The URL can be used to link to this page

Home My WebLink AboutCity of Provo - Public Financial ReportPROVO CITY, UTAH POPULAR ANNUAL FINANCIAL REPORT City of Provo, Utah FISCAL YEAR ENDED June 30, 2021 2021 INTRODUCTION To the Citizens of Provo City ....................................................................................................................... 1 Provo at a Glance ....................................................................................................................................... 2 Elected Officials .......................................................................................................................................... 4 Key City Services ........................................................................................................................................ 5 FINANCIAL INFORMATION Statement of Net Position ........................................................................................................................... 6 Statement of Activities ................................................................................................................................ 7 General Fund Revenues ............................................................................................................................. 8 General Fund Expenses ............................................................................................................................. 9 General Fund: Fund Balance .................................................................................................................... 10 Library Fund .............................................................................................................................................. 11 Property Tax Summary ............................................................................................................................. 12 Enterprise Funds....................................................................................................................................... 13 Debt Summary (Citywide) ......................................................................................................................... 14 TABLE OF CONTENTS 1 Provo City Popular Annual Financial Report June 30, 2021 GFOA Outstanding Achievement Award for the 2020 PAFR e are proud to present the City of Provo’s Popular Annual Finan- cial Report (PAFR) for the fiscal year ended June 30, 2021. This report gives readers a summary of the City’s financial standing. The purpose of the PAFR is to illustrate the City’s financial infor- mation in a clear, concise manner giving all readers, both finan- cial and non-financial, the understanding of where revenue comes from and where dollars are being spent. Most importantly, it is essential that our citizens understand the key services that the City provides to make Provo a safer and more enjoyable place in which to work, live, and play. The PAFR summarizes the financial activities of the City and is drawn from a more detailed report called the Comprehensive Annual Financial Report. This annual report includes financial statements that were prepared in conformance with Gener- ally Accepted Accounting Principles (GAAP) and audited by HBME, LLC, an inde- pendent auditing firm. The 2021 annual report has received an unmodified (clean) opinion. The numbers contained within the annual report were acquired by applying the basis of accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). Although the numbers used in the PAFR come from an audited source, we have presented them in a condensed, easy to understand, non-GAAP format. GAAP reports deal with the presentation of segregated funds as well as full disclosure of all material financial and non-financial events in notes to the financial statements, while non-GAAP reports do not contain such notes. Citizens who wish to review audited GAAP basis financial statements can refer to the City of Provo’s Comprehensive Annual Financial Report, which is available from the Finance Department or on the City of Provo’s website at https://www.provo.org/ departments/finance/financial-reports. Provo has received the Government Finance Officer Association award for last year’s PAFR which indicates the City’s commitment to providing a report to resi- dents that is easy to understand and gives an overview of the City’s finances. As a municipality, we want to continue to be transparent with and accountable for the City’s financial information. We anticipate that after reading this year’s PAFR, com- munity members will be reassured that public dollars are being used to build a bet- ter, safer, and stronger Provo. With the help of all departments, the City, in 2021, has accomplished many goals set within the General Plan