (802,086) (802,086) — — — 460,107 460,107 — — — 1,035,557 1,035,557 — — — (395,827) (395,827) — — — 1,327,933 1,327,933 — — — 27,203,980 27,203,980 — — $ (197,795,212) $ 27,203,980 $ (170,591,232) $ — $ — $ (24,138,225) $ (1,969,424) $ 146,170,152 $ — $ 146,170,152 $ 27,267,202 $ — 12,756,615 — 12,756,615 — — 188,409,346 — 188,409,346 — — 18,237,321 51,667,617 69,904,938 — (41,660) (29,009,312) 29,009,312 — — — — — — (531,143) 336,564,122 80,676,929 417,241,051 26,736,059 (41,660) 138,768,910 107,880,909 246,649,819 2,597,834 (2,011,084) 931,127,689 2,615,827,880 3,546,955,569 30,324,248 122,507,139 $ 1,069,896,596 $ 2,723,708,766 $ 3,793,605,362 $ 32,922,082 $ 120,496,055 The accompanying notes are an integral part of this statement 22 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. The City borrowed $7 million to construct a parking structure. The loan is being reported in the Other Improvements Fund. 23 SALT LAKE CITY CORPORATION BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2023 General Capital Projects Other Improvements Nonmajor Governmental Funds Total Governmental Funds ASSETS Cash, cash equivalents and investments (Note 2) Unrestricted $ 192,780,479 $ 146,600,222 $ 6,667,172 $ 51,109,483 $ 397,157,356 Restricted 1,109,044 117,277,735 6,657,832 — 125,044,611 Receivables: Property, franchise and excise taxes 158,718,584 — — 2,364,903 161,083,487 Accounts receivable 1,902,676 — — 2,015,279 3,917,955 Due from other funds for cash overdraft — — — 475,946 475,946 Taxes receivable 4,544,047 — — — 4,544,047 Current portion of loans receivable 48,097 — — 278,201 326,298 Due from other governments — 228,000 — 3,979,308 4,207,308 Other, principally accrued interest — — — 90,847 90,847 Prepaids 2,484,423 — 124,356 23,731 2,632,510 Total assets $ 361,587,350 $ 264,105,957 $ 13,449,360 $ 60,337,698 $ 699,480,365 LIABILITIES Accounts payable $ 6,819,317 $ 6,525,692 $ — $ 1,712,348 $ 15,057,357 Accrued liabilities 18,438,543 — — 351,638 18,790,181 Current deposits and advance rentals 3,393,141 — — 1,638,358 5,031,499 Current portion of long-term compensated absences 3,600,260 — — — 3,600,260 Revenues collected in advance — — — 23,499,843 23,499,843 Other liabilities payable from restricted assets — — — 2,102,069 2,102,069 Total liabilities 32,251,261 6,525,692 — 29,780,202 68,557,155 DEFERRED INFLOWS OF RESOURCES Receivables not meeting the available criterion 126,760,348 — — — 126,760,348 Unavailable grant revenue — — — 650 650 Total deferred inflows 126,760,348 — — 650 126,760,998 FUND BALANCES Non-spendable 2,484,423 — 124,356 23,731 2,632,510 Restricted 21,157,932 194,726,575 13,325,004 15,018,855 244,228,366 Committed — — — 6,190,152 6,190,152 Assigned — 62,853,690 — 9,324,108 72,177,798 Unassigned 178,933,386 — — — 178,933,386 Total fund balances 202,575,741 257,580,265 13,449,360 30,556,846 504,162,212 Total liabilities, deferred inflow of resources and fund balances $ 361,587,350 $ 264,105,957 $ 13,449,360 $ 60,337,698 $ 699,480,365 The accompanying notes are an integral part of this statement 24 SALT LAKE CITY CORPORATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENTS OF NET POSITION June 30, 2023 Total fund balances for governmental funds $ 504,162,212 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 $ 215,563,778 Infrastructure 400,289,075 Buildings 424,290,668 Improvements other than buildings 127,356,927 Equipment 135,204,730 Construction in progress 23,387,560 Lease assets 8,319,367 Subscription assets 10,405,778 Less accumulated depreciation and amortization (467,727,046) Total capital assets 877,090,836 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 Investment in joint venture 961,427 Pension asset 32,243,802 Deferred loss on defeasance 5,981,276 Deferred pension outflow 53,857,735 93,044,240 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. 56,910,650 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. 10,357,524 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 60 days 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 (3,878,859) Accrued liabilities (10,216,470) Obligation for compensated absence liabilities due after one year (1,797,933) Current portion of long-term debt (22,682,513) Current portion of obligation for compensated absence liabilities (20,286,565) Deferred pension inflow (834,602) Bonds payable (305,101,522) Note payable and due to other funds (11,977,970) Net pension liability (75,481,918) Lease liability (6,828,169) Estimated claims liability (3,507,055) Subscription liability (9,075,290) Total liabilities (471,668,867) Total net position of governmental activities $ 1,069,896,595 The accompanying notes are an integral part of this statement 25 SALT LAKE CITY CORPORATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended June 30, 2023 General Capital Projects Other Improvements Nonmajor Governmental Funds Total Governmental Funds Revenues: General property taxes $ 128,801,500 $ — $ 17,368,652 $ — $ 146,170,152 Sales, use and excise taxes 172,197,418 1,617,217 1,100,000 13,494,711 188,409,346 Franchise taxes 12,756,615 — — — 12,756,615 Licenses 17,599,344 — — — 17,599,344 Permits 26,347,166 13,043,797 — — 39,390,963 Fines and forfeitures 2,339,387 — — 36,174 2,375,561 Assessments — — — 1,581,962 1,581,962 Interest and investment income (loss) 12,352,550 5,262,888 159,607 463,524 18,238,569 Intergovernmental 5,936,560 7,415,253 5,447,065 65,048,776 83,847,654 Interfund service charges 25,857,520 — — — 25,857,520 Parking meter 2,616,329 — — — 2,616,329 Parking ticket 1,180,128 — — — 1,180,128 Rental and other income 697,203 181,591 318,606 431,910 1,629,310 Charges for services 5,114,484 600,000 — 2,804,287 8,518,771 Contributions — — — 765,787 765,787 Miscellaneous 4,655,041 9,936,863 — 1,953,665 16,545,569 Total revenues 418,451,245 38,057,609 24,393,930 86,580,796 567,483,580 Expenditures: Current: City Council 4,725,621 — — — 4,725,621 Mayor 5,120,100 — — — 5,120,100 City Attorney 8,683,519 — — — 8,683,519 Finance 10,039,270 — — — 10,039,270 Fire 47,959,663 — — 66,140 48,025,803 Combined Emergency Services 10,109,426 — — — 10,109,426 Police 103,022,906 — — 445,197 103,468,103 Community and Neighborhoods 30,936,834 — — 24,792,625 55,729,459 Economic Development 3,220,279 — — 2,623,323 5,843,602 Justice Court 4,928,656 — — — 4,928,656 Human Resources 3,722,452 — — — 3,722,452 Public Services 61,802,283 — — 2,365,514 64,167,797 Nondepartmental 52,459,130 — — 83 52,459,213 Capital improvements — 47,211,498 — — 47,211,498 Debt service: Principal — — 19,273,120 — 19,273,120 Interest and other fiscal charges — — 10,070,858 — 10,070,858 Total expenditures 346,730,139 47,211,498 29,343,978 30,292,882 453,578,497 Revenues over (under) expenditures 71,721,106 (9,153,889) (4,950,048) 56,287,914 113,905,083 Other financing sources (uses): New bonds issued — 85,463,891 576,109 — 86,040,000 Premium on new bonds — 4,492,804 — — 4,492,804 Premium on refunding — — — — 4,493 Proceeds from sale of property 25,554 23,115 — 14,132 62,801 Transfers in 51,822,655 39,637,805 9,006,630 300,000 100,767,090 Transfers out (81,117,256) (7,884,341) (1,000,000) (53,249,296) (143,250,893) Total other financing sources (uses) (29,269,047) 121,733,274 8,582,739 (52,935,164) 48,116,295 Net change in fund balances 42,452,059 112,579,385 3,632,691 3,352,750 162,016,885 Fund Balance July 1, 2022 160,123,682 145,000,880 9,816,669 27,204,096 342,145,327 Fund Balance June 30, 2023 $ 202,575,741 $ 257,580,265 $ 13,449,360 $ 30,556,846 $ 504,162,212 The accompanying notes are an integral part of this statement 26 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, 2023 Net change in fund balances - total governmental funds $ 162,016,885 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 $47,211,498 plus Work in Process reclassifications $1,346,862 included as additions exceeded depreciation expense and unallocated depreciation $37,239,394. (See Note 5.) 11,318,966 Repayment of principal as an expenditure in the governmental funds but reduces the liability in the statement of net position. (See Note 6.) 19,273,121 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.) (92,532,804) 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 $ 35,948,016 Pension expense (13,820,990) Other financing 13,474,491 Interest (20,440) Decrease in investment in joint venture (4,912) Lease offset 969,236 Subscription offset 1,725,409 Compensated absences and other post employment benefits (1,388,914) Other 4,267,786 41,149,682 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 $(2,222,434) in addition to business-type activities of $(234,508). (2,456,941) Change in net position of governmental activities.$ 138,768,909 The accompanying notes are an integral part of this statement 27 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. 28 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2023 Business-type Activities - Enterprise Funds Department of Airports Water Utility Sewer Utility Stormwater Utility ASSETS Current assets: Cash, cash equivalents, and investments: Unrestricted $ 236,821,981 $ 12,082,269 $ 58,379,179 $ 17,017,902 Restricted 32,945,799 — — — Investments 49,405,699 14,786,298 — — Receivables: Accounts, less allowance for doubtful accounts of $0, $147,292, $43,142, $6,956, $2,500,000, $0, $3,640,560 respectively, totaling $6,337,950. 61,837,772 11,974,142 6,142,217 1,306,300 Current portion of loans receivable 5,451,962 — — — Current portion of leases receivable 41,633,098 — — — Other 3,949,188 717,067 284,499 9,248 Prepaids — 322,084 125,918 47,636 Inventory of supplies 5,542,402 6,393,827 751,091 — Total current assets 437,587,901 46,275,687 65,682,904 18,381,086 Noncurrent assets: Restricted cash, cash equivalents 101,196,407 90,033,223 181,173,055 9,851,097 Leases Receivable, net of current portion 162,619,611 3,492,952 — — Restricted Investments 147,609,556 — — — Property and equipment, at cost: Land and water rights 113,215,661 57,904,235 8,476,372 4,035,611 Infrastructure — 427,894,141 223,842,010 151,926,424 Buildings 2,177,508,453 82,008,059 166,461,215 10,173,461 Improvements other than buildings 1,518,854,569 3,352,475 16,775,983 6,336,114 Machinery and equipment 363,918,231 31,366,081 33,469,317 4,975,453 Subscription asset 3,697,469 1,573,053 — — Construction in progress 988,016,852 95,153,355 309,519,343 13,551,830 Accumulated depreciation (1,101,119,961) (183,977,166) (134,936,112) (70,022,532) Net property and equipment 4,064,091,274 515,274,233 623,608,128 120,976,361 Loans and other long-term receivables, net of current portion 15,919,865 — — — Land and buildings held for resale — — — — Investment in joint venture — — — — Other 1,507,803 3,202,862 — — Total noncurrent assets 4,492,944,516 612,003,270 804,781,183 130,827,458 TOTAL ASSETS 4,930,532,417 658,278,957 870,464,087 149,208,544 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - refunding of debt — 15,720 — — Deferred outflows - pension 7,926,472 3,902,445 1,535,782 538,400 Total assets and deferred outflows of resources $ 4,938,458,889 $ 662,197,122 $ 871,999,869 $ 149,746,944 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 $ 68,456,820 $ 55,686,030 $ 448,444,181 $ 54,263,778 45,357,777 1,939,010 80,242,586 1,129,767 — — 64,191,997 — — 1,565,316 82,825,747 — 724,895 2,224,983 8,401,840 — 393,438 — 42,026,536 1,309,908 — 6,269,910 — 88,665 240,613 824,916 414,414 — 283,188 12,970,508 1,102,691 116,331,503 61,939,140 746,198,221 56,910,650 — — 382,253,782 — 24,889,855 — 191,002,418 — — — 147,609,556 — 21,324,975 5,831,658 210,788,512 1,069,180 — — 803,662,575 — 576,742 4,509,301 2,441,237,231 28,670,307 55,022,531 31,050,558 1,631,392,230 — 391,601 24,825,099 458,945,782 89,741,732 — — 5,270,522 — 13,348,636 232,156 1,419,822,172 6,991,643 (48,901,305) (32,736,454) (1,571,693,530) (73,972,845) 41,763,180 33,712,318 5,399,425,494 52,500,017 67,195,558 26,567,100 109,682,522 — 36,796,546 2,687,371 39,483,917 — 50,427,599 23,235,204 73,662,803 — — — 4,710,665 — 221,072,739 86,201,993 6,347,831,158 52,500,017 337,404,241 148,141,133 7,094,029,379 109,410,667 4,266,916 — 4,282,636 — 346,956 1,137,177 15,387,232 2,454,257 $ 342,018,114 $ 149,278,310 $ 7,113,699,248 $ 111,864,924 The accompanying notes are an integral part of this statement 30 SALT LAKE CITY CORPORATION STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2023 Business-type Activities - Enterprise Funds Department of Airports Water Utility Sewer Utility Stormwater Utility LIABILITIES Current Liabilities: Accounts payable $ 51,748,692 $ 7,287,164 $ 24,808,280 $ 599,826 Accrued liabilities 35,709,756 614,994 192,621 65,973 Current portion of lease liability 88,020 — — — Current portion of subscription liabilities 608,732 147,719 — — Current portion of long-term compensated absences 1,303,666 471,346 200,559 75,089 Current portion of long-term debt 25,815,000 1,050,000 5,866,090 955,550 Accrued interest 67,382,017 2,460,459 7,951,000 250,034 Current deposits and advance rentals 414,606 1,373,653 1,116,132 95,620 Total current liabilities 183,070,489 13,405,335 40,134,682 2,042,092 Noncurrent liabilities: Deposits, advance rentals and long-term accruals — — 74,075 — Long-term compensated absences liability 5,079,259 2,130,537 936,736 315,468 Pollution remediation liability 120,734 — — — Other liabilities payable from restricted assets — 4,884,217 1,002,692 799,070 Lease liabilities 374,696 — — — Subscription liabilities 843,589 965,663 — — Estimated claims liability — — — — Revenues collected in advance 30,059,897 6,957,138 — — Net pension liability 4,248,087 2,206,539 801,574 298,117 Bonds, mortgages, and notes payable, net of discounts and current portion 3,089,772,499 143,913,814 464,824,996 16,253,509 Total noncurrent liabilities 3,130,498,761 161,057,908 467,640,073 17,666,164 TOTAL LIABILITIES 3,313,569,250 174,463,243 507,774,755 19,708,256 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pension 106,493 45,179 21,002 6,892 Deferred inflows - leases 204,252,709 3,492,952 — — Deferred inflows - revenue collected in advance 7,285,565 — — — Total deferred inflows of resources 211,644,767 3,538,131 21,002 6,892 NET POSITION Net investment in capital assets 1,233,778,317 441,822,942 325,062,330 107,747,602 Restricted for debt service and undisbursed loans held in escrow 269,434,637 — — — Restricted for capital acquisition 45,883,411 9,912,075 — 4,821,693 Unrestricted (135,851,493) 32,460,731 39,141,782 17,462,501 TOTAL NET POSITION 1,413,244,872 484,195,748 364,204,112 130,031,796 Total liabilities, deferred inflows of resources and net position $ 4,938,458,889 $ 662,197,122 $ 871,999,869 $ 149,746,944 The accompanying notes are an integral part of this statement 31 Business-type Activities - Enterprise Funds Governmental Activities - Internal Service Funds Redevelopment Agency Nonmajor Proprietary Funds Total $ 2,745,152 $ 1,290,785 $ 88,479,899 $ 2,607,346 — 222,875 36,806,219 365,225 — — 88,020 — — — 756,451 — 37,680 240,942 2,329,282 403,103 6,075,000 2,539,058 42,300,698 3,770,770 333,401 37,595 78,414,506 131,734 — 659,416 3,659,427 — 9,191,233 4,990,671 252,834,502 7,278,178 — 1,034,164 1,108,239 — 285,056 733,761 9,480,817 1,714,353 — — 120,734 — — — 6,685,979 — — — 374,696 — — — 1,809,252 — — — — 11,416,296 — — 37,017,035 — 169,084 575,181 8,298,582 1,400,623 44,462,363 12,691,057 3,771,918,238 18,051,300 44,916,503 15,034,163 3,836,813,572 32,582,572 54,107,737 20,024,834 4,089,648,075 39,860,749 5,132 15,358 200,056 31,114 24,326,002 — 232,071,663 — — — 7,285,565 — 24,331,134 15,358 239,557,284 31,114 41,763,180 18,148,011 2,168,322,382 19,247,418 — — 269,434,637 — 45,357,776 — 105,974,955 — 176,458,287 111,090,107 240,761,915 52,725,642 263,579,243 129,238,118 2,784,493,889 71,973,059 $ 342,018,114 $ 149,278,310 $ 7,113,699,248 $ 111,864,924 The accompanying notes are an integral part of this statement 32 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, 2023 Total assets and deferred outflows of resources for Proprietary Funds $ 7,113,699,248 Elimination of investment in discrete component unit (50,427,599) Internal service fund allocation for proprietary funds - prior years' cumulative (10,592,031) Internal service fund allocation for proprietary funds - current year 234,508 Total assets for Primary government business-type activities $ 7,052,914,125 Total net position for Proprietary Funds $ 2,784,493,889 Elimination of investment in discrete component unit (50,427,599) Internal service fund allocation for proprietary funds - prior years' cumulative (10,592,031) Internal service fund allocation for proprietary funds - current year 234,508 Total net position for Primary government business-type activities $ 2,723,708,766 The accompanying notes are an integral part of this statement 33 This page intentionally left blank 34 SALT LAKE CITY CORPORATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2023 Business-type Activities - Enterprise Funds Department of Airports Water Utility Sewer Utility Stormwater Utility Sales and charges for services $ 271,963,140 $ 87,539,609 $ 69,251,092 $ 13,848,374 Rental and other 11,363,674 4,959,507 1,299,902 129,362 Total operating revenue 283,326,814 92,499,116 70,550,994 13,977,736 Personnel services 58,988,613 23,743,649 10,812,571 4,117,444 Operating and maintenance 19,883,662 3,215,525 2,709,559 313,171 Charges for services 92,943,075 39,647,608 7,329,974 2,912,529 Depreciation and amortization 148,449,313 10,415,151 9,565,597 3,141,636 Total operating expenses 320,264,663 77,021,933 30,417,701 10,484,780 Operating income (loss) (36,937,849) 15,477,183 40,133,293 3,492,956 Interest income 30,645,109 4,453,174 7,652,458 799,872 Interest expense (117,346,361) (5,205,874) (17,739,809) (535,591) Equity in joint venture income (loss) — — — — Passenger & Customer facility charges 64,459,536 — — — Legal settlement — — 5,780,176 — Bond Issuance costs (381,981) — — — Gain on disposition of property and equipment 837,957 401,332 48,297 38,521 Total non-operating revenues (expenses) (21,785,740) (351,368) (4,258,878) 302,802 Grants and other contributions 62,471,709 4,313,970 3,805,174 2,835,809 Total capital contributions 62,471,709 4,313,970 3,805,174 2,835,809 Income (loss) before transfers 3,748,120 19,439,785 39,679,589 6,631,567 Transfers in — 300,000 — 2,000,000 Transfers out (264,088) — — — Change in net position 3,484,031 19,739,785 39,679,589 8,631,567 Net Position July 1, 2022 1,409,760,841 464,455,963 324,524,523 121,400,229 2 3 Net Position June 30, 2023 $ 1,413,244,872 $ 484,195,748 $ 364,204,112 $ 130,031,796 The accompanying notes are an integral part of this statement 35 Business-type Activities - Enterprise Funds Governmental Activities - Internal Service FundsRedevelopment Agency Nonmajor Proprietary Funds Total $ 1,636,058 $ 30,130,999 $ 474,369,272 $ 98,764,873 1,153,940 677,903 19,584,288 2,894,934 2,789,998 30,808,902 493,953,560 101,659,807 2,262,907 10,278,383 110,203,567 18,519,625 1,529,860 2,093,412 29,745,190 10,705,714 28,026,607 15,679,181 186,538,974 66,374,779 650,024 3,436,316 175,658,037 8,432,337 32,469,399 31,487,292 502,145,768 104,032,455 (29,679,400) (678,390) (8,192,208) (2,372,648) 4,995,349 2,140,432 50,686,394 3,664 (2,043,494) (411,216) (143,282,345) (698,055) (110,709) 981,224 870,515 — — — 64,459,536 — 5,780,176 — — — (381,981) — — 886,591 2,212,698 150,213 2,841,146 3,597,031 (19,655,007) (544,178) 32,252,004 (36,000) 105,642,666 — 32,252,004 (36,000) 105,642,666 — 5,413,750 2,882,641 77,795,451 (2,916,826) 23,250,347 4,859,689 30,410,036 13,765,925 (622,448) (514,189) (1,400,725) (291,434) 28,041,649 7,228,141 106,804,763 10,557,665 235,537,594 122,009,976 2,677,689,126 61,415,394 $ 263,579,243 $ 129,238,118 $ 2,784,493,889 $ 71,973,059 The accompanying notes are an integral part of this statement 36 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, 2023 Change in net position for Proprietary Funds $ 106,804,763 Elimination of investment (income)/loss in discrete component unit 841,639 Internal service fund allocation for proprietary funds 234,508 Change in net position for Primary government business-type activities $ 107,880,909 The accompanying notes are an integral part of this statement 37 This page intentionally left blank The accompanying notes are an integral part of this statement 38 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2023 Department of Airports Water Utility Sewer Utility Cash Flows from Operating Activities: Receipts from customers and users $ 270,860,589 $ 88,658,909 $ 71,078,106 Receipts from (payments to) internal fund services (31,293,453) (5,701,019) (3,302,806) Payments to suppliers (98,825,295) (36,777,673) (5,524,093) Payments to employees (60,217,987) (24,527,266) (11,129,172) Net cash from (used for) operating activities 80,523,854 21,652,951 51,122,035 Cash flows from non-capital and related financing activities: Contributions from other taxing entities — — — Transfers in — 300,000 — Transfers out — — — Net cash from (used for) non-capital and related financing activities — 300,000 — Cash flows from capital and related financing activities: Proceeds from issuance of debt, net of discount and issuance costs — — — Proceeds from sale of assets and equipment 98,949 154,203 368 Contributions for aid in construction 54,369,821 3,221,100 2,852,020 Passenger and Customer Facility Charges 63,856,099 — — Payment on long-term obligations, net of capitalized interest (158,620,405) (6,015,139) (19,852,777) Payments for purchase and construction, including capitalized interest (475,493,830) (40,811,061) (128,964,679) Interest received from leases 5,046,206 106,915 — Private donations — — 5,780,176 Property and equipment purchased and contributed to a non-profit (540,000) — — Net cash from (used for) capital and related financing activities (511,283,160) (43,343,982) (140,184,892) Cash flows from investing activities: Cash paid for investments (104,185,762) (4,750) — Cash proceeds from investments 114,544,832 — — Interest used, investments and loans 24,343,068 4,073,479 7,652,458 Dividend from Joint Venture — — — Net cash from (used for) investing activities 34,702,138 4,068,729 7,652,458 Net increase (decrease) in cash and cash equivalents (396,057,168) (17,322,302) (81,410,399) Cash and cash equivalents at beginning of year 767,021,355 119,437,794 320,962,633 Cash and cash equivalents at end of year $ 370,964,187 $ 102,115,492 $ 239,552,234 Cash and cash equivalent components: Unrestricted 236,821,981 12,082,269 58,379,179 Restricted 134,142,206 90,033,223 181,173,055 Cash and cash equivalents at end of year $ 370,964,187 $ 102,115,492 $ 239,552,234 The accompanying notes are an integral part of this statement 39 Stormwater Utility Redevelopment Agency Nonmajor Proprietary Funds Total Governmental Activities- Internal Service Funds $ 13,956,592 $ 2,510,474 $ 34,660,990 $ 481,725,660 $ — (1,532,231) — (65,375) (41,894,884) 101,659,806 (1,391,500) (39,625,570) (21,142,020) (203,286,151) (76,867,574) (4,429,326) (2,320,521) (10,626,385) (113,250,657) (18,869,206) 6,603,535 (39,435,617) 2,827,210 123,293,968 5,923,026 — 32,252,004 — 32,252,004 — 2,000,000 22,627,900 4,859,689 29,787,589 13,765,925 — (514,189) (514,189) (291,434) 2,000,000 54,879,904 4,345,500 61,525,404 13,474,491 — — 2,768,457 2,768,457 920,972 — 194,455 1,105,927 1,553,902 316,511 1,323,442 — (36,000) 61,730,383 — — — — 63,856,099 — (1,577,360) (7,377,318) (2,973,503) (196,416,502) (6,106,268) (5,542,694) (5,513,295) (3,210,259) (659,535,818) (9,386,084) — 379,715 — 5,532,836 — — — — 5,780,176 — — — — (540,000) — (5,796,612) (12,316,443) (2,345,378) (715,270,467) (14,254,869) — — — (104,190,512) — — 4,995,349 — 119,540,181 — 799,872 — 2,140,432 39,009,309 3,664 — 730,930 — 730,930 — 799,872 5,726,279 2,140,432 55,089,908 3,664 3,606,795 8,854,123 6,967,764 (475,361,186) 5,146,311 23,262,204 104,960,474 50,657,275 1,386,301,735 50,247,234 $ 26,868,999 $ 113,814,597 $ 57,625,040 $ 910,940,549 $ 55,393,545 17,017,902 68,456,820 55,686,030 448,444,181 54,263,778 9,851,097 45,357,777 1,939,010 462,496,368 1,129,767 $ 26,868,999 $ 113,814,597 $ 57,625,040 $ 910,940,549 $ 55,393,545 The accompanying notes are an integral part of this statement 40 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2022 Department of Airports Water Utility Sewer Utility Reconciliation of operating income (loss) to net cash from (used for) operating activities Operating Income (Loss)$ (37,201,937) $ 15,477,183 $ 40,133,293 Adjustments to reconcile operating income (loss) to net cash from (used for) operating activities: Depreciation and amortization 148,449,313 10,415,151 9,565,597 Principal forgiven on loans receivable — — — Pension expense (1,887,376) — — Increase (decrease) due to change in: Accounts receivable (18,082,803) (2,680,919) 49,199 Other current assets (2,531,673) (1,086,682) (133,223) Accounts payable (1,604,016) 255,089 420,480 Deferred outflows (2,415,383) — — Accrued interest on notes receivable — — — Accrued liabilities affecting operating activities — 213,835 58,421 Other liabilities (6,331,278) 10,666 1,393,176 Pension assets 12,720,901 — — Pension liability 4,248,087 6,209,090 3,159,033 Deferred pension outflows and inflows (16,439,491) (7,160,462) (3,523,941) Deferred inflows 879,591 — — Compensation liability 719,748 — — Total adjustments 117,725,620 6,175,768 10,988,742 Loans made to residents — — — Principal collected on loans — — — Net cash from (used for) operating activities $ 80,523,683 $ 21,652,951 $ 51,122,035 Non-cash transactions affecting financial position: Recognition of equity interest in joint venture $ — $ — $ — Contributions of capital assets from (to) other entities (539,720) 1,092,870 953,154 Leases receivable recognized 30,183,368 1,585,818 — Loans transferred out — — — Contributions and grants 8,064,656 — — Passenger facility charges (includes interest) 1,009,335 — — Customer facility charges (includes interest) (405,898) — — Bond issuance costs (117,880) — — Net increase (decrease) in fair value of investments 1,384,970 — — Loss on disposition of property (205,191) — — Subscription asset recognized 3,478,000 — — Subscription liability recognized (2,018,000) — — Total non-cash transactions $ 40,833,640 $ 2,678,688 $ 953,154 The accompanying notes are an integral part of this statement 41 Stormwater Utility Redevelopment Agency Nonmajor Proprietary Funds Total Governmental Activities- Internal Service Funds $ 3,492,956 $ (29,679,400) $ (678,390) $ (8,456,295) $ (2,372,648) 3,141,636 650,024 3,436,316 175,658,037 8,432,337 — 159,530 — 159,530 — — — — (1,887,376) — 5,899 (419,763) 220,117 (20,908,270) — (1,619) (52,665) 225,435 (3,580,427) (78,972) 58,689 27,985 (247,008) (1,088,781) 936,863 — — (331,328) (2,746,711) (810,065) — (69,300) — (69,300) — (118,899) — 264,915 418,272 49,511 148,632 — (43,705) (4,822,509) (699,794) — 484,040 1,507,678 14,712,619 4,310,263 1,319,978 169,084 614,506 15,719,778 1,400,623 (1,443,737) (742,593) — (29,310,224) — — (873,932) (2,143,258) (2,137,599) (5,333,204) — 31,857 1,932 753,537 88,112 3,110,579 (635,733) 3,505,600 140,870,577 8,295,673 — (9,784,191) — (9,784,191) — — 663,707 — 663,707 — $ 6,603,535 $ (39,435,617) $ 2,827,210 $ 123,293,797 $ 5,923,026 $ — $ (841,639) $ — $ (841,639) $ — 1,512,368 — — 3,018,672 — — — — 31,769,186 — — (622,448) — (622,448) — — — — 8,064,656 — — — — 1,009,335 — — — — (405,898) — — — — (117,880) — — — — 1,384,970 — — — — (205,191) — — — — 3,478,000 — — — — (2,018,000) — $ 1,512,368 $ (1,464,087) $ — $ 44,513,763 $ — The accompanying notes are an integral part of this statement 42 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. 43 SALT LAKE CITY CORPORATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2023 Deferred Compensation Trust ASSETS Restricted cash, cash equivalents and investments $ 372,467 Total assets $ 372,467 NET POSITION - Restricted for deferred compensation $ 372,467 Total net position 372,467 Total liabilities and net position $ 372,467 The accompanying notes are an integral part of this statement 44 SALT LAKE CITY CORPORATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Fiscal Year Ended June 30, 2023 Deferred Compensation Trust Additions: Investment income $ 15,596 Total additions 15,596 Deductions: Benefits paid to participants 22,891 Total deductions 22,891 Net decrease in Net Position (7,295) Net Position July 1, 2022 379,762 Net Position June 30, 2023 $ 372,467 The accompanying notes are an integral part of this statement 45 Notes to the Financial Statements 46 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, 2023, 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), (3) the Department of Airports (an enterprise fund) and (4) the DEA Metro Narcotic Task Force (DEA) (a special revenue 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, 2023, 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, 2023 47 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, 2023, 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, 2022. 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, 2023 48 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 18). 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, 2023 49 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 50 Building Authority. The Fleet Management fund owns and services all vehicles of the governmental 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 51 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 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 eleven 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, (9) Transportation Fund, (10) DEA and (11) 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 ten 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, 2023, 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 52 eliminated for budgetary purposes. Lease purchases are budgeted in the year payments are due rather than in the year purchased. 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, DEA 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 53 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). 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 Right to use leased assets are recognized at the lease commencement date and represent the City's right to use an underlying asset for the lease term. Lease assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to please the lease asset into service. Lease assets are amortized over the shorter of the lease term or useful life of the underlying asset using the straight line method. The amortization period varies from two to 20 years. Right to use subscription IT assets are recognized at the subscription commencement date and represent the City's right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, less any subscription SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 54 incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period varies from three to five years. 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. Lease Receivables Lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee. 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 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 55 recorded a receivable and a corresponding deferred inflow of resources for the assessed amount of those property taxes as of January 1, 2023. 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. Lease liabilities represent the City's obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments are discounted based on a borrowing rate determined by the City. Subscription liabilities Subscription liabilities represent the City's obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments are discounted based on a borrowing rate determined by the City. 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, 2023 56 represents a consumption of net assets that applies to future periods 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, represent an acquisition of net assets that applies to future periods 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. The City also has deferred inflows related to leases where the City is the lessor and is reported in the statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on the straight line method over the term of the lease. 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 57 for debt service; (4) Unrestricted net position consists of everything else that does not meet the criteria above. 