Computation of the General Obligation Debt Margin ($ in thousands) TOTAL ESTIMATED ACTUAL PROPERTY VALUATION $134,976,735

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Blaise Curtis Warren
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1 Debt Service Funds

2 Long Term Debt and Lease Obligations Provided herein is an overview of long-term debt and lease obligations, which addresses the methods used by the City and County of Denver to finance certain capital projects, including property and equipment. Included in this overview is information about General Obligation and Revenue Bonds and lease purchase agreements, including Certificates of Participation (COPs). Any information in this section dated after December 31, 2016 is estimated and unaudited. Since May 2010, the City s General Obligation Bonds have been rated AAA, the highest bond rating, by all three major national credit ratings agencies. These strong ratings will attract investors and help lower the cost to taxpayers when the City borrows money. General Obligation Bonds General Obligation Bonds are backed by the full faith and credit of the City and are payable from ad valorem property taxes and other general revenues. Except for refunding bonds issued to achieve savings, Denver voters must approve general obligation debt prior to issuance. Since 2009, the City has issued $549,730,000 of General Obligation Bonds for the Better Denver Bond Projects authorized by Denver voters in In November 2017, Denver voters authorized $937,418,500 of new Our Denver General Obligation Bonds to be issued to address a wide variety of infrastructure improvements citywide. Debt Limitations The City Charter limits general obligation bonded debt, excluding self-supporting water bonds, to three percent of the actual value of taxable property within the City. The following schedule sets forth the computation of the general obligation debt margin of the City as of August 25th, Note that the Our Denver General Obligation Bond authorization mentioned above is not included in the following schedules as the timing and amounts of future bond issuances have not yet been determined as of the final production of the 2018 budget book. Computation of the General Obligation Debt Margin ($ in thousands) TOTAL ESTIMATED ACTUAL PROPERTY VALUATION $134,976,735 Maximum general obligation debt allowed (3 percent of total valuation) $4,049,302 Outstanding bonds chargeable to limit 661,776 Less amount reserved for long-term debt in fund balance 29,356 Net chargeable to bond limit 632,420 LEGAL DEBT MARGIN $3,416,882 Percent of Charter limit 15.62% 229

3 Long Term Debt and Lease Obligations Existing Debt On March 9, 2017, the City deposited $50,985,000 in escrow sufficient to decease the outstanding General Obligation Better Denver Bonds, series 2010D and series 2011A. It is expected that the City s outstanding general obligation debt as of December 31, 2017 will consist of the following: Date Outstanding 2007 Justice System Facilities (Mini-Bonds) 2022 *8,860, Justice System Facilities Bonds ,615, A Better Denver and Zoo Bonds ,350,000 Date Outstanding 2010B Better Denver Bonds (Build America Bonds) ,835, A Better Denver & Refunding Bonds ,010, B1 General Obligation Refunding Bonds ,385, B2 General Obligation Refunding Bonds ,720, A Better Denver Mini-Bonds 2028 *12,000,000 Total General Obligation Bonds $661,775,500 * outstanding does not include compound interest of $5,774,000 and $1,989,000 on the Series 2007 and 2014A mini-bonds, respectively. Indicators Related to General Obligation Debt Burden Outstanding general obligation debt $661,775,500 Total Estimated Actual Value* $134,976,735,062 Net Assessed Value* $16,437,055,896 Population (US Department of Commerce) 693,060 Ratio of net direct general obligation debt to actual value 0.47% Ratio of net direct general obligation debt to net assessed value3.85% Net direct general obligation debt per capita $ *From 2017 Preliminary Certification for Valuation by County Assessor 230

