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HomeMy WebLinkAboutNew Kent County - Public Financial Report - 1 - POPULAR ANNUAL FINANCIAL REPORTING FISCAL YEAR ENDED JUNE 30, 2021 - 2 - Citizens of New Kent County, We are pleased to present to you New Kent County’s seventh Popular Annual Financial Report (PAFR), prepared by the Department of Financial Services. We hope to provide you with a better understanding of our County government, local economic factors and financial position through this easily understandable explanation of our annual financial statement. A PAFR is an unaudited summary report of the financial activities and position of the County with the purpose of providing the citizens of New Kent County a better understanding of the financial position of the County. The PAFR was prepared using the audited financial statements included in the June 30, 2021 Annual Comprehensive Financial Report (ACFR) which was prepared in accordance with Generally Accepted Accounting Principles (GAAP) of the United States of America. The ACFR was audited by Brown Edwards Certified Public Accountants and received an unmodified opinion. An unmodified opinion means that the financial statements were fair and true in all material aspects. Because the PAFR only includes certain funds and does not include transfers to and from other funds, the following financial statements do not comply with GAAP and generally accepted reporting requirements for government entities. More details on information referred to in this report can be found in the fiscal year 2021 ACFR on New Kent County’s website (www.co.new-kent.va.us/268/Annual-Financial-Reports) for interested users. Questions or comments concerning any of the information provided in the PAFR should be addressed to the Director of Financial Services, County of New Kent, P.O. Box 150, New Kent, VA 23124 or via email at rfguthrie@newkent-va.us. Sincerely, Rebecca F. Guthrie, CPA Director of Financial Services New Kent County Table of Contents New Kent County 3 Your Board of Supervisors 4 Quick County Facts 5 Initiatives and Accomplishments 6 The Local Economy 7 Budget 8 Financial Statement 9 Revenues 10 Expenditures 11 Fund Balance 12 The Future 13 Awards 14 Contact Your County 15 - 3 - T he County of New Kent was created by an act of the House of Burgesses on November 20, 1654. The settlers were of English descent and the County was named for Kent of England. Land grants to the early settlers along the rivers led to large plantations and manor houses, fostering a way of life long associated with our colonial era. The European history of New Kent began with the visit of Captain John Smith in 1607. At that time, it encompassed portions of today’s surrounding counties of Hanover, King William, King and Queen, James City, Charles City and Henrico. The area was frequented by the Chickahominy Indians and the tribe is still well established in the County today. Located between the high growth areas of Hampton Roads and Richmond, the County has undergone significant development over the past several years, but still maintains its rural character. New Kent County offers an open and relaxed atmosphere with the services and opportunities of an urban community. Richmond, Williamsburg, Norfolk and Washington D.C. are within close proximity. Citizens have access to multiple labor markets with a broad range of skills, a variety of educational institutions and access to major interstates for easy commuting to all areas of the East Coast and points west. The County offers a beautiful setting for living and working in an uncongested environment. New Kent County Public Schools operates four schools: New Kent Elementary, George W. Watkins Elementary, New Kent Middle School and New Kent High School. All four schools are fully accredited by the Virginia Department of Education. New Kent County School Board in partnership with New Kent County Board of Supervisors has begun construction on Quinton Elementary School. This new school facility is scheduled to open at the start of the 2022-2023 school year. The County is also home to the Bridging Communities Regional Career & Technical Center which shares a location with Rappahannock Community College. Bridging Communities provides high school students from New Kent County and surrounding communities with technical education skills and training. A number of major colleges and universities are within a 90-mile radius of the County. The County is home to four premier golf courses, horse racing and betting, four wineries, two campgrounds, and a large number of festivals. Bordering the County are the Chickahominy, Pamunkey and York rivers. NEW KENT COUNTY A community based on its citizens, heritage, rural character and quality of life. - 4 - YOUR BOARD OF SUPERVISORS Provide the Citizens of New Kent County the highest quality