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Home My WebLink AboutArden Hills 2018 Popular Annual Financial ReportYour tax dollar is divided up into several governmental entities. Arden Hills collects 22 cents of every tax dollar for City services. The remaining portions are divided among Ramsey County, the school district and other agencies. Tax Comparison 1 Dividing Up Your Tax Dollar 1 General Fund 2 Special Revenue Funds 3 Internal Service Funds 3 Long-Term Debt 3 Capital Funds 4 Enterprise Funds 4 Monthly Bill 4 Inside this issue: In a 2018 comparison of nine communities in Ramsey County, the average cost of services on a $333,800 homestead in terms of property taxes showed Arden Hills ranking as one of the lowest. City of Arden Hills, Minnesota Popular Annual Financial Report To The Community For the year ended December 31, 2018 7¢ Other agencies 46¢ Ramsey County 22¢ City of Arden Hills 25¢ School District The City of Arden Hills presents its Popular Annual Financial Report [PAFR]. The purpose of this report is to inform the community of the City’s financial activity in a simple, easy-to-read for- mat for the fiscal year ending December 31, 2018. These highlights are based upon the City’s Comprehensive Annual Financial Report [CAFR] which is a more inclusive, audited document. In order for Arden Hills to manage the community finances smoothly, it divides various activities into several different funds. • The General Fund accounts for revenues and expenditures that provide for basic opera- tions of the City, i.e., police and fire protection and street maintenance. • Special Revenue Funds account for activi- ties restricted to specific purposes like economic development. • Debt Service Funds track revenues and ex- penses related to repayment of long term debt. • The Capital Fund collects revenues from special assessments, state, and county aids and allots them toward construction or major capital expenses. • Enterprise Funds account for activities that operate as public enterprises which are paid for by user fees, i.e., water, recycling, sewer and sur- face water management. • Internal Service Funds account for the ac- quisition, operation, and maintenance of gov- ernmental facilities and services, which are entirely or predominately self-supporting by user charges. Monthly City Property Tax Comparison Dividing Up Your Property Tax A $333,800 homestead in Arden Hills paid $69.49 per month in property taxes to the City. City Departments Administration: This department provides the overall direction for the City as determined by the City Council. It is responsible for maintaining City records, issuing licenses, administering Council policies, and election procedures. Finance: This department conducts the financial affairs of the City of Arden Hills in accordance with the Government Accounting Standards Board (GASB) and Generally Accepted Accounting Principals (GAAP). Community Development: This department is responsible for ensuring that laws, ordinances, and zoning codes are enforced. It is also responsible for economic development within the City. Public Works: This department manages the City’s infrastructure as it relates to roadways, water, sewer, and surface water management. Parks & Recreation: This department is responsible for providing recreation activities in the City and maintaining the City’s parks and trails. The City’s General Fund is the largest fund and is also one of the most vital to the City’s operation. The General Fund is the pri- mary fund that accounts for everyday general expenditures like street and park maintenance, public safety, and administrative services; while at the same time, supplementing portions of the other funds. Like most funds, the General Fund relies on the inflow of cash, shown as revenues and subsequently the outflow listed as expendi- tures. The primary revenue for the General Fund is property taxes. Intergovernmental revenues are items like state/county aids and grants. For year end 2018, the City’s revenue total was $4,882,681 which was a $348,459 (6.7%) decrease from the previous year. Li- censes and permits and charges for services decreased $202,753 and $162,236, respectively, due to decreased building activity in the current year. Arden Hills Popular Annual Financial Report Page 2 General Fund Revenue The City’s total General Fund expenditures for 2018 were $4,361,629 which was $330,225 (7.6%) under the final budget. Overall, General Fund expenditures increased by $164,993 (3.9%) from 2017. Public Safety costs increased $30,308 (1.5%) from 2017 and Public Works costs increased by $135,902 (30.6%) from 2017; the chart above highlights the amount funded by each of the City’s functions. General Fund Expenditure 2017 2018 Property Taxes $3,541,705 $3,578,628 Special Assessments $1,265 $5,362 Licenses/Permit $729,197 $526,444 Intergovernmental $151,425 $149,097 Charges for Services $590,141 $427,905 Other $217,407 $195,245 Total General Fund Revenue $5,231,140 $4,882,681 2017 2018 General Government $1,076,352 $1,039,772 Public Safety $2,058,037 $2,088,345 Public Works $443,633 $579,535 Parks and Recreation $618,614 $653,977 Other $0 $0 Total General Fund Expenditures $4,196,636 $4,361,629 $0 $1,000,000 $2,000,000 $3,000,000 2009 2012 2014 2016 2018 City of Arden Hills Outstanding Debt Arden Hills recently received a “AAA” rating from Standard & Poor’s for its 2018A General Obligation Utility Revenue Bonds. This bond rating benefits the City by allowing the City to bor- row at lower interest