and Master Plan docu- ments. All of these positive achievements have helped to increase growth and suc- cess in our City. We look forward to the future of Provo. We are honored to serve Provo citizens and hope you enjoy reviewing the 2021 PAFR. We welcome any input, questions, and comments you may have regarding this report. You may contact the Finance Division at 801-852-6505. Sincerely, Michelle Kaufusi TO THE CITIZENS OF PROVO W TO VIEW BOTH THE CITY’S FULL COMPREHENSIVE ANNUAL FINANCIAL REPORT AND POPULAR ANNUAL FINANCIAL REPORT, PLEASE VISIT: https://www.provo.org/ departments/finance/financial- reports COVER PHOTO: Timpanogos Golf Club 2 Provo City Popular Annual Financial Report June 30, 2021 1. Brigham Young University 2. Utah Valley Regional Medical Cen- ter 3. Vivint, Inc. 4. Revere Health (Central Utah Medi- cal Clinic) 5. Chrysalis Utah, Inc. 6. Qualtrics, LLC 7. RBD Acquisition Sub, Inc 8. Frontier Communications 9. UHS of Provo Canyon, Inc 10. Utah State Hospital The City of Provo was incorporated in 1851 and is located in a metropolitan area in Utah County that has a dynamic and diverse econo- my. The City has received numerous awards as one of the finest cities in the United States in which to live and do business. The City has a diverse manufacturing and in- dustrial base. Major industries include retail business, light manufacturing, software devel- opment, and a university community. This di- versity stabilizes the unemployment rate and offers a broad range of employment opportuni- ties. Provo’s economy continues to outperform the national economy in the midst of the COVID- 19 pandemic, with Provo’s unemployment rate averaging 2.96% for the fiscal year compared to the United States average unemployment rate of 6.92% (jobs.utah.gov). The City closely monitors the current economic environment and plans and budgets for the future accord- ingly. You can view the City’s budget at https:// www.provo.org/departments/finance/financial- reports. PROVO AT A GLANCE TOP TEN EMPLOYERS 3 Provo City Popular Annual Financial Report June 30, 2021 PROVO AT A GLANCE (continued) Top Rankings #1 BEST PERFORMING CITY (Milken Institute, February 2021) #1 SAFEST BIG CITY IN UTAH (MoneyGeek; January 2021) #1 PLACE WHERE AMERICANS GIVE THE MOST TO CHARITY (SmartAsset; November 2020) #3 BEST COLLEGE CITY IN AMERICA (WalletHub), December 2020) #3 BEST-RUN CITY (WalletHub; July 2020) #21 SAFEST CITY IN THE NATION (MoneyGeek; January 2021) Significant Events Timpanogas Golf Club (featured on cover) reno- vation project was completed on time and under budget. New City Hall - Construction continued on the new City Hall and public safety building, with an expected completion date in May of 2022. New Airport Terminal - Construction continued on the new airport terminal with an expected con- struction completion date of May 2022. When completed, this will include the new terminal build- ing and the associated parking lots, access roads, apron, and de-ice pads. The newer and larger ter- minal will include four gates with the ability to ex- pand to ten gates. Provo Parks and Recreation achieved accredi- tation through the Commission for Accreditation of Parks and Recreation Agencies, becoming one of only 180 accredited departments out of over 10,000 nationally. Rotary Park Court conversion project was com- pleted with a June 2021 opening ceremony. This includes 4 new tennis and 8 new pickleball con- crete based courts. PROVO AREA 44.19 SQ. MILES MEDIAN AGE 23.6 POPULATION 115,162 PUBLIC SCHOOLS 22 PERCENTAGE of HOMEOWNERSHIP 39.6% MEDIAN HOUSEHOLD INCOME $48,888 MEDIAN HOUSING VALUE (2019) $271,300 REGISTERED VOTERS 45,441 NUMBER of PARKS 54 SALES TAX RATE 7.25% 4 Provo City Popular Annual Financial Report June 30, 2021 Chief Deputy Mayor ....................................... Isaac Paxman Chief Administrative Officer ........................... Wayne Parker Assistant City Administrative Officer .............. Dixon Holmes Administrative Services ..................................... John Borget City Attorney .................................................... Brian Jones* Community & Neighborhood Services ........... Bill Peperone* Customer Service ............................... Amanda Ercanbrack* Development Services .................................... Bill Peperone Energy ................................................................. Travis Ball Fire Chief ....................................................... James Miguel Library Services ............................................... Gene Nelson Parks and Recreation ................................ Scott Henderson Police Chief ......................................................... Fred Ross* Public Works ................................................... David Decker *Appointed in Fiscal Year 2022 Council Executive Director .............................. Cliff Strachan CITY ADMINISTRATION (801) 852-6000 Left to right: Shannon Ellsworth, Travis Hoban, Bill Fillmore, Mayor Michelle Kaufusi, Dave Sewell (Chair), George Handley, David Harding, David Shipley (Vice-Chair) MAYOR & CITY COUNCIL ELECTED OFFICIALS COUNCIL ADMINISTRATION (801) 852-8200 5 Provo City Popular Annual Financial Report June 30, 2021 Mayor—The Mayor’s Office enforces laws applicable to those residing or conducting business in Provo, executes policies adopted by the Municipal Council, prepares and submits the annual city budget, and rec- ommends for adoption such measures as may be deemed necessary or proper for the efficient opera- tion of the City. Administrative Services—Administrative Services is comprised of the Finance, Human Resources, and Information Systems divisions within the general fund. Administrative Services is also responsible for the ad- ministration of the Justice Court and for facility maintenance throughout the City of Provo. Attorney’s Office—The Attorney’s Office provides the City with a broad range of legal services, including criminal prosecution, litigation, claims and risk man- agement, and safety. The Attorney’s Office also initi- ates and defends civil lawsuits on behalf of Provo City, reviews contracts, participates in negotiations, and provides legal opinions. Community & Neighborhood Services—This de- partment is responsible for regulating land develop- ment that takes place within the City. Long Range Planning, Zoning, Housing, Parking Enforcement, Li- censing, and Property Management work together to provide the City with an aesthetically pleasing, clean, and safe environment. Customer Service—The Customer Service Depart- ment provides residents with a way to report issues and acquire information from the City. The depart- ment also provides other services such as issuing passports and accepting utility payments. Development Services—is responsible for regulating land development that takes place within the City. Short Term Planning balances socio-economic forc- es, natural resources, and public input to promote sound and orderly development in Provo. Energy—The Energy Department provides reliable electricity with superior customer service at a compet- itive price to the residents and businesses in Provo. Fire—The Fire Department is responsible for deliver- ing emergency and support services in the following areas: fire prevention and education, inspection ser- vices, fire suppression, emergency medical treatment and ambulance transport, rescue services, and haz- ardous materials response. Library—The Provo City Library provides the commu- nity with a center for information, instruction, learning, leisure, and cultural opportunities. The Library has over 215 thousand items in adult and children’s circu- lation, along with access to thousands of online eBooks and audiobooks. Parks and Recreation—The Parks and Recreation Department oversees the maintenance of all parks throughout Provo. The recreation center, the gun range, Peaks Ice Arena, and the Covey Center are also managed by this department, as well as all youth and adult recreation programs. Police—The Police Department provides response to community-initiated calls for service and enforces all laws. The department provides proactive policing and service to the community including animal control, community-based pollution, and crime prevention. Public Works—The Public Works Department is re- sponsible for maintaining streets in Provo, garbage collection, water resources and reclamation, storm drain maintenance, airport administration, and fleet management. The following includes brief highlights of major departments and services within Provo City. Please refer to the Provo City website at provo.org for any additional information about departments or ser- vices described. KEY CITY SERVICES 6 Provo City Popular Annual Financial Report June 30, 2021 The City’s governmental activities increased $28.7 million in total net position, which represents a 7.64% increase from the prior year’s net position. The City’s business-type activities increased $37.1 million in total net position, which represents a 11.25% increase from the prior year’s net posi- tion. A major contributor to the increase in net position for both governmental activities and busi- ness-type activities is operating grants, capital grants, and other contributions. The City, as a whole, increased total net position by $65.9 million, which is a 9.33% increase from the prior year. The full Statement of Net Position can be located in our Comprehensive Annual Financial Report, located at https://www.provo.org/departments/finance/financial-reports. Unrestricted net position represents the available funds the