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Home My Public Portal About2015 PAFRCity of Jefferson Missouri Popular Annual Financial Report For the ﬁscal year ended October 31, 2015 A Message from the Director of Finance City of Jefferson CiƟzens, In our ongoing effort to inform the City of Jefferson ciƟzens about the state of the city ﬁnances, we are pleased to present the 2015 Popular Annual Financial Report (PAFR). The report is reﬂecƟve of our commitment to preserving the city’s long‐ term ﬁnancial health and is intended to summarize the ﬁnancial acƟviƟes of the City’s funds reported in more detail in the Comprehensive Annual Financial Report (CAFR). It contains informaƟon only from selected funds and excludes the City’s component unit. A copy of the CAFR is available on the city’s website at www.jeffersoncitymo.gov/government/cafr.php. To the best of our knowledge, the informaƟon presented herein is accurate in all material respects and presents fairly the ﬁnancial posiƟon and results of operaƟons for the ﬁscal year ending October 31, 2015. Responsibility for the accuracy, completeness and fairness of the data presented rests solely with the city. A special thank you goes out to the Finance Department staff whose hard work and diligence made this possible. The PAFR is prepared in accordance with the Government Finance Officers AssociaƟon standards. We hope you ﬁnd this report informaƟve and we welcome your comments and quesƟons. CiƟzens may keep apprised of the state of the city ﬁnances by reviewing the monthly ﬁnancial reports posted to the city website at www.jeffersoncitymo.gov/government/ ﬁnancial_reports.php. Respecƞully SubmiƩed, Margie Mueller, CPA Director of Finance and InformaƟon Technology Services Page 1 ‐ City of Jefferson Popular Annual Financial Report 2015 Table of Contents City History 2 Notable Achievement 2 The Governing Body 3 City Demographics 4 Economic StaƟsƟcs 4 By the Numbers 5‐6 Financial AcƟvity Statements 7 Where Does the Money Come From? 8 Where Does the Money Go? 9 Which Agencies Share Sales Tax Revenue? 10 Sales Tax Rate Comparison 10 Where Does Property Tax Go? 11 Authorized Full Time City Staff 11 Outstanding Debt 11 Financial ReporƟng Awards 12 How to Obtain a Copy of the CAFR 13 City of Jefferson History The City of Jefferson is the capital of Missouri and the county seat of Cole County. Located on the banks of the Missouri River in the center of the State, the City of Jefferson is the hub of state government which is the City’s largest employer and its major industry. The City was established by an act of the U.S. Congress on December 31, 1821 and was originally laid out by Daniel M. Boone, son of the famous pioneer, and Major Elias BancroŌ. It has the disƟncƟon of being located on land donated by the federal government for establishment of the state capital city. Many of the original seƩlers came from Virginia in the vicinity of MonƟcello, the home of Thomas Jefferson, and were, in fact, friends of the former President. The City of Jefferson, named in his honor, was incorporated in 1825, four years aŌer its founding. The City of Jefferson operates under the ConsƟtu‐ Ɵon and laws of Missouri, and a City Charter adopted in 1986. Page 2 ‐ City of Jefferson Popular Annual Financial Report 2015 Winner of 2013 Best Small Towns— America’s Most Beautiful Small Town Judges’ Take: “Jefferson City’s essay used colorful language to bring out the beauty and charm of the town, from its proud historical connec- tions to its lovely capitol and other elegant buildings.” Watch our winning video at hƩp://www.jeffersoncitymo.gov/watch_our_winning_video_here.php Rick Prather Jim Branch J. Rick Mihalevich Laura A. Ward Ken Hussey Bob Scrivner Glen Costales Carlos M. Graham Larry Henry Mark Schreiber Carrie Tergin, Mayor W A R D 1 W A R D 2 W A R D 3 W A R D 4 W A R D 5 Page 3 ‐ City of Jefferson Popular Annual Financial Report 2015 The Governing Body Steven S. Crowell, City Administrator City of Jefferson Ward Map City Demographics and Economic Statistics Year Incorporated: 1825 Form of Government: Mayor‐Council‐City Administrator LocaƟon: Central Missouri Total Land Size: 37.58 square miles in both Cole and Callaway CounƟes PopulaƟon of City of Jefferson: 43,079 (2010 Census) Company Employees State of Missouri 14,208 Jefferson City Public Schools 1,556 ScholasƟc, Inc. 1,400 Capital Region Medical Center 1,398 SSM Health—St. Mary’s Hospital 1,070 Central Bancompany 918 ABB Power T & D Company 653 Jefferson City Medical Group 644 Wal‐Mart Supercenter 631 Quaker Window Products 541 City of Jefferson Top 10 Employers 7,637 