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Home My WebLink About08-13-07 Agenda Item 4F ~ ~HlLLS Request for Council Action Prepared By: Sue Iverson, Finance Director~..~ Dept.: ._.,E.!,~~"r]"~_________________m____._m.'..'..'..,..,."..""."____~= - _______ Council Mtg. Date: ..",.u9~~t9L~QQ!.......__ Final Action Needed By: ~~___._._ Agenda Item: ..siidgeled-Afnount::'" .-------- N/A Actual Amount: - --.... ....iliiA Funding Source: ..........___________ __..............m........... ____._____________,______. N/A 4.F. A motion to accept the 2006 Popular An'niiafFj"nancj"arReport-asm'pre~ijinied~---- i___ ~f!~i~iIDmJdatiQre~'m~zTlElB~~Jf~. m........._.."_m____________ i Staff recommends acceptance of the financial report as presented. x ;". -" .". Memo from Sue Iverson - 2006 Popular Annual Financial Report to the Citizens of Arden Hills 'n. .....-- No.: ;V No.: Recommendation: Recommendation: X lather: 2006 Popular Annual Financial Report None. . None. ~ --A~ HILLS MEMORANDUM DATE: August 9, 2007 4.F. TO: Honorable Mayor and City Council Michelle Wolfe, City Administrator FROM: Sue Iverson, Finance Director ~ SUBJECT: 2006 Popular Annual Financial Report to the Citizens of Arden Hills BackgroundJDiscussion: In response to Council comments and requests to provide a sunnnary of financial information to the Citizens of Arden Hills, staff has prepared a report within the guidelines of the Government Finance Officers Association. This report is called the Popular Annual Financial Report and its purpose is to summarize the City's financial activities in a simple, easy-to-read format for the general populous of the City. Staff has reviewed this report with the Communications Committee and they have decided to send this report out with the August newsletter. Attached is a copy of the report that will be sent out with the newsletter. Staff would like to thank our intern, Chris Gabiou, for all his hard work on this project. He is a Communications Major at St. John's University and will be able to add this to his portfolio. Staff Recommendation: Staff recommends Council make a motion to accept the 2006 Popular Annual Financial Report as presented. August 2007 ~ ~~HILLS Inside this issue; f.Qpular Annual Financial Report To The Community For the fiscal year ended December 31, 2006 The City of Arden Hills is excited to present its first ever Popular Annual Financial Report [P AFR]. The purpose of this report is to inform the community of the City's financial activ- ity in a simple, easy-to-read format for the fiscal year ending December 31, 2006. These highlights are based upon d,e City's Comprehensive Annual Financial Report [CAFR] which is a more inclusive, audited document. Arden Hills Ranked Ivell Agaimt Stmmmding Areas Tax Rate Comparison In a 2006 comparison of nine communities in and around Ramsey County, the average cost of services on a $250,000 homestead in terms of property taxes and property tax aids (when adjusted for fiscal dis- parities) showed Arden Hills ranking as one of the lowest. A\ $250,000 homestead in ~-\rden Hills paid $39.52 per month in property taxes to the City. DIVIDING UP YOUR 2006 PROPERTY TAX DOLLAR 4Hc Ramsey c:ouhl}' 21~ City of Arden Hills 24c School Di:>toct 7c Other agcncie~ Your tax dollar is divided up into several govern- mental entities. Ardcn Hills col- lects 21 cents of every tax dollar for City service~. The remaining portions are di- vided among Ram- scy County, the school district and other agencies. ~IounJs Vie\\! Ne\v Brighton l\Iaplcwood Blaine S1. Paul Shorev;e\v Rosev:iUe ArdenHiIls Arden Hil/s'jizJe basic funds I n order for. \rden [lills to manage the community smoothly it di,-ides ,.aooo:; acti,-ities into s(:\"cral differ- ent (und~_ [-{ere is a brief Jc~cription of each: . The General Fund account~ for rC\Tnues and o.:pcnditures that pr<J'-1de for omit opera- tiolls of the dlj', t_C_, po- lice & tire protection ,11ld strcetm,ll!1tcnance. . The Special Revenue Fund accounts for acti,-i- tics re~tricted to speaji( p1llposes like TC'\...