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HomeMy WebLinkAboutCity of Greenville - Public Financial ReportPopular AnnualFinancial Report For Year Ending June 30, 2021 Popular Annual Financial Report2 This Popular Annual Financial Report (PAFR) is designed to provide citizens and other interested parties with a user-friendly overview of the City’s financial results and increase awareness of the audited financial statements in the City’s 2021 Annual Comprehensive Financial Report (ACFR), or formal annual report. The 2021 ACFR was audited by Greene Finney, LLP and has received an unmodified or “clean” audit opinion. The City submits the ACFR to the Government Finance Officers Association of the United States and Canada annually and has received the Certificate of Achievement for Excellence in Financial Reporting for 33 years. The PAFR is not required to present the same level of detail as the ACFR and, therefore, may not fully conform to generally accepted accounting principles. Rather, this report highlights the overall financial condition and trends of the City. The debt of the City of Greenville Public Facilities Corporation (PFC), a blended component unit of the City established for the benefit of the City, is also included with the City’s other obligations. Electronic versions of the PAFR and ACFR are available on the City’s website at https://www.greenvillesc.gov/FinancialReports. REPORT OVERVIEW Popular Annual Financial Report 3 TABLE OF CONTENTS 4 City Council Members & 2021 Priorities 5 City Demographics 6-7 Citywide Financial Data 8 General Fund 9 Enterprise Funds 10-11 Tourism Funds 12 Debt Reporting 13 Credit Ratings & Awards 14 GVL2040; #PlantGVL 15 Solar Panels; Bobby Pearse; Firefighter Camp 16 Unity Park; Amur Leopards 17 Sound Check; GTA Facility; Species Survival 18 Sidewalks; Wings of the City 19 Small Business Boost; AED Units The City of Greenville is proud to present its Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2021. This document is based on the City’s fiscal year 2021 audited financial statements and illustrates how careful financial planning enabled us to withstand the economic challenges surrounding the COVID-19 pandemic while planning for the next phase of the City’s growth. Greenville’s 2021 General Fund experienced an increase of 5.6% over the 2020 operating budget and retained significant reserves above our 20% General Fund balance target. This excellent financial condition, amid ongoing pandemic-related challenges, was critical to maintaining essential services, adapting to COVID-19 precautions and advancing City Council’s ten high priority initiatives. With the proven leadership, skill and commitment of City Council and staff, Greenville will emerge from the pandemic ready to deliver high-quality services alongside the bold strategies captured in the recently adopted GVL2040 Comprehensive Plan. A MESSAGE FROM THE CITY MANAGER John McDonough City Manager Popular Annual Financial Report4 Ken Gibson, District 3; John DeWorken, District 1; Dorothy Dowe, At Large; Wil Brasington, District 4; Russell Stall, At Large; Knox White, Mayor; Lillian B. Flemming, District 2 CITY COUNCIL MEMBERS 2021 PRIORITIES 1 Quality Growth - Planning for balanced development that preserves the distinct character of Greenville 2 Environmental Sustainability - Protecting our climate, green space and natural resources 3 Public Safety - Maintaining a safe and secure community 4 Affordable Housing - Creating housing opportunities for all people regardless of income 5 Customer Focus - Providing outstanding customer service and a welcoming, inclusive environment 6 Transportation Infrastructure - Focusing on roadways, sidewalks, trails and bike lanes 7 Public Transit - Supporting a better public transit system 8 Public Facilities - Investing in maintenance and enhancement of public buildings 9 Economic Development - Strengthening our business environment and economy 10 Recreation & Events - Providing diverse recreation, arts and cultural experiences Popular Annual Financial Report 5 Housing 2019 Owner vs Renter Occupied Housing Daytime PopulationIncrease 2024 Population Prediction 63.5% White 29.1% Black 0.3% American Indian 1.9% Asian 0.1% Pacific Islander 2.9% Other 2.2% Two or More Races 6.8% Hispanic Population Median Household Income Median Age 2019 2024 $50,609 $58,487 Median Home Value 2019 2024 $288,070 $320,184 CITY DEMOGRAPHICS Per Capita Income $36,614 2019 $42,202 2024 36.9 2019 37.9 2024 Residents Source: U.S. Census, 2010; ESRI 2019 and 2024 projections; U.S. 2020 Census data not available *11.6% of housing units were vacant Top Employers Prisma Health System 10,013 Duke Energy Corporation 3,269 Greenville County Government 2,735 TD Bank, N.A. 2,261 Bob Jones University 1,631 School District of Greenville County 1,608 Fluor Corporation 1,600 USC School of Medicine, Greenville 1,323 Hubbell Lighting Inc. 1,215 City of Greenville 1,020 Popular Annual Financial Report6 A balance sheet provides a snapshot of what the City currently owns (assets) and owes (liabilities), as well as sources (deferred inflows) and uses (deferred outflows) that will be recognized in another year. Net position represents the City’s investment in the assets it uses to provide services to its citizens. Increases or decreases in net position may serve as a useful indicator of whether the City’s financial position is improving or declining. The City’s total net position for governmental and business-type activities increased by 8% or $28.3 million from 2020 to 2021 compared to an increase of 5% or $16.7 million from 2019 to 2020. The City received the first tranche of the American Rescue Plan Act funds in 2021 totaling $8.9 million and will use it as revenue replacement in the General Fund. Net Position Balance Sheet Governmental Activities 2021 2020 2019 Assets $396,758,389 366,727,719 $322,754,665 Deferred Outflows of Resources 22,219,509 17,815,643 15,494,123 Liabilities (208,081,075) (208,511,768) (174,786,346) Deferred Inflows of Resources (10,593,354) (2,224,557) (3,353,966) Net Position $200,303,469 173,807,037 $160,108,476 Business-Type Activities 2021 2020 2019 Assets $201,754,514 199,068,019 $199,815,947 Deferred Outflows of Resources 2,460,140 2,311,497 2,020,322 Liabilities (40,826,351) (39,929,438) (43,341,289) Deferred Inflows of Resources (280,683) (217,856) (289,394) Net Position $163,107,620 161,232,222 $158,205,586 CITYWIDE FINANCIAL DATA Popular Annual Financial Report 7 An income statement provides a summary of amounts received (revenues) and amounts spent (expenses). The difference between revenues and expenses shows the City’s change in net position. A positive change in net position indicates the City had enough revenue to cover its obligations and the ability to save for the future. The year-over-year increase in net position of the City reflects the positive variance of revenues over expenses. There was an overall 6% increase in revenues from 2020 to 2021 compared to a decrease of 4% from 2019 to 2020. There was less than 1% change in expenses from 2020 to 2021 and a neutral change in expenses from 2019 to 2020. The impact of these variances reflects a total change in net position of $28.3 million from 2020 to 2021 compared to an increase of $16.7 million from 2019 to 2020. Changes in Net Position Income Statement Governmental Activities 2021 2020 2019 Revenues $161,413,388 148,147,090 $148,434,635 Expenses (136,369,754) (135,519,175) (133,479,208) Transfers 1,419,874 1,070,646 (548,420) Change in Net Position 26,463,508 13,698,561 14,407,007 Beginning Net Position 173,807,037 160,108,476 145,701,469 Cumulative Change in Accounting Principle 32,925 - - Ending Net Position $200,303,470 173,807,037 $160,108,476 Business-Type Activities 2021 2020 2019 Revenues $31,872,391 34,089,646 $40,844,745 Expenses (28,577,119) (29,992,364) (31,980,137) Transfers (1,419,874) (1,070,646) 548,420 Change in Net Position 1,875,398 3,026,636 9,413,028 Beginning Net Position 161,232,222 158,205,586 148,792,558 Ending Net Position $163,107,620 161,232,222 $158,205,586 Popular Annual Financial Report8 The General Fund accounts for revenues and expenditures to carry out basic governmental functions such as police and fire protection, recreation, infrastructure improvements and administrative services. Property taxes are the City’s largest revenue source, comprising 40% of all General Fund revenues. The tax levy is determined by market value, assessment ratio and millage rate. The property tax revenue estimate for 2021 was $44.4 million; the taxes collected in 2021 totaled $45.8 million or 3% above the prior year collections of $44.9 million. Market value