2002 Hamilton County Citizens Financial Report. Issued by Dusty Rhodes Hamilton. County Auditor

Transcription

1 2002 Hamilton County Citizens Financial Report Issued by Dusty Rhodes Hamilton County Auditor

2 Table of Contents Letter from Your County Auditor...1 Financial Condition and Activity...2 Hamilton County s Residential Property Taxes...4 How Hamilton County Residential Property Tax Revenues Are Distributed...4 Hamilton County Residential Property Taxation and Population...6 Hamilton County Versus Ohio Peer and Neighboring Counties...10 Comparison of Levies...10 Hamilton County s County-Wide Residential Property Tax Levies...12 Per Person County-Wide Residential Property Taxation Comparison...13 Public School Levies...14 As you read the Citizens Financial Report, please consider the following points. The Citizens Financial Report is intended to summarize the financial activities of the primary government of Hamilton County. The information presented was drawn from the financial information appearing in the 2002 Comprehensive Annual Financial Report (CAFR). The CAFR was prepared in conformance with Generally Accepted Accounting Principles (GAAP) and was audited by the international public accounting firm of PricewaterhouseCoopers LLP. The CAFR received an unqualified opinion. The Citizens Financial Report, however, is unaudited and is presented on a non-gaap basis. The major differences between GAAP and non-gaap reporting deal with the exclusion of component units and in the presentation of segregated funds, as well as full disclosure of all material financial and nonfinancial notes to the financial statements. The statements contained on page 3 include all funds and account groups the County uses to account for the financial affairs of the primary government. 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 or via the Auditor s website at About the Cover Hamilton County s voters fund an abundance of local government programs. Here, citizens enjoy Anderson Park District facilities.

3 County of Hamilton Dear Citizens of Hamilton County: As Chief Financial Officer for Hamilton County, Ohio, I am pleased to present the 2002 Citizens Financial Report. This report provides a concise summary of the financial condition and activities of Hamilton County for the fiscal year ended December 31, Specifically, the Citizens Financial Report condenses and simplifies our 2002 Comprehensive Annual Financial Report for all Hamilton County funds and account groups. The 2002 Comprehensive Annual Financial Report was audited by the accounting firm of PricewaterhouseCoopers LLP. It received an unqualified opinion and conforms to Generally Accepted Accounting Principles (GAAP). Copies of the 2002 Comprehensive Annual Financial Report are available from my office or via the Auditor s website at This Citizens Financial Report is unaudited and is presented on a non-gaap basis. This year s Citizens Financial Report focuses on residential property taxation within Hamilton County. In order to fund a multitude of local government programs, Hamilton County voters impose a county-wide residential property tax rate and per person obligation that are higher than those of Ohio peer and neighboring counties. This report analyzes how Hamilton County residential property tax payments are divided, how they have changed over time and how they compare with Ohio peer and neighboring counties. Special attention is given to the schools, the taxing entities that receive approximately 60% of the residential property tax revenue that Hamilton County s residential property owners provide. I am proud to continue my office s tradition of providing accountability to Hamilton County taxpayers. Respectfully submitted, Dusty Rhodes Hamilton County Auditor This report, as well as a variety of other information, is available on our website at M Hamilton County Auditor Dusty Rhodes 138 East Court Street Cincinnati, Ohio (513)

