Citizens Financial. Summary

Transcription

1 Citizens Financial City of Boise Idaho Summary Popular Annual Financial Report For Fiscal Year Ended September 30, 2008

2 FY 2008 PAFR Greeting For the third consecutive year, Boise City s Financial Services Division has prepared this award-winning popular form of the City s Comprehensive Annual Financial Report, often referred to as the CAFR. Termed a PAFR, or Popular Annual Financial Report, our goal continues to be informing citizens and other interested parties of financial and other significant information relating to City operations in a concise, easy-to-read format. In each edition, we ve endeavored to compress large volumes of not-easily understood financial, accounting and budgetary information into the simplified pages of this pamphlet. Much of the financial information in this report is borrowed directly from Boise City s FY 2008 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 (EideBailly) to provide reasonable assurance to the Mayor, the City Council, the financial community and citizensat-large that these financial statements are free of material misstatement. 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, 2008 are fairly presented and in conformity with GAAP. This opinion and accompanying financial statements will be presented in depth by officials of EideBailly to the City s Audit Committee in late March. Subsequently, the audit report is presented to the Mayor and City Council as part of a regular Council Work Session agenda item. The PAFR is not meant to supplant the CAFR. It is intended as a supplement for an Executive-Summary-level briefing on City services and the overall financial condition of the City. For a complete review of the City s financial status for the recently concluded fiscal year, our full FY 2008 CAFR and FY 2009 Budget documents can be found on the City s website, or copies may be 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 documents. John E. (Jef) Faw Director of Finance and Administration Chief Financial Officer

3 Recent Recognition of the City of Boise 2nd Best Place for Business and Careers in 2008 Forbes Magazine 4th 5th Best place to live, work and play Kiplinger Personal Finance May 2008 Best city for low carbon footprint Brookings Institution May th Top 10 Up-And-Coming Tech Cities in 2008 Forbes Magazine One of the Nation s 100 Best Communities for Young People Finalist National League of Cities and CH2M HILL 2008 Awards for Municipal Excellence for the Charitable Assistance to Community s Homeless (CATCH) program One of 8 cities selected. 3 City Achievement Awards from the Association of Idaho Cities (AIC) for: Boise River Safety Project Retail Crime Interdiction Unit Downtown Boise Task Force Popular Annual Financial Report On the City of Boise For Citizens

4 Economic Recap of Fiscal Year 2008 and Outlook for Fiscal Year 2009 T he economy has been and continues to be one of the most significant issues facing the City. The State of Idaho s November 2008 economic report reflected revenues down 1.2% from expectations, primarily in sales tax collections. October 2008 was a particularly harsh month, with gross sales tax collections (reflecting September retail activity) down 10.1% year over year. The State does not anticipate a quick recovery in sales tax collections given recent developments in the financial markets and current broader economic conditions. The Boise Metropolitan Statistical Area (MSA) unemployment rate for September 2008 was 5.3%, nearly double the rate experienced the previous September. The labor force declined by 2,300 individuals, while employment decreased by 9,800 jobs. In particular, the Boise employment trend has declined since April A year ago, it was difficult to find qualified applicants to fill positions; however, this year the applicant pool expanded. Hardest hit was the construction sector, with an 11% decline in the number of jobs. The Idaho Department of Labor predicts another loss of 2,500 jobs in this sector in the coming months. Ada County single family home sales continued to decline from their 2007 peak based on information through October 2008: total homes sold decreased 26.2%; the median price declined by 10.1%; the average price declined by 10.0%; and overall, residential spending dropped by 33.7%. Average days homes were on the market rose from 63 to 73 days. Of the homes sold year-to-date through October 2008, 25% were new and 75% were prior existing homes. The airport reported a 3% decrease in air passenger traffic compared to the same time last year. The trend indicates a continuing decline in the short term.

5 Fiscal Year 2008 People of Boise Mayor David Bieter City Council President David Eberle Airport Legal Council ProTem Maryanne Jordan Arts & History Finance & Administration Library Parks & Recreation Vernon L. Bisterfeldt Elaine Clegg Alan W. Shealy Jim Tibbs Boise Bits: Total Taxable Assessed Value: $19,233,556,534 Fire Planning & Development Services Office of Internal Audit Total City Debt: $28,788,000 Human Resources Police City Population: 214,490 Information Technology Public Works Ombudsman Our resourceful, resilient community is better positioned than most to emerge from this economic downturn stronger, smarter and more agile than before. The federal stimulus program is just one of many tools we re utilizing to ensure that, even during these challenging times, we continue to make Boise the most livable city in the country. David H. Bieter Mayor Mayor s quote from The Mayor s ememo, March 12, 2009 Subscribe to this publication at:

