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HomeMy WebLinkAboutCity of Creve Coeur - Public Financial ReportPopular Annual Financial Report City of Creve Coeur, Missouri For Fiscal Year Ending June 30, 2021 Creve Coeur Citizens, In our ongoing effort to inform Creve Coeur citizens about the state of city finances, we are pleased to present the 2021 Popular Annual Financial Report (PAFR). The report is reflective of our commitment to preserving the city’s long-term financial health. Further evidence of this is the city’s AAA Standard & Poor’s bond rating; Creve Coeur is one of a handful of such highly rated cities in the state of Missouri. This bond rating was renewed prior to issuance of the city’s 2017 General Obligation Debt. The financial activity statements included herein are taken from the city’s Annual Comprehensive Financial Report (ACFR). The ACFR provides more detailed information and includes an audit from an independent firm of licensed certified public accountants. The ACFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America. The PAFR is prepared in accordance with the Government Finance Officers Association standards and in conformity with GAAP. Most of the City’s services are included in the governmental funds and proprietary funds (operations of ice arena and golf course) so those are the funds that we include in the PAFR. We have not included Fiduciary Fund data information in the PAFR but this information can be found in the city's ACFR. We hope you find this report to be informative and we welcome your comments and questions. Please feel free to contact either of us to discuss any aspect of this report. The information in this report is taken from the city's ACFR. Citizens may keep apprised of the state of city finances by reviewing the ACFR at www. crevecoeurmo.gov/ACFR or the quarterly financial reports posted to the city website at www.crevecoeurmo.gov/ QuarterlyFinancial. Sincerely, Mark Perkins Lori Obermoeller City Administrator Director of Finance Page 1 – City of Creve Coeur Popular Annual Financial Report 2021 A Message from the City Administrator and the Director of Finance Mark Perkins, ICMA-CM City Administrator Lori Obermoeller, CPFO Director of Finance Financial Activity Statements Where Does the Money Come From? Capital Improvement Program Where Does the Money Go? Property Tax Revenue Outstanding Debt Sales Tax Revenue Sharing Miscellaneous Statistical Data Acknowledgments 2 3 3-4 4 5 5 6 7 7 Table of Contents Governmental Fund Balance $3,5 6 5 , 2 8 7 '17$0 $1 $2 $3 $4 mi l l i o n s $3,4 6 9 , 6 0 2 $3,1 9 9 , 0 6 4 $2,8 1 8 , 6 8 2 $2,9 6 3 , 9 5 9 '18 '19 '20 '21 Enterprise Fund Balance The Enterprise Fund Balance has decreased over the last five years and is projected to start using funds from the General Fund in future years. The overall Fund Balance for the Governmental Funds has decreased the last few years, but increased in FY2021 mainly as a result of receiving the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds, as well as a planned decrease in expenditures as a result of the severity of the economic downturn caused by COVID-19 combined with the uncertainty and timing of a recovery. '17 '18 '19 '20 '21$0 $15 $20 $25 $30 mi l l i o n s $10 $5 $28 , 2 6 3 , 7 2 9 $27 , 3 5 8 , 5 5 0 $24 , 4 2 1 , 7 6 7 $24 , 3 6 3 7 9 8 $27 , 0 7 0 , 0 6 8 General Fund Capital Fund Police Building Fund Parks & Storm- water Fund Sewer Lateral Fund Debt Fund Public Safety Sales Tax Fund City of Creve Coeur Popular Annual Financial Report 2021 – Page 2 All Governmental Fund Types All Governmental Funds for the City include the General Fund, the Capital Improvement Fund, the Sewer Lateral Fund, the Police Building Fund, the Debt Fund, the Parks and Stormwater Fund, and the Public Safety Sales Tax Fund. During 2021, the city’s revenues and sources were higher than expenditures and uses in its Governmental Funds by $2,706,270 due to the new parks and stormwater sales tax, a record number of building permits issued, and the $1.2 million received from the CARES Act. Overall revenues increased $665,396. Expenditures decreased by $2,369,676 with a decrease in expenditures