About the PAFR HENRY COUNTY GEORGIA

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2 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 Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, Just like many governments and retail businesses do, Henry County runs its budget on a fiscal year, rather than a calendar year. This is so we can close the accounts during a slower time of the year than December, when property tax is being received and sales tax receipts are higher due to holiday shopping. The U.S. Government and State of Georgia run on a fiscal year of October 1 to September 30. Henry County chooses to run our fiscal year from July 1 to June 30, along with the majority of other counties and municipalities in Georgia. This report deals with the fiscal year that ran from July 1, 2017 to June 30, 2018, and is known as FY2018. The purpose of this Popular Annual Financial Report is to summarize and simplify information contained in the Comprehensive Annual Financial Report (CAFR) of Henry County, which is due six months after the close of the fiscal year. The County s 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 Much of the information in the CAFR is 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. Therefore twelve years ago, Henry County began issuing simplified financial reports, commonly referred to as Popular Annual Financial Reports (PAFR). These reports are intended to better inform the public about their government s financial condition, without excessive detail. In fact, dating back to 2006, Henry County has won the Award for Outstanding Achievement in Popular Annual Financial Reporting each year since its first PAFR submission. This PAFR, which has been generated internally by the Henry County Financial Services Division and the Communications Department, summarizes and explains the information contained in the CAFR for FY2018, along with other information on the County s finances, in easily understood terms. The PAFR is not obligated to be audited under GAAP rules, however it does comply. Inside this year s PAFR, you will find general information about your County and your County government, highlights from different government departments showing how some of your money was spent this fiscal year, how well your County government did this year, and finally, some accounting definitions to help you understand the charts and graphs located throughout this report. You may access this document, along with the Comprehensive Annual Financial Report, which contains a detailed financial breakdown, on the Henry County website at You may also obtain a hard copy via the Finance office located in the County Administration building at, McDonough, GA. 2 HENRY COUNTY GEORGIA

3 About the Popular Annual Financial Report Organizational Chart Henry County Board of Commissioners History / Location / Maps Henry County Quick Facts Services Provided General Fund Revenues General Fund Expenditures Statement of Net Position Statement of Activities General Fund / Fund Balance Where Your Property Tax Dollars Go Local Option Sales Tax SPLOST IV Outstanding Achievements in Financial Reporting Glossary of Terms Contact Information

4 Organizational Chart The governing authority of Henry County is a Board of Commissioners consisting of five members elected by district and a Chairman elected at-large. The commissioners serve on a part-time basis and are elected to staggered terms of four years. The commissioners are responsible, among other things, for passing ordinances, adopting the budget, establishing tax rates, appointing committees and hiring those employees shown in the above chart reporting directly to the Board of Commissioners. The County Manager is responsible for the administration of all the affairs of the County, including offering positions of classified employment, as well as appointing heads of various departments. 4 HENRY COUNTY GEORGIA

5 2018 POPULAR ANNUAL FINANCIAL REPORT Board of Commissioners June Wood CHAIR Gary Barham DISTRICT III Johnny Wilson DISTRICT I Blake Prince DISTRICT IV Dee Clemmons DISTRICT II Bruce B. Holmes DISTRICT V 5

6 History / Location / Maps Chair: District I: District II: District III: District IV: District V: June Wood Johnny Wilson Dee Clemmons Gary Barham Blake Prince Bruce Holmes Henry County was formed in 1821 from Creek Indian lands and was named after the American patriot Patrick Henry to whom the slogan give me liberty, or give me death is attributed. Georgia s 50th county is located approximately 25 miles southeast of the City of Atlanta, and is considered part of the metropolitan Atlanta area. Upon its founding Henry County was much larger than it is today encompassing most of the present day Metropolitan area. The state legislature later divided the County into Butts, Clayton, DeKalb, Fulton, Newton and Spalding counties and large portions of present day Rockdale and Fayette counties. Henry County is strategically located along I-75 with a total of seven interchanges within its borders. With a low cost of living, temperate climate and easy access to Atlanta, Henry County provides all the conveniences of a large city, in a small town atmosphere. State and national economic indicators place Henry County in an enviable position as one of the nation s fastest-growing communities, and in fact, between 2000 and 2006, Henry County was ranked the 2nd fastest-growing county in Georgia, and the 8th fastest-growing county in the nation. 6 HENRY COUNTY GEORGIA

