2009 Popular Annual Financial Report by Henry County Government

2009 Popular Annual Financial Report WHAT’S INSIDE 04

The Henry County Board of Commissioners

About the Popular Annual Financial Report

General Henry County Government Information

Excellence in Financial Reporting

Expenditures

Financial Snapshot

The Local Economy

Government Policies

Glossary of Terms

Henry County Administration Building Community Room McDonough, GA

Henry County, Georgia

POPULAR ANNUAL FINANCIAL REPORT

Board of Commissioners

Elizabeth ‘B.J.’ Mathis CHAIRMAN

Randy Stamey District III Commissioner

Warren E. Holder District I Commissioner

Reid A. Bowman, Sr. District IV Commissioner

Rick Jeffares District II Commissioner

Johnny B. Basler District V Commissioner

2009

About the PAFR

5 2009

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 08-09, 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. 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 County. Financial information for these component units is reported separately from the financial information presented for the primary government itself. Financial information on these four entities can be found in the Notes to the Financial Statement in the 2009 Henry County Comprehensive Annual Financial Report. Inside this year’s PAFR, you will find accounting definitions that will help you understand the awards we’ve won for previous PAFRs and CAFRs, general information about your County government, a brief summary on how well Henry County’s economy is doing, 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. 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.

POPULAR ANNUAL FINANCIAL REPORT

We are pleased to present the Henry County Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2009. 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 our 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, 2008 to June 30, 2009, and is known as FY 08-09. 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 on the Henry County website at www.co.henry.ga.us/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 government finances. Four 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.

Henry County, Georgia

POPULAR ANNUAL FINANCIAL REPORT

Your Government

2009

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 196,000. 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 election; 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.

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 Greg Cannon Wayne Powers

APPOINTED OFFICIALS Interim County Manager Phyllis Shrader Assistant to the County Manager Michael Sabine County Clerk Shay Mathis County Attorney LaTonya Wiley Building & Development Services Jim Luebbering Planning & Zoning Services Michael Harris Public Works Terry McMickle Social Services Angie Bailey Financial Services Mike Bush

2009 POPULAR ANNUAL FINANCIAL REPORT

Henry County, Georgia

“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, 2008. 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 third 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.”

“Henry County Board of Commissioners, Georgia’s Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2008, from which the information on pages 10-20 has been drawn, was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. This was the fourth year that Henry County has received this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our CAFR continues to conform to the Certificate of Achievement program requirements and we are submitting our CAFR for the current year to GFOA.” Henry County has won the Certificate of Achievement for Excellence in Financial Reporting in all years that we have submitted a CAFR for judging - 2005, 2006, 2007 and 2008.

EXPENDITURES The new 81,294 square foot Henry County Sheriff ’s Office jail expansion, which provides an additional 519 beds, more than doubling the facility’s previous capacity of 419. The jail cells are made of modular, pre-cast concrete walls. This method enabled construction to commence even as the site was being prepared, allowing the County to take advantage of lower material costs while shaving more than 18 months off the length of construction. The time-savings helped Henry County to successfully avoid a federal court order that would have cost thousands of dollars a day in fees and transport costs had it been forced to house inmates in other jails due to overcrowded conditions. The precast cells are sectioned into pods, with enclosed recreation areas that reduce the need for direct supervision, resulting in lower operational costs, while simultaneously increasing the amount of time inmates can spend outside their cells and improving the safety of the Jailers. Both the facility, which also includes 34,230 sq. ft. of much needed office space, and the site itself were designed to maximize future expansion capabilities and minimize costs while giving the County greater flexibility in achieving total build-out. The new expansion was officially dedicated April 7, 2009 and was just one of many accomplishments over the past fiscal year in Henry County.

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Departmental Overviews

Revenues Sources & Expenditures • 12 Animal Care & Control • 14 Code Enforcement • 14 Community Service • 14 Department of Transportation • 14 Emergency Management & E-911 • 15 Fire Department • 16 Human Resources • 16 Parks & Recreation • 17 Police Department • 19 SPLOST • 20 Stormwater Management • 21 Transit • 22

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Henry County Sheriff’s Office Jail Expansion Project McDonough, Georgia

Henry County, Georgia

Revenue Sources Property Taxes • $73,515,637 Sales Taxes • $17,324,076 Other Taxes • $7,004,056 Licenses & Permits • $1,526,910 Intergovernmental • $2,077,133

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Fines & Forfeitures • $4,467,777

2009

Charges for Services • $12,712,989 Miscellaneous • $1,284,698 Investments • $343,068 Contributions • $80,886

Total General Fund revenues of the fiscal year, which ended June 30, 2009, were $121,030,230. Revenues of the prior year were $121,896,615. Revenues decreased by $866,385.00 due to reduced LOST revenues and reduction in interest earnings.

