P O P U L A R

A N N U A L

F I N A N C I A L

R E P O For the Year Ended December 31, Issued by Jon A. Slater, Jr. R Fairfield County T About the Cover – The Evalan Hansel Nature Preserve, Cabin, and Zane’s Trace Well

In 2001, Pleasant Township resident Evalan Hansel donated her home, barn, and 26 acres to the Fairfield County Historical Parks Commission for the preservation of land and wildlife. Evalan would stop at local grocery stores where she would gather items from their produce and bakery shops to feed the wild animals living on her land. Although wild, they were Evalan’s pets and she would feed them from her hand. Evalan also pioneered the concept of the “bookmobile,” at first driving her own car and later a UPS style vehicle. She would watch for a red bandana tied to the mailbox or a post, stopping to allow those without transportation to the library, an opportunity to carry on the important pastime of reading.

An early story and a half log house overlooks the property from a small hill. The structure, believed to be the first doctor’s office in Fairfield County, or at least Pleasant Township, was moved to the site in 1966. A life-long resident remarked that her great, great grandfather was born on the cabin door! When looking at an interior photo of the door it may easily be seen how this was possible. The door was held in place by two large wooden hinges pinned together. The doctor was known to bring in two saw horses stored on the porch, pull the two pins on the hinges of the door, and have a ready-made gurney for any emergency, even childbirth.

Between the log house and the barn is what appears to be a “wishing well.” On closer inspection, it is obvious that this is a well but not for wishing. The well is 84’ deep, hand-dug, stone-lined, and was built to supply thirsty travelers as they journeyed through Fairfield County on Ebenezer Zane’s legacy: Zane’s Trace. In 1796, Colonel Zane petitioned Congress to build a road, initially more of a trail, traveling from Wheeling, to Limestone (now Maysville), , traveling due west until New Lancaster where it would turn south. Such a road would encourage settlement of the . Aside from expenses, Zane’s only fee was a square mile of land wherever the Zane Trace crossed a river, the Muskingum at Zanesville; the Hocking at New Lancaster (still known today as Zane’s Square or Square 13); and the Scioto at Chillicothe, soon to become the capital of . Traveling more than 230 miles from Virginia through Ohio to Kentucky, remnants of Zane’s Trace may still be found today along with this rare, stone-lined well.

You are welcome to visit Evalan Hansel’s Nature Preserve along with many others as you explore Fairfield County’s heritage. For more photographs and more information visit our website at www.historicalparks.org, check our Facebook page, or call the office at 740-681-7249.

Photos are courtesy of the Historical Parks Commission.

Additional copies of this report may be obtained from: Fairfield County Auditor’s Office 210 E. Main Street Lancaster, Ohio 43130

Phone requests can be made at (740) 652-7020 or (740) 652-7029 (fax).

A PDF version of this report is available online at: http://www.co.fairfield.oh.us/auditor/Annual-finance-reports/Financial_Reports_lead_page.htm TABLE OF CONTENTS

Contents / Awards ...... 1 Charts Letter to Citizens of Fairfield County ...... 2 Revenues for 2016 ...... 7 Fairfield County Government ...... 3 Expenses for 2016 ...... 8 Government Structure ...... 4 Revenues and Expenses Trend Analysis ...... 9 Financial Overview ...... 5 Direct Expenses and Program Revenues ...... 9 Financial Activity Statement ...... 6 Total Net Position Trend Analysis ...... 11 Where the Money Came From ...... 7 Debt Outstanding Trend Analysis ...... 12 Where the Money Was Spent ...... 8 The County’s Long-Term Debt ...... 13 County Program Activities ...... 9 Breakdown of Tax Collections in 2016 ...... 14 Financial Position Statement ...... 10 Property Values and Tax Collections ...... 15 Summary of Capital Assets ...... 11 County Population ...... 17 The County’s Debt Instruments and County Employee Workforce ...... 17 Summary of Debt Obligations ...... 12 Unemployment Rate Trend ...... 18 Tax Revenues...... 14 Unemployment Rates for Ten Largest Taxpayers in 2016 ...... 14 Comparable Counties ...... 18 A Brief History of Fairfield County ...... 16 Principal Employers ...... 16 Major Goals and Accomplishments ...... 19

How to Contact Us ...... 20 AWARDS Fairfield County participates in various awards programs sponsored by the Government Finance Officer’s Association (GFOA). Each individual program has certain requirements that must be met in order to qualify. During fiscal year 2016, the County received the following financial awards:

Certificate of Achievement for Excellence in Financial Reporting Given for outstanding preparation of the Comprehensive Annual Financial Report The County received this award in 2016 for the 27th consecutive year.

