HomeMy WebLinkAboutCounty of Midland - Public Financial ReportFiscal Year Ending December 31, 2020
Popular Annual
Financial Report
August 16, 2021
To the Citizens of the County of Midland:
I am pleased to present the County's Financial
Summary for the fiscal year 2020. This
document, more commonly known as a Popular
Annaul Financial Report (PAFR), is the County's second publication
intended to enhance your understanding of county government and how
it utilizes your tax dollars. Midland County has a solid reputation for fiscal
excellence as demonstrated by our 2020 AA bond rating by Standard &
Poor's (S&P).
Each year, the County publishes its audit, also called the Comprehensive
Annual Financial Report (AFR). Much of this information is technical and
complex, resulting in a document that is not very user-friendly for the
average person. Comprised of 234 pages, the AFR consists of detailed
financial statements, note disclosures, supplemental schedules, and
statistical tables, all of which are prepared in accordance with Generally
Accepted Accounting Principles (GAAP) and the standards and guidelines
set by the Governmental Accounting Standards Board. The AFR also
includes an independent auditor's report stating that the information
contained in the financial statements has been reviewed by the firm and
that, with reasonable assurances, the financial information is complete,
presented accurately, and in the correct format.
Counties historically have been the "least known" local government. In
contrast to cities, townships, and villages, we do not provide "daily
services" like utilities (water, sewer, etc.) or trash pickup. Rather, we are
"there when you need us" for things like immunizations from the Health
Department, passports from the County Clerk, dog licenses from the
Treasurer, or to pay a traffic ticket when necessary. The County also
offers many human service related programs, such as Veterans Services,
Community Corrections (including services for substance abuse), and
Drug Court programs. Property taxes, intergovernmental revenue for
operating grants and contributions, and charges for services finance
most of these activities.
We hope this document will empower you to better understand county
government and enhance--not replace--the accompanying AFR, which is
available for reference here.
Bridgette M. Gransden, CPA, CGFM
Administrator/Controller
Message From the
Administrator / Controller
COMMUNITY
VISION
Together Forward Bold:
An exceptional place
where everyone thrives
CONTENTS
Message from
Admin/Controller 1
Commissioners
& Elected Officials 2
Learn More About
County Government 3
History & Fun Facts 4
County Demographics 5
County Trends 6
General Fund Finance
Information 7
General Fund
Revenues 8
General Fund
Expenditures 9-10
Let's Talk Special
Millage 11
Other Monies Not In
the General Fund 12
A Look Ahead:
COVID 19 13
The Flood of 2020 14
Broadband 15
PAFR Award 2019 16
CONTACT THE
COUNTY
Board of Commissioners
989-832-6775
Administrator/Controller
989-832-6797
Finance Department
989-832-6786
Health Department
989-832-6380
Emergency Management
989-832-6750
Facilities Management
989-832-6790
Website:
www.co.midland.mi.us
FY20 Popular Annual Financial Report | 1
Elected Officials &
County Judges
Canine Advocates
Joey & Clyde
Board of
Commissioners
Responsibilities
-Demonstrate fiscal management
-Maintain credibility and build public
trust
-Assume leadership in the development
and improvement of county programs
and services
-Provide for the delivery of essential
services through cooperative
interaction with all county elected
officials, other units of government,
and community agencies
Objectives
-Develop a responsible annual budget
-Continue the pursuit of maintaining
and increasing employment
opportunities in the County and County
areas
-Encourage citizen participation in
county government
Mission
Perform and abide by the duty to protect the
health, welfare, and safety of community
residents and employees
FY20 Popular Annual Financial Report | 2
Scott Stephenson
Sheriff
J. Dee Brooks
Prosecuting Attorney
Douglas Enos
Drain Commissioner
Julie K. Atkinson
Register of Deeds
Catherine L. Lunsford
Treasurer
Ann Manary
Clerk
Judge Michael Carpenter
75th District Court
Judge Dorene S. Allen
Probate & 42nd Circuit Court
Judge Stephen P. Carras
42nd Circuit Court
Judge Michael J. Beale
42nd Circuit Court
Learn More About County Government
As the County consists of all three
branches of government, there is a diverse
menu of programs offered to the citizens.
The Judicial branch consists of three
separate courts, the Legislative branch
includes the Board of Commissioners, and
the Executive branch consists of the
various countywide elected officials and
the County Administrator/Controller.
