HomeMy WebLinkAboutCounty of Frederick - Public Financial Reportfiscal year 2021Popular Annual Financial Report
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revenues &
expenditures
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by the
numbersInsidepage 2
about the
PAFR
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our
community
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fund balance &
net position
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2
In this data-driven world, we face a steady influx
of facts, figures and statistics. Sorting through
this information can be daunting and putting the
information to good use can be a difficult task.
We are pleased to share with you the Frederick County
Popular Annual Financial Report (PAFR) for the fiscal
year ending June 30, 2021.
In an effort to provide you with easily accessible,
reliable information, the PAFR provides a brief analysis
of where County revenue comes from and where those
dollars go in a short and concise format.
The PAFR is presented in an effort to better inform
the public about the County’s financial condition,
without excessive detail or the use of technical
accounting terms. This report represents the ongoing
commitment of County officials to keep Frederick
County citizens informed about County finances, and
to be accountable for the receipt and expenditure of
public funds. It is intended to be a supplement to the
2021 Annual Comprehensive Financial Report (ACFR),
not a replacement. It does not conform to accounting
principles generally accepted in the United States of
America (GAAP) and focuses solely on Governmental
Activities. Financial information related to the County
Schools, Landfill, Adult Detention Center, Regional
Airport, Shawneeland, and Court Services are not
included.
Although the PAFR is not audited and excludes many
material disclosures, financial statements, schedules
and notes to the financial statements, figures are
extracted from the County’s ACFR. The County’s financial
statements are prepared using the financial reporting
model prescribed by the Governmental Accounting
Standards Board (GASB) and are independently audited
in accordance with auditing standards generally
accepted in the United States of America by the
accounting firm of Robinson, Farmer, Cox Associates of
Charlottesville, VA. We encourage you to read the ACFR,
which is comprised of detailed financial statements,
notes, schedules and reports. The ACFR, in its entirety,
is available in the Frederick County Finance Department
and online at www.fcva.us/CAFR
Government Finance Officers Association
Award for Outstanding Achievement in
Popular Annual Financial Reporting
Presented to
County of Frederick
Virginia
For its Annual Financial Report
for the Fiscal Year Ended June 30, 2020
Executive Director/CEO
Connect with Us
Keep up-to-date on information from the Finance Department at www.fcva.us/finance and all-things
Frederick County Government through our NewsRoom at www.fcva.us/news
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Our Community
Frederick County, at the tip of the Northern Shenandoah Valley, is 72 miles northwest of Washington, D.C., and in the
Northernmost corner of the state of Virginia. The County, which covers 424 square miles and borders the West Virginia line, was established in 1738. The County sits at the mouth of the Shenandoah Valley which stretched 200 miles between two
mountain ranges - The Blue Ridge Mountains to the east and the Allegheny Mountains to the west.
The Valley is bound by two rivers, the Potomac River to the north and the James River to the south. Its county administrator form of government was established in 1971. In the southeastern portion of the county, there are two incorporated towns,
Stephens City and Middletown. Frederick County is the 13th largest county in Virginia by population, is home to the 21st largest school division in Virginia, and 28.8% of residents hold bachelors degrees or higher.
POPULATION
PER CAPITA INCOME
TAXABLE PROPERTY VALUES
REAL ESTATE
PERSONAL
PROPERTY
MACHINERY &
TOOLS
*estimate
MOBILE HOMES
*estimate
UNEMPLOYMENT
2012: $7.6B 2015: $8.1B 2020: $11.0B 2021: $11.5B
2012: $943M 2015: $1.1B 2020: $1.4B 2021: $1.5B
2012: $248M 2015: $315M 2020: $427M 2021: $410M
2012: $41M 2015: $42M 2020: $42M 2021: $40M
2012: 5.8%2015: 4%2020: 4.9%2021: 3.1%
2012: $42,117 2015: $45,631 2020: $54,832 2021: $55,000*
2012: 80,241 2015: 83,513 2020: 91,419 2021: 93,000*
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FY 2021 General Fund: Total Fund Balance
Fund Balance is the excess dollars of what the
County owns (assets) over what the County
owes (liabilities) in the current year. Fund
balance is a critical factor in financial planning
and budgeting, provides for unforeseen
expenses or emergencies, reduces the need for
short-term borrowing for operations by assuring
sufficient cash flow, and demonstrates financial
stability, which enhances bond rating, thereby
lowering debt issuance costs.
