Have You Reserved Your Boat Well?
Have you been dreaming about a relaxing day on your boat either
cruising or sailing on beautiful Lake St. Clair? The City of Grosse
Pointe Farms has boat wells of varying sizes that are available to
residents for rent by the season at Pier Park. There are currently
openings for 20’, 30’, 37’, and 40’ boat wells. Residents can now
reserve them for the 2015 boating season.
Financial
Summary
For the Year Ended
June 30, 2014
The Pier Park Harbor was completely renovated in 2005. Boat
wells range in size from floating Jet Ski docks to 55’ wells. Shore
power electrical services and water service are available for boat
wells 25 feet and longer. Shared services are available for boats
under 25 feet.
Contact the Grosse Pointe Farms Parks and Recreation
Department at (313)343-2405 if you are interested in one of the
available open boat wells. You can also have your name placed
on the waiting list for other size boat wells if there are no open
mooring spaces at this time.
Grosse Pointe Farms, Michigan
Page 15
Expenditures
Fast Facts
Residential Population:
9,479
(U.S. Census Bureau)
General Fund Expenditures
Area:
2.6 square miles
Public Works
12%
Taxable Value:
$695.1 million
Council/Manager Form of Government
The city is governed by an elected seven
member council. The Council appoints a City
Manager to oversee daily operations and
administrative functions.
Services
Basic community services are the highest
priority. These include police and fire
protection; refuse collection, water and
wastewater collection, street maintenance,
public improvements, planning, zoning, and
administrative services. Grosse Pointe
Farm’s quality of life is also enhanced by
recreation and leisure facilities including Pier
Park and the War Memorial.
Recreation and
Culture
9%
Other
21%
Public Safety
35%
General Government:
$1.3 Million
The General Government group
of expenditures includes the
following areas: City Council,
City Manager, City Attorney,
City Assessor, City Clerk,
Elections, Accounting and
Public Services.
Other
Financing Uses
11%
Municipal
Court
2%
General
Government
10%
Public Safety: $4.4 Million
Police and Fire Protection.
Public Works: $1.5 Million
Maintenance costs for major,
local roads. Costs associated
with refuse collection.
The General Fund major program activities are summarized in seven areas: General
Government, Public Safety, Municipal Court, Public Works, Recreation & Culture,
Other, and Other Financing Uses. See the graph above for a breakdown of their
percentages of total expenditures. Other expenditures include contingency and
retirement fund contributions. Other Financing Uses include the transfer of funds to
the Capital Projects Fund, Local Street Fund and Debt Service Fund.
Recreation & Culture:
$1.2 Million
Costs to provide recreation
activities and operation of the
harbor.
Page 1
Fiscal Year Ending June 30, 2014 Financial Summary
Page 14
135
Other Funds Used to Manage City Dollars
130
125
In accordance with Generally Accepted Accounting Principles (GAAP), the City’s
financial activities are accounted for in a variety of funds other than the General
Fund.
120
115
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Special Revenue Funds such as the Major Street, Local Street and Community
Development Block Grant Funds are used to account for the proceeds of specific
revenue sources (other than major capital projects) that are legally restricted to
expenditures for specific purposes.
10,000
8,000
Debt Service Funds account for the accumulation of resources for the annual
6,000
payment of principal, interest and fees in connection with certain long-term debt
other than debt payable from operations of a proprietary fund.
4,000
The Capital Projects Fund tracks financial resources for the acquisition or
2,000
construction of major capital facilities other than those financed by the operations
of a proprietary fund.
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Enterprise Funds like Water, Sewer, Recycling and Municipal Radio System are
4,100
used to account for operations that are similar to private business. Tracking the
net income of Enterprise Funds helps evaluate programs and direct financial
administration.
4,095
Internal Service Funds such as Insurance Retention are used to account for the
4,105
financing of goods and services provided by one department to other
departments of the government on a cost reimbursement basis.
4,090
4,085
4,080
4,075
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
For more detailed information on the above mentioned fund types and where the
totals are represented by function, you should review the Comprehensive Annual
Financial Report (CAFR). Both this summary and the CAFR are available at the
City Clerk, 90 Kerby Rd and the City’s website at: grossepointefarms.org. If
necessary, call (313)640-1602 to request a copy.