-\P. . Debt Service Fund tracks re,.enue~ and e;.:pcnditures related to npqymeJJt oj !ollg term debt. . The Capital Fund col- lects HTcnues from ~pecial assessment~, state, and county aids and allot~ them toward fOflJlrudiofl or mqjor capita! expemes. . Enterprise Funds ac- count for adi/litiu that opemtem"publitetlter- prisu which are then paid fDr by u~er fees, i.e., \\.ater,rccycling,scwer& surface water managc- ment. Pi:! Q e 2 ' Revenue 111C City's General Fund is the largest fund and also one of the most vital to the City's operation. The General Fund is the primary fund that accounts for everyday gen- eral expenses like park maintenance, police protection, and fire protection while at the same time supplementing por- tions 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 expenditures. The pri- mary revenue for the General Fund is property taxes. Intergovernmental revenues are items like state/county aids and grants. For the year end of 2006 the City's reve- nue total was $3,328,371, which was a $27,455 (0.8 per- cent) increase from the previous year. A breakdown of the City's revenues can be seen to the right. iii Central Governm::mt lii Public Safety iii Public Works III Parks and Recreation o Other 0.3% 7.1% Outflow: Where the money went Arden Hills Popular Annual Financial Report 2006 2005 2006 Propcrty Ta_xcs 52,344,878 $2,4<)2,465 T,iccnscs/Pcrmits 32:J,109 384,333 [ntcf"o\'cmmcnul 80,746 t22,lSO 0 Charges for SCtTiccs 157,694 181,694 Other 392,489 177,729 Total General Fund $3,300,916 $3.328,371 Revenues Inflow: Where does the money come from 5.5% 5% 3.7% 12% IBI Property Taxes o Charges for Services IE Licenses/Permits IIiIlntergovernmental iii Other Expenditures The City's total General Fund expenditures for 2006 were $3,005,175. which was $16.721 (0.6 percent) under the fInal budget. Overall, General Fund expenditures decreased $124,225 (4.0 percent) from 2005. The chart below highlights the amount funded to each of the City's functions. 2005 2006 Central Gm-cmmcnt 5861,906 51,028,270 Public Safety 1,137,742 1,274,167 Public Works 488,668 213,353 Parks and Recreation 551,720 480,153 Other 89,364 9,2.12 Total General Fund $3,129,400 $3,005,175 Expenditures Arden Hills Popular Annual Financial Report 2006 --~~,~~"-,~"~~~~~~--~~,~~".g~~.~~~-~-~,~~~.~,=~--~~-~-.~~~.- Page,13 . , Governmental Expenditures - The City of _\rden Hills prides itself on controlling spending while providing the best services possible. In 2006 the City's expendi- tures totaled $5,810,836, up 16 percent from 2005. This chart high- lights the City's ability to control its expenditures over a several year period. This graph demonstrates the City's pri- orities over Five Year Expenditure Comparison $7,000,000 $6,000.000 $5,000,000 $4.000,000 $3.000,000 $2,000,000 $1,000.000 $0 I different de- 2002 2003 partments \.vithin the iii Debt Service individual year. . Parks and Recreation !ill Miscellaneous [g! General Govenunent 2004 2005 2006 !II Public Safety o Public VVorks fi Capital Outlay ~ Econornic Development Arden Hills maintains an '\\ +" rating from Standard & Poor's and Fitch and an "Aa" rating from j'\iloody's for general obligation debt, The Cit, issued G.o. Tax Increment bonds in 1998, which are budgeted to be paid III full the 2015 fiscal I-ear. These Tax InCrCITlCnt Financing (TIF) districts are an important economic de- '\'dopm_ent tool employed by the City. Arden Hills' TIF districts are located along Round Lake Road and Cottage Villas, In 2004 the City of Arden Hills decided to refinance its debt because of lower order to do this the City had to pay the previous bond in full, therefore causing the spike in the diagram to the right. The chart also shows the City is committed to repaying its debt in a timely manner. 