HomeMy WebLinkAboutCity of Grosse Pointe Woods - Public Financial Report
CITY OF GROSSE POINTE WOODS, MICHIGAN
POPULAR ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2021
9-11 Remembrance
Observance
Grosse Pointe Woods Robert E. Novitke Municipal Complex
l Complex
Cook School House
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The City of Grosse Pointe Woods
Originally incorporated in 1927, Grosse Pointe Woods was known as the Village of Lochmoor. In 1939,
the Village of Lochmoor became the Village of Grosse Pointe Woods and on December 11, 1950 it was
incorporated as the City of Grosse Pointe Woods, a Home Rule City. The city covers an area of 3.28
square miles. The City is located approximately 10 miles northeast of downtown Detroit and is over 97
percent residential.
Grosse Pointe Woods operates under a Council-Manager form of government, established by the City
Charter and adopted by voters in 1950. This efficient format divides government into policy-making and
administrative functions, and has an organizational structure similar to a business.
City of Grosse Pointe Woods
Organizational Chart
VOTERS
MUNICIPAL JUDGE
MAYOR AND COUNCIL
CITY ADMINISTRATOR
BUILDING INSPECTIONS AND
CODE ENFORECEMENT
INFORMATION TECHNOLOCY
IN
COURT CLERK
PUBLIC SAFETY
PUBLIC SERVICES
COMMUNITY CENTER
PARKS AND RECREATION/POOL
PUBLIC WORKS
CITY ATTORNEY
CITY ENGINEER
CITY CLERK
CITY TREASURER
COMPTROLLER
CITY ASSESSOR
ADVISORY BOARDS AND
COMMISSIONS
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The residents of the city are the highest government authority. They delegate this authority to
representatives they elect every four years. Similar to a board of directors of a corporation, the City
Council, composed of the mayor and six council members, is responsible for determining policies and
adopting ordinances needed to maintain the health, safety, and welfare of the citizens.
Input provided by various advisory boards and commissions is a valuable resource. Citizens show
interest in the community not only by voting, but also by taking an active part in the policy-making
process. More than 100 volunteers dedicate their time and talents to the City’s boards, commissions,
and committees that foster and support a true “sense of community.”
City of Grosse Pointe Woods-Community Events
Lake Front Park Marina
Residents enjoying
Miniature Golf at Lake
Front Park
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Annual Public Safety
Open House
Winterfest Activities
Public Safety Open House
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Lake Front Park Marina
Lake Front Park Pool
Perch Derby at Lake
Front Park
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Annual Woods Aglow-
Visit with Santa Claus
Senior Ice Cream Social
Music on the Lawn
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Demographics
City of Grosse Pointe Woods
Numbers at a Glance
Area: 3.3 Square Miles
Population: 15,332
Median Household Income: $104,848
Median Age: 45
Median Home Value: $244,500
Equalized Assessed Value: 2020
746,000,000
Total Housing Units: 6,874
Total Full-Time Employees: 81
Sources: 2010 US Census Bureau, 2021 ACFR
Grosse
Pointe
Woods is
located 10
miles NE
of Detroit
Taxpayer Type Taxable Value
DRSN Real Estate GP LLC Apartment Complex 14,081,355
Michigan Cons. Gas Co.Utility 12,465,300
Health Care Reit Inc Assisted Living 6,914,790
Pointe Plaza Office Building 5,200,220
Detroit Edison Utility 4,427,300
Briarcliff 2014 Private Club 1,931,200
VDG Mack Ave LLC Office Building 1,811,105
Lochmoor Club Private Club 1,625,515
Comerica Bank 1,403,858
A H Peters Funeral Home Mortuary 1,359,100
Kroger Co. of Michigan Grocery 1,296,339
St John Health System Hospital 1,271,687
53,787,769
City of Grosse Pointe Woods
Major Taxpayers
Taxpayer Type
2010
Employees
GP Public School School 384
Van Elslander Center Medical 250
Kroger Grocery 159
Sunrise Assisted Living Medical 130
University of Liggett School 128
Great Lakes Cancer Mgt Specialist Medical 103
Lochmoor Club Country Club 100
St. John I.T. & Desktop Support Medical Business 100
City of Grosse Pointe Woods Municipal 81
Gateway Pediatric Therapy Medical 50
Total People Employed in City 3,514
City of Grosse Pointe Woods
Principal Employers
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Fiscal Policies and Major Initiatives
The City’s long-term financial stability is the result of a strong and continuous commitment to
fundamental principles of fiscal integrity. As a result, the City’s overall bond rating is “AA+” from
Standard & Poor’s. This outstanding bond rating allows the City to borrow at the lowest possible interest
rate, saving taxpayers thousands of dollars in future costs. The City’s current administration, Mayor and
City Council continue to look for cost containment initiatives, expanding community partnerships and
alternative funding sources to maintain the high level of public services provided by our community.