City has at a point in time to pay for emergencies, shortfalls, or other unexpected needs in both the Governmental and Business-Type Activities. Unrestricted net position allows management to track the City’s financial position over time. The City’s unrestricted net position increased during fiscal year 2021. STATEMENT OF NET POSITION STATEMENT OF NET POSITION 2021 2020 2021 2020 2021 2020 Current assets 188,122,966$ 185,251,285$ 87,516,330$ 72,037,401$ 275,639,296$ 257,288,686$ Capital assets, net 392,917,618 360,139,400 359,427,624 317,934,167 752,345,242 678,073,567 Other non-current assets 28,639,257 26,298,091 14,140,716 10,705,461 42,779,973 37,003,552 Total Assets 609,679,841 571,688,776 461,084,670 400,677,029 1,070,764,511 972,365,805 Deferred Outflows of Resources 9,221,356 8,516,023 1,568,979 1,377,952 10,790,335 9,893,975 Current liabilities 56,074,972 34,986,041 24,871,637 18,695,807 80,946,609 53,681,848 Non-current liabilities 127,266,849 144,136,503 67,449,251 51,360,401 194,716,100 195,496,904 Total Liabilities 183,341,821 179,122,544 92,320,888 70,056,208 275,662,709 249,178,752 Deferred Inflows of Resources 30,404,327 24,684,956 2,859,190 1,685,425 33,263,517 26,370,381 Net Position Net investment in capital assets 307,163,818 297,030,512 292,257,186 268,883,944 599,421,004 565,914,456 Restricted 15,418,477 10,080,095 12,895,977 1,628,190 28,314,454 11,708,285 Unrestricted 82,572,754 69,286,692 62,320,348 59,801,214 144,893,102 129,087,906 Total net position 405,155,049$ 376,397,299$ 367,473,511$ 330,313,348$ 772,628,560$ 706,710,647$ Governmental Activities Business-Type Activities Total 7 Provo City Popular Annual Financial Report June 30, 2021 As shown in the graphs above, both the Governmental and Business-type activities show trends of steady or increasing revenues. Expenditures have been consistently lower than revenues for both Governmental and Business-type activities. The graph for governmental activities includes net transfers-in with revenues since 10% of certain business- type revenues (i.e., energy, storm drain, water, sanitation, and wastewater revenues) are transferred to the general fund to support governmental activities. In addition, 1% of these same revenues is transferred out of business-type activities for road maintenance. Consequently, because of the transfers, the graph for busi- ness-type activities includes net transfers out with expenses. STATEMENT OF ACTIVITIES FUNCTIONS OF BUSINESS-TYPE ACTIVITIES • Golf Course • Water • Wastewater • Energy • Airport • Utility Transportation • Sanitation • Storm Drain • Ice Sheet The full, disclosed Statement of Activities can be located in our Comprehensive Financial An- nual Report located at https://www.provo.org/departments/finance/financial-reports . FUNCTIONS OF GOVERNMENTAL ACTIVITIES • General Government • Public Safety • Public Services • Culture and Recreation • Community Revitalization • Interest on Long-Term Debt - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2017 2018 2019 2020 2021 GOVERNMENTAL ACTIVITIES Revenues and Expenses Revenues & Net Transfers In Expenses - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2017 2018 2019 2020 2021 BUSINESS-TYPE ACTIVITES Revenues and Expenses Revenues & Net Transfers In Expenses 8 Provo City Popular Annual Financial Report June 30, 2021 The General Fund is the general operating fund of the City. By law, the City may only have one general fund. Below is a five-year comparison of the General Fund total revenues and transfers in. The largest source of revenue for the General Fund was sales tax (30%), followed by transfers from other funds (18%) and charges for services (14%). Charges for services includes fees charged by various City depart- ments, such as Parks & Recreation fees. Intergovernmental revenue comes from grants obtained through the County, State, or federal govern- ment. As shown above, sales tax continues to increase—a good indicator that Provo and the State of Utah’s economy continues to grow. GENERAL FUND REVENUES - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 GENERAL FUND: TOTAL REVENUES & TRANSFERS IN 2017 2018 2019 2020 2021 30% 13% 7% 3%18% 14% 5% 5% 2%2%1% REVENUES IN FISCAL YEAR 2021 Sales Tax Franchise Fees Property Tax Other Taxes Transfers From Other Funds Charges for Services State Road Allocation Intergovernmental Fines & Forfeitures Licenses & Permits Other 9 Provo City Popular Annual Financial Report June 30, 2021 Below is a five-year comparison of general fund expenditures and transfers out. Expenses decreased or stayed relative- ly constant in each category, with the exception of Fire and Transfers to Other Funds. Fire’s expenses increased and Police decreased because the Emergency Response expenses were combined with Fire’s expenses in the FY21 report. However, in