Loading...
HomeMy WebLinkAboutAlamance County - Public Financial ReportA L A M A N C E C O U N T Y N O R T H C A R O L I N A C I T I Z E N S ' F I N A N C I A L R E P O R T F o r t h e f i sc al ye a r end ed Ju n e 30 , 2 021 P r epa r ed by t h e Alam a n ce Coun ty F inanc e D ep a r t ment 1      2     3      4      5    6    7      9    10    11     12     13     Manager's Message  Abou t Alamance County Alamance County at a Glance E conomy and Industry Alamance County Government Overview Dolla rs In: General Fund Rev enue Dolla rs Out: General Fund Expenditu res Net Positio n: Government al and Bus iness-Type Activities  Inco me Statement : Combined Financial Statements Fund B alan ce Debt: How much do we owe?  In Conclusion  Downtown Burlinton Photo Credit: Ron King Alamance Historic Courthouse T A B L E O F C O N T E N T S G F O A A W A R D 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 Alamance County for its Popular Annual Financial Report for the fiscal year ended June 30, 2020. 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. Alamance County has received this award for its Popular Annual Financial Report for all years beginning with and since 2018. The current report continues to conform to the popular annual financial reporting requirements and will be submitted to the GFOA to determine its eligibility for another certificate. National Law Enforcement Memorial In an effort to provide transparency and accountability to our residents, Alamance County Government presents the 2020-21 Citizens' Financial Report. This report is an overview of the Annual Comprehensive Financial Report that was prepared in conformance with Generally Accepted Accounting Principles (GAAP) and audited by Martin Starnes & Associates, CPAs, P.A., Information highlights the General Fund which accounts for the majority of operations for the County, but differs from the GAAP financial statements because accounting data has been summarized. The County has responded to the COVID-19 pandemic by remaining open to provide services to our citizens all while protecting the health and safety of our employees and citizens through telework and other protective building modifications. The Health Department, Emergency Management, EMS and other public safety departments have led the efforts to set up a call center to provide information to our citizens, offer testing sites and providing shelter and quarantine care for COVID patients. The County, along with Alamance-Burlington School System and Alamance Community College, continue to move forward with capital facility plan which will better meet the needs of our growing population. Initial site plans and development have begun for the bond construction projects. We hope that this report is a reflection of our mission and the work our departments and partner organizations have provided to residents this year. We invite you to look over this basic report as well as the complete Annual Comprehensive Financial Report available on our website, and we encourage you to reach out to us with any questions you may have.    T O T H E R E S I D E N T S O F A L A M A N C E C O U N T Y 1 2 4 W . E L M S T R E E T , G R A H A M | W W W .A L A M A N C E -N C .C O M M A N A G E R 'S M E S S A G E S H E R R Y H O O K INTERIM COUNTY MANAGER Top Row: Commissioner William T. "Bill" Lashley, Commissioner Craig Turner Bottom Row: Vice Chair Steve Carter, Chair John Paisley, Commissioner Pamela T, Thompson  BOARD OF COMMISSIONERS 2020-21 ALAMANCE COUNTY 1 Alamance County was formed in 1849, but its roots date back to the pre-Revolutionary War era and "The Battle of Alamance." Its history is rich with a hardworking community who provided for their families by working on farms or in textile mills. Economic and technological changes brought new growth and new opportunities for jobs and education.  