The Administrator/Controller has oversight
of internal service functions (Finance,
Facilities, Information Technology, GIS, and
Human Resources), some mandated
departments (Public Health and
Equalization), and other special programs
that enhance the quality of life for the
community (Mosquito Control, Parks and
Recreation, Emergency Management, and
Public Guardianships).
County Departments &
Employment Demographics
County Government vs.
City Government
-Serves as an administrative division
of the State of Michigan
-Serves to implement / refine state
law and policy
-About 70 percent of its services are
mandated by state law
-Its structure consists of a County
Board/Controller form of
government
-The elected officials are
autonomous
-The Board sets all budgets
County of Midland
-Serves as a municipal corporation
-Serves to produce and implement
local laws and public policy (within
state laws of Michigan)
-Their services are allowed by
Charter
-Their structure consists of a Council
Manager form of government
-They have greater
decision-making authority
-All of the departments report
to the City Manager
City of Midland
FY20 Popular Annual Financial Report | 3
245
6
28
Countywide Elected Officials
Full-Time Employees
Seasonal Employees
Judges
Part-Time Employees96
4
History & Fun Facts
Midland County was established in 1850 for
its distinct location and remarkable beauty.
Its geography is defined by its location at
the heart of Michigan and the Great Lakes
Bay Region. In 1855, the County elected its
first officers: a Sheriff, Register of Deeds,
Treasurer, Prosecutor, Surveyor, and
Probate Judge. A year later in 1856, the
County build its first courthouse.
Until 1970, a Board of Supervisors (one
from each township) operated the County.
In 1970, the State of Michigan declared that
counties would have elected Commissioner
Districts that are near equal in population.
The County is also particularly interesting
because half the population resides in the
City of Midland. The other half of the
population is split between the City of
Coleman, the Village of Sanford, and the
County's 16 townships.
Five Fun Facts to Know
2. Midland is home to the Charles W. Howard Santa Claus School.
Founded in 1937, it is the oldest and longest running Santa school in
the world.
3. Midland County is home to over approximately 88,000 acres (187
sq. miles) of farmland.
4. Midland County is home to the longest canopy walk in the United
States.
5. Midland County's seven parks cover a span of 1,130 acres of land.
1. Midland County is one of two counties in the State of Michigan that still operates an
infirmary (Pinecrest Farms), Monroe County being the other.
The History Buff
FY20 Popular Annual Financial Report | 4
County Demographics
Top Ten Employers of 2020
Rank Employer Employees
1 MidMichigan Health 4,514
2 Dow Inc.4,000
3 Midland Public Schools 1,039
4 Corteva Agriscience 800
5 DuPont 700
6 Greater Midland Community
Centers
564
7 City of Midland 467
8 Three Rivers Corporation 396
9 Walmart 351
10 County of Midland 350
Demographics & Financial Facts
Villages 1
Cities 2
Townships 16
Population 83,156
School Enrollment 11,991
Unemployment Rate 5.9%
Median Household $62,625
Median Property Value $141,700
Per Capita Personal $55,972
Personal Income (2019)$4.654 billion
FY20 Popular Annual Financial Report | 5
County Trends
According to the U.S. Census Bureau, the County's estimated population has been dropping
since 2011. However, there is typically a population spike the year after an annual census.
The County expects to have final census data by the end of 2021.
The County keeps a vigilant eye on its economic prosperity. Although the population has
decreased, the amount of income per person in the community has been on the rise until
2019. This was likely due to the reorganization of our largest local industrial corporation.
Per Capita Personal Income
Population
FY20 Popular Annual Financial Report | 6
General Fund Information
Balance Sheet
(December 31, 2020)
Assets
Cash & investment pool
Receivables:
Accounts
Current taxes
Interest
Due from other
governments
Due from other funds
Prepaids
Long-term advances to
other funds
Long-term advances to
component units
Total Assets
Liabilities
Accounts payable
Accrued wages
Deposits payable
Court bond & restitution
payable
Unearned revenue
Total Liability
Deferred Inflows of
Resources (DIR)
Unavailable revenue
(property taxes)
Total DIR
Fund Balances
Non-spendable
Assigned
Unassigned
Total Fund Balances
Total Liabilities, DIR, &
Fund Balances
General
$9,880,338
797,505
733,409
26,075
668,747
65,957
242,262
200,000
445,089
$13,059,382
$346,568
940,185
82,218
463,313
5,072
$1,837,356
$465,085
$465,085
$887,351
1,911,674
7,957,916
$10,756,941
$13,059,382
A county's balance sheet is a
statement of the assets, liabilities,
and net worth of government at a
point in time.
