HomeMy WebLinkAboutCity of Tecumseh - Public Financial ReportState of Michigan
Popular
Annual
Financial
Report
For Fiscal Year Ended June 30, 2021
Table of Contents
Message to the Citizens
2020 PAFR Award
Glossary of Terms
About Tecumseh
Community Profile
Location
Area Attractions
Government Structure
Financial Highlights
City Departments
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5
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11-16
17-20
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Message to the Citizens
Dan Swallow
City Manager
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To the Citizens of the City of Tecumseh:
We are pleased to present to you the city of Tecumseh’s twelfth Popular Annual
Financial Report (PAFR) for the fiscal year ended June 30, 2021. The intent of
this report is to summarize and report the city’s financial condition in a concise
and user-friendly manner.
The information in this report is derived primarily from the City’s Annual
Comprehensive Financial Report (ACFR), which contains more technical and
complex information, for the fiscal year ended June 30, 2021. The financial
information in the ACFR was prepared in accordance with generally accepted
accounting principles (GAAP) and was independently audited by Rehmann
Robson, LLC, Certified Public Accountants. The City received an unmodified
(“clean”) opinion from our auditors, which is the highest form of financial
assurance that an auditor can issue.
Unlike the ACFR, this PAFR is unaudited and not prepared in accordance with
GAAP. Only the financial data for the primary government is included in this
report and all of the City’s discretely presented components units are excluded.
Information in this report is condensed and summarized and certain financial
statements and note disclosures required by GAAP are not included. A copy of
the City’s 2021 ACFR prepared in accordance with GAAP is located at
https://www.mytecumseh.org/departments/city_treasurer/citizen_s_guide.php
We are proud to have received the Certificate of Achievement for Excellence in
Financial Reporting by the Government Finance Officers Association (GFOA) for
the 23rd consecutive year for the fiscal year ended June 30, 2020, ACFR.
Thank you for your interest in the City of Tecumseh. We welcome any questions,
comments or suggestions regarding the information included in this report.
Sincerely,
Daniel E. Swallow Rachel Peters
City Manager City Treasurer
(Signatures not shown for security purposes.)
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About Tecumseh
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Tecumseh, Michigan is a vibrant community, situated 25 miles southwest of Ann Arbor, Michigan and 40
miles northwest of Toledo, Ohio. The city currently has a land area of approximately 5.4 square miles and a
population of 8,680 based on the 2020 census.
The Mission and Vision of the City of Tecumseh is to provide excellent services and embrace change that
enhances the quality of life, encourages a strong economy, and promotes a world class place to live, work and
play.
The government is empowered to levy a property tax on both real and personal property located within its
boundaries. The city has operated under the council-manager form of government since 1954. Policymaking
and legislative authorities are vested in the governing council, a seven-member council including the mayor.
The City Council is required to adopt a final budget prior to the start of the fiscal year to which it pertains.
While impacts of COVID-19 continue to affect the local economy, the City has experienced an improvement
in the economic environment since 2020. Following the national unemployment rate of 5.9%, Lenawee County
as of June 30, 2021, was experiencing a 0.4% lower rate at 5.5% and considerably lower compared to last year
at this time. This fiscal year showed a strong construction market with permits for 33 new residential units, one
new industrial building, 408 building additions or improvements, and sales data indicating rising values.
Continued economic development looks challenging, but favorable for the future. The Economic
Development Department is promoting additional industrial and commercial development projects and
implementing an updated downtown development strategy. The City has partnered with Lenawee County on a
transformational redevelopment proposal for the former Tecumseh Products site in the south-central area of
the City; and follow-on investment in this area should lead to significant gains in property values.
Despite these positive trends, the changes in the assessed value of taxable property in the City continues to be
constrained by the Headlee Amendment (which limits the annual increase in the State Equalized Value of real
property) and the provisions of Proposal A (which limits increases in taxable property values to 5% or the rate
of inflation, whichever is less). In 2021, the Michigan Department of Treasury accepted inflation rate was
1.4%. Additionally, the full economic impact of COVID-19 is still unknown. Taken together, these fiscal
factors create slow growing budgets under which the City must operate.
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City Council
Goals
The basic goals
include maintaining
our small-town
values, managing our
growth, financial
strength and superior
services.
