Popular Annual Financial Report. City of Richmond, Virginia

Transcription

1 Popular Annual Financial Report City of Richmond, Virginia

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3 2017 POPULAR ANNUAL FINANCIAL REPORT To the Citizens of Richmond, Virginia Richmond s first ever Popular Annual Financial Report (PAFR) is a report for our citizens. It is designed to increase awareness throughout the community of the financial operations of the city. It is written in a userfriendly manner that will provide a better understanding of our city government, local economic conditions, and financial position. The PAFR was prepared using audited financial statements included in the June 30, 2017 Comprehensive Annual Financial Report (CAFR), which was prepared in accordance with Generally Accepted Accounting Principles (GAAP). The CAFR received an unmodified opinion from the auditors of CliftonLarsonAllen (CLA), meaning that the reports were true and fair in all material aspects. Since the PAFR is not required to include the same level of detail as the CAFR, it is not an audited financial statement. The information in this document involves only governmental funds and condenses financial information. Therefore, this report does not comply with GAAP. This report demonstrates what makes Richmond a great place to live, work, and learn. As well as being home to numerous for-profit and nonprofit businesses and educational institutions, Richmond s local government plays a vital role in the local economy and this report is designed to demonstrate that role as well as highlighting the financial condition and trends of the City. In This Report 2. About Richmond, Virginia 3. Richmond City Leadership 4. Richmond City Council 5. Mayor s Priorities 6. The Local Economy 7. Financial Statements 8. General Fund Revenues 9. General Fund Expenditures 10. Statement of Net Position 11. Unassigned Fund Balance 12. Credit Ratings 13. Debt Service 14. Capital Assets 15. Capital Projects Fund 16. Contact Us For more in-depth information, you may obtain a copy of the CAFR on the City s website at Additionally, questions or comments concerning any of the information provided in the PAFR should be directed to PAFR@richmondgov.com or by calling (804) The PAFR does not contain information on proprietary funds (those that finance themselves, such as parking and utilities), fiduciary funds (those which contain resources belonging to entities other than the government, such as pensions), and component units (which are entities such as the School Board and Richmond Economic Development Authority).

4 ABOUT RICHMOND, VIRGINIA City Profile Richmond, incorporated in 1782, is a municipal corporation of the Commonwealth of Virginia and is the state capital. The City occupies square miles and serves a growing population of 223,170 as of the latest (2016) U.S. Census Bureau s annual population estimate. Richmond is within 750 miles of two-thirds of the nation s population and less than 100 miles from the nation s capital. The City is ideally suited as a commerce hub because of the intersection of Interstates 95, 64, and 295, two major rail freight lines, and Amtrak passenger service. The Port of Richmond and Richmond International Airport provide water and air transportation services to the region s residents and businesses. The results are a diverse economic base that includes research and development, manufacturing, retail, services, law, distribution, tourism, banking, and state government, which contributes to a stable and positive business environment. Accolades bestowed on the City and the Greater Richmond Area include the following rankings: One of the top ten up-and-coming cities (Realtor.com); Quick Facts One of the South s best cities (Southern Living); Best Vacation Spot in Virginia (Huffington Post); #2 on the list of 25 cities Where Millennials Are Moving (Time); and 24th best place to live (US News & World Report). The James River, which runs through Richmond, has made the City the only urban U.S. city with Class IV white water rapids running through downtown. The City s James River Park system, with 550 acres, has been recognized as one of the Southeast s Best Urban Parks. The Mayor serves as Chief Executive Officer and is responsible for the proper administration of city government. The City s daily operations are directed by a Chief Administrative Officer who is appointed by the Mayor and subject to the consent of a majority of the members of Council. The Council establishes local laws, provides government policy and oversight, and approves the City budget. The Council is comprised of nine members elected from single member districts to serve four year terms. The City provides a full range of general governmental services for its citizens. These services include police and fire protection, sanitation services, the construction and maintenance of roads, streets and other infrastructure, recreational activities, and cultural events. The City s Richmond Gas Works, water utility and wastewater utility are regional providers of services. The City government also provides the majority of the funding for the public schools systems. Richmond Police Department: The city houses 4 police stations and operates 222 patrol units. Richmond Fire Department: Richmond has 20 fire stations with 51 fire trucks. The Department of Public Works maintains 1,832 miles of pavement throughout the City. The Department of Parks, Recreation and Community Facilities manages 20 community centers and 73 parks over 2,844 acres. The Department of Public Utilities services and maintains 3,846 miles of gas, water, and wastewater lines. 2

