Popular Annual Financial Report Ended December 31, 2013 Mahoning County,

Michael V. Sciortino, M.P.A., J.D.

Mahoning County Auditor

Table of Contents

Page

To the Citizens of Mahoning County ...... 2

Mahoning County ...... 3

County Auditor Organizational Chart ...... 4

Auditor’s Office ...... 5

Industry, Commerce and Economic Development ...... 7

Mahoning County – A great place to live, work and play! ...... 10

Elected Officials ...... 14

Economic Indicators ...... 15

Financial Statement Activity ...... 17

Revenues and Expenses ...... 19

Financial Position Statement ...... 21

Revenue Collections and Investments ...... 22

Summary of Debt Instruments ...... 23

- 1 -

Mahoning County

Mahoning County (The County), created in 1846, is located in , on the southern border of Trumbull County, the eastern borders of Summit and Stark Counties, the northern border of Columbiana County and the western border of the State of Pennsylvania. The County is approximately 78 miles southeast of Cleveland and 62 miles northwest of Pittsburgh. The County encompasses 14 townships and 14 cities and villages, the largest of which is the City of Youngstown, the County seat. The County is in the Youngstown-Warren Ohio Metropolitan Statistical Area (MSA) comprised of Columbiana, Mahoning and Trumbull Counties, the 54th largest of 264 MSA’s in the United States.

The County operates as a political subdivision of the State of Ohio exercising only those powers conferred by the Ohio Legislature. The County voters elect a total of eleven legislative and administrative County Officials. The three member Board of Commissioners is the legislative and executive body of the County. The County Auditor is the chief fiscal officer and tax assessor while the County Treasurer serves as the custodian of all County funds and as tax collector. In addition, there are six other elected administrative officials provided for by Ohio law, which include: the Clerk of Courts, Recorder, Coroner, Engineer, Prosecuting Attorney and Sheriff. The judicial branch of the County includes five Common Pleas Court Judges, four County (area) Judges, one Domestic Relations Judge, one Juvenile Court Judge and one Probation Judge. Although these elected officials manage the internal operations of their respective departments, the County Commissioners authorize expenditures as well as serve as the budget and taxing authority, contracting body, and the chief administrators of public services for the County, including each of these departments.

The Government Finance Officers Association of the United States and Canada (GFOA) has given a Certificate of Achievement for Excellence in Financial Reporting for its CAFR presented for the year ended December 31, 2013. In order to be awarded a Certificate of Achievement, the County had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements.

- 3 - County $XGLWRUOrganizational Chart

&RXQW\$XGLWRU 0LFKDHO96FLRUWLQR

6SHF$VVW $WWRUQH\ *HRUJH%ULDFK

&KLHI'HSXW\ &DURO0F)DOO

:HLJKWV 'LUHFWRURI 0HDVXUHV $FFRXQWLQJ 3D\UROO 'LUHFWRURI 0DUWLQ&HJDQ 6WDF\0DUOLQJ 6XSHUYLVRU %XGJHW$QDO\VW *,6%RDUG 'DWD%RDUG 7D[DWLRQ 7RP/\GHQ $QWKRQ\ &KHUL'RQRIULR 0DJQHWWD 'LUHFWRURI,7 -DFRE:LOOLDPV $FFWV3D\DEOH 5($FFRXQWLQJ &OHUN,,, *,60DQDJHU 0DQDJHU 'LQD'RQDWHOOL 5LFKDUG%HOO %RE0DFDOD &KLHI$SSUDLVHU 5REHUW5LPHGLR

$FFRXQWV 6\VWHPV *,62IILFH 5HFHLYDEOH 0XQLV $GPLQLVWUDWRU &RRUGLQDWRU *,6 &OHUN $QDO\VW 7LPRWK\ -RKQ 7HFKQLFLDQ, 5(6XSHUYLVRU &DGDVWUDO 6XH:DJQHU .HYLQ 5HLJUXW 1HZKDUG -HIIUH\ &DURO:LOOLDPV $WWULEXWH %URJOH\ 0XUSK\ 6SHFLDOLVW, $SSUDLVHU -XOLH 2IILFH *,62IILFH /$1 %DUE 5RELQVRQ /LFHQVLQJ $GPQ $SSOLFDWLRQ 7HFKQLFLDQ,, %DOHVWULQR &RRUGLQDWRU 3XEOLF,QIR $QDO\VW,, %ULDQ:ULJKW 6XSSRUW 5(7UDQVIHU /LQGD2¶%ULHQ 2IILFHU &DWK\/HZLV ,QJULG&DVVLG\ 6SHFLDOLVW $OLVD 6DQG\ &$0$6SHF 3D\UROO&OHUN,,, $NXV]HZVNL 0LWRYLFK +HDWKHU 2SHUDWLRQ $FFRXQWV 7RP+HUPDQ %HDP 'H-HVXV /$1 6SHFLDOLVW 3D\DEOH&OHUN 5( 7HFKQLFLDQ, *HRUJH 5($EVWUDFW 'RQQD$XULOLR $GPLQLVWUDWLYH &KDUOLH +XQWHU 6SHFLDOLVW &OHUN 6LPRQV -DQHW 5(&OHUN /LQGD 6]HQERUQ $P\0DUVLOLR %HVKDUD ,77UDLQHU +HOS'HVN 7HFKQLFLDQ 0LFKDHO 5RFKHOOH $GDPV +RPHVWHDG %DKQ\ 5(&OHUN 6SHFLDOLVW /LQGD7XIDUR 0DU\7DWH