The County’s fund balance has increased over
the last 3 years.
40
50
60
70
80
201820172016201520142013
MI
L
L
I
O
N
S
2019 2020 2021
$63.9M
$68.6M
$82.4M
0.00% Nonspendable $1.6K
9.21% Restricted $7.6M
4.57% Committed $3.8M
0.01% Assigned $4.8K
86.22% Unassigned $71.0M
Total Fund Balance $82.4M
Note
County policy transfers unassigned fund balance in excess of
20% operating reserves to a capital reserve fund following
the close of the fiscal year. For 2021, $26.1 million of the $71
million was reserved for future capital needs.
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5
FY 2021 Governmental Activities: Net Position
Changes in net position are represented by comparing total annual revenue with total annual expenses. When
revenue exceeds expenses, the County’s net position improves. The County’s net position has increased over the
previous year.
FY 2021
Beginning Net Position $ 18,827,105
Total Revenues + 226,961,682
Total Expenses - 202,673,715
Ending Net Position $ 43,115,072
The significant reduction in net position in 2018 is due to the new accounting standard required to recognize postemployment benefits other than pensions (OPEB). Without this reporting change, the County’s net position would have remained flat as there was a minimal difference, $153,309, between revenues and expenditures for 2018.
The $8.2 million decrease in net position for 2019 is due to a $15.7 million increase in education expenses as a result of a net increase in school general obligation bonds issues, offset by increased general revenue in the amount of $7.4 million.
The $14.7 million increase for 2020 is partially due to a real estate reassessment, CARES Act Funding, and reduced expenses as a result of a spending freeze due to COVID-19.
The $24.3 million increase for 2021 is due to a combination of revenues exceeding budget projections, and an increase in property taxes as a reqult of the prior year reassessment and increased automobile values. In addition, CARES Act funding was still being used in FY21.
10
20
30
35
201820172016201520142013
MI
L
L
I
O
N
S
2019 2020 2021
5
15
25
40
$4.1M
$18.8M
$43.1M
What’s the difference between Net Position and Fund Balance?
Net position of governmental activities reflects the difference between all economic assets and liabilities, both
short-term and long-term, while fund balance of governmental funds represents the difference between only
currently available assets and the liabilities to be repaid from those assets. Additions to fund balance include:
capital assets (land, buildings, schools, etc.), internal service funds, other long-term assets, and deferrals. Long-
term liabilities are subtractions from fund balance and include items such as OPEB and pension liabilities and
debt and interest payments outside of the current year.
(See Exhibit 4 of the ACFR)
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6
Sources of County Revenues - General Fund
Revenues
Property taxes
Other local taxes
Permits, fees and licenses
Fines and forfeitures
Use of money and property
Charges for services
Miscellaneous
Recovered costs
Issuance of capital lease
Commonwealth of VA
Federal Government
County Capital Reserve
CARES Funds
Total Revenues
FY2021
$129,586,450
43,632,400
2,424,417
199,394
3,125,173
2,411,670
438,314
4,071,208
-
21,118,336
4,404,069
2,379,301
4,845,362
$218,636,094
FY2020
$120,543,325
39,526,349
2,285,194
248,111
998,794
2,344,290
156,935
7,948,509
-
21,859,486
4,304,569
3,783,655
-
$203,999,217
FY2019
$113,629,440
36,634,376
2,188,705
313,896
1,272,035
3,003,141
416,830
3,422,092
449,291
21,652,162
4,025,596
-
-
$187,007,564
The General Fund is the County’s primary operating fund. This fund is used to record all resource inflows and
outflows that are not associated with special-purpose funds. The major sources of revenues for the General
Fund are real estate and personal property taxes, other taxes, non-restricted grants, and operating grants and
contributions. These taxes predominately fund basic government services including Public Safety, Parks and
Recreation, and education. The activities being paid for through the general fund constitute the principal
administrative and operational tasks of Frederick County Government.