is determined by the Greenville County Assessor’s Office factoring in size, condition, location and sale price of comparable properties. Assessment ratio is the appraised market value multiplied by 4% for owner-occupied residences, 6% for commercial properties and motor vehicles, 10% for personal property and 10.5% for industrial and utilities. Licenses and permits represent the second-largest revenue source for the City. Business licenses are among the most significant and the most economically sensitive revenues. The City received $45.3 million, an 8.8% increase from the prior year due to an increase in insurance business license collections. GENERAL FUND How Was the General Fund Money Spent?Where Did the General Fund Money Come From? Popular Annual Financial Report 9 An enterprise fund is operated like a private business, where a fee is charged for goods or services. Annual budgets are established for enterprise funds. The Greenville Convention Center is one of the largest conference centers in the Southeast. The facility includes 280,000 square feet of exhibit space and 60,000 square feet of meeting space. Attendance decreased 50% from the previous year and operating revenues fell $2.8 million due to continuing COVID-19 safety protocols. Wastewater operations, including the maintenance of 355 miles of wastewater lines, are financed by a wastewater charge that is based on meter size. Expenses included $2.3 million for sewer basin rehabilitation projects. The Stormwater Management program controls the flow of surface water through basin master planning, remedial repairs and maintenance of open ditches and piped drainage in City rights-of-way and easements. The 2021 budget included $1.3 million for stream restoration projects. The Parking fund accounts for the operation of the City’s parking system, which includes 12 parking garages, totaling 7,636 spaces, and four parking lots comprising another 405 spaces. The fund purchased another parking lot in the West End section of Main Street and paid $1 million for garage rehabilitation needs in 2021. The 14-acre Greenville Zoo is home to more than 275 animals and welcomes more than 260,000 guests each year. The Association of Zoos and Aquariums (AZA) has accredited the zoo for more than 31 years. This fund completed a 240-square-foot facility for the Amur Leopard’s Nursery and Breeding program, totaling $500,000. ENTERPRISE FUNDS Enterprise Fund Revenues vs Expenses Popular Annual Financial Report10 Where Did the Tourism Funds Come From?How Were the Tourism Funds Spent? Hospitality Tax The City has a 2% hospitality tax on prepared meals and beverages. The proceeds help fund tourism-related activities and facilities as allowed under state law. Revenues increased 11% over the prior year, recovering better than expected from the impact of the pandemic. Hospitality tax funds are used to provide operating subsidies for the Greenville Zoo and Greenville Convention Center, offset the cost of enhanced police protection and park maintenance in the Central Business District and invest in signature sites like Falls Park and Unity Park. State Accommodations Tax Accommodations within the state are subject to a 2% tax. These monies are collected by the State and distributed to counties and municipalities. Per state law, the proceeds are distributed between the City’s General Fund, tourism advertising and promotion and other tourism-related expenditures. Revenues in 2021 totaled $1.9 million, 21% lower than 2020, reflecting the impact of continued pandemic travel protocols. Local Accommodations Tax The City has a 3% local accommodations tax. This revenue decreased 35% from the prior year due to the impact of the pandemic. The proceeds are used primarily as payment for debt incurred by the Greenville Arena District for the construction of the Bon Secours Wellness Arena, as well as defraying the costs of tourism marketing services provided by VisitGreenvilleSC. In 2021, capital projects supported by this fund included Arts in Public Places and Greenville Convention Center furniture and fixture updates. TOURISM FUNDS Other Tourism Funds The City also receives Sunday alcohol permit funds and admission taxes from tourism related sources. Popular Annual Financial Report 11 Selected Tourism Funds - Gross Revenues Selected Tourism Funds - Fund Balance Popular