Citizens Financial. Summary

Transcription

1 Citizens Financial City of Boise Idaho Summary Popular Annual Financial Report For Fiscal Year Ended September 30, 2006

2 FY 2006 PAFR Greeting Much of the financial information in this brochure is based on material contained in Boise City s FY 2006 Comprehensive Annual Financial Report (CAFR). Under State law, this is prepared annually by City staff in accordance with Generally Accepted Accounting Principles or GAAP. The City s financial statements are then audited by an independent third-party professional accounting firm (Eide Bailly) to provide reasonable assurance to the Mayor, the City Council, the financial community and citizens-at-large that these financial statements are free of material misstatements. Based on the audit, the independent auditor concluded in an unqualified opinion (meaning no hesitation whatsoever) that the City of Boise s financial statements for the fiscal year ended September 30, 2006 are fairly presented and in conformity with GAAP. This opinion and accompanying financial statements were presented in depth by Eide Bailly to the City s Audit Committee in late February 2007, and subsequently to the Mayor and City Council in mid-march. For the first time, the City s Financial Services Department has prepared this popular form of the City s CAFR. Termed a PAFR or Popular Annual Financial Report, our goal is to inform citizens and other interested parties of financial and other significant information relating to City operations in a concise, easyto-read format. Hundreds of pages of recent financial and budgetary information was distilled into several simplified pages in this brochure. This report does not replace the CAFR. It is intended as a supplement for a quick-read on City services and its overall financial condition. For a complete review of the City s financial status for the recently concluded fiscal year, our full CAFR and FY 2006 Budget documents can be found on the City s website, or copies obtained from the Financial Services division. My staff and I will be pleased to respond to any questions on this publication, the CAFR and current budget document upon request. John E. (Jef) Faw Director of Finance and Administration Chief Financial Officer

3 This Popular Annual Financial Report (PAFR) is the first created by the City of Boise. It is a brief summary of the financial position of the City s Comprehensive Annual Financial Report (CAFR) as well as the Quarterly Financial Reports. The CAFR and Quarterly Reports provide greater detail of the City s finances while the purpose of the PAFR is to provide a brief overview. Both the PAFR and CAFR are available on the City website A hard copy of either report is available from the Department of Finance and Administration ( ). The Quarterly Financial Reports are also available on the City website. The PAFR is intended to be user friendly and encourage the public to become familiar with the financial state of the City. The City has high standards for financial accountability, a part of which is making easy-to-understand financial statements available to the citizens. Mike Middleton, Controller Popular Annual Financial Report On the City of Boise For the Citizens Recent Recognition of the City of Boise 2nd Best Place for Doing Business in 2005 Inc. Magazine 4th 4th Place for Business and Careers in 2006 Forbes Magazine Best Walking Cities in the U.S. Prevention Magazine April th Best Place to Live Money Magazine July th Top 20 most inventive towns Wall Street Journal, July 2006 Top 10 places for Outdoor Activities Sperling s Best Places, October 2006 Most successful and vibrant small city in North America Team Fredericton Comparable Cities Project, November 2005 A rejuvenated downtown and a budding arts community mean that after a day of rafting you don t have to turn in once the sun fades. New York Times, July 2006

4 Economic Recap of Fiscal Year 2006 The City of Boise was better able to meet its financial needs during FY 2006 than previous years largely due to strong economic activity as evidenced by employment growth, population migration into the City, low mortgage rates continuing to fuel construction, and relatively low inflation. Based on the October 2006 Idaho Employment report (reflecting August 2006 estimates), total Boise Metropolitan Statistical Area (MSA) employment grew 3.3 percent (adjusted) over this time last year, and the unemployment rate fell from 3.3 percent to 3.0 percent. The number of non-farm jobs grew by 7.9 percent compared to August As reported in the past few quarterly financial reports, finding skilled and qualified employees remains an issue. Registered nurses and welders are two of the highest demand occupations. The most interesting aspect of the qualified worker shortage, which may be part of the cause for the recent slowdown in the economy, is that average wages remain less than what they were at the end of Total construction value during FY 2006 increased 41 percent over FY 2005 significantly more than the 26 percent increase witnessed in FY 2005 over FY However, the number of construction permits remained nearly flat over the prior year. Compared to FY 2005, commercial construction increased 66 percent, single-family resident housing decreased 21 percent, and multi-family housing increased 20 percent. These growth rates were very strong, but less than those experienced in FY 2005, particularly for residential housing. In FY 2005, residential housing grew by 51 percent, while in FY 2006 it actually decreased by 21 percent. The average sale price of homes increased more than 29 percent by June 30, While the City s economy has benefited from the strong construction activity, there are signs that the construction and housing markets are slowing and returning to a more sustainable rate of growth. As of September 2006, total passenger traffic at Boise Airport increased 5 percent over the same time last year, representing more than 274,000 people passing through the Airport per month. Although this was a slower growth rate than last year s 11 percent, it is projected to be another record year.