5 Honorable Mayor Levar Stoney RICHMOND CITY LEADERSHIP Richmond, VA is thriving, strong, and engaged in building One Richmond, a city that works for and benefits all its residents. This effort is built upon government transparency and public disclosure. We are a stronger city and one better prepared to meet our challenges and to seize opportunities when the citizens of Richmond are engaged and informed. The first ever Popular Annual Financial Report (PAFR) is put forth as part of your government s effort to keep you informed and compliments the City s 2017 Comprehensive Annual Financial Report (CAFR), which was completed early this year showing a near $17 million surplus. Today, we are on solid financial ground; and together, we ll build upon this success and security to continue the work in building One Richmond. Mayor Levar Stoney Selena Cuffee-Glenn, Chief Administrative Officer Richmond is strong and well-positioned to meet and overcome the clear and present challenges before us. We have an engaged mayor and proactive city council. Together, with our talented workforce, we will make Richmond the envy of aspiring cities. Richmond is committed to transparency, and both this Popular Annual Financial Report (PAFR) and the 2017 Comprehensive Annual Financial Report (CAFR), along with previous years CAFRs and numerous other financial reports, are available to the public on the City s website: richmondgov.com. Please stay informed and do not hesitate to keep your elected representatives apprised of your views. 3

6 RICHMOND CITY COUNCIL Chris A. Hilbert, President 3rd Voter District Richmond Northside Cynthia I. Newbille, Vice President 7th Voter District Richmond East End Andreas D. Addison 1st Voter District Richmond West End Kimberly B. Gray 2nd Voter District Richmond North Central Kristen N. Larson 4th Voter District Richmond Southwest Parker C. Agelasto 5th Voter District Richmond Central Ellen F. Robertson 6th Voter District Richmond Gateway Reva M. Trammell 8th Voter District Richmond Southside 4 Michael J. Jones 9th Voter District Richmond South Central

7 MAYOR S PRIORITIES Education Richmond Public Schools (RPS) increased per pupil spending by 6.8%, and provides breakfast and lunch to all students free of charge. Richmond is now home to five high schools ranked among the best by U.S. News & World Report. Public Safety Richmond Police Department and Richmond Ambulance Authority earned Advanced Law Enforcement and Emergency Medical Dispatch Center of Excellence reaccreditations. Richmond s Animal Care and Control s Live Animal Release Rate increased to 90%, taking care of 3,237 animals. Core Services Richmond s Department of Public Works implemented improved street clearing and repair measures, to include increasing the number of potholes filled. Richmond s revenues increased by $11 million, and the Unassigned General Fund Balance (savings) increased to $107.7 million. Poverty Mitigation The Richmond Center for Workforce Innovation (CWI) assisted over 390 citizens in career and training services, resulting in 228 participants finding employment. Richmond Behavioral Health Authority (RBHA) provided mental health services, disability services, and substance abuse disorder services to 12,778 individuals. 5

