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HomeMy WebLinkAboutCounty of Douglas - Public Financial ReportDouglas County, Nebraska Popular Annual Financial Report For the Fiscal Year Ended June 30, 2021 Daniel A. Esch Douglas County Clerk/Comptroller 2 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Table of Contents Douglas County Quick Facts Population 2021: 584,526 (10.2% increase since 2011) Median Household income: $67,133 Average Single-Family Home Value: $204,437 Number of Employers: 15,941 Douglas County is 339 Square Miles in Land Area Daniel A. Esch Douglas County Clerk/Comptroller Introduction …………………….. ……………... Page 3 Douglas County Background..…………….. Page 4 Financial Management ..……….…………… Page 5 Financial Reporting Awards ………………. Page 6 Economy and Financial Highlights …….. Page 7 Financial Analysis ……………..………….…… Page 8 Sources of County Funds ……….…....……. Page 9 Change in Net Position ………………………. Page 10 County Revenues and Expenses …………. Page 11 General Obligation and Revenue Bonds ………………………………………………………….. Page 11 Liabilities …………..………………….…………. Page 12 County Employees ……………………………. Page 13 County Demographics .……………………… Page 14 Property Values .…………………………….… Page 15 Douglas County Government …………….. Page 16 Glossary of Terms ….…………………………. Page 17 What Douglas County Does for You …... Page 18 3 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Daniel A. Esch Douglas County Clerk/Comptroller To the Citizens of Douglas County: It is with great pleasure that I present to you Douglas County’s Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. This publication is created to provide the public with an easy-to-read overview of Douglas County’s financial condition. Information in the PAFR is unaudited, but it is derived from the County’s Annual Comprehensive Financial Report (ACFR). The ACFR contains more detailed information about the County’s finances, is prepared in conformance with Generally Accepted Accounting Principles (GAAP), and is audited by the County’s independent auditors. The schedules shown in the PAFR are different from GAAP financial statements because accounting data has been summarized. A copy of the Annual Financial Report is available on the County Clerk/Comptroller’s website at www.douglascountyclerk.org/financialreport. The PAFR is designed to provide a simpler, more streamlined view of how your Douglas County government spends the tax dollars it collects from the citizens we serve, and an idea of the kinds of services Douglas County employees are engaged in as they work to safeguard the resources of Douglas County. I would like to take this opportunity to thank the citizens of Douglas County for their continued support in our efforts to strengthen accountability and efficiency in local government. In addition, I express my gratitude to the staff of the Douglas County Clerk/Comptroller’s office, whose hard work on the Douglas County ACFR and the Douglas County PAFR demonstrates their professionalism and dedication to their roles as public servants. I encourage you to visit our website or contact us with any questions you have about the information provided in our financial reports. Thank you. Daniel A. Esch Douglas County Clerk/Comptroller E-mail: daniel.esch@douglascounty-ne.gov (402) 444-6767 1819 Farnam St., Room H08 Omaha, NE 68183 4 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County, Nebraska, was incorporated in 1854 and named after Stephen Arnold Douglas, who introduced the 1854 Kansas-Nebraska Act which made Kansas and Nebraska official territories. Before Nebraska was admitted to the Union in 1867, Omaha, now the county seat of Douglas County, was the state capitol of the Nebraska Territory. Today, Douglas County covers 339 square miles with a population of 584,526. It comprises part of one of the nation’s major metropolitan areas along the Missouri River, with Omaha as its largest city. Other cities/villages in Douglas County include Valley, Ralston, Waterloo, Bennington, and Boys Town. Douglas County has a broad-based economy with strong trade, service, and manufacturing sectors. Omaha is corporate headquarters to four Fortune 500 companies: Berkshire Hathaway, Mutual of Omaha, Union Pacific Railroad, and Peter Kiewit Sons’ Inc. Omaha is also corporate headquarters to three Fortune 1000 companies: Valmont Industries, Werner Enterprises, and Green Plains. Other major employers of Douglas County include: Offutt Air Force Base, CHI Health, Nebraska Medicine, Godfather’s Pizza, and Omaha Steaks. Douglas County sits on the western side of the Missouri River, and has a number of lakes and reservoirs, a state recreation area, the world- class Henry Doorly Zoo, and numerous historical sites. It is also home to several colleges and community colleges including the University of Nebraska at Omaha and Creighton University. Numerous conventions and sporting events occur in Douglas County. Annually, the Berkshire