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HomeMy Public PortalAbout2017 PAFRCity of Jefferson Missouri Popular Annual Financial Report For the fiscal year ended October 31, 2017 A Message from the Director of Finance City of Jefferson Citfzens, In our ongoing effort to inform the City of Jefferson citfzens about the state of the City of Jefferson finances, we are pleased to present the 2017 Popular Annual Financial Report (PAFR). This report is reflectfve of our commitment to preserving the city’s long- term financial health and is intended to summarize the financial actfvitfes of the City’s funds that are reported in more detail in the Comprehensive Annual Financial Report (CAFR). The PAFR contains informatfon only from selected funds and excludes the City’s component unit, therefore it is not presented in accordance with Generally Accepted Accountfng Principles (GAAP). 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 informatfon presented herein is accurate in all material respects and presents fairly the financial positfon and results of operatfons for the fiscal year ending October 31, 2017. 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 Associatfon standards. We hope you find this report informatfve and we welcome your comments and questfons. Citfzens 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. Respectiully Submitted, Margie Mueller, CPA Director of Finance and Informatfon Technology Services Page 1 - City of Jefferson Popular Annual Financial Report 2017 Table of Contents City History 2 Notable Achievement 2 The Governing Body 3 City Demographics 4 Economic Statfstfcs 4 By the Numbers 5-6 Financial Actfvity 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 Reportfng 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 Bancroft. It has the distfnctfon of being located on land donated by the federal government for establishment of the state capital city. Many of the original settlers came from Virginia in the vicinity of Montfcello, 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 after its founding. The City of Jefferson operates under the Constftu- tfon and laws of Missouri, and a City Charter adopted in 1986. Page 2 - City of Jefferson Popular Annual Financial Report 2017 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 http://www.jeffersoncitymo.gov/watch_our_winning_video_here.php Rick Prather David Kemna J. Rick Mihalevich Laura A. Ward Ken Hussey Ron L. Fitzwater 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 2017 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 Location: Central Missouri Total Land Size: 37.58 square miles in both Cole and Callaway Countfes Population of City of Jefferson: 43,079 (2010 Census) City of Jefferson Top 10 Employers Company Employees State of Missouri 14,223 Capital Region Medical Center 1,573 Scholastfc, 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 7,525 7,462 7,597 7,698 8,039 8,017 8,163 8,231 8,284 8,079 8,062 7,000 7,500 8,000 8,500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 School Enrollment 3.9% 4.5% 6.7%6.6%6.1% 5.1%4.8% 3.9%3.4%3.2% 1.9% 1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%5.5%6.0%6.5%7.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unemployment Rate $56,129 Median Household Income 38.6 Median Age Page 4 - City of Jefferson Popular Annual Financial Report 2017 BY THE NUMBERS Page 5 - City of Jefferson Popular Annual Financial Report 2017 2017 2016 Number of Stations 5 5 Number of Fire Calls Answered 4,626 5,060 Number of Inspections Conducted 1,552 1,195 POLICE DEPARTMENT 2017 2016 Number of Patrol Units 34 34 Police Calls for Service 64,117 67,986 Crimes Reported 4,127 4,130 Arrests/Detentions 4,894 5,714 FIRE DEPARTMENT 2017 2016 Center Line Miles of Streets 253 253 Number of Snow Removal Hours 1,328 1,100 STREET DEPARTMENT BY THE NUMBERS Average Daily Number of Wastewater Gallons Treated 2017 — 7,157,000 2016 — 8,877,000 Business licenses issued (new & renewal) 2017 — 3,013 2016 — 2,899 Number of permits issued (building, electrical, plumbing, sign and demolition) 2017 — 894 2016 — 1,050 Page 6 - City of Jefferson Popular Annual Financial Report 2017 Number of playgrounds 2017 — 13 2016 — 13 Number of Parks 2017 — 18 2016 — 18 Financial Activity Statements for Years Ended October 31, 2015, 2016, and 2017 Governmental Funds - Governmental actfvitfes, 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 Fun d, 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 pro tectfve services are accounted for in these funds, as are administratfve services within the city such as human resources, finance, and informatfo n technologies. Governmental Funds Revenues 2017 2016 2015 Sales and other user taxes $23,656,655 $23,015,744 $22,628,475 Property taxes $5,419,824 $5,267,657 $5,261,508 Utility/Franchise taxes $7,060,237 $7,258,960 $7,295,904 License, permits and fees $897,213 $818,420 $760,615 Intergovernmental $5,261,966 $4,423,255 $4,608,038 Charges for services $5,006,456 $4,741,235 $4,432,834 Fines and forfeitures $821,174 $951,585 $1,023,787 Investment earnings $417,668 $406,004 $361,156 Contributions $334,912 $317,104 $176,879 Miscellaneous $367,014 $672,367 $389,478 Total Revenues $49,243,119 $47,872,331 $46,938,674 Other Financing Sources (Uses): 2017 2016 2015 Proceeds from sale of assets $139,070 $377,208 $77,729 Loan Proceeds $5,037,541 $0 $0 Transfers in $24,871 $202,647 $32,944 Transfers out $(1,391,734) $(1,688,481) $(1,548,218) Net Change in Fund Balances $(1,064,394) $(1,111,629) $4,180,930 Fund Balances, beginning $23,624,080 $24,735,709 $20,554,779 Fund Balances, ending $22,559,686 $23,624,080 $24,735,709 Page 7 - City of Jefferson Popular Annual Financial Report 2017 There was a significant decrease in miscellaneous revenue from 2016 to 2017 related to insurance claim proceeds for the Ice Arena. During FY16 there were two flood claims for the Ice Arena that resulted after severe weather incidents. Additfonally there was a significant increase in capital outlay expenditures due to the purchase of Fire Apparatus and an increase in sig- nificant capital projects, such as the Capitol Avenue project and the Stadium/Jefferson project. Expenditures by Function 2017 2016 2015 General government $5,667,308 $5,473,387 $5,725,817 Public safety $17,230,032 $16,510,754 $16,026,365 Community development $7,654,282 $7,373,632 $6,969,904 Cultural and recreation $6,459,097 $6,037,672 $5,572,731 Capital outlay $16,906,542 $12,479,889 $7,025,382 Debt service (principal and interest) $200,000 $0 $0 Total Expenditures $54,117,261 $47,875,334 $41,320,199 Financial Activity Statements for Years Ended October 31, 2015, 2016 and 2017 Enterprise Funds - The financial actfvitfes 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 citfzens. Currently the Parking an d 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 2017 2016 2015 Airport revenues $172,504 $189,301 $181,726 Parking revenues $1,108,321 $1,159,282 $1,137,191 Transit revenues $228,214 $258,358 $255,445 Wastewater revenues $11,172,107 $10,856,410 $10,154,871 Total Operating Revenues $12,681,146 $12,463,351 $11,729,233 Operating Expenses 2017 2016 2015 Airport expenses $721,242 $640,626 $635,716 Parking expenses $963,549 $862,891 $850,836 Transit expenses $2,926,314 $2,862,876 $2,841,310 Wastewater expenses $9,313,568 $8,711,164 $8,282,057 Total Operating Expenses $13,924,673 $13,077,557 $12,609,919 Non-Operating Revenues (Expenses) 2017 2016 2015 Intergovernmental $1,178,539 $1,130,405 $1,147,824 Interest and investment revenue $1,186,959 $1,187,180 $1,281,939 Interest expense and fees $(1,915,809) $(1,922,326) $(2,062,291) Debt issuance cost $0 $(173,551) $0 Gain/(Loss) on sale of capital assets $24,946 $117,746 $(99,478) Total Non-Operating Revenues (Expenses) $474,635 $339,454 $267,994 Income (loss) before contributions and transfers $(768,892) $(274,752) $(612,692) Capital contributions $691,871 $1,934,757 $5,902,401 Transfers in $1,366,863 $1,611,085 $1,525,275 Transfers out $0 $(130,851) $(10,000) Change in Net Position $1,289,842 $3,140,239 $6,804,984 Net Position, beginning $73,491,236 $70,350,997 $61,801,633 Cumulative change in accounting principle $0 $0 $1,744,379 Net Position, beginning-as restated $73,491,236 $70,350,997 $63,546,012 Net Position, ending $74,781,078 $73,491,236 $70,350,996 Page 8 - City of Jefferson Popular Annual Financial Report 2017 There was an increase in wastewater revenue from 2016 to 2017 as a result of an increase in sewer charges for services to off set future bond requirements. Additfonally there was a significant decrease in capital contributfons in FY17. This was due to a decrease in federal grant revenue at the airport related to runway reconstructfon. Where does the money come from? Governmental Funds Revenues 2017 Sales and other user taxes $23,656,655 Property taxes $5,419,824 Utflity/Franchise taxes $7,060,237 License, permits and fees $897,213 Intergovernmental $5,261,966 Charges for services $5,006,456 Fines and forfeitures $821,174 Investment earnings $417,668 Contributfons $334,912 Miscellaneous $367,014 Total Revenues $49,243,119 Taxes generate a majority of the City’s revenue and 48.0% 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 10.7% 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 cigarette taxes and grant funds. Charges for services include fees charged by Parks and Recreatfons 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 inspectfon fees. Investment earnings includes revenue earned from the investment of idle City funds throughout the year in accordance with the City’s investment policy. Contributions include revenue donated from citfzens to various City programs, as well as revenues received as part of existfng Page 9 - City of Jefferson Popular Annual Financial Report 2017 contracts intended to assist in maintaining certain infrastructure. Miscellaneous revenue includes proceeds from insurance claims. The expenditures for governmental funds totaled $54,117,261 for 2017. The largest category of expenditure is for Public Safety and represents 31.84% of all governmental actfvitfes. Public safety includes all operatfons of the Police and Fire departments. Capital outlay expenses are 31.24% 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 