Expenditures

Public Safety • $61,564,000 Public Works • $11,648,255 Health & Welfare • $6,077,107 Culture & Recreation • 7,947,472 Housing & Development • $4,733,751

Judicial • $14,335,210

13 2009

Total expenses during the year ended June 30, 2009 were $122,260,838. Expenditures of the prior year were $115,820,169. The increase in expenditures as compared to the previous year is primarily related to increases in land acquisition, vehicles and personnel.

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General Government • $15,955,043

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Henry County, Georgia

2009

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 2008-2009, Animal Control Officers responded to a total of 8,492 complaints. They issued 908 warnings and 178 citations. The Animal Care and Control Shelter, located at 537 Hampton Street in McDonough, housed 7,840 animals during the fiscal year. Of those, 629 animals were reclaimed by their owners, 928 were adopted from the shelter, and 674 went to licensed rescue groups. A monthly low-cost spay/neuter clinic continues, at no cost to the County, to assist in lowering the number of unwanted puppies and kittens in the community. Animal Control has increased awareness of adoption 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.

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 violators of the building codes, health ordinances, water ordinances, and other violations. 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 08-09, Code Enforcement Officers answered 6,029 complaints. They issued 1,826 warnings, and 87 citations. Code Enforcement also escorted five houses being moved through the County.

This Department of Transportation project, located at Highway 155 and Walker Road, featured a new signalized intersection.

DEPARTMENT OF TRANSPORTATION The Henry County Department of Transportation (HCDOT) had a busy year in FY 08-09 on both road and other County projects. HCDOT paved 56 roads, a total of 26.30 miles, with a total cost of $1,831,382.28 in asphalt. Among the road projects completed was Ford Drive - 0.24 miles of this dirt road was

paved. Project included grading, base placement and paving along with drainage improvements. Other HCDOT projects included several pipe and culvert replacements at various locations. HCDOT also assisted the Parks and Recreation Department with grading projects at four parks.

Two members of the CERT Team compete in a CERT Competition held at the Jason T. Harper Event Center in April 2009.

POPULAR ANNUAL FINANCIAL REPORT

15 Emergency Management & Public Safety officials meet for an Emergency Operations Center demonstration.

2009

EMERGENCY MANAGEMENT & E-911 The team of dedicated professionals at the Henry County Emergency Communications Center (E-911) and the Henry County Emergency Management Agency strives to assist the citizens of and those who may travel through Henry County through efficient, courteous, and reliable communications. In FY 07-08, the E-911 Center received and dispatched 133,754 calls. Self-initiated calls, such as police traffic stops, etc., generated another 163,807 calls. Total calls for the year were 297,561, or an average of 34 calls every hour of the year. EMA staff took part in a Hazardous Materials Drill at Henry Medical Center, and an Ammonia Release Drill at Atlanta Motor Speedway. They also took the E-911 Mobile Command Vehicle to schools, churches and civic groups to demonstrate, and attended and spoke at numerous other public meetings. A better prepared community is a vital part of the overall emergency management plan. The CERT (Community Emergency Response Team) program is an example of how the County is working to train citizens to handle and address emergencies. When emergencies happen, CERT members can give critical support to first responders, provide immediate assistance to victims, and organize spontaneous volunteers at a disaster site. CERT members can also help with non-emergency projects that help improve the safety of the community. In FY 07-08, 85 citizens were trained in CERT Volunteer classes. A total of 58 people were trained in Storm Spotter Volunteer classes, 9 volunteers were trained in two CPR classes, and 7 volunteers were trained to open the Emergency Operations Center (EOC) and assist there during an emergency.