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. Implementation of GASB Statement No. 96 As of July 1, 2022, the City adopted GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). The implementation of this standard establishes that a SBITA results in a right to use subscription IT asset, an intangible asset, and a corresponding liability. The standard provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA. The Statement requires recognition of certain SBITA assets and liabilities for SBITAs that previously were recognized as outflows of resources based on the payment provisions of the contract. As a result of implementing this standard the City recognized a right to use subscription asset and subscription liability of $10.4 million and $10.4 million as of July 1, 2022, respectively. The Airport recognized a right to use subscription asset and subscription liability of $3.5 million and $2.0 million as of July 1, 2022, respectively. The Utilities recognized a right to use subscription asset and subscription liability of $1.6 million and $1.6 million as of July 1, 2022, respectively. As a result of these adjustments there was no effect on beginning net position. The additional disclosures required by this standard are included in Notes 8 and 9 . SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 58 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 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 59 The City did not enter into any reverse repurchase agreements during the year ended June 30, 2023. 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 $48,616,165. Of this amount, $1,012,470 was insured and the remaining $47,603,695 was uninsured and uncollateralized. The bank balance of the Library component unit totaled $438,915. Of this amount, $250,000 was insured and the remaining $188,915 was uninsured and uncollateralized. 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 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 $1,653,410,737 invested by the City, $9,532,568 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 60 Fair Investments maturities (in years) Primary government: Value Less than 1 1 - 5 6 - 10 More than 10 Debt Securities U.S. Agency Notes $ 332,181,192 $ 108,927,355 $ 223,253,837 $ — $ — Corporate notes 72,501,632 20,919,100 51,582,532 — — Money market mutual funds 9,532,568 9,532,568 — — — Municipal Bonds 1,454,390 1,454,390 — — — $ 415,669,782 $ 140,833,413 $ 274,836,369 $ — $ — Other investments Investment in State Treasurer's Pool 1,237,740,955 Total investments, primary government $ 1,653,410,737 Component units: Other investments Investment in State Treasurer's Pool 21,160,489 Total investments, component units $21,160,489 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. 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, 2023 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 61 Fair Value Fair Value Measurement Using 6/30/2023 Level 1 Level 2 Level 3 Primary government: Debt Securities U.S. Agency Notes $ 332,181,192 $ 332,181,192 $ — $ — Corporate notes 72,501,632 72,501,632 — — Money market mutual funds 9,532,568 — 9,532,568 — Municipal Bonds 1,454,390 1,454,390 Investment in State Treasurer's Pool 1,237,740,955 — 1,237,740,955 — $ 1,653,410,737 $ 404,682,824 $ 1,248,727,913 $ — Component units: Other investments Investment in State Treasurer's Pool 21,160,489 — 21,160,489 — Total investments, component units $ 21,160,489 $ — $ 21,160,489 $ — At June 30, 2023, 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 $ 332,181,192 $ 332,181,192 $ — $ — $ — Corporate Notes 72,501,632 72,501,632 — — — Money market mutual funds 9,532,568 9,532,568 — — — Municipal Bonds 1,454,390 1,454,390 — — — Investment in State Treasurer's Pool 1,237,740,955 — — — 1,237,740,955 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 62 The following is a summary of restricted and unrestricted cash, cash equivalents and investments at June 30, 2023. Primary Government Component Unit Library Component Unit Utah Performing Arts Center Agency Unrestricted cash and cash equivalents $ 899,865,315 $ 2,565,285 $ 13,142,789 Restricted cash and cash equivalents 588,670,746 —— Unrestricted investments 64,191,997 18,244,950 — Restricted investments 147,609,556 —— Total $ 1,700,337,614 $ 20,810,235 $ 13,142,789 At June 30, 2023, the balances by type were as follows: Deposits (book balance)$ 46,889,910 $ 2,563,160 $ — Investments 1,653,410,737 18,244,950 13,142,789 Cash on hand 36,967 2,125 — Total $ 1,700,337,614 $ 20,810,235 $ 13,142,789 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, 2023 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, 2023 were $28,792,083, net of $351,000 estimated as uncollectible. The Redevelopment Agency (RDA - an enterprise fund) provides housing loans to homeowners and construction loans to contractors within designated areas of the City. These loans total $67,920,453 at June 30, 2023, 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, 2023 63 During the second half of FY 2020, construction of the new SLC airport was ongoing and the airlines and concessionaires began their buildouts in the new buildings. When the COVID-19 pandemic hit, many of the tenants were unable to continue funding their buildouts. In order to have the airlines and a certain amount of concessions open and operating when the TRP and NCP were completed, the Airport loaned funds to tenants to complete the buildouts. The Airport continued to loan funds through December 2020. These funds will be repaid by the end of FY 2025 with the exception on one loan going through FY 2034. 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, 2023 64 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, 2023: Beginning Balance Increases Decreases Ending Balance Primary Government Governmental activities: Capital assets, not being depreciated or amortized: Land and water rights $ 214,433,778 $ 1,130,000 $ — $ 215,563,778 Construction in progress 16,809,894 17,873,739 (11,296,073) 23,387,560 Total capital assets, not being depreciated or amortized 231,243,672 19,003,739 (11,296,073) 238,951,338 Capital assets, being depreciated and amortized Buildings 422,599,690 2,006,593 (315,615) 424,290,668 Right to use assets - Buildings 8,319,367 — — 8,319,367 Improvements other than buildings 120,938,298 7,112,890 (694,261) 127,356,927 Machinery and equipment 153,020,479 5,762,026 (23,577,775) 135,204,730 Infrastructure 373,331,990 31,187,039 (4,229,954) 400,289,075 Total capital assets being depreciated and amortized 1,078,209,824 46,068,548 (28,817,605) 1,095,460,767 Less accumulated depreciation and amortization: Buildings 137,873,186 8,995,547 (315,615) 146,553,118 Right to use assets - Buildings 781,688 842,090 — 1,623,778 Improvements other than buildings 44,436,453 5,308,356 (694,261) 49,050,548 Machinery and equipment 116,248,689 10,646,035 (23,395,457) 103,499,267 Infrastructure 158,929,661 11,507,769 (4,229,953) 166,207,477 Total accumulated depreciation and amortization 458,269,677 37,299,797 (28,635,286) 466,934,188 Total capital assets, being depreciated and amortized, net 619,940,147 8,768,751 (182,319) 628,526,579 Governmental activities capital assets, net $ 851,183,819 $ 27,772,490 $ (11,478,392) $ 867,477,917 Business-type activities Capital assets, not being depreciated or amortized: Land and water rights $ 208,327,029 $ 2,461,483 $ — $ 210,788,512 Construction in progress 1,085,776,676 641,720,344 (307,674,848) 1,419,822,172 Total capital assets, not being depreciated or amortized 1,294,103,705 644,181,827 (307,674,848) 1,630,610,684 Capital assets, being depreciated and amortized Buildings 2,283,878,300 157,932,049 (573,118) 2,441,237,231 Improvements other than buildings 2,303,327,065 134,446,107 (2,718,367) 2,435,054,805 Machinery and equipment 447,584,452 31,274,457 (19,913,127) 458,945,782 Total capital assets being depreciated and amortized 5,034,789,817 323,652,613 (23,204,612) 5,335,237,818 Less accumulated depreciation and amortization: Buildings 298,449,123 75,276,244 (755,124) 372,970,243 Improvements other than buildings 936,277,731 74,358,703 (2,522,142) 1,008,114,292 Machinery and equipment 182,813,500 24,811,547 (18,237,771) 189,387,275 Total accumulated depreciation and amortization 1,417,540,355 174,446,494 (21,515,037) 1,570,471,812 Total capital assets, being depreciated and amortized, net 3,617,249,462 149,206,119 (1,689,575) 3,764,766,006 Business-type activities capital assets, net $ 4,911,353,167 $ 793,387,946 $ (309,364,423) $ 5,395,376,690 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 65 Depreciation and amortization expense for the year ended June 30, 2023 for governmental and business type activities is shown in the table below. Depreciation Governmental activities: Expense General Government $ 11,973,505 City Council — Mayor 1,505 City Attorney 1,868 Finance 2,499,275 Human Resources 4,264 Fire 456,957 Combined Emergency Services 116,158 Police 407,997 DEA 93,826 Community and Economic Development 12,455 Public Services 949,792 Infrastructure Depreciation 11,507,769 Right to use assets - Buildings 842,090 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 8,432,336 Total depreciation and amortization expense - governmental activities $ 37,299,797 Business-type activities: Airport Authority $ 147,227,595 Water 10,415,151 Sewer 9,565,597 Storm water 3,141,636 Redevelopment Agency 650,024 Other Activities 3,446,491 Total depreciation and amortization expense - business-type activities $ 174,446,494 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 66 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 Increase Decrease Transfers Balance Land $ 126,107 $ — $ — $ — $ 126,107 Construction in progress 106,858 518,951 — (14,135) 611,674 Total capital assets, not being depreciated 232,965 518,951 — (14,135) 737,781 Capital assets, being depreciated Buildings 14,219,378 255,841 — — 14,475,219 Improvements other than buildings 1,875,426 17,198 — — 1,892,624 Furniture, fixtures and equipment 8,009,319 691,392 (137,134) — 8,563,577 Circulating collections 7,641,700 972,583 (1,363,157) — 7,251,126 Website development 14,000 — — — 14,000 Subscription right to use asset — 531,143 — — 531,143 Total capital assets being depreciated 31,759,823 2,468,157 (1,500,291) — 32,727,689 Less accumulated depreciation: Buildings (7,878,375) (439,325) — — (8,317,700) Improvements other than buildings (549,065) (134,099) — — (683,164) Furniture, fixtures and equipment (5,280,452) (466,998) 137,134 — (5,610,316) Circulating collections (4,398,846) (1,064,410) 1,363,157 — (4,100,099) Website development (9,750) (2,000) — — (11,750) Subscription right to use asset — (105,880) — — (105,880) Total accumulated depreciation (18,116,488) (2,212,712) 1,500,291 — (18,828,909) Total capital assets, being depreciated net 13,643,335 255,445 — — 13,898,780 Component unit capital assets, net $ 13,876,300 $ 774,396 $ — $ (14,135) $ 14,636,561 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 67 Capital asset information for the City’s component unit, Utah Performing Arts Center Agency is as follows: Beginning Ending Balance Increase Decrease Balance Capital assets being depreciated: Land improvements $ 648,861 $ 995 $ — $ 649,856 Leased equipment 195,395 — — 195,395 Buildings 130,608,164 — — 130,608,164 Furniture, fixtures, and equipment 432,841 33,834 — 466,675 Total capital assets being depreciated 131,885,261 34,829 — 131,920,090 Less accumulated depreciation: Land improvements (84,566) (48,766) — (133,332) Leased equipment (27,914) (13,956) — (41,870) Buildings (13,389,980) (2,606,722) — (15,996,702) Furniture, fixtures, and equipment (340,926) (9,140) — (350,066) Total accumulated depreciation (13,843,386) (2,678,584) — (16,521,970) Total capital assets, being depreciated net $ 118,041,875 $ (2,643,755) $ — $ 115,398,120 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 68 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, 2023. Amount of Balance Balance Original Issue June 30,June 30,Due Within (bonds only)2022 Additions Retirements 2023 One Year Governmental Activities General obligation bonds - 2010B $ 100,000,000 $ 49,885,000 $ — $ 4,910,000 $ 44,975,000 $ 5,060,000 General obligation bonds - 2013A 6,395,000 1,440,000 — 705,000 735,000 735,000 General obligation bonds - 2015A 14,615,000 6,795,000 — 1,055,000 5,740,000 1,085,000 General obligation bonds - 2015B 4,095,000 320,000 — 320,000 — — General obligation bonds - 2017B 12,920,000 10,775,000 — 1,155,000 9,620,000 1,210,000 General obligation bonds - 2019A 17,540,000 11,505,000 — 460,000 11,045,000 485,000 General obligation bonds - 2019B 5,300,000 3,900,000 — 480,000 3,420,000 505,000 General obligation bonds - 2020 17,745,000 12,675,000 — 475,000 12,200,000 500,000 General obligation bonds - 2021 20,660,000 16,810,000 — 580,000 16,230,000 610,000 General obligation bonds - 2022 21,785,000 — 21,785,000 2,430,000 19,355,000 640,000 Sales tax revenue bonds - 2013B 7,315,000 690,000 — 335,000 355,000 355,000 Sales tax revenue bonds - 2014B 10,935,000 7,955,000 — 495,000 7,460,000 515,000 Motor fuel revenue bonds - 2014 8,800,000 1,900,000 — 940,000 960,000 960,000 Sales tax revenue bonds - 2016A 21,715,000 15,920,000 — 2,040,000 13,880,000 2,125,000 Sales tax revenue bonds - 2019A 2,620,000 1,555,000 — 285,000 1,270,000 295,000 Sales tax revenue bonds - 2019B 58,540,000 57,270,000 — 480,000 56,790,000 490,000 Sales tax revenue bonds - 2021 15,045,000 15,045,000 — 205,000 14,840,000 535,000 Sales tax revenue bonds - 2022A 8,900,000 8,900,000 — 580,000 8,320,000 615,000 Sales tax revenue bonds - 2022B 40,015,000 — 40,015,000 — 40,015,000 — Sales tax revenue bonds - 2022C 24,240,000 — 24,240,000 — 24,240,000 1,925,000 Governmental bank notes: Chase — 646,564 — 177,421 469,143 183,177 Siemens 5,674,526 — 748,408 4,926,117 785,283 State of Utah 7,000,000 7,000,000 — 417,291 6,582,709 413,906 General compensated absences — 21,968,520 20,870,094 19,271,311 23,567,303 21,917,592 Internal Service Fund Debt: Lease revenue bonds - 2013A 7,180,000 650,000 — 320,000 330,000 330,000 Lease revenue bonds - 2014A 7,095,000 310,000 — 310,000 — — Lease revenue bonds - 2016A 6,755,000 5,490,000 — 270,000 5,220,000 280,000 Lease revenue bonds - 2017A 7,260,000 — 310,000 6,950,000 320,000 ISF bank notes Key Bank — 1,040,025 — 662,098 377,927 377,927 Chase — 10,138,792 699,140 3,178,680 7,659,252 1,347,219 ISF compensated absences — 2,029,344 1,927,877 1,839,765 2,117,456 1,969,234 Governmental premiums/discounts — 13,231,447 4,492,804 1,927,504 15,796,746 — Total Governmental long-term debt $ 298,779,218 $ 114,029,915 $ 47,362,479 $ 365,446,654 $ 46,569,338 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 69 Amount of Balance Balance Original Issue June 30,June 30,Due Within (bonds only)2022 Additions Retirements 2023 One Year Business-type Activities Sewer 2009 Series $ 6,300,000 $ 2,835,000 $ — $ 315,000 $ 2,520,000 $ 315,000 Sewer 2010 Series 12,000,000 5,965,000 — 595,000 5,370,000 610,000 Storm 2011 Series 8,000,000 2,780,000 — 530,000 2,250,000 545,000 Sewer and Storm 2012 Series 28,565,000 6,535,000 — 2,375,000 4,160,000 2,415,000 Sewer and Storm 2017 Series 72,185,000 62,435,000 — 3,900,000 58,535,000 2,025,285 Water 2020 Series 157,390,000 157,390,000 — — 157,390,000 — Sewer and Storm 2022 Series 329,025,000 329,025,000 — — 329,025,000 Federal Loan - Utilities 13,112,999 154,191 — 13,267,190 — Redevelopment Agency 2013A tax increment 64,730,000 3,765,000 — 3,765,000 — — Redevelopment Agency 2015A tax increment 12,215,000 10,075,000 — 1,230,000 8,845,000 1,300,000 Redevelopment Agency 2019 tax increment 44,640,000 42,540,000 — 820,000 41,720,000 4,775,000 Airport 2017A 826,210,000 825,105,000 — 16,180,000 808,925,000 — Airport 2017B 173,790,000 173,755,000 — 4,165,000 169,590,000 — Airport 2018A-2018B 850,550,000 850,550,000 — — 850,550,000 24,000,000 Airport 2021A 776,925,000 776,925,000 — 1,405,000 775,520,000 1,620,000 Airport 2021B 127,645,000 127,645,000 — 170,000 127,475,000 195,000 Enterprise bank notes: Chase 3,417,125 2,768,457 1,354,546 4,831,036 1,096,616 Siemens 5,144,174 — 358,469 4,785,705 385,309 Yamaha 19,000 — 19,000 — — Loan financing notes 4,168,989 — 714,897 3,454,092 689,207 Enterprise compensated absences 11,112,319 10,556,703 9,858,914 11,810,108 2,329,282 RDA premiums/discounts (31,092) — (3,455) (27,637) — Airport premiums/discounts 401,813,523.95 — 18,287,025 383,526,499 — Utilities premiums/discounts 65,091,895 — 2,585,844 62,506,051 — Total Business-type long-term debt $ 3,881,173,933 $ 13,325,160 $ 68,625,240 $ 3,826,028,044 $ 42,300,698 Total long-term debt 4,179,953,151 127,355,075 115,976,377 4,191,331,848 88,870,036 Library compensation liability 872,900 1,008,757 1,061,206 903,039 — Total component unit long-term debt $ 872,900 $ 1,008,757 $ 1,061,206 $ 903,039 $ — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 70 The annual debt requirements to maturity, including principal and interest, as of June 30, 2023 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 2024 $ 8,745,000 $ 3,690,050 $ 39,865,000 153,789,389 $ 10,830,000 $ 3,717,345 2025 8,080,000 3,472,936 45,595,000 152,154,496 10,425,000 3,376,942 2026 8,370,000 3,298,810 68,080,000 149,651,757 10,820,000 3,016,635 2027 8,700,000 3,090,096 73,465,000 146,513,215 11,235,000 2,639,760 2028 8,705,000 2,862,430 83,205,000 142,977,296 11,650,000 2,245,975 2029-2033 53,975,000 11,444,110 471,795,000 585,112,944 37,495,000 5,891,021 2034-2038 65,615,000 4,642,259 568,090,000 474,385,050 19,075,000 2,329,100 2039-2043 18,440,000 33,600 697,765,000 341,184,825 11,790,000 329,000 2044-2048 — — 908,465,000 170,385,675 — — 2049-2053 — — 385,550,000 23,345,150 — — Subtotal 180,630,000 32,534,292 3,341,875,000 2,339,499,797 123,320,000 23,545,778 Less (premiums)/discounts (3,750,602) — (446,004,912) — (7,605,131) — Net debt $ 184,380,602 $ 32,534,292 $ 3,787,879,912 $ 2,339,499,797 $ 130,925,131 $ 23,545,778 Year Other Debt Ending Governmental Activities Business Activities June 30 Principal Interest Principal Interest 2024 $ 4,764,623 $ 517,617 $ 2,821,006 $ 346,517 2025 3,778,560 400,192 2,447,840 276,073 2026 3,051,625 291,758 1,535,234 216,086 2027 1,876,889 197,662 1,857,660 154,658 2028 1,279,671 136,398 1,095,348 119,152 2029-2033 3,204,948 358,905 5,188,914 538,392 2034-2038 2,070,175 102,423 829,428 431,423 2039-2043 — — 961,830 153,435 2044-2048 — — 1,053,902 161,721 2049-2053 — — 157,337 22,315 Subtotal 20,026,490 2,004,954 15,127,495 2,073,256 Less (premiums)/discounts Total $ 20,026,490 $ 2,004,954 $ 15,127,495 $ 2,073,256 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 71 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, 2023 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, 2023 was $44,975,000. 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 72 liability for those bonds was removed from the balance sheet. The advance refunding resulted in a 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, 2023 was $735,000. 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, 2023 was $5,740,000. 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, 2023 was $0. 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, 2023 was $9,620,000. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 73 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 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, 2023 was $14,465,000. 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 street construction. The True Interest Cost of the bonds is 1.63%. The remaining balance of the 2020 bonds as of June 30, 2023 was $12,200,000. On November 30, 2021, the City issued General Obligation Bonds Series 2021 at par amount of $20,660,000 with a premium of $2,879,180. The bonds carry coupon rates of 3.00 percent to 5.00 percent and have a final maturity date of June 15, 2041. The bonds were issued to fund street construction. The True Interest Cost of the bonds is 1.83%. The remaining balance of the 2021 bonds as of June 30, 2023 was $16,230,000. On October 5, 2022, the City issued General Obligation Bonds Series 2022A at a par amount of $21,785,000 with a premium of $1,709,958. The bonds carry coupon rates of 4.00 percent to 5.00 percent and have a final maturity date of June 15, 2042. The bonds were issued to improve various streets and roads throughout the City and related infrastructure improvements. The True Interest Cost of the bonds is 3.51%. The remaining balance of the bonds as of June 30, 2023 was $19,355,000. 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 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, 2023 was $355,000. 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, 2023 74 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, 2023 was $7,460,000. 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, 2023 was $13,880,000. 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, 2023 was $1,270,000. 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, 2023 was $56,790,000. On December 15, 2021, the City issued Sales Tax Revenue Refunding Bond Series 2021 at the par amount of $15,045,000. The bonds carry coupon rates of .48 percent to 2.49 percent and have a final maturity date of October 1, 2034. The bonds were issued to advance refund Sales Tax Revenue Bond Series 2013B and the LBA Series 2013A and 2014A Bonds. The True Interest Cost of the bonds is 2.01%. The bonds resulted in net present value savings of $941,768 and net cash flow savings of $1,112,566. The remaining balance on the Sales Tax Series 2021 as of June 30, 2023 was $14,840,000. On January 13, 2022, the City issued Sales Tax Revenue Refunding Bond Series 2022A at a par amount of $8,900,000 with a premium of $1,511,735. The bonds carry a coupon rate of 4.00 percent and have a final maturity date of June 30, 2033. The bonds were issued to refund Sales Tax Revenue Bond Series 2012A. The True Interest Cost of the bonds is 1.23%. The bonds resulted in net present value savings of $955,814 and net cash flow savings of $1,013,504. The remaining balance of the 2022A bonds as of June 30, 2023 was $8,320,000. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 75 On November 17, 2022, the City issued Sales Tax Revenue Bonds Series 2022B at a par amount of $40,015,000 with a premium of $2,782,846. The bonds carry coupon rates of 4.73 percent to 5.21 percent and have a final maturity date of October 1, 2042. The bonds were issued fund construction and improvements of various capital projects, including City Cemetery, 600 North Corridor transformation, new radio towers for City Communication, Westside railroad quiet zones, and Warm Springs Plunge structure stabilization and improvements. The True Interest Cost of the bonds is 4.38%. The remaining balance of the bonds as of June 30, 2023 was $40,015,000. On November 17, 2022, the City issued Sales Tax Revenue Bonds Series 2022C at a par amount of $24,240,000. The bonds carry coupon rates of 4.73 percent to 5.21 percent and have a final maturity date of October 1, 2042. The bonds were issued fund construction and improvements of various capital projects, including Pioneer Park, an upgrade of the electrical transformer at the Central Plant and emergency backup generators, Smith's Ballpark improvements, urban wood reutilization equipment and storage additions, and Fisher Mansion stabilization and improvements. The True Interest Cost of the bonds is 5.05%. The remaining balance of the bonds as of June 30, 2023 was $24,240,000. 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, 2023 was $960,000. 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 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 76 beginning February 2012. The outstanding balance of the bonds at June 30, 2023 was $2,520,000. 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, 2023 was $5,370,000. 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, 2023 was $2,250,000. 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, 2023 was $4,160,000. This bond was a direct placement. On April 5, 2017 the Salt Lake City Public Utilities issued $72,185,000 ($6,400,000 Water, $63,569,743 Sewer, and $2,215,257 Street Lighting) 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 or after February 1, 2028 are subject to redemption at the election of the City. The outstanding balance of the bonds at June 30, 2023 was $58,535,000. 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 77 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. The outstanding balance of the bonds at June 30, 2023 was $157,390,000. 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. The Sewer incurred financial charges of $102,255 related this agreement. The interest rate on the funding is 1.34 percent per year. During fiscal year 2022 the Utilities drew down $13,112,999; accordingly, the outstanding value of this loan on June 30, 2022 is $13,112,999. Accrued interest related to the amount outstanding is $59,250. Under the agreement with the EPA the Utilities will begin repaying the amounts reimbursed by the program plus deferred interest in 2029, and the debt service schedule and future maturities will be determined. On June 29, 2022, the Water and Sewer Utilities issued $329,025,000 ($64,317,477 Water and $264,707,523 Sewer) in Revenue Bonds at an average interest rate of 3.9 percent. The principal purpose of the Series 2022 Bonds is to finance a new water reclamation facility and water treatment plant updates. The issuance resulted in net proceeds of $347,893,193 after premium of $20,291,293 and $1,423,100 cost of issuance. This issue fully matures February 1, 2052. 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. In October 2013, the Agency issued $64,730,000 in federally taxable tax increment revenue bonds, with interest rates ranging from 3.0% to 6.0%. 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. 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) for the construction of the Regent Street Improvements. The interest rates on the Series 2015A and 2015B bonds are 2.57% and 2.66%, 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 78 expensed as incurred. The outstanding balance of the 2015A and 2015B bonds at June 30, 2023 was $8,845,000 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, 2023 was $41,720,000. 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, 2023 was $330,000. 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, 2023 was $0. 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, 2023 was $5,220,000. 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, 2023 was $6,950,000. Airport 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) SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 79 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. The outstanding balance of the bonds at June 30, 2023 was $808,925,000 and $169,590,000, respectively. 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. The outstanding balance of the bonds at June 30, 2023 was $850,550,000. On August 5, 2021 the Airport issued $776,925,000 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 TRP and NCP. As of June 30, 2022, unspent Series 2021 bond proceeds was approximately $15.8 million. The Series 2021A & B bonds maturing on or after July 1, 2032 are subject to redemption at the election of the City. The outstanding balance of the bonds at June 30, 2023 was $775,520,000 and $127,475,000, respectively. 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 $35,000,000 and extends five years ending July 10, 2026. Each financing agreement reduces the amount available regardless of whether the final payment has been paid. As of June 30, 2023, $29,692,897 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 80 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 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 monthly 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 $2,775,263. The golf fund has entered into three financing contracts with Yamaha 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 2023. 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, 2023, the Airport had an outstanding balance of $0 on the line of credit. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 81 7.Leases Lessor Agreements - Airport The Airport, as a lessor, recognizes a lease receivable and a deferred inflow of resources at the commencement of the lease term, with certain exceptions for leases of assets held as investments, certain regulated leases, short-term leases, and leases that transfer ownership of the underlying asset. As lessor, the asset underlying the lease is not derecognized. The lease receivable is measured at the present value of the minimum lease payments expected to be received during the lease term. The deferred inflow of resources should be measured at the value of the lease receivable in addition to any payments received at or before the commencement of the lease term that relate to future periods. For the purposes of the GASB No. 87 implementation, Airport Leases have been categorized as follows: 1. GASB No. 87 Leases - Included 2. GASB No. 87 Leases - Excluded Leases - Regulated 3. GASB No. 87 Leases - Excluded Leases - Short Term GASB No. 87 - Included Leases In accordance with GASB No. 87, the Airport recognizes a lease receivable and a deferred inflow of resources for leases the Airport categorizes as GASB No. 87 - Included. The Airport has grouped these leases into three categories: Concession Leases, Rental Car Leases, and Other Property Leases. Concession leases are leases for retail and food and beverage tenants at the Airport. Rental Car Leases are rental car agencies located at the Airport. Other Property Leases contain various leases for property and space located around the Airport. The Airport recorded a lease receivable and deferred inflow of resources of $214,651,581 on July 1, 2022 related to these leases. For the year ended June 30, 2023, the Airport reported lease revenue of $40,582,240 and interest revenue of $5,092,655 related to lease payments received. GASB No. 87 - Included Leases for the year ended June 30, 2023 are summarized as follows: Building Lease Receivable Receivable Additions Implied Interest Receivable Deduction Annual Lease Revenue Ending Lease Receivable Concession Leases $ 92,109,178 $ — $ 2,213,363 $ 10,144,674 $ 12,358,037 $ 81,964,504 Rental Car Leases 106,699,217 —2,386,732 27,254,881 29,641,613 79,444,336 Other Property Leases 15,843,186 30,183,368 492,560 3,182,685 3,675,245 42,843,869 $ 214,651,581 $ 30,183,368 $ 5,092,655 $ 40,582,240 $ 45,674,895 $ 204,252,709 As of June 30, 2023, the lease receivable is $41,633,098 and $162,619,611 for current and non- current assets, respectively. Concession Leases The new Airport terminal and Concourse A opened in September 2020 and Concourse B opened in October 2020. At this time, all existing concession contracts were cancelled and new contracts went into effect. The Airport has 26 food and beverage locations managed by 6 operators and 33 retail locations managed by 5 operators. All food and beverage contracts are for ten years and retail contracts are for eight years. There are no options to extend. Each contract has a minimum annual guarantee SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 82 (MAG) and a variable component (percentage of gross revenues). The tenant pays the higher amount of the MAG or variable amount. MAGs were set in each contract and increase to 90% of the prior year’s rent, but cannot decrease. Based on these terms, the minimum payment will always be the initial MAG. The lease receivable is calculated using minimum payments due each year over the course of contract. The variable component is not used to calculate the lease receivable. Due to the COVID-19 pandemic, all MAG payments were suspended and only the percentage rent was required. The suspension of the MAG was agreed with the tenants to last until the Airport recorded enplaned passengers at a rate of 90% of 2019 enplanements for three consecutive months. This occurred in June, July, and August 2021. Payments of MAGs were reinstated in September 2021. Also due to the pandemic, the contract termination dates for all tenants were moved to expire at the end of eight or ten years from the time the MAG payments were reinstated. All retail contracts expire on August 31, 2029, and all food and beverage contracts expire on August 31, 2031. The lease receivable was reduced, and interest recognized of $10,144,674 and $2,213,3632, respectively. The deferred inflow was also reduced by $10,144,674. The lease receivable was discounted to the net present value using the 30-year bond buyer index rate on July 1, 2021 (implementation date) of 2.53%. The Airport uses the 30-year bond buyer index rate in its Airline Use Agreement to record the return on investment on the unamortized portion of capitalized assets received from the signatory airlines. This applies to all assets with any useful life. The Airport considered this rate to be the most appropriate for leases of Airport property to match the return received from the airlines. The Airport received $15,096,659 of revenue from the variable component on top of the lease payments. Future minimum lease payments are as follows: Principal Interest 2024 $ 10,451,220 $ 1,953,142 2025 10,764,064 1,685,117 2026 10,678,786 1,412,805 2027 10,842,933 1,141,681 2028 11,079,274 864,497 2029-2033 26,084,557 1,219,824 2034-2038 2,063,670 124,628 $ 81,964,504 $ 8,401,694 Rental Car Leases As part of construction of the new airport, new rental car facilities were built. In March 2016, the Airport entered into a new ten year agreement with seven rental car agencies. Each agreement includes the rental of counter and office space, parking stalls, quick turnaround (QTA) space, QTA common space, QTA, storage space, and remote service site space. All contracts expire on February 28, 2026, and there are no options to extend. Each contract has a MAG and a variable component (10% of gross revenues), in addition to the space rentals. The tenant pays the higher amount of the MAG or variable SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 83 amount. MAGs were set in each contract and increase a minimum of 3% each year. The lease receivable is calculated using the contractual amounts for the space rental and minimum payments due for percentage rent each year over the course of contract. The variable component is not used to calculate the lease receivable. The lease receivable was reduced, and interest recognized of $27,254,881 million and $2,386,732, respectively. The deferred inflow was also reduced by $27,254,881. The lease receivable was discounted to the net present value using the 30-year bond buyer index rate on July 1, 2021 (implementation date) of 2.53%. The Airport received $6,782,490 of revenue from the variable component on top of the lease payments. Future minimum lease payments are as follows: Principal Interest 2024 $ 28,624,049 $ 1,681,435 2025 30,048,408 40,862 2026 20,771,879 197,557 $ 79,444,336 $ 1,919,854 Other Property Leases The Airport has entered into several agreements to lease space inside the airport or property on airport grounds. These agreements include ground transportation booths, rooms for communication equipment, the weather service building, space to operate the hardstand consortium, land for the post office, land for the Delta MRT Center, and land for Boeing. The termination dates for these contracts range from May 2023 to December 2039, including all options expected to be exercised. The lease receivable is calculated using the contractual amounts for the space rental. The lease receivable was reduced, and interest recognized of $3,182,685 and $492,560, respectively. The deferred inflow was also reduced by $3,182,685. The lease receivable was discounted to the net present value using the 30-year bond buyer index rate on July 1, 2021 (implementation date) of 2.53%. