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HomeMy WebLinkAboutTown of Barrington - Public Financial ReportTOWN OF BARRINGTON, RITOWN OF BARRINGTON, RI For the Fiscal Year Ended June 2021 For the Fiscal Year Ended June 2021 Popular Annual Financial Report 2021Popular Annual Financial Report 2021 Kathleen Raposa, Business & Finance Director 283 County Rd, Barrington, RI 02806https://www.barrington.ri.gov/ To keep you informed on how your tax dollars are being spent, we are pleased to present the Town of Barrington’s second Popular AnnualFinancial Report (PAFR), for the fiscal year ended June 30, 2021. The PAFR is a summary of the town’s finances. The PAFR presents a summary of financial information from the Annual Comprehensive FinancialReport (ACFR) in a user-friendly version. This publication is not to beused as a substitution for the ACFR, which contains more detailed information, including audited financial statements, notes and schedules. The ACFR and the PAFR can be found on the Town’s website. The ACFR isprepared following Generally Accepted Accounting Principles (GAAP) and is audited by Bacon & Company CPAs, LLC. The report differs from GAAP Financial Statements because accounting data has been summarized and component units have been left out. Our goal is to communicate important financial information that is meaningful, helping you to understand how your tax dollars support our town's services and facilities. We hope that the information presented inthe PAFR will allow you to better understand the Town’s financial health. Dear Barrington Residents, 1 Message for Residents....1 Awards & Recognition.....2 About Barrington......3 Economy and Industry......4 General Funds: Revenues...5 General Funds: Expenditures...6 Net Position.........7 Government-Wide Financials...........8 Fund Balance.....9 Capital Assets.........10 Debt: How much do we owe?.................11 Conclusion................12 Map of Rhode ISland.......13 Table Of Contents Town Governance Top image- Town Manager: Phil Hervey Bottom image- Council Members (Left to right)- Annelise Conway, Jacob N.S. Brier, Carl P. Kustell, Robert Humm (Vice President), Michael Carroll (President) The Town of Barrington's Popular Annual Financial Report (PAFR) was awarded for Outstanding Achievement in Popular Annual Financial Reporting for the first time from the Government Finance Officers Association of the United States and Canada (GFOA). This award is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Financial Reporting is valid for only one year. We believe our current report continues to conform to the Popular Annual Financial reporting requirements, and we are submitting it to GFOA to determine its eligibility for another award. A WARDS &RECOGNITION 2 The Town of Barrington was incorporated as a Town on June 16, 1770. It is located in Bristol County on the east side of Narragansett Bay, in the State of Rhode Island and approximately nine miles southeast of Providence. The Town of Barrington is made up of predominately single- family homes and a small mix of multi-family homes and commercial clusters. The Town operates under a charter form of government, which provides for a five-member town council that is elected for four-year terms, at the regular elections every two years. They are responsible for enacting local legislation. The town operates under a Town Council- High School Graduates Bachelor's Degree or Higher 100% 75% 50% 25% 0% Asian:- 3.7% Hispanic or Latino:- 3.6% AB OUT BARRINGTON 97.1% 69.1% Education percentages of people ages 25+ White:- 89.4% Black:- 0.5%Two or more races:- 2.7%American Indian and Alaska Native :- 0.1% 0%20%40%60% Under 5 years 6 to 18 years 19 to 64 years 65 years & over Race and Age Distribution 3 Government Organization Structure The Citizens of Barrington Town Council Boards & Commissions General Government Town Solicitor Town Manager Public Safety Finance Community Services Library Services Public Works Public Safety: police, fire, dispatch and harbor control Public Works: sewer, streets, engineering, land and building maintenance Other services: recreation, education, senior services and general administrative services Town Manager form of government and provides the following services as authorized by its charter: To know more about the Town of Barrington and our services visit our website- https://www.barrington.ri.gov/ Barrington is primarily a suburban residential community. The median income of individuals in the town is $65,777 and the average household income is $147,849. Most