8 THE LOCAL ECONOMY Richmond has a diverse economic base, consisting of manufacturing, research and development, retail, services, distribution, banking, and state and federal government. All of these job sectors contribute to the positive business environment of the City. Some highlights include a new CarMax headquarters downtown, adding 150 new jobs, and the completion of the Gateway Plaza building, which represents a $124 million investment in the City. The Richmond area is also the headquarters of eight Fortune 500 companies, which have added to the City s competitive advantage. Key Statistics Richmond s population has been increasing consistently since 2010, at an average pace of 1.5% per year. Since 2008, the City s population has grown 10.01%. New residents create new jobs and fill others, which helps to improve Richmond s tax base and the ability of the City to provide services. Richmond s unemployment rate has been declining steadily in the recovery years following the 2008 Great Recession. In that time, it has generally moved alongside the state of Virginia. However, in 2017, Richmond experienced an uptick in unemployment for the first time in almost 10 years. The City s total taxable assessed property value includes residential, commercial, and personal property, and machinery and tools. Richmond s total value of all these components has been rising steadily since This is an important indicator of the City s financial health because property taxes represent the largest source of tax revenues that the City collects. These revenues are used to provide social services, public safety, and they are vital to the daily operation of the City government. Source: Comprehensive Annual Financial Report (CAFR), Statistical Section 6 225, , , , ,000 12% 10% 8% 6% 4% 2% $25.0B $24.5B $24.0B $23.5B $23.0B $22.5B $22.0B $21.5B Population 202.9k 204.5k 204.2k Unemployment Rate $22.7B $23.1B $23.3B 205.5k $22.1B $21.9B$21.6B $21.6B $22.2B $23.4B $24.6B $21.0B % City 210.3k 214.1k State Total Taxable Assessed Property Value 220.3k 217.9k 223.2k 200,

9 FINANCIAL STATEMENTS Revenues for FY2017 exceeded FY2016 by $11.1 million, continuing the increasing trend in revenue collections from The increase was largely due to increased city tax collections and service charges. There were modest declines in utility payments and fines and forfeitures from the previous year, but these were offset by a higher level of transfers from the state and federal governments. FY2017 expenditures slightly decreased compared to FY2016, however notable increases include expenditures on education and payments to the debt service fund (included within Transfers Out to Other Funds). $713.8M $720M $702.7M $700M $688.4M $681.5M $694.4M $692.8M $680M $660M $640M $645.2M $646.5M $644.5M $668.3M $620M Revenues Expenditures Revenues, Dollars In Source Real Estate Sales-1% Personal Property Prepared Food All Other Taxes Licenses, Permits, Privilege Fees Intergovernmental Other Non-Tax Sources Transfers In from Other Funds Total 2013 $213,234,953 30,549,022 47,234,956 28,320, ,178,548 42,404,133 99,250,278 68,933,522 2,415,080 $646,521, $216,006,348 30,944,459 44,753,528 30,444, ,719,927 38,093, ,011,215 63,167,544 6,402,731 $644,543, $223,491,278 32,567,648 49,260,306 31,686, ,706,444 39,353, ,386,999 65,979,666 2,832,700 $668,265, $234,445,036 33,773,371 48,531,320 35,455, ,125,628 39,552, ,852,944 73,421,381 5,541,472 $702,698, $234,294,879 34,176,816 57,603,912 35,605, ,607,451 37,131, ,755,449 75,008,237 6,570,562 $713,754, $65,963, ,136,886 61,458,292 59,663,811 22,465, ,267,395 44,145,152 66,123,692 $645,224, $79,151, ,366,074 59,848,392 63,794,935 23,996, ,170,840 52,352,720 64,768,637 $688,449, $74,901, ,127,937 58,493,804 61,513,205 20,566, ,833,592 54,638,951 69,344,808 $694,420, $70,094, ,096,983 58,524,451 60,983,560 21,408, ,983,321 46,901,510 73,837,249 $692,830,191 Expenditures, Dollars Out Source General Government Public Safety and Judiciary Highways, Streets, Sanitation Human Services Culture and Recreation Education Non-Departmental Transfers Out to Other Funds Total 2013 $82,139, ,199,681 59,510,280 60,141,301 20,692, ,205,535 72,870,264 64,743,352 $681,503,130 Source: Comprehensive Annual Financial Report (CAFR), Exhibit D 7

