Business Overview 5

B U S I N E S S O V E R V I E W

DEVELOPMENT SCFD

Funding

CCA continues to qualify as a “Tier

II” Scientific and Cultural Facilities District (SCFD) grant recipient. SCFD distributes funds from a 1/10 of 1% sales and use tax to cultural facilities throughout the seven-county Denver metropolitan area.

Tier II organizations

receive SCFD funding based on two equal factors: 1) qualifying annual income that meets a defined threshold, and 2) paid attendance.

CCA’s SCFD

funding typically totals between $700 and $800K per year, but the impact of COVID-19 on sales tax revenue, has reduced available funding to around $510k for the year 2020/2021.

FINANCIAL OVERVIEW

INVESTMENTS

Excess cash is invested in Certificate of Deposit Account Registry Service (CDARS) and a Money Market Account at Flatirons Bank. In addition, CCA has approximately $135K invested at the Community Foundation of Boulder County. These funds are permanently restricted. The fund allows for an annual 5% distribution, which CCA generally takes.

DEBT

CCA holds a $1M loan with the Colorado Historic Fund (CHF) for the purchase of the Galey Cottage. This five-year loan (1.5% interest) had a payment of $250K scheduled for January 2021, and a balloon payment of $750k due in 2023. Due to COVID-19, CHF agreed to delay the 2021 balloon payment for one year.

In 2020, CCA also received a PPP loan for $484k and another $678k in 2021. In addition, CCA received a $150k SBA loan (2.75% interest) payable over thirty years beginning May 23, 2021.

FINANCIAL OVERVIEW

REPORTING

At each regularly scheduled board meeting, CCA staff present monthly financial statements that compare the most recent actual results with the current budget and the prior year. These statements typically include an income statement, balance sheet, cash flow statement, reserve analysis and an update on capital spending.

In June or July, staff also begins "reforecasting" the entire year. Monthly results are then compared with the most recent reforecast, as well as the annual budget.

The Finance Committee reviews the financial statements and directs any questions and/or concerns to staff before the statements go to the full board, where they are reviewed again.

Each year, staff also prepares an annual report for the City of Boulder and an annual report for the membership.