4 Financial Condition and Activity Pages 2 and 3 provide (1) a summary of Hamilton County s financial position as of December 31, 2002, and (2) a summary of Hamilton County s financial activities for the year ended December 31, The statements presented include the financial activities of the primary government. The Government-Wide Statement of Net Assets presents the financial condition of the governmental and business-type activities of the County at year-end. The Government-Wide Statement of Activities presents a comparison between direct expenses and program revenues for each program or function of the County s governmental activities and for the business-type activities of the County. The County s government-wide statements consolidate the financial data of the fund-level statements (which are presented in the Comprehensive Annual Financial Report, available at Fund-level statements report activities of the governmental and proprietary funds. Governmental funds are the funds (i.e., the fiscal and accounting entities in which assets, liabilities and transactions are recorded and segregated) that account for the acquisition, use and balances of expendable financial resources and the related current liabilities, except those accounted for in proprietary funds. Proprietary funds account for a government s ongoing businesslike activities. These funds include enterprise funds and internal service funds. Enterprise funds account for operations in which the expenses of providing goods or services primarily or solely to the general public are financed mainly through user charges. Internal service funds account for the financing of goods or services provided by one County department to another on a cost-reimbursement basis. In the government-wide statements, the financial data is reported for governmental activities and business-type activities. Governmental activities include the financial activities of the governmental funds and the two internal service funds whose purpose is to support activities of governmental funds. Governmental activities normally are supported by taxes and intergovernmental revenues. Business-type activities include the financial activities of the proprietary funds that are financed entirely or partially by fees charged for goods or services. All enterprise funds fall into this category. Additionally, there are three internal service funds that principally support enterprise fund activities, and these funds are reported with business-type activities. Brief explanations of some of the terms used in the government-wide statements follow. Government-Wide Statement of Net Assets Assets Equity in Pooled Cash and Investments is made up of cash and investments held in the County treasury. Receivables are resources that are considered available at year s end, but the County has not yet taken possession of these assets. Internal Balances are the net payables and receivables between the governmental and business-type activities. Prepaid Expenses represent payment in advance for the receipt of goods and services in an exchange transaction. Inventories are the cost of goods held for resale or for use in operations. Restricted Cash and Investments are cash and investments held by various outside County agencies and departments in authorized bank accounts outside of the County treasury. Capital Assets, Net of Depreciation, are property, buildings and equipment used to provide County services; bridges owned by the County for the years ; and construction and other costs related to County-owned roads for the year 2002 only. Due to new reporting requirements, in future years this figure will also include additional roadways. Depreciation is the allocation of an asset s cost to expense over the asset s estimated useful life. Liabilities Payables are obligations that were incurred prior to December 31, 2002, but were not paid by that date. Deferred Revenue arises when assets are recognized before revenue recognition criteria have been satisfied, e.g., grant moneys received but not yet earned. Escheat is property that, in the absence of a legal claimant, has reverted to the General Fund until a rightful owner or heir claims the property. Estimated Future Claims represent expected future payouts for workers compensation. Long-Term Liabilities include bonds, notes and other liabilities that are to be paid over a period of time greater than one year. Net Assets Invested in Capital Assets, Net of Related Debt, is the total capital assets net of depreciation and net of the outstanding principal of debt related to the assets. Restricted net assets are those that have use restrictions imposed by legal authority or by the nature of the funds themselves. Unrestricted net assets represent the difference between total net assets and the two net asset categories described above. 2 Government-Wide Statement of Activities Expenses are the costs specifically associated with a service, program or department. Program Revenues are those that come from outside the government to finance specific functional activities. General Revenues are those not designated to a specific program or function.

