The Henry County Board of Commissioners
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About the Popular Annual Financial Report
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General Henry County Government Information
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Outstanding Achievement in Financial Reporting
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Revenue Sources and Expenditures
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Department Overviews
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Financial Snapshot
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Key Values and Financial Reporting
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Financial Management and Government Policies
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Glossary of Terms
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“The Coin Toss� by Jon Minnihan was awarded Best of Show in the 2011 Henry County Parks & Recreation annual photography contest. The photography contest encourages citizens to creatively capture all aspects of parks, recreation, and sports, and the best photos are featured in the yearly calendar.
2011 POPULAR ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2011
HENRY COUNTY LEADERSHIP
Board of Commissioners
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Elizabeth ‘B.J.’ Mathis CHAIRMAN
Randy Stamey DISTRICT III
Warren E. Holder DISTRICT I
Reid A. Bowman, Sr. DISTRICT IV
Fred Auletta 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, 2011. 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, 2010 to June 30, 2011, and is known as FY 10-11. 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. Six 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 10-11, 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
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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 207,000. 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 system; 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. 6
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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 Surveyor
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 Wayne Powers
APPOINTED OFFICIALS County Manager County Clerk County Attorney Planning & Zoning Services Public Works Social Services Financial Services
James “Butch” Sanders Shay Mathis LaTonya Wiley Michael Harris Terry McMickle Angie Bailey Mike Bush
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Outstanding Achievement
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Henr y 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. “The 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, 2010. 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 fourth 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.�
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REVENUES & EXPENDITURES
Revenue Sources Property Taxes • $67,552,279 (60.06%) Sales Taxes • $17,969,638 (15.98%) Other Taxes • $6,911,559 (6.14%) Licenses & Permits • $1,466,665 (1.30%) Intergovernmental • $2,913,375 (2.59%) Fines & Forfeitures • $4,485,101 (3.99%) Charges for Services • $9,676,586 (8.60%) Miscellaneous • $1,366,061 (1.21%) Investments • $70,375 (0.06%) Contributions • $65,416 (0.06%)
TOTAL REVENUES • $112,477,055 Total General Fund revenues of the fiscal year, which ended June 30, 2011 were $112,477,055. Revenues of the prior year were $122,878,897. Revenues decreased 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 decreased due to slight downturn in the local economy.
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Expenditures
Public Safety • $58,928,897 (52.77%) Public Works • $8,081,124 (7.24%) Health & Welfare • $5,720,687 (5.12%) Culture & Recreation • $6,538,889 (5.86%) Housing & Development • $3,078,658 (2.76%) General Government • $14,973,079 (13.41%) Judicial • $14,353,761 (12.85%)
TOTAL EXPENDITURES • $111,675,095 Total expenses during the year ended June 30, 2011 were $111,675,095. Expenditures of the prior year were $120,022,497. The decrease in expenditures of $8,947,402 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.
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Saving Lives The Henry County Fire Department frequently responds to structure fires, many of which are found to be fully engulfed at the time of their arrival. Saving lives is paramount in their daily battles, however, and due to their knowledge, training, experience, and new tools such as thermal imaging cameras, they are able to quickly locate the source of fires and not only fight the origin of the fire, but most importantly, save lives in the process. However, one of the greatest tools in assisting the Fire Department might not be a tool on their truck, but something that is in the home: a smoke detector. The Henry County Fire Department works diligently to educate and inform citizens about the importance of smoke detectors, testing them, and changing their batteries with each time change. Smoke detectors help save lives and give citizens an opportunity to safely exit a residence before it is too late, which in turn, makes the Fire Department’s job a little easier.