Assets are a measure of how much
money a county has in the bank, as
well as its receivables, equipment,
and property.
Liabilities are a measure of debt, or
monies that a county owes to
different entities.
Deferred Resources are county
assets that are unavailable until
future years.
Fund Balance is comparable to an
individual's savings account.
Although the County faced many financial hardships in 2020, the overall net position was
favorable due to an increase in federal and state grants. The ending fund balance in 2020
increased by nearly $57,000.
FY20 Popular Annual Financial Report | 7
General Fund Revenues
The General Fund is the County's primary operating fund which supports services
mandated by the State of Michigan. The County's General Fund tax revenues consist of
property taxes, which, when paid by residents, allow Midland County to fulfill its
obligations. The County's intergovernmental revenues are monies collected by the State
of Michigan and remitted to the County. The total General Fund Revenue for Fiscal Year
2020 was $31,395,719.
Government Revenue by Source
Statement of General Revenues
(December 31, 2020)
Revenues
Taxes
Intergovernmental (IG)
Charges for services
Licenses & permits
Rental
Interest earnings
Miscellaneous
Total Revenues
General
$17,025,279
7,471,588
5,616,029
201,019
16,573
139,828
925,403
$31,395,719
The Pie Chart
Pie charts are great tools to display parts of a whole. This pie chart, for example, displays
each of the County's general fund sources as a percentage of the overall revenue. Each
percentage is rounded to the nearest whole number, with the "Grouped" category
consisting of sources that make up less than 1% of the general fund: licenses & permits,
rentals, and interest earnings, respectively.
Revenues
Taxes
Intergovernmental (IG)
Charges for services
Licenses & permits
Rental
Interest earnings
Miscellaneous
Total Revenues
Three Year Statement of General Fund Revenues
2018 Actual
$16,363,937
4,990,663
6,556,823
204,829
11,328
199,276
694,818
$29,021,674
2019 Actual
$16,853,196
6,043,977
6,540,530
206,065
15,333
293,042
812,406
$30,764,549
2020 Actual
$17,025,279
7,471,588
5,616,029
201,019
16,573
139,828
925,403
$31,395,719
FY20 Popular Annual Financial Report | 8
9
General Fund Expenditures
Government Expenditures by Type
Total General Fund Expenditures for Fiscal Year 2020 were $27,428,341. The General
Government expenditure category had the largest change from the prior year with an
increase of over $700,000, which was primarily due to costs related to COVID-19 and
response to the flooding and dam failures of May 2020.
Statement of General Fund Expenditures
(December 31, 2020)
Expenditures
General government
Legislative
Judicial
Law enforcement &
corrections
Emergency services &
public safety
Public works
Health & welfare
Culture & recreation
Other agencies
Debt Services:
Principal
Interest charges
Total Expenditures
General
$8,652,571
293,976
4,482,529
10,060,248
446,191
897
233,530
738,461
691,175
1,470,000
358,763
$27,428,341
Like the general revenues model,
the pie chart above displays each
of the County's general fund
expenditures as a percentage of
the overall revenue. Each
percentage is rounded to the
nearest whole number, with the
"Grouped" category consisting of
sources that make up less than
1% of the general fund: public
works and health & welfare,
respectively.
The Double Pie Chart
FY20 Popular Annual Financial Report | 9
General Fund Expenditures Continued
Required vs. Non-Required Services
Over 70 percent of General Fund dollars support programs that are mandated by the
State of Michigan through Constitution, statute, or contract. The remaining 30 percent of
General Fund Revenues are allocated to other services not required by the State.
