HomeMy WebLinkAboutAgenda - 10-07-2014-13 (7)INFORMATION ITEM
ORANGE OUNTY
NOItI7t OLINA
FINANCE AND ADIMIINISTRA TIVE SER VICES
200 South Cameron Street Clarence G. Grier, CPA, CITP, CGMA Phone (919) 245 -2553
Post Office Box 8181 Assistant County Manager — CFO Fax (919) 644 -3324
Hillsborough, North Carolina 27278
MEMORANDUM
To: Board of County Commissioners
From: Clarence Grier, Assistant County Manager — Chief Finance Officer
Date: October 7, 2014
Re: Popular Annual Financial Report for the fiscal year ended June 30, 2014
Attached is the Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2013. This
report summarized the financial information contained in the Comprehensive Annual Financial Report
for the fiscal year ended June 30, 2014 in an easily readable and shortened format provide a higher
level overview of the financial position and results of operations for the County.
The report for the fiscal year ended June 30, 2014 will be used as the prototype for the fiscal year
ended June 30, 2014. The PAFR for the fiscal year ended June 30, 2014 will be submitted for
Government Finance Officers Association Popular Annual Financial Report Award. We fully expect that
the PAFR that we submit for the fiscal year ended June 30, 2014 will meet all of the criteria to receive
the award.
A special thanks goes to Carla Banks and her staff intern, Patricia Hutabarat, who prepared the format
and assisted with publishing the report.
ORANGE COUNTY
NORTH CAROLINA
POPULAR ANNUAL
FINANCIAL REPORT
Fiscal Year Ending June 30, 2013
Photo Courtesy: Darren Strickland, Orange County Emergency Services
TABLE OF CONTENTS
1 Orange County Board of Commissioners
2 Message from Management
3 County Profile
4 Economic Overview
: 5 Financial Highlights & Look Back
9 Achievements
Notable County Projects
10
(k
BOARD OF COUNTY
COMMISSIONERS
Chair
Barry Jacobs
Vice Chair
Alice M. Gordon Renee Price
Bernadette Pelissier
Earl McKee
Penny Rich
Mark Dorosin
MESSAGE FROM
MANAGEMENT
Residents of Orange County,
am proud to present the Orange County Financial Highlights for fiscal year
2012 -2013.
In today's complex world of financial reporting, analyzing financial statements can be
a challenge— especially for those without accounting and financial backgrounds.
This report was designed to address that issue by providing a summary of your
County government's finances in an easy to read format.
The financial statements used in this report are simplified and condensed to reflect
financial information regarding Orange County's government -wide information. The County's government -wide
financial statements provide information on revenues, expenses, and net position of Orange County for the fiscal
year ending June 30, 2013.
Most of the information in this report is drawn from the financial information appearing in the Comprehensive
Annual Financial Report (CAFR) for the fiscal year ended June 30, 2013.
The CAFR is a more detailed and complete financial presentation prepared in accordance with Generally
Accepted Accounting Principles (GAAP) and was audited by the County's independent external auditors. While
the financial data in this report conforms with GAAP, the statistical, economic and demographic data are taken
from various sources and are not necessarily GAAP based.
Additional financial information can be reviewed in the CAFR, available at Orange County public libraries and
online at www.orangecountync.gov /depts /finance/
Sincerely,
Clarence Grier
Assistant County Manager
Chief Financial Officer
�IJ
COUNTY PROFILE
Orange County, founded in 1752, is located in the north - central portion of North Carolina, approximately midway
between Washington, DC and Atlanta, GA. The County is part of the Raleigh /Durham /Chapel Hill Metropolitan Statistical
Area, which also includes the Research Triangle Park, a major complex of research and research - oriented manufacturing
facilities.
The County operates under a Commissioner - Manager form of government. The governing body of the County is the
Board of County Commissioners, which formulates policies for the administration of the County. In addition, the Board
annually adopts a balanced budget and establishes a tax rate for the support of the County's programs.
The Board consists of seven commissioners, elected on a staggered basis for terms of four years. The County
Manager is appointed by, and serves at the pleasure of the Board as the County's Chief Executive Officer. The manager
has appointive and removal authority over department heads and other employees of the County.