DEPARTMENT OVERVIEWS
Animal Care & Control • 14 Code Enforcement • 14 Fire Department • 15 Human Resources • 16 Neighborhood Stabilization Program • 16 Parks & Recreation • 17 Police Department • 20 Purchasing • 20 Transit • 21
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DEPARTMENT OVERVIEWS According to 2008 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 2011, the reported population was 207,800. Henry County's ever-changing demographics and growing population are ser ved by approximately 1,600 employees spanning a variety of di visions, departments, and partnerships, a few of which are highlighted in the following pages. 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 2010 - 2011, Animal Control Officers responded to a total of 9,243 complaints. They issued 1,349 warnings and 261 citations. The Animal Care and Control Shelter, located at 527 Hampton Street in McDonough, housed 5,993 animals during the fiscal year. Of those, 623 animals were reclaimed by their owners, 905 were adopted from the shelter, and 965 went to licensed rescue groups. The department also handles rabies control for Henry County. In Fiscal Year 2010-2011, the department submitted a total of 14 animals for rabies testing. Of these, six animals were found to be positive for the 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 14
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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 10-11, Code Enforcement Officers answered 6,423 complaints. They issued 1,549 warnings, and 114 citations. Code Enforcement also escorted five houses being moved through the County.
FIRE DEPARTMENT
offering consistent high quality education opportunities to personnel. The department held its third and fourth Citizens Fire Academy, graduating a total of 28 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. The department’s Prevention Division conducted 7,760 existing building inspections and 622 new construction inspections, reviewed 420 building plans, and attended 324 pre-construction meetings. The smoke alarm program assisted 103 residents with the installation and/or donation of smoke alarms. The child occupant safety program inspected and/or installed 28 car seats for parents and caregivers. In addition, the Prevention staff was reorganized and three members were relocated back to the Prevention Division at the Fire Administration Offices. The Prevention staff reaches 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 division does so through
During fiscal year 2011, 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. Henry County Fire Department saved 15 million of the 19 million dollars worth of property threatened by fire. However, the Henry County Fire Department provides services well beyond just fighting fires. The department answered a total of 21,566 requests for assistance. The breakdown is as follows: 874 fire responses, 186 hazardous materials situations, 16,427 Rescue/Emergency Medical Calls, 2,613 other hazardous responses, 859 false alarms, 359 mutual aid responses, and 248 other responses. Our Advanced Life Support ambulances transported 12,461 patients to area hospitals and made another 4,673 patient contacts offering assistance. The department‘s Training Division conducted 73 training classes and our personnel logged 58,576 hours of training. The training division continues to provide firefighter training, technical rescue, hazardous materials, professional development, safety training, and under the guidance of Fire Department personnel, participate in fire extinguisher drills during the Citzen’s the paramedic academy thereby AFirecitizen, Academy.
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DEPARTMENT OVERVIEWS In all projects the department undertakes, the ultimate goal is to create a safer work environment for emergency personnel and to provide the requisite tools so that personnel can deliver the best fire and emergency medical services possible to the citizens of Henry County.
HUMAN RESOURCES
An ammonia release drill and Hazmat training exercise conducted by the Henry County Fire Department, as well as surrounding jurisdictions, not only prepares public safety for such a scenario but also ensures a unified response effort by multiple agencies.
inspections, life safety code enforcement, fire safety education presentations and career days at day cares, schools, both public and private, senior centers, and assisted living homes, etc. The department also hosts tours of the Fire Safety Theater, located at Station 3 in Stockbridge, as well as tours at the other fire stations. Fire and Life Safety Education was provided for nearly 19,000 citizens in FY 2011. The Operations Division accomplished three major projects during FY 2011. In fire protection, two new fire trucks were purchased and large diameter hoses with quick connections were placed on all fire trucks. Large diameter hoses provide more water faster to fire ground operations. In the emergency medical services area, the department took delivery of and setup an Advance Vehicle Location System for all frontline and reserve ambulances. This system will allow for better dispatching of emergency units by the 911 center because of the system’s ability to track the exact location of each unit. This system also provides mobile Wi-Fi allowing for transmittal of electrocardiograms (EKG’s) to the emergency department (ED) prior to the patient’s arrival. The ability to provide information to the ED prior to the patient’s arrival will afford doctors additional prep time for more timely aggressive, definitive care, thus conserving what could be valuable time for the patient. The department also took delivery of five new ambulances and two re-mounted ambulances.