Annual Financial Report12 The City maintains an active debt management program to achieve long-term goals, reinvest in capital infrastructure and promote public- private partnerships. The City’s use of long-term debt and pay-as-you-go financing allows the City to have a flexible Capital Improvement Program while protecting its long-term financial position. Debt Issuance The City issued Stormwater Revenue Bonds of $3.1 million in support of the Unity Park project, Hospitality Tax Revenue Bonds of $3.2 million to refund the Series 2011 Hospitality Tax Revenue Bonds and a $1.1 million capital lease for a fire apparatus. The Stormwater bonds were issued for a 15-year term at an interest rate of 1.61%, the Hospitality Tax bonds were issued for a 10-year term at an interest rate of 1.23% and the capital lease was issued for a five-year term at an interest rate of .85%. Planned debt issuance for 2022 includes a $32 million Neighborhood Infrastructure Bond for road improvements, sidewalk construction, parks and recreation center improvements and transportation management projects, and a $1.5 million Wastewater Revenue Bond. Total Debt Service By Year Outstanding Debt By TypeDEBTREPORTING *The Installment Purchase debt relates to the City of Greenville Public Facilities Corporation. For more information, see the City’s financial statements. 43.5% 26.6% 11.7% 5.7% 3.4% 0.7%3.6% 4.9% Popular Annual Financial Report 13 Coolest New Weekend City “Greenville lures in visitors with an absolutely astonishing downtown, anchored by a 60-foot waterfall and expansive green space.” The Breakout Cities on the Forefront of America’s Economic Recovery “Rising stars such as Greenville, S.C., built out vibrant economies even before the pandemic; now, they are drawing new workers and businesses.” Best Place to Travel in May “Voted one of the best cities in the U.S. in this year’s Readers’ Choice Awards, Greenville is a great under-the- radar South Carolina option.” The South’s Best Cities on the Rise 2021 “The walkable downtown, Instagrammable Main Street, and chef-driven culinary scene are easy draws.” Popular Annual Financial Report14 2021 Project Highlights GVL2040 City Council Priorities: Quality Growth, Affordable Housing Project Cost: $696,402 Adopted by City Council in February 2021, GVL2040 is a comprehensive plan that lays out a vision for balanced growth over the next two decades. Top priorities identified by residents include preserving 35% of Greenville’s remaining vacant land as open space; providing access to high-quality affordable housing by making 10% of new housing income restricted; and investing in public transit, bike lanes, trails and other safe mobility options to reduce car dependence. #PlantGVL City Council Priority: Environmental Sustainability Project Cost: Ongoing, $27,308 When a study by the Green Infrastructure Center found that only 36% of the City of Greenville is currently under a tree canopy, the City responded with a goal to plant 1,000 trees annually in parks, public spaces and street rights-of-way. As part of the effort, the City has also given away more than 1,000 trees to residents and is encouraging them to plant the trees on private property. Popular Annual Financial Report 15 Solar Panel Installation at theDavid Hellams Community Center City Council Priorities: Environmental Sustainability, Public Facilities Project Cost: $100,196 The City installed nearly 100 solar panels on the community center’s roof. A $10,000 South Carolina Energy Office grant supported the project. It is expected to reduce electricity costs by $4,000 in the first year. The project included clean energy education for summer camp children and residents in the nearby special emphasis neighborhood. Firefighter Training Camp City Council Priority: Public Safety Project Cost: $12,500 The Fire Department hosted a free seven-week training camp for high school juniors, seniors and 2021 graduates interested in becoming firefighters.  