The Henry County Board of Commissioners
About the Popular Annual Financial Report
General Henry County Government Information
Outstanding Achievement in Financial Reporting
Revenue Sources and Expenditures
Key Values and Financial Reporting
Financial Management and Government Policies
Glossary of Terms
Photograph by Jon Minnihan Warren Holder Park
2012 POPULAR ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2012
HENRY COUNTY LEADERSHIP
Board of Commissioners
HENRY COUNTY • GEORGIA
Elizabeth ‘B.J.’ Mathis CHAIRMAN
Randy Stamey DISTRICT III
Warren E. Holder DISTRICT I
Reid A. Bowman, Sr. DISTRICT IV
Brian Preston DISTRICT II
Bruce Holmes DISTRICT V
About the PAFR The Popular Annual Financial Report of Henry County is presented as a means of increasing public understanding and confidence in County government and its elected officials through easier, more user-friendly financial reporting. As you review our PAFR, we invite you to share any questions, concerns or recommendations you may have. We are pleased to present the Henry County Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2012. As many governments and retail businesses do, Henry County runs its budget on a “fiscal year,” rather than a calendar year. This is so we can close the accounts during a slower time of the year than December, when property tax is being received and sales tax receipts are higher due to holiday shopping. The U. S. Government and State of Georgia run on a fiscal year of October 1 to September 30. Henry County chooses to run its fiscal year from July 1 to June 30, along with 264 other counties and municipalities in Georgia. This report deals with the fiscal year that ran from July 1, 2011 to June 30, 2012, and is known as FY 11-12. The purpose of this Popular Annual Financial Report is to summarize and simplify information contained in the Comprehensive Annual Financial Report (CAFR) of Henry County, which is due six months after the close of the fiscal year. The County’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America and are independently audited by Mauldin & Jenkins, CPA. The CAFR is available for review online at www.henrycounty-ga.org/Finance. Much of the information in the audited financial statements is necessarily technical and complex. As a
result, the full financial statements may not be particularly useful to the citizens of Henry County who wish to better understand County finances. Seven years ago, Henry County began issuing simplified financial reports, commonly referred to as Popular Annual Financial Reports (PAFR). These reports are intended to better inform the public about their government’s financial condition, without excessive detail or the use of technical accounting terms. This PAFR, which has been generated internally by the Henry County Financial Services Division and the Communications Department, summarizes and explains the information contained in the financial statements for FY 11-12, along with other information on the County’s finances, in easily understood terms. The PAFR is unaudited and does not conform to GAAP and governmental reporting standards. Inside this year’s PAFR, you will find accounting definitions that will help you understand the awards we have won for previous PAFRs, general information about your County government, a brief summary on Henry County’s economy, overviews from different government departments showing how some of your money was spent this fiscal year, financial government policies we follow, and finally, how well your County government did this year.
You may access this document, along with the Comprehensive Annual Financial Report, which contains a detailed financial breakdown, on the Henry County website at www.henrycounty-ga.org/Finance www.henrycounty-ga.org
HENRY COUNTY LEADERSHIP
Your Government Henry County was formed in 1821 from Creek Indian lands. Georgia’s 50th county is located approximately 30 miles southeast of the City of Atlanta, and is considered part of the metropolitan Atlanta area. The County currently occupies 324 square miles of land and serves a population of more than 209,500. Four municipalities are located within Henry County: McDonough, which is the County seat, Stockbridge, Hampton, and Locust Grove. The governing authority of Henry County is a Board of Commissioners consisting of five members elected by district and a Chairman elected at-large. The commissioners serve on a part-time basis and are elected to staggered terms of four years. The commissioners are responsible, among other things, for passing ordinances, adopting the budget, establishing tax rates, appointing committees and hiring both the County’s manager and attorney. The County Manager is responsible for the administration of all of the affairs of the County over which he or she has jurisdiction, including offering positions of classified employment, as well as appointing heads of various departments. Henry County provides a full range of services, including law enforcement; corrections; the construction and maintenance of public buildings, parks, streets, highways, bridges, storm water drainage facilities, and other associated infrastructure; parks and recreational activities; 911 emergency communications; voter registration and elections; court systems; tax assessment and collections; building inspections; geographic information; planning and zoning; recycling; and general administrative and support activities. The County provides police protection to the unincorporated areas of the County and the City of Stockbridge. The County also provides fire protection and emergency medical services to all areas of the County except the City of McDonough, which has its own Fire Department.
HENRY COUNTY • GEORGIA
ELECTED OFFICIALS Sheriff Tax Commissioner District Attorney Senior Superior Court Judge Superior Court Judge Superior Court Judge Clerk of Superior Court Senior State Court Judge State Court Judge State Court Judge State Court Judge Solicitor of State Court Magistrate Court Judge Probate Court Judge Coroner
Keith McBrayer David Curry Tommy Floyd Arch McGarity Wade Crumbley Brian Amero Barbara Harrison Ben Studdard III James T. Chaffin III Ernest Blount Jason T. Harper Charles Alan Spahos Robert Godwin Kelley Powell Donald Cleveland
APPOINTED OFFICIALS County Manager County Clerk County Attorney Planning & Zoning Services Public Works Financial Services
Fred Auletta Shay Mathis LaTonya Wiley Michael Harris Terry McMickle Mike Bush
Outstanding Achievement Henry County has won the Certificate of Achievement for Excellence in Financial Reporting in all years that we have submitted a Popular Annual Financial Report for judging, dating back to 2006.
â€œThe Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Henry County Board of Commissioners, Georgia, for its Popular Annual Financial Report for the fiscal year ended June 30, 2011. 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. This is the fifth year that Henry County has received this prestigious award.
