The URL can be used to link to this page

Home My Public Portal About2016 PAFRCity of Jefferson Missouri Popular Annual Financial Report For the ﬁscal year ended October 31, 2016 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 of Jefferson ﬁnances, we are pleased to present the 2016 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 that are 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, 2016. 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 2016 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 7‐8 Where Does the Money Come From? 9 Where Does the Money Go? 10 Which Agencies Share Sales Tax Revenue? 11 Sales Tax Rate Comparison 11 Where Does Property Tax Go? 12 Authorized Full Time City Staff 12 Outstanding Debt 12 Financial ReporƟng Awards 13 How to Obtain a Copy of the CAFR 14 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 2016 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 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 2016 The Governing Body Steven S. Crowell, City Administrator City of Jefferson Ward Map Erin Wiseman 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 14,223 Capital Region Medical Center 1,573 ScholasƟc, Inc. 1,500 Jefferson City Public Schools 1,489 SSM Health—St. Mary’s Hospital 1,154 Central Bancompany 967 ABB Power T & D Company 775 Jefferson City Medical Group 633 Wal‐Mart Supercenter 622 Unilever 510 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 8,079 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 2016 School Enrollment 3.5%3.6%3.9% 4.5% 6.7%6.6%6.1% 5.1% 4.8% 3.9% 3.4% 3.40% 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 2016 Unemployment Rate $47,236 Median Household Income 38.4 Median Age Page 4 ‐ City of Jefferson Popular Annual Financial Report 2016 BY THE NUMBERS Page 5 ‐ City of Jefferson Popular Annual Financial Report 2016 2016 2015 Number of Stations 5 5 Number of Fire Calls Answered 5,060 4,630 Number of Inspections Conducted 1,195 1,627 POLICE DEPARTMENT 2016 2015 Police Calls for Service 67,986 67,067 Crimes Reported 4,130 4,263 Arrests/Detentions 5,714 5,254 Number of Patrol Units 34 34 FIRE DEPARTMENT 2016 2015 Center Line Miles of Streets 253 253 Number of Snow Removal Hours 1,100 1,875 STREET DEPARTMENT BY THE NUMBERS Average Daily Number of Wastewater Gallons Treated 2016 — 8,877,000 2015 — 5,897 000 Business licenses issued (new & renewal) 2016 — 2,899 2015 — 2,970 Number of permits issued (building, electrical, plumbing, sign and demolition) 2016 — 1,050 2015 — 946 Page 6 ‐ City of Jefferson Popular Annual Financial Report 2016 Number of playgrounds 2016 — 13 2015 — 13 Number of Parks 2016 — 18 2015 — 18 Financial Activity Statements for Years Ended O c t o b e r 3 1 , 2 0 1 4 , 2 0 1 5 , a n d 2016 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 non‐major governmental funds including the Police Training Fund, the Lodging Tax Fund, the JC Veterans Plaza Trust Fund, the City Hall Art Trust Fund, the USS Submarine Trust Fund, and the Woodland Cemetery Trust 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 2016 2015 Sales and other user taxes $23,015,744 $22,628,475 Property taxes $5,267,657 $5,261,508 Utility/Franchise taxes $7,258,960 $7,295,904 License, permits and fees $818,420 $760,615 Intergovernmental $4,423,255 $4,608,038 Charges for services $4,741,235 $4,432,834 Fines and forfeitures $951,585 $1,023,787 Governmental Funds Contributions $317,104 $176,879 Miscellaneous $672,367 $389,478 Investment earnings $406,004 $361,156 Total Revenues $47,872,331 $46,938,674 2014 $21,125,412 $5,190,969 $7,670,316 $828,254 $5,642,708 $4,000,927 $1,008,406 $352,551 $209,725 $297,817 $46,327,085 Expenditures by Function 2016 2015 General government $5,473,387 $5,725,817 Public safety $16,510,754 $16,026,365 Community development $7,373,632 $6,969,904 Cultural and recreation $6,037,672 $5,572,731 Capital outlay $12,479,889 $7,025,382 Total Expenditures $47,875,334 $41,320,199 2014 $5,940,300 $15,871,211 $8,537,749 $5,400,290 $8,902,901 $45,044,252 Debt service (principal and interest) $0 $0 $391,801 Other Financing Sources (Uses): 2016 2015 Proceeds from sale of assets $377,208 $77,729 Transfers in $202,647 $32,944 Transfers out $(1,688,481) $(1,548,218) Net Change in Fund Balances $(1,111,629) $4,180,930 Fund Balances, beginning $24,735,709 $20,554,779 Fund Balances, ending $23,624,080 $24,735,709 2014 $48,010 $23,122 $(855,212) $498,753 $20,056,026 $20,554,779 Page 7 ‐ City of Jefferson Popular Annual Financial Report 2016 There was a signiﬁcant increase in miscellaneous revenue from 2015 to 2016 related to insurance claim proceeds for the Ice Arena. During FY16 there were two ﬂood claims for the Ice Arena that resulted aŌer severe weather incidents. AddiƟonally there was a signiﬁcant increase in capital outlay expenditures due to an increase in signiﬁcant Parks and RecreaƟon capital pro‐ jects, such as athleƟc ﬁeld improvements, playgrounds and lighƟng, Ellis Porter pool rehab, and construcƟon of the mulƟpurpose building. Financial Activity Statements for Years Ended O c t o b e r 3 1 , 2 0 1 4 , 2 0 1 5 a n d 2016 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. Enterprise Funds Revenues 2016 2015 Airport revenues $189,301 $181,726 Parking revenues $1,159,282 $1,137,191 Transit revenues $258,358 $255,445 Wastewater revenues $10,856,410 $10,154,871 Total Operating Revenues $12,463,351 $11,729,233 2014 $132,126 $1,088,052 $259,635 $9,581,526 $11,061,339 Operating Expenses 2016 2015 Airport expenses $640,626 $635,716 Parking expenses $862,891 $850,836 Transit expenses $2,862,876 $2,841,310 Wastewater expenses $8,711,164 $8,282,057 Total Operating Expenses $13,077,557 $12,609,919 2014 $611,165 $849,525 $2,696,652 $7,670,814 $11,828,156 Non‐Operating Revenues (Expenses) 2016 2015 2014 Intergovernmental $1,130,405 $1,147,824 $1,131,889 Interest and investment revenue $1,187,180 $1,281,939 $1,335,880 Interest expense and fees $(1,922,326) $(2,062,291) $(1,653,983) Debt issuance cost $(173,551) $0 $(300,299) Gain/(Loss) on sale of capital assets $117,746 $(99,478) $109,639 Total Non‐Operating Revenues (Expenses) $339,454 $267,994 $623,126 Income (loss) before contributions and transfers $(274,752) $(612,692) Capital contributions $1,934,757 $5,902,401 Transfers in $1,611,085 $1,525,275 Transfers out $(130,851) $(10,000) Change in Net Position $3,140,239 $6,804,984 Net Position, beginning $70,350,997 $61,801,633 Cumulative change in accounting principle $0 $1,744,379 Net Position, beginning‐as restated $70,350,997 $63,546,012 Net Position, ending $73,491,236 $70,350,996 $(143,691) $1,082,360 $832,090 $0 $1,770,759 $60,667,606 $(636,732) $60,030,874 $61,801,633 Page 8 ‐ City of Jefferson Popular Annual Financial Report 2016 There was a signiﬁcant increase in wastewater revenue from 2015 to 2016 as a result of an increase in sewer charges for services to offset fu‐ ture bond requirements. AddiƟonally there was a signiﬁcant decrease in capital contribuƟons in FY16. This was due to a decrease in federal grant revenue at the airport related to runway reconstrucƟon. Where does the money come from? Governmental Funds Revenues 2016 Sales and other user taxes $23,015,744 Property taxes $5,267,657 UƟlity/Franchise taxes $7,258,960 License, permits and fees $818,420 Intergovernmental $4,423,255 Charges for services $4,741,235 Fines and forfeitures $951,585 Investment earnings $406,004 ContribuƟons $317,104 Miscellaneous $672,367 Total Revenues $47,872,331 Sales and other user taxes, 48.1%Property taxes, 11.0% Utility/Franchise