employment opportunities extend outside the Town to the cities of Providence and Boston. The Town had 576 private businesses and 12 government units in the first quarter of 2021. The private sector employed the bulk, approximately 2,198 people with wages over $28.3 million. E C ONOMY AND INDUSTRY EMPLOYERS Town of Barrington East Side Clinical Lab Residential Properties Shaw's Supermarket New England Linen Supply RI Country Club Saint Andrew's School Atria Bay Spring Village Jet Electro Finishing East Bay Center Inc. EMPLOYEES 558 300 185 150 138 109 90 70 68 66 4 Top Ten Employers Business Units by Industry INDUSTRY Professional and Technical Services Healthcare and Social Assistance Construction Wholesale Trade Administrative Support and Waste Management Finance and Insurance Retail Trade Accommodation and Food Services Education Services Information Arts, Entertainment and Recreation Real Estate, Rental and Leasing Government Other Total Business Units Government jobs employed 707 people with wages at approximately $9 million. The largest industries in the Town are 'professional & technical services' with 111 business units and 'healthcare & social assistance' with 98 business units. The businesses below support the Town by paying personal property (tangible) taxes based on the assets they own. Total town population:16,310 Unemployment rate: 4.5% Median sale price of home: $489,000 Median household income: $ 147,849 Households with acomputer: 95.4%Households with internet broadband: 92.4% Town Economic Stats UNITS 111 98 47 40 35 29 29 26 21 17 16 16 12 91 588 The General Fund allocates money to provide services to its residents. The Town of Barrington's government services is funded through various fees, fines, licenses, grants, aid and taxes. For the fiscal year 2020-2021, the Town collected total revenue of $79,177,000 from different sources. The Town received $1,154,056 from the State of RI, as Housing Aid for the Middle School project, which was transferred into a fund for future debt payments. This amount is included in the total revenue. Tax Information 5 TAX BREAK UP Residential property tax (90%) Other taxes (10%): Commercial Property tax Motor Vehicle Tax Personal Property Tax DIFFERENCE(-/+ ) $266,693 $12,562 $97,036 $444,659 $1,569,895 ------ $89,736 $2,455,457 REVENUES General Property Taxes Intergovernmental Revenues Investment and Interest Income Other Local Revenue State Aid and Grant Rescue Service Fees Miscellaneous Total Revenues BUDGETED AMOUNTS $66,730,400 $220,942 $180,000 $1,432,626 7,602,035 $400,000 $155,540 $76,721,543 ACTUAL AMOUNTS $66,997,093 $208,380 $277,036 $1,877,285 $9,171,930 $400,000 $245,276 $79,177,000 TAX RATE FORPROPERTY VALUE $19.15 for $1000 $19.15 for $1000 $30.00 for $1000 $19.15 for $1000 DOLLARS IN COVID Relief Funds were received Money was received for Housing Aid Realty Stamps and Land Records was greater than expected because more houses were soldInvestment income was higher than budgeted More inspections were conducted throughout the This year the Town collected excess revenue of $2,455,457 mainly from: town than budgeted GENERAL FUND REVENUES ITEM Revenue Surplus Expenditure Overage Total Surplus Surplus AMOUNT $2,455,457 $(917,529) $1,537,928 The tax on $400,000 home would be $7,660. 12 cents per dollar spent on DEBT SERVICE 7 cents per dollar spent on PUBLIC SAFETY 4 cents per dollar spent on PUBLIC WORKS 2 cents per dollar spent on OTHER EXPENSES 3 cents per dollar spent on LEGISLATIVE, JUDICIAL AND ADMINISTRATIVE EXPENSES 2 cents per dollar spent on PUBLIC LIBRARY 6 cents per dollar spent on EMPLOYEE BENEFITS 6 DIFFERENCE (-/+ ) $----------- $66,412 $128,616 $26,715 $1,210 $17,641 $11,564 $-------- $13,838 $3,878 $(37,602) $(86) $4,341 $---------- $(1,154,056) $(917,529) EXPENDITURES Public School Appropriation Legislative, Judicial, and Administrative Public Safety Public Works Debt Service Employee Benefits Public Library Other Expenditures Agency Support Recreation Department Adult Enrichment Center Government Utilities Capital Items Miscellaneous Transfers In/Out Debt Stabilization Total Expenditures BUDGETED AMOUNTS $48,208,708 $2,270,650 $5,634,035 $3,479,482 $8,942,154 $4,572,500 $1,261,345 $5,500 $152,150 $118,224 $324,500 $3,200 $14,500 $1,734,595 $--------- $76,721,543 ACTUAL AMOUNTS $48,208,708 $2,204,238 $5,505,419 $3,452,767 $8,940,944 $4,554,859 $1,249,781 $5,500 $138,312 $114,346 $362,102 $3,286 $10,159 $1,734,595 $1,154,056 $77,639,072 GENERAL FUND DOLLARS OUT 64 cents per dollar spent on PUBLIC SCHOOLS EXPENDITURES