POPULAR ANNUAL FINANCIAL REPORT

Henry County, Georgia

2009

FIRE DEPARTMENT There were 745 fire calls by the Fire Department and 19,240 emergency responses by EMS, for a total of 19,985 responses during FY 08-09. EMS transported 10,687 patients. The Inspections and Investigation Division conducted 6,913 existing building inspections and 1,386 new construction inspections, held 312 pre-construction meetings, and reviewed 600 plans. In FY 08-09, the Operations Division accomplished two major projects. The first, was the installation of voice amplifiers to each of our firefighters breathing apparatus face pieces. This will allow clearer communication during firefighting activities. The second major accomplishment was the implementation of the Tactron Accountability System. This system is used to track firefighters on emergency scenes. In both of these projects , the goal was to create a safer work environment for our emergency personnel. The Fire Department’s Community Relations Division’s purpose is to educate the public to “Prevent the Preventable” fire and life safety incidents. They do so through presentations and career days at schools, both public and private, as well as home school groups, senior centers and assisted living homes. They also host tours of the Fire Safety Theater, located at Station 3 in Stockbridge, and visits to other fire stations.

In FY 08-09, the Division gave 282 smoke alarms to families in Henry County. In addition to the smoke alarms distributed, they worked with a family having a hearing impaired child, assisting them in purchasing and installing a special alarm. Another service that Community Relations provides is assistance with child safety seats. In FY 08-09, approximately 75 seats were inspected and/or installed.

HUMAN RESOURCES The Human Resources Department had a busy year in 2008-2009, taking care of County citizens and employees in a variety of ways: • HR processed 2,459 job applications, hired 141 new hires and held orientations for 52 of the newly hired employees. • HR hosted monthly wellness events (Lunch ‘n Learns, an employee Health Fair, and sporting events) for and coordinated health and wellness options for all employees. • The County Post Office, operated through Human Resources, metered 96,622 outgoing pieces of mail, plus handled all interoffice mail throughout the County. • HR passed the FTA Drug and Alcohol Baseline Review

and completed the annual Drug & Alcohol MIS Data Collection Report. • HR completed 38 open records requests. • HR conducted the Annual Open Enrollment for employee benefits which included a change to a new medical insurance provider, Blue Cross Blue Shield of Georgia. Henry County’s population has increased by more than 82,002 people between 2000 and 2009, while the ratio of County employees per 1,000 residents has, on the average, decreased. The increase in County employees in 2006 and 2007 was due to poll workers and other part-time employees being added to the payroll. Despite the relatively low average, Henry County has not only been able to maintain, but increase its level of service to residents through sound fiscal planning and dedicated employees. Examples of the high level of service can be found in increased police and fire protection, new libraries and judicial centers, and more efficient use of financial resources.

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17 2009

PARKS & RECREATION The Henry County Parks and Recreation Department is dedicated to improving the quality of life for all the citizens of Henry County by providing quality recreation and athletic programs, opportunities, special events, facilities and amenities. During 2008, construction was completed on Henry County Parks and Recreation’s administrative offices at Heritage Park. The Henry County Extension Service shares this facility with Parks and Recreation, and replaces the Windy Hill Activity Building. The 1864 Nash House at Henry County’s Nash Farm Park in Hampton will be turned into a Veterans’ Museum, complete with artifacts and literature about the nation’s military past and present beginning with World War I. This museum is expected to be complete in 2009.

The Ola Girls Softball Association received three new fields to call home in 2008. The three fields were constructed, along with additional parking, to be used for various tournaments and youth softball. Henry County Parks and Recreation hosted its First Annual Hall of Fame Banquet in October. The event was held in honor of the people who contributed the time, talent, and/or resources over the years that served as the foundation for the outstanding programs and amenities that Henry County Parks and Recreation offers today. Sixteen men and one woman were inducted into the Hall of Fame inaugural class. The inductees were Charles Bledsoe, R. W. Coley, Frank Craig, Richard Craig, Sandy Craig, Harold Dodgen, Aaron Head, Warren Holder, Reynolds Houston, Buster Jeffares, Jake Lindsey, David Mayo, James Moore, Bill Orr, Carlos Ray, Bill Savage and Lawrence Turner. Because many in the audience were not aware of its colorful beginnings, the evening was an opportunity to share Henry County Parks and Recreation’s history, including the fact that it was 1973 before Henry County established a Recreation Board and developed a Recreation and Open Space Plan, and another year before the Recreation Department was started and a Director hired. In addition to highlighting the past, Henry County Parks and Recreation was also able to showcase just how far its programs and facilities have come. During Commissioner Warren Holder’s speech, he shared that the parks have grown from being “a single mown field where the kids used everything from trees and fence posts to rusty buckets for bases to include more than 1100 acres of park land featuring 74 baseball and softball fields, 17 football fields, 10 soccer fields and 22 tennis courts.” Henry County’s reduction in work force during October 2008 resulted in Parks and Recreation absorbing Community Service and accepting additional responsibilities. The Community Service Program was formalized to provide a meaningful restitution program for offenders who have been mandated by the courts to perform community service hours for infractions such as