The City continues its commitment to the local street repair and maintenance program that
began in 2015. The reconstruction of Oxford Road (Mack to Holiday) and asphalt patching of
Lochmoor (Fairway to Morningside) were included in the road program for fiscal year 2020-2021.
Project costs totaling $729,000 were funded through a transfer from General Fund balance.
The City continues to maintain and improve water and sewer infrastructure. Capital outlay
totaling $3.4 million that includes construction and engineering oversight came from water and
sewer reserves to fund the following projects in fiscal year 2020-2021:
o Replacement of water mains on Hollywood (Goethe to Marter), Severn (Mack to
Hollywood and Christine Court).
o Sewer rehabilitation that includes open cut repair and cured in place pipe lining repair
and maintenance.
Maintaining Lake Front Park also continues to be a priority for the City, the vehicular bridge was
replaced during fiscal year 2020-2021. Capital outlay totaling $799,000 that includes
construction and engineering oversight was funded from General Fund balance.
Replacing the City’s aging vehicles and equipment have also been a priority for the City. During
fiscal year 2020-2021, the City invested over $1.6 million in capital outlay that includes three (3)
new vehicles and an E-One Fire Apparatus in the Department of Public Safety, four (4) new trucks
in the Department of Public Works and one (1) new vehicle for Administration.
The City’s general fund balance continues to maintain a sound financial state at fiscal year 2020-
2021. Prior year reserves totaling just over $1.0 million were used to fund capital projects and
purchase of vehicles and equipment. Total Unassigned General Fund balance at fiscal year 2020-
2021 is just over $5.1 million.
The City remains vigilant with property maintenance enforcement to ensure properties are
maintained. Maintaining property values and minimizing the decline through an effective
property maintenance and rental inspection program is an important component to our overall
financial plan and maintaining the quality of life within our community.
The global COVID-19 pandemic continued to have an operating impact during fiscal year June 30,
2021. The City continues to adhere to COVID-19 safety guidelines; providing personal protective
equipment, maintaining social barriers and continuing remote work when necessary.
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Community events that include; Music on the Lawn, Fall Fest, Annual Flower Sale and the Annual
City Picnic were brought back in fiscal year 2021, keeping the safety of our residents the number
one priority.
General Fund Revenue
The following chart shows the dollar amounts collected for each of the City of Grosse Pointe Woods
sources of revenue. The table includes revenue for fiscal year 2021, 2020 and 2019 and displays the
change from fiscal year 2020 to 2021. There were slight fluctuations in the various revenue categories,
resulting in an increase in General Fund revenue of $73,734.
Property taxes continue to be the City’s largest source of revenue; slow but steady increases have been
realized for the last three fiscal years. After the 2007 housing market decline, the City has had
incremental increases with a CPI of 1.4 percent for fiscal year 2020-2021. Although the millage rate is
essentially at the Headlee cap, the general operating property tax revenue increased $182,828 from
fiscal year 2019-2020.
Revenue sharing from the State of Michigan remains our second largest revenue source. The City
continues to meet all requirements of accountability and transparency with the State and received 100
percent of state-shared revenue allocation in 2020-2021. During fiscal year 2020-2021, revenue from
State and Local sources increased $267,775 from fiscal year 2019-2020.
Federal Grant revenue received was $495,545, this is the result of COVID-19 grant revenue received
related to Public Safety and Public Health Payroll reimbursement, First Responder hazard pay premium,
Michigan Coronavirus Relief Fund and COVID-19 Election reimbursement.
