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HomeMy WebLinkAboutHerriman City - Public Financial ReportPopular Annual Financial Report PAFR Fiscal Year ended June 30, 2021 2021 PAFR Table of Contents 2 Table of Contents Letter To Our Residents About Herriman City City Council Members General Fund Revenues General Fund Expenditures Capital Assets Outstanding Debt Sales Tax Development Impact Fees Utility Funds 5 11 12 10 13 14 15 16 17 4 3 Major Additions 2021 PAFR Table of Contents 3 City Council Mayor Lorin Palmer Sherrie OhrnTeddy HodgesJared Henderson Steven Shields The City Council Under Herriman City’s council-manager form of government, city council members representing four districts are elected, as well as an at-large mayor. All five City Council members are considered equal vot- ing members and serve terms of four years. In addition to their local legislative duties as elect- ed officials, City Council members serve on various boards and commissions throughout the state, giv- ing Herriman residents a voice and influence at the county, regional, and state levels. Under this form of government, residents elect the City Council, who then appoints a City Manager manager to implement policies, oversee the local government’s day-to-day operations, and advise it. The City Manager position is similar to that of cor- porate chief executive officer (CEO). 2021 PAFR Table of Contents 4 Letter To Our Residents It gives us great pride to present Herriman City’s Popular Annual Financial Report (PAFR) for the fis- cal year that ended June 30, 2021. This report provides readers with a summary of the City’s financial standing. The purpose of the PAFR is to illustrate the City’s financial information in a clear and concise manner so that all who are inter- ested can easily understand the City’s performance, revenues, expenditures, and future trends. This is an essential part of the City’s efforts to provide trans- parency, as well as create an understanding of the key services provided by the City to create a safe and en- joyable place to live, work, and play. Alan Rae Herriman City Director of Finance Like unto many cities, counties, and states, COVID-19 presented several challenges to Herriman City and its residents. Still, Herriman City is financially healthy as a result of fiscal restraint and good planning. The financial reports included reveal its sound financial position and growing tax revenue. We are proud of the quality service that the City provides its residents. This high level of service has been sustained without instilling a City property tax increase. The City will continue to focus efforts on providing valued service and taking steps to ensure economic vitality, while always increasing public awareness, accountability, and transparency of the City’s financial information. These achievements, to- gether with strong principles, will help continue the success of the City. All of the financial information in this report is sum- mary information obtained from the more detailed Annual Comprehensive Financial Report that is available at the city hall or at www.herriman.org/acfr. We are honored to serve our community and encour- age all citizens to be actively engaged. We welcome any input, questions, and comments that you may have regarding this report. To contact the Finance Department, call 801-446-5323. Herriman residents, 2021 PAFR Table of Contents 5 About Herriman City Administration Essentially serving as the main customer service hub, the Administration team works to provide resi- dents, vendors, staff, and City relations with a broad range of services and information updates. The City Administration is comprised of the City Manager, Assistant City Managers, Customer Service, and ad- ministrative staff. (Note: Customer Service also handles utility billing) Communications The Communications Department serves as the pub- lic liaison for the City. Its objective is to promote the City and provide transparency and proactive mes- saging along a vast array of public interest items, uti- lizing a variety of tools—including print, electronic materials, internal and external publications, the in- ternet, live media, and social media. Courts The office of the Herriman Justice Court conducts regular court business. It ensures all court docu- ments and files are maintained, including claims, notices, requests for information, fine collections, court costs, drivers license checks, and criminal background checks. Human Resources The Human Resources Department seeks to protect one of the City’s most valuable assets—its employ- ees—by giving insight and expert opinions on how decisions will affect City employees and the potential consequences of actions. Additionally, they provide support to management on how to manage and sup- Public Works Made up of the Streets, Streetlights, Facilities, Fleet, Water, and Stormwater Departments, the larger Pub- lic Works Department provides the public with safe, reliable critical infrastructure. Streets The Streets and Streetlights Departments provide safety and securitywv for drivers and passengers by maintaining, plowing, and cleaning roadways, and designing, building, repairing, and maintaining streetlights, luminaires, lighting, meter cabinets, and electrical assets of the city. Facilities The Facilities Department maintains the buildings and grounds for all City facilities, including (but not limited to) the city hall and other buildings, re- strooms, workshops, and pavilions. port their employees to help achieve a high level of productivity and wellbeing. Recorder The Recorder’s Office preserves all official City re- cords and maintains a records management system to provide accurate information and public notices to residents, the City Council, and staff. Finance The Finance Department safeguards the City’s assets, assists City departments in being fiscally sound, en- sures related legal requirements are met, and reports on all financial matters with Generally Accepted Ac- counting Principles.