Loading...
HomeMy WebLinkAboutCity of Mauldin - Public Financial Report2 Table of Contents ADMINISTRATOR’S MESSAGE 4 CITY COUNCIL 5 CITY OF MAULDIN 6 CITY OF MAULDIN -FACTS 7 FY2021 FINANCIAL RESULTS 8 GOVERNMENTAL ACTIVITY REVENUE SOURCES 10 GOVERNMENTAL ACTIVITY EXPENDITURES 11 ENTERPRISE REVENUE & EXPENDITURES 12 CAPITAL IMPROVEMENTS 13 CITY DEBT 14 LONG TERM DEBT 15 GENERAL FUND BALANCE 15 City of Mauldin cityofmauldinsc City of Mauldin SC Government cityofmauldinsc cityofmauldin.org Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to City of Mauldin South Carolina For its Annual Financial Report for the Fiscal Year Ended June 30, 2020 Executive Director/CEO 3 The City of Mauldin’s budget cycle begins on July 1 and ends on June 30. The 2021 Popular Annual Financial Report (PAFR) provides an overview of the financial results from the City’s Annual Audit. The information included within is intended to increase the community’s awareness of the City’s financial operations and status. The financial information is obtained from the audited financial statements in the City’s 2021 Comprehensive Annual Financial Report (CAFR). The PAFR does not contain the same level of detail, but instead is a document meant to present a concise, clear picture of the City’s financial standing. This report highlights the overall financial condition and trends of the City. The 2021 CAFR was audited by Greene, Finney LLP and delivered an unmodified or “clean” audit opinion. The CAFR is available on the City website, www.cityofmauldin.org at the following link https:// cityofmauldin.org/wp-content/uploads/2021/11/FY21-City-of-Mauldin-CAFR.pdf. OVERVIEW 4 ADMINISTRATOR’S MESSAGE In the City of Mauldin’s ongoing effort to inform the public of the state of the City’s finances, I am pleased to present to you the City of Mauldin’s Popular Annual Financial Report (PAFR) for the year ended June 30, 2021. The PAFR provides a high-level overview of the City’s financial condition, analyzing where revenues come from and the manner in which tax dollars are spent. The report is reflective of the City’s commitment to preserving its long-term financial health while ensuring the provision of quality public services. The PAFR is prepared by the City’s Administration and Finance Departments, using financial information taken from the 2021 Comprehensive Annual Financial Report (CAFR). The CAFR includes full financial statements and note disclosures for all City funds and component units, prepared in accordance with Generally Accepted Accounting Principles (GAAP). The CAFR was audited by Greene Finney, LLP, and received an unmodified opinion. The PAFR condenses and simplifies information found in the CAFR and is not intended to replace the CAFR. If you would like more detailed financial reporting and operational information including important Notes to the Financial Statements, please access the CAFR at: cityofmauldin.org. Public engagement is always welcomed. If you have any questions after reviewing the information in this report, please do not hesitate to contact the me, Finance Director or a member of the City’s Finance staff. Sincerely, Brandon Madden City Administrator 5 CITY COUNCIL Terry Merritt Mayor Carol King Dale Black Taft Matney Diane Kuzniar Jason Kraeling Michael Reynolds 6 Major Employers - Top FiveMajor Employers - Top Five CITY OF MAULDIN Mauldin is in a prime Upstate location. Situated in the northwestern corner of South Carolina, Mauldin is an integral part of one of the nation’s fastest-growing areas – the I-85 Corridor. Mauldin is in close proximity to Charlotte and Atlanta because of easy access to major interstates. Mauldin’s location is ideal for business and industry. Residents of Mauldin are in an ideal location to attend many of the cultural and sporting events that take place in the Upstate and make the area a fun, active, and interesting place to live. 7 CITY OF MAULDIN -FACTS 26,409 Population 18th Largest City in the State $80,528 Median Household Income 40.2years Median Age 2.46persons Average Household Size 6% Sales Tax Rate 3.1% Unemployment Rate 2,054 City Sports Center Memberships 3,185 Police Violations Cited 1,489 Recreation Participants 5 City Parks with 78 Acres 15 Recreation Fields 31 Tons Solid Waste Collected / Day 83 Miles of Streets 68 Potholes Repaired 8 FY2021 FINANCIAL RESULTS GOVERNMENTAL ACTIVITIES Governmental Revenue sources inclduing taxes, business licenses, building permits, fines, recreational fees, and state and federal grant revenues finance most of these activities. These revenues cover various services including general government, public safety, victims’ assistance, streets and sidewalks, sanitation, and culture, recreation, and tourism. The Statement of Net Position (Balance Sheet) presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the differences between