HomeMy WebLinkAboutHillsborough County - Public Financial ReportHillsborough County, Florida
Financial Summary Report
Fiscal Year Ended September 30, 2021
To the Residents of Hillsborough County:
I am pleased to provide you with the Hillsborough County, Florida Financial
Summary Report for the Fiscal Year, which ended on September 30, 2021.
The Financial Summary Report was derived from the Hillsborough County
Florida Annual Comprehensive Financial Report. (ACFR). The ACFR consists of
over 260 pages of detailed financial statements, notes, schedules, and reports.
The AFR is posted at www.hillsclerk.com (select “Records and Reports” at the
top of the page, then “County Financial Reports”). It is also available at the
County Finance Department, County Center 12th Floor, 601 E. Kennedy Blvd,
Tampa, FL 33602, or by calling (813) 307-7026. The Financial Summary
Report presents the financial information of all County government
operations, including those of the Board of County Commissioners, Clerk of
Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax
Collector, but excludes discretely presented component units. Since the
Financial Summary Report contains simplified information, it does not
conform to Generally Accepted Accounting Principles (GAAP) for
governmental entities. As the Chief Financial Officer of Hillsborough County, I
am fully responsible for the accuracy of these financial reports.
I am proud to say this year’s cover spotlights the Hillsborough County Health
Care Services Department.
Thank you for your partnership as we work together to Get to YES!
Sincerely,
Cindy Stuart
Principal Officials
BOARD OF COUNTY
COMMISSIONERS
Hillsborough County’s legislative
body consists of a seven-member
Board of County Commissioners
(BOCC) elected by the voters.
Board members at fiscal year-end
were:
CONSTITUTIONAL
OFFICERS
Constitutional Officers are elected
officials responsible for functions of
County government specified in the
Florida Constitution. Constitutional
Officers at fiscal year-end were:
Pat Kemp, Chair
Kimberly Overman, Vice-Chair
Stacy White, Chaplain
Harry Cohen
Ken Hagan
Gwen Myers
Mariella Smith
Cindy Stuart
Clerk of Circuit Court
Chad Chronister
Sheriff
Bob Henriquez
Property Appraiser
Craig LatimerSupervisor of Elections
Nancy C. MillanTax Collector
APPOINTED OFFICIALS
Bonnie Wise
County Administrator
Christine Beck
County Attorney
County’s website:
www.hcflgov.net
Page 1 of 7
Revenues
Total revenues increased $390 million or 15.3% from the previous year.
Fiscal Yr Increase
Amounts in millions 2020 (Decrease)Change
Governmental activities:
Property taxes $973 895 78 9 %
Sales taxes and state
shared revenues 569 564 5 1 %
Other taxes 58 50 8 16 %
Investment earnings 4 51 (47)-92 %
Charges for services 327 267 60 22 %
Grants and contributions 446 219 227 104 %
Other revenues 24 26 (2)-8 %
Total governmental activities 2,401 2,072 329 16 %
Business-type activities:
Water 397 356 41 12 %
Solid Waste 136 116 20 17 %
Total business-type activities 533 472 61 13 %
Total revenues $2,934 2,544 390 15 %
Fiscal Yr
2021
Governmental activities are activities supported primarily by taxes, state shared
revenues, charges for service, or federal and state grants. Governmental
activities consist of all activities not included in the business-type activities
category.
Business-type activities are activities supported by fees and user charges that
are set to recover the cost of services provided. Business-type activities consist
of the Water and the Solid Waste utilities.
Property taxes increased $78.3 million due to a $9.3 billion or 8.2% increase in the
assessed value of taxable real estate in Hillsborough County during fiscal year 2020.
This increase was primarily the result of real estate market values rising $11.3 billion,
offset by property tax exemptions rising only $2.0 billion.
Sales taxes consist of discretionary sales surtaxes such as the Community Investment
Tax and the Health Care Sales Surtax. State shared revenues consist of revenues
received from the state of Florida such as the Local Government Half-Cent Sales Tax,
state revenue sharing proceeds, the Constitutional Fuel Tax, and County Fuel Tax. The
$27.3 million increase in state shared revenues and $1.6 million increase in Fuel Taxes
due to a rebound in the state’s economy was partly offset by a decrease in
discretionary sales tax after the Florida Supreme Court ruled the County’s
Transportation Improvement Sales Surtax unconstitutional.
Investment earnings decreased by $(47.0) million due to a lower rate of return on
the County’s investment portfolio.
Charges for services increased $59.8 million primarily due to increased activity in
virtually all facets of government as threat of COVID-19 waned and business started
to return to normal.
