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HomeMy WebLinkAboutTown of North Kingstown - Public Financial Report The Town of North Kingstown, Rhode Island Popular Annual Financial Report A summary of the finances and operations of the Town of North Kingstown, RI for the fiscal year ending June 30, 2021 January 1, 2022 Issue # 3 Message to the Town of North Kingstown A.Ralph Mollis, Town Manager Financial Update Jim Lathrop, CPA, MPA Director of Finance Good News AWARDS & ACCOMPLISHMENTS HR/Personnel Success comes from hard work. Haley Wicker received her Human Resources Management Certification from Bryant University and passed the Society of Human Resources Association exam so was the perfect candidate to head up the Town’s new HR/Personnel Division. Her training, positive attitude, and exceptional work ethic enabled her to take a lead role in the complex Covid-related issues and how these issues effect our employees. Her hard work was recognized by the Providence Business News, naming her the 2021 Rising Star. Congratulations Haley! Recreation The Recreation Department faced many challenges related to Covid. Despite these obstacles the department was named the RI Recreation Department of the Year and received the Walter Henry Award. Department head Chelsey Dumas-Gibbs completed the US Parks and Recreation Parks & Recreation Program and received the Certified Park & Recreation Professional designation. The Recreation Department offered programming to 2,405 participants in 2021. The department also oversees the Town’s golf course, which saw 51,560 rounds played during the year, and manages the Town’s Allen Harbor Marina. The Covid-19 pandemic brought unprecedented change to our community, pressing the limits of staff, residents, and local businesses. This forced us to reimagine how we do business, provide services, and educate our children. We continue to work to be more efficient, more effective, and more responsive to the needs of North Kingstown’s residents and businesses. 2021 was a year of many accomplishments and tremendous progress. The new Beach Campus Playground and Wilson Park Splashpad/Playground opened in 2021. These are among the exciting projects and programming that have our Recreation Department the envy of RI. Fiscally we continue to have positive results. Our fifth consecutive balanced budget and operating surplus resulted in an AA+ bond rating and receipt of our second consecutive GFOA budget award. We reported a combined (Town & School) surplus of $3.9 million. We will continue forward with an ambitious agenda for 2022 and continue to monitor Covid and its impact. This could not be accomplished without the hard work and dedication of our employees, the leadership of our elected officials, and the support of our residents. Our community is indeed very fortunate! Stay Safe, Be Well. The Town of North Kingstown has presented the FY 2021 financial results as a Comprehensive Annual Financial Report (CAFR) for the third consecutive year. A CAFR is the highest level of reporting and includes financial and operation information that is beyond the basic financial statement and should be referred to when looking for historical and more in-depth information. For the second year, North Kingstown’s annual budget received recognition from the Government Financial Officials Association (GFOA) and was awarded the Distinguished Budget Presentation Award. The Town of North Kingstown believes in transparency, particularly as it relates to its finances. The Town’s website includes monthly non payroll check disbursements, monthly budget reports, annual financial reports, debt service schedules, union contracts and actuary reports on our OPEB (Other Post-Employment Benefits) liability. *A summary of financial results is on page #4 Page 1 The News You Need to Know Pictures: New NKFD rescue, NK Girls Soccer State Champions, Town Beach playground renovations, Covid-19 January 1, 2022 Popular Annual Financial Report fiscal year ending June 30, 2021 Issue #3 North Kingstown’s Government North Kingstown’s history can be traced back to the 1630’s when Roger Williams established a temporary trading post near Cocumscussoc, a major thoroughfare of the Narragansett People. In 1674, Kings Towne was founded by the colonial government and included the present-day towns of North Kingstown, South Kingstown, Exeter, and Narragansett. As settlements expanded it was divided in 1722. The Town operates under a home rule charter adopted in 1954, subsequently amended, providing for a Town Council/Town Manager for of government with a five member Town Council headed by a Council President. All legislative powers of the Town are vested in the Town Council by Charter including adoption of the Town budget, ordering of any tax and enacting ordinances and resolutions. Recreation, Golf & Allen Harbor Marina The department received the Walter Henry Award from the RI Parks & Recreation