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Home My WebLink AboutCity of Roanoke - Public Financial Report c w 0 ,, : ,..f. t • .1:14 , , r; ;':::'-',,Ve.i';"t''''',''I .'-.. ' ,;,.-1'-',4•-• , ..;r714.,:.f:';',,,:;',1,,l''':::::::.11 (:)14.:''*;-'..':1.1ill (....i-,1';1;.'4'1,:':14,,l';'..-::'‘,:41;-::11°':4;- - ' ;, i , M., 111 ys� _ MY i • x ..„..,..ver . ...., ,,,,,,.,„:„:„..,,„,t,:..., . . „.„,..„........„ .,.„4. ,........„ . r , r -', ill( 'er, rJ 4 ,, t �J 1 CL) ?ft, 0 C -41 Ca lig 4- 0 r+A. ` F f R A y .§• F+r .4 - I 4 . 'S r , i t - v . • ' 1 •3 ; .1411 • - 1 %•'.v.t. i' 8riiI1i11.i,1, k. • I1. L ' lii11iil1i! 1A j { _�IIMIU� N I '"yr, ll R, ' r "4 • ; 4411,.1 0 f \a.. ila; .pe i i. .'i MUS..: *.. • + P 5 ti t } j F •: 1 I�� } 4 �I�i it { Roanoke At-A- Letter from the City Glance Manager Form of City Council Government Roanoke's Economy General Fund Financial Statement Where the Money Where the Money comes from goes Net Position - Primary Capital Government Debt Management Contact us • l Airport Roanoke /MN ourt/ -- ArrolerwoOd Preston Monterey Park Peachtree/westview Norwood Terraee i, eeaedhill ktiritir:d Washing, Eastgate Heigh[' al9ewood•Summit Hills was ruhing[o Road- Williamson Roa son Mecca d Gardens All " erica City tlgewaad Heights ,Melrose/Rugby yii hingt% Park Wilmonl Shenandoah Loudon- Park West. Morose Harrison. Cherry Hill Hurt Park Gilmer Y West Fallon Non:vich Mountain End Relmont i owntown Kenwood Raleigh Court Wrier Marn ingside aeYerle •iverdale G oit L0.1r[ 1952, 1979,1982, 1988, franklin• South 1496,2012,2617 Colonial Roanoke a d N A QUICK FACTS 99,883 Residents Roanoke, the largest city in the Commonwealth of Virginia west of Richmond, is located in Virginia's Blue Ridge Region,approximately 170 miles west of Richmond and 235 miles 49 Designated Neighborhoods southwest of Washington,DC. Its position in the southeastern United States gives the City ready access,within a day's drive,to nearly one-half of the total population of the United States. 1 of 38 Independent Cities in VA The City's history began in the 1740s.Mark Evans and Tasker Tosh came from Pennsylvania and took up land near the salt licks where Indian and animal trails crossed in the center of Median Age of38.5 the valley. The settlement was initially known as"Big Lick." Median Household Income 44,230 In 1882, now known as Roanoke, the town became a crossroads for the railroad, which eventually became the Norfolk and Western Railway.This marked the start of the town's rapid growth,leading to its charter as the City of Roanoke in 1884. AA+Bond Rating Roanoke is a mountain city and hub for innovation offering award-winning outdoor amenities, endless trails, friendly neighborhoods with character, public art, the famous DID YOU KNOW? Roanoke Star, museums, craft breweries, one-of-a-kind shops and restaurants, and The Roanoke Star is the largest free-standing historical attractions.Our city is diverse,welcoming and compassionate. Roanoke is also a man-made illuminated star in the world and National Civic League(NCL)7 time All-America City and Hall of Fame Inductee! can be lit solid white, red, white, and blue, or any variation thereof. The star sits perched atop Mill Mountain and overlooks the surrounding valley and Blue Ridge Mountains, serving as a beacon and welcoming sign to visitors. The Honorable Mayor,Members of the City Council and Citizens of Roanoke,Virginia: We are pleased to present the City of Roanoke, Virginia (the City) Popular Annual Financial Report (PAFR)for the fiscal year ended June 30,2021. This report provides key information about the financial condition of the City's government,in a concise and understandable format. As has been the case with many communities across the Commonwealth of Virginia,the COVID-19 Pandemic(Pandemic) continued to disrupt the Roanoke Region economy during the 2020-2021 fiscal year. Recovery continues in several sectors including leisure/hospitality,retail trade,technology and manufacturing. The fiscal year 2020-2021 yielded 25 announcements across multiple