Harris County Auditor s Office

Transcription

1 Harris County Auditor s Office To be an independent and progressive organization recognized for professionalism in carrying out the County Auditor s statutory duties and responsibilities. Final of Available Resources Fiscal Year 2013 Issued March 6, 2012 Accountability Professionalism Independence

2 HARRIS COUNTY AUDITOR S OFFICE FINAL ESTIMATE OF AVAILABLE RESOURCES FY TABLE OF CONTENTS Section TRANSMITTAL LETTER 1 AVAILABLE RESOURCE FUND SUMMARY 2 HARRIS COUNTY GENERAL FUND GROUP: 3 Fund Summary 1000 General Fund 1020 Public Improvement Contingency 1070 Mobility Fund 09 HARRIS COUNTY SPECIAL REVENUE FUNDS: 4 Fund Summary 2090 District Court Records Archive 20H0 Healthcare Alliance 2100 Deed Restriction Enforcement 2130 TIRZ Affordable Housing-Interest Bearing 2210 Child Support Enforcement 2220 Family Protection 2290 Probate Court Support 2300 Appellate Judicial System 2340 Justice Court Courthouse Security 2360 Records Management and Preservation 2380 Justice Court Technology 2390 Child Abuse Prevention 2410 Juvenile Case Manager Fee 2430 Drug Court Program 2440 County and District Technology 2450 Stormwater Management 2460 DA Divert Program 2470 Gulf of Mexico Energy Sec Act/GOMESA 2480 Hester House Operating Costs 2490 Hester House Construction 2500 San Jacinto Wetlands Project 2510 TCEQ Pollution Control 2520 COMM DEV Financial Sureties 2530 EPH TCEQ SEP 2550 Election Services Fund 2670 Criminal Courts Audio-Visual Equipment 2690 Medicaid Admin Claim Reimburse 2700 Dispute Resolution 2710 Hurricane Ike I

3 HARRIS COUNTY AUDITOR S OFFICE FINAL ESTIMATE OF AVAILABLE RESOURCES FY TABLE OF CONTENTS Section HARRIS COUNTY SPECIAL REVENUE FUNDS CONTINUED: Fire County Clerk Elections 2730 Fire Code Fee 2750 LEOSE Law Enforcement 2760 Hotel Occupancy Tax 2770 Library Donation 2780 Juvenile Probation Fee 2790 Food Permit Fees 27A0 Court Reporter Service 27B0 Juvenile Delinquency Prevention Fee 27C0 Supplemental Guardianship 27D0 Courthouse Security Fee 2800 County Law Library PROPRIETARY FUNDS: 5 Fund Summary Enterprise Funds 5020 Subscriber Access 5040 Parking Facilities 5710 Toll Road Construction 5720 TRA - Office Building 5730 TRA - Collections 5740 TRA - Operation and Maintenance 5770 TRA - Renewal and Replacement Internal Service Funds 5490 Workers Compensation 5500 Central Service - Vehicle Maintenance 5520 Central Service - Radio Repair 5540 Inmate Industries 5550 Risk Management 55H0 Health Insurance Trust Management 55U0 Unemployment Insurance 6460 Insurance Trust Fund HARRIS COUNTY DEBT SERVICE FUNDS 1 : 6 Fund Summary 1050 HC/FC AGMT 2008 A Refunding 1080 HC/FC AGMT 2008 C Refunding 10A0 Agreement 2010 A Refunding AP 1250 PIB Series THESE FUNDS ARE INCLUDED IN FUND GENERAL FUND DEBT II

4 HARRIS COUNTY AUDITOR S OFFICE FINAL ESTIMATE OF AVAILABLE RESOURCES FY TABLE OF CONTENTS Section HARRIS COUNTY DEBT SERVICE FUNDS CONTINUED 1 : PIB Refunding Series Commercial Paper Series B 1400 Commercial Paper Series C 1410 PIB Refunding Bond 2008 C 1420 Commercial Paper Series A HC/FC AGMT Commercial Paper Refunding Series 2004 A 1470 Commercial Paper Series D Flood Control Agreement Commercial Paper Agreement 1490 HC/FC AGMT 2006 Commercial Paper Refunding 1530 Certificates of Obligation Series PIB Refunding Series GO & Refunding Bonds PIB Refunding PIB Refunding 2003 A 1680 PIB Refunding Series 2003 B 1730 Criminal Justice Center Refunding Series Tax & Sub Lien Refunding 2004 A 1770 Tax & Sub Lien Refunding 2004 B 1780 PI Refunding Bonds 2004 A 17C0 Road Refunding Series 2011A COI 1800 PI Refunding Series 2005 A 1850 PIB Refunding Bonds 2006 A 1870 PIB Refunding Bonds 2008 A 18A0 Tax & Sub 2009 C 1910 PIB Refunding Bond 2008 B 1960 PIB Refunding Bond 2009 A 19A0 PIB 2009 B 19C0 PIB Bond 2010 A 19E0 PIB Bond Refunding 2010 B 19G0 PIB Refunding Series 2011A 19H0 PIB Refunding Series 2011 A COI 4630 Road Bond Road Refunding Series Road Refunding 2003 A 4730 Road Refunding Series 2004 A 4740 Unlimited Tax Road 2004 B 4750 Unlimited Road Ref 2005 A 4760 Road Forward Refunding 2006 A 4770 Unlimited Road Ref Bonds 2006 B 4780 Unlimited Tax Road Ref 2008 A 47A0 Road Refunding 2009 A 47B0 Road Refunding 2010 A 47C0 Road Refunding Series 2011A 1 THESE FUNDS ARE INCLUDED IN FUND GENERAL FUND DEBT III