Assoc. Director Dumas-Gibbs completed training and was named a National Park & Recreation Assoc. Certified Parks & Rec Professional. The department secured an $88,000 DEM grant for Phase I of the Ryan Park Trail Program. Fire/EMS: The department saw a 7.2% increase in emergency calls and higher-than- normal requests for mutual aid from neighboring communities. We received a federal grant to assist in the purchase of personal protective equipment and a legislative grant to assist with training. The department took delivery of a new brush fire vehicle in 2021 Technology: Technology has become an increasingly important aspect of municipal operations. We continue to work protecting against fraud and unauthorized access to our system. The department completed various broadband projects and upgrades to CORE switch at the data center. Planning: The department completed the Municipal Resilience program and received CRMC approval for three right of way designations. The department continues to work on the protection of 400 acres of sensitive wetland areas and provides support to several Town projects that include the proposed public safety complex, recreation/community center, and redevelopment of the Wickford Elementary property. The department continues to administer the Post Road Façade Grant Program. Town Clerk & Canvasing: We introduced E-recording to provide a safe environment for recording land evidence documents. We increased on-line/virtual access to the public and worked with other departments in hosting virtual meetings. There were three elections: primary, presidential election, and statewide referendum. Early voting, in person voting, and mail in ballots pushed the total ballots cast to over 5,000. The Town Clerk’s office is also responsible for Municipal Court: 1,200 cases were processed in 2021 Assessment: Our focus has been on the revaluation. This information will be used in determining the FY 2023 tax rates. We have been part of the team developing a possible homestead exemption for 2023. Code Enforcement: In addition to the standard building permits, we worked on permitting a new commercial storage facility, Town Hall renovation, three large solar projects, and supporting electrical infrastructure. We welcomed Matt Souza as our new Asst. Building Official and Heath Potter as our new Zoning/Housing Inspector Police, Animal Control, & Harbor Master: 2021 was a challenging year given the pandemic and the loss of two of our own. We persevered and continued to provide the level of service the community has come to expect. The department was reaccredited by the RI Police Accreditation Commission. We received several grants and awards, including a DOT award of a new police cruiser, Stanton Foundation award for K9 unit costs, and Patrick Leahy Award for bulletproof vests. New programming included the creation of a bike patrol unit. Finance: In 2021 we issued the final round of the Town/School $27 million bond. Deb Bridgham our Munis administrator was promoted to Deputy Director of Finance. Our Tyler/Munis software requires updating in 2022 and will be one of our major projects. Senior Center/Human Services: The Beechwood staff provided Meals on Wheels delivery for older adults in our community. A Covid hotline was provided, assisting with vaccination appointments and answered a variety of questions. The hotline center also reached out to older residents in the community as a check in making sure their individual needs were being addressed. Doors to the public reopened in June and the center provided various programming, including health clinics, lunch, and Medicare counseling. Personnel: This is a new department for 2021! It was established to deal with the increasingly complex regulations associated with personnel. Its goal is to form uniform and consistent policies for all departments related to staffing issues. Covid regulations and dealing with changes in the workplace were a major issue in 2021. The department was able to create an employee self-service portal, allowing employees to access their personnel information. The department’s second employee, Waleska Corona, joined the team in December 2021. Department of Public Works: The Public Works Department oversees several divisions and Enterprise Funds. Divisions include Engineering, Facilities, & Highway. In addition, it oversees the Transfer Station and Sewer Department, both Enterprise Funds. The department paved 9.33 miles in 2021. This is an increase from 6.89 miles and 3.46 miles in 2020 and 2019 respectively. The Transfer Station reported refuse collected in FY 21 as 6,544 tons and an additional 3,208 tons of recyclables. The department has made a sizable purchase in parts and new containers for recycling bins. Sewer saw in an increase in average daily treatment in FY 21 to 224,400 gallons. This is an increase of 18% compared to the previous year. This increase is attributed to new development