10 GENERAL FUND REVENUES Licenses, Permits, and Privilege Fees All Other Taxes 5.20% - $37,131, % - $246,993,542 This category includes vehicle registration fees, title transfers, and business licenses. The majority of this revenue source is from business and professional licenses, which brought in $29,662,822 in fiscal year This represents 21 other taxes collected by the City. This number includes, but is not limited to, Sales, Personal Property, Prepared Food, Lodging, and Admissions Tax. Intergovernmental 15.94% - $113,755,449 Real Estate Tax These are federal and state transfers to the City. They include funding for Block Grants, street maintenance, and support for the Department of Social Services % - $234,294,879 $713,754,113 These are taxes collected for residential and commercial properties located within the City. Properties are taxed at $1.20 per $100 of assessed value. Service Charges 4.31% - $30,737,660 Transfer In From Other Funds This category includes revenues such as inspection fees, refuse collection fees, and commercial dumping fees. Fines and Forfeitures 0.92% - $6,586,811 One of the smallest revenue categories, it includes court fines and library fines. 0.92% - $6,570,562 Utility Payments Miscellaneous Revenues 4.37% - $31,162, % - $6,521,672 This category includes payments from the Department of Utilities to the City, and payments in lieu of taxes (PILOT payments). Includes other payments to the general fund, including reimbursements on longterm debt interest. Source: 2017 Comprehensive Annual Financial Report (CAFR), Exhibit H 8 These are payments to the general fund from other funds within the City, such as the parking enterprise fund and Department of Public Utilities.

11 GENERAL FUND EXPENDITURES Transfers Out From Other Funds 10.66% - $73,837,249 General Government These are payments to other funds within the City, such as the Debt Service Fund. It also includes payments to other government entities % - $70,094,798 Non-Departmental These are the costs of managing the government. This includes departments such as Human Resources, Information Technology, and Finance. 6.77% - $46,901,510 Other costs related to City operations, such as GRTC and the City s retiree health system. Public Safety and Judiciary 26.57% - $184,096,983 $692,830,191 Education 25.54% - $176,983,321 This represents the City s funding contribution to Richmond Public Schools. These are costs associated with funding the Richmond Police Department, emergency firefighting services, animal control, and the Sheriff s Office. Highways, Streets, Sanitation and Refuse Culture and Recreation Human Services 3.09% - $21,408, % - $60,983,560 These are costs associated with operating Richmond Public Libraries and maintaining Recreational and Community facilities. This category includes costs associated with supporting social services, administering the health department, and providing youth justice services. 8.45% - $58,524,451 Source: 2017 Comprehensive Annual Financial Report (CAFR), Exhibit H 9 This category is devoted to Richmond s Department of Public Works, which is responsible for trash disposal and road maintenance.