Henry County, Georgia

POPULAR ANNUAL FINANCIAL REPORT

DUI, suspended license, no insurance and various other misdemeanor violations. The program may offer inmates the opportunity to earn early release or otherwise offer probationers the opportunity to pay their debt to society if they are unable to meet the fine imposed. The program saves money, works for the offenders, the detention center, staff, the county departments, and most importantly, for the citizens of Henry County. In FY-08-09, Community Service workers spent a total of 66,671 man hours of working. They picked up a total weight of 255,300 pounds of litter along 2,686.3 miles of County roads.

2009

Adult & Youth Athletics Henry County Parks and Recreation hosted the ISA Girls Fast Pitch World Series, using Alexander, JP Moseley, Heritage and Sandy Ridge Parks for five days. There were a total of 77 teams all of whom enjoyed a concert from recording artist Blake Wise. This event took place at the Jason T. Harper Event Center at Heritage Park. Every girl (approx. 800) and coach received a meal from Chick-Fil-A. HCPRD had six teams to play in the District Tournament, with one team from Henry County competing and placing third at state level for Adult Softball. Two teams participated in the GRPA’s District 6th Adult Basketball Tournament and three teams participated in the state level of Adult Flag Football.

Therapeutic Recreation The Fall Games were held in Statesboro in October. Our athletes also attended two sailing competitions this year; one in Mobile, Alabama, and one in Macon, Georgia. The Therapeutic Coordinator was chosen to attend World

A young competitor at the ISA Girls Fast Pitch World Series takes a swing at a pitch.

Games in Idaho in 2009, and also attended a Games Training in Colorado to get ready for this competition. We continued our relationship with the YMCA and the Henry County School System, for which we provided Wheelchair Handball, Football and Basketball. This year, we were able to host the Wheelchair Handball State Championship with eight JV teams and Varsity teams visiting our Moseley Recreation Center. The visiting players and coaches loved our facility and county hospitality. The 2nd Annual Basketball Bash was held at the New Locust Grove Recreation facility. The adult Tennis team, named Henry County Havoc, was able to attend tournaments in Atlanta, Tennessee, Florida, Hilton Head, and Illinois. Programming The tennis program is an adapted way to learn the game of tennis. The courts are smaller for the younger children. With this new program, the Department began its first Jr. Team Tennis. The department held its First Annual Photography Contest. The idea behind the contest was to receive pictures of people enjoying our parks and use them in our catalogs and calendars. There were more than 100 pictures submitted for the

Stephen Bain was awarded first place in the Sports & Action category fo the Parks & Recreation photography contest for this photo taken at Heritage Park.

POLICE DEPARTMENT The Henry County Police Department continues to provide citizens with the best possible law enforcement protection through the upgrading of equipment and increases in personnel.

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Special Events Folks enjoyed a free movie, The Spiderwick Chronicles, at the SoccerPlex in September and we also had our first ever Rock ‘n’ Roll Chili Bowl the last weekend of September at Heritage Park. The Chili Bowl was a chili competition in which local restaurants, clubs and individuals participated. October was also very busy with the Fall Festival and the Haunted Trail. Visitors to the Fall Festival enjoyed hayrides, a costume contest, a pumpkin carving contest, shopping and trick-or-treating around the historic village. The Haunted Trail had visitors trying to escape “The

Youth Leadership League Henry County Parks & Recreation worked with Connecting Henry, Life Management, and Juvenile Court to develop a new Youth Leadership Program. This league will target at-risk youth. The program would offer more non-athletic and non-traditional activities. The kickoff was in June 2009.

