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HomeMy WebLinkAboutCity of Portage - Public Financial ReportCITY OF PORTAGE, MICHIGAN POPULAR ANNUAL FINANCIAL REPORT 2020-2021 CITY OF PORTAGE 7900 SOUTH WESTNEDGE AVENUE PORTAGE, MICHIGAN 49002 portagemi.gov | (269) 329-4534 CITY OF PORTAGE POPULAR ANNUAL FINANCIAL REPORT The information in this Popular Annual Financial Report (PAFR) has been drawn from selected segments of the City of Portage Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. Complete financial statements of the City of Portage with additional demographic and economic information are published in the ACFR. Detailed information where the totals are represented by function can be found in the ACFR. The PAFR and the ACFR are both available on the City of Portage website - portagemi.gov/638. A printed copy of both reports can be obtained by calling the Portage Finance Department at (269) 329-4534. 1 A Park Ranger sets up holiday decorations at the Ice Rink at Millennium Park A Portage Firefighter watches as a young Portager takes a tour of a fire engine A Department of Public Safety Records Clerk processes a Freedom of Information Act request A Ramona Beach Lifeguard scans the water for swimmers The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to the City of Portage for its annual budget for the fiscal year beginning July 1, 2021. GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Portage Michigan For the Fiscal Year Beginning July 01, 2020 Executive Director In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. City of Portage, Michigan 2021-2022 Budget 8 2 FINANCIAL AWARDS Government Finance Officers Association Certificate of Achievement for Excellencein Financial Reporting Presented to City of PortageMichigan For its Annual ComprehensiveFinancial ReportFor the Fiscal Year Ended June 30, 2020 Executive Director/CEO The Government Finance Officers Association of the United States and Canada (GFOA) presented an award for Distinguished Budget Presentation to the City of Portage for its annual budget for the fiscal year beginning July 1, 2020. The GFOA has also awarded the Certificate of Achievement for Excellence in Financial Reporting to City of Portage for its annual comprehensive financial report for the fiscal year ended June 30, 2020. The report has been judged by an impartial panel to meet the high standards of the program, which includes demonstrating a constructive “spirit of full disclosure” to clearly communicate its financial story and motivate potential users and user groups to read the report. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. To receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, and as a communications device. WHERE YOUR PROPERTY TAXES WENT In Fiscal Year 2020-2021, the City Treasurer distributed property taxes to the schools, county, library and city as shown below. Taxing Unit Percentage of Tax Levy City of Portage 20.61% Kalamazoo County 16.22% Kalamazoo Regional Educational Service Agency 14.22% Community College 5.42% Library 3.80% Local Schools 39.73% 3 The City of Portage operates on a balanced budget. Revenues are received from several sources, primarily property taxes, charges for services and intergovernmental funding. Those revenues are distributed primarily to the city’s General Fund and Capital Improvement Program Fund, as well as other various funds. WHERE THE MONEY CAME FROM * State Education Tax, Public Schools, Kalamazoo Regional Educational Service Agency, Community College. Intergovernmental 18.2% Other Revenue* 35.6% Property Taxes 27.5% Charges for Services 18.7% Sc h o o l s , 5 9 % Li b r a r y , 4 % Ka l a m a z o o C o u n t y , 1 6 % Ci t y o f P o r t a g e , 2 1 % * * Other Revenue = Interfund Transfers, Other Financing Sources, Licenses & Permits, Interest & Rents, Special Assessments. Sources of Funding - All Funds Fiscal Year 2020-2021 4 HOW THE CITY OF PORTAGE USED YOUR PROPERTY TAXES In Fiscal Year 2020-2021, only 21% of Portage resident property taxes were distributed to the City of Portage. The remaining funds were distributed to other taxing jurisdictions. The city portion of your property taxes were used in this way: COST OF CITY SERVICES TO THE TYPICAL RESIDENCE In Fiscal Year 2020-2021, the total cost of city services for the typical residence in Portage, including property taxes and utilities, was $1,598.18 shown below. The cost in Fiscal Year 2021-2022 will increase by $36.36. General Operations 14.53% Capital Improvements 3.88% Municipal Streets1.4% CurbsideCollections 0.7% Recycling 0.6% Fiscal Year 2021-22 (in 2020-21 dollars) Fiscal Year 2021-22 Fiscal Year 2020-21 Property Taxes Utilities $896.68 $701.50 $896.68 $739.86 $884.30 $729.64 Total $1,598.18 $1,634.54 $1,613.95 5 General Fund Revenues Amount Percentage Property Taxes $17,177,438 56.72% Licenses and Permits $869,934 2.87% Federal Grants $1,183,949 3.91% State-Shared Revenue $4,566,603 15.08% Other State Grants $3,146,970 10.39% Local Contributions $106,161 0.35% Charges for Services $1,640,295 5.42% Interest Income $56,795 0.19% Rental Income $172,576 0.57% Net Change in Fair Value Of Investments -$31,455 -0.10% Other Revenue $1,393,826 4.60% Total Revenues $30,283,092 100% Other Revenue* 5.61% Charges for Services 5.42% Other State Grants 10.39% State-Shared Revenue 15.08% Federal Grants 3.91%Licenses and Permits 2.87% Property Taxes 56.72% GENERAL FUND REVENUES BY SOURCE Fiscal Year 2020-2021 * Other Revenue includes Local Contributions, Interest Income, Rental Income and Net Change in Fair Value of Investments 6 General Fund Expenditures Amount Percentage General Government $6,500,264 26.29% Public Safety $14,578,235 58.97% Public Works $759,273 3.07% Health and Welfare $165,659 0.67% Community Development $1,141,086 4.62% Recreation and Culture $1,576,072 6.38% Total Expenditures $24,720,589 100.00% GENERAL FUND EXPENDITURES BY DEPARTMENT OR FUNCTION Fiscal Year 2020-2021 Recreation and Culture 6.38%Community Development 4.62%Health and Welfare 0.67% Public Works 3.07% Public Safety 58.97% General Government 26.29% 7 FISCAL STABILITY The City of Portage is a regional leader in economic strength. The spending priorities have always included a strong focus on road improvements, along with parks and public facilities like the new Fire Station No. 2 and ongoing construction of the new Charles & Lynn Zhang Portage Community Senior Center. Standard & Poor’s Bond Rating AA + 2017 AA + 2018 AA + 2019 AA + 2020 AA + 2021 On May 12, 2021, S&P Global Ratings assigned the ‘AA+’ rating to the City of Portage for the fourth consecutive year. The ‘AA+’ rating is the second-highest that can be assigned to a municipality. S&P Global commented, “The local economy remained resilient through the COVID-19 pandemic and continues to see growth due to ongoing expansion of its top and large employers as well as residential development, with further growth expected. This boosts revenue, resulting in ongoing positive financial operations, and very strong budgetary flexibility that will keep supporting the city’s plans to fund an array of capital projects. The city’s very strong management practices further highlight its proactive nature in ensuring stability across its financial operations.” @CityofPortageMI | @PortageMIPublicSafety @PortageSeniorCenterMI | @PortageMarketMI @CityofPortageMI @PDPSPortageMI @CityofPortageMI @PortageMarket @CityofPortage City of Portage Finance Department 7900 South Westnedge Avenue Portage, Michigan 49002 portagemi.gov | (269) 329-4534