12 STATEMENT OF NET POSITION This Statement of Net Position compares our assets with our liabilities for Richmond at the end of FY2017. The City s fiscal year is 12 months, beginning on July 1 and ending on June 30. The City s financial activities are made up of two broad categories: governmental and business-type activities. Governmental activities include police and fire safety, highways and streets, parks and recreations, sanitation, and health and social services. Business-type activities include Richmond Gas Works, water and stormwater management, and parking. $3.5B $3.0B $2.5B $2.0B $1.5B $1.0B $0.5B $0.0B $3.32B $2.94B $2.99B $3.06B $2.74B $2.31B $2.30B $2.44B $1.96B $1.93B $0.79B $1.01B $0.68B $0.75B $0.87B Assets Liabilities Net Position Richmond current assets include cash, investments, and receivables. Non-current assets include land, buildings, and infrastructure, such as City Hall, parks, and many public roads. Richmond current liabilities are the debt we can pay off in one year or less, such as accounts payable and payroll. Non-current liabilities include long-term debt obligations, generally those associated with buildings and city infrastructure construction and improvements. The difference between these assets and liabilities is called net position. Positive net asset position is a measure of financial stability, and is a common measure for both governmental and business-type activities when they are reported together. This allows all activities to be combined as government-wide totals. Current and Other Assets Total Current Assets $358,642,197 $458,129,870 $500,973,114 $523,874,267 $553,673,574 Total Non-Current Assets 2,384,779,927 2,458,288,158 2,415,245,773 2,438,522,418 2,625,853,293 Total Deferred Outflows of Resources 0 26,153,864 75,441,193 95,644, ,480,490 Total Assets and Deferred Outflows $2,743,422,124 $2,942,571,892 $2,991,660,080 $3,058,041,016 $3,316,007,357 Current and Long-Term Liabilities Total Current Liabilities $355,084,493 $320,620,338 $268,367,134 $291,165,922 $371,050,786 Total Non-Current Liabilities 1,602,318,865 1,596,622,004 1,930,767,705 1,920,631,050 1,998,869,620 Total Deferred Inflows of Resources 0 11,927, ,226,644 92,406,535 74,036,072 Total Liabilities and Deferred Inflows $1,957,403,358 $1,929,169,943 $2,307,361,483 $2,304,203,507 $2,443,956,478 Net Position Net Investment in Capital Assets $751,903,169 $822,246,628 $809,208,092 $822,735,154 $861,512,190 Restricted 21,822,862 21,269,101 4,292,533 19,843,817 54,904,539 Unrestricted 12,292, ,886, ,202,028-88,741,462-44,365,850 Total Net Position $786,018,766 $1,013,401,949 $684,298,597 $753,837,509 $872,050,879 Source: Comprehensive Annual Financial Report (CAFR), Exhibit A 10

13 UNASSIGNED FUND BALANCE The Fund Balance is the difference between what the City owns (assets) and what the City owes (liabilities) in a single fund. There are several reasons that maintaining a strongly positive fund balance is important. First, a fund balance provides for unforeseen expenses or emergencies, including severe weather and storm conditions. Second, fund balances reduce the need for emergency short-term borrowing for operations by providing a savings account to ensure sufficient cash flows. This is quite important for City finances due to the timing of tax receipts. Since over half of our revenue is collected at the end of our budget year, having a fund balance can provide the cash flow needed prior to the receipt of taxes. Thirdly, a strong fund balance position enhances financial stability, which is a requirement in improving our bond rating from the three rating agencies: Did you know? There are five possible fund balance classifications for the General Fund. Non-spendable: Amounts that cannot be spent because they are not in spendable form, such as prepaids, or are required to remain intact legally or contractually. Restricted: Amounts constrained for a specific purpose by external parties, constitutional provisions, or legislation. Committed: Amounts constrained to specific purposes by a government, they cannot be used for any other purposes unless council action is taken. Assigned: Amounts a government intends to use for a specific purpose. Unassigned: Amounts available for any purpose. Source: Comprehensive Annual Financial Report (CAFR), Exhibit C Standard & Poor s, Moody s, and Fitch. Improving our bond rating allows the City of Richmond to borrow capital at lower interest rates, saving on debt issuance costs, and total repayments. The City s main operating fund is the General Fund, which accounts for all revenues and expenditures associated with the general operations of the City. The main revenue generators are real estate taxes, sales tax, personal property taxes, and food taxes. The main expenditures include Public Safety/ Judiciary, Education, and Highways and Sanitation. The unassigned fund balance represents monies available for any purpose, as defined in the Fund Balance Types on this page. The Government Financial Officers Association (GFOA) recommends a minimum unassigned balance of at least two months of general fund operating revenues. For the City of Richmond, this calculates to approximately $117.9 million, based on the general fund revenue actuals for FY2017. As of June 30, 2017, the end of FY2017, the unassigned fund balance was $107.7 million. This represents an increase of over $9.5 million from the previous fiscal year balance of $98.2 million. City Management and City Council remain committed to retaining a healthy fund balance and working toward a higher bond rating. 11 $120M $100M $80M $60M $40M $20M $0M $75.0M $80.4M$85.0M $72.9M $59.4M $64.1M $47.6M $48.6M $98.2M $107.7M