Award for Outstanding Achievement in Popular Annual Financial Reporting Given for outstanding preparation of the Popular Annual Financial Report The County received this award in 2016 for the 15th consecutive year.

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Citizens of Fairfield County

I am pleased to present the Fairfield County, Ohio Popular Annual Financial Report (PAFR), for the year ended December 31, 2016. This report provides a brief analysis of the sources of County revenues and where those dollars are spent, the County’s financial position, an overview of local economic trends, and major goals and accomplishments. Above all, it is designed to present a more readable and understandable financial report.

The information in this report was drawn from the financial information appearing in the 2016 Fairfield County Comprehensive Annual Financial Report (CAFR). The CAFR was prepared in conformance with generally accepted accounting principles (GAAP) and was audited by the Ohio Auditor of State, receiving an unmodified opinion. An unmodified opinion means that the general purpose financial statements of the County are fairly presented in all material respects. The CAFR consists of 291 pages of detailed financial statements, notes, schedules, and reports.

The PAFR is a condensed, more user-friendly financial report intended to provide highlights of the primary government from the County’s CAFR. The CAFR contains information from all Fairfield County funds and is designed to bring greater awareness of the financial condition of our County to its citizens and other interested parties.

This report is unaudited and is presented on a non-GAAP basis. The major differences between GAAP and non-GAAP reporting deals with not including component units and in the presentation of segregated funds, as well as full disclosure of all material financial and non-financial events in notes to the financial statements. Individuals who desire to review GAAP basis, full disclosure financial statements should refer to the County’s CAFR, which is available from the County Auditor’s office and online at: http://www.co.fairfield.oh.us/auditor/Annual-finance-reports/Financial_Reports_lead_page.htm

The Fairfield County Popular Annual Financial Report is presented as a means of enhancing the public’s confidence in County government and the stewardship of its elected officials through easier, more reader-friendly financial reporting. As you review the following pages, I invite you to share any questions, concerns, or recommendations you may have. Please call the Fairfield County Auditor’s Office with questions, comments, or suggestions regarding this report at (740) 652- 7020.

Sincerely,

Jon A. Slater, Jr. Fairfield County Auditor

- 2 - Your Fairfield County Government

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GOVERNMENT STRUCTURE

The County government has only those powers conferred upon it by the State of Ohio Constitution and Statutes. A three-member Board of Commissioners, a County Administrator, twelve other elected officials, and various department heads govern the County. As part of the “checks and balances” system, the elected officials and department heads manage the internal operations of their respective divisions with the Board of Commissioners authorizing expenditures and serving as the budget authority, the taxing authority, and the contracting body. Each Commissioner serves a term of four years.

In addition to the County Auditor, who serves as the Chief Fiscal Officer and the Tax Assessor, there are seven elected administrative officials, each of whom operates independently as set forth by Ohio law. These officials are: Clerk of Courts, Coroner, Engineer, Prosecutor, Recorder, Sheriff, and Treasurer. All of these officials serve four- year terms. The following judges are elected on a countywide basis to oversee the County’s judicial system: two Common Pleas Court Judges, a Probate/Juvenile Court Judge, and a Domestic Relations Court Judge.

The County provides citizens with a wide range of services including the following: human and social services, health and community assistance services; civil and criminal justice system services; road, bridge, and building maintenance; water and sewer utility services; and general and administrative support services provided by the offices of the Commissioners, Auditor, Treasurer, Prosecutor, and Recorder.

- 4 - FINANCIAL OVERVIEW

The County’s financial activities are accounted for primarily in governmental activities where the focus is not profit or loss, but rather on services rendered and the cost to provide those services. The County’s business-type activities, similar to those found in the private sector, are accounted for in the Sewer, Water, and Airport Fuel Operations enterprise funds.

Revenues are monies the Program revenues include: General revenues are those County receives from a variety . Charges for services – licenses, revenues that are not classified as of sources to pay for the permits, and other fees, fines, program revenues. All taxes, even services it provides. forfeitures, and charges paid by those that are levied for a specific

the recipients of goods or services purpose, are considered general offered by County programs. revenues. . Operating (and Capital) grants, . Unrestricted grants and entitlements- contributions, and interest – grants Revenue from grants and pass- and contributions received from through monies administered by other governments, organizations, the State of Ohio that are not and individuals that are restricted restricted on their use. in some manner; investment . Unrestricted interest and earnings that are restricted to contributions- Monies earned meeting the operational or capital through the County Treasurer’s requirements of a particular investments of cash on hand not program. needed for current period services; donor contributions that

do not specify any restrictions.

