HomeMy WebLinkAboutCity of Alabaster - Public Financial Report1
POPULAR ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDING SEPTEMBER 30, 2021
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The City of Alabaster is committed to providing
transparency about the City’s financial operations.
The 2021 Popular Annual Financial Report provides
citizens and other interested parties with an
overview of the City of Alabaster’s financial results.
This report is prepared to increase awareness and
provide transparency about the City’s financial
operations.
The financial information provided here is obtained
from the audited financial statements in the City’s
2021 Annual Comprehensive Financial Report
(ACFR). The ACFR is audited by BMSS, LLC and has
received an unmodified or “clean” opinion. The ACFR
is prepared in accordance with generally accepted
accounting principles (GAAP). As such, it provides
much more detail as well as full disclosure of all
material events, both financial and non-financial.
The GAAP presentation also includes the City’s
component units (related organizations) and
information on individual funds. This report is
designed to provide a summary of the City’s overall
financial condition in a user-friendly format as well
as serve as a supplement to the CAFR, not a
replacement.
To view all City of Alabaster financial reports, visit
the City’s website at cityofalabaster.com and search
“finance”. We welcome any feedback, comments or
ideas you may have for continued improvement. It
has been a pleasure for us, as the City of Alabaster,
to serve each of you.
Mayor Message...........................................3
City Organization.......................................4
Community Profile..................................... 5
City Services.............................................6
Quick Facts.............................................. 7
Financial Results-FY 2021.......................... 8
Budget-FY 2022...................................... 12
Capital Assets......................................... 15
Finance & Budget Awards
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Mayor’s Message
It is my pleasure to present to you Alabaster’s Popular Annual Financial Report
for the fiscal year ending September 30, 2021. Understanding today’s
governmental financial statements can prove to be difficult. We hope this report
provides you an opportunity to learn and participate in the City’s financial
activities in an easy-to-understand, concise manner. As we strive to keep
citizens informed about the City’s financial position, we understand the
importance of being accountable for the receipt and expenditure of public funds.
This report will provide you with a snapshot of the City’s financial activities and
achievements from the past year and is an illustration of our continued
commitment to financial transparency.
Our top priority is providing quality services, and we have continued to find
ways to improve the efficiency and effectiveness of services provided to the
community. The City has also been able to maintain a strong fiscal position,
which will enable us to keep reinvesting into the City’s citizens, services and
infrastructure for generations to come. That is a commitment our 265 City employees take seriously.
From truck drivers and emergency dispatchers, library associates and magistrates, landscaping crews
and recreation officials, IT specialists and maintenance techs, the City workforce provides high quality
municipal services across a wide variety of professional fields. Our job is to make Alabaster a great
place for you to live and work through quality wastewater treatment, public safety, well maintained
roads, and much more.
We would like to thank the Finance department, the team responsible for producing this report and
the ACFR. Their commitment to accountability and integrity provides a great service to the community.
We invite you to seek more in-depth information online. The ACFR, Annual Budget, and other detailed
reports are available online at cityofalabaster.com. The City’s website also includes information about
departmental operations, job opportunities, City Council agendas, meeting minutes and much more. We
care about what you think, so please contact us with any questions, concerns or recommendations.
Citizens like you are what makes Alabaster great.
- Scott Brakefield, Mayor
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The City is governed by a Mayor – Council form of government. The Mayor
is elected at-large to serve a four-year term. Each of the City’s seven City
councilors are elected from seven single member wards for terms of four
years. The Council is presided over by a president who is chosen by the
council members and is a voting member of the City Council. The Mayor is
the chief executive officer of the City. Local elections were held in August
2020 with new elected officials taking office in November 2020. In the
August 2020 elections, Scott Brakefield was elected mayor, Jamie Cole
was elected council person of Ward 5, and Seth Gandy was elected council
person for Ward 6. All other wards remained unchanged.
City Organization
Ward 3
City
Councilor
Stacy
Rakestraw
Ward 1
Council
President
Sophie
Martin
Ward 2
City
Councilor
Rick
Ellis
Ward 4
City
Councilor
Greg
Farrell
Ward 5
City
Councilor
Jamie
Cole
Ward 6
City
Councilor
Seth
Gandy
Ward 7
City
Councilor
Kerri
Bell-Pate
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Community Profile
The City of Alabaster was incorporated in 1953
and occupies approximately 25 square miles.
Alabaster is currently the largest city in Shelby
County and the 16th largest city in the state.