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. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA.â€?
REVENUES & EXPENDITURES
Revenue Sources Property Taxes • $62,890,831 (56.21%) Sales Taxes • $19,406,061 (17.34%) Other Taxes • $8,425,228 (7.53%) Licenses & Permits • $1,476,904 (1.32%) Intergovernmental • $3,317,959 (2.97%) Fines & Forfeitures • $3,744,628 (3.35%) Charges for Services • $10,953,336 (9.79%) Miscellaneous • $1,606,655 (1.44%) Investments • $43,915 (0.04%) Contributions • $18,557 (0.02%)
TOTAL REVENUES • $111,884,074 Total General Fund revenues of the fiscal year, which ended June 30, 2012 were $111,884,074. Revenues of the prior year were $112,477,055. Revenues decreased by $592,891 (0.53%) due to a reduction in residential property values affected by foreclosures and bank sales included in calculations of the value of all properties. Sales tax also increased due to a slight upward trend in the local economy.
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Public Safety • $57,406,603 (53.78%) Public Works • $7,573,243 (7.10%) Health & Welfare • $5,622,576 (5.27%) Culture & Recreation • $5,515,947 (5.17%) Housing & Development • $2,693,445 (2.52%) General Government • $14,155,953 (13.26%) Judicial • $13,770,103 (12.90%)
TOTAL EXPENDITURES • $106,737,870 Total expenses during the year ended June 30, 2012 were $106,737,870. Expenditures of the prior year were $111,675,095. The decrease in expenditures of $4,937,225 (4.63%) is primarily related to a combined effort by all departments to tightly manage spending, the consolidation of several departments, not filling vacant positions and observing four furlough days.
Department Overviews Atlanta South Regional Airport • 14 Animal Care & Control • 16 Code Enforcement • 17 Communications • 17 Fire Department • 17
Human Resources • 19 Neighborhood Stabilization Program • 19 Police Department • 20 Purchasing • 21 Transit • 21
2012 POPULAR ANNUAL FINANCIAL REPORT
DEPARTMENT OVERVIEWS According to 2010 Census estimates, Henr y County is the 9th most populous county in Georgia. At 324 square miles, Henry ranks 93rd (out of 159) in the state in area and is the fifth largest in the 10-county region. As of 2012, the reported population was 209,500. Henry County's ever-changing demographics and growing population are ser ved by approximately 1,582 employees spanning a variety of divisions, departments, and partnerships, a few of which are highlighted in the following pages.
ATLANTA SOUTH REGIONAL AIRPORT Economic Development, that is taking an active role in attracting industry and quality jobs to our community, is a critical function of local government. In a down economy, the importance of that role becomes all the more evident, as those communities that have fared the best throughout this recession are those with a number of diverse industries.
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What it takes to attract these key industries to a community is a combination of an available educated workforce, economic incentives, quality of life and infrastructure, which has traditionally meant roads and water. But in todayâ€™s time-is-money world, more and more corporations are looking to locate in communities with airfields nearby that will enable them to fly their executives directly into their community on their private
Plans for South Atlanta Regional Airport include constructing a 1000’ extension to the runway and widening the entire length of the runway by 25 feet, as well as constructing a new taxiway to the end of the new runway.
planes, avoiding the hassle of commercial airlines and busy airports. There is also an enormous opportunity for direct economic growth within the aerospace industry. The Georgia Department of Economic Development, the state’s marketing arm, is charged with recruiting new jobs and investment to Georgia, which is currently ranked 8th in U.S. aerospace industry employment. Since the average aerospace worker in Georgia earns over $61,300 annually, 43% higher than the average for the state, it isn’t surprising that aviation and aerospace projects are an important target industry segment for the state. “There are numerous benefits for communities that have up-to-date aviation facilities,” explained Bob White, Executive Director of the Henry County Development Authority. “Modern aircraft, including corporate jets, are very expensive to own, operate and maintain. Increased ad valorem taxes for aircraft housed within the county, together with fuel sales and other aviation investments add to the local tax base, while airframe, mechanical system and avionics repair businesses provide highly-sought technical jobs that will stimulate the local economy further. The acquisition of Tara Field will help to “level the playing field” with other
communities that have already invested in enhanced aviation infrastructure.” With its proximity to Atlanta Motor Speedway, its location in an Opportunity Zone that will provide job tax credits to businesses located within the Zone, and thousands of acres of vacant land surrounding it, the airport is projected to be a powerful catalyst for economic development. This includes the expansion and/or creation of quality jobs in airframe, mechanical system and avionics repair businesses adjacent the airport as well as other high-paying jobs. By positioning the airport to be both an economic driver and the preferred choice for aviation South of Atlanta, the County and its airport operations will benefit directly as well, through increased ad valorem taxes on aircraft housed at the airport, as well as fuel sales, hangar rents and other outside aviation investments that will add to the local tax base. This potential is precisely why Henry County made the acquisition of Tara Field one of its chief strategies in its Economic Development Plan completed in 2009. And it is also why Henry County acted in 2011, with budgets as tight as they are, to purchase the facility. But there is another major reason for making the acquisition at that time: the County was able to take www.henrycounty-ga.org
DEPARTMENT OVERVIEWS advantage of an infusion of funding from the Federal Aviation Administration (FAA) and the Georgia Department of Transportation (GDOT) that amounts to approximately 95 percent of the total purchase amount, thereby putting minimum burden on local taxpayers in making this key investment to Henry County’s economic future. Thanks to the funding from the FAA and GDOT, Henry County government paid just $2.7 million toward the purchase price of $17.7 million. Plans are to construct a 1000’ extension to the runway, bringing the total length to 5,503 feet with a 490-foot displaced threshold; widen the entire length of the runway by 25 feet for a total width of 100 feet; and construct a new taxiway to the end of the new runway. The extension will allow larger planes, such as corporate jets, to fly safely in to and out of the airport. This will, in turn, increase traffic and fuel sales at the airport, while also positioning Henry County to attract businesses that desire airports to be located nearby for convenient executive travel.