- 4 - Auditor’s Office

Fiscal Services (Finance and Payroll)

The Mahoning County Auditor is the chief fiscal officer for the County. It is the auditor’s responsibility to perform the following functions: • Account for revenues received each year by the County • Issue warrants (checks) in payment of all County obligations, including the distribution of tax dollars to the townships, villages, cities, school districts and library systems as well as other County agencies. • Serve as the paymaster for all County employees • Administer and distribute motor vehicle license fees, gasoline taxes, estate taxes, fines and local government funds, in addition to real estate, personal property and manufactured home taxes. • As required by law, prepare and produce the County’s annual financial report. Mahoning County prepares a Comprehensive Annual Financial Report (CAFR) and a Popular Annual Financial Report (PAFR). The County has been awarded the Certificate of Achievement for Excellence in Financial Reporting.

Real Estate Taxes and Rates

Under Ohio law, the county auditor cannot raise or lower property taxes. Tax rates are determined by the budgetary requests of each governmental unit, as authorized by vote of the people and are computed in strict accordance with procedures required by the Division of Tax Equalization, Ohio Department of Taxation. Annually, the auditor prepares the general tax list. Your tax bill is based on the tax rate multiplied by your valuation on this tax list. This is your proportional share of the cost of operating your local government including cities, villages, townships, schools and the County. Ohio law limits the amount of taxation without vote of the people to what is known as the “10 mill limitation” ($10.00 per $1,000 of assessed valuation). County residents must vote any additional real estate taxes for any purpose. Your “tax rate” is an accumulation of all these levies and bond issues.

Real Estate Appraisal and Assessment

Mahoning County has more than 165,000 separate parcels of real estate property. It is the duty of the auditor to see that every parcel of land and buildings thereon are fairly and uniformly appraised and assessed for tax purposes. Ohio law mandates a general reappraisal every six years with an update at the three year midpoint. The office maintains a detailed record of the appraisal on each parcel in the County. These records are open for public inspection. For taxation purposes, owners are assessed at 35 percent of fair market value.

Real Estate Conveyance and CAUV

This department is in charge of transferring all real estate that changes ownership in the County and collecting fees on this activity. They maintain all ownership records, acreage changes, real estate splits and provide information for maintaining tax plat maps. The auditor is also in charge of administering the Current Agricultural Use Value (CAUV) program that allows farmland to be taxed at its value for that use. Agricultural districts and forest certification are other responsibilities of this department.

- 5 - Auditor’s Office

Homestead Exemption and Property Tax Rollback

The Property Tax Rollback and Homestead Exemptions are forms of property tax relief. Every residential and agricultural property taxpayer receives the 10 percent rollback. Individuals 65 years and older and the permanently disabled who meet specific income limitations are eligible to receive Homestead Exemptions (reduction in real estate taxes). The auditor’s office also administers the 2.5 percent Property Tax Reduction Law passed in 1979 for residential and agricultural property owners.

Licensing

The auditor’s office is the focal point in the County for issuance of licenses for dogs, vendors and cigarette sales. Mahoning County annually issues more than 30,000 dog licenses. Vendor licenses authorize businesses to sell tangible property to the public and collect sales tax, a part of which is returned for use at the local level.

Data Processing (IT)

The Data Processing (I.T.) Department provides and maintains a reliable network infrastructure and has the knowledgeable staff necessary to support the information systems critical to the County's day to day operations. Additionally, the Data Processing Department provides proactive, cost effective solutions for County workflow processes and network environment. All county technology requests/purchases must be approved by the I.T Director, and if over $1,000, must also be approved by the Data Board. Some specific functions of data processing are: • Support and maintain OS software for 48 servers and 1,025 workstations, including application set. • Support & maintain SQL database systems for Courts, Real Estate, GIS, Financials and HR/Payroll . • Provide internet services, including e-mail, secure internet browsing, & Intranet services. • Train employees by offering year round classes on critical county software applications. • Support and maintain WAN & LAN, integrating Data and Voice technologies, as well as supporting all telephony services.