5 HARRIS COUNTY AUDITOR S OFFICE FINAL ESTIMATE OF AVAILABLE RESOURCES FY TABLE OF CONTENTS Section HARRIS COUNTY FLOOD CONTROL DISTRICT FUNDS: 7 Fund Summary 2890 Flood Control General Fund HARRIS COUNTY FLOOD CONTROL DISTRICT DEBT SERVICE FUNDS: 8 Fund Summary 2110 Commercial Paper Series F 4090 Contract Tax Ref 2006 A 4130 Refunding Series Refunding Series Refunding 2003 A 4180 Contract Tax & Ref 2004 A 4190 Improvement Bonds A0 FC Contract Tax Bond 2010 A 4200 Contract Tax Ref 2008 A 4300 Contract Tax Ref 2008 C OTHER FUNDS AVAILABLE RESOURCES TO BE ADOPTED 9 Capital Project and Commercial Paper Funds Harris County Grant Funds Other Funds Discretionary Funds (memo only) APPENDIX A 10 (Other information as required by Local Government Code ) d Receivables as of February 29, 2012 d Outstanding Liabilities as of February 29, 2012 d Encumbrances as of February 29, 2012 d Cash on Hand to Credit of Each Fund Debt Service Requirements IV

6 Section 1 Transmittal Letter

7 Mike Post, CPA Chief Assistant County Auditor Accounting Division Steven L. Garner, CPA, CFE Chief Assistant County Auditor Audit Division 1001 Preston, Suite 800 Houston, Texas (713) FAX (713) Help Line (713) 755-HELP BARBARA J. SCHOTT, CPA HARRIS COUNTY AUDITOR March 13, 2012 Honorable Members of Commissioners Court Harris County, Texas Re: Submission of the Final Statement of d Available Resources Court Members: In accordance with the Texas Local Government Code (LGC) , the County Auditor has prepared a Statement of d Available Resources to be used in developing the Fiscal Year (FY) Appropriations Budget for Harris County and the Harris County Flood Control District. d available resources are defined as estimated beginning cash and cash equivalents, plus estimated revenues and transfers in for the upcoming fiscal year. The estimated beginning cash balances for FY have been adjusted by a projection of the County s accounts receivable and liability account balances at February 15, This statement also includes other information as required by Chapter 111 of the Local Government Code: Cash on hand to the credit of each fund. Funds, resources, and estimated revenues received from all sources during the preceding fiscal year. Outstanding obligations of the County. A statement of all accounts and contracts on which sums are due to or owed by the County as of the last day of the preceding fiscal year, except for taxes or court costs. The estimates used in the preparation of this statement and presented herein are unaudited and subject to revision. Any changes that may occur are not anticipated to materially affect this estimate. In order to prepare a forecast that is reasonably accurate, involvement and input from County departments and information received from other sources such as the Harris County Appraisal District (HCAD) are vital components of the revenue estimation process. In an effort to streamline the manner in which this information was compiled, departments are required to submit their estimates electronically to the County Auditor through the County s Financial System (IFAS). Subsequent to the receipt of this information by the County Auditor s Accounting Department, a review and analysis is performed which includes an examination of the statutory requirements and an analysis of trends and assumptions relative to the County s revenues. In addition, County departments were contacted for further information or clarification if it was deemed necessary. Once all revenues were reviewed, a determination was made as to the reasonableness of the estimates.

8 Commissioners Court March 13, 2012 Page 2 CASH AND REVENUE PROJECTIONS Harris County General Fund Schedule One below provides a comparative analysis of the FY 2012 estimated actual available resources with the FY 2013 final estimates for the County s General Fund. The total estimated available resources for the County s General Fund for FY is $1,339,519,568. As compared to the total adjusted FY estimated actual amount, available resources have decreased $7.7 million or 0.6%. However, compared to the FY adopted budget, available resources have increased $109 million or 8.9%. The following graph presents a historical comparison of the General Fund s available resources. General Fund Available Resources by Year FY $1,610,000,000 $1,410,000,000 $1,210,000,000 $1,010,000,000 $810,000,000 Cash $610,000,000 $410,000,000 $210,000,000 $10,000,

9 Commissioners Court March 13, 2012 Page 3 As demonstrated by the following graph, the General Fund s beginning cash balance decreased during FY 2012; however, it is expected to increase in FY The increase is primarily a result of FY 2012 revenue exceeding expenditures, actual expenditures coming in under budget, actual tax revenues exceeding the original estimate, and unanticipated transfers from other funds. The FY 2013 estimated beginning cash is approximately $101.3 million greater than the FY 2012 actual opening cash balance. General Fund Beginning Cash Balance $305,000,000 $255,000,000 $205,000,000 $155,000,000 $105,000,000 $55,000,000 $5,000, Fiscal Year Actual d s Compared to Expenditures $1,500,000,000 $1,400,000,000 $1,300,000,000 $1,200,000,000 $1,100,000,000 $1,000,000,000 $900,000, Fiscal Year s Expenditures

10 Commissioners Court March 13, 2012 Page 4 The following graph presents the General Fund s historical revenue sources with estimates for FY 2012 and FY General Fund Historical $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000, (est) 2013 (est) Fiscal Year Operating Transfers Interest Leases & Parks Miscellaneous Fines Charges for Services Intergovernmental Taxes The General Fund s total Tax for FY 2013 is expected to be $20.0 million less than the FY 2012 estimated actual amount although the Harris County Central Appraisal District (HCAD) is forecasting a 2.23% increase in taxable property values during the 2012 tax year. The estimate for this revenue category is net of a $35.5 million adjustment that reduced the FY 2013 projection for current ad valorem taxes from $870 million to $834.5 million. Since this was necessitated by the funding requirements of the County s debt service funds, the current tax revenues in these funds were increased in total by $35.5 million to provide the necessary resources to service the County s debt. The assumptions used to project the FY 2013 estimate of current ad valorem property tax revenue is based on the tax rate of $ adopted by Commissioners Court October 11, 2011, an average collection rate of 92.5%, and HCAD s preliminary taxable value estimate of $283 billion. It should be noted that the taxable value used to derive the FY 2012 original estimate was $266 billion which was projected by HCAD during the time the County was preparing its FY 2012 budget. Thus, the increase or change between the FY 2012 original taxable value estimate and the FY 2013 estimate is $17 billion or 6.4%.