Expenditures
General government
Legislative
Judicial
Law enforcement &
corrections
Emergency services &
public safety
Public works
Health & welfare
Culture & recreation
Planning & development
Contribution to other post-
employment benefits trust
Other agencies
Debt Services:
Principal
Interest charges
Total Expenditures
2018 Actual
$7,291,428
288,951
4,377,217
10,066,419
227,043
916
225,116
776,576
411
1,000,000
691,267
1,465,000
395,388
$26,805,732
Required (70%)
-Board of Commissioners
-Administrator/Controller
-Courts
-Treasurer
-Clerk
-Register of Deeds
-Health Department
-Sheriff
-Jail Services
-Drain Commissioner
-Emergency Management
-Prosecuting Attorney
-Equalization
Non-Required (30%)
-Facilities Management
-Housing
-Planning
-Finance
-Road Patrol
-Veterans Services
-Human Resources
-MSU Extension
-Juvenile Care Center
-Community Corrections
-Geographic Information Systems
-Public Guardian
-Pinecrest Farms
-Parks & Recreation
2019 Actual
$7,942,347
310,777
4,475,452
9,977,383
247,530
794
226,395
862,928
16,800
694,271
1,465,000
379,273
$26,598,950
2020 Actual
$8,652,571
293,976
4,482,529
10,060,248
446,191
897
233,530
738,461
691,175
1,470,000
358,763
$27,428,341
Three Year Statement of General Fund Expenditures
FY20 Popular Annual Financial Report | 10
Let's Talk Special Millage
Property Taxes by Category
Special millages are extra voted millages that the residents of Midland County have
approved to fund programs such as Ambulance Service and Mosquito Control. The total
revenue generated by all millages was $34,962,625 in Fiscal Year 2020, of which
$18,542,111 were from special millages.
Illustrated below is a sample tax statement for a resident of Midland County whose fair
market home value is $200,000. For example, this homeowner will pay $40 for Mosquito
Control services.
Millage
General operating
Ambulance service
Mosquito control
911 central dispatch
Gypsy moth
Seniors
Road
ETC
Pinecrest
School resource officer
Total Revenues
Tax Dollars
$489.55
55
40
70
0
85
200
25
37
40
$1,041.55
Property Tax Statement
(December 31, 2020)
Millage
General operating
Ambulance service
Mosquito control
911 central dispatch
Gypsy moth
Seniors
Road
ETC
Pinecrest
School resource officer
Total Revenues
Three Year Statement of Special Property Tax Mills
Total
Revenue
$16,127,681
1,815,345
1,386,264
2,338,664
668,190
2,804,525
6,681,897
825,157
1,221,232
$33,868,955
2017 Tax Year/
2018 Budget Year
Millage
Rate
4.8955
0.5500
0.4200
0.7000
0.2000
0.8500
2.0000
0.2500
0.3700
0.0000
10.2355
2018 Tax Year/
2019 Budget Year
2019 Tax Year/
2020 Budget Year
Millage
Rate
4.8955
0.5500
0.4200
0.7000
0.0000
0.8500
2.0000
0.2500
0.3700
0.0000
10.0355
Total
Revenue
$16,423,113
1,845,462
1,409,262
2,380,907
2,849,782
6,802,593
838,846
1,241,493
$33,791,458
Millage
Rate
4.8955
0.5500
0.4000
0.7000
0.0000
0.8500
2.0000
0.2500
0.3700
0.4000
10.4155
Total
Revenue
$16,420,514
1,847,565
1,342,803
2,351,446
2,855,327
6,718,418
839,961
1,242,907
1,343,684
$34,962,625
To calculate revenue, divide the fair market value by two to determine estimated taxable value. Then divide
estimated taxable value by 1,000 and multiply by the millage rate.
The gypsy moth millage was not levied this year and is
thus nor incorporated into the doughnut chart.
FY20 Popular Annual Financial Report | 11
Other Governmental Monies
Special Revenues, Capital Projects, & Debt Service
Special revenues are non-general funds established by the County to collect money that
must be used for a specific project. Special revenue funds provide an extra level of
accountability and transparency assuring taxpayers their tax dollars will go toward an
intended purpose.
Capital Project funds account for financial resources related to the construction of major
capital projects or facilities. Recent capital projects include the Courthouse Renovation
and construction of the Pinecrest facility. Debt service funds are monies the County uses
to pay back long-term debt issued in order to finance specific government projects,
including both the principal and interest amounts paid out.
Revenues, Expenditures, & Change in Fund Balance
(December 31, 2020)
Revenues
Taxes
Intergovernmental revenue
Charges for services
Licenses & permits
Interest earnings
Donations
Miscellaneous
Total Revenues
Expenditures
Current
General government
Judicial
Law enforcement & corrections
Health & welfare
Planning & development
Other agencies
Capital outlay
Debt Service
Principal
Interest charges
Total Expenditures
Other Finance Sources
Transfers in
Transfers out
Net Change in Balance
Fund Balance
Beginning of year
End of year
Special Revenue
Funds
$12,046,094
11,169,930
1,771,963
294,536
74,434
661,957
$26,018,914
$73,770
1,397,882
1,813,004
15,054,639
280,999
9,730,316
55,380
$28,405,990
$3,516,965
484,148
$645,741
$7,689,605
$8,335,346
Capital Project
Funds
$65,290
26,467
812,479
$904,236
114,510
5,075
830,709
$950,294
$1,362,933
11,479
$1,305,396
$5,032,843
$6,338,239
Debt Service
Funds
$41
$41
$300,000
74,148
$374,148
$374,148
$41
$17,160
$17,201
FY20 Popular Annual Financial Report | 12
A Look Ahead
As the world continues to reel from the
COVID-19 global pandemic the County is still
making adjustments in program offerings
and how services are delivered to the
public. The pandemic challenged the way
we think. We had to be more agile and
explore how we did things and why. Many of
our new service delivery methods are more
efficient, and as a result, the County has
chosen to maintain these into the future.