ANIMAL CARE & CONTROL The mission of Henry County Animal Care & Control is to enforce the state laws and county ordinances pertaining to animal control and management; educate the community in responsible pet ownership and wildlife care; and provide for the housing and care of stray, homeless, and animals impounded due to violations of the County’s animal control ordinance. In fiscal year 2011 - 2012, Animal Control Officers responded to a total of 8,304 complaints. They issued 1,385 warnings and 334 citations. The Animal Care and Control Shelter, located at 527 Hampton Street in McDonough, housed 5,694 animals during the fiscal year. Of those, 571 animals were reclaimed by their owners, 797 were adopted from the shelter, and 1,081 went to licensed rescue groups. The department also handles rabies control for Henry County. In Fiscal Year 2011-2012, the department submitted a total of 28 animals for rabies testing. Of these, two animals were found to be positive for the
HENRY COUNTY • GEORGIA
Atlanta Humane Society staff work inside the Surgical Utility Vehicle during a free mobile spay/neuter clinic.
virus. To combat rabies, the department offers a lowcost rabies vaccine clinic twice a year. Approximately 200 Henry County companion animals were vaccinated against the rabies virus at each clinic. A low-cost spay/neuter clinic continues twice a month, at no cost to the County, to assist in lowering the number of unwanted puppies and kittens in the community. Approximately 60 pets are spayed or neutered through the clinics each month. Animal Control has increased awareness of adoption and pet rescue opportunities through “Pet of the Week” features in local media and on various Internet-based adoption sites such as Petfinder.com. Animal Control has developed a “Bite Prevention” education program for children in Pre-K through Elementary grades, and has established the “Friends of Henry County Animal Shelter Volunteer Program,” allowing adults 18 years of age and older the opportunity to assist in enriching the lives of companion animals housed at the shelter and to assist with adoption and rescue efforts. The Department has also established the “Kibble Cart,” a program which provides pet food to the pets of senior citizens who are serviced by the County’s Meals on Wheels Program. In an attempt to reunite as many lost pets as possible with their owners, the Department offers low cost pet micro-chipping which provides permanent owner identification for pets. All pets that leave the
shelter via adoption or transfer to rescue organizations are microchipped before leaving the shelter. Pet owners may come to the shelter at any time, during normal business hours and have their personal pets microchipped.
CODE ENFORCEMENT The Code Enforcement Division is responsible for enforcing the Codes and Ordinances of the County. Code Enforcement is required to assist other Departments of the County in the prosecution of cases such as violations of the building codes, health ordinances, and water ordinances, among others. Usually, the Code Enforcement Department will issue a warning notice to violators, giving the violator an opportunity to comply within a set time limit. A summons to Magistrate Court is normally the last resort. In FY 11-12, Code Enforcement Officers answered 7,396 complaints. They issued 1,820 warnings, and 278 citations. Code Enforcement also escorted four houses being moved through the County.
COMMUNICATIONS The mission of the Henry County Communications Department is to promote and educate the public about County news, programs, services and events. To achieve these goals, the Department continues to enhance and expand its communications tools. The department published nearly 250 press releases in 2012, compiled those into newsletters that reach nearly 3,000 citizens weekly, and began using the social media site, Twitter, to more efficiently communicate news to citizens and quickly racked up more than 1,200 followers. The county’s website has grown to more than 7,200 pages and receives approximately 130,000 visitors per month. As the marketing arm of the County, the Department provides writing and graphic design
Julie Hoover-Ernst, Communications Director, District 2 Commissioner, Brian Preston and Major Jason Bolton, Henry County Police Department, on the television program Inside Out, produced by the Henry County Communications Department.
services for every department and helped produce numerous color brochures and reports for County departments, including the award-winning 2011 Popular Annual Financial Report. The Communications Department also operates Henry TV14, the County’s government access channel and produces all of its programming internally. This year, several new programs were launched. In addition to Commission meetings and a weekly news program called Update, Henry TV14’s line up now includes the Zoning Advisory Board meetings, the talk show, Inside Out, which goes in-depth on topics and issues from the perspective of Commissioners and others inside local government, and a new exercise program for homebound seniors taught by Henry County Senior Services called SilverTone.
FIRE DEPARTMENT During fiscal year 2012, the Henry County Fire Department was very successful in responding to emergency calls for help and providing the citizens with a notable amount of property saved from fire. The Henry County Fire Department saved $31 million of approximately $33 million worth of property that had been threatened by fire. However, the Henry County Fire Department provides services well beyond just fighting
Henry County Fire Department personnel deploy an aerial apparatus equipped with a platform, saving critical seconds to get a man to safety after being severely injured from striking a roof top power line.
