2010 POPULAR ANNUAL FINANCIAL REPORT 4
The Henry County Board of Commissioners
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About the Popular Annual Financial Report
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Department Overviews
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Financial Snapshot
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The Local Economy
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General Henry County Government Information
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Key Values and Financial Reporting
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Outstanding Achievement in Financial Reporting
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Financial Management and Government Policies
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Revenue Sources and Expenditures
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Glossary of Terms
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Transparent & Convenient: Henry County Online
The Locust Grove Conference Center, purchased from the City of Locust Grove, is currently being converted into a joint conference and activity facility as well as senior center.
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
Monroe Roark DISTRICT II
Johnny B. Basler 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, 2010. 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, 2009 to June 30, 2010, and is known as FY 09-10. 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. Five 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 09-10, 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’ve won for previous PAFRs and CAFRs, 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.
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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 194,000. 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 Greg Cannon 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
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.
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“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, 2009. 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 • $74,111,909 Sales Taxes • $18,134,041 Other Taxes • $6,842,228 Licenses & Permits • $1,228,495 Intergovernmental • $2,828,473 Fines & Forfeitures • $4,382,249 Charges for Services • $13,550,460 Miscellaneous • $1,643,065 Investments • $95,621 Contributions • $62,356
Total General Fund revenues of the fiscal year, which ended June 30, 2010, were $122,878,897. Revenues of the prior year were $120,737,422. Revenues increased by $2,141,475.00 due to an increase in sales tax revenues as a result of a slight upturn in the local economy.
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Expenditures
Public Safety • $61,865,607 Public Works • $11,939,937 Health & Welfare • $6,005,433 Culture & Recreation • $7,113,640 Housing & Development • $3,863,487 General Government • $14,663,777 Judicial • $14,570,616
Total expenses during the year ended June 30, 2010 were $120,022,497. Expenditures of the prior year were $122,260,838. The decrease in expenditures of $2,238,341 is primarily related to a combined effort by all departments to tightly manage spending.
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Transparent & Convenient
The County’s website, www.henrycounty-ga.org received an A+ from the Sunshine Review, making it one of just six counties out of 159 in Georgia to achieve this status. The Sunshine Review’s “Transparency Checklist" allows governments to post information about their website, and then analyzes the information to ensure that details about budgets, meetings and agendas, permits and zoning, audits, contracts, lobbying efforts, and taxes are available on the website. It also checks to see that contact information for elected and administrative officials is provided,
and that citizens have a way to request public records online. The Sheriff’s new website enables visitors to search for currently incarcerated individuals. The Courts have also made it easier to do business with them, through the added capability to pay traffic tickets on-line, search superior court dockets, and submit claims and other documents electronically. In addition to the website, Henry County promotes news and information about its programs and services through its government access television channel, Henry TV14, and a weekly newsletter, The Henry County Update. It also
publishes regular press releases. According to its website, “Sunshine Review is a non-profit organization dedicated to state and local government transparency. The Sunshine Review wiki collects and shares transparency information and uses a "10-point Transparency Checklist" to evaluate the content of every state and more than 5,000 local government websites. Sunshine Review collaborates with individuals and organizations throughout America in the cause of an informed citizenry and an accountable government.”
At A Glance: • The County tracks over 7,200 pages. • There were nearly 3 million pageviews last fiscal year alone. • Visitors accessed the site using 103 different browser and operating system combinations. • 483,236 total visits were as a result of a site search from over 90,000 keywords. • The job openings page under Human Resources received 284,805 hits, second only to the main page of the County website. • Nearly 1,800 other websites referred visits to Henry County. • The County webmaster processes approximately 2,000 website update requests per year.
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Fortson Library The new 15,900 square foot Fortson Library in Hampton sits on 2.3 acres and consists of separate children and adult book and reading areas, a meeting room with the capacity for 60 to 70 people, 24 public access computers, six young adult computers and six children’s early literacy stations. There is also a separate reading room off the main library, called the Karen Wheat Memorial Reading Room. Wheat was the interior designer for the last four libraries that were built in Henry County and she passed away this year from cancer. The Fortson Library is fully functional and offers a full schedule of programs, particularly for children. Programs include the baby lap sit program, a preschool program, and the summer reading program, which is offered to children in preschool up through high school. The new, larger library replaced the old Fortson library and the outside of the building was designed to resemble the Train Depot in Hampton. The interior colors and finishes were designed to lend a traditional feel to the building, heightened by ceramic flooring and classic architectural details. It is the first new library in Henry County constructed west of I-75, giving better access and making it more convenient for citizens living in that area. Construction on the library began in the summer of 2009 and took one year to complete. The total cost of the SPLOST III project was $2,384,264, more than $500,000 under the projected budget.
