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HomeMy Public PortalAbout2021 Popular Annual Financial ReportCity of Jefferson Missouri Popular Annual Financial Report For the fiscal year ended October 31, 2021 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  2021 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  Annual  Comprehensive  Financial  Report  (ACFR).    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 ACFR   is available on the City’s website at   www.jeffersoncitymo.gov/government/acfr.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,  2021.    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,      Page 1 ‐ City of Jefferson Popular Annual Financial Report 2021   Table of Contents  City History              2  Notable Achievement           2  The Governing Body           3   City of Jefferson Ward Map         3   Community Profile               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  Outstanding Debt            12  Financial ReporƟng Awards                      13    How to Obtain a Copy of the ACFR          14  Shiela Pearre  Interim Director of Finance and InformaƟon Technology Services  City of Jefferson 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 govern‐ ment 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  ConsƟtuƟon  and  laws  of  Missouri, and  a  City  Charter  adopted  in  1986.  Page 2 ‐ City of Jefferson Popular Annual Financial Report 2021 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 hƩps://www.youtube.com/watch?v=IiTrMdQPFi4&t=2s  Page 3 ‐ City of Jefferson Popular Annual Financial Report 2021 The Governing Body City of Jefferson Ward Map Front row (leŌ to right):  Councilman Hank Vogt, Councilwoman Erin Wiseman, Mayor Carrie Tergin, Councilwoman Lara Ward, and Councilman Mark Schreiber  Back row (leŌ to right):  Councilmen Jon Hensley, Ron Fitzwater, Mike Lester, ScoƩ Spencer, Derrick Spicer, and David Kemna      COMMUNITY PROFILE Jefferson City, Missouri  QUICK FACTS HOUSEHOLDS Median Household Income: $52,253 Per Capita Income: $28,073 Median Value of Owner –Occupied Housing Units: $147,800 GOVERN- MENT Form of Government: Mayor—City Council— City Administrator Total Land Size: 37.58 square miles in both Cole and Callaway CounƟes Authorized full Ɵme equivalent employees: 436 EMPLOYMENT Unemployment Rate: 2.4% Top 5 largest employers *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 LocaƟon Miles Springfield, IL  160  Topeka, KS  191  Des Moines, IA  221  Tulsa, OK  265  LiƩle Rock, AR  266  Omaha, NE  275  Paducah, KY  307  Nashville, TN  340  RESIDENTS Median Resident Age: 37.9 20% of populaƟon under age 18 16% of populaƟon age 65 or over 7,931 students enrolled in Jefferson City School District Page 4 ‐ City of Jefferson Popular Annual Financial Report 2021   BY THE NUMBERS Page 5 ‐ City of Jefferson Popular Annual Financial Report 2021 2021 2020 Number of Stations 5 5 Number of Fire Calls Answered 5,663 5,056 Number of Inspections Conducted 1,391 1,029 POLICE DEPARTMENT 2021 2020 Police Calls for Service 46,140 46,478 Crimes Reported 3,233 3,412 Arrests/Detentions 3,728 3,813 Number of Patrol Units 32 32 FIRE DEPARTMENT 2021 2020 Center Line Miles of Streets 255 255 Number of Snow Removal Hours 4,031 3,308 STREET DEPARTMENT BY THE NUMBERS Average Daily Number of Wastewater Gallons Treated 2021 — 8,331,640 2020 — 7,819,726 Business licenses issued (new & renewal) 2021 — 2,837 2020 — 2,754 Number of permits issued (building, electrical, plumbing, sign and demolition) 2021 — 1,521 2020 — 3,533 Page 6 ‐ City of Jefferson Popular Annual Financial Report 2021 Number of playgrounds 2021 — 13 2020 — 13 Number of Parks 2021 — 18 2020 — 18 Financial Activity Statements for Years Ended October 31, 2019, 2020, and 2021 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 2021 2020 Sales and other user taxes $26,584,704 $25,260,601 Property taxes $5,834,154 $5,571,683 Utility/Franchise taxes $6,271,140 $6,213,429 License, permits and fees $1,035,569 $1,192,052 Intergovernmental $6,714,765 $5,740,548 Charges for services $5,885,882 $5,388,665 Fines and forfeitures $485,105 $438,599 Governmental Funds Contributions $388,918 $382,999 Miscellaneous $722,232 $412,095 Investment earnings $473,140 $445,090 Total Revenues $57,741,513 $51,123,826 2019 $24,155,498 $5,447,766 $6,695,255 $999,288 $5,796,576 $5,340,021 $680,331 $373,687 $364,083 $382,815 $50,235,320 Local grants $3,345,904 $78,065 $0 Other Financing Sources (Uses): 2021 2020 Proceeds from sale of assets $1,349,245 $106,280 Transfers in $1,623,458 $338,036 Transfers out $(2,560,666) $(1,768,703) Net Change in Fund Balances $4,642,841 $1,381,731 Fund Balances, beginning $24,308,226 $22,926,495 Fund Balances, ending $28,951,067 $24,308,226 2019 $1,174,639 $26,850 $(1,536,922) $(335,433) $23,607,676 $22,926,495 Issuance of Debt $0 $7,305,000 $0 Capital Contributions $0 $7,158 $0 Premium on issuance of debt $0 $164,573 $0 Page 7 ‐ City of Jefferson Popular Annual Financial Report 2021 Expenditures by Function 2021 2020 General government $6,556,518 $6,250,285 Public safety $18,688,025 $18,431,354 Community development $8,571,874 $8,549,008 Cultural and recreation $7,657,219 $7,240,909 Capital outlay $11,167,905 $14,553,522 Total Expenditures $53,510,709 $55,894,439 2019 $6,349,279 $18,391,085 $8,177,317 $6,842,304 $10,421,083 $50,581,068 Debt service (principal & interest) $869,168 $869,361 $400,000 There  was  a  significant  in‐ crease in local grant revenue  from 2020 to 2021 related to  an  funds  given  by  the  Parks  FoundaƟon for the Bicenten‐ nial Bridge project.  While  there  has  been  a  sig‐ nificant  decrease  in  capital  outlay  expenditures  from  fiscal year 2020 to 2021, fiscal  year 2021 sƟll included sever‐ al large projects, such as the  compleƟon  of  East  High  Street  Improvements,  and  renovaƟons  to  Community  Parks, McClung Park, Wash‐ ington Park, and Riverside  Park.  There  was  also  a  significant  decrease  in  the  issuance  of  debt during fiscal year 2021.   A  Parks  System  Special  Obli‐ gaƟon Bond Series 2019 was  issued  in  fiscal  year  2020  in  the  amount  of  $7,305,000,  payable  in  annual  install‐ ments through September 1,  2039.  No addiƟonal debt was  issued in fiscal year 2021.  Financial Activity Statements for Years Ended October 31, 2019, 2020 and 2021 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 2021 2020 Airport revenues $184,136 $128,406 Parking revenues $889,618 $906,564 Transit revenues $196,549 $172,331 Wastewater revenues $11,600,392 $11,482,636 Total Operating Revenues $12,870,695 $12,689,937 2019 $442,837 $1,154,581 $276,693 $11,588,856 $13,462,967 Operating Expenses 2021 2020 Airport expenses $1,588,100 $1,555,851 Parking expenses $768,261 $907,594 Transit expenses $2,484,852 $2,855,475 Wastewater expenses $9,259,149 $11,157,264 Total Operating Expenses $14,100,362 $16,476,184 2019 $1,605,983 $825,266 $2,755,725 $10,546,895 $15,733,869 Non‐Operating Revenues (Expenses) 2021 2020 2019 Intergovernmental $1,496,501 $1,950,752 $1,162,330 Interest and investment revenue $191,893 $812,845 $966,363 Interest expense and fees $(927,163) $(1,693,333) $(1,923,454) Gain/(Loss) on sale of capital assets $99,813 $12,040 $39,500 Total Non‐Operating Revenues (Expenses) $861,044 $976,702 $244,739 Debt issuance cost $0 $(105,602) $0 Income (loss) before contributions and transfers $(368,623) $(2,809,545) $(2,026,163) Capital contributions $641,808 $1,342,403 $1,507,967 Transfers in $937,207 $1,430,668 $1,510,072 Change in Net Position $1,210,392 $(36,474) $991,876 Net Position, beginning $76,445,052 $76,481,526 $75,489,650 Prior period adjustment $(233,828) $0 $0 Net Position, beginning-as restated $76,211,224 $76,481,526 $75,489,650 Net Position, ending $77,421,616 $76,445,052 $76,481,526 Revenues from 2020 to 2021 were fairly consistent.  Airport revenues were high in 2019 due to the fact that the airport received a significant  insurance claim as a result of damage that occurred from severe flooding during FY19.    In fiscal year 2019 there was a significant increase in wastewater expenses due to an increase in capital outlay expenditures for capital pro‐ jects such as the Wears Creek East Branch upgrade.  In fiscal year 2020 there was a significant increase in wastewater expenses due to an in‐ crease in capital outlay expenditures for capital projects such as the Basin 17 Sanitary Sewer Relief.  In fiscal year 2021 wastewater expenses  returned to a more normal level.  Other expenses have remained fairly constant.  Page 8 ‐ City of Jefferson Popular Annual Financial Report 2021 Where does the money come from? Governmental Funds  Revenues 2021 Sales and other user taxes  $26,584,704  Property taxes  $5,834,154  UƟlity/Franchise taxes  $6,271,140  License, permits and fees  $1,035,569  Intergovernmental  $6,714,765  Charges for services  $5,885,882  Fines and forfeitures  $485,105  Investment earnings  $473,140  ContribuƟons  $388,918  Miscellaneous  $722,232  Total Revenues $57,741,513 Local grants  $3,345,904  Sales and other user  taxes, 46.0% Property taxes,  10.1% Utility/Franchise  taxes, 10.9% License, permit and  fees, 1.8% Intergovernmental,  11.6% Local grants, 5.8% Charges for services,  10.2% Fines and forfeitures,  0.8% Investment earnings,  0.8% Contributions, 0.7% Miscellaneous, 1.3% Taxes  generate  a  majority  of  the  City’s  revenue  and  46.0%  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 11.6% 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 2021 contracts  intended  to  assist  in  maintaining  certain  infrastructure.   