11 Commissioners Court March 13, 2012 Page 5 The information contained in Schedule Two below was presented by HCAD during their 2012 Property Tax Base Summit February 21, 2012 and are the most current estimates to date. The table below presents the tax rates and taxable values used during the revenue estimation process for fiscal years 2007 through This table is followed by a graph of historical taxable values as of January in the tax years indicated. Tax Year General Fund Total County Flood Control Tax d Taxable Percent (Fiscal Year) Tax Rate Tax Rate Rate Value (Billions) Change 2006 (2007) % 2007 (2008) % 2008 (2009) % 2009 (2010) (4.6%) 2010 (2011) (1.5%) 2011 (2012) %

12 Commissioners Court March 13, 2012 Page 6 Taxable Values $300,000,000,000 $280,000,000,000 $260,000,000,000 $240,000,000,000 $220,000,000,000 $200,000,000,000 $180,000,000,000 $160,000,000,000 $140,000,000,000 $120,000,000,000 $100,000,000, Tax Year Certified d The County Auditor does not make any assumptions during the preparation of the Statement of d Available Resources regarding changes that may be made by Commissioners Court in setting the tax rate later in the fiscal year. Effective tax rates are calculated each year in accordance with Chapter 26 of the Property Tax Code. These calculations are the responsibility of the Harris County Tax Assessor/Collector. To ensure that the effective tax rates are reasonable and accurate, the County Auditor s Office performs a review of the respective calculations. Restricted Balances and Restrictions on New Included in the General Fund s estimated opening cash balance is a carry forward fund balance of $4.9 million from FY 2012, which is restricted for specific purposes. A detailed schedule of these restrictions is presented below. Cypresswood Golf Course (30% Reserve) $ 234,974 Championship Shooting Center 1,624,992 Reserve for Improvements (object code ) 977,407 DA Discretionary funding 2,100,000 $ 4,937,373 Additionally, the table below lists certain fees in the General Fund which are included in the FY 2012 estimate that are statutorily or contractually restricted for specific purposes. Description Object Code Amount Time Payment Fee (LGC ) $ 68,580 Championship Shooting Centers ,000 Pretrial Release Fees ,400 Cypresswood Golf (30% Reserve) ,174 Bail Bond License Fees ,000 Total FY 2012 General Fund Restricted s $ 594,194

13 Commissioners Court March 13, 2012 Page 7 The sum of these two amounts, $5,531,527 must be included in the total appropriations for the General Fund and restricted for the purposes indicated. This includes bail bond license fees which should be appropriated for the Bail Bond Board using a specifically designated cost center, 100BBB01. Intergovernmental revenue will decrease $5.7 million from the FY 2012 estimated actual amount of $41.3 million to the FY 2013 estimate of $35.6 million. The following highlights the nature of this decrease with respect to federal, state and city/other funding sources. Federal intergovernmental revenue is projected to be $3.97 million less in FY13 as compared to the amount estimated to be received in FY 2012 due to the following reasons: o State Criminal Alien Assistance Program The 2013 revenue estimate does not include $2.4 million in revenue from the State Criminal Alien Assistance Program (SCAAP) for incarcerating undocumented criminal aliens in the County jail. Since the amount and timing of these funds is somewhat uncertain, they are not included in the estimate for this revenue category and will be certified as supplemental revenue upon receipt. o o Southwest Boarder Prosecution Initiative The FY 2013 estimate does not include $1.1 million for this program due to the uncertainty of receiving this revenue. Certain federal contracts that have grant like attributes will be moved from the General Fund to Special Funds to better account for their grant like characteristics. These contracts represented over $450,000 in revenue that will not be included in the General Fund s FY 2013 estimate. The agencies and associated contracts include: Bureau of Immigration & Customs ICE money laundering; the Bureau of Immigration & Customs ICE gang investigations; Social Security Administration for the investigation of disability and Medicaid fraud and the U.S. Department of Agriculture for animal fighting. City and other intergovernmental revenue will decrease by an estimated $1.66 million and is directly attributable to the following: o Tobacco settlement funds remitted by the Hospital District in FY 2012 in the amount of $1.56 million are not anticipated to be received in FY o A Healthcare Alliance Special Fund will be utilized in FY 2013 to account for resources utilized in providing healthcare services to the underinsured and uninsured. As such, the FY 2013 estimate of $257,000 for revenues associated with this area will not be included in the General Fund. Charges for Services is anticipated to decline $8.9 million. The following highlights the nature of this decrease along with other analytical data related to this largest revenue category with respect to the quantity of revenue sources. Special revenue assessment $10.01 million of FY 2012 estimated actual revenue will be reclassified to Special Funds including revenues associated with fire code permits, food permits, supplemental guardianship, courthouse security, records management and preservation fees, court reporters fee, and juvenile delinquency (graffiti) fees. The purpose of this reclassification is to more accurately comply with the various statutory requirements for these seven revenue sources. If

14 Commissioners Court March 13, 2012 Page 8 these revenues would have remained in the General Fund, their total revenue estimate for FY 2013 would have been $ million which is $53,665 greater than FY12. Other various increases and decreases A total of 538 revenue accounts were analyzed in this category. Modest fee increases were noted in 210 or 40% of the accounts analyzed that totaled $3.9 million. Conversely, there were decreases in 108 (20%) revenues aggregating $13.4 million inclusive of the aforementioned $10.01 million related to special revenues. The remaining 220 revenues remained flat. Finally within this category, a new object code (528600) was created to account for the social security administration fee received by the County for incarcerated inmates. This fee was previously accounted for with other miscellaneous fees, but was separated due to its significance. The estimate for FY 2013 for this revenue totals $670,000. User Fees are expected to remain flat in FY 2013 with a slight decrease of $38,186 (6.43%) from the actual amount estimated for FY 2012 of $594,000. The decrease is attributable to a concession agreement that was revised in FY 2011 for the operation of golf courses at Cypresswood Park that has an earned revenue variable component which provides for potential annual fluctuation. Fines will remain flat with a slight increase of $38,860 (.22%) from the actual amount estimated for FY 2012 of $17.84 million as compared to the FY 2013 estimate of $17.88 million. Miscellaneous revenue will decrease $13.5 million from FY 2012 estimated actual amount of $50.4 million to the FY 2013 estimate of $36.9 million. Reimbursements (decrease of $7.4 million from $34.3 million to $26.9 million) Election Costs Reimbursements relative to election costs are expected to decrease $1.01 million in FY The FY 2013 estimate for this revenue is based upon the number of elections that are anticipated. One potential outcome of all the recent legal issues concerning the voting maps drawn by the legislature last year is that the primaries and run off election may be held later in the year. In the past, these elections were conducted when the public schools were in session. If the elections are held at another time, it is our understanding the schools districts will charge the County more for using their school facilities as polling locations. Although the additional cost would normally be billed to the State of Texas (State), it is our understanding that the State is indicating that these additional costs will not be funded or reimbursed. Damage to County Property This revenue source will not be budgeted in the General Fund in FY 2013, but instead in a proprietary internal service fund (5550). The actual amount of revenue estimated to be received in FY 2012 is $700,000. Certain state, local, and federal agency agreements that have grant like attributes will be accounted for outside of the General Fund to better account for their grant like characteristics. These contracts represented approximately $2.6 million of the General Fund s FY 2012 revenue estimate that will not be budgeted in the General Fund in FY The agencies and respective agreements include: Community Supervision Correction Prisoners Meals for the Peden Facility; Drug Enforcement Administration Tactical Diversion Task Force; Drug Enforcement Administration Organized Crime Drug Enforcement Task Force (OCDETF); Texas Department of Criminal Justice