The County Manager is also responsible for the daily operations of the County Government. In addition, the Manager's
responsibilities include implementation of policies established by the Board of Commissioners, as well as the
administration of the annual budget adopted by the Board.
The County provides a wide range of services, including public safety, human services (Social Services, Health and
Aging), and funds for education, cultural and recreational activities, general administration functions, and others.
MESSAGE FROM
MANAGEMENT
Residents of Orange County,
am proud to present the Orange County Financial Highlights for fiscal year
2012 -2013.
In today's complex world of financial reporting, analyzing financial statements can be
a challenge— especially for those without accounting and financial backgrounds.
This report was designed to address that issue by providing a summary of your
County government's finances in an easy to read format.
The financial statements used in this report are simplified and condensed to reflect
financial information regarding Orange County's government -wide information. The County's government -wide
financial statements provide information on revenues, expenses, and net position of Orange County for the fiscal
year ending June 30, 2013.
Most of the information in this report is drawn from the financial information appearing in the Comprehensive
Annual Financial Report (CAFR) for the fiscal year ended June 30, 2013.
The CAFR is a more detailed and complete financial presentation prepared in accordance with Generally
Accepted Accounting Principles (GAAP) and was audited by the County's independent external auditors. While
the financial data in this report conforms with GAAP, the statistical, economic and demographic data are taken
from various sources and are not necessarily GAAP based.
Additional financial information can be reviewed in the CAFR, available at Orange County public libraries and
online at www.orangecountync.gov /depts /finance/
Sincerely,
Clarence Grier
Assistant County Manager
Chief Financial Officer
�IJ
COUNTY PROFILE
Orange County, founded in 1752, is located in the north - central portion of North Carolina, approximately midway
between Washington, DC and Atlanta, GA. The County is part of the Raleigh /Durham /Chapel Hill Metropolitan Statistical
Area, which also includes the Research Triangle Park, a major complex of research and research - oriented manufacturing
facilities.
The County operates under a Commissioner - Manager form of government. The governing body of the County is the
Board of County Commissioners, which formulates policies for the administration of the County. In addition, the Board
annually adopts a balanced budget and establishes a tax rate for the support of the County's programs.
The Board consists of seven commissioners, elected on a staggered basis for terms of four years. The County
Manager is appointed by, and serves at the pleasure of the Board as the County's Chief Executive Officer. The manager
has appointive and removal authority over department heads and other employees of the County.
The County Manager is also responsible for the daily operations of the County Government. In addition, the Manager's
responsibilities include implementation of policies established by the Board of Commissioners, as well as the
administration of the annual budget adopted by the Board.
The County provides a wide range of services, including public safety, human services (Social Services, Health and
Aging), and funds for education, cultural and recreational activities, general administration functions, and others.
STATEMENT OF NET POSITION
Total
................................................................................................
2013
2012
Change
...............................
Current and other assets
112,246,379
119,944,263
(7,697,884)
Capital assets
122,592,995
120,896,281
1,696,714
...........................................................................................................................
Total assets
...........................................................................................................................
$ 234,839,374
$ 240,840,544
...............................
$ 6,001,170
...............................
Deferred Outflows
1,191,851
871,523
320,328
Long -term liabilities outstanding
267,304,389
280,507,394
(13,203,005)
Other liabilities
13,001,089
11,095,008
1,906,081
Total liabilities
...........................................................................................................................
$ 280,305,478
$ 291,602,402
$ (11,296,924)
...............................
Deferred inflows
483,041
379,620
103,421
Net position:
2,099,099
-
16,583,769
Net investment in capital assets
36,537,930
39,803,215
(3,265,285)
Restricted
26,587,937
38,656,332
(12,068,395)
Unrestricted
(107,883,161)
(128,729,502)
20,846,341
..........................................................................................................................
Total net position
..........................................................................................................................
$ (44,757,294)
$ (50,269,955)
...............................
$ 5,512,661
...............................
The Statement of Net Position presents information on all of the County's assets, deferred outflows of resources, liabili-
ties, and deferred inflows of resources, with the difference reported as net position. Over time, an increase or decrease in
net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating.