Miscellaneous revenue includes proceeds from insurance  claims.  The  expenditures  for  governmental  funds  totaled  $53,510,709 for 2021.  The largest category of expenditure is  for Public Safety and represents 34.9% of all governmental  acƟviƟes.  Public safety includes all operaƟons of the Police and Fire  departments.  Capital outlay  expenditures  are  20.9%  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 2021 General government  $6,556,518  Public safety  $18,688,025  Community development  $8,571,874  Cultural and recreaƟon  $7,657,219  Capital outlay  $11,167,905  Total Expenditures $53,510,709 Debt service  $869,168  Where does the money go? Page 10 ‐ City of Jefferson Popular Annual Financial Report 2021 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 leases and  bonds.  General government,  12.3% Public safety, 34.9% Community  development, 16.0% Cultural and recreation,  14.3% Capital outlay, 20.9% Debt Service, 1.6% Which agencies share sales tax revenue? 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 2021 was  $25,240,778.  Sales tax rate comparison Municipality Sales Tax Rate  Holts Summit, MO  9.725%  Ashland, MO  8.475%  California, MO  8.475%  Eldon, MO  8.125%  Columbia, MO  7.975%  Linn, MO 7.975%  Jefferson City, MO 7.725%        Page 11 ‐ City of Jefferson Popular Annual Financial Report 2021 City of Jefferson ‐ General, 1.000% City of Jefferson ‐ Capital  Improvement,  0.500% City of Jefferson ‐ Parks, 0.500% Cole County, 1.500% State of Missouri,  4.225% Total sales tax collectd in the City of Jefferson is 7.725% Where does property tax go? Outstanding Debt 2017-2021 $63,515,414 $58,516,896 $54,068,566 $56,921,785 $51,839,271   $‐  $20,000,000  $40,000,000  $60,000,000  $80,000,000 2017 2018 2019 2020 2021 Outstanding Debt as of 10/31/21 The outstanding debt at the end of fiscal year 2021 totaled $51,839,271.   $42,184,339 was associated with Wastewater Sewerage System Revenue Bonds.  During the 2021 fiscal year the City  reƟred $4,319,200 in Wastewater Sewerage System Revenue Bond principal payments.  $2,811,330 was associated with a lease for fire apparatus.  This lease was entered into during the 2017 fiscal year and  the City of Jefferson paid $322,136 in lease principal during fiscal year 2021.  $6,843,602  was  associated  with  Parks  System  Special  ObligaƟon  Bonds.    During  2021  fiscal  year  the  City  reƟred  $285,000 in Parks System Special ObligaƟon Bond principal payments.  Page 12‐ City of Jefferson Popular Annual Financial Report 2021 A City of Jefferson homeowner with a home that has a $150,000  market value paid $1,714.70 in real estate taxes in 2021 with 9.24%  going to the City of Jefferson.  Tax EnƟty Rate Cost Jefferson City Public Schools  4.7979  $1,367.40  Cole County  0..6625  $188.81  City of Jefferson  0.5561  $158.49  TOTAL COMBINED TAX LEVY 6.0165 $1,714.70                                                                                                                           Financial 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, 2020.  This is the seventh 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,  presenta‐ Ɵon, 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 Annual Comprehensive Financial Report (ACFR) for the fiscal year ended October 31, 2020.  This was  the 25th 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 ACFR.  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 annual comprehensive 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, 2020.  This is the seventh 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.    Page 13 ‐ City of Jefferson Popular Annual Financial Report 2021 The informaƟon in the City of Jefferson Popular Annual Financial Report is taken from the City  of Jefferson Annual Comprehensive Financial Report (ACFR).      A copy of the more detailed Annual Comprehensive Financial Report (ACFR) is available online  at www.jeffersoncitymo.gov/government/acfr.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 2021 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