Expenditure per dollar The Town overspent $917,529 in expenditures mainly from: Transfer of $1,154,056 to a Debt Fund Expenditure savings was due to less spent on salaries than budgeted in the Police and Tax Assessor departments There was savings in benefits The General Fund Surplus (Excess revenue - Expenditure deficit) for the year was $1,537,928 (2% of the Total Revenue). Assets Current assets Capital assets Other non-current assets Total Assets Deferred Outflows of Resources Liabilities Current Liabilities Long-term Liabilities Total Liabilities Deferred Inflows of Resources Total Net Position Net Position Net Investment in Capital Assets Restricted Unrestricted Total Net Position 2021 $58,570,338 $142,530,692 $13,555,082 $214,656,112 $16,192,979 $7,309,388 $142,597,865 $149,907,253 $12,379,765 $68,562,073 $67,355,719 $7,155,514 ($5,949,160) $68,562,073 2020 $56,205,785 $145,337,077 $9,795,090 $211,337,952 $14,227,189 $10,698,799 $146,240,021 $156,938,820 $7,740,974 $60,885,347 $64,685,861 $6,839,470 ($10,639,984) $60,885,347 Government activities are used for government services provided by the town such as public safety, public works, administration and others. Proprietary funds are used to fund business-type activities. The Town of Barrington's Net Position includes a summary of what the Town owns (Assets) and owes (Liabilities). Net position is the difference between Total Assets and Total Liabilities. The Statement of Net Position uses the full accrual basis of accounting. All debt and pension liabilities are included. The Town’s combined net position (Government and Proprietary) amounts to $68,562,073. Business-type activities charge fees to customers to cover the costs of certain services such as sewer services. 7 STATEMENT OF NET POSITION The largest portion of the net position (98%) is Net Investments in Capital Assets (NICA) which totals $67,355,719. NICA includes buildings, land, machinery, vehicles, construction in progress, equipment and other capital infrastructure. Assets are not available for future spending as they cannot be liquidated. Portions of the net position are resources that are subject to external restrictions and unrestricted resources that may be used to meet Town and resident's needs. The Town's net position has increased and shows a stronger financial position than the previous year. GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES The Statement of Activity presents a comparison between direct expenses and program revenues for all governmental and business-type activities. The Town of Barrington's net position increased by $7,676,726 in the year 2020-2021. There was an increase of $7,576,297 in government activities which were due to an increase in capital assets. There was a increase in business activities by $100,429 as expenses exceed revenues due to unbudgeted deprecation exceeding budgeted principal debt payments. 8 Revenue: Program Revenues: Charges for Services OperatingGrants/Contributions Capital Grants/Contributions General Revenues: Property Taxes State Aid and in Lieu of Tax Other Revenue Total Revenues(1) Expenses: General Government Interest on Long-Term Debt Education Total Expenses(2) Increase in Net Position(1-2) 2021 $8,140,005 $20,809,451 $273,433 $67,525,686 1,222,313 $1,004,305 $98,975,193 $26,092,206 $2,667,129 $62,539,132 $91,298,467 $7,676,726 2020 $7,814,021 $12,360,464 $727,184 $65,449,031 $2,509,707 $633,310 $89,493,717 $24,998,854 $2,786,560 $57,964,208 $85,749,622 $3,744,095 STATEMENT OF ACTIVITIES GOVERNMENT-WIDE FINANCIALS GOVERNMENTAL AND BUSINESS-TYPE ACTIVITIES 2019 $8,249,089 $11,639,472 $194,612 $64,522,653 $1,287,902 $1,466,250 $87,359,978 $23,179,205 $2,919,692 $57,098,126 $83,197,023 $4,162,955 FUND BALANCE Fund Balance is the accumulation of profits and losses over the years. Fund Balance can be divided into five categories: Nonspendable, Restricted, Committed, Assigned, or Unassigned. These classifications tell how much of the fund balance must be reserved for specific uses as required by the funding source, the council, management, or the law. Fund Balance may be "Restricted" due to externally enforceable restrictions. "Committed" balances are used for a specific purpose and imposed by the governing body. "Unassigned" describes the portion of Fund Balance that has no restriction on how it may be used. "Nonspendable" are balances that are illiquid or required to be maintained. "Assigned" balances comprise amounts intended to be used by the government for specific purposes. FUND BALANCE Nonspendable: Tax Title Property