Alabaster has become a major retail trade area
and major medical hub for Shelby County and the
City has continued to show economic growth
during the current year. Some local businesses
include, Shelby Baptist Medical Center which is the
largest hospital in Shelby County and has won
numerous awards for service and patient
satisfaction. The Promenade shopping center
occupies a prominent location just off I-65 in
Alabaster and serves as the primary retail center
of the City. The Industrial Park is home to several
large manufacturing and distributing businesses.
Alabaster also provides several residential benefits
for it’s diverse and growing population. Alabaster
has experienced a 48% growth in population since
2000 and 10% growth since 2010 while the
average growth for the State during that same
period was only 2.6%. The City is home to the
Alabaster City School district, and at the beginning
of the 2021 school year, the district had 6,234
students in the district. Alabaster enjoys a strong
sense of community ownership and responsibility
among City officials and local citizens, resulting in
active community participation and involvement in
all current City projects and issues. Alabaster and
other cities within Shelby County enjoy lower than
average unemployment due to many stable
service, health, and manufacturing employers in
the area. As of September 2021, per the Alabama
Department of Labor, the unemployment rate for
Shelby County was 1.8% while the average
unemployment rate for the entire state was 3.2%
Shelby Baptist Medical Center 1068
Alabaster Board of Education 789
MacLean Power Systems 354
AGC Automotive Americas 320
Hibbett Sports 320
Avanti Polar Lipids 274
City of Alabaster 272
Shelby Ridge 200
Mspark 200
Ahava Healthcare 180
TOP TEN EMPLOYERS
QUICK FACTS-US Census Bureau
Estimated population: 33,284
Median age: 37
Median household income: $80,072
Education level
-High school graduate or higher: 90.5%
-Bachelor’s degree or higher: 35.3%
Owner-occupied housing rate: 83.6%
Median value of owner-occupied housing: $173K
Median gross rent: $1,088
Persons per household: 2.84
Computer and internet use
-Households with a computer: 95.9%
-Households with broadband: 89.6%
Mean travel time to work: 31.7 min
* Figures Obtained from the U.S. Census Bureau.
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City Services
City Leadership
The Mayor appoints the department heads. These
department heads are responsible for ensuring
Council’s priorities are fulfilled through the
operations of their respective departments. The
Mayor, City Council, and Department Heads
continue to strive to adhere to the City’s goals in
planning for continued growth, maintaining quality
of life, and providing the highest level of
governmental services to all residents of the City.
City Services
The City of Alabaster provides a full range of
services, including:
• Police and Municipal Court
• Fire Protection and Emergency Medical Services
• Environmental Services
• Roadway Maintenance and Garbage Services
• Parks, Recreation, Library, and Senior Center
Planning, Engineering, and Building Services
Financial and Administration
A full department directory can be found at
cityofalabaster.com.
The Alabaster Water Board bills and collects
customers’ monthly sewer and garbage fees for
the City. Please visit alabasterwater.com regarding
water service, billing, or to request service.
Alabaster City School District
The Alabaster City School district officially
separated from Shelby County on July 1, 2013.
Dr. Wayne Vickers is the current School System
Superintendent. The Alabaster City School district
consists of six schools. The Board of Education
opened a new world class Thompson High School
in 2018 and continues renovations of its other
school buildings. The City remits 1% of all City
imposed sales and use tax collected to the
Alabaster Board of Education to help maintain an
elite school system that will attract both new
residents and economic development. Please visit
acsboe.org for additional information or zoning.
Interacting with the City
People have more avenues than ever to keep up
to speed on initiatives, news, programs, or
requests for City services through our City website
www.cityofalabaster.com.
Report a Concern-An easy way to report
concerns to the City and track the resolution of
your concern.
How do I-An easy way to reach the City with
questions comments or service requests
Notify me-Get email updates by subscribing to
learn about topics you care about.
Facebook-People can stay current and provide
feedback via social media. @alabastercityhall
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Quick Facts
26,997
Calls for
Police
Service
4,568
Business
Licenses
Issued
40,500
Library
Patron
Visits
127,783
Library
Items
Circulated
4,700
Patrons
Attended
Programs
4.47M
Gallons
Sewer Avg.
Daily Flow
120+ Miles
of Right
of Way
Maintained
Police
Response
Time
02:15
5,454 Tons of
Bio-degradable
Debris
Collected
2,433 EMS
Calls
4,186 Calls
for Fire
Emergency
Service
14,662
Tons of
Refuge
Processed
3,305
Traffic
Cases
and
505
Non-Traffic
Cases
300+
Senior
Classes
Offered
289 Acres
of Parks &
18 Fields
Maintained
2,000+
Participated
in Youth
Sports
$24.4M of
Residential
Construction
Permitted
3,120
Reports of Concern
Addressed
Fire
Turnout
Time
01:10
5,000+
Hot Meals
Served to
Seniors
965,000
Miles Driven
by Police
Patrol
12 Youth
& 3 Adult
Sports
Programs
1,110
Building Permits
Issued
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Financial Results Fiscal Year Ending September 30, 2021
Similar to a Balance Sheet, the Statement of Net Position presents information on all the City’s
assets and liabilities, with the difference between the two reported as net position.