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 84 Future minimum lease payments are as follows: Principal Interest 2024 $ 3,916,168 $ 1,417,728 2025 4,097,606 1,300,586 2026 2,605,289 1,191,835 2027 2,212,160 1,115,469 2028 2,360,996 1,036,521 2029-2033 14,210,985 3,781,638 2034-2038 2,773,033 2,228,561 2039-2043 2,157,950 1,844,936 2044-2048 2,717,271 1,377,402 2049-053 3,892,819 761,239 2054-2055 1,899,591 73,746 $ 42,843,868 $ 16,129,661 GASB No. 87 Excluded Leases – Regulated In accordance with GASB No. 87, the Airport does not recognize a lease receivable and a deferred inflow of resources for regulated leases. Regulated leases are certain leases that are subject to external laws, regulations, or legal rulings, e.g. the U.S. Department of Transportation and the Federal Aviation Administration, regulated aviation leases between airports and air carriers and other aeronautical users. Regulated leases include Airline Use Agreement Signatory Airlines, Cargo Facilities, Corporate Hangars, Flight School and Skydiving, Fixed Based Operator, FAA Space Rental, Fuel System, National Guard, and the Delta and Skywest Maintenance Hangars, as follows: Airline Use Agreement Signatory Airlines The rights, services and privileges, including the lease of preferentially-assigned gates, an airline has in connection with the use of the airport and its facilities is addressed in the Airline Use Agreement (AUA). By definition, the AUA is considered a regulated lease and does not recognize a receivable and corresponded deferred inflow of resources. The Airport and certain airlines entered into the original ten year AUA that became effective July 1, 2014 and expires on June 30, 2024. The Airport has entered into an AUA with seven (8) passenger airlines and recognized terminal, cargo ramp, federal inspection services (FIS) facilities, and passenger boarding bridge lease revenue of $72,642,425, $259,682, $2,702,067, and $1,704,417, respectively, for the year ended June 30, 2023. Cargo Facilities The Airport has entered into month-to-month agreements with 6 companies for space in cargo facilities located at the airport. Revenue from these companies was $1,001,568 for the year ended June 30, 2023. The Airport has entered into agreements with 7 additional companies for space in cargo facilities. The termination dates range from February 28, 2023 to November 8, 2045. Only one contract has SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 85 options to extend. They are on the second of 4 one-year extensions, all of which are anticipated to be used. Revenue from these companies was $883,065 for the year ended June 30, 2023. Future minimum lease payments are as follows: 2024 $ 795,756 2025 509,363 2026 486,775 2027 486,775 2028 486,775 2029-2033 1,172,624 2034-2038 1,070,360 2039-2043 1,070,360 2044-2046 327,848 $ 6,406,636 Corporate Hangars The Airport has entered into several agreements with companies for corporate hangars and the associated ground rent. Termination dates for these contracts range from April 2023 to September 2042. There are no extension options for corporate hangars. Revenue for FY 2023 from corporate hangars was $808,222. Future minimum lease payments are as follows: 2024 $ 468,221 2025 428,378 2026 410,640 2027 295,187 2028 204,799 2029-2033 772,549 2034-2038 744,656 2039-2043 695,870 $ 4,020,300 Flight School and Skydiving The Airport has entered into one agreement for skydiving and five agreements with flight schools and training. Termination dates for these contracts range from March 2023 to April 2025. Any options in the contracts are expected to be used. Revenue for FY2023 from flight schools and skydiving was $132,162. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 86 Future minimum lease payments are as follows: 2024 $ 57,936 2025 39,125 $ 97,061 Fixed Based Operator The Airport has entered into agreements with two fixed based operators to manage general aviation. Termination dates for these contracts are June 2025 and September 2042. There are no extension options for fixed based operators. Revenue for FY 2023 from fixed based operators was $1,619,515. Future minimum lease payments are as follows: 2024 $ 1,059,355 2025 989,731 2026 892,258 2027 892,258 2028 954,811 2029-2033 4,890,238 2034-2038 3,116,175 2039-2043 1,489,079 $ 14,283,905 FAA Space Rental The Airport has entered into an agreement with the FAA for space for equipment. The lease expires on September 30, 2028 and there are no options to extend. Revenue for FY 2023 from this lease was $9,448. Future minimum lease payments are as follows: 2024 $ 9,448 2025 9,448 2026 9,448 2027 9,448 2028 9,448 2029 2,362 $ 49,602 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 87 Fuel System The Airport has entered into an agreement with a company to lease and operate the fuel system. The lease expires on December 31, 2040 with an option to extend 5 years. The option is expected to be exercised. Revenue for FY 2023 from the fuel system lease was $2,250,174. Future minimum lease payments are as follows: 2024 $ 1,820,680 2025 1,829,497 2026 1,838,578 2027 1,847,932 2028 1,857,567 2029-2033 9,442,777 2034-2038 9,730,883 2039-2041 4,985,754 $ 33,353,668 National Guard The Airport has entered into agreements with the Utah Air National Guard at Salt Lake City International Airport and the Utah National Guard at South Valley Regional Airport. Termination dates for these contracts are December 31, 2028 and December 31 2045, respectively. There are no extension options. Revenue for FY 2023 from these contracts was $156,794. Future minimum lease payments are as follows: 2024 $ 156,794 2025 156,794 2026 156,794 2027 156,794 2028 156,794 2029-2033 466,747 2034-2038 431,500 2039-2043 431,500 2044-2046 215,750 $ 2,329,467 Delta and Skywest Maintenance Hangars The Airport has entered into agreements with Delta and Skywest for their maintenance hangars and associated ground rent. Delta’s agreement expired on May 31, 2023 and a new 10 year agreement was entered into on June 1, 2023, expiring on May 31, 2033, with no option to extend. Skywest’s agreement expires on November 18, 2027 with an option to extend 10 years. As of October 16, 2023, it SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 88 is unknown if Skywest will exercise the option. Revenue for FY 2023 from the maintenance hangars was $3,097,952. Future minimum lease payments are as follows: 2024 $ 4,017,031 2025 4,058,205 2026 4,100,616 2027 4,144,298 2028 3,813,577 2029-2033 11,038,354 $ 31,172,081 GASB No. 87 Excluded Leases – Short-term In accordance with GASB No. 87, the Airport does not recognize a lease receivable and a deferred inflow of resources for leases short-term leases. Short-term leases are certain leases that, at the commencement of the lease term, has a maximum possible term under the lease contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Month-to- month leases are considered short-term. On various dates, the Airport entered into month-to-month agreements with several offsite rental car agencies. Revenue of $2,806,019 was recorded in the year ended June 30, 2023. On various dates, the Airport entered into several month-to-month agreements for Airport property and land. Revenue of $2,839,251 was recorded in the year ended June 30, 2023. Lessor Agreements - Utilities The Utilities has leased land to various parties. The estimated carrying value of the parcels or partial parcels of land related to the lease agreements on June 30, 2023, was $512,288. For the years ended June 30, 2023, the Utilities earned a total of $66,582 in lease revenue and $106,915 in lease interest revenue, respectively. As of June 30, 2023, the Utilities anticipate receiving the following amounts from Lessees in satisfaction of amounts receivable as of that date: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 89 Principal Interest 2024 $ 73,690 $ 104,897 2025 81,339 102,602 2026 89,425 100,071 2027 96,098 97,292 2028 84,171 94,611 2029-2033 564,123 427,798 2034-2038 772,271 326,753 2039-2043 721,976 207,675 2044-2048 667,013 102,521 2049-2051 342,846 16,078 $ 3,492,952 $ 1,580,298 Lessor Agreements - RDA The Redevelopment Agency of Salt Lake City (RDA) has accrued a receivable for three parking structure leases. The remaining receivable for these leases was $25,283,294 for the year ended June 30, 2023. Deferred inflows related to these leases were $24,326,002 as of June 30, 2022. Interest revenue recognized on these leases was $897,970 for the year ended June 30, 2023. Principal receipts of $393,438 were recognized during the fiscal year. The interest rate on the leases is 3.5%. Final receipt is expected in fiscal year 2052. As of June 30, 2023, the RDA anticipates the following payments on lease receivables: Fiscal Year Ended June 30,Principal Interest 2024 $ 392,417 $ 884,367 2025 406,508 870,276 2026 458,233 855,085 2027 475,701 838,638 2028 492,737 821,602 2029-2033 3,026,961 3,810,403 2034-2038 3,829,401 3,701,373 2039-2043 4,725,443 3,586,401 2044-2048 6,062,344 3,464,495 2049-2052 5,413,547 3,337,023 Total $ 25,283,292 $ 22,169,663 Lessee Agreements Salt Lake City leases several buildings in the city. In association with these leases, the City recorded right to use assets and lease liabilities of $8,319,367 as of July 1, 2021. The City is required to make annual principal and interest payments and the leases expire at various dates from April 2027 to SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 90 September 2041. The leases carry interest rates ranging from 1.8% to 4.2%. As of June 30, 2023, the lease liability was $6,828,169. During FY 2023, the City paid principal on the lease and reduced the lease liability by $770,117, recorded implied interest expense of $194,201, and recorded amortization expense of $869,043. Future minimum lease payments are as follows: Principal Interest 2024 $ 801,855 $ 171,695 2025 834,270 148,078 2026 869,397 123,295 2027 905,866 97,271 2028 495,128 74,137 2029-2033 1,326,968 200,425 2034-2038 937,678 104,162 2039-2042 657,007 20,189 $ 6,828,169 $ 939,252 The Airport leases a building near the airport for ground transportation operations and inspections. The lease began on December 1, 2007 and expired December 31, 2022. An amendment to extend the agreement was signed in August 2022 for an additional 5 years, expiring on December 31, 2027. During FY 2023, the Airport paid principal on the lease and reduced the lease liability by $98,188, recorded implied interest expense of $10,498, and recorded amortization expense of $105,565. Future minimum lease payments are as follows: Principal Interest 2024 $ 88,020 $ 16,932 2025 96,407 13,255 2026 104,802 9,246 2027 113,718 4,893 2028 59,769 699 $ 462,716 $ 45,025 Deferred Inflows and outflows of resources - Leases In accordance with GASB No. 87, the Airport recognizes a lease receivable and a deferred inflow of resources for leases the Airport categorizes as GASB No. 87 - Included. For these leases, the Airport is reporting Deferred Inflows of $204,252,709 as of June 30, 2023, and reported deferred lease SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 91 revenue of $40,582,240. These GASB No. 87 - Included leases for the year ended June 30, 2023 are summarized below: Beginning Deferred Inflows Additional Deferred Inflows Deferred Revenue Recognized Ending Deferred Inflows Concession Leases $ 92,109,178 $ — $ (10,144,674) $ 81,964,504 Rental Car Leases 106,699,217 —(27,254,881)79,444,336 Other Property Leases 15,843,186 30,183,368 (3,182,685)42,843,869 $ 214,651,581 $ 30,183,368 $ (40,582,240) $ 204,252,709 8.Subscription Asset During FY 2023, the City implemented GASB Statement No. 96 – Subscription-Based IT Arrangements. The City recognizes a right-to-use asset (subscription asset) at the commencement of the subscription term, with certain exceptions for short-term contracts. The subscription asset is measured as the sum of the following: (a) the amount of the initial measurement of the subscription liability, (b) payment associated with the contract made to the vendor at the commencement of the subscription term, and (c) capitalizable initial implementation costs. The City recognizes a subscription asset at the commencement of the subscription term, with certain exceptions for short-term contracts. The subscription asset is measured as the initial measurement of the subscription liability plus the capitalizable initial implementation costs. A subscription asset should be amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT Asset and the City uses the straight-line method of amortization. Beginning Subscription Asset Additions Deletions Ending Subscription Asset Subscription Asset $ 10,405,778 $ — $ — $ 10,405,778 Accumulated Amortization —(792,859)—(792,859) Net Subscription Asset $ 10,405,778 $ (792,859) $ — $ 9,612,919 The Airport recognized six contracts as subscription-based IT arrangements. They include contracts for map solutions in the SLCDA app and website, passenger boarding bridge maintenance systems, a DBE database, an enterprise asset management system, flight data for Airport Operations, and flight information for public viewing. All contracts but one have options to extend, and all are intended to be used. Expiration dates (including anticipated options to extend) range from December 2024 to June 2030. Rates change based on terms in each contract and rate changes are considered in the calculation of the subscription liability. There are no variable components related to any of the contracts. On July 1, 2022 (implementation date), the Airport recognized a subscription asset of $3,478,100. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 92 Beginning Subscription Asset Additions Deletions Ending Subscription Asset Subscription Asset $ 3,478,100 $ 219,368 $ — $ 3,697,469 Accumulated Amortization —(1,067,514)—(1,067,514) Net Subscription Asset $ 3,478,100 $ (848,146) $ — $ 2,629,955 The Utilities recognized three subscription-based information technology agreements (SBITAs) including work order IT, customer service IT, and compliance management IT. The Utilities are required to make payments through fiscal year 2030 under the SBITAs. On July 1, 2022 (implementation date), the Utilities recognized a subscription asset of $1,573,052. Beginning Subscription Asset Additions Deletions Ending Subscription Asset Subscription Asset $ 1,573,053 $ — $ — $ 1,573,053 Accumulated Amortization —(155,076)—(155,076) Net Subscription Asset $ 1,573,053 $ (155,076) $ — $ 1,417,977 9.Subscription Liability In accordance with GASB No. 96, the City recognizes a subscription liability at the commencement of the subscription term. The subscription liability is measured at the present value of subscription payments expected to be made during the subscription term. Subscription liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments is discounted based on a borrowing rate determined by the City. All contracts with a recognized subscription asset also have a corresponding subscription liability and the same contract terms apply. Beginning Subscription Liability Additions Implied Interest Expense Liability Deduction Annual Subscription Payment Ending Subscription Liability Subscription Liability $ 10,405,778 $ — $ 433,921 $ 1,330,488 $ 1,764,409 $ 9,075,290 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 93 Future minimum subscription payments are as follows: Principal Interest 2024 $ 1,400,076 $ 378,440 2025 1,492,995 320,056 2026 1,084,994 257,799 2027 1,157,096 212,554 2028 1,232,739 164,303 2029 2,707,390 171,082 $ 9,075,290 $ 1,504,234 The Airport subscription liability was discounted to the net present value using the 30-year bond buyer index rate on July 1, 2022 (implementation date) of 3.82%. The Airport uses the 30-year bond buyer index rate in its Airline Use Agreement to record the return on investment on the unamortized portion of capitalized assets received from the signatory airlines. This applies to all assets with any useful life. The Airport considered this rate to be the most appropriate for subscription-based contracts. The other rate available to the Airport is our borrowing rate on bond issuances. Using that rate would yield an immaterial difference from the bond buyer index rate. Beginning Subscription Liability Additions Implied Interest Expense Liability Deduction Annual Subscription Payment Ending Subscription Liability Subscription Liability $ 2,018,030 $ — $ 65,521 $ 565,709 $ 631,230 $ 1,452,321 Future minimum subscription payments are as follows: Principal Interest 2024 $ 608,732 $ 44,931 2025 528,099 22,009 2026 125,657 9,098 2027 67,250 5,941 2028 41,106 3,926 2029-2030 81,477 3,282 $ 1,452,321 $ 89,187 The Utilities subscription liability was valued using discount rates between 2.9% and 3.8% based on the Utilities’ incremental borrowing rate at the inception of each subscription agreement. Beginning Subscription Liability Additions Implied Interest Expense Liability Deduction Annual Subscription Payment Ending Subscription Liability Subscription Liability $ 1,573,052 $ — $ 41,471 $ 459,670 $ 193,095 $ 1,113,382 Future minimum subscription payments are as follows: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 94 Principal Interest 2024 $ 147,719 $ 24,059 2025 224,194 25,209 2026 226,118 17,785 2027 239,583 10,075 2028 89,236 5,927 2029-2030 186,532 2,951 $ 1,113,382 $ 86,006 10.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. Receivables and prepaid items are classified as non- spendable. 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, for homeless services, housing, transit and other social services, 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. Unassigned amounts represent residual balances in the General Fund. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 95 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 $ 2,484,423 $ — $ 124,356 $ 23,731 $ 2,632,510 Restricted for: Class C Roads — 13,942,441 — — 13,942,441 Debt Service — — 13,325,004 — 13,325,004 Misc Capital Projects — 111,001,994 — — 111,001,994 Impact Fees — 51,755,996 — — 51,755,996 Grants — 2,984,325 — 6,556,036 9,540,361 Community Development — — — 97,574 97,574 Emergency 911 — — — 850,330 850,330 Transportation — 15,041,819 — 6,927,057 21,968,876 DEA Metro Narcotic Task Force — — — 587,858 587,858 Encumbrances 21,157,932 — — — 21,157,932 Total restricted 21,157,932 194,726,575 13,325,004 15,018,855 244,228,366 Committed: Weed demolition and forfeiture — — — 198,999 198,999 Emergency 911 — — — 5,822,936 5,822,936 Debt Service — — — 168,217 168,217 Total committed — — — 6,190,152 6,190,152 Assigned to: Misc Capital Projects — 62,853,690 — — 62,853,690 Arts Council — — — 876,360 876,360 Downtown economic development — — — 2,405,272 2,405,272 Street lighting special districts — — — 599,972 599,972 Weed demolition and forfeiture — — — 1,154,144 1,154,144 Donations — — — 3,838,857 3,838,857 DEA Metro Narcotic Task Force — — — 449,503 449,503 Total assigned — 62,853,690 — 9,324,108 72,177,798 Unassigned: 178,933,386 — — — 178,933,386 Total fund balances $ 202,575,741 $ 257,580,265 $ 13,449,360 $ 30,556,846 $ 504,162,212 11. 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, 2023, are as shown in the table below: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 96 General Fund charges for: Fire Police Engineering Administrative protection protection and other Enterprise funds:services services services services Total Water Utility $ 1,040,964 $ — $ — $ 2,781 $ 1,043,745 Sewer Utility 660,902 — — — 660,902 Storm Water Utility 188,136 — — 118,000 306,136 Street Lighting 45,389 — — — 45,389 Airport 1,955,636 7,165,500 10,635,967 — 19,757,103 Refuse Collection 384,085 — — 5,976 390,061 Golf — — — 452 452 Redevelopment Agency 1,110,000 — — 35,178 1,145,178 Internal service funds: Fleet Management 465,018 — — — 465,018 Information Management 409,258 — — — 409,258 Governmental Immunity 166,021 — — — 166,021 Risk Management 154,500 — — — 154,500 Special revenue funds Donations — — — 2,058 2,058 Capital Projects Fund — — — 549,960 549,960 Subtotal, primary government 6,579,909 7,165,500 10,635,967 714,405 25,095,781 Component unit - Library — — — — — Total reporting entity $ 6,579,909 $ 7,165,500 $ 10,635,967 $ 714,405 $ 25,095,781 12.Transfers Transfers were made to and from several funds during the course of the year ended June 30, 2023. 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 97 Transfer in to: Capital Other Nonmajor Nonmajor Internal Transfers out from:General Projects Improvements Water Storm Water RDA Governmental Proprietary Service Total General Fund $ — $ 31,617,805 $ 7,158,428 $ 300,000 $ 2,000,000 $ 22,134,598 $ 300,000 $ 3,840,500 $ 13,765,925 $ 81,117,256 Capital Projects 7,700,000 — 184,341 — — — — — — 7,884,341 Airport 264,088 — — — — — — — — 264,088 Other Improvements — — — — — 1,000,000 — — — 1,000,000 Redevelopment — — — — — — — 622,448 — 622,448 2 2 4 4 Nonmajor Governmental 43,732,555 8,020,000 1,100,000 — — — — 396,741 — 53,249,296 Nonmajor Proprietary 126,012 — 272,427 — — 115,750 — — — 514,189 Internal Service — — 291,434 — — — — — — 291,434 $ 51,822,655 $ 39,637,805 $ 9,006,630 $ 300,000 $ 2,000,000 $ 23,250,348 $ 300,000 $ 4,859,689 $ 13,765,925 $ 144,943,052 13. Risk Management The City is self-insured for liability claims, except liability incurred at the Airport. 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 with a $500,000 retention. The City is self-insured for workers’ compensation and carries excess workers’ compensation insurance with statutory limits 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. 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 98 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. Changes in the estimated claims payable liability carried in the accrued liabilities of the Risk Management Fund since July 1, 2020 are shown 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 2020-2021 Workers' compensation $ 3,411,000 $ 2,904,672 $ (2,611,672) $ 3,704,000 Unemployment compensation 133,191 131,262 (131,261) 133,192 $ 3,544,191 $ 3,035,934 $ (2,742,933) $ 3,837,192 2021-2022 Workers' compensation $ 3,704,000 $ 1,296,441 $ (1,557,773) $ 3,442,668 Unemployment compensation 133,192 141,053 (141,054) 133,191 $ 3,837,192 $ 1,437,494 $ (1,698,827) $ 3,575,859 2022-2023 Workers' compensation $ 3,442,668 $ 1,874,009 $ (1,828,252) $ 3,488,425 $ 963,602 Unemployment compensation 133,191 (27,877) (86,684) 18,630 18,630 $ 3,575,859 $ 1,846,132 $ (1,914,936) $ 3,507,055 $ 982,232 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 99 14. 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. •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 liability for pension-related debt in the governmental activities is primarily liquidated by the general fund with a minimal portion liquidated by the internal service funds (Fleet Management, Information Management Services, Risk Management, and Governmental Immunity.) SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 100 Benefits provided: URS provides retirement, disability, and death benefits. Retirement benefits are as follows: 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 35 years any age 1.5% per year all years Up to 2.5% System 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 age 60* 2% per year July 1, 2020 to present 10 years age 62* 4 years age 65 *actuarial reductions are applied ** 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, 2023 101 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 Utah Retirement Systems 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, 2023 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 % 13.96 %N/A 111- Local Governmental Division Tier 2 N/A N/A 16.01 % 0.18 % Noncontributory System 15 - Local Governmental Division Tier 1 N/A N/A 17.97 %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 2.59 % 38.28 %N/A Firefighters System 32 - Division B Tier 1 N/A 16.71 % 6.24 %N/A 132 - Division B Tier 2 N/A 2.59 % 14.08 %N/A Tier 2 DC Only 211 - Local Government N/A N/A 6.19 % 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, 2023 102 For fiscal year ended June 30, 2023, the employer and employee contributions to the Systems were as follows: Employee Contributions System Employer Contributions paid by Employer Noncontributory System $ 13,669,162 $ 79 Contributory System 209,380 89,990 Public Safety System 13,146,106 — Firefighters System 1,301,449 3,485,176 Tier 2 Public Employees System 11,675,940 — Tier 2 Public Safety and Firefighter 6,537,069 544,461 Tier 2 DC Only System 1,325,692 — Tier 2 DC Public Safety and Firefighter System 698,569 62 Total Contributions $ 48,563,367 $ 4,119,768 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, 2023 103 Combined Pension Assets, Liabilities, Expense, and Deferred Outflows and Inflows of Resources Relating to Pensions At June 30, 2023, the City reported a net pension asset of $32,243,802 and a net pension liability of $83,780,501. Net Pension Asset Net Pension Liability Proportionate Share December 31, 2022 Proportionate Share December 31, 2021 Change (Decrease) Noncontributory System $ — $ 16,621,860 9.70 % 9.91 % (0.21) % Contributory System — 1,106,542 10.76 % 10.43 % 0.33 % Public Safety System — 62,282,792 100.00 % 100.00 % — % Firefighters System 32,243,802 — 25.62 % 26.65 % (1.03) % Tier 2 Public Employees System — 3,252,994 2.99 % 2.79 % 0.20 % Tier 2 Public Safety and Firefighter System — 516,314 6.19 % 5.80 % 0.39 % Total Net Pension Asset/ Liability $ 32,243,802 $ 83,780,501 The net pension asset and liability was measured as of December 31, 2022, and the total pension liability used to calculate the net pension asset and liability was determined by an actuarial valuation as of January 1, 2022 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 104 For the year ended June 30, 2023, we recognized pension expense of $22,042,686. At June 30, 2023, 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 $ 10,322,268 $ 496,851 Changes in assumptions 7,384,109 126,362 Net difference between projected and actual earnings on pension plan investments 24,922,613 — Changes in proportion and differences between contributions and proportionate share of contributions 1,805,173 411,445 Contributions subsequent to the measurement date 24,810,804 — Total $ 69,244,968 $ 1,034,658 There is $24,810,804 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, 2022. These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ (8,414,321) 2024 895,792 2025 10,655,907 2026 38,605,140 2027 313,911 Thereafter $ 1,343,078 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 105 Noncontributory System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, recognized pension expense of $7,538,784. At June 30, 2023, 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 $ 5,637,888 $ — Changes in assumptions 2,724,102 66,372 Net difference between projected and actual earnings on pension plan investments 10,963,943 — Changes in proportion and differences between contributions and proportionate share of contributions — 121,244 Contributions subsequent to the measurement date 6,821,561 — Total $ 26,147,494 $ 187,616 There is $6,821,561 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, 2022. These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ (2,550,663) 2024 447,884 2025 4,403,791 2026 16,837,305 2027 — Thereafter — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 106 Contributory System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, recognized pension expense of $2,357,203. At June 30, 2023, 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 329,883 — — Changes in proportion and differences between contributions and proportionate share of contributions — — Contributions subsequent to the measurement date 103,533 — Total $ 433,416 $ — There is $103,533 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, 2022 . These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ (936,484) 2024 (279,812) 2025 253,697 2026 1,292,482 2027 — Thereafter — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 107 Public Safety System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, recognized pension expense of $8,808,230. At June 30, 2023, 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 $ 1,783,690 $ 155,194 Changes in assumptions 1,047,161 — Net difference between projected and actual earnings on pension plan investments 6,281,381 — Changes in proportion and differences between contributions and proportionate share of contributions — — Contributions subsequent to the measurement date 6,697,518 — Total $ 15,809,750 $ 155,194 There is $6,697,518 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, 2022 . These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ (2,857,972) 2024 (781,239) 2025 2,583,175 2026 10,013,074 2027 — Thereafter — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 108 Firefighters System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, recognized pension expense of $(5,139,602). At June 30, 2023, 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 $ 1,552,888 $ 41,374 Changes in assumptions 2,230,238 — Net difference between projected and actual earnings on pension plan investments 5,500,207 — Changes in proportion and differences between contributions and proportionate share of contributions 1,120,410 100,387 Contributions subsequent to the measurement date 644,108 — Total $ 11,047,851 $ 141,761 There is $644,108 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, 2022 . These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ (2,305,282) 2024 1,009,882 2025 2,622,181 2026 8,935,201 2027 — Thereafter — SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 109 Tier 2 Public Employees System Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, we recognized pension expense of $6,236,870. At June 30, 2023, 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 $ 1,098,741 $ 129,065 Changes in assumptions 1,056,077 8,275 Net difference between projected and actual earnings on pension plan investments 1,311,502 — Changes in proportion and differences between contributions and proportionate share of contributions 581,526 142,691 Contributions subsequent to the measurement date 6,788,899 — Total $ 10,836,745 $ 280,031 There is $6,788,899 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, 2022 . These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ 187,219 2024 393,856 2025 625,449 2026 1,184,668 2027 281,809 Thereafter 1,094,812 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 110 Tier 2 Public Safety and Firefighter Pension Expense, and Deferred Outflows and Inflows of Resources For the year ended June 30, 2023, recognized pension expense of $2,241,201. At June 30, 2023, 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 $ 249,063 $ 171,218 Changes in assumptions 326,531 51,715 Net difference between projected and actual earnings on pension plan investments 535,697 — Changes in proportion and differences between contributions and proportionate share of contributions 103,238 47,123 Contributions subsequent to the measurement date 3,755,185 — Total $ 4,969,714 $ 270,056 There is $3,755,185 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, 2022 . These contributions will be recognized as a reduction of the net pension liability in fiscal 2023. 