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DEPARTMENT OVERVIEWS
Animal Care & Control • 16 Code Enforcement • 17 Fire Department • 17 Human Resources • 18 Neighborhood Stabilization Program • 19 Parks & Recreation • 19 Police Department • 22 Purchasing • 22 Transit • 23
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DEPARTMENT OVERVIEWS According to 2008 Census estimates, Henr y County is the 9th most populous county in Georgia. At 323 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 2010, the reported population was 194,400. Henry County's ever-changing demographics and gr owing population is ser ved by approximately 1,800 employees spanning a variety of divisions, departments, and partnerships, highlighted here in the following pages. three community quarantines in locations throughout the county where rabies-positive animals came into The mission of Henry County Animal Care & Control is to enforce the state laws and county contact with humans or neighborhood pets. To combat ordinances pertaining to animal control and rabies, the department offers a low-cost rabies vaccine management; educate the community in responsible pet clinic twice a year. Approximately 200 Henry County ownership and wildlife care; and provide for the housing companion animals were vaccinated against the rabies and care of stray, homeless, and animals impounded virus at each clinic. A low-cost spay/neuter clinic continues twice a due to violations of the County’s animal month, at no cost to the County, to assist in lowering control ordinance. the number of unwanted In fiscal year puppies and kittens in the 2009 - 2010, Animal community. Animal Control Officers Control has increased responded to a total of awareness of adoption 10,220 complaints. They and pet rescue issued 1,273 warnings opportunities through and 257 citations. The “Pet of the Week” features Animal Care and Control in local media and on Shelter, located at 527 various Internet-based Hampton Street in adoption sites such as McDonough, housed Petfinder.com. 6,188 animals during the Animal Control has fiscal year. Of those, 594 a “Bite animals were reclaimed The Board of Commissioners presented Vince Farah (Front left), who has been with developed Animal Care & Control for 17 years, with a Certificate of Appreciation in recognition Prevention” education by their owners, 697 were of his numerous contributions to the Animal Care & Control Department, his program for children in Preadopted from the shelter, commitment and expertise in educating the public about rabies and animal safety. K through Elementary and 1,149 went to licensed grades, and has established the “Friends of Henry rescue groups. The department also handles rabies control for County Animal Shelter Volunteer Program,” allowing Henry County. In Fiscal Year 2009-2010, the department adults 18 years of age and older the opportunity to assist submitted a total of 30 animals for rabies testing. Of in enriching the lives of companion animals housed these, eleven were found to be positive for the virus at the shelter and to assist with adoption and (Five raccoons and six foxes.) The department handled rescue efforts.
ANIMAL CARE & CONTROL
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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 09-10, Code Enforcement Officers answered 6,404 complaints. They issued 1,775 warnings, and 155 citations. Code Enforcement also escorted nine houses being moved through the County.
hospitals. The department’s Prevention Division conducted 6,986 existing building inspections and 796 new construction inspections, reviewed 518 building plans, and attended 290 pre-construction meetings, as well as installed 72 smoke alarms and 47 car seats. The department‘s Training Division conducted 48 training classes and our personnel logged multiple hours of inservice training. In October 2009, the department held the first Citizens Fire Academy. This academy was designed to involve citizens in departmental activities by providing them with information on the day-to-day operations of the department. Advance Life Support equipment was added to five fire engines. These engines are strategically placed and can provide advance care including medication administration prior to the arrival of the ambulance. The department partnered with local
FIRE DEPARTMENT During fiscal year 2010, the Henry County Fire Department was very successful in responding to emergency calls for help and providing the citizens with non-emergency support activities.
