2010 POPULAR ANNUAL FINANCIAL REPORT
4 The Henry County 14 Department Overviews Board of Commissioners 24 Financial Snapshot 5 About the Popular Annual Financial Report 26 The Local Economy General Henry County 6 Key Values and Government Information 32 Financial Reporting
8 Outstanding Achievement in Financial Reporting 34 Financial Management and Government Policies 10 Revenue Sources and Expenditures 35 Glossary of Terms
12 Transparent & Convenient: Henry County Online The Locust Grove Conference Center, purchased from the City of Locust Grove, is currently being converted into a joint conference and activity facility as well as senior center. HENRY COUNTY LEADERSHIP
Board of Commissioners
Elizabeth ‘B.J.’ Mathis Randy Stamey CHAIRMAN DISTRICT III
Warren E. Holder Reid A. Bowman, Sr. DISTRICT I DISTRICT IV
Monroe Roark Johnny B. Basler DISTRICT II DISTRICT V
4 www.henrycounty-ga.org About the PAFR The Popular Annual Financial Report of Henry County is presented as a means of increasing public understanding and confidence in County government and its elected officials through easier, more user-friendly financial reporting. As you review our PAFR, we invite you to share any questions, concerns or recommendations you may have.
We are pleased to present the Henry County are intended to better inform the public about their Popular Annual Financial Report (PAFR) for the fiscal government’s financial condition, without excessive year ended June 30, 2010. As many governments and detail or the use of technical accounting terms. retail businesses do, Henry County runs its budget on This PAFR, which has been generated internally a “fiscal year,” rather than a calendar year. This is so we by the Henry County Financial Services Division and the can close the accounts during a slower time of the year Communications Department, summarizes and explains than December, when property tax is being received and the information contained in the financial statements for sales tax receipts are higher due to holiday shopping. FY 09-10, along with other information on the County’s The U. S. Government and State of Georgia run on a finances, in easily understood terms. The PAFR is fiscal year of October 1 to September 30. Henry County unaudited and does not conform to GAAP and chooses to run our fiscal year from July 1 to June 30, governmental reporting standards. along with 264 other counties and municipalities in Inside this year’s PAFR, you will find accounting Georgia. This report deals with the fiscal year that ran definitions that will help you understand the awards from July 1, 2009 to June 30, 2010, and is known we’ve won for previous PAFRs and CAFRs, general as FY 09-10. information about your County government, a brief The purpose of this Popular Annual Financial summary on Henry County’s economy, overviews from Report is to summarize and simplify information different government departments showing how some contained in the Comprehensive Annual Financial of your money was spent this fiscal year, financial Report (CAFR) of Henry County, which is due six government policies we follow, and finally, how well months after the close of the fiscal year. The County’s your County government did this year. financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America and are independently audited by Mauldin & Jenkins, CPA. The CAFR is available for review online at www.henrycounty-ga.org/Finance. Much of the information in the audited financial statements is necessarily technical and complex. As a result, the full financial statements may not be particularly useful to the citizens of Henry County who wish to better understand County finances. Five years ago, Henry County began issuing simplified financial reports, commonly referred to as Popular Annual Financial Reports (PAFR). These reports
2010 POPULAR ANNUAL FINANCIAL REPORT 5 HENRY COUNTY LEADERSHIP
Your Government Henry County was formed in 1821 from Creek Indian lands. Georgia’s 50th county is located approximately 30 miles southeast of the City of Atlanta, and is considered part of the metropolitan Atlanta area. The County currently occupies 324 square miles of land and serves a population of more than 194,000. Four municipalities are located within Henry County: McDonough, which is the County seat, Stockbridge, Hampton, and Locust Grove.
The governing authority of Henry County is a ELECTED OFFICIALS Board of Commissioners consisting of five members Sheriff Keith McBrayer elected by district and a Chairman elected at-large. The Tax Commissioner David Curry commissioners serve on a part-time basis and are District Attorney Tommy Floyd elected to staggered terms of four years. The Senior Superior Court Judge Arch McGarity commissioners are responsible, among other things, Superior Court Judge Wade Crumbley for passing ordinances, adopting the budget, Superior Court Judge Brian Amero establishing tax rates, appointing committees and Clerk of Superior Court Barbara Harrison hiring both the County’s manager and attorney. The Senior State Court Judge Ben Studdard III County Manager is responsible for the administration State Court Judge James T. Chaffin III of all of the affairs of the County over which he or she State Court Judge Ernest Blount has jurisdiction, including offering positions of State Court Judge Jason T. Harper classified employment, as well as appointing heads of Solicitor of State Court Charles Alan Spahos various departments. Magistrate Court Judge Robert Godwin Henry County provides a full range of services, Probate Court Judge Kelley Powell including law enforcement; corrections; the Coroner Greg Cannon construction and maintenance of public buildings, Surveyor Wayne Powers parks, streets, highways, bridges, storm water drainage facilities, and other associated infrastructure; parks and APPOINTED OFFICIALS recreational activities; 911 emergency communications; County Manager James “Butch” Sanders voter registration and elections; court systems; tax County Clerk Shay Mathis assessment and collections; building inspections; County Attorney LaTonya Wiley geographic information system; planning and zoning; Planning & Zoning Services Michael Harris recycling; and general administrative and Public Works Terry McMickle support activities. Social Services Angie Bailey The County provides police protection to the Financial Services Mike Bush unincorporated areas of the County and the City of Stockbridge. The County also provides fire protection and emergency medical services to all areas of the County except the City of McDonough, which has its own Fire Department.
6 www.henrycounty-ga.org 2010 POPULAR ANNUAL FINANCIAL REPORT 7 Outstanding Achievement
Henry County has won the Certificate of Achievement for Excellence in Financial Reporting in all years that we have submitted a Popular Annual Financial Report for judging, dating back to 2006.