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, 2023 $ 48,861 2024 106,221 2025 167,614 2026 342,410 2027 32,102 Thereafter 248,263 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 111 Actuarial assumptions: The total pension liability in the December 31, 2022 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 - 9.25 percent, average, including inflation Investment rate of return 6.85 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, 2022, valuation were based on an experience study of the demographic assumptions as of January 1, 2020, and a review of economic assumptions as of January 1, 2021. 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: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 112 Expected Return Arithmetic Basis Asset class Target Asset Allocation Real Return Arithmetic Basis Long-Term expected portfolio real rate of return Equity securities 35.00 % 6.58 % 2.30 % Debt securities 20.00 % 1.08 % 0.22 % Real assets 18.00 % 5.72 % 1.03 % Private equity 12.00 % 9.80 % 1.18 % Absolute return 15.00 % 2.91 % 0.44 % Cash and cash equivalents — % (0.11) % — % Totals 100 % 5.17 % Inflation 2.50 % Expected arithmetic nominal return 7.67 % The 6.85% assumed investment rate of return is comprised of an inflation rate of 2.5%, and a real return of 4.35% 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. 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/(asset) calculated using the discount rate of 6.85%, 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 (5.85%) or 1-percentage-point higher (7.85%) than the current rate: SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 113 1% Decrease Discount Rate 1% Increase System 5.85%6.85%7.85% Noncontributory System $ 104,756,533 $ 16,621,860 $ (57,019,297) Contributory System 5,676,752 1,106,542 (2,772,258) Public Safety System 122,001,965 62,282,792 13,241,318 Firefighters System 10,020,171 (32,243,802) (66,949,514) Tier 2 Public Employees System 14,213,801 3,252,994 (5,190,918) Tier 2 Public Safety and Firefighter 4,132,945 516,314 (2,358,046) Total $ 260,802,167 $ 51,536,700 $ (121,048,715) SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 114 SALT LAKE CITY PUBLIC SAFETY FUND Total pension liability 2022 Service Cost $ 6,140,012 Interest (on the Total Pension Liability) 29,255,041 Changes of benefit terms — Difference between expected and actual experience 3,310,822 Changes of assumptions — Benefit payments, including refunds of employee contributions (24,649,742) Net change in total pension liability 14,056,133 Total pension liability – beginning 435,897,793 Total pension liability – ending $ 449,953,926 Plan fiduciary net position Contributions – employer $ 16,505,799 Contributions – employee 88,709 Court Fees and Fire Insurance Tax — Net investment income (21,787,130) Benefit payments, including refunds of employee contributions (24,649,742) Administrative Expense (134,148) Other 1,538,014 Net change in plan fiduciary net position (28,438,498) Plan fiduciary net position – beginning 416,079,632 Plan fiduciary net position – ending $ 387,641,134 Net pension liability $ 62,282,792 Plan fiduciary net position as a percentage of the total pension liability 0.86 % Covered payroll $ 25,994,490 Net pension liability as a percentage of covered payroll 2.4 % 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, 2023 115 15.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: 2023 2022 2021 401(k) Plan Employer Contributions $ 3,745,934 $ 3,299,797 $ 2,893,832 Employee Contributions 4,764,333 4,262,121 3,767,791 457 Plan Employer Contributions — — — Employee Contributions 3,299,961 3,203,304 2,852,393 Roth IRA Plan Employer Contributions N/A N/A N/A Employee Contributions 1,656,148 1,539,508 1,380,588 Traditional IRA Employer Contributions N/A N/A N/A Employee Contributions 48,241 50,741 54,063 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 116 16. 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, 2023 Actuarial Valuation Date June 30, 2023 Discount Rate 3.86 % Prior year discount rate 3.69 % The discount rate was based on the June 30, 2023, Fidelity General Obligation AA 20-Year Yield. Mortality rates for retirees/disabled employees were based on the PubG.H-2010 Healthy Retiree Mortality Table, Generational with Projection Scale MP -2020 for males or females, as appropriate. Inactive employees currently receiving benefit payments 17 Inactive employees entitled to but not yet receiving benefit payments — Active employees — Total 17 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 117 Changes in Total OPEB Liability Balance at June 30, 2022 $ 195,123 Changes for the Year Interest 6,824 Differences between expected and actual experience — Change in assumptions/inputs (1,897) Benefit Payments (20,400) Net Changes (15,473) Balance at June 30, 2023 $ 179,650 Sensitivity of the Total OPEB Liability 1% Decrease No Change 1% Increase (2.86)%(3.86)%(4.86)% Discount Rate $ 191,394 $ 179,650 $ 169,246 Healthcare Cost Trend Rates 166,976 179,650 193,767 OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB OPEB Expense Interest on liabilities $ 6,824 Difference between actual and expected experience — Changes in Assumptions/Inputs (1,897) Total OPEB expense $ 4,927 There are no deferred outflows or deferred inflows of resources at June 30, 2023. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 118 17. Commitments and Contingencies Commitments for major construction, capital improvement and other projects at June 30, 2023 are shown below. General Fund $ 21,891,903 Special-revenue funds 14,353,603 Capital Projects Fund 61,030,832 Enterprise funds 2,606,210,528 Internal service funds 17,924,881 Total $ 2,721,411,747 The City is lessee under a number of non-capitalized lease agreements, one of which is non- cancellable, involving land, buildings and equipment. Rent expense during the fiscal year ended June 30, 2023 approximated $1,792,903 of which $1,380,447 was related to proprietary funds. Future minimum rental payments are as follows: General Fund 2024 $ 312,558 2025 312,558 2026 312,558 2027 312,558 2028 312,558 2029-2033 1,562,790 2034 312,558 Total $ 3,438,138 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. 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 2021-2022 $ 7,815,000 $ 1,238,118 $ (512,888) $ 8,540,230 $ 2,290,839 2022-2023 $ 8,540,230 $ 2,934,208 $ (3,565,198) $ 7,909,240 7 9 $ 2,172,444 As of June 30, 2023, the Utilities had outstanding commitments for the construction and acquisition of property and equipment. Commitments of the Water Utility totaled $27,011,444, of the SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 119 Sewer Utility totaled $235,995,600, of the Stormwater Utility totaled $5,603,507, and of the Street Lighting Utility totaled $16,414. Metropolitan Water District —To meet the water supply needs of Salt Lake City and Sandy through the year 2035, the Metropolitan Water District Board 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 treatment plant. Following are the future minimum payments due from the Water Utility through 2035: 2024 $ 7,021,892 2025 7,021,892 2026 7,021,892 2027 7,021,892 2028 7,021,892 2029-2033 35,109,460 2034-2035 10,532,838 Total $ 80,751,758 Federal Stimulus Grant Funds- In 2021 and 2022 the City received over $105 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, 2023 which resulted in presenting the unspent portion as Revenues collected in advance on the current financial statements. A majority of the funds were expended in Fiscal Year 2023. It is anticipated that the remainder 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 $6,957,137 long term and $1,022,595 in current liabilities. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 120 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 $1,920,863, which is the estimated amount of litigation probable to have a negative outcome. Of this potential liability $1,838,863 is Water Fund related, $77,000 is Sewer Fund related, and $5,000 is Stormwater fund related. Of the $1,920,863 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 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 the opinion of legal counsel for the Airport and Airport management, these are not likely to have a material adverse impact on the Airport's financial statements. Environmental Remediation- The Utilities are participating in two environmental remediation sites. 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. 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. Over the life of the process, as of June 30, 2023 the oil companies have contributed approximately $21.8 million; the Utilities have capitalized as construction in progress a total of $33,539,841 in remediation costs. The Utilities estimate that the remaining remediation activities will generate about $33,500 in contributions from the oil companies, will cost about $50,000, and will continue through fiscal year 2024. The Utilities have budgeted accordingly. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 121 Airport- At June 30, 2023, the Airport was committed to contractors and vendors for approximately $1 billion 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 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, 2008, the City issued $8,590,000 of Series 2007 Sales Tax Revenue Bonds. A portion of the bond proceeds were used to finance the construction of the Grant Tower project. The Agency entered into an agreement with the City in January 2008, regarding the payment obligations on the bonds. Under the terms of the agreement, the Agency is obligated to remit funds to the City on a semi-annual basis to cover payments the City makes on the bonds. In December 2019, the City issued a complete refunding of the bond at a 4% interest rate, saving the Agency over $18,500 in principal and interest payments. As of June 30, 2022, anticipated cumulative payments remaining under the agreement were $0 During the year ended June 30, 2013, the City issued $15,000,000 of Bond Anticipation Notes (BANS) to begin construction on the Eccles Theater. These bonds were issued in expectation of the issuance of the Tax Increment Bonds (as discussed in Note 7) and the Sales Tax Revenue Bonds issued by the City (as discussed below). The City received the proceeds of the BANS and paid design and pre- construction costs. During the year ended June 30, 2014, the City issued Series 2013A Sales Tax Revenue Bonds in the amount of $51,270,000 to aid in financing the construction of the Eccles Theater. With the proceeds of these bonds, the City paid off the BANS and the remaining net proceeds of $34,349,587 were transferred to the Agency as a contribution from the City. Bond issuance costs and accrued interest of $1,920,413 were recognized by the Agency as expense. In addition, upon issuance of the bonds, the Agency used private donations of $2,596,649 and contributed $1,104,957 of its own funds into an SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 122 escrow account for capitalized interest on the bonds. In December 2019, the City completely refunded the Series 2013A bonds by issuing Series 2019 taxable sales and excise tax revenue refunding bonds in the amount of $58,540,000, saving the Agency over $11,000,000 in principal and interest payments. As of June 30, 2023, anticipated cumulative payments remaining under the agreement were $76,689,609. Anticipated payments are included in the table below. The Agency will remit principal and interest payments semi-annually to the City per the debt service schedules as a contribution to the City (expense). Total anticipated payments are as follows. Year Ending June 30,Annual Obligation 2024 $ 2,188,086 2025 2,187,723 2026 2,186,443 2027 2,184,427 2028 2,186,796 2029-2033 23,472,420 2034-2038 42,283,714 Total $ 76,689,609 As discussed previously, proceeds from the Series 2013 Agency bonds and Series 2013A City bonds provided financing for the construction of the Eccles Theater on Block 70 within the Central Business District (CBD). The remaining non-refunded portion of the Agency's Series 2013 bonds were paid in fiscal year 2023. The Series 2019 taxable tax increment revenue refunding bonds issued by the Agency mature in 2031. The Series 2019 taxable sales and excise tax revenue refunding bonds (advance refunding of Series 2013A) issued by the City are payable through fiscal year 2038. The annual debt service will be funded by the incremental property taxes generated from the CBD Project area, Block 70 Community Development Area (CDA) and private donations. Annual principal and interest payments on the bonds associated with the Theater are expected to require approximately 30% of tax increment revenues generated from CBD and Block 70, beginning in fiscal year 2016. As of June 30, 2023, the total principal and interest remaining to be paid on all bonds for the Eccles Theater project was $123,749,493. The Agency has pledged future tax increment revenues to repay the remaining Series 2019 Tax Increment and Series 2019A Sales Tax Revenue Refunding bonds. Through inter-local agreements entered into with the City and Salt Lake County (the County), CBD tax increment revenue that would have been remitted to these agencies has been pledged to the Agency through tax year 2040. In December 2011, the Agency entered into an agreement with the City in which the Agency will retain a portion of the City's Taxing Entity Committee (TEC) allocation, in order to pay principal and interest on the Theater bond obligations. Each year, beginning in tax year 2015 through 2040, the City will continue to receive from the Agency a dollar amount equal to the 2014 TEC allocation. The original inter-local agreement specified that the Agency will retain 80% of the remaining TEC allocation. This inter-local agreement was subsequently amended in May 2013 to provide that the Agency will retain up to 100% of the remaining TEC allocation, as is necessary to fund debt service payments. The Agency is required to SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 123 reimburse the City for any portion of this additional TEC allocation that is utilized for debt service on the Eccles Theater, with the balance accruing interest at the City's general fund rate. The Agency is required to commit CBD tax increment in an amount equal to the City allocation under these agreements. Similarly, in October 2012, the Agency entered into an interlocal agreement with the County wherein the Agency is entitled to retain the County's portion of the CBD tax increment up to a maximum of $43,000,000. The County will continue to receive from the Agency a dollar amount equal to the 2014 TEC allocation each year beginning in tax year 2015 through 2040, and the Agency will retain the remaining TEC allocation to fund debt service on the Eccles Theater project. During the fiscal year ended June 30, 2023, the Agency transferred $6,520,478 in CBD incremental tax revenue to Block 70 for Eccles debt service per the agreements, and transferred an additional $2,469,853 in available CBD tax increment revenue. In addition, the Agency entered into an inter-local agreement with the City and the Salt Lake City School District (SLCSD) wherein the Agency is entitled to receive the City's and SLCSD's portions of the tax increment from the Block 70 CDA for twenty-five years, beginning in the tax year 2016, for the purpose of funding debt service on the Eccles Theater. The tax increment funds are not limited to funding debt service, but will also be used to fund the creation of a cultural core and for debt service on the Regent Street improvement bonds. In addition, in September 2012, the Agency entered into an agreement with the County wherein the Agency is entitled to receive the County’s portion of the Tax Increment from the Block 70 CDA for 25 years, beginning in tax year 2016, up to a maximum of $7,000,000 for the purposes of funding debt service on the Eccles Theater. During the year ended June 30, 2023, the Agency received an additional $4,150,044 in incremental property taxes under these agreements. The Agency expended $9,564,596 to cover the principal and interest payments due during the year. 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 the agreement through an assignment and assumption agreement signed in June 2016. NF IV-VA SSCI Salt Lake LLC assumed the agreement through an assignment and assumption agreement signed in Fiscal Year 2021. Under this agreement, the Agency is obligated to repay to the developers, from the tax increment revenue increases received from the prospective projects, at the lesser of $2,020,000 or 37.5% of the tax increment increases over the reimbursement term, plus accrued interest, but not to exceed the tax increment revenues received by the Agency from the individual projects. These obligations are also subject to the developers paying property taxes in a timely manner and the receipts of certificates project completion. For the year ended June 30, 2023, the Agency paid the developers $73,047. 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 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 124 the other terms of the reimbursement agreement. For the year ended June 30, 2023, the Agency recorded expenses of $559,841. 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 year ended June 30, 2023, the Agency recorded expenses of $129,148. During the year ended June 30, 2017, the Agency and Larry H. Miller Arena Corporation (the "Lessee"), entered into a Participation and Reimbursement Agreement for the renovation of the Delta Center Arena at 301 West South Temple, as part of the Central Business District Neighborhood Redevelopment Project Area Plan. This agreement outlines the Agency's commitment to partially reimburse the Lessee for public area upgrades through tax increment financing, with a cap of $15,946,396 for Tax Increment (TI) Reimbursement Payments and $6,753,604 for Grant Reimbursement Payments, ensuring the total reimbursement does not exceed $22,700,000. The Reimbursement Term will expire December 31, 2040, with annual payments contingent on the Lessee's compliance with specific conditions, including project completion, property tax payments, and maintaining the Arena as the home venue for Utah Jazz NBA games. The Agency retains the right to issue bonds secured by the tax increment, with the understanding that this will not absolve it of its obligations under this agreement. The Agency's financial commitment, encompassing both TI and Grant Reimbursement Payments, is firmly capped, and any shortfall in tax increment generation will not extend the Agency's obligations beyond the agreed term. For the year ended June 30, 2023, the Agency recorded expenses of $657,881, which consisted of $350,899 of TI Reimbursement Payments and $306,982 of Grant Reimbursement Payments. 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 SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 125 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, 2023, the Agency made reimbursements to Stadler for tax years 2019-2022 totaling $350,941. 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 reimbursement was made for tax years 2019-2021. The total reimbursement paid for the year ended June 30, 2023 to NWQ LLC, was $154,107. 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 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 was anticipated to be for the 2022 tax year. No payments were made during the year ended June 30, 2023. In March, 2008, the Agency and the State of Utah (State) entered into a lease agreement for the rental by the State of 250 parking stalls in a parking structure owned by the Agency. The lease requires monthly payments of $20 per stall, for a total of $5,000 per month. The lease term is 20 years. In addition, the lease includes a provision for the repayment of a portion of the construction costs to be paid by the State of $350,000 over the term of the parking rental agreement. The repayment terms requires interest of 3% and monthly payments of $2,077, in addition to the monthly rent payments. The balance of the unpaid amount as of June 30, 2023, was $69,533, which has been recorded as a note receivable. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 126 18. 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, 2024 $ 7,021,892 2025 7,021,892 2026 7,021,892 2027 7,021,892 2028 7,021,892 2029-2033 35,109,460 2034-2035 10,532,838 Total $ 80,751,758 19. 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, 2023, was $23,235,204. 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) 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 127 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 $9,946,927 at Salt Lake County’s fiscal year end and is based on 32.2% of capacity currently filled. The Landfill will recognize the remaining estimated cost of closure and post-closure care of approximately $29,225,170 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 2022 were $1,332,383. 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 $39,172,097 at December 31, 2022. 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 has set aside resources to finance the estimated liability for landfill closure and postclosure costs; at December 31, 2022 the Landfill has set aside $9,946,927 of its pooled cash and investments.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, 2023, the City paid the landfill approximately $1,830,984 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. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 128 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, 2022 totaled $961,427, which has been included in governmental activity investment in joint ventures in the government-wide statement of net position. Of the total investment, $686,539 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. 20. Recent Accounting Pronouncements Newly Issued Accounting Pronouncements In April 2022, the GASB issued Statement No. 99. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to leases, PPPs, and SBITAs will take effect for financial statements starting with the fiscal year that ends June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024. The city is currently evaluating the impact this statement will have in future years. In June 2022, the GASB issued Statement No. 100. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2024. The city is currently evaluating the impact this statement will have in future years. In June 2022, the GASB issued Statement No. 101. his Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 129 leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit post-employment benefits should not be included in a liability for compensated absences. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024. The city is currently evaluating the impact this statement will have in future years. 21. Subsequent Events The following events occurred subsequent to June 30, 2023: On September 26, 2022, the Airport reduced the accessible amount on the line of credit from $300 million to $150 million. On October 5, 2022, the City issued $21,875,000 of GO Series 2022 bonds. The proceeds of the bonds are being used for street reconstruction. On November 17, 2022 the City issued $40,015,000 and 24,240,000 of Sales Tax Revenue bonds 2022B and 2022C bonds, respectively. The proceeds of the bonds are being used for (a) financing all or a portion of the cost of (i) acquiring, constructing and improving capital improvement projects including (A) City Cemetery irrigation and road repairs and reconstruction; (B) improvements to Pioneer Park; (C) 600 North Corridor transformation; (D) new radio towers for City communication; (E) an upgrade of the electrical transformer at the Central Plant and emergency backup generators; (F) Westside railroad quiet zones; (G) Warm Spring Plunge structure stabilization and improvements; (H) Smith’s Ballpark improvements; (I) urban wood reutilization equipment and storage additions; and (J) Fisher Mansion stabilization and improvements and (ii) acquiring, constructing, improving and remodeling various other capital improvement program projects. 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. Subsequent to year-end, the City received approximately $6 million from the State of Utah. This was a reallocation of Federal Emergency Rental Assistance grant funds from the Covid 19 pandemic. SALT LAKE CITY CORPORATION NOTES TO FINANCIAL STATEMENTS June 30, 2023 130 Required Supplementary Information 131 SALT LAKE CITY CORPORATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND Year ended June 30, 2023 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 $ 128,801,500 $ — $ 128,801,500 $ 126,651,149 $ 126,651,149 $ 2,150,351 Sales, use and excise taxes 172,197,418 — 172,197,418 149,414,508 149,414,508 22,782,910 Franchise taxes 12,756,615 — 12,756,615 11,657,128 11,657,128 1,099,487 Licenses 17,599,344 — 17,599,344 15,514,249 15,514,249 2,085,095 Permits 26,347,166 — 26,347,166 25,216,212 25,216,212 1,130,954 Fines and forfeitures 2,339,387 — 2,339,387 1,915,174 1,915,174 424,213 Interest 12,352,550 — 12,352,550 2,071,154 2,071,154 10,281,396 Intergovernmental 5,936,560 — 5,936,560 4,644,622 4,644,622 1,291,938 Interfund service charges 25,857,520 — 25,857,520 24,431,717 24,431,717 1,425,803 Parking meter 2,616,329 — 2,616,329 2,635,475 2,635,475 (19,146) Parking ticket 1,180,128 — 1,180,128 1,850,000 1,850,000 (669,872) Charges for services 5,114,484 — 5,114,484 3,759,620 3,759,620 1,354,864 Rental and other income 697,203 — 697,203 — — 697,203 Miscellaneous 4,655,041 — 4,655,041 4,117,537 4,134,655 520,386 Total revenues 418,451,245 — 418,451,245 373,878,545 373,895,663 44,555,582 Expenditures: Current: City Council 4,725,621 437,597 5,163,218 5,387,707 5,865,015 701,797 Mayor 5,120,100 211,809 5,331,909 6,625,451 6,717,811 1,385,902 City Attorney 8,683,519 95,923 8,779,442 9,007,633 9,149,396 369,954 Finance 10,039,270 512,062 10,551,332 10,709,847 11,511,177 959,845 Fire 47,959,663 778,023 48,737,686 48,586,492 49,240,693 503,007 Combined Emergency Services 10,109,426 155,081 10,264,507 10,872,140 11,002,507 738,000 Police 103,022,906 1,927,708 104,950,614 103,977,042 109,399,027 4,448,413 Community and Neighborhoods 30,936,834 2,860,773 33,797,607 29,311,147 40,320,645 6,523,038 Economic Development 3,220,279 60,277 3,280,556 3,695,620 4,041,963 761,407 Justice Court 4,928,656 69,173 4,997,829 5,199,660 5,246,029 248,200 Human Resource 3,722,452 66,766 3,789,218 4,236,836 4,283,535 494,317 Public Services 61,802,283 6,234,766 68,037,049 63,628,160 70,558,245 2,521,196 Nondepartmental 52,459,130 7,743,738 60,202,868 40,862,171 52,311,573 (7,891,295) Total expenditures 346,730,139 21,153,696 367,883,835 342,099,906 379,647,616 11,763,781 Revenues over (under) expenditures 71,721,106 (21,153,696) 50,567,410 31,778,639 (5,751,953) 56,319,363 Other financing sources (uses): Proceeds from sale of property 25,554 — 25,554 — — 25,554 Transfers in 51,822,655 — 51,822,655 28,821,993 54,013,488 (2,190,833) Transfers out (81,117,256) — (81,117,256) (83,437,502) (99,167,639) 18,050,383 Total other financing sources (uses): (29,269,047) — (29,269,047) (54,615,509) (45,154,151) 15,885,104 Net Change in Fund Balance 42,452,059 $ (21,153,696) $ 21,298,363 $ (22,836,870) $ (50,906,104) $ 72,204,467 Fund Balance July 1, 2022 160,123,682 Prior year encumbrances appropriated in current year — Prior period compensated absences — Fund Balance June 30, 2023 $ 202,575,741 132 SALT LAKE CITY CORPORATION SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS As of the Year Ended December 31, 2021 Last 10 Fiscal Years * Noncontributory System 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability/(asset) 9.70 % 9.91 % 9.93 % 10.01 % 10.09 % 10.16 % 10.50 % 10.40 % 10.30 % Proportionate share of the net pension liability/(asset)$16,621,860 $ (56,771,800) $ 5,095,905 $ 37,731,456 $ 74,328,318 $ 44,516,859 $ 67,230,056 $ 58,910,626 $ 44,746,492 Covered payroll 76,152,635 76,880,596 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/(asset) as a percentage of its covered payroll 21.83 % (73.84) % 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 97.50 % 108.70 % 99.20 % 93.70 % 87.00 % 91.90 % 87.30 % 87.80 % 90.20 % Contributory Retirement System 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability/(asset) 10.76 % 10.43 % 10.43 % 10.93 % 12.05 % 13.90 % 14.20 % 9.50 % 9.20 % Proportionate share of the net pension liability/(asset)$ 1,106,542 $ (7,552,026) $ (1,869,545) $ 716,348 $ 4,889,920 $ 1,131,317 $ 4,650,788 $ 6,662,216 $ 2,659,357 Covered payroll 1,509,950 1,532,256 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/(asset) as a percentage of its covered payroll 73.28 % (492.87) % (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 97.70 % 115.90 % 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. 133 SALT LAKE CITY CORPORATION SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS As of the Year Ended December 31, 2021 Last 10 Fiscal Years * Public Safety System 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability/(asset) 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % Proportionate share of the net pension liability/(asset)$62,282,792 $19,818,161 $59,354,942 $79,378,833 $103,028,051 $86,194,634 $91,688,895 $85,106,335 $72,876,185 Covered payroll 28,012,449 27,379,781 28,690,327 29,303,158 29,710,645 29,999,431 31,087,336 28,581,857 28,254,323 Proportionate share of the net pension liability/(asset) as a percentage of its covered payroll 222.34 % 72.38 % 206.88 % 270.89 % 346.77 % 287.32 % 294.90 % 297.80 % 257.90 % Plan fiduciary net position as a percentage of the total pension liability 86.20 % 95.50 % 85.90 % 80.40 % 73.70 % 77.30 % 74.00 % 73.90 % 76.70 % Firefighters System 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability/(asset) 25.62 % 26.65 % 26.38 % 26.66 % 26.50 % 25.40 % 26.00 % 25.80 % 25.70 % Proportionate share of the net pension liability/(asset)$ (32,243,802) $ (72,083,739) $ (35,538,594) $ (16,662,414) $ 10,708,746 $ (5,697,589) $ 3,844,181 $ 4,382,293 $ (2,831,091) Covered payroll 21,331,459 22,127,493 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 (151.16) % (325.77) % (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 110.30 % 122.90 % 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. 