15 Commissioners Court March 13, 2012 Page 9 Prisoners Meals for Kegans State Jail F; the U.S. Department of Justice Multi Agency Gang Task Force (MAGTF); and the U.S. Marshall Service locate and apprehend fugitives. Prior period reimbursements Although revenue in this group is not estimated, it contains a $2.5 million estimated actual amount for FY 2012 which represents medical expense reimbursements to the General Fund by the Sheriff s Office. Commissary The General Fund will not fund and get reimbursed by the Sheriff s Commissary as it has traditionally in the past. d actual revenue for FY 2012 is $600,000 which will not be budgeted in FY Tentatively, salaries and benefits related to the operation of the Sheriff s Commissary will be charged to the Commissary Fund (5060) and be reimbursed by the Sheriff s Office. Contributions Other (decrease of $526k as it is not estimated) An estimate for this revenue source is not included in the FY 2013 Statement of Available Resources since it is certified as supplemental revenue when received during the fiscal year. d actual revenue for FY 2012 is $526,706. Miscellaneous (decrease of $5.67 million from $15.67 million to $10 million) Miscellaneous Payments in Lieu of Taxes d actual FY 2012 revenue of $3.061 million was received primarily ($3.01 million) from ExxonMobil based on its 1997 agreement with the County to forego Foreign Trade Zone laws related to its Baytown property and pay the County for the portion of lost revenue for the applicable year. This and other revenue in this category have been conservatively estimated in FY2013 at $2 million and is $1.06 less than FY Miscellaneous Restitution FY 2013 miscellaneous restitution revenue will not be budgeted in the General Fund, but instead in a proprietary internal service fund (5550). The actual amount estimated to be received relative to this revenue source is $766,000 for FY Miscellaneous Other The actual amount of miscellaneous/other revenue estimated to be received in FY 2012 is $2.2 million of which $2.1 million represented a onetime transfer from the DA Discretionary Fund to the Institute of Forensic Sciences which was certified as supplemental revenue. The FY 2013 estimate for this revenue is $95,700 and is unrelated to the aforementioned transaction. As such, the revenue in this sub category is expected to be $2.1 million less in FY Prior Period Miscellaneous d actual FY 2012 prior period revenue includes a $4.0 million payment from the South Texas College of Law associated with the termination of a lease agreement and $40,000 in revenue from a settlement agreement for gross receipt taxes with Noble Solutions. These transactions were certified as supplemental revenue. No revenue will be estimated in this sub category in FY Lease will increase slightly ($160k) from the FY 2012 estimated actual amount of $3.613 million as compared to the FY 2013 estimate of $3.773 million. This increase is primarily attributable to a new lease agreement for the 700 N. San Jacinto parking lot that was executed August 2011.

16 Commissioners Court March 13, 2012 Page 10 Interest earnings will decrease $707.4 from the FY 2012 estimated actual amount of $1.41 million to the FY 2013 estimate of $707,500. This conservative estimate is prudent given the yield volatility experienced in the financial markets in recent years. Gain on Sale of real property during FY 2012 is estimated to total $168,500. of this nature will be certified as it occurs in FY Transfers In for FY 2012 totaled $59.8M and included $43.21M from the Mobility Fund (1070) for eligible mobility expenditures incurred in the General Fund in prior fiscal years. Transfers in to the General Fund from the Public Improvement Contingency Fund (1020), Workers Comp Fund (5490) and Insurance Trust Fund (6460) to primarily cover retiree healthcare benefits totaled $16.3 million while transfers in from grant funds totaled $427k. No transfers in to the General Fund are budgeted for FY Other Financial Sources Proceeds from an insurance recovery related to the water leak at the County jail totaled approximately $323,000 in FY of this nature will be certified as it occurs in FY Public Improvement Contingency Fund Fund 1020 The FY 2013 estimate for current ad valorem tax revenue of $5.84 million relative to the Public Improvement Contingency Fund was based upon the tax rate adopted ($223) in October 2011 by Commissioners Court. The purpose of this fund is to assist with capital projects and unforeseen catastrophic events and to be a stabilizing component for the County s total combined tax rate. Mobility Fund 1070 The Mobility Fund s available resources of $283,962,484 are not considered part of the General Fund budget. Although it is included in the General Fund Group, these resources may only be used for expenditures as defined by the Texas Transportation Code Chapter 284 and not for the general appropriations or operations of the General Fund. Special Funds Funds received from a specific source (donations, court costs, etc.) which are to be used for a designated purpose are considered Special Funds. Many of these funds are supported by filing fees and court costs through the judicial system and can only be expended in accordance with the requirements of state statutes. The table on the following page summarizes the estimated available resources for the Special Funds.