7 2018 POPULAR ANNUAL FINANCIAL REPORT Henry County Quick Facts Form of Government: Board of Commissioners / Chair Person / County Manager Governing Body: Municipalities: 5 Commissioners elected by district and 1 Chairman elected at-large for 4 year terms McDonough (County seat), Stockbridge, Locust Grove, and Hampton Population (2018 estimate): 234,800 Population Rank in Georgia: Number of Households ( ): 72,697 Median Household Income ( ): 64,752 Median Age (2018): 36.5 Area (square miles): 322 Area Rank in Georgia: 93rd out of 159 Acres of Parks: 1283 Operating General Fund Budget (FY18): $154,756,468 Number of Employees: 1696 FY18 Operating Mill Levy (County): FY18 Total Mill Levy (State, County, Cities, and Schools): FY18 Sales and Use Tax Rate: 7% Unemployment Rate: 3.5% 8th Top Employers in Henry County Employer # of Employees Type of Business Industry Henry County Schools 4953 Public School System Education Henry County Government 1696 County Government Government Luxottica Retail Group 1600 Eyeware Retail Piedmont Henry 1453 Community Hospital Medical WalMart Supercenter 1341 Grocery/Department Store Retail PVH 800 Apparel Logistics Home Depot DFC # Household Products Logistics Georgia Power Company 550 Customer Care Center Professional Services Federal Aviation Administration 500 Air Traffic Control Center Aviation TSYS 250 Credit Card Processor Merchant 7

8 Services Provided Henry County s ever-changing demographics and growing population is served by approximately 1696 employees spanning a variety of departments and divisions. Some of these departments and the services they provided in fiscal year 2018 are highlighted in the following pages. Airport: In FY17, the name was changed from Henry County Airport to Atlanta Speedway Airport Continued Phase II the of Runway Extension and Relocation of Mt. Pleasant Road Runway is currently 5,505 ft. long and 100 ft. wide Renovations and improvements to the Airport are funded almost entirely by the FAA (95%) and GDOT (5%) Community Development Block Grant (CDBG): Utilized a total of $1,129,305 of Community Development Block Grant (CDBG) funds throughout the year Rehabilitated 26 owner occupied properties Assisted the McDonough Housing Authority with improvements to rental units Completed 3 public facility improvement projects Aided in 5 Public Service activities Animal Control: Housed 3,786 animals during the year. Responded to 4,115 calls for Animal Control Service Spay/neutered approximately 500 dogs and cats Microchipped 893 pets in the community Connecting Henry: Provides the SWAG GED program (Students Working to Achieve Greatness) 27 students earned their GED 47 participated in internships with local businesses Community Cares Toy Shop Provided toys, games, and books to 457 families / 956 children with the help of 150 volunteers. Benevolence Assistance families / $30,555 Community Collaborative 5 meetings 76 (average) attendees 307 active members Code Enforcement: Answered 4,301 complaints Issued 2,849 warnings and 395 citations for code violations Removed 870 signs from County right-of-ways 8 HENRY COUNTY GEORGIA

9 Fire Department: There are currently 16 Fire Stations across the County Responded to 26,566 calls Performed 6,199 inspections 2018 POPULAR ANNUAL FINANCIAL REPORT Services Provided Police: Made 4,369 physical arrests Issued 32,930 traffic violations The Police Department currently has 3 stations, 290 Patrol Units, and 20 different patrol zones Purchasing: Processed 4,472 purchase orders Processed 33 sealed bids Processed 146 written bids Sold 87 Assets on GovDeals totaling $144,314 in revenue Human Resources: Hired 219 new employees Processed 10,512 applications Received 41,392 incoming calls Facilitated various wellness activities for 890 participants Developed employee relations process guidelines Facilitated training for 681 attendees Senior Services: Provided in-home personal care to 10,831 households Delivered 47,632 meals to homes Volunteers worked 7,820 hours Prepared 71,074 senior center meals Parks and Recreation: The County has 1,283 acres of park land across 23 parks 41,021 athletic field permits were issued 218,190 community center admissions Transit: Provided 71,753 trips for citizens Fares are $4 per person, per stop for citizens under 60 years of age Fares are $2 per person, per stop for citizens over 60 years of age 9