County Government is responsible for providing citizens with a wide range of services including sheriff and fire protection, solid waste management, health and social services, and cultural and recreational activities. In addition to the direct services provided, the County also extends significant financial support to the school system, boards, agencies, and commissions. EMPLOYER ESTABLISHMENTS 3,346 UNEMPLOYMENT 5.0% MEDIAN   HOUSEHOLD INCOME $44,107 MEDIAN AGE 38.8 City of Burlington Burlington Carousel A B O U T A L A M A N C E C O U N T Y POPULATION 170,698 PUBLIC SCHOOL  ENROLLMENT 22,827 Photo Credit: Ron King Saxapahaw 2 Alamance County is a growing community located in central North Carolina. It encompasses a land area of 431 square miles which includes both rural and urban areas. Its location off of the I-85/I-40 corridor between the Triangle and the Triad have helped to ensure its future with continued growth and development. Currently, Alamance County is home to approximately 170,000 residents with fifteen communities in diverse areas throughout the county. A L A M A N C E  C O U N T Y A T A G L A N C E MUNICIPAL POPULATIONS Population 170,698 COUNTY POPULATION 65%Caucasion Alamance County is made up of a number of municipalities and towns with the City of Burlington as the largest in population and the City of Graham as the county seat. Approximately 62% of residents live in urban areas predominantly along Interstate 40 with mostly rural areas in the northern and southern part of the county. Burlington ................. Graham ....................... Elon ............................. Mebane* ..................... Gibsonville* ................. Haw River .................... Green Level .................. Swepsonville ................  Village of Alamance..... Ossipee............................. 53,276 15,568 12,752 12,054 3,765 2,488 2,330 1,509 1,170 605 Photo Credit: Ron King Saxapahaw Paramount Theatre Buster Sykes Farm 3 * A portion of these cities cross into a neighboring county; population figures are within Alamance County *U.S. Census Data , NC State Demographics Website and the Alamance County Chamber of Commerce 2%Other 13% 20%AfricanAmerican DEMOGRAPHICS Hispanic This past year, Alamance County has seen an increase in job creation as well as a decrease in unemployment both of which have positively impacted the county's economy. While our economy has historically been driven by the textile industry, recent growth and development have brought a wider array of industries to the community including health care and education. The past five years have included major corporate announcements along with expansions of new and existing businesses and industries which has resulted in increased diverse job opportunities. Growth is expected to continue bringing additional property and sales tax revenues further strengthening the economy.  E C O N O M Y & I N D U S T R Y EMPLOYMENT BY INDUSTRYTOP EMPLOYERS 8% 18% 14% 23% 18% 7% 9% 1% Education & Government Manufacturing,Trade, & Utilities Retail & Other Services Medical & Healthcare Leisure & Hospitality Professional Services2% Financial &Insurance Info. Services &Technology Real Estate& Construction Alamance-Burlington School System......................... LabCorp of America........................................................ Cone Health Alamance Regional................................. Elon University.................................................................. Walmart Stores Inc.......................................................... City of Burlington.............................................................. Alamance County Government........................................ Honda Power Equipment...................................................... GKN Driveline North America.......................................... Alamance Community College......................................... 3,500 3,000 2,000 1,500 1,200 1,100 950 850 800 650 Honda Power Equipment Ribbon Cutting Lab Corp * See AlamanceChamber.com for additional economic development/industry information 4 Groundbreaking Ceremony for Stokes Cook & Associates A L A M A N C E C O U N T Y G O V E R N M E N T O V E R V I E W Public Safety 911 *CAD entries Emergency Management events EMS calls for service Fire inspections Number of residential inspections Sheriff calls for service Economic and Physical Development Cooperative Extension students served through embryology sessions Soil and Water customers assisted Human Services Number of Food & Nutrition Services applications Health Clinic patients (unduplicated) Dental Clinic patients (unduplicated) Family Justice Center clients served Veterans served Cultural and Recreational Library visitors Park visitors 2017 223,439 48 35,081 1,506 16,711 72,605 400 9,320 6,303 6,250 3,311 1,583 5,508 547,012 533,269 2018 243,455 59 35,886 925 18,575 82,571 1,011 