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HomeMy WebLinkAboutPleasant Grove City - Public Financial Report20212021 PAFRPAFR for the fiscal year ended June 30, 2021for the fiscal year ended June 30, 2021 City of Pleasant GroveCity of Pleasant Grove POPULAR ANNUAL FINANCIAL REPORTPOPULAR ANNUAL FINANCIAL REPORT City of Pleasant GroveCity of Pleasant Grove 2 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove Table of ConTenTs To the Citizens of Pleasant Grove ........................................................................1 Pleasant Grove at a Glance ...................................................................................2 City Leaders ............................................................................................................3 Key Services of Pleasant Grove ............................................................................4 Significant Community Projects ...........................................................................5 Statement of Net Position.....................................................................................6 Statement of Activities ..........................................................................................7 General Fund—Revenues .....................................................................................8 General Fund—Expenditures ...............................................................................9 General Fund—Fund Balance.............................................................................10 Property Tax Summary .......................................................................................11 Enterprise Funds Summary ................................................................................12 Debt Summary .....................................................................................................13 Recognition ...........................................................................................................14 1Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove To the Citizens of Pleasant Grove: We are proud to present the City of Pleasant Grove’s Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. This report gives readers a summary of the City’s financial standing. The purpose of the PAFR is to illustrate the City’s financial information in a clear, concise manner giving all readers, both financial and non-financial, the understanding of where the revenue comes from and where dollars are being spent. Most importantly, it is essential that our citizens understand the key services that the City provides to make Pleasant Grove a safer and more enjoyable place in which to work, live, and play. The PAFR summarizes the financial activities of the City and is drawn from a more detailed report called the Annual Comprehensive Financial Report (ACFR). The Report includes financial statements that were prepared in conformance with Generally Accepted Accounting Principles (GAAP) and audited by HBME, an independent auditing firm. The 2021 Report has received an unmodified (clean) opinion. The numbers contained within the ACFR were acquired by applying the basis of accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). Although the numbers used in the PAFR come from an audited source, we have presented them in a condensed, easy to understand, non-GAAP format. GAAP reports deal with the presentation of segregated funds as well as full disclosure of all material financial and non-financial events in notes to the financial statements, while non-GAAP reports do not contain such notes. Citizens who wish to review audited GAAP basis financial statements can refer to the City of Pleasant Grove’s Report, which is available from the Finance Department or on the City of Pleasant Grove’s website at plgrove.org. As a municipality, we want to continue awareness, accountability, and transparency of the City’s financial information. We anticipate that after reading the PAFR, community members will be reassured that public dollars are being used to build a better, safer, and stronger Pleasant Grove. We are honored to serve the citizens of Pleasant Grove and hope you enjoy reviewing the 2021 PAFR. We welcome any input, questions, and comments you may have regarding this report. You may contact the Finance Division at 801-922-4506. Sincerely, J. Scott Darrington City Administrator Denise B. Roy Finance Director PleasanT Grove aT-a-GlanCe POPULATION GROWTHGOVERNMENT Pleasant Grove City operates under the six member council form of government. Powers under this form of government are vested in a council con- sisting of six members, one of which