5 GOVERNMENT-WIDE STATEMENT OF NET ASSETS DECEMBER 31, 2002 (Amounts in Thousands) Governmental Activities Business-Type Activities Totals ASSETS Equity in Pooled Cash and Investments Receivables Internal Balances Prepaid Expenses Inventories Restricted Cash and Investments Capital Assets, Net of Depreciation Other Assets $ 289, ,823 (153) - 1, ,236 7,572 $ 116,926 22, , ,983 1,541,418 27,919 $ 406, ,190-2,443 1, ,983 1,852,654 35,491 TOTAL ASSETS 929,093 1,877,209 2,806,302 LIABILITIES Payables Deferred Revenue Escheat Estimated Future Claims Long-Term Liabilities TOTAL LIABILITIES 41, ,198 6,124 6, , ,993 38, ,100,873 1,139,447 79, ,198 6,124 6,417 1,309,194 1,651,440 NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted Unrestricted TOTAL NET ASSETS 192, ,590 17,459 $ 417, ,643 4, ,554 $ 737,762 $ 688, , ,013 1,154,862 GOVERNMENT-WIDE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2002 (Amounts in Thousands) Program Revenues Net (Expense) Revenue Operating Capital Indirect Charges Grants Grants Business- Expenses for and and Governmental Type Expenses Allocation Services Contributions Contributions Activities Activities Total FUNCTIONS/PROGRAMS Governmental Activities: General Government $ 68,904 $ 98 $ 52,162 $ 7,009 $ - $ (9,831) $ - $ (9,831) Judicial 112, ,835 23,407 - (52,823) - (52,823) Public Safety 90, ,496 3,611 - (73,224) - (73,224) Social Services 315,605 1,170 93, ,731 - (43,468) - (43,468) Health 233, ,639 86,480 - (129,510) - (129,510) Public Works 27, , ,968 (20,052) - (20,052) Environmental Control 6, ,462 2,668 - (615) - (615) Economic Development 20, ,083 - (246) - (246) Parks and Recreation 6, (5,917) - (5,917) Interest 8, (8,753) - (8,753) Fiscal Charges (5) - (5) Total Governmental Activities 891,761 3, , ,814 1,968 (344,444) - (344,444) Business-Type Activities: Enterprise Funds 178, ,340-40,607 - (4,822) (4,822) Internal Service Funds 10,880-10, (699) (699) Total Business-Type Activities 189, ,521-40,607 - (5,521) (5,521) Total $1,081,410 $ 3,052 $ 368,108 $ 323,814 $ 42,575 (344,444) (5,521) (349,965) GENERAL REVENUES Taxes 344,245 31, ,701 Unrestricted Investment Earnings 21,040 5,468 26,508 Net Increase (Decrease) in Fair Value of Equity in Pooled Cash and Investments 1, ,508 Other Revenue (Expense), Net Transfers (641) 641 TOTAL GENERAL REVENUES AND TRANSFERS 366,546 38, ,798 CHANGE IN NET ASSETS 22,102 32,731 54,833 NET ASSETS AT BEGINNING OF YEAR 394, ,031 1,100,029 NET ASSETS AT END OF YEAR $ 417,100 $ 737,762 $ 1,154,862

6 Hamilton County s Residential Property Taxes Through numerous special property tax levies, Hamilton County residential taxpayers contribute to a large number of governmental programs. This year s Citizens Financial Report focuses on several aspects of the funds that Hamilton County residential property taxpayers provide, focusing on how these payments have changed relative to the County s population over time, how Hamilton County residential property taxation compares to Ohio peer and neighboring counties, and how this taxation differs between Hamilton County s school districts. How Hamilton County Residential Property Tax Revenues Are Distributed Hamilton County residential property tax revenues are divided between several types of taxing districts, as the graph below illustrates. * Park districts include the Hamilton County Park District, Anderson Park District and Delhi Township Park District. ** Special districts include the Deer Park/Silverton Joint Fire District, Eastern Joint Ambulance District, Fairfax/Madison Place Fire District and Western Joint Ambulance District. 4 These three emergency vehicles were purchased in their entirety with Village of Lockland Fire Levy funds. Though villages receive tax revenues along with the other County municipalities, voters may also choose to fund locale-specific levies.

7 The Hamilton County Park District has several golf courses, including The Vineyard, located at Woodland Mound in Anderson Township. (Photo by Don Denney Photography.) The Silverton Memorial Municipal Building houses operations for the City of Silverton. Municipality taxes comprise 8.37% of County residential property tax billings. The 12 townships throughout the County benefit from tax revenues. Salting the streets during a snowstorm is one way Sycamore Township uses its funds. 5

8 Hamilton County Residential Property Taxation and Population During the past ten years as residential property taxes billed have increased, Hamilton County s population has fallen steadily. When evaluated on a per person basis, Hamilton County s residents paid $ in residential property taxes per person in 1993 and $ per person in 2002, an increase of 74.4%. During this same period, the total residential property taxes billed to Hamilton County residents increased from $87,757,124 in 1993 to $146,196,314 in 2002, a 66.6% increase. In 1993 the U.S. Census Bureau estimated that Hamilton County had 873,002 residents, while in 2002 the estimate had fallen to 833,721, a 4.5% decrease. The City of Blue Ash receives a portion of the property tax revenues distributed to Hamilton County s municipalities. The Blue Ash Bicentennial Veterans Memorial Park, located in downtown Blue Ash, was completed in 1991 as part of the City s Bicentennial celebration. 6

9 7

10 Teens show off their skills in the Anderson Park District s temporary skate park to help raise additional funds to match tax dollars for the construction of a permanent facility at Beech Acres Park. Anderson is one of three County park districts supported through residential property tax revenues. The Supported Employment Program is funded by the Mental Retardation and Developmental Disabilities Levy. Through this program, the client shown here was prepared for a job at a deli, where he has been a valued employee with a perfect attendance record for six years. Also pictured is the deli s owner. 8 Tax revenues help fund special events, such as the Sycamore Township Festival at Bechtold Park.