government services in a customer - focused, competent, professional, ethical, efficient and fiscally-responsible manner. New Kent County is governed by a five-member Board of Supervisors, whose members serve concurrent four-year terms. Members are elected by district. The Board of Supervisors adopts County ordinances, establishes County policies, sets tax rates, water and sewer rates, and adopts the annual operating and capital budgets. With some exceptions, the Board holds its regular business meetings at 6 p.m. on the second Monday of each month and work sessions on the last Wednesday of the month at 9 a.m. Agendas are posted approximately one week prior to meetings and can be found at the County’s website at: http://www.co.newkent.state.va.us/625/NovusAgenda Live streams of meetings are available on YouTube or replays can be watched on Cox Communications Channel 48 the day following the meeting at 9 a.m., 12 p.m., and 6 p.m. and continue daily until the next regularly scheduled meeting. The Board members, shown to the left, governed the County as of June 30, 2021. Scan the QR code above with your mobile device’s camera to locate your Polling Place REDISTRICTING 2021 The Virginia Constitution and Virginia Code requires localities which elect governing bodies by district every ten years to account for population and demographic shifts. Federal, state, and local reappointments require the use of federal census and redistricting data. New Kent County’s redistricting effort established new local election districts for the Board of Supervisors and School Board. This effort did not change school boundaries or electoral maps for the state legislators or member of Congress. On December 13, 2021, the New Kent County Board of Supervisors voted 5-0 favorably for Ordinance O-39-21, adopting the County’s 2021 redistricting plan. The County’s 2021 redistricting plan can be found at the following link: https://www.co.new-kent.va.us/ArchiveCenter/ViewFile/Item/6019 - 5 - QUICK COUNTY FACTS ABOUT FISCAL YEAR 2021 About New Kent Education Elementary schools 2 Middle schools 1 High schools 1 School buses 62 School enrollment 3,006 2021 graduates 225 Parks and Recreation Number of parks maintained 8 Park acreage owned by the County 385 Trails (miles) 8 Number of visitors 31,721 Library Libraries 1 Material circulated 78,301 Library patrons 14,809 Fire Department Companies 1 Stations 5 Emergency responses 3,395 Fires extinguished 102 Inspections 386 Sheriff’s Department Patrol units 19 Total calls dispatched 59,718 Calls dispatched for traffic 10,850 Calls dispatched for rescue 4.140 Criminal warrants served 1,567 Civil warrants and traffic notices 7,380 Refuse Collection Number of refuse sites 4 Refuse collected (tons) 6,844 Recyclables collected Metal (tons) 333 Mixed paper 593 Batteries (units) 478 Used oil (gallons) 11,599 Antifreeze (gallons) 485 Oil filters (gallons) 780 Category 1 (gallons) 1,485 Co-mix (tons) 228 Size Population 23,313 Square miles 210 Persons per square mile 111 County Employees (Full Time) General Government Clerk of the Board (includes pur-chasing 4 Commissioner of the Revenue 9 Treasurer 5 Finance 5 Human Resources 2 Information Technology 5 Registrar 2 Judicial Administration Clerk of the Circuit Court 4 Circuit Court Judge 1 Victim Witness 1 Commonwealth’s Attorney 4 Public Safety Sheriff and Animal Control 55 Fire and Emergency Mgmt. 52 Building Inspections 6 Public Works General Services 12 Health and Welfare Social Services 19 Human Services 1 Community Development Planning/Environmental/Permitting 9 Economic Development 2 Airport 1 Parks, Recreation and Cultural Parks and Recreation 5 Total General Government 204 Enterprise Funded Public Utilities (Water/Sewer) 20 Total Enterprise Funded 20 Total Positions: 224 - 6 - INITIATIVES AND ACCOMPLISHMENTS Actions the County has undertaken to provide and maintain high quality services. Major initiatives and accomplishments: • Research for and use of numerous federal, state, private and foundation grant opportunities for County programs, services, and capital programs • Implement energy savings programs and policies • Annually purchase Sheriff’s vehicles enabling the department to keep its fleet current • Fund computer replacements on a five-year rotating basis • Annually provide funding for new school buses on a rotating basis to meet state guidelines • Support to the New Kent Airport • Funding for the school’s Technology One-to-One Learning Initiative • Implementation of Envision New Kent, the County’s strategic plan, through intensive analysis of data, public engagement, strategic assessment and visioning • Conduct a benefit analysis on the long-term cost of purchasing copiers in order to utilize financial savings over time In addition, the County has most recently completed the following initiatives: • Grand opening of Pine