fires. The department answered a total of 21,544 requests for assistance. The breakdown is as follows: 745 fire responses, 198 hazardous materials situations, 16,713 Rescue/Emergency Medical Calls, 2,595 other hazardous responses, 726 false alarms, 356 mutual aid responses, and 211 other responses. Our Advance Life Support transport ambulances transported 12,235 patients to area hospitals and made another 5,163 patient contacts offering assistance. The department‘s Training Division conducted 485 training classes and our personnel logged 89,062 hours of training. The training division continued to provide firefighter training, technical rescue, hazardous materials, professional development, safety training, and the paramedic academy, thereby offering continual high quality education opportunities for personnel. A recruit class of fourteen new firefighters began training just prior to the end of this fiscal year. The department’s Prevention Division conducted 6,744 existing building inspections and 591 new construction inspections, reviewed 389 building plans, and attended 250 pre-construction meetings. The arson investigators investigated 104 fires. The smoke alarm program assisted 111 residents with the installation and/or donation of smoke alarms. The child occupant safety program inspected and/or installed 65 car seats for parents and caregivers. The Prevention staff reached 18
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out to schools, daycares, senior centers, and local organizations to provide fire safety education to children, seniors, and all ages in between. The Fire Department’s Prevention Division’s purpose is to educate the public to “Prevent the Preventable” fire and life safety incidents. The mission is accomplished through inspections, life safety code enforcement, fire safety education presentations and career days at day cares, both public and private schools, senior centers, and assisted living homes. The department also hosts tours of the Fire Safety Theater, located at Station 3 in Stockbridge, and organizes tours at the other fire stations. Fire and Life Safety Education was provided for nearly 35,500 citizens in FY 2012. The division was also fortunate to be a recipient of the Georgia Firefighter’s Burn Foundation 2012 Brant Chesney Memorial Grant funding the Juvenile Firesetter Program. The department held its fifth and sixth Citizens Fire Academy Classes, graduating a total of 24 citizens from the 10 week program. The academy is designed to involve citizens in departmental activities by providing them with information on the day-to-day operations of the fire department. In October of 2011, Chief Bill Lacy was named the Henry County Fire Chief. Two new fire department pumpers were placed in service replacing obsolete equipment as well as placing a first response medical unit in the Hampton area using existing personnel and equipment. In October, the department embarked on the
Ike McConnell, Henry County Fire Department Training Chief, works with citizens during the Citizens Fire Academy, explaining fire behavior and fire extinguishers.
Insurance Service Office (ISO) evaluation process and received a better (reduced) ISO rating which, may help to lower homeowners’ insurance premiums for Henry County property owners. Fourteen new recruits entered into firefighter training to fill existing open positions. Major events included: Hosting the 4th Annual Atlanta Live Ammonia Release Drill, the 2nd Annual Metro Atlanta Training Officers Workshop Seminar, the 3rd Annual Fire Explorer Expo, and the 4th Annual Georgia Fire Investigator’s Association Spring Arson Seminar. In every project the department undertakes, the ultimate goal is to provide Henry County citizens the best professional and efficient fire protection and emergency services, while creating a safe work environment for emergency personnel.
HUMAN RESOURCES The Human Resources Department had a busy year, responding to the needs of County citizens and approximately 1,600 employees in a variety of ways. During this past fiscal year, Human Resources processed 4,649 applications for employment, about 10% less than the previous fiscal year. Henry County hired 153 new employees, compared to 132 last fiscal year. These hirings were to replace 74 openings created by employees who resigned. Internally, the department processed 141,312 pieces of mail and handled 1,179 personnel action forms (including new hires, resignations/retirements, terminations, transfers, promotions, and suspensions) and 308 FMLA requests.
NEIGHBORHOOD STABILIZATION PROGRAM Henry County is one of 23 Counties or municipalities in Georgia to be awarded funding from the Georgia Department of Community Affairs (DCA) for its Neighborhood Stabilization Program (NSP), which was created under the Housing and Economic Recovery Act of 2008. Designed to assist states and certain local communities experiencing particularly high foreclosure problems and risk of property abandonment, the NSP
Direct Allocation pool has allocated more than $54 million for projects that meet a minimum $500,000 funding threshold. Henry County received more than $6 million in funding through the Neighborhood Stabilization Program in March 2009 — nearly three times more than the average award amount. The 3rd round of NSP awarded $530,473.00 to Henry County from the Department of Community Affairs (DCA), with which, 14 homes were purchased, 9 have sold, 4 are in inventory and 1 is under contract. The 3rd round of HUD awards totaled $1,217,736.00 with which 8 homes were purchased, 5 have been sold, 2 are in inventory and 1 is under contract. The Neighborhood Stabilization Program has proven to be a success in Henry County by enabling foreclosed homes to be put into the hands of buyers. The program not only helps people realize the dream of homeownership, but puts properties back into the tax digest and alleviates the problems associated with foreclosed homes. The objective of the program is to purchase foreclosed residential property for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of property. The program offers downpayment assistance, up to $25,000, to qualified homebuyers. But there are income restrictions; for example, an individual can make up to $57,480 a year and a family of six can have a yearly income of up to $95,160. The program requires buyers to be U.S. citizens, to take an eight-hour homebuyer education course and qualify for a mortgage with a lender that complies with sound lending practices. At the time the program began, Henry County had a foreclosure rate of 5.1 percent, with nearly 2,500 homes in foreclosure. Under the program, Henry County has purchased 103 homes and has sold 96 houses, with 3 in inventory and 5 more under contract. Henry County has 18 months to draw down the initial funds, with four years to spend all of the income generated from the program, which will be reinvested into the program to help even more families. Henry County NSP met the 25% obligation in 8 months which was well ahead of schedule. The HUD program will meet the 25% obligation by March of 2013. www.henrycounty-ga.org
An officer with the Police Department used the Firing Range at the Henry County Public Safety Training Center for the first time after it's completion in February 2012. In addition to utilizing the facility to train Henry County Public Safety personnel, the firing range is also open to citizens.