134 SALT LAKE CITY CORPORATION SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY UTAH RETIREMENT SYSTEMS As of the Year Ended December 31, 2021 Last 10 Fiscal Years * Tier 2 Public Employees System 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability/(asset) 2.99 % 2.79 % 2.87 % 2.84 % 2.74 % 2.70 % 2.70 % 2.60 % 2.50 % Proportionate share of the net pension liability/(asset)$3,252,994 $(1,179,997)$ 412,448 $ 639,365 $ 1,173,741 $ 237,701 $ 305,635 $ (5,627) $ (75,674) Covered payroll 65,149,798 51,749,660 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 4.99 % (2.28) % 0.90 % 1.62 % 3.67 % 0.90 % 1.40 % — % (0.60) % Plan fiduciary net position as a percentage of the total pension liability 92.30 % 103.80 % 98.30 % 96.50 % 90.80 % 97.40 % 95.10 % 100.20 % 103.50 % Tier 2 Public Safety and Firefighter System 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability/(asset) 6.19 % 5.80 % 5.74 % 5.55 % 5.18 % 5.18 % 5.10 % 4.90 % 4.70 % Proportionate share of the net pension liability/(asset)$ 516,314 $ (293,012) $ 515,287 $ 521,868 $ 129,911 $ (59,931) $ (44,337) $ (70,899) $ (69,679) Covered payroll 19,042,447 13,863,869 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 2.71 % (2.11) % 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 96.04 % 102.80 % 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. 135 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2023 Last 10 Fiscal Years * Noncontributory System 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 13,669,162 $ 13,987,824 $ 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 contribution (13,669,162) (13,987,824) (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 deficiency — — — — — — — — — Covered payroll 75,622,149 76,229,226 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 ** 18.08 % 18.35 % 18.35 % 18.35 % 18.35 % 18.34 % 18.40 % 18.40 % 18.30 % 17.20 % Contributory Retirement System 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 209,380 $ 220,194 $ 230,348 $ 269,579 $ 295,509 $ 385,624 $ 440,076 $ 521,065 $ 663,580 $ 678,348 Contributions in relation to the contractually required contribution (209,380) (220,194) (230,348) (269,579) (295,509) (385,624) (440,076) (521,065) (663,580) (678,348) Contribution deficiency — — — — — — — — — Covered payroll 1,490,725 1,522,794 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 ** 14.05 % 14.46 % 14.46 % 14.46 % 14.46 % 14.50 %14.5% 14.50 % 14.50 % 13.30 % * Amounts presented were determined as of fiscal year July 1 - June 30. ** Contributions as a percentage of covered payroll may be different than the Board certified rate due to rounding or other administrative issues. 136 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2023 Last 10 Fiscal Years * Public Safety System 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 13,146,106 $ 12,767,488 $ 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 contribution (13,146,106) (12,767,488) (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 deficiency — — — — — — — — — Covered payroll 28,351,640 27,876,833 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 ** 46.37 % 45.80 % 45.71 % 4580.00 % 45.90 % 46.11 % 46.10 % 46.20 % 46.20 % 46.10 % 44.30 % Firefighters System 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 1,301,449 $ 1,534,954 $ 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 contribution (1,301,449) (1,534,954) (1,584,137) (1,594,213) (1,575,638) (1,492,942) (1,415,652) (1,478,858) (1,423,828) (953,758) Contribution deficiency — — — — — — — — — Covered payroll 20,898,457 21,507,692 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 ** 6.23 % 7.14 % 7.15 % 7.23 % 7.24 % 6.70 % 6.70 % 6.80 % 6.60 % 4.50 % * Amounts presented were determined as of fiscal year July 1 - June 30. ** Contributions as a percentage of covered payroll may be different than the Board certified rate due to rounding or other administrative issues. 137 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2023 Last 10 Fiscal Years * Tier 2 Public Employee System***2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 11,675,940 $ 9,282,036 $ 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 contribution (11,675,940) (9,282,036) (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 deficiency — — — — — — — — — Covered payroll 71,143,338 57,760,755 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 ** 16.41 % 16.07 % 15.80 % 15.66 % 15.54 % 15.10 % 14.90 % 14.90 % 14.90 % 14.00 % Tier 2 Public Safety and Firefighter System***2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 6,537,069 $ 5,165,630 $ 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 contribution (6,537,069) (5,165,630) (3,605,014) (3,079,494) (2,273,400) (1,700,143) (1,268,783) (958,067) (723,268) (494,869) Contribution deficiency — — — — — — — — — Covered payroll 20,603,402 16,575,313 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 ** 31.73 % 31.16 % 30.51 % 28.75 % 28.22 % 27.20 % 26.80 % 27.50 % 29.80 % 28.90 % * Amounts presented were determined as of fiscal year July 1 - June 30. ** 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. 138 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2023 Last 10 Fiscal Years * Tier 2 Public Employees DC Only System***2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 1,325,692 $ 1,164,900 $ 1,044,855 $ 839,449 $ 718,595 $ 612,119 $ 469,208 $ 350,234 $ 223,610 $ 99,229 Contributions in relation to the contractually required contribution (1,325,692) (1,164,900) (1,044,855) (839,449) (718,595) (612,119) (469,208) (350,234) (223,610) (99,229) Contribution deficiency — — — — — — — — — Covered payroll 20,088,131 16,699,079 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 ** 6.60 % 6.98 % 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***2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarial determined contributions $ 698,569 $ 567,245 $ 453,281 $ 389,830 $ 358,354 $ 273,217 $ 167,364 $ 144,511 $ 138,623 $ 66,613 Contributions in relation to the contractually required contribution (698,569) (567,245) (453,281) (389,830) (358,354) (273,217) (167,364) (144,511) (138,623) (66,613) Contribution deficiency — — — — — — — — — Covered payroll 3,540,475 2,872,082 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 ** 19.73 % 19.75 % 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. ** 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. 139 SALT LAKE CITY CORPORATION SCHEDULE OF CONTRIBUTIONS UTAH RETIREMENT SYSTEMS June 30, 2023 Last 10 Fiscal Years * SALT LAKE CITY PUBLIC SAFETY FUND 2033 2022 2021 2020 2019 2018 2017 2016 Actuarially Determined Contribution $ 16,505,799 $ 15,350,247 $ 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 (16,505,799) (15,350,247) (15,608,224) (15,608,919) (15,294,371) (14,899,169) (15,260,367) (14,100,050) Contribution deficiency (excess) — — — — — — Covered payroll 25,994,490 26,735,927 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 63.5 % 57.4 % 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 available. 140 SALT LAKE CITY CORPORATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY December 31, 2022 Last 10 Fiscal Years* Schedule of Changes in Net Pension Liability Total pension liability 2022 2021 2020 2019 2018 2017 2016 2015 Service Cost $ 6,140,012 $ 6,146,543 $ 6,566,784 $ 6,664,578 $ 6,763,108 $ 6,704,194 $ 6,316,421 $ 5,963,330 Interest (on the Total Pension Liability) 29,255,041 28,604,572 27,597,013 26,741,309 25,880,971 24,936,718 23,099,095 23,023,003 Difference between expected and actual experience 3,310,822 (769,824) 3,340,606 345,357 533,365 2,143,293 2,814,918 2,062,462 Changes of assumptions — 5,194,335 (242,821) — — 11,736,690 11,312,611 — Benefit payments, including refunds of employee contributions (24,649,742) (23,562,271) (21,546,165) (21,233,951) (20,264,462) (18,746,721) (17,682,059) (17,073,847) Net change in total pension liability 14,056,133 15,613,355 15,715,417 12,517,293 12,912,982 26,774,174 25,860,986 13,974,948 Total pension liability – beginning 435,897,793 420,284,438 404,569,021 392,051,728 379,138,746 352,364,572 326,503,586 312,528,638 Total pension liability – ending $ 449,953,926 $ 435,897,793 $ 420,284,438 $ 404,569,021 $ 392,051,728 $ 379,138,746 $ 352,364,572 $ 326,503,586 Plan fiduciary net position Contributions – employer $ 16,505,799 $ 15,350,247 $ 15,608,224 $ 15,608,919 $ 15,294,371 $ 14,899,169 $ 15,260,367 $ 14,100,050 Contributions – employee 88,709 3,338 88,759 — — — 7,662 198 Net investment income (21,787,130) 61,654,861 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 (24,649,742) (23,562,271) (21,546,165) (21,233,951) (20,264,462) (18,746,721) (17,682,059) (17,073,847) Administrative Expense (134,148) (130,628) (129,919) (125,839) (134,501) (129,436) (118,082) (115,895) Other 1,538,014 1,834,589 1,175,267 801,467 2,259,077 1,642,323 1,368,982 656,892 Net change in plan fiduciary net position (28,438,498) 55,150,136 35,739,308 36,166,511 (3,920,435) 32,268,435 19,278,426 1,744,798 Plan fiduciary net position – beginning 416,079,632 360,929,496 325,190,188 289,023,677 292,944,112 260,675,677 241,397,251 239,652,453 Plan fiduciary net position – ending $ 387,641,134 $ 416,079,632 $ 360,929,496 $ 325,190,188 $ 289,023,677 $ 292,944,112 $ 260,675,677 $ 241,397,251 Net pension liability $ 62,282,792 $ 19,818,161 $ 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 86.2 % 95.5 % 85.9 % 80.4 % 73.7 % 77.3 % 74.0 % 73.9 % Covered payroll 25,994,490 26,735,927 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 239.6 % 74.1 % 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. 141 SALT LAKE CITY CORPORATION COMPONENT UNIT LIBRARY SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS June 30, 2023 Last 10 Fiscal Years * Schedule of Changes in the Total OPEB Liability and Related Ratios 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost $ — $ — $ — $ — $ — Interest 6,824 4,455 5,876 7,958 9,568 10,234 Changes of benefit terms — — — — — Differences between expected and actual experience (6,241) (1,113) (398) (764) 1,985 Changes in assumptions or other inputs (1,897) (24,306) 9,647 1,857 8,215 — Benefit Payments (20,400) (21,600) (22,900) (24,750) (29,250) (31,950) Net Change in Total OPEB liability (15,473) (47,692) (8,490) (15,333) (12,231) (19,731) Total OPEB Liability - Beginning 195,123 242,815 251,305 266,638 278,868 298,599 Total OPEB Liability - Ending $ 179,650 $ 195,123 $ 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 N/A N/A Notes to Schedule: Changes of Benefit Terms: None Discount rates used in each period:3.86%3.69%1.92%2.45%3.13%3.62% Changes of assumptions and other inputs reflects the effects of changes in the discount rate each period, as shown above. * 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. 142 Notes to Required Supplementary Information 143 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, 2023, General Fund appropriations increased by a net $28,069,234. The first increase was for encumbrances totaling $20,147,898. The third budget amendment increased funding for deeply affordable housing to address immediate and long-term homeless needs by $6 million. The fourth budget amendment totaled $7,584,328 and included requests for five new positions. It also included $750,000 for fire station gender equity, $2,539,019 for police patrol response, $500,000 for the tennis court reconstruction and $800,000 for substation improvements and various smaller projects. The fifth and sixth budget amendment increased general fund budgets by $5,940,349 and $12,219,731 respectively. These amounts included funding increases for repairs to City Hall for earthquake damages, improvements to the City physical security, reapairs to the Steiner building roof, and ARPA revenue replacement. 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, 2023 City Council $ 4,725,621 $ 422,308 $ 15,289 $ 5,163,218 Mayor 5,120,100 201,201 10,608 5,331,909 City Attorney 8,683,519 68,254 27,669 8,779,442 Finance 10,039,270 479,131 32,931 10,551,332 Fire 47,959,663 637,083 140,940 48,737,686 Combined Emergency Services 10,109,426 130,367 24,714 10,264,507 Police 103,022,906 1,680,990 246,718 104,950,614 Community and Neighborhoods 30,936,834 2,800,541 60,232 33,797,607 Economic Development 3,220,279 55,343 4,934 3,280,556 Justice Courts 4,928,656 46,369 22,804 4,997,829 Human Resources 3,722,452 46,699 20,067 3,789,218 Public Services 61,802,283 6,111,185 123,581 68,037,049 Nondepartmental 52,459,130 7,743,738 — 60,202,868 Total expenditures 346,730,139 20,423,209 730,487 367,883,835 Transfers out 81,117,256 — — 81,117,256 Total $ 427,847,395 $ 20,423,209 $ 730,487 $ 449,001,091 SALT LAKE CITY CORPORATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2023 144 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. SALT LAKE CITY CORPORATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2023 145 This page intentionally left blank 146 Supplementary Information 147 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. 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. DEA Metro Narcotic Task Force Fund - The Drug Enforcement Administration Metropolitan Narcotic Task Force (DEA Metro Narcotic Task Force) is dedicated to the reduction of illegal drug trafficking. Financial resources are provided by federal grants and asset forfeitures. 148 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. 149 SALT LAKE CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2023 Special Revenue Funds Special Improvement Debt Service Fund Total Nonmajor Governmental Funds ASSETS Cash and cash equivalents Unrestricted $ 50,941,266 $ 168,217 $ 51,109,483 Receivables: Property tax receivable 2,364,903 — 2,364,903 Accounts receivable 1,875,862 139,417 2,015,279 Loan and other receivables 278,201 — 278,201 Due from for cash overdraft 475,946 — 475,946 Due from other governments 3,979,308 — 3,979,308 Other 4,057 86,790 90,847 Prepaids 23,731 — 23,731 Total assets $ 59,943,274 $ 394,424 $ 60,337,698 LIABILITIES Due to for cash overdraft $ 475,946 $ — $ 475,946 Accounts payable 1,712,348 — 1,712,348 Accrued liabilities 351,638 — 351,638 Current deposits and advance rentals 1,638,358 — 1,638,358 Revenues collected in advance 23,499,843 — 23,499,843 Other liabilities payable from restricted assets 1,875,862 226,207 2,102,069 Total liabilities 29,553,995 226,207 29,780,202 DEFERRED INFLOWS OF RESOURCES Unavailable grant revenue 650 — 650 Total liabilities and deferred inflows of resources 29,554,645 226,207 29,780,852 FUND BALANCE Nonspendable 23,731 — 23,731 Restricted 15,018,855 — 15,018,855 Committed 6,021,935 168,217 6,190,152 Assigned 9,324,108 — 9,324,108 Total fund balance 30,388,629 168,217 30,556,846 Total liabilities and fund balance $ 59,943,274 $ 394,424 $ 60,337,698 150 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year ended June 30, 2023 Special Revenue Funds Special Improvement Debt Service Fund Total Nonmajor Governmental Funds Revenues: Sales, use, and excise taxes $ 13,494,711 $ — $ 13,494,711 Assessments 1,568,911 13,051 1,581,962 Fines and forfeitures 36,174 — 36,174 Interest 447,871 15,653 463,524 Intergovernmental 65,048,776 — 65,048,776 Charges for services 2,804,287 — 2,804,287 Contributions 765,787 — 765,787 Rental and other income 431,910 — 431,910 Miscellaneous 1,953,665 — 1,953,665 Total revenues 86,552,092 28,704 86,580,796 Expenditures: Fire 66,140 — 66,140 Police 445,197 — 445,197 Community and Neighborhoods 24,792,625 — 24,792,625 Economic Development 2,623,323 — 2,623,323 Public Services 2,365,514 — 2,365,514 Nondepartmental — 83 83 Total expenditures 30,292,799 83 30,292,882 Revenues over expenditures 56,259,293 28,621 56,287,914 Other financing sources: Proceeds from sale of property 14,132 — 14,132 Transfers in 300,000 — 300,000 Transfers out (53,249,296) (53,249,296) Total other financing sources (52,935,164) — (52,935,164) Net change in fund balances 3,324,129 28,621 3,352,750 Fund Balance July 1, 2022 27,064,500 139,596 27,204,096 Fund Balance June 30, 2023 $ 30,388,629 $ 168,217 $ 30,556,846 151 SALT LAKE CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS June 30, 2023 Arts Council Downtown Economic Development Community Development Operating Grants Operating ASSETS Cash and cash equivalents Unrestricted $ 1,014,535 $ 2,816,272 $ — $ 27,313,629 Receivables: Property tax receivable — — — — Accounts receivable — 1,875,862 — — Loan and other receivables, net 278,201 — — — Due from for cash overdraft — — 475,946 Due from other governments — — 778,132 3,201,176 Other 4,057 — — — Prepaids 5,731 — 1,500 16,500 Total assets $ 1,302,524 $ 4,692,134 $ 779,632 $ 31,007,251 LIABILITIES Due to for cash overdraft $ — $ — $ 475,946 $ — Accounts payable 68,145 411,000 204,612 934,872 Accrued liabilities 351,638 — — — Current deposits and advance rentals — — — — Total current liabilities 419,783 411,000 680,558 934,872 Noncurrent liabilties: Revenues collected in advance — — — 23,499,843 Other liabilities payable from restricted assets — 1,875,862 — — Total liabilities 419,783 2,286,862 680,558 24,434,715 DEFERRED INFLOWS OF RESOURCES Unavailable grant revenue 650 — — — Total liabilities and deferred inflows of resources 420,433 2,286,862 680,558 24,434,715 FUND BALANCE Nonspendable 5,731 — 1,500 16,500 Restricted — — 97,574 6,556,036 Committed — — — — Assigned 876,360 2,405,272 — — Total fund balance 882,091 2,405,272 99,074 6,572,536 Total liabilities deferred inflows of resources and fund balance $ 1,302,524 $ 4,692,134 $ 779,632 $ 31,007,251 152 Street Lighting Demolition, Weed and Forfeiture Emergency 911 Dispatch Salt Lake City Donation Fund Salt Lake City Transportation Fund DEA Metro Narcotic Task Force Nonmajor Special Revenue Total $ 599,972 $ 3,014,810 $ 5,822,936 $ 3,909,218 $ 5,412,484 $ 1,037,410 $ 50,941,266 — — 850,330 — 1,514,573 — 2,364,903 — — — — — — 1,875,862 — — — — — — 278,201 — — — — — — 475,946 — — — — — — 3,979,308 — — — — — — 4,057 — — — — — — 23,731 $ 599,972 $ 3,014,810 $ 6,673,266 $ 3,909,218 $ 6,927,057 $ 1,037,410 59,943,274 $ — $ — $ — $ — $ — $ — 475,946 — 23,309 — 70,361 — 49 1,712,348 — — — — — — 351,638 — 1,638,358 — — — — 1,638,358 — 1,661,667 — 70,361 — 49 4,178,290 — — — — — — 23,499,843 — — — — — — 1,875,862 — 1,661,667 — 70,361 — 49 29,553,995 — — — — — — 650 — 1,661,667 — 70,361 — 49 29,554,645 — — — — — — 23,731 — — 850,330 — 6,927,057 587,858 15,018,855 — 198,999 5,822,936 — — — 6,021,935 599,972 1,154,144 — 3,838,857 — 449,503 9,324,108 599,972 1,353,143 6,673,266 3,838,857 6,927,057 1,037,361 30,388,629 $ 599,972 $ 3,014,810 $ 6,673,266 $ 3,909,218 $ 6,927,057 $ 1,037,410 $ 59,943,274 153 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS Year ended June 30, 2023 Arts Council Downtown Economic Development Community Development Operating Grants Operating Revenues: Sales, use, and excise taxes $ — $ — $ — $ — Assessments — 1,568,911 — — Fines and forfeitures — — — — Interest — 3,607 — 101,211 Intergovernmental — — 4,074,559 59,362,362 Charges for services 2,018,167 — — — Contributions 765,787 — — — Rental and other income — — — — Miscellaneous — — — 688,660 Total revenues 2,783,954 1,572,518 4,074,559 60,152,233 Expenditures: Fire — — — — Police — — — — Community and Neighborhoods — 1,668,631 2,579,246 20,128,930 Economic Development 2,623,323 — — — Public Services — — — — Total expenditures 2,623,323 1,668,631 2,579,246 20,128,930 Revenues over expenditures 160,631 (96,113) 1,495,313 40,023,303 Other financing sources: Proceeds from sale of property — — — — Transfers in — — — — Transfers out — — (1,476,972) (38,493,191) Total other financing sources — — (1,476,972) (38,493,191) Net change in fund balances 160,631 (96,113) 18,341 1,530,112 Fund Balance July 1, 2022 721,460 2,501,385 80,733 5,042,424 Fund Balance June 30, 2023 $ 882,091 $ 2,405,272 $ 99,074 $ 6,572,536 154 Street Lighting Demolition, Weed and Forfeiture Emergency 911 Dispatch Salt Lake City Donation Fund Salt Lake City Transportation Fund DEA Metro Narcotic Task Force Nonmajor Special Revenue Total $ — $ — $ 5,001,229 $ — $ 8,493,482 $ — $ 13,494,711 ——————1,568,911 —36,174 ————36,174 926 40,999 215,780 85,348 ——447,871 ———1,611,855 ——65,048,776 —212,843 —573,277 ——2,804,287 ——————765,787 ———431,910 ——431,910 —62,967 —1,165,186 —36,852 1,953,665 926 352,983 5,217,009 3,867,576 8,493,482 36,852 86,552,092 ———66,140 ——66,140 ———51,666 —393,531 445,197 —325,182 ——90,636 —24,792,625 ——————2,623,323 ———2,365,514 ——2,365,514 —325,182 —2,483,320 90,636 393,531 30,292,799 926 27,801 5,217,009 1,384,256 8,402,846 (356,679)56,259,293 —14,132 ————14,132 —300,000 ————300,000 ——(3,800,385)(20,000)(9,458,748)—(53,249,296) — 314,132 (3,800,385) (20,000) (9,458,748) — (52,935,164) 926 341,933 1,416,624 1,364,256 (1,055,902) (356,679) 3,324,129 599,046 1,011,210 5,256,642 2,474,601 7,982,959 1,394,040 27,064,500 $ 599,972 $ 1,353,143 $ 6,673,266 $ 3,838,857 $ 6,927,057 $ 1,037,361 $ 30,388,629 155 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE ARTS COUNCIL Year ended Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Charges for services $ 1,990,118 $ 1,894,493 $ 2,004,721 $ (14,603) Contributions 765,787 617,700 732,738 33,049 Miscellaneous 28,049 — 8,000 20,049 Total revenues 2,783,954 2,512,193 2,745,459 38,495 Expenditures: Arts Council 2,623,323 2,512,193 2,756,621 133,298 Total expenditures 2,623,323 2,512,193 2,756,621 133,298 Revenues over expenditures 160,631 $ — $ (11,162) $ 171,793 Other financing sources: Net change in fund balance 160,631 Fund Balance July 1, 2022 721,460 Fund Balance June 30, 2023 $ 882,091 156 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DOWNTOWN ECONOMIC DEVELOPMENT Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Assessments $ 1,568,911 $ 1,700,000 $ 1,700,000 $ (131,089) Interest 3,607 — — 3,607 Total revenues 1,572,518 1,700,000 1,700,000 (127,482) Expenditures: Community and Economic Development 1,668,631 1,700,000 1,700,000 31,369 Total expenditures 1,668,631 1,700,000 1,700,000 31,369 Revenues over expenditures (96,113) $ — $ — $ (96,113) Net change in fund balance (96,113) Fund Balance July 1, 2022 2,501,385 Fund Balance June 30, 2023 $ 2,405,272 157 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE COMMUNITY DEVELOPMENT OPERATING FUND Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Intergovernmental $ 4,074,559 $ 4,670,517 $ 6,980,730 $ (2,906,171) Total revenues 4,074,559 4,670,517 6,980,730 (2,906,171) Expenditures: Community and Economic Development 2,579,246 4,958,433 7,268,646 4,689,400 Total expenditures 2,579,246 4,958,433 7,268,646 4,689,400 Revenues over expenditures 1,495,313 (287,916) (287,916) 1,783,229 Other financing sources (uses): Transfers out (1,476,972) — — (1,476,972) Total other financing sources: (1,476,972) $ — $ — $ (1,476,972) Net change in fund balance 18,341 Fund Balance July 1, 2022 80,733 Fund Balance June 30, 2023 $ 99,074 158 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE GRANTS OPERATING FUND Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Interest $ 101,211 $ — $ 5,000 $ 96,211 Intergovernmental 59,362,362 34,158,918 73,380,812 (14,018,450) Miscellaneous 688,660 — 65,400 623,260 Total revenues 60,152,233 34,158,918 73,451,212 (13,298,979) Expenditures: Community and Economic Development 20,128,930 6,724,042 75,141,537 55,012,607 Total expenditures 20,128,930 6,724,042 75,141,537 55,012,607 Revenues over (under) expenditures 40,023,303 27,434,876 (1,690,325) (68,311,586) Other financing sources (uses): Transfers out (38,493,191) (19,890,111) (38,493,191) — Total other financing sources: (38,493,191) $ (19,890,111) $ (38,493,191) $ — Net change in fund balance 1,530,112 Fund Balance July 1, 2022 5,042,424 Fund Balance June 30, 2023 $ 6,572,536 159 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE STREET LIGHTING Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Interest $ 926 $ — $ — $ 926 Total revenues 926 — — 926 Revenues over expenditures 926 $ — $ — $ 926 Net change in fund balance 926 Fund Balance July 1, 2022 599,046 Fund Balance June 30, 2023 $ 599,972 160 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DEMOLITION, WEED AND FORFEITURE Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Fines and forfeitures $ 36,174 $ — $ — $ 36,174 Interest 40,999 — — 40,999 Charges for services 212,843 — — 212,843 Miscellaneous 62,967 — — 62,967 Total revenues 352,983 — — 352,983 Expenditures: Community and Economic Development 325,182 300,000 1,202,827 877,645 Total expenditures 325,182 300,000 1,202,827 877,645 Revenues over (under) expenditures 27,801 (300,000) (1,202,827) 1,230,628 Other financing sources: Proceeds from sale of property 14,132 — — 14,132 Transfers in 300,000 300,000 350,000 (50,000) Total other financing sources: 314,132 $ 300,000 $ 350,000 $ (35,868) Net change in fund balance 341,933 Fund Balance July 1, 2022 1,011,210 Fund Balance June 30, 2023 $ 1,353,143 161 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE EMERGENCY 911 DISPATCH Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Sales, use and excise taxes $ 5,001,229 $ 3,850,000 $ 3,850,000 $ 1,151,229 Interest 215,780 75,000 75,000 140,780 Total revenues 5,217,009 3,925,000 3,925,000 1,292,009 Revenues over expenditures 5,217,009 3,925,000 3,925,000 1,292,009 Other financing uses: Transfers out (3,800,385) (3,800,385) (3,800,385) — Total other financing uses: (3,800,385) $ (3,800,385) $ (3,800,385) $ — Net change in fund balance 1,416,624 Fund Balance July 1, 2022 5,256,642 Fund Balance June 30, 2023 $ 6,673,266 162 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SALT LAKE CITY DONATION FUND Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Interest $ 85,348 $ — $ 44,668 $ 40,680 Intergovernmental 1,611,855 1,646,800 1,646,800 (34,945) Charges for services 573,277 508,850 508,850 64,427 Rental and other income 431,910 201,100 201,100 230,810 Miscellaneous 1,165,186 563,500 1,712,493 (547,307) Total revenues 3,867,576 2,920,250 4,113,911 (246,335) Expenditures: Fire 66,140 — — (66,140) Police 51,666 — — (51,666) Public Services 2,365,514 2,870,250 5,473,075 3,107,561 Total expenditures 2,483,320 2,870,250 5,473,075 2,989,755 Revenues over (under) expenditures 1,384,256 50,000 (1,359,164) 2,743,420 Other financing sources: Transfers out (20,000) — (20,000) — Total other financing sources: (20,000) $ — $ (20,000) $ — Net change in fund balance 1,364,256 Fund Balance July 1, 2022 2,474,601 Fund Balance June 30, 2023 $ 3,838,857 163 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SALT LAKE CITY TRANSPORTATION FUND Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Sales tax $ 8,493,482 $ 9,600,000 $ 9,600,000 $ (1,106,518) Total revenues 8,493,482 9,600,000 9,600,000 (1,106,518) Expenditures: Transportation 90,636 9,458,748 9,458,748 (9,368,112) Total expenditures 90,636 9,458,748 9,458,748 (9,368,112) Revenues over (under) expenditures 8,402,846 141,252 141,252 8,261,594 Other financing sources: Transfers out (9,458,748) — — (9,458,748) Total other financing sources: (9,458,748) $ — $ — $ (9,458,748) Net change in fund balance (1,055,902) Fund Balance July 1, 2022 7,982,959 Fund Balance June 30, 2023 $ 6,927,057 164 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DEA METRO NARCOTIC TASK FORCE FUND Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Miscellaneous $ 36,852 $ 1,762,560 $ 1,762,560 $ (1,725,708) Total revenues 36,852 1,762,560 1,762,560 (1,725,708) Expenditures: Police 393,531 1,762,560 1,762,560 (1,369,029) Total expenditures 393,531 1,762,560 1,762,560 (1,369,029) Revenues over (under) expenditures (356,679) $ — $ — $ (356,679) Net change in fund balance (356,679) Fund Balance July 1, 2022 1,394,040 Fund Balance June 30, 2023 $ 1,037,361 165 SALT LAKE CITY CORPORATION COMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUND Year ended June 30, 2023 Special Improvement ASSETS Cash and cash equivalents Unrestricted $ 168,217 Receivables: Accounts 139,417 Other 86,790 Total assets $ 394,424 LIABILITIES Other liabilities $ 226,207 Total liabilities 226,207 FUND BALANCE Committed 168,217 Total fund balance 168,217 Total liabilities and fund balance $ 394,424 166 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUND Year ended June 30, 2023 Special Improvement Revenues: Assessments $ 13,051 Interest 15,653 Total revenues 28,704 Expenditures: Finance Debt service: Operating and maintenance 83 Total expenditures 83 Net change in fund balance 28,621 Fund Balance July 1, 2022 139,596 Fund Balance June 30, 2023 $ 168,217 167 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SPECIAL IMPROVEMENT FUND Year ended June 30, 2023 Actual (GAAP basis) Budgeted Amounts Original Budget Final Budget Variance Revenues: Assessments $ 13,051 $ 3,000 $ 3,000 $ 10,051 Interest 15,653 — — 15,653 Total revenues 28,704 3,000 3,000 25,704 Expenditures: Operating and maintenance 83 1,200 1,200 1,117 Administrative Services — 1,800 1,800 1,800 Total expenditures 83 3,000 3,000 2,917 Revenues over (under) expenditures 28,621 $ — $ — $ 28,621 Net change in fund balance 28,621 Fund Balance July 1, 2022 139,596 Fund Balance June 30, 2023 $ 168,217 168 Major Governmental Funds Budgetary Comparison Schedule 169 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE CAPITAL PROJECTS FUND Year ended June 30, 2023 Actual (GAAP basis) Budgeted Amounts Original Budget Final Budget Variance Revenues: Sales, use and excise taxes $ 1,617,217 $ 8,000,000 $ 1,617,217 $ — Permits 13,043,797 3,360,193 —13,043,797 Interest 5,262,888 —606,328 4,656,560 Intergovernmental 7,415,253 3,870,505 11,604,637 (4,189,384) Charges for Services 600,000 —600,000 — Rental and other income 181,591 —154,000 27,591 Miscellaneous 9,936,863 222,554 10,383,216 (446,353) Total revenues 38,057,609 15,453,252 24,965,397 13,092,211 Expenditures: Capital improvements 47,211,498 35,311,882 298,075,516 250,864,018 Total expenditures 47,211,498 35,311,882 298,075,516 250,864,018 Revenues under expenditures (9,153,889)(19,858,630)(273,110,118)(237,771,807) Other financing sources (uses): Proceeds from bond issuance 89,956,695 —89,953,000 3,695 Proceeds from sale of property 23,115 ——23,115 Debt Service: Transfers in 39,637,805 20,007,135 42,117,368 (2,479,563) Transfers out (7,884,341)(148,505)(7,348,505)(535,836) Total other financing sources (uses):121,733,274 $ 19,858,630 $ 124,721,863 $ (2,988,589) Net Change in Fund Balance 112,579,385 Fund Balance July 1, 2022 145,000,880 Fund Balance June 30, 2023 $ 257,580,265 170 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE OTHER IMPROVEMENT FUND Year ended June 30, 2023 Budgeted Amounts Actual (GAAP basis)Original Final Variance Revenues: Property taxes $ 17,368,652 $ 17,368,652 $ 17,368,652 $ — Sales, use and excise taxes 1,100,000 — — 1,100,000 Intergovernmental 5,447,065 2,187,367 2,187,367 3,259,698 Interest 159,607 — — 159,607 Rental and other income 318,606 318,608 318,608 (2) Total revenues 24,393,930 19,874,627 19,874,627 4,519,303 Expenditures: Administrative Services — 7,500 7,500 7,500 Debt service: Principal 19,273,120 22,592,200 20,177,046 903,926 Interest 10,070,858 10,058,858 9,857,243 (213,615) Total expenditures 29,343,978 32,658,558 30,041,789 697,811 Revenues under expenditures (4,950,048) (12,783,931) (10,167,162) 3,821,492 Other financing sources: Refunding bonds issued 576,109 — 579,804 (3,695) Transfers in 9,006,630 12,163,362 8,966,789 39,841 Total other financing sources 9,582,739 12,163,362 9,546,593 36,146 Other financing uses: Transfers out (1,000,000) (1,000,000) (1,000,000) — Total other financing uses (1,000,000) $ (1,000,000) $ (1,000,000) $ — Net change in fund balance 3,632,691 Fund Balance July 1, 2022 9,816,669 Fund Balance June 30, 2023 $ 13,449,360 171 This page intentionally left blank 172 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. 