The department answered at total of 20,245 requests for assistance in fiscal year 2010. The breakdown is as follows: A little girl sits on the front of a fire engine with Henry County Firefighters at National Night Out. 676 fire responses, 431 hazardous Left: Above: The Fire Department gives a demonstration during the Citizen’s Fire Academy. materials situations, 15,994 EMS/rescue calls, 2,276 good intent calls, 838 false alarms and 130 industry to enhance response to the county’s high risk other responses. Our Advance Life Support transport facilities through training and drill activities. The training ambulances transported 11,856 patients to area division continued the paramedic academy which continues to deliver high quality education opportunities 2010 POPULAR ANNUAL FINANCIAL REPORT
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DEPARTMENT OVERVIEWS to personnel. In addition, Prevention staff was reorganized and three members were relocated to the Windy Hill complex to streamline the new construction approval process. The Prevention staff also reached out to local organizations to provide fire safety education to children and seniors. In the past year, the Operations Division accomplished two major projects. The first, was the installation of voice amplifiers to each of the 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 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. It does so through presentations and career days at schools, both public and private, as well as home school groups, senior centers and assisted living homes. It also hosts tours of the Fire Safety Theater, located at Station 3 in Stockbridge, and visits to other fire stations.
poll workers and Parks and Recreation part-time employees who were hired for seasonal and/or temporary positions. Internally, the department handled 980 personnel action forms (including new hires, resignations/retirements, terminations, transfers, promotions, and suspensions) and 254 FMLA requests, in addition to updating the County personnel policy manual. A committee was also formed to screen and approve requests for donated annual leave. A variety of health and wellness events were hosted for employees, including the Health Fair Bus. Human Resources, which is most often the first line of communication to Henry County through the receptionist, received over 72,000 calls to the main lines throughout the past fiscal year. In conjunction with the County Manager and Deputy County Manager, the Department also composed a new countywide Employee Evaluation Form which is now being used by several County Departments on a trial basis. Additional policies, such as the County Substance Abuse Policy for the Transit Department were updated, ensuring they were in line with current federal guidelines. Lastly, the Annual Drug and Alcohol MIS Date Collection Report for 2009 was completed and submitted to the Georgia Department of Transportation.
HUMAN RESOURCES 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. Henry County’s population has increased by more than 85,000 people between 2000 and 2010, yet the ratio of County employees per 1,000 residents has, on the average, remained the same. Perhaps a sign of the economy, during this past fiscal year, Human Resources processed 6,013 applications for employment, an increase of nearly 41% over the previous fiscal year. Henry County hired 215 new employees, compared to 141 last fiscal year. The increase in County Human Resources processed 6,013 applications for employment, an increase of nearly 41% over the employees in 2009 and 2010 was due, in part, to previous fiscal year.
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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 Henry County has purchased 61 homes and has rehabilitated 24 houses with 18 more under contract. and risk of property abandonment, the NSP Direct Allocation pool has allocated more course and qualify for a mortgage with a lender that than $54 million for projects that meet a minimum complies with sound lending practices. $500,000 funding threshold. Henry County received Henry County has 18 months to draw down the more than $6 million in funding through the initial funds, with four years to spend all of the income Neighborhood Stabilization Program in March 2009 — generated from the program, which will be reinvested nearly three times more than the average award amount. into the program to help even more families. 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 PARKS & RECREATION The Henry County Parks and Recreation homeownership, but puts properties back into the tax digest and alleviates the problems associated with Department is dedicated to improving the quality of life for all the citizens of Henry County by providing quality foreclosed homes. At the time the program began, Henry County recreation and athletic programs, opportunities, special had a foreclosure rate of 5.1 percent, with nearly 2,500 events, facilities and amenities. homes in foreclosure. Under the program, Henry County has purchased 61 homes and has rehabilitated Parks Henry County was able to make improvements 24 houses. So far, there are 18 homes either sold or under contract, and the County is on track to spend the to several of its parks this year. Sandy Ridge Park now has a new regional funds necessary to keep the program going. The objective of the program is to purchase playground and a new picnic pavilion to go with the foreclosed residential property for the purpose of newer ballfields at the park. The playground offers fun stabilizing neighborhoods and encouraging re-use or sections for different ages, is fenced in and has plenty redevelopment of property. The program offers down- of shade to play in as well as shaded picnic areas payment assistance, up to $25,000, to qualified from which parents and grandparents can watch the homebuyers. But there are income restrictions; for children play. Approximately 4,000 people visited the example, an individual can make up to $59,000 a year and a family of six can have a yearly income of up to Veteran’s Wall of Honor. In 2009, 57 4” x 8” bricks, 22 $99,100. The program requires buyers to be U.S. 12” x 12” bricks and 4 benches were sold. The Activity Barn at Nash Farm Park underwent citizens, to take an eight-hour homebuyer education
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DEPARTMENT OVERVIEWS
From L to R: The R.C. Race Track at Windy Hill Park, participants at the Adaptive Sports Camp, and children at the Easter Egg Hunt event at Nash Farm Park.