POPULAR ANNUAL FINANCIAL REPORT

four subject categories: Nature and Wildlife, Sports and Action, On Location, and General. All the pictures were taken in one of the County’s parks or during one of the Department’s events. There was first, second, third and honorable mention in each of the above mentioned categories. In November, the Henry County Parks and Recreation Department received two awards from the Georgia Recreation and Parks Association. The Publication Award for Single Event was awarded for the Easter Egg Hunt Flyer and the Multi-Event award was given for the 2008 Calendar.

Curse of the Scarecrow”. Many more special effects and scenes were incorporated to make this the scariest trail ever. There was also a Halloween Town for the younger children which featured a kid-friendly haunted house, a magician and trick-or-treating. A portion of the proceeds went to A Friend’s House. The Battle of Atlanta was held again the first weekend of November which brought in several thousand patrons. Visitors enjoyed music, food, shopping and intense battle re-enactments. Folktales & Moonlight was held the very next weekend and visitors enjoyed music from the Pony Express band, roasting marshmallows and hot dogs, and hearing stories from all over the South. The year ended with A Heritage Christmas at Heritage Park. Radio Disney came out and gave away prizes and visitors enjoyed live entertainment from local dance studios and The Regulars, pictures with Santa, hayrides and writing Christmas cards to our troops.

Henry County, Georgia enforcement of traffic laws on I-75. The HEAT (Highway Enforcement of Aggressive Traffic) Unit is comprised of one Sergeant and three officers of the Uniform Patrol Division. HEAT is designed to educate and enforce laws related to proper safety restraint usage for adults and children, laws governing speed enforcement, and impaired and aggressive driving. In FY 08-09, the HEAT Unit issued 768 seat belt violation citations, 123 child restraint violation citations, and 2,324 speeding tickets. They made 401 DUI arrests, 59 drug arrests, and 16 felony arrests.

SPLOST Henry County Special Purpose Local Option Sales Tax (SPLOST) is not considered part of the General Fund Revenues and Expenditures. It is a separate account which operates solely off the voter approved one percent sales tax collected. Henry County’s Capital Improvement Program continues

Henry County Police Officer Jason Harper, with the H.E.A.T. Unit, operates laser.

Groundbreaking ceremony held in Hampton for the Fortson Library.

POPULAR ANNUAL FINANCIAL REPORT

In FY 2008-2009, the Police Department responded to 188,434 calls. They made 505 drug arrests and 1,075 driving under the influence (DUI) arrests. Henry County saw decreases in homicides, aggravated assaults, commercial burglaries, domestic disputes, rapes, stolen vehicles, and speeding violations. One area of concern to both police and citizens is the increased presence of gangs and gang-related activity in Henry County. The Police Department joined with other law enforcement agencies in a community meeting on gang violence, and formed a Criminal Apprehension and Gang Enforcement (CAGE) unit. As of FY 07-08, the CAGE Unit had identified at least 45 gangs that have or are operating in Henry County. In FY08-09, they made 175 felony arrests and 177 misdemeanor arrests. The unit confiscated a number of drugs, including methamphetamine, marijuana, cocaine and moonshine, along with 22 firearms. Another area of emphasis for the Police Department is

2009

to benefit greatly from revenues provided by SPLOST, thanks to the volume of retail trade in the county. Over the course of the five-year SPLOST collections, Henry County received a total of $179,165,741. Voters passed a continuation of the SPLOST program in November 2007. Collections began April 1, 2008, with an expiration date of March 31, 2014. The SPLOST III program is a six-year program. In fiscal year 2009, $26,542,269 was collected in the SPLOST III program. Over the course of the SPLOST III collections, Henry County has received a total of $33,791,496. Some of the major projects to be constructed in the next year are adding an additional Library, two additional recreation centers and two additional Senior Centers.