173 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2023 Street Lighting Utility ASSETS Current assets: Cash and cash equivalents Unrestricted $ 5,674,529 Restricted 80,661 Receivables: Accounts, less allowance for doubtful accounts of $6,956, $28,302, $0, $0 respectively, totaling $35,258. 355,405 Current portion of loans receivable — Prepaid expenses 2,055 Inventory of supplies — Total current assets 6,112,650 Property and equipment, at cost: Land and water rights — Buildings — Improvements other than buildings 13,156,875 Machinery and equipment — Construction in progress — Accumulated depreciation (4,635,130) Net property and equipment 8,521,745 Loans and other long-term receivables, less allowance for doubtful accounts of $0, $0, $351,000, $0, respectively, totaling $351,000. — Land and buildings held for resale — Investment in joint venture — Total noncurrent assets 8,521,745 Total assets 14,634,395 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows - Pension 32,971 Total Deferred Outflows 32,971 Total assets and deferred outflows of resources $ 14,667,366 174 Refuse Collection Housing & Loan Golf Total $ 7,404,359 $ 31,353,806 $ 11,253,336 $ 55,686,030 1,858,349 — — 1,939,010 1,209,911 — — 1,565,316 — 2,224,983 — 2,224,983 61,500 — 177,058 240,613 — — 283,188 283,188 10,534,119 33,578,789 11,713,582 61,939,140 — — 5,831,658 5,831,658 — — 4,509,301 4,509,301 — — 17,893,683 31,050,558 21,470,913 — 3,354,186 24,825,099 232,156 — — 232,156 (13,040,683) — (15,060,641) (32,736,454) 8,662,386 — 16,528,187 33,712,318 — 26,567,100 — 26,567,100 — 2,687,371 — 2,687,371 23,235,204 — — 23,235,204 31,897,590 29,254,471 16,528,187 86,201,993 42,431,709 62,833,260 28,241,769 148,141,133 647,479 — 456,727 1,137,177 647,479 — 456,727 1,137,177 $ 43,079,188 $ 62,833,260 $ 28,698,496 $ 149,278,310 175 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2023 Street Lighting Utility LIABILITIES Current liabilities: Accounts payable $ 420,532 Accrued liabilities 4,235 Accrued interest 37,595 Current deposits and advance rentals 31,382 Current portion of long-term compensated absences 2,253 Current portion of long-term debt 103,360 Total current liabilities 599,357 Noncurrent liabilties: Deposits, advance rentals and long-term accruals — Bonds, mortgages, and notes payable 2,055,922 Long-term compensated absences liability 18,668 Net pension liability 14,466 Total noncurrent liabilities 2,089,056 Total liabilities 2,688,413 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Pension 599 Total deferred inflows 599 NET POSITION Invested in capital assets 6,405,529 Unrestricted 5,572,825 Total net position 11,978,354 Total liabilities, deferred inflows of resources and net position $ 14,667,366 176 Refuse Collection Housing & Loan Golf Total $ 290,604 $ 227,905 $ 351,744 $ 1,290,785 122,496 —96,144 222,875 ———37,595 —628,034 —659,416 64,766 —173,923 240,942 1,746,491 689,207 —2,539,058 2,224,357 1,545,146 621,811 4,990,671 102,012 —932,152 1,034,164 3,084,545 2,764,885 4,785,705 12,691,057 365,332 —349,761 733,761 313,138 —247,577 575,181 3,865,027 2,764,885 6,315,195 15,034,163 6,089,384 4,310,031 6,937,006 20,024,834 9,745 —5,014 15,358 9,745 —5,014 15,358 ——11,742,482 18,148,011 36,980,059 58,523,229 10,013,994 111,090,107 36,980,059 58,523,229 21,756,476 129,238,118 $ 43,079,188 $ 62,833,260 $ 28,698,496 $ 149,278,310 177 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2023 Street Lighting Utility Sales and charges for services $ 4,288,019 Rental and other 1,111 Total operating revenue 4,289,130 Personnel services 213,646 Operating and maintenance — Charges and services 4,055,718 Depreciation and amortization 707,539 Total operating expenses 4,976,903 Operating income/(loss) (687,773) Interest income 171,632 Interest expense (78,204) Equity in joint venture income — Gain on disposition of property and equipment — Total nonoperating revenues 93,428 Grants and other contributions (36,000) Total capital contributions (36,000) Income/(loss) before transfers (630,345) Transfers in — Transfers out — Change in net position (630,345) Net Position July 1, 2022 12,608,699 Net Position June 30, 2023 $ 11,978,354 178 Refuse Collection Housing & Loan Golf Total $ 15,249,801 $ — $ 10,593,179 $ 30,130,999 209,899 411,008 55,885 677,903 15,459,700 411,008 10,649,064 30,808,902 5,654,765 — 4,409,972 10,278,383 427,299 7,261 1,658,852 2,093,412 7,760,911 661,537 3,201,015 15,679,181 1,968,540 — 760,237 3,436,316 15,811,515 668,798 10,030,076 31,487,292 (351,815) (257,790) 618,988 (678,390) 196,274 1,504,776 267,750 2,140,432 (59,677) (138,037) (135,298) (411,216) 981,224 — — 981,224 325,691 — 560,900 886,591 1,443,512 1,366,739 693,352 3,597,031 — — — (36,000) — — — (36,000) 1,091,697 1,108,949 1,312,340 2,882,641 1,762,126 1,019,189 2,078,374 4,859,689 (272,427) (241,762) — (514,189) 2,581,396 1,886,376 3,390,714 7,228,141 34,398,662 56,636,853 18,365,762 122,009,976 $ 36,980,059 $ 58,523,229 $ 21,756,476 $ 129,238,118 179 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS NONMAJOR PROPRIETARY FUNDS June 30, 2023 Street Lighting Utility Cash Flows from Operating Activities Receipts from customers and users $ 4,362,693 Payments to internal fund services (65,375) Payments to suppliers (3,893,254) Payments to employees (270,322) Net cash provided by operating activities 133,742 Cash flows from noncapital and related financing activities: Transfers in — Transfers out — Net cash provided by (used in) noncapital and related financing activities — Cash flows from capital and related financing activities: Proceeds from issuance of debt (net of discount and issuance costs) — Proceeds from sale of equipment — Contributions for aid in construction (36,000) Payment on long-term obligations, net of capitalized interest (193,579) Payments for purchase and construction, including capitalized interest (199,606) Net cash provided by capital and related financing activities (429,185) Cash flows from investing activities: Interest received on investments and loans 171,632 Net cash provided by investing activities 171,632 Net increase (decrease) in cash and cash equivalents (123,811) Cash and cash equivalents at beginning of year 5,879,001 Cash and cash equivalents at end of year $ 5,755,190 Cash and cash equivalent components: Unrestricted $ 5,674,529 Restricted 80,661 Cash and cash equivalents at end of year $ 5,755,190 Cash flows from operating activities - Operating income (loss)$ (687,773) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 707,539 Increase (decrease) due to changes in: Accounts receivable 86,078 Other current assets 300 Accounts payable 97,086 Deferred outflows — Accrued liabilities affecting operating activities (52,713) Other liabilities (12,512) Pension assets — Pension liability 53,791 Deferred inflows (58,054) Compensation liability — Total adjustments 821,515 Net cash provided by operating activities $ 133,742 Noncash transactions affecting financial position: 180 Refuse Collection Housing & Loan Golf Total $ 15,375,147 $ 4,006,743 $ 10,916,407 $ 34,660,990 — — — (65,375) (8,188,210) (4,151,313) (4,909,243) (21,142,020) (5,780,951) — (4,575,112) (10,626,385) 1,405,986 (144,570) 1,432,052 2,827,210 1,762,126 1,019,189 2,078,374 4,859,689 (272,427) (241,762) — (514,189) 1,489,699 777,427 2,078,374 4,345,500 2,768,457 — 2,768,457 545,027 — 560,900 1,105,927 — — — (36,000) (1,414,223) (852,934) (512,767) (2,973,503) (2,405,990) — (604,663) (3,210,259) (506,728) (852,934) (556,530) (2,345,378) 196,274 1,504,776 267,750 2,140,432 196,274 1,504,776 267,750 2,140,432 2,585,231 1,284,699 3,221,646 6,967,764 6,677,477 30,069,107 8,031,690 50,657,275 9,262,708 31,353,806 11,253,336 57,625,040 $ 7,404,359 $ 31,353,806 $ 11,253,336 $ 55,686,030 1,858,349 — — 1,939,010 $ 9,262,708 $ 31,353,806 $ 11,253,336 $ 57,625,040 $ (351,815) $ (257,790) $ 618,988 $ (678,390) 1,968,540 — 760,237 3,436,316 108,356 25,683 — 220,117 4,596 327,632 (107,093) 225,435 (161,716) (240,095) 57,717 (247,008) (207,025) — (124,303) (331,328) 30,761 — 286,867 264,915 (31,193) — — (43,705) 720,977 — 786,701 1,507,678 313,138 — 247,577 614,506 (1,007,962) — (1,077,242) (2,143,258) 19,329 — (17,397) 1,932 1,757,801 113,220 813,064 3,505,600 $ 1,405,986 $ (144,570) $ 1,432,052 $ 2,827,210 181 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE STREET LIGHTING UTILITY FUND Year ended June 30, 2023 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 $ 4,289,130 $ 4,289,130 $ 4,174,722 $ 4,174,722 $ 114,408 Interest income 171,632 171,292 22,500 22,500 148,792 Contributions and nonoperating grants (36,000) (36,000) 25,000 25,000 (61,000) Transfers in — — 80,000 80,000 (80,000) Total revenues and other sources 4,424,762 4,424,422 4,302,222 4,302,222 122,200 Expenses and other uses: Personnel services 213,647 271,490 392,792 392,792 121,302 Operating and maintenance — — 6,994 6,994 6,994 Charges and services 4,055,717 4,054,195 2,924,454 2,929,725 (1,124,470) Depreciation and amortization 707,539 — — — — Expenses before debt service and capital outlay 4,976,903 4,325,685 3,324,240 3,329,511 (996,174) Debt Service Principal — 98,430 100,485 100,485 2,055 Interest 78,204 93,099 93,100 93,100 1 Infrastructure — 152,292 2,240,000 2,256,415 2,104,123 Total expenses and other uses 5,055,107 4,669,506 5,757,825 5,779,511 1,110,005 Change in net position $ (630,345) $ (245,084) $ (1,455,603) $ (1,477,289) $ 1,232,205 182 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE REFUSE COLLECTION FUND Year ended June 30, 2023 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Refuse collection fees $ 15,249,801 $ 15,249,801 $ 15,533,746 $ 15,533,746 $ (283,945) Fixed asset disposition proceeds — 545,027 74,000 74,000 471,027 Gain on fixed asset disposition 325,691 — — — — Rental and other 209,899 — — — — Proceeds from debt — — 4,816,800 4,816,800 (4,816,800) Interest income 196,274 196,274 36,432 36,432 159,842 Equity in joint venture income 981,224 981,224 — — 981,224 Transfer in 1,762,126 1,762,126 997,126 997,126 765,000 Total revenues and other sources 18,725,015 18,734,452 21,458,104 21,458,104 (2,723,652) Expenses and other uses: Personnel services 5,654,765 5,885,779 6,029,059 6,029,059 143,280 Operating and maintenance 427,299 427,299 278,599 479,599 52,300 Charges and services 7,760,911 7,745,947 10,052,438 9,851,438 2,105,491 Depreciation 1,968,540 — — — — Transfers out 272,427 272,427 275,000 275,000 2,573 Total expenses before debt service and capital outlay 16,083,942 14,331,452 16,635,096 16,635,096 2,303,644 Debt service: Principal — 1,850,728 2,531,546 2,531,546 680,818 Interest 59,677 59,677 47,325 47,325 (12,352) Capital outlay - purchase of equipment — 2,405,990 5,738,704 8,774,404 6,368,414 Total expenses and other uses 16,143,619 18,647,847 24,952,671 27,988,371 9,340,524 Change in net position $ 2,581,396 $ 86,605 $ (3,494,567) $ (6,530,267) $ 6,616,872 183 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE HOUSING LOANS FUND Year ended June 30, 2023 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 $ 411,008 $ 1,201,737 $ 15,166,000 $ 15,459,793 $ (14,258,056) Property disposition proceeds — — 200,000 200,000 (200,000) Interest income 1,504,776 1,504,776 851,000 851,000 653,776 Transfers in 1,019,189 1,019,189 — 924,856 94,333 Total revenues and other sources 2,934,973 3,725,702 16,217,000 17,435,649 (13,709,947) Expenses and other uses: Charges and services 661,537 682,228 24,629,254 26,932,093 26,249,865 Operating and maintenance 7,261 7,261 — — (7,261) Transfers out 241,762 241,762 — 100,000 (141,762) Expenses before debt service and capital outlay 910,560 931,251 24,629,254 27,032,093 26,100,842 Debt service: Principal — 714,897 960,000 960,000 245,103 Interest 138,037 138,037 190,000 190,000 51,963 Total expenses and other uses 1,048,597 1,784,185 25,779,254 28,182,093 26,397,908 Change in net position $ 1,886,376 $ 1,941,517 $ (9,562,254) $ (10,746,444) $ 12,687,961 184 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE GOLF FUND Year ended June 30, 2023 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Admissions and fees $ 7,376,699 $ 7,376,699 $ 6,368,182 $ 6,368,182 $ 1,008,517 Equipment and facility rental 2,308,313 2,308,313 2,245,887 2,245,887 62,426 Retail sales and concessions 959,417 959,417 882,258 882,258 77,159 Interest income 267,750 267,750 — — 267,750 Fixed asset disposition proceeds 560,900 560,900 — — 560,900 Other revenue 4,635 4,635 11,675 11,675 (7,040) Transfers in 2,078,374 2,078,374 2,052,674 2,078,374 — Total revenues and other sources 13,556,088 13,556,088 11,560,676 11,586,376 1,969,712 Expenses and other uses: Personnel services 4,409,972 4,887,900 4,606,093 4,652,893 (235,007) Operating and maintenance 1,658,852 1,527,464 1,474,818 1,574,843 47,379 Charges and services 3,201,015 3,201,015 3,225,867 3,156,742 (44,273) Depreciation 760,237 — — — — Total expenses before debt service and capital outlay 10,030,076 9,616,379 9,306,778 9,384,478 (231,901) Debt Service: Principal — 382,391 358,725 377,168 (5,223) Interest 135,298 135,298 154,011 135,568 270 Capital outlay-purchase of equipment — 373,306 4,906,502 5,472,177 5,098,871 Total expenses and other uses 10,165,374 10,507,374 14,726,016 15,369,391 4,862,017 Change in net position $ 3,390,714 $ 3,048,714 $ (3,165,340) $ (3,783,015) $ 6,831,729 185 Major Enterprise Funds Budgetary Comparison Schedule 186 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE DEPARTMENT OF AIRPORTS FUND Year ended June 30, 2023 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Airfields $ 148,356,337 $ 148,356,337 $ 151,979,800 $ 151,979,800 $ (3,623,463) Terminals 14,970,365 14,970,365 26,985,100 26,985,100 (12,014,735) Landside 103,903,250 103,903,250 94,900,800 94,900,800 9,002,450 Lease Revenue 11,363,674 11,363,674 10,724,700 10,724,700 638,974 General aviation 4,128,025 4,128,025 3,304,300 3,304,300 823,725 State aviation tax 3,007,521 3,007,521 3,224,300 3,224,300 (216,779) Other revenue 11,442,091 11,442,091 4,350,100 4,350,100 7,091,991 Equipment disposition proceeds — 98,949 — — 98,949 Interest income 30,645,109 30,645,108 2,000,000 2,000,000 28,645,108 Passenger facility charges 49,282,454 49,282,454 — — 49,282,454 Customer facility charges 15,177,082 15,177,082 — — 15,177,082 Contributions for aid in construction 62,471,709 62,471,709 4,799,500 4,799,500 57,672,209 Airline revenue sharing (13,844,449) (13,844,449) — — (13,844,449) Total revenues and other sources 440,903,168 441,002,116 302,268,600 302,268,600 138,733,516 Expenses and other uses: Personnel services 61,413,708 61,413,708 62,544,500 63,524,271 $ 2,110,563 Accrued compensated absences and other post employment benefits (2,425,095) — — — — Operating and maintenance 20,147,750 20,147,750 17,494,200 21,378,300 1,230,550 Charges and services 92,097,826 92,944,076 101,119,900 111,059,100 18,115,024 Loss on capital asset disposition 7,293 (106,242) — — 106,242 Depreciation and amortization 148,449,313 — — — — Bond Issuance costs 381,981 — 3,500,000 3,500,000 3,500,000 Transfers out — — — 150,000 150,000 Total expenses before capital outlay 320,072,776 174,399,292 184,658,600 199,611,671 25,212,379 Debt service: Interest 117,346,361 136,370,783 136,333,200 136,333,200 (37,583) Capital outlay: Land — 776,005 — — (776,005) Equipment — 7,829,447 7,760,600 7,760,600 (68,847) Construction, including multi-year projects — 458,549,887 41,813,500 729,794,200 271,244,313 Total expenses and other uses 437,419,137 777,925,414 370,565,900 1,073,499,671 295,574,257 Change in net position $ 3,484,031 $ (336,923,298) $ (68,297,300) $ (771,231,071) $ (632,497,555) 187 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE WATER UTILITY FUND Year ended June 30, 2023 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 $ 87,539,609 $ 86,517,015 $ 98,266,900 $ 98,266,900 $ (11,749,885) Equipment disposition proceeds 154,203 154,203 40,500 40,500 113,703 Gain on sale of assets 247,129 ——— — Interest income 4,453,174 4,454,255 883,164 883,164 3,571,091 Contributions and non-operating grants 4,076,028 4,076,028 1,953,620 38,894,307 (34,818,279) Interfund service charge 3,177,284 3,177,284 3,171,284 4,588,844 (1,411,560) Rental and other income 1,782,223 1,782,223 1,796,230 378,670 1,403,553 Impact fees 237,942 237,942 1,784,670 1,784,670 (1,546,728) Transfers in 300,000 300,000 300,000 300,000 — Total revenues and other sources 101,967,592 100,698,950 108,196,368 145,137,055 (44,438,105) Expenses and other uses: Personnel services 24,581,383 24,581,383 30,194,025 30,194,025 5,612,642 Accrued compensated absences and other post employment benefits (837,734)———— Operating and maintenance 3,215,525 3,215,525 5,259,214 5,428,235 2,212,710 Charges and services 39,647,608 39,724,021 46,918,580 49,453,950 9,729,929 Depreciation and amortization 10,415,151 ———— Expenses before debt service and capital outlay 77,021,933 67,520,929 82,371,819 85,076,210 17,555,281 Debt service: Principal —1,005,000 1,023,750 1,023,750 18,750 Interest 5,910,225 5,910,225 5,074,303 5,074,303 (835,922) Premium (704,351)———— Land and water rights —4,750 2,150,000 2,301,050 2,296,300 Buildings —11,838,983 9,250,000 57,035,120 45,196,137 Infrastructure —26,923,439 29,639,000 49,523,456 22,600,017 Improvements other than buildings ——100,000 112,083 112,083 Equipment —2,653,622 3,143,943 4,436,979 1,783,357 Total expenses and other uses 82,227,807 115,856,948 132,752,815 204,582,951 88,726,003 Change in net position $ 19,739,785 $ (15,157,998) $ (24,556,447) $ (59,445,896) $ 44,287,898 188 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE SEWER UTILITY FUND Year ended June 30, 2023 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 $ 69,251,092 $ 69,251,092 $ 66,740,000 $ 66,740,000 $ 2,511,092 Equipment disposition proceeds 368 368 50,000 50,000 (49,632) Gain on sale of assets 47,929 — — — — Interest income 7,652,458 7,595,453 947,084 947,084 6,648,369 Impact fees 2,852,020 2,852,020 1,422,000 1,422,000 1,430,020 Debt proceeds — — 125,965,000 125,965,000 (125,965,000) Legal settlement 5,780,176 5,780,176 — — 5,780,176 Contributions and non-operating grants 953,154 953,154 1,100,823 1,100,823 (147,669) Rental and other income 1,299,902 1,299,902 406,000 406,000 893,902 Total revenues and other sources 87,837,099 87,732,165 196,630,907 196,630,907 (108,898,742) Expenses and other uses: Personnel services 11,156,646 11,156,646 13,827,671 13,827,671 2,671,025 Accrued compensated absences and other post employment benefits (344,074) — — — — Operating and maintenance 2,709,559 2,709,559 3,164,804 3,241,052 531,493 Charges and services 7,329,973 7,259,411 10,322,637 10,653,941 3,394,530 Depreciation and amortization 9,565,597 — — — — Expenses before debt service and capital outlay 30,417,701 21,125,616 27,315,112 27,722,664 6,597,048 Debt service: Principal — 5,677,820 5,756,267 5,756,267 78,447 Interest 17,739,809 19,264,465 15,653,237 15,653,237 (3,611,228) Infrastructure — 13,917,193 24,385,000 54,011,137 40,093,944 Buildings — 117,622,508 181,499,910 330,392,499 212,769,991 Improvements other than buildings — 12,968 — — (12,968) Equipment —358,908 1,305,054 1,411,963 1,053,055 Total expenses and other uses 48,157,510 177,979,478 255,914,580 434,947,767 256,968,289 Change in net position $ 39,679,589 $ (90,247,313) $ (59,283,673) $ (238,316,860) $ 148,069,547 189 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE STORMWATER UTILITY FUND Year ended June 30, 2023 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 $ 13,977,736 $ 13,977,736 $ 12,424,733 $ 12,424,733 $ 1,553,003 Gain on sale of assets 38,521 — — — — Interest income 799,872 791,596 75,000 75,000 716,596 Impact fees 1,322,941 1,322,941 625,000 625,000 697,941 Contributions and non-operating grants 1,512,868 1,512,868 352,000 352,000 1,160,868 Transfers in 2,000,000 2,000,000 —2,000,000 — Total revenues and other sources 19,651,938 19,605,141 13,476,733 15,476,733 4,128,408 Expenses and other uses: Personnel services 4,377,851 4,377,851 4,612,954 4,612,954 235,103 Accrued compensated absences and other post employment benefits (260,407)———— Operating and maintenance 313,171 313,171 306,197 306,197 (6,974) Charges and services 2,912,529 2,923,208 4,864,250 5,185,672 2,262,464 Depreciation and amortization 3,141,636 ———— Expenses before debt service and capital outlay 10,484,780 7,614,230 9,783,401 10,104,823 2,490,593 Debt service: Principal —933,750 942,834 942,834 9,084 Interest 535,591 635,465 611,487 611,487 (23,978) Land —850,000 890,000 953,064 103,064 Infrastructure —4,371,337 4,825,000 11,151,120 6,779,783 Buildings —955,041 800,000 2,145,537 1,190,496 Improvements other than buildings —51,060 100,000 302,109 251,049 Equipment —419,302 747,000 747,000 327,698 Total expenses and other uses 11,020,371 15,830,185 18,699,722 26,957,974 11,127,789 Change in net position $ 8,631,567 $ 3,774,956 $ (5,222,989) $ (11,481,241) $ 15,256,197 190 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE REDEVELOPMENT AGENCY FUND Year ended June 30, 2023 Actual on GAAP basis Budgetary Basis Actual on budgetary basis Budgeted Amounts Original Final Variance Revenues and other sources: Operating income - rental and other $ 1,153,608 $ 1,557,701 $ 1,459,035 $ 1,459,035 $ 98,666 Contributions 32,252,004 32,252,004 41,362,198 47,796,602 (15,544,598) Interest income loans reecivable 738,088 668,788 296,800 124,800 543,988 Interest income lease receivable 897,970 897,970 — — 897,970 Interest on Investments 4,995,349 4,349,711 583,000 583,000 3,766,711 Miscellaneous 332 332 — — 332 Loan principal receipts — 663,706 1,497,000 287,000 376,706 Change in equity interest in joint venture (110,709) 730,929 — — 730,929 Proceeds from sale of capital assets — — — — — Transfers in 22,627,900 22,627,900 15,633,013 20,992,047 1,635,853 Total revenues and other sources $ 62,554,542 $ 63,749,042 $ 60,831,046 $ 71,242,484 $ (7,493,443) Expenses and other uses: Personnel services $ 2,205,295 $ 2,320,519 $ 2,480,095 $ 2,526,900 $ (206,381) Accrued compensated absences and other post employment benefits 57,612 — — — — Operating and maintenance 1,529,860 1,832,140 1,359,560 1,719,560 112,580 Charges and services 18,242,418 819,220 25,503,278 42,536,902 (41,717,682) Loans made to residents and businesses 9,784,191 14,102,143 — — 14,102,143 Depreciation and amortization 650,024 — — — — Transfers out — — 22,389,611 13,474,116 (13,474,116) Total expenses before debt service 32,469,400 19,074,023 51,732,544 60,257,478 (41,183,455) Debt service: Principal — 5,815,000 6,225,000 6,295,000 (480,000) Interest and fiscal charges 2,043,494 1,562,318 3,333,457 3,263,457 (1,701,139) Capital Outlays — 10,695,343 2,009,898 97,945,719 (87,250,376) Total expenses and other uses 34,512,894 37,146,684 63,300,899 167,761,654 (130,614,971) Change in net position $ 28,041,649 $ 26,602,358 $ (2,469,853) $ (96,519,170) $ 123,121,528 191 This page intentionally left blank. 192 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. 193 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2023 Fleet Management Information Management Services ASSETS Current assets: Cash and cash equivalents Unrestricted $ 19,766,121 $ 13,653,654 Restricted 1,126,957 — Prepaid expenses 64,783 108,750 Inventory of supplies 1,102,691 — Total current assets 22,060,552 13,762,404 Noncurrent assets: Property and equipment, at cost: Land and water rights — — Buildings 948,512 60,411 Machinery and equipment 81,116,751 8,543,827 Construction in progress 6,364,728 626,915 Accumulated depreciation (64,147,868) (6,228,571) Net property and equipment 24,282,123 3,002,582 Total noncurrent assets 24,282,123 3,002,582 Total assets 46,342,675 16,764,986 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows - Pension 479,575 1,760,864 Total deferred outflows 479,575 1,760,864 Total assets and deferred outflows of resources $ 46,822,250 $ 18,525,850 LIABILITIES Current liabilities: Accounts payable $ 927,535 $ 1,377,342 Accrued liabilities 127,867 201,486 Current portion of long-term compensated absences 36,538 336,834 Current portion of long-term debt: 2,840,770 — Accrued interest, payable from unrestricted assets — — Total current liabilities 3,932,710 1,915,662 Noncurrent liabilties: Bonds, mortgages, and notes payable 4,818,481 378,036 Estimated claims liability — — Long-term compensated absences liability 283,774 1,282,253 Net pension liability 236,189 1,010,703 Total noncurrent liabilities 5,338,444 2,670,992 Total liabilities 9,271,154 4,586,654 DEFERRED INFLOWS OF RESOURCES Deferred inflows - Pension 6,922 21,035 Total deferred inflows 6,922 21,035 NET POSITION Invested in capital assets 16,622,872 2,624,546 Unrestricted 20,921,302 11,293,615 Total net position 37,544,174 13,918,161 Total liabilities, deferred inflows of resources and net position $ 46,822,250 $ 18,525,850 194 Risk Management Governmental Immunity Local Building Authority Total $ 8,760,038 $ 12,028,026 $ 55,939 $ 54,263,778 — — 2,810 1,129,767 231,131 9,750 — 414,414 — — — 1,102,691 8,991,169 12,037,776 58,749 56,910,650 — — 1,069,180 1,069,180 — — 27,661,384 28,670,307 81,154 — — 89,741,732 — — — 6,991,643 (81,154) — (3,515,252) (73,972,845) — — 25,215,312 52,500,017 — — 25,215,312 52,500,017 8,991,169 12,037,776 25,274,061 109,410,667 106,288 107,530 — 2,454,257 106,288 107,530 — 2,454,257 $ 9,097,457 $ 12,145,306 $ 25,274,061 $ 111,864,924 $ 298,830 $ 839 $ 2,800 $ 2,607,346 16,769 19,103 — 365,225 26,267 3,464 — 403,103 — — 930,000 3,770,770 — — 131,734 131,734 341,866 23,406 1,064,534 7,278,178 — — 12,854,783 18,051,300 3,507,056 7,909,240 — 11,416,296 84,531 63,795 — 1,714,353 106,184 47,547 — 1,400,623 3,697,771 8,020,582 12,854,783 32,582,572 4,039,637 8,043,987 13,919,317 39,860,749 1,228 1,929 — 31,114 1,228 1,929 — 31,114 — — — 19,247,418 5,056,592 4,099,389 11,354,744 52,725,642 5,056,592 4,099,389 11,354,744 71,973,060 $ 9,097,457 $ 12,145,306 $ 25,274,061 $ 111,864,924 195 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS Year ended June 30, 2023 Fleet Management Information Management Services Sales and charges for services $ 14,544,383 $ 27,373,915 Rental and other 25,847 512 Total operating revenue 14,570,230 27,374,427 Personnel services 4,448,200 11,791,877 Operating and maintenance 8,500,839 2,192,221 Charges and services 1,804,825 12,193,272 Depreciation and amortization 6,541,985 1,337,124 Total operating expenses 21,295,849 27,514,494 Operating income (loss) (6,725,619) (140,067) Interest income — — Interest expense (200,942) — Gain on disposition of property and equipment 143,657 6,556 Total nonoperating revenues (expenses) (57,285) 6,556 Income before transfers (6,782,904) (133,511) Transfers in 12,091,900 — Transfers out (291,434) — Change in net position 5,017,562 (133,511) Net Position July 1, 2022 32,526,613 14,051,671 Net Position June 30, 2023 $ 37,544,174 $ 13,918,161 196 Risk Management Governmental Immunity Local Building Authority Total $ 53,070,628 $ 3,775,947 $ — $ 98,764,873 200,000 2,000,000 668,575 2,894,934 53,270,628 5,775,947 668,575 101,659,807 1,291,979 987,569 — 18,519,625 11,936 718 — 10,705,714 49,164,700 3,210,707 1,275 66,374,779 — — 553,228 8,432,337 50,468,615 4,198,994 554,503 104,032,455 2,802,013 1,576,953 114,072 (2,372,648) — — 3,664 3,664 — — (497,113) (698,055) — — — 150,213 — — (493,449) (544,178) 2,802,013 1,576,953 (379,377) (2,916,826) — 500,000 1,174,025 13,765,925 — — — (291,434) 2,802,013 2,076,953 794,648 10,557,665 2,254,579 2,022,436 10,560,095 61,415,394 $ 5,056,592 $ 4,099,389 $ 11,354,744 $ 71,973,060 197 SALT LAKE CITY CORPORATION COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year ended June 30, 2023 Fleet Management Information Management Services Cash Flows from Operating Activities Receipts from internal fund services $ 14,570,229 $ 27,374,427 Payments to suppliers (9,912,261) (14,037,363) Payments to employees (4,598,431) (11,986,619) Net cash provided by (used in) operating activities 59,537 1,350,445 Cash flows from noncapital and related financing activities: Transfers in 12,091,900 — Transfers out (291,434) — Net cash provided by (used in) noncapital and related financing activities 11,800,466 — Cash flows from capital and related financing activities: Proceeds from issuance of debt (net of discount and issuance costs) 920,972 — Proceeds from sale of equipment 301,708 14,803 Payment on long-term obligations (3,601,454) (661,989) Payments for purchase and construction (8,615,060) (771,024) Net cash provided by (used in) capital and related financing activities (10,993,834) (1,418,210) Cash flows from investing activities: Interest received on investments and loans — — Net cash provided by investing activities — — Net increase (decrease) in cash and cash equivalents 866,169 (67,765) Cash and cash equivalents at beginning of year 20,026,909 13,721,419 Cash and cash equivalents at end of year 20,893,078 13,653,654 Cash and cash equivalent components: Unrestricted 19,766,121 13,653,654 Restricted 1,126,957 — Cash and cash equivalents at end of year 20,893,078 13,653,654 Cash flows from operating activities - Operating income (loss) (6,725,619) (140,067) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 6,541,985 1,337,124 Increase (decrease) due to changes in: Other current assets (93,705) (12,761) Accounts payable 487,107 348,130 Deferred outflows (104,216) (648,086) Accrued liabilities affecting operating activities (15,818) 56,910 Other liabilities — — Pension assets 689,218 2,947,795 Pension liability 236,189 1,010,703 Deferred inflows (957,252) (3,686,640) Compensation liability 1,648 137,337 Total adjustments 6,785,156 1,490,512 Net cash provided by (used in) operating activities $ 59,537 $ 1,350,445 198 Risk Management Governmental Immunity Local Building Authority Total $ 53,270,628 $ 5,775,947 $ 668,575 $ 101,659,806 (49,069,907) (3,849,568) 1,525 (76,867,574) (1,242,522) (1,041,634) — (18,869,206) 2,958,199 884,745 670,100 5,923,026 — 500,000 1,174,025 13,765,925 — — — (291,434) — 500,000 1,174,025 13,474,491 — — — 920,972 — — — 316,511 — — (1,842,825) (6,106,268) — — — (9,386,084) — — (1,842,825) (14,254,869) — — 3,664 3,664 — — 3,664 3,664 2,958,199 1,384,745 4,964 5,146,311 5,801,839 10,643,282 53,785 50,247,234 8,760,038 12,028,026 58,749 55,393,545 8,760,038 12,028,026 55,939 54,263,778 — — 2,810 1,129,767 8,760,038 12,028,026 58,749 55,393,545 2,802,013 1,576,953 114,072 (2,372,648) — — 553,228 8,432,337 27,494 — — (78,972) 106,729 (7,903) 2,800 936,863 (38,306) (19,457) — (810,065) 3,374 5,045 — 49,511 (68,804) (630,990) — (699,794) 580,299 92,951 — 4,310,263 106,184 47,547 — 1,400,623 (554,076) (135,236) — (5,333,204) (6,708) (44,165) — 88,112 156,186 (692,209) 556,028 8,295,673 $ 2,958,199 $ 884,745 $ 670,100 $ 5,923,026 199 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE FLEET MANAGEMENT FUND Year ended June 30, 2023 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Charges for maintenance $ 14,544,383 $ 14,544,383 $ 15,805,169 $ 15,805,169 $ (1,260,786) Other revenue 25,847 25,847 958,903 958,903 (933,056) Proceeds from note — — 1,000,000 1,000,000 (1,000,000) Proceeds from sale of equipment 143,657 143,657 335,465 335,465 (191,808) Transfers in 12,091,900 12,091,900 10,727,455 12,127,355 (35,455) Total revenues and other sources 26,805,787 26,805,787 28,826,992 30,226,892 (3,421,105) Expenses and other uses: Personnel services 4,448,200 4,448,200 4,675,074 4,675,074 (226,874) Operating and maintenance 8,500,839 8,500,839 9,100,089 9,153,089 (652,250) Charges and services 1,804,825 1,804,825 2,229,774 2,345,274 (540,449) Depreciation 6,541,985 — — — — Transfers out 291,434 291,434 295,361 295,361 (3,927) Total expenses before debt service and capital outlay 21,587,283 15,045,298 16,300,298 16,468,798 (1,423,500) Debt service: Principal — 3,359,335 3,459,903 3,459,903 (100,568) Interest 200,942 — 283,786 283,786 (283,786) Capital outlay — — 10,382,044 25,153,404 (25,153,404) Total expenses and other uses 21,788,225 18,404,633 30,426,031 45,365,891 (26,961,258) Change in net position $ 5,017,562 $ 8,401,154 $ (1,599,039) $ (15,138,999) $ 23,540,153 200 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE INFORMATION MANAGEMENT FUND Year ended June 30, 2023 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenue: Charges for services $ 27,373,915 $ 27,373,915 $ 30,332,167 $ 35,838,772 $ 8,464,857 Gain on sale of equipment 6,556 — — — — Proceeds from sale of equipment — 7,514 — — (7,514) Miscellaneous revenue 512 512 — — (512) Transfers in — — — 220,000 220,000 Total revenues and other sources 27,380,983 27,381,941 30,332,167 36,058,772 8,676,831 Expenses and other uses: Personnel services 11,791,877 11,791,877 13,369,733 13,349,733 1,557,856 Operating and maintenance 2,192,221 2,192,221 766,559 1,296,689 (895,532) Charges and services 12,193,272 12,193,272 11,992,609 13,276,896 1,083,624 Depreciation 1,337,124 — — — — Total expenses before capital outlay 27,514,494 26,177,370 26,128,901 27,923,318 1,745,948 Debt Service: Principal — 661,989 — — (661,989) Capital outlay — 679,489 4,403,266 8,490,482 7,810,993 Total expenses and other uses 27,514,494 27,518,848 30,532,167 36,413,801 8,894,952 Change in net position $ (133,510) $ (136,907) $ (200,000) $ (355,029) $ (218,122) 201 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE RISK MANAGEMENT FUND Year ended June 30, 2023 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Charges for services $ 53,070,628 $ 53,070,628 $ 53,229,000 $ 53,229,000 $ 158,372 Miscellaneous 200,000 200,000 200,000 200,000 — Transfers in — — 1,250,000 1,250,000 1,250,000 Total revenues and other sources 53,270,628 53,270,628 54,679,000 54,679,000 1,408,372 Expenses and other uses: Personnel services 1,291,979 1,291,979 971,189 971,189 (320,790) Operating and maintenance 11,936 11,936 27,385 27,385 15,449 Premiums and other charges for services 49,164,700 49,164,700 53,680,426 53,680,426 4,515,726 Transfers out — 1,326,627 — — (1,326,627) Total expenses 50,468,615 51,795,242 54,679,000 54,679,000 2,883,758 Change in net position $ 2,802,013 $ 1,475,386 $ — $ — $ 4,292,130 202 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE GOVERNMENTAL IMMUNITY FUND Year ended June 30, 2023 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Interfund service charges $ 2,000,000 $ 2,000,000 $ 20,000 $ 2,020,000 $ 20,000 Property taxes 3,775,947 — 3,944,523 3,944,523 3,944,523 Transfers in 500,000 500,000 — 500,000 — Total revenues 6,275,947 2,500,000 3,964,523 6,464,523 3,964,523 Expenses: Personnel services 987,569 987,569 1,391,344 1,391,344 403,775 Operating and maintenance 718 718 10,000 10,000 9,282 Claims, charges and services 3,210,707 3,210,707 1,768,423 4,268,423 1,057,716 Total expenses 4,198,994 4,198,994 3,169,767 5,669,767 1,470,773 Change in net position $ 2,076,953 $ (1,698,994) $ 794,756 $ 794,756 $ 2,493,750 203 SALT LAKE CITY CORPORATION BUDGET COMPARISON SCHEDULE LOCAL BUILDING AUTHORITY FUND Year ended June 30, 2023 Budgetary Basis Actual on GAAP basis Actual on budgetary basis Budgeted Amounts VarianceOriginalFinal Revenues and other sources: Other income $ 668,575 $ 668,575 $ 681,300 $ 681,300 $ 12,725 Interest income 3,664 3,664 — — (3,664) Transfers in 1,174,025 1,174,025 1,174,025 1,174,025 — Total revenues and other sources 1,846,264 1,846,264 1,855,325 1,855,325 9,061 Expenses and other uses: Charges and services 1,275 1,275 5,000 5,000 3,725 Depreciation and amortization 553,228 — — — — Total expenses before debt service 554,503 1,275 5,000 5,000 3,725 Debt service: Principal — 1,120,000 1,210,000 1,210,000 90,000 Interest 497,113 628,847 640,325 640,325 11,478 Total expenses and other uses 1,051,616 1,750,122 1,855,325 1,855,325 105,203 Change in net position $ 794,648 $ 96,142 $ — $ — $ (96,142) 204 This page intentionally left blank. 