2016 FINANCIAL OVERVIEW Kent County, Michigan Daryl J. Delabbio County Administrator/Controller Stephen W. Duarte Fiscal Services Director Kenneth D. Parrish County Treasurer OFFICE OF THE ADMINISTRATOR Kent County Administration Building 300 Monroe Avenue, N.W. Grand Rapids, Michigan 49503-2206 Phone: (616) 336 - 3512 • Fax: (616) 336 - 2523 Administrator’s Office 300 Monroe Avenue NW Grand Rapids, MI 49503-2221 P: 616.632.7570 April 11, 2005 F: 616.632.7565 Moody’s Investors Service Attn: Jonathan North March 31, 2016 99 Church Street New York, NY 10007 RE: 2005 Kent County Financial Overview The Honorable Board of Commissioners The following document presents a “FinancialKent County Overview” Administration for Kent Building County. The information contained herein provides significant 300economic, Monroe demographic Avenue NW and financial information in summary format. It will provide the readerGrand Rapids,with a comprehensiveMI 49503-2221 report demonstrating the financial strength and stability of Kent County government. The document is intended to serve the informationRE: 2016 Kent needs County of individuals Financial Overview and organizations with a financial interest in Kent County including: The following document presents a “Financial Overview” for Kent County. The information contained • Retail Bond Holders/Institutionalherein Investors/Rating summarizes significant Agencies economic, demographic and financial information. It will provide the reader • County Elected Officials. with a comprehensive report demonstrating the financial strength and sustainability of Kent County’s • The Citizens of Kent County. governmental organization. • Businesses doing business or considering locating new business in Kent County. The document is intended to serve the information needs of individuals and organizations with a financial This is an annual publication, the preparationinterest inof Kentwhich County is a cooperative including: effort of the County Treasurer, Human Resources and Fiscal Services staff. This document continues to demonstrate the County’s adherence to conservative fiscal principles and strong management oversight. Retail Bond Holders/Institutional Investors/Rating Agencies; Respectfully submitted, County Elected Officials; The Citizens of Kent County; and Businesses doing business or considering locating new business in Kent County. This is an annual publication, the preparation of which is a cooperative effort of the County Treasurer, Daryl J. Delabbio Human Resources and Fiscal Services staff. This document continues to demonstrate the County’s County Administrator/Controller adherence to conservative fiscal principles and strong management oversight. Respectfully submitted, Daryl J. Delabbio County Administrator/Controller County Administration Building/Calder Plaza CONTENTS 6 Government 8 Economic Profile 13 Taxation 19 State Revenues 20 Debt Position 28 Cash Management 34 Labor Contracts 36 General Fund 40 Delinquent Tax Anticipation Notes (DTAN) Fund 41 Capital Improvement Program (CIP) Fund 42 Aeronautics Fund 46 Public Works Solid Waste Fund 47 Correction and Detention Fund 48 Lodging Excise Tax Fund 49 Fiscal Policies 61 Recent News Board of Commissioners Jim Saalfeld Matt Kallman Chair District 9 District 11 GOVERNMENT Dan Koorndyk Shana Shroll District 18 Vice-Chair Elected Officers District 19 Harold Mast District 12 Carol Hennessy Minority Party Vice-Chair Roger Morgan Mary Hollinrake District 14 District 3 Clerk/Register of Deeds Tom Antor Stan Ponstein District 2 District 7 William Byl Drain Commissioner Mandy Bolter Stan Stek District 5 District 6 Emily Brieve William Forsyth Jim Talen Prosecuting Attorney District 10 District 15 David Bulkowski Richard Vander Molen District 16 District 13 Kenneth Parrish Treasurer Candace Chivis Ted Vonk District 17 District 1 Lawrence Stelma Diane Jones Harold Voorhees Sheriff District 4 District 8 Executive Staff Professional Services Daryl Delabbio Administrator/Controller Auditor: Rehmann Robson & Company Stephen Duarte Grand Rapids, Michigan Fiscal Services Director Marvin Van Nortwick Note Counsel: Budget Director Dickinson Wright PLLC Tom Dempsey Detroit and Grand Rapids, Michigan Corporate Counsel 6 2016 Kent County Financial Overview GOVERNMENT O rganization Chart CiƟ zens of Kent County Clerk/Register Drain Board of Circuit Judge District Judge Treasurer Probate Judge Sheriff of Deeds Commissioner Commissioners Prosecutor Clerk of the Admin & Criminal Circuit Courts District Court Finance & Legisla� ve Execu� ve Probate Court Court Physical Res & Human Res Commi� ee of Road Patrol Division Commi� ee Commi� ee the Board Court Correc� onal Elec� ons DC Proba� on Services Facility Civil Division Dept of Aeronau� cs Register of Fire