10 General Fund Revenues How does the County Government get money to operate? Henry County receives revenue primarily from taxes, fees, fines and charges for services. The County also receives revenue in the form of Grants from other governments (State and Federal) which assist the County in providing services to our citizens. FY2018 Licenses & Permits 2% Other Taxes 8% Charges for Services 10% Intergovernmental 1% Fines & Forfeitures 3% Miscellaneous 3% Sales Taxes 16% Property Taxes 57% Revenue Sources FY18 FY17 Difference Change Property Taxes $87,371,030 $82,937,118 $4,433, % Sales Taxes $24,699,765 $23,190,658 $1,509, % Other Taxes $11,857,927 $11,162,234 $695, % Licenses & Permits $2,999,125 $3,609,131 $(610,006) % Intergovernmental $1,801,586 $1,806,992 $(5,406) -0.30% Charges for Services $15,375,713 $15,491,230 $(115,517) -0.75% Fines & Forfeitures $4,620,093 $4,620,901 $(808) -0.02% Miscellaneous $4,271,161 $3,106,199 $1,164, % Total: $152,996,400 $145,924,463 $7,071, % 10 HENRY COUNTY GEORGIA

11 2018 POPULAR ANNUAL FINANCIAL REPORT General Fund Expenditures How are Henry County s revenues spent? The largest portion of overall expenditures is for Public Safety, which includes Animal Control, Code Enforcement, Coroner, EMA-911, Fire Department, Police Department and Sheriff s Department. FY2018 Public Safety 56% Public Works 7% Health and Welfare 4% Culture and Recreation 5% Housing and Development 2% General Government 14% Judicial 12% Expenditures FY18 FY17 Difference % Change General Government $19,820,014 $17,958,890 $1,861, % Judicial $15,866,563 $15,506,909 $359, % Public Safety $78,310,131 $73,914,470 $4,395, % Public Works $9,729,069 $10,528,258 $(799,189) -7.59% Health & Welfare $5,626,290 $5,265,719 $360, % Culture & Recreation $6,759,237 $6,879,722 $(120,485) -1.75% Housing & Development $2,929,555 $3,332,585 $(403,030) % Total: $139,040,859 $133,386,553 $5,654, % 11

12 Statement of Net Position as of June 30, 2018 FY18 FY17 FY16 Total Assets $847,653,444 $832,840,796 $820,554,206 Deferred Outflows of Resources $23,556,893 $23,746,264 $17,261,814 Total Liabilites $(157,702,936) $(131,252,651) $(127,379,784) Deferred Inflows of Resources $(4,981,403) Total Net Position $708,525,998 $725,334,409* $710,436,236 $1,000,000,000 $900,000,000 $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $- FY18 FY17 FY16 Total Assets & Deferred Outflows of Resources Total Liabilites & Deferred Inflows of Resources Total Net Position The Statement of Net Position is designed to provide readers with a broad overview of Henry County s governmental and business-type activities, in a manner similar to a private sector business. This statement presents the difference between the County s Assets and Deferred Outflows of Resources from Liabilities and Deferred Inflows of Resources as Net Position. *See Statement of Activites page HENRY COUNTY GEORGIA

13 2018 POPULAR ANNUAL FINANCIAL REPORT Statement of Activities for the Fiscal Year Ended June 30, 2018 FY18 FY17 FY16 Total Revenues $209,239,458 $202,819,263 $196,511,511 Total Expenditures $(195,602,098) $(187,921,090) $(176,257,671) Increase in Net Position $13,637,360 $14,898,173 $20,253,840 Net Position, Beginning of Year $694,888,638 $710,436,236 $690,182,396 Ending Position, Pre-GASB Adjustments $708,525,998 $725,334,409 $710,436,236 GASB Adjustments* $(30,445,771) Net Position, End of Year $708,525,998 $694,888,638 $710,436, ,000, ,000, ,000, ,000,000 50,000,000 - FY18 FY17 FY16 Total Revenues Total Expenditures Increase in Net Position The Statement of Activities provides information on the County s governmental and business-type revenues and expenditures and reports the difference between the two as the change in net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. *Implementation of GASB statement No.75 significantly changed the County s accounting for other post-employment benefits other than pensions (OPEB) and in turn caused the July 1, 2017 beginning Net Position to be restated. 13

14 General Fund / Fund Balance * FY ,684,990 71,206,521 FY ,519,303 67,667,716 FY ,244,935 63,145,159 FY ,440,368 52,120,724 FY ,608,532 42,823,833 FY ,501,521 43,503,132 FY ,764,728 37,362,384 FY ,756,420 36,223,396 FY ,243,083 39,560,992 FY ,407,776 42,839,002 FY ,458,630 51,776,801 FY ,509,159 50,968,119 FY ,881,940 53,561,758 FY ,410,900 47,482,872-10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 All Other Fund Balance Unassaigned Fund Balance *See page 19 for definition of Fund Balance 14 HENRY COUNTY GEORGIA