Revenue
2021 2020 2019
Change from
2020 to 2021
Property Taxes 10,424,701$ 10,241,873$ 10,008,480$ 182,828$
Franchise Fees 341,918 369,566 336,174 (27,648)
Federal Grants 495,545 - - 495,545
State and Local Sources 2,361,584 2,093,809 2,261,179 267,775
Charges for Service 622,309 600,775 662,376 21,534
Fines and Forfeitures 232,067 253,797 305,384 (21,730)
Interest Income 16,425 195,494 285,176 (179,069)
Other Revenue 262,415 927,916 511,294 (665,501)
Total Revenue 14,756,964$ 14,683,230$ 14,370,063$ 73,734$
*Other Revenue Includes Other Financing Sources-Insurance Recoveries
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Revenue from District Court fees and fines decreased by $21,730 from fiscal year 2019-2020. This is a
result of a decrease in the number of violations being issued.
Interest Income decreased $179,069 from fiscal year 2019-2020. This is a result of a decrease in interest
rates from investments and our pooled cash interest bearing account.
Other Revenue decreased by $665,501 from fiscal year 2019-2020. This is a result of a decrease in
insurance proceeds from water damages to the municipal offices.
General Fund Expenditures
The General Fund is the City’s primary operating fund and supports the majority of the City’s
governmental services. The two largest services funded by General Fund are public safety (combined
police and fire services) and public works which account for $10 million in expenditures. In addition, the
other major activities included in General Fund are parks and recreation and all general government
administrative and service operations. Some of these activities are supported by fees for services that
help offset costs, but the majority of these activities rely on property taxes and state shared revenue to
fund their operations.
The following chart shows expenditures for each governmental service for the City of Grosse Pointe
Woods. The table includes expenditures for fiscal year 2021, 2020 and 2019 and displays the change in
expenditures from fiscal year 2020 to 2021.
General Government, Public Safety and Parks and Recreation experienced an increase in expenses of
$1.025 million. The majority of this is the result of an overall increase in personnel costs, retiree pension
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and healthcare costs. In addition, body cameras costing approximately $180,000 were purchased for our
Public Safety Officers. The Department of Public Works saw an overall decrease in expenses of $1.1
million, this is due to a decrease in road infrastructure projects in fiscal year 2020-2021. Overall there
was a decrease in General Fund expenditures of $72,337.
General Fund-Fund Balance
The last decade has been challenging, but through cost cutting initiatives and better efficiencies the City
has built a strong cash reserve during fiscal years 2017-2021. The City’s total General Fund year-end fund
balance is approximately $7.3 million. This includes the Local Road fund balance of $1.273 million and
Cable fund balance of $550,130. This is a decrease of $563,428 from fiscal year 2019-2020. The
decrease in fund balance is the result of utilizing fund balance to support local road maintenance and
construction projects.
Expenditures
2021 2020 2019
Change from
2020 to 2021
General Government 2,814,151$ 2,537,974$ 2,877,606$ 276,177$
Public Safety 6,232,522 5,502,349 5,620,888 730,173$
Public Works 3,767,516 4,864,890 4,542,048 (1,097,374)$
Parks and Recreation 1,516,796 1,498,109 1,739,511 18,687$
Total Expenditures 14,330,985$ 14,403,322$ 14,780,053$ (72,337)$
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As the chart below indicates, the 2021 General fund balance is comprised of the following; $2.2 million
is committed, assigned and unspendable, leaving $5.1 million unassigned. The unassigned amount
represents approximately 36 percent of fiscal year 2020-2021 actual expenditures. This level of fund
balance exceeds the recommended level of between 10 percent and 15 percent of annual expenditures.
Taxable Value
The City’s most pressing financial concern is the condition of the residential housing market. The City
has struggled over the last decade as a result of a low inflation rate multiplier used to calculate taxable
value on all properties. In tax year 2021, the inflation rate factor was 1.4 percent and the City
experienced a 3.2 percent increase in taxable value. The steady increase in taxable value indicates
positive things are happening in the housing market in the City.
Non-Spendable: Funds that are not in
spendable form or are legally required to be
maintained intact (Prepaids)
Restricted: Reservations of fund balance for
amounts that are not available for
appropriation or are legally restricted by
outside parties (Special Revenue Funds)
Committed: Funds that have been formally
set aside by Council to be used for a specific
purpose (Local Streets)
Assigned: Intent to spend resources on
specific purposes expressed by Council (Cable
Fund)
Unassigned: Funds that do not fall into any
other category
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City of Grosse Pointe Woods Property Tax Revenue
As indicated on the dollar bill below, the City of Grosse Pointe Woods only receives 25 cents for every
dollar of property tax revenue collected. These taxes are used to support the general government
administrative services, public safety, public works, recreation, and the voter approved road bond.