Sales Tax

The County has levied a 1 percent sales tax which is collected by the State of Ohio and remitted to the County on a monthly basis. The Board of County Commissioners enacted this tax with two separate ½percent taxes under the authority of the Ohio Revised Code.

In May 2014, the voters failed to pass the renewal of the May 2010 ½ percent sales tax levy by a 50.8 percent vote. The commissioners have resolute to place a ¾ percent sales tax on the November 2014 ballot. The County would have one more pass in the May 2015 election to have the sales tax approved. In 2007, the Commissioners passed a resolution placing a continuous ½ percent sales tax on the May ballot. The voters passed this continuous sales tax with a 67 percent vote.

The 1 percent sales tax currently generates approximately $32 million in general fund revenues. The continuous 1/5 percent produces $16 million. The ¾ percent sales tax, should it pass, would generate $23.2 million. In total, that would bring approximately $38.7 million to the County’s general fund. Should that attempt fail, the County would be facing significant difficulties in 2015 and beyond.

- 6 - Industry, Commerce and Economic Development

Employment in the County and Metropolitan Statistical Area (MSA) is primarily in the manufacturing sector and within that sector largely in the automobile and steel industries. Average employment in the County rose from 98,250 in 2009 to 102,900 in 2013. The Ohio Bureau of Employment Services Labor Market Information Division report for the 2010 time period reflects that most job growth will be in professional specialty occupations and service producing industries.

Mahoning County has recovered from the economic dislocation that accompanied the downsizing of its steel industry in the late 1970’s and early 1980’s, and achieved new records for economic activity. While the County’s economy was once dependent on manufacturing, it is now more diversified and able to retain and attract jobs along a broad spectrum on the economy. In 2010, among the fastest growing occupations were: trade, transportation and utilities (21 percent), sales and office (20 percent), and educational and health services (20 percent). The most improved growing industry was professional and business services (22 percent). Of the people employed in the County at that time, 83 percent were private wage and salary workers; 11 percent were federal, state, or local government workers; and 5 percent were self-employed. Since tax year 1999, the total assessed value of real property has increased by 24 percent. A number of large industry expansion and attraction projects in the region have fed this economic growth.

The economic engine of the Youngstown-Warren and nearby Western Pennsylvania region has been reviving in recent years. Since 2008, economic development project announcements have or will create about $5 billion in investment, 5,654 new jobs and 12,574 retained jobs. To promote the attraction and expansion of commercial and industrial projects, the County has taken advantage of State of Ohio programs such as the Enterprise Zone Programs which permits ad valorem property tax abatements for new real property and Community Reinvestment Area (CRA) abatements as well. The County presently has five Enterprise Zone and two CRA tax abatement zones in place. The Enterprise Zones cover all or part of the City of Youngstown, Campbell-Struthers-Lowellville-Poland, Austintown-Jackson Townships, and the Village of Sebring. The CRA’s cover all or part of Jackson Township and the Village of Sebring.

Siemens Corporation, a global powerhouse in electronics and electrical engineering, is providing an in-kind grant of $440 million in state-of-the-art product lifecycle management (PLM) software and training to the College of Science, Technology, Engineering and Mathematics at Youngstown State University. This grant is a core component in the continuing efforts of the new National Additive Manufacturing Innovation Institute (NAMII) in to prepare a modern workforce in the Cleveland- Pittsburgh TechBelt. The software is designed to educate students and prepare them for careers in fields ranging from robotics design to computer-aided engineering to additive manufacturing in a multitude of industries around the world including aerospace, automotive, defense, energy, high-tech electronics, machinery and oil and gas. Eric Speigel, President and CEO of Siemens Corporation, is a native and graduated from Poland Seminary High School.

- 7 - Industry, Commerce and Economic Development

Mahoning County is also experiencing a Utica and Marcellus Shale business boom.