15 2018 POPULAR ANNUAL FINANCIAL REPORT Where Your Property Tax Dollars Go Net Assessed Property Values over the Last Eight Calender Years* $7,000,000,000 $6,000,000,000 $5,000,000,000 $5,654,458,801 $5,331,737,680 $5,217,433,310 $4,715,220,778 $4,641,027,111 $6,179,670,668 $6,561,999,580 $7,116,130,318 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $ * Adjusted Net M&O Digest (Gross Digest at 40%, less M&O exemptions). 15

16 Local Option Sales Tax (L.O.S.T) Local Option Sales Tax (L.O.S.T) is a 1% sales tax imposed on the sale of goods. These funds are used by the County in its General Fund. As shown below, L.O.S.T collections for FY18 were higher than they have been in the last five years with a 6.51% increase over FY17. $30,000,000 $25,000,000 $24,699,765 $20,000,000 $20,270,152 $21,177,532 $22,153,627 $22,933,573 $23,190,658 $15,000,000 $10,000,000 $5,000,000 $- FY13 FY14 FY15 FY16 FY17 FY18 16 HENRY COUNTY GEORGIA

17 2018 POPULAR ANNUAL FINANCIAL REPORT SPLOST IV Total SPLOST Collections for Fiscal Year 2018: $36,930,112 Special Purpose Local Option Sales Tax (SPLOST) - is an optional 1% sales tax levied for the purpose of funding roads, parks, equipment and other public facilities. The SPLOST IV program was voted into law November of 2013 to be in effect as of April 1, SPLOST IV will end March 31, 2020 and is expected to collect $190,000,000 in revenue. Some of the major projects included in this program are below: Frog Road Building & Plan Review North Henry Location Campground Road Extension Locust Grove Senior Center Kitchen Remodel Airport FBO Fire Station No. 14 Kitchen Remodel Fire Station No. 16 Roundabout at Highway 138 and Hemphill Road 17

18 Outstanding Achievements PAFR Award The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Henry County Board of Commissioners for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards, creativity, presentation, understandability, and reader appeal. An Award of Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. Henry County Board of Commissioners has received a Popular Award for the last 12 consecutive years (fiscal years ended ). We believe our current PAFR continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA. CAFR Award The Henry County Board of Commissioners Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2017, from which the information in this PAFR has been drawn, was awarded the Certificate of Achievement of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our CAFR continues to conform to the Certificate of Achievement program requirements and we are submitting our CAFR for the current year to the GFOA. 18 HENRY COUNTY GEORGIA

19 2018 POPULAR ANNUAL FINANCIAL REPORT Glossary of Terms Appropriations: An authorization granted by the Board of Commissioners to spend revenue for purposes specified in the appropriation act. Assets: Items of ownership. Assets can include cash, stock, land, buildings, machinery, furniture, and other equipment. Bonds: A certificate of debt issued by the County government guaranteeing payment of the original investment plus interest by a specified future date. Budget: A plan of financial operation using an estimate of proposed expenditures for a given period of time (a fiscal year) and an estimate of proposed revenue to finance the expenditures. Capital Assets: Assets of a long-term character (beyond the current year) that are intended to continue to be held or used, such as land, buildings, vehicles, machinery, furniture, and other equipment. Deferred Outflow of Resources: A consumption of net assets by the government that is applicable to a future reporting period. An example of a deferred outflow of resources is a grant paid in advance of meeting the timing requirement. Deferred Inflow of Resources: An acquisition of net assets by the government that is applicable to a future reporting period. An example of a deferred inflow of resources are taxes received in advance of the period for which they are levied. Expenditures: Government purchases which can be financed by revenue and/or government borrowing, ie. bonds, tax anticipation notes, etc. Fund Balance: The portion of fund revenue over expenditures available for use. Fund balance is classified as follows Nonspendable Fund balances are reported as nonspendable when amounts cannot be spent because they are either (a) not in a spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund balances are reported restricted when there are limitations imposed on their use either through the enabling legislation adopted by the County or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Committed Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the County Commission through the adoption of a resolution. Only the County Commission may modify or rescind the commitment. Assigned Fund balances are reported as assigned when the amounts are constrained by the County s intent to be used for specific purposes, but are neither restricted nor committed. Unassigned Fund balances are reported as unassigned when the balances do not meet any of the above criterion. The County reports positive unassigned fund balance only in the General Fund. Negative unassigned fund balances may be reported in all funds. General Fund: A fund used to account for the ordinary operations of the County government that are financed from taxes and other general revenue Liabilities: Future spending of revenue as a result of past transactions and other past events. Liabilities are reported on a balance sheet and are divided into two categories: Current Liabilities: These liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, taxes, accounts payable, unearned revenue, portions of long-term bonds to be paid this year, short-term obligations, and others. Long-term Liabilities: These liabilities are reasonably expected not to be liquidated within a year. They usually include long-term bonds, notes payable, long-term leases, pension obligations, and long-term product warranties. In these liabilities, the County has to pay after a fixed period of time. Net Position: The difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. Revenue: Financial resources other than from interfund transfers and debt issue proceeds. Henry County receives Revenue through property taxes, sales and other taxes, licenses and permits, grants, fines and forfeitures, charges for services, investment income, and miscellaneous sources. 19