11 Road maintenance repairs are paid for with property tax revenues. Here, Mt. Healthy street crews work on McMakin Street. Visitors to the Cincinnati Museum Center at Union Terminal, a national historic landmark, are greeted with a view of the museum s rotunda. Via the Museum Center Debt Service Levy, Hamilton County taxpayers help cover the museum s debt related to its construction and renovation. 9

12 Hamilton County Versus Ohio Peer and Neighboring Counties Comparison of Levies Ohio counties voters have discretion in choosing the amount and purpose of taxes that they levy on their property owners. Therefore, it is instructive to compare Hamilton County s county-wide residential property tax levies to those of its neighboring Ohio counties (Butler, Warren and Clermont) and to other Ohio highly populated counties. ( County-wide levy as used here refers to levies that are imposed on the entire county only, and not just a portion of a county or on multiple counties.) Petting the animals is a favorite activity at the Cincinnati Zoo and Botanical Gardens, which is supported by the Zoological Park Services and Facilities Levy. The zoo levy is 1 of 10 voter-approved County-wide levies. CRI is a contract agency of Hamilton County s Mental Health Board, and thus receives some funding from the Mental Health Services Levy. Pictured here is a CRI vocational client receiving on-the-job training for supermarket work. 10

13 The chart below lists the types of county-wide residential property tax levies in each of the comparison Ohio counties, along with their effective residential rates and the billings they generated for On page 12 is a brief description of each of the Hamilton County levies. * "Effective rate" is the actual millage, or tax rate, a property tax owner pays after adjustments to full tax rates are made to negate the effects of property appreciation since a given levy was originally passed. A comprehensive discussion of tax levies and how they work, including terminology explanations, is available in the 2000 Hamilton County Citizens Financial Report, which is available on the Auditor s website at ** Warren County has temporarily eliminated the collection of the 2.57 mills of inside general operating fund millage due to sufficient sales tax revenues. Background Photo: The Hamilton County Children s Services Levy makes up nearly 40% of Hamilton County Children s Services budget. This agency worked with more than 8,000 families in For that year, Hamilton County billed over $22 million of taxes to residential property owners to fund the Children s Services Levy. 11

14 Hamilton County s County-Wide Residential Property Tax Levies The General Operating Levy may be used for any general government expenses, such as Sheriff patrols, jail operations, court operations and social services. The Museum Center Debt Service Levy covers the cost of paying for the debt used to renovate Cincinnati's historic Union Terminal into a museum center. The Children s Services Levy helps provide funding for investigating reports of child abuse and neglect; protection for abused and neglected children; aid and housing for abused and neglected children; counseling assistance to families to reduce the risk of child abuse and neglect; Juvenile Court s efforts in the review and oversight of child abuse, neglect and dependency cases; and operating Hillcrest Training School for male adolescents. The Health and Hospitalization Services Levy, Including Drake Center and Various Drug Court Programs, primarily In 2002 Hamilton County Children s supports long-term care and rehab services at Drake Center. This levy s Services served more than 17,700 children. funds are also spent on County inmate health services and alcohol and drug treatment services. A second Health and Hospitalization Services Levy, Including University Hospital, helps pay for the health and hospitalization services provided to the indigent in Hamilton County, at University and Children s Hospitals. It also provides funding for inmate health services, tuberculosis control services, and alcohol and drug treatment services. The Community Mental Health Services Levy provides funding for planning, coordinating and evaluating a network of services for the emotionally distressed and for the chronically or acutely mentally ill. The Mental Retardation and Developmental Disabilities Levy provides support, programs and services to individuals with mental retardation and other developmental disabilities. The Park District Levy provides funds to operate and maintain County parks. The Computerized Police Information Center Levy provides funds for the County-wide computerized police information system. The Senior Services Levy funds are used to provide and maintain a system of in-home care for Hamilton County s elderly, through the development, coordination and implementation of services for older adults. University Hospital receives funding from the The Zoological Park Services and Facilities Levy Health and Hospitalization Services Levy. provides funding for the Cincinnati Zoo and Botanical Gardens to 12 help cover the operating costs at the zoo.