14 CREDIT RATINGS Please see the below table of credit ratings of the three major national agencies: Moody s Investors Services, S&P Global Inc., and Fitch Ratings as of June Bond Program Moody's S&P Global Fitch Ratings General Obligation Aa2 AA+ AA+ Public Utility Revenue Aa2 AA AA Outstanding Debt Richmond s debt structure includes general obligation debt and revenue debt. General obligation debt is backed by the full-faith and credit of the City. Virginia statutes limit general obligation outstanding debt to 10% of a local government s taxable assessed valuation of real property. The City s general obligation debt that applies to the debt limit is $853,685,097, which is 39.53% of assessed valuation and is significantly less than the current calculated statutory debt limit of $2,159,577,000. The City has in place stricter policies for responsible handling of our debt. Revenue debt is supported by income operations, such as utility revenues. Lastly, the City also maintains a line of credit to provide interim short-term financing before the issuance of long-term debt. $2,000M $1,800M $1,600M $1,400M $1,200M $1,000M Governmental Activities General Obligation Bonds $513,480,544 $689,979,799 $693,952,189 $712,457,290 $671,852,063 Line of Credit 95,855,970 70,000, ,000,000 95,000,000 Total $609,336,514 $759,979,799 $693,952,189 $717,457,290 $766,852,063 $800M $600M $400M $1.53B 916.8M 893.6M 930.1M 609.3M $1.65B $1.62B $1.6B 760.0M 887.3M 694.0M 717.5M $1.75B 979.0M 766.9M Governmental Business-Type Total Debt Business-Type Activities General Obligation Bonds $142,592,288 $126,536,288 $178,294,162 $155,367,649 $130,454,819 Revenue Bonds 774,224, ,086, ,847, ,884, ,558,625 Total $916,817,126 $893,623,044 $930,141,177 $887,252,507 $979,013,444 Total Outstanding Debt $1,526,153,640 $1,653,602,843 $1,624,093,366 $1,604,709,797 $1,745,865,507 Source: Comprehensive Annual Financial Report (CAFR), Note 7 Obligations 12

15 DEBT SERVICE FUND The Debt Service Fund shows the transactions that account for the repayment of debt. The fund shows the principal and interest payments the city makes by debt type, as well as categories of projects financed. For the General Government, the majority of bonds issued are General Obligation Bonds. These bonds are issued with the backing of the City s credit and taxing power. In other words, these bonds are issued with the understanding that the City will be able to pay back this debt through taxation or increased revenues. Projects that are funded with City debt include: the Justice Center, Transportation Projects, School Capital Projects, and many other General Government Projects. Since 2013, the total principal and interest paid has risen from $57,265,184 to $64,081,948, largely due to increased spending on capital projects, such as the new Justice Center and four new schools. In 2017, $50,941,220, or 79.49% of general obligation bond principal and interest payments were dedicated to general government projects, school capital improvement projects, and transportation projects. Principal and interest payments found within Other Debt Instruments include HUD Section 108 Notes and the Leigh Street Project. $91.7M $100M $90M $80M $70M $61.3M $57.3M $60M $50M $37.7M $40M $37.1M $64.1M $64.1M $55.1M $35.1M $31.0M $30M $20M $19.5M $10M $24.2M $24.1M $27.6M $28.5M $0M 2013 Principal Payments Interest Payments Total Payments Principal Payments General Obligation Bonds Other Debt Instruments Other Payments Total Principal Payments 2013 $34,564,096 2,040,560 1,143,421 $37,748, $36,569, ,000 0 $37,129, $29,970,730 1,070,000 0 $31,040, $63,613, ,000 0 $64,113, $34,629, ,000 0 $35,149,119 Interest Payments General Obligation Bonds Other Debt Instruments Interest on Short-Term Debt Total Interest Payments $19,251,534 31, ,659 $19,517,107 $23,882,294 20, ,799 $24,157,032 $23,764,968 7, ,078 $24,077,465 $27,399, , ,335 $27,633,704 $27,680, , ,828 $28,505,952 $0 $0 $0 $0 426,877 $57,265,184 $61,286,076 $55,118,195 $91,746,712 $64,081,948 Cost of Issuance Expenses Total Principal and Interest Payments Source: Comprehensive Annual Financial Report (CAFR), Exhibit I-5; CAFR, Exhibit I-4 13