5,107 6,130 6,430 3,626 1,425 6,468 465,393 534,199 2019 258,706 114 33,308 1,279 16,149 82,432 1,251 3,680 5,405 6,436 3,532 1,198 6,749 477,240 521,052 911 Center EMS North Park Garden *CAD is the link between dispatchers and responders 5 2020 276,984 103 34,561 1,180 17,525 104,776 542 3,067 7,414 5,946 3,231 887 5,203 361,591 700,567 2021 277,254 262 36,767 1,092 17,107 102,960 727 1,475 7,399 4,379 2,979 1,595 5,630 87,723 716,885 Government Activities Revenue Property Tax Sales and Use Tax Grants Fees Other Total Revenue 2017 $77,536,930 28,159,495 24,598,059 12,571,963 2,678,834 $145,815,319 2019 $84,468,666 31,520,453 18,971,127 16,155,564 2,810,873 $153,926,683 Alamance County Government's resources and services are funded through several different revenue streams. In fiscal year 2020-21, the county collected general fund revenues of $182,684,019 with the majority received through property and sales and use taxes which makes up almost 80% of total revenue. The County's property tax rate was adopted at .67 per $100 valuation for fiscal year 2020-21 to maintain County operations through the COVID-19 pandemic. Other sources of revenue include grants, fees for service, and other various revenue streams. D O L L A R S I N G E N E R A L F U N D R E V E N U E GOVERNMENTAL ACTIVITIES REVENUE 56.28% 2.07% 18.53% 12.75% 10.37% Property Tax Grants Fees Other Sales & Use Tax 6 *Amounts are expressed in millions *Alamance County Annual Comprehensive Financial Report FY 20-21 Exhibit D General Fund 2020 $97,870,813 32,221,239 22,178,457 18,025,563 3,597,841 $173,893,913 2021 $101,979,571 39,442,964 21,734,927 18,226,826 1,299,8731 $182,684,019 2018 $79,987,712 29,828,338 18,071,523 15,547,730 3,484,762 $146,920,065 Governing Body County Manager's Office Legal Department Human Resources Finance and Purchasing Tax Department Register of Deeds Board of Elections Information Technology Geographic Inf. Systems Maintenance Sheriff's Office Detention Facility School Resource Officers Judicial Services Central Communications (911) Emergency Medical Services Permits and Inspections Emergency Management Fire Marshal's Office Planning Cooperative Extension Economic Development Soil Conservation Tourism Development Authority Alamance County Government provides a wide range of services to residents ranging from public safety, heath and social services, veterans support, and parks. The county also provides significant funding to the Alamance-Burlington School System and Alamance Community College.  The operating fund from which the County accounts for the money coming in and the expenditures paid out is the General Fund. For Fiscal Year 2020-21, general fund expenditures totaled $155,930,554. This decrease of approximately $4 million or 2.51%, when compared to 2019-20 was primarily due to the impact of federal Coronavirus Relief and American Rescue Plan funds. D O L L A R S O U T   G E N E R A L F U N D E X P E N D I T U R E S Public Health Dental Clinic Social Services Veterans' Services Libraries Parks Public Schools Community College GENERAL GOVERNMENT PUBLIC SAFETY ECONOMIC & PHYSICAL DEVELOPMENT HUMAN SERVICES CULTURAL SERVICES EDUCATION  General Fund Services Emergency Management Training Exercise Buster Sykes Orchard and Farm Cooperative Extension Live Burn Exercise 7 Government Activities Expenses General Government Public Safety Transportation Environmental Protection Economic & Physical Development Human Services Cultural & Recreation Education Debt Service Total 2017 $15,964,205 33,448,614 464,448 71,147 2,148,930 36,408,854 4,545,456 41,985,810 9,241,362 $144,278,826 2018 $15,580,626 37,083,685 478,516 68,340 3,195,802 31,395,230 5,565,255 45,345,109 10,399,830 $149,112,393 2019 $14,203,886 36,436,504 478,708 79,488 2,488,307 30,650,334 4,765,706 47,202,481 10,854,783 $147,160,197 Economic Dev.1.81% Human Services19.77% Debt Service 5.60% D O L L A R S O U T G E N E R A L F U N D E X P E N D I T U R E S 2020-21 GOVERNMENTAL ACTIVITIES EXPENDITURES EDUCATION FUNDING 31.99%Education Public Safety 25.04% Trans. & Other0.18% General Gov.11.36% Culture & Rec 4.18% 8 *Amounts are expressed in millions *Alamance County Annual Comprehensive Financial Report FY 20-21 Exhibit D 2020 $17,290,097 40,770,898 487,589 69,695 3,894,592 31,062,838 5,983,710 50,097,454 10,292,392 $159,949,265 2021 $17,711,739 39,050,886 287,298 105,050 2,825,001 30,823,700 6,514,838 49,886,020 8,726,022 $155,930,554 N E T P O S I T I O N G O V E R N M E N T A L A N D B U S I N E S S -T Y P E A C T I V I T I E S Alamance County's Net Position as discussed in the Management's Discussion and Analysis Figure 2 section of the Annual Comprehensive Financial Report provides insight into the County's financial position as of June 30, 2021. It includes a summary of what the County owns (assets and deferred outflows) and owes (liabilities and deferred inflows).  