15 Per Person County-Wide Residential Property Taxation Comparison The graph below compares Hamilton County s per person county-wide residential property tax billings for 2002 to those of the Ohio peer and neighboring counties. In providing a broad array of levy-funded services, Hamilton County voters tax residential property owners at a higher amount, on a per person basis, than any of the comparison counties. Members of Drake Center s interdisciplinary team of professionals help a patient with his rehabilitation. The Center receives moneys from the Health and Hospitalization Services Levy. Senior Services Levy funds help the Council on Aging of Southwestern Ohio provide recreation through the Adult Day Care program at Jewish Vocational Services. 13

16 Public School Levies The major component (58.98%) of Hamilton County residential property tax bills is for local schools. Therefore, this aspect of residential property taxation deserves special attention. There are 22 school districts serving Hamilton County residents, each of which bills at its own rate. The chart immediately below shows the annual residential property tax for schools billed to the owner of a $100,000 home in each of the respective school districts. School District 2002 Annual Residential Property Tax Cost per $100,000 Home* School District Projected** 2004 Annual Residential Property Tax Cost per $100,000 Home* Finneytown $1,375 Finneytown $1,271 Loveland $1,241 Loveland $1,175 Madeira $1,203 Cincinnati $1,147 Mariemont $1,197 Madeira $1,067 Winton Woods $1,110 Mariemont $1,064 Cincinnati $1,107 Winton Woods $1,019 Deer Park $1,105 Deer Park $1,012 Mt. Healthy $1,019 Wyoming $1,011 St. Bernard $999 St. Bernard $961 Sycamore $991 Mt. Healthy $948 Norwood $986 Sycamore $898 N. College Hill $876 Forest Hills $897 Reading $862 Norwood $897 Wyoming $850 N. College Hill $809 Oak Hills $843 Oak Hills $793 Northwest $840 Northwest $792 Forest Hills $825 Reading $784 Three Rivers $823 Three Rivers $764 Southwest $758 Princeton $759 Lockland $755 Southwest $746 Princeton $727 Lockland $737 Indian Hill $713 Indian Hill $ * These amounts assume the homeowner is receiving the 10% rollback, 2.5% reduction and sales tax credit. Information about these property tax programs is available in the 2000 Hamilton County Citizens Financial Report, which is available on the Auditor s website at ** Projection assumes no change in property values from 2003, and includes voter-approved levies for 2002 (Forest Hills, Norwood and Wyoming) and May 2003 (Cincinnati and Princeton).

17 Mariemont strings students are pictured during a school holiday concert. Students in the Mariemont City School District can begin taking strings at the elementary level. School districts account for approximately 60% of residential property taxes in Hamilton County. Members of a Sycamore School District art club display a sketch of one of six murals that will decorate the walls of the FreeStore/FoodBank downtown. The murals depict themes of dignity, friendship and generosity. 15

18 In addition to residential property taxes, schools also obtain revenue from other sources, such as commercial property taxes, and state and federal funding. These school district revenues fund salaries, instruction, building operations, administration, pupil support and staff support. As one indicator of the varying level of support these tax revenues provide between districts, the chart below lists the enrollment (positioned next to the school district s name) and the per pupil expenditures for each of Hamilton County s school districts. *Enrollment and expenditure data obtained from the Ohio Department of Education. 16

19 The Finneytown Middle School choir performs in the school district s performing arts center. A teacher works with students in an active classroom setting in the Forest Hills School District. Young musicians in the Finneytown School District perform in the school gymnasium. Per pupil expenditures for the County s school districts range from $6,521 to $12,875. About the Back Cover A Cincinnati Public Schools teacher works with students. 17

20 Hamilton County Auditor Dusty Rhodes 138 East Court Street Cincinnati, Ohio (513)