＊ Blue Racer Midstream LLC, a $1.5 billion joint venture between Dominion and Caiman Energy II, plans to develop three new processing plants in Ohio, one slated near Petersburg in southeastern Mahoning County. ＊ BP America, on December 17, 2012, opened its 43,000 square foot operations center in North Jackson for its Utica shale development in eastern Ohio. ＊ Valerus is partnering with Brilex Industries of Youngstown to build equipment for the oil and gas industry, creating 30 jobs. ＊ NiSource will spend $300 million to build a pipeline for the Utica shale play from Mahoning County to Mercer County, PA and locate an oil and gas processing plant in eastern Mahoning County. ＊ V & M Star produced its first pipe in October 2012 at its new one million square foot steel tubular products mill in Youngstown that cost about $1.2 billion. The facility makes steel pipe for the oil and gas industry and has created 350 jobs in advanced manufacturing. ＊ V & M’s sister company, VAM USA, LLC, a manufacturer of premium pipe connections, is locating a 200,000 square foot finishing plant in Youngstown at a cost of $57 million. The project will create 100 jobs. ＊ Exterran will begin production in 2013 at its new $13 million plant in Youngstown that will produce equipment for the oil and gas industry. The new facility will employ more than 100 people. ＊ Youngstown State University has created the Natural Gas and Water Resources Institute to better prepare its students for jobs related to the Utica Shale.

The following are additional projects in the region announced since 2013:

＊ Extrudex Aluminum started to expand its North Jackson facility, adding 80,000 square- feet to its existing area and was completed in 2012. It will help add another extrusion press line to operations. This will add an addition 25 new jobs to the already 120 employed. The upgrades will cost $14 million.

＊ DE-CAL Inc., a Michigan-based provider of mechanical contracting and fabrication services, opened a regional office in Youngstown. The company is currently installing piping systems for the V&M Star pine mill. With its $1.3 million investment in renovations to an existing building, they plan to create 40 new jobs but with additional fieldwork job opportunities that could rise to 100 jobs.

＊ Roth Bros is investing $1.2 million to renovate its Austintown facility and for the purchase of machinery and equipment. The expansion will help the company, a leading provider of hvac, roofing and building facility services, meet commitments to current and new customers. They also plan to add an addition 55 new employees over the next three years.

- 8 - Industry, Commerce and Economic Development

＊ The Youngstown Business Incubator was chosen as the site for the National Network for Manufacturing Initiative's Pilot Institute for Manufacturing Innovation. YSU was among nine research universities involved in the project along with 40 companies, five community colleges and 11 non-profit organizations. YSU received $2.13M to fund its worth with NAMII and estimated 500 jobs will be created as a result of the funding commitment. Mahoning Valley's submission beat out a dozen others-including proposals linked to other research universities such as MIT and Georgia Tech. This is an $85 million project that officials say will spur a revolution in American manufacturing. Another indication of Youngstown State University's emergence as an important urban research university, stated YSU officials.

＊ Humility of Mary Health Partners announced expansion plans for its three Mahoning Valley hospitals.

＊ Davis-Becker announced it will build a $1.7M 12,000 square-foot funeral home in Boardman.

＊ Construction began on the 6,650 square-foot library in Jackson-Milton at a cost of $1.712 million.

＊ Erie Terminal Place was completed in downtown Youngstown. It is a 40-unit apartment building with one to three furnished and unfurnished apartments.

＊ The Youngstown Neighborhood Development Corp announced the receipt of a $788,673 federal grant to help enhance a 1.7-acre working urban farm and training center on the South Side of Youngstown and launch a kitchen incubator on the North Side of Youngstown. The remainder of the grant will be directed to Common Wealth Inc.'s Kitchen Incubator near the campus of Youngstown State University. It provides space where local food entrepreneurs can launch a new venture or expand their businesses.

＊ Castlo announced that it is using a $3.5 million grant to prepare about 60 acres for future development at the 120-acre Struthers industrial park. The vast majority of interest in the site is from the oil and gas industry.

＊ Youngstown State University broke ground for a Veteran’s Resource Center. The $1.25 million project will be a two story building with over 6,000 square feet of space dedicated to advance and improve the well-being of our area veterans. The center will be entirely funded through donations.

＊ Commercial Metal Forming received a 75 percent 10 year tax abatement from the City of Youngstown for its $5 million project on Logan Avenue. The company plans to spend $2 million on a new 10,000 square-foot office building and $3 million for new equipment and training. The company produces tank heads, tank accessories and custom stampings for the oil and gas industry and employs 124 workers in the Youngstown facility.

- 9 - Mahoning County …A great place to live, work and play!

Living in Mahoning County Mahoning County’s Cost of living is more than 14 percent less than the US average and according to Forbes, Youngstown, the County seat, is ranked the 4th best city to raise a family out of the 100 largest metro areas. The Youngstown Business Incubator (YBI) was named the 11th Best University Affiliated Business Incubator in the World by the 2013 Global Benchmark Report. The National Association of Home Builder’s 2012 Index ranked Youngstown as the 2nd most affordable city in the country to buy a home. Over 12,000 students attend Youngstown State University which offers over 100 undergraduate majors as well as 35 master’s programs, doctorates in educational leadership.