Public safety- Urban redevelopment and Expenses are the amounts intergovernmental expenses are spent to provide services to the costs to assist in operating the housing-intergovernmental citizens. Fairfield, Hocking, and Athens expenses are costs to operate the Counties Council of Governments Community Development Block on Major Crimes Investigations. Legislative and executive Grant program on behalf of other expenses are the costs incurred for Public works expenses are the local governments. costs incurred by the Engineer to the County’s administrative offices, expenses are costs maintain county roads and bridges. Transportation including the Auditor, related to the Fairfield County Commissioners, Treasurer, Health expenses include services Airport. Prosecutor, and Recorder. provided by the Developmental

Disabilities Board, Dog Adoption Interest and fiscal charges Legislative and executive- expenses are interest and principal Center and Shelter, and the intergovernmental expenses are payments made for County debt. Commissioner allocations made to Alcohol, Drug Addiction and Mental Health Board. Sewer, water, and airport fuel local governments. Human services expenses are the operations expenses are the Judicial expenses are the costs of costs to operate the County’s costs of operating the Job and administrating justice through the business-type activity, providing Family Services and Veteran Fairfield County Courts system. sewer and water services to ever Services Commission departments. Public safety expenses are the growing portions of the county and costs of the Coroner, Probation, Urban redevelopment and upkeep and operation of airport fuel and Sheriff’s departments. housing expenses are the costs of tanks. the urban improvement program.

- 5 - FINANCIAL ACTIVITY STATEMENT

The Changes in Net Position Statement, traditionally known by many as the income statement, is designed to provide a record of the money received and spent by the County during the past year.

Changes in Net Position

Governmental Business-type Total Primary Activities Activities Government 2016 2015 2016 2015 2016 2015 REVENUES Program Revenues Charges for services...... $ 20,832,341 $ 19,134,681 $ 7,331,168 $ 6,923,962 $ 28,163,509 $ 26,058,643 Operating grants, contributions, and interest.... 30,741,390 32,988,798 - - 30,741,390 32,988,798 Capital grants, contributions, and interest...... 2,317,334 1,460,605 2,440,850 1,447,029 4,758,184 2,907,634 General Revenues Taxes: Property taxes...... 30,756,269 24,064,461 - - 30,756,269 24,064,461 Real property transfer taxes...... 2,015,276 1,889,871 - - 2,015,276 1,889,871 Lodging tax...... 223,961 210,804 - - 223,961 210,804 Sales taxes...... 21,196,300 20,987,311 - - 21,196,300 20,987,311 Unrestricted grants and entitlements...... 4,030,433 4,150,472 - - 4,030,433 4,150,472 Unrestricted interest...... 467,370 845,906 8,066 2,963 475,436 848,869 Unrestricted Contributions...... 200 38,071 - - 200 38,071 Gain on sale of capital assets...... - - - 5,267 0 5,267 Other...... 1,102,121 996,526 18,794 20,841 1,120,915 1,017,367 Total Revenues...... 113,682,995 106,767,506 9,798,878 8,400,062 123,481,873 115,167,568

EXPENSES General government: Legislative and executive...... 15,506,679 13,675,852 - - 15,506,679 13,675,852 Intergovernmental...... 1,927,937 1,890,535 - - 1,927,937 1,890,535 Judicial...... 7,499,166 6,633,915 - - 7,499,166 6,633,915 Public safety...... 19,063,913 18,203,146 - - 19,063,913 18,203,146 Intergovernmental...... 287,873 115,426 - - 287,873 115,426 Public works...... 12,777,181 11,090,804 - - 12,777,181 11,090,804 Health...... 23,757,315 22,489,901 - - 23,757,315 22,489,901 Human services...... 26,632,756 24,695,755 - - 26,632,756 24,695,755 Urban redevelopment and housing...... 389,390 207,241 - - 389,390 207,241 Intergovernmental...... 550,295 305,800 - - 550,295 305,800 Transportation...... 483,836 420,936 - - 483,836 420,936 Interest and fiscal charges...... 1,527,436 1,490,379 - - 1,527,436 1,490,379 Business-type activities: Sewer...... - - 3,488,370 3,263,146 3,488,370 3,263,146 Water...... - - 2,905,427 2,962,655 2,905,427 2,962,655 Airport fuel operations...... - - 296,091 358,770 296,091 358,770 Total Expenses...... 110,403,777 101,219,690 6,689,888 6,584,571 117,093,665 107,804,261 Increase in net position...... 3,279,218 5,547,816 3,108,990 1,815,491 6,388,208 7,363,307