5 People of Boise Mayor David Bieter City Council Arts Commission President Elaine Clegg Council ProTem David Eberle Airport Planning & Development Services Vernon L. Bisterfeldt Maryanne Jordan Alan W. Shealy Jim Tibbs Finance & Administration Fire Legal Library Ombudsman Human Resources Parks & Recreation Office of Internal Audit Information Technology Police Public Works My goal is nothing less than to make Boise the most livable city in the country. We accomplish that in many ways: by preserving our natural environment and the recreational opportunities it provides; by enhancing our economic vitality so we can continue to attract and provide livingwage jobs; and by protecting all of our neighborhoods so they remain safe, attractive places for families to live. David H. Bieter Mayor

6 Executive Summary City of Boise FY2006, QR4 End of Year Report Fiscal Year 2006 was the first year of the City s 2006/2007 Two-Year Budget and proved to be a remarkable year. The City benefited from the robust economy as evidenced by several new records, such as the number of air travelers, growth in commercial activity, zoo attendance and growth in ice skating programs. Some of the highlights of FY 2006 include: One-time funding allocations for such things as department turnback for one-time projects, and other one-time capital improvements, such as the construction of Morris Hill Park. Receipt of a significant donation by the Larry Williams family of 70 acres of land in Barber Valley for the future development of the Marianne Williams Park. Successful negotiations with Capital City Development Corporation for a new ladder truck to serve the downtown core. Establishment of an employee Wages and Benefits Team that made several recommendations to the Mayor and City Council for the FY 2007 Budget Update. Launch of a new on-line police reporting system for citizen traffic concerns. Bond election in February 2006 for construction of three new branch libraries. Although not sufficient to secure passage despite a 57 percent yes vote, it provided guidance for the Mayor and City Council for enhanced library services. Completion of the revised Employee Policy Handbook, after a long year of hard work. Host for the US Youth Soccer Far West Regional Championship, attracting 260 teams to the area. Update and adoption of the second year of the City s FY 2006/2007 Biennial Budget. In the midst of many achievements, departments were challenged to keep up with the demands of the stronger than anticipated growth.

7 General Fund Availability and Recommendation Report (amounts expressed in $1,000s) Revised Budget Actual Difference Total Revenue 134, ,860 (7,659) Total Expense 142, ,576 12,428 Net General Fund (7,803) 12,284 (20,087) Capital Fund Total Revenue 19,661 12,805 6,856 Total Expense 32,216 6,870 25,346 Net Capital Fund (12,555) 5,935 (18,490) Total Net Operating Funds 18,219 Less: Combined change in undesignated fund balance (8,627) Available for Allocation from FY 2006 End of Year 9,592 Item Amount Hollandale Fire Station 186 Data Center Conversion 254 Western States Sponsorship 25 Oracle License Renewal 350 City Hall Phone System Replacement 242 After-school Center Tenant Improvements 85 Employee Compensation 400 Department Turnback 428 Special Planning Projects/Studies 535 Capital Facilities 7,087 Total Allocation Amount 9,592

8 Governmental activities in FY 2006 (please note: amounts are expressed in $1,000s) Governmental activities in FY 2006 increased the City s net assets by $41,816 accounting for 69 percent of the total increases in net assets before transfers and special items growth were factored in. Key elements of this increase are as follows: Revenues exceeded expenses by $41,864. General revenues increased by $11,761, mostly consisting of a $7,134 increase in property tax revenue. Program revenues increased by $26,625, primarily due to an increase of $21,421 in capital grants and contributions and an increase of $4,047 in charges for services. Operating grants and contributions increased by $1,157. Expenses increased by $3,274, consisting of increases in personnel costs for Fire ($809) and Police ($635). An increase in Police of $2,500 was due to transfers out to support capital projects. An additional $223 was accrued as uncollected revenues for the FY 2006 Grove Street Parking Garage rebate. (This is in addition to the $235 for FY 2004 and $222 for FY 2005 that is owed but may not be collected.) Business-type activities in FY 2006 increased the City s net assets by $18,991, accounting for 31 percent of the total growth in the government s net assets. Key elements of the increase are as follows: Revenues increased by $2,738, the difference mostly attributed to increases in charge for services of $5,935. The increase in charge for services was mostly due to solid waste collection ($3,075 of which was from increased commercial receipts) and airport ($1,973 from increased usage resulting in increased parking revenues $746 and passenger facility charges $291 and increased car rental revenue $465.) The increase was offset by a decrease in capital grants and contributions of $3,421 (airport accounted for $2,979 of the decrease.)