Hathaway Shareholders Meeting and the NCAA Men’s College World Series take place in Douglas County. Since 2008, events such as the NCAA men’s basketball tournament, the NCAA women’s volleyball championship, the Olympic Curling Trials, and the U.S. Senior Open have occurred multiple times in Douglas County. Douglas County government operates under the Board of Commissioners form of government. There are seven commissioners elected by district, and eight separately elected county officials who are elected county-wide. The Board of Commissioners retains budget setting authority over the eight independently elected officials, and is responsible for the management of approximately 77.0% of all county operations. Approximately 21% of the county’s budget is managed by eight independently elected officials and approximately 2% is primarily managed by the state court system. Douglas County elected officials are committed to their mission to provide basic services including public health and safety services; care for the indigent; prosecutorial and public defender services; budgetary oversight of district, county and juvenile courts; and general government services (like collection and disbursement of taxes, building and maintaining bridges and roads) in the most efficient manner possible. Douglas County operates a long-term care facility, a mental health care facility, an adult correctional facility, and a juvenile detention facility. Douglas County’s tax rate of $0.29559 remained unchanged for the 2021 fiscal year. Long-term ventures include a robust capital improvement plan, improved collaboration with other local government entities, county government awareness, juvenile justice reform, alternatives to incarceration, and health service coordination. The Court at the Trans- Douglas County Background 5 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Financial Management in Douglas County Government Budget management in Douglas County government is led by the appointed Director of Budget and Finance in conjunction with the Douglas County Board’s Finance Committee and Douglas County’s Chief Administrative Officer. They are responsible for developing Douglas County’s budget each year, and that budget is approved by the Douglas County Board. Each county-wide elected official submits their office’s budget during the budget process, and those budgets are included in the total Douglas County budget. Under state law, the Douglas County Clerk also serves as the Douglas County Comptroller and is responsible for all financial reporting duties. It is the County Comptroller’s duty to act as the general accountant and fiscal agent of the County and to exercise a general supervision over all officers of the County charged in any manner with the receipt, collection, or disbursement of the county revenue. The Comptroller audits all claims made for payment using County funds and keeps the accounting records of the County. In performing these duties, the Douglas County Clerk/Comptroller relies on the professional staff of the Administration, Finance, Payroll, and Records Divisions of the Clerk/Comptroller’s Office. Staff are encouraged to participate in local and national professional associations and to receive continuing education so that they stay up to date on the ever-changing federal, state, and local regulations governing accounting and auditing. The Clerk/Comptroller’s office focuses on strengthening Douglas County’s internal controls and accountability to all citizens we serve. Public Information Available Online www.douglascountyclerk.org Weekly supplier checks Calendar-year supplier payments County Financial Reports Budgets and Tax Rates for all Douglas County Political Subdivisions 6 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Financial Reporting Awards The Government Finance Officers Association (GFOA), founded in 1906, represents public finance officials throughout the United States and Canada. Their mission is to advance excellence in public finance. The GFOA has established several highly regarded professional recognition programs to encourage and assist state and local governments of all types and sizes to improve the quality of their financial management and to recognize their achievement.  Award of Outstanding Achievement in Popular Financial Reporting - Douglas County, NE received the Award for Outstanding Achievement in Popular Annual Financial Reporting from the GFOA for its Popular Annual Financial Report for the fiscal year ended in June 30, 2019. The award for fiscal year ended June 30, 2020 is still in review. 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. 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. Douglas County, NE has received a Popular Award eleven times since the fiscal year ended June 30, 2009. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA.  