2013 Popular Annual Financial Report

2013
City of Pickerington, Ohio
Popular Annual Financial Report
For the year ended
December 31, 2013
TABLE OF CONTENTS
Contents
Letter to Citizens of the City of Pickerington ...................................................................... 4
City of Pickerington Elected Officials ................................................................................. 5
2013 Financial Overview ..................................................................................................... 6
Income Taxes ..................................................................................................................... 11
Economic Development ..................................................................................................... 12
Demographics .................................................................................................................... 13
Awards ............................................................................................................................... 14
Contact Information ........................................................................................................... 15
Charts
2013 Governmental Sources of Revenue ............................................................................ 6
2013 Governmental Expenditures by Program .................................................................... 7
2013 Proprietary Fund Revenues ......................................................................................... 8
Water, Sewer, and Stormwater Rate Comparison ............................................................... 8
2013 Proprietary Fund Expenses ......................................................................................... 9
Statement of Net Position .................................................................................................. 10
2013 Income Tax Collections ............................................................................................ 11
Income Tax Revenues Last Five Years ............................................................................. 11
2013 Principal Employers.................................................................................................. 12
Demographics .................................................................................................................... 13
3
Citizens of the City of Pickerington, Ohio:
I am pleased to present to you the City of Pickerington’s Popular Annual Financial Report (PAFR) for
the fiscal year ended December 31, 2013. This report provides an analysis of the financial position of the
City, where the revenues come from, where those dollars are spent, and an overview of local economic
trends. My goal is to better communicate how the City is operating fiscally in a reader friendly financial
publication.
The financial information for this report has been taken from the 2013 City of Pickerington Comprehensive Annual Financial Report (CAFR). The CAFR is comprised of 134 pages of detailed financial statements, notes, and schedules and 50 pages of statistical information. The CAFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP) and audited by the CPA Firm, Wilson, Shannon, & Snow, Inc., receiving an unqualified opinion. An unqualified opinion means that the
general purpose financial statements of the City are fairly presented in all material respects.
The City of Pickerington’s PAFR is un-audited and presented on a GAAP basis. The CAFR contains
more detailed information of all of the City’s funds and can be obtained from the Finance Department at
City Hall or on the City web site at http://www.ci.pickerington.oh.us/Pages/Departments/Finance.
The City of Pickerington’s PAFR is a means of increasing public confidence in City government and
your elected officials through more user-friendly reporting. As you review the PAFR for 2013, I invite
you to share any suggestions, questions, or comments you may have at (614) 837-3974.
Sincerely,
Christopher Schornack
Director of Finance
Finance Department · City of Pickerington · 100 Lockville Road · Pickerington, Ohio 43147
(614) 837-3974 · Fax (614) 833-2201 · www.pickerington.net
4
CITY OF PICKERINGTON, OHIO
ELECTED OFFICIALS
Lee A. Gray
Mayor
[email protected]
Cristie Hammond
Councilperson
[email protected]
Lee was elected Mayor in November 2011. Mayor Gray
previously served as Mayor
from 1992 to 1999 and as a
Councilperson in 1987.
Cristie was elected to City
Council in November 2005.
Cristie currently serves as a
member of the Service Committee and Finance Committee.
Gavin Blair
President of Council
[email protected]
Mike Sabatino
Councilperson
[email protected]
Gavin was elected to City
Council in November 2009.
Gavin currently serves as chairperson of the Finance Committee.
Mike was re-elected to City
Council in November 2011.
Mike currently serves as chairperson of the Safety Committee
and a member of the Finance
Committee.
Tony Barletta
Vice President of Council
[email protected]
Christopher Schweitzer
Councilperson
[email protected]
Tony was elected to City Council in November 2009. Tony
currently serves as a member of
the Rules Committee and Finance Committee.
Chris was elected to City
Council in November 2011.
Chris currently serves as a
member of the Service Committee, Rules Committee and
Finance Committee. Chris is
the Council representative to
the Planning and Zoning Commission.