9 Expenses increased by $4,228. The increase was attributable to the cost of operations at solid waste increasing $2,764 and sewer increasing $1,376. The increase in solid waste is due to increases in operations and maintenance for business ($1,741) and residential ($908) and apartments ($79). The increase at sewer is primarily due to capital projects and depreciation ($576 for capital projects, $463 for depreciation). Sewer personal services increased $101. City of Boise, Idaho Statement of Activities For the Fiscal Year Ended September 30, 2006 (amounts show n in $1,000s) Business-type Governmental Activies Activities Primary Government Assets Current and noncapital assets 177, ,952 84,989 77, , ,136 Capital assets 151, , , , , ,577 Total Assets 329, , , , , ,713 Liabilities Current liabilities 105, ,214 12,612 11, , ,713 Noncurrent liabilities 33,523 34,285 78,458 84, , ,943 Total Liabilities 139, ,499 91,070 96, , ,656 Net Assets Invested in capital assets, net of related debt 143, , , , , ,329 Restricted 17,884 16,300 16,699 12,177 34,583 28,477 Unrestricted 28,889 11,589 58,092 55,662 86,981 67,251 Total Net Assets 190, , , , , ,057 Net assets serve as a useful indicator of a government s financial position. At September 30, 2006, the City s assets exceeded liabilities by $611,864. By far, the largest portion of the City s net assets (83 percent) reflects its investment in capital assets, less any related outstanding debt used to acquire those assets.

10 City of Boise, Idaho Statement of Activities For the Fiscal Year Ended September 30, 2006 (amounts show n in $1,000s) Governmental Business-type Activies Activities Primary Government Revenues Property taxes & franchises 90,421 82,342 90,421 82,342 Investments & gain on sale 3,266 1,532 3,156 1,680 6,422 3,212 Charges for services 29,719 25,672 67,416 61,481 97,135 87,153 Grants and contributions 43,154 20,576 26,737 29,934 69,891 50,510 Total Revenues 166, ,122 97,309 93, , ,217 Expenditures General Government 16,217 17,634 16,217 17,634 Fire 31,063 30,057 31,063 30,057 Police 36,415 34,874 36,415 34,874 Parks and Recreation 19,155 18,092 19,155 18,092 Culture 7,266 6,798 7,266 6,798 Community Service 12,066 11,401 12,066 11,401 Community Development Interest and fiscal charges 1,929 1,999 1,929 1,999 Airport 28,622 27,414 28,622 27,414 Sew er 27,580 26,204 27,580 26,204 Solid Waste 18,971 16,207 18,971 16,207 Other Business-type 3,193 4,313 3,193 4,313 Total Expenditures 124, ,422 78,366 74, , ,560 Other Items Interfund transfers (48) 1, (1,664) - - Special Items (1,948) (589) - (2,537) Total Other Item s (48) (284) 48 (2,253) - (2,537) Net Assets Change in Net Assets 41,816 8,416 18,991 16,704 60,807 25,120 Beginning Net Assets 148, , , , , ,937 Ending Net Assets 190, , , , , ,057

11 2006 Revenues by Source Capital grants and contributions 18% Property taxes 32% Operating grants and contributions 8% Franchises 3% Charges for services 37% Investment earnings 2% 14% 14% 2006 Expenditures by Function 2% 8% 9% 15% 18% General Government Fire Police Parks and Recreation Culture Community Service & Development Interest and fiscal charges Airport Sewer Solid Waste 1% 6% 4% 9% Other Business-type

12 Major accomplishments by Departments Airport The Boise Airport worked with the Congressional Delegation to obtain Federal Aviation Administration (FAA) approval to install and fund the Category III approach lighting (the equipment that allows airlines to land in heavy fog with low visibility). The Catergory III should be installed in The City also reached an agreement with the FAA to begin construction on the new Air Traffic Control Tower in Finance and Administration The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Boise for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, This is the 11th consecutive year that the City of Boise has earned this distinction. In addition, the City also received the GFOA s Distinguished Budget Presentation Award for the biennial budget for FY2006/2007. Fire Four new engine chassis have been delivered to Boise Mobile Equipment. Delivery to the City is expected in early Human Resources The e-recruit system went live in FY This project allows applicants to apply for City positions online as well as streamlining the application review process. IT The City s first Blade Server system was configured and installed. The PeopleSoft Financials System was upgraded to version 8.8. Library The Library Facility Planning Committee and the Library Board of Trustees reviewed and endorsed a revised library branch proposal to submit for public review.