2006 revenues \-vere $57 in interest, expen- ditures were $262,250, and transfers in from TIF dis- tricts were $262,250. in teres t rates. [n Special Revenue Funds The City of ~-\rden Hills has eight funds that make the special reve- nue fund. Special revenue funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, local ordinance, and/or resolu- tion to fmance particular functions, activities, or governments. (Note: TC~.-\....\P expenditures were greater than revenues as devel- oper reimbursements were not received until 2007.) 2006 Revenues 2006 Expenditures Community Scn'iccs 574,837 5U Parks 8,338 .12,OllO Cablc 82,248 91,358 TC\.\P 49,3t8 172,378 Risk lvlanagcment 27,75.) 1.1,218 ED;\ Operating 788,845 81.1,710 EDA Revolving 6,241 II ED.\ TIF District No 2 430,813 2,5(,7 EDl\ TtF District No.) 48,473 (,,%4 Total $1,513,866 $1,166,800 (For more information on the specific funds descriptions, please see the C.-\FR.) City of Arden Hiffs Outstanding Debt $6,000,000 $4,000,000 $2,000,000 $0 20002002 2004200620082010 2013 2015 l~~lijJJLi .~ijL~~ ~ ~ g G.O. Tax Increment Bonds Parks The City has 13 parks which are constantly being npgrnded and improv,?d. <the Parks d . Recreatid"" .,' Park for $747.08, siding an pan- eling for Pavement Management Plan: The City has a succcssful program for maintaining the life of ..-\rdcn [[ills' streets. The Pavement ~Ianagement Program (P1-IP) identities, inventories, and tracks street conditions to ensure that the proper maintenance is done at the appropriate time. The results are p((Jlonged pavement life and reduced overall costs to p((Jperty owners. '[he PMI' was initiated to insure a good maintenance program for ,\rden [lills' aging streets. 51,084,102 Expenditurcs - About this Public Safety Equipment: 51,264.970 Financial Report This fund accounts for the City's share of capital equipments costs for police and fire. Revenues - 524,110 Expenditures - 5111,641 The City of Arden ([iUs reports financial year-end results in the Comprehensive .c\naual liinancial Report (CU'-H.). The Popular Annual Financial Report (PAFR) summarizes the most sif,'1lificant data from the 2006 C-\I;R, and is consistent with Generally Accepted Accounting Principles. 1ne report reflects the net tax cost by serv1cc expendiulre, developed by crediting related revenues against appro- priate expenditures and allocating local taxes against the remaining bahtnce. o Revenues mI Expenditures $1,500.000 $1.000.000 The City of ,\rden Hills' PAFR is un- audited. This popular report format i.~ a first for the City and available on our website at \vww.ci.arden-hilkmn.u$. $500,000 $0 Sewer Fund Water Fund [;or a complete review of the City's finan- cial position t(l( 2006, consult the 2006 C\FR available from the Finance De- partment or the City's wcbsite or caH 651.792.7816. 2006 o Revenues $1,283,944 ,1iiiI Expenditure_s__~1.227.106 $1.062,748 $1,034,068 How Tax Dollars Buy City Services Surface Recycling $71.199 $81,630 $401.739 $94.294 Residents receive a variety of City services at an affordable price. The cost of City services in 2006 for the owner of a single-family home in Arden Hills with an assessor's market value of $250,000 was $39.52 per month. Utilities remain competitively priced in 2006. The value received from City services compared favorably to charges to other monthly bills. Ch"'",kRegi.ler Direct comments and suggest:ion$to the hnancc Department. Phone, 651.792.7816 sue.ivcrson@ci.ardcn-hi.lIs~nm~l1s or visit .www.ci.arden-hills.mn.us to tinJ out more about City Property Tax-Supported Ser- Vices The checkbook shows how the monthly cost of property tax- supported services was divided among City departments. Monthly Cost of Utilities Based on an average usage of 4,800 gallons per month, monthly cost of utilities for a home in Ar- den Hills was $39.00 in 2006 (Arden Hills bills on -a quarterly basis). These services include wa- ter, sewer, storm water, and recy- cling.