Fork Park on July 14, 2021 after more than eight years in the making • Financed and began construction of Quinton Elementary School • Manage Central Virginia Transportation Authority (CVTA) funds to be appropriated for local transportation projects within the jurisdiction • Construction of the new post office began in late 2020 and completed in November 2021 New Kent University (NKU), is a ten-week program designed for citizens to learn about their local government. The once-a-year university is offered free of charge as a public service to those who live or work in the County, on a first-come, first-served basis for those who fill out a registration form. Enrollment is limited to 15 participants. Those who wish to be added to the contact list may contact Krista Eutsey, Public Relations Specialist at kmeutsey@newkent-va.us or (804) 557-3200. Since its first class in 2007 it is estimated that over 300 people have graduated from New Kent University. The next semester of NKU will begin in September of 2022. The County working closely with the Virginia Department of Health (VDH), conducted a total of 27 vaccination clinics during the first half of calendar year 2021. According to the VDH, a total of 21,682 doses were administered—12,032 received at least one dose and 11,052 were fully vaccinated. The County also received Coronavirus Aid, Relief, and Economic Security Act (CARES) funds totaling $4,029,202. The funds were allocated for: • Business assistance Grants • Child daycare assistance • Personal Protective Equipment • Chromebooks • Hazardous duty pay • High speed internet connections • Sanitation at public facilities • Utility assistance - 7 - THE LOCAL ECONOMY A Great Place to Grow - 8 - BUDGET Fiscal Year 2020-2021 Adopted Budget T he Budget process is one of the most important administrative processes the County faces each year. The Budget is the center of all transactions that take place during the fiscal year. It includes information on expected revenues and planned expenditures for each of the County’s major funds. The Budget Management Team, consisting of the County Administrator, Assistant County Administrator, Director and Assistant Director of Financial Services and a County department head, develop a budget that emphasizes the top priorities of the Board of Supervisors and align with the County’s strategic plan. There are many factors that influence the budget including funding from the Commonwealth, General Assembly mandates, tax rates, County fees, budget objectives, changes in services, personnel, local economy and schools. General Fund The FY21 adopted budget is a balanced budget of for the General Fund. A balanced budget means that the County’s planned resources (available funds) equal the planned expenditures. The FY21 budget is a $2,815,023 increase from the FY20 budget. The majority of this increase is attributed to the following highlights: Below are additional revenues as compared to the FY20 Budget Revenues • $1,094,957—Real Estate • $748,143—Personal Property—Largely related to population growth . • $555,408—Staffing for Adequate Fire & Emergency Response (SAFER) Grant • $231,421—Sales & Use Tax • $216,080—Business License • $188,302—Interest Revenue • $79,761—Meals Tax • $21,000—Vehicle Registration Additional Revenues were allocated mainly to the following expenditures Expenditures • $1,421,429—Personnel and 18 New Position Requests—12 Firefighters and 6 Sheriff Deputies • $1,091,715—School Set-aside • $100,500—Confinement of Inmates • $72,900 —Refuse Collections—due to increase in usage • $48,580—Economic Development Incentives Capital Improvement Fund The combined general government capital improvement fund budget totals $3,155,169, a $1,212,543 increase over the FY20 budget of $1,942,626. Debt Service Fund The debt service fund budget totaled $6,335,565 for FY21. This is a $38,493 decrease from FY20. The FY21 Adopted budget can be found on the County’s website: http://www.co.new-kent.va.us/269/Budget The Budget Process September - Annual kick-off meeting conducted by the County Administrator. October - Department Capital Improvement Plan (CIP) requests are due back to Financial Services. Budget Team meets with department heads to discuss requests. December - Department operating budget requests are due back to Financial Services. Budget Team meets with Department Heads. February - The County Administrator presents a proposed budget to the Board of Supervisors. The Board of Supervisors holds a Budget Retreat reviewing the proposed budget. April - A Budget & Tax Rate public hearing is held to inform residents and to obtain citizen input. The final budget is adopted. May - Final Budget Adopted - 9 - FINANCIAL STATEMENT The Statement of Revenues and Expenditures for the fiscal year ended June 30, 2021 T he Statement of Revenues and Expenditures is a detailed summary