13 Mayor s Office In his annual State of the City address to the Boise Metro Chamber of Commerce, Mayor Bieter announced Project CATCH (Charitable Assistance To Community s Homeless), a program that enlists local religious congregations and businesses to provide permanent supportive housing for homeless families and children. At the time of the announcement, 17 local congregations and organizations had committed to assisting families through this program. Parks and Recreation Zoo Boise broke its all-time attendance record for the third year in a row, finishing the year with 270,761 visitors, up 4.5 percent over last year. The zoo also broke monthly attendance records for April, May, June, July, August and September. Police The Criminal Investigation Division cleared 11 bank robberies with the arrest of two unrelated bank robbery suspects. C.O.P.S. TV crews rode with patrol officers for 10 weeks. This will result in several episodes beginning this spring. Public Works The Owyhee Sewer District was dissolved effective September 30, The City now owns and operates the system serving 1,000 customers.

14 Recent Trends In Property Tax Rates And Homeowners Taxes Estimated Tax Rate Computation Boise City Tax-Supported Budget Amount Boise City Total Market Valuation = Tax Rate (in FY 2007) In FY 2007, the Boise City tax rate was estimated to drop by 4.2 percent from the previous fiscal year. Average Homeowner s Boise City Property Tax FY 2006 FY 2007 Market Value $250,000 $287,250 Up 14.9 percent Homeowners -$50,000 -$75,000 Exemption Down 50 percent Taxable Value $200,000 $212,250 Up 6.1 percent Boise City Tax Rate Down 4.2 percent Property Taxes $1,147 $1,166 Up $19 Up 1.6 percent

15 Cover Photo: This is a photo of the participants in the Main Street Mile for the Boise Fire Department s Recruit Academy team. The team ran the event in full protective gear with breathing apparatus and placed 1st. This is the largest recruit class in the history of the Boise Fire Department. All other photos are courtesy Boise Convention and Visitors Bureau.

16 City of Boise Strategy Map and Exhibit 2 - Strategy Map Balanced Scorecard VISION, MISSION AND VALUES Respect We embrace diversity and treat everyone with courtesy, equity, and fairness. Vision Statement: The City of Boise - a great place to live, learn, work, and play Mission Statement: We are a dynamic, Western city committed to providing exceptional municipal services and partnering to promote a healthy environment and a strong economy, ensuring Boise remains a safe and vibrant community. Integrity We operate openly and hold the highest ethical standards. Responsibility We are accountable to the citizens of Boise and to each other. Agility We are devoted to constant innovation and improvement in our services. City Values Boldness We are willing to make tough decisions, and we focus on results to ensure a healthy future for the city. Collaboration We communicate and work as a team, and we partner with the community to solve problems. Dedication We are proudly committed to providing outstanding customer service. Commitment Our employees are our most valuable asset, and we are dedicated to attracting, retaining, and supporting the highest quality work force. SERVE CITIZENS Ensure a safe, healthy, and livable community. Be the leader for sustainable development and redevelopment. Promote a strong and diverse local economy. Provide efficient, effective and accessible services. Foster environment where learning, the arts, culture, and recreation thrive. RUN THE BUSINESS Operations Provide continuous program performance feedback Increase fiscal acumen and accountability Focus on delivering Core Services Work as one city Customer Focus Educate customers on services Assess citizen needs Engage citizens in decision making Create meaningful performance measures Ensure services are delivered via customer perspective Innovation Deliver services through partnerships Foster creativity Learn from others Collaborate between Departments MANAGE FINANCIAL AND INFORMATION RESOURCES Focus on Productivity Invest to Grow Maintain bond rating Maximize asset investment Public private partnerships Competitive rates and fees Link programmatic decisions to future financial reality DEVELOP ORGANIZATIONAL CAPACITY Attract, Develop, Support and Reward Employees Integrate Information Management Foster a Learning Environment/Organization (plan, do, check, act, learn) Culture Leadership Alignment Teamwork In the winter and spring of 2005, the Mayor and City Council conducted an ambitious and thorough Strategic Planning process that established a Vision for the City, set a Mission Statement, and defined the City s key Values. A Strategy Map and Balanced Score Card were important outcomes of the first phase of this strategic update. In addition, the Mayor and Council identified several principal policy focus areas, and delineated initiatives, goals and objectives for each. In early fall 2006, Phase II of the City s Strategic planning initiative began in earnest The Strategy Map that was developed as part of the initial phase will be implemented in FY 2007 by two processes. A six-year business planning model will be developed by every department in the organization, creating an actionable road map to realize the strategic goals and initiatives. As well, a new leadership model for the Mayor and Council will be created that identifies clear roles and accountabilities for each. A change management process will enable the City s leaders to propel the implementation of department business plans and the attainment of its strategic objectives.