Community Profile
• The City of Tecumseh was founded in 1824
and incorporated as a city in 1954.
• Population: 8,680 (2020 Census)
• Per capita income: $40,932 (2020)
• Landmass: Area - Total 5.4 square miles
• Median Age: 40 (2020)
• Unemployment rate: 5.5% (2020)
(Source: U.S. Census Bureau, Population and Unemployment Rate –
Michigan Department of Energy, Labor and Economic Growth
Personal and Per Capital Income – Bureau of Economic Analysis)
Employer Employees
Kirchoff Van-Rob Tecumseh 543
Tecumseh Public Schools 365
Busch's 116
Cambrian Assisted Living 80
Ervin Industries 78
City of Tecumseh 56
Old National Bank 50
Ididit 46
GLOVE 45
Tecumseh Packaging Solutions 30
2021 Top 10 Principal Employers
Taxpayer Taxable Value
Kirchoff Van-Rob Tecumseh 7,450,001$
Consumer Energy Company 7,261,664
Cambrian of Tecumseh LLC 3,458,067
D.J. Martin 2,458,198
Ervin Industries, Inc. 2,120,043
Tecumseh Place Apartments 2,097,900
Old National Bank 1,998,391
Tri-Bros. (Busch's) 1,541,235
SETO 1,176,166
Tecumseh Apartments & Townhomes 1,107,331
2021 Top 10 Principal Property Taxpayers
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Location
Lenawee County
Area Attractions
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Area Attractions
Downtown
Tecumseh
Nestled inside
historic buildings
you’ll find an
interesting mix of
specialty shops,
boutiques and dining
options. Tecumseh
hosts many great
festivals and events
throughout the year,
including an Ice Sculpture Festival in January, a
Sand Sculpting Event in July and our largest event
in October, the Appleumpkin Festival, which
brings over 35,000 people to town each year. Our
merchants also host many other smaller events
during the year which showcase our unique shops
and restaurants.
Stone Mountain
Family Fun
Center
Stone Mountain Family Fun
Center offers fun for the
whole family. Grab your
club and enjoy an exciting
game of putt-putt golf
including a waterwheel,
stream and cave. Afterward grab a bite to eat and an
ice cream treat.
Art Trail Tecumseh
Art Trail Tecumseh is a free self-guided outdoor
sculpture exhibit, waiting for you to explore, on
your own time, at your own pace. The sculptures
will be on display in Tecumseh throughout the
year, with new sculptures installed in the spring
each year. It is a pleasant way to spend an
afternoon with family and friends.
Tecumseh’s River Raisin Run -
Looped Canoe Adventure
The River Raisin Run is a looped water trail nestled
into the heart of Indian Crossing Trails. Grab your
canoe or kayak and enjoy nearly three miles of
waterways as you
take in the splendor
of a natural
Michigan forest,
filled with native
plant species
and wildlife.
Tecumseh Center for the Arts
TCA has a state-of-the-art projection, sound and
technical system, which can accommodate local
productions as well as national touring companies.
TCA can also be a comfortable venue for business
meetings, conventions and special events of all types.
•Assessor
•Cemetery/Tree Program
•Clerk
•Tecumseh Center for the Arts
•Development Services
•Economic Development
•Emergency Services
•Ambulance Services Contract
•Parks & Recreation
•Public Utilities
•Police
•Public Works/Forestry
•Residential Solid Waste
Collection Contract
•Treasurer
Government Structure
•Downtown Development
Authority
•Local Development Finance
Authority
•Retirement System Board
•Brownfield Redevelopment
Authority
•Economic Development Corp.
Citizens
Attorney City Manager
•Board of Review
•Election Commission
•Planning Commission
•Board of Zoning Appeals
•Electrical Board of Appeals
•Property Maintenance
Board of Appeals
•Historic Preservation
Commission
•Parks & Recreation
Advisory Board
•Building Authority
Mayor & City Council
Meetings:
City Council meets on the 1st and 3rd
Monday of each month at 7:30 pm in the
Council Chambers at City Hall
Study sessions are held, if needed, at
6:30 p.m.
Learn more about the City and its
government at :
http://www.mytecumseh.org/
City Council Members
Jack Baker, Mayor
Stephanie Harmon, Mayor Pro Tem
Gary Naugle
Brian Radant
Vicki Riddle
Austin See
Ron Wimple
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Financial Highlights
The government’s
total net position
increased by
$2,458,351.