4 Long Term Debt and Lease Obligations Revenue Bonds Revenue Bonds are payable from a specific, dedicated source of revenue which does not pledge the full faith and credit of the City. Denver s various types of revenue bonds are described below. There are no City Charter limitations stipulating maximum revenue bond debt. Excise Tax Revenue Bonds The majority of Denver s non-airport Revenue Bond issues are backed by certain excise taxes (portions of the City s Lodgers tax and sales tax on short-term auto rentals and prepared food and beverages). It is expected that the City s outstanding excise tax bonds as of December 31, 2017 will consist of the following: Date Outstanding 2016A Dedicated Tax Revenue Refunding & Improvement Bonds ,500, B Dedicated Tax Revenue Refunding & Improvement Bonds (taxable) ,975,000 Total Excise Tax Bonds $351,475,000 The Series 2016A and 2016B Dedicated Tax Revenue Refunding and Improvement Bonds were issued to refund all of the Series 2005 and 2009A Excise Tax Revenue Refunding Bonds as well as finance a portion of the construction and improvement costs of the National Western Center campus and the Colorado Convention Center. The Series 2005 Excise Tax Revenue Bonds were originally issued to refinance a portion of the Series 2001A Bonds, which, in addition to the Series 2001B Excise Tax Revenue Bonds, were originally issued to finance the expansion improvements to the Colorado Convention Center. The Series 2009A Excise Tax Revenue Refunding Bonds were originally issued to refinance the Series 2001B Excise Tax Bonds. Airport System Revenue Bonds As of December 31, 2016, the outstanding Airport System Revenue Bonds totaled $3,890,895,000 and have multiple maturities that range from 2017 to The bonds were issued to finance the construction of and capital projects at the airport and to refinance earlier bond issues. The bonds are payable solely from revenues derived by the Airport System and the City, through its Department of Aviation, has pledged future Airport system Net Revenues, as defined in the 1984 Airport System General Bond Ordinance and the 1990 Airport System Subordinate Bond Ordinance. It is expected that the outstanding Airport System Revenue bonds will total $3,716,850,000 as of December 31, Wastewater Revenue Bonds In January 2012, the City issued $50,425,000 of Series 2012 Wastewater Revenue Bonds on behalf of the Wastewater Management Enterprise Fund of the City s Department of Public Works to finance improvements to the City s Storm Drainage Facilities and to refund the remaining $20,350,000 of outstanding Series 2002 Wastewater Revenue Bonds. The bonds are payable solely from revenues derived by the City from the operation of its storm drainage and sanitary sewer facilities. The bonds mature in In November 2016, the City issued $115 million of Series 2016 Wastewater Revenue Bonds on behalf of the Wastewater Management Enterprise Fund to finance the Platte to Park Hill storm drainage project. The bonds will mature in As of December 31, 2017, $147,880,000 of Wastewater Revenue bonds are expected to be outstanding. 231

5 Golf Enterprise Revenue Bonds Long Term Debt and Lease Obligations In March 2006, on behalf of the Golf Enterprise of the City s Department of Parks and Recreation, the City issued $7,365,000 of Golf Enterprise Revenue Bonds. The bonds are payable solely from revenues derived by the City from the operation of its golf facilities. The bonds mature in 2020, and as of December 31, 2017, the outstanding principal on the bonds is expected to be $1,865,000. Lease Purchase Agreements The City has used lease purchase agreements to facilitate the financing of certain public capital projects and capital equipment. The leases are subject to annual appropriation by the City Council and do not constitute a general obligation or other indebtedness of the City within the meaning of any constitutional, statutory, or Charter debt limitations. The City s obligation to make payments relating to its various leases is contingent upon the City appropriating the rental payments for the then- current fiscal year. In the event of non- appropriation, the lease terminates, and the pledged asset is liquidated to the benefit of the lease holders. As of December 31, 2016, the principal portions of base rentals under the lease purchase agreements, not including enterprise funds, were $375,112,260. Of this amount, $365,856,806 was attributable to certificated lease purchase agreements, and $9,255,454 was attributable to non-certificated capital leases. On February 16, 2017, the City issued $15,506,673 of refunding Certificates of Participation, series 2017A to advance refund the outstanding series 2008B Certificates of Participation to achieve interest cost savings for the Denver Botanic Gardens. Certificated Lease Purchase Agreements Certificates of Participation (COPs) have been executed and delivered in conjunction with various lease purchase agreements discussed in the paragraph above. Principal outstanding on COP transactions as of December 31, 2017 is expected to consist of the following: Lease Purchase Agreements Date Outstanding Series 2005A Human Services Center ,075,000 Series 2008A1-3 Wellington E. Webb Office Bldg ,585,000 Series 2010A Central Platte Campus ,620,000 Series 2010B Wastewater Office Building/ Roslyn Maintenance Facility ,750,000 Lease Purchase Agreements Date Outstanding Series 2012A Cultural Center Parking Garage ,180,000 Series 2012C1-3 Police Stations and other Denver Properties *31,354,444 Series 2013A Buell Theater Properties ,310,000 Series 2015 Fire Station & Library Facilities ,400,000 Series 2017A Denver Botanic Gardens Refunding ,506,673 TOTAL $375,112,260 *Does not include $5,685,556 attributable to Wastewater Management Enterprise Fund The estimated 2017 payments for all certificated lease purchase agreements, including swap payments associated with the Series 2008A COPs, are $37,201,117. Of the total payments approximately $26,146,975, is paid from the General Fund or Capital Improvement Funds, $9,195,605 from special revenue funds or non-general Fund/ capital fund sources, and $1,858,538 from sources outside the City. The $26,146,975 in payments from General Fund and Capital Improvement Funds represents approximately 1.8 percent of the combined projected revenues for those funds. 232