extensive renovations and will be available to rent out for weddings, banquets, etc. The Veteran’s Historical Museum at Nash Farm Park officially opened its doors in July 2009. Displaying memorabilia and uniforms of America’s fighting forces, the museum is a moving history lesson. Period uniforms from World War I through the current War on Terror are prominently displayed along with information about those who actually wore them. It was relocated in 2010 to Heritage Park to be closer to the Veterans Wall of Honor. The County purchased the Locust Grove Conference Center from the City of Locust Grove and is converting it into a Senior Center that will double as a Community Center, giving citizens of all ages greater access to this beautiful facility.
Community Service The Community Service Program puts citizens who are ordered by the courts to perform community service to work cleaning up our community and assisting County government. The program’s participants disposed of 27,480 lbs of trash from Panola Woods, helped move Elections into their new building, moved auction items to storage, assisted with setup for several large functions at the judicial center and provided light duty assistance to several departments. For the year, these inmates and probationers worked a total of 71,350 hours, cleared 2,428 miles of County roads and disposed of 249,140 pounds of trash.
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Athletics More than 25,000 youth and 8,000 adults participated in organized athletic programs while 7,000 enrolled in its classes and activities and 3,000 participated in Therapeutic recreation. Nine swimmers went to the GRPA District 6, Class A swim meet held in Macon. These same swimmers also advanced to the two day State Swim meet held in Carrollton. HCPRD hosted two CAM Sports World Series and one USSSA World Series. The Opening Ceremonies were held at Nash Farm Park and games were played at parks throughout the county. HCPRD had a total of 834 registered athletes for youth basketball. The Locust Grove Recreation Center and 14 Henry County schools were used for practices and four middle schools, along with the J.P. Moseley Recreation Center, were utilized for the games. The J.P. Moseley Recreation Center was used to host some GRPA District games and four teams advanced to the State tournament held in Griffin, Savannah, Rome and College Park. The adult athletic section also hosted Henry County Parks and Recreation Department’s annual Halloween Havoc and the Christmas One Pitch Tournaments. For the Halloween Havoc One Pitch, teams were asked to dress in Halloween costumes and bring bags of candy that were used for the Trick or Treating held at the Fall Festival. Teams were asked to pay a team fee for the Christmas One Pitch tournament, with all proceeds going to purchase toys for A Friend’s House and Connecting Henry.
held in Statesboro in October. Athletes also participated Therapeutic Recreation helped train Special in two sailing competitions: one in Charleston, South Olympic athletes for the Summer Games. Athletes Carolina and one in Macon, Georgia. Numerous medals practiced in athletics, aquatics, soccer, tennis, table and trophies were added to Henry County’s collection in tennis, and volleyball. The Summer Games were held each competition. at Emory University at the end of May. Sixty-seven athletes and partners attended the competition. The Programs TEAM USA Championships were held in downtown Parks and Recreation offers a day camp Minneapolis, Minnesota this year. The unified volleyball program over the summer and school breaks for area team placed third in their division. The Fall Games were youth addressing a clear need in the community. It also offers numerous classes teaching everything from exercise to art and music. Approximately 350 campers attended on a daily basis under the supervision of 80 staff throughout the weeks. During the summer, all of the campers were able to take advantage of the free lunch and breakfast program sponsored by Gracious Hands of GHBC. Each week, the campers went swimming at High Falls State Park in Butts County, to the movies at The Great Escape Theater in McDonough and on other exciting field trips to such places as Wild Animal Safari, Sun Valley Beach, World of Coke and Dixie Land Fun Park.
Therapeutic Recreation
Special Events Youth football players from the Falcons play against the local Bulldogs.
Actors at the Independence Day Festival entertain the crowd at one of the larger Parks & Recreation events held during the year.