17 Commissioners Court March 13, 2012 Page 11 Special Funds Fund Name and Fund Number Total FY 2013 Available Resources District Court Record Archives Fund 2090 $ 617,618 Healthcare Alliance Fund 20H0 301,000 Deed Restriction Fund ,202 TIRZ Affordable Housing Fund ,652,695 Child Support Fund ,482,441 Family Protection Fund ,469 Probate Court Support Fund ,948 Appellate Judicial Fund ,748 Courthouse Security Justice Court Fund ,473 Records Management & Preservation Fund ,619,023 Justice Court Technology Fund ,522,031 Child Abuse Prevention Fund ,805 Juvenile Case Manager Fund ,748,511 Star Drug Court Program Fund ,394,997 County & District Court Technology Fund ,104 Stormwater Management Fund ,092 District Attorney Disposition Intervention (DIVERT) Program Fund ,379 Gulf of Mexico Energy Security Act of 2006 (GOMESA) Fund ,667 Hester House Operations Fund ,792 Hester House Construction Fund ,988,873 San Jacinto Wetlands Fund ,522 TCEQ Pollution Control Fund ,737 Community Development Financial Sureties Fund ,127 EPH TCEQ SEP Fund ,859 Election Services Fund ,152 Criminal Courts Audio Visual Equipment Fund ,884 Medicaid Admin Claim Reimburse Fund ,533,307 Dispute Resolution Fund ,484,970 Hurricane Ike Fund ,779,639 Fire County Clerk Elections Fund ,415,549 Fire Code Fee Fund ,200,000 LEOSE Law Enforcement Fund ,135 Hotel Occupancy Tax Fund ,342,696 Library Donation Fund ,749 Juvenile Probation Fee Fund ,000 Food Permit Fees Fund ,614,400 Court Reporter Service Fund 27A0 1,280,000 Juvenile Delinquency Prevention Fund 27B0 600 Supplemental Guardianship Fund 27C0 161,000 Courthouse Security Fund 27D0 1,635,995 Law Library Fund ,993,366 Total Special $ 110,138,555 As previously discussed, seven new funds were added to the FY 2013 estimates that were previously accounted for in the General Fund including fire code permits, food permits, supplemental guardianship, courthouse security, records management and preservation fees, court reporters fee, and juvenile delinquency (graffiti) fees. The purpose of this reclassification is to more accurately comply with the various statutory requirements for these seven revenue sources.

18 Commissioners Court March 13, 2012 Page 12 The Hotel Occupancy Tax (HOT) Fund 2760 is funded through a levy on the price of a hotel room. Hotel Occupancy tax revenue may only be used for the designated purposes set forth in Chapter 352 of the Texas Tax Code which includes an amount specifically set aside for the promotion of tourism. These funds are used to fund the cost of utilities and insurance expenditures for Reliant Park, the County s annual agreement with the Greater Houston Convention and Visitors Bureau, to fund or partially fund debt service payments for bonds secured by the Hotel Occupancy Tax and a portion of the operations of the Harris County Sports and Convention Corporation. The FY 2013 estimate of available resources for this fund is $30.34 million and is greater than the FY 2012 estimated actual of $27.3 million. The HOT Fund s opening cash is higher compared to prior year as revenues have exceeded expenditures in FY In regard to other Special Funds, the FY 2013 revenue projections are based on historical trends, current fee structures, case load information and other data provided by County departments. Some funds such as the TIRZ funds, Deed Restriction Enforcement, and San Jacinto Wetlands funds may not include a revenue projection for FY 2013 (other than interest) since the nature of the respective revenue streams is unpredictable and cannot be reasonably estimated. In these situations, the FY 2013 appropriations budget will be based upon estimated opening cash and interest income projections. Other funds, such as the Hester House Construction Fund and the Criminal Courts Audio Visual Equipment Fund do not have recurring revenue streams with the exception of interest earnings. Therefore, the estimated available resources for these funds will decline from year to year until all the funds are fully expended. s of available resources for all Harris County grants accepted by Commissioners Court are also included in this statement. The FY 2012 forecast of $ 361,110,040 for grant resources is based upon the unexpended balances of grant funds at the time of this estimate. Any necessary changes that may be required as a result of the fiscal year end closing process will be presented to Commissioners Court at a later date. Grant funds that have been accepted and not previously certified as an available resource are also included in this statement. Capital Project Funds The FY 2013 estimate of available resources for Capital Project and Commercial Paper funds for the County, Flood Control and Toll Road total $ 1,253,326,254. The estimates of available resources for Capital Project Funds associated with Court approved capital improvement projects are based on the estimated opening cash balances in these funds. The cash balances consist of bond proceeds less inception to date expenditures and an adjustment for outstanding liabilities. For Commercial Paper Project Funds, the FY 2013 estimates of available resources consist of unexpended commercial paper appropriation balances at the time this estimate was prepared. The cash balances in these funds were not considered in determining available resources since such amounts represent commercial paper drawn down to cover expenditures previously incurred and are not available for additional appropriations. Similar to grant funds, any adjustments resulting from the yearend closing process will be presented to Commissioners Court at a later date. A detailed listing of these funds is included in the Other Funds Available Resources to be Adopted section of this report.

19 Commissioners Court March 13, 2012 Page 13 Debt Service Funds d taxes for the Debt Service Funds are derived from the debt service requirements for FY The County s debt service requirements also serve as the basis for the calculation of the effective tax rates. Actual requirements for debt related taxes will be determined in August 2012 as part of the tax rate calculation process required by the Property Tax Code. The schedule to the right illustrates the estimated ad valorem taxes and distribution to the debt service and other funds. A listing of all debt service requirements for current and future years is included in the Appendix section of this report.

20 Commissioners Court March 13, 2012 Page 14 Proprietary Funds Internal Service Funds d available resources for the following Internal Service Funds are included in this statement. Workers Compensation Fund, 5490 Human Resources & Risk Management Available resources of $27.4 are estimated by Budget Management Human Resources & Risk Management to provide sufficient funds to cover next fiscal year s claim expenses as well as the prior years incurred claim activity. The $11.95 million decrease in resources estimated for FY 2013 is chiefly due to the transfer out of $10.6 million for retiree healthcare insurance and to fund HRRM operations in FY 2012 which reduced the FY 2013 beginning cash. Also, an adjustment to the FY 2013 available resources may be necessary during the FY 2012 year end closing process and any required adjustments will be presented to Commissioners Court at a later date. Central Service VMC Fund, 5500 Purchasing Fleet Services The FY 2013 estimate for the Central Service VMC Fund of $53 million is approximately $14.6 million greater than FY 2012 estimated actuals of $38.4 million. $4.9 million of this is attributable to an increase in opening cash as a result of FY 2012 revenue exceeding expenditures by 67%. $9.4 million of the increase is due directly to gasoline prices increasing to $4.00 per gallon. This effects both external gasoline revenue (object increase in revenue of $6.8 million) and internal gasoline revenue (part of object increase in revenue of $2.6 million). Central Service Radio Fund, 5520 Information Technology Center Included in Central Service Radio Fund is an estimated operating transfer from the General Fund in the amount of $3,000,000. Other revenue related to equipment and airtime charges have changed very little from FY In total, estimated available resources for FY 2013 are approximately $13,000 lower than the amount projected for FY Inmate Industries Fund, 5540 Sheriff The Inmate Industries Fund s FY 2013 estimate of available resources of $3.29 million is slightly higher than the FY 2012 estimated actual amount of $3.10 million. in FY 2013 will be slightly less ($14,849) than the FY 2012 estimated actual amount. However, estimated beginning cash of $2.89 for FY 2013 is approximately $207k higher than FY 2012 estimated actual cash. Risk Management Fund, 5550 Human Resources & Risk Management There is a slight decrease of $62,786 in the FY 2013 estimate of available resources for the Risk Management Fund as compared to the FY 2012 estimated actual amount. The primary source of funding for the Risk Management Fund is operating transfers. For FY 2013, these transfers total $3 million which is lower than the FY 2012 estimated transfer of $4.72 million. Budget Management will determine the sources of the transfers.