7,525 7,462 7,597 7,698 8,039 8,017 8,163 8,231 8,284 7,000 7,200 7,400 7,600 7,800 8,000 8,200 8,400 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 School Enrollment 3.5%3.6%3.9% 4.5% 6.7%6.6%6.1% 5.1% 4.8% 3.9% 3.4% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Unemployment Rate $57,268 Median Household Income 38.3 Median Age Page 4 ‐ City of Jefferson Popular Annual Financial Report 2015 BY THE NUMBERS Page 5 ‐ City of Jefferson Popular Annual Financial Report 2015 2015 2014 Number of Stations 5 5 Number of Fire Calls Answered 4,630 4,582 Number of Inspections Conducted 1,627 733 POLICE DEPARTMENT 2015 2014 Police Calls for Service 67,067 65,888 Crimes Reported 4,263 4,210 Arrests/Detentions 5,254 4,366 Number of Patrol Units 34 34 FIRE DEPARTMENT 2015 2014 Center Line Miles of Streets 253 253 Number of Snow Removal Hours 1,875 4,337 STREET DEPARTMENT BY THE NUMBERS Average Daily Number of Wastewater Gallons Treated 2015 — 5,897,000 2014—5,890 000 Business licenses issued (new & renewal) 2015 — 2,970 2014 — 2,991 Number of permits issued (building, electrical, plumbing, sign and demolition) 2015 — 946 2014 — 1,041 Page 6 ‐ City of Jefferson Popular Annual Financial Report 2015 Number of playgrounds 2015 — 13 2014 — 13 Number of Parks 2015 — 18 2014 — 17 Financial Activity Statements for Years Ended O c t o b e r 3 1 , 2 0 1 4 a n d O c t o b e r 3 1 , 2 0 1 5 Enterprise Funds ‐ The ﬁnancial acƟviƟes for the Airport, Parking, Transit and Wastewater are recorded in enterprise funds for the City of Jefferson and are ﬁnanced primarily by user fees and charges for services provided to ciƟzens. Currently the Parking and Wastewater funds are self‐sufficient, while the Airport and Transit funds receive a subsidy from the City of Jefferson’s general fund. Governmental Funds ‐ Governmental acƟviƟes, which normally are supported by taxes and intergovernmental revenues, are recorded in governmental funds for the City of Jefferson. City of Jefferson major governmental funds include the General Fund, the Parks Fund, and Capital Improvements Sales Tax Funds. The City of Jefferson also has several nonmajor governmental funds including the Police Training Fund, the Lodging Tax Fund, the Stoneridge TDD Fund, the JC Veterans Plaza Trust Fund, the City Hall Art Trust Fund, the USS Submarine Trust Fund, the Woodland Cemetery Trust Fund, and the Firemen’s Pension Fund. The City’s basic services, including police, ﬁre, streets, public works, and planning and protecƟve services are accounted for in these funds, as are administraƟve services within the city such as human resources, ﬁnance, and informaƟon technologies. Revenues 2015 2014 Sales and other user taxes $22,628,475 $21,125,412 Property taxes $5,261,508 $5,190,969 Utility/Franchise taxes $7,295,904 $7,670,316 License, permits and fees $760,615 $828,254 Intergovernmental $4,608,038 $5,642,708 Charges for services $4,432,834 $4,000,927 Fines and forfeitures $1,023,787 $1,008,406 Governmental Funds Contributions $176,879 $209,725 Miscellaneous $389,478 $297,817 Investment earnings $361,156 $352,551 Total Revenues $46,938,674 $46,327,085 Expenditures by Function 2015 2014 General government $5,725,817 $5,940,300 Public safety $16,026,365 $15,871,211 Community development $6,969,904 $8,537,749 Cultural and recreation $5,572,731 $5,400,290 Capital outlay $7,025,382 $8,902,901 Debt service (principal and interest) $0 $391,801 Total Expenditures $41,320,199 $45,044,252 Other Financing Sources (Uses): 2015 2014 Proceeds from sale of assets $77,729 $48,010 Transfers in $32,944 $23,122 Transfers out $(1,548,218) $(855.212) Net Change in Fund Balances $4,180,930 $498,753 Fund Balances, beginning $20,554,779 $20,056,026 Fund Balances, ending $24,735,709 $20,554,779 Enterprise Funds Revenues 2015 2014 Airport revenues $181,726 $132,126 Parking revenues $1,137,191 $1,088,052 Transit revenues $255,445 $259,635 Wastewater revenues $10,154,871 $9,581,526 Total Operating Revenues $11,729,233 $11,061,339 Operating Expenses 2015 2014 Airport expenses $635,716 $611,165 Parking expenses $850,836 $849,525 Transit expenses $2,841,310 $2,696,652 Wastewater expenses $8,282,057 $7,670,814 Total Operating Expenses $12,609,919 $11,828,156 Non‐Operating Revenues (Expenses) 2015 2014 Intergovernmental $1,147,824 $1,131,889 Interest and investment revenue $1,281,939 $1,335,880 Interest expense and fees $(2,062,291) $(1,653,983) Debt issuance cost $0 $(300,299) Total Non‐Operating Revenues (Expenses) $267,994 $623,126 Gain/(Loss) on sale of capital assets $(99,478) $109,639 Income (loss) before contributions and transfers $(612,692) $(143,691) Capital contributions $5,902,401 $1,082,360 Transfers in $1,525,275 $832,090 Transfers out $(10,000) $0 Change in Net Position $6,804,984 $1,770,759 Net Position, beginning $61,801,633 $60,667,606 Cumulative change in accounting principle $1,744,379 $(636,732) Net Position, beginning‐as restated $63,546,012 $60,030,874 Net Position, ending $70,350,996 $61,801,633 Page 7 ‐ City of Jefferson Popular Annual Financial Report 2015 Where does the money come from? Governmental Funds Revenues 2015 Sales and other user taxes $22,628,475 Property taxes $5,261,508 UƟlity/Franchise taxes $7,295,904 License, permits and fees $760,615 Intergovernmental $4,608,038 Charges for services $4,432,834 Fines and forfeitures $1,023,787 Investment earnings $361,156 ContribuƟons $176,879 Miscellaneous $389,478 Total Revenues $46,938,674 Sales and other user taxes, 48.2% Property taxes, 11.2% Utility/Franchise taxes, 15.5% License, permit and fees, 1.6% Intergovernmental, 9.8%Charges for services, 9.4% Fines and forfeitures, 2.2% Investment earnings, 0.8% Contributions, 0.4% Miscellaneous, 0.8% Taxes generate a majority of the City’s revenue and 48.2% is generated by taxes levied for sales and other user taxes. The City’s sales taxes include 1% general fund sales tax, a 1/2% capital improvement sales tax, and a 1/2% parks sales tax Intergovernmental revenues represent 9.8% of the City’s total revenue and includes motor vehicle sales tax and license fees, the receipts from the State for fuel tax, as well as cigareƩe taxes and grant funds. Charges for services include fees charged by Parks and RecreaƟons as well as charges for various city services including, but not limited to, street cuts, Cole County 911 services, and Cole County Animal Rescue. Fines and forfeitures include ﬁnes collected by Municipal Court. License, permit and fees includes revenues from building, plumbing, and electrical permits, as well as business and liquor licenses and food inspecƟon fees. Investment earnings includes revenue earned from the investment of idle City funds throughout the year in accordance with the City’s investment policy. ContribuƟons include revenue donated from ciƟzens to various City programs, as well as revenues received as part of exisƟng Page 8 ‐ City of Jefferson Popular Annual Financial Report 2015 contracts intended to assist in maintaining certain infrastructure. Miscellaneous revenue includes proceeds from insurance claims. General government 14% Public safety 39% Community development 17% Cultural and recreation 13% Capital outlay 17% 2015 Governmental Funds ‐Expenditures by Function The expenditures for governmental acƟviƟes totaled $41,320,199 for 2015. The largest category of expenditure is for Public Safety and represents 38.8% of all governmental acƟviƟes. Public safety includes all operaƟons of the Police and Fire departments. Capital outlay expenses are 17.0% of the total and include all capital purchases and capital projects of the governmental funds. Community development expenditures include expenditures for Public Works and Planning and ProtecƟve Services, including Streets and Central Maintenance. General government expenditures include AdministraƟon, Law, Municipal Court, Human Resources, Finance, and InformaƟon Technology. Cultural and RecreaƟon expenditures include Parks AdministraƟon and all Parks faciliƟes and programs. Governmental Funds Expenditures by FuncƟon 2015 General government $5,725,817 Public safety $16,026,365 Community development $6,969,904 Cultural and recreaƟon $5,572,731 Capital outlay $7,025,382 Total Expenditures $41,320,199 Where does the money go? Page 9 ‐ City of Jefferson Popular Annual Financial Report 2015 Debt service includes principal and interest payments for the City’s outstanding notes and leases. Which agencies share sales tax revenue? State of Missouri, 4.225% City of Jefferson ‐ General, 1.0% City of Jefferson ‐ Capital Improvement, 0.5% City of Jefferson ‐ Parks, 0.5% Cole County, 1.5%Total sales tax collected in the City of Jefferson is 7.725% Breakdown of Sales Tax Rate The City’s sales tax rate of 7.725% is comparable to surround‐ ing ciƟes and is divided among 3 different taxing enƟƟes. The State of Missouri receives 4.225%, Cole County receives 1.5%, and the City of Jefferson receives 2%. Of the City’s 2% sales tax, 1% is for the General Fund operaƟons, 0.5% is for the Capital Improvements Sales Tax Fund, and 0.5% is for the Parks Fund. The total sales tax the City received in ﬁscal year 2015 was $21,376,531. Municipality Sales Tax Rate Columbia, MO 7.975% Lake Ozark, MO 8.225% Linn, MO 7.475% California, MO 