POLICE DEPARTMENT The Henry County Police Department continues to provide citizens with the best possible law enforcement protection through the upgrading of equipment, the most up-to-date training available, and information sharing. In FY 11-12, the Police Department responded to 173,466 calls for service. They made 460 drug arrests and 641 driving under the influence (DUI) arrests. Compared to the same time period FY 10-11, Henry County saw decreases in rape, larceny (theft), stolen vehicles, and forgeries; with no increase in homicides or aggravated assaults. One area of concern is in the prevalence of narcotics. The Police Department has joined with the Flint Circuit Drug Task Force, a cooperative task force involving multiple local agencies (Hampton, Locust Grove, McDonough, the District Attorney's Office, Henry County Sheriff's Office and the Solicitorâ€™s Office) in a
HENRY COUNTY â€˘ GEORGIA
mutually beneficial effort in the fight against narcotics. Another emphasis for the Police Department is larceny related crimes, to include the theft of metals. Due to a cooperative effort with the Cities of Hampton, Locust Grove, McDonough and Stockbridge, a grant was awarded for the purpose of obtaining a shared reporting system for pawn shops, recyclers, precious metals & gems dealers and the like to aid in improving the recovery of stolen properties, the apprehension of offenders and the reduction of larceny events. The Police Department continues its efforts to keep our roads safe by participating in the H.E.A.T. (Highway Enforcement of Aggressive Traffic) program in conjunction with a MOTORS Unit and Traffic Accident Investigation Unit. As compared to FY 10-11, FY 11-12 saw no change in fatalities and about a 2% increase in accidents.
PURCHASING The Henry County Purchasing Department actively directs the County’s procurement operations and contract administration activities within the guidelines of state and local government ordinances. This department develops, coordinates, and evaluates procurement and contract administration practices, providing guidance and support to all departments under the Board of Commissioners as well as Elected Officials and Constitutional Officers. Purchasing’s primary goal is to assure all departments receive the best quality at the lowest cost, which in turn saves taxpayers’ dollars. Performing contract administration with excellent standards of ethical conduct and professionalism is also of upmost importance. In 2011, the Henry County Purchasing Department processed 5,466 purchase orders, 81 written bids, and 43 sealed bids, proposals, or qualifications. All large purchases must go before the Board of Commissioners for approval before the order can be placed. Henry County can also take advantage of state and federal contract pricing on certain items, such as vehicles and janitorial supplies, which saves both the time and expense of the bid process. Regardless of whether it’s through a bid or through a contract, Purchasing is always working to assure that the County – and therefore the taxpayers – gets the best value for those items. In fact, it is estimated that the Purchasing Department has saved Henry County taxpayers nearly $5 million over the last four years alone through the bidding process. All bids are advertised in the Henry Daily Herald, the County's legal organ, GLGA, TeamGeorgia Marketplace and on-line.
Henry County Transit vehicles, like the one pictured above, will be housed in a new facility, set to open in December 2012.
for citizens under age 60. For citizens over 60 years of age, the fare is $2 per person, per stop. In FY 2012, the Transit Department provided 93,901 trips for citizens attending medical, shopping, education and employment activities. Of those trips, 62,799 were provided for non-elderly citizens and 31,102 for elderly residents. The Transit Department was awarded $547,674 in American Recovery and Reinvestment Act funds from the Federal Transit Administration. Those funds were used for capital improvements which included a Lube Shop and additional buses for the department. An additional grant with the Federal Transit Administration will provide funds for a new Transit facility which will house the day to day operations of the department and secure a parking area for buses. The estimated cost for the new Transit facility is $997,000.00, construction began May 16, 2012 and the department anticipates moving into the new facility in December 2012.
TRANSIT The function of Henry County Transit is to provide safe, reliable, accessible, and affordable transportation to the citizens of Henry County. Henry County Transit provides curb-to-curb service based on a first-come-first-served reservation system MondayFriday, 6 a.m. to 6 p.m. Fares are $4 per person, per stop
Financial Snapshot Government-wide financial statements are designed to provide readers with a broad overview of Henry County’s finances, in a manner similar to a private sector business. There is one government-wide financial statement presented in this report, the Statement of Net Assets (Table 1). This statement presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. The Statement of Activities (Table 2) provides information on the County’s revenues and expenses and reports the difference between the two as the change in net assets. Over time, increases and decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating.