is the mayor. TOP EMPLOYERS doTERRA International, LLC Alpine School District Horrocks Engineers, INC. PF Staffing Services, LLC All Pro Security, LLC Altabank ARO ASEA, LLC Dental Intel, LLC Disruptive Advertising Lincoln Academy Macey’s Niels Fugal Sons Company Smith’s Food and Drug Stratton & Bratt Landscape, LLC TestOut Utah Recreation Company 38,380 1855 9.17 POPULATION INCORPORATED SQ.MILES 2010 2000 1990 1980 1970 1960 1950 1940 1930 1920 1910 1900 1890 1880 1870 1860 Source: United States Census 202038,380 3,195 13,476 2,460 526 2 CiTy leaders Guy Fugal Dianna Anderson Brent Bullock Eric Jensen Cyd LeMone Todd Williams MAYOR EXECUTIVE STAFF CITY COUNCIL City Administrator Scott Darrington Assistant to the City Administrator Kyler Ludwig City Attorney Tina Petersen City Recorder Kathy Kresser Finance Director Denise Roy Community Development Director Daniel Cardenas Fire Chief Andrew Engemann Library and Arts Director Sheri Britsch Parks Director Deon Giles Police Chief Mike Roberts Public Works Director Marty Beaumont Recreation Director Tyler Wilkins 3Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove 4 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove Community Development Building and property improvement needs are coordinated with the objectives and require-ments of planning, zoning, and engineering. From the review of concept plans to the issuance of occupancy certificates, the objective of the Community Development Department is to pro-vide direction and assistance in achieving quality growth and improvement of the community. Fire The Pleasant Grove Fire Department provides fire and emergency paramedic services to the citizenry. A highly trained staff of full time and part time fire fighter paramedics responds to calls 24 hours a day from a single centrally locat- ed fire station. Library & Arts The Library and Arts Department is comprised of many boards and commissions. This depart- ment provides opportunities for the citizens to participate in local plays for adults and children, sing with a children’s choir, play with a concert orchestra, enjoy listening to Concerts in the Park, tour and learn about the rich history of Pleasant Grove, take advantage of a vibrant library and its many children and adult programs, and cele- brate Strawberry Days and other city events. Key serviCes of PleasanT Grove Parks & Recreation The Parks & Recreation Department, including Aquatics, Beautification and Shade Tree Com-mission, Cemetery, Custodial Services, Facilities, Parks, Recreation, Seniors, Community Service Projects and Trails, provides various services, programs and outdoor areas that educate, inform, enrich, entertain, beautify and move the citizens of Pleasant Grove. The Recreation Cen-ter is a 77,000 square foot facility that is home to a wide variety of wholesome interactive recre-ational programs, classes and activities. Police The Police Department has the responsibili- ty of enforcing all state and local laws, and is charged with providing emergency response to the citizens of Pleasant Grove. Police officers are available 24 hours a day, seven days a week, through Utah Valley Dispatch, and respond to calls for service, crime prevention, criminal activity investigation, suspect apprehen- sion, traffic collision investigation, City Code violation enforcement, and animal services provision. Additionally, the department pro- vides a number of services which consist of crime prevention/ awareness programs, Honorary Colonels, NOVA, school resource officers, K9, SWAT, Major Crimes Task Force, Sex Crimes Task Force, Joint Criminal Apprehen- sion Team, Child Abduction Response Team, and Internet Crimes Against Children. Public Works Public Works installs, operates, maintains, and is responsible for the safety of the city infrastruc- ture—streets, storm drain, sewer, culinary and secondary water. Public Works is divided into three main divisions consisting of Streets, Sewer & Water, and Storm Drain. Shannon Ball Fields 5Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove Capital Projects The City’s staff, following specific directives of the City Council and Mayor, have been involved in a variety of projects throughout the year. These projects reflect the City’s commitment to ensuring that the citizens of Pleasant Grove are able to live and work in a desirable environment. During the fiscal year of 2020–2021, the City had several significant projects. Some of these projects are listed below. Parks, Recreation Facilities, and Trail Upgrades The City made improvements or upgrades to the following: Completion of the Veterans Memorial Pickleball Project, Valley Vista Trail