슬라이드 0 - City of Tecumseh

State of Michigan
Popular
Annual
Financial
Report
For Fiscal Year Ended
June 30, 2012
Table of Contents
Message to the Citizens
4
2011 PAFR Award
5
Glossary of Terms
5
About Tecumseh
6
Community Profile
7
Location
8
Area Attractions
9
Government Structure
10
Financial Highlights
11
Revenues and Expenses
Assets, Liabilities, and Net Assets
City Departments
3
12-14
15
16-19
Message to the Citizens
To the Citizens of the City of Tecumseh:
We are pleased to present to you the City of Tecumseh’s third Popular
Annual Financial Report (PAFR) for the fiscal year ended June 30, 2012.
The intent of this report is to summarize and report the City’s financial
condition in a concise and user friendly manner.
Kevin M. Welch
City Manager
The information in this report is derived primarily from the City’s
Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
June 30, 2012. The financial information in the CAFR was prepared in
accordance with generally accepted accounting principles (GAAP) and was
independently audited by Rehmann Robson. The City received an
unqualified (“clean”) opinion from our auditors, which is the highest form
of financial assurance that an auditor can issue.
Unlike the CAFR, this PAFR is unaudited and not prepared in
accordance with GAAP. Only the financial data for the primary
government is included in this report and all of the City’s discretely
presented components units are excluded. Information in this report is
condensed and summarized and certain financial statements and note
disclosures required by GAAP are not included. A complete copy of the
City’s 2012 CAFR prepared in accordance with GAAP is located at
http://www.mytecumseh.org.
We are proud to have received the Certificate of Achievement for
Excellence in Financial Reporting by the Government Finance Officers
Association (GFOA) for the 15th consecutive year for the fiscal year ended
June 30, 2011 CAFR.
Thank you for your interest in the City of Tecumseh. We welcome any
questions, comments or suggestions regarding the information included in
this report.
Sincerely,
Kevin M. Welch
Leisa Still
City Manager
City Treasurer
(Signatures not shown for security purposes.)
4
Glossary of Terms (found in this PAFR)
Debt. Just like a homeowner takes out a mortgage, governments can borrow money to pay for certain types of
projects. The City has both short-term debt (paid back within the fiscal year) and long-term debt. Debt can be either
general obligation debt, meaning that the City pays back the debt with regular tax collections and other revenues, or
special revenue debt, which is paid off over time with revenue from specified sources beyond the usual taxes
and service fees.
Fiscal year (FY). The 12-month period of time during which budgets are allocated or finances are planned. Most
households have a fiscal year that runs from January 1 to December 31 (that’s the period for which we pay personal
income taxes in April), while the City uses a July 1 - June 30 fiscal year.
Fund balance. Once all the bills for the year have been paid out of a certain fund, whatever is left over is called the
fund balance. When a fund balance is less than zero, you’ll see the number shown with parentheses around it.
Deficits cause fund balances to decrease, while surpluses cause them to increase.
Reserved/Restricted funds. Some funds are considered to be “reserved” or “restricted” for a specific purpose,
and cannot be spent for anything else.
5
About Tecumseh
Tecumseh, Michigan is a vibrant community, situated 25 miles southwest of Ann
Arbor, Michigan and 40 miles northwest of Toledo, Ohio. The city currently has a land
area of approximately 5.4 square miles and a population of 8,521 based on the 2010
census.
The Mission and Vision of the City of Tecumseh is to provide excellent services and
embrace change that enhances the quality of life, encourages a strong economy, and
promotes a world class place to live, work and play.
The government is empowered to levy a property tax on both real and personal
property located within its boundaries. The city has operated under the councilmanager form of government since 1954. Policymaking and legislative authorities are
vested in the governing council, a seven-member council including the mayor. The
City Council is required to adopt a final budget prior to the start of the fiscal year to
which it pertains.
The City currently sees a challenging economic environment and indicators show
continued challenges in the coming year. Lenawee County is experiencing an
unemployment rate almost 1.5% over the current national rate of 8.2%, and is 2.8%
lower than it was last year. This region does have a varied manufacturing and
industrial base that contributes to the unemployment rate. Major industries include
printing companies, electrical controls, automobile component manufacturers, and
several financial institutions. The government’s central business district decreased
slightly to its current 97.3 percent occupancy rate with a variety of stores, specialty
shops, and commercial businesses. No residential growth was seen during the year due
to the current economic conditions.