6 Executive Summary City of Boise FY2008, Quarterly Report 4 End-of-Year Report Boise Bits: Three Largest Boise City Property Tax Payers: Micron Technology Hewlett Packard Boise Mall, LLC Three Largest Boise City Employers: State of Idaho (Includes BSU) Micron Technology US Federal Govt. Fiscal Year 2008 was the first year of the City s 2008/2009 Two-Year Budget. A slower but sustainable economy marked the start of the fiscal year. However, by late spring the economy dramatically slowed, and the weakened economic state continued through the end of the fiscal year. Despite these conditions, the City was well prepared to meet the needs of its citizens and fully realized long-planned initiatives. Some of the highlights of FY 2008 include: On behalf of the City, the Mayor accepted donation of the 20-acre site of the future Alta Harris Community Park. The park will be the seventh riverside park named after prominent local women. In March, the City Council adopted an ordinance creating the Department of Arts and History. Previously, the Arts Commission had been a division of the Mayor s Office, and the City Historian s office was a partnership with Boise State University. The City established a trust to reduce and prevent homelessness. The interest income earned during FY 2008 will be used to begin implementation of the City s 10-Year Plan to Reduce and Prevent Chronic Homelessness during FY The Mayor s Office and the Division of Housing and Community Development made significant progress toward establishment of a Substance Abuse and Mental Health Crisis Center. Crime rates continued to decline in most categories, with overall serious crimes down more than 9 percent compared to Tenant improvements got under way at City Hall West, which will serve as public safety headquarters and citizen service center when it opens in Spring 2009.

7 Boise Bits: 1,592 Full-time Equivalent City Employees General Fund Availability and Recommendation Report (amounts expressed in $1,000s) Revised Budget Actual Difference Total Revenue 162, ,698 7,551 Total Expense 176, ,288 16,709 Net General Fund (14,748) (5,590) (9,158) Capital Fund Total Revenue 26,990 16,516 10,474 Total Expense 44,683 11,346 33,337 Net Capital Fund (17,693) 5,170 (22,863) Total Net Operating Funds (420) Combined change in undesignated fund balance 3,805 Available for Allocation from FY 2008 End of Year 3,385 Item Amount General Fund Cash Flow Reserve 800 Adjustment to Rebudget Amount 31 Capital Funding for Projects 2,554 Total Allocation Amount 3,385

8 Governmental activities in FY 2008 (please note: amounts are expressed in $1,000s) Governmental Activities General governmental activities supported by the General, Special Revenue Community Development, Permanent and Debt Service Funds. Business-type Activities Airport, Sewer, Solid Waste, Geothermal, Parking Garage, Municipal Irrigation and Housing Rehabilitation Primary Government The combination of all Governmental Activities and Business Activities. Governmental activities in FY 2008 Governmental activities in FY 2008 increased the City s net assets by $340 accounting for 2 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 $277. General revenues increased by $3,454, mostly consisting of a $4,648 increase in property tax revenue. Program revenues decreased by $2,752, primarily due to a decrease of $2,649 in capital grants and contributions and a decrease of $1,543 in operating grants and contributions. Charges for services increased by $1,440 primarily due to internal fees charged to City business activities. Interest earned (Other) decreased by $1,597 due to decreasing investment balances and lower rates of return. Expenses increased by $18,967, consisting of increases in personnel costs for Police ($4,001), Fire ($2,125), Public Works ($989) and Library ($883). Debt service expense increased ($4,849) primarily due to paying off a bond before it was due. The present value of the payment was less than the future value of all the remaining payments. Business-type activities in FY 2008 Business-type activities in FY 2008 increased the City s net assets by $15,156, accounting for 98 percent of the total growth in the government s net assets. Key elements of the increase are as follows: Revenues decreased by $2,921, the difference mostly attributed to a decrease in capital grants and contributions by $7,274 offset by increases in charge for services of $4,179 and operating grants and contributions of $1,211. The decrease in capital grants was mostly due to sewer having $4,631 and airport having $2,164 less in capital grant funding due to complete projects. The offsetting increase from solid waste of $3,801 was due to increased rates for service.