Phase 3 engineering and construction contract awarded, Cemetery Expansion completion, reconstruction of Discovery Park Tennis Courts, Discovery Park restrooms rebuilds, Community Center restroom addition, pool improvements, Chrisville Playground Replacement, upgrades to water fixtures, and security in all city parks and facilities. Public Works The Public Works Department completed a number of projects during the FY2021 fiscal year: 1000 South 1150-1280 East Storm Drain, 1100 North 300-600 East Storm Drain, 100 E 200 & 500 North Storm Drain Crossings, Battlecreek Spring Replacement, 1100 North 100 -1000 East Water Line, 150 North 1300 East Water Line, Anderson Well Improvements, 1100 North Water Line Project, PRV Replacement, 100 East 2300-2850 North Sewer Improvements, 700 South 900-1300 West Sewer Improvements, State Street PG Blvd to 200 South. Seal coat and crack seals on numerous roadways throughout the city. Public Safety The Fire Department was granted monies to purchase a new fire truck, ambulance, and brush truck along with numerous smaller one-time purchases for their daily operations such as extrication tools, thermal imaging equipment and Zoll monitors. The Police Department received monies to replace their ongoing police vehicles, along with numerous smaller one-time purchases to aid in their daily operations, such as surveillance equipment, riot gear, and portable radios. siGnifiCanT CommuniTy ProjeCTs Veteran’s Memorial Pickleball Courts New PGFD ambulance 6 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove sTaTemenT of neT PosiTion The City’s governmental activities increased by $10.7 million in total net position which represents an 9.5% increase from the prior year’s net position. The City’s business-type activities increased $8 million in total net position which represents a 7.9% increase from the prior year’s net position. The City, as a whole, increased total net position by 8.72%, to $233 million, from the prior year. The full, disclosed Statement of Net Position can be located in the ACFR at plgrove.org. (Total Assets + Total Deferred Outflows) – (Total Liabilities – Total Deferred Inflows) = Net Position *Unrestricted net position represents the available funds the City has at a point in time to pay for emergencies, shortfalls or other unexpected needs in both the Governmental and Business-Type Activities. Unrestricted net position allows management to track the City’s financial position over time. Governmental Activities Business-Type Activities Total 2021 2020 2021 2020 2021 2020 Current & other assets $47,300,047 $43,485,614 $21,437,880 $18,458,275 $68,737,927 $61,943,889 Capital assets $119,428,930 $114,426,437 $119,360,953 $115,649,411 $238,789,883 $230,075,848 Total Assets $166,728,977 $157,912,051 $140,798,833 $134,107,686 $307,527,810 $292,019,737 Total Deferred Out-flows of Resources $947,104 $876,962 $323,126 $321,098 $1,270,230 $1,198,060 Long-term debt outstanding $25,574,926 $27,931,668 $ 29,322,877 $30,016,994 $54,897,803 $57,948,662 Other liabilities $10,677,858 $10,732,330 $ 1,321,273 $2,104,064 $11,999,131 $12,836,394 Total Liabilities $36,252,784 $38,663,998 $ 30,644,150 $32,121,058 $66,896,934 $70,785,056 Total Deferred In-flows of Resources $7,609,323 $7,046,214 $ 390,257 $240,636 $7,999,580 $7,286,850 Net Investment in capital assets $93,393,570 $86,435,879 $90,284,906 $84,608,811 $183,678,476 $171,044,690 Restricted $13,184,893 $8,516,460 $5,510,601 $4,976,341 $18,695,494 $13,492,801 Unrestricted*$17,235,511 $18,126,462 $14,292,045 $12,481,938 $31,527,556 $30,608,400 Total net position $123,813,974 $113,078,801 $110,087,552 $102,067,090 $233,901,526 $215,145,891 7Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove sTaTemenT of aCTiviTies As of June 30, 2021, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for governmental and business-type activities sepa- rately. This summary excludes bond proceeds and transfers related to bond issuances. The full, disclosed Statement of Activities can be found in our ACFR located at plgrove.org. Governmental ActivitiesBusiness-Type ActivitiesTotal 202120202021202020212020 Current & other assets $47,300,047 $43,485,614 $21,437,880 $18,458,275 $68,737,927 $61,943,889 Capital assets $119,428,930 $114,426,437 $119,360,953 $115,649,411 $238,789,883 $230,075,848 Total Assets$166,728,977 $157,912,051 $140,798,833 $134,107,686 $307,527,810 $292,019,737 Total Deferred Out-flows of Resources$947,104 $876,962 $323,126 $321,098 $1,270,230 $1,198,060 Long-term debt outstanding$25,574,926 $27,931,668 $ 29,322,877 $30,016,994 $54,897,803 $57,948,662 Other liabilities$10,677,858 $10,732,330 $ 1,321,273 $2,104,064 $11,999,131 $12,836,394 Total Liabilities$36,252,784 $38,663,998 $ 30,644,150 $32,121,058 $66,896,934 $70,785,056 Total Deferred In-flows of Resources$7,609,323 $7,046,214 $ 390,257 $240,636 $7,999,580 $7,286,850 Net Investment in capital assets$93,393,570 $86,435,879 $90,284,906 $84,608,811 $183,678,476 $171,044,690 Restricted$13,184,893 $8,516,460 $5,510,601 $4,976,341 $18,695,494 $13,492,801 Unrestricted*$17,235,511 $18,126,462 $14,292,045 $12,481,938 $31,527,556 $30,608,400 Total net position $123,813,974 $113,078,801 $110,087,552 $102,067,090 $233,901,526 $215,145,891 GOVERNMENTAL ACTIVITIES Governmental activities are general government activities and are financed primarily through taxes, intergovernmental revenues, and other nonexchange revenues. Pleasant Grove’s gov- ernmental activities are: BUSINESS-TYPE ACTIVITIES Business-type activities are fi- nanced in whole or in part by fees charged to external users for goods or services. Pleasant Grove’s busi- ness-type activities are: • Water • Sewer • Storm Drain • Sanitation • MWDPG The expenses of the City government are divided into two categories: Governmental Activities and Business-type Activities. • General Government • Public Safety • Public Works • Parks & Recreation • Debt Service • Redevelopment • Community Services • Construction • Dispatch • Swimming Pool • Community Center • Cultural Arts • Library Revenues & Transfers In Revenues & Transfers In Expenses & Transfers Out Expenses & Transfers Out 2020 2020 2021 2021 $30.2M $28.6M $19.5M $18.8M $21.5M $21.8M $13.5M $14.5M 8 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove 1M 2M 3M 4M 5M 6M 7M $8M OtherFines & Forfeitures Charges for Services Inter-governmentalRevenue Licenses & PermitsOtherTaxes Sales & Use Tax Property Taxes General fund—revenues WHAT IS THE GENERAL FUND? The General Fund is the general operating fund of the City and supports day-to-day operations. By law, the City shall only have one general fund. For data on all city funds, please view the ACFR at plgrove.org. HOW HAS THE GENERAL FUND CHANGED? As shown below, sales tax continues to increase, which is a good indicator that Pleasant Grove’s economy is continuing to grow as development continues. The substantial increase in Intergovernmental Revenue is related to CARES Act funds received. WHERE DOES THE GENERAL FUND MONEY COME FROM? Sales & Use Tax Other Taxes Inter- governmental Revenue Transfers In, Licenses, Permits, and Other Charges & Fees $3.9M $7.6M $2.1M $3.7M $4.4M The General Fund is comprised of the following departments: 2021 GENERAL FUND TOTAL: $21.7M Property Taxes • General City Departments • Risk Management • Class C Roads• Dental• Cemetery 2019 2020 2021 9Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove General fund—exPendiTures WHERE DOES THE GENERAL FUND MONEY GO? GENERAL FUND EXPENDITURES 2021 20212019 5M 6M $7M General Gov’t Court Facilities Community Develop-ment Engineering Police Fire Public Works Class C Expendi-tures Library Parks & Recreation Transfers Out 4M 3M 2M 1M 2020 In 2021, General Fund expenditures were $21 million compared to $17 million in fiscal year 2020. Police, Fire and Transfers Out were more than the prior years, and Class C expenditures were less than the prior year. The General Fund’s largest expenditures were: • Police (21%) • Class C Roads (11%) • Fire (12%) Police Class C Expenditures Transfers Out Fire General Government Parks & Recreation Library Community Development Court, Facilities, & Engineering Public Works 10 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove were used to cover the unforeseen costs related to COVID-19, public safety personnel, hazard stipends, and numerous capital improvement projects. These funds were first received and began to be spent during FY2020, and the remaining were spent in FY2021. General fund—fund balanCe FUND BALANCE Fund balance is the difference between the General Fund’s assets and liabilities. It is the net worth of the City. The unassigned fund balance is an indication of the amount of available resources the City has at a point in time to fund emergencies, shortfalls, or other unexpected needs. UNASSIGNED GENERAL FUND BALANCE The graph on the right depicts the ratio of the fund balance to budgeted revenues. This ratio is determined by dividing the amount of unassigned fund balance by the budgeted general fund revenue. The State requires cities to have an unassigned fund balance ratio at a minimum of 5% and a maximum of 35%. Fiscal year 2021 has been another year of strong economic growth and commercial development for the City, with the COVID-19 health pandemic not having a substantial negative