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The Human Resources Department had a busy year, responding to the needs of County citizens and approximately 1,800 employees in a variety of ways. During this past fiscal year, Human Resources processed 5,213 applications for employment, about 13% less than the previous fiscal year. Henry County hired 132 new employees, compared to 215 last fiscal year. These hirings were to replace 132 openings created by employees who resigned. Internally, the department processed 162,216 pieces of mail and handled 1,345 personnel action forms (including new hires, resignations/retirements, terminations, transfers, promotions, and suspensions) and 308 FMLA requests. The department also updated the County personnel policy manual and evaluated and updated the exempt/non-exempt status for 621 county positions.
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 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 69 homes and has rehabilitated 69 houses. All 69 homes have either sold or are under contract. Henry County has 18 months to draw down the initial
Henry County has purchased and rehabilitated 69 houses.
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. The County is on track to spend the funds necessary to keep the program going.
PARKS & RECREATION The award-winning Henry County Parks & Recreation Department oversees three recreation centers, three banquet/event facilities, more than 1,200 acres of parks including a Civil War Battlefield, an historical monument, Veterans Museum, 105 ball fields, 5 basketball courts, and numerous recreation programs and services, including a Therapeutic Recreation Division, and the production of several popular community events. Also housed under Henry County Parks & Recreation is Community Services, a program which allows those convicted of crimes to fulfill their sentences through community service hours.
Facilities
FY2010-11 was a big year for Parks & Recreation in terms of facilities, with two new facilities opening, and a third having completed renovations to dually house a Senior Center in Locust Grove. The $3.2 million, 26,000 square foot Fairview Recreation Center opened this year, providing a convenient location for residents in the area to get some exercise, and for youth to participate in programs. Constructed using SPLOST dollars, it features two regulation sized basketball gymnasiums that allow for tournament play, an indoor walking track, an exercise and workout area complete with weights and equipment, an aerobics and dance room, a music room for lessons, and an arts and crafts room. A community room is also available to be rented for parties and All 69 have either sold or are under contract. community gatherings. 2011 POPULAR ANNUAL FINANCIAL REPORT
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DEPARTMENT OVERVIEWS Formerly the Locust Grove Baptist Church, the Locust Grove Recreation Center underwent a complete transformation. This facility serves as home base for the Therapeutic Recreation Division, where special needs athletes are enjoying a new gym floor where they host Special Olympics Practices/Wheelchair Sports events. A new workout area and elevator are also being installed. Already a popular location for wedding receptions and conferences, the Locust Grove Conference Center was renovated this year to be able to accommodate Senior Services’ programs. The carpet in the ballroom was replaced with hardwood floors so that the room could double as a cafeteria, a room on the lower level was converted into a Billiard room while a third room was converted into an arts and crafts room for the seniors with the addition of a sink and cabinets.
Parks & Amenities Henry County Parks and Recreation is known for its numerous innovative programs and variety of amenities that contribute to the local economy through the tourism they attract. HCPRD hosted 37 large tournaments involving 1,171 teams that played a total of 1,699 games. These include the USSSA World Series Baseball Tournament that was held in July and the Atlanta Peach Classic
One of the basketball gymnasiums at the recently constructed Fairview Recreation Center.
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The main ballroom of the Locust Grove Conference Center is now also functioning as a cafeteria.
Soccer Tournament. The coaches, players and their families who come in for these tournaments contribute millions to the local economy by spending their money in local hotels, restaurants, and shopping centers. The Veterans’ Wall of Honor also continues to attract thousands of visitors each year, in addition to hosting hundreds for the annual Memorial Day and Veterans Day ceremonies. Add to that the Veterans Historical Museum in Heritage Park which houses unique wartime memorabilia from WWI to present, and there is much to honor the nation’s veterans and remember their great sacrifices. Also this year, Nash Farm Battlefield was designated as one of 384 core battlefields in the Civil War by the National Park Service (NPS). This is the highest validation a battlefield can receive, and the designation was given upon the completion of the comprehensive Update to the Civil War Sites Advisory Commission Report on the Nation’s Civil War Battlefields published in June 2010. Henry County Parks & Recreation also joined the geocaching craze. Essentially a treasure hunt that requires the use of a handheld GPS device to help locate it, geocaching is a fun, inexpensive (free!) familyfriendly activity that is encouraging tourism, while giving local families a new way to enjoy the community’s scenic parks and get fit at the same time. A notable new addition that has helped to attract more tourism to our community is a Remote Control
Racing Track at Windy Hill Park. The remote control track was largely built using donated materials and recycled lumber from the dugouts that once stood at the park. It made its debut hosting the Georgia State Championship Race, which attracted 93 teams from across the southeast region. The same park already boasts some of the County’s most unique amenities, including a paintball complex and a track for lawn mower racing.