sectors totaling over$44 million in new investment and creating 220 new jobs. After implementing much of what was recommended in the Vision 2001-2020 plan,Roanoke will soon adopt a new 20-year comprehensive plan to guide its future. The plan will be organized into six general themes: resilient economy,community health,interwoven equity,livable built environment, responsible regionalism, and harmony with nature. Roanoke's comprehensive plan consists of over 30 component plans.Some focus on special topics like housing and greenways while others are place-focused on neighborhoods and development areas. Our strategy is to understand and make the most of interconnections between quality of life and economic prosperity. The City's Capital Improvement Program for FY 2022 through FY 2026 represents$193 million of public improvements to the City's schools, infrastructure,parks,libraries,publicbuildings,technologyimprovements,fleetreplacement,andRoanoke'sciviccenter(theBerglundCenter).The ClPincludesimportantpublicsafetyimprovementssuchastheFireEMSMasterPlanfortheconstructionand/orrelocationofthreeFire/EMSstations as well as downtown improvements surroundingthe Campbell Court redevelopment,passenger rail infrastructure and transit facility relocation. Roanoke City Council places education as the top priority of the government and its citizens, providing more funding toward education than any other area. Roanoke Schools continue to demonstrate performance improvements,with the 2020-21 on-time graduation rate for students increasing to 89.26%. All 24 schools are fully accredited by the Commonwealth of Virginia based on 2018-19 assessment data (2019-20 and 2020-21 accreditation was waived due to the impact of the COVID-19 pandemic). Public safety is one of the top priorities of the City. Roanoke is in an elite group of cities with accreditation of all three of its primary public safety departments—Police,Fire-EMS and Sheriff. Each agency is committed to public safety and continuously evaluates services, community interaction,technology and initiatives in an effort to provide the most effective utilization of resources. Roanoke, like much of the nation, spent a significant amount of 2020-2021 grappling with the challenges associated with political polarization,social inequity,and institutional racism;however,none of these had a more profound and disruptive impact on our City than the COVID-19 pandemic.Roanoke weathered the"Great Recession"well and has since boosted reserves,confirmed its strong bond rating, improved high school graduation rates,and real estate values have increased at a stable,sustainable rate. COUNCIL-MANAGER FORM OF GOVERNMENT IMMUIll I DEPUTY CITY MANAGER DIRECTOR OF FINANCE ASST CITY MANAGER Operations Comm. Development 1/ , -- ' 'I prill, iljoi 4 6 hi. 111 11, Sherman Lea, Sr. 'atricia "" ite-:oy• Mayor Vice-Mayor 1 tilir- , II 1 William D. Bestpitch Josep L. Co• • •o•ert . e ' rey, r. Council Council Council 1 al ' — IV, -- i \ 1 Vivian Sanchez-Jones Stephanie Moon Reynolds Council Council 400.1 • ' ROANOKE'S ECONOMY J' hit The City's economy is predominantly non-agricultural, consisting of: healthcare,wholesale and retail trade, construction, manufacturing,transportation, research &development,technology, and warehousing. Other • sectors include financial services, insurance, real V estate, public administration, utilities management, I1� arts and recreation, and small-scale agriculture. Roanoke offers many of the cultural amenities typically associated p r with larger cities, including a vibrant arts scene, several higher I education institutions, and a vibrant entrepreneurial community that boasts a balance of small and large businesses. Often thought of as cosmopolitan, Roanoke is proud of its attractive and eclectic neighborhoods,welcoming environment, and its emphasis on livability and quality of life. The Roanoke economy is steadily rebounding from the recent constraints created by the COVID-19 pandemic. The City continues to be the center of a strong regional business environment with a