8 www.henrycounty-ga.org “The Government Finance In order to receive an Award Officers Association of the United for Outstanding Achievement in States and Canada (GFOA) has Popular Annual Financial Reporting, given an Award for Outstanding a government unit must publish a Achievement in Popular Annual Popular Annual Financial Report, Financial Reporting to Henry whose contents conform to County Board of Commissioners, program standards of creativity, Georgia, for its Popular Annual presentation, understandability and Financial Report for the fiscal year reader appeal. ended June 30, 2009. The Award An Award for Outstanding for Outstanding Achievement in Achievement in Popular Annual Popular Annual Financial Reporting Financial Reporting is valid for a is a prestigious national award period of one year only. We believe recognizing conformance with the our current report continues to highest standards for preparation of conform to the Popular Annual state and local government popular Financial Reporting requirements, reports. This is the fourth year that and we are submitting it to GFOA.” Henry County has received this prestigious award.
2010 POPULAR ANNUAL FINANCIAL REPORT 9 REVENUES & EXPENDITURES
Revenue Sources
Property Taxes • $74,111,909
Sales Taxes • $18,134,041
Other Taxes • $6,842,228
Licenses & Permits • $1,228,495
Intergovernmental • $2,828,473
Fines & Forfeitures • $4,382,249
Charges for Services • $13,550,460
Miscellaneous • $1,643,065
Investments • $95,621
Contributions • $62,356
Total General Fund revenues of the fiscal year, which ended June 30, 2010, were $122,878,897. Revenues of the prior year were $120,737,422. Revenues increased by $2,141,475.00 due to an increase in sales tax revenues as a result of a slight upturn in the local economy.
10 www.henrycounty-ga.org Expenditures
Public Safety • $61,865,607
Public Works • $11,939,937
Health & Welfare • $6,005,433
Culture & Recreation • $7,113,640
Housing & Development • $3,863,487
General Government • $14,663,777
Judicial • $14,570,616
Total expenses during the year ended June 30, 2010 were $120,022,497. Expenditures of the prior year were $122,260,838. The decrease in expenditures of $2,238,341 is primarily related to a combined effort by all departments to tightly manage spending.
2010 POPULAR ANNUAL FINANCIAL REPORT 11 Transparent & Convenient
The County’s website, and that citizens have a way to publishes regular press releases. www.henrycounty-ga.org received request public records online. According to its website, an A+ from the Sunshine Review, The Sheriff’s new website “Sunshine Review is a non-profit making it one of just six counties out enables visitors to search for organization dedicated to state and of 159 in Georgia to achieve currently incarcerated individuals. local government transparency. The this status. The Courts have also made it easier Sunshine Review wiki collects and The Sunshine Review’s to do business with them, through shares transparency information and “Transparency Checklist" allows the added capability to pay traffic uses a "10-point Transparency governments to post information tickets on-line, search superior court Checklist" to evaluate the content of about their website, and then dockets, and submit claims and every state and more than 5,000 analyzes the information to ensure other documents electronically. local government websites. that details about budgets, meetings In addition to the website, Sunshine Review collaborates with and agendas, permits and zoning, Henry County promotes news and individuals and organizations audits, contracts, lobbying efforts, information about its programs and throughout America in the cause of and taxes are available on the services through its government an informed citizenry and an website. It also checks to see that access television channel, Henry accountable government.” contact information for elected and TV14, and a weekly newsletter, The administrative officials is provided, Henry County Update. It also
At A Glance: • The County tracks over 7,200 pages. • There were nearly 3 million pageviews last fiscal year alone. • Visitors accessed the site using 103 different browser and operating system combinations. • 483,236 total visits were as a result of a site search from over 90,000 keywords. • The job openings page under Human Resources received 284,805 hits, second only to the main page of the County website. • Nearly 1,800 other websites referred visits to Henry County. • The County webmaster processes approximately 2,000 website update requests per year.
12 2010 POPULAR ANNUAL FINANCIAL REPORT 13 Fortson Library
The new 15,900 square foot Fortson Library in Hampton sits on 2.3 acres and consists of separate children and adult book and reading areas, a meeting room with the capacity for 60 to 70 people, 24 public access computers, six young adult computers and six children’s early literacy stations. There is also a separate reading room off the main library, called the Karen Wheat Memorial Reading Room. Wheat was the interior designer for the last four libraries that were built in Henry County and she passed away this year from cancer. The Fortson Library is fully functional and offers a full schedule of programs, particularly for children. Programs include the baby lap sit program, a preschool program, and the summer reading program, which is offered to children in preschool up through high school. The new, larger library replaced the old Fortson library and the outside of the building was designed to resemble the Train Depot in Hampton. The interior colors and finishes were designed to lend a traditional feel to the building, heightened by ceramic flooring and classic architectural details. It is the first new library in Henry County constructed west of I-75, giving better access and making it more convenient for citizens living in that area. Construction on the library began in the summer of 2009 and took one year to complete. The total cost of the SPLOST III project was $2,384,264, more than $500,000 under the projected budget.
14 www.henrycounty-ga.org Animal Care & Control • 16 Code Enforcement • 17 Fire Department • 17 DEPARTMENT Human Resources • 18 Neighborhood Stabilization Program • 19 OVERVIEWS Parks & Recreation • 19 Police Department • 22 Purchasing • 22 Transit • 23
2010 POPULAR ANNUAL FINANCIAL REPORT 15 DEPARTMENT OVERVIEWS
According to 2008 Census estimates, Henry County is the 9th most populous county in Georgia. At 323 square miles, Henry ranks 93rd (out of 159) in the state in area and is the fifth largest in the 10-county region. As of 2010, the reported population was 194,400. Henry County's ever-changing demographics and growing population is served by approximately 1,800 employees spanning a variety of divisions, departments, and partnerships, highlighted here in the following pages.