Adults may enroll in softball, volleyball, tennis, or flag football in addition to activities like step aerobics, line dancing, karate, golf lessons and gymnastics. The Community Service Program allowed inmates and probationers the opportunity to pay their debt to society if they were unable to meet the fine imposed by doing roadside litter pickup and departmental assistance, as well as routine janitorial duties at parks, the recycling center and county buildings.
Programs & Events Henry County Parks & Recreation offers Events numerous athletic, music, and art programs, among Though Henry County has reduced the number of events it hosts each year, it has continued to host its others, for all ages and abilities. For instance, through its Day Camps held during three most popular events, providing free or low cost school breaks at different sites throughout Henry activities for families to enjoy together. Thousands came out for the 4th Annual County, Henry County Parks & Recreation addresses a great need for parents to ensure the safety and wellbeing Flashlight Easter Egg Hunt in March where they had their picture taken with the of their children while Easter Bunny, played on they are out of school. the inflatables, made These day camps were Easter crafts, had their offered for fall break, faces painted and Thanksgiving Break, searched for eggs in the Christmas Break, middark using only winter break, spring flashlights. break, and summer Visitors to the break. About 1,000 Fall Festival at Heritage campers attended at Park in October enjoyed least one week of camp throughout the year. hayrides, inflatables, The Therapeutic costume and pumpkincarving contests, Division offers the shopping and trick-orspecial needs treating around the population in Henry of the Special Olympic Kayaking Team, part of Henry County Parks & historic village. Kids County numerous Members Recreation Therapeutic Recreation Division, head out for practice. also got a thrill out of the opportunities to socialize and participate in athletic programs through haunted house and Spooky Bus. A Heritage Christmas at Heritage Park continues Special Olympics, AAASP, and other Developmental Services Programs. to charm the crowds, where little ones can visit with Youth have opportunities to participate in Santa and go to “Elf School”, and everyone can enjoy everything from soccer and football to baseball, softball caroling and other entertainment by local groups, all and tennis, in addition to basketball, in anticipation of the lighting of the Heritage Christmas Tree. in-line hockey, BMX and cheerleading.
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DEPARTMENT OVERVIEWS 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 2010-2011, the Police Department responded to 189,715 calls for service. They made 522 drug arrests and 882 driving under the influence (DUI) arrests. Compared to the same time period FY 20092010, 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 Solicitor’s Office) in a 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 &
A Henry County Police Officer works with a young citizen during the Public Safety Night event in the Fairview community.
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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 2009-2010, FY 2010-2011 saw about a 35% reduction in fatalities and about a 1% reduction 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,
An officer speaks with a driver about safety during a road check.
TRANSIT
Stockbridge City Councilman Harold Cochran cut the ribbon on the Henry County Police North Precinct, located in the building named in his honor, the Harold L. Cochran Public Safety Complex (the former Stockbridge City Hall). Participating with him in the ceremony were, front row, from left to right: Police Chaplain Pastor Ralph Easterwood, District 4 Commissioner Reid Bowman, Harold's wife, Bettye Cochran, Lee Stuart, Mayor of Stockbridge, and District 5 Commissioner Bruce Holmes; Second row, from left to right, Henry County Police Chief Keith Nichols, Major Mac Nale,and Stockbridge City Councilmen Shirley Dabney, Mark Alarcon, and Kathryn Gilbert.