While challenges exist, the City continues to see an increase in economic
development opportunities. Several local manufacturers have expanded within
the past year and the city’s largest employer, Lenawee Stamping, has announced
their intention to invest and add additional employees to their workforce in 2013.
The City continues to focus its efforts to redevelop its largest vacant industrial
parcel and is actively marketing the Tecumseh Business & Technology Campus, a
158 acre municipally owned industrial park, which will result in future job growth
and the diversification of Tecumseh’s tax base.
An increasing financial challenge for the City is the cost of employee benefits,
especially for medical insurance and limited investment income in the employees
retirement system. These two issues impose increasing burdens on the City’s fiscal
structure and pose a possible peril to the long term stability of City finances. The city
has set a goal of maintaining at least a 15% fund balance in the general fund.
6
City of Tecumseh
Community Profile
• The City of Tecumseh was founded in 1824
and incorporated as a city in 1954.
• Population: 8,521
• Housing units: 3,957
• Per capita income: $30,538
• Median household income: $50,234
• Landmass: Area - Total 5.7 square miles
• Median Age: 39.8
• In labor force: 4,564
(Source: U.S. Census Bureau, 2010 Census.)
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7
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City
Council
Goals
The basic goals
include
maintaining our
small town values,
managing our
growth, financial
strength and
superior services.
Location
25
60
Ann Arbor
Detroit
Tecumseh is..
Tecumseh
Lenawee County, MI
60miles SW of Detroit,
25miles South of Ann Arbor
40 miles NW of Toledo, OH
40
8
Toledo
Area Attractions
Skydive Tecumseh
Skydiving in Michigan can't be beat at
Michigan's premier drop-zone; Skydive
Tecumseh! We offer Michigan's largest,
fastest jump plane and highly experienced
instructors. If you are going to jump out of a
perfectly good airplane, don't compromise choose the best! Come on out and Experience
Human Flight with us. To book it now visit
http://rsvp.skydivetecumseh.com
Tecumseh Center for the Arts
TCA has a state of the art projection, sound
and technical system, which can accommodate
local productions as well as national touring
companies. TCA can also be a comfortable
venue for business meetings, conventions, and
special events of all types.
Cabela’s
An enormous omni-plex dedicated to
preserving wildlife and outdoor sportsman
activities. Come visit the 225,000 square
Michigan International Speedway
foot store dedicated to outfitting any type or From Snow Cross to NASCAR racing there
size sportsperson for any outdoor activity.
will always be something to get your adrenaline
pumping at the Michigan International
Speedway.
Hidden Lake Gardens
A botanical garden owned by Michigan State
University located on M-50 in Tipton, MI.
Enjoy the well manicured 750 plus acre
garden surrounding Hidden Lake where
there is always something to learn and see.
9
Raisin Valley Golf Club
Raisin Valley Golf Club is a beautiful eighteenhole golf course that welcomes the public to
enjoy a day of golf. Peruse the pro-shop or
relax with a drink and some great food in their
full service restaurant.
Government Structure
Citizens
Mayor & City Council
• Downtown Development
Authority
• Local Development Finance
Authority
• Retirement System Board
• Brownfield Redevelopment
Authority
• Economic Development Corp.
• Board of Review
• Election Commission
• Planning Commission
• Board of Zoning Appeals
• Electrical Board of Appeals
• Property Maintenance
Board of Appeals
• Historic Preservation
Commission
• Parks & Recreation
Advisory Board
• Building Authority
• Hospital Finance Authority
City Council Members
Front row (left to right)
Gary Naugle
Richard Johnson, Mayor
Patricia Housekeeper
Back row (left to right)
Troy Wright
Laurence Van Alstine, Jr.
Ron Wimple
Jack Baker, Mayor Pro-Tem
Attorney
Meetings:
City Council meets on the 1st and 3rd M
onday of each month at 7:30 pm in the C
ouncil Chambers at City Hall
Study sessions are held, if needed, at
6:30 p.m.