creative, diverse,and growing community.Management believes that the positive fiscal year 2022 revenue estimates are attainable. Local taxes, including real estate and personal property taxes, are consistently performing above fiscal year 2021 levels. The Roanoke economy continues to show signs of recovery. Local taxes indicate a moderate increase in economic activity. Management believes that the conservative current fiscal year 2022 revenue estimates will be achieved. Challenges exist in predicting the timing and rate of improvement moving forward. Performance of local taxes,excluding real estate and personal property taxes,will be a key indicator of the pace of economic recovery. With continued funding from the federal government through the American Rescue Plan Act of 2021 (ARPA),economic support continues for many sectors within our community.The Star City Strong Recovery and Resiliency Advisory Panel developed recommendations for utilizing$64.6M in federal funding provided through ARPA for the City of Roanoke. These recommendations are intended to ensure federal funds received by the City, results not only in recovery, but in transformation to a future that is better than the past.The City's continued focus will be on a deliberate prioritization of services and programs that are responsive to the needs of those who are being served. $320 M $310 M $300M $290M $280M $270M -- $260M $250M FY17 FY18 FY19 FY20 FY21 Revenue Expenditures nimmosi miou smi I iMI YOY EXPENDITURE CHANGE L. ii - 1 .6% E - - Local taxes increased by 3.9% LEAN methodology continues , compared to last year.Real Estate to be a focus for the City to taxes, the City's largest single continually improve efficiencies source of revenue, increased and reduce costs for the 4.6% as a result primarily of benefit of Roanoke citizens. — --an increase in property value. — — _ 350 M 300 M 279M 291M 300M 300M 310M 73M 250M 258M 259M 259M 265M 2� 255M Egg r 200 M III III IR ■ ■ 150 M 100M 50 M M FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY20 FY21 'Local Tax Revenue =Non Local Revenue Value in 2008 Dollars WHERE THE MONEY COMES FROM The propertytaxclassificationwasapproximately 35% of the total revenue generated by governmental activities and included real estate tax, the local portion of personal M isc llaneous, charger for property tax, and public service corporation 5° Servi , 10% taxes. Real estate tax revenue, the largest Property source of revenue for the City, totaled $95.2 taxes,35% million. The assessed value of real property in the City increased 4.3% for the 2021 calendar year due to new construction and renovation. Sales, prepared food and beverage, business and professional occupational license, utility, telecommunication,transientroom and cigarette taxes,as well as funding from the Commonwealth Opera i rig under PPTRA, comprised the majority of grants and er Taxon, other local taxes collected by the City. Other 25% ttiritributicni, taxes equated to approximately 25% of total 24% revenues generated for governmental activities. Operating grants and contributions was approximately 24% of governmental activities revenues. Social service programs, street maintenance funds, reimbursement for shared expenses of constitutional officers, reimbursement for funding received under House Bill 599 for law enforcement, and jail per diems are some of the major sources of revenue included in this category. Charges for services included items such as fines, court fees, inspection fees, reimbursements for housing prisoners, solid waste collection fees, and recreation and other program-based fees. IIII BUDGET REVENUE _AIL_ 125,938,851 131,250,933 75,798,117 81,005,828 75,926,839 75,188,311 17,080,564 17,174,267 1,024,800 863,283 1,019,200 863,283 810,629 2,637,531 466,000 245,508 39,253 TOTAL GENERAL FUND REVENUE 298,065,000 309,729,001 WHERE THE MONEY GOES Parks,. Recreation and Cultural,49 Judicial Other, 1 Administration, 36 Community Development, 5%— Education, 26% Interest and Fiscal Charges, 1% General Government, 11° Public Works, 13%1 