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Home My WebLink AboutCity of St. Charles - Public Financial Report POPULAR ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2020 Saint Charles, MissouriCity of 1RUWK6HFRQG6WUHHWʀ6DLQW&KDUOHV021RUWK6HFRQG6WUHHWʀ6DLQW&KDUOHV02ZZZVWFKDUOHVFLW\PRJRYZZZVWFKDUOHVFLW\PRJRY General Information . . . . . . . . . . . . . . . . . . . Elected Officials . . . . . . . . . . . . . . . . . . . . . . . Demographic and Economic Statistics . . . . City Functions . . . . . . . . . . . . . . . . . . . . . . . . .Financial Highlights . . . . . . . . . . . . . . . . . . . .Governmental Activities . . . . . . . . . . . . . . . . Business-Type Activities . . . . . . . . . . . . . . . . . Capital Assets . . . . . . . . . . . . . . . . . . . . . . . . . Outstanding Debt . . . . . . . . . . . . . . . . . . . . . .Financial Reporting Awards . . . . . . . . . . . . . 2 3 4569 11 121314 POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 1 WHAT IS THE POPULAR ANNUAL FINANCIAL REPORT (PAFR)? The PAFR is an easy to understand summary of the City’s AnnualComprehensiveFinancialReport(ACFR),a detailed report showing itsfinancialcondition.The ACFR is a tool designed to inform the residentsofSt.Charles about how the City is doing financially.It is not intendedtobeasubstitutefortheACFR.To obtain a copy of the ACFR,visithttps://www.stcharlescitymo.gov/ArchiveCenter/ViewFile/Item/162 .Both the ACFR and the PAFR are presented in accordance withGenerallyAcceptedAccountingPrinciples,the standard framework forfinancialaccounting. POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 2 The History of Saint Charles, Missouri This area was founded in 1769 as Les Petites Cotes ("The Little Hills")by French Canadian furtraderLouisBlanchette.The Spanish government controlled the Mississippi Valley between 1762-1800,and for a dozen years "The Little Hills"became "San Carlos Borromeo."In 1804, on the banks of the mighty Missouri River,Lewis and Clark met here to begin their westward expedition.Shortly thereafter,the City became known as "Saint Charles.“ The City of Saint Charles was incorporated in 1809 and covers approximately 25 square miles in eastern St.Charles County.The City served as the first Missouri state capitol from 1821 to 1826. As a destination for almost one million visitors each year,Saint Charles history comes alivetowelcomeyou.So join us and experience the charm and beauty of a city that has been welcoming visitors since 1769. St. Charles, MO9thlargest city in the State of MO POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 3 Daniel J. Borgmeyer Mayor Ward 1 –Mary Ann Ohms Ward 2 –Tom Besselman Ward 3 –Vince RatchfordWard 4 –Mary West Ward 5 –Denise Mitchell Ward 6 –Jerry Reese Ward 7 –Michael Flandermeyer Ward 8 –Michael Galba Ward 9 –Bart Haberstroh Ward 10 –Bridget Ohmes PER CAPITA PERSONAL INCOME St. Charles County per capita income is higher than the state average and ranks 3rd in the State of Missouri. Per Capita Personal Income (Source: U.S. Department of Commerce) POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 4 POPULATION Since 2010,St.Charles population hasrisensignificantly.At December 31,2020,the City had an estimated population of71,028. Population growth since 2010 Source: U.S. Bureau of Census Unemployment has spiked due to theCOVID-19 pandemic,however 2020unemploymentisinbetweenthestateandnationalaveragesof4.4%and 6.7%respectively. 2020 Unemployment Source: MO Department of Economic Development POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 5 Administration WaterUtility ParkingFacilities HumanResources CityClerk Legal MunicipalCourt Finance CommunityDevelopment EconomicDevelopment CommunicationTechnology Police Cemetery Public Works Parks andRecreation Tourism ConventionCenter StormWater Business-Type Activities Governmental Activities City functions are divided between two groups of activities:Governmental Activities and Business-Type Activities.This is required for financial reportingpurposes. City Council SanitarySewerUtility Mayor EngineeringThe City’s basic services are considered to be governmental activities and are primarily funded by taxes. The City operates two utilities and parking facilities. These activities function more like a private business and are funded predominately by fees paid for these services. Fire/EMS Transit Authority POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 6 The Statement of Net Position contains the assets and liabilities of the City at December 31,2020.Ending net position is an indicator of the City’s financial health.The level of unrestricted net position is an indication of the amount of unexpended and available resources in all funds of the City at a point in time to fundemergencies,shortfalls