CITY AND COUNTY OF DENVER, COLORADO 2019 …

CITY AND COUNTY OF DENVER, COLORADO 2019 DISCLOSURE STATEMENT

For the year ended December 31, 2018

PROVIDED TO COMPLY WITH CONTINUING DISCLOSURE UNDERTAKINGS EXECUTED PURSUANT TO THE SECURITIES AND EXCHANGE COMMISSION RULE

15c2-12 IN CONNECTION WITH MUNICIPAL BONDS AND OTHER OBLIGATIONS

2019 DISCLOSURE STATEMENT Table of Contents

TRANSMITTAL LETTER FROM THE MANAGER OF FINANCE

CITY AND COUNTY OF DENVER OFFICIALS

THE CITY AND COUNTY OF DENVER, COLORADO........................................................................................... 1 General Information .................................................................................................................................................. 1 Organization .............................................................................................................................................................. 1 Government ............................................................................................................................................................... 1 Budget Policy ............................................................................................................................................................ 2 Ratings....................................................................................................................................................................... 3 Constitutional Revenue and Spending Limitations ................................................................................................... 3 General Fund ............................................................................................................................................................. 3 Major Revenue Sources. ....................................................................................................................................... 3 Major Expenditure Categories. ............................................................................................................................. 4 Management Discussion of 2019 Budget.................................................................................................................. 4 Litigation Update....................................................................................................................................................... 5 General.................................................................................................................................................................. 5 ADA Compliance Review .................................................................................................................................... 5 Adams County Litigation ..................................................................................................................................... 5 Colorado Convention Center Expansion Project .................................................................................................. 5 Great Hall Project Status ...................................................................................................................................... 5 Wastewater Enterprise Litigation ......................................................................................................................... 6 Governmental Immunity ........................................................................................................................................... 6 Management Discussion of Recent Financial Results ............................................................................................ 10 General Fund Financial Information ....................................................................................................................... 11 Collection of Taxes ................................................................................................................................................. 13 Sales and Use Taxes ................................................................................................................................................ 13 Property Taxation .................................................................................................................................................... 15 Assessed Valuation. ............................................................................................................................................ 15 Property Taxes. ................................................................................................................................................... 16 Denver Measure 2A............................................................................................................................................ 16 Assessed Valuation of Major Taxpayers. ........................................................................................................... 19

DEBT STRUCTURE OF THE CITY.......................................................................................................................... 20 General Obligation Debt ......................................................................................................................................... 20 Outstanding General Obligation Debt..................................................................................................................... 21 Excise Tax/Dedicated Tax Revenue Bonds Debt Service Coverage ...................................................................... 23 Colorado Convention Center and National Western Center............................................................................... 23 Golf Enterprise Revenue Bonds .............................................................................................................................. 25 Accounting of Capital Assets ............................................................................................................................. 25 Overlapping Debt and Taxing Entities.................................................................................................................... 29 School District No. 1 in the City and County of Denver.................................................................................... 29 Metro Wastewater Reclamation District............................................................................................................. 29 Regional Transportation District. ....................................................................................................................... 29 Urban Drainage and Flood Control District. ...................................................................................................... 29 Other Overlapping Taxing Entities..................................................................................................................... 30 City Discretionary Support Payments ..................................................................................................................... 32 General................................................................................................................................................................ 32 Denver Convention Center Hotel Authority Discretionary Economic Development Payments........................ 32 Denver Urban Renewal Authority Contingent and Discretionary Payments ..................................................... 32

PENSION PLANS ....................................................................................................................................................... 33 Denver Employees Retirement Plan........................................................................................................................ 33 Fire and Police Pension Plans ................................................................................................................................. 34

OTHER POST EMPLOYMENT BENEFITS ............................................................................................................. 35 DERP OPEB Plan ................................................................................................................................................... 35 OPEB for Collectively Bargained Agreements....................................................................................................... 35

LEASE PURCHASE AGREEMENTS........................................................................................................................ 36 Certificated Lease Purchase Agreements ................................................................................................................ 36 Certificated Lease Purchase Transactions. ......................................................................................................... 36 Non-certificated Lease Purchase Agreements......................................................................................................... 37

DENVER WATER BOARD ....................................................................................................................................... 38

WASTEWATER MANAGEMENT SYSTEM ........................................................................................................... 38 Wastewater Financial Information .......................................................................................................................... 39 Customer Information......................................................................................................................................... 39 Metro Wastewater Reclamation District............................................................................................................. 39 Account Information........................................................................................................................................... 40 Storm Drainage Service Charge. ........................................................................................................................ 40 Sanitary Sewer Service Charge. ......................................................................................................................... 41 Operating History .................................................................................................................................................... 45 Historical Wastewater Management Enterprise Fund Information. ................................................................... 45 Historical Net Pledged Revenues. ...................................................................................................................... 47 Capital Improvement Plan....................................................................................................................................... 47