ANIMAL CARE & CONTROL three community quarantines in locations throughout The mission of Henry County Animal Care & the county where rabies-positive animals came into Control is to enforce the state laws and county contact with humans or neighborhood pets. To combat ordinances pertaining to animal control and rabies, the department offers a low-cost rabies vaccine management; educate the community in responsible pet clinic twice a year. Approximately 200 Henry County ownership and wildlife care; and provide for the housing companion animals were vaccinated against the rabies and care of stray, homeless, and animals impounded virus at each clinic. due to violations of the County’s animal A low-cost spay/neuter clinic continues twice a control ordinance. month, at no cost to the County, to assist in lowering In fiscal year the number of unwanted 2009 - 2010, Animal puppies and kittens in the Control Officers community. Animal responded to a total of Control has increased 10,220 complaints. They awareness of adoption issued 1,273 warnings and pet rescue and 257 citations. The opportunities through Animal Care and Control “Pet of the Week” features Shelter, located at 527 in local media and on Hampton Street in various Internet-based McDonough, housed adoption sites such as 6,188 animals during the Petfinder.com. fiscal year. Of those, 594 Animal Control has animals were reclaimed The Board of Commissioners presented Vince Farah (Front left), who has been with developed a “Bite by their owners, 697 were Animal Care & Control for 17 years, with a Certificate of Appreciation in recognition Prevention” education of his numerous contributions to the Animal Care & Control Department, his adopted from the shelter, commitment and expertise in educating the public about rabies and animal safety. program for children in Pre- and 1,149 went to licensed K through Elementary rescue groups. grades, and has established the “Friends of Henry The department also handles rabies control for County Animal Shelter Volunteer Program,” allowing Henry County. In Fiscal Year 2009-2010, the department adults 18 years of age and older the opportunity to assist submitted a total of 30 animals for rabies testing. Of in enriching the lives of companion animals housed these, eleven were found to be positive for the virus at the shelter and to assist with adoption and (Five raccoons and six foxes.) The department handled rescue efforts.
16 www.henrycounty-ga.org CODE ENFORCEMENT hospitals. The department’s Prevention Division The Code Enforcement Division is responsible conducted 6,986 existing building inspections and 796 for enforcing the Codes and Ordinances of the County. new construction inspections, reviewed 518 building Code Enforcement is required to assist other plans, and attended 290 pre-construction meetings, as Departments of the County in the prosecution of cases well as installed 72 smoke alarms and 47 car seats. The such as violations of the building codes, health department‘s Training Division conducted 48 training ordinances, and water ordinances, among others. classes and our personnel logged multiple hours of in- Usually, the Code Enforcement Department will issue a service training. warning notice to violators, giving the violator an In October 2009, the department held the first opportunity to comply within a set time limit. A Citizens Fire Academy. This academy was designed to summons to Magistrate Court is normally the last resort. involve citizens in departmental activities by providing In FY 09-10, Code Enforcement Officers them with information on the day-to-day operations of answered 6,404 complaints. They issued 1,775 the department. Advance Life Support equipment was warnings, and 155 citations. Code Enforcement also added to five fire engines. These engines are escorted nine houses being moved through the County. strategically placed and can provide advance care including medication administration prior to the arrival of the ambulance. The department partnered with local FIRE DEPARTMENT During fiscal year 2010, the Henry County Fire Department was very successful in responding to emergency calls for help and providing the citizens with non-emergency support activities.
The department answered at total of 20,245 requests for assistance in fiscal year 2010. The breakdown is as follows: Left: A little girl sits on the front of a fire engine with Henry County Firefighters at National Night Out. 676 fire responses, 431 hazardous Above: The Fire Department gives a demonstration during the Citizen’s Fire Academy. materials situations, 15,994 EMS/rescue calls, 2,276 good intent calls, 838 false alarms and 130 industry to enhance response to the county’s high risk other responses. Our Advance Life Support transport facilities through training and drill activities. The training ambulances transported 11,856 patients to area division continued the paramedic academy which continues to deliver high quality education opportunities
2010 POPULAR ANNUAL FINANCIAL REPORT 17 DEPARTMENT OVERVIEWS
to personnel. In addition, Prevention staff was poll workers and Parks and Recreation part-time reorganized and three members were relocated to the employees who were hired for seasonal and/or Windy Hill complex to streamline the new construction temporary positions. approval process. The Prevention staff also reached out Internally, the department handled 980 to local organizations to provide fire safety education to personnel action forms (including new hires, children and seniors. resignations/retirements, terminations, transfers, In the past year, the Operations Division promotions, and suspensions) and 254 FMLA requests, accomplished two major projects. The first, was the in addition to updating the County personnel policy installation of voice amplifiers to each of the firefighters‘ manual. A committee was also formed to screen and breathing apparatus face pieces. This will allow clearer approve requests for donated annual leave. A variety of communication during firefighting activities. The second health and wellness events were hosted for employees, major accomplishment was the implementation of the including the Health Fair Bus. Human Resources, which Tactron Accountability System. This system is used to is most often the first line of communication to Henry track firefighters on emergency scenes. In both of these County through the receptionist, received over 72,000 projects, the goal was to create a safer work calls to the main lines throughout the past fiscal year. environment for emergency personnel. In conjunction with the County Manager and The Fire Department’s Community Relations Deputy County Manager, the Department also composed Division’s purpose is to educate the public to “Prevent a new countywide Employee Evaluation Form which is the Preventable” fire and life safety incidents. It does so now being used by several County Departments on a through presentations and career days at schools, both trial basis. Additional policies, such as the County public and private, as well as home school groups, Substance Abuse Policy for the Transit Department were senior centers and assisted living homes. It also hosts updated, ensuring they were in line with current federal tours of the Fire Safety Theater, located at Station 3 in guidelines. Lastly, the Annual Drug and Alcohol MIS Stockbridge, and visits to other fire stations. Date Collection Report for 2009 was completed and submitted to the Georgia Department of Transportation. HUMAN RESOURCES The Human Resources Department had a busy year, responding to the needs of County citizens and approximately 1,800 employees in a variety of ways. Henry County’s population has increased by more than 85,000 people between 2000 and 2010, yet the ratio of County employees per 1,000 residents has, on the average, remained the same. Perhaps a sign of the economy, during this past fiscal year, Human Resources processed 6,013 applications for employment, an increase of nearly 41% over the previous fiscal year. Henry County hired 215 new employees, compared to 141 last fiscal year. The increase in County Human Resources processed 6,013 applications for employment, an increase of nearly 41% over the employees in 2009 and 2010 was due, in part, to previous fiscal year.