21 Commissioners Court March 13, 2012 Page 15 Health Insurance Trust Management, 55H0 replacing Insurance Trust Fund, 6460 This fund is used to account for the County and District's group health insurance program which includes coverage for medical, dental, vision, life and disability. Fund 55H0, a proprietary internal service fund, will be replacing Fund 6460, a fiduciary trust fund, beginning in FY The change was made to more properly account for the nature and purpose of the fund. Beginning in FY 2013, medical, dental, vision, and life will be combined into one flat benefit rate for the employer s portion and there will no longer be individual revenue amounts for dental, vision, medical or life related to the employer portion. A new object code has been created (object Health Employer) to account for the employer s portion. For FY 2013, fund 55H0 has available resources totaling $231.7 million compared to fund 6460 s FY 2012 estimated actual of $223.9 million. FY 2012 available resources include a $3 million transfer in from the Workers Comp Fund, Fund No transfer in is included in the FY 2013 estimate for fund 55H0. Unemployment Insurance Fund, 55U0 This fund is used to account for unemployment insurance. The FY 2013 revenue estimate is based on.6% of salaries only versus.28% for FY 2012 resulting in estimated inter department revenue of $4.8 million for FY 2013 versus $2.2 million in FY Enterprise Funds Enterprise Funds are used to account for the business type activities of the County. Subscriber Access Fund, 5020 FY 2013 revenue estimates of $644,247 for the Subscriber Access Fund are lower than the $1.073 million FY 2012 estimated actual amount and the $1.08 million FY 2012 adjusted budget. The decrease in the estimate of available resources is primarily due to FY 2012 expenditures exceeding revenues and lower than anticipated subscriber access and JIMS data services revenues when compared to budget. Parking Facilities Fund, 5040 The overall Parking Facilities Fund s estimated available resources are anticipated to decrease to $300,539 in FY 2013 compared to the FY 2012 estimated actual amount of $422k. This is primarily attributable to FY 2012 expenditures exceeding revenues creating a FY 2013 estimated beginning opening cash balance of $534.

22 Commissioners Court March 13, 2012 Page 16 Toll Road Authority Below is a summary of the FY 2012 estimate of available resources for the Toll Road Authority. Net FY 2013 d Beginning Cash Net FY 2013 d Net FY 2013 d Transfers In Total FY 2013 Available Resources Fund Name TR Construction $ 10,529,092 $ 79,145 $200,000,000 $ 210,608,237 TR Office Building 1,472,330 2, ,474,874 TR Collections 402,329, ,282, ,612,193 TR Operations & Maintenance 12,061, ,500, ,561,230 TR Renewal & Replacement 169,641, ,393 35,000, ,894,616 Total $ 596,033,468 $534,617,682 $377,500,000 $1,508,151,150 Toll Road Construction Fund, 5710 The financial activity related to ongoing toll road construction projects not financed through bond proceeds or commercial paper is accounted for in the Toll Road Construction Fund. Funding is primarily provided by transfers from the Toll Road Fund and a $200 million transfer was requested for FY TRA Office Building Fund, 5720 The Toll Road Authority is combining all financial activity related to facility operations into its Maintenance and Operations Fund, As a result, the TRA Office Building Fund, 5720 is expected to close in FY The only substantial available resources for FY 2013 is the opening cash. Toll Road Collections Fund, 5730 from the Toll Road Collections Fund is used to fund construction projects and operations in other Toll Road funds. Funds collected are reported as revenue in the Toll Road Fund and transferred to other Toll Road funds as needed for operations or debt service. Consistent with prior years, no revenue projections were made for fines associated with the requirements of GASB 34. Actual amounts are shown for reporting purposes only and are not considered as an available resource. The FY 2013 Toll Road Collections estimate of available resources is $937 million, up from an FY 2012 estimated actual of $876 million and a FY 2012 adjusted budget of $899 million. Toll Road Operations & Maintenance Fund 5740 Operations and maintenance expenses of the Toll Road Authority are funded through the Toll Road Operations and Maintenance Fund, Funding is provided as needed through a series of transfers from the Toll Road Fund, d transfers for FY 2013 are $142.5 million which is approximately $13.4 higher than what is estimated for FY The estimate for the transfer was provided by the Toll Road Authority. Toll Road Renewal and Replacement Fund, 5770 Opening cash and estimated interest earnings are included in the Toll Road Renewal and Replacement Fund s estimate of available resources. This fund has a long term receivable relative to a loan to the