205 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 207 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 216 These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. Debt Capacity 220 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 225 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 226 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. 206 SALT LAKE CITY CORPORATION NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Governmental Activities Net Investment in capital assets $ 529,134 $ 504,457 $ 601,185 $ 621,194 $ 642,013 $ 668,907 $ 563,203 $ 579,048 $ 639,083 $ 692,661 Restricted 32,670 73,564 61,065 45,981 57,371 58,630 83,296 102,077 101,247 194,727 Unrestricted 2,733 (38,242) (96,707) (79,375) (102,160) (86,548) 43,293 98,416 190,799 182,509 Total governmental activities net position $ 564,537 $ 539,779 $ 565,543 $ 587,800 $ 597,224 $ 640,990 $ 640,990 $ 779,542 $ 931,128 $ 1,069,897 Business-type activities Net investment in capital assets $ 1,338,531 $ 1,479,894 $ 1,583,508 $ 1,523,569 $ 1,931,014 $ 1,902,167 $ 2,048,313 $ 2,186,042 $ 2,186,081 $ 2,168,322 Restricted 278,358 333,118 260,356 529,457 290,422 441,593 350,691 308,680 449,725 375,410 Unrestricted 433,252 315,364 373,693 267,204 81,255 70,532 106,912 71,683 (19,978) 179,977 Total business-type activities net position $ 2,050,142 $ 2,128,376 $ 2,217,557 $ 2,320,229 $ 2,302,690 $ 2,414,292 $ 2,414,292 $ 2,566,405 $ 2,615,828 $ 2,723,709 Primary Government Net investment in capital assets $ 1,867,665 $ 1,984,351 $ 2,184,693 $ 2,144,762 $ 2,573,027 $ 2,571,075 $ 2,611,516 $ 2,765,090 $ 2,825,163 $ 2,860,983 Restricted 311,028 406,682 321,422 575,438 347,792 500,223 433,987 410,758 550,972 570,136 Unrestricted 435,986 277,122 276,986 187,829 (20,905) (16,017) 150,205 170,099 170,821 362,486 Total primary government net position $ 2,614,679 $ 2,668,155 $ 2,783,101 $ 2,908,029 $ 2,899,914 $ 3,055,282 $ 3,195,707 $ 3,345,947 $ 3,546,956 $ 3,793,605 207 SALT LAKE CITY CORPORATION CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 EXPENSES Governmental Activities: General Government $ 26,038 $ 8,051 $ 6,740 $ 14,006 $ 10,220 $ 29,168 $ 9,477 $ 14,976 $ 17,266 $ 41,232 City Council 2,345 2,122 3,126 3,565 3,554 3,941 4,116 3,646 3,785 4,333 Mayor 3,013 2,576 3,400 3,773 3,904 4,190 4,001 4,617 3,953 5,569 City Attorney 6,473 5,274 7,008 7,088 7,441 8,232 10,149 7,290 8,210 9,747 Finance 10,861 7,579 9,912 10,223 10,941 11,334 10,523 9,617 9,452 11,052 Justice Court 3,731 3,255 4,237 4,402 4,495 4,576 4,538 3,861 3,786 4,050 Human Resources 1,965 1,697 2,502 2,625 2,163 2,993 3,188 2,917 3,234 3,850 Fire 37,190 34,380 42,822 40,043 42,766 44,885 44,831 40,757 38,335 41,287 Combined Emergency Services (1) 6,991 5,220 7,143 7,121 7,448 8,201 8,293 6,360 7,424 8,600 Police 62,476 47,922 68,901 75,487 72,518 82,722 87,414 80,595 75,368 94,882 Community and Neighborhoods 31,253 29,444 36,799 37,492 36,059 36,751 43,507 59,715 62,242 64,180 Public Services 43,919 46,062 64,203 61,768 62,854 1,724 2,292 67,298 65,281 78,920 Transportation (4) — — — — — — 65,007 — — — Economic Development (2) — — — 1,261 1,677 63,852 389 367 — 8,170 Unallocated infrastructure depreciation 10,531 8,564 8,626 8,671 9,038 9,540 9,769 10,098 11,484 13,143 Interest on long-term debt 12,466 12,950 16,627 12,093 20,857 1,489 10,540 4,938 15,359 10,752 Total governmental activities expenses 259,251 215,097 282,046 289,618 295,935 313,598 318,031 315,035 331,663 399,767 Business-type activities: Airport Authority $ 145,791 $ 135,997 $ 152,432 $ 180,492 $ 198,267 $ 237,030 $ 252,664 $ 310,817 $ 404,480 $ 437,993 Water 58,335 51,497 59,268 63,454 62,761 68,035 68,071 72,582 71,131 82,228 Sewer 17,241 18,456 20,232 21,964 22,857 25,523 27,533 31,851 33,455 48,158 Storm Water 6,781 6,645 7,860 7,515 8,012 8,395 7,935 9,311 9,543 11,020 Street Lighting (1) 2,331 1,984 2,130 2,827 2,641 2,739 3,603 4,394 4,359 5,055 Refuse 11,462 11,428 12,786 13,117 13,114 13,985 14,303 14,631 15,159 15,871 Golf 8,774 5,932 7,460 8,456 8,081 8,389 7,971 8,103 8,684 10,165 Housing and Loan 1,082 1,630 959 888 2,925 1,839 3,423 1,177 28,290 807 Redevelopment Agency 12,238 29,154 37,129 37,455 27,473 28,914 31,124 32,863 37,755 34,513 Total business-type activities expenses 264,035 262,723 300,255 336,168 346,131 394,848 416,628 485,729 612,856 645,810 Total primary government expenses $ 523,286 $ 477,820 $ 582,301 $ 625,786 $ 642,066 $ 708,446 $ 734,659 $ 800,764 $ 944,519 $ 1,045,577 REVENUES Governmental Activities: Charges for Services: General Government $ 16,655 $ 18,185 $ 18,574 $ 16,973 $ 15,105 $ 25,133 $ 23,760 $ 29,164 $ 30,826 $ 30,360 City Council 94 200 198 472 483 437 418 418 422 429 Mayor 493 463 189 369 303 275 274 277 274 1,323 City Attorney 1,228 796 832 911 874 901 896 896 895 1,336 Finance 12,251 12,926 12,820 12,812 26,501 27,457 22,047 19,503 28,192 26,049 Justice Court 3,342 2,964 3,514 3,398 3,296 3,015 2,394 1,795 1,805 2,266 Human Resources 1,298 961 1,017 930 895 1,080 1,036 1,036 1,036 633 Fire 3,358 6,803 9,947 6,500 7,291 7,440 7,084 7,163 8,689 8,442 Combined Emergency Services (1) 897 417 485 468 601 657 1,038 478 816 712 Police 9,301 3,857 4,499 5,518 2,471 6,563 10,628 10,580 11,775 13,779 Community and Neighborhoods 15,034 18,062 21,630 28,385 4,154 1,797 2,025 2,133 1,204 1,146 Economic Development (2) — — — 3,151 4,363 1,916 1,648 2,107 2,202 2,784 Public Services 5,205 9,654 11,645 12,205 9,741 9,735 9,828 8,825 13,428 15,527 Operating Grants and Contributions 22,360 7,069 4,969 2,076 — 10,394 8,079 31,019 53,077 64,853 Capital Grants and Contributions 11,485 14,745 15,772 13,919 16,422 12,800 24,174 19,273 29,545 32,331 Total governmental activities program revenues $ 103,002 $ 97,101 $ 106,092 $ 108,086 $ 92,501 $ 109,599 $ 115,328 $ 134,667 $ 184,184 $ 201,972 208 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Business-type activities: Charges for Services: Airport Authority $ 180,285 $ 188,853 $ 199,451 $ 216,241 $ 224,618 $ 248,598 $ 216,065 $ 197,347 $ 398,019 $ 348,634 Water 65,432 63,275 67,388 75,115 75,940 78,023 83,899 87,003 81,725 92,355 Sewer 19,785 21,026 23,545 25,238 34,346 39,986 45,109 51,485 62,172 76,496 Storm Water 8,152 8,287 8,530 8,445 8,657 9,606 10,579 10,763 14,215 14,065 Street Lighting (1) 3,208 3,280 3,265 4,223 4,208 4,302 4,259 4,231 4,581 4,289 Refuse 10,257 12,419 12,363 15,176 12,387 12,295 11,380 11,686 15,804 16,331 Golf 7,921 8,235 7,475 6,734 7,040 7,044 7,034 10,035 12,295 11,201 Housing and Loan 1,763 421 846 1,025 2,433 595 1,132 1,091 5,459 411 Redevelopment Agency (3) 2,290 2,135 2,215 1,745 5,894 3,622 684 2,389 37,755 2,969 Capital grants and contributions (3) 54,696 67,546 53,162 57,828 45,083 44,767 73,193 140,062 37,755 105,643 Total business-type activities program revenues 353,790 375,475 378,240 411,770 420,608 448,838 453,335 516,092 669,781 672,394 Total primary government program revenues $ 456,792 $ 472,576 $ 484,332 $ 519,856 $ 513,109 $ 558,437 $ 568,663 $ 650,759 $ 853,964 $ 957,301 Net (expense)/revenue Governmental activities $ (156,248) $ (117,996) $ (175,954) $ (181,532) $ (203,434) $ (203,999) $ (202,704) $ (180,368) $ (147,479) $ (197,795) Business-type activities 89,755 112,752 77,985 75,603 74,476 53,991 36,708 30,363 56,925 27,204 Total primary government net expense $ (66,494) $ (5,244) $ (97,969) $ (105,930) $ (128,957) $ (150,009) $ (165,996) $ (150,005) $ (90,554) $ (170,591) General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes, levied for general purposes $ 94,923 $ 98,062 $ 114,685 $ 118,782 $ 119,116 $ 122,282 $ 129,951 $ 136,635 $ 136,635 $ 146,170 Franchise taxes 27,881 28,133 27,973 28,418 27,286 27,238 26,863 11,750 11,750 12,757 Sales tax 57,908 60,849 62,709 65,812 72,208 103,727 120,778 175,106 175,106 188,409 Investment earnings 1,858 1,421 1,996 2,283 3,930 6,698 3,991 (5,693) (5,693) 18,237 Transfers (44,377) 2,627 (5,645) (11,506) (9,683) (12,168) (30,078) (18,734) (18,734) (29,009) Total governmental activities 138,194 191,092 201,718 203,789 212,858 247,778 251,505 299,065 299,065 336,564 Business-type activities: Investment earnings $ 6,602 $ 4,395 $ 5,552 $ 15,563 $ (101,698) $ 45,219 $ 24,838 $ 13,558 $ 13,947 $ 51,668 Transfers 44,377 (2,627) 5,645 11,506 9,683 12,168 30,078 18,734 18,734 29,009 Total business-type activities: 50,979 1,768 11,197 27,069 (92,016) 57,387 54,916 32,292 32,681 80,677 Total primary government $ 189,173 $ 192,859 $ 212,915 $ 230,858 $ 120,842 $ 305,165 $ 306,421 $ 331,356 $ 331,746 $ 417,241 Change in Net Position Governmental activities $ (18,055) $ 73,095 $ 25,764 $ 22,257 $ 9,424 $ 43,778 $ 48,802 $ 118,697 $ 151,586 $ 138,769 Business-type activities 140,734 114,520 89,182 102,672 (17,539) 111,378 91,624 62,655 89,606 107,881 Total primary government $ 122,679 $ 187,615 $ 114,946 $ 124,929 $ (8,115) $ 155,156 $ 140,426 $ 181,351 $ 241,191 $ 246,650 (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. 209 SALT LAKE CITY CORPORATION FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Fund Non-spendable $ 3,156,500 $ 6,847,368 $ 10,936,767 $ 11,427,654 $ 10,865,289 $ 12,550,163 $ 9,302,914 $ 2,212,414 $ 2,257,746 $ 2,484,423 Restricted — — — — — — — 12,139,443 20,423,209 21,157,932 Assigned 3,789,277 6,691,500 7,098,940 7,298,041 8,731,775 15,891,696 9,899,196 — — — Unassigned 26,649,360 29,434,362 23,056,190 31,945,300 36,507,205 51,372,150 70,040,066 101,934,113 137,442,727 178,933,386 Total General Fund $ 33,595,137 $ 42,973,230 $ 41,091,897 $ 50,670,995 $ 56,104,269 $ 79,814,009 $ 89,242,176 $ 116,285,970 $ 160,123,682 $ 202,575,741 All other governmental funds Non-spendable $ 3,515,958 $ 4,046,895 $ 6,318,978 $ 7,937,221 $ — $ — $ 750 $ 69,352 $ 81,062 $ 148,087 Restricted 80,809,258 80,892,464 66,829,911 50,575,884 70,144,335 72,903,342 72,276,994 95,566,196 125,867,645 223,070,434 Committed 1,803,185 494,867 498,933 807,045 1,490,604 2,305,531 2,733,500 3,666,892 4,782,191 6,190,152 Assigned 25,222,076 31,789,906 41,019,925 43,697,149 31,773,377 31,691,183 33,833,304 37,189,480 51,290,747 72,177,798 Unassigned — — — — — — 410,203 — — — Total all other governmental funds $ 111,350,477 $ 117,224,132 $ 114,667,747 $ 103,017,299 $ 103,408,316 $ 106,900,056 $ 109,254,751 $ 136,491,920 $ 182,021,645 $ 301,586,471 210 This page intentionally left blank 211 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenues: General property taxes $ 94,923,219 $ 98,061,588 $ 114,684,820 $ 118,781,679 $ 119,116,165 $ 122,282,030 $ 129,950,795 $ 130,832,830 $ 136,635,069 $ 146,170,152 Sales, use and excise taxes 57,908,018 60,849,368 62,709,499 65,812,192 72,208,200 103,726,901 120,778,266 136,182,444 175,106,499 188,409,346 Franchise taxes 27,881,251 28,132,535 27,972,665 28,418,423 27,286,331 27,238,435 26,863,146 23,952,168 11,750,309 12,756,615 Licenses 12,238,009 12,933,000 14,414,308 15,194,896 15,592,788 16,448,180 13,106,709 11,418,021 15,913,519 17,599,344 Permits 13,696,042 19,125,866 16,553,089 19,846,874 17,690,139 28,079,199 32,203,164 36,230,698 45,405,284 39,390,963 Fines and forfeitures 4,993,420 4,806,599 3,632,916 3,524,067 3,516,251 3,429,044 2,802,888 2,034,542 2,528,232 2,375,561 Assessments 1,617,463 1,481,908 1,717,909 1,520,023 1,542,731 2,221,543 553,248 2,382,919 2,120,750 1,581,962 Interest 1,773,241 1,384,400 1,725,498 1,918,902 3,481,352 6,385,907 3,918,928 1,680,001 (5,741,746) 18,238,569 Intergovernmental 30,446,938 21,806,791 27,518,703 28,912,864 20,634,430 23,641,518 26,503,556 43,194,915 71,377,414 83,847,654 Interfund service charges 10,070,874 10,372,337 11,051,279 11,450,521 11,413,982 16,363,849 20,574,064 20,971,348 21,717,361 25,857,520 Parking meter 3,220,203 3,294,774 3,324,616 3,463,592 3,404,582 3,509,898 2,771,331 1,915,888 2,997,333 2,616,329 Parking ticket 2,128,736 2,876,299 2,844,690 3,204,769 2,110,245 1,824,561 1,186,561 1,701,881 1,797,865 1,180,128 Charges for services 6,635,337 6,098,659 5,150,765 5,711,868 6,666,381 5,970,488 1,207,120 870,318 1,379,562 1,629,310 Rental and other income — — 887,017 1,199,688 1,047,047 1,152,867 5,208,006 5,475,845 7,087,172 8,518,771 Contributions 7,285,092 4,367,439 2,083,791 2,333,604 1,009,291 516,568 354,168 588,722 2,541,067 765,787 Miscellaneous 9,598,126 9,191,484 10,288,192 8,986,498 7,602,234 5,790,115 7,958,960 3,576,443 9,186,662 16,545,569 Total Revenues $ 284,415,969 $ 284,783,047 $ 306,559,757 $ 320,280,460 $ 314,322,149 $ 368,581,103 $ 395,940,910 $ 423,008,983 $ 501,802,352 $ 567,483,580 Expenditures: City Council $ 2,299,541 $ 2,426,454 $ 2,721,621 $ 3,201,795 $ 3,137,125 $ 3,573,889 $ 3,759,472 $ 3,910,937 $ 4,178,561 $ 4,725,621 Mayor 2,659,319 2,635,082 2,456,932 2,752,337 2,856,010 3,121,458 3,862,232 3,495,653 4,158,916 5,120,100 City Attorney 5,615,937 5,324,431 5,442,492 5,549,139 5,896,933 6,643,806 6,788,279 6,840,902 7,195,428 8,683,519 Finance 6,850,904 6,146,789 6,367,181 6,658,550 6,759,597 7,596,941 7,827,573 7,872,632 8,519,579 10,039,270 Fire 35,737,908 37,049,088 38,203,990 38,251,674 39,165,845 42,266,968 42,336,507 40,360,501 45,671,210 48,025,803 Combined Emergency Services 6,877,038 6,439,631 6,976,571 6,916,570 7,377,133 8,066,766 8,337,076 7,697,181 8,860,503 10,109,426 Police 60,694,892 57,719,656 60,822,121 64,158,367 66,609,711 74,956,306 82,368,338 80,751,205 83,178,160 103,468,103 Community and Neighborhoods 22,213,755 27,129,564 28,256,219 28,489,773 28,770,263 30,346,901 31,742,909 49,828,864 58,465,624 55,729,459 Economic Development — — — 1,190,020 1,650,691 1,689,398 1,985,238 2,243,608 4,783,862 5,843,602 Justice Court 3,790,482 3,892,584 4,024,112 4,183,738 4,276,010 4,389,467 4,428,065 4,340,743 4,642,516 4,928,656 Human Resources 1,994,718 2,090,499 2,165,444 2,330,599 2,524,603 2,614,565 2,663,132 2,576,008 3,153,725 3,722,452 Public Services 34,577,616 37,806,472 41,567,552 42,053,566 42,647,148 45,880,531 46,703,582 45,952,402 54,190,829 64,167,797 Transportation — — — — — — 273,914 366,807 — — Arts Council (1) 3,555,395 3,315,434 3,114,035 3,449,071 3,075,356 1,570,622 1,391,833 1,699,285 — — Nondepartmental 23,207,263 23,547,487 27,761,151 26,450,242 27,602,288 29,585,365 35,162,898 37,572,779 43,892,793 52,459,213 Capital Improvement 111,087,275 38,074,057 34,340,213 32,506,631 31,823,086 25,425,953 34,081,787 32,643,280 44,913,364 47,211,498 Debt service: Principal 34,360,941 65,642,758 45,471,871 24,024,992 23,745,487 24,845,252 31,991,991 24,804,145 19,856,897 19,273,120 Interest and other fiscal charges 11,687,259 14,226,360 15,194,085 11,194,490 11,416,231 9,721,047 15,360,100 7,859,429 16,741,916 27,203,980 Total Expenditures 367,210,243 333,466,346 324,885,590 303,361,554 309,333,517 322,295,235 361,064,926 360,816,361 412,403,883 453,578,497 Revenues over (under) expenditures $ (82,794,274) $ (48,683,299) $ (18,325,833) $ 16,918,906 $ 4,988,632 $ 46,285,868 $ 34,875,984 $ 62,192,622 $ 89,398,469 $ 113,905,083 (1) Arts Council now reports with Economic Development. 212 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Other financing sources (uses): Issuance of debt $ 65,076 $ 66,795 $ 21,715 $ 6,460 $ 15,572 $ 1,225 $ 20,201 $ 20,455 $ 29,172 $ 86,040 Payment to refunding bond escrow agent — — — (6,431) — — (67,725) — — — Premiums from issuance of debt 568 — 2,925 — — — 4,009 — 4,391 4 Proceeds from sale of property 707 707 3,533 661 1,390 299 419 455 131 63 Transfers in 53,160 35,940 37,895 38,069 39,996 32,410 36,721 41,478 58,981 100,767 Transfers out (35,415) (39,507) (52,179) (57,749) (56,123) (53,018) (80,517) (70,299) (101,260) (143,251) Total other financing sources (uses) 84,097 63,935 13,888 (18,990) 836 (19,084) (86,892) (7,911) (8,585) 43,623 Net change in fund balances $ 1,303 $ 15,252 $ (4,438) $ (2,071) $ 5,824 $ 27,201 $ (52,016) $ 54,281 $ 80,814 $ 157,529 Debt service as a percentage of non-capital expenditures 17.1 % 49.1 % 21.0 % 12.7 % 12.7 % 11.1 % 13.7 % 9.5 % 8.9 % 10.2 % Debt service as a percentage of total expenditures 12.5 % 24.0 % 18.7 % 11.6 % 11.4 % 10.7 % 13.1 % 9.1 % 10.0 % 11.4 % 213 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 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 2022 121,128 13,255 2,252 11,750 174,106 322,492 2023 112,416 11,822 4,563 12,757 172,197 313,756 214 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 Credit Revenue Sharing (1) Total Operating Revenue 2014 $ 25,000 $ 26,812 $ 7,098 $ 18,064 $ 29,228 $ 28,431 $ 2,657 $ (10,290) $ 127,000 2015 23,199 29,019 7,201 19,341 31,117 29,467 2,864 (9,938) 132,270 2016 27,023 28,500 6,931 22,142 33,409 30,859 3,110 (10,941) 141,033 2017 30,020 29,775 6,844 27,186 34,297 35,042 3,811 (12,169) 154,806 2018 32,742 31,028 6,799 29,181 35,323 39,041 4,441 (13,007) 165,548 2019 35,434 33,432 6,769 29,856 36,297 42,046 3,704 (14,077) 173,461 2020 35,638 34,645 7,031 25,372 27,974 37,634 3,129 (10,097) 161,326 2021 35,996 66,680 7,015 24,317 23,491 31,608 3,287 (7,710) 184,684 2022 45,158 83,480 8,182 35,378 48,813 48,015 3,485 (13,566) 258,945 2023 53,497 86,486 8,373 36,053 60,140 49,286 3,336 (13,844) 283,327 Source: Salt Lake City Department of Airports Audited Financial Statements (1) As of FY22, Credit Sharing Revenues have been broken out from Terminal Space Rentals. 215 SALT LAKE CITY CORPORATION ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Taxable Value Real Property (1)$ 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 $ 34,035,019,599 $ 41,820,707,447 Taxable Personal Property 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 3,446,042,005 3,652,856,862 Total Taxable value (2)$ 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 $ 37,481,061,604 $ 45,473,564,309 Estimated actual value $ 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 $ 49,835,269,718 $ 61,263,585,394 Ratio of total taxable value to estimated actual value 76.0 % 76.3 % 76.1 % 76.3 % 75.9 % 76.2 % 76.0 % 75.7 % 75.2 % 74.2 % Total Direct Tax Rate 0.005036 0.004893 0.004862 0.004557 0.004286 0.003977 0.003878 0.003540 0.003424 0.003012 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. 216 SALT LAKE CITY CORPORATION DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years (rates per $1 of assessed value) Components of Direct Rate Overlapping Rates Fiscal Year Discharge of Judgement Interest and Sinking Fund General Operations Total Direct Rate Salt Lake City Library Salt Lake City Schools Salt Lake County Mosquito Abatement District Central Utah Water Conservation Metropolitan Water District 2014 0.000007 0.001064 0.003965 0.005036 0.000820 0.006651 0.003180 0.000132 0.000446 0.000409 2015 0.000040 0.001066 0.003787 0.004893 0.000782 0.006303 0.003036 0.000127 0.000422 0.000391 2016 0.000012 0.000989 0.003861 0.004862 0.000749 0.006497 0.002531 0.000121 0.000405 0.000373 2017 0.000030 0.000910 0.003617 0.004557 0.000705 0.006180 0.002371 0.000171 0.000400 0.000349 2018 0.000032 0.000772 0.003482 0.004286 0.000834 0.005748 0.002238 0.000160 0.000400 0.000325 2019 0.000049 0.000692 0.003236 0.003977 0.000766 0.005500 0.002025 0.000141 0.000400 0.000302 2020 0.000025 0.000648 0.003205 0.003878 0.000745 0.005393 0.001933 0.000133 0.000400 0.000289 2021 0.000015 0.000583 0.002942 0.003540 0.000683 0.005047 0.001948 0.000122 0.000400 0.000265 2022 0.000014 0.000556 0.002854 0.003424 0.000652 0.004809 0.001777 0.000115 0.000400 0.000253 2023 0.000037 0.000519 0.002456 0.003012 0.000587 0.003964 0.001394 0.000159 0.000400 0.000200 Source: Utah State Tax Commission 217 SALT LAKE CITY CORPORATION PRINCIPAL PROPERTY TAX PAYERS Current Year and Ten Years Ago December 31, 2022 taxable valuation December 31, 2013 taxable valuation Taxpayer Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value Taxable Assessed Value Rank Percentage of Total City Taxable Assessed Value LDS Church (City Creek Reserve, Deseret Title, Property Reserve)$ 1,281,589,549 1 3.06%$ 757,755,991 1 3.94% Pacificorp 551,254,839 2 1.32% 415,304,997 2 2.16% Delta Air Lines 398,635,830 3 0.95% 173,381,070 5 0.90% Oakmont Properties 246,459,636 4 0.59% Wasatch Plaza Holdings LLC 241,324,100 5 0.58% 134,893,400 3 0.70% Questar Gas 219,370,696 6 0.52% 108,951,072 8 0.57% Skywest Airlines 214,271,175 7 0.51% 177,600,484 4 0.92% MPLD Husky LLC 210,682,000 8 0.50% KBSIII 209,208,200 9 0.50% Verizon Communications, Inc 172,784,768 10 0.41% Qwest 161,451,071 7 0.84% Inland Western Salt Lake City Gateway 121,057,400 9 0.63% Boyer Properties 92,936,200 6 0.48% Grand America Hotel 85,609,500 10 0.44% $ 3,745,580,793 $ 2,228,941,185 Total City Taxable Assessed Value $ 41,827,451,750 $ 19,251,047,850 Source: State of Utah and Salt Lake County 218 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 2014 $ 96,505 $ 94,032 97.44 %$ 2,327 $ 96,359 99.85 % 2015 101,010 98,763 97.78 % 2,170 100,933 99.92 % 2016 105,826 103,764 98.05 % 1,995 105,759 99.94 % 2017 110,331 107,585 97.51 % 2,736 110,322 99.99 % 2018 110,751 108,500 97.97 % 2,207 110,707 99.96 % 2019 113,989 111,402 97.73 % 2,466 113,867 99.89 % 2020 122,801 120,693 98.28 % 1,812 122,505 99.76 % 2021 124,272 121,630 97.87 % 1,817 123,446 99.34 % 2022 133,935 131,026 97.83 % 1,729 131,026 97.83 % 2023 144,867 141,598 97.74 % — 141,598 97.74 % (1) Property taxes are assessed January 1 and due by November 30. Payments are not considered delinquent until after November 30. 219 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 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 10.24 %$ 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 9.94 %$ 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 8.30 %$ 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 29.39 %$ 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 30.41 %$ 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 42.49 %$ 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 39.16 %$ 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 44.39 %$ 14,691 2022 $ 114,105,000 — 109,235,000 13,321,090 13,710,000 13,208,161 13,231,447 3,390,437,999 12,749,288 (31,092) $ 3,679,966,893 52.86 %$ 18,356 2023 $ 123,320,000 — 168,130,000 11,977,969 12,500,000 10,154,635 15,796,746 3,355,142,190 13,070,833 (27,637) $ 3,710,064,736 38.59 %$ 18,506 Note: Lease and subscription liabilies for governmental and business-type activities are included in the amounts above. 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 210. 220 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 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 102,045 5,252 96,793 0.21% 485 2022 114,105 4,943 109,162 0.22% 545 2023 123,320 13,449 109,871 0.18% 537 221 SALT LAKE CITY CORPORATION COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT June 30, 2023 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 $45,473,564,309 $61,263,585,394 204,657 Total governmental activities direct debt $ 2,117,456 100.00%$ 298,779,218 0.66%0.49%$1,459.90 Overlapping debt: Salt Lake County (3)125,452,633 26.00% 32,617,685 Central Utah Water Conservancy District (4)123,254,854 16.91%20,842,396 Salt Lake City School District (4) 4,180,000 100% 4,180,000 Total Overlapping debt (5)$ 252,887,487 57,640,080.39 Total debt applicable to the City $ 356,419,298.35 0.78%0.58%$1,741.54 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 (12/31/22). (4) Salt Lake City School District and Central Utah Water Conservancy District GO bonds per ACFR (6/30/22). (5) Overlapping debt is calculated using all debt from Salt Lake City School District and debt from Salt Lake County allocated by geographical percentage. 222 SALT LAKE CITY CORPORATION LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years (amounts expressed in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Purposes - 4% Debt Limit $ 1,012,651 $ 1,078,843 $ 1,143,767 $ 1,255,442 $ 1,352,795 $ 1,490,227 $ 1,659,737 $ 1,836,059 $ 1,993,411 $ 2,450,543 Less: Total net debt applicable to limit (2) 164,038 150,706 139,800 126,334 109,699 94,258 96,793 96,793 109,162 109,871 Legal Debt Margin $ 848,613 $ 928,137 $ 1,003,967 $ 1,129,108 $ 1,243,096 $ 1,395,969 $ 1,562,944 $ 1,739,266 $ 1,884,249 $ 2,340,672 Total net debt applicable to the limit as a percentage of debt limit 16.20 % 13.97 % 12.22 % 10.06 % 8.11 % 6.33 % 5.83 % 5.27 % 5.48 % 4.48 % Water, sewer and lighting - 4% Debt Limit $ 1,012,651 $ 1,078,843 $ 1,143,767 $ 1,255,442 $ 1,352,795 $ 1,490,227 $ 1,659,737 $ 1,836,059 $ 1,993,411 $ 2,450,543 Total net debt applicable to limit — — — — — — — — — — Legal Debt Margin $ 1,012,651 $ 1,078,843 $ 1,143,767 $ 1,255,442 $ 1,352,795 $ 1,490,227 $ 1,659,737 $ 1,836,059 $ 1,993,411 $ 2,450,543 Total net debt applicable to the limit as a percentage of debt limit — % — % — % — % — % — % — % — % — % — % Total - 8% (1) Debt Limit $ 2,025,302 $ 2,157,685 $ 2,287,535 $ 2,510,883 $ 2,705,591 $ 2,980,453 $ 3,319,475 $ 3,672,119 $ 3,986,822 $ 4,901,087 Total net debt applicable to limit 164,038 150,706 139,800 126,334 109,699 94,258 96,793 96,793 109,162 109,871 Legal Debt Margin $ 1,861,264 $ 2,006,979 $ 2,147,735 $ 2,384,549 $ 2,595,892 $ 2,886,195 $ 3,222,682 $ 3,575,326 $ 3,877,660 $ 4,791,216 Total net debt applicable to the limit as a percentage of debt limit 8.10 % 6.98 % 6.11 % 5.03 % 4.05 % 3.16 % 2.92 % 2.64 % 2.74 % 2.24 % (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 2023 Total estimated actual value $ 61,263,585 Debt limit (8% of total estimated actual value) 4,901,087 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 123,320 Less: Amount set aside for repayment of general obligation debt 13,449 Total net debt applicable to limit 109,871 Legal debt margin $ 4,791,216 223 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 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 —— 0.00 % 2022 $ 171,078 — 171,078 2,020 3,267 32.36 %$ 20 —— 0.00 % 2023 $ 180,281 — 180,281 5,360 3,261 20.91 %$ 29 — — 0.00 % 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 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 % 2022 $ 522,565 283,720 238,845 284,889 154,225 0.54 % 2023 $ 592,878 326,488 266,390 37,897 156,253 1.37 % (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. 224 SALT LAKE CITY CORPORATION DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Fiscal Year Ended June 30, Population Estimate (1) Per Capita Personal Income (1) Total Personal Income (amount expressed in thousands) Number of residents 18 years and older (1) High School Graduates (2) Average Daily School Membership (2) Unemployment Rate (3) 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 3.4 % 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 2.7 % 2020 200,567 34,711 6,961,881 160,824 1,651 22,921 7.4 % 2021 199,723 33,095 6,609,833 159,379 1,614 20,782 3.2 % 2022 200,478 34,728 6,962,200 161,986 1,471 20,244 2.5 % 2023 204,657 $ 46,972 $ 9,613,149 167,819 1,520 19,317 2.7 % (1) U.S. Census Bureau, QuickFacts (2) Salt Lake City School District (3) United States Bureau of Labor Statistics, Local Area Unemployment Statistics, SLC at June 30. 225 SALT LAKE CITY CORPORATION FULL-TIME EQUIVALENT CITY GOVERNMENT BY FUNCTIONS Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 DEPARTMENT General Fund Attorney's Office 56.70 53.75 53.25 50.25 51.25 49.25 50.25 50.25 55.25 58.50 City Council 25.88 28.00 28.00 30.00 33.00 33.00 35.00 35.00 35.00 36.00 Communications Bureau 81.00 81.00 81.00 94.00 97.00 97.00 100.00 100.00 108.00 100.00 Community and Neighborhood 193.55 200.25 206.00 190.00 192.00 195.00 207.00 207.00 176.00 190.00 Economic Development — — — 11.00 13.00 15.00 16.00 18.00 18.00 22.00 Finance 57.20 58.20 63.70 64.70 65.70 68.70 69.70 69.70 71.70 76.70 Fire 336.00 340.00 340.00 341.00 345.00 347.00 366.00 366.00 374.00 392.00 Human Resources 22.26 22.56 22.56 22.56 22.66 21.05 22.05 21.20 26.05 31.40 Justice Courts 44.50 47.00 44.00 44.00 44.00 44.00 44.00 42.00 42.00 42.00 Mayor's Office 24.00 25.00 21.00 21.00 23.00 23.00 24.00 26.00 30.00 32.00 Police 533.00 533.00 558.00 555.00 565.00 620.00 711.00 711.00 720.00 750.00 Public Lands — — — — — — — — 117.35 143.35 Public Services (1) 242.13 286.03 294.40 298.75 306.75 332.35 341.35 329.35 249.00 261.00 General Fund Total 1,616.22 1,674.79 1,711.91 1,722.26 1,758.36 1,845.35 1,986.35 1,975.50 2,022.35 2,134.95 Enterprise Funds Airport 557.30 557.30 555.30 555.30 564.80 570.80 563.80 610.80 610.80 619.30 Golf 40.40 40.65 40.65 34.65 33.65 34.65 34.65 34.65 33.65 33.65 Public Utilities 387.00 390.00 392.00 394.00 397.00 411.00 427.00 435.00 452.00 459.00 Redevelopment Agency 14.00 15.80 15.80 16.50 16.00 16.00 19.00 32.00 32.00 32.00 Sustainability 49.60 53.95 53.95 57.95 57.95 63.00 63.00 63.00 63.00 63.00 Enterprise Fund Total 1,048.30 1,057.70 1,057.70 1,058.40 1,069.40 1,095.45 1,107.45 1,175.45 1,191.45 1,206.95 Internal Service Funds Information Management Services 68.25 70.00 70.00 70.00 71.00 71.00 71.00 69.00 84.00 92.00 Fleet Management 41.00 40.00 41.00 42.00 45.00 45.00 45.00 45.00 45.00 46.00 Government Immunity 6.54 5.50 6.50 6.50 6.50 8.50 8.50 8.50 9.00 9.00 Risk Management 2.80 6.24 5.74 5.74 5.64 6.25 6.25 6.10 7.75 7.40 Internal Service Fund Total 118.59 121.74 123.24 124.24 128.14 130.75 130.75 128.60 145.75 154.40 Funding Our Future Special Revenue Fund Total — — — — — — 3.00 3.00 3.00 — TOTAL POSITIONS 2,783.11 2,854.23 2,892.85 2,904.90 2,955.90 3,071.55 3,227.55 3,282.55 3,362.55 3,496.30 Source: Salt Lake City Mayor's Recommended Budget, Staffing Document Summary. (1) Public Services was split in 2022, creating a Public Lands department. 