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HomeMy WebLinkAboutCity of Gulf Shores - Public Financial Report1 2 3 About this Report 4 Mayor and Council 5 Just the Facts 6 Governmental Activities 7 Component Units 8 Operating Indicators by Function 9 Property Tax Collections and Distribution 10 Principle Property Taxpayers 11 Where does the money come from? Where does the money go? 12 Revenues and Expenses 13 Fund Balances 14 Major Projects 15 5 Critical Actions of Focus for Vision 2025 16 Capital Assets 17 What do we owe? Table of Contents About this Report The Popular Annual Financial Report (PAFR) of the City of Gulf Shores is displayed to translate between the gap of our financial reporting and the understanding of the general public through a user-friendly format. While reading this if you have any recommendations, concerns or thoughts, please reach out to us. The PAFR summarizes and draws from information that can already be found in the Annual Financial Report. The City is in compliance with GAAP (Generally Accepted Accounting Principles) when preparing the Annual Financial Report and then it is independently audited by Grant, Sanders and Taylor, P.C (A local public accounting firm). Our PAFR however is not presented in GAAP format nor is it put through an audit process. The PAFR does not include all information on the City’s funds or the component units found within the Annual Financial Report. However we are confident to the best of our knowledge that the condensed financial information provided will give you insight into your city in regards to the financial position and results of operation for the fiscal year ending December 31, 2020. 3 If you desire to view our Annual Financial Report it may be found online at https://www.gulfshoresal.gov/ArchiveCenter/ViewFile/Item/71 Mayor & Council The City is a municipal corporation incorporated under the Constitution and laws of the State of Alabama. The City is governed by a Council consisting of a mayor and five council members elected for terms of four years. Members of the City Council serve part-time and are responsible for adopting ordinances, resolutions and setting the policies of the City, including the appropriation of money. The Mayor, who is a member of the City Council, is elected for a four-year term and is the chief administrative officer of the City. Government Profile and More Facts The Town of Gulf Shores was incorporated on February 12, 1957 and became a city on April 18, 1985. Gulf Shores is a world-class all-seasons resort area on the white sandy beaches of the southern tip of Baldwin County, Alabama on the warm waters of the Gulf of Mexico. The land area is 28.28 square miles and the water area is 4.76 square miles. The average annual temperature is 69 degrees. The daily operations of the City are run by the City Administrator responsible to the Mayor and Council. The City’s municipal services include police and fire protection, public works, recreation and cultural affairs, library, recreation center, planning and zoning, building, economic development, municipal court and general administrative services. Top row left to right: Steve Jones, Joe Garris, Jason Dyken, Gary Sinak Bottom row: Phillip Harris, Mayor Robert Craft 4 Just the Facts 5 Our Citizens and the Economy •Residents 15,014 (1,452 Veterans) •Median Household Income1 $50,306 •Persons in Poverty1 5.9% •Per Capita Income $37,108 1U.S. Census Bureau Quick Facts All values in this section are up to 2019 Top Ten Employers in Gulf Shores Employer Total Employees FT PT 1. The Hangout 735 35 700 2. City of Gulf Shores 345 291 54 3. Waterville 330 20 310 4. Lulus Landing, Inc 271 106 165 5. The Lodge at Gulf State Park 269 222 47 6. Wal-Mart 240 202 38 7. Gulf Shores Public Schools 237 225 12 8. Rouse’s Enterprises 185 185 0 9. Publix Alabama 155 65 90 10. Gulf State Park 115 115 0 Gulf Shores licensed 9,204 types of businesses in 2020 