18 www.henrycounty-ga.org NEIGHBORHOOD STABILIZATION PROGRAM Henry County is one of 23 Counties or municipalities in Georgia to be awarded funding from the Georgia Department of Community Affairs (DCA) for its Neighborhood Stabilization Program (NSP), which was created under the Housing and Economic Recovery Act of 2008. Designed to assist states and certain local communities experiencing particularly high foreclosure problems Henry County has purchased 61 homes and has rehabilitated 24 houses with 18 more under contract. and risk of property abandonment, the NSP Direct Allocation pool has allocated more course and qualify for a mortgage with a lender that than $54 million for projects that meet a minimum complies with sound lending practices. $500,000 funding threshold. Henry County received Henry County has 18 months to draw down the more than $6 million in funding through the initial funds, with four years to spend all of the income Neighborhood Stabilization Program in March 2009 — generated from the program, which will be reinvested nearly three times more than the average award amount. into the program to help even more families. The Neighborhood Stabilization Program has proven to be a success in Henry County by enabling foreclosed homes to be put into the hands of buyers. The program not only helps people realize the dream of PARKS & RECREATION homeownership, but puts properties back into the tax The Henry County Parks and Recreation digest and alleviates the problems associated with Department is dedicated to improving the quality of life foreclosed homes. for all the citizens of Henry County by providing quality At the time the program began, Henry County recreation and athletic programs, opportunities, special had a foreclosure rate of 5.1 percent, with nearly 2,500 events, facilities and amenities. homes in foreclosure. Under the program, Henry County has purchased 61 homes and has rehabilitated Parks 24 houses. So far, there are 18 homes either sold or Henry County was able to make improvements under contract, and the County is on track to spend the to several of its parks this year. funds necessary to keep the program going. Sandy Ridge Park now has a new regional The objective of the program is to purchase playground and a new picnic pavilion to go with the foreclosed residential property for the purpose of newer ballfields at the park. The playground offers fun stabilizing neighborhoods and encouraging re-use or sections for different ages, is fenced in and has plenty redevelopment of property. The program offers down- of shade to play in as well as shaded picnic areas payment assistance, up to $25,000, to qualified from which parents and grandparents can watch the homebuyers. But there are income restrictions; for children play. example, an individual can make up to $59,000 a year Approximately 4,000 people visited the and a family of six can have a yearly income of up to Veteran’s Wall of Honor. In 2009, 57 4” x 8” bricks, 22 $99,100. The program requires buyers to be U.S. 12” x 12” bricks and 4 benches were sold. citizens, to take an eight-hour homebuyer education The Activity Barn at Nash Farm Park underwent
2010 POPULAR ANNUAL FINANCIAL REPORT 19 DEPARTMENT OVERVIEWS
From L to R: The R.C. Race Track at Windy Hill Park, participants at the Adaptive Sports Camp, and children at the Easter Egg Hunt event at Nash Farm Park.
extensive renovations and will be available to rent out Athletics for weddings, banquets, etc. The Veteran’s Historical More than 25,000 youth and 8,000 adults Museum at Nash Farm Park officially opened its doors participated in organized athletic programs while 7,000 in July 2009. Displaying memorabilia and uniforms of enrolled in its classes and activities and 3,000 America’s fighting forces, the museum is a moving participated in Therapeutic recreation. history lesson. Period uniforms from World War I Nine swimmers went to the GRPA District 6, through the current War on Terror are prominently Class A swim meet held in Macon. These same displayed along with information about those who swimmers also advanced to the two day State Swim actually wore them. It was relocated in 2010 to Heritage meet held in Carrollton. HCPRD hosted two CAM Sports Park to be closer to the Veterans Wall of Honor. World Series and one USSSA World Series. The The County purchased the Locust Grove Opening Ceremonies were held at Nash Farm Park and Conference Center from the City of Locust Grove and is games were played at parks throughout the county. converting it into a Senior Center that will double as a HCPRD had a total of 834 registered athletes for Community Center, giving citizens of all ages greater youth basketball. The Locust Grove Recreation Center access to this beautiful facility. and 14 Henry County schools were used for practices and four middle schools, along with the J.P. Moseley Community Service Recreation Center, were utilized for the games. The J.P. The Community Service Program puts citizens Moseley Recreation Center was used to host some who are ordered by the courts to perform community GRPA District games and four teams advanced to the service to work cleaning up our community and State tournament held in Griffin, Savannah, Rome and assisting County government. The program’s College Park. participants disposed of 27,480 lbs of trash from Panola The adult athletic section also hosted Henry Woods, helped move Elections into their new building, County Parks and Recreation Department’s annual moved auction items to storage, assisted with setup for Halloween Havoc and the Christmas One Pitch several large functions at the judicial center and Tournaments. For the Halloween Havoc One Pitch, provided light duty assistance to several departments. teams were asked to dress in Halloween costumes and For the year, these inmates and probationers worked a bring bags of candy that were used for the Trick or total of 71,350 hours, cleared 2,428 miles of County Treating held at the Fall Festival. Teams were asked to roads and disposed of 249,140 pounds of trash. pay a team fee for the Christmas One Pitch tournament, with all proceeds going to purchase toys for A Friend’s House and Connecting Henry.
20 www.henrycounty-ga.org Therapeutic Recreation held in Statesboro in October. Athletes also participated Therapeutic Recreation helped train Special in two sailing competitions: one in Charleston, South Olympic athletes for the Summer Games. Athletes Carolina and one in Macon, Georgia. Numerous medals practiced in athletics, aquatics, soccer, tennis, table and trophies were added to Henry County’s collection in tennis, and volleyball. The Summer Games were held each competition. at Emory University at the end of May. Sixty-seven athletes and partners attended the competition. The Programs TEAM USA Championships were held in downtown Parks and Recreation offers a day camp Minneapolis, Minnesota this year. The unified volleyball program over the summer and school breaks for area team placed third in their division. The Fall Games were youth addressing a clear need in the community. It also offers numerous classes teaching everything from exercise to art and music. Approximately 350 campers attended on a daily basis under the supervision of 80 staff throughout the weeks. During the summer, all of the campers were able to take advantage of the free lunch and breakfast program sponsored by Gracious Hands of GHBC. Each week, the campers went swimming at High Falls State Park in Butts County, to the movies at The Great Escape Theater in McDonough and on other exciting field trips to such places as Wild Animal Safari, Sun Valley Beach, World of Coke and Dixie Land Fun Park.