Net position is one useful indicator of a government's financial condition. The liabilities and deferred inflows of resources
of the County exceeded assets and deferred outflows of resources by $44.8 million as of June 30, 2013.
Net Position is reported in three categories: Net investment in capital assets, of $36.5 million, restricted net position of
$26.6 million, and unrestricted net deficit of $107.9 million.
Ci
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Summary of
Long -Term Debt
.......................................................................... ...............................
General obligation bonds
Installment notes payable
Obligations under capital leases
Revolving loan payable
Bond issuance items, net
Accrued compensated absences
Separation allowance
Post - closure liability
OPEB liability
$ Total
Governmental
Business
-Type
(Net Depreciation)
Activities
............................................................................................................
Activities
Total
...............................
2013
2012
2013
2012
2013
2012
86,205,000
95,520,000
-
-
86,205,000
95,520,000
107,796,269
114,393,535
9,429,225
10,175,318
117,225,494
124,568,853
1,746,233
2,486,176
325,128
606,855
2,071,361
3,093,031
2,099,099
-
-
-
2,099,099
-
16,583,769
14,651,812
-
-
16,583,769
14,651,812
4,928,399
5,097,695
306,274
363,108
5,234,673
5,460,803
578,122
533,395
-
-
578,122
533,395
-
-
12,959,312
13,741,104
12,959,312
13,741,104
22,862,358
21,895,617
1,485,201
1,422,399
24,347,559
23,318,016
242,799,249 254,578,230 24,505,140 26,308,784 267,304,389 280,887,014
Orange County maintained for the fourth consecutive year, its Aa1 with positive outlook bond rating from Moody's Inves-
tors Service and for the third consecutive year, its AAA rating from Standard and Poor's, and AAA with Fitch for the 10th
consecutive year. These strong ratings allow the County to issue debt, vital to the County infrastructure, at a lower cost
and reflect the sound financial condition of the County.
Outstanding long -term debt off $267,304,389 consists of general obligation bonds, installment
purchases, certificates of participation, federal revolving loans, post - closure liability, and other post - employment benefits
(OPEB). The outstanding debt obligations consist of the following purposes: General Governmental, Education, Public
Safety, Water and Sewer Projects and Technology.
As of June 30, 2013, the County had total bonded debt outstanding of $86.2 million, all of which is debt backed by the
full faith and credit of the County. In addition, the County has several capital leases related to equipment financings out-
standing of $2.1 million and several installment notes with a total outstanding balance of $117.2 million.
County Capital Assets
(Net Depreciation)
Governmental
Activities
Business
Activities
-Type
Total
2013
2012
2013
2012
2013
2012
Land
13,008,016
13,008,016
1,907,609
1,907,609
14,915,625
14,915,625
Land improvements
4,949,636
4,949,636
630,815
648,826
5,580,451
5,598,462
Water resources - Lake Orange
481,624
481,624
-
-
481,624
481,624
Buildings
64,999,915
65,627,617
8,542,899
8,737,679
73,542,814
74,365,296
Leasehold improvements
2,814,613
2,985,196
-
-
2,814,613
2,985,196
Sewer lines
-
-
2,454,119
2,541,252
2,454,119
2,541,252
Automotive equipment
1,634,248
1,860,522
1,548,144
992,662
3,182,392
2,853,184
Office and other equipment
1,553,385
1,731,755
-
-
1,553,385
1,731,755
Construction in progress
16,358,712
15,064,762
1,709,260
359,125
18,067,972
15,423,887
$ Total 105,800,149 105,709,128 16,792,846 15,187,153 122,592,995 120,896,281
............................................................................................................................................................................................... ............................... .
N
County
Capital Assets
........................................................................................................... ...............................
12% Land
5% Land improvements
0% Water resources - Lake Orange
60% Buildings
2% Leasehold improvements
2% Sewer lines
3% Automotive equipment
1 % Office and other equipment
15% Construction in progress
As of June 30, 2013, the County's capital assets for both its governmental and business -type activities amounted to as
of June 30, 2013 totals $122.6 million (net of accumulated depreciation). These assets include land, buildings,
automotive equipment, office and other equipment, and sewer lines.