occurring in all functions, which includes General Government, Public Safety, Public Works, Community Development, Capital Outlay and Debt Service. Most of the decrease was due to the decrease in capital outlay since the police building was completed in FY20. Enterprise Fund The Enterprise Fund records the financial activity of the recreation activities conducted at the Dielmann Recreation Complex. The operating loss of the Enterprise Fund decreased in 2021 from $380,382 to $277,902. The revenues of the Enterprise Fund covered almost all operating expenses in 2021 with the exception of depreciation of capital assets. While depreciation is a “non-cash” expense that is reflected on the Enterprise Fund statements, the City does not fund depreciation because the capital assets depreciating in the Enterprise Fund are funded out of the Capital Improvement Fund. Therefore, the user fees for the Enterprise Fund are established only to recover operation costs excluding depreciation. Financial Activity Statements for years ended June 30, 2020 and June 30, 2021 Enterprise Fund Revenues 2020 2021 Food Service Revenues $47,041 $40,303 Golf Course Revenues $404,854 $557,212 Ice Arena Revenues $515,427 $554,827 Total Operating Revenues $967,322 $1,152,342 Operating Expenses Food Service Expenses $46,256 $32,042 Golf Course Expenses $496,116 $552,801 Ice Arena Expenses $508,741 $512,869 Depreciation $298,026 $319,728 Total Operating Expenses $1,349,139 $1,417,440 Non-Operating Revenue (Expenses) Investment Income $2,150 $171 Misc. Revenue $0 $12,842 Interest Expense $0 $0 Loss on Disposal of Assets ($715) ($25,816) Total Non-Operating Revenue (Expenses) $1,435 ($12,803) Loss Before Capital Contributions & Transfers ($380,382) ($277,902) Capital Contributions $0 $37,500 Transfers-In $0 $0 Proceeds from Sale of Capital Assets $0 ($11,200) Change in Net Assets ($380,382) ($251,602) Net Assets, July 1 $3,199,064 $3,215,559* Net Assets, June 30 $2,818,682 $2,963,957 All Governmental Fund Types Revenues 2020 2021 Property Taxes $1,684,774 $1,586,334 Sales Tax $7,842,205 $8,122,301 Public Utility Licenses $5,699,666 $5,396,414 Other Taxes $137,879 $135,967 Licenses and Permits $1,157,837 $1,610,411 Municipal Facilities $34,997 $17,535 Intergovernmental $2,181,781 $3,284,049 Fines & Forfeitures $499,153 $551,411 Charges for Services $63,868 $92,911 Investment Income $798,585 $170,224 Miscellaneous $421,909 $220,496 Total Revenues $20,522,655 $21,188,051 Expenditure by Function General Government $2,964,942 $2,733,508 Public Safety $7,511,017 $7,106,518 Public Works $3,389,371 $3,282,366 Community Development $1,527,547 $1,476,340 Capital Outlay $4,823,385 $3,250,118 Debt Service (Principal & Interest) $713,006 $710,742 Total Expenditures $20,929,268 $18,559,592 Other Financing Sources/Uses Transfers-In $629,802 $596,366 Transfers-Out $629,802 $596,366 Net Bond Proceeds $0 $0 Proceeds from Capital Lease $0 $0 Proceeds from Sale of Capital Assets $39,367 $77,810 Net Changes in Fund Balance ($367,246)$2,706,270 *The City recorded prior period adjustments and restated net position as of June 30, 2020. These adjustments were made to correct misstatements in capital assets which increased the Enterprise Fund beginning balance by $396,876. Additionally, the City recorded prior period adjustments to correctly record certain expenditures which should have been recorded during FY2021, but were recorded in the prior year for the Governmental Funds of $309,276. The Capital Improvement Program (CIP) is the city’s long-range planning tool for improvements to infrastructure, parks and other community facilities and to establish funding for high-priority projects in a timely and cost-effective fashion. The CIP provides a systematic approach to replacing deteriorating infrastructure and major capital equipment, and adding new facilities that enhance the quality of life in Creve Coeur. The CIP covers a five-year period and is updated annually. The Planning and Zoning Commission and Finance Committee review the plan and forward a recommendation to the City Council. The City Council holds a public hearing and ultimately decides on the CIP’s