Similar to a Income Statement, the Statement of Activities presents information showing how the
government’s net position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
the cash flows.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows
of resources at the close of fiscal year 2021 by $70.4 million.
The Statement of Activities shows the Primary Government received taxes and other revenues of
$54.1 million and had expenses of $44.3 million.
The City retired $4.4 million of outstanding debt principal through scheduled debt service payments.
The General Fund gave the Alabaster Board of Education $6.3 million which represents the education
portion of the sales tax collected.
Government-Wide Results
The government-wide financial statements are designed to provide readers with a broad overview of the
City’s finances in a manner similar to private-sector business. The government-wide statements provide
short and long-term information about the City’s financial status as a whole. Both government-wide
financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover
a significant portion of their costs through user fees or charges (business-type activities). The
governmental activities of the City include general government, public protection, public ways and
facilities, and intergovernmental functions. The intergovernmental functions of the City are those
activities whereby the City provides financial resources to other governmental entities. The business-
type activities of the City include the sanitary sewer and sanitation operations. Both activities are
collectively referred to in the financial statements as those of the primary government.
2021 2020 Change
Total Assets & Deferred Outflows 177,480,183 148,487,475 28,992,708
Total Liabilities & Deferred Inflows 107,054,077 87,821,741 19,232,336
Total Net Position 70,426,106 60,665,734 9,760,372
2021 2020 Change
Total Revenues 54,091,414 48,397,321 5,694,093
Total Expenses 44,331,042 39,818,072 4,512,970
Change in Net Position 9,760,372 8,579,249 1,181,123
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Financial Results Fiscal Year Ending September 30, 2021
Governmental Fund Results
The focus of the City’s governmental funds is to provide
information on near-term inflows, outflows and balances of
spendable resources. The combined fund balance of the
City’s governmental funds increased $10.0 million in 2021.
The total cost of all governmental activities increased by
$12.9 million, while total revenues increased by $5.1
million. The net difference in other financing sources and
uses was an increase of $16.7M The City maintains 14
individual governmental funds. The General Fund, the
Capital Projects Fund, Public Building Authority, American
Rescue Plan Act Fund, and the Debt Service Fund are
considered major funds. statements. All other funds are
nonmajor and are aggregated on the Statement of
Revenues, Expenditures, and Changes in Fund Balances.
General Fund Results
The General Fund accounts for day-to-day activity
and includes all activity not assigned to special pur-
pose funds. The City’s governmental activities rely
heavily on property taxes and sales taxes to sup-
port governmental operations. Property taxes pro-
vided 10.7% and sales taxes provided 64.7% of
the total governmental revenues. Sales tax reve-
nue increased by 14.5% from 2020. It should be
noted that program and other nontax revenues
covered 23.3% of general fund expenditures while
tax revenues covered 76.7% of the general fund
expenditures. The most significant governmental
expenditure is providing public protection services
such as fire and police protection which comprised
42.0% of the total general fund expenditures. Pub-
lic protection expenditures increased by 9.4% from
2020. The second largest cost incurred by the
City’s general fund is general government expendi-
tures, which are 23.9% of total general fund ex-
penditures. General government expenditures in-
creased by 102% from 2020. The total cost of all
general fund activities increased by $6.7 million,
while total revenues increased by $3.0 million. The
unrestricted fund balance in the General Fund as of
year end was $12.1M representing 33.3% of total
General Fund expenditures for the current fiscal
year. $3.3M of the unrestricted fund balance at
year end was committed by City Council as an es-
tablished reserve.
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Financial Results Fiscal Year Ending September 30, 2021
Capital Projects Fund Results
The Capital Projects Fund provides funding for property acquisition, infrastructure improvements, and
capital improvements. Projects in this fund are typically funded through debt proceeds, state
appropriations, or grant proceeds. The City had $6.4 million in capital improvement expenditures paid
out of the Capital Projects Fund in FY2021. The fund balance at September 30, 2021 for the Capital
Projects Fund was $20.3 million, an increase of $74 thousand.
2021 Capital Accomplishments
Public Safety: The City continued to update and improve
the vehicle fleet divisions by purchasing patrol vehicles for
the police department and a $1.4M for Tower 19, the Fire
Department’s new 100’ ladder truck. The City also
continued construction on a new Police Station with an
anticipated completion date of September 2022.