rates. The City previously issued General Obligation Tax Increment bonds in 1998, these bonds were fully repaid in 2015. The 2018A GO Utility Revenue Bonds helped fund multiple water and sewer projects throughout the City. The below table represents a timeline of the City’s historical debt holdings. Arden Hills Popular Annual Financial Report Page 3 Long Term Debt The City of Arden Hills prides itself on controlling spending while providing the best services possible. In 2018, the City’s expenditures (for all funds except Enterprise and Internal Ser- vice Funds) totaled $10,757,975; an increase of 87% from 2017. The increase was due to increased construction activity related to street and trail projects. The chart highlights the City’s ability to control its expenditures and demonstrates the City's priorities across departments on an annual basis. The City’s revenues for 2018 (for all funds except Enterprise and Internal Service Funds) totaled $7,222,675; a decrease of 11% from 2017. This decrease is due to a reimbursement from the County for a street project recognized in 2017. Special Revenue Funds Governmental Revenue & Expenditure The City of Arden Hills has five special revenue funds. Special revenue funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are required by statute to finance particular functions, activities, or governments. See the 2018 CAFR for more information. EDA=Economic Development Authority Internal Service Funds Internal service funds are an accounting device used to accumu- late and allocate costs internally among the City’s various func- tions. The City maintains internal service funds for risk manage- ment, engineering, central garage and technology. The totals for these funds combined are: Total Revenue — $779,294 Total Expenses — $728,151 Revenue Expenditures Cable $105,598 $124,885 EDA Operating $8,211 $58,755 EDA Revolving $547 $34,208 EDA TIF District No. 3 $106,604 $1,501 EDA TIF District No. 4 $256,050 $230,084 Total $477,010 $449,433 Residents receive a variety of City services at an affordable price. The cost of City services in 2018 for the owner of a single-family home in Arden Hills with an assessor’s market value of $333,800 was $69.49 per month. Utilities remain competitively priced in 2018. The value received from City services compared favorably to charges of other monthly bills. Property Tax-Supported Services The checkbook shows how the monthly cost of property tax-supported ser- vices was divided among City departments. Monthly Cost of Utilities (separate from property taxes) Based on an average usage of 4,800 gallons per month, monthly cost of utilities for a home in Arden Hills was $75.26 in 2018 (Arden Hills bills on a quarterly basis). Capital Funds Check Register Description of Transaction Balance Public Safety $ 28.69 General Government $ 13.94 Parks and Recreation $ 8.77 Public Works $ 10.45 Capital /EDA $ 7.64 About this Report The City of Arden Hills re- ports financial year-end results in the Comprehensive Annual Financial Report (CAFR). The Popular Annual Financial Re- port (PAFR) is an unaudited report that summarizes the most significant data from the 2018 CAFR, and is consistent with Generally Accepted Ac- counting Principles. The re- port reflects the net tax cost by service expenditure, devel- oped by crediting related reve- nues against appropriate ex- penditures and allocating local taxes against the remaining balance. For a complete review of the City’s financial position for 2018, consult the 2018 CAFR available on the City’s website at www.cityofardenhills.org, or from the Finance Depart- ment at 651.792.7800. Pavement Management Plan The City has a program for maintaining the life of Arden Hills’ streets. The Pavement Man- agement Program (PMP) identifies, invento- ries, and tracks street conditions to ensure that maintenance is done at the appropriate time. The results are prolonged pavement life and reduced costs to property owners. The PMP was initiated to ensure a maintenance program for Arden Hills’ aging streets. The most re- cent 2018 PMP area included three neighbor- hoods within the City. Revenues (Assessment, State Aid, Interest & Transfers) — $2,000,026 Expenses — $5,423,506 Public Safety Projects This fund accounts for the City’s share of capi- tal equipment costs for police and fire. Revenues (Donations, Interest & Transfers) — $88,608 Expenses — $166,000 These funds consist of utility services provided to the com- munity by the City such as water, sewer, surface water and recycling. A rate study was completed in 2018 and project- ed infrastructure improvements will require annual user rate increases. User rates are evalu- ated each year during the budget cycle. Enterprise Funds How Property Tax Dollars Buy City Services Equipment/Building Maintenance & Repair City equipment and buildings are monitored regularly and replaced/repaired when needed. Transfers are made from various funds to fund these expenditures. Transfer from General & Enterprise Funds & Sale of Assets — $819,158 Expenses — $342,987 Parks This fund was established for park/trail acqui- sition and development. Revenue for this fund comes from developer park dedication fees, contributions, state grants and investment interest. Revenues — $24,350 Expenses — $650 69.49 January 1, 2018 Homeowner City Of Arden Hills Sixty Nine and 49/100————————————— MONTHLY police, fire, street maintenance, parks, programs etc. Homeowner City of Arden Hills, MN YOUR BANK Arden Hills Popular Annual Financial Report Page 4