20 911 Communications 526 Industrial Blvd. Director: Don Ash (770) Animal Care & Control 527 Hampton Street Director: Gerri Yoder (770) Board of Commissioners Chair: June Wood (770) Budget Budget Director: Angie Sorrow (770) Building & Plan Review Department Director: George Patterson (770) Code Enforcement 114 S Zack Hinton Pkwy Director: Captain Phillip Bratton (770) Community Development Director: Shannan B. Sagnot (770) Connecting Henry 66 Veterans Drive Director: Susan Crumbley (770) Consolidated Justice Group (770) Coroner Donald Cleveland 526 Industrial Blvd. (770) County Manager County Manager: Cheri Hobson- Matthews Deputy County Manager: Brad Johnson (770) County Clerk Stephanie Braun (770) Contact Information Development Authority 125 Westridge Industrial Blvd Director: Leonard Sledge (770) District Attorney Henry County Courthouse 2nd Floor, West Tower District Attorney: Darius Pattillo (770) D.O.T. 533 Hampton Road Public Works Director: Ron Burckhalter (770) Elections & Registration 345 Phillips Drive Director: Tina Lunsford (770) Extension Services 97 Lake Dow Road McDonough, GA Director: Susan Howington (770) Financial Services Director:David Smith (770) Fire Department 110 S. Zack Hinton Pkwy Chief: Luther Phillips (770) Fleet Services 121 Work Camp Road Director: Jody Swords (770) G.I.S. Director: Pat Delk (770) Human Resources Director: Doris Patterson (770) Juvenile Court One Judicial Center Suite 115 Clerk of the Court: Patti Johnson (770) Magistrate Court One Judicial Center, Suite 260 Clerk of the Court: April Blackburn (770) Parks & Recreation 99 Lake Dow Road Director Leisure & Public Services: Rod Gray (770) Planning & Economic Development Director: Daunte Gibbs (770) Police Department 108 S. Zack Hinton Pkwy Deputy Chief: Mark Amerman (770) Probate Court 99 Sims Street Admin Assistant: Emily Harper (770) Public Defender Chief Public Defender: Gary Bowman 30 Atlanta St. (770) Public Informtion Office Director: Melissa Robinson (770) Purchasing Financial Services Director: David Smith (770) Recycling Center 65 West Asbury Rd Admin Coordinator: Debbie Lewis (770) Risk Management Risk Manager: Holly Lafontaine (770) Senior Services 1050 Florence McGarity Blvd. McDonough, GA Director: Diane Reed (770) Sentence Enforcement 530 Hampton St. Director: Carl Brown (770) Sheriff s Office 120 Henry parkway Sheriff: Keith McBrayer (770) Solicitor General One Judicial Center Suite 350 Solicitor General: Pam Bettis (770) SPLOST 112 Zack Hinton Pkwy Transporation Projects Director: Roque Romero (770) State Court 44 John Frank Ward Blvd Clerk of the Court: Michele Gardner (770) Stormwater Management 347 Phillips Drive Public Works Director: Ron Burckhalter (770) 288-RAIN (7246) Superior Court No. 1 Courthouse Square Clerk of Superior Court: Barbara Harrison (770) Tax Assessor Chief Assessor: John Selfe (770) Tax Commissioner Tax Commissioner: David Curry (770) Technology Services Director: Skip Floyd (770) Transit 530 Industrial Blvd. Director: Taleim Tye Salters (770)