THE AIRPORT SYSTEM ........................................................................................................................................... 48 Description of the Airport ....................................................................................................................................... 48 Airport System Aviation Activity ........................................................................................................................... 48 United Group ........................................................................................................................................................... 48 Special Facilities Bonds .......................................................................................................................................... 49 Southwest Airlines .................................................................................................................................................. 49 Frontier Airlines ...................................................................................................................................................... 49 Delta Airlines .......................................................................................................................................................... 49 American Airlines ................................................................................................................................................... 49 Other Passenger Airline Information ...................................................................................................................... 49 Availability of Information Concerning Individual Airlines .................................................................................. 50 Current and Potential Litigation .............................................................................................................................. 54 2018-2022 Capital Program .................................................................................................................................... 55 Major Projects in the 2018-2022 Capital Program.................................................................................................. 55 Concourse A, B, and C. ...................................................................................................................................... 55 Jeppesen Terminal. ............................................................................................................................................. 55 Great Hall Project. .............................................................................................................................................. 56 Baggage System Improvements. ........................................................................................................................ 56 Airside................................................................................................................................................................. 56 Landside.............................................................................................................................................................. 56 DEN Real Estate. ................................................................................................................................................ 56 Plan of Funding for the 2018-2022 Capital Program .............................................................................................. 56 Outstanding Bonds and Notes ................................................................................................................................. 57 Bond Issuances and Other Obligations ................................................................................................................... 59 Senior Revenue Bonds........................................................................................................................................ 59 Subordinate Revenue Bonds............................................................................................................................... 59 Commercial Paper Notes. ................................................................................................................................... 59 Subordinate Contract Obligations....................................................................................................................... 59 Subordinate Hedge Facility Obligations............................................................................................................. 59 Junior Lien Obligations ...................................................................................................................................... 59 Installment Purchase Agreements....................................................................................................................... 60 Summary Financial Information ............................................................................................................................. 60

CONTACTS FOR FURTHER INFORMATION........................................................................................................ 63

APPENDIX A: An Economic and Demographic Overview of the Denver Metropolitan Area. .............................. A-1

APPENDIX B: Executive Order No. 114 ................................................................................................................. B-1 APPENDIX C: 2018 Abstract of Assessment........................................................................................................... C-1

DENVER

THE MIU HIGH CITY

Michael B. Hancock Mayor

DEPARTMENT OF FINANCE BRENDAN J. HANLON

CHIEF FINANCIAL OFFICER

201 W. Colfax Avenue, Dept 1010 Denver, CO 80202 p: (720) 913-1514 f: (720) 913-5599 www .finance

September 6, 2019

Dear Reader:

This Disclosure Statement for the Year Ended December 31, 2018 has been prepared to comply with the City's current continuing disclosure undertakings pursuant to Rule 15c2-12 of the U.S. Securities and Exchange Commission and the Denver Mayor's Executive Order 114, first enacted in 1996, which commits the City to provide ongoing information about the City's 2018 financial condition. This Disclosure Statement also contains certain post 2018 unaudited and prospective information as noted. This Disclosure Statement must be read in conjunction with the City's Comprehensive Annual Financial Report ("CAFR"), the Wastewater Management Enterprise Fund Financial Statements, the City's Municipal Airport System Annual Financial Report and the Denver Employees Retirement Plan's CAFR. Information on where to locate these reports can be found at the end of this Disclosure Statement. It is the practice of the City to separately file Event Notices on the Municipal Securities Rule Making Board ("MSRB") Electronic Municipal Market Access system ("EMMA"). This Disclosure Statement includes all other information the City has contracted to provide on an ongoing basis.

The following is an overview of the 2018 transactions:

In February 2018, the City, for and on behalf of the Wastewater Management Division of its Department of Public Works, issued $103,050,000 Series 2018 Wastewater Enterprise Revenue Bonds to fund certain storm drainage and sanitary sewerage facilities.

In June 2018, the City issued $260,905,000 Series 20l8A-B General Obligation Bonds to fund certain Elevate Denver Bond projects approved by voters in November 2017 and to refund outstanding Series 2008 General Obligation Justice System Facilities Bonds for present value savings. After this issuance, ofthe authorized $937,418,500 ofElevate Denver Bonds, $744,418,500 of the electoral authorization remains.

In August 2018, the City entered into a lease purchase transaction. $129,000,000 of Series 2018A Certificates of Participation (COPs) were executed and delivered by the trustee to fund a portion of the Colorado Convention Center Expansion Project.

In August 2018, the City, for and on behalf of its Department of Aviation, issued $2,526,075,000 of Series 2018A-B Airport System Subordinate Revenue Bonds to fund a portion of the Airport System's capital program and to refund outstanding Series 2017C Airport System Subordinate Revenue Bonds for present value savings.

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Denver gets it done!

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