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 for citizens under age 60. For citizens over 60 years of age, the fare is $2 per person, per stop. In FY 2011, the Transit Department provided 82,867 trips for citizens attending medical, shopping, education and employment activities. Of those trips, 55,810 were provided for non-elderly citizens and 27,057 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 parking area for buses.
the Henry County Purchasing Department processed 7,400 purchase orders, 134 written bids, and 72 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, and on-line.
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FINANCIAL SNAPSHOT
Financial Snapshot In the case of Henry County, assets exceed ed liabilities by $625,536,611 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.
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.
TABLE 1 • Statement of Net Assets as of June 30, 2011 Total Assets Total Liabilities Total Net Assets
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, 2011 2011 Total Revenues $165,701,586 Total Expenditures $158,087,272 Increase in Net Assets $7,614,314 Net Assets, Beginning of Year $617,922,297 Net Assets, End of Year $625,536,611
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2010 $196,837,880 $154,445,388 $42,382,492 $575,539,805 $617,922,297
Where Your Property Tax Dollars Go
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THE LOCAL ECONOMY
General Fund The General Fund is the chief operating fund of Henry County. At the end of the current fiscal year, unassigned fund balance of the General Fund was $31,756,428, while total fund balance reached $36,223,396. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and 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 represents reserved 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 $114,163,396, a decrease of $24,674,609 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. Another reason for the decrease is because Henry County has made changes to our ambulance billing process and has recalculated the collectability of some older receivables. Approximately 25.4% of the ending fund balance ($28,993,657) constitutes unassigned fund balance, which is available for spending at the government’s discretion. An additional $4,446,003 is classified as non-spendable for prepaid expenses, and advances to other funds, and the remaining fund balance, totaling $80,723,736, is classified as restricted to indicate that it is not available
for new spending because it has already been of its total assessed calculation. The current limitation committed for Capital Projects ($47,575,333), for drug for Henry County is $549,615,591, which is significantly abuse treatment ($1,285,148), for federal and state more than Henry County’s outstanding general grants ($2,085,169), for law enforcement purposes obligation debt. ($5,541,681), for public safety purposes ($5,917,585) and for debt service payments ($18,318,820). DEBT SERVICE FUND
CAPITAL ASSETS Henry County’s investment in capital assets for its governmental activities as of June 30, 2011 amounts to $639,759,322 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges.
LONG-TERM DEBT At the end of the current fiscal year, Henry County had total bonded debt outstanding of $73,629,729, which is backed by the full faith and credit of the government. The $73,629,729 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 $2,823,688. 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%
The Debt Service Fund has a total fund balance of $18,318,820, all of which is reserved for payment of debt service. Interest revenue for the current year was $22,037. Total expenditures in the Debt Service Fund were $26,802,737, which included principle retirements of $21,881,414, and interest and fiscal charges of $4,921,323. The net increase in fund balance during the current year in the Debt Service Fund was $871,404. 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.
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 2011, the total fund balance was $36,869,780, a decrease of $15,668,218 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 $20,411,202. 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 parks
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THE LOCAL ECONOMY Public Safety functions saw an increase, totaling $331,134, due to additional positions throughout the public safety function. The main department responsible for the increased budget was the Fire Department, which added additional personnel to each shift to reduce overtime. There was an increase in Public Works Services and related capital assets amounting to $799,421, due to the increased productivity of the DOT crews. More asphalt was put down in fiscal year 2011 due to good weather for the majority of the year. Health and Welfare Services also increased their budget a total of $700,099, due grants received by the Transit department to purchase equipment and two buildings. Culture and recreation went up $128,388, due to additional personnel for after school and summer BUDGETARY HIGHLIGHTS camp programs, along with additional programs being Property tax revenue decreased by $5,980,671 (8.9 percent) during the year. Most of this decrease is run by the Parks and Recreation department. due to reductions in residential property taxes due to including foreclosure and bank sales in calculations of ECONOMIC FACTORS & NEXT YEAR’S BUDGET Henry County is strategically located along I-75 the tax values of all properties. Sales tax revenue increased by $1,104,924 (2.50%) during the year. This with a total of seven interchanges within its borders. is mainly due to a slight upturn in the local economy. With a low cost of living, temperate climate and easy