HomeMy WebLinkAboutCity of Cedar Park - Public Financial ReportI
THE HEART ISH ME IS WHERE
Cedar Park, Texas
An Educational & Informative Publication
CEDAR PARKI
Popular Annual Financial Report (2020-2021)
About City of Cedar Park .........................................1
Economy ...................................................................2
Cedar Park by the Numbers .....................................5
Adopted Budget Fiscal Year 2021 ............................6
General Fund Financial Statements..........................7
Utility Fund Financial Statements ...........................10
Occupancy Tax Report ...........................................11
Bell District .............................................................12
Debt .......................................................................14
TABLE OF CONTENTS
1
The Popular Annual Financial Report (PAFR) is a visually appealing adaptation and
summarization of the City’s Annual Comprehensive Financial Report (ACFR). The ACFR
was developed in compliance with generally accepted accounting principles (GAAP)
and was independently audited by RSM US LLP. The PAFR is the most appropriate
method to convey to citizens the City’s current economic and financial status.
The fully detailed GAAP-based Annual Comprehensive Report can be found on the
City of Cedar Park’s Website.
HISTORY OF THE CITY AND GROWTH
Cedar Park, Texas is a vibrant community situated on the northern border of Austin
just 17 miles from downtown. We are named for an actual park that was a rail stop in
the late 1800s and were incorporated as a City in 1973. True to our namesake Cedar
Park now features 1,000 acres of City-owned parkland and 31 miles of trails. We’re a
bustling high-tech employer hub, too, with a median age of 34.74 years, 49.7 percent
with a Bachelor’s Degree or higher and a median household income of $103,370.
After officially incorporating and becoming a home-rule city in 1987, the City is now
governed by a Mayor and six City Council members, with day-to-day activities being
directed by a City Manager.
Cedar Park is a vibrant, maturing city that has experienced steady growth over the past
several years. Cedar Park attracts people with its unique charm, safe communities, and
business-friendly environment. The population of Cedar Park has more than tripled
since the 2000 Census was conducted, growing from a population of 26,049 to a
current population of 82,192, with an additional 20,116 residents in the City’s Extra
Territorial Jurisdiction (ETJ).
STRATEGIC GOALS
Livability And Sense Of Place
Economic Vitality
Service And Fiscal Excellence
Mobility And Connectivity
Infrastructure And Environment
2012 20162014 2018201320172015 2019 2019 2021
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POPULATION GROWTH
2
ECONOMY
ECONOMIC SUCCESS IN A PANDEMIC
Despite challenges presented by the COVID-19
pandemic, the City of Cedar Park managed to far
surpass expectations in economic development
and employment in FY 2021. The City saw a sharp
recovery in the fiscal year with unemployment
rates returning back to 3%.
Along with a low unemployment rate, the City achieved major development
agreements with several companies. These are game-changing developments that will
grow the City’s tax base for decades to come. The City also saw great growth for our
local businesses as well. Employment opportunities grew by nearly a thousand jobs.
Cedar Park finalized performance agreements or worked with companies to increase
capital investment and job opportunities. Four of these agreements led to corporate
headquarters relocating to Cedar Park. The economic growth in the City was also seen
in Sales Tax revenues and Property Values. Both figures saw record breaking levels in
the fiscal year despite the on-going pandemic.
Region 2000 2010 2015 2021
Cedar Park 1.9%5.9%3.0%3.1%
Williamson County 2.8%7.4%3.5%2.9%
Austin MSA 3.0%7.1%4.5%2.9%
Texas 4.4%8.2%5.3%5.0%
USA 4.0%9.6%5.3%3.9%
The City receives two cents of sales tax per one dollar spent in the City on taxable
goods and services. One cent goes to the general fund, one half cent goes to the
Type B Community Development Corporation, three-eighths of a cent goes to the
Type A Economic Development Corporation, and one-eighth of a cent goes to
drainage improvements.
2021
2020
2019
$18,709,679
$15,701,487
$14,800,132
GENERAL FUND SALES TAX COLLECTIONFY 2019-FY 2021
6.25¢State of Texas
0.375¢Economic Development
0.5¢Community Development
1.125¢General Fund1¢
City Operations.125¢
Storm Water Program
3
ECONOMY
ECONOMIC DEVELOPMENT IN DEPTH
The City’s Economic Development Department works with new and existing
businesses to encourage expansion of their companies, or relocation to the City.
