Comprehensive Annual Financial Report
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Comprehensive 2010 Annual Financial Report City of Provo, Utah For the Fiscal Year Ended June 30, 2010 Prepared by Provo City Finance Department Comprehensive Annual Financial Report City of Provo, Utah For the Fiscal Year Ended June 30, 20102009 Prepared by Provo City Finance Department PROVO CITY CORPORATION COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS Page Table of Contents INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 9 Organizational Structure 10 List of Elected & Staff Positions 12 FINANCIAL SECTION Independent Auditors' Report 15 Management’s Discussion and Analysis 17 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 27 Statement of Activities 28 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet 30 Reconciliation of the Balance Sheet to the Statement of Net Assets 31 Statement of Revenues, Expenditures, and Changes in Fund Balances 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 33 General Fund Budgetary Comparison Statement 34 Housing Consortium Budgetary Comparison Statement 35 Proprietary Fund Financial Statements Balance Sheet 36 Statement of Revenues, Expenses, and Changes in Net Assets 38 Statement of Cash Flows 40 Notes to the Financial Statements 43 Supplementary Information Other Governmental Funds Combining Balance Sheet 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 100 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Library 104 Arts Council 105 Winterfest 106 Commercial Rehab 107 Business Development Loans 108 Rental Rehab 109 CDBG 110 Housing Rehab 111 Tax Increment 112 Homebuyer Assistance 113 Special Purpose Grants 114 New Development 115 CNRCC 116 General CIP 117 Parks and Recreation CIP 118 Engineering CIP 119 Mountain Vista 120 Economic Development 121 Library Bond Retirement 122 Debt Service 123 Building Authority 124 Telecommunication Debt Service 125 Proprietary Funds Internal Service Funds Combining Balance Sheet 126 Combining Statement of Revenues, Expenses and Changes in Net Assets 127 Combining Statement of Cash Flows 128 STATISTICAL SECTION Table of Contents 131 Net Assets by Component 133 Changes in Net Assets 134 Fund Balances of Governmental Funds 136 Changes in Fund Balances of Governmental Funds 137 General Governmental Tax Revenue By Source 138 Assessed Value and Estimated Actual Value of Taxable Property 139 Property Tax Rates - Direct and Overlapping Governments 140 Principal Property Taxpayers 141 Property Tax Levies and Collections 142 Ratio of Outstanding Debt by Type 143 Ratios of General Bonded Debt Outstanding 144 Direct and Overlapping Governmental Activites Debt 145 Legal Debt Margin Information 148 Pledged-Revenue Coverage 147 Demographic and Economic Statistics 148 Principal Employers 149 Full-time Equivalent City Government Employees by Function 150 Operating Indicators by Function 151 Capital Asset Statistics by Function 152 Introductory Section 2010 1 2 3 4 5 6 7 8 Certificate of Achievement for Excellence in Financial Reporting Presented to Provo City Corporation Utah For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2009 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association ofthe United States and Canada to government units and public employee retirement systems whose comprehensive annual fmancial reports (CAFRs) achieve the highest standards in government accounting and fmancial reporting. President Executive Director .. 9 Organizational Chart John Curtis Mayor 510 Gina Robie Tracy Orme Administrative Executive Office Office Asst (C) Assistant 0004 049 Dixon Holmes Wayne Parker Corey Norman Deputy Mayor - Robert West Craig Geslison Helen Anderson Chief Administrative Chief Deputy/Provo Economic City Attorney Police Chief Public Info Officer Officer Foundation Development 047 636 892 1265 572 519 Gary McGinn Roger Thomas Gene Nelson Paul Glauser Merril Bingham John Borget Blair Camp Kevin Garlick Community Director of Parks Director of Library Director of Public Works Administrative Fire Chief Services Energy Director Development Director 024 and Rec 532 Redevelopment Director Services Director 813 705 537 081 270 058 Legend: No designation = Full time positions (P) = Part time positions (S) = Seasonal positions (approximate headcounts-function of budget due to fluctuating nature of seasonal programs) (C) = Contract positions (O) = On-call Chart based on reporting relationship of function 10 Organizational Chart Fiscal Year 2009 -10 