Learn more about the City and its
government at :
http://www.mytecumseh.org/
10
City Manager
• Assessor
• Cemetery/Tree Program
• Clerk
• Civic Auditorium
• Development Services
• Economic Development
• Emergency Services
• Ambulance Services Contract
• Parks & Recreation
• Public Utilities
• Police
• Public Works/Forestry
• Residential Solid Waste
Collection Contract
• Treasurer
Financial Highlights
The
government’s
total net assets
decreased by
$479,986.
The unassigned
fund balance for the
general fund was
$1,236,517 or 25
percent
of total general fund
expenditures and
transfers out.
The City’s total
bonded debt
decreased by a net
amount of $105,000
during the current
fiscal year.
11
The assets of the City exceeded its
liabilities at the close of the most recent
fiscal year by $31,835,280 (net
assets). Of this amount, $2,152,398
(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 reported
combined ending fund balances
of $4,084,042, an increase of $296,712 in
comparison with the prior year.
Approximately 30 percent of this total
amount, or $1,236,517, is available for
spending at the government’s discretion
(unassigned fund balance).
Expenses
Revenues
•
•
The revenue chart below presents the
sources of total revenues from the City’s
Changes in Net Assets Statement,
including charges for services, operating
and capital grants, and property taxes.
The City’s major revenue sources are
property taxes (45%) and charges for
services (32%). Revenues are the
monies the City brings in to run the city.
The expense chart below presents the
percentage of the City’s total expenses
by function from the Changes in Net
Assets Statement. The functions include
general government, public safety,
public works, parks and recreation, civic
auditorium and community development
in governmental activities and
wastewater and water in business type
activities. Expenses are the costs that
the city incurs to run the city.
Revenue by source2012
Expenses by source2012
Charges for services
General government
Public Safety
Public works
Parks and recreation
Civic auditorium
Community development
Interest on long-term debt
Wastewater
Water
Operating grants and contributions
Capital grants and contributions
Property taxes
Grants and contributions not
restricted to specific programs
Other
1%
$
719,939
9%
$
34,888
$ 2,456,033
$ 654,424
$ 1,293,884
32%
16%
$ 111,983
1%
45%
13%
$ 541,353
$
$ 3,468,109
0%
$ 2,724
12
12
12
$ 974,088
$
6%
1,341,587
16%
7%
467,143
$
8%
26%
4%
16%
364,053
$ 1,274,780
$ 2,095,860
Expenses and Total Revenues
(Governmental Activities)
Governmental activities are the services the
City provides to citizens such as protection
of life and property, public works, parks and
recreation programs and culture and social
services. The revenues are what the City
brings in from taxes, permits and fines.
Governmental activities increased the City’s
net assets by $38,273 in the current fiscal
year, a decrease of $172,121 from the prior
year. Key reasons for this decrease was a
decrease in revenue attributable to less tax
revenue, less investment income and less
revenue from building permits due to a weak
economy and less revenue from capital
grants.
Governmental Activities
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
Expenses
Expenses and Program Revenues
(Business-Type Activities)
Business-Type Activities are
commercial type activities of the City
and include the City’s water and
wastewater utilities. Business-Type
Activities decreased the City’s net assets
by $518,259. The primary reason for
this decrease was no capital
contributions in 2012 as the Tecumseh
Business and Technology Campus was
completed and a large transfer for the
construction of the new recreation center
occurred.
Business-type
Activities
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
-
Expenses
13
13
13
Total Revenues
Program Revenues
Financial Trends in Revenues and Expenses
Last Ten Fiscal Years
Top Five Revenues
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
General government
Operating grants and contributions
Capital grants and contributions
Property taxes
2012
Unrestricted grants and contributions
Top Five Expenses
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2003
2004
2005
General government
14
14
14
2006
2007
Public safety
2008
Public works
2009
2010
Wastewater
2011
Water
2012
Tecumseh’s Change of Net Assets
At June 30, 2012
So far we have focused on where the City’s money comes from (revenues) and where the City’s
money goes (expenses). When looking at the overall financial condition of the City, we also need to
consider the assets and liabilities of the City, and the difference, net assets.