NFM is a home furnishing store that sells furniture, flooring, and
electronics. In December 2021, City Council approved NFM’s 1.2 M
square-foot facility project that also includes hotel with 250 rooms as
well a 30,000-square-foot convention center in Cedar Park. The project
has a capital investment of $400 Million.
Perfect Game is a premier provider of amateur baseball events,
hosting high quality travel team tournaments and individual showcase
events throughout the country. Perfect Game announced plans for
the creation of 16 turf baseball and softball fields for regional and
national tournaments and to relocate its headquarters to Cedar Park.
In September 2021, City Council approved the economic development
and land agreements to begin the project. Early estimates show the
Perfect Game Complex generating $20 million in revenue over 10
years. The project is anticipated to bring 750,000 visitors to Cedar Park
on an annual basis.
Firefly Aerospace is an American private aerospace firm that
develops launch vehicles for commercial launches to orbit. Firefly
purchased 45,000 square-feet of additional space for their Cedar Park
headquarters. The expansion will create 682 new jobs. Firefly was
recently awarded a $93.3 million contract by NASA to deliver payload
to the moon.
Shop LC, formerly known as Liquidation Channel and The Jewelry
Channel, is an American cable television network, which mainly
specializes in selling jewelry. City Council approved the Shop LC
plans to develop a new 200,000 square foot headquarters facility on
November 18, 2021. The company will create 1,000 new jobs with a
capital investment of $50 Million.
Hyliion is a public American Electric Vehicle (EV) company. Hyliion
produces electrified powertrain systems designed for the hybridization
or full replacement of traditional diesel or natural gas-fueled
powertrains. City Council approved Hyliion’s Cedar Park headquarters
development in February 2018. In FY 2021, Hyliion completed its
expansion from 80,000 square feet to 120,000 square feet. With the
expansion, Hyliion anticipates growing its workforce from 200 to 500.
Hyliion also became a publicly traded company in October 2021.
4
ECONOMY
FINANCIAL PLANNING
The City has a long history of conservative fiscal planning. By monitoring the economy
and the City’s own revenue and expenditure streams continuously, we have been able
to adjust quickly to shifts and changes. Long-term planning contributes to financial
resiliency, and the City is dedicated to monitoring revenues and expenditures on a
five-year horizon.
In March 2020, the City acted promptly in response to COVID-19 by reducing revenue
projections and eliminating non-essential expenses. We also took a very conservative
approach developing the FY 2021 budget. While we did see a reduction in hotel
occupancy taxes, parks and recreation fees, interest income, beverage taxes and some
of our fines and fees, we didn’t see a decrease in sales tax revenue. Looking more
closely at sales taxes, we experienced a decrease in restaurants and bars sales, as
expected, but those decreases were offset by increases in general merchandise (big
box) sales and increases in nonstore retailers (internet sales) and food and beverage
sales. Overall, sales taxes exceeded original budget projections by 24.7%. The City
expects to see continued sales tax revenue growth in FY 2022.
5
Tax Information
Population 82,192
Property Tax Rate $0.446977
M&O Tax Rate $0.248977
Debt Rate $0.198000
Average Taxable Household Value $379,408
Total Taxable Ad Valorem (Billions) $10.4
Principle Employers
LISD 953
CP Regional Medical Center 605
CoreSlab 330
ETS Lindgren 315
National Oilwell Varco 250
BMC Corporation 230
Firefly Aerospace 225
Tresl 200
BHI 200
Hyliion 180
Priniciple Tax Payers
IVT Parke Cedar Park LLC $112,511,794
Cedar Park Health System LP $91,099,823
1431 SC PT LTD $76,500,000
G&I IX Muir Lake LP & Muir Lake LTD $58,715,959
Latitude/GW-DW LLC & Latitude/
GW-SK LLC $57,172,695
Allure Acquisition LLC $56,467,326
Alden Cedar Park Acquisition LLC $53,960,000
Ranger Excavating $49,079,721
Northland Lakeline II LLC $49,023,040
RPAI Cedar Park Town Center LLC $48,005,800
Debt Information
Outstanding Debt Outstanding Principal
Tax Supported - Ad Valorem $186,975,000
4A Corporation $30,985,000
Utility System $35,470,000
Total $253,430,000
Credit Ratings Standard’s& Poor’s
General Obligation AA+
Utility System Revenue AA+
Community Development
Corp AA
Sales Tax Rate Breakdown (8.25%)
Sales Tax Allocation 8.25%
State of Texas 6.25%
General Fund - Operations 1%
General Fund - Storm Water 0.125%
Economic Development 0.375%
Community Development 0.5%
Cedar Park FTE Breakdown
FTEs 516.5
Sworn Police 134
Firefighters (Civil Service)89
CEDAR PARK BY THE NUMBERS
6
40%
17%
21%
5%
4%
4%
3%
5%
General Fund$59,634,877
Utility Fund
$29,684,203
General Obligation Debt$25,325,086
Type B Corporation$7,905,138
Other Funds$6,679,370
Type A Corporation
$5,766,508
Utility Debt Service$5,274,659
Solid Waste$4,012,185
*The Adopted Operating Expense Budget for FY 2021 is $145,386,668. The General Fund, Utility Fund, and
General Obligation Debt Service make up a majority of the Operating Expenses.