16 CAPITAL ASSETS Assets can be defined as items the City owns that will provide a benefit in the future. Specifically, the City s capital assets are owned primarily for their contribution to the quality of the community. Examples of this include a parcel of land that is owned and used as a park (governmental activity), or a public parking garage that charges for permit parking (business-type activity). The City s capital assets are assigned as either assets associated with the governmental activities or as assets associated with businesstype activities. Governmental Activities Business-Type Activities Total Capital Assets Not Being Depreciated (millions $) Land and Land Improvements $96.6 $96.6 $30.9 $30.9 $127.5 $127.5 Construction In Progress Works of Art / Historical Treasures Total Assets Not Being Depreciated $254.2 $217.2 $105.2 $132.9 $359.4 $350.1 Capital Assets Being Depreciated (millions $) Infrastructure $889.6 $886.8 $0.0 $0.0 $889.6 $886.8 Buildings and Structures , , , ,697.8 Equipment and Other Assets Improvements Other Than Buildings Total Other Assets $1,892.1 $1,832.4 $2,046.1 $1,929.9 $3,938.2 $3,762.3 Less Accumulated Depreciation For (millions $) Infrastructure $570.9 $549.5 $0.0 $0.0 $570.9 $549.5 Buildings and Structures , ,095.1 Equipment and Other Assets Improvements Other Than Buildings Total Accumulated Depreciation $1,036.8 $991.7 $825.9 $769.2 $1,862.7 $1,760.9 Total Capital Assets Being Depreciated, Net $855.3 $840.7 $1,220.2 $1,160.7 $2,075.5 $2,001.4 Total Capital Assets, Net $1,109.5 $1,057.9 $1,325.4 $1,293.6 $2,434.9 $2,351.5 The Department of Public Utilities spent $93.4 million during the fiscal year to expand, upgrade, and renew its infrastructure. Richmond Gas Works invested approximately $12.9 million to support its expanding market base and $15.1 million in upgrades to existing infrastructure. The Water Utility invested approximately $25.2 million in upgrades to existing infrastructure including $10.7 million of investments in major plant improvements. The Wastewater Utility invested approximately $35.9 million in upgrades to existing infrastructure, of which $2.0 million was spent on major plant improvements. The Stormwater Utility and Electric Utility invested $3.4 million and $1 million respectively to upgrade their existing infrastructure. Source: 2017 Comprehensive Annual Financial Report (CAFR), Note 6 Capital Assets 14