Grants and contributions as a whole increased $228.2 million from the previous year
due to increases in CARES Act funding and Transportation grant funding partly offset
by the end of Hurricane Irma disaster relief and decreased public safety grant
funding.
Other revenues decreased $(2.3) million primarily due to increases in gains on sale of
capital assets offset by decreases in inventories.
Water utility revenues increased $41.1 million primarily due to an increase in charges
for services of $19.0 million and an increase of $33.8 million in capital contributions
from developers, partially offset by a decrease of $(4.6) million in transfers and a
decrease in investment earnings of $(7.1) million.
Solid Waste revenues increased $19.5 million due to a $23.8 million increase in
operating fees offset by decreases in nonoperating revenues of $(4.3) million.
Page 2 of 7
Expenses
Total expenses increased $60 million or 2.6% from the previous year.
Increase
Amounts in millions (Decrease)Change
Governmental Activities:
General government $442 434 8 2 %
Public safety 944 817 127 16 %
Physical environment 59 55 4 7 %
Transportation 95 126 (31)-25 %
Economic environment 66 92 (26) -28 %
Human services 219 268 (49)-18 %
Culture and recreation 82 93 (11)-12 %
Interest on long-term debt 24 23 1 4 %
Total governmental activities 1,931 1,908 23 1 %
Business-type Activities:
Water 318 305 13 4 %
Solid Waste 135 111 24 22 %
Total business-type activities 453 416 37 9 %
Total expenses $2,384 2,324 60 3 %
2021
Fiscal Yr Fiscal Yr
2020
General government expenses include categories such as administrative, financial, court-
related, budgeting and accounting, property assessments and tax collection,
master planning, and zoning. General government expenses increased by $8.4 million due
to a variety of reasons. There was an increase of $66.0 million related to the distribution of
impact fees to the School Board in fiscal year 2021 for the construction of schools, a $2.5
million decrease in Sheriff operating expenses, a $2.5 million decrease in worker's
compensation and a decrease in the pension expense attributable to the general
government function of $53 million.
Public safety expenses are for protecting people and property. This category includes costs
of the Sheriff, Fire Rescue, the Medical Examiner, Consumer Affairs, building inspections, and
emergency and disaster relief services. Expenses increased by $126.5 million primarily due
to a $190.4 million increase in disaster relief expenditures related to COVID-19. There was
also an increase in insurance expenses of $7.4 million, claims of $5.3 million, contracts of
$5.4 million and wages and benefits of $22.8 million. These increases were offset by a
decrease in the pension expense allocated to public safety of $101.5 million.
Physical environment expenses are associated with conserving and managing natural
resources such as air, water, soil, and wildlife, as well as controlling pollution. Expenses
increased by $4.2 million which was attributable to an increase of $3.8 million in
infrastructure preservation expenses and various increases and decreases in expenditures
that net to an increase of $0.4 million.
Transportation expenses are related to maintaining county roads, bridges, street lighting,
other infrastructure, and highway safety projects. Expenses decreased by $31.3 million
mainly due to a decrease in infrastructure preservation expenses of $14 million and
infrastructure disposals of $4.5 million. A $9.7 million reduction in the allocation of pension
expense* for transportation and there was a prior year grant expenditure reduction of $3
million for road construction work in progress.
Economic environment expenses are related to new business promotion and development;
housing assistance and rehabilitation programs; and disadvantaged minority, women-
owned, and small business enterprise programs. Expenses decreased by $25.6 million due to
a decrease in the pension expense* allocation to the economic environment of $9.8 million,
a decrease in payments to the Tampa Sports Authority of $19.9 million and an increase in
distribution to the City of Tampa of $4.7 million.
Human services expenses include providing services such as health care for the poor, public
assistance, care for the elderly, social services, as well as animal and mosquito control.
Expenses decreased by $48.7 million primarily due to a decrease in pension expense*
allocation to human services for $30.2 million, a decrease in grants and aids of $12.4 million,
and a decrease in professional services expenses of $5.5 million.
Culture and recreation expenses are associated with libraries, parks, and recreational
facilities. Expenses decreased by $11.8 million primarily due to decreased pension expense
allocation*.
*Pension expense allocation decreased in each function because all governments that participate in the Florida
Retirement System must record their share of changes caused by factors such as changes in actuarial assumptions
and related actuarial liability, funding decisions and, investment performance.
Page 3 of 7
Balance Sheet
September 30, 2021
Amounts in Millions
Activities Total Prior Yr.