Culture Live theater and concerts take place year round at some of the most beautiful venues in the nation. Stambaugh Auditorium and the DeYor Performing Arts Center will bring you back to the architecture of a bygone era as they host many national theatre companies, ballet, opera and symphonies. The Covelli Center, on the other hand, is a state of the art facility that hosts concerts and shows by many of today’s top artists, acrobats, sports, monster trucks and more. Don’t forget the Youngstown Playhouse, Oakland Center for the Arts, Easy Street Productions, YSU Bliss Hall and the Victorian Players for great community theater and world class music!

Art The Butler Museum of American Art is the nation’s first museum dedicated solely to American art. OH Wow! Children’s Center for Science and Technology is every kid’s favorite with great events and hands on exhibits year round. Visitors can also stop at the McDonough Museum of Art at Youngstown State University.

- 10 - Mahoning County …A great place to live, work and play!

History The Mahoning Valley has a rich history of industry, arts, and beautiful mansions of times gone by. The Arms Family Museum is the mansion of Olive and Wilford Arms. Built in 1905, it houses a collection medieval relics and local history. The Youngstown Historical Center of Industry and Labor has exhibits of the robust steel history of the Mahoning Valley. Dedicated to the men and women who worked the mills, this museum is the perfect place to see Youngstown in its most lucrative era and learn how the people adjusted to industry changes and the shale boom ahead. The War Vets Museum, TP Auto Car Collection Museum, and the Mahoning Dispatch also memorialize the Valley’s diverse history.

Parks Mahoning County is also home to the 2nd largest metropolitan park in the country. Mill Creek MetroParks is over 4,400 acres of diverse lands that offers an 11 mile bike trail, a golf course, a 400 acre working farm, wildlife areas, tennis courts, fields, sled riding, concerts and even a horse park – literally something for everyone! Fellows Riverside Gardens is a 12 acre garden with an education and visitor’s center. The Rossi Auditorium at the Riverside Gardens is an elegant and sought after location for weddings and parties. Another jewel of Mill Creek Park is Lanterman’s Mill, which is a working mill, built in 1845 and powered by Lanterman’s Falls. County residents love to boat, waterski and fish at Lake Milton State Park and Berlin Reservoir. Nearly every township and city in the county has a park and holds family activities, concerts and festivals. Even dogs have two parks of their own in Mahoning County!

Golf Shhh… our golf courses are a best kept secret! Travelers from all over come to play the most beautiful courses and greenest fairways between Cleveland and Pittsburgh… at reasonable prices, too! Many local hotels and the Mahoning County Visitor’s Bureau offer golf packages for one or all of our courses. Choose from Mill Creek, Reserve Run, Kensington, Mahoning, Stambaugh, Pine Lake, Lake Club, Bedford Trails, Lakeside or Diamond Back.

- 11 - Mahoning County …A great place to live, work and play!

Family Fun Go carts, batting cages, movies, arcades, roller skating, bowling, and laser tag can provide months of entertainment for families of all ages and sizes. Ethnic festivals abound throughout the summer in Mahoning County. The Canfield Fairgrounds are home to the state’s largest county fair, the Scaregrounds Haunted House and Hayride, a world class AKC dog show and so much more.

Sports The Mahoning Valley is famous for its grass roots sports. From baseball to boxing, football to hockey, this town is where sports are grown! The Mahoning Valley Scrappers is an affiliate to the and has consistently produced star players now playing for teams like the A’s, the Indians and the Yankees. Located just a short trip north to Trumbull County you will find their awesome stadium with family events and prices that will remind you of the good ole days of America’s favorite past time! Youngstown Phantoms Hockey, producing winning players, calls the Covelli Center in downtown Youngstown their home rink. Locally owned gyms and training facilities have a history of Golden Gloves world title boxing, PGA golf greats, NCAA and NFL heroes and NASCAR racing legends. Soon, Austintown will be home to a thoroughbred race track and casino. Youngstown State University is home of the football and champion Penguins. And our high school sports are second to none!

Dining Whether it is fine dining, casual pub fare, pizza or fast food, Mahoning County has a choice for you. Throughout the County, you can find all the familiar chain restaurants, but the true gems of our valley are the local, one of a kind restaurants serving food you can’t find anywhere else. Asian, Mediterranean, French, Italian, Irish and Mexican are made locally and served with pride. Be sure to try our famous Pizza – only made here in the valley! White House Fruit Farm has homegrown produce and bakery that can’t be beat!