Net position - beginning of year...... 208,926,359 203,378,543 47,574,306 45,758,815 256,500,665 249,137,358 Net position - end of year...... $ 212,205,577 $ 208,926,359 $ 50,683,296 $ 47,574,306 $ 262,888,873 $ 256,500,665

Net position for governmental activities increased by $3,279,218 in 2016. This is attributed mainly to increases in charges for services, property taxes, and capital grants, contributions, and interest which were offset by decreases in operating grants, contributions, and interest revenues, increases in legislative and executive, judicial, and public works expenses. Net position for business-type activities increased $3,108,990 in 2016 due to revenues exceeding expenses. The business-type activities expenses have remained fairly consistent in 2015 and 2016.

- 6 - WHERE THE MONEY CAME FROM ...... Fairfield County Revenues for 2016 $123,481,873

The primary government revenues presented here is reported in the 2016 CAFR’s government-wide statement of activities. The chart depicts revenues by source. The table below summarizes revenues by source, and shows the percentage increases (decreases) in relation to the prior year.

2012 2013 2014 2015 2016 % CHANGE REVENUES ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL FROM 2015

Taxes $ 42,138,953 $ 43,346,017 $ 43,695,637 $ 47,152,447 54,191,806 14.93 % Grants and contributions 36,034,129 37,158,810 36,266,287 38,599,875 37,089,157 (3.91) % Charges for Services 18,498,406 17,551,713 18,943,949 19,134,681 20,832,341 8.87 % Water and Sewer 6,593,897 6,883,244 8,439,940 8,028,833 9,485,766 18.15 % Miscellaneous 459,007 396,788 1,031,423 1,034,597 1,102,321 6.55 % Interest 871,167 1,455,540 376,617 845,906 467,370 (44.75) % Airport Fuel Operations 372,397 383,476 365,518 371,229 313,112 (15.66) % $ 104,967,956 $ 107,175,588 $ 109,119,371 $ 115,167,568 $ 123,481,873 7.22 %

Fairfield County revenue increased by $8,314,305 or 7.22 percent from 2015. This is mainly due to increases in taxes, charges for services, and water and sewer revenues. The increase in taxes is attributed to an increase in property taxes, sales taxes, and real property transfer taxes. The increase in charges for services is due to fees charged for public safety services, recorder fees, election expense fees, reimbursement from Secretary of State for Board of Election expenses, shared cost contracts reimbursement, certificate of title fees, and engineer drainage maintenance fees. These increases were offset by a decrease in grants and contributions due to the County receiving less State and Federal grants for human services and health programs. Water and sewer revenues increased due to increase in capital contributions and charges for services provided to customers.

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WHERE THE MONEY WAS SPENT ......

Fairfield County Expenses for 2016 $117,093,665

The primary government expenses presented here is reported in the 2016 CAFR’s government-wide statement of activities. The chart depicts expenses by function. The table below shows expenses by function, and the percentage increases (decreases) in relation to the prior year.

2012 2013 2014 2015 2016 % CHANGE EXPENSES ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL FROM 2015

Human Services $ 23,307,695 $ 22,065,507 $ 23,684,836 $ 24,695,755 $ 26,632,756 7.84 % Health 22,460,547 20,795,110 22,294,998 22,489,901 23,757,315 5.64 % Public Safety 16,093,483 17,294,959 17,489,204 18,203,146 19,063,913 4.73 % Legislative and Executive 11,753,812 11,995,690 13,242,260 13,675,852 15,506,679 13.39 % Public Works 12,017,653 12,142,546 12,034,342 11,090,804 12,777,181 15.21 % Judicial 7,027,420 8,161,601 6,587,813 6,633,915 7,499,166 13.04 % Water and Sewer 6,630,744 6,017,609 6,211,400 6,225,801 6,393,797 2.70 % Legislative and Executive-Intergovernmental 1,523,966 1,574,482 1,675,531 1,890,535 1,927,937 1.98 % Debt Service - Interest and Fiscal Charges 881,531 611,684 638,308 1,490,379 1,527,436 2.49 % Transportation 281,300 461,912 353,261 420,936 483,836 14.94 % Airport Fuel Operations 393,174 381,829 360,847 358,770 296,091 (17.47) % Urban Redevelopment and Housing-Intergovernmental 496,220 376,227 321,851 305,800 550,295 79.95 % Urban Redevelopment and Housing 955,113 1,124,125 854,375 207,241 389,390 87.89 % Public Safety-Intergovernmental 206,895 225,248 236,049 115,426 287,873 149.40 % $ 104,029,553 $ 103,228,529 $ 105,985,075 $ 107,804,261 $ 117,093,665 8.62 %