$2,390 906 3,296 2,830
115 3 118 128
69 58 127 90
8,143 1,493 9,636 9,335
-- 121 121 178
10,717 2,581 13,298 12,561
3 3 6 7
226 12 238 375
55 1 56 35
--5 5 6
284 21 305 423
315 47 362 405
41 4 45 41
182 24 206 237
9 18 27 18
1,346 665 2,011 2,528
1,893 758 2,651 3,229
640 35 675 32
7 -- 7 6
1 -- 1 --
648 35 683 38
7,312 1,069 8,381 8,186
1,803 123 1,926 1,170
(655) 617 (38) 361
ASSETS
Cash and investments
Due from state/federal governments
Receivables/other current assets
Capital assets, net of depreciation
Notes receivable/noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Bond refunding losses
Pensions
Postemployment benefits (OPEB)
Purchase price in excess of book value
Total deferred outflows
LIABILITIES
Accounts payable
Accrued payroll liabilities, etc.
Unearned revenues (taxes or other
revenues received but not yet earned)
Deposits payable
Long-term liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pensions
Post employment benefits (OPEB)
FEMA reimbursement
Total deferred inflows
NET POSITION (Equity)
Net invested in capital assets
Restricted
Unrestricted
Total net position $8,460 1,809 10,269 9,717
Activities
Governmental Business-Type
The balance sheet shows the financial position of the County at the end of the fiscal year
compared to the prior year. The balance sheet and other statements in this report were
summarized from the Hillsborough County, Florida Comprehensive Annual Financial Report. To
simplify the presentation, the statements in this Financial Summary Report are not in GAAP
format. “Deferred outflows of Resources” are consumptions of resources, like prepaid
expenses, which will be recognized as expenses in the future. “Deferred inflows of
resources” are acquisitions of resources that will be recognized as revenues in the
future. The restricted net position represents equity that may be used only as specified
by debt covenants, grantors, laws or regulations, other governments, or other external
restrictions. The County had an unrestricted net position of ($655 million) and $617 million,
for governmental and business-type activities, respectively.
The increase in total net position from $9,717 million to $10,269 million indicates the County’s
financial position increased by 5.7% from the year before.
Cash & Investments
The County manages its investment portfolio with the primary objectives of safeguarding
principal, ensuring liquidity to meet daily cash needs, and maximizing investment earnings
within statutory and fiduciary requirements. The Board of County Commissioners Investment
Pool has Standard & Poor’s highest rating of AAAf. It also had an overall annual rate of return
for fiscal year 2021 of 1.08%, compared to the benchmark rate of 0.04%. On September 30,
2021, the County investment portfolio was invested as shown below:
Amount in
Millions
Percent
of Total
$ 2,382 69.2 %
214 6.2 %
79 2.3 %
708 20.6 %
28 0.8 %
33 0.9 %
3,444 100 %
(148)
U.S. Treasury and govt. sponsored agency
securities Bank accounts
Government-only money market mutual funds
State Board of Administration’s Florida PRIME
investment pool
Corporate notes and commercial paper
Municipal bonds
Total cash and investments
Less amounts held in trust for non-County entities
County’s total cash and investments $ 3,296
Page 4 of 7
Long-Term Liabilities
At September 30, 2021, the County had 23 bonded debt issues outstanding for a variety
of purposes including the construction or acquisition of parks and recreation facilities,
court facilities, environmentally sensitive land, solid waste facilities, and
water/wastewater treatment systems. Bonded debt outstanding and other long-
term liabilities, which include amounts due within one year on September 30, 2021,
were as follows:
Amounts in Millions Change
General obligation bonds $109 112 (3)
Revenue bonds 1,297 982 315
Total bonded debt 1,406 1,094 312
Notes payable 57 73 (16)
Direct borrowings and placements 63 56 7
Compensated absences payable 63 61 2
Net pension liability 398 1,267 (869)
Insurance claims payable 42 35 7
Net OPEB liability 140 117 23
Other long-term debt 45 44 1
Total long-term liabilities $2,214 2,747 (533)
2021 2020
On September 30, 2021, the County's general obligation debt was rated Aaa by
Moody's Investors Service, AAA by Standard & Poor's, and AAA by Fitch Ratings.
These are the highest attainable credit ratings.
Financial Reporting requirements and we are submitting it to the Government
Finance Officers Association for review.
Hillsborough County Health Care Services Department (on Cover)
The Hillsborough County Health Care Service Department manages the
Hillsborough County Health Care Plan (HCHCP), the Ryan White Program (RWP), a
Healthy Living Program, the Health Care Responsibility Act, the Trauma Agency and
the Medicaid Match for Hillsborough County.