adoption. The CIP and other long-range planning documents are available for review at the Government Center and on the city’s website at www.crevecoeurmo.gov/CIP. Projects are prioritized based on the following criteria: Where Does the Money Come From? Sales Tax: derived from the 1.25 percent general retail sales tax, the 0.5 percent capital sales tax, the 0.5 percent public safety sales tax, and the 0.5 percent parks and stormwater sales tax. A portion of the sales tax revenue is shared with other cities and St. Louis County (see article on page 6). Public Utility Licenses: as of the end of FY2021, the gross receipts tax on sales of electric, gas, telephone and water services within the city were 8 percent for commercial. Residential rates were 7 percent. These commercial rates were amended effective November 1, 2018. Residential electric rates were amended effective March 1, 2019. A 5 percent video service fee is also included. Intergovernmental: revenues from grants and pass-through monies from the state of Missouri and the U.S. government, including gasoline tax, auto sales tax and road and bridge money. Property Taxes: derived from the city’s real estate tax rate of $0.073 for residential and $0.080 for commercial property per $100 assessed valuation. 2021 also includes a Creve Coeur debt levy of $0.068. Licenses & Permits: includes building permits, business licenses, and other permits. Investment Income: revenue earned by investing city funds throughout the year, pursuant to the city’s investment policy. Fines & Forfeitures: derived from fines and costs levied in the court. Miscellaneous: derived from sources such as reimbursements, refunds and other sources. Other Taxes: primarily tax revenues for the sewer lateral program. Municipal Facilities & Charges for Services: revenues from fees for use of city facilities and recreation programs and charges for services such as the school resource officer contract with the Parkway School District. How Are Capital Improvement Funds Spent? Page 3 – City of Creve Coeur Popular Annual Financial Report 2021 Governmental Fund Revenues FY2021 Sales Tax $8,122,301 Public Utility Licenses $5,396,414 Intergovernmental $3,284,049 Licenses and Permits $1,610,411 Property Taxes $1,586,334 Fines & Forfeitures $551,411 Miscellaneous $220,496 Investment Income $170,224 Other Taxes $135,967 Charges for Services $92,911 Municipal Facilities $17,535 Total $21,188,052 Property Taxes Fines & Forteitures Miscellaneous Investment IncomeOther Taxes Licenses & Permits Intergovernmental Public Utility Licenses Sales Tax Charges for Services & Municipal Facilities 7% 3% 1% 1%<1% 15% 25% 38% <1% 8% • Public safety • Condition of existing facility • Operating efficiency • Citizen demand • Economic growth • Protection & conservation • Beautification • Coordination (projects, regulations) • Availability of funding Capital Fund Expenditures FY2021 Streets & Sidewalks $2,008,793 Stormwater $287,721 Capital Equipment $180,078 Building Improvements $2,862 Parks & Recreation $254,338 Administration $92,183 Total $2,825,975 Public Safety: expenditures relating to the police department, including administration, investigation, patrol and dispatching. Capital Outlay: accounts used to purchase capital items and the construction or acquisition of major capital facilities. Public Works: expenditures relating to services such as streets and sidewalk maintenance, parks, building maintenance, refuse and recycling collection, engineering and other related services. General Government: expenditures relating to city council, city clerk, city administrator’s office, finance, municipal court, insurance, sewer lateral program and other related functions. Community Development: expenditures relating to planning, zoning, building inspection and code enforcement. Debt Service: debt service payments include both principal and interest debt issued for the construction of the police building (2017). Construction was completed during fall of 2019. City of Creve Coeur Popular Annual Financial Report 2021 – Page 4 Where Does the Money Go?Governmental Fund Expenditures FY2021 Public Safety $7,106,518 Public Works $3,282,366 Capital Outlay $3,250,118 General Government $2,733,508 Community Development $1,476,340 Debt Service $710,742 Total $18,559,592 Public Works18% Capital Outlay17% General Government15% Community Development8% Debt Service4% Public Safety38% *In November 2020, voters in Creve Coeur approved a half-cent sales tax that is dedicated to capital improvements, operations and maintenance for the City’s parks and stormwater infrastructure. This new revenue source necessitated the creation of the Parks and Stormwater Fund, which will be supplemented by grants and other outside funding related to parks and stormwater. The five-year projected expenses for the fund is $11.3 million. CIP Five-Year Projections (FY2022-2026) (in millions)0 2 4 6 8 10 12 Capital Equipment Building Improvements Parks & Recreation* Stormwater* Streets & Sidewalks Administration 14 $1,987,700 / $30,000 $2,165,000 / $1,133,953 $441,000 / $5,720,000 $494,082 / $786,264 Debt Service $3,577,340 $14,396,500$2,642,000 Capital Fund Parks-Stormwater Fund Building Bond Fund The average Creve Coeur homeowner ($400,000 market value house) pays $5,392 to $5,414 in real estate taxes to all taxing entities combined. Of this amount, the City of Creve Coeur receives $107, or about 2 percent of the total tax bill. These revenues support the City’s General Fund (0.073) and Debt Service (0.068). Sewer taxes vary subject to your location. How Is Property Tax Revenue Allocated? Outstanding Debt 2017-2021 2017 Police Building Debt: in April 2017, Creve Coeur issued general obligation bonds to finance the construction, furnishing and equipping of a new police station and to fund safety, security and accessibility improvements to the Creve Coeur Government Center. The bonds bear interest ranging from 2 to 3.125 percent. The debt service is paid from a property tax levy of .068 per $100 of assessed valuation. The bonds will mature March 1, 2037. Capital Lease Payable: provided funds to acquire certain office equipment for city departments. Compensated Absences: reflects the outstanding liability on the city’s financial statement for the value of employees’ accumulation of vacation time. Most of this vacation will be used during the normal course of operations during the city’s fiscal year. Page 5 – City of Creve Coeur Popular Annual Financial Report 2021 Tax Entity (FY2021)Rate Cost Parkway School District 3.6390 $2,766 Ladue School District 3.6100 $2,744 Creve Coeur Fire District 0.9750 $741 Special School District 1.0158 $772 County 0.4180 $318 Community College 0.2787 $212 Metro Zoo 0.2455 $187 Library 0.2060 $157 Disability 0.0710 $54 City of Creve Coeur 0.1410 $107 State 0.0300 $23 MSD Sewer 0.1041 $79 Total Parkway School District 7.1241 $5,414 Total Ladue School District 7.0951 $5,392 City of Creve Coeur Outstanding Debt June 30, 2021 Police Building Debt $9,189,602 Capital Lease Payable $0 Compensated Absences $522,198 Total Debt $9,711,800 $11,33 4 , 2 5 6 2017 $0 $2 $4 $6 $8 $10 mil l i o n s $12 $11,03 9 , 3 6 9 2018 $10,64 1 , 6 6 0 2019 $10,31 5 , 1 3 6 2020 $9,711 , 8 0 0 2021 Outstanding Debt 2017-2021 Sales Tax Revenue Sharing in St. Louis County Retail sales in St. Louis County are subject to a 1 percent local sales tax that is shared among the cities in St. Louis County and the county itself. St. Louis County is the only county in the state where sales tax sharing applies, pursuant to state legislation adopted in 1993 which identifies each city as either ‘A’, ‘B’ or ‘A/B’. The city’s one-half cent capital improvement sales tax and one-quarter cent local option sales tax are also shared. The capital sales tax is shared at a fixed rate of 15%. The parks and stormwater sales tax is not subject to sharing. ‘A’ Cities: ‘A’ cities, or ‘point-of-sales’ cities, receive sales tax revenue generated within their city limits, but also share a portion of their revenue with other cities if the average sales tax income per capita exceeds the average sales tax income per capita countywide. As a result of the sharing formula, Creve Coeur shared approximately 17.5% of sales tax revenue with other cities and St. Louis County in FY21. ‘B’ Cities: ‘B’ cities, also