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Home My Public Portal About2018 PAFRCity of Jefferson Missouri Popular Annual Financial Report For the ﬁscal year ended October 31, 2018 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 2018 Popular Annual Financial Report (PAFR). This 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). The PAFR contains informaƟon only from selected funds and excludes the City’s component unit, therefore it is not presented in accordance with Generally Accepted AccounƟng 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 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, 2018. 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 2018 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 2018 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 David Kemna J. Rick Mihalevich Laura A. Ward Ken Hussey Ron L. Fitzwater Carlos M. Graham Jon Hensley 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 2018 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 14,174 Jefferson City Public Schools 1,627 Capital Region Medical Center 1,527 ScholasƟc, Inc 1,500 Central Bancompany 1,020 SSM Health—St. Mary’s Hospital 982 ABB Power T & D Company 865 Wal‐Mart Supercenter (2) 665 Jefferson City Medical Group 629 Unilever 467 City of Jefferson Top 10 Employers 7,462 7,597 7,698 8,039 8,017 8,163 8,231 8,284 8,079 8,062 8,047 7,000 7,500 8,000 8,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 School Enrollment 4.5% 6.7% 6.6% 6.1% 5.1% 4.8% 3.9%3.4%3.2% 1.9%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% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unemployment Rate $48,132 Median Household Income 38.6 Median Age Page 4 ‐ City of Jefferson Popular Annual Financial Report 2018 BY THE NUMBERS Page 5 ‐ City of Jefferson Popular Annual Financial Report 2018 2018 2017 Number of Stations 5 5 Number of Fire Calls Answered 4,837 4,626 Number of Inspections Conducted 1,400 1,552 POLICE DEPARTMENT 2018 2017 Police Calls for Service 58,235 64,117 Crimes Reported 4,013 4,127 Arrests/Detentions 5,103 4,894 Number of Patrol Units 32 34 FIRE DEPARTMENT 2018 2017 Center Line Miles of Streets 253 253 Number of Snow Removal Hours 1,194 1,328 STREET DEPARTMENT BY THE NUMBERS Average Daily Number of Wastewater Gallons Treated 2018 — 9,779,153 2017 — 7,157,000 Business licenses issued (new & renewal) 2018 — 3,208 2017 — 3,013 Number of permits issued (building, electrical, plumbing, sign and demolition) 2018 — 939 2017 — 894 Page 6 ‐ City of Jefferson Popular Annual Financial Report 2018 Number of playgrounds 2018 — 13 2017 — 13 Number of Parks 2018 — 18 2017 — 18 Financial Activity Statements for Years Ended October 31, 2016, 2017, and 2018 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 2018 2017 Sales and other user taxes $23,891,622 $23,656,655 Property taxes $5,484,475 $5,419,824 Utility/Franchise taxes $7,687,404 $7,060,237 License, permits and fees $911,495 $897,213 Intergovernmental $3,562,158 $5,261,966 Charges for services $5,241,920 $5,006,456 Fines and forfeitures $792,331 $821,174 Governmental Funds Contributions $335,096 $334,912 Miscellaneous $244,424 $367,014 Investment earnings $384,174 $417,668 Total Revenues $48,535,099 $49,243,119 2016 $23,015,744 $5,267,657 $7,258,960 $818,420 $4,423,255 $4,741,235 $951,585 $406,004 $317,104 $672,367 $47,872,331 Other Financing Sources (Uses): 2018 2017 Proceeds from sale of assets $205,543 $139,070 Transfers in $24,102 $24,871 Transfers out $(1,528,062) $(1,391,734) Net Change in Fund Balances $(1,298,417) $(1,064,394) Fund Balances, beginning $22,559,686 $23,624,080 Fund Balances, ending $23,607,676 $22,559,686 2016 $377,208 $202,647 $(1,688,481) $(1,111,629) $24,735,709 $23,624,080 Loan Proceeds $0 $5,037,541 $0 Page 7 ‐ City of Jefferson Popular Annual Financial Report 2018 There was a signiﬁcant decrease in intergovernmental revenue from 2017 to 2018 related to joint city/county project receipts. During FY18 the amount of the receipts from joint projects between the City of Jefferson and Cole County decreased. AddiƟonally there was a signiﬁcant decrease in capital outlay expenditures due to the fact that 2017 reﬂects the purchase of Fire Appa‐ ratus and an increase in signiﬁcant capital projects, such as the Capitol Avenue project and the Stadium/Jefferson project. Expenditures by Function 2018 2017 General government $5,923,438 $5,667,308 Public safety $17,920,197 $17,230,032 Community development $7,969,032 $7,654,282 Cultural and recreation $6,556,633 $6,459,097 Capital outlay $6,619,392 $16,906,542 Total Expenditures $46,188,692 $54,117,261 2016 $5,473,387 $16,510,754 $7,373,632 $6,037,672 $12,479,889 $47,875,334 Debt service (principal and interest) $1,200,000 $200,000 $0 Financial Activity Statements for Years Ended October 31, 2016, 2017 and 2018 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 2018 2017 Airport revenues $160,186 $172,504 Parking revenues $1,153,256 $1,108,321 Transit revenues $237,749 $228,214 Wastewater revenues $11,564,490 $11,172,107 Total Operating Revenues $13,115,681 $12,681,146 2016 $189,301 $1,159,282 $258,358 $10,856,410 $12,463,351 Operating Expenses 2018 2017 Airport expenses $1,567,875 $721,242 Parking expenses $903,445 $963,549 Transit expenses $2,948,894 $2,926,314 Wastewater expenses $9,102,837 $9,313,568 Total Operating Expenses $14,523,051 $13,924,673 2016 $640,626 $862,891 $2,862,876 $8,711,164 $13,077,557 Non‐Operating Revenues (Expenses) 2018 2017 2016 Intergovernmental $1,169,604 $1,178,539 $1,130,405 Interest and investment revenue $1,057,561 $1,186,959 $1,187,180 Interest expense and fees $(2,101,422) $(1,915,809) $(1,922,326) Debt issuance cost $0 $0 $(173,551) Gain/(Loss) on sale of capital assets $24,722 $24,946 $117,746 Total Non‐Operating Revenues (Expenses) $150,465 $474,635 $339,454 Income (loss) before contributions and transfers $(1,256,905) $(768,892) Capital contributions $703,394 $691,871 Transfers in $1,503,960 $1,366,863 Transfers out $0 $0 Change in Net Position $950,449 $1,289,842 Net Position, beginning $74,781,078 $73,491,236 Cumulative change in accounting principle $(241,877) $0 Net Position, beginning‐as restated $74,539,201 $73,491,236 Net Position, ending $75,489,650 $74,781,078 $(274,752) $1,934,757 $1,611,085 $(130,851) $3,140,239 $70,350,997 $0 $70,350,997 $73,491,236 Page 8 ‐ City of Jefferson Popular Annual Financial Report 2018 There was an increase in wastewater revenue from 2017 to 2018 as a result of an increase in sewer charges for services to offset future bond requirements. AddiƟonally there was a signiﬁcant increase in airport expenses in FY18. This was due to an increase in depreciaƟon expense related to the compleƟon of runway and taxiway improvements. Where does the money come from? Governmental Funds Revenues 2018 Sales and other user taxes $23,891,622 Property taxes $5,484,475 UƟlity/Franchise taxes $7,687,404 License, permits and fees $911,495 Intergovernmental $3,562,158 Charges for services $5,241,920 Fines and forfeitures $792,331 Investment earnings $384,174 ContribuƟons $335,096 Miscellaneous $244,424 Total Revenues $48,535,099 Sales and other user taxes, 49.2% Property taxes, 11.3% Utility/Franchise taxes, 15.8% License, permit and fees, 1.9% Intergovernmental, 7.3%Charges for services, 10.8% Fines and forfeitures, 1.6% Investment earnings, 0.8% Contributions, 0.7% Miscellaneous, 0.5% Taxes generate a majority of the City’s revenue and 49.2% 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 7.3% 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 2018 contracts intended to assist in maintaining certain infrastructure. Miscellaneous revenue includes proceeds from insurance claims. General government 12.82% Public safety 38.80% Community development 17.25% Cultural and recreation 14.20% Capital outlay 14.33% Debt service 2.60% 2018 Governmental Funds ‐Expenditures by Function The expenditures for governmental funds totaled $46,188,692 for 2018. The largest category of expenditure is for Public Safety and represents 38.80% of all governmental acƟviƟes. Public safety includes all operaƟons of the Police and Fire departments. Capital outlay expenditures are 14.33% 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 2018 General government $5,923,438 Public safety $17,920,197 Community development $7,969,032 Cultural and recreaƟon $6,556,633 Capital outlay $6,619,392 Total Expenditures $46,188,692 Debt service $1,200,000 Where does the money go? Page 10 ‐ City of Jefferson Popular Annual Financial Report 2018 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 2018 was $22,569,577. Sales tax rate comparison Municipality Sales Tax Rate Holts Summit, MO 8.725% Ashland, MO 8.475% Eldon, MO 8.125% Columbia, 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 2018 Where does property tax go? 411 414 415 426 430 400 410 420 430 2014 2015 2016 2017 2018 Authorized Full Time City Staff Authorized full Ɵme equivalent employees increased by 4 in the FY 2018 budget due to the addiƟon of a Planner I/II, a Plan Reviewer/Planner, a RecreaƟon Program Specialist, a Golf Superintendent, a Parks Maintenance—Trainee, Worker, Senior, and the eliminaƟon of a Parks Maintenance Crew Leader. Outstanding Debt 2014‐2018 $58,430,479 $55,642,805 $62,387,824 $63,515,414 $58,516,896 $‐ $20,000,000 $40,000,000 $60,000,000 $80,000,000 2014 2015 2016 2017 2018 Outstanding Debt as of 10/31/18 The outstanding debt at the end of ﬁscal year 2018 totaled $58,516,896. $54,716,324 was associated with Wastewater Sewerage System Revenue Bonds. During the 2018 ﬁscal year no new Wastewater Sewerage System bonds were issued and the City reƟred $3,797,600 in Wastewater Sewerage System Revenue Bond principal payments. $3,800,572 was associated with a lease for ﬁre apparatus. This lease was entered into during the 2017 ﬁscal year and the City of Jefferson paid $1,082,867 in lease principal during ﬁscal year 2018. Page 12 ‐ City of Jefferson Popular Annual Financial Report 2018 A City of Jefferson home‐ owner with a home that has a $150,000 market value paid $1,685.21 in real estate taxes in 2018 with 9.4% 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, 2017. This is the fourth 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, 2017. This was the 22nd 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, 2017. This is the fourth 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 2018 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 2018 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