Total net position is the difference between Total assets (what we own), including Deferred outflows, and Total liabilities (what we owe), including Deferred inflows.  Balance Sheet Current assets Non-current assets Total assets Deferred outflows Current liabilities Long-term liabilities Total liabilities Deferred inflows Net position Invested in capital assets Restricted Unrestricted Total over (under) net position 2017 $77,227,425 74,761,728 151,989,153 12,891,033 2,887,342 128,536,521 131,423,863 607,195 68,981,608 15,799,919 (51,932,399) $32,849,128 2018 $80,199,157 71,489,941 151,689,098 10,488,737 2,830,835 177,871,824 180,702,659 9,451,596 63,374,046 16,070,192 (107,420,658) *$(27,976,420) 2019 $93,556,692 59,592,666 153,149,358 15,279,634 3,310,413 158,639,426 161,949,839 26,963,585 54,344,231 16,591,160 (91,419,823) $(20,484,432) 9 *Implementation of GASB 75 in FY18 required a “restatement” that decreased our Net Position by $58,561,180 to disclose our Other Post Employment Benefits (OPEB) obligations. 2020 $115,318,749 60,047,315 175,366,064 17,579,598 16,372,057 149,791,990 166,164,047 21,854,259 54,379,583 17,457,213 (66,909,440) $ 4,927,356 2021 $319,870,619 62,097,998 381,968,617 34,218,656 36,697,794 338,968,454 375,666,248 16,786,473 56,421,001 21,200,559 (53,887,008) $ 23,734,552 I N C O M E S T A T E M E N T C O M B I N E D F I N A N C I A L S T A T E M E N T S Alamance County’s Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental funds is similar to a corporate profit and loss report in that it reflects all revenues and expenditures during the fiscal year ended June 30, 2021. As compared to last fiscal year, total revenue increased 9.97%, mostly due to federal Coronavirus Relief and American Rescue Plan funds, strong sales and use tax collections, program fees and services. The large increase in Other Financing Sources is a result of the County selling bonds for school and community college construction and renovation projects. Statement of Revenues and Expenditures Revenues Property tax Sales and use tax Other taxes and licenses Grants Program fees and services Other revenue Contributions Total Revenue Expenditures Governmental activities Education Debt service Total expenditures Revenues over (under) expenditures Other Financing Sources Net Change in Fund Balance 2017 $ 82,647,767 28,159,495 1,662,790 27,027,144 12,571,963 1,071,054 153,140,213 98,526,500 57,506,617 10,060,285 166,093,402 (12,953,189) 17,532,598 $ 4,579,409 2018 $ 85,315,860 29,828,338 1,856,364 20,505,950 15,547,730 1,920,689 1,200,000 155,914,992 99,456,270 49,616,136 10,399,830 159,472,236 (3,557,244) 4,258,489 $ 701,245 2019 $ 90,014,904 31,520,453 2,076,177 22,219,897 14,079,387 2,867,863 3,200,000 165,978,681 95,861,679 50,615,496 10,854,783 157,331,958 8,646,723 389,235 $ 9,035,958 10 *Alamance County Annual Comprehensive Financial Report FY 20-21 Exhibit D 2020 $ 103,513,028 32,221,239 1,904,663 26,811,551 16,120,900 3,480,988 184,052,369 108,559,889 56,054,240 10,441,738 175,055,867 8,996,502 3,841,191 $ 12,837,693 2021 $ 109,333,484 39,442,964 3,027,573 34,545,492 15,199,253 1,053,103 (200,000) 202,401,869 117,778,184 61,073,815 9,252,359 188,104,358 14,297,511 175,629,206 $ 189,926,717 Fund Balance Non-spendable: Notes Receivable Restricted: Stabilization by State Statute Restricted, all other Committed* Assigned Unassigned Total Revenue 2017 $11,152,730 3,030,708 7,467,331 26,350,853 $48,001,62 2018 $ 390,988 11,455,111 3,228,097 1,114,195 11,636,038 20,885,793 $48,710,222 2019 $ 330,836 9,958,759 2,008,298 8,022,871 13,191,538 18,385,801 $51,898,103 F U N D B A L A N C E The County’s fund balance consists of revenues that were not spent in previous years.  Fund Balance is divided into five categories: non-spendable, restricted, committed, assigned, or unassigned. These classifications tell how much of the fund balance must be reserved for a specific use as required by the funding source, the Board, management, or the law.   