effect on the City and its operations. The City’s sales tax revenues and building-related fees continued to increase during this time. The City was allocated $2.7 million of the CARES Act funds through Utah County. These monies 2M 4M 6M 8M $10M Restricted 2019 2021 10%20%30%40% 2020 2019 2018 2017 Unassigned 2020 2021 $7.9M $1.6M $6.8M $2.9M $2.1M $4.8M 17% 25% 28% 41% 32% Ratio of Fund Balance to Budgeted Revenues (State Requires Ratio to be 5%–35%) 11Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove ProPerTy Tax PROPERTY TAX The city of Pleasant Grove receives a portion of the property taxes collected on all real property located within the City. These tax dollars support public safety services such as those provided by police and fire departments, as well as many other government functions. PROPERTY TAX ASSESSED The chart at the right shows the amount of tax dollars received by each tax entity, based on an example residential property with a market value of $358,900. Of all residential property tax assessed, 20.17% goes to Pleasant Grove PROPERTY TAX: Percentage Received by Taxing Entities Alpine School District Pleasant Grove City Utah County Central Utah Water Assessing & Collecting Pleasant Grove City General Obligation Bond North Utah County Water (0.2%) 61% 16% 11% 5% 2% 4% $358,900 Market Value Residential Property Taxing Entity % of Total Amount Alpine School District 60.66%$888.47 Pleasant Grove City 15.63%$228.98 Utah County 11.50%$168.38 Central Utah Water 5.39%$78.96 Assessing & Collecting 2.08%$30.40 Pleasant Grove City GO Bond 4.54%$66.52 North Utah County Water 0.20%$2.96 Total Property Tax Assessed 100.0%$1,464.67 12 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove enTerPrise funds ENTERPRISE FUNDS Enterprise funds are used to account for those City operations that are financed and operated in a manner similar to private business. Readers interested in more details should read the Annual Comprehensive Financial Report (ACFR) available at plgrove.org. ENTERPRISE FUNDS REVENUES ENTERPRISE FUNDS EXPENSES $2M $2M Water Water Sewer Sewer Storm Drain Storm Drain Sanitation Sanitation Metropolitan Water District $4M $4M $6M $6M $8M $10M $8M 2019 2019 2020 2020 2021 2021 13Popular Annual Financial Report for Fiscal Year 2021City of Pleasant Grove debT summary DEBT SUMMARY At fiscal year end, the City had $57.3 million in outstanding long-term debt, which represents a 8.7% decrease from the prior year. This summary does not include all of the liabilities incurred by Pleasant Grove City. The City employed a variety of financing techniques for capital improvements, as described below: Notes Payable: Notes are issued in anticipation of general obligations bonds and may be issued up to a maximum maturity of 20 years from the date of the issuance of the original notes (except for notes in anticipation of special assessments). General Obligation Bonds: Repayment of General Obligation Bonds is guaranteed by the “full faith and credit” of the City. Revenue Bonds: Revenue bonds are secured by the issuer pledging specific revenues either from the projects being financed and/or other dedicated revenue sources such as franchise fees of utility service revenue. Debt Activity Balance July 1, 2020 Additions Reductions Balance June 30, 2021 General Obligation $11,345,000 $(584,000) $10,761,000 Tax Increment Revenue 13,362,000 (802,000) 12,560,000 Sales Tax Revenue 1,425,000 (460,000) 965,000 Water Revenue 19,990,000 (1,424,000) 18,566,000 Storm Water Revenue 8,765,000 (285,000) 8,480,000 Unamortized Premiums 2,388,644 (161,366) 2,227,278 Compensated Absences 1,014,857 721,675 (652,408) 1,084,124 Capital/Operating Leases 1,050,896 393,496 (618,354) 826,038 Note Payable 1,135,948 (73,399) 1,062,549 Net Pension Liability 2,270,478 (1,518,422) 752,056 Total: $62,747,823 $1,115,171 $(6,578,949) $57,284,045 Operating and capital leases have been used as a mechanism to obtain vehicles, copiers, computers, and fitness equipment LONG-TERM DEBT SUMMARYGovernmental and Business-Type Activities 14 Popular Annual Financial Report for Fiscal Year 2021 City of Pleasant Grove RECOGNITION Congratulations to the Parks Department for earning the Tree City USA award from the Arbor Day Foundation for the 26th year in a row. Pleasant Grove was ranked 6th in Safe City Recognition in 2021. The PGPD also received the Bronze Award from Lexipol for Excellence in Law Enforcement Policy. CONTACT US Pleasant Grove City: 801-785-5045 Finance Department: 801-992-4506 plgrove.org PHOTOGRAPHY Thanks to Pleasant Grove resident Drew Armstrong for generously allowing us to use many of his photos in this publication.