Fairfield County expenses increased by $9,289,404 or 8.62 percent from 2015 mainly due to increases in human services and health expenses resulting from the County’s proportionate share of the net pension liability which largely affects these expense lines due to the number of employees in these service areas. Increases in public safety, legislative and executive, public works, and judicial expenses are primarily due to increase in contract services, salaries, and fringe benefits.

- 8 - REVENUES AND EXPENSES TREND ANALYSIS Past Five Years

COUNTY PROGRAM ACTIVITIES This chart compares direct expenses and program revenues for each major function of the County. Direct expenses are specifically associated with a service, program, or department and therefore clearly identifiable to a particular function. Program revenues include (1) charges paid by the recipient of the goods or services and (2) grants, contributions, and interest that are restricted to meeting the operational or capital requirements of a particular program. The comparison of direct expenses with program revenues identifies the extent to which each governmental function is self-financing or else draws from the general revenues of the County. The County’s human services, health, public safety, and legislative and executive, expenses accounted for the majority of costs not covered by program revenues. The health excess costs were funded with the County’s tax revenues and the public safety, human services, and legislative and executive excess costs were funded with the County’s general revenues. Direct Expenses and Program Revenues (amounts in millions)

- 9 - FINANCIAL POSITION STATEMENT

The Statement of Net Position, traditionally known by many as the balance sheet, is designed to provide a picture of the major components of the primary government’s financial position at the end of the year.

Statement of Net Position

Governmental Business-type Activities Activities Total 2016 2015 2016 2015 2016 2015 Assets Cash...... $ 75,098,475 $ 86,393,294 $ 14,245,081 $ 15,311,986 $ 89,343,556 $ 101,705,280 Receivables...... 55,122,526 57,443,384 1,348,150 1,176,587 56,470,676 58,619,971 Capital assets...... 200,726,077 177,232,235 55,773,644 53,257,724 256,499,721 230,489,959 Other assets...... 2,317,029 3,238,773 228,590 286,959 2,545,619 3,525,732 Total Assets...... 333,264,107 324,307,686 71,595,465 70,033,256 404,859,572 394,340,942 Deferred Outflows of Resources Deferred Charge on Refunding...... 629,550 737,044 904,033 1,027,995 1,533,583 1,765,039 Pension...... 19,926,823 6,097,158 438,700 132,440 20,365,523 6,229,598 Total Deferred Outflows of Resources...... 20,556,373 6,834,202 1,342,733 1,160,435 21,899,106 7,994,637 Liabilities Accrued wages and benefits...... 2,177,227 1,916,222 65,581 55,646 2,242,808 1,971,868 Payables...... 9,095,633 4,762,927 506,713 300,723 9,602,346 5,063,650 Due to other governments...... 1,302,979 1,299,593 63,768 329,823 1,366,747 1,629,416 Bonds, loans, leases payable, pension and compensated absences...... 95,884,565 81,469,768 21,205,400 22,604,711 117,089,965 104,074,479 Other liabilities...... 228,474 48,236 392,386 315,722 620,860 363,958 Total Liabilities...... 108,688,878 89,496,746 22,233,848 23,606,625 130,922,726 113,103,371 Deferred Inflows of Resources Property Taxes...... 31,989,098 32,029,185 - - 31,989,098 32,029,185 Pension...... 936,927 689,598 21,054 12,760 957,981 702,358 Total Deferred Inflows of Resources...... 32,926,025 32,718,783 21,054 12,760 32,947,079 32,731,543 Net Position - excess of Assets and Deferred Outflows of Resources over Liabilities and Deferred Inflows of Resources...... $ 212,205,577 $ 208,926,359 $ 50,683,296 $ 47,574,306 $ 262,888,873 $ 256,500,665

Assets are those items owned by the County that will provide Liabilities are those items that the County owes to a benefit in the future. individuals, companies, other governments, and lenders.

Cash is the amount of physical cash held by the County in Accrued wages and benefits are those payments that the checking accounts and on hand for purposes of paying County owes to employees for salaries, the associated benefits, expenses. and accrued leave.