• Henry County Storm Sewer System mapping is well underway; currently close to ½ of the county MS4 is inventoried. • The maintenance crews completed more than 100 maintenance, repair and new construction projects. The Environmental staff hosted a number of successful public outreach events, including: • 975 brochures about protecting the environment were distributed to homeowners, business owners and posted at libraries. • 15 volunteers were trained during two Chemical and Biological Training Workshops for the Adopt-A-Stream Program. • 3278 Fifth grade students experienced the Stormwater Public Outreach Macroinvertebrate Presentation during the annual Cubihatcha Outdoor Environmental Project. • 2009 Rivers Alive event included 129 volunteer

STORMWATER MANAGEMENT The Henry County Stormwater Management Department was a busy place in Fiscal Year 2009. A few highlights include:

21 2009

Stormwater Management’s water sampling helps provide an accurate account of the health of Henry County’s streams.

POPULAR ANNUAL FINANCIAL REPORT

Children enjoy the new playground which was constructed at Sandy Ridge Park.

Henry County, Georgia

POPULAR ANNUAL FINANCIAL REPORT

participants that cleaned 7200 lbs along 0.25 miles of the South River • Stormdrain Marking which included nine volunteers who marked 76 Storm drains The Environmental staff continues to implement an intensive Illicit Discharge Elimination Program. Staff inspects outfalls and works with commercial and industrial property owners to educate them on how to eliminate offsite discharges to the County’s creeks and streams. The Inspection staff received and responded to more than 425 complaints and performed more than 100 routine inspections. The department reviewed and approved three residential plan submittals and 23 commercial/industrial plan submittals.

2009

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 Monday-Friday 6:00 am to 6:00 pm. 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 08-09, the Transit Department provided 81,529 trips for citizens attending medical, shopping, education and employment activities. Of those trips, 49,488 were provided for non-elderly citizens, and 32,041 for elderly residents. The Transit Department was awarded over $400,000.00 in American Recovery and Reinvestment Act funds for capital projects.

Financial Snapshot 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. An additional portion of Henry County’s net assets (14.9 percent) represents resources that are subject to external restrictions on how they may be used. The remaining 10.5 percent balance of unrestricted net assets may be used to meet the government’s ongoing obligations to citizens and creditors.

TABLE 1 • Statement of Net Assets as of June 30, 2009

TABLE 2 • Statement of Activities for the Fiscal Year Ended June 30, 2009 2009

2008

Total Revenues

$173,292,999

$188,272,601

$107,773,575

Total Expenditures

$174,546,256

$141,811,894

$576,793,063

Increase in Net Assets

$ (1,253,257)

$ 46,460,707

Net Assets, July 1 2009

$576,793,063

$530,332,356

Net Assets, June 30, 2009 $575,539,805

$576,793,063

2009

2008

Total Assets

$762,553,214

$684,566,638

Total Liabilities

$187,013,409

Total Net Assets

$575,539,805

POPULAR ANNUAL FINANCIAL REPORT

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 exceed liabilities by $575,539,805 at the close of the most recent fiscal year. By far the largest portion of the County’s net assets (74.6 percent) is its

23 2009

THE LOCAL ECONOMY 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 place Henry County in an enviable position as one of the nation’s fastest-growing communities, and in fact, between 2000 and 2006, Henry County has been the 2nd fastest-growing county in Georgia, and the 8th fastest-growing county in the nation. Henry County has added 66,693 residents during that period, and as of July 1, 2009, had an estimated population of 201,343. This continued growth has increased the demand for additional retail and commercial services by fueling growth 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 10.1 percent, reflecting the current economic strain the country is facing, but the county rate remains

less than the unemployment rate for the State of Georgia, which is currently 10.5 percent. In addition to the permanent residents and businesses of Henry County, the County hosts several major sporting events each year, aiding in the export of our tax burden through our Local and Special Local Option Sales Taxes. Two major National Association of Stock Car Racing (NASCAR) events are 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. Henry County also plays host each summer to the AABC Roberto Clemente World Series for 7-8 year-old baseball players, the 7 year-old Dizzy Dean World Series, the Independent Softball Association Youth Fast Pitch World Series, a BMX National Tournament, and Civil War Re-enactments at Nash Farm Battlefield, bringing thousands of families from around the country to the County. Currently, more than 21 hotel and motel facilities provide over 2,100 guest rooms throughout the County.