Special Events Parks and Recreation hosts several family Youth football players from the Falcons play against the local Bulldogs. friendly events for the community each year. Well over 9,000 patriots enjoyed colonial music, dancing and fireworks at the Georgia Independence Day Festival over July 3-4. B98.5 sponsored “B” At the Movies on August 1 where the public enjoyed a free showing of Madagascar 2: Escape 2 Africa. The 145th Anniversary of the Battle of Atlanta was held the first weekend of September which brought in several thousand patrons. Visitors enjoyed music, food, shopping and re-enactments of the battles that actually took place at Nash Farm. On October 17, visitors to the Fall Festival enjoyed hayrides, a costume contest, a pumpkin carving contest, shopping and trick- or-treating around the historic village. A Heritage Christmas was held at Heritage Park in December. Radio Disney came out and gave away prizes and visitors enjoyed live entertainment from local dance Actors at the Independence Day Festival entertain the crowd at one of the larger Parks & Recreation events held during the year. studios and The Regulars, pictures with Santa, hayrides
2010 POPULAR ANNUAL FINANCIAL REPORT 21 DEPARTMENT OVERVIEWS
and writing Christmas cards to our troops. The Veteran’s Wall of Honor hosted the Veteran’s Day Ceremony and a Promotion Ceremony for active duty Warrant Officers and had two tour groups to visit. The last event of the fiscal year enjoyed its biggest crowd ever when more than 2,000 families came out for the Flashlight Easter Egg Hunt. They enjoyed Radio Disney, pictures with the Easter Bunny, games, crafts and a night time Easter Egg Hunt.
POLICE DEPARTMENT The Henry County Police Department Lt. Vance Rosen demonstrates the Virtual Training Simulator. continues to provide citizens with the best possible law enforcement protection through the One area of concern to both police and citizens upgrading of equipment, the most up-to-date training is the increased presence of gangs and gang-related available as well as mandatory training, information activity in Henry County. The Police Department joined sharing, and increases in personnel. In FY 2009-2010, with other law enforcement agencies in a community the Police Department responded to 189,507 calls for meeting on gang violence, and formed a Criminal service. They made 557 drug arrests and 995 driving Apprehension and Gang Enforcement (CAGE) unit. As under the influence (DUI) arrests. Henry County saw of FY 07-08, the CAGE Unit had identified at least 45 decreases in larceny cases, robbery, accidents, DUIs, as gangs that have or are operating in Henry County. In FY- well as forgery and fraud cases. 09-10, the CAGE Unit made 94 felony arrests and 181 misdemeanor arrests. They identified 218 new Gang members and they established 17 confidential informants. The unit confiscated a number of drugs, including methamphetamine, marijuana, cocaine and several types of pills, along with 3 firearms in gang- related cases. Another area of emphasis for the Police Department is enforcement of traffic laws on I-75. The HEAT (Highway Enforcement of Aggressive Traffic) Unit is comprised of one Sergeant and three officers of the Uniform Patrol Division. HEAT is designed to educate and enforce laws related to proper safety restraint usage for adults and children, laws governing speed enforcement, and impaired and aggressive driving. In FY 09-10, the HEAT Unit issued 1,330 seat belt violation citations, 119 child restraint violation citations, and 3,212 speeding tickets. They made 437 DUI arrests, 34 drug arrests, and 10 felony arrests.
Henry County officers work with a K-9 at a newly acquired training facility.
22 www.henrycounty-ga.org PURCHASING vehicles and janitorial supplies, which saves both the From major purchases, like heavy equipment time and expense of the bid process. and vehicles to bulk items like gravel and pipes, and Regardless of whether its through a bid or even general office supplies, the Henry County through a contract, Purchasing is always working to Purchasing Department is charged with getting the best assure that the County – and therefore the taxpayers – value possible on all items needed to keep Henry County gets the best value for those items. In fact, it is government functioning. It also ensures that the estimated that the Purchasing Department has saved process is fair for businesses. Henry County taxpayers nearly $5 million over the last Each month, the five person department four years alone through the bidding process. processes nearly 700 purchase orders, and awards an All bids are advertised in the Henry Daily Herald, average of 12 bids. And they carefully deal with all the the County's legal organ, and on-line. contracts and lease/purchase agreements that go along with those orders. TRANSIT The function of Henry County Transit is to provide safe, reliable, accessible, and affordable transportation to the citizens of Henry County. Henry County Transit provides curb-to-curb service based on a first-come-first-served reservation system Monday- Friday 6 a.m. to 6 p.m. Fares are $4 per person per stop for citizens under age 60. For citizens over 60 years of age, the fare is $2 per person per stop. In FY 2010, the Transit Department provided 85,145 trips for citizens attending medical, shopping, education and employment activities. Of those trips, 58,011 were provided for non-elderly citizens and June Goodwin with the Purchasing Department enters bid documents into the 27,134 for elderly residents. computer system. The Transit Department was awarded $547,674 in American Recovery and Reinvestment Act funds from But it isn't as simple as running to the store, or the Federal Transit Administration for capital projects. jumping on the internet to place an order. Unlike the general population, the Purchasing Department is actually required to do price comparisons to make sure the County is getting the best deal possible. For all orders between $1,000 and $10,000, the department is required to get written quotes from three different vendors. And on all orders totaling $10,000 or more, they have to put out requests for sealed bids, proposals, or qualifications, and all of those large purchases must go before the Board of Commissioners for approval before the order can be placed. Henry County can also take advantage of state and federal contract pricing on certain items, such as
2010 POPULAR ANNUAL FINANCIAL REPORT 23 FINANCIAL SNAPSHOT
Financial Snapshot Government-wide financial statements are liabilities by $617,922,297 at the close of the most designed to provide readers with a broad overview of recent fiscal year. By far the largest portion of the Henry County’s finances, in a manner similar to a County’s net assets (76.2 percent) is its investment in private sector business. There is one government-wide capital (e.g., land, buildings, machinery and equipment, financial statement presented in this report, the and roads), less any related debt used to acquire those Statement of Net Assets (Table 1). This statement assets that are still outstanding. The County uses these presents information on all of the County’s assets and assets to provide services to citizens; consequently, liabilities, with the difference between the two reported these assets are not available for future spending. as net assets. The Statement of Activities (Table 2) An additional portion of Henry County’s net provides information on the County’s revenues and assets (10.4 percent) represents resources that are expenses and reports the difference between the two subject to external restrictions on how they may be as the change in net assets. Over time, increases and used. The remaining (13.4 percent) balance of decreases in net assets may serve as a useful indicator unrestricted net assets may be used to meet the of whether the financial position of the County is government’s ongoing obligations to citizens improving or deteriorating. and creditors. In the case of Henry County, assets exceed
TABLE 1 • Statement of Net Assets as of June 30, 2010
2010 2009 Total Assets $792,686,609 $762,553,214 Total Liabilities $174,764,312 $187,013,409 Total Net Assets $617,922,297 $575,539,805
TABLE 2 • Statement of Activities for the Fiscal Year Ended June 30, 2010
2010 2009 Total Revenues $196,837,880 $173,292,999 Total Expenditures $154,455,388 $174,546,256 Increase in Net Assets $42,382,492 $(1,253,257) Net Assets, July 1 2010 $575,539,805 $576,793,063 Net Assets, June 30, 2010 $617,922,297 $575,539,805
24 www.henrycounty-ga.org Where Your Property Tax Dollars Go
2010 POPULAR ANNUAL FINANCIAL REPORT 25 The Local Economy
Innovative approaches and “out of the box thinking” is what has enabled Henry County and the Development Authority to attract more than 1,000 jobs to the community at a time when many industries have been closing their doors. New industry to Henry County includes Whirlpool, Inline Plastics, Phillips Van Heusen and De Wafelbakkers. These corporations have invested millions in our community, signed long term leases, and plan to expand their facilities in Henry County over time, thereby serving to stabilize and even improve our local economy. Additionally, retailers such as Kohl’s, Hobby Lobby, and JCPenney have also opened, bringing jobs and helping the local economy.