9 Expenses increased by $5,370. The increase was attributable to the Solid Waste Fund ($3,083) primarily due to increased landfill costs ($2,687). Sewer costs increased $2,698 due to several factors. The largest was in FY 2007 the warehouse inventory was booked for the first time resulting in a decrease in FY 2007 expenses of $1,013 due to the buildup from prior years. In FY 2008, when the inventory was adjusted to the physical count, a small increase was experienced. However, this resulted in a much smaller credit to expenses causing a net increase in expenses of $919. In addition, Planning & Design increased $753 due to current projects while personnel costs grew $640. Boise Bits: 8 historic districts Founded 1863; Incorporated 1864 City of Boise's Net Assets Governmental Activities Business Activities Total Current and other assets $ 192,937 $ 187,089 $ 97,639 $ 88,661 $ 290,576 $ 275,750 Capital assets 166, , , , , ,163 Total assets 359, , , , , ,913 Long-term liabilities outstanding 30,507 32,866 70,553 74, , ,625 Other liabilities 119, ,123 14,004 15, , ,582 Total liabilities 150, ,989 84,557 90, , ,207 Net assets: Invested in capital assets, net of related debt 162, , , , , ,116 Restricted 21,076 22,086 24,060 17,951 45,136 40,037 Unrestricted 25,584 28,334 62,467 64,219 88,051 92,553 Total net assets $ 209,269 $ 208,929 $ 460,855 $ 445,777 $ 670,124 $ 654,706 Net assets serve as a useful indicator of a government s financial position. At September 30, 2008, the City s assets exceeded liabilities by $670,124. By far, the larger portion of the City s net assets (80 percent) reflect its investment in capital assets, less any related outstanding debt used to acquire those assets. Boise Bits: 19 Neighborhood Reinvestment project grants awarded 1.21 Ratio of interest earned vs. interest expense

10 City of Boise Statement of Activities For the Fiscal Year Ended September 30, 2008 Governmental Activities Business-type Activities Primary Government Revenues Property taxes & franchises 100,112 95, ,112 95,061 Investments & gain on sale 2,975 4,572 3,343 4,380 6,318 8,952 Charges for services 32,437 30,997 75,684 71, , ,502 Grants & contributions 23,322 27,514 26,171 32,234 49,493 59,748 Total Revenues 158, , , , , ,263 Expenditures General government $27,997 22,019 27,997 22,019 Fire 35,364 31,644 35,364 31,644 Police 45,958 40,340 45,958 40,340 Parks and Recreation 22,624 21,199 22,624 21,199 Culture 9,002 7,333 9,002 7,333 Community service 14,437 13,758 14,437 13,758 Community Development 1,384 1,437 1,384 1,437 Interest and fiscal charges 1,803 1,872 1,803 1,872 Airport 32,829 32,880 32,829 32,880 Sewer 30,297 27,599 30,297 27,599 Solid waste 23,728 20,203 23,728 20,203 Other business-type 3,125 3,927 3,125 3,927 Total Expenditures 158, ,602 89,979 84, , ,211 Other Items Interfund transfers (63) (24) Total Other Items (63) (24) Net Assets Change in net assets ,566 15,156 23,486 15,496 42,052 Beginning net assets 208, , , , , ,576 Ending Net Assets 209, , , , , ,628

11 2008 Revenues by Source - Goverment Activities Franchise fees 5% Other 2% Charges for services 20% Operating grants and contributions 13% Property taxes 58% Capital grants and contributions 2% 2008 Expenditures by Function 10% 1% 11% General Government Fire 12% 14% Police Parks and Recreation Culture Community Service Community Development 13% Interest and fiscal charges Airport 1% 18% Sewer Solid waste 1% 6% 4% 9% Other Business-type

12 Major accomplishments by Departments Parks and Recreation with the Mayor s Council on Children and Youth has launched school-based community centers at Morley Nelson and Grace Jordan elementary schools; a Mobile Recreation Unit providing after-school programming for children; and a comprehensive youth and nutrition education program. Planning and Development Services evaluated customer satisfaction with a customer survey 86% of respondents rated their experience as satisfied or very satisfied. This is an increase from 72.6% in Library opened two new full-service branch libraries in Collister and Hillcrest Shopping Centers. The new locations have a combined average of over 24,000 visitors and over 30,000 items borrowed each month. The Legal Department implemented JustWare to manage criminal court cases. This system facilitates tracking of files and case status, compilation of statistics, and online review of police audio recordings by prosecutors and defense attorneys while maintaining the security of the files. Housing and Community Development loan programs assisted 51 families in affordable home ownership and 30 families in making necessary repairs to their homes. The Fire Department dealt with the tragic Oregon Trail Community fire destroying ten houses and damaging nine others with one fatality. The Fire Department was able to contain this fire fed by 50 mph winds by pulling in and coordinating all the City Fire and Police resources as well as fire fighting resources from the BLM and surrounding Treasure Valley Communities. The teamwork involved prevented the fire from doing much more damage.