In the case of Henry County, assets exceeded liabilities by $654,239,823 at the close of the most recent fiscal year. By far the largest portion of the County’s net assets (86.9 percent) reflects its investment in capital (e.g., land, buildings, machinery and equipment, and roads), less any related debt used to acquire those assets that are still outstanding. The County uses these assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
TABLE 1 • Statement of Net Assets as of June 30, 2012 Total Assets Total Liabilities Total Net Assets
2012 $785,292,038 $131,052,215 $654,239,823
2011 $779,147,688 $153,611,077 $625,536,611
2010 $792,686,609 $174,764,312 $617,922,297
TABLE 2 • Statement of Activities for the Fiscal Year Ended June 30, 2012 Total Revenues Total Expenditures Increase in Net Assets Net Assets, Beginning of Year Net Assets, End of Year
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2012 $165,701,586 $158,087,272 $7,614,314 $617,922,297 $625,536,611
2011 $165,701,586 $158,087,272 $7,614,314 $617,922,297 $625,536,611
2010 $196,837,880 $154,445,388 $42,382,492 $575,539,805 $617,922,297
Where Your Property Tax Dollars Go
THE LOCAL ECONOMY
General Fund The General Fund is the chief operating fund of Henry County. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $31,756,428, while the total fund balance reached $36,223,396. As a measure of the General Fund’s liquidity, it may be useful to compare both the unassigned fund balance and the total fund balance to total fund expenditures. Unassigned fund balance represents 28.4% of total General Fund expenditures, while total fund balance represents 32.43% of that same amount. Henry County’s reserved fund balance is small and a portion of it is reser ved for fire safety and prepaid items. The balance of the County’s General Fund decreased by $3,337,596 during the current fiscal year. This was due to the decrease in Property Tax, SPLOST, Fines and Forfeitures, Licenses and Permits and Interest Revenues. The original budget did not use fund balance, however, we had to use $3,337,596 during the year due to a reduction in revenues provided by the ambulatory services. GOVERNMENTAL FUND The focus of Henry County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the County’s governmental funds reported combined ending fund balances of $100,781,067 a decrease of $13,382,329 in comparison with the prior year. There are several factors that came together to create the decrease in fund balance within the governmental funds. One reason is the decrease in the 2008 SPLOST Fund, which had a
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decrease in fund balance due to the cost of all the projects currently being constructed under the SPLOST program. In addition, the 2002 SPLOST Fund is nearing completion and doesn’t have revenues to offset the expenditures which is consistent with these type programs. Approximately 27.0% of the ending fund balance ($26,853,755) constitutes unassigned fund balance, which is available for spending at the government’s discretion. An additional $5,579,848 is classified as non-spendable for prepaid expenses, and advances to other funds, and the remaining fund balance, totaling $68,347,464, is classified as restricted to indicate that it is not available for new spending because it has already been committed for Capital Projects ($36,067,022), for drug abuse treatment ($1,230,591), for federal and state grants ($2,262,425),
for law enforcement purposes ($5,872,055), for public for Henry County is $526,242,758, which is significantly safety purposes ($4,282,437) and for debt service more than Henry County’s outstanding general payments ($18,632,934). obligation debt.
DEBT SERVICE FUND
Henry County’s investment in capital assets for its governmental activities as of June 30, 2012 amounts to $646,583,676 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges.
The Debt Service Fund has a total fund balance of $18,632,934, all of which is reserved for payment of debt service. Interest revenue for the current year was $15,936. Total expenditures in the Debt Service Fund were $27,183,536, which included principle retirements of $3,073,807, and interest and fiscal charges of $314,114. The net increase in fund balance during the current year in the Debt Service Fund was $314,114. This increase was due to the County transferring funds from the SPLOST III Fund in preparation of making the necessary debt service payments for the bonds issued in 2009.
LONG-TERM DEBT At the end of the current fiscal year, Henry County had total bonded debt outstanding of $55,959,818, which is backed by the full faith and credit of the government. The $54,530,000 general obligation bond issuances are the combination Series A bonds that were issued in October 2008 for $19,950,000, and the Series B bonds that were issued in March 2009 for $67,290,000. This bond issuance has allowed the County to construct capital buildings and improvements at today’s prices, saving tax payers money, while also enabling citizens to begin enjoying facilities sooner and get traffic relief faster. Henry County’s Special Purpose Local Option Sales Tax (SPLOST) program is to be paid back during fiscal years 2010, 2011, 2012, 2013 and 2014. Current year interest payments were made in July and December in the amount of $2,180,888 and principal payments were made in July in the amount of $16,955,000. The bonds will be paid off with proceeds from the monthly collection of the 2008 SPLOST revenue. Henry County’s enterprise fund, which is reported under business-type activities, did not incur any debt and did not have debt in prior years. Henry County maintains an “Aa1” issuer rating from Moody’s and an “AA” rating from Standard and Poor’s for general obligation debt. This enables the County to borrow money at a much lower interest rate. State statutes limit the amount of general obligation debt a governmental entity may issue to 10% of its total assessed calculation. The current limitation
SPLOST The 2008 Special Purpose Local Option Sales Tax (SPLOST) accounts for the financial resources provided from the 2008 one percent Special Local Option Sales Tax. These resources must be used for various building projects and road improvements throughout the County. At the end of fiscal year 2012, the total fund balance was $30,439,172, a decrease of $6,430,608 from the prior year. The decrease in fund balance is due to large projects that are continuing to be built each year. As the large projects continue to be built, the fund balance will decrease over the life of the SPLOST program.
ASSETS Governmental assets installed during the year totaled $29,473,987. This investment in capital assets includes land, buildings and system improvements, as well as machinery and equipment, park facilities, roads, highways, and bridges. Major projects consisted of the following: • Acquisition of land for right-of-ways • Acquisition of land for future governmental use
THE LOCAL ECONOMY • Acquisition of land for future governmental use • Addition of completed roads • Equipment for public safety and public works • Computer servers and equipment The largest portion of the increase came from the construction in progress. Henry County’s SPLOST program is currently building capital and road projects that are at the peak of construction. Work was completed on a replacement Fire Station, an Emergency Operations Center, and numerous park upgrades, including improvements to the North Mt. Carmel Soccer Complex.
BUDGETARY HIGHLIGHTS Property tax revenue decreased by $4,428,180 (6.6%) during the year. Most of this decrease is due to reductions in residential property taxes due to the State requiring foreclosure and bank sales to be included in calculations of the tax values of all properties. Sales tax revenue increased by $4,336,589 (9.7%) during the year. This is mainly due to a slight upturn in the local economy. Unrestricted investment earnings decreased by $37,449 (30.5%) during the year because of the fall of interest rates related to the economy. During the year, there was a decrease of $409,854 in appropriations between the original and final amended budget. General government activities showed a decrease of $402,782 due to the distribution of unallocated funds originally budgeted for vacancies and new positions. There was also a decrease in judicial functions, in the amount of $30,157, due Superior, State, Magistrate, Probate and Juvenile Courts reducing their expenditures from previous years. Lastly, there was an increase in housing and development of $213,256, due to grants received by the landscaping improvements. Public Safety functions saw an decrease, totaling $703,688, due to distribution of unallocated funds originally budgeted for vacancies and new positions. There was an increase in Public Works Services and related capital assets amounting to $53,789, due to the increased productivity of the DOT crews. More 26
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asphalt was put down in fiscal year 2012 due to good weather for the majority of the year. Health and Welfare Services also increased their budget a total of $708,863, due to grants received by the Transit department to purchase equipment and two buildings. Culture and Recreation went up $507,573, due to additional personnel for after school and summer camp programs, along with other programs being run by the Parks and Recreation Department.