Unrestricted investment earnings decreased by $27,677 access to Atlanta, Henry County provides all the (22.5%) during the year because of the fall of interest conveniences of a large city, in a small town rates related to the economy. During the year, there was atmosphere. State and national economic indicators an increase of $1,000,075 in appropriations between the place Henry County in an enviable position as one of the nation’s fastest-growing communities, and in fact, original and final amended budget. General government activities showed a between 2000 and 2006, Henry County was ranked the decrease of $731,748 due to the distribution of 2nd fastest-growing county in Georgia, and the 8th unallocated funds originally budgeted for vacancies and fastest-growing county in the nation. Henry County added 66,693 residents during that period, and as of new positions. July 1, 2011, had an estimated population of 207,800. There was also a decrease in judicial functions, This continued growth has fueled expansions in in the amount of $207,169, due Superior, State, Magistrate, Probate and Juvenile Courts reducing their the economic sector. Henry County has a rich variety of retail establishments ranging from large stores in expenditures from previous years. Lastly, there was a decrease in housing and outlying shopping centers to small “Mom and Pop” development of $22,050, due to the downturn in the shops that serve the downtown areas. In fact, the Tanger housing market. Henry County consolidated several Factory Outlet shopping complex in Locust Grove draws departments within the Planning & Development more than two million shoppers annually. The unemployment rate for Henry County is Services Division, did not fill positions when employees currently 10.9 percent, which is 0 .8% higher than the left the County and observed four furlough days.
• 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 addition of infrastructure. This also explains the decrease in construction in progress. Henry County’s SPLOST program is currently building capital and road projects that are at the peak of construction. Construction has also begun on a replacement Fire Station, an additional Police Precinct, and a Domestic Violence Center. We are also constructing additional roads, as well as adding turn lanes, traffic signals and many other items that will help with the transportation needs throughout Henry County.
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rate of one year ago. The unemployment rate for the State of Georgia at June 30, 2011 is 9.9%. 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. On race day, Atlanta Motor Speedway holds in excess of 125,000 fans, making it one of the 10 largest cities in Georgia for the day. 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. 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 has done all the work without creating a burden on the General Fund. Based on the 2010 census, Henry County has
become an Entitlement County. Henry County is currently applying for the yearly allocation of money given to Entitlement Counties. 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 will spend this money building capital projects, such as the addition to the county jail, new fire station, other governmental buildings, and park projects. Road projects will also continue consisting of paving dirt roads, improving intersections, building new roads and working on bridges. Henry County is also using in-house departments during 2011 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 2011 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.
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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 2010-2011 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
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How Henry County’s Fund Balance Has Changed 2001 2002
$25,765,361 $26,524,487
2003
$35,144,210
2004
$35,745,892
2005
$47,482,872
2006
$53,561,758
2007
$50,968,119
2008
$51,776,801
2009 2010 2011
$43,079,966 $39,243,083 $36,223,396
Fiscal year ending June 30, 2011. An analysis of the fund balance of the General Fund for the last eight fiscal years is shown.
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GOVERNMENT POLICIES
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.
COUNTY FUNDS
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 appropriation 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
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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 two to be held or used, such as land, buildings, vehicles, 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. • Long-term Liabilities: These liabilities are for normal operating purposes because of the 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, long-term leases, pension obligations, and long-term have to be accounted for in a separate fund. • 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 a year. the discretion of the Board of Commissioners. Revenue: Financial resources other than from interfund transfers and debt issue proceeds. Henry County receives Revenue through property taxes, sales and 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.
Bonds: A certificate of debt issued by the County government guaranteeing payment of the original investment plus interest by a specified future date.
Expenditures: Government purchases which can be financed by revenue and/or government borrowing, ie. bonds, tax anticipation notes, etc. 2011 POPULAR ANNUAL FINANCIAL REPORT
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Henry County Board of Commissioners 140 Henry Parkway • McDonough, GA 30253 (770) 288-6000 • www.henrycounty-ga.org Design by Henry County Communications