ADOPTED BUDGET FY 2021
7
ASSETS 2019 2020 2021
Cash and Investments $26,256,758 $27,289,240 $31,924,398
Receivables (net of allowances)
Property taxes 159,274 182,201 202,603
Sales Taxes 2,931,279 3,172,915 3,965,917
Franchise taxes 757,809 658,710 934,762
Other receivables 365,243 550,699 1,870,070
Cash and investments - restricted
Inventory and Prepaid items 119,568 49,950 425
Total assets 30,589,931 31,903,715 38,898,175
LIABILITIES
Accounts payable 2,180,767 1,903,044 1,255,240
Accrued liabilities 708,521 1,102,833 1,312,661
Customer deposits 72,112 61,471 51,205
Due to other funds 159,920 99,920 39,920
Escrow deposits and other liabilities 2,061,095 2,092,654 2,732,387
Total liabilities 5,182,415 5,259,922 5,391,413
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 141,185 169,235 185,891
Total deferred inflows of resources 141,185 169,235 185,891
FUND BALANCES
Total fund balances 25,266,331 26,474,559 33,320,871
Total liabilities, deferred inflows of resources, and fund balances $30,589,931 $31,903,715 $38,898,175
GENERAL FUND FINANCIAL STATEMENTS
GENERAL FUND - CONDENSED BALANCE SHEET
8
GENERAL FUND - CONDENSED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
REVENUES 2019 2020 2021
Taxes $42,092,097 $44,417,231 $50,640,730
Permits, licenses, and fees 1,292,532 1,006,844 951,795
Fines and forfeitures 550,416 436,574 478,959
Charges for service 4,671,958 3,683,008 4,296,059
Intergovernmental 100,895 -190,000
Contributions 2,338,258 175,000 280,529
Interest earnings 739,545 417,185 93,951
Other 2,083,608 1,902,891 2,826,458
Total revenues 53,869,309 52,038,733 59,758,481
EXPENDITURES
Current
General government 12,216,369 14,168,648 12,584,504
Public safety 28,243,531 30,022,269 31,301,895
Culture and recreation 6,048,587 5,970,086 6,258,009
Streets and lighting 4,207,308 4,084,457 4,369,806
Economic development 2,527,852 2,340,363 1,931,096
Capital Outlay 1,289,617 1,237,294 782,833
Debt Service
Principal 154,781 154,781 118,277
Total expenditures 54,688,045 57,977,898 57,346,420
OTHER FINANCING SOURCES (USES)
Sale of general capital assets 106,322 56,331 3,253,630
Transfers in 10,674,741 4,849,052 5,523,887
Transfers out (8,645,000) (975,000) (1,630,043)
Total other financing sources (uses)2,136,063 3,930,383 7,147,474
Net Change in Fund Balances 3,111,647 1,208,228 6,846,312
Fund Balances, Beginning 22,154,684 25,266,331 26,474,559
Fund Balances, Ending $25,266,331 $26,474,640 $33,320,871
9
GENERAL FUND - BUDGET TO ACTUAL EXPENDITURES BY FUNCTION
$40,000,000
Public Safety GeneralGovernment Culture & Recreation Streets & Lighting
$30,000,000
$10,000,000
$20,000,000
0
As a result of having strong economic positioning and a comprehensive budget process, the City’s
expenditures consistently align with the budget.