(Note: Finance also handles utility billing finances) Economic Development Serving as a liaison, the Economic Development De- partment engages with businesses and resources to foster a diverse array of industry sectors within the community that will be a sound investment, increase the tax base, create employment opportunities for residents, and generate public revenues. City Departments 2021 PAFR Table of Contents 6 About Herriman City Fleet Department The Fleet Department manages all motor and mobile equipment pool needs and ensures all drivers have received proper instructions and training. Water Department The Water Department provides drinking and sec- ondary water services and maintains infrastructure and supply to residents and businesses. Stormwater Department The Stormwater Department ensures stormwater drainage systems are properly inspected, cleared, and maintained to stay within Environmental Pro- tection Agency regulations. Parks The Parks Department provides, oper- ates, and maintains all parks, trails, recre- ational water, green spaces, and their facili- ties for residents and guests to use as away to promote health and enjoyment in the community. Recreation and Events The Recreation and Events Department strives to en- rich residents and guests’ lives by providing commu- nity-oriented events and activities of various types throughout the year. Engineering The Engineering Department oversees project design and construction management to ensure infrastruc- ture planning and development meets standards and specifications. GIS The GIS (Global Information Systems) Department works closely with all departments to collect, track, map, and analyze needed data in relation to the geo- graphical area of the City. This helps determine im- pacts and improvement processes to maximize the benefit of the given area to residents and the City. Building The Building Department safeguards the health, safety, and welfare of residents by ensuring building structures in the city meet the minimum require- ments outlined by the state and City. Planning The Planning Department provides professional ad- vice and technical expertise to elected officials, the Planning Commission, City departments, and citi- zens to assist in understanding and addressing key land use issues and priorities. They also process zon- ing and land use applications. Police The Police Department provides law enforcement services to the city, including patrol, school resource officers, investigations, K9, SWAT, search and rescue, and various task forces and other assignments. It also provides code enforcement and parking enforcement services. 2021 PAFR Table of Contents 7 About Herriman City Herriman is one of the fastest growing cities in not only Utah, but the United States. The rapid growth creates many challenges that the City works con- stantly to address. The City is concerned about infra- structure requirements for growth, sustaining level of service, and maintaining financial strength. It is a fine balancing act to make sure that the goals do not focus too much on one aspect. The City’s master plans identify future needs and their associated costs, and put those in a timeframe to help anticipate the requirements to fulfill those needs. The City uses cash flow projections to deter- mine what cash resources will be available and what financing may be required. Demographics Occupied Housing Units15,360 Avg. Household Size3.83 Median Home Value$375,100 Median Household Income$101,460 25.5 Median Age Population source: 2020 U.S. Census Data (2021) 58,858 2021 20252030 2065 (buildout) 74,84094,818 150,944 9.7%Avg AnnualGrowth2010-2020 Education High school/ equivalent Some college Associate’s degree Bachelor’s degree Graduate/professional degree 21% 29% 12% 25% 10% 2010 2020 2030 2040 2050 2060 20,000 40,000 60,000 80,000 100,000 2021:58,858 120,000 140,000 160,000 Buildout estimation Population Trend 2021 PAFR Table of Contents 8 About Herriman City PRCA Rodeo Night of Lights Fort Herriman Towne Days Memorial Day Arts Council Summer Show, “Newsies” MotoX 2021 City Events 2021 brought the return of in-person City-sponsored events after many were canceled or altered in 2020 due to the COVID-19 pandemic. Most events had higher estimated numbers of attendees than ever. 2021 PAFR Table of Contents 9 About Herriman City Streets Parks Total City Parks 53 Miles of existing trails 220 336 110 300 Total parks acres Lane miles of City-maintained roads Miles of City-maintained storm drainage Miles of City-maintained sidewalks 2021 PAFR Table of Contents 10 Major Additions Major Additions and Projects in 2021 EXHIBIT B Master Plan 29 new businesses welcomedK9 Memorial Dog Park construction Olympia annexation New City Manager Rosecrest water pump station upgrade Salt Lake Community College groundbreaking Herriman Emergency Center groundbreaking 2021 PAFR Table of Contents 11 General Fund Revenue By Source 3.5% 37.1% 9.0%20.3% 18.5% 9.0% 0.4%0.3%1.8%Property Taxes Sales & Use Taxes Franchise Taxes Licenses & Permits Intergovernmental Revenue Charges for Services Fines & Forfeitures Interest Earnings Miscellaneous Revenue Historical Revenues - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales Tax License and Permits Franchise Tax Property Tax Intergovernmental Charges for Services The General Fund is the operating fund of the City. Therefore, it is important to focus on the General Fund to assess the overall health of the City’s financ- es. Total General Fund revenue