- 12 - Mahoning County …A great place to live, work and play!

Nightlife Unique spirits and live entertainment are never far away. You can find live bands, DJ clubs, sports bars, comedy shows, karaoke, bike nights and theme parties in any of our local hotspots. We have several fine wineries, too – Mastropietro, Luva Bella, Myrddin, Vino Novello and Vintage Estates to name a few. And soon, you will be able to try your luck at our own race track and casino!

Charity The Mahoning Valley is filled with charitable organizations and churches. Each township has organizations dedicated to the preservation of our community and world. Clubs such as Rotary International, Lions, Masons, Kiwanis, Eagles and Moose are active all throughout Mahoning County. Many religions are represented in our county as well and offer assistance to all. Charitable groups such as the Rescue Mission, Second Harvest Food Bank, St. Vincent DePaul and the Salvation Army help people in their times of need. Angels for Animals, Friends of Fido, Legacy Dog Rescue and New Lease on Life are just a few of the groups dedicated to helping the four legged residents of the valley. We definitely take care of our own!

Much More The Mahoning Valley economic community is actually part of three counties in Ohio and two in Pennsylvania. Visit Trumbull, Columbiana, Lawrence and Mercer Counties for the entire Mahoning Valley Experience. Within 20 minutes of travel time in any direction, you will find animal sanctuaries and petting zoos, hay rides, corn mazes, outlet shopping, fruit farms, spas and more. The Mahoning County Convention and Visitors Bureau’s website with everything you could ever want to know about Mahoning County! Visit www.youngstownlive.com for upcoming events, directions and your free visitor’s guide.

- 13 - Elected Officials

Board of County Commissioners

President ...... Carol Rimedio-Righetti Vice-President ...... Anthony Traficanti Commissioner ...... David Ditzler

Other Elected Officials

Auditor ...... Michael Sciortino

Clerk of Courts ...... Anthony Vivo. Jr.

Coroner ...... Dr. David Kennedy

Engineer ...... Patrick Ginnetti

Prosecutor ...... Paul Gains

Recorder ...... Noralynn Palermo

Sheriff ...... Jerold Greene

Treasurer ...... Daniel Yemma

Judges

Common Pleas Court ...... Honorable James Evans Honorable Lou D’Apolito Honorable John Durkin Honorable R. Scott Krichbaum Honorable Maureen Sweeney-Yanko

Common Pleas Court – Domestic Relations Division ...... Honorable Beth Smith

Common Pleas Court – Juvenile Division ...... Honorable Theresa Dellick

Common Pleas Court – Probate Division ...... Honorable Mark Belinky

Area Court No. 2 ...... Honorable Joseph Houser

Area Court No. 3 ...... Honorable Diane Vettori-Caraballo

Area Court No. 4 ...... Honorable David D’Apolito

Area Court No. 5 ...... Honorable Scott Hunter

- 14 - Economic Indicators

Population Change

2013 2010 2000 1990 1980 1970 1960 Year 1950 1940 1930 1920 1910 1900

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Population

Assessed Taxable Property Values

4.2

4.1

4.0

3.9

3.8

Dollars (Billions) 3.7

3.6 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Collection Year

- 15 - Economic Indicators

The Activity Statement reports the financial activities of the Mahoning County government as a whole. These activities are identified as either Governmental or Business-Type. Governmental Activities constitute the majority of the County’s operations and are financed primarily by operating grants, taxes, charges for services, capital grants and other intergovernmental revenues. Business-type activities, on the other hand, rely on user fees and other charges to wholly, or to a large extent, fund their operations.

Uses and Expenses are the monies spent to provide services to citizens:

Governmental Activities:

General Government Includes expenses incurred to operate the administrative offices of the Commissioners, Auditor, Treasurer, Prosecutor, Recorder, Department of Development, Information Services, Board of Elections, Maintenance Department and Records Center. This amount also includes the operating costs of the Mahoning County Courts Judicial System: Common Pleas, Clerk of Courts, County Court, Court of Appeals, Domestic Relations, Drug Court, Juvenile Court and Municipal Court.

Public Safety Includes the costs of the Adult Probation Department, Coroner, North East Ohio Community Alternative Program (NEOCAP), Juvenile Detention Center, Mahoning County Adult Justice Center, 911 Service, Emergency Management System and the Sheriff.

Public Works Expenses associated with maintaining roads, bridges and culverts and other community block grant programs.

Health Combined expenses for services to maintain public health including the County Board of Developmental Disabilities, Alcohol, Drug Addiction and Mental Health Board (ADAMH).