23 Commissioners Court March 13, 2012 Page 17 General Fund approved by Commissioners Court September 26, The purpose of the loan was to pay amounts due under a loan agreement to RCM Financial Services and was made on behalf of the Sports and Convention Corporation. The repayment of the loan is based on future income and began in 2011 with an initial repayment of $2.6 million. The remaining receivable is not included in the FY 2013 estimate of available resources. Also, a transfer in from the Toll Road Fund, 5730 is anticipated in the amount of $35 million in FY The FY 2013 estimate of available resources for this fund is $204.9 million. d transfers to the Toll Road Debt Service Funds from the Toll Road Fund during FY 2013 total $225.2 million and are considered available resources in the respective funds. An entire list of current and future Toll Road debt service requirements is included in the Appendix section of this report. General Operations & Maintenance Fund, 2890 Harris County Flood Control District The primary source of revenue for the Flood Control Maintenance and Operations Fund is property taxes of $74,071,643. The tax rate used for the preparation of this estimate is $ and is the same rate adopted in October The HCAD has projected a 2.23% increase in property values as previously discussed which positively impacts the tax revenue in the Flood Control General Fund. The County Auditor does not make any assumptions during the preparation of the Statement of d Available Resources regarding changes that may be made by Commissioners Court in setting the tax rate. The following graph presents a historical comparison of the Flood Control Operations & Maintenance Fund s available resources. Flood Control District Available Resources $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $ Fiscal Year Cash

24 Commissioners Court March 13, 2012 Page 18 FY FY FY Available Resources Adopted Change Est. Available Beginning Cash $ 106,506,712 $ 106,506,712 $ 115,679,064 $ 9,172,352 Reserve for Liabilities (365,494) (365,494) (1,621,754) (1,256,260) Receivables Net Est. Avail Beginning Cash 106,141, ,141, ,057,310 7,916,092 Taxes 68,327,636 68,327,636 74,071,643 5,744,007 Intergovernmental 0 126,600 0 (126,600) Interest 796, , ,049 (651,692) Lease 174, , ,000 38,000 Miscellaneous 77,525 77, , ,485 Transfers In Total 69,375,902 69,502,502 74,695,702 5,193,200 Total Available Resources $175,517,120 $175,643,720 $188,753,012 $13,109,292 Discretionary Funds Included in this statement are several funds that are discretionary in nature which do not require Commissioners Court s approval of budgetary or expenditure items. The source of these funds include but is not limited to seized asset forfeitures, hot check fees, certain Toll Road violation fees, and Election Code Title 19 funds. The data contained herein associated with these funds is presented for informational purposes. Conclusion I want to express my sincere appreciation to the County officials and department heads for their invaluable assistance in providing information for the Statement of d Available Resources. I also want to thank Jeff Jackson, the County Auditor s Accounting Director and his staff, for their dedication and tireless efforts in preparing this document. Questions concerning the data contained within this statement may be addressed to the County Auditor s Office. Sincerely,

25 Section 2 Available Resource Fund Summary

26 Harris County, Texas Final Statement of d Available Resources FY FY 2013 Fund Summary By Fund or Fund Grouping Increase (Decrease) d Final 2012 Est Act to Final General Fund 1000 $ 1,387,158, $ 1,299,226, $ 1,347,203, $ 1,339,519, $ (7,683,936.63) Public Improvement Contingency Fund ,468, ,901, ,170, ,498, (13,671,818.97) Mobility Fund ,922, ,388, ,964, ,962, (6,002,401.00) Special Funds 114,767, ,147, ,432, ,138, , Proprietary Funds 1,311,274, ,519,937, ,295,481, ,841,000, ,518, Insurance Trust Fund ,696, ,968, ,882, (223,882,124.00) Debt Service Funds 1,154,857, ,435, ,402, ,043, (455,358,432.43) Flood Control General Fund ,661, ,643, ,608, ,753, ,144, Flood Control Debt Funds 449,544, ,995, ,961, ,051, (909,701.30) Grand Total Available Resources $ 5,083,350, $ 4,570,645, $ 4,383,107, $ 4,227,967, $ (155,139,770.08) Other Funds ¹ Grants 361,110, Capital Projects & Commercial Paper 1,253,326, Discretionary Funds 30,478, Other 565,223, Grand Total Available Resources (Inclusive of Other Funds) $ 5,083,350, $ 4,570,645, $ 4,383,107, $ 6,438,106, $ (155,139,770.08) By Financial Account Type d Net Available Beginning Cash $ 1,204,410, $ 1,181,735, $ 1,218,811, $ 1,337,318, $ 118,507,49 Taxes 1,170,460, ,154,973, ,192,579, ,212,899, ,320, Intergovernmental 44,299, ,804, ,910, ,272, (14,637,405.52) Charges for Services 217,132, ,371, ,123, ,950, ,827, Charges to Departments - Service 19,229, ,908, ,720,20 36,855,10 12,134,90 Toll 464,122, ,628, ,740, ,222,00 41,481, User Fees 1,266, ,308, ,140, ,104, (35,421.00) Fines 29,171, ,280, ,593,00 31,081,86 (2,511,14) Lease 11,183, ,242, ,893, ,464, , Premiums 224,026, ,800, ,800, ,160,00 9,359, Interest 17,819, ,462, ,731, ,747, (7,984,099.69) Miscellaneous 78,314, ,186, ,586, ,121, (29,464,735.07) Transfers In & Other Financing Sources 1,601,913, ,113,943, ,477, ,769, (304,708,465.16) Grand Total Available Resources $ 5,083,350, $ 4,570,645, $ 4,383,107, $ 4,227,967, $ (155,139,770.08) By Summarized Financial Account Type d Net Available Beginning Cash $ 1,204,410, $ 1,181,735, $ 1,218,811, $ 1,337,318, $ 118,507,49 Total 2,277,027, ,274,966, ,289,818, ,320,880, ,061, Transfers In & Other Financing Sources 1,601,913, ,113,943, ,477, ,769, (304,708,465.16) Grand Total Available Resources $ 5,083,350, $ 4,570,645, $ 4,383,107, $ 4,227,967, $ (155,139,770.08) ¹ Other Funds - Grants, Capital Projects, Commercial Paper and Other Discretionary Funds are included in section 9 of this report.