ActualBudget
10
UTILITY FUND - STATEMENT OF REVENUES, EXPENSES & CHANGES IN NET POSITION
OPERATING REVENUES 2019 2020 2021
Charges for services $31,910,750 $34,027,326 $33,804,842
Total operating revenues 31,910,750 34,027,326 33,804,842
OPERATING EXPENSES
Distribution services and charges 10,077,130 10,019,326 9,930,583
Personnel services 6,637,272 6,717,311 6,893,779
Maintenance and repair 631,508 580,782 657,426
Supplies and materials 824,540 888,606 954,151
Depreciation 8,513,140 8,574,002 8,603,058
Total operating expenses 26,683,590 26,780,027 27,038,997
OPERATING INCOME 5,227,160 7,247,299 6,765,845
NONOPERATING REVENUES (EXPENSES)
Interest and other revenue 1,743,312 994,198 324,756
Interest and fiscal charges (1,189,609) (1,200,930) (1,868,135)
Total nonoperating revenues (expenses)553,703 (206,732) (1,543,379)
Income before contributions and transfers 5,780,863 7,040,567 5,222,466
CONTRIBUTIONS AND TRANSFERS
Contributions 1,602,293 652,435 400,316
Community impact fees 2,635,450 2,421,560 1,266,015
Transfers out (4,849,052) (5,673,887) (5,179,388)
Total contributions and transfers (611,309) (2,599,892) (3,513,057)
CHANGE IN NET POSITION 5,169,554 4,440,675 1,709,409
Total net position, beginning 247,207,658 252,377,212 256,817,887
Total net position, ending $252,377,212 $256,817,887 $258,527,296
UTILITY FUND FINANCIAL STATEMENTS
11
OCCUPANCY TAX REPORT
At the start of the pandemic, the City saw a sharp decline in hotel occupancy rates, the average
daily rate for a hotel room, and overall Hotel Occupancy Tax (HOT) revenues. However by the
end FY2021, all three were restored to pre COVID levels.
HOT revenue finished FY 2021 at $1.01 M, an increase of 45.9% from FY 2020 totals.
National Avg.66%
2020 COVID-19
National Avg.40.3%
10
50
30
70
80
0
40
20
60
Occupancy %
202120202019
71.8%71.5%
54%
17
4
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3
8
6
13
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0
3
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20
1
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Filled with local restaurants, retail and recreation, The Bell District is a destination that brings
people together to celebrate the best of Cedar Park. This unique mixed use development has
been designed with true revitalization in mind. The project area is approximately 50 acres,
including roughly 16 acres of unmatched greenspace.
Beginning in 2014 and running through 2019, the City embarked on a robust public engagement
process that included multiple large public workshops, numerous small stakeholder meetings and
presentations to targeted groups. Collectively, more than 2,000 people attended these events,
marking the highest participation level for any project in the history of Cedar Park. In 2015, voters
approved a $26.1 million transportation bond for the realignment of Bell Boulevard.
The City of Cedar Park and RedLeaf entered into a Master Development Agreement that
governs development of land, the deconstruction of existing improvements, the construction
of infrastructure, financing agreements, phasing and expected timeline of the project, and
numerous other development obligations and responsibilities. The Cedar Park City Council
unanimously voted to approve the 20-year agreement with RedLeaf on February 27th, 2020 after
a year of negotiations with the developer.
THE BELL DISTRICT
13
Under the Master Development Agreement for financing public infrastructure, the City
contributed $3,450,000 towards the public infrastructure projects in fiscal year 2021, with an
additional $15,960,000 committed over the life of the agreement which extends through fiscal
year 2025.
On December 30, 2021 the Texas Department of Transportation (TxDOT) issued a memo
of substantial completion for the Bell Boulevard Realignment Project. The project total of
$17,706,803 at September 30, 2021 will be transferred to the State in fiscal year 2022, pending
analysis of final cost of the asset transferred. In exchange, TxDOT will transfer the old segment of
the State highway to the City of Cedar Park.
On the horizon for FY 2022 is the continuation of vertical construction on public amenities. The
City is anticipating Phase One opening in 2024. The priorities for Phase I include the public
amenities, such as The Backyard, The Marketplace, The Trails, and The Library. The full build-out
of The Bell District is expected to take approximately 15 years, depending on market conditions.
THE BELL DISTRICT
14
On September 30, 2021, the City had $253,430,000
in outstanding debt. This debt includes tax-supported
debt such as general obligation bonds, certificates of
obligation, and tax notes, as well as other types of debt
such as utility revenue bonds.
1%
12%
14%
74%
4A Corporation
(Sales-Tax Supported)
Tax Supported - Ad Valorem
Utility System
Outstanding Debt Outstanding Principle
Tax Supported - Ad Valorem $186,975,000
4A Corporation $30,985,000
Utility System $35,470,000
Total $253,430,000
DEBT