ECONOMIC FACTORS & NEXT YEAR’S BUDGET Henry County is strategically located along I-75 with a total of seven interchanges within its borders. With a low cost of living, temperate climate and easy access to Atlanta, Henry County provides all the conveniences of a large city, in a small town atmosphere. State and national economic indicators at one time placed Henry County in an enviable position as one of the nation’s fastest-growing communities, and in fact, between 2000 and 2006, Henry County was ranked the 2nd fastest-growing county in Georgia, and the 8th fastest-growing county in the nation. Henry County added 66,693 residents during that period, and as of July 1, 2012, had an estimated population of 209,500. This continued growth has fueled expansions in the economic sector. Henry County has a rich variety of retail establishments ranging from large stores in outlying shopping centers to small “Mom and Pop” shops that serve the downtown areas. In fact, the Tanger Factory Outlet shopping complex in Locust Grove draws more than two million shoppers annually. The unemployment rate for Henry County is currently 9.5%, which is 1.4% lower than the rate of one year ago. The unemployment rate for the State of Georgia at June 30, 2012 is 9.0%. A very large sector of Henry County’s working population was in construction, and there has been a large decrease in construction in Henry County as well as Georgia. In addition to the permanent residents and businesses of Henry County, the County hosts a major sporting event each year, aiding in the export of our tax burden through our Local and Special Purpose Local
Option Sales Taxes. The National Association of Stock Car Racing (NASCAR) event is held each year at the Atlanta Motor Speedway in Hampton. Atlanta Motor Speedway accounts for more than half of metro Atlanta’s total revenue derived from sports and was projected to bring in $2.275 billion of the metro area’s $4.5 billion income from sports from years 2000 - 2006. In Fiscal Year 2001, monthly Local Option Sales Tax collections grew at a rate of 10.92% over 2000. In fiscal year 2002, LOST collections grew by 9.12% over 2001 collections. In Fiscal Year 2003, monthly collections increased by 7.47% over 2002. In Fiscal Year 2004, monthly collections increased by 11.42% over 2003. In Fiscal Year 2005, monthly collections increased by 9.52% over 2004. In Fiscal Year 2006, monthly collections increased by 14.00% over 2005. In Fiscal Year 2007, monthly collections increased by 6.11% over 2006. In fiscal year 2008, monthly collections decreased by 3.29% from 2007. In fiscal year 2009, monthly collections decreased by 15.3% from 2008. In fiscal year 2010, monthly collections increased by 6.52% over 2009. In fiscal year 2011, monthly collections decreased by 1.0% over 2010. In fiscal year 2012, monthly collections increased by 7.4% over 2011. To help offset the rising costs of the County Jail, the Henry County Court System has created several accountability courts. There is a Mental Health Court, a DUI Court, and a Drug Court. The most impressive part of adding these additional courts is that the Court System is helping to reduce jail costs and improve recidivism rates, all without creating a burden on the General Fund. Based on the 2010 census, Henry County became an Entitlement County. Henry County applied for the yearly allocation of money given to Entitlement Counties and was awarded $850,000. In the past, Henry County had to compete against other non-entitlement groups for grants up to $500,000. Now the County won’t be required to compete, but it will have to follow rigorous guidelines to make sure Henry County is considered for the yearly allocations. The new 2008 SPLOST, which started on
April 1, 2009, now has an estimated collection of $180,000,000. Based on fiscal years 2008 and 2009 collections, the County felt it necessary to adjust the target downward from the $240,000,000 estimated in the prior fiscal year. Henry County has spent this money building capital projects, such as a new fire station, an expansion of the County jail, and park projects. Road projects continue, consisting of paving dirt roads, improving intersections, building new roads and working on bridges. Henry County also used in-house departments during 2012 to help with current projects. With the slowdown in construction, bids are more competitive and contractors are able to do more work in the same amount of time. Henry County expects to continue to feel the effect of the slowdown in the housing market along with a decline in impact fees generated by new building permits. However, due to major commercial building projects still slated for Henry County, the County is hopeful that these declines will stabilize and take an upward turn within the next budget cycle. During 2012 and going forward, Henry County is doing its part to try and secure outside funding sources such as grants and other bonding opportunities to continue to construct road and capital projects that would have otherwise been postponed due to the reduction in SPLOST collections as a result of the sluggish economy.