The unassigned
fund balance for
the general fund
was $3,155,351 or
54 percent
of total general
fund expenditures.
The assets and deferred outflows of resources
of the City exceeded its liabilities and
deferred inflows of resources at the close of
the most recent fiscal year by $33,482,472
(net position). Of this amount, there is a
deficit of $191,844 in unrestricted net
position which is an improvement over past
years primarily due to steps to address
pension and other postemployment benefit
liabilities.
Governmental Funds. Governmental funds
include the General Fund, the chief operating
fund of the City, and the Center for the Arts
funds. They include most of the basic services
of the city.
As of the close of the current fiscal year, the
City’s governmental funds reported combined
ending fund balances of $8,737,003, an
increase of $245,288 from the prior year.
Approximately 36 percent of this total amount,
or $3,155,351, is available for spending at the
government’s discretion (unassigned fund
balance).
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The City’s total
bonded debt increased
by a net amount of
$8,688 during the
current fiscal year.
The City has an “AA”
rating from Standard
& Poor’s.
The revenue chart to the right
presents the percentage of sources
of total revenues from the City’s
Statement of Activities, including
charges for services, operating and
capital grants, and property taxes.
The City’s major revenue sources
are property taxes (41%) and
charges for services (30%).
Revenues are the monies brought in
to run the city.
Operating Grant. Provides support
for the day-to-day costs of
government operations.
Capital Grant.Provides support
specifically for capital costs.
Program Revenues.Revenues
derived directly from specific
government programs.
Where The Money Comes From
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Where The Money Goes
The expense chart above presents the percentage of the City’s total expenses by function from the
Statement of Activities. The functions include general government, public safety, public works, parks and
recreation, cultural and community development, wastewater and water. The City’s largest expenses are
Public Safety (26%), General Government (19%), and Public Works (15%). Expenses are the costs that the
city incurs to run the city.
Expenses were actually curtailed due to pandemic related pull-back in several City departments. This
reduced activity was particularly evident in Cultural (Tecumseh Center for the Arts) and Parks and
Recreation expenses. The exception to this was in Community Development where both revenues
and expenses grew as a result of increased home improvements that were undertaken during
COVID-19 related shutdowns.
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Expenses and Total Revenues
(Governmental Activities)
Expenses and Program Revenues
(Business-Type Activities)
Governmental activities are the services the City
provides to citizens such as protection of life and
property, public works, parks and recreation programs
and culture and social services. The revenues are what
the City brings in from taxes, permits and fines.
Governmental activities increased the City’s net
position by $2,209,463 in the current fiscal year; by
comparison, in the prior year, governmental activities
net position increased by $532,540. Key elements of
this change include: Property tax revenues grew
strongly with “uncapping’s” due to a higher volume of
home sales and incremental increases in taxable
values. The City also saw increases in the operating
grants from the State of Michigan including
Constitutional State Shared Revenue as well as pass
through grants related to the federal stimulus.
Expenses were actually curtailed due to pandemic
related pull-back in several City departments. This
reduced activity was particularly evident in Cultural
(Tecumseh Center for the Arts) and Parks and
Recreation expenses. The exception to this was in
Community Development where both revenues and
expenses grew as a result of increased home
improvements that were undertaken during COVID-19
related shutdowns.
Business-Type Activities are commercial type
activities of the City and include the City’s water and
wastewater utilities. Business-type activities increased
the City's net position by $248,888 as compared to an
increase of $ 78,842 the prior year. Key elements of
this change include:
- Small increases in Wastewater and Water user fees to
ensure the City is covering operational expenses as
well as long-term debt obligations.
- On-going upgrades and additions to the sanitary
sewer system as a result of planned capital
improvements funded through the State Revolving
Fund as well as acceptance of infrastructure in a new
residential development.
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Financial Trends in Revenues and Expenses – Governmental
Activities
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Last Ten Fiscal Years
The significant increase in fiscal year 2015 expenses was due to
the City adopting GASB 68, Accounting and Financial Reporting for
Pensions, which significantly increased pension expense.
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When looking at the financial position of the city, there are two different sets of numbers to look at.