Jeff Fix
Councilperson
[email protected]
Jerry Dailey
Councilperson
[email protected]
Jeff was elected to City Council in November 2005. Jeff
currently serves as chairperson
of the Service Committee and a
member of the Safety Committee and Finance Committee.
Jeff is a member of the Nuisance Abatement Board.
Jerry was appointed to City
Council in December 2013.
Jerry currently serves as a
member of the Finance Committee.
Vision Statement
“Pickerington will be a safe, thriving, family-friendly community that
preserves tradition while creating a balanced, accessible, affordable, hometown
by engaging our citizens to collectively enhance our quality of life.”
5
CITY OF PICKERINGTON, OHIO
2013 FINANCIAL OVERVIEW
Two Year Sources of Revenue Governmental Activities
Where the Money Comes From
The following is an overview of the City’s
financial revenues for the fiscal years ending
December 31, 2013 and 2012.
Revenues
Income Taxes
2013
2012
The City generates revenue from a variety of
sources. The most significant revenue sources
are income taxes and property and other local
taxes. Income taxes and property and other
local taxes comprise 64 percent of total
revenues in 2013. The increase in income taxes
revenues is a direct result of concentrating
efforts on delinquent collections. Effective,
March 19, 2013, the City entered into an
agreement with the Ohio Attorney General for
collection of delinquent income tax balances.
In addition, the City has historically utilized
Mayor’s Court to prosecute delinquent income
tax cases.
$5,220,794
$5,029,644
2,546,124
2,431,640
Franchise Taxes
250,997
265,146
Grants and Entitlements
321,059
387,648
Investment Earnings
19,398
66,069
Payment in Lieu of Taxes
71,004
212,666
547,854
553,211
1,597,275
1,528,539
Operating Grants & Contributions
980,387
987,808
Sources of Revenue Definitions
Capital Grants & Contributions
368,548
946,086
Miscellaneous
186,992
130,579
$12,110,432
$12,539,036
Income Taxes – The City levies a one percent
income tax on all income earned within the City.
Residents are granted up to a one half percent tax
credit for income taxes paid to other
municipalities.
Property and Other Local Taxes
Impact Fees
Charges for Services
Total Revenues
Property and Other Local Taxes – The City’s
portion of real estate and public utility taxes, as
well as a three percent tax levied on hotel/motel
sales.
Charges for Services – Sources include
recreation programs, building department
permits and licenses, and mayor’s court fines and
forfeitures.
Grants and Entitlements – Revenue received
from State levied shared taxes.
Operating
(and
Capital)
Grants
&
Contributions – Revenues received from other
governments, organizations and individuals that
are restricted in some manner.
Investment Earnings – Revenue earned by
investing all available City funds throughout the
year.
All Other Taxes, and Services – Revenue
received from cable franchise taxes, payments in
lieu of taxes from infrastructure improvements,
and miscellaneous revenue.
6
CITY OF PICKERINGTON, OHIO
2013 FINANCIAL OVERVIEW
Two Year Expenditures by Program –
Governmental Activities
The following is an overview of the City’s
financial operations for the fiscal years ending
December 31, 2013 and 2012.
Expenses
General Government
2013
2012
$2,580,817
$2,675,205
Security of Persons & Property
4,613,122
4,462,428
Transportation
3,056,389
3,232,743
Leisure Time Activities
715,567
647,569
Public Health Services
121,588
127,888
Community Environment
638,098
777,125
Interest and Fiscal Charges
291,767
353,602
$12,017,348
$12,276,560
Total Expenses
Where the Money Goes
During 2013, total expenditures decreased two
percent compared to 2012. The decrease in
expenses was primarily due to a decrease in
transportation costs in the amount of $176,354
and a decrease in community environment costs
in the amount of $139,027. During 2013, the
City invested $539,000 in street resurfacing and
$44,000 in crack sealing and pavement striping.