Fund Balance may be “restricted” for a specific purpose because of the funding source and Fund Balance may be “committed” for a specific purpose by our governing body. North Carolina enacted a “stabilization” law that identifies a certain portion of fund balance as a “safety net” in case of emergencies, economic crises, or other circumstances that may impact the County’s finances.   “Unassigned” describes the portion of Fund Balance that has no restrictions on how it may be used. In its fiscal policies, the County set a goal to have an unassigned general fund balance equal to 20% of general fund expenditures; and funds in excess of 20% may be transferred to a capital reserve fund. That would mean that, if needed, the County had enough unassigned fund balance to pay for 3 months of operations.  GENERAL FUND The County set a goal to have an unassigned fund balance equal to 20% of the total of annual expenditures. *Amounts are expressed in millions 23% Unassigned Fund Balance Unassigned Fund Balance 11 *Alamance County Annual Comprehensive Financial Report FY 20-21 Exhibit C 2020 $ 270,684 9,804,975 4,091,433 5,457,507 12,697,510 24,587,727 $56,909,836 2021 $ 210,532 11,935,813 7,628,195 11,520,640 4,484,164 35,766,923 $56,909,836 D E B T H O W M U C H D O W E O W E ?  Alamance County builds and maintains facilities for our public schools, community college, criminal courts system, and county services through the issuance of debt. While the County pays the debt for school facilities, the building, land, etc., all property belongs to the school system or community college. North Carolina state statutes limit the amount of general obligation outstanding debt to 8% of Alamance County's assessed valuation of property taxes. Our legal debt limit is $1,010,050,972.  County debt is comprised of three components: 1. General Obligation Debt: Debt backed by the full faith and credit of the county. As of June 30, 2021, the county's general obligation debt is rated AA by Standard & Poor’s rating agency and Aa2 by Moody’s Investors. Bond ratings are similar to personal credit scores - the higher the bond rating, the lower the interest.  2. Revolving and Installment Loan Debt: Debt with fixed payments that the county uses for equipment purchases and facility construction. 3. Capital Leases: Leases with contract terms longer than a year are defined as capital leases, and the lease item is considered a purchased asset. Outstanding Debt General Obligation Bonded Debt Revolving & Installment Loan Debt Capital Leases Total Debt 2017 $53,426,960 9,422,069 1,688,251 $64,537,280 2018 $47,932,174 9,946,932 2,336,724 $60,215,830 2019 $42,337,388 7,244,490 1,618,599 $51,200,477 2017 2018 2019 2020 2021 250 200 150 100 50 0 *Amounts are expressed in millions OUTSTANDING DEBT DEBT PER PERSONFY 2020-21 $1,257.20 12 *Alamance County Annual Comprehensive Financial Report FY 20-21 MD&A Figure 5 2020 $36,777,602 7,533,585 2,169,382 $46,480,569 2021 $205,490,867 6,728,727 2,382,359 $214,601,953 I N C O N C L U S I O N This brief overview primarily represents Alamance County's revenue and operating costs. To learn more about the County's financial funds or view the 2020-21 Annual Comprehensive Report, please visit the Alamance County Finance Department's website. www.alamance-nc.com/finance ALAMANCE COUNTY IS COMMITTED TO: Preserving Agriculture: A vibrant, protected rural economy supporting locally owned and operated farms World Class Education: A commitment to world-class education to encourage a prosperous community and individual success for all from cradle to career Smart Growth and Development: Planned growth that strikes a balance between a thriving economy and an appreciation of natural and agricultural resources Public Health and Safety: Develop and implement activities that provide for the well-being of all citizens in a responsive, respectful, and engaged manner Government Accountability and Resource Management: A commitment to provide leadership through innovative and effective management. Promote trust by providing transparency, openness, and appreciating citizen concerns.  Downtown Burlington Sheriff's Office No-Till Drill Program 13 Alamance County Government 124 West Elm Street Graham, NC 27253 336-228-1312 www.alamance-nc.com