Prepaid Expenditure Inventory Restricted for: Education Programs Committed for: Zoning Rewrite Revaluation Assigned to: Restoration Projects Recreation Programs Recycling Projects Field Maintenance Council Contingency Education Enrichment Programs Testing Summer Sport Camps Debt Stabilization Unassigned Fund Balance General Fund Balance 2021 $45,503 $153,277 $1,426 $2,633,122 19,196 $476,299 $9,491 $40,304 $92,035 $440,854 $12,090 $60,700 $117,617 77,808 1,154,056 21,458,504 $26,792,282 2020 $45,503 $906,706 1,601 $3,004,088 ---------- $391,968 9,491 $29,060 $92,035 $379,543 $14,590 $61,703 ---------- ---------- ---------- $20,074,536 $25,010,824 2019 $45,503 $904,375 $2,111 $787,050 ---------- $290,581 $9,491 $32,074 $92,035 $362,644 $11,163 62,678 --------- --------- --------- $19,420,868 $22,020,573 The policy of the Town is to maintain an unassigned fund balance at 30% of general fund operating expenditures. Anything over 30%, once achieved, will be added to the Capital Reserve Fund. Currently, there is no balance in the Capital Reserve Fund. Capital Reserve Funds are used to acquire capital assets. Comparing unassigned fund balance to expenditures is a great method of evaluating general fund liquidity. 9 Capital assets are the assets owned by the Town over a long-term period. On June 30, 2021, the Town's investment in capital assets amounted to $142,530,692. The total increase in capital assets in the current year was $76,139,749, of which, $63,398,130 was completion of the Middle School, $2,944,684 for the Peck Center roof and renovations, $2,214,589 for the landfill, $1,909,860 for roads and $1,096,908 for a ladder fire truck. Other small-scale events and projects included: Police Cove Park, Latham Park, Emergency Medical Vehicle, Land Purchase, Dump Truck and Boiler Replacement. CAPITAL ASSETS CAPITAL ASSETS Land, Land Improvements & Infrastructure Buildings & Improvements Vehicles Machinery & Equipment Construction in Progress Less: Accumulated Depreciation Total 2021 $88,286,533 $120,621,396 $5,071,501 $9,496,424 $234,021 $(81,179,183) $142,530,692 TOP 10 CAPITAL EVENTS OF THE YEAREVENTS/ PROJECT Middle School Peck Center Roof and Renovations Landfill Roads Ladder Fire Truck Police Cove Park Latham Park Emergency Medical Vehicle Land Purchase Dump Truck with Plow CAPITAL ASSETS COST $63,398,130 $2,944,684 $2,214,589 $1,909,860 $1,096,908 $834,272 $396,707 $315,978 $201,299 $161,947 10 CAPITAL ASSET BREAKDOWN DEBT Debt Limit General Obligation Bonds Capital Lease Revolving Loan Amount Subject to Debt Limit Legal Debt Margin 2021 $94,592,639 $7,700,000 $426,059 $13,562,743 $21,688,802 $72,903,837 2020 $94,942,662 $8,735,000 $633,141 $14,782,368 $24,150,509 $70,792,153 2019 $95,074,999 $9,725,000 $840,217 $15,982,055 $26,547,272 $68,527,727 Outstanding Debt over the years HOW MUCH DO WE OWE? General Obligation Debt- Debt backed by the full faith and credit of the Town. The Town's general obligation The Town builds and maintains infrastructure for our government and business-type activities through the issuance of debt. The State has set a debt limit at 3% of the total taxable assessed value of property. The debt limit for the year 2021 is $94,592,639. This debt limit is applicable for General Obligation Bonds, Capital Leases, and Revolving Loans. 1. Capital Leases- Leases with contract terms longer than a year are defined as capital leases, and leased items are considered purchased assets.Revolving Loans- Debt with fixed payments that the town uses for roads and landfills. debt is rated AAA by S & P Ratings and Aa1 by Moody's. 1. 2. The Town of Barrington has been able to maintain a sizable legal debt margin in the last decades by borrowing less than the debt limit. In the year 2017, the Town's debt increased by three times due to a jump in loans payable. On April 20, 2017, the Town entered into a loan agreement for the amount of $68,400,000 for the construction of the new Barrington Middle School. Debt approved through legislation is not subject to the debt limit. 11 This brief overview primarily showcased the current financial position of the Town of Barrington. To learn more about Town's funds or view the 2021 Annual Comprehensive Financial Report (ACFR) or Popular Annual Financial Report (PAFR), please visit- https://www.barrington.ri.gov/finance- taxcollections Along with ACFR 2021, you also have access to the ACFR of past years and other financial resources by using the link and scrolling down to the "Document" section. OUR WEBSITE- 12 www.barrington.ri.gov 13 MAP OF RHODE ISLAND