Those who completed the training achieved National Fire Protection Association certification and were eligible for hire. City Council Priority: Public Facilities Project Cost: $562,510 This popular center in the heart of the North Main community sustained significant damage in 2018 when a tree fell on it. The center reopened in June 2021 following an extensive restoration project, which included repairs to the building, construction of a new ADA-compliant parking lot and much-needed updates to the center’s furniture, fixtures and equipment. Bobby Pearse Community Center Popular Annual Financial Report16 Unity Park Construction & Reedy River Restoration City Council Priorities: Environmental Sustainability, Recreation & Events Project Cost: Ongoing, $56 Million+ The City broke ground on Unity Park in July 2020. Major construction components of the 60-acre park were completed, including the restoration of a half-mile section of the Reedy River and adjacent wetlands, Michelin Green, an expansive nine-acre green space, and the extension of the Swamp Rabbit Trail multi-use path. The park is projected to open in the Spring of 2022. Amur Leopard’s Exhibit & Nursery City Council Priorities: Recreation & Events, Public Facilities Project Cost: $507,005 This new 240-square-foot facility includes three rooms and a viewing window, which allows zoo visitors to observe newborn cubs as they grow. The zoo has had two sets of cubs since introducing the Amur leopards in 2017. Amur leopards are a critically endangered species, with an estimated wild population of around 100. Popular Annual Financial Report 17 Sound Check City Council Priority: Recreation & Events Project Cost: $20,200 After streaming this concert series virtually for one month in the spring of 2020, it returned in 2021 as a live outdoor concert series on Wednesday nights from April through September. Patrons could reserve a private viewing area for $10 or watch from the lawn at no charge on a first- come, first-served basis. New GTA Facility City Council Priority: Recreation & Events Project Cost: Ongoing Autumn, the Greenville Zoo’s female Masai giraffe, gave birth to a female calf named Providence on February 21, 2021. Like most animals at the Greenville Zoo, the giraffes are part of the Species Survival Program, which monitors captive populations and makes breeding recommendations to ensure long-term viable populations without removing animals from the wild. Species Survival City Council Priority: Public Transit Project Cost: Ongoing, $576,532 The City contributed $576,532 to the Greenville Transit Authority as part of the local match for the construction of a new maintenance facility. Greenville County donated approximately 26 acres of land valued at $1.2 million for the site. Federal grants, proceeds from land sales and other local partners will combine for a final project cost of $41 million. The new facility will allow Greenlink to expand its fleet and improve its maintenance efficiencies to meet the ever-growing demand for transit service enhancements. Popular Annual Financial Report18 City Council Priority: Recreation & Events Project Cost: Ongoing, $45,390+ In April, Greenville became the first city on the East Coast to host Wings of the City, a traveling exhibit of nine monumental sculptures created by Jorge Marín. Installed in Falls Park and on the Peace Center campus, the sculptures drew thousands of visitors through October 2021. Wings of the City East Parkins Mill Road Sidewalks City Council Priority: Transportation Infrastructure Project Cost: $680,890 As part of the City’s Neighborhood Sidewalk Targeted Expansion Program (NSTEP), approximately 2,500 feet of new sidewalk, curb and gutter, curb lawn and storm drainage improvements occurred along East Parkins Mill. Popular Annual Financial Report 19 AED Units in Police Cars City Council Priority: Public Safety Project Cost: $190,000 Every patrol car in the Police Department’s fleet is now equipped with an Automated External Defibrillator (AED). When every second counts, this life-saving equipment enables officers, who are often the first on the scene, to immediately render aid. In addition to the 114 vehicles, there are also 13 AEDs in buildings and training facilities frequently used by officers. City Council Priorities: Economic Development, Customer Focus Project Cost: $250,000 The City offered 250 one-time, $1,000 grants to small, local business owners to help them recover from the economic impact of COVID-19. Eligible businesses included restaurants, bars, hotels, retail stores and personal services with a physical storefront in the city limits with two to 49 employees. Small Business Boost Fund Popular Annual Financial Report20