Receivables represent the amounts that are owed to the Payables are those payments that the County owes to County and are expected to be paid over the course of the next companies or individuals who supply services or goods to the twelve months. County.

Capital assets represents furniture, equipment, vehicles, Due to other governments are primarily the amounts land, buildings, water and sewer lines, and the County’s roads owed to other governments outside the County for goods or and bridges infrastructure that provide for an economic benefit services provided by them to the County. to the County of more than one year. Bonds, loans, leases payable, pension, and Deferred Outflows of Resources represent a compensated absences are the amounts owed for the consumption of net position that applies to a future period and issuance of debt, net pension liability, and compensation of will not be recognized as an outflow of resources until then. absences on which the County still owes.

Deferred Charge on Refunding results from the Deferred Inflows of Resources represent an acquisition of difference in the carrying value of refunded debt and its net position that applies to a future period and will not be acquisition price. This amount is deferred and amortized over recognized as an inflow of resources until that time. the shorter of the life of the refunded or refunding debt. Property Taxes represent the amounts for which there is an Pension represents the differences between expected and enforceable legal claim as of December 31, 2016 but which actual experience and County contributions subsequent to the were levied to finance 2017 operations. measurement date. Pension represents the net difference between projected and actual earnings on pension plan investments and change in proportionate share.

- 10 - TOTAL NET POSITION TREND ANALYSIS

Past Five Years

Calendar year 2014 is restated due to implementing GASB 68 in 2015. Total net position represents the difference between the financial assets and deferred outflows of resources of the County and the liabilities which it must pay and deferred inflows of resources. The amount provides the net worth of the County.

SUMMARY OF CAPITAL ASSETS

Capital assets are defined as property and equipment owned by the County and purchased by each department as needed. This summary is the total dollar amount of governmental and business-type activity assets, net of depreciation, held by the County. Governmental activity capital assets increased from $177.2 million to $200.7 million, a net increase of $23.5 million in calendar year 2016. The increase is primarily due to the County jail facility construction and the purchase and receipt of donations of vehicles which were offset by an increase in current year accumulated depreciation. Business-type activity capital assets increased from $53.3 million to $55.8 million in calendar year 2016, a net increase of $2.5 million. The increase is primarily due to an increase the current year accumulated depreciation which is offset by capital contributions from developers in the form of sewer and water lines and construction in progress for various water and sewer construction projects.

SUMMARY Governmental Business-type Activities Activities 12-31-2016 12-31-2015 12-31-2016 12-31-2015 Land ...... $ 5,546,319 $ 5,681,262 $ 2,237,414 $ 2,237,414 Buildings and improvements ...... 23,759,992 23,981,991 12,237,443 12,916,731 Improvements other than buildings ...... 2,912,629 2,690,747 - - Equipment ...... 2,830,947 2,624,051 213,151 137,573 Furniture and fixtures ...... 150,126 170,425 - - Infrastructure ...... 134,816,610 134,946,150 37,179,171 36,593,235 Vehicles ...... 1,776,581 1,567,137 157,923 143,820 Construction in progress ...... 28,932,873 5,570,472 3,748,542 1,228,951 $ 200,726,077 $ 177,232,235 $ 55,773,644 $ 53,257,724

- 11 - THE COUNTY’S DEBT INSTRUMENTS As of December 31, 2016

The County employs the use of several different types of debt instruments for short and long-term financing. Fairfield County’s bond credit ratings are “double-A” which demonstrates the County’s very strong creditworthiness relative to other United States municipal or tax-exempt issuers or issues. The benefits of the “double-A” rating are the County has lower interest costs when it issues debt in comparison to a less favorable bond credit rating and enables the County to get finance easily for growth and expansion of facilities.

General Obligation Bonds are long-term debt instruments that are repaid from the County’s general revenue sources. They are backed by the full faith and credit of the County.

Recovery Zone Bonds are long-term debt instruments issued to pay for a portion of the cost of the utilities department administration building. They are repaid from revenues derived by the County’s operation of the water and sewer systems. They are backed by the full faith and credit of the County.

Special Assessment Bonds are issued to pay for improvements benefiting property owners. The property owners repay the County over a period of years for the debt.

Long-Term Loans are debt instruments issued by the State of Ohio for a shared electronic document storage and retrieval system and various public works projects. The County’s General Fund and Sewer Fund, respectively, will repay the balances.

Capital Leases are contracts made by the County’s departments for the acquisition of assets such as copiers, mail machines, and so forth. The departments pay for these contracts from their annual budgets.