Programs and other department functions:
HCHCP: Established in 1991 to provide health care to low-income, uninsured residents of the
county. It serves qualified individuals at or below 175% of the Federal Poverty Level.
Expenditures were $122M for fiscal year 2021.
RWP: in place since 1992 to address the need for HIV/AIDS-related services among the
economically disadvantaged and underserved residents in our community. This Program
serves HIV-positive residents who are at or below 400% of the FPL. The RWP expended almost
$11M during fiscal year 2021.
Responsible functions of the department include a Member Services and Provider Relations
Team that assists HCHCP members and all medical, behavioral health, and other entities that
provide services to members of the Hillsborough County Health Care Plan and Ryan White
programs. The Department’s Records and Recovery Team is the initial client intake and works
with attorneys to recover funds owed to the County from other programs or through the
recovery of lawsuit settlements. The Certification Unit ensures eligibility for the HCPC and
provides for enrollment and re-enrollment for the Health Care Plan.
To learn more about the Hillsborough County Health Care Services Department and its services, visit: https://www.hillsboroughcounty.org/en/government/departments/health.
4.3 4.4 4.8
6.1
2.0
0
2
4
6
8
FY 17 FY 18 FY 19 FY 20 FY 21De
b
t
S
e
r
v
i
c
e
C
o
v
e
r
a
g
e
Debt Service Coverage of
Governmental Revenue Bonds
This chart shows that pledged
revenues were 2.0 times
greater than the amount
needed for debt service on the
County’s governmental revenue
bonds during fiscal year 2021.
The Government Finance Officers Association of the United States and Canada has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Hillsborough County, Florida for its Financial Summary Report for the Fiscal Year Ended September 30, 2020. This prestigious national award recognizes conformance with the highest standards for the preparation of state and local government popular reports. To receive this award a government 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 only one year. We believe our current report continues to conform to the Popular Annual
Page 5 of 7
This chart depicts Governmental and Business-Type Revenue trends for the last ten fiscal years.
This chart shows Hillsborough County Governmental and Business-Type Revenues by Department
for fiscal year 2021.
This chart shows Hillsborough Counties total primary Government Capital Assets by Asset Type for
fiscal year 2021.
This chart depicts Hillsborough County's Cash and Investments Portfolio by type of Investment for
fiscal year 2021.
0.00
0.30
0.60
0.90
1.20
1.50
1.80
2.10
2.40
2.70
3.00
3.30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Bi
l
l
i
o
n
s
Revenue Trends
Governmental Business-type Total
18.6%
39.6%
2.5%4.0%
2.8%
9.2%
3.4%
1.0%
5.7%13.3%
County Expenses for Fiscal Year 2021
General Government
Public Safety
Physical Environment
Transportation
Economic Environment
Human Services
Culture and Recreation
Interest on Long-term Debt
Solid Waste
Water and Waste Water
5.5%
51.7%
3.2%
15.5%
19.0%
4.7%0.5%Capital Assets
Land, including rights-of-way
Infrastructure
Construction work in progress
Buildings
Improvements other than buildings
Equipment
Intangibles
213,501,000
155,000
1,924,726,000 457,770,000
28,567,000
32,585,000
707,760,000
78,577,000 Cash and Investments
Bank accounts
Petty cash
U.S. Treasury securities
U.S. government sponsored agency securitiesCorporate notes
Municipal bonds
State Board of Administration: Florida PRIMEOpen-end money market mutual
funds
Page 6 of 7
This chart depicts the estimated actual value of real property versus the assessed value of that property in billions for the last five years. The difference between the estimated actual and assessed values is attributable to homestead and other exemptions. Real estate valuations have been on the
rise for the past five years. Please refer to the ACFR for more information.
The County's unemployment rate improved from 2017 through 2019, but the effects of COVID-19 reversed that trend. In 2021, a downward trend resumed.
101.7 111.4
121.6 132.3
143.6
77.9 85.9
94.4 103.4
112.7
$0
$20
$40
$60
$80
$100
$120
$140
$160
2017 2018 2019 2020 2021
Am
o
u
n
t
s
i
n
b
i
l
l
i
o
n
s
Estimated Actual Value Assessed Value
Actual and Assessed Real Estate Values
4.7%
3.7%
2.9%
5.9%
3.9%
1%
2%
3%
4%
5%
6%
7%
2017 2018 2019 2020 2021
Hillsborough County Unemployment Rate
Page 7 of 7