7.975% Sales tax rate comparison Ashland, MO 7.975% Eldon, MO 8.125% Holts Summit, MO 8.725% Page 10 ‐ City of Jefferson Popular Annual Financial Report 2015 Where does property tax go? 422 426 426 411 412 400 410 420 430 2011 2012 2013 2014 2015 Authorized Full Time City Staff Authorized full Ɵme equivalent employees increased by 1 in the ﬁscal year 2015 budget due to the reclassiﬁca‐ Ɵon of a part‐Ɵme with beneﬁts Bus Driver/Service Worker to a full‐Ɵme Bus Driver within the Public Works Transit Division. In FY 2014, staffing decreased due to eliminaƟng some vacated posiƟons from the budget when the City offered a SeparaƟon IncenƟve Program to eligible staff the previous ﬁscal year. Staffing increased in FY 2012 due to the addiƟon of 1 Police Officer, 2 Customer Service RepresentaƟves in the Finance department, and an Electronic Records Manager in the InformaƟon Technology department. Outstanding Debt 2011‐2015 $40,697,896 $38,580,394 $44,995,309 $58,430,479 $55,642,805 $‐ $20,000,000 $40,000,000 $60,000,000 $80,000,000 2011 2012 2013 2014 2015 Outstanding Debt as of 10/31/15 The outstanding debt at the end of ﬁscal year 2015 totaled $55,642,805 and was all associated with Wastewater Sewerage System Revenue Bonds. During the 2015 ﬁscal year the City issued an addiƟonal $290,696 in Wastewater Sewerage System Revenue Bonds and reƟred $2,984,000 in Wastewater Sewerage System Revenue Bond principal payments. Page 11 ‐ City of Jefferson Popular Annual Financial Report 2015 A City of Jefferson homeowner with a home that has a $150,000 market value paid $1,400.60 in real estate taxes in 2015 with 11.32% going to the City of Jefferson. Financial Reporting AwardsFinancial Reporting Awards The Government Finance Officers AssociaƟon of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial ReporƟng to the City of Jefferson for the ﬁscal year ended October 31, 2014. This is the ﬁrst year that the city has received this award. The Award for Outstanding Achievement in Popular Annual Financial ReporƟng is a presƟgious naƟonal award recognizing conformance with the highest standards for preparaƟon of state and local government popular reports. In order to receive the Award, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creaƟvity, presentaƟon, understandability, and reader appeal. An Award is valid for a period of one year only. We believe that our current report conƟnues to conform to the Popular Annual Financial ReporƟng requirements, and we are submiƫng it to the GFOA for review. Award for Outstanding Achievement in Popular Annual Financial ReporƟng CerƟﬁcate of Achievement for Excellence in Financial ReporƟng AddiƟonally, the GFOA awarded a CerƟﬁcaƟon of Achievement for Excellence in Financial ReporƟng to the City of Jefferson for it’s Comprehensive Annual Financial Report (CAFR) for the ﬁscal year ended October 31, 2014. This was the 19th consecuƟve year that the city has received this presƟgious naƟonal award. In order to be awarded a CerƟﬁ‐ cate of Achievement, the City must publish an easily readable and efficiently organized CAFR. This report must saƟsfy both generally accepted accounƟng principles and applicable legal requirements. A CerƟﬁcate of Achievement is valid for a period of one year only. We believe that the current comprehensive annual ﬁnancial report conƟnues to conform to the CerƟﬁcaƟon of Achievement Program’s requirements and we are submiƫng it to the GFOA for review. DisƟnguished Budget PresentaƟon Award Finally, the GFOA presented a DisƟnguished Budget PresentaƟon Award to the City for its Annual Budget for the ﬁscal year beginning November 1, 2014. This is the ﬁrst year that the city has received this presƟgious award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operaƟons guide, as a ﬁnancial plan, and as a communicaƟon device. This award is valid for a period of one year only. We believe our current annual budget document conƟnues to conform to program requirements, and we have submiƩed it to the GFOA to determine its eligibility for another award. Page 12 ‐ City of Jefferson Popular Annual Financial Report 2015 The informaƟon in the City of Jefferson Popular Annual Financial Report is taken from the City of Jefferson Comprehensive Annual Financial Report (CAFR). A copy of the more detailed Comprehensive Annual Financial Report (CAFR) is available online at www.jeffersoncitymo.gov/government/cafr.php City of Jefferson 320 E. McCarty Street Jefferson City, MO 65101 573‐634‐6320 phone 573‐634‐6329 fax www.jeffersoncitymo.gov City of Jefferson, Missouri Page 13 ‐ City of Jefferson Popular Annual Financial Report 2015