taxes, 15.2% License, permit and fees, 1.7% Intergovernmental, 9.2% Charges for services, 9.9% Fines and forfeitures, 2.0% Investment earnings, 0.8% Contributions, 0.7% Miscellaneous, 1.4% Taxes generate a majority of the City’s revenue and 48.1% 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 9.2% 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 9 ‐ City of Jefferson Popular Annual Financial Report 2016 contracts intended to assist in maintaining certain infrastructure. Miscellaneous revenue includes proceeds from insurance claims. General government 11.43% Public safety 34.49% Community development 15.40% Cultural and recreation 12.61% Capital outlay 26.07% 2016 Governmental Funds ‐Expenditures by Function The expenditures for governmental acƟviƟes totaled $47,875,334 for 2016. The largest category of expenditure is for Public Safety and represents 34.49% of all governmental acƟviƟes. Public safety includes all operaƟons of the Police and Fire departments. Capital outlay expenses are 26.07% 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. Governmental Funds Expenditures by FuncƟon 2016 General government $5,473,387 Public safety $16,510,754 Community development $7,373,632 Cultural and recreaƟon $6,037,672 Capital outlay $12,479,889 Total Expenditures $47,875,334 Where does the money go? Page 10 ‐ City of Jefferson Popular Annual Financial Report 2016 Cultural and RecreaƟon expenditures include Parks AdministraƟon and all Parks faciliƟes and programs. 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 surrounding 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 2016 was $21,717,595. Municipality Sales Tax Rate Columbia, MO 7.975% California, MO 7.975% Linn, MO 7.475% Sales tax rate comparison Ashland, MO 7.975% Jefferson City, MO 7.725% Holts Summit, MO 8.725% Lake Ozark, MO 8.225% Eldon, MO 8.125% Page 11 ‐ City of Jefferson Popular Annual Financial Report 2016 Where does property tax go? 426 426 411 414 415 400 410 420 430 2012 2013 2014 2015 2016 Authorized Full Time City Staff Authorized full Ɵme equivalent employees increased by 1 in the FY 2016 budget due to the addiƟon of an administraƟve assistant in Human Resources. In FY 2015, staffing increased due to the addiƟon of a ﬁre training officer, a planner II in the Metropolitan Planning OrganizaƟon Department of Planning and ProtecƟve Services, and a bus driver in the 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. Outstanding Debt 2011‐2016 $38,580,394 $44,995,309 $58,430,479 $55,642,805 $62,387,824 $‐ $20,000,000 $40,000,000 $60,000,000 $80,000,000 2012 2013 2014 2015 2016 Outstanding Debt as of 10/31/16 The outstanding debt at the end of ﬁscal year 2016 totaled $62,387,826 and was all associated with Wastewater Sewerage System Revenue Bonds. During the 2016 ﬁscal year the City issued an addiƟonal $9,380,000 in Wastewater Sewerage System Revenue Bonds and reƟred $3,101,048 in Wastewater Sewerage System Revenue Bond principal payments. Page 12 ‐ City of Jefferson Popular Annual Financial Report 2016 A City of Jefferson homeowner with a home that has a $150,000 market value paid $1,401.52 in real estate taxes in 2016 with 11.31% 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, 2015. This is the second 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, 2015. This was the 20th 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, 2016. This is the third 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 future annual budget documents will conƟnue to conform to program requirements. Page 13 ‐ City of Jefferson Popular Annual Financial Report 2016 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 Page 14 ‐ City of Jefferson Popular Annual Financial Report 2016 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