or other unexpected needs.The level of unrestricted net position increased in 2020 mainly due to an increase in debt related to capital projects. Assets:2020 2019 2020 2019 2020 2019 Current and Other Assets 135,469,631$ 127,411,453$ 26,299,363$ 25,708,837$ 161,768,994$ 153,120,290$ Capital Assets, Net 289,402,402 278,273,248 138,482,389 141,889,841 427,884,791 420,163,089 Investment in Joint Venture - - 2,695,472 2,799,535 2,695,472 2,799,535 Total Assets 424,872,033 405,684,701 167,477,224 170,398,213 592,349,257 576,082,914 Deferred Outflows of Resources 14,982,573 8,822,539 1,434,224 796,153 16,416,797 9,618,692 Liabilities: Current and Other Liabilities 8,966,733 32,586,632 3,814,298 5,946,001 12,781,031 38,532,633 Long-Term Liabilities: Due Within One Year 15,005,234 12,773,106 4,973,462 4,996,033 19,978,696 17,769,139 Due in More Than One Year 121,779,686 106,810,388 90,692,300 91,911,553 212,471,986 198,721,941 Net OPEB liability 18,044,030 - 1,847,365 Net pension liability 6,495,320 - 664,997 Total Liabilities 170,291,003 152,170,126 101,992,422 102,853,587 272,283,425 255,023,713 Deferred Inflows of Resources 1,915,260 6,776,488 196,087 705,543 2,111,347 7,482,031 Net Position: Net Investment in Capital Assets 214,661,172 202,955,589 49,748,050 51,910,435 264,409,222 254,866,024 Restricted 30,528,409 25,589,052 - - 30,528,409 25,589,052 Unrestricted 22,458,762 27,015,985 16,974,889 15,724,801 39,433,651 42,740,786 Total Net Position 267,648,343$ 255,560,626$ 66,722,939$ 67,635,236$ 334,371,282$ 323,195,862$ Total Business-Type Activities Governmental Activities POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 7 The Statement of Activities provides an illustration of the revenue received and spentbytheCityduringtheyear.Revenues are presented in separate categories for program revenues and general revenues.Program revenues relate to a specificprogramandgeneralrevenuesaremainlytaxesthattheCityreceives.Activities are presented by program to show how much of the program is supported by program revenues and how much is supported by general revenues.The overall change innetpositionin2020was$13.0 million,due to CARES Act funding and grant awards. Other revenues increased due to water and sanitary sewer utility rate revenue.Due totheCOVID-19 pandemic the City experienced voluntary expenditure savings from budgeted amounts. 2020 2019 2020 2019 2020 2019 Program Revenues 36,195,963$ 27,573,819$ 25,266,750$ 24,957,652$ 61,462,713$ 52,531,471$ Program Activities 88,340,277 91,221,075 27,922,305 24,721,708 116,262,582 115,942,783 Net (Expense) Revenue (52,144,314) (63,647,256) (2,655,555) 235,944 (54,799,869) (63,411,312) General Revenue 66,690,219 71,998,064 1,080,559 1,677,723 67,770,778 73,675,787 Transfers (662,699) (538,131) 662,699 538,131 - - Changes in Net Position 13,883,206 7,812,677 (912,297) 2,451,798 12,970,909 10,264,475 Net Position, Beginning of Year 251,026,192 243,213,515 66,994,008 64,542,210 318,020,200 307,755,725 Net Position, Restatement 2,738,945 - 641,228 - 3,380,173 - Net Position, End of Year 267,648,343$ 251,026,192$ 66,722,939$ 66,994,008$ 334,371,282 318,020,200 Governmental Business-Type Activities Activities Total POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 8 Historical Revenues, Expenses and Net Position Over the past ten years many of which were during the great recession,the City hasremainedverystableasmanagementworkstoprioritizeandlimitexpensestomatch available resources. POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 9 Governmental Revenues Taxes Program Revenues POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 10 Governmental Expenses The City of St.Charles provides a full range of local government services.This encompasses police and fire protection,emergency medical services,construction and maintenance of streets,planning and zoning,park and recreational activities,and tourism. The City prepares an annual budget that is adopted by ordinance each year.In addition, the City maintains a six-year capital improvement plan (CIP)that is adopted by a resolution of the City Council each year. POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 11 Business-Type Revenues Business-Type Expenses POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 12 Parks 25 Swimming Pools 3 Police Station 1 Police Vehicles 74 Fire Stations 5 Miles of Streets 288 Streetlights 5723 Traffic Signals 50 Governmental Assets Miles of Water Mains 357 Water Treatment Plant 1 Fire Hydrants 2516 Miles of Sanitary Sewer 356 Sewer Treatment Plants 2 Lift Stations 30 Vacuum Station 1 Parking Garage 1 Parking Lots 17 Business-Type Assets Asset Type 2020 2019 2020 2019 2020 2019 Land 42,879,299$ 39,310,384$ 618,287$ 618,287$ 43,497,586$ 39,928,671$ Land Improvements 9,717,830 