of the County’s fiscal year operations. This statement is derived from Exhibit 5 of the ACFR for fiscal years 2019, 2020 and 2021 and combines the general fund, capital improvement fund and the debt service fund. The general fund includes general and judicial administration, public safety, public works, health and welfare, the County’s share of education, parks and recreation and community development. The capital improvement fund includes expenditures related to facilities, equipment or services that are valued at $25,000 or greater, with a lifespan of at least five years. The debt service fund includes financial resources committed to the payment of outstanding debt incurred by the County. The airport fund, school construction fund and other governmental funds are not included in the Statement of Revenues and Expenditures below. Since this report is a condensed version of the ACFR, which is prepared in conformity with Generally Accepted Accounting Principles of the United States of America (GAAP), this statement is considered to be non-GAAP. Transfers to and from other funds have been eliminated to prevent double accounting. Total revenue increased $10,707,675 from FY2020 to FY2021. Total expenditures increased $6,100,856 from FY2020 to FY2021. Further review of the FY2021 revenues and expenditures can be found on the following two pages. Revenues: Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021 General property taxes 31,483,534$ 32,418,020$ 34,943,038$ Other local taxes 5,491,397 5,815,914 6,960,684 Permits, fees, and licenses 707,645 716,577 1,130,859 Fines and forfeitures 223,514 202,150 263,720 Use of money and property 894,638 820,327 670,338 Charges for services 591,434 435,389 382,388 Contributions and proffers 662,014 489,481 546,372 Miscellaneous 1,734,761 4,739,383 7,846,738 Recovered costs 540,288 677,742 709,196 Commonwealth of Virginia 5,181,877 5,224,329 5,295,588 Federal government 1,010,753 1,689,064 5,187,130 Total revenues 48,521,855$ 53,228,376$ 63,936,051$ Expenditures: General government administration 3,975,988$ 4,257,997$ 4,561,877$ Judicial administration 1,631,102 1,743,433 1,876,350 Public safety 9,297,988 10,846,528 13,321,876 Public works 1,793,726 1,786,942 1,845,532 Health and welfare 1,949,734 2,080,700 2,155,123 Education 14,249,900 13,702,030 13,584,470 Parks, recreation, and cultural 750,822 714,639 603,712 Community development 1,130,829 968,811 1,383,732 Capital projects 6,112,001 10,068,385 16,168,552 Debt service 6,128,314 9,538,720 6,307,817 Total expenditures 47,020,404$ 55,708,185$ 61,809,041$ Excess revenues over expenditures 1,501,451$ (2,479,809)$ 2,127,010$ Statement of Revenues and Expenditures - 10 - REVENUES Where the Money Comes From N ew Kent County’s fiscal year revenues totaled $63,936,051. The largest source of revenue, was from . This includes a $2,525,018 increase from fiscal year 2020 due to growth. See the chart below for a breakdown of this increase. The second largest source of revenue, was . This includes receipts from Off Track Betting and Colonial Downs; insurance recoveries, charge card fees, administration fees, gifts and donations; animal shelter donations, Sheriff restitutions, Farmers Market registration fees, document reproduction reimbursement, and vending machine sales. Revenues from the , were the third largest source of revenue. This includes local sales and use taxes, meals tax, business license taxes, vehicle registration tax, recordation taxes and consumer utility taxes. Photo Credit: Daily Press - 11 - EXPENDITURES Where the Money Goes T he pie chart below shows the total expenditures by category for fiscal year 2021. The total amount of expenditures was $61,809,041 (refer to page 9 for a dollar amount breakdown of expenditures). General Government Administration (7.38%) Board of Supervisors, County Administration, County Attorney, Human Resources, Commissioner of the Revenue, Treasurer, Financial Services, Information Technology, Registrar, Board of Equalization and Electoral Board. Judicial Administration (3.04%) Circuit Court Judge, General District Court, Magistrate, Juvenile & Domestic Court, Clerk of the Circuit Court, Sheriff Courts, Victim Witness Assistance and Commonwealth’s Attorney. Public Safety (21.55%) Sheriff, Confinement of Prisoners, Correction & Detention, Court Services, Animal Protection, E-911 Systems, Communication Systems, Ambulance & Rescue Services, Fire & Emergency Services, Forest Fire Services and Building Development. Public Works (2.99%) Refuse Collection and Building & Grounds. Health & Welfare (3.49%) Department of Social Services (DSS), Supplement to the Health Department, Henrico Mental Health Service, Area Agency on Aging, Meals on Wheels and Agency Donations. Education (21.98%) Contribution to the New Kent County School Board and local Community Colleges. Parks, Recreation