in fiscal year 2021 was $25,655,135, compared to $20,584,122 in fiscal year 2020. Tax revenue is the largest source of income, in- cluding property, sales, and franchise taxes. License and permit revenue is primarily from fees related to building and development. Intergovernmental reve- nues are largely from fuel taxes. The following charts show the proportional share of each of the revenues represented in the general fund. Revenues 2021 PAFR Table of Contents 12 General Fund General Fund expenditures are divided into 8 general groups: The City had total expenditures from the General Fund of $27,006,848 in fiscal year 2021 before capital outlay and debt service compared to $23,703,278 in fiscal year 2020. The following chart shows the pro- portional share of each expenditure category: Police Public Works • Facilities • Fleet • Streets • Snowplowing • Stormwater • Streetlights • Street signs • Police • Animal Services • Emergency Management Administration• City Manager • Assistant City Managers • Communications • City Recorder • Municipal Court • Customer Service • Economic Development General Government• Legislative • Legal • Human Resources Finance Parks, Recreation and Events • City Treasurer • Accounting • Information Technology • Parks • Events and Recreation • Cemetery Engineering Community Development • City Engineer and staff • GIS • Building Department • Planning and Zoning Expenditures Expenditures 3.2% 14.9% 4.2% 16.6% 16.1%5.9% 8.0% 31.2% General Government Administration Finance Public Works Park Recreation & Events Engineering Community Development Police 2021 PAFR Table of Contents 13 Capital Assets $526,358,252 Capital Assets net of depreciation Capital assets include land, buildings, equipment, etc., to help serve the community Capital Assets 47.8% 0.8%3.5% 47.2% 0.4%0.2% Land & Water Rights Construction Projects in Process Buildings Infrastructure Automobiles & Trucks Machinery and Equipment 2021 PAFR Table of Contents 14 Debt $1,673 $1,492 $1,351 $1,877 $1,848 $1,386 $1,079 $944 $1,134 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 Per Capita Bonded Debt Outstanding Debt As of the end of fiscal year 2021, the City has out- standing bond debt in the amount of $58,561,640. The City has several types of revenue bonds. A rev- enue bond is secured by some form of revenue that the City receives. Herriman City has $23,210,000 in Sale and Franchise Tax Bonds, $8,544,000 in Tax Increment Bonds, $7,236,550 in Special Assessment Bonds, and $34,797,746 in Water Revenue Bonds. The tax increment bonds are secured by property taxes that have been conceded to Herriman by other tax- ing agencies to promote economic development. Spe- cial Assessment bonds are secured by the real estate in the Herriman Towne Center and the City receives annual assessment on that property. Herriman City bonded for $20,000,000 for new water infrastructure during the fiscal year 2021. The following table shows the bonded debt per resi- dent over the last nine years: Sales and Franchise Tax Bonds$23.2 million 1.0-5.0% interest Tax Increment Bonds$8.5 million 5.0% interest Water Revenue Bonds$34.7 million 1.86-4.6% interest Special Assessment Bonds$7.2 million 3.75-5.0% interest 2021 PAFR Table of Contents 15 Sales Tax - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sales Tax Distribution State Distribution Local Sales Sales tax made up of General Fund revenue in FY 2021 37% Sales Tax Sales tax is the largest source of recurring revenue in Herriman City. Local sales tax is 1% of sale, and the locality (Her- riman) making the sale receives one half of the lo- cal taxes. The other half is distributed by the State of Utah to cities, based on population. Currently, Herriman City receives about 80% of its sales tax from the state-distributed portion. The graph below shows the portion of point of sale revenue compared to the state distribution: 2021 PAFR Table of Contents 16 Development Impact Fees Impact Fees The State of Utah allows impact fees on new con- struction to help build new infrastructure. It is con- sidered unfair to existing residents to have them pay for improvement related to new residents. Herriman City currently has impact fees for parks, roads, storm drains, and water. The City also charges developers a fee to install streetlights and street signs in a new development. (Note: The water impact fees will be reported later in the Utility Fund information.) The following table shows the Revenue and Expendi- tures for these funds: Revenue Expenditures - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Parks Roads Storm Drain Street Signs Street Lights Impact Fees 2021 PAFR Table of Contents 17 Utility Funds Water and Stormwater Utility Funds Herriman City has two utility funds: stormwater and water services (both culinary and secondary). From the Water Fund, the Water Department is re- sponsible for delivering water services to residents. In the General Fund, the Administration Depart- ment is responsible for the billing and collection of water charges. During the fiscal year, the water fund had revenues of $17,737,644 and expenditures of $14,921,391. The stormwater fund had revenues of $1,480,244 and expenditures of $1,239,164. The sources of revenue and expenses for the water fund, as well as a com- parison of stormwater revenue and expenses, are shown on this page. Revenue Expenditures - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 Stormwater Fund 74.0% 24.3% 1.5%0.2% Revenue Charges for Water Impact Fees Connection Fees Interest Income 28.1% 9.9% 5.3%5.5%4.9% 10.9% 27.9% 5.1%2.5% Expenditures Water Purchases Salaries and Wages Operating Supplies Professional & Technical Utilities Repairs & Maintenance Depreciation Interest Other @HerrimanCityHerriman.org 801-446-5323