Parks and Recreation hosts several family friendly events for the community each year. Well over 90,000 patriots enjoyed colonial music, dancing and fireworks at the Georgia Independence Day Festival over July 3-4. B98.5 sponsored “B” At the Movies on August 1 where the public enjoyed a free showing of Madagascar 2: Escape 2 Africa. The 145th Anniversary of the Battle of Atlanta was held the first weekend of September which brought in several thousand patrons. Visitors enjoyed music, food, shopping and re-enactments of the battles that actually took place at Nash Farm. On October 17, visitors to the Fall Festival enjoyed hayrides, a costume contest, a pumpkin carving contest, shopping and trickor-treating around the historic village. A Heritage Christmas was held at Heritage Park in December. Radio Disney came out and gave away prizes and visitors enjoyed live entertainment from local dance studios and The Regulars, pictures with Santa, hayrides
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DEPARTMENT OVERVIEWS and writing Christmas cards to our troops. The Veteran’s Wall of Honor hosted the Veteran’s Day Ceremony and a Promotion Ceremony for active duty Warrant Officers and had two tour groups to visit. The last event of the fiscal year enjoyed its biggest crowd ever when more than 2,000 families came out for the Flashlight Easter Egg Hunt. They enjoyed Radio Disney, pictures with the Easter Bunny, games, crafts and a night time Easter Egg Hunt.
POLICE DEPARTMENT The Henry County Police Department Lt. Vance Rosen demonstrates the Virtual Training Simulator. continues to provide citizens with the best One area of concern to both police and citizens possible law enforcement protection through the is the increased presence of gangs and gang-related upgrading of equipment, the most up-to-date training available as well as mandatory training, information activity in Henry County. The Police Department joined sharing, and increases in personnel. In FY 2009-2010, with other law enforcement agencies in a community the Police Department responded to 189,507 calls for meeting on gang violence, and formed a Criminal service. They made 557 drug arrests and 995 driving Apprehension and Gang Enforcement (CAGE) unit. As under the influence (DUI) arrests. Henry County saw of FY 07-08, the CAGE Unit had identified at least 45 decreases in larceny cases, robbery, accidents, DUIs, as gangs that have or are operating in Henry County. In FY09-10, the CAGE Unit made 94 felony arrests and 181 well as forgery and fraud cases. misdemeanor arrests. They identified 218 new Gang members and they established 17 confidential informants. The unit confiscated a number of drugs, including methamphetamine, marijuana, cocaine and several types of pills, along with 3 firearms in gangrelated cases. Another area of emphasis for the Police Department is 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 09-10, the HEAT Unit issued 1,330 seat belt violation citations, 119 child restraint violation citations, and 3,212 speeding tickets. They made 437 DUI arrests, 34 drug arrests, and 10 felony arrests. Henry County officers work with a K-9 at a newly acquired training facility.
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PURCHASING From major purchases, like heavy equipment and vehicles to bulk items like gravel and pipes, and even general office supplies, the Henry County Purchasing Department is charged with getting the best value possible on all items needed to keep Henry County government functioning. It also ensures that the process is fair for businesses. Each month, the five person department processes nearly 700 purchase orders, and awards an average of 12 bids. And they carefully deal with all the contracts and lease/purchase agreements that go along with those orders.
vehicles and janitorial supplies, which saves both the time and expense of the bid process. Regardless of whether its 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.
TRANSIT The function of Henry County Transit is to provide safe, reliable, accessible, and affordable transportation to the citizens of Henry County. Henry County Transit provides curb-to-curb service based on a first-come-first-served reservation system MondayFriday 6 a.m. to 6 p.m. Fares are $4 per person per stop for citizens under age 60. For citizens over 60 years of age, the fare is $2 per person per stop. In FY 2010, the Transit Department provided 85,145 trips for citizens attending medical, shopping, education and employment activities. Of those trips, 58,011 were provided for non-elderly citizens and June Goodwin with the Purchasing Department enters bid documents into the 27,134 for elderly residents. computer system. The Transit Department was awarded $547,674 in American Recovery and Reinvestment Act funds from But it isn't as simple as running to the store, or the Federal Transit Administration for capital projects. jumping on the internet to place an order. Unlike the general population, the Purchasing Department is actually required to do price comparisons to make sure the County is getting the best deal possible. For all orders between $1,000 and $10,000, the department is required to get written quotes from three different vendors. And on all orders totaling $10,000 or more, they have to put out requests for sealed bids, proposals, or qualifications, and all of those 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