and Culture (0.98%) Parks and Recreation, Recreation Programs, Cultural Enrichment, Fine Arts, and Contribution to the Library. Community Development (2.24%) Community Development Administration, Planning, Economic Development, Planning Commission, Board of Zoning Appeals, Environmental Division and Historic Commission. Debt Service (10.21%) Principal and interest payments on outstanding debt. Capital Projects (26.16%) Acquisition, construction or replacement of County’s assets. - 12 - FUND BALANCE What is fund balance? F und balance is the difference between what the County owns (assets) and what the County owes (liabilities). It is used for unexpected expenses or emergencies and benefits the County when seeking financing sources. The total fiscal year 2021 fund balance of $58,988,708 was classified the following ways: Non-spendable - Expenditures paid in fiscal year 2021 for fiscal year 2022. This amount is not available for expenditure and consists of prepaid item. Restricted - Legally constrained for a specific purpose by external parties such as creditors, grantors, contributors or laws and regulations. Committed - Constrained by the Board of Supervisors for the capital projects, Quinton Elementary School Construction, and general fund. Assigned - Constrained for a specific purpose by the County Administrator for debt service and Airport operations. Unassigned - Amounts available for future use by the governing body. - 13 - THE FUTURE Fiscal Year 2020-2025 Capital Improvement Plan T he Fiscal Year 2021—2025 Capital Improvement Plan (CIP) is a five-year, planning tool that identifies capital expenditure requirements, estimated costs, available sources of funding and estimates the likely future fiscal impact on County tax rates, debt capacity and financial policies. The County defines a capital expenditure as facilities, equipment or services that are valued at $25,000 or greater with an expected lifespan of at least five years. The CIP also includes a scheduled replacement plan for vehicles and computers that do not necessarily meet the $25,000 threshold. The Fiscal Year 2021-2025 County CIP includes 86 individual requests with a total five-year estimated cost of $31,020,200. The County Administrator recommended for fiscal year 2021 a CIP budget of $3,784,819. The following are some of the major capital expenditures, in no particular order, included in the Fiscal Year 2021 CIP: To view the entire fiscal year 2021-2025 Capital Improvement Plan, visit the County’s website at www.co.new-kent.va.us/391/Capital-Improvement-Plan . Vehicle Replacements $456,000 Sheriff’s Office Information Technology $140,000 Server Infrastructure Improvements $120,000 GIS Topography/aerial photography Fire Department $500,000 Fire/EMS Apparatus Airport $300,000 Land Services for Off-Airport Obstruction Removal Economic Development $225,000 Economic Development Prospect Schools $630,000 School Buses $189,000 NKES Updates and Minor Renovations $200,000 One-to-One Learning Initiative $120,000 Paving NKHS Bus Loop - 14 - AWARDS Popular Annual Financial Report Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to New Kent 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. New Kent County has received a Popular Award for the last seven consecutive years (Fiscal years ended 2014-2020). We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another Award. - 15 - CONTACT YOUR COUNTY For information and updates regarding New Kent County, visit us at www.co.new-kent.va.us, like us on Facebook or follow us on Twitter or Instagram. New Kent County Administration 12007 Courthouse Circle PO Box 150 New Kent, Virginia 23124 804.966.9861 Sheriff’s Office Emergency 9-1-1 Non-Emergency 804.966.9500 County Website www.co.new-kent.va.us County Facebook www.facebook.com/nkcounty/ County Twitter & Instagram @nkcounty County Administrator rahathaway@newkent-va.us Assistant County Administrator jmstauder@newkent-va.us County Attorney brendan@heftywiley.com Building Official bjmikelaites@newkent-va.us Commissioner of the Revenue lmecimovic@newkent-va.us Commonwealth Attorney (804) 966-5548 Director of Financial Services rfguthrie@newkent-va.us Economic Development Director mjsmolnik@newkent-va.us Environmental Director jcairaghi@newkent-va.us Fire Chief raopett@newkent-va.us General Services Director rdstewart@newkent-va.us Human Resources Director humanresources@newkent-va.us Chief Technology Officer jrstanger@newkent-va.us Director of Parks and Recreation kcturner@newkent-va.us Principal Planner klleduc@newkent-va.us Director of Public Utilities cmlang@newkent-va.us Sheriff jjmclaughlinjr@newkent-va.us Treasurer chevelyn@newkent-va.us Victim Witness Director kamortensen@newkent-va.us Voter Registrar vote@newkent-va.us Scan the QR code with your mobile device’s camera for New Kent Count, Virginia Tourism Information