previous years, Emergency Response expenses were combined with Police. Transfers to Other Funds was higher because savings from the CARES Act funding was transferred to a new fund called the Legacy CIP Fund. The general fund’s largest expenses continued to come from the Police De- partment (30%), followed by the Gen- eral Government category (18%), which is comprised of the Mayor’s Office, City Council, Finance, Human Resources, Justice Court, and Legal functions. Parks & Recreation accounts for 16% of expenses, and the Fire Department ac- counts for 15% of expenses. In most categories, personnel costs made up the largest portion of expens- es. GENERAL FUND EXPENSES Police……………………….155 General Government……..110 Parks & Rec………………..165 Fire…………………………...84 Streets & Engineering……..34 # of EMPLOYEES WORKING UNDER THE GENERAL FUND Employees = Full-time Equivalents (FTE’s) 30% 18% 16% 15% 6% 5% 6% 4% EXPENSES IN FISCAL YEAR 2021 Police General Government Parks & Recreation Fire Streets & Engineering Community & Development Capital Outlay Transfers to Other Funds - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 22,000,000 GENERAL FUND: TOTAL EXPENSES & TRANSFERS OUT 2017 2018 2019 2020 2021 10 Provo City Popular Annual Financial Report June 30, 2021 FUND BALANCE is the differ- ence between the General Fund’s assets and liabilities. It is the net worth of the City. Assigned fund balance shows how much money has been set aside for specific purposes. Unassigned fund balance is an indication of the amount of avail- able resources the City has at a point in time to fund emergen- cies, shortfalls, or other unex- pected needs. The ratio depicted in the bottom left graph is determined by divid- ing the amount of assigned & unassigned fund balance by the general fund revenue and subsi- dy transfers. The Municipal Council has es- tablished a goal to have as- signed & unassigned general fund balance between 20%-35%. In fiscal year 2021, assigned and unassigned fund balance in- creased by $6,422,140 or 37%, primarily due a large increase in sales tax revenue. GENERAL FUND: FUND BALANCE - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2017 2018 2019 2020 2021 GENERAL FUND FUND BALANCE: ASSIGNED & UNASSIGNED Unassigned Fund Balance Assigned Fund Balance 0% 5% 10% 15% 20% 25% 30% 35% 2017 2018 2019 2020 2021 RATIO of ASSIGNED & UNASSIGNED FUND BALANCE to REVENUES & TRANSFERS Unassigned % of Budgeted Revenues Assigned % of Budgeted Revenues 11 Provo City Popular Annual Financial Report June 30, 2021 The Provo Library was founded over 100 years ago with the goal of being a community center for in- formation, instruction, leisure, and cultural opportunities. In the past year, the Library checked out over 1.7 million items, which includes formats such as downloadable eBooks and audiobooks. During fiscal year 2021, 26,282 people attended 337 pro- grams held for children, teens, and adults. The Library Fund is the largest single special revenue fund within Provo City. The Provo City Li- brary is funded primarily by property tax dollars. LIBRARY FUND Property Tax 95% Fees/Charges 3% Interest 1%Miscellaneous 1% Library Revenue THERE ARE 59 EMPLOYEES WORKING UNDER THE LIBRARY FUND Employees = Full-time Equivalents (FTE’s) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 FY2017 FY2018 FY2019 FY2020 FY2021 Library Fund Revenues & Expenditures Revenue Expenditures 12 Provo City Popular Annual Financial Report June 30, 2021 The City of Provo receives a portion of the property taxes collected on taxable real property located within the City. These tax dollars support public safety services such as those provided by police and fire departments, as well as many other critical government functions. Property Tax Burden for $200,000 Market Value Property PROPERTY TAX SUMMARY Between its three funds, Provo City re- ceived 21.3% of the overall property tax burden. The majority of the property taxes paid by Provo City residents are allocated to the Provo School District, which is a separate entity from Provo City. PROVO CITY’S TOP TEN PROPERTY TAX PAYERS Amounts expressed in thousands 1% 4%5% 6% 8% 10% 66% State Charter Schools 15.02$ Central Utah Water 66.00$ Provo Library Fund 81.84$ Provo General Fund 112.70$ Utah County 140.75$ Provo Debt Service Fund 173.42$ School District 1,142.79$ Total Tax Burden for the taxable 1,732.50$ value of a $300,000 Home. Tax Payer Type of Business 2021 Assessed Valuations % Total of Valuation SIR Properties Trust (Microfocus)Technology 111,909$ 1.53% IHC Hospitals Inc Health Care 98,228 1.35% Nu Skin International Inc Retail 91,508 1.25% B+ F Timpanogos Tech Center LLC Technology 79,732 1.09% Century Land Holdings Investments 52,632 0.72% Union Pacific Railroad Company Transportation 49,919 0.68% Vista Heights Investments