FT=Full Time Total Employees –FT = Part Time Education •High School Graduates1 96.1% •Bachelor’s Degree or Higher1 35.2% 1U.S. Census Bureau Quick Facts Geographic Characteristics •Land Area 28.28 SQ Miles •Water Area 4.76 SQ Miles •Avg. Annual Temperatures 69 Degrees •Avg. Annual Rainfall 61.57 Inches •Elevation 8 Feet Governmental Activities 6 Executive Human Resources Finance and Administrative Services Building Planning and Zoning Municipal Court Police Fire Rescue Recreation and Cultural Affairs Public Works and Engineering Component Units Gulf Shores City School System Jack Edwards Airport/Airport Authority The financial reporting entity (the City)includes all the funds of the primary government as well as the discretely presented component units of the Gulf Shores City School System,the Jack Edwards Airport,and Airport Authority. 7 The PAFR does not include information on the component units, unless referenced. Operating Indicators by Function/Department 2016 2017 2018 2019 2020 Building Permits Issued 782 896 1,295 998 1,879 Building Inspections Conducted 3,098 3,914 6,246 7.602 5,783 Business Licenses Issued 7,974 8,392 8,555 8,658 8,741 Physical Arrests 2,048 1,879 1,831 970 994 Traffic Violations 2,029 2,058 2,124 1,539 1,021 Officers 47 47 50 50 51 Emergency Responses 3,146 3,149 3,297 3,090 3,335 Fires Extinguished 83 54 63 72 71 Inspections 1,975 1,950 1,650 2,110 1,160 Full Time Staff 44 46 48 55 56 Volunteer Firefighters 10 4 0 34 34 Street Resurfacing (linear feet)8,200 8,100 5,510 8,960 31,500 Sidewalks (linear feet)1,600 10,760 3,265 4,950 267 Bike Lanes (linear feet)780 2,800 40,800 11,800 19,200 General Government Police Fire Engineering 8 Property Tax Collections and Distribution Fiscal Year Taxes Levied for the Year Taxable Property Assessed Valuation Current Collections Subsequent Collections Total Collections Percent Parcels Paid 2020 3,792,564 790,117,460 3,930,206 0 3,930,206 99.76% 2019 3,653,718 734,155,980 3,652,684 3,970 3,656,654 99.82% 2018 3,327,805 668,109,200 3,326,030 166 3,326,196 99.90% 2017 3,074,056 616,090,320 3,071,391 1,591 3,072,975 99.84% 2016 2,822,072 566,085,720 2,820,939 380 2,821,319 99.84% 2015 2,666,050 534,967,860 2,664,330 466 2,664,796 99.75% 2014 2,491,031 499,994,940 2,487,820 1,388 2,489,208 99.72% 2013 2,390,195 478,341,860 2,385,827 1,288 2,387,115 99.66% 2012 2,335,949 468,268,740 2,330,828 1,173 2,332,001 99.72% 2011 2,443,936 487,433,360 2,432,011 4,275 2,436,286 99.44% 9 The total property tax mills collected is 33 The Pie Chart above shows the distribution by Governmental entity of total mills collected and percentage. Principal Property Taxpayers Taxpayer Taxable Assessed Value Rank % of Total City Taxable Assessed Value 100 Emerald Greens LLC UC Funds $9,095,560 1 1.24% Mid America Apartments LP $7,166,000 2 0.98% Baldwin Co Electric $6,004,820 3 0.82% RCG-Gulf Shores LLC $5,065,660 4 0.69% Villas at Bon Secour $3,675,580 5 0.50% 21300 Sweetwater LLC $3,621,660 6 0.49% Howard Resort Inns INC $2,975,520 7 0.41% Walmart Real Estate Business Trust $2,802,980 8 0.38% Beach Place Development LLC $2,490,000 9 0.34% Waterville USA Inc $2,480,860 10 0.34% 10 General Fund RevenueSources 11 Departmental Budget Performance Property, sales, lodging, and business license taxes comprise 83% of all revenue collections. The largest collection is sales tax. By careful management of resources the city’s departments almost always operate within their budgets. Transfers represents amounts going to debt service payments. 