13 The Public Works Department completed the Boise WaterShed Environmental Education Center. The WaterShed is dedicated to teaching school-aged children about preserving and conserving water for future generations. The Department of Finance and Administration created the Fleet Services Division. This division was able to centralize and begin to right size the City s fleet of vehicles resulting in 100 older and/or underused vehicles being declared surplus and sent to auction. Boise Bits: Average fire response time: 4.20 minutes 129 miles of maintained trails

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 2009) What this means for 2009: Boise Bits: 5500 participants in art programs Annual Library circulation: 1,694,089 Homeowners exemption for 2009 is the lower of $104,471 or 50% of the assessed value of the home. A home with $200,000 assessed value would have a taxable basis of $100,000. This would result in a Boise City Property Tax of $ ,649,491 Airport enplanements

15 Boise Bits: 10,762 streetlights 685 miles of sewer pipe 8,340 tons recycling material diverted from landfill Cover Photo Boise Watershed Environmental Education Center The interpretive/education center, W. Joplin Road, is located at the West Boise Wastewater Treatment Facility. The Boise Watershed was designed and constructed using green building practices and opened in May 2008 to promote water stewardship by teaching people of all ages how to protect and conserve our precious resource for future generations. Created through a unique partnership of City funding for building construction and corporate/citizen funding for exhibits, Boise Watershed empowers people to take action by learning how to use water wisely and by understanding how crucial their behavior is to protecting the water quality in our region. The hands-on exhibits use sight, sound and even smell to engage the visitor in learning about water. Boise Watershed can be contacted at or visiting EnvironmentalEducation.org for Education/Volunteer/Donation opportunities. All other photos are courtesy Boise Convention and Visitors Bureau unless otherwise noted. 150 N. Capitol Boulevard P.O. Box 500 Boise, Idaho Please refer to the City of Boise CAFR for additional statistics on the City.

16 BOISE Strategy Map ONE CITY, ONE TEAM START HERE It starts with a common vision we are all working to achieve. Everyone plays a key role in developing our vision, setting the standards, and finding the best solutions to making Boise the most livable city in the country. VISION: Making Boise the Most Livable City in the Country To accomplish our vision, we focus on four main goals. If each one of us commits to achieving these objectives, we will be successful. CITIZEN FOCUS AREAS:» Ensure a safe, healthy, livable community.» Be the leader for sustainable development and re-development.» Promote a strong and diverse local economy.» Foster an environment where learning, the arts, culture, and recreation thrive. We must work together as one city, one team. Then and only then, the goals of our citizens will be accomplished, and our vision will be realized. Operations Customer Focus» Provide efficient, effective, and accessible services» Assess citizen needs and deliver services accordingly» Engage citizens in decision-making Innovation» Deliver services through collaborative partnerships» Foster and reward creativity» Utilize best practices RUN THE BUSINESS» Utilize clear performance measures» Deliver core services» Work as one city From there, we set about running the business. These functions are the windows into our city the outward-facing municipal activities we pursue every day. The very essence of our organization, how we run the business is crucial to successfully serving our citizens. MANAGE FINANCIAL AND TECHNOLOGY RESOURCES Focus on Productivity» Align budget to highest priorities» Leverage technology to increase efficiency» Maximize asset investment Invest to Grow» Offer competitive rates and fees» Maintain bond rating» Link programmatic decisions to future financial reality A critical part of our framework includes managing our financial and information resources with prudence and effectiveness the very essentials that allow all city activities and actions to function and thrive. We strive for efficiency every step of the way. DEVELOP ORGANIZATIONAL CAPACITY» Integrate information management» Attract, develop, evaluate, and reward employees» Foster a learning environment Working from the building blocks of our values, we build the framework our organizational capacity. We create and foster an environment where people want to come to work, where people learn and grow, and where they are rewarded for their efforts. CITY VALUES Respect We embrace diversity and treat everyone with courtesy, equity, and fairness. Commitment Our employees are our most valuable asset and we are dedicated to attracting, retaining, and supporting the highest quality work force. Integrity We operate openly and hold the highest ethical standards. Collaboration We communicate, remain agile, and work as a team, and we partner with the community to solve problems. Boldness We are willing to make tough decisions, demonstrate agility, and focus on results. Responsibility We are accountable to the citizens of Boise and to each other. Everything comes down to our core values. They are the foundation of our city, the building blocks that guide our actions, and the pillars of every service we provide.