Investments 42,903 0.59% Duncan Aviation Transportation 41,105 0.56% Questar Gas Utilities 38,191 0.52% Brixton Provo Mall LLC Retail 37,588 0.51% Subtotal 643,715 8.80% All Others 6,656,137 91.20% 7,299,852$ 100.00% 13 Provo City Popular Annual Financial Report June 30, 2021 Enterprise funds are used to account for City operations that are fi- nanced and operated in a manner similar to private businesses. Revenues and expenses related to utilities including Provo Power (energy), water, wastewater, and sanitation (garbage, recycling, and green waste) are account- ed for in enterprise funds. *Readers interested in more details should read the Comprehensive Annu- al Financial Report availa- ble at https://www.provo.org/ departments/finance/ financial-reports. Energy………...67 Water…………….39 Wastewater…….34 Airport………...6 Sanitation…….21 Golf……………..15 $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 Energy Water Wastewater Airport *Total Nonmajor Proprietary Funds ENTERPRISE FUNDS: REVENUES & TRANSFERS IN 5-Year Comparison FY2017 FY2018 FY2019 FY2020 FY2021 ENTERPRISE FUNDS # of EMPLOYEES WORKING UNDER ENTERPRISE FUNDS Employees = Full-time Equivalents (FTE’s) $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 Energy Water Wastewater Airport *Total Nonmajor Proprietary Funds ENTERPRISE FUNDS: EXPENSES & TRANSFERS OUT 5-Year Comparison FY2017 FY2018 FY2019 FY2020 FY2021 14 Provo City Popular Annual Financial Report June 30, 2021 Provo City has employed a variety of financing techniques for capital improvements, as described below: General Obligation Bonds: These bonds allow municipalities to borrow money to fund capital improve- ments and infrastructure. Repayment of General Obligation Bonds is guaranteed by the “full faith and cred- it” of the City. Revenue Bonds: Revenue bonds are secured by the issuer pledging specific revenues either from the projects being financed and/or other dedicated revenue sources such as franchise fees of utility service revenue. Capital Leases: The City uses capital leases to purchase vehicles and equipment. At the end of fiscal year 2019, the City had $179.6 million in long-term debt outstanding which represents a 48.73% increase from the prior year due to a new general obligation bond to rebuild a fire station, the pub- lic safety building, and City Hall, in addition to new capital leases for fire trucks and equipment. DEBT SUMMARY (CITYWIDE) Provo City has employed a variety of financing techniques for capital improvements, as described below: General Obligation Bonds: These bonds allow municipalities to borrow money to fund capital improve- ments and infrastructure. Repayment of General Obligation Bonds is guaranteed by the “full faith and cred- it” of the City. Revenue Bonds: Revenue bonds are secured by the issuer pledging specific revenues either from the projects being financed and/or other dedicated revenue sources such as franchise fees of utility service revenue. Capital Leases: The City uses capital leases to purchase vehicles and equipment. At the end of fiscal year 2021, the City had $182 million in long-term debt outstanding which represents a .64% decrease from the prior year . Historical Debt (in $000s)2017 2018 2019 2020 2021 General Obligation Bonds 34,867$ 35,411$ 103,961$ 99,237$ 94,399$ General Revenue Bonds 25,702 23,568 20,156 17,850 15,420 Utility Revenue Bonds 43,857 41,648 39,381 37,042 49,578 Sales Tax Revenue Bonds - 5,507 5,473 5,309 5,000 Capital Leases 6,793 5,797 7,274 5,958 4,616 Notes Payable - - 1,150 8,370 3,136 Compensated Absences 8,414 8,850 8,897 9,474 9,915 Total: 119,633$ 120,781$ 186,292$ 183,240$ 182,064$ Debt Activity (in $000s) Balance at 6/30/2020 Net Debt Added (Issued) Net Debt Repaid (Retired) Balance at 6/30/2021 Compensated Absences 9,474 3,283 (2,842) 9,915 Capital Leases 5,958 - (1,342) 4,616 Notes Payable 3,370 - (234) 3,136 General Obligation Bonds:99,236 - (4,837) 94,399 General Revenue Bonds 17,850 - (2,430) 15,420 Energy Revenue Bonds 16,354 - (840) 15,514 Water Revenue Bonds 9,802 - (507) 9,295 Wastewater Revenue Bonds 8,174 14,955 (426) 22,703 Stormwater Revenue Bonds 2,712 - (646) 2,066 Airport Sales Tax Revenue Bonds 5,309 - (309) 5,000 Total:178,239$ 18,238$ (14,413)$ 182,064$ 15 Provo City Popular Annual Financial Report June 30, 2021 DEBT SUMMARY (CONTINUED) Bond Ratings: Similar to how individuals have credit scores, municipalities receive bond ratings from three agencies. The three agencies are S&P Global, Fitch Ratings, and Moody’s Investors Service. The table below shows Provo City’s bond ratings from one or more of these agencies for individual revenue and general obligation bonds that comprise the City’s debt. 16 Provo City Popular Annual Financial Report June 30, 2021 CONTACT US: General - (801) 852-6000 Finance - (801) 852-6505