226 SALT LAKE CITY CORPORATION PRINCIPAL EMPLOYERS Current Year and Ten Years Ago December 31, 2022 December 31, 2013 Employer Number Employees Rank Percent of all Employees Number Employees Rank Percent of all Employees SALT LAKE COUNTY 7,000 - 9,999 1 1.00% - 1.50%5,000 - 6,999 2 0.90 % - 1.30% UNIVERSITY HOSPITAL**7,000 - 9,999 2 0.70% - 1.00%7,000 -9,999 1 1.30 %-1.90% AMAZON SLC1 4,000 - 4,999 3 0.60% - 0.70% DELTA AIRLINES 4,000 - 4,999 4 0.40% - 0.60%3,000 -3,999 5 0.60 %-0.80% ASSOCIATED REG & UNIV PATHOLOGY 3,000 - 3,999 5 0.40% - 0.60% PREMIER EMPLOYEE SOLUTIONS LLC 3,000 - 3,999 6 0.40% - 0.60% PRIMARY CHILDREN'S MEDICAL CENTER 3,000 - 3,999 7 0.40% - 0.60%3,000 -3,999 8 0.60 %-0.80% DISCOVER PRODUCTS INC.2,000 - 2,999 8 0.40% - 0.60%3,000 -3,999 6 0.60 %-0.80% L3 TECHNOLOGIES, INC.2,000 - 2,999 9 0.30% - 0.40%3,000 -3,999 7 0.60 %-0.80% VA SALT LAKE CITY HEALTH CARE SYSTEM 2,000 -2999 10 — % - — %2,000 -2,999 10 0.40 %-0.60% UNIVERSITY OF UTAH**4,000 - 4,999 3 0.80 %-0.90% C.R. ENGLAND 3,000 - 3,999 4 0.60 %-0.80% UPS 2,000 - 2,999 9 0.40 %-0.60% 37000 -50990 5.51 %- 7.59 %35000 -47990 6.60 %-9.10% * - Estimated total number of people employed in Salt Lake City. 671772 527250 ** - University Hospitals have been separated from the University of Utah. Source: Workforce Services - Based on yearly averages 227 SALT LAKE CITY CORPORATION OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Function Fire Medical Calls 23,277 23,030 24,297 24,024 22,045 21,417 22,086 22,292 25,363 26,100 Fire Calls 5,385 5,542 5,777 6,406 6,776 6,891 7,132 7,884 8,978 8,923 Average dispatch time on medical emergencies :56 :58 :49 :46 :55 :53 :52 :53 1:34 1:29 Average time responding to life threatening emergencies 4:38 3:54 2:11 4:00 4:00 3:49 4:54 N/A 2:39 2:53 Police (calendar year) Median Priority 1 Response Time In Minutes (1)5:44 5:44 5:40 6:00 6:19 6:02 5:36 12.55 11:34 10:15 Community Development Percent of business license inspections conducted within 30 days TBD 100 100%100 1 100%100 %100 %100 %100 % Number of building inspections conducted per day 134 136 161 160 167 207 239 195 182 218 Percent of transportation service requests completed within 10 working days 91%81%84%80%82%92%87 %84%86%81% Public Services Forestry - Number of trees pruned per month (average)463 325 244 392 278 266 442 292 281 353 Water Total million gallons water delivered 30,168 27,853 25,991 24,491 25,438 23,954 24,423 25,127 21,196 22,845 Per capita delivered - gallons per day 242 185 207 193 198 184 186 191 157 166 Airport Total enplaned passengers (in thousands)10,294 10,834 11,293 11,850 12,420 13,090 10,096 7,710 12,802 13,143 Cargo pounds (in thousands)325,535 330,712 350,906 367,050 380,286 407,899 399,971 424,521 404,492 359,431 Sewer Total Plant Flow (million gallons)10,212 10,087 10,418 10,554 10,211 12,217 11,849 10,492 10,945 10,842 Total influent (TBOD) biochemical oxygen demand (in thousand pounds)17,401 17,864 18,765 19,659 26,985 29,729 21,333 22,869 17,890 20,061 Housing & Loan Rehab Loans 109 108 80 72 113 60 35 26 17 7 Rehab units 124 125 89 217 113 74 35 26 31 29 First Time Home Buyer projects 10 8 4 4 8 7 7 2 5 1 Storm Water Utility Line Installation (Linear Feet)12,547 5,872 5,960 11,039 11,940 6,899 13,013 13,541 25,427 16,560 Refuse Collection Recycling Contamination Rate in Curbside Cans 7%5.7%7%7%15%23.5%19.7%16%15.8%15.3% Percentage of waste stream recycled 16%17%17.2%17%15%12.8%12.1%12.1%12.2%12.2% Golf Number of golf rounds (9 holes equivalent)423,432 415,831 365,671 343,670 355,655 350,550 374,139 455,556 441,087 425,698 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. 228 SALT LAKE CITY CORPORATION CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Fire Number of stations 14 14 14 14 14 14 14 14 14 14 Sworn fire fighters 323 323 328 328 324 329 338 345 347 361 Non-sworn civilian employees.13 13 13 13 17 18 18 23 27 31 Police protection: Number of officers with power of arrest 437 417 447 457 508 589 589 589 604 604 Number of other police employees 96 111 111 108 120 122 122 117 124 146 Public Services Recreation and culture: Number of municipal parks (2)126 126 130 81 81 81 81 81 81 81 Number of municipal playgrounds 58 65 67 71 71 77 77 77 77 77 Number of municipal golf courses 9 8 7 7 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 1,858 1,855 1,849 1,850 1,840 1,854 1,863 1,873 1,888 1,893 Street Lighting Number of Street Lights 15,511 16,405 15,533 15,565 15,615 15,668 15,677 15,690 15,851 15,883 Municipal water plants: Number of service connections 90,435 90,451 91,467 91,545 91,802 92,026 94,013 92,374 91,990 92,034 City 56,700 56,710 55,409 55,435 55,577 55,656 55,772 55,958 56,147 56,258 County 33,735 33,741 36,058 36,110 36,225 36,370 38,241 36,416 35,843 35,776 Water supplied to conduits (gallons/year) per thousand 30,168,610 27,853,330 25,990,768 24,490,890 26,231,120 32,840,422 29,331,670 31,027,510 26,023,720 27,442,799 Water shed managed (square miles)190 190 190 190 190 190 190 190 190 190 Number of fire hydrants 10,384 10,441 10,494 9,687 9,747 9,835 9,899 9,768 9,870 10,160 City 6,519 6,547 6,592 6,361 6,387 6,460 6,496 6,552 6,628 6,751 County 3,865 3,894 3,902 3,326 3,360 3,375 3,403 3,216 3,242 3,409 Sewer Utility Number of sewer connections 49,779 49,835 49,917 49,924 50,019 50,119 50,235 50,310 50,394 50,515 Miles of sanitary sewer lines 653 653 654 655 655 656 667 677 679 679 Storm Water Utility: Miles of storm water lines 341 342 343 345 348 351 351 356 359 364 Public Libraries 5 6 8 8 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)110.34 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% 229 Federal Awards Reports in Accordance with the Uniform Guidance and State of Utah Compliance Report June 30, 2023 Salt Lake City Corporation Salt Lake City Corporation Table of Contents June 30, 2023 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 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 .................................................................................................................................... 6 Schedule of Expenditures of Federal Awards ....................................................................................................... 9 Notes to the Schedule of Expenditures of Federal Awards ..................................................................................14 Schedule of Findings and Questioned Costs ........................................................................................................15 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 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, 2023, 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 29, 2023. 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 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 or significant deficiencies may exist that have not been identified. We identified a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item 2023-001 that we consider to be a material weakness. 2 Report on 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 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 Government Auditing Standards requires the auditor to perform limited procedures on Salt Lake City Corporation’s responses to the findings identified in our audit and 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 29, 2023 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, 2023. State compliance requirements were tested for the year ended June 30, 2023 in the following areas: Budgetary Compliance Fund Balance Justice Court Restricted Taxes and Other Related Restricted Revenue Fraud Risk Assessment Governmental Fees Open and Public Meetings Act 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, 2023. Basis for Opinion We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the State Compliance Audit Guide (Guide). Our responsibilities under those standards and the State Compliance Audit Guide are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Salt Lake City Corporation and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of Salt Lake City Corporation's compliance with the compliance requirements referred to above. 4 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Salt Lake City Corporation’s government programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Salt Lake City Corporation's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Guide will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Salt Lake City Corporation's compliance with the requirements of the government program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Guide, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Salt Lake City Corporation’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the Salt Lake City Corporation’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 Salt Lake City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Guide and which are described in the accompanying Schedule of Findings and Questioned Costs as items 2023-003 and 2023-004. Our opinion on compliance is not modified with respect to these matters. 5 Government Auditing Standards require the auditor to perform limited procedures on the Salt Lake City Corporation’s response to the noncompliance findings identified in our audit described in the accompanying Schedule of Findings and Questioned Costs. Salt Lake City Corporation’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report On Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses or significant deficiencies, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 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 to 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 audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 Guide. Accordingly, this report is not suitable for any other purpose. Salt Lake City, Utah December 29, 2023 6 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 Opinion on Each Major Federal Program We have audited Salt Lake City Corporation’s compliance with the types of compliance requirements subject to audit 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, 2023. 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. 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, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Salt Lake City Corporation and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Salt Lake City Corporation’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to Salt Lake City Corporation‘s federal programs. 7 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Salt Lake City Corporation’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Salt Lake City Corporation’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Salt Lake City Corporation’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of Salt Lake City Corporation’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 Salt Lake City Corporation’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies. 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. 8 A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider a deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2023-002 to be a significant deficiency. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on Salt Lake City Corporation’s response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. Salt Lake City Corporation’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. 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 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, 2023, 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 29, 2023, 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 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 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 29, 2023 Se e N o t e s t o S c h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s 9 Sa l t L a k e C i t y C o r p o r a t i o n Sc h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s Ye a r E n d e d J u n e 3 0 , 2 0 2 3 Se e N o t e s t o S c h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s 1 0 Sa l t L a k e C i t y C o r p o r a t i o n Sc h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s Ye a r E n d e d J u n e 3 0 , 2 0 2 3 Se e N o t e s t o S c h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s 1 1 Sa l t L a k e C i t y C o r p o r a t i o n Sc h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s Ye a r E n d e d J u n e 3 0 , 2 0 2 3 Se e N o t e s t o S c h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s 1 2 Sa l t L a k e C i t y C o r p o r a t i o n Sc h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s Ye a r E n d e d J u n e 3 0 , 2 0 2 3 Se e N o t e s t o S c h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s 1 3 Sa l t L a k e C i t y C o r p o r a t i o n Sc h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s Ye a r E n d e d J u n e 3 0 , 2 0 2 3 14 Salt Lake City Corporation Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2023 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, 2023. 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. When applicable, 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, 2023, was $140,000. Expenditures reported under the Water Infrastructure Finance and Innovation program in the schedule consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year. The outstanding balance at June 30, 2023 was $13,112,999. 15 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2023 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 None Reported 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 Yes 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 Yes Identification of major programs: Federal Financial Assistance Listing Airport Improvement Program 20.106Emergency Rental Assistance 21.023Coronavirus State and Local Fiscal Recovery Fund 21.027 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 16 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Section II – Financial Statement Findings 2023-001 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 adjustments that in aggregate represent a material adjustment to the financial statements. Audit adjustments were proposed that impacted property tax receivable, housing loans receivable and subscription asset and liability. 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 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. 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. 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. 17 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Section III – Federal Award Findings and Questioned Costs 2023-002 Department of Treasury Federal Financial Assistance Listing 21.027 Award number SLT-4512 COVID-19 Coronavirus State and Local Fiscal Recovery Fund Reporting Significant Deficiency in Internal Control and Immaterial Instance of Noncompliance Criteria: The quarterly Project and Expenditure Report should include all expenditures made in the reporting period. Condition: The original project and expenditure reports provided to the auditors did not include all expenditures made during the reporting periods selected for testing. Cause: The City’s internal controls related to preparation of the reports did not identify all expenditures made in the reporting periods selected for testing. Effect: The original reports submitted to the Department of Treasury were not complete. Questioned Costs: None reported Context/Sampling: We examined all four quarterly Project and Expenditure Reports for the audit period. We noted errors in one report. Repeat Finding from Prior Year(s): No Recommendation: We recommend that the City enhance internal controls to ensure all program expenditures are appropriately reported. Views of Responsible Officials: Management agrees with the finding. 18 Salt Lake City Corporation Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Section IV – State of Utah Compliance Findings 2023-003 Open and Public Meetings Act Immaterial Instance of Noncompliance with State Compliance Requirements Criteria:Under UCA 52-4-201 and UCA 52-4-203(4)(f), the City is required to post minutes and any public materials for work meetings to the Utah Public Notice Website within three days of the minutes being approved. Condition: There were two instances where meeting minutes were not posted to the Utah Public Notice Website within three days of the minutes being approved. Cause: The City’s process for posting work meeting minutes to the Utah Public Notice Website was not sufficient to meet the required timeframe. Effect: The City was not in compliance with UCA 54-4-201 and UCA 52-4-203(4)(f) in relation to posting work meeting minutes to the Utah Public Notice Website. Recommendation: We recommend that the City review it’s processes for timely posting of work minutes to the Utah Public Notice Website. Views of Responsible Officials: Management agrees with the finding. 2023-004 Fund Balance Immaterial Instance of Noncompliance with State Compliance Requirements Criteria: Under UCA 10-6-116(2), the City’s unrestricted (committed, assigned, and unassigned) general fund balance should not exceed 35% of the total revenue of the general fund for the fiscal year under audit. Condition: The unrestricted general fund balance exceeded 35% of the total revenue of the general fund. Cause: The City’s process for maintaining the proper unrestricted general fund balance in proportion to total revenue was not sufficient to ensure compliance. Effect: The City was not in compliance with UCA 10-16-116(2). Recommendation: We recommend that the City review it’s processes to ensure the unrestricted general fund balance does not exceed 35% of the total revenue of the general fund. Views of Responsible Officials: Management agrees with the finding. 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 December 29, 2023 To the Honorable Mayor and Members of the City Council Salt Lake City Corporation Salt Lake City, Utah We have audited the financial statements of Salt Lake City Corporation (the City) as of and for the year ended June 30, 2023, and have issued our report thereon dated June 30, 2023. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance As communicated in our letter dated September 15, 2022, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America and to express an opinion on whether the City complied with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Our responsibility, as prescribed by professional standards as it relates to the audit of the City’s major federal program compliance, is to express an opinion on the compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. An audit of major program compliance includes consideration of internal control over compliance with the types of compliance requirements referred to above as a basis for designing audit procedures that are appropriate in the circumstances 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, as a part of our major program compliance audit, we considered internal control over compliance for these purposes and not to provide any assurance on the effectiveness of the City’s internal control over compliance. 2 We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. We have provided our comments regarding internal controls during our audit in our 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 dated December 29, 2023. We have also provided our comments regarding compliance with the types of compliance requirements referred to above and internal controls over compliance during our audit in our Independent Auditor’s Report on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance dated December 29, 2023. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement, if applicable, have complied with all relevant ethical requirements regarding independence. Significant Risks Identified As stated in our auditor’s report, professional standards require us to design our audit to provide reasonable assurance that the financial statements are free of material misstatement whether caused by fraud or error. In designing our audit procedures, professional standards require us to evaluate the financial statements and assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to misstatements, and thereby require special audit considerations, are designated as “significant risks.” We have identified the following as significant risks: • Management Override of Controls – Professional standards require auditors to address the possibility of management overriding controls. Accordingly, we identified as a significant risk that management of the Salt Lake City Corporation may have the ability to override controls that the City has implemented. • Revenue Recognition – Exchange Revenue – We identified revenue recognition as a significant risk because the possibility of errors in recording exchange revenue due to incorrect calculations or over/under billing. • Revenue Recognition – Non-Exchange Revenue – We identified grant and intergovernmental revenue recognition as a significant risk because of possible misstatements due to errors in determining if eligibility, timing or other grantor restrictions have been met. • Improper Capitalization – Given the dollar amount and volume of capital asset expenditures, we considered there is a significant risk that capital expenditures are not properly reconciled and classified as a capital asset additions. 3 Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1, the City changed accounting policies related to accounting for software subscriptions to adopt the provisions of GASB Statement No. 96 , Subscription-Based Information Technology Arrangements. Accordingly, the accounting change has been retrospectively applied to the financial statements beginning July 1, 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significan uusual transactions and (2) the effect of significant accounting policies in controverisial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimates affecting the financial statements are: • Environmental Remediation Liability - Management’s estimate of the environmental remediation liability is based on estimated costs, including equipment, labor, and monitoring, to remediate all future obligations. We evaluated the estimated remaining costs, including supporting engineering estimates, and considered the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole. • Pensions - Management’s estimate of the net pension liability is an allocation of an amount determined by the Utah Retirement Systems (URS) in accordance with the parameters of GASB Statement No. 68. The estimate is prepared by the URS for all of Salt Lake City Corporation and then allocated to the various funds within the Salt Lake City Corporation. We evaluated the report provided by the URS and the allocation made by Salt Lake City Corporation detailing the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to Long-Term Obligations and Pension Plans in Note 6 and 14, respectively, to the financial statements. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. 4 Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. There were no uncorrected misstatements. The following misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management: Overstatement of Property Tax Receivable (General Fund) $13,950,746 Understatement of Deferred Property Taxes (General Fund) 13,950,746 Overstatement of Subscription Asset (Govt Wide) $820,705 Overstatement of Subscription Liability (Govt Wide) 820,705 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City financial statements or the auditor’s report. No such disagreements arose during the course of the audit. Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. As described in Note 1 to the financial statements, the City has adopted the provisions of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). We have included an emphasis of matter paragraph in our report regarding this adoption. Representations Requested from Management We have requested certain written representations from management which are included in the management representation letter dated December 29, 2023. Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. 5 Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have: • Read the information and considered whether such information, or the manner of its presentation, was materially inconsisitent with its presentation in the financial statements. We did not note any material inconsistencies during our review. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. The financial statements include the financial statements of the Department of Airports, Water Utility Fund and Sewer Utility Fund, departments of Salt Lake City, the Redevelopment Agency Fund, and Local Building Authority, blended component units of the City, and the Salt Lake City Library, a discretely presented component unit of the City. We consider these entities to be significant components of the consolidated financial statements. Consistent with the audit of the consolidated financial statements as a whole, our audit included obtaining an understanding of the above organizations and their environments, including internal control, sufficient to assess the risks of material misstatement of the financial statements of the City and completion of further audit procedures. The financial statements include the equity method investment in the Joint Venture City/County Landfill with Salt Lake County and the Utah Performing Arts Center Agency (UPACA), a discretely presented component unit, which are considered to be a significant components of the financial statements of the City. The financial statements of Salt Lake County were audited by other auditors. Eide Bailly assumed responsibility for the audit of the financial statements of Salt Lake County and no reference is made in the auditor’s report to the other auditor. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of Salt Lake County and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of the Joint Ventures with the City and completion of further audit procedures. Additionally, our audit procedures included required correspondence with the other auditor, obtaining and reading their auditor’s report and the related financial statements, and other procedures as considered necessary. 6 The financial statements include the equity method investment in the Sugarhouse Park joint venture between the City and Salt Lake County as well as the Arts Council, which for the purpose of our audit, we did not consider to be a significant component of the financial statements of the City. The financial statements of Salt Lake County and the Arts Council were audited by other auditors. Eide Bailly assumed responsibility for the audit of the financial statements of Salt Lake County and the Arts Council and no reference is made in the auditor’s report to the other auditors. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of the investment in Salt Lake County and the Arts Council, sufficient to assess the risks of material misstatement of the financial statements of the City and completion of further audit procedures, as determined necessary. This report is intended solely for the information and use of the Mayor and Members of the City Council, and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Salt Lake City, Ut Management’s Response to Auditor’s Findings: Summary Schedule of Prior Audit Findings and Corrective Action Plan June 30, 2023 Prepared by Management of Salt Lake City Corporation Summary Schedule of Prior Audit Findings Finding 2022-001 Initial Fiscal Year Finding Occurred: 2022 Finding Summary: During the audit there were multiple audit adjustments identified that in the aggregate represented a material adjustment to the financial statements. Status: Management implemented an additional step in the annual close process where additional testing was done on all unreconciled cash items at the end of the year. In addition, all property sales were subjected to undergo a formal review with the City Finance Team in order to ensure all sales are properly recorded. Ongoing training with Treasury staff was also implemented in the current year to ensure reconciliations were done in a timely manner. Finding 2022-002 Initial Fiscal Year Finding Occurred: 2022 Finding Summary: During the audit there was a lease identified that was not properly accounted for in accordance with GASB 87. Status: Management has continued to review and monitor all new lease/rental agreements for GASB 87 compliance. We have also added a review step to the lease calculation process whereby an additional review of the calculation is done by another staff member. Finding 2022-003 Initial Fiscal Year Finding Occurred: 2022 Finding Summary: The original SEFA provided to the auditors for major program determination did not include the loan received under the WIFIA program. Status: Management added a step to the annual close process of contacting each department throughout the City to determine if there were any new Federal programs that needed to be considered for the SEFA. Finding 2022-004 Initial Fiscal Year Finding Occurred: 2022 Finding Summary: Total expenditures in the Arts Council Fund exceeded the appropriated expenditures in the final adopted budget. Status: Management worked closely with the Arts Council to ensure they were aware of their budget and expenditures throughout the year to avoid going over budget in the current year. The Arts Council successfully ended the year under their allotted budget. Corrective Action Plan Finding 2023-001 Finding Summary: Eide Bailly LLP identified multiple audit adjustments that in the aggregate resulted in a material adjustment to the financial statements. Responsible Individuals: Russell Sundquist Corrective Action Plan: Management agrees that the financial statements would have been misstated without the audit adjustments. 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. Anticipated Completion Date: December 2023 Finding 2023-002 Federal Agency Name: Department of the Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Fund CFDA #21.027 Finding Summary: The original project and expenditure reports provided to the auditors did not include all expenditures made during the reporting periods they selected for testing. Responsible Individuals: Aaron Price Corrective Action Plan: This is the result of an end of year timing issue wherein the reporting deadline to the Federal Government occurred prior to year-end close, resulting in a reconciling item being accurately reported within the City’s fiscal year despite being reported to the Federal Government in a subsequent quarter, but still accurately within the Federal Government’s fiscal year. Moving forward, greater efforts will be used to reconcile year end grant transactions prior to federal reporting, however, this is considered to be a non-recurring issue given the nature of the grant. Anticipated Completion Date: December 2023 Finding 2023-003 Finding Summary: Eide Bailly LLP identified two instances where meeting minutes were not posted to the Utah Public Notice Website within three days of the minutes being approved. Responsible Individuals: Cindy Lou Trishman, City Recorder Corrective Action Plan: The Recorder’s Office will adjust the process for approved minutes to be uploaded after a signature is obtained, to upload them to UPNW prior to signature completion but with approval date. The signed record with the seal will be maintained in the City’s permanent repository. Anticipated Completion Date: Training is occurring, and the implementation is immediate. Finding 2023-004 Finding Summary: The unrestricted general fund balance exceeded 35% of total revenue of the general fund. Responsible Individuals: Mary Beth Thompson, CFO Corrective Action Plan: The Finance Department has put into place a monthly projection model for both revenues and expenditures. This model will help the department monitor both the revenues received and the expenditures spent in a timely manner to ensure that the City of Salt Lake won’t be over the 35% unrestricted fund balance in the future. Anticipated Completion Date: December 2023