Public Safety, 22% Health and Welfare, 14% Education comprised 26% of governmental activities. Funding of $90.5 million was provided to the Roanoke City School Board to support operations and debt service. Public Safety expenses comprised approximately 22%of expenses of the governmental activities.Operations of the City Jail, Police and Fire Departments were included in this category, along with expenses of Emergency Medical Services,Communications(E911 Call Center),and the cost of juvenile justice programs. Public Works and Health and Welfare expenses comprised approximately 13% and 14%, respectively, of governmental activities expenses. Expenses for Solid Waste Management, Building Maintenance, Street Paving, and Street Maintenance were included in the Public Works category. The Children's Services Act and social services programs were the majority of expenses reported in the Health and Welfare category. BUDGET SPEND 107,667,701 86,847,413 64,616,959 60,920,437 42,581,453 41,957,631 30,919,968 30,876,459 25,049,483 21,698,776 9,948,937 9,658,377 8,763,511 8,507,511 8,516,988 8,786,243 TOTAL GENERAL FUND EXPENDITURES 298,065,000 269,252,847 The City's assets and deferred outflows of resources STATEMENT OF ACTIVITIES exceeded liabilities and deferred inflows of resources by CHANGES IN NET POSITION $442.5 million at the close of the fiscal year. The City's combined net position, (the City's bottom line) increased FOR THE YEAR ENDED by $31.9 million from prior year's ending balance of JUNE,30 2021 $410.6 million. Net position from governmental activities increased by $31.4 million. Business-type activities resulted in an increase in net position of $0.5 million. The largest component of the City's net position was the investment in capital assets $(496.7 million) (e.g., land, buildings, infrastructure improvements, machinery, and equipment, net of accumulated depreciation) less any related outstanding debt used to acquire those assets, plus any unspent bond proceeds. The increase in the City's net position was a result of increases in capital Total Revenue asset investment offset by an increase in the deficit balance in unrestricted net position and restricted debt 2020 VS 2021 funding. Net position is reported as restricted when constraints on its use are externally imposed by creditors, 368,200,750 VS 383,988,716 grantors, contributors, regulators, or are imposed by law through constitutional provisions or enabling legislation. Restricted net position related to debt service totaled $76,816. The City's unrestricted net position, which is Total Expenses used to finance the day-to-day operations of the City, totaled a negative $54.2 million, a decrease of $27.2 2020 VS 2021 million from fiscal year 2020 unrestricted net position. 348,589,297 VS 357,232,635 V ihr 0 Total As of June 30, 2021,the City's capital assets for its governmental and business-type activities amounted to$730.4 million net of accumulated depreciation. This investment includes land, historical treasures, construction in progress, land improvements, buildings and structures, equipment and infrastructure. The City's capital assets increased year over year by$9.2 million or 1.3%when compared to fiscal year ended 2020. Summary of Capital Assets Net of Depreciation as of June 30,2021 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $- Governmental Activities Business-type Activities Total ■ Land and Improvements ■Buildings and Improvements ■ Equipment ■Infrastructure ■Construction in Progress ■Historical Treasures Total Positive and Improv- Good Transportation Below Average Affordable Place to ing Net Migration Infrastructure Employment Live and Do Business Volatility el) (1g31 �� I • ■ • ■ • CL-HA LR �L LtL L�_AL L_CL\L -1-LELiLt1 LLASLLLl"LLES $150,000,000 $100,000,000 $5 0,000,00 0 $- ( eneral CONTACT US liff.4111110 ROANOKE CITY OF ROANOKE DEPARTMENT OF FINANCE Attention: Accounting Supervisor 215 Church Ave Suite 461 Roanoke,VA 24011 "k MI loan H • Ino• $4- „*. . • • 1 ! • 40.14•••"' I I I • •,„ . • t • 4 , 3 111.0. • 41/4 00.00ktr