and more people working at home due to Covid pandemic. The Sewer Department is also responsible for cleaning of the Town’s 2,054 storm drains. Public Works is involved with all major renovation projects. This includes park & rec facilities, library, Town Hall, and Gilbert Stuart Bridge project. Page 2 Department Updates Covid has had a significant impact on our community. One of the first forms of relief from the Federal government was to provide reimbursement of certain expenses. These reimbursements were made via FEMA. In total the Town has recieved $444,536. In additon the Town prepared reimbursment requests for the School Department and they are to receive approximately $78,000. . Depurty Director of Finance Deb Bridgham and Deupty Fire Chief John Linacre worked extensively with State, Federal, and FEMA officals in obtaining and maximizing these reimbursements The Town also received additional funding from the State in FY21 related to Covid, the funding totaled $699,608. The School Deparmtent received separate funding, mostly funneled through RI Department of Education, (RIDE). The enactment of the American Rescue Plan Act (ARPA) is providing funding to North Kingstown. The Town will receive $7,868,124 and the school will recive $1,755,065. The Town has received ½ of these funds and will receive the remaining 50% in July 2022. These funds need to be commited to projects by December 31, 2024 and fully spent by December 31, 2026. The Town Council will be seeking input for use of a portion of these funds as part of the FY23 budget. Water Sewer Golf/Marina Transfer Station Municipal Court Revenues Charges for Services 4,262,104 1,658,016 2,529,718 699,061 157,679 Interest - 366,266 - 4,262,104 2,024,282 2,529,718 699,061 157,679 Expenses Operations 3,160,819 643,999 1,513,190 641,480 80,456 Interest 91,550 356,077 - - - Depreciation 565,301 295,606 383,453 - - 3,817,670 1,295,682 1,896,643 641,480 80,456 Operating Income(loss) 444,434 728,600 633,075 57,581 77,223 Transfers, net (78,342) (92,195) (1,207,227) (25,872) (39,350) Changes in Net Position 366,092 636,405 (574,152) 31,709 37,873 Net Position Begin 13,930,626 (391,773) (1,086,875) (198,539) 11,354 Net Position End 14,296,718 244,632 (1,661,027) (166,830) 49,227 Page 3 The Town uses fund basis of accounting. Related accounts used to maintain control over resources that have been segregated for specific activities are designated a fund. The General Fund is the Town’s primary fund and the focus in reporting. Additional funds include Debt Service, Special Revenue, Capital Project, Permanent, Enterprise, and Fiduciary Funds. More details on each of these categories can be found in the Town’s CAFR, which can be viewed on the Town’s website. Activities of the Enterprise Fund are accounted for much like a private for-profit business. The intent is that the activity is funded through use charges or other fees, with no impact to the taxpayer. North Kingstown Water Department Awarded 2021 RRWA Best Tasting Water North Kingstown School Department Revenues Town Aid $ 53,906,526 State Aid $ 11,861,298 Medicade $ 310,961 Tuitions $ 4,236,638 Other $ 143,668 $ 70,459,091 Expenditures Salaries $ 39,379,071 Benefits $ 15,068,058 Professional Services $ 11,374,884 Supplies & Materials $ 2,594,174 Capital Outlay $ 1,606,401 Leases $ 124,699 $ 70,147,287 Transfers, net $ 736,809 Surplus $ 1,048,613 Phil Auger, Ph.D. Superintendent of Schools US Secretary of Education, Miguel A. Cardona recognized North Kingston High School as one of 325 National Blue- Ribbon schools for 2021. The National Blue-Ribbon Award affirms the hard work of students, educators, families, and communities in creating safe and welcoming schools where students master challenging content. This award followed the North Kingstown High School being ranked fifth within RI and 1,382nd nationally by US News. Fiscal Year Enrollment Cost / Pupil Free/Reduced Lunch 2021 3,923 $ 17,881 20.30% 2020 3,780 $ 18,754 20.00% 2019 3,938 $ 17,821 22.00% 2018 3,891 $ 17,659 20.70% 2017 3,972 $ 16,161 22.00% THE SCHOOL DEPARTMENT Enterprise Funds New Employees hired in 2021 WALESKA CORONA HR/Personnel MARK THURSTON Police MARIA DELUCA-VACCARO Finance JOSEPH DONOHOE Planning BRANDON SCAVITTI Technology DAVID ALVES Public Works LYNANN ECKHOFF Dispatch STEVEN WILSON Public Works ALEXIS GUADALUPE Dispatch JESSE ZEINER Public Works BRYAN COCKSHUTT Fire DAVID CRETA Public Works SARA COUGHLIN Fire KEVIN CONLEY Senior Center ADAM CRABTREE Fire MELISSA DUBOIS Senior Center MICHAEL DANDURAND Fire DIANE HARVEY Senior Center RYAN HANRAHAN Fire ANDREA WILLIAMS Senior Center JARED HOPKINS Fire SOFIA ALAVOSIUS Library JESSICA HYNDS Fire ELIZABETH FERRARA Library SCOTT LYNCH Fire CANDICE MACHATA Library PATRICK MAIN Fire BRIAN GARLAND Water RYAN MCLAUGHLIN Fire ANDREW EVANS Water MARK NOLAN Fire MICHAEL MOLLOY Water MALAKAI PALMER Fire MICHEAL POTTER Water ASA RUBIN-CRUMP Fire ROBIN SPEARS