10,517,514 - - 9,717,830 10,517,514 Structures and Improvements 47,975,556 50,012,003 132,374,109 134,544,286 180,349,665 184,556,289 Furniture, Fixtures and Equipment 13,785,613 14,042,615 3,434,892 3,186,652 17,220,505 17,229,267 Infrastructure 162,535,921 136,883,774 - - 162,535,921 136,883,774 Construction in Progress 12,508,183 27,506,958 2,055,101 3,540,616 14,563,284 31,047,574 Total Capital Assets 289,402,402$ 278,273,248$ 138,482,389$ 141,889,841$ 427,884,791$ 420,163,089$ Governmental Business-Type Activities Activities Total POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 13 Under the statutes of the State of Missouri,the limit of bonded indebtedness is 10%of the most recent assessed valuation.This does not include an additional debt limit of 10%of assessed valuation for street improvements or waterworks and electric plants provided under the statutes.The legal debt margin calculation for the City of St.Charles is as follows: 2020 Assessed Valuation $1,672,272,281 Debt Limit-10% of Assessed Valuation $167,227,228Amount of Debt Applicable to Debt Limit:General Obligation Bonds (GO)1 $7,060,000 Neighborhood Improvement District Bonds (NID)2 $38,845,000 Less: Amount Available in Debt Service Funds ($12,484,439) Legal Debt Margin $133,806,667 Definitions Certificates of Participation (COPs)–a type of financing where an investor purchases a shareoftheleaserevenuesofaprogramratherthanthebondbeingsecuredbythoserevenues.General Obligation Bonds (GO)1 –a municipal bond backed by the credit and taxing poweroftheissuingjurisdictionratherthantherevenuefromagivenproject. Neighborhood Improvement District Bonds (NID)2 –bonds issued by the jurisdiction that are retired by assessing the property owners in the district on some equitable basis.Tax Increment Financing Debt (TIF)–debt issued by the jurisdiction that is retired bydedicatingfutureincreasesintaxrevenuewithinacertaindefineddistricttorepaythedebt.Capital Leases –a lease agreement in which the lessor agrees to transfer ownership of an asset to the lessee at the end of the lease term. Debt Type 2020 2019 2020 2019 2020 2019 Certificates of Participation (COPs)63,960,000$ 51,705,000$ 86,940,000$ 100,360,000$ 150,900,000$ 152,065,000$ General Obligation Bonds (GO)7,060,000 9,770,000 - - 7,060,000 9,770,000 Taxable Special General Oblgation Bonds 10,031,000 - Neighborhood Improvement District Bonds (NID)38,845,000 37,795,000 - - 38,845,000 37,795,000 Tax Increment Financing Debt (TIF)7,335,000 9,917,189 - - 7,335,000 9,917,189 Capital Leases 2,417,017 2,833,870 - - 2,417,017 2,833,870 Total Outstanding Debt 129,648,017$ 112,021,059$ 86,940,000$ 100,360,000$ 206,557,017$ 212,381,059$ Governmental Business-Type Activities Activities Total POPULAR ANNUAL FINANCIAL REPORT -CITY OF SAINT CHARLES, MISSOURI PAGE 14 The Government Finance Officers Association of the United States and Canada (GFOA)presented a Distinguished BudgetPresentationAwardtotheCityofSt.Charles for the 2020 Budget.This is the 7th consecutive year the City has receivedthisprestigiousnationalawardandreflectsthecommitmentofthegoverningbodyandstafftomeetingthehighestprinciplesofgovernmentalbudgeting.In order to receive this award,a governmental entity must satisfy nationallyrecognizedguidelinesforeffectivebudgetpresentation.These guidelines are designed to assess how well an entity’sbudgetservesasapolicydocument,an operations guide,a financial plan,and a communication device. In addition,The City of St.Charles received the Certificate of Achievement for Excellence in Financial Reporting from theGFOAforitsComprehensiveAnnualFinancialReportforthefiscalyearendedDecember31,2019.The Certificate ofAchievementisthehighestformofrecognitionintheareaofgovernmentalaccountingandfinancialreporting,and itsattainmentrepresentsasignificantaccomplishmentbyagovernmentanditsmanagement.This is the 32st consecutiveyearthattheCityhasreceivedthisprestigiousnationalaward. City of St. Charles, Missouri 200 North Second Street St. Charles, MO 63301 Phone: 636-949-3208 Fax: 636-949-4616 www.stcharlescitymo.gov Lastly,GFOA has given an Award forOutstandingAchievementinPopularAnnualFinancialReportingtotheCityofSt.Charles foritsPopularAnnualFinancialReportforthefiscalyearendedDecember31,2019.In order toreceiveanAwardforOutstandingAchievementinPopularAnnualFinancialReporting,agovernmentunitmustpublishaPAFR,whosecontentsconformtoprogramstandardsofcreativity,presentation,understandability,andreaderappeal.This is the 3nd year that the Cityhasreceivedthisprestigiousnationalaward. The City is Triple Crown Winner! GFOA's Triple Crown recognizes governments who have received GFOA's Certificate of Achievement for Excellence in Financial Reporting,Popular Annual Financial Reporting Award,and the Distinguished Budget Presentation Award.