called ‘pool’ cities, receive a population based pro-rated share of the sales tax revenue collected by St. Louis County. Newly created cities and areas annexed since the sharing formula became effective are ‘B’ cities. ‘A/B’ Cities: ‘A/B’ cities are those that were in existence at the time the sharing formula was created and are a mixture of ‘A’ (‘point-of-sale’) and ‘B’ (‘pool’). Creve Coeur is an ‘A/B’ city, primarily a ‘point-of-sale’ (‘A’) city, except for Ward 4 and a section of Ward 1, east of Lindbergh and north of Olive, which were annexed by the City in the 1990s. These areas are ‘pool’ (‘B’). Total sales tax revenue generated in Creve Coeur last year was approximately $7,721,252 for general and capital sales tax. However, $1,052,081 was shared with other cities under the County formula, resulting in net sales tax revenue for Creve Coeur of $6,669,171. As a result of the sharing legislation, the City of Creve Coeur receives approximately 86% of the sales tax revenue generated by Creve Coeur businesses with the remaining 14% shared with other cities and the county. City of Creve Coeur Popular Annual Financial Report 2021 – Page 6 Distribution of Sales Tax Rate St. Louis County Public Safety St. Louis County Transportation Countywide Regional Parks & Trails St. Louis County Children's Services Zoo Creve Coeur CapitalImprovements St. Louis County Bi-State Metro Creve Coeur General Services State of Missouri St. Louis County E-911 0.5% 0.5% 0.2875% 0.25% 0.125% 0.75% 1.25% 4.2250% 0.1% 0.5% Creve Coeur Parks& Stormwater0.5% Creve Coeur Sales Tax Rate8.9875% Net Sales Tax Revenue for Creve Coeur Sales Tax Revenue Sharedwith Other Cities $6,669,171 $1,052,081 Sales Tax Generated in Creve Coeur (FY21) 66 City of Creve Coeur 300 N. New Ballas Rd. Creve Coeur, MO 63141 Phone: 314-432-6000 Fax: 314-872-2539 www.crevecoeurmo.gov Facebook.com/CityofCreveCoeur Twitter.com/CreveCoeurMO Creve Coeur by the Numbers Thank you to the Finance Committee and Audit Committee for their support and dedication in advising the City Council on financial matters impacting the City. The Finance Committee consists of seven to nine members. Primary responsibilities and duties include review of the annual budget annually, review the Capital Improvement Plan (CIP) annually, and advising the City Council on other financial matters impacting the City as requested by the City Council or staff. The Audit Committee consists of three Council members and two Finance Committee members, serving as an advisory body to the City Council on matters concerning the City’s annual audit. Primary responsibilities and duties of the committee include coordinating the process of soliciting, selecting and hiring of the auditing firm, working cooperatively with the auditing firm, and reviewing and presenting recommendations on audit results to the City Council. Acknowledgments Page 7 – City of Creve Coeur Popular Annual Financial Report 2021 The information in the City of Creve Coeur Popular Annual Financial Report is taken from the City of Creve Coeur Annual Comprehensive Financial Report (ACFR). A copy of the ACFR available at the Government Center and online at www.crevecoeurmo.gov/ACFR. The Basics... In the Community...In the Parks... 78.9 centerline miles of streets maintained by the city 8,756 housing units $96,319 median household income 10.27 square miles Population of18,834 full-time employees 1061949incorporated in home rule charter adopted in1976 Ward 2 Ward 1Ward 3 Ward 4 4 wards s w o r n offi cers 49 6 parks 94 acres of parks Council–City Administrator form of government te n n i s courts 8 1 indoor ice arena 9 - h ole gol f c ourse 1 Award for Outstanding Achievement in Popular Annual Financial Reporting The City of Creve Coeur was the recipient of the Award for Outstanding Achievement in Popular Annual Financial Reporting by the Government Finance Officers Association of the United States and Canada for its Popular Annual Financial Report for fiscal year ending June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. Visit www.gfoa.org for more information about this award and its criteria. June 30, 2020 $402,300 median home value