In 2020, the County's financial forecast was
facing negative trends due to the closure of
our buildings to the public. Offices that
generate high revenue from traffic fines,
boarding inmates, and various charges for
services saw very little activity. The infusion
of CARES Act money from the federal and
state governments helped offset those
losses, fortunately allowing the County to
end the year in a solid position. In 2021, the
County still lags in revenue generating
activity in several departments, causing a
reduction in the estimated collections for
the year.
The business community continues to
maintain steady operations despite the
challenges related to COVID-19. Many of
those businesses that remain, however, are
struggling to fill vacant positions, and some
have reduced hours as a way of managing
this issue. Although the reopening of many
organizations has helped to reduce the
trend, unemployment remains higher than
normal.
In spite of the ever-changing environment,
we maintain a positive outlook about the
future and applaud the resilience of this
community.
FY20 Popular Annual Financial Report | 13
The Lasting Impact of COVID-19
A Look Ahead
After the historic flooding and dam failures
in May of 2020, Midland and Gladwin
Counties, in conjunction with the Four Lakes
Task Force, took action to condemn
(imminent domain) all four dams and
bottomlands owned by Boyce Hydro. In
December of 2020, the courts settled the
agreement and the Counties took ownership
of the properties. Midland County would
now own the Sanford Dam and the
surrounding property, including the
bottomlands, that had been privately held
for nearly 100 years.
As the County's designated authority, Four
Lakes Task Force (FLTF) has continued to
manage all projects related to the dams,
including debris cleanup, soil erosion
control, and weed control on the
bottomlands, to name a few.
FY20 Popular Annual Financial Report | 14
FLTF President, Dave Kepler, has worked
diligently with legislators at both the state
and federal level to gain financial support in
an effort to help restore the dams. The goal
is to rebuild the dams with modern safety
controls that will avoid failures like those in
2020. Prior to rebuilding, however, various
studies to determine capacity and hydrology
will be completed and shared with the
counties and respective communities.
The County, partnering with the Midland
Business Alliance Infrastructure Committee,
is also engaging the United States Army
Corps of Engineers to assist with studies
related to the flood paths of the waterways
which effect Midland County. The County
hopes for this study to be underway by
2022.
Currently, the County has made progress on
several of its restoration projects on facilities
that were damaged by the flood. The photos
below show the Courthouse parking lot after
the flood (left) and the final lot once
restored (right), respectively.
Midland County's Long Term Investment:
Flood Recovery, Dam Ownership, & the Four Lakes Task Force
A Look Ahead
A positive to come from COVID-19 was the
light shone on the need for high speed
internet access (broadband) in people's
homes. The thought that broadband was a
luxury became a thing of the past as the
County realized this "utility" would be what
powered remote work, allowed businesses
to operate from home, hosted medical visits
online, and converted kitchen tables into
classrooms. Unfortunately, this "utility" is
not easily accessible or affordable for
everyone, especially in rural areas of
Midland County.
Thanks to the financial support from the
Midland Area Community Foundation and
the Midland Business Alliance, the County
secured a study through Connected Nation
Michigan that included survey data on
connectivity from residents, businesses,
students, nonprofits, seniors, and vendors.
The study revealed what the County already
expected: there is room for progress.
As this was a phenomenon happening
across the country, the County began seeing
various buckets of grant dollars available to
help fund studies, planning and
infrastructure related to expanding
broadband access. Midland County, the
Midland Business Alliance, and the Midland
Area Community Foundation have formed a
committee to determine next steps, garner
funding, and keep moving these projects
forward for the betterment of residents.
FY20 Popular Annual Financial Report | 15
Midland Broadband Committee:
High Speed Internet is No Longer a Luxury
FY20 Popular Annual Financial Report | 16