Certification of Achievement for Excellence in Financial Reporting - Additionally, the GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to Douglas County, NE for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2019. This was the 16th consecutive year that the County has received this prestigious award. The certification for year ending June 30, 2020 is still in review. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal regulations. A certification is valid for a period of one year only. We believe that the current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 7 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County Economy and Financial Highlights Douglas County maintained a strong economy during the pandemic with an rate of 2.3% compared to the national rate of 5.9% in June 2021. In FY 2021 Douglas County’s Assets exceeded its Liabilities by $174.8 million. Douglas County’s Bonds, Notes and Leases Payable decreased from $77.2 million to $64.8 million. The decrease is due to the bond principal payments. The County continued to maintain a bond rating of AAA from Standard & Poor’s and Aaa from Moody’s Investor Service. Douglas County’s Property Tax Rate remained unchanged at $0.29559 per $100 of assessed value. Compared to the previous fiscal year, general fund revenue increased $105.0 million, primarily due to $95.6 million increase in intergovernmental proceeds driven by CARES Act revenue. The general fund balance increased by $4.3 million from the prior year due to the implementation of GASB 84, reclassifying nine funds from Agency Funds to now be included in the Douglas County Financials. General Fund Budgetary Highlights: Revenues in the Treasurer’s Office were over budget estimates by $.08 million due to increased investment income. Corrections revenues were $6.7 million below budget driven by lower inmate headcounts as the facility experienced decreased populations due to the pandemic. Administrative expenses were $14.5 million under budget primarily due to CARES Act funding that was received but not spent as of June 30, 2021. 8 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County Financial Analysis 9 Douglas County, Nebraska — FY2021 Popular Annual Financial Report In fiscal year 2021, 29.8% percent of Douglas County’s revenue came from property tax dollars, a 6.4% decrease over fiscal year 2020. Other taxes, (which includes homestead taxes, motor vehicle taxes, payments in lieu of taxes, inheritance tax, carline/airline tax, and other miscellaneous taxes), accounted for 10% of revenue. Total grants and contributions account for 39.2% of Douglas County’s revenue. The Douglas County Health Department uses federal and state grant funds to run health care, nutrition clinics, and to attend to public health care issues. Federal and state grants also fund criminal justice and public safety expenditures. In fiscal year 2021, 21.2% of Douglas County’s revenues came from Charges for Services which includes fees for services, fines, and licenses. Douglas County’s long-term care and mental health care facilities receive reimbursement from patients’ health insurance and from Medicare and Medicaid. The Roads Fund is funded by pass-through funds from the federal government and the State of Nebraska for its road and bridge construction and maintenance projects. Douglas County does not levy a sales tax or income tax. Sources of Douglas County Funds 10 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County’s Change in Net Position Revenues for fiscal year ended June 30, 2021 increased by $120 million. Increases in revenue were primarily due to the receipt of federal CARES funding. The increase in expenses for the fiscal year was driven by CARES Act Projects. 11 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County maintains a AAA bond rating from Standard & Poor’s and Aaa from Moody’s Investor Service. The County’s bond rating is similar to an individual’s credit report and results in the County getting better interest rates when borrowing money. 12 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Current liabilities are those that are due and payable within one year. Long term liabilities are liabilities that are due in more than one year. Douglas County Liabilities 13 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County Employees Number of Douglas County Employees by Department 2020/2021 Comparison 14 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Demographic and Economic Statistics Did you know….. Over 90.6% of Douglas County’s residents have a high school diploma which is 5.3% higher than the national average. In addition, 39.7% of Douglas County residents have a bachelor’s degree or higher. This is 6.3% higher than the national average. The average single-family home value of a Douglas County residence is $204,437 Over 61.7% of housing in Douglas County is owner occupied. Douglas County’s population has increased 10.2% since 2011. 