.23
Grosse Pointe
Woods
General
Operating
General
Operating
.40
Grosse Pointe
School District
S
School District
.13
Wayne
County
.06
Milk
River
Drain
.03
Grosse
Pointe
Library
.08
WC ISD
.05
WC
Community
College
.02
Grosse Pointe
Woods
Voted Road
Bond
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The remaining 75 cents for every dollar of property tax revenue collected is allocated to Grosse Pointe
School District, Wayne County, Grosse Gratiot (Milk River) Drain, Wayne County Intermediate School
District, Wayne County Community College and the Grosse Pointe Library.
General Fund-Revenue/Expenditure History
General Fund revenue experienced slight fluctuations over the last five years due to the following:
Fiscal year end 2018, the City received payment from Wayne County for delinquent property tax
revenue that was previously deducted.
There was a slight increase in overall general fund revenue from fiscal year 2019 to 2021; this is
the result of an increase in insurance proceeds from water damages at the municipal offices in
2020 and an increase in federal grant funds received in 2021 that were related to COVID-19.
Overall there was an increase in General Fund Revenue of 12.4% from 2017 through 2021.
General Fund expenditures experienced fluctuations over the last five years. Fiscal years ending 2017-
2021, expenditures increased approximately 19%. The increase is the result of easing up on budget
restrictions and filling of vacant positions. In addition, the City continued implementing capital
improvement projects related to road reconstruction/maintenance and replacement of vehicles and
equipment.
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Enterprise Funds
An Enterprise Fund is a fund that accounts for operations and services that are provided to residents and
are financed through user charges. The major business type activities consist of the water and sewer
fund and the parking fund. The non-major enterprise funds are the boat dock fund, and commodity sales
fund.
Fiscal year 2020-2021 operating revenue decreased $470,972 from fiscal year 2019-2020. Water and
Sewer revenue experienced a slight increase in user fees and docking/launching fees in the Boat Dock
fund were also up slightly from fiscal year 2019-2020. The decrease in operating revenue is related to a
reclassification of Pension and OPEB in fiscal year 2020-2021. Operating expenses increased by 146,365
from fiscal year 2019-2020, this is the result of an increase in general and administrative costs that are
related to personnel costs.
The Water & Sewer Fund has a “AA” bond rating from Standard & Poor’s This allows the City to borrow
funds at the lowest possible interest rate to fund infrastructure projects. Water and Sewer rates were
increased in the current year to cover increased costs to purchase water and to fund required
infrastructure improvements.
$12,012,248
$12,659,357
$14,780,053
$14,403,322 $14,330,985
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
$16,000,000
2017 2018 2019 2020 2021
Total General Fund Expenditures
FY 2017-2021
(excluding transfers out)
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The City’s business type activities have experienced a steady increase in net position from 2017-2021.
The increase is primarily the result of water and sewer rate revenue that covers operation and
maintenance expenses and infrastructure improvements financed by the issuance of debt.
Statement of Revenue, Expenses, and Changes in Net Position
Fiscal Year 2021 compared to Fiscal Year 2020
Total Enterprise Total Enterprise
Funds FY 2021 Funds FY 2020 Change
Total Operating Revenue 8,369,868 8,840,840 (470,972)$
Total Operating Expenses 6,940,292 6,793,927 146,365$
Operating Income 1,429,576 2,046,913 (617,337)$
Total nonoperating revenue (expenses)(135,897) 93,792 (229,689)$
Change in Net Position 1,293,679 2,140,705 (847,026)$
Net Position-Beginning of year, as restated 31,313,629 29,172,924 2,140,705$
Net Position-End of year 32,607,308$ 31,313,629$ 122,046$
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The Government Finance Officers Association (GFOA) of the United States and Canada has awarded the City of
Grosse Pointe Woods the Popular Annual Financial Award (PAFR) for fiscal year end June 30, 2020. This is the
eighth (8) consecutive year the PAFR has been awarded to the City.
Please visit the City of Grosse Pointe Woods website at www.gpwmi.us Finance Department/Budget &
Reports for financial documents that include the ACFR, PAFR, Budgets, Other Postemployment Benefits
(OPEB) and Pension Actuarial Reports. If further information is needed, contact the Finance
Department at 313-343-2604.
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City of Grosse Pointe Woods
20025 Mack Plaza Drive
Grosse Pointe Woods, MI 48326
Hours: Monday-Friday 8:30am – 5:00pm
City Hall: 313-343-2440
http://www.gpwmi.us