SUMMARY OF DEBT OBLIGATIONS For the Year Ended December 31, 2016

SUMMARY Balance at Balance at 12-31-2015 Additions Deletions 12-31-2016 General Obligation Bonds...... $ 60,609,770 $ - $ 4,008,827 $ 56,600,943 Recovery Zone Bonds...... 2,915,000 - 80,000 2,835,000 Special Assessment Bonds...... 878,676 - 87,631 791,045 Long-Term Loans...... 36,369 500,000 4,278 532,091 Capital Leases...... 550,567 16,862 194,983 372,446 $ 64,990,382 $ 516,862 $ 4,375,719 $ 61,131,525

Allocation of County Debt Percent Amount Governmental Funds 67.4% $ 41,176,643 Water and Sewer Funds (self-funded) 32.6% 19,954,882 $ 61,131,525

DEBT OUTSTANDING TREND ANALYSIS Past Five Years

Self-Funded Long-Term Debt are debt obligations whose principal and interest are payable from revenue sources for which the debt was originally issued. - 12 - THE COUNTY’S LONG-TERM DEBT As of December 31, 2016

Total Long-Term Debt — $61,131,525

General Long-Term Debt — $40,018,498

Self-Funded Long-Term Debt - $21,113,027

- 13- TAX REVENUES

During 2016, the County’s governmental activities received $55.9 million in tax revenue and $113.7 million in total revenues. Real estate property taxes account for approximately $30.7 million or 27.0 percent, real property transfer taxes approximately $2.0 million or 1.8 percent, and lodging taxes approximately $223,961 or 0.2 percent for approximately $32.9 million, or 28.9 percent, of total governmental revenues. Sales taxes, which are received from the State for vendor collections of the tax paid, provided approximately $21.2 million, or 18.6 percent, of total governmental revenues. Motor Vehicle licenses provided approximately $1.7 million or 1.5 percent of total governmental revenues.

Breakdown of Tax Collections in 2016 $55,902,808

Ten Largest Taxpayers in County in 2016

Enterprise Nature of Business Value To Be Taxed Rockies Express Pipeline LLC Natural gas utility $58,502,580 Ohio Power Company Electric utility $51,539,490 Columbia Gas Transmission Natural gas utility $40,140,920 South Central Power Gompany Electric utility $26,760,190 American Electric Power Ohio Transmission Company Electric utility $20,653,600 RVM Glimcher LLC Developer $18,557,770 Dominion Transmission Natural gas utility $7,623,490 Lancaster Midtown LLC Developer $7,288,810 Creekside Acquisition Apartments $6,936,370 Brentwood Lake Apartments Apartments $6,496,170

- 14 - PROPERTY VALUES AND TAX COLLECTIONS

Property Values for the Last Ten Years

Property Tax Collections for the Last Ten Years

With the implementation of GASB Statement No. 34 in 2003, the tax collections are presented on the accrual basis of accounting which recognizes revenue in the year for which the taxes are levied. Tangible personal property taxes were gradually phased out. The property tax collections chart for all years has been restated to reflect current tax collections and do not include homestead and rollback.

- 15 - A BRIEF HISTORY OF FAIRFIELD COUNTY

The County of Fairfield was created by proclamation of the Northwest Territory on December 9, 1800. Resident’s named the county after the area’s “fair fields.” Located in the south-central portion of Ohio, Fairfield County is adjacent to Licking, Perry, Hocking, Pickaway, and Franklin Counties. The County is predominantly rural, with less than two percent of the County’s 506 square miles consisting of urban areas.

PRINCIPAL EMPLOYERS Number Percentage of of Total County Employer Nature of Business Employees Rank Employment

Fairfield Medical Center Health Care-Hospital 2,130 1 2.93% Pickerington Schools Education 1,160 2 1.60% Anchor Hocking Manufacturing 900 3 1.24% Fairfield County Government 853 4 1.18% Lancaster City Schools Public Education 729 5 1.00% Kroger Company Grocery 650 6 0.90% City of Lancaster Government 440 7 0.61% Canal Winchester Schools Public Education 415 8 0.57% NIFCO Manufacturing 365 9 0.50% Southeastern Correctional Institution Government Jail 350 10 0.48%

Total 7,992 11.01%

Total Employment Within County 72,600

- 16 - COUNTY POPULATION

The Ohio Department of Development provided the estimates for 2007-2009 and 2011-2016. The year 2010 is an actual count from the U.S. Census Bureau.

COUNTY EMPLOYEE WORKFORCE By Function of Government

These employees are paid from revenues in the governmental funds and in the enterprise funds.