Major capital asset transactions during the year include the following:
• Purchased construction in the progress on various County and school projects
• Purchased of vehicles
• Purchased various office equipment for day -to -day operations
• Purchased landfill equipment and convenience center upgrades
�IJ
ACHIEVEMENTS
Orange County is known across the na-
tion as the home of an innovative county
government. Our innovation is reflected
in numerous awards.
The Government Finance Officers
Association (GFOA) of the United States
and Canada has awarded Orange
County Government Finance Officers'
Association (GFOA) Certificate of
Achievement for the June 30, 2012,
Comprehensive Annual Financial Report
(CAFR).
The GFOA Certificate of Achievement is
the highest form of recognition a
government can receive in the
areas of governmental accounting and
financial reporting. The attainment of the
award represents a significant
achievement by a government and its
management. This year marks the 30th
year Orange County has received the
GFOA Certificate of Achievement.
GFOA of the United States and
Canada presented the Budget Office
the Distinguished Budget Presentation
Award for the development of an easily
understood budget document, which
can be used by other governmental units
or the average citizen.
GFOA of United States and Canada
presents a Certificate of Achievement
for Excellence in Financial Reporting. We
will submit the fiscal year June 30, 2014,
popular report for the award.
This is a prestigious national award, recognizing conformance with the highest standards for preparation of state and the
local government popular reports.
DI
NOTABLE
COUNTY PROJECTS
Orange County Welcomes Japanese Candy Maker
This significant project was managed
by the Orange County Economic
Development Department and the
North Carolina Department of
Commerce, resulting in Morinaga's
purchase of a 21 -acre site for its
initial Hi -Chew candy production
facility. The building will be a state -of-
the -art, clean USDA -spec facility,
constructed by the InSpec Group.
Morinaga America Foods, Inc. will hire
approximately 90 employees in the
,<< s first three years, and invest up to $48
million in this Orange County
operation. The County's water and
sewer improvements to the site will be
Morinaga & Co., Ltd. has broken The company currently operates significantly reimbursed by a
ground for its new 120,000 sq. ft. of candy and confectionary production Community Development Block Grant
production facility, the first in U.S. and facilities in Japan, Taiwan and China, awarded by the State of North
located in the City of Mebane. with sales offices throughout the world. Carolina.
Whiffed Building - Permanent BOCC Meeting Location
In April of 2013, the Board of Orange County Commissioners (BOCC)
authorized staff to move forward with the design of a permanent Board
meeting facility within the Whitted Building in Hillsborough.
The meeting room will include state of the art equipment, furniture and fixtures.
m
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Northside Elementary School
Northside Elementary School in Chapel Hill, NC and part of the Chapel Hill — Carrboro City School District was
constructed and completed in FY 2013 to support 585 students. The design integrates many sustainable features,
and embodies a truly sustainable approach to a small site.
Northside Elementary School has
earned the Leadership in Energy and
Environmental Design (LEEDTM)
Platinum certification with the Green
Building Certification Institute (GBCI).
The three - story, 100,000- square -foot
school opened in fall of 2013 and
represents the first LEED Platinum
elementary school in North Carolina.
W
FINANCE &
ADMINISTRATIVE SERVICES
The Finance and Administrative Services
Department oversees Orange County's financial
matters.
These activities include account monitoring,
payroll processing, budget development and
debt issuance.
Additionally, Finance and Administrative Services
is responsible for compiling the Annual Popular
Financial Report.
This document provides an overview and the
opportunity to inform the community about the
financial activities that take place throughout
the year.
Orange County prides itself in maintaining an open line of transparency, allowing residents to see
where their tax dollars are allocated.
For more information about the Popular Annual Financial Report, please contact the
Chief Financial Officer at 919.245.2450, or write to: Finance and Administrative Services,
200 South Cameron Street, Hillsborough, NC 27278.
ORANGE COUNTY
NORTH CAROLINA
John Link Government Services Center
200 South Cameron Street, Hillsborough, NC 27278
919 . 245 . 2151