15 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County Property Values Property values in Douglas County have increased an average of 3.79% each year since 2011. The property tax rate was increased in Fiscal year 2020 to $0.29559 and has not changed as of Fiscal year 2021. The average single-family home value in Douglas County is $204,437. This means that a home in Doug- las County with an assessed value of $204,437 pays property taxes of $604.30 per year or $50.36 per month for County government services. Property taxes are collected in arrears; therefore, taxes collected based on 2021 values will not be presented until fiscal year ending June 30, 2022. 16 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Douglas County Mission To respect and respond to Douglas County citizens and provide quality services in a cost-effective and efficient manner. Douglas County Values We value Responsive Government We value Public Engagement We value Collaborative and Creative Problem Solving We value Public/Private Partnerships County Commissioners Michael Boyle (District 1) Roger Garcia (District 1)-Appointed 10/22/21 James Cavanaugh (District 2) Chris Rodgers (District 3) P. J. Morgan (District 4) Maureen Boyle (District 5) Mary Ann Borgeson (District 6) Mike Friend (District 7) County-wide Elected Officials County Assessor/Register of Deeds Diane L. Battiato County Attorney Donald W. Kleine Clerk/Comptroller Daniel A. Esch Clerk of the District Court John Friend Engineer Tom Doyle Public Defender Thomas C. Riley Sheriff Thomas J. Wheeler Treasurer John W. Ewing, Jr. Downtown Omaha Source: Getty Images/iStockphoto 17 Douglas County, Nebraska — FY2021 Popular Annual Financial Report Glossary of Terms Compensated Absences: Accruals for time worked in excess of an employee’s regularly scheduled work week taken in time off rather than in pay. Deferred Inflow: The deferred inflow of resources are the gains from bond refundings or acquisition of net pension liability that will be re- flected in a future period. The Governmental Funds report unavailable revenue from three sources: real property taxes, economic impact assistance, and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Deferred Outflow: The deferred outflow of resources is the loss from bond refundings or consumption of net pension liability that will be used in a future period. Function: The Governmental Accounting Standards Board (GASB) requires government financial statements to report by function, and defines those functions as culture/recreation, ecological services, public safety judicial, general government, public health/social services, and public safety. GASB: Governmental Accounting Standards Board—the independent organization that establishes and improves standards for accounting and financial reporting for U.S. state and local governments. Net Position: The Statement of Net Position is designed to provide a picture of Douglas County’s financial position at the end of the year. Governmental Activities include all Elected Officials and County Board Departments of the County. Net Pension Liability: The full amount of capital that is required to finance vested pension fund benefits. Other Post Employment Benefits (OPEB): Retiree health care costs. Aerial photograph: Douglas County Health Center, Youth Cen- ter, Douglas County Health Department, Veterans Services, and General Assistance (i.e. Community Services) Rain Garden—Douglas County Health Center 18 Douglas County, Nebraska — FY2021 Popular Annual Financial Report What your Douglas County government does for you  Process all real estate transactions and maintain property records  Assess property valuation  Collection of taxes for various political subdivisions and state government  Provide all election and voter registration services to the citizens of Douglas County  Issue liquor and tobacco licenses for establishments in unincorporated Douglas County  Issue marriage licenses  Provide copies of birth and death certificates  Health care, immunization and STD clinic services  Medical and sustenance care for indigent individuals  Long-term care facility and mental health care facility  Provide services to veterans in Douglas County  Maintain all county (not city) roads and bridges  Landfill services and noxious weed control  With the State of Nebraska and Sarpy County, provide Extension services to residents  Provide 911 services  Provide law enforcement services  Prosecute all felony charges/advise county government officers  Provide public defender services  Court administration (County, District, Juvenile)  Adult correctional facility and youth services center  Provide support for children and families who are involved, or at risk of becoming involved, with the juvenile justice system Link to Douglas County’s Annual Comprehensive Financial Reports (ACFR’s), Monthly Departmental Expenses to Budget Reports, Weekly Supplier Check Reports: www.douglascountyclerk.org/ finance-division Valley City Park in Valley, NE