8% 73% 10% 1% 3%2% 1% 2% Governmental Revenue Sources for Fiscal Year 2020 Local Taxes 34,323,959 Licenses & Permits 4,538,687 Fines & Forfeitures 384,382 Utility Tax Equivalents 1,442,306 Intergovernmental 856,532 Interest Income 288,018 Other Receipts 1,193,082 Total $46,834,104 - 5 10 Transfers Capital Outlay Outside Agencies Public Works Community & Economic… Fire & EMS Municipal Court Police Executive Millions General Fund Departmental Budget to Actual 2020 Actual Budget Revenues& Expenses 12 Expenses in excess of revenues reflects borrowing for bond issuances, however fund balances have continued to increase since 2010.The total amount borrowed reflects as an expense in the year that it is borrowed and the repayment will occur over a period of years. The chart above shows 10 years of revenues vs. expenses and the chart on the left shows 3 year trends for our major revenues Fund Balances General Fund In 2020 Revenues = $42,859,907 Expenditures = $34,742,533 Can make a new one for 2019 to compare year over year with pie charts. Or can include one for the different Warrant Fund and Other Governmental Funds and have both for 2019. 13 The City’s balance sheet reflects the City’s financial condition as of January 1, 2021. The balance sheet is a summary of what the City owns (assets and deferred outflows) and owes (liabilities and deferred inflows). The chart on the right shows 10 years of General Fund balances. Major Projects 14 Traffic Signals and Pedestrian Improvements $5.8 million Trail Widening & Resurfacing $500,000 Roadway and Pedestrian Infrastructure $1.6 million Ft. Morgan Trail Hwy 182 Ped & Signal Improvements Coastal Gateway Boulevard West Lagoon Ave Adoption of the Major Street Plan Planning & Design $93,000 Roadway and Pedestrian Infrastructure $10.8 million 15 MEDICAL –In 2020,the City announced and broke ground on a new regional healthcare facility to be built to serve the Alabama Gulf Coast.The development of this new facility will be the culmination of an ongoing regional cooperative effort. EDUCATION –In 2020, Gulf Shores City Schools started the second year as the first independent city school system in Baldwin County. The City secured $17 million borrowed funds for renovations and improvements to the school campuses to enhance safety, security, vehicle and pedestrian circulation, and the overall learning environment. WATERWAY DISTRICT –In 2020,the Gulf Shores Airport Authority broke ground on air traffic control tower and commercial flight terminal at Jack Edwards National Airport to further efforts to establish regional commercial flights to and from Gulf Shores. Five Critical Actions of Focus for Vision 2025 (5 year plan) GULF STATE PARK –The State of Alabama completed construction of a 350 room Hilton-branded lodge,180 seat restaurant and 40,000 square foot conference facility that opened fall 2018.Over 9 miles of new pedestrian-and bike-friendly trails are currently being completed within Gulf State Park. GULF BEACH DISTRICT –In 2020,the City completed new,safer pedestrian and bicycle pathways from West Lagoon Avenue to Little Lagoon Park. More information on the City’s 5 year Strategic Plan is available starting on page 28 of the 2021 Budget and is available on the City website at https://www.gulfshoresal.gov/ArchiveCenter/ViewFile/Item/70. Capital Assets At December 31, 2020, the City of Gulf Shores reported net capital position of $107,976,449 from governmental activities, an increase of $4,692,730 from the adjusted governmental activities capital assets net for December 31, 2019. Net capital position from business-type activities is reported as $2,076,397 which is an increase of $104,550 from December 31, 2019.16 Debt & Debt Repayment As of year-end,the City had $108,999,693 in debt outstanding which includes long term compensated absences of $1,912,310 compared to $91,213,984 for the prior year.All debt service payments were made timely.The City’s outstanding debt is rated Aa2 by Moody’s and AA+by S&P.The City is able to save money by borrowing at lower rates due to high quality ratings. 17 Warrant Final Payment Moody’s S&P 2006-B G.O.12/15/2025 Aa2 AA+/Stable 2008-A G.O.12/15/2028 Aa2 AA+/Stable 2012-D G.O.12/15/2021 Aa2 AA+/Stable 2017-A G.O.12/15/2027 Aa2 AA+/Stable 2018-A G.O.12/15/2038 Aa2 AA+/Stable 2018-B G.O.12/15/2033 Aa2 AA+/Stable