Council Members Sterling Beck 511 Laura Cabanilla 512 Cynthia R. Dayton 372 Sherri Hall Everett 139 Richard Healey 458 Midge Johnson 659 Steve Turley 426 (P) Matthew Taylor Vacant Executive Director of Council Attorney Council (C) 498 184 Alicia John Tiffany Scherbel Julie Stevens Louise Jorgensen Dennise Montano Amy Harlow Policy Analyst Management Council Exec. Office Council Exec. Office Office Specialist (P) Policy Analyst (P) Analyst (P) 1110 Assistant Assistant 1382 1383 232 674 499 11 ELECTED AND STAFF POSITIONS MAYOR John R Curtis MUNICIPAL COUNCIL Midge Johnson, 2010 Council Chair Sterling Beck Rick Healey 2010 ViceChair Sherrie Hall Everett Laura Cabanilla Steve Turley Cynthia R Dayton Executive Director – Matthew Taylor EXECUTIVE STAFF Wayne Parker Chief Administrative Officer Corey Norman Deputy Mayor Dixon Holmes Deputy Mayor/Economic Development Helen Anderson Public Information Officer STATUTORY/OTHER POSITIONS Paul Glauser Redevelopment Agency Denise Roy Budget Officer Daniel Follett Treasurer Janene Weiss City Recorder 12 DEPARTMENT DIRECTORS Craig Geslison Police Department Blair Camp Fire Department John D. Borget Department of Administrative Services Robert West Office of Legal Services Gary McGinn Department of Community Development Roger L. Thomas Department of Parks and Recreation Gene Nelson Department of Library Services Kevin Garlick Department of Energy Merril L. Bingham Department of Public Works 13 This page is intentionally left blank. 14 Financial Section 2010 Management’s 2010 Discussion and Analysis MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the Provo City Corporation (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities for the year ended June 30, 2010. The Management’s Discussion and Analysis (MD&A) is designed to provide an overview of the City’s financial activity. It is also intended to assist the reader in focusing on significant financial issues including identifying changes in the City’s financial position (its ability to address the next and subsequent year’s challenges), identifying any material deviations from the approved budget, and identifying individual fund issues or concerns. Please read the MD&A in conjunction with the Transmittal Letter and the City’s financial statements. HIGHLIGHTS Financial Highlights The City’s net assets decreased by $495,865. The governmental net assets decreased by $335,027 and the business-type net assets decreased by $160,838. At the close of the current fiscal year, the assets of the City exceeded its liabilities by $513,514,580. Of this amount, $102,452,760 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. As of the close of the current fiscal year, the City’s governmental funds (reflected on a current financial resource basis) reported combined ending fund balances of $25,114,298, a decrease of $1,699,211 in comparison with the prior year. This change is primarily due to a decrease in total revenues ($62.8 million in 2009 vs. $57.5 million in 2010). The General Fund (the primary operating fund), also reflected on a current financial resource basis, reported a decrease of $122,222 in fund balance. This change is due to lower revenues ($39.2 million in 2010 vs. $40.9 million on 2009). At the end of the current fiscal year, unreserved fund balance for the general fund was $6,928,124 (or 18.1 percent) of 2011 general fund budgeted revenue. USING THIS ANNUAL REPORT The financial statements focus on both the City as a whole in the government-wide statements, and on the major individual funds in the fund financial statements. (An explanation of major and nonmajor funds can be found in the note 1 of the financial statements of this report). Both perspectives allow the user to address relevant questions, broaden a basis for comparison (year-to-year or government-to-government) and enhance the City’s accountability. 17 Government-Wide Financial Statements There are two basic statements in the government-wide financial statements: the statement of net assets and the statement of activities. These statements report information about the City as a whole using accounting methods similar to the full accrual method used by private sector companies. These statements also provide both long-term and short-term information about the overall financial status of the City. The statement of net assets presents information on all assets and liabilities of the City. The difference between the two is reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the net assets