100
80
60
40
20
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Page 13
Fiscal Year Ending June 30, 2014 Financial Summary
Page 2
City of Grosse Pointe Farms Economy
Voter Turnout
90%
80%
70%
60%
Grosse Pointe
Grosse Pointe
Grosse Pointe
Birmingham
Northville
Plymouth
Farmington
Grosse Pointe
Grosse Pointe
Farms
Park
- City
Shores
Woods
14.0000
14.1253
14.3135
15.0735
15.3534
16.1734
16.5856
17.8794
20.6834
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
This graph represents voter turnout by fiscal year July 1 – June 30 for
November elections.
The
community’s
taxable
valuation (TV) has halted its
decline in recent years compared
to the 1980’s and 1990’s. In
2013 our taxable value was
$695,096,091
compared
to
$688,401,864 in 2012. 2014 TV
increased 1.7% over the 2013
TV.
A State assessed value of $706
million represents approximately
50% of estimated current market
value.
Taxable value is
determined by the prior year’s
taxable value plus 5% or the
consumer price index (whichever
is less). Starting with the 1994
state equalized value as the base
taxable value, the taxable value
figure is multiplied by the tax rate
to
determine
property
tax
revenue.
City of Grosse Pointe Farms
Employees Retirement System
Schedule of Funding Progress
(Pension Benefit)
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
PSRS
GERS
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Page 3
Fiscal Year Ending June 30, 2014 Financial Summary
The above chart expresses the actuarial value of assets as a percentage of the
actuarial accrued liability, which provides one indication of the system’s funded
status on an ongoing concern basis. Analysis of this percentage over time
indicates whether the system is becoming financially stronger or weaker.
Page 12
2011
City Clerks Office
Dog Licenses Issued
Registered Voters
2012
2013
2014
849
8,103
843
7,918
811
8,307
818
8,279
97
410
143
411
93
400
103
474
Fire
Fire Department Responses
Emergency Medical Runs
Parks & Recreation
Vehicles Entering Park
Municipal Court
Court Case Load
Value in Millions of Dollars
Operation Indicators by Function/Program
1,200,000,000
Assessed
Taxable
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
112,254
119,502
114,313
113,082
5,926
4,835
5,307
5,163
Millage Rate
Mills Per $1,000 of TV
15.000
14.000
13.000
12.000
11.000
10.000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Page 11
Fiscal Year Ending June 30, 2014 Financial Summary
Page 4
The General Fund is the general operating fund of the City and the main focus of this report.
It is used to account for all financial resources except those required to be accounted for in
another fund. General Fund activities are financed by revenues from general property taxes,
state shared revenues and other sources. The General Fund uses the current financial
resources measurement focus and the modified accrual basis of accounting. The modified
accrual basis of accounting recognizes revenues when they are measurable and available
and expenditures are recognized in the period in which governments in general normally
liquidate the related liability, rather than when that liability is first incurred if earlier.
The graph below shows the total revenue and expenditures of this fund from 2005 to 2014.
An indicator of financial strength and stability is a positive fund balance in the General Fund.
Since 2005, the General Fund fund balance has grown from $3.9 to $5.1 million. Fund
Balance is the difference between assets, liabilities, deferred outflows of resources and
deferred inflows of resources. Two factors affect the fluctuations in the tax levy: Tax rate and
taxable value. There was an increase in the tax rate in 2012 and taxable value in 2014.
The financial community has recognized the City’s strong economic indicators and stable
financial operations. Standard & Poor’s gave the City an “AA+” rating for limited tax general
obligation bonds.
Performance Data
Building Permits and Construction
Building PermitsValue Value in $1,000,000
160
140
120
100
80
60
40
20
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total Revenue
Grosse Pointe Farms Building Department processes a wide range of
construction permits each year. New construction and building
improvements improved dramatically over the past few years with the
start-up and renovation of several new homes.
Total Expenditure
In Millions
$15
Police Physical Arrests
$10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
500
450
400
$10,800,000
$10,600,000
$10,400,000
$10,200,000
$10,000,000
$9,800,000
$9,600,000
$9,400,000
$9,200,000
Figure
Figure
Figure
77 7
350
300
250
200
150
100
50
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Page 5
Fiscal Year Ending June 30, 2014 Financial Summary
Page
Page1014
www.grossepointefarms.org
Internet access creates a 24-hour, 7day-a-week service window for citizens
seeking information about the City of
Grosse Pointe Farms.
What’s online at
www.grossepointefarms.org?