During 2012, the City invested approximately
$562,000 in street resurfacing and $89,000 in
crack sealing and pavement striping, a
difference of $68,000. In addition, during 2012
the City spent approximately $58,000 on traffic
light repairs and $46,000 on engineering for the
Center/Meadows/Milnor road realignment
project. During 2013, the City only spent
$14,000 on traffic light repairs, a decrease of
$44,000 from 2012.
The decrease in community environment costs
is the result of the City analyzing and returning
developers’ deposits in 2012 for projects that
had become inactive. The deposits were to be
utilized for future engineering and inspection
services. Engineering and inspection services
are now billed directly to the developer
resulting in a decrease in costs.
Did you know?
The Police Department offers the
Children Home Alone Program (CHAP)
to help ensure the safety of children
during the summer months.
7
CITY OF PICKERINGTON, OHIO
2013 FINANCIAL OVERVIEW
Expenditures by Program Definitions
General Government – consists of City
Council, Mayor, Mayor’s Court, City
Manager, Finance Department, and all
general administrative departments.
Security of Persons & Property – includes
the Police Department which provides
public safety services through our patrol
division, detective bureau and dispatch
services.
Transportation – includes all costs
associated with maintaining our roads.
Leisure Time Activities – includes costs
associated with operating our recreation
programs and maintaining our parks.
Public Health Services – includes health
services contract with the Franklin County
Health Department.
Community Environment – consists of our
Building
Department,
Development
Services Department and the Planning and
Zoning Department.
Interest and Fiscal Charges – includes
interest payments on municipal debt.
The following is an overview of the City’s
enterprise fund financial revenues for the years
ending December 31, 2013 and 2012.
Proprietary Funds
Revenues
2012
Water
$2,341,402
$2,386,759
Sewer
3,445,634
3,432,059
Stormwater
630,931
590,771
Aquatic Recreation
169,595
191,108
$6,587,562
$6,600,697
Total Revenues
During 2013, water revenues decreased
approximately two percent. The decrease in
revenues can be primarily attributed to a
decrease in residential consumption due to a wet
summer. For 2013, sewer revenues increased
slightly due to a three percent increase in sewer
rates.
During 2013, stormwater revenues
increased just over six percent. This increase in
revenues is due the stormwater charge
increasing from $4.25 to $4.50. During 2013,
aquatic recreation revenues decreased nearly 11
percent. This decrease is attributed to an
decrease in the number of pool passes sold. In
2013, the City sold 559 pool passes compared to
624 pool passes sold in 2012.
Rate Comparison
Two Year Revenues – Proprietary
Funds
The City uses enterprise funds to account for its
water, sewer, stormwater, and aquatic recreation
center operations.
For water and sewer
operations, the City charges a fee to customers,
based upon the amount of usage, to recover the
costs of the services provided. For stormwater
operations, the City charges a flat monthly fee
per equivalent residential unit (ERU). For the
aquatic recreation center the City charges a fee
for pool passes.
2013
Water (1)
Sewer (2)
Stormwater
2011
$3.92
$8.60
$4.00
2012
$4.04
$8.86
$4.25
2013
$4.16
$9.13
$4.50
(1) per 1,000 gallons
(2) per 1,000 gallons (minimum 3,000 gallons)
(3) per ERU (equivalent residential unit)
The City was awarded a $5,000,000 Ohio Department of Transportation (ODOT) Safety
Grant in 2010 for State Route (SR) 256. The project will add a third southbound lane at
SR 204 to Refugee Road and a third northbound lane at SR 204 to I-70 as well as
numerous safety related improvements. Construction is anticipated to begin in 2015.
8
CITY OF PICKERINGTON, OHIO
2013 FINANCIAL OVERVIEW
Two Year Expenses – Proprietary
Funds
The following is an overview of the City’s
proprietary fund financial operations for the
fiscal years ending December 31, 2013 and
2012.