6 General Obligation Bonds Schedule Financial Resources 2016 Actuals 2017 Estimated 2018 Recommended Property Taxes 110, , ,083 Investment and Interest Income 1,007 1,213 1,445 Miscellaneous Other 5,554 5,548 5,489 Total $116,941 $118,574 $144,017 Use of Resources Bond Counsel & Financial Services Principal Payments - Bond 54,270 54,025 57,045 1 Interest Payments - Bond 36,759 33,292 30,113 1 Payment to Escrow 0 50,985 0 Total $91,041 $138,313 $87,169 Excess of Revenues Over (under) Expenditures $25,901 $31,246 $56,848 Other Financing Sources (Uses) General Obligation Bonds Issued Transfer In Total $0 $0 $0 Net Increase (Decrease) in Fund Balance 25,901 (19,739) 56,848 Fund Balance January 1 47,732 73,633 53,894 Fund Balance December 31 73,633 53, ,742 *Dollars in Thousands 1 In November 2017, Denver voters authorized $937,418,500 of new Our Denver General Obligation Bonds to be issued to address a wide variety of infrastructure improvements citywide. The City currently expects the first bond issuance under this authorization to occur in However, 2018 figures do not include any bond issuance(s) under the Our Denver General Obligation Bond authorization given the timing and amounts of future bond issuances have not yet been determined. 233

7 Excise Tax Revenue Bonds Schedule Financial Resources 2016 Actuals 2017 Estimated 2018 Recommended Sale and Use 40,543 41,719 43,095 Lodgers 39,269 41,547 42,253 Interest Income ,058 Use of Resources Total $80,549 $84,153 $86,406 Bond Counsel & Financial Services Principal Payments - Bond 22,350 23,485 22,090 Interest Payments - Bond 9,291 14,143 13,509 Bond Issuance Costs Total $32,509 $37,631 $35,603 Excess of Revenues Over (under) Expenditures $48,040 $46,522 $50,803 Other Financing Sources (Uses) Bond Premium 12, Bond Proceeds - Refunding 193, Payment to Refunding Escrow (193,979) 0 0 Transfers Out (23,322) (39,804) (47,519) Total ($11,352) ($39,804) ($47,519) Net Increase (Decrease) in Fund Balance $36,688 $6,718 $3,284 Fund Balance January 1 $25,380 $62,068 $68,786 Fund Balance December 31 $62,068 $68,786 $72,071 *Dollars in thousands *In 2016, the City issued Series 2016A-B Dedicated Tax Revenue Bonds to fund the initial costs of the National Western Center and Colorado Convention Center improvements as well as to advance refund all of the outstanding Series 2005A and 2009A Excise Tax Revenue Bonds. The City pledged the excise tax base and excise tax increase revenues previously pledged to the 2005A and 2009A Bonds to the repayment of the 2016A-B Bonds as well as additional revenues that were not pledged to the repayment of the 2005A and 2009A Bonds. These additional revenues, consisting of 3.25% portion of Lodger s Tax and 3.5% portion of Auto Rental Tax, were not needed in 2016 and are not expected to be needed in 2017 and 2018 to fulfill the debt service payments on the Series 2016A-B Bonds. They are therefore not included in this schedule as they are reclassified to the General Fund each month after the debt service requirement is fulfilled. These additional revenues totaled $24,969,000 and $21,664,000, respectively, in

Primary Government Net Position

Primary Government Net Position Statistical (Unaudited) 171 Net Position by Component Last Ten Fiscal Years (dollars in thousands - accrual basis of accounting) Governmental activities Net investment in capital assets $ 1,238,768 $ 1,188,810