Human Services Expenses to provide various forms of services and assistance to individuals, children and families, including services provided or funded by the Senior Services Levy, Veterans Services Board, Children Services Board, Child Support Enforcement Agency, Elderly Affairs Agency and the Department of Job and Family Services.

Interest and Fiscal Charges The cost of debt financing for capital projects of the County.

Business-type Activities:

Business/Utility Service Operating expenses for the Department of Sanitary Engineers which supplies water and sewer to residents.

- 16 - Financial Statement Activity

Sources of Revenues are the monies received by the County from a variety of sources used to fund all services provided.

Charges for Services Monies received from departments and agencies for fees paid by the public.

Operating Grants and Contributions Monies to be used for restricted program operations and improvements.

Capital Grants and Contributions Monies to be used for capital acquisitions.

Taxes Revenue from sales tax, real estate tax, personal property tax and other smaller taxes.

Intergovernmental Revenues Revenue from grants and pass-through monies administered by the State of Ohio and Federal government.

Interest Monies earned through the County Treasurer’s investments of cash on hand not needed for current period services.

Governmental Activities Business-Type Activities RESOURCES RECEIVED 2013 2012 2013 2012 Program Revenues: Charges for Services $24,895,168 $23,214,626 $21,133,444 $21,083,978 Operating Grants and Contributions 61,410,982 72,408,390 0 0 Capital Grants and Contributions 2,505,708 6,399,688 933,776 1,021,992 General Revenues: Property Taxes 28,803,535 27,600,786 0 0 Sales Taxes 31,838,298 30,636,548 0 0 Grants and Entitlements 6,783,824 5,768,962 0 0 Conveyance Tax 1,853,653 1,696,113 0 0 Interest 180,089 838,035 76,827 159,468 Miscellaneous 3,655,919 4,134,143 258,165 1,081,585 TOTAL RESOURCES RECEIVED 161,927,176 172,697,291 22,402,212 23,347,023 SERVICES RENDERED General Government 47,981,328 45,978,744 0 0 Public Safety 23,793,549 25,488,019 0 0 Public Works 12,640,556 21,596,642 0 0 Health 36,155,871 47,472,081 0 0 Human Services 37,781,584 36,691,886 0 0 Interest and Fiscal Charges 2,166,770 2,310,764 0 0 Water 0 0 1,276,542 1,860,851 Sewer 0 0 20,561,245 21,332,223 TOTAL SERVICES RENDERED 160,519,658 179,538,136 21,837,787 23,193,074 Excess of Resources Over (Under) Services Rendered $1,407,518 ($6,840,845) $564,425 $153,949

- 17 - Financial Statement Activity

The Financial Statements provide a record of revenues and expenses summarized on a GAAP basis. A detailed version of this Statement of Activities is published in the 2013 CAFR.

EXPLANATION OF SIGNIFICANT DIFFERENCES

The decrease in operating grants and contributions program revenues, as well as the health expense, can be attributed to the shifting of Medicaid revenues and expenditures to the State level. Capital grants and contributions program revenues decreased due to the County decreasing the number of capital projects under construction. Public safety program expenses decreased as a result of decreases in services provided for 911 County-wide services, policing services, drug law enforcement and indigent driver alcohol treatment. General government and human services program expenses decreased due to management’s efforts to keep expenses to a minimum.

The County realized an increase in sales tax revenues which can be attributed to slowly recovering economy. Property taxes decreased due to a decline in valuation recognized in the most recent re-appraisal.

- 18 - Revenues and Expenses

Where the money comes from:

Governmental Activities

General Grants, Interest, Conveyance Fees, $6,783,824 $180,089 Capital Grants, $1,853,653 $2,505,708 Miscellaneous, $3,655,919

Property Taxes, $28,803,535

Sales Taxes, $31,838,298

Operating Grants, Charges for $61,410,982 Services, $24,895,168

Total Governmental Revenues $161,927,176

Business-type Activities

Capital Grants, $933,776 Interest, $76,827 Miscellaneous, $258,165

Charges for Services, $21,133,444

Total Business-type Revenues $22,402,212 - 19 - Revenues and Expenses

Where the money goes:

Governmental Activities

General Interest and Human Services, Government, Fiscal Charges, $37,781,584 $47,981,328 $2,166,770