Henry County, Georgia

The Local Economy

POPULAR ANNUAL FINANCIAL REPORT

GENERAL FUND The General Fund is the chief operating fund of Henry County. At June 30, 2009, the County’s General Fund reported an unreserved fund balance of $43,079,966 while total fund balance reached $43,131,808. The balance of the County’s General Fund decreased by $8,644,993 during the current fiscal year. This was due to the decrease in revenues like LOST and interest revenue and increases in expenditures throughout the General Fund. The original budget used $8,900,000 of fund balance and we were able to decrease that need by $255,007 during the year.

2009

LEASE PURCHASE FUND In fiscal year 2004, Henry County created the Lease Purchase Fund to track lease purchases separately from any other capital projects fund. Henry County enters into lease purchase agreements for the purchase of land, equipment, vehicles, and buildings through an agreement between the Association of County Commissioners of Georgia (ACCG) and qualified financial institutions. The year end fund balance for the Lease Purchase Fund is $4,4429,490. CAPITAL ASSETS Henry County’s investment in capital assets as of June 30, 2009 amounts to $577,107,255 (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 a total bonded debt outstanding of $87,240,000 which is backed by the full faith and credit of the government. The bonds will be paid off with proceeds from the monthly collection of 2008 SPLOST revenue. Henry County maintains an “Aa2” issuer rating from Moody’s and an “AA” rating from Standards and Poor for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 10 percent of its total assessed valuation. 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. At the end of fiscal year 2009, the total fund balance was $68,072,510, an increase from $62,733,469 during the prior year. The increase in fund balance is due to SPLOST bonds being issued for both the County and the Cities. As the large projects continue to be built, the fund balance will decrease over the life of the SPLOST program. IMPACT FEE The Henry County Impact Fee fund closed Fiscal Year 2009 with a fund balance of $2,612,270, a decrease of $1,918,591 or 42.3 percent from the last fiscal year. The decrease is due to the slow down in the housing market.

ASSETS Governmental assets installed during the year totaled $42,400,140. Major projects consisted of the following: • Acquisition of land for right-of-ways • Acquisition of land for parks • Acquisition of land for future governmental use • Upgrading of fleet for entire County • Addition of completed roads • Equipment for public safety and public works • Computer servers and equipment The largest portion of the increase came from construction in progress. Henry County’s SPLOST program is currently building capital projects and road projects that are at their peak of construction. The County purchased a building to become the new governmental annex with Impact Fee and general fund money that added to the construction in progress report as well.

POPULAR ANNUAL FINANCIAL REPORT

27 2009

BUDGETARY HIGHLIGHTS Property Taxes increased by $2,728,011 (3.8 percent) during the year. Most of this increase is due to new growth on the commercial side of property taxes. Sales Taxes decreased by $4,952,229 (10.0 percent) during the year. This is mainly due to the economic downturn. Unrestricted investment earnings decreased by $2,497,449 (73 percent) during the year because of the fall of interest rates related to the economy. During the year, there was a decrease of $2,070.526 in appropriations between the original and final amended budget, which can be summarized as follows: • Decrease in general government activities amounting to $9,973,288 due to the distribution of unallocated funds originally budgeted for vacancies, new positions, and cost of living increase. • Increase in judicial functions: $886,897, due to the addition of a new State Court Judge, the additional staff

for that Judge, and the additional staff needed in the Solicitors office to maintain enough staff to keep up with the additional court time. • An increase in public safety function totaling $4,938,039, due to additional positions throughout the public safety function. We continued to add additional Jailors to staff the expanded jail facility. The police department also added more patrolmen in an effort to deflect crime brought about by the current struggling economy. Additional employees at the Sheriff ’s office and the fire department were added as well. • An increase in public works services and related and capital assets amounting to $1,104,948, due to the increased productivity of the DOT crews. More asphalt was put down in fiscal year 2009 than we ever accomplished previously. • Increase in health and welfare totaling $570,745. • Increase in culture and recreation equaling $598,230, due to additional personnel for after school and summer camp programs along with additional programs being run by the recreation department. We purchased additional acreage that has to be maintained by the grounds crew and we had to purchase additional equipment to make sure we keep up with the growing Parks & Recreation Department. • Decrease in housing and development of $196,097, due to the downturn in the housing market.

Henry County, Georgia

POPULAR ANNUAL FINANCIAL REPORT

Key Values & Financial Reporting

2009

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 a open public forum and 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 finance. Information in this report is taken from the 2008-2009 Certified Annual Financial Report, which is available for public review on the Finance Department page of the Henry County Board of Commissioners’ website at www.co.henry.ga.us.