Proprietary Funds
Expenses
2013
Personal Services
Contractual Services
Materials and Supplies
Depreciation
Total Expenses
2012
$1,966,378
$1,921,441
2,350,588
1,822,461
392,654
392,918
1,104,969
1,145,426
$5,814,589
$5,282,246
During 2013, expenses increased approximately
ten percent. The increase in expenses was
primarily due to an increase in contractual
services in the amount of $528,127. The
increase in contractual services is attributed to
the City investing in a ten year water tank
maintenance program, the SCADA system
update at the wastewater treatment plant, and
the Sycamore Creek at Shawnee Crossing bank
stabilization project.
The water tank
maintenance program includes visual inspection
services and exterior/interior painting services.
The SCADA system update at the wastewater
treatment plant allows plant operators to
monitor additional pieces of operational
equipment through technology.
Wastewater Treatment Plant
Pickerington Community Pool
Expense Definitions
Personal Services – consists of wages, retirement,
and health insurance costs for water, sewer,
stormwater, and aquatic recreation departments.
Contractual Services – includes costs associated
with electricity, heating, maintenance, and services
performed by outside agencies.
Materials and Supplies – includes costs associated
with office supplies, chemical supplies, gasoline,
and miscellaneous equipment.
Depreciation – the measurement of the decline in
value of an asset over a period of time.
Refugee Road Water Tower
9
CITY OF PICKERINGTON, OHIO
2013 FINANCIAL OVERVIEW
Statement of Net Position
The Statement of Net Position looks at the City
as a whole and asks the question, “How did we
do financially during the year?” The table
below provides a summary of the City’s
governmental activities net position for 2013
compared to 2012.
Governmental Activities
Assets
The following table provides a summary of the
City’s business-type activities net position for
2013 compared to 2012.
Business-Type Activities
Assets
2013
Current and Other Assets
$8,112,038
$6,736,397
Capital Assets, Net
59,556,478
59,858,018
Total Assets
67,668,516
66,594,415
86,253
114,067
488,665
391,880
Long-term Liabilities
16,142,483
17,296,772
Total Liabilities
16,631,148
17,688,652
43,755,897
42,935,198
7,367,724
6,084,632
$51,123,621
$49,019,830
2013
2012
$11,004,698
$10,758,316
Capital Assets, Net
54,922,233
55,798,223
Deferred Charge on Refunding
Total Assets
65,926,931
66,556,539
Liabilities
Current and Other Assets
Deferred Charge on Refunding
96,341
105,099
Liabilities
Current and Other Liabilities
575,497
756,733
Long-term Liabilities
12,104,688
12,757,136
Total Liabilities
12,680,185
13,513,869
2,350,000
2,270,000
43,715,619
44,046,257
Restricted
3,271,301
3,118,919
Unrestricted
4,006,167
3,712,593
$50,993,087
$50,877,769
Deferred Inflows of Resources
Property Taxes
Deferred Outflows of Resources
Current and Other Liabilities
Deferred Outflows of Resources
Net Assets
Net Investment in Capital Assets
Unrestricted
Total Net Position
Net Position
Net Investment in Capital Assets
Total Net Position
Governmental Activities – Includes the majority of our
City’s services consisting of police, administration and
all departments with the exception of our Water, Sewer,
Stormwater, and Aquatic Recreation services.

During 2013, the City completed the
preliminary engineering phase of the State
Route 256 Safety Grant project. Right of
way acquisitions will occur in 2014 and
construction is planned for 2015.
2012
Business-Type Activities – Includes our Water,
Sewer, Stormwater, and Aquatic Recreation services.

During 2013, capital contributions from
customers (capacity fees) increased
$550,159 and capital grants increased
$312,927. During 2013, the City issued 104
residential and 172 commercial construction
permits compared to 98 residential and 144
commercial construction permits in 2012.
Net Position Definitions
Assets – consists of those items owned by the City
that will provide a benefit in the future.
Long-term Liabilities – includes amounts owed for
the issuance of debt and compensation of absences on
which the City still owes.
Capital Assets – represents furniture, equipment,
vehicles, land, buildings, water and sewer equipment,
and the City’s roads and bridges infrastructure that
provide for an economic benefit to the City of more
than one year.