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FINANCIAL SNAPSHOT
Financial Snapshot Government-wide financial statements are designed to provide readers with a broad overview of Henry County’s finances, in a manner similar to a private sector business. There is one government-wide financial statement presented in this report, the Statement of Net Assets (Table 1). This statement presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. The Statement of Activities (Table 2) provides information on the County’s revenues and expenses and reports the difference between the two as the change in net assets. Over time, increases and decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. In the case of Henry County, assets exceed
liabilities by $617,922,297 at the close of the most recent fiscal year. By far the largest portion of the County’s net assets (76.2 percent) is 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. An additional portion of Henry County’s net assets (10.4 percent) represents resources that are subject to external restrictions on how they may be used. The remaining (13.4 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, 2010 Total Assets Total Liabilities Total Net Assets
2010 $792,686,609 $174,764,312 $617,922,297
2009 $762,553,214 $187,013,409 $575,539,805
TABLE 2 • Statement of Activities for the Fiscal Year Ended June 30, 2010 2010 Total Revenues $196,837,880 Total Expenditures $154,455,388 Increase in Net Assets $42,382,492 Net Assets, July 1 2010 $575,539,805 Net Assets, June 30, 2010 $617,922,297
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2009 $173,292,999 $174,546,256 $(1,253,257) $576,793,063 $575,539,805
Where Your Property Tax Dollars Go
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The Local Economy Innovative approaches and “out of the box thinking” is what has enabled Henry County and the Development Authority to attract more than 1,000 jobs to the community at a time when many industries have been closing their doors. New industry to Henry County includes Whirlpool, Inline Plastics, Phillips Van Heusen and De Wafelbakkers. These corporations have invested millions in our community, signed long term leases, and plan to expand their facilities in Henry County over time, thereby serving to stabilize and even improve our local economy. Additionally, retailers such as Kohl’s, Hobby Lobby, and JCPenney have also opened, bringing jobs and helping the local economy. Pictured this page: Whirlpool recently celebrated the opening of a 1.5 million square foot Regional Distribution Center in McDonough, Opposite top: Retailer JCPenney recently opened its doors off Highway 20 in the McDonough area, Opposite middle: Examples of packaging manufactured by Inline Plastics Corp. a company that brought 120 jobs to Henry County; Opposite bottom: Hobby Lobby is the latest retailer to open in the McDonough area, at South Point, the same shopping complex as JCPenney and Kohl’s.
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THE LOCAL ECONOMY
General Fund The General Fund is the chief operating fund of Henry County. At June 30, 2010, the County’s General Fund reported an unreser ved fund balance of $39,243,083 while the total fund balance reached $39,560,992. The balance of the County’s General Fund decreased by $3,278,010 during the current fiscal year. This was due to the decreases in revenues like LOST and interest revenue and increases in expenditures throughout the General Fund Property Tax, LOST, Fines and Forfeitures, Licenses and Permits and Interest Revenues. The original budget showed the County would need to use $7,742,433 of fund balance but the County was able to decrease that amount by $4,464,423 during the year. LEASE PURCHASE FUND
LONG-TERM DEBT
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 $2,701,710.
At the end of the current fiscal year, Henry County had total bonded debt outstanding of $90,099,640 which is backed by the full faith and credit of the government. The $90,099,640 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 $2,496,189. The bonds will be paid off with proceeds from the monthly collection of the 2008 SPLOST revenue. Henry County’s
CAPITAL ASSETS Henry County’s investment in capital assets as of June 30, 2010 amounts to $619,747,059 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges.
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enterprise fund, which is reported under business-type activities, did not incur any debt and did not have debt in prior years. Henry County maintains an “Aa1” issuer rating from Moody’s and an “AA” rating from Standard and Poor’s for general obligation debt. This enables the County to borrow money at a much lower interest rate. State statutes limit the amount of general obligation debt a governmental entity may issue to 10% of its total assessed calculation. The current limitation for Henry County is $672,284,857, which is significantly more than Henry County’s outstanding general obligation debt.
DEBT SERVICE FUND
built each year. 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 2010 with a fund balance of $1,851,174, a decrease of $761,096 from the last fiscal year. The decrease is due to the housing market, which has tapered off dramatically.