Public Safety, $23,793,549 Health, Public Works, $36,155,871 $12,640,556

Total Governmental Expenses $160,519,658

Business-type Activities

Water, $1,276,542

Sewer, $20,561,245

Total Business-type Expenses $21,837,787 - 20 - Financial Position Statement

December 31, 2013 and 2012 – Mahoning County Liabilities

Summary Amounts owed to Employees and Vendors are those items which the County owes to individuals and The Financial Position Statement, companies who supply a service or good, and are known in accounting terms as the expected to be paid within twelve months. “Balance Sheet”, is designed to provide a picture of the County’s Deferred Inflows of Resources represent an financial position as of the end of the acquisition of resources that apply to a future period year. Explanations of specific and will not be recognized as revenue until that time. accounts are as follows by where they Making this up are property taxes, grants, permissive appear in the financial position sale tax and special assessments. statement. 2013 2012 Assets Assets: Cash is the amount of physical cash Cash $116,241,378 $118,246,813 held by the County in checking Receivables 66,452,771 65,832,685 accounts and on hand for purposes of paying expenses. Property & Equipment 232,548,258 233,119,235 Deferred Outflows 38,053 45,792 Receivables represent the amounts that are owed to the County at Total Assets 415,280,460 417,244,525 December 31, 2013. Liabilities: Property & Equipment represents the furniture, equipment, vehicles, Owed to Employees & Vendors 7,609,281 7,163,336 land, buildings, infrastructure and Deferred Inflows 29,392,575 28,888,206 water and sewer plants and mains Short Term Debt 11,045,077 11,529,746 which provide an economic benefit of greater than one year. Long Term Debt 76,157,415 81,621,258 Other Liabilities 12,104,442 11,042,252 Deferred Outflows of Resources represent the difference between the Total Liabilities 136,308,790 140,244,798 carrying value of refunded debt and its reacquisition price. Assets Less Liabilities $278,971,670 $276,999,727

- 21 - Revenue Collections & Investments

Sale Tax Collections History

$35,000 $30,000 $25,000 $20,000 $15,000 $10,000 Earnings ($000's) Earnings $5,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Investment Detail Percent of Total Investment Fair Value Average Maturity Investment

Federal Home Loan Bank Bonds $7,977,250 Less than five years 8.41% Federal National Mortgage Association Bonds 27,317,930 Less than five years 28.81% Federal Home Loan Mortgage Corporation Bonds 19,090,722 Less than five years 20.13% Federal Farm Credit Bonds 29,710,613 Less than five years 31.33% Commercial Paper 2,997,200 Less than one year 3.16% Repurchase Agreement 6,700,000 Less than one year 7.07% STAR Ohio 1,023,917 53.4 days 1.08%

Total Portfolio $94,817,632 100.00%

Local Government Collections History

$6,000

$5,000

$4,000

$3,000

$2,000 Earnings ($000's) Earnings $1,000

$0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year

- 22 -

Summary of Debt Instruments

The County employs the use of several different types of short and long-term financing. They are as follows:

General Revenue Bond Special Other Loans Obligation Bonds Anticipation Assessment Bonds Notes Bonds Other loans Revenue are comprised General Bonds are Bond Special of Ohio Public Obligation long-term debt Anticipation Assessment Works Bonds are instruments Notes are Bonds are Commission long-term debt issued to pay instruments issued to pay (OPWC), Ohio instruments for the projects due in one for Water which are of Water and year or less improvements Development repaid from Sewer and are issued benefiting Authority the County’s improvements, to raise money property (OWDA) general and are fully for projects of owners, and funding, which revenue repaid from the County. the owners pay provide low- sources. the revenues These Notes the County interest of the are usually over a period loansfor department. turned into of twenty years infrastructure. bonds after a for the debt. Additionally, short period of loans from time. other sources are included.

Balance Balance 12/31/2012 Additions Deletions 12/31/2013 General Obligation Bonds $48,185,023 $6,102,161 ($9,245,506) $45,041,678 Revenue Bonds 22,961,805 0 (1,027,006) 21,934,799 Bond Anticipation Notes 11,529,746 5,980,205 (6,464,874) 11,045,077 Special Assessments 59,999 0 (19,542) 40,457 Other Loans 8,235,342 227,833 (1,211,170) 7,252,005 Total Debt $90,971,915 $12,310,199 ($17,968,098) $85,314,016

- 23 -

This report is issued by: The Mahoning County Auditor’s Office for the Fiscal Year ending December 31, 2013

Michael V. Sciortino, MPA, JD

Photo: Lake Newport, the largest of Mill Creek Park's three lakes, offers 60 acres of open water and 40 acres of wetlands. Boating and fishing are permitted in season. A boat launch is located on East Newport Drive. Kayaks and pedal boats are available to rent at the Boathouse on West Newport Drive.

Questions, comments or suggestions regarding this report can be directed to the County Auditor’s office at 330-740-2010. This report and a variety of other information, as well as e-mail capabilities, can be found on the Auditor’s Website at:

http://www.mahoningcountyoh.gov

- 24 -