“The key values of the County’s financial management include fiscal integrity, prudence, planning accountability, honesty, and openness.”

Net Change in Fund Balance $25,765,361

60,000,000

$26,524,487 $35,144,210

50,000,000

$35,745,892 $47,482,872

40,000,000

$53,561,758 $50,968,119

30,000,000

$51,776,801

10,000,000

0 2001

2002

2003

2004

2005

2006

2007

2008

2009

29 2009

Fiscal year ending June 30, 2009. An analysis of the net change in the fund balance of the General Fund for the last eight fiscal years is shown. The balance decreased by $8,696,835.

POPULAR ANNUAL FINANCIAL REPORT

$43,079,966 20,000,000

Henry County, Georgia

POPULAR ANNUAL FINANCIAL REPORT

Government Policies

2009

CASH 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. The process 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. 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. In this effort, 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 interestbearing checking accounts, which bear interest at a special rate for non-profit 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 Aa2 credit rating from Moody’s Investor Services. This rating produces significant interest savings and is solid evidence of our financial strength and stability.

BUDGET PROCESS The annual budget serves as the foundation for Henry County’s financial planning and control. All departments and agencies of Henry County are required to submit requests for appropriation to the County Manager in March each year. The County Manager uses these requests as the starting point for developing a proposed budget. The County Manager then presents this proposed budget to the Board of Commissioners for review during the month of May.

The Board of Commissioners is required to hold 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 County. Financial information for these component units is reported separately from the financial information presented for the primary government itself. Financial information on these four entities can be found in the Notes to the Financial Statement in the 2008 Henry County Comprehensive Annual Financial Report at www.co.henry.ga.us/Finance.

Glossary of Terms Appropriations: An authorization granted by the Board of Commissioners to spend revenue for purposes specified in the appropriation act. Assets: Items of ownership. Assets can include cash, stock, land, buildings, machinery, furniture, and other equipment. There are several categories of Assets:

Bonds: A certificate of debt issued by the County government guaranteeing payment of the original investment plus interest by a specified future date. (For example: Henry County issued a $25,000,000 general obligation bond in 2004 to fund SPLOST Capital Improvement projects. The bond plus interest is to be paid back during fiscal years 2007, 2008 and 2009. It will be paid off with proceeds from the monthly collection of SPLOST revenue.)

Fund Balance: The portion of fund revenue over expenditures available for use. General Fund: A fund used to account for the ordinary operations of the County government that are financed from taxes and other general revenue. Liabilities: Future spending of revenue as a result of past transactions and other past events. Liabilities are reported on a balance sheet and are divided into two categories: • Current Liabilities: These liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payable, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, shortterm obligations, and others. • Long-term Liabilities: These liabilities are reasonably expected not to be liquidated within a year. They usually include long-term bonds, notes payable, long-term leases, pension obligations, and long-term product warranties. In these liabilities the County has to pay after a fixed period of time, usually longer than a year. 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 forfeitures, charges for service, administration fees, investment income, and miscellaneous sources.

31 2009

Budget: A plan of financial operation using an estimate of proposed expenditures for a given period of time (a fiscal year)

Expenditures: Government purchases which can be financed by revenue and/or government borrowing, ie. bonds, tax anticipation notes, etc.

POPULAR ANNUAL FINANCIAL REPORT

• Capital Assets: Assets of a long-term character (beyond the current year) that are intended to continue to be held or used, such as land, buildings, vehicles, machinery, furniture, and other equipment. • Net Assets: The difference between total capital assets and total capital liabilities. (Example: If the County owns a building worth $10 million, and we owe $4 million on it, the Net Asset of the building is $6 million.) • Restricted Assets: Assets that may not be used for normal operating purposes because of the requirements of regulatory authorities, provisions in bond contracts, or other legal agreements, but do not have to be accounted for in a separate fund. • Unrestricted Assets: Funds established to account for assets or resources that may be utilized at the discretion of the Board of Commissioners.

and an estimate of proposed revenue to finance the expenditures.

Henry County Board of Commissioners 140 Henry Parkway • McDonough, GA 30253 770.288.6000 • www.henrycounty-ga.org Design: Henry County Communications Department