17 CAPITAL PROJECTS FUND The Capital Projects Fund shows the transactions that account for the building, restoration, and purchasing of capital assets. Examples of such assets include roads, vehicles, machinery, park facilities, and buildings. These projects are typically multiyear. The funding sources for these projects can come from a variety of sources. These include: General Obligation (City) Debt, City Cash Funding, Community Development Block Grant (CDBG) Funds, and other Federal and State sources. The City s Capital Projects cover areas including City Facilities, Education, Public Safety, Transportation, Economic and Community Development, and Culture and Recreation. Revenues Intergovernmental Revenues $7,129,383 $6,298,697 $8,635,077 $71,935,369 $33,374,740 Investment Earnings 72, , , ,573 3,041,228 Miscellaneous Revenues 477, , Total Revenues $7,678,770 $6,806,858 $9,304,894 $72,064,942 $36,415,968 Expenditures City Facility Maintenance & Improvements $22,990,433 $5,873,208 $6,034,710 $5,174,869 $3,918,681 Culture & Recreation 4,141,048 16,791,179 10,196,338 7,197,828 5,598,987 Economic & Community Development 16,454,394 17,158,124 13,553,024 54,016,975 44,225,576 Education 57,387,506 54,253,725 28,502,135 12,602,667 10,094,490 Public Safety 60,655,794 34,747,370 15,292,138 3,636,079 8,325,698 Transportation 16,104,250 24,331,728 32,583,445 30,107,360 21,681,485 City Equipment & Other Infrastructure 2,213,246 97, ,721 3,239,454 4,034,369 Debt Issuance Cost 0 738,870 1,324, , ,836 Total Expenditures $179,946,671 $153,991,800 $107,863,258 $116,785,126 $98,009,122 Deficiency of Revenues Under Expenditures $-172,267,901 $-147,184,942 $-98,558,364 $-44,720,184 $-61,593,154 Other Financing Sources & Special Items Proceeds From Issuance of GO Bonds $0 $263,218,870 $40,000,000 $94,240,683 $90,000,000 Contributed Capital 36, Transfers In From Other Funds 4,600, ,313, Transfers Out To Other Funds ,756,397 0 Payments to Escrow Agent 0-95,855, Gain on Sale of Land 485, Total Other Financing Sources & Special Items $5,121,487 $167,362,900 $43,313,234 $61,484,286 $90,000,000 Net Change in Fund Balance $-167,146,414 $20,177,958 $-55,245,130 $16,764,102 $28,406,846 Source: Comprehensive Annual Financial Report (CAFR), Exhibit I-4; CAFR, Exhibit I-3 15

18 CONTACT US Assessor's Office Office of the City Attorney Office of the City Auditor Department of Budget Richmond City Council Community Assisted Public Safety Department of Finance Office of the Inspector General Human Resources Department of Justice Services Mayor's Office Minority Business Development Office of Multicultural Affairs Parks, Recreation & Community Facilities Procurement Services Department of Public Utilities Department of Public Works Registrar's Office (Voter Registration) Sheriff's Office Department of Social Services Special Events / Film Coordination Office of Community Wealth Building Directory information retrieved from Comments or Questions? Do you like this report? Did you find it informative? What other information would you like to see included in this report? Please let us know by contacting the Finance Department at or by ing us at PAFR@richmondgov.com. More Information The information in this report is primarily derived from the audited financial statements found within Richmond s 2017 Comprehensive Annual Financial Report (CAFR). The CAFR is our City s formal annual report which conforms to Generally Accepted Accounting Principles (GAAP). It includes detailed information on individual funds, and full disclosure of financial and non-financial material events. Unlike the CAFR, the Popular Annual Financial Report (PAFR) is not an audited document and does not contain the level of detail found within the CAFR. This report is primarily a summarized version of the governmental funds, and aims to highlight the overall financial condition of the City. Since 1991, the Government Finance Officers Association (GFOA) has been promoting the preparation and distribution of high quality Popular Annual Financial Reports. As part of that effort, GFOA administers the Popular Annual Financial Reporting Program each year, specifically designed to encourage state and local governments to create high quality popular annual reports. Over 140 governments in the United States and Canada participate in the program each year, and Richmond is proud to participate for the first time this year. 16

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20 Depar tm ent of Fi nance 900 E. Broad St., 10th Fl oor Richm ond, VA richm ondgov.c om P r i n t e d b y C i t y P r i n t i n g S e r v i c e s D e p a r t m e n t o f I n f o r m a t i o n T e c h n o l o g y