10
CITY OF PICKERINGTON, OHIO
2013 INCOME TAXES
Income Taxes
The City of Pickerington levies a one percent
income tax on income earned within the City,
which applies to all qualifying wages,
commissions, other compensation earned or
received, and net income of for-profit
organizations that conduct business within the
City. City of Pickerington residents are given
up to a one half percent credit on any of their
wages that are taxed by another municipality
and not refunded. Income tax collections
consist of three sources: taxes from employee
withholdings, taxes from individuals and taxes
on net profits. As shown in the chart below
taxes from withholdings make up the largest
percentage of the City’s income tax revenue.
Employee withholdings are equivalent to one
percent of the wages earned in the City which
are deducted from employees’ earned income
and remitted by the employer. Taxes from
individuals consist of one percent of
individuals’ income that was not withheld on
the resident’s behalf and remitted to the City.
For example, self-employment income and net
income earned from rental property are taxable
to the City as earned income. Taxes on net
profits are levied on the net income of all
businesses located in the City. In 2013,
income
tax
revenues
accounted
for
approximately
43
percent
of
total
governmental revenues.
Income Taxes Levied Comparison
Municipality
Tax Levied
Credit
City of Canal Winchester
2.00%
100.00%
City of Columbus
2.50%
100.00%
City of Gahanna
1.50%
83.33%
City of Groveport
2.00%
100.00%
City of Hilliard
2.00%
100.00%
City of Lancaster
1.75%
57.14%
City of Pataskala
1.00%
0.00%
City of Pickerington
1.00%
50.00%
City of Reynoldsburg
1.75%
100.00%
City of Westerville
2.00%
100.00%
The chart below provides a summary of
income tax collections over the last five years.
In addition to concentrated efforts related to
delinquent income tax collections and
compliance, the City continues to expand
economic development initiatives in an effort
to increase and diversify the income tax base.
The City Income Tax Department offers
Electronic Filing and Online Account
Access for Residents and Businesses.
11
CITY OF PICKERINGTON, OHIO
2013 ECONOMIC DEVELOPMENT
Commercial Development Projects
Completed During 2013
In 2013, over $8,495,00 was invested in new
construction. The following commercial development projects were completed:



2013 Principal Employers
Employer
Pickerington LSD
1,150
Hunter’s Ridge Shopping Center, located at
the southeast corner of State Route 256 and
State Route 204 encompasses three standalone buildings with a total of 52,337
square feet and an estimated value of
$2,800,000.
Kroger Company, Inc.
329
Kohl’s Department Stores
319
Roosters
266
Tamarkin Co Inc.
260
Midas Auto Service Center, located at 921
Hill Road North, is an approximately 6,471
square foot automotive service center. The
facility has an estimated value of $450,000.
Cracker Barrel Restaurant
247
Pickerington Assisted Living LLC
187
Kindred Nursing Center
150
Pickerington’s Eye Care’s new facility, located at 141 Clint Drive, is a medical office
building comprised of approximately 7,240
square feet. The facility has an estimated
value of $1,500,000.
Steak N’ Shake
146
McDonald’s
139
Midas Auto Service Center
12
Employees
Hunter’s Ridge Shopping Center
Pickerington Eye Care
CITY OF PICKERINGTON, OHIO
2013 DEMOGRAPHICS
Demographics
Community Investments
County:
Fairfield County, Ohio
Area:
9.58 Square Miles
Location:
13.2 Miles
Southeast of Columbus
Established:
1815
Attained City Status:
1991
Population:
18,692
Median Household Income:
$81,480
Median Housing Value:
Median Resident Age:
$209,225
35.3 years
Median Household Size:
3.02
Bachelor’s Degree or Higher:
40.1%
Employed Labor Force:
68.5%
Unemployed Labor Force:
Per Capita Income:
Occupations:
Management & Professional:
Service:
Sales and Office:
The City provides the following services: public safety, operation of water, sewer, and stormwater utilities, street repair and maintenance,
parks and recreation, and a State Certified
Building Department. Fire department services
are provided by Violet Township, of which the
City is a part. The City of Pickerington maintains over 150 acres of park land located within
Sycamore Park, Victory Park, Colony Park,
Simsbury Park, Shawnee Crossing, Preston
Trails, and Willow Pond Park. The parks offer
a variety of activities including shelter houses,
fishing, basketball courts, softball fields, soccer
fields, tennis courts, putting green, playgrounds,
swing sets, and a skate park.