Commission CC Proba� on Aeronau� cs Board Family Law Deeds Division Dept of Mental Health Court DHS Board network180 Vitals Human Svcs Auth Board Reporters Friend of the Kent Dist District Library Public Works Dept of Court Library Board Board Public Works Elected Offi cials Community Housing Housing Comm Road Comm Road Correc� ons Commission Board Board Commission County Board of Administrator/ Com Appointed Controller County & State Appointed Community Coop Corporate Exec Asst to Equaliza� on Dept Head Develop Extension Counsel the Board Appointed Facili� es Fiscal Health Human Informa� on State Mgmt Services Department Resources Technology Appointed Veterans’ Reports to Parks Aff airs County & MSU 7 www.accesskent.com Commercial/Industrial Base The Grand Rapids-Wyoming Metropolitan Statistical Area (MSA), of which Kent County is the hub, has been one of the fastest growing regions of the United States. Numerous expansions, renovations, constructions, modernizations and developments have been completed, are in the process of being completed or are in the planning stages. Among the factors which have encouraged major projects and have attracted numerous firms from outside the area are: a strong but highly diversified base of industries, an excellent work force, educational opportunities, excellent employer/employee relations, good location and transportation facilities, ECONOMIC PROFILE ECONOMIC utilities and, possibly the most important, quality of life. Convention Facilities In 2000, the City of Grand Rapids and the County jointly created the Grand Rapids -- Kent County Convention/ Arena Authority. The function of this independent authority is to own and operate the DeVos Place Convention Center and the Van Andel Arena. The Van Andel Arena was completed in 1996, has a seating capacity of over 12,000, and is used for professional hockey games, concerts, family shows and other entertainment events. The convention center features a 162,000 square foot, column free exhibit hall, 40,000 square foot ballroom and 26 individual meeting rooms (32,000 square feet). Twelve spacious loading docks (with a wash bay and marshalling area), Billboard recently reported that the Van allow for easy access into the exhibit hall. In addition, DeVos Andel Arena grossed nearly $8 million Place features a 2,404 seat performing arts theater with two in the first half of 2015, second-highest independent loading docks and one loading ramp. Home to the in the United States for venues with a Grand Rapids Symphony, Grand Rapids Ballet Company, Opera capacity of 10,001 to 15,000. According Grand Rapids and Broadway Grand Rapids, it can also serve to Billboard, that’s good enough to be as the perfect space for a general session or keynote address. ranked 9th worldwide for buildings of These facilities have enabled several large events to take place, that size. with bookings made for local, state, regional and national conferences. Regional Government Coordination The Grand Valley Metropolitan Council (“Metro Council”) was formed in 1990 and has a membership of 35 local governments including the County. Created by State enabling legislation, the Metro Council is coordinating the efforts of its members to provide services while eliminating duplication. It is also engaged in issues that have no boundaries such as clean air, water and sewers, and transportation. The Metro Council also is working with its area legislators to develop a regional presence at the State capital. Its legislative committee has broad community participation, which includes the Chamber of Commerce, Kent Intermediate School District and environmental interests. The Metro Council’s Water and Sewer Committee has members from Ottawa and Kent Counties, the private and environmental sectors and water and sewer providers. The Metro Council routinely works with a range of partners to accomplish its mission. Key partnerships are with Grand Valley State University’s Office for Economic Expansion and Water Resources Institute, the Michigan Municipal League, and the Michigan Departments of Transportation, Environmental Quality and Commerce. Transportation The County is well serviced by all forms of transportation. Interstate highways 96 and 196 and US 131 all traverse the County and connect to the national highway system. Driving to Grand Rapids is an easy trip from anywhere in the upper Midwest. There are three airfields in the County. The Gerald R. Ford International Airport, ranked by Airports Council International as one of the top five best airports in the world (by size) is a major commercial airport located 13 miles southeast of downtown Grand Rapids. Smaller non-commercial airfields are located north of Grand Rapids near the City of Sparta and east of Grand Rapids near the City of