Pictured this page: Whirlpool recently celebrated the opening of a 1.5 million square foot Regional Distribution Center in McDonough, Opposite top: Retailer JCPenney recently opened its doors off Highway 20 in the McDonough area, Opposite middle: Examples of packaging manufactured by Inline Plastics Corp. a company that brought 120 jobs to Henry County; Opposite bottom: Hobby Lobby is the latest retailer to open in the McDonough area, at South Point, the same shopping complex as JCPenney and Kohl’s.
26 2010 POPULAR ANNUAL FINANCIAL REPORT 27 THE LOCAL ECONOMY
General Fund The General Fund is the chief operating fund of Henry County. At June 30, 2010, the County’s General Fund reported an unreserved fund balance of $39,243,083 while the total fund balance reached $39,560,992. The balance of the County’s General Fund decreased by $3,278,010 during the current fiscal year. This was due to the decreases in revenues like LOST and interest revenue and increases in expenditures throughout the General Fund Property Tax, LOST, Fines and Forfeitures, Licenses and Permits and Interest Revenues. The original budget showed the County would need to use $7,742,433 of fund balance but the County was able to decrease that amount by $4,464,423 during the year.
LEASE PURCHASE FUND LONG-TERM DEBT In fiscal year 2004, Henry County created the At the end of the current fiscal year, Henry Lease Purchase Fund to track lease purchases County had total bonded debt outstanding of separately from any other capital projects fund. Henry $90,099,640 which is backed by the full faith and credit County enters into lease purchase agreements for the of the government. The $90,099,640 general obligation purchase of land, equipment, vehicles, and buildings bond issuances are the combination Series A bonds that through an agreement between the Association of were issued in October 2008 for $19,950,000, and the County Commissioners of Georgia (ACCG) and qualified Series B bonds that were issued in March 2009 for financial institutions. The year end fund balance for the $67,290,000. This bond issuance has allowed the Lease Purchase Fund is $2,701,710. County to construct capital buildings and improvements at today’s prices, saving tax payers money, while also enabling citizens to begin enjoying facilities sooner and CAPITAL ASSETS get traffic relief faster. Henry County’s Special Purpose Henry County’s investment in capital assets as Local Option Sales Tax (SPLOST) program is to be paid of June 30, 2010 amounts to $619,747,059 (net of back during fiscal years 2010, 2011, 2012, 2013 and accumulated depreciation). This investment in capital 2014. Current year interest payments were made in July assets includes land, buildings and system and December in the amount of $2,496,189. The bonds improvements, machinery and equipment, park will be paid off with proceeds from the monthly facilities, roads, highways, and bridges. collection of the 2008 SPLOST revenue. Henry County’s
28 www.henrycounty-ga.org enterprise fund, which is reported under business-type built each year. As the large projects continue to be built, activities, did not incur any debt and did not have debt the fund balance will decrease over the life of the in prior years. SPLOST program. Henry County maintains an “Aa1” issuer rating from Moody’s and an “AA” rating from Standard and Poor’s for general obligation debt. This enables the IMPACT FEE County to borrow money at a much lower interest rate. The Henry County Impact Fee fund closed Fiscal State statutes limit the amount of general Year 2010 with a fund balance of $1,851,174, a decrease obligation debt a governmental entity may issue to 10% of $761,096 from the last fiscal year. The decrease is of its total assessed calculation. The current limitation due to the housing market, which has tapered for Henry County is $672,284,857, which is significantly off dramatically. more than Henry County’s outstanding general obligation debt.