Civic and Cultural Development: . The City took major
steps towards improving recreation facilities in 2021. The
City spent over $4.3M on renovations for Veterans Park on
State Highway 119. This included moving the entrance to
the southern portion of the park and developing of more
field space at the front section of the park.
The City spent $575,000 acquiring 8.4 acres of already
developed field space from Kingwood Church. This space
will becomes the City’s newest park, Patriots Park. The
City spent funds on the initial design work for Patriots Park
with construction expected to begin in the summer of
2022.
Veterans Park Renovations Police Station
Patriots Park
Tower 19
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Proprietary Fund Results
Proprietary or business type activities rely on fees charged to customers for services rendered. The City
maintains one type of proprietary fund, Enterprise Funds which are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses
enterprise funds to account for its sanitary sewer and sanitation activities. The cost of all proprietary
(business-type) activities was $6.8 million, which is a $835 thousand increase from 2020. The amount
paid by users of the sewer and garbage services was $9.4 million, which is an increase of 6.5% from
2020. This increase was primarily due to an inflationary increase in sewer and garbage rates as well as
an increase in customers during 2021. Within the total business-type activities of the City, these
activities reported change in net position of $2.4 million, which is an increase of 14.0% from 2020. The
overall 2021 increase in net position is primarily attributable to increased revenue mentioned above
coupled with reduced interest expense for the Sewer Fund in 2021 due to paying off an existing bond
series.
Sewer Infrastructure: The Comprehensive Plan outlined as an action
item that the City should begin a replacement plan for obsolete sewer
infrastructure. One step the City took towards this goal in 2021 was to
spend $1.5M on obsolete equipment and significant system improvements.
These improvements will help preserve the life of the system and increase
efficiency within the system.
Financial Results Fiscal Year Ending September 30, 2021
Debt Service Fund Results
Debt Service Fund is used for the accumulation of resources
for, and payment of, principal and interest on general long-
term debt. The Debt Service Fund’s only revenue source is
interest accrued on cash balances held by the fund. The fund
balance for the Debt Service Fund at year end was $1.5
million, a $360 thousand increase. The City issues general
obligation warrants to provide funds for the acquisition and
construction of major capital facilities. General obligation warrants have been issued for both
governmental and business-type activities. General obligation warrants are secured by the full faith and
credit of the City and payable from the proceeds of various taxes. The most recent credit rating for the
City was issued by S&P Global on July 2, 2020. In that report S&P affirmed Alabaster’s credit rating of
AA which was an upgrade from the AA- in 2019. This rating equates to high quality and very low credit
risk. The report cited Alabaster’s solid financial position, strong economy and tax base, and strong
financial management as factors contributing to the rating. This rating is outstanding for a municipality
the size of Alabaster and ranks favorably with other cities in Alabama regardless of size.
In fiscal year 2021, the City’s Public Building Authority issued $16.0M in new general obligation
warrants to fund construction of the new police station.
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Budget Fiscal Year Ending September 30, 2022
September
Final Budget
Approval
August
Budget
July
Council
Review
June
Budget
Workshops
May
Budget Process
Begins
2022 Budget Highlights
Much like an average household, the City uses a
balanced budget to ensure that it maintains a
healthy financial position. Alabama law requires
local governments to approve a balanced budget
each year. The City plans for its financial needs of
the future by utilizing a comprehensive plan, fi-
nancial forecasting, debt schedules, and various
other studies. To meet the needs of the citizens,
the City of Alabaster must fund operations and
provide government services in a sound financial
manner. The budget is the foundation of sound
financial management.
The foundation of the budget is the strategic plan,
which sets the roadmap for all decisions over the
coming years. The budget strives to achieve the
key goals of the strategic plan by maintaining
current service levels, enhancing infrastructure
and recreational spaces, and retaining a talented
workforce. The City’s full budget website can be
viewed at city-alabaster-al-budget-
book.cleargov.com.
Budget Highlights
Increased City’s contribution for employee in-
surance from 75% to 80%
7 new full time equivalent employees added.
$2.5M budgeted to construct Patriots Park.
$6.45M in contributions to Alabaster City
Schools.
$50,000 to renovate library bathrooms.
$275,000 for new garbage truck.
$100,000 to light and cover batting cages at
Veterans Park.
$300,000 for Alabaster Boulevard repairs.
$1.66M for Highway 119 widening.
$100,000 for new electronic sign at Veterans
Park.
$4.7M for sewer capital improvements.