27 Harris County, Texas Final Statement of d Available Resources FY FY 2013 Fund Summary Increase (Decrease) d Final 2012 Est Act to Final General Fund 1000 $ 1,387,158, $ 1,299,226, $ 1,347,203, $ 1,339,519, $ (7,683,936.63) Public Improvement Contingency Fund ,468, ,901, ,170, ,498, (13,671,818.97) Mobility Fund ,922, ,388, ,964, ,962, (6,002,401.00) District Cout Record Archives Fund , , , , , Healthcare Alliance Fund 20H ,00 301,00 Deed Restriction Fund , , , , TIRZ Affordable Housing Fund ,749, ,467, ,582, ,652, (929,892.00) Child Support Fund ,571, ,489, ,286, ,482, , Family Protection Fund , , , , (43,548.00) Probate Court Support Fund , , ,063, , (108,937.00) Appellate Judicial Fund , , , , , Courthouse Security Justice Court Fund , , , , ,76 Records Management & Preservation Fund ,626, ,777, ,004, ,619, ,614, Justice Court Technology Fund ,674, ,001, ,963, ,522, ,35 Child Abuse Prevention Fund , , , , , Juvenile Case Manager Fund ,928, ,640, ,600, ,748, , Star Drug Court Program Fund , ,072, ,106, ,394, , County & District Court Technology Fund , , , , , Stormwater Management Fund , , , , (240,579.00) District Attorney Disposition Intervention (DIVERT) Program Fund , , , , , Gulf of Mexico Energy Security Act of 2006 (GOMESA) Fund , , , , Hester House Operations Fund , , , , Hester House Construction Fund ,168, ,121, ,120, ,988, (132,081.00) San Jacinto Wetlands Fund , , , , TCEQ Pollution Control Fund , , , , (39,291.00) Community Development Financial Sureties Fund , ,19 846, , (201,519.00) EPH TCEQ SEP Fund , , , , (140,566.00) Election Services Fund , , , , , Criminal Courts Audio Visual Equipment Fund ,672, , , , (766,868.00) Medicaid Admin Claim-Reimburse Fund ,809, ,209,85 2,533, , Dispute Resolution Fund ,500, ,579, ,348, ,484,97 136, Hurricane Ike Fund ,696, ,099, ,576, ,779, ,203, Fire County Clerk Elections Fund ,603, ,811, ,048, ,415, (14,633,237.00) Fire Code Fee Fund ,200,00 2,200,00 LEOSE Law Enforcement Fund , , , , (237,178.00) Hotel Occupancy Tax Fund ,981, ,899, ,302, ,342, ,040, Library Donation Fund , , , , (49,807.99) Juvenile Probation Fee Fund ,00 20,00 Food Permit Fees Fund ,614,40 1,614,40 Court Reporter Service Fund 27A ,280,00 1,280,00 Juvenile Delinquency Prevention Fund 27B Supplemental Guardianship Fund 27C ,00 161,00 Courthouse Security Fund 27D ,635, ,635, Law Library Fund ,079, ,105, ,887, ,993, , Subscriber Access Fund , ,077, ,073, , (429,225.00) Parking Facility Fund , , , , (121,527.00) Workers Compensation Fund ,711, ,537, ,324, ,379, (11,945,568.00) Central Service Fleet Services Fund ,325, ,738, ,424, ,011, ,586, Central Service Radio Fund ,510, ,172, ,050, ,038,00 (12,904.78) Inmate Industries Fund ,837, ,268, ,095, ,288, , Risk Management Fund ,140, ,263, ,076,53 5,013, (62,786.00) Health Insurance Trust Mgmt Fund 55H ,736, ,736, Unemployment Insurance Fund 55U0-3,887, ,024, ,437, ,412, Toll Road Construction Fund ,962, ,703, ,341, ,608, ,266, Toll Road Office Building Fund ,022, ,267, ,472, ,474, ,18 Toll Road Collections Fund ,162, ,059, ,433, ,612, ,178, Toll Road Operations & Maintenance Fund ,802, ,341,30 123,651, ,561,23 30,910, Toll Road Renewal & Replacement Fund ,051, ,170, ,089, ,894, ,804, Insurance Trust Fund ,696, ,968, ,882, (223,882,124.00) HC/FC Agreement Series 2008 A Refunding Fund ,570, ,054, ,683, ,896, , HC/FC Agreement Series 2008 C Refunding Fund ,395, ,032, ,505, ,807, , HC/FC Agreement Series 2010 A Refunding Fund 10A0 8,721, ,553, ,945, ,988, , Permanent Refunding Series 1996 Debt Service Fund , , , ,638, ,229, Permanent Refunding Series 1997 Debt Service Fund ,447, ,518, ,463, ,757, ,294, Commercial Paper Series B Debt Service Fund ,435, ,262, ,258, ,038,33 (40,220,099.67) Commercial Paper Series C Debt Service Fund ,850, ,215, ,503, ,394, (100,109,614.91) HC PIB Refunding Bond Series 2008 C Debt Service Fund ,367, ,772, ,009, ,335, (1,673,269.53) Commercial Paper Series A-1 Debt Service Fund ,675, ,246,11 3,239, ,607, (631,759.00) HC/FC Agreement Series 2004 A Refunding Fund ,868, ,595, ,069, ,413,23 343, Commercial Paper Series D Debt Service Fund ,915, ,927,29 64,923, ,691, (61,232,572.12) HC/FC Agreement FC Commercial Paper Series F Fund ,982, ,009, ,302, ,334, (968,143.51) HC/FC Agreement Series 2006 Refunding Fund ,139, ,461, ,240, ,362, , Certificates of Obligation Series 2001 Debt Service Fund ,070, ,081, ,079, (1,079,391.54) Permanent Improvement Series 2001 Debt Service Fund ,540, , , (738,858.48) General Obligation & Refunding Series 2002 Debt Service Fund , , , , Permanent Improvement Refunding Series 2002 Debt Service Fund ,094, ,183, ,551, ,193, (10,357,828.30) Permanent Improvement Refunding Series 2003 A Debt Service Fund ,801, ,042, ,925, ,613, (2,311,393.93) Permanent Improvement Refunding Series 2003 B Debt Service Fund ,668, ,217, ,027, ,781, ,754, Criminal Justice Center Refunding Series 2004 Debt Service Fund ,378, ,806, ,485, ,742, (3,742,385.19) Tax & Sub Lien Refunding Series 2004 A Debt Service Fund ,052, ,049, ,049, ,300, , Tax & Sub Lien refunding Series 2004 B Debt Service Fund ,765, ,840, ,000, ,403, (1,596,949.00) Permanent Improvement Refunding Series 2004 A Debt Service Fund ,427, ,412, ,221, ,234, ,012, Harris County Refuning 2011 A Cost of Issuance Fund 17C0-348, , (348,035.86)