Revenues
Fiscal year 2021 results illustrated as cents per dollar of revenue with property taxes making up 59¢ for each $1
received.
$0.59 Property taxes
$0.20 Other local taxes
$0.10 Commonwealth of VA
$0.02 CARES Funds
$0.02 Federal Government
$0.02 Recovered costs
$0.01 Use of money and property
$0.01 Permits, fees and licenses
$0.01 Charges for services
$0.01 County capital reserve
$0.00 Miscellaneous
$0.00 Fines and forfeitures
$0.00 Issuance of capital lease
Total Revenue $218.6M
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Use of County Funds - General Fund
On an annual basis, the County adopts an annual operating budget which allocated dollars to the highest
priorities as determined by the Board of Supervisors. The General Fund primarily is financed by real estate and
personal property taxes and supports core services such as public safety.
The County provides services to our citizens with the majority of the fund being dedicated to Education and
Public Safety, which includes Fire & Rescue and the Sheriff’s Office, Parks & Recreation, and Health & Welfare.
Expenditures
General administration
Judicial administration
Public safety
Public works
Health / welfare / CSA
Local community college
Public school system
Public school debt service
Parks, recreation and culture
Community development
County debt service
County capital reserve
Total Expenditures
FY2021
$12,335,688
2,942,811
42,930,250
6,031,603
11,875,229
81,308
87,933,236
17,085,531
6,244,228
2,161,568
2,272,561
13,004,306
$204,898,319
FY2020
$13,654,137
2,931,762
41,395,357
6,291,241
11,760,036
81,308
83,349,189
16,248,300
7,625,553
2,123,758
2,268,063
11,504,520
$199,233,224
FY2019
$11,067,912
2,962,088
39,152,979
5,432,118
11,114,109
81,080
85,327,387
14,579,320
7,346,862
2,155,810
2,257,231
-
$181,476,896
Expenditures
Fiscal year 2021 results illustrated as cents per dollar of expenditure, with Education accounting for 51¢ and Public
Safety accounting for 21¢ of every $1 spent.
$0.06 General administration
$0.01 Judicial administration
$0.21 Public safety
$0.03 Public works
$0.06 Health/welfare/ CSA
$0.51 Education
$0.03 Parks, recreation and culture
$0.01 Community development
$0.01 County debt service
$0.06 County capital reserve
Total Expenditures $204.9M
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8
Fast Facts
ANIMAL SHELTERDogs cats adopted/reclaimed: 943
BUILDING INSPECTIONS
Inspections performed: 29,911
Building/zoning related permits issued: 8,024
PARKS & RECREATIONYouth Sports participants: 5,400basicREC average daily attendance: 715Special Events/Excursions: 55
PUBLIC SAFETYFire and Medical incidents: 11,803Law enforcement calls for service: 80,983911 calls for service - Fire/EMS: 12,106911 calls for service - Sheriff: 85,897
MAJOR EMPLOYERSFrederick County School BoardNavy Federal Credit UnionAmazon Fulfillment CenterU.S. Dept. of Homeland DefenseTrex Company, Inc.County of FrederickThe Home DepotH.P. Hood, Inc.Martin’s Food MarketFisher Scientific Company
0.0
0.2
0.4
0.6
0.8
1.0
1.2 2021 Real Estate Tax Rates
per $100 of assessed value
$0.93 City of Winchester
$0.61 Clarke County
$0.994 Fauquier County
$0.61 Frederick County
$0.98 Loudoun County
$0.64 Shenandoan County
$0.655 Warren County
Other Tax Rates:
$4.86 Personal Property
$2.00 Machinery & Tools
$0.01 Airplanes
$0.61 Mobiles Homes
By The Numbers