BUDGET HIGHLIGHT
The Debt Service Fund has a total fund balance of $17,447,416, all of which is Henry County maintains an “Aa1” reserved for payment of debt service. Interest issuer rating from Moody’s, which was revenue for the current year was $22,727. Total expenditures in the Debt Service Fund upgraded from a rating of “Aa2” were $10,336,269, which included principle during last fiscal year. retirements of $5,492,511, and interest and fiscal charges of $4,843,758. The net increase in fund balance during the current year in the Debt Service Fund was $16,960,937. This increase was due to the County transferring funds from the SPLOST III Fund in preparation of making the ASSETS Governmental assets installed during the year necessary debt service payments for the bonds issued totaled $42,639,804. This investment in capital assets in 2009. includes land, buildings and system improvements, as well as machinery and equipment, park facilities, roads, highways, and bridges. SPLOST Major projects consisted of the following: The 2008 Special Purpose Local Option Sales • Acquisition of land for right-of-ways Tax (SPLOST) accounts for the financial resources • Acquisition of land for parks provided from the 2008 one percent Special Local • Acquisition of land for future governmental use Option Sales Tax. These resources must be used for • Addition of completed roads various building projects and road improvements • Equipment for public safety and public works throughout the County. At the end of fiscal year 2010, • Computer servers and equipment the total fund balance was $52,537,988, a decrease of The largest portion of the increase came from $15,084,496 from the prior year. The decrease in fund construction in progress. Henry County’s SPLOST balance is due to large projects that are continuing to be program is currently building capital projects and road 2010 POPULAR ANNUAL FINANCIAL REPORT
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THE LOCAL ECONOMY projects that are at their peak of construction. The County is constructing or has already completed an additional Library, a recreation center, a fire station, and senior center. To help with the crowded parking at the County Courthouses, the County also constructed a parking deck behind the Judicial Center. Construction has also begun on an additional Police Precinct and a Domestic Violence Center. SPLOST is also building additional roads, adding turning lanes and traffic signals and many other items that will help with the transportation needs throughout Henry County.
BUDGETARY HIGHLIGHTS Property tax revenue decreased by $596,272 (.82 percent) during the year. Most of this decrease is due to reduction in residential property taxes due to including foreclosure and bank sales in calculations of the tax values of all properties. Sales tax revenue increased by $1,102,773 (6.48 percent) during the year. This is mainly due to a slight upturn in the local
BUDGET HIGHLIGHT The Tanger Factory Outlet shopping complex in Locust Grove draws more than two million shoppers annually.
economy. Unrestricted investment earnings decreased by $771,910 (83.7 percent) during the year because of the fall of interest rates related to the economy. During the year, there was an increase of $704,203 in appropriations between the original and final amended budget. General government activities showed a decrease of $1,561,950 due to the distribution of unallocated funds originally budgeted for vacancies and new positions. 30
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There was also a decrease in judicial functions, in the amount of $66,880, due to the addition of a DUI Court in the State Court. Lastly, there was a decrease in housing and development of $352,529, due to the downturn in the housing market. Henry County consolidated several departments within this section and did not fill positions when employees left the County. Public safety functions saw an increase, totaling $1,681,660, 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. The police department also added additional officers in an effort to deflect crime brought about by the current struggling economy. There was an increase in public works services and related and capital assets amounting to $547,767, due to the increased productivity of the DOT crews. More asphalt was put down in fiscal year 2010 due to good weather for the majority of the year. Health and welfare services also increased their budget a total of $409,143. A GPS tracking system was installed in transit buses allowing each bus to be tracked around the County. Senior Services was awarded a rental assistance grant bringing additional expenditures in the current budget. Culture and recreation went up $46,903, due to additional personnel for after school and summer camp programs, along with additional programs being run by the recreation department.
ECONOMIC FACTORS & NEXT YEAR’S BUDGET Henry County is strategically located along I-75 with a total of seven interchanges within its borders. With a low cost of living, temperate climate and easy access to Atlanta, Henry County provides all the conveniences of a large city, in a small town atmosphere. State and national economic indicators 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 was ranked the 2nd fastest-growing county in Georgia, and the 8th fastest-growing county in the nation. Henry County added 66,693 residents during that period, and as of July 1, 2010, had an estimated population of 194,400. This continued growth has fueled expansions in the economic sector. Henry County has a rich variety of retail establishments ranging from large stores in outlying shopping centers to small “Mom and Pop” shops that serve the downtown areas. In fact, the Tanger Factory Outlet shopping complex in Locust Grove draws more than two million shoppers annually. The unemployment rate for Henry County is currently 10 percent, which is .01% lower than the rate of one year ago. The unemployment rate for the State of Georgia at June 30, 2009 is 9.9%. 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 Local Option Sales Taxes. The 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. 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 2010 to help with current projects. With the slowdown in construction, we are now able to get prices that are more competitive and also 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 2010 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 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 2009-2010 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.henrycounty-ga.org.
You may access this document, along with the Comprehensive Annual Financial Report 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
$43,079,966 $39,243,083
Fiscal year ending June 30, 2010. 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 34
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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. 2010 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