City Newsletters
Events Calendar
City Council meeting agendas &
minutes
Building permit applications
Business license and Park Pass
application forms
Annual budgets, financial
summaries and other city
publications
Latest News
City Ordinances
Email access to city administrators
Utility bill information
Comprehensive
Annual
Financial Report
(CAFR)
Evaluating the City’s Financial Condition
The information in this document has
been drawn from the City of Grosse
Pointe Farms Comprehensive Annual
Financial Report (CAFR) for the fiscal
year ended June 30, 2014. Complete
financial statements of the City of
Grosse Pointe Farms with additional
demographic and economic information
are published in the CAFR.
$6
$5
In Millions
City of Grosse Pointe Farms
website
The City was awarded the Certificate of
Achievement for Excellence in Financial
Reporting by the Government Finance
Officers Association of the United
States and Canada (GFOA) for its CAFR
for the fiscal year ended June 30, 2013.
The Certificate of Achievement is the
highest form of recognition for
excellence
in
state
and
local
government financial reporting.
In order to be awarded a Certificate of
Achievement, a government unit must
publish an easily readable and
efficiently organized comprehensive
annual financial report, the contents of
which conform to program standards.
The CAFR must satisfy both generally
accepted accounting principles and
applicable legal requirements.
A
Certificate of Achievement is valid for a
period of one year only. We believe our
CAFR continues to conform to the
Certificate of Achievement program
requirements and we are submitting our
CAFR for the current year to the GFOA.
To request a copy of the CAFR, contact:
John M. Lamerato, City Controller by mail
at: 90 Kerby Rd., Grosse Pointe Farms, MI
48236;
Email at: jlamerato@grossepointefarms.org
or call: (313)640-1602
Page 9
Fiscal Year Ending June 30, 2014 Financial Summary
$4
$3
$2
$1
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Total
Revenue
2005
$
Total
Expenditures
Excess
(Shortfall)
Beginning
Fund Balance
Ending
Fund Balance
As a %
of Revenue
2006
2007
2008
2009
2010
2011
2012
12.1
$ 12.7
$ 13.0
$ 13.2
$ 13.0
$ 12.9
$ 12.5
$ 12.7
11.9
12.6
12.6
13.3
12.9
12.2
13.9
12.5
0.2
0.1
0.4
(0.1)
0.1
0.7
(1.4)
0.2
3.9
$
4.1
4.1
$ 4.2
33.9% 33.1%
4.2
$ 4.6
5.0
4.9
$ 4.9
$ 5.0
35.4% 37.1%
38.5%
5.0
$
6.1
5.7
$ 4.7
44.2%
37.6%
2013
$
4.9
38.6%
12.4
$
12.4
0.1
4.9
$
12.8
12.7
-
4.7
$
2014
4.9
4.9
$
39.5%
5.0
39.1%
Page 6
Revenues
Where the City Gets its Revenue
The City of Grosse Pointe Farms collects funding from eight major sources.
Beyond property taxes, other revenues include licenses and permits, federal grants,
state shared revenue, charges for services, fines and forfeitures, investments
income, and other financing sources. See the chart on page 8 for a breakdown of
what percentage each element represents of the total revenue.
Investment
Income
.7%
Fines and
Forfeitures
2.8%
Other
1.8%
Charges for
Service
11.1%
Property Taxes: $9.3 Million
The City’s total tax rate of $14.00 includes the General
Fund, Refuse Collection and Debt Service. The City is
below its tax rate capacity for general activities. The
General Fund tax levy is $11.5000 mills of the $12.4176
maximum allowable millage.
State Shared
Revenue
6.0%
As indicated in the chart on page 8, the City’s tax rate
represents just 29% of the total property tax bill for all
taxing jurisdictions. Those tax dollars represent 73% of
the City’s total revenue.
Licenses and
Permits
4.7%
Property Tax
72.9%
Licenses and Permits: $.6 Million
Are mainly made up of building permits and trade
licenses and permits.
State-Shared Revenue: $.8 Million
This money is revenue from the State of Michigan,
mainly in the form of a return on sales tax revenue.
Charges for Services: $1.4 Million
Where Does Your Tax Dollar Go?
Fees charged for services and sales.
Some examples of charges for services
include Parking Meters, Boat Mooring Fees
and Rentals.
County
Fines and Forfeitures: $.4 Million
Court fees and costs.
City of GPF
Investment Income: $.1 Million
29%
Generated from interest on investments.
Community
College
Local Schools & Library
46%
25%
Other Revenue: $.2 Million
Generated primarily by rebate fees and lease income.
&
Page 7
Fiscal Year Ending June 30, 2014 Financial Summary
Page 8