DEBT SERVICE FUND BUDGET HIGHLIGHT The Debt Service Fund has a total fund balance of $17,447,416, all of which is reserved for payment of debt service. Interest Henry County maintains an “Aa1” revenue for the current year was $22,727. issuer rating from Moody’s, which was Total expenditures in the Debt Service Fund upgraded from a rating of “Aa2” were $10,336,269, which included principle retirements of $5,492,511, and interest and during last fiscal year. fiscal charges of $4,843,758. The net increase in fund balance during the current year in the Debt Service Fund was $16,960,937. This increase was due to the County transferring funds from the SPLOST III Fund in preparation of making the ASSETS necessary debt service payments for the bonds issued Governmental assets installed during the year in 2009. totaled $42,639,804. This investment in capital assets includes land, buildings and system improvements, as well as machinery and equipment, park facilities, roads, highways, and bridges. SPLOST Major projects consisted of the following: The 2008 Special Purpose Local Option Sales • Acquisition of land for right-of-ways Tax (SPLOST) accounts for the financial resources • Acquisition of land for parks provided from the 2008 one percent Special Local • Acquisition of land for future governmental use Option Sales Tax. These resources must be used for • Addition of completed roads various building projects and road improvements • Equipment for public safety and public works throughout the County. At the end of fiscal year 2010, • Computer servers and equipment the total fund balance was $52,537,988, a decrease of The largest portion of the increase came from $15,084,496 from the prior year. The decrease in fund construction in progress. Henry County’s SPLOST balance is due to large projects that are continuing to be program is currently building capital projects and road
2010 POPULAR ANNUAL FINANCIAL REPORT 29 THE LOCAL ECONOMY
projects that are at their peak of construction. The There was also a decrease in judicial functions, County is constructing or has already completed an in the amount of $66,880, due to the addition of a DUI additional Library, a recreation center, a fire station, and Court in the State Court. senior center. To help with the crowded parking at the Lastly, there was a decrease in housing and County Courthouses, the County also constructed a development of $352,529, due to the downturn in the parking deck behind the Judicial Center. Construction housing market. Henry County consolidated several has also begun on an additional Police Precinct and a departments within this section and did not fill positions Domestic Violence Center. SPLOST is also building when employees left the County. additional roads, adding turning lanes and traffic signals Public safety functions saw an increase, totaling and many other items that will help with the $1,681,660, due to additional positions throughout the transportation needs throughout Henry County. public safety function. The main department responsible for the increased budget was the Fire Department, which added additional personnel to each BUDGETARY HIGHLIGHTS shift to reduce overtime. The police department also Property tax revenue decreased by $596,272 added additional officers in an effort to deflect crime (.82 percent) during the year. Most of this decrease is brought about by the current struggling economy. due to reduction in residential property taxes due to There was an increase in public works services including foreclosure and bank sales in calculations of and related and capital assets amounting to $547,767, the tax values of all properties. Sales tax revenue due to the increased productivity of the DOT crews. increased by $1,102,773 (6.48 percent) during the year. More asphalt was put down in fiscal year 2010 due to This is mainly due to a slight upturn in the local good weather for the majority of the year. Health and welfare services also increased their budget a total of $409,143. A GPS tracking BUDGET HIGHLIGHT system was installed in transit buses allowing each bus to be tracked around the County. Senior Services was awarded a rental assistance The Tanger Factory Outlet shopping grant bringing additional expenditures in the current budget. complex in Locust Grove draws more Culture and recreation went up $46,903, due to than two million shoppers annually. additional personnel for after school and summer camp programs, along with additional programs being run by the recreation department.
economy. Unrestricted investment earnings decreased by $771,910 (83.7 percent) during the year because of ECONOMIC FACTORS & NEXT YEAR’S BUDGET the fall of interest rates related to the economy. During Henry County is strategically located along I-75 the year, there was an increase of $704,203 in with a total of seven interchanges within its borders. appropriations between the original and final With a low cost of living, temperate climate and easy amended budget. access to Atlanta, Henry County provides all the General government activities showed a conveniences of a large city, in a small town decrease of $1,561,950 due to the distribution of atmosphere. State and national economic indicators unallocated funds originally budgeted for vacancies and place Henry County in an enviable position as one of the new positions. nation’s fastest-growing communities, and in fact,
30 www.henrycounty-ga.org between 2000 and 2006, Henry County was ranked the Henry County is also using in-house 2nd fastest-growing county in Georgia, and the 8th departments during 2010 to help with current projects. fastest-growing county in the nation. Henry County With the slowdown in construction, we are now able to added 66,693 residents during that period, and as of get prices that are more competitive and also do more July 1, 2010, had an estimated population of 194,400. work in the same amount of time. This continued growth has fueled expansions in Henry County expects to continue to feel the the economic sector. Henry County has a rich variety of effect of the slowdown in the housing market along with retail establishments ranging from large stores in a decline in impact fees generated by new building outlying shopping centers to small “Mom and Pop” permits. However, due to major commercial building shops that serve the downtown areas. In fact, the Tanger projects still slated for Henry County, the County is Factory Outlet shopping complex in Locust Grove draws hopeful that these declines will stabilize and take an more than two million shoppers annually. upward turn within the next budget cycle. During 2010 The unemployment rate for Henry County is and going forward, Henry County is doing its part to try currently 10 percent, which is .01% lower than the rate and secure outside funding sources such as grants and of one year ago. The unemployment rate for the State other bonding opportunities to continue to construct of Georgia at June 30, 2009 is 9.9%. road and capital projects that would have otherwise In addition to the permanent residents and been postponed due to the reduction in SPLOST businesses of Henry County, the County hosts a major collections as a result of the sluggish economy. sporting event each year, aiding in the export of our tax burden through our Local and Special Local Option Sales Taxes. The National Association of Stock Car Racing (NASCAR) events are held each year at the Atlanta Motor Speedway in Hampton. Atlanta Motor Speedway accounts for more than half of metro Atlanta’s total revenue derived from sports and was projected to bring in $2.275 billion of the metro area’s $4.5 billion income from sports from years 2000-2006. On race day, Atlanta Motor Speedway holds in excess of 125,000 fans, making it one of the 10 largest cities in Georgia for the day. The new 2008 SPLOST, which started on April 1, 2009 now has an estimated collection of $180,000,000. Based on fiscal years 2008 and 2009 collections, the County felt it necessary to adjust the target downward from the $240,000,000 estimated in the prior fiscal year. Henry County will spend this money building capital projects, such as the addition to the county jail, new fire station, other governmental buildings, and park projects. Road projects will also continue consisting of paving dirt roads, improving intersections, building new roads and working on bridges.
2010 POPULAR ANNUAL FINANCIAL REPORT 31 KEY VALUES & FINANCIAL REPORTING
Financial Reporting The key values of the County’s financial management include fiscal integrity, prudence, planning, accountability, honesty, and openness. Specifically, it is the County’s intent to maximize the level of public goods and services while minimizing the level of debt.