The first set would be the Net Position of the city. When one looks at this number, they want to
make sure the city has enough assets to cover their liabilities.
-Assets are items of value owned by the City that will provide future economic benefits.
-Deferred Outflows of Resources represents a consumption of net position that applies to one or
more future periods and so will not be recognized as an outflow of resources until then.
-Liabilities are amounts owed to others.
-Deferred Inflows of Resources represents revenue that applies to one or more future periods and
so will not be recognized as an inflow of resources until that time.
-Net Position equals assets and deferred outflows minus liabilities and deferred inflows and may
serve as a useful indicator of the City’s financial position.
At the close of the most recent fiscal year, the City’s assets and deferred outflows exceeded
liabilities and deferred inflows by $33,482,472, which reflects good financial position for the City as
of June 30, 2021.
Tecumseh’s Change in Net Position
At June 30, 2021
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City Departments
City Manager
The City Manager reports to the City
Council and is responsible for the
day-to-day operations of the City,
including the various departments.
Dan is also responsible for
preparing and administering the
various city budgets and ensuring the
various goals of the City are met.
Dan Swallow was appointed the Dire-
ctor of Economic and Community
Development for the City of Monroe
in January of 2011 where he served
for 5-years, until starting as City
Manager in Tecumseh in December
of 2015. He has credentials from the
American Institute of Certified
Planners and actively participates in
the Michigan Association of
Planning and Michigan Economic
Developers Association.
City Clerk
The City Clerk administers
elections, registers voters, serves
as clerk to City Council and is the
official record keeper for the City.
The City Clerk's office is
responsible for maintenance of
City records, which includes all
recorded actions of the City
Council as well as deeds,
easements, contracts and other
general records, including
Brookside Cemetery, which is
owned and managed by the City.
Brookside Cemetery
Brookside Cemetery has a serene
park-like setting, filled with
historic monuments and
tombstones, dating back to the
early 1800's.
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City Departments
City Assessor
The Assessing department has a
website that taxpayers can access
regarding their property taxes free
of charge. The City’s Tax and
Assessing Software allows citizens
to access property details, such as
current assessments, digital photos,
building data, sales transactions, and
recent tax bills. This website is also
found on the City Treasurer’s home
page under Tax and Assessing Info.
Fire Department
The Fire Department provides fire,
rescue, and EMS response to the
community. The department is
involved in providing fire prevention
education, fire suppression and
Medical First Response. The number
of calls answered in 2021 was 1,099.
Police Department
The Police Department provides
public safety services for the
community.
2020 Service Accomplishments
Accomplishment Number
•Uniform crime
reporting 294
•Traffic violations 345
•Arrests 120
•Parking violations 12
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City Departments
Parks and Recreation
Department
Center for the Arts (TCA)
TCA provides arts and
entertainment events for the
community. There were 13 shows
at the Civic Auditorium in 2021,
with an average attendance of 92.
Public Works
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There are over 300 acres of parkland
within Tecumseh, brimming with
green space, wildlife, waterways, and
hiking/biking trails.
In addition to parks, we offer a full
slate of activities, such as basketball,
soccer, baseball/softball, volleyball,
tennis and golf lessons, and activities
at the recreation center.
Public works department is
responsible for construction and
maintenance of streets and storm
sewers, as well as snow removal
of streets and city-owned parking
lots. There were 28 miles of local
streets and 17 miles of major
streets maintained in 2021.
City Departments
Economic Development
The Economic Development
Department is the resource center
and liaison for commercial and
industrial businesses.
Utilities Department
The Utilities Department takes care
of public water as well as
wastewater treatment. For 2021,
there were 4,283 service
connections and 488 fire hydrants.
In 2021, the Utilities Department
maintained 53 miles of sanitary
sewers, 20 miles of storm sewers,
and 56 miles of water mains.
City Treasurer
The Treasurer’s office is
responsible for all financial
transactions of the City, including
the collection of taxes and fees.
Under the direction of the
Treasurer’s Department, the City
has received the Certificate of
Achievement for Excellence in
Financial Reporting from the
Government Finance Officers
Association of the United States
and Canada for the past twenty-
three years.
Building Services Department
This Department oversees all new
construction or additions to existing
buildings in the city, including
industrial, commercial and
residential properties.
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