Protectfve Services, including Streets and Central Maintenance. General government expenditures include Administratfon, Law, Municipal Court, Human Resources, Finance, and Informatfon Technology. Governmental Funds Expenditures by Function 2017 General government $5,667,308 Public safety $17,230,032 Community development $7,654,282 Cultural and recreatfon $6,459,097 Capital outlay $16,906,542 Debt service $200,000 Total Expenditures $54,117,261 Where does the money go? Page 10 - City of Jefferson Popular Annual Financial Report 2017 Cultural and Recreation expenditures include Parks Administratfon and all Parks facilitfes and programs. Debt service includes principal and interest payments for the City’s outstanding notes and leases. Which agencies share sales tax revenue? 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 citfes and is divided among 3 different taxing entftfes. 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 operatfons, 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 2017 was $22,297,385. Sales tax rate comparison Municipality Sales Tax Rate Holts Summit, MO 8.725% Eldon, MO 8.125% Columbia, MO 7.975% Ashland, MO 7.975% California, MO 7.975% Jefferson City, MO 7.725% Linn, MO 7.475% Page 11 - City of Jefferson Popular Annual Financial Report 2017 Where does property tax go? 426 411 414 415 426 400 410 420 430 2013 2014 2015 2016 2017 Authorized Full Time City Staff Authorized full tfme equivalent employees increased by 11 in the FY 2017 budget due to the additfon of a Police Informatfon Manager, a Police Officer, two Fire Fighters, an Administratfve Technician, a Civil Engineer, two Equipment Operator Specialists, an Airport Maintenance Worker, a Utflity Maintenance Worker, and a Parks Maintenance Crew Leader. Outstanding Debt 2013-2017 $44,995,309 $58,430,479 $55,642,805 $62,387,824 $63,515,414 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 2013 2014 2015 2016 2017 Outstanding Debt as of 10/31/17 The outstanding debt at the end of fiscal year 2017 totaled $63,535,414. $58,631,974 was associated with Wastewater Sewerage System Revenue Bonds. During the 2017 fiscal year no new Wastewater Sewerage System bonds were issued and the City retfred $3,637,800 in Wastewater Sewerage System Revenue Bond principal payments. $4,883,440 was associated with a note for fire apparatus. This note was issued during the 2017 fiscal year in the amount of $5,037,541 and the City of Jefferson retfred $154,101 in note principal during the fiscal year. Page 12 - City of Jefferson Popular Annual Financial Report 2017 A City of Jefferson home- owner with a home that has a $150,000 market value paid $1,645.36 in real estate taxes in 2017 with 11.68% going to the City of Jefferson. Financial Reporting AwardsFinancial Reporting Awards The Government Finance Officers Associatfon of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Jefferson for the fiscal year ended October 31, 2016. This is the third year that the city has received this award. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestfgious natfonal award recognizing conformance with the highest standards for preparatfon 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 creatfvity, presentatfon, understandability, and reader appeal. An Award is valid for a period of one year only. We believe that our current report contfnues to conform to the Popular Annual Financial Reportfng requirements, and we are submitting it to the GFOA for review. Award for Outstanding Achievement in Popular Annual Financial Reporting Certificate of Achievement for Excellence in Financial Reporting Additfonally, the GFOA awarded a Certification of Achievement for Excellence in Financial Reporting to the City of Jefferson for it’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended October 31, 2016. This was the 21st consecutfve year that the city has received this prestfgious natfonal award. In order to be awarded a Certffi- cate of Achievement, the City must publish an easily readable and efficiently organized CAFR. This report must satfsfy both generally accepted accountfng principles and applicable legal requirements. A Certfficate of Achievement is valid for a period of one year only. We believe that the current comprehensive annual financial report contfnues to conform to the Certfficatfon of Achievement Program’s requirements and we are submitting it to the GFOA for review. Distinguished Budget Presentation Award Finally, the GFOA presented a Distinguished Budget Presentation Award to the City for its Annual Budget for the fiscal year beginning November 1, 2017. This is the fourth year that the city has received this prestfgious 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 operatfons guide, as a financial plan, and as a communicatfon device. This award is valid for a period of one year only. We believe our future annual budget documents will contfnue to conform to program requirements. Page 13 - City of Jefferson Popular Annual Financial Report 2017 The informatfon 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 2017 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