5.7%
$30,927
45.6%
16.0%
24.0%
*Information obtained from
2012 U.S. Census Estimates
Disc Golf Course Shelter
Olde Downtown/ Victory Park
13
CITY OF PICKERINGTON, OHIO
2013 AWARDS
Financial Awards
The City of Pickerington has received the Auditor of State’s “Award with Distinction” for outstanding commitment to the highest standards
of financial reporting for the years 2005, 2006,
and 2008 through 2012 due to the filing of the
Comprehensive Annual Financial Report
(CAFR) and having no audit citations.
The Government Finance Officers Association
of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for
its Comprehensive Annual Financial Report
(CAFR) for the year ended December 31, 2012.
2012 was the ninth year the City had filed a
CAFR and received this award. In order to be
awarded a Certificate of Achievement, the City
had to publish an easily readable and efficiently
organized CAFR. The report must satisfy both
generally accepted accounting principles and
applicable legal requirements.
The Government Finance Officers Association
of the United States and Canada (GFOA)
awarded an Award for Outstanding Achievement in Popular Annual Financial Reporting
(PAFR) to the City of Pickerington for the fiscal
year ended December 31, 2012. The Award for
Outstanding Achievement in Popular Annual
Financial Reporting is a prestigious national
award recognizing conformance with the highest standards for preparation of state and local
government popular reports.
A Tree City for 21 Consecutive Years
The City received its twenty-first Tree City
USA Award for the year ended December 31,
2013. This prestigious award recognized the
City for its annual program of planting new
trees and maintaining and removing old trees.
In order to receive an Award for Outstanding
Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents
conform to program standards of creativity,
presentation, understandability and reader appeal.
2013 Tree Statistics
Trees Planted
233
Trees Pruned
Trees Removed
14
262
75
21 Years as
Tree City USA
Award Recipient
CITY OF PICKERINGTON, OHIO
2013 CONTACT INFORMATION
City Directory
Popular Annual Financial Report
The Popular Annual Financial Report (PAFR), is
to be used as a quick guide for the citizens of
Pickerington, and to summarize how the City is
operating fiscally. The information in this PAFR
was taken directly from the Comprehensive Annual Financial Report (CAFR), which is more extensive and can be found on the City’s website at the
following link:
http://www.ci.pickerington.oh.us/Pages/
Departments/Finance/
City Hall
100 Lockville Road
Pickerington, OH 43147
(614) 837-3974
www.pickerington.net
Mayor’s Office
City Manager
Municipal Clerk
Finance Department
Income Tax Department
Human Resources Department
Parks & Recreation Department
Utility Billing Department
(614) 837-3974
(614) 837-3974
(614) 837-3974
(614) 837-3974
(614) 837-4116
(614) 837-3974
(614) 833-2211
(614) 833-2289
Building Department
51 East Columbus Street
Pickerington, OH 43147
(614) 833-2221
Development Services
Engineering Department
Planning and Zoning
Photo by Eric Albrecht, Columbus Dispatch
Friday Night Flicks
(614) 833-2204
(614) 833-2221
(614) 833-2204
Police Department
1311 Refugee Road
Pickerington, OH 43147
(614) 575-6911
Service Department
200 Hereford Drive
Pickerington, OH 43147
(614) 833-2292
Sewer Plant
Water Plant
Pickerington City Hall
(614) 837-6470
(614) 833-2290
15
City of Pickerington  100 Lockville Road  Pickerington, Ohio 43147
(614) 837-3974  Fax (614) 833-2201  www.pickerington.net