-Assets are items of value owned by the City that will provide future economic benefits.
-Liabilities are amounts owed to others.
-Net Assets equals assets minus liabilities and may serve as a useful indicator of the City’s
financial position.
At the close of the most recent fiscal year, the City’s assets exceeded liabilities by $31,835,280.
which reflects good financial position for the City as of June 30, 2012.
Total Net Assets Over a Five Year Period ( 2008 - 2012)
Total Net Assets
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
15
2008
2009
2010
2011
2012
Total Governmental Activities Net
Assets
18,735,200
18,104,928
19,756,021
19,966,415
20,004,688
Total Business-Type Activities Net
Assets
12,331,913
12,186,666
11,913,051
12,348,851
11,830,592
Total Primary Government Net
Assets
31,067,113
30,291,594
31,669,072
32,315,266
31,835,280
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City Departments
City Manager
City Clerk
Kevin Welch has been the City
Manager since January 5, 2004.
Kevin has an undergraduate degree
from Wayne State University and a
Masters in Public Administration
from Eastern Michigan University.
Kevin has well over 20 years of
experience at various levels of local
government.
The City Clerk administers
elections, registers voters, serves
as clerk to City Council and is the
official record keeper for the City.
The City Clerk's office is
responsible for maintenance of
City records, which includes all
recorded actions of the City
Council as well as deeds,
easements, contracts and other
general records, including
Brookside Cemetery, which is
owned and managed by the City.
The City Manager reports to the City
Council and is responsible for the
day-to-day operations of the City,
including the various departments.
Kevin is also responsible for
preparing and administering the
various city budgets and ensuring the
various goals of the City are met.
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Brookside Cemetery
Brookside Cemetery has a serene
park like setting, filled with
historic monuments and
tombstones, dating back to the
early 1800's.
City Departments
City Assessor
Police Department
The Assessing department has a
website that taxpayers can access
regarding their property taxes free
of charge. The City’s Tax and
Assessing Software allows citizens
to access property details, such as
current assessments, digital photos,
building data, sales transactions, and
recent tax bills. This website is also
found on the City Treasurer’s home
page under Tax and Assessing Info.
The Police Department provides
public safety services for the
community.
Fire Department
The Fire Department provides fire,
rescue, and EMS response to the
community. The department is
involved in providing fire prevention
education, fire suppression and
Medical First Response. The number
of calls answered in 2012 was 744.
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2012 Service Accomplishments
Accomplishment
Number
• Uniform crime
reporting
695
• Traffic violations 940
• Arrests
563
• Parking violations 30
City Departments
Parks and Recreation
Department
There are over 300 acres of parkland
within Tecumseh, brimming with
green space, wildlife, waterways and
hiking/biking trails.
Center for the Arts (TCA)
TCA provides arts and
entertainment events for the
community. There were 67 shows
at the Civic Auditorium in 2012,
with an average attendance of 350.
In addition to parks, we offer a full
slate of activities, such as basketball,
soccer, baseball/softball, volleyball,
tennis and golf lessons, and activities
at the recreation center.
Public Works
Public works department is
responsible for construction
and maintenance of streets and
storm sewers, as well as snow
removal of streets and cityowned parking lots. There were
28 miles of local streets and 17
miles of major streets maintained
in 2012.
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City Departments
Economic Development
City Treasurer
The Economic Development
Department is the resource center
and liaison for commercial and
industrial businesses.
The Treasurer’s office is
responsible for all financial
transactions of the City, including
the collection of taxes and fees.
Under the direction of the
Treasurer’s Department, the City
has received the Certificate of
Achievement for Excellence in
Financial Reporting from the
Government Finance Officers
Association of the United States
and Canada for the past fourteen
years.
Utilities Department
The Utilities Department takes care
of public water as well as waste
water treatment.
For 2012, there were 3,891 service
connections and 444 fire hydrants. In
2012, the Utilities Department
maintained 53 miles of sanitary
sewers, 20 miles of storm sewers, and
56 miles of water mains.
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Building Services Department
This Department oversees all new
construction or additions to existing
buildings in the city, including
industrial, commercial and
residential properties.