Water STEPHEN RUSSO Fire TODD TAYLOR Water STEPHEN JARROW Animal Control Fire Department’s incoming recruits The Box Scores: Net Position and Statistics Like a baseball scorecard, the annual financial statements of net positon and changes in net positon provide informaton on the activity and financial health of a communtiy. The statistical section of the CAFR provides historic information going back 10 years, to show how operations and finances have changed during that period. North Kingstown baseball team captured their second ever state championship, and their first since 1967. North Kingstown has been runner up 7 times between 1997 and 2013. North Kingstown Net Position June 30, 2021 Governmental Activities Business Type Activities Total Current & Other Assets 49,501,803 23,110,787 72,612,590 Capital Assets 104,025,257 223,230,397 327,255,654 Total Assets 153,527,060 246,341,184 399,868,244 Deferred Outflows 21,237,779 531,903 21,769,682 Current liabilities 10,592,552 2,417,261 13,009,813 Long-term liabilities 158,460,010 18,985,667 177,445,677 Total Liabilities 169,052,562 21,402,928 190,455,490 Deferred Inflows 22,186,139 11,444,125 33,630,264 Net Position Capital Assets, net 67,278,897 8,454,836 75,733,733 Restricted 3,282,356 343,908 2,427,264 Unrestricted (86,999,115) 5,227,290 (81,771,825) Total Net Position (16,437,862) 14,026,034 (3,610,828) North Kingstown Changes in Net Position FYE June 30, 2021 Revenues Governmental Activities Business Type Activities Total Charges for Services 7,364,207 9,391,536 16,755,743 Grants & Contributions 22,490,369 1,946,506 24,436,875 General Revenue 91,966,389 366,266 92,332,655 121,820,965 11,704,308 133,525,273 Program Expenses 118,623,430 8,984,412 127,607,842 Transfers 1,423,718 (1,423,718) - Increase in Net Position 4,621,253 1,296,178 5,917,431 Net Position - Begin (21,059,115) 12,729,856 (8,329,259) Net Position - End (16,437,862) 14,026,034 (2,411,828) The Classifieds The Town disposes of surplus inventory through www.GovDeals.com. This website has a national reach and is dedicated solely to government and and educational agencies. Surplus items can be sold via the site at no cost to the Town. Sales in the past three years have totaled: $27,851.00. In addition, items are listed on the Town website. Currently the Town is offering excess real property for sale. For more information contact Town Planner, Nicole LaFontaine, nlafontaine@northkingstown.org. Notices for bid are posted on the Town and State of RI Purchasing websites. These notices can also be viewed on www.bidnetdirect.com, a website listing government bid opportunities nationwide. The Town is part of the RI Purchasing Group. Posting on these sites allows us to reach a greater vendor audience thus enhancing competitive bidding for the best cost. Vendors can register on both the Town website and Bidnet Direct to be notified of upcoming bids when they are posted. For more information on bidding and surplus equipment, contact the Town’s Purchasing Agent, Kris Kinder: kkinder@northkingstown.org Page 4 FY 2021 Budget Highlights Town Surplus $2,815,192 School Dept Surplus $1,048,613 Fund Balance of total governmental funds increased $14,182,577 from $28,801,487 to $42,984,064 • General Fund Balance $18,243,921 • School Fund Balance $5,865,895 Tax Collection Rates • FY 2021 98.52% • FY 2020 97.85% • FY 2019 98.03% • FY 2018 96.77% OPEB: Other Post Employee Benefits Unfunded OPEB Liability • FY 2021 $17,298,738 • FY 2020 $18,312,731 • FY 2019 $20,108,753 • FY 2018 $24,785,951 Debt: Outstanding Debt & Ratios Outstanding Debt (millions) FY 2021 FY 2020 FY 2019 FY 2018 Municipal $ 26.09 $ 19.35 $ 21.79 $ 20.38 School $ 18.24 $ 10.88 $ 11.61 $ 9.43 Water $ 2.30 $ 2.85 $ 2.66 $ 2.84 Sewer $ 12.40 $ 13.07 $ 13.45 $ 14.16 Debt Ratios per assessed value 1.34% 1.23% 1.11% 1.13% per capital $ 2,442 $ 1,887 $ 1,737 $ 1,762 Legal Notice A Popular Annual Report is a document designed to increase transparency and awareness of the Town’s government though user friendly financial reporting. The PAFR includes financial and other information that is present in the Town of North Kingstown’s Comprehensive Annual Financial Report (CAFR) and annual budget document. Because the PAFR is a summary document, it does not comply with the requirements of Generally Accepted Account Principles (GAAP). Residents who prefer to review a report that is GAAP compliant may review the audited CAFR document on the Town’s website. The Town continuously looks for ways to reduce costs and improve effiency. ▪ Our recent communication audit resulted in rebates of $17,228.75 and projected annual savings of $1,983.12. ▪ The Town participates in the State of RI W.B Mason purchasing program and receives a rebate based on our annual purchases. For 2021 the rebate was $2,188.26. ▪ We are in the final stage of implementing an LED streetlight program. Once complete, a 30% reduction in electric use is projected.