If effectively used, the County’s budget serves assurance about whether the financial statements are as the primary tool in allocating financial resources to free of material misstatement, whether caused by error, programs and services. Specifically, the budget can fraudulent financial reporting or misappropriation serve as a policy making tool, a management tool, a of assets. financial tool, and a communication tool. An audit also includes assessing the accounting For accountability purposes, the County principles used and significant estimates made by operates in a “fish bowl.” That is, decisions are made in management, as well as evaluating the overall financial an open public forum ensuring County is accountable statement presentation. Accordingly, the audit was to its citizens while pursuing goals of efficiency designed to obtain reasonable, rather than absolute, and effectiveness. assurance about the financial statements. Henry County’s financial statements have been This financial report is designed to provide a audited by Mauldin & Jenkins, Certified Public general overview of Henry County’s finances. Accountants, LLC. The audit was conducted in Information in this report is taken from the 2009-2010 accordance with auditing standards generally accepted Certified Annual Financial Report, which is available for in the United States of America and Government public review on the Finance Department page of the Auditing Standards issued by the Comptroller General Henry County Board of Commissioners’ website at of the United States. Those standards require that the www.henrycounty-ga.org. audit be planned and performed to obtain reasonable
You may access this document, along with the Comprehensive Annual Financial Report on the Henry County website at www.henrycounty-ga.org
32 www.henrycounty-ga.org How Henry County’s Fund Balance Has Changed
2001 $25,765,361
2002 $26,524,487
2003 $35,144,210
2004 $35,745,892
2005 $47,482,872
2006 $53,561,758
2007 $50,968,119
2008 $51,776,801
2009 $43,079,966
2010 $39,243,083
Fiscal year ending June 30, 2010. An analysis of the fund balance of the General Fund for the last eight fiscal years is shown.
2010 POPULAR ANNUAL FINANCIAL REPORT 33 GOVERNMENT POLICIES
Financial Management Henry County has a responsibility to carefully account for public funds, to manage County finances wisely, and to plan for the provision of public services.
CASH MANAGEMENT public hearings on the proposed budget and to adopt a Cash management is complex because, unlike final budget by no later than June 30, the close of Henry private businesses, Henry County has a broader range County’s fiscal year. The appropriated budget is of responsibilities. The County is expected to address prepared by fund and department. the community’s social issues, protect the citizens’ The County Manager may make transfers of interests, provide public safety, and enforce laws and appropriations within a department. Transfers of regulations. Henry County has contracted with Wachovia appropriations between departments and the Bank to provide banking services, and Merrill Lynch to appropriation of additional funds, however, require the provide investment services. All operating funds of the special approval of the Board of Commissioners. County are carried in interest-bearing checking accounts, which bear interest at a special rate for non- profit and government entities. The County does not COUNTY FUNDS currently incur financial fees or charges for banking This report includes all funds of the County, as services. In relation to our prudent financial well as those component units that have been management, Henry County maintains an Aa1 credit determined to meet the criteria for inclusion in the rating from Moody’s Investor Services and an “AA” County’s reporting entity. rating from Standard and Poors. This rating produces Henry County Water and Sewerage Authority, significant interest savings and is solid evidence of our the Henry County Health Department, the Henry County financial strength and stability. Library System, and the Henry County Development Authority are all legally separate entities that are component units of the County due to the significance BUDGET PROCESS of their operational or financial relationships with the The annual budget serves as the foundation for County. Financial information for these component units Henry County’s financial planning and control. All is reported separately from the financial information departments and agencies of Henry County are required presented for the primary government itself. Financial to submit requests for appropriation to the County information on these four entities can be found in the Manager in March each year. The County Manager uses Notes to the Financial Statement in the 2010 Henry these requests as the starting point for developing a County Comprehensive Annual Financial Report at proposed budget. The County Manager then presents www.henrycounty-ga.org/Finance. this proposed budget to the Board of Commissioners for review during the month of May. The Board of Commissioners is required to hold
34 www.henrycounty-ga.org Glossary of Terms
Appropriations: An authorization granted by the Board Fund Balance: The portion of fund revenue over of Commissioners to spend revenue for purposes expenditures available for use. specified in the appropriation act. General Fund: A fund used to account for the ordinary Assets: Items of ownership. Assets can include cash, operations of the County government that are financed stock, land, buildings, machinery, furniture, and other from taxes and other general revenue. equipment. There are several categories of Assets: Liabilities: Future spending of revenue as a result of • Capital Assets: Assets of a long-term character past transactions and other past events. Liabilities are (beyond the current year) that are intended to continue reported on a balance sheet and are divided into two to be held or used, such as land, buildings, vehicles, categories: machinery, furniture, and other equipment. • Current Liabilities: These liabilities are • Net Assets: The difference between total capital reasonably expected to be liquidated within a year. They assets and total capital liabilities. (Example: If the County usually include payables such as wages, accounts, owns a building worth $10 million, and we owe $4 taxes, and accounts payable, unearned revenue when million on it, the Net Asset of the building is $6 million.) adjusting entries, portions of long-term bonds to be paid • Restricted Assets: Assets that may not be used this year, short-term obligations, and others. for normal operating purposes because of the • Long-term Liabilities: These liabilities are requirements of regulatory authorities, provisions in reasonably expected not to be liquidated within a year. bond contracts, or other legal agreements, but do not They usually include long-term bonds, notes payable, have to be accounted for in a separate fund. long-term leases, pension obligations, and long-term • Unrestricted Assets: Funds established to product warranties. In these liabilities, the County has account for assets or resources that may be utilized at to pay after a fixed period of time, usually longer than the discretion of the Board of Commissioners. a year.
Bonds: A certificate of debt issued by the County Revenue: Financial resources other than from interfund government guaranteeing payment of the original transfers and debt issue proceeds. Henry County investment plus interest by a specified future date. receives Revenue through property taxes, sales and other taxes, licenses and permits, grants, fines and Budget: A plan of financial operation using an estimate forfeitures, charges for service, administration fees, of proposed expenditures for a given period of time (a investment income, and miscellaneous sources. fiscal year) and an estimate of proposed revenue to finance the expenditures.
Expenditures: Government purchases which can be financed by revenue and/or government borrowing, ie. bonds, tax anticipation notes, etc.
2010 POPULAR ANNUAL FINANCIAL REPORT 35 Henry County Board of Commissioners 140 Henry Parkway • McDonough, GA 30253 (770) 288-6000 • www.henrycounty-ga.org Design by Henry County Communications