KEY VALUES & FINANCIAL REPORTING
Financial Reporting The key values of the County’s financial management include fiscal integrity, prudence, planning, accountability, honesty, and openness. Specifically, it is the County’s intent to maximize the level of public goods and services while minimizing the level of debt. If effectively used, the County’s budget serves as the primary tool in allocating financial resources to programs and services. Specifically, the budget can serve as a policy making tool, a management tool, a financial tool, and a communication tool. For accountability purposes, the County operates in a “fish bowl.” That is, decisions are made in an open public forum ensuring the County is accountable to its citizens while pursuing goals of efficiency and effectiveness. Henry County’s financial statements have been audited by Mauldin & Jenkins, Certified Public Accountants, LLC. The audit was conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that the audit be planned and performed to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether caused by error, fraudulent financial reporting or misappropriation of assets. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Accordingly, the audit was designed to obtain reasonable, rather than absolute, assurance about the financial statements. This financial report is designed to provide a general overview of Henry County’s finances. Information in this report is taken from the 2011-2012 Comprehensive Annual Financial Report, which is available for public review on the Finance Department page of the Henry County Board of Commissioners’ website at www.henrycounty-ga.org.
You may access this document, along with the Comprehensive Annual Financial Report, which contains a detailed financial breakdown, on the Henry County website at www.henrycounty-ga.org/Finance
HENRY COUNTY • GEORGIA
How Henry Countyâ€™s Fund Balance Has Changed 2001 2002
2009 2010 2011 2012
$43,079,966 $39,243,083 $36,223,396 $37,362,384
Fiscal year ending June 30, 2012. An analysis of the fund balance of the General Fund for the last eleven fiscal years is shown.
Financial Management Henry County has a responsibility to carefully account for public funds, to manage County finances wisely, and to plan for the provision of public services. CASH MANAGEMENT Cash management is complex because, unlike private businesses, Henry County has a broader range of responsibilities. The County is expected to address the community’s social issues, protect the citizens’ interests, provide public safety, and enforce laws and regulations. Henry County has contracted with Wachovia Bank to provide banking services, and Merrill Lynch to provide investment services. All operating funds of the County are carried in interest-bearing checking accounts, which bear interest at a special rate for nonprofit and government entities. The County does not currently incur financial fees or charges for banking services. In relation to our prudent financial management, Henry County maintains an Aa1 credit rating from Moody’s Investor Services and an “AA” rating from Standard and Poors. This rating produces significant interest savings and is solid evidence of our financial strength and stability.
public hearings on the proposed budget and to adopt a final budget by no later than June 30, the close of Henry County’s fiscal year. The appropriated budget is prepared by fund and department. The County Manager may make transfers of appropriations within a department. Transfers of appropriations between departments and the appropriation of additional funds, however, require the special approval of the Board of Commissioners.
This report includes all funds of the County, as well as those component units that have been determined to meet the criteria for inclusion in the County’s reporting entity. Henry County Water and Sewerage Authority, the Henry County Health Department, the Henry County Library System, and the Henry County Development Authority are all legally separate entities that are component units of the County due to the significance of their operational or financial relationships with the BUDGET PROCESS The annual budget serves as the foundation for County. Financial information for these component units Henry County’s financial planning and control. All is reported separately from the financial information departments and agencies of Henry County are required presented for the primary government itself. Financial to submit requests for appropriations to the County information on these four entities can be found in the Manager in March each year. The County Manager uses Notes to the Financial Statement in the 2010 Henry these requests as the starting point for developing a County Comprehensive Annual Financial Report at proposed budget. The County Manager then presents www.henrycounty-ga.org/Finance. this proposed budget to the Board of Commissioners for review during the month of May. The Board of Commissioners is required to hold 30
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Glossary of Terms Appropriations: An authorization granted by the Board Fund Balance: The portion of fund revenue over of Commissioners to spend revenue for purposes expenditures available for use. specified in the appropriation act. General Fund: A fund used to account for the ordinary Assets: Items of ownership. Assets can include cash, operations of the County government that are financed stock, land, buildings, machinery, furniture, and other from taxes and other general revenue. equipment. There are several categories of Assets: Liabilities: Future spending of revenue as a result of • Capital Assets: Assets of a long-term character past transactions and other past events. Liabilities are (beyond the current year) that are intended to continue reported on a balance sheet and are divided into to be held or used, such as land, buildings, vehicles, two categories: machinery, furniture, and other equipment. • Current Liabilities: These liabilities are • Net Assets: The difference between total capital reasonably expected to be liquidated within a year. They assets and total capital liabilities. (Example: If the County usually include payables such as wages, accounts, owns a building worth $10 million, and we owe $4 taxes, and accounts payable, unearned revenue when million on it, the Net Asset of the building is $6 million.) adjusting entries, portions of long-term bonds to be paid • Restricted Assets: Assets that may not be used this year, short-term obligations, and others. for normal operating purposes because of the • Long-term Liabilities: These liabilities are requirements of regulatory authorities, provisions in reasonably expected not to be liquidated within a year. bond contracts, or other legal agreements, but do not They usually include long-term bonds, notes payable, have to be accounted for in a separate fund. long-term leases, pension obligations, and long-term • Unrestricted Assets: Funds established to product warranties. In these liabilities, the County has account for assets or resources that may be utilized at to pay after a fixed period of time, usually longer than the discretion of the Board of Commissioners. a year. Bonds: A certificate of debt issued by the County Revenue: Financial resources other than from interfund government guaranteeing payment of the original transfers and debt issue proceeds. Henry County receives Revenue through property taxes, sales and investment plus interest by a specified future date. other taxes, licenses and permits, grants, fines and Budget: A plan of financial operation using an estimate forfeitures, charges for service, administration fees, of proposed expenditures for a given period of time (a investment income, and miscellaneous sources. fiscal year) and an estimate of proposed revenue to finance the expenditures. Expenditures: Government purchases which can be financed by revenue and/or government borrowing, i.e. bonds, tax anticipation notes, etc. www.henrycounty-ga.org
Henry County Board of Commissioners 140 Henry Parkway • McDonough, GA 30253 (770) 288-6000 • www.henrycounty-ga.org Design by Henry County Communications