- 17 - UNEMPLOYMENT RATE TREND

Source: Ohio Labor Market Information

In 2016, the County’s unemployment rate decreased slightly from 4.3 percent to 4.2 percent. The County’s unemployment rates have been better than State and national averages. Since 2012, Fairfield County’s employment rate has seen a slight steady decrease. The County is able to attract and retain business due to a diversified workforce, infrastructure, access to transportation, and low cost of living.

UNEMPLOYMENT RATES FOR

COMPARABLE COUNTIES

Source: Office of Workforce Development, Bureau of Labor Market Information

In comparing Fairfield County’s unemployment rate to other counties, Fairfield County remains stable and lower than most counties of similar size in the State.

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MAJOR GOALS AND ACCOMPLISHMENTS

The $49 million Village of Carroll interchange opened near the end of 2016. The project includes three new traffic light intersections, four new bridge structures, new lighting, and retaining walls. The land surrounding The City of Lancaster invested $11 million in renovations the new Village of Carroll interchange has a great of the existing Columbian building to house opportunity to be developed and has seen interest. Municipal Court operations. The newly relocated Municipal Court opened in April 2016. The three-story building includes a courtroom and office for three judges. Also located in the building are the clerk of court, city prosecutor, court administrators, and the probation department.

Fairfield Medical Center (FMC) broke ground on a new $31 million dollar off-campus health and wellness complex during fourth quarter of 2016. The 85,000 square-foot complex will offer emergency, health and

Lancaster City School District completed the construction wellness, diagnostic, rehabilitative, laboratory and of the new Tallmadge Elementary school ( a b o v e ) in women’s services, as well as a retail pharmacy and time for the 2016-2017 school year and Medill childcare. Elementary (below) later in 2016. The new elementary schools include state-of-the-art labs and spaces to encourage small-group learning.

Construction of a $2.4 million, 50,400 square-foot building with pre-cast concrete walls and 28 foot ceilings situated on 6.6 acres of land in Rock Mill Industrial Park was completed during mid-year 2016. The completion of the building has resulted in increases in industrial site visits and leads increased dramatically.

- 19 - HOW TO CONTACT US December 31, 2016

Fairfield County Website https://www.co.fairfield.oh.us

ELECTED OFFICIALS PRINCIPAL APPOINTED OFFICIALS AND DEPARTMENT HEADS

Board of Commissioners County Administrator Steven A. Davis ...... (740) 652-7090 Carri Brown ...... (740) 652-7090

Mike Kiger ...... (740) 652-7090 David Levacy ...... (740) 652-7090 Human Resources Director Jeff Porter ...... (740) 652-7893 Auditor Jon A. Slater, Jr...... (740) 652-7020 Board of Elections Director Susan L. Bloom ...... (740) 652-7000 Clerk of Courts Branden Meyer ...... (740) 652-7388 Facilities Operations Manager Dennis Keller ...... (740) 652-7940 Coroner Dr. Thomas Vajen ...... (740) 652-2865 Dog Adoption Center and Shelter Warden Todd McCullough ...... (740) 652-7180 Engineer Jeremiah Upp ...... (740) 652-2300 Utilities Director Tony Vogel ...... (740) 652-7140 Prosecutor Gregg Marx ...... (740) 652-7560 Department of Job and Family Services Director Recorder Aundrea Cordle ...... (740) 652-7890 Gene Wood ...... (740) 652-7100 Alcohol, Drug Addiction and Sheriff Mental Health Board Director Dave Phalen...... (740) 652-7900 Rhonda Myers ...... (740) 654-0829 Treasurer Developmental Disabilities Board James N. Bahnsen...... (740) 652-7140 Superintendent Court of Common Pleas: John Pekar ...... (740) 652-7220 General Emergency Management Director Judge Richard Berens ...... (740) 652-7428 Jon Kochis ...... (740) 652-7960 Judge David A. Trimmer ...... (740) 652-7429 Economic Development Director Court of Common Pleas: Richard Szabrak ...... (740) 652-7162 Probate and Juvenile Judge Terre L. Vandervoort ...... (740) 652-7460 Information Technology Administrator Randy Carter ...... (740) 652-7075 Court of Common Pleas: Domestic Relations Geographical Information Systems Judge Laura Smith ...... (740) 652-7440 Administrator David Burgei ...... (740) 652-7055

Veteran Services Commission Director Park Russell ...... (740) 652-7921

Fairfield County Airport Authority President Glenn Burns ...... (740) 654-7001 - 20 -