these items reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. For a government, a statement of activities is like a traditional income statement. It’s fairly straightforward and lists the revenues and expenses of the government, and in some cases, the difference between them to show the balance. It’s basically a quick reference as to the financial condition of the government. BALANCE SHEET FY 2020 FY 2021 Assets $ 41,658,738 $ 55,269,737 Deferred Outflows $ 2,842,354 $ 3,801,025 Liabilities -$ 22,559,346 -$ 31,632,127 Deferred Inflows -$ 338,426 -$ 1,194,313 Total Net Position $ 21,603,320 $ 26,244,322 INCOME STATEMENT FY 2020 FY 2021 Revenues $ 20,828,443 $ 23,239,466 Transfers $ 5,164 $ 795,448 Expenditures $ 19,168,616 $ 19,526,430 Change in Net Position $ 1,664,991 $ 4,508,484 9 FY2021 FINANCIAL RESULTS ENTERPRISE ACTIVITIES Enterprise activities rely on revenues from rent and sewer maintenance fees to fund operations and to service the debt issued to purchase the property and maintain sewer infrastructure. BALANCE SHEET FY 2020 FY 2021 Assets $ 10,250,894 $ 9,490,060 Deferred Outflows $ 78,956 $ 102,416 Liabilities - $ 3,722,256 - $ 3,554,107 Deferred Inflows - $ 4,618 - $ 21,400 Total Net Position $ 6,602,976 $ 6,602,976 INCOME STATEMENT FY 2020 FY 2021 Revenues $ 1,061,030 $ 1,101,577 Transfers $ (5,164)$ (795,448) Expenditures $ 1,219,257 $ 892,136 *GASB #84 Beginnng of year net position Change $ 6,602,976 Change in Net Position $ (163,391)$ 6,016,969 * Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, capital outlay expenditures that qualify as capital assets are allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation expense of $1,641,823 was exceeded by capital asset additions of $7,908,095 (which includes $775,447 in donated capital assets) in the current period. 10 REVENUE SOURCES GOVERNMENTAL FUNDS Governmental Funds refers to groups of funds responsible for financing the majority of the government functions. The City maintains four major governmental funds: General Fund, Hospitality and Accommodations Tax Fund, Fire Service Fund, and the Capital Projects Fund. The main revenue source of the governmental funds is Property Taxes followed by business licenses and permit fees. Revenue Sources 2019 Actual 2020 Actual 2021 Actual Property Taxes $ 9,196,531 $ 9,334,171 $ 10,205,408 Licenses and Permits $ 7,162,713 $ 7,149,378 $ 8,221,544 Intergovernmental $ 988,351 $ 1,000,507 $ 976,082 Penalties and Fines $ 213,643 $ 176,170 $ 190,313 Charges for Services $ 272,970 $ 207,651 $ 148,195 Various Fees $ 204,218 $ 156,235 $ 161,959 Grants $ 49,545 $ 352,857 $ 86,643 Hospitality & Accommodations $ 1,175,829 $ 1,102,306 $ 1,307,830 Other $ 1,090,906 $ 957,629 $ 852,986 Total $ 20,354,696 $ 20,436,904 $ 22,150,960 FY Governmental Fund Revenues % of Classification 11 Expenditures 2019 Actual 2020 Actual 2021 Actual General Government $ 2,781,583 $ 2,869,595 $ 2,750,369 Public Safety $ 8,441,778 $ 8,341,675 $ 8,748,568 Public Works $ 3,254,941 $ 3,564,168 $ 3,714,729 Culture, Reccreation & Tourism $ 2,000,443 $ 1,806,201 $ 1,762,068 Capital Outlay $ 1,318,322 $ 2,649,537 $ 7,184,552 Debt Service $ 845,682 $ 624,278 $ 1,589,825 Total $ 18,642,749 $ 19,855,454 $ 25,750,111 GOVERNMENTAL FUNDS Governmental fund expenditures include operating, capital, and debt service expenditures. The General Fund is the City’s primary operating fund, accounting for over 70% of governmental fund activity. The core services supported by the General Fund include: Police, Fire, and Public Works. These primary services account for over 60% of the governmental fund expenditures. EXPENDITURES Governmental Fund Expenditures % of Classification 12 REVENUE SOURCES & EXPENDITURES ENTERPRISE FUNDS An enterprise fund is a self-supporting government fund that sells goods and services to the public for a fee. The City maintains two enterprise funds: Sewer Fund, and Property Management Fund. The Sewer fund collects maintenance fees from approximately 7,300 customers. The Sewer funds are responsible for a substantial portion of infrastructure within the City. The infrastructure is aging and requires repair and rehabilitation. In 2014, the City issued a revenue bond to rehabilitate a large share of the aging infrastructure. The Property Management fund maintains several buildings on various City properties located within the planned City Center footprint. The rent charged on these buildings is designed to cover the main operating costs per year. Revenue Sources 2019 Actual 2020 Actual 2021 Actual Sewer Fund Charges for Services $ 951,075 $ 976,466 $ 1,005,561 Other $ 37,846 $ 18,040 $ 17,630 Property Management Fund Charges for Services $ 323,977 $ 53,856 $ 64,243 Total $ 1,312,898 $ 1,046,362 $ 1,087,434 Expenditures 2019 Actual 2020 Actual 2021 Actual Sewer Fund Personnel Services $ 431,321 $ 592,171 $ 444,948 Materials & Supplies $ 59,874 $ 48,589 $ 74,608 Utilities $ 5,741 $ 5,390 $ 3,559 Depreciation $ 97,226 $ 194,944 $ 207,667 Other $ 118,430 $ 15,914 $ 26,091 Property Management Fund Building Expenses $ 99,909 $ 8,465 $ 9,982 Depreciation $ 25,265 $ 24,976 $ 14,878 Other $ 25,608 $ 0 $ 0 Total $ 863,374 $ 890,449 $ 781,733 13 CAPITAL IMPROVEMENTS Capital Improvements are an integral part of any City: they include infrastructure, land, buildings, and equipment. These items are the basic foundation of any community as they help to improve, maintain and enhance the quality of life for the citizens. The City of Mauldin maintains a comprehensive 10-year Capital Improvement Plan (CIP) which identifies current and future fiscal requirements and is the basis for determining annual capital budget expenditures. The primary sources of funding for the CIP are sewer fee revenues, hospitality and accommodations tax revenues, general fund revenues and capital project fund revenues. FY 2021 Capital Improvements by Function 7 % General Government 16 % Culture, Recreation & Tourism 31 % Sanitation 39 % Streets & Sidewalks 8 % Public Safety 16 % Land 14 % Infrastructure 5 % Buildings & Improvements 64 % Construction In Progress FY 2021 Capital Improvements by Function 14 CITY DEBT The City of Mauldin’s credit (bond) rating continues to be rated at “AA+” & “Aa2” by both Standard and Poor’s and Moody’s. One of the reasons for the strong rating was cited as the City’s strong financial position and budgetary management. The bond rating is a good indication of the ability to pay it’s debt. The higher the bond rating, the lower the borrowing costs to the City for debt. General Obligation Bond RatingsGeneral Obligation Bond Ratings The City of Mauldin is subject to the South Carolina Constitution which provides no City or Town shall incur bonded debt exceeding 8% of the assessed value of the property within the City limits. As of June 30, 2021, according to the Greenville County assessor’s office, the City of Mauldin’s assessed value was $128,811,790. Based on this assessed value the City of Mauldin’s 8% debt limit would be $10,304,943. The City only had $4,095,000 of outstanding GO Debt at year end. Below is a summary of all the City’s outstanding debt as of the end of fiscal year 2021: 38% General Obligation Bonds $4,095,000 11% Capital Leases $1,217,209 51% Special Revenue Bonds $5,493,189 GOVERNMENTAL ACTIVITIES DEBT SUMMARY RATE D V E RY STR O N GMOODY’S AA 2 RATE D V E RY STR O N GSTANDARD & POOR’S AA + 15 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 Governmental Funds Outstanding Debt LONG TERM DEBT INFORMATION The City issues Debt to help fund the construction of major capital facilities and other capital improvement projects. The City utilizes a blended approach to it’s capital investing: debt and cash outlay. Using debt financing to fund the major capital projects allows the cost to be spread out over time to all residents who are benefitting from the project. The graph illustrates the overall outstanding debt including: GO bonds, Hospitality and Accommodations revenue bonds, Installmen purchse revenue bonds, and capital leases. A fund balance that is both positive and available is an important component in maintaining the city’s strong fiscal condition. It serves to support the city’s strong bond ratings and provides sufficient funds for cash flow purposes. This fund availabilty eliminates the need for short-term borrowing between the start of the fiscal year and the receipt of revenue from taxes. Mauldin’s general fund uassigned balance has increased over time, indicating a healthy fiscal trend. The General Fund unassigned balance 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Fund Unassigned Fund Balance for FY21 was $7,418,372. An unassigned fund balance allows the City to meet it’s current and future needs. Higher collections than projected in general property tax revenues, and lower than forecasted expenses contributed to the ending fund balance. In addition to the General Fund, the City has 9 special revenue funds reported in the CAFR as Non-Major Governmental Funds. A Special Revenue Fund is a fund established to collect revenue for a specific project or purpose and provides an extra level of accountability and transparency to taxpayers and others that the funds are being used for their intended purpose. Please refer to the CAFR for detail on these Special Revenue Funds GENERAL FUND BALANCE The City issued several bonds in FY21. One was a $2.8 million GO Bond to fund an enhanced road repaving program. Also, a $2.841 million dollar Hospitality and Accommodation revenue bond was issued in conjuction with a $2.489 million dollar Installment purchase revenue bond to build a pedes- trian bridge over I-385 connecting the Swamp Rabbit Trail to a new multi-use development.