Budget Summary
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Budget Fiscal Year Ending September 30, 2022
PRINCIPAL SALES TAX PAYERS
1. Walmart Supercenter
2. Lowe's Home Improvement
3. Target
4. Walmart Neighborhood Market
5.Publix
6. TJ Maxx
7. Ross Dress for Less
8. Dicks Sporting Goods
9.Chick-Fil-A
10. Belk
Top 10 are 44% of Total Sales Tax
Where the Money Comes From
As is typical in the State of Alabama, the City of Alabaster’s property taxes are relatively low and
therefore are not the City’s primary revenue source. Sales and use taxes are the largest revenue
source in the City’s General Fund, providing 65.4% of revenue for fiscal year 2022. The second largest
revenue source for the General Fund is licenses & permits which provides 12.2% of revenue. The third
largest revenue source is property tax which provides 10.9% of revenue. Together, the top three rev-
enue sources provide approximately 88.5% of the funds to finance the City services provided by the
General Fund. The two largest revenue sources can be increased by a vote of the City Council, if need-
ed. Property tax increases are governed by the State Constitution and may require approval from the
taxpayers via a referendum.
Sales taxes are levied on gross receipts from the retail sale of tangible personal property within the
corporate limits of the City. The City’s sales and use tax rate is 4.0%. Growth in the City’s sales tax
revenue has mirrored the steady expansion of the City’s economic base since recovery from the eco-
nomic downturn began in 2011.
Property taxes are typically the most stable source of City revenues. There has been no change in the
Alabaster millage rates over the past decade, so the changes in property tax revenues are primarily
driven by new construction and the assessed value of the property within the City.
City ordinance requires that each business obtain a license annually before conducting business within
the City. The amount of the business license fee is dependent upon the business type, and for most
businesses, the amount of the previous year’s gross receipts, although certain business types pay a flat
-fee license.
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Budget Fiscal Year Ending September 30, 2022
Where the Money Goes
The City uses the revenue it receives to provide a variety of services to the community. The residents of
Alabaster expect superior service and accountability for their tax dollars. Therefore, the City has created
a budget that provides high quality services in a manner that is cost-effective and respects the tax dol-
lars we collect. The City’s annual revenues are typically not adequate to finance all the expenditures
proposed and approved by City Council. Expenditures that have a long-term benefit to the citizens gen-
erally have significant costs and it is reasonable to spread those costs over several years. The ad-
vantage of financing is that it allows the City to spread costs associated with large projects over many
years keeping the annual expenditures related to these projects reasonable.
General Fund
The largest expenditure category for the General Fund budget is personnel costs which include salaries,
wages, and benefits for the City’s workforce. For the fiscal year 2022 budget this category represents
47.9% of the budgeted expenditures. The second largest category is operating costs such as utilities,
uniforms, training, fuel, repairs, and other non-capital expenditures represent 34.1% of budgeted ex-
penditures. Other financing uses (such as transfers to other funds), capital, and debt service expendi-
tures make up the remaining 18% of budgeted expenditures.
Other Governmental Funds
The debt service fund has budgeted $4.5M of debt payments in fiscal year 2022. The Capital Projects
Fund has $6.2M of capital expenditures budgeted for fiscal year 2022. The American Rescue Plan Act
Fund has $3.0M of transfers to other funds to fund the purchase of qualifying capital expenditures. The
Public Building Authority has budgeted $11M of expenditures to complete the construction of the police
station in fiscal year 2022.
Enterprise Funds
The Sewer fund budget expenditure break out is 47.9% capital, 20.6% operating costs, 17.6% person-
nel costs, and 13.8% for debt service.
The Garbage fund budgeted expenditure breakout is 35.5% operating, 32% personnel, 17.4% transfers
to the debt service fund to assist with debt service payments, and 15% capital.
General Fund Expenditures by Category General Fund Expenditures by Department
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Capital Assets
What the City Owns
Capital Assets can generally be defined as items the City owns that will provide a benefit in
the future. The City’s capital assets are either associated with Governmental Activities or with
Business-Type Activities and are owned primarily for their contribution to the community’s
quality of life. For instance, a parcel of land that is owned and used as a park (Governmental
Activity), or a garbage truck that charges for service (Business-Type Activity). The City’s
capital assets as of September 30, 2021, totaled $99.9 million (net of accumulated
depreciation). This investment in capital assets includes land, buildings, and improvements,
machinery and equipment, infrastructure, sewer plant and equipment. Some capital assets
are considered to lose value over time. In order for the City to account for changing values,
depreciation expense is recorded. In the table